Moving and Fostering Innovation to Revolutionize Smarter Transportation Act
Bill: S.652 | Sponsor: Sen. Cortez Masto, Catherine (D-NV)
Policy area: Transportation and Public Works

Summary:
Moving and Fostering Innovation to Revolutionize Smarter Transportation Act or the Moving FIRST Act
This bill authorizes through FY2026 the Department of Transportation to award Strengthening Mobility and Revolutionizing Transportation grants to communities of varying sizes to promote technological innovation (e.g., autonomous vehicles, electric vehicles, and roadway electrification) in transportation systems.

To direct the Secretary of Transportation to establish the 
   Strengthening Mobility and Revolutionizing Transportation (SMART) 
  Challenge Grant Program to promote technological innovation in our 
                         Nation's communities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Moving and Fostering Innovation to 
Revolutionize Smarter Transportation Act'' or the ``Moving FIRST Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Beyond Traffic 2045, a comprehensive assessment of the 
        national transportation system recently published by the 
        Department of Transportation, identified transportation trends 
        that need to be proactively addressed, including--
                    (A) the population of the United States will 
                increase by 70,000,000 during the 30-year period ending 
                in 2045;
                    (B) emerging megaregions could absorb 75 percent of 
                the United States population by 2050;
                    (C) freight volume will increase by more than 40 
                percent by 2045;
                    (D) Americans are currently stuck in traffic for 
                more than 42 hours each year, on average;
                    (E) the current annual cost of congestion in delays 
                and lost fuel amounts is estimated to be 
                $160,000,000,000;
                    (F) 96 people die in motor vehicle crashes in the 
                United States every day, on average, and nearly 6,700 
                are injured per day; and
                    (G) connected vehicles and new crash avoidance 
                technology could potentially address 81 percent of 
                crashes involving unimpaired drivers.
            (2) In 2015, the Secretary of Transportation created the 
        Smart City Challenge to assist cities in addressing the 
        challenges facing our Nation's transportation system through 
        innovative and creative means, utilizing both the public and 
        the private sectors.
            (3) By asking American cities to use emerging 
        transportation technologies to address their most pressing 
        problems, the Smart City Challenge aimed to spark and spread 
        innovation through a mixture of collaboration, competition, and 
        experimentation.
            (4) The following outcomes were expected from the original 
        Smart City Challenge and are expected to result from the SMART 
        grants awarded under this Act:
                    (A) Improved safety from the use of advanced 
                technologies, including connected vehicle technologies, 
                to reduce the number of collisions, fatalities, and 
                injuries for vehicle occupants and nonvehicle 
                occupants.
                    (B) Enhanced mobility by providing realtime 
                traveler information and emerging mobility services to 
                improve personal mobility for all citizens including 
                people with lower incomes, people with disabilities, 
                and older adults.
                    (C) Enhanced ladders of opportunity by--
                            (i) providing access to advanced technology 
                        and its benefits for underserved areas and 
                        residents;
                            (ii) increasing connectivity to employment, 
                        education, and other services; and
                            (iii) contributing to revitalization by 
                        incentivized reinvestment in underserved 
                        communities.
                    (D) Reduction in pollution by implementing advanced 
                technologies and policies that support a more 
                sustainable and cost-effective relationship between 
                transportation and the environment through more 
                efficient fuel use and emissions reductions.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Large community.--The term ``large community'' means an 
        applicant community with a population between 400,000 and 
        1,000,000, according to the Census Bureau's most recent annual 
        estimates of resident population.
            (2) Mid-sized community.--The term ``mid-sized community'' 
        means an applicant community with a population between 75,000 
        and 400,000, or an applicant community with a population 
        between 10,000 and 75,000 that is located within an urbanized 
        area or cluster, according to the Census Bureau's most recent 
        annual estimates of resident population.
            (3) Multi-jurisdictional group.--The term ``multi-
        jurisdictional group'' means an applicant composed of 2 or more 
        combination of States, tribal governments, local governments, 
        public transit agencies, public toll authorities, or 
        metropolitan planning organizations (as defined in section 
        134(b) of title 23, United States Code), each of which is 
        eligible to apply for a SMART grant under section 4.
