FHWA Reauthorization of TEA-21

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Funding

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS. [Analysis]

(a) IN GENERAL.--The following sums are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account):

(1) INTERSTATE MAINTENANCE PROGRAM.--For the Interstate maintenance program under section 119 of title 23, United States Code, $4,100,000,000 for fiscal years 2004 and 2005, $4,200,000,000 for fiscal year 2006, $4,400,000,000 for fiscal year 2007, $4,500,000,000 for fiscal year 2008, and $4,700,000,000 for fiscal year 2009.

(2) NATIONAL HIGHWAY SYSTEM.--For the National Highway System under section 103 of such title $5,000,000,000 for fiscal years 2004 and 2005, $5,100,000,000 for fiscal year 2006, $5,200,000,000 for fiscal year 2007, $5,400,000,000 for fiscal year 2008, and $5,500,000,000 for fiscal year 2009.

(3) BRIDGE PROGRAM.--For the bridge program under section 144 of such title $3,400,000,000 for fiscal year 2004, $3,500,000,000 for fiscal year 2005, $3,700,000,000 for fiscal year 2006, $3,800,000,000 for fiscal year 2007, $3,900,000,000 for fiscal year 2008, and $4,000,000,000 for fiscal year 2009.

(4) SURFACE TRANSPORTATION PROGRAM.--For the surface transportation program under section 133 of such title $5,102,000,000 for fiscal year 2004, $5,202,000,000 for fiscal year 2005, $5,402,000,000 for fiscal year 2006, $5,514,000,000 for fiscal year 2007, $5,714,000,000 for fiscal year 2008, and $5,807,000,000 for fiscal year 2009.

(5) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.--For the congestion mitigation and air quality improvement program under section 149 of such title $1,100,000,000 for fiscal year 2004, $1,462,000,000 for fiscal year 2005, $1,500,000,000 for fiscal year 2006, $1,600,000,000 for fiscal years 2007 through 2009.

(6) HIGHWAY SAFETY IMPROVEMENT PROGRAM. - For the highway safety improvement program under section 150 of such title $1,000,000,000 for fiscal year 2004, $1,100,000,000 for fiscal year 2005, $1,200,000,000 for fiscal year 2006, $1,300,000,000 for fiscal year 2007, $1,400,000,000 for fiscal year 2008, and $1,500,000,000 for fiscal year 2009.

(7) APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM PROGRAM.--For the Appalachian development highway system program under section 201 of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) $450,000,000 for each of fiscal years 2004 through 2009.

(8) RECREATIONAL TRAILS PROGRAM.--For the recreational trails program under section 206 of such title $60,000,000 for each of fiscal years 2004 through 2009.

(9) FEDERAL LANDS HIGHWAYS PROGRAM.--

(A) INDIAN RESERVATION ROADS.--For Indian reservation roads under section 204 of such title $333,000,000 for each of fiscal years 2004 through 2009.

(B) RECREATION ROADS.--For recreation roads under section 204 of such title $50,000,000 for each of fiscal years 2004 through 2009.

(C) PARK ROADS AND PARKWAYS.--For park roads and parkways under section 204 of such title, $300,000,000 for fiscal year 2004, $310,000,000 for fiscal year 2005, and $320,000,000 for each of fiscal years 2006 through 2009.

(D) REFUGE ROADS.--For refuge roads under section 204 of such title $30,000,000 for each of fiscal years 2004 through 2009.

(E) FOREST HIGHWAYS. - For forest highways under section 204 of such title $200,000,000 for each of fiscal years 2004 through 2009.

(F) SAFETY. - For safety under section 204 of such title $40,000,000 for each of fiscal years 2004 through 2009.

(10) MULTI-STATE CORRIDOR PLANNING PROGRAM.--For the multi-state corridor planning program under section 1806 of this Act $76,500,000 for fiscal year 2004 and $84,000,000 for each of fiscal years 2005 through 2009.

(11) BORDER PLANNING, OPERATIONS, AND TECHNOLOGY PROGRAM.--For the border planning, operations, and technology program under section 1807 of this Act $76,500,000 for fiscal year 2004 and $84,000,000 for each of fiscal years 2005 through 2009.

(12) NATIONAL SCENIC BYWAYS PROGRAM.--For the national scenic byways program under section 162 of title 23, United States Code, $31,500,000 for each of fiscal years 2004 through 2009.

(13) INTELLIGENT TRANSPORTATION SYSTEMS PERFORMANCE INCENTIVE PROGRAM.--For carrying out the intelligent transportation systems performance incentive program under section 1703 of this Act, $135,000,000 for each of fiscal years 2004 through 2009.

(14) HIGHWAY USE TAX EVASION PROJECTS--For highway use tax evasion projects under section 143 of such title, $26,550,000 for fiscal year 2004, $54,500,000 for each of fiscal years 2005 and 2006, $44,500,000 for fiscal year 2007, and $11,000,000 for each of fiscal years 2008 and 2009.

(15) COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS DEPLOYMENT.--For carrying out the Commercial Vehicle Information Systems and Networks Deployment program under section 1704 of this Act, $25,000,000 for each of fiscal years 2004 through 2009.

(16) INFRASTRUCTURE PERFORMANCE AND MAINTENANCE PROGRAM.--For carrying out the infrastructure performance and maintenance program under section 1201 of this Act, $1,000,000,000 for each of fiscal years 2004 through 2009.

SEC. 1102. OBLIGATION CEILING. [Analysis]

(a) GENERAL LIMITATION.--Notwithstanding any other provision of law, but subject to subsections (f) and (g),the obligations for Federal-aid highway and highway safety construction programs shall not exceed--

(1) $29,293,948,000 for fiscal year 2004;

(2) $30,265,000,000 for fiscal year 2005;

(3) $31,326,000,000 for fiscal year 2006;

(4) $32,257,000,000 for fiscal year 2007;

(5) $33,104,000,000 for fiscal year 2008; and

(6) $33,903,000,000 for fiscal year 2009.

(b) EXCEPTIONS.--The limitations under subsection (a) shall not apply to obligations under--

(1) section 125 of title 23, United States Code;

(2) section 147 of the Surface Transportation Assistance Act of 1978;

(3) section 9 of the Federal-Aid Highway Act of 1981;

(4) sections 131(b) and 131(j) of the Surface Transportation Assistance Act of 1982;

(5) sections 149(b) and 149(c) of the Surface Transportation and Uniform Relocation Assistance Act of 1987;

(6) sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991;

(7) section 157 of title 23, United States Code, as in effect on the day before the date of enactment of the Transportation Equity Act for the 21st Century;

(8) section 105 of title 23, United States Code (but, for each of fiscal years 2004 through 2009), only in an amount equal to $639,000,000 per fiscal year; and

(9) for Federal-aid highway programs for which obligation authority was made available under the Transportation Equity Act for the 21st Century or subsequent public laws for multiple years or to remain available until used, but only to the extent that such obligation authority has not lapsed or been used.

(1) reserve obligation authority provided by subsection (a) for such fiscal year for amounts authorized for administrative expenses, programs funded from the administrative takedown authorized by section 104(a) of title 23, United States Code, the infrastructure performance and maintenance program, and for each of the programs that are allocated by the Secretary under this Act and title 23, United States Code;

(2) reserve the obligation authority provided by subsection (a) less the amounts reserved under paragraph (1) for section 201 of the Appalachian Regional Development Act of 1965, and $2,000,000,000 for such fiscal year under section 105 of such title (relating to minimum guarantee); and

(3) distribute the obligation authority provided by subsection (a) less the aggregate amounts not reserved under paragraph (1) and (2) for Federal-aid highway and highway safety construction programs (other than the minimum guarantee program, but only to the extent that amounts apportioned for the minimum guarantee program for such fiscal year exceed $2,639,000,000, and the Appalachian development highway system program) that are apportioned by the Secretary under this Act and title 23, United States Code, in the ratio that--

(A) sums authorized to be appropriated for such programs that are apportioned to each State for such fiscal year, bear to

(B) the total of the sums authorized to be appropriated for such programs that are apportioned to all States for such fiscal year.