            (4) Regional partnership.--The term ``regional 
        partnership'' means a group of 2 or more jurisdictions with a 
        combined population between 10,000 and 75,000, according to the 
        Census Bureau's most recent annual estimates of resident 
        population, which have entered into a partnership to apply for 
        a SMART grant under section 4.
            (5) Rural community.--The term ``rural community'' means an 
        applicant community with a population between 10,000 and 75,000 
        people that is not located within an urbanized area or cluster, 
        according to the Census Bureau's most recent annual estimates 
        of resident population.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (7) Strengthening mobility and revolutionizing 
        transportation grant; smart grant.--The terms ``Strengthening 
        Mobility and Revolutionizing Transportation grant'' and ``SMART 
        grant'' means a grant awarded to an eligible applicant under 
        section 4.

SEC. 4. SMART GRANT PROGRAM.

    (a) Grants Authorized.--During each of the fiscal years 2022 
through 2026, the Secretary is authorized to award--
            (1) 1 SMART grant of not less than $30,000,000 or more than 
        $50,000,000 to an applicant on behalf of a large community to 
        carry out an eligible project;
            (2) 1 SMART grant of not less than $30,000,000 or more than 
        $50,000,000 to an applicant on behalf of a mid-sized community 
        to carry out an eligible project; and
            (3) 2 SMART grants, totaling not more than the greater of 
        $20,000,000 or 20 percent of the amount appropriated pursuant 
        to section 6(a) for the fiscal year, to applicants on behalf of 
        rural communities or regional partnerships to carry out 
        eligible projects.
    (b) Eligible Applicants.--The following entities are eligible to 
receive a grant under this section:
            (1) A unit of local government, including counties.
            (2) A tribal government.
            (3) A public transit agency or authority.
            (4) A public toll authority.
            (5) A metropolitan planning organization.
            (6) A multi-jurisdictional group applying through a single 
        lead applicant.
    (c) Application Process.--
            (1) In general.--An eligible applicant may apply for a 
        grant under this section by submitting an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may reasonably require to evaluate 
        the merits of the proposed project in accordance with the 
        selection criteria set forth in subsection (d).
            (2) Technical assistance.--
                    (A) State departments of transportation.--Eligible 
                rural and regional partnership applicants are strongly 
                encouraged to seek technical assistance from the 
                department of transportation in their respective States 
                during the application process and during the 
                implementation of a project that is awarded a SMART 
                grant, as applicable.
                    (B) Federal department of transportation.--The 
                Secretary, after reviewing all of the applications for 
                SMART grants submitted in a fiscal year under 
                paragraphs (1), (2), and (3) of subsection (a), shall--
                            (i) provide not fewer than 2 applicants 
                        from each of the 3 groups of applicants that 
                        submitted applications deemed superior by the 
                        Secretary with limited technical assistance to 
                        improve their respective applications; and
                            (ii) allow such applicants to resubmit 
                        their improved applications before determining 
                        which applicants will receive a SMART grant in 
                        such fiscal year.
            (3) Multiple grants.--An eligible applicant may not be 
        awarded more than 1 SMART grant during the duration of the 
        SMART Grant Program.
    (d) Selection Criteria.--
            (1) In general.--A panel of experts from the Department of 
        Transportation, including representatives from the applicable 
        subagencies within the Department and representatives from any 
        of the National Institute of Standards and Technology's Smart 
        Cities and Communities Projects, shall evaluate applications 
        for SMART grants based on the applicable criteria described in 
        paragraphs (2) and (3).
            (2) Applicant readiness.--The panel referred to in 
        paragraph (1) shall determine the extent to which the applicant 
        or applicant community--
                    (A) has a dense urban population typical for a 
                large or mid-sized American city (except for grants 
                described in subsection (a)(3));
                    (B) represents more than 15 percent of the 
                population of the census-designated place in which it 
                is located, according to the Census Bureau's most 
                recent annual estimates of resident population;
                    (C) has a public transportation system or other 
                transit options committed to integrating with the 
                sharing economy, and is considering options to reduce 
                the frequency of single occupancy vehicles;
                    (D) has an environment that is conducive to 
                demonstrating proposed strategies;
                    (E) has continuity of committed leadership and 
                capacity to carry out the proposed project;
                    (F) is committed to making open, machine-readable 
                data accessible, discoverable, and usable by the 
                public, in a secure fashion, to fuel entrepreneurship 
                and innovation; and
                    (G) is likely to successfully implement the 
                project, including technical and financial commitments 
                from public and private sectors, and its functional 
                capability to perform.
            (3) Effective use of technology and project benefits.--The 
        panel shall determine the extent to which the proposed project 
        will use advanced data and intelligent transportation systems 
        technologies and applications to provide significant benefits 
        to a local area, a State, a region, or the United States, 
        including the extent to which the project will--
                    (A) reduce congestion and delays for commerce and 
                the traveling public;
                    (B) improve the safety of transportation facilities 
                and systems for pedestrians, bicyclists, and the 
                broader traveling public;
                    (C) provide access to jobs, education, and 
                essential services, including health care and 
                educational and training opportunities;
                    (D) connect underserved populations and reduce 
                their transportation costs;
                    (E) contribute to medium- and long-term economic 
                competitiveness;
                    (F) improve the condition, reliability, and user 
                experience of existing transportation facilities and 
                systems;
                    (G) promote connectivity between connected 
                vehicles, roadway infrastructure, pedestrians, 
                bicyclists, the public, and transportation systems;
                    (H) use innovative strategies or technologies to 
                pursue any of the primary selection criteria;
                    (I) demonstrate strong collaboration among a broad 
                range of participants, including the private sector, 
                job centers, or the integration of transportation with 
                other public service efforts, including working with 
                existing mobile and fixed telecommunication service 
                provides whenever possible;
                    (J) improve the overall environment, including 
                through improved energy efficiency, reduced dependence 
                on oil, or reduced pollution;
                    (K) promote or improve positive public health 
                outcomes for a community;
                    (L) increase resiliency of the transportation 
                system;
                    (M) incorporate relevant security solutions, 
                including those needed for cybersecurity, and address 
                emergency situations based on the scope and necessity;
                    (N) include sufficient technical, physical, and 
                administrative measures to ensure security of 
                information and protection of individuals' privacy; and
                    (O) address issues identified by the Department of 
                Transportation in the Beyond Traffic 2045 report.
    (e) Use of Grant Funds.--
            (1) Vision elements.--A SMART grant may be used for a 
        project that demonstrates a sound, innovative, integrated, and 
        holistic approach and incorporates many aspects of the 
        applicable vision elements set forth in this paragraph.
                    (A) Coordinated automation.--The use of automated 
                transportation and autonomous vehicles, which offer 
                tremendous possibilities for enhancing safety, 
                mobility, accessibility, equity, and the environment, 
                while working to minimize the impact on the 
                accessibility of any other user group or mode of 
                travel.
                    (B) Connected vehicles.--Connected vehicles, which 
                send and receive information about their movements in 
                the network, use vehicle-to-vehicle, vehicle-to-
                infrastructure, and vehicle-to-pedestrian 
                communications to provide connectivity that will enable 
                countless safety, mobility, and environmental 
                applications.
                    (C) Intelligent, sensor-based infrastructure.--The 
                use of a collective intelligent infrastructure allows 
                sensors to collect and report real-time data to inform 
                every day transportation-related operations, 
                performance, and trends of a community, ensuring that 
                data collection and dissemination is conducted in a 
                safe, secure manner.
                    (D) Architecture and standards.--The explicit use 
                of architectures, which--
                            (i) are governed by rules, documentation, 
                        and standards;
                            (ii) may be extended to a nationwide or 
                        broader deployment;
                            (iii) are defined and demonstrate 
                        integration of intelligent transportation 
                        systems with other systems which comprise a 
                        smart community; and
                            (iv) include a description of the required 
                        interfaces to other systems that utilize 
                        existing networking or other standards, if 
                        available, and any new standards that may be 
                        needed.
                    (E) Low cost, efficient, secure, and resilient 
                information and communications technology.--Strategies 
                and practices that advance information and 
                communications technology that is affordable, 
                adaptable, efficient, secure and resilient, including 
                integrated telecommunications platforms, enterprise 
                software, storage, and visualization systems.
                    (F) Smart land use.--Strategies and practices that 
                ensure land use is efficiently optimized through a 
                combination of planning and innovation deployments 
                designed to lead to a better connected community that 
                incorporates new modes of shared and sustainable 
                transportation into its existing infrastructure, 
                expanding the range of transportation choices and 
                access to employment, housing, education, and health 
                services, which may include--
                            (i) the establishment of value capture 
                        programs and value capture districts to use a 
                        portion of the increase in value resulting 
                        infrastructure investments as part of a mixed 
                        package of funding for the infrastructure and 
                        other public benefits; and
                            (ii) planning updates and policy changes to 
                        increase the supply of housing located in 
                        proximity to public transportation services.