(d) REDISTRIBUTION OF UNUSED OBLIGATION AUTHORITY.-- Notwithstanding subsection (c), the Secretary shall, after August 1 of each of fiscal years 2004 through 2009, revise a distribution of the obligation authority made available under subsection (c) if a State will not obligate the amount distributed during that fiscal year and redistribute sufficient amounts to those States able to obligate amounts in addition to those previously distributed during that fiscal year, giving priority to those States having large unobligated balances of funds apportioned under sections 104 and 144 of title 23, United States Code.

(e) APPLICABILITY OF OBLIGATION LIMITATIONS TO TRANSPORTATION RESEARCH PROGRAMS.--Obligation limitations imposed by subsection (a) shall apply to transportation research programs carried out under chapter 5 of title 23, United States Code, and under title V of this Act; except that obligation authority made available for such programs under such limitations shall remain available for a period of 3 fiscal years and shall be in addition to the amount of any limitation imposed on obligations for Federal-aid highway and highway safety construction programs for future fiscal years.

(f) SPECIAL RULE.--Obligation authority distributed for a fiscal year under subsection (c)(2) for a section set forth in subsection (c)(2) shall remain available until used for obligation of funds for such section and shall be in addition to the amount of any limitation imposed on obligations for Federal-aid highway and highway safety construction programs for future fiscal years.

(g) ADJUSTMENT IN OBLIGATION LIMIT.--Limitations on obligations imposed by subsection (a) for a fiscal year shall be adjusted by an amount equal to the amount determined pursuant to section 251(b)(1)(B) of the Balanced Budget and Emergency Deficit Control Act of 1985 for such fiscal year, as amended by this Act. Any such adjustment shall be distributed in accordance with this section.

(h) LIMITATIONS ON OBLIGATIONS FOR ADMINISTRATIVE EXPENSES.--Notwithstanding any other provision of law, the total amount of all obligations under section 104(a) of title 23, United States Code, shall not exceed--

(1) $350,000,000 for fiscal year 2004;

(2) $380,000,000 for fiscal year 2005;

(3) $400,000,000 for fiscal year 2006;

(4) $420,000,000 for fiscal year 2007;

(5) $440,000,000 for fiscal year 2008; and

(6) $460,000,000 for fiscal year 2009.

SEC. 1103. APPORTIONMENTS. [Analysis]

(a) ADMINISTRATIVE EXPENSES.--Section 104(a) of title 23, United States Code, as amended by this Act, is further amended in paragraph (1) by striking "1 1/6" and inserting "1.4".

(b) METROPOLITAN PLANNING.--Section 104(f) of title 23, United States Code, is amended:

(1) in paragraph (1), by striking "not to exceed"; and by striking "authorized under this title" and inserting "identified in such subsection, except for the Federal lands highway program and the Appalachian development highway program";

(2) in paragraph (2), by striking "per centum" and inserting "percent";

(3) in paragraph (3), by striking "These funds shall be matched in accordance with section 120(b) unless the Secretary determines that the interests of the Federal-aid highway program would be best served without such matching." and inserting "Any funds that are not used to carry out section 134 of this title may be made available by a metropolitan planning organization to the State to fund activities under section 135."; and

(4) by adding the following after paragraph (5):

"(6) FEDERAL SHARE.--Funds apportioned to a State under this subsection shall be matched in accordance with section 120(b) unless the Secretary determines that the interests of the Federal-aid highway program would be best served without such matching.".