                    (G) Comprehensive analytics.--The development of 
                platforms for understanding and analyzing data to 
                address complex challenges, including personal safety 
                and mobility, network efficiency, and environmental 
                sustainability, and measuring the performance of a 
                transportation network.
                    (H) User-focused mobility services and choices.--
                Strategies, initiatives, and services, including 
                connected vehicles, automated vehicles, and ride, 
                bicycle, and scooter share innovations, consistent with 
                current law, that increase transportation choices and 
                options by supporting and improving mobility for all 
                travelers, including aging Americans and persons with 
                disabilities and advanced traveler information systems 
                that provide real-time traffic, transit, parking, and 
                other transportation-related information to travelers.
                    (I) Commerce delivery and logistics.--Innovative 
                solutions supporting efficient goods movement in ways 
                that use data or deploy technology, such as connected 
                vehicle probe data, road weather data, or GPS, to 
                create opportunities for a more efficient supply chain 
                approach that delivers safer logistics management, 
                improved on-time pickups and delivery, improved travel 
                time reliability, reduced fuel consumption, and reduced 
                labor and vehicle maintenance costs.
                    (J) Leverage the use of innovative aviation 
                technology.--Leveraging the use of innovative aviation 
                technologies, such as unmanned aircraft systems, to 
                support transportation safety and efficiencies, 
                including traffic monitoring and infrastructure 
                inspection.
                    (K) Strategic business models and partnering 
                opportunities.--Creative strategic partnerships that--
                            (i) draw in stakeholders, including private 
                        sector, nonprofit, foundation, philanthropic, 
                        academia, and other public agencies, to advance 
                        SMART grant solutions; and
                            (ii) may include collaboration among 
                        transit agencies and other transportation 
                        providers to integrate multiple transportation 
                        services for increased efficiency, reliability, 
                        and convenience in first and last mile travel.
                    (L) Smart grid, roadway electrification, and 
                electric vehicles.--Strategies and initiatives that--
                            (i) leverage the smart grid (a programmable 
                        and efficient energy transmission and 
                        distribution system) to support the adoption or 
                        expansion of roadway electrification, energy 
                        capture, and electric vehicle deployment, 
                        including electrically assisted bicycles, or 
                        freight or commercial fleet fuel efficiency; 
                        and
                            (ii) explore and utilize interactions 
                        between electric vehicles and intelligent 
                        transportation systems with the smart grid.
                    (M) Synchronization of technology.--Strategies and 
                initiatives that utilize technology, such as integrated 
                mobile commerce infrastructure--
                            (i) to enhance public interaction with 
                        transportation systems;
                            (ii) to increase intermodal efficiency; and
                            (iii) to accelerate the transition to open 
                        payment fare systems, broadband, GPS, or Wi-Fi 
                        access.
                    (N) Connected, involved citizens.--Strategies, 
                local campaigns, and processes to proactively engage 
                and inform citizens at the individual level by 
                deploying hardware, software, and open data platforms 
                in an effort to increase personal mobility.
            (2) Eligible project costs.--A SMART grant may be used 
        for--
                    (A) development phase activities, including a 
                reasonable amount of funding, as determined by the 
                Secretary, for--
                            (i) planning;
                            (ii) feasibility analysis;
                            (iii) revenue forecasting;
                            (iv) environmental review;
                            (v) permitting;
                            (vi) preliminary engineering and design 
                        work;
                            (vii) acquisition of real property 
                        (including land related to the eligible project 
                        and improvements to land);
                            (viii) systems development or information 
                        technology work; and
                            (ix) other preconstruction activities; and
                    (B) construction phase activities, including--
                            (i) construction;
                            (ii) reconstruction;
                            (iii) rehabilitation;
                            (iv) replacement;
                            (v) environmental mitigation;
                            (vi) construction contingencies; and
                            (vii) acquisition of equipment, including 
                        vehicles.
            (3) Prohibited use of grant funds.--SMART grants may not be 
        used--
                    (A) to reimburse any pre-award costs or application 
                preparation costs under the proposed project 
                application;
                    (B) for traffic or parking enforcement activities; 
                or
                    (C) to purchase or lease license plate readers.
    (f) Transparency.--
            (1) In general.--The Secretary shall include, in any notice 
        of funding availability, a full description of how applications 
        will be evaluated against the criteria set forth in subsection 
        (d).
            (2) Consultations on decisions.--After all SMART grants 
        have been awarded for a fiscal year, the Secretary (or the 
        Secretary's designee) shall be available to communicate 
        directly with and have a debrief with each unsuccessful 
        applicant.
    (g) Submission of Application for Other Federal Transportation 
Funding Programs To Carry Out Proposed SMART Grant Projects.--
Notwithstanding any other provision of law, an eligible project under 
this section is deemed to be an eligible project under any of the 
following programs:
            (1) The Better Utilizing Investments to Leverage 
        Development (BUILD) discretionary grant program (previously 
        known as the ``Transportation Investment Generating Economic 
        Recovery (TIGER) discretionary grants'') established under 
        title XII of division A of the American Recovery and 
        Reinvestment Act of 2009 (Public Law 111-5).
            (2) The Infrastructure for Rebuilding America (INFRA) grant 
        program (previously known as the ``Nationally Significant 
        Freight and Highway Projects Program'') established under 
        section 117 of title 23, United States Code.
            (3) The Transportation Infrastructure Finance and 
        Innovation program (commonly known as ``TIFIA'') established 
        under chapter 6 of title 23, United States Code.
            (4) The Railroad Rehabilitation and Improvement Financing 
        Program of the Federal Railroad Administration established 
        under title V of the Railroad Revitalization and Regulatory 
        Reform Act of 1976 (45 U.S.C. 821 et seq.).
            (5) The Capital Investment Grants Program of the Federal 
        Transit Administration authorized under section 5309 of title 
        49, United States Code.
            (6) The Congestion Mitigation and Air Quality Improvement 
        Program of the Federal Highway Administration established 
        pursuant to section 149 of title 23, United States Code.
            (7) The Advanced Transportation and Congestion Management 
        Technologies Deployment program (commonly known as ``ATCMTD'') 
        established under section 503(c)(4) of title 23, United States 
        Code.

SEC. 5. REPORTING REQUIREMENTS.

    (a) Report to Secretary.--Not later than 3 years after the date on 
which a SMART grant recipient receives a grant under section 4, and 
annually thereafter until such grant is expended, the recipient shall 
submit an implementation report to the Secretary that describes--
            (1) the deployment and operational costs compared to the 
        benefits and savings from the project; and
            (2) how the project has met the original expectation as 
        projected in the deployment plan submitted with the 
        application, including--
                    (A) data on how the project--
                            (i) affected the measurement and 
                        improvement of transportation system 
                        performance through the deployment of advanced 
                        technologies;
                            (ii) reduced traffic-related fatalities and 
                        injuries;
                            (iii) reduced traffic congestion, improved 
                        travel time reliability, and reduced costs;
                            (iv) reduced transportation-related 
                        emissions;
                            (v) optimized multimodal system 
                        performance;
                            (vi) improved access to all transportation 
                        alternatives;
                            (vii) implemented technological innovation 
                        to increase efficiency with regards to 
                        intermodal communication, energy consumption, 
                        information and communications technology, and 
                        personal mobility;
                            (viii) provided the public with access to 
                        real-time integrated traffic, transit, and 
                        multimodal transportation information to make 
                        informed travel decisions;
                            (ix) provided cost savings to 
                        transportation agencies, businesses, and the 
                        traveling public;
                            (x) provided other benefits to 
                        transportation users and the general public;
                            (xi) reduced barriers or improved access to 
                        jobs, education, or various essential services; 
                        and
                            (xii) utilized partnerships with the 
                        private sector, such as creative strategic 
                        partnerships, which--
                                    (I) draw in stakeholders, including 
                                the private sector, nonprofit 
                                organizations, foundations, 
                                philanthropic organizations, academia, 
                                and other public agencies, to advance 
                                SMART grant solutions; and
                                    (II) may include collaboration 
                                among transit agencies and other 
                                transportation providers to integrate 
                                multiple transportation services for 
                                increased efficiency, reliability, and 
                                convenience in first and last mile 
                                travel;
                    (B) the effectiveness of providing real-time 
                integrated traffic, transit, and multimodal 
                transportation information to the public to make 
                informed travel decisions; and
                    (C) lessons learned and recommendations for future 
                deployment strategies to optimize transportation 
                efficiency and multimodal system performance.