(c) STATE DEFINED.--Section 1103(n) of the Transportation Equity Act for the 21st Century (Public Law 105-178) is repealed.

(d) EXECUTIVE OFFICE COMPLEX.--Section 104 of title 23, United States Code, is amended by adding after subsection (q), as added by this Act, the following:

"(r) EXECUTIVE OFFICE COMPLEX.--On October 1 of each fiscal year for fiscal years 2004 through 2009, the Secretary, after making the deductions authorized by subsections (a) and (f), shall set aside $2,000,000 for each of fiscal years 2004 through 2006, $14,000,000 for each of fiscal years 2007 and 2008, and $7,000,000 for fiscal year 2009 of the remaining funds authorized to be appropriated under subsection (b)(3) for the preferred option determined by a study for highway access near the Executive Office complex.".

(e) ALASKA HIGHWAY.--Section 104(b)(1)(A) of title 23, United States Code, is amended by striking "$18,800,000 for each of fiscal years 1998 through 2002 for the Alaska Highway" and substituting "$18,800,000 for each of fiscal years 2004 through 2009 for the Alaska Highway".

SEC. 1104. MINIMUM GUARANTEE. [Analysis]

Section 105 of title 23, United States Code, is amended to read as follows:
"§ 105. Minimum guarantee

"(a) GENERAL RULE.--For each of fiscal years 2004 through 2009, the Secretary shall allocate among the States amounts sufficient to ensure that each State's percentage of the total apportionments for such fiscal year of Interstate maintenance, national highway system, bridge, congestion mitigation and air quality improvement, surface transportation, highway safety improvement, minimum guarantee, Appalachian development highway system, infrastructure performance and maintenance, and recreational trails programs shall equal the percentage listed for each State in subsection (b). The minimum amount allocated to a State listed in subsection (b) under this section for a fiscal year shall be $1,000,000.

"(b) STATE PERCENTAGES.--The percentage referred to in subsection (a) for a State shall be determined in accordance with the following table:

States	Percentage
Alabama	2.0269
Alaska	1.1915
Arizona	1.5581
Arkansas	1.3214
California	9.1962
Colorado	1.1673
Connecticut	1.5186
Delaware	0.4424
District of Columbia	0.3956
Florida	4.6176
Georgia	3.5104
Hawaii	0.5177
Idaho	0.7718
Illinois	3.3819
Indiana	2.3588
Iowa	1.2020
Kansas	1.1717
Kentucky	1.7365
Louisiana	1.5900
Maine	0.5263
Maryland	1.5087
Massachusetts	1.8638
Michigan	3.1535
Minnesota	1.4993
Mississippi	1.2186
Missouri	2.3615
Montana	0.9929
Nebraska	0.7768
Nevada.	0.7248
New Hampshire	0.5163
New Jersey	2.5816
New Mexico	0.9884
New York	5.1628
North Carolina	2.8298
North Dakota	0.6553
Ohio	3.4257
Oklahoma	1.5419
Oregon	1.2183
Pennsylvania	4.9887
Rhode Island	0.5958
South Carolina	1.5910
South Dakota	0.7149
Tennessee	2.2646
Texas	7.2131
Utah	0.7831
Vermont	0.4573
Virginia	2.5627
Washington	1.7875
West Virginia	1.1319
Wisconsin	1.9916
Wyoming	0.6951

"(c) SPECIAL RULE.--The Secretary shall allocate to Puerto Rico $1,000,000 for each of fiscal years 2004 through 2009. Such amounts shall be subject to the provisions in paragraph (d) of this section.