    (b) GAO Biennial Reviews.--Not later than 2 years after the first 
SMART grant is awarded, and biennially thereafter, the Comptroller 
General of the United States shall conduct a review of the SMART grant 
selection process and submit a report containing the results of such 
review to the Committee on Commerce, Science, and Transportation of the 
Senate, the Committee on Environment and Public Works of the Senate, 
the Committee on Appropriations of the Senate, the Committee on Energy 
and Commerce of the House of Representatives, the Committee on 
Appropriations of the House of Representatives, and the Committee on 
Transportation and Infrastructure of the House of Representatives.
    (c) Report to Congress.--Not later than 2 years after the date on 
which initial grants are awarded under section 4, the Secretary shall 
submit a report to the Committee on Commerce, Science, and 
Transportation of the Senate, the Committee on Appropriations of the 
Senate, the Committee on Environment and Public Works of the Senate, 
the Committee on Energy and Commerce of the House of Representatives, 
the Committee on Appropriations of the House of Representatives, and 
the Committee on Transportation and Infrastructure of the House of 
Representatives that--
            (1) describes all of the grant recipients;
            (2) identifies the amount each grant recipient was awarded;
            (3) summarizes the intended uses for the grants;
            (4) describes the effectiveness of SMART grant recipients 
        in meeting their projected deployment plan;
            (5) analyzes how the projects funded by such grants or by 
        other Department of Transportation financial assistance 
        described in section 4(f) have--
                    (A) affected the measurement and improvement of 
                transportation system performance through the 
                deployment of advanced technologies;
                    (B) reduced traffic-related fatalities and 
                injuries;
                    (C) reduced traffic congestion, improved travel 
                time reliability, and reduced costs;
                    (D) reduced transportation-related emissions;
                    (E) optimized multimodal system performance;
                    (F) improved access to all transportation 
                alternatives;
                    (G) implemented technological innovation to 
                increase efficiency with regards to intermodal 
                communication, energy consumption, information and 
                communications technology, and personal mobility;
                    (H) provided the public with access to real-time 
                integrated traffic, transit, and multimodal 
                transportation information to make informed travel 
                decisions;
                    (I) provided cost savings to transportation 
                agencies, businesses, and the traveling public;
                    (J) provided other benefits to transportation users 
                and the general public;
                    (K) reduced barriers or improved access to jobs, 
                education, or various essential services;
                    (L) utilized partnerships with the private sector, 
                such as creative strategic partnerships, which--
                            (i) draw in stakeholders, including the 
                        private sector, nonprofit organizations, 
                        foundations, philanthropic organizations, 
                        academia, and other public agencies, to advance 
                        SMART grant solutions; and
                            (ii) may include collaboration among 
                        transit agencies and other transportation 
                        providers to integrate multiple transportation 
                        services for increased efficiency, reliability, 
                        and convenience in first and last mile travel; 
                        and
                    (M) effectively provided real-time integrated 
                traffic, transit, and multimodal transportation 
                information to the public to make informed travel 
                decisions; and
            (6) describes lessons learned and recommendations for 
        future deployment strategies to optimize transportation 
        efficiency and multimodal system performance.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Department of Transportation $100,000,000 for each of the first 5 
fiscal years beginning after the date of the enactment of this Act, of 
which--
            (1) not more than 80 percent shall be used for SMART grants 
        to large communities and mid-sized communities under paragraphs 
        (1) and (2) of section 4(a);
            (2) not more than 20 percent shall be used for SMART grants 
        to rural communities or regional partnerships under section 
        4(a)(3); and
            (3) not more than 2 percent shall be used for 
        administrative costs by the Office of the Secretary within the 
        Department of Transportation.
    (b) Limitation.--A grant recipient may not use more than 2 percent 
of the grant award each fiscal year to carry out reporting 
specifications required under the administration of this program.
    (c) Availability.--Amounts appropriated for a fiscal year pursuant 
to this section shall be available for obligation during the 2-year 
period beginning on the first day of the fiscal year for which such 
amounts were appropriated.
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