"(d) TREATMENT OF FUNDS.--

"(1) PROGRAMMATIC DISTRIBUTION.--The Secretary shall apportion 50 percent of the amounts made available under this section so that the amount apportioned to each State under this paragraph for each program referred to in subsection (a) (other than metropolitan planning, minimum guarantee, Appalachian development highway system, infrastructure performance and maintenance, and recreational trails programs) is equal to the amount determined by multiplying the amount to be apportioned under this paragraph by the ratio that--

"(A) the amount of funds apportioned to each State for each program referred to in subsection (a) (other than metropolitan planning, minimum guarantee, Appalachian development highway system, infrastructure performance and maintenance, and recreational trails programs) for a fiscal year; bears to

"(B) the total amount of funds apportioned to each State for all such programs for such fiscal year.

"(2) REMAINING DISTRIBUTION.--The Secretary shall allocate the remainder of funds made available under this section to the States for use in accordance with section 133; except that requirements of paragraphs (1) and (2) of section 133(d) shall not apply to amounts apportioned pursuant to this paragraph.

"(e) AUTHORIZATION.--There are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account) such sums as may be necessary to carry out this section for each of fiscal years 2004 through 2009.

"(f) GUARANTEE OF 90.5 PERCENTAGE RETURN.--

"(1) IN GENERAL.--Before making any apportionment under this title for each of fiscal years 2004 through 2009, the Secretary shall adjust the percentages in the table in subsection (b) to reflect the estimated percentage of estimated tax payments attributable to highway users in each State paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data is available, to ensure that no State's percentage return from such Trust Fund is less than 90.5 percent of the State's percentage contribution.

"(2) CONFORMING ADJUSTMENTS.--After making any adjustments under paragraph (1) for a fiscal year, the Secretary shall adjust the remaining percentages in the table set forth in subsection (b) to ensure that the total of the percentages in the table, as adjusted, do not exceed 100 percent for such fiscal year.

"(3) LIMITATION ON ADJUSTMENTS.--After making any adjustments under paragraph (2) for a fiscal year, the Secretary shall determine whether or not any State's percentage return from the Highway Trust Fund (other than the Mass Transit Account) is less than 90.5 percent of the State's percentage contribution to the Highway Trust fund as a result of such adjustments and shall adjust the percentages in the table for such fiscal year accordingly. Adjustments of the percentages in the table under this paragraph may not result in the total of such percentages exceeding 100 percent.

"(4) RATE OF RETURN.--A State's percentage return for such fiscal year shall be in the ratio that--

"(A) the quotient obtained by dividing the total amount of funds apportioned to each State, except Puerto Rico, for the current fiscal year for Interstate maintenance, national highway system, bridge, congestion mitigation and air quality improvement, surface transportation, minimum guarantee, highway safety improvement, Appalachian development highway system, infrastructure performance and maintenance, and recreational trails programs by the total amount of funds apportioned for such programs in all States, except Puerto Rico, for the current fiscal year; bears to

"(B) the quotient obtained by dividing the estimated tax payments attributable to highway users in each State paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available by the estimated tax payments attributable to highway users in all States paid into the Highway Trust Fund (other than the Mass Transit Account) for such fiscal year.".

SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY (RABA) AMENDMENTS. [Analysis]

Section 110 of title 23, United States Code, is amended--

(1) in subsections (a)(1) and (a)(2), by striking "2000" and inserting "2006";

(2) in subsection (a)(2), by striking "the succeeding" and inserting "that", and by striking "and the motor carrier safety grant program";

(3) in subsection (b)(1)(A), by striking "and the motor carrier safety grant program" and by striking ", the Transportation Equity Act for the 21st Century, and subchapter I of chapter 311 of title 49" after "under this title" and insert "and the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003";

(4) in subsection (c), by inserting "the highway safety improvement program," after "the surface transportation program,"; and

(5) by striking subsections (e), (f), and (g).

Subtitle B--New Programs

SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE PROGRAM. [Analysis]

(a) ESTABLISHMENT.--The Secretary shall establish and implement an Infrastructure Performance and Maintenance Program in accordance with this section.

(b) ELIGIBLE PROJECTS.--

(1) IN GENERAL.--A State may obligate funds apportioned to it under this section only for highway projects eligible under the Interstate Maintenance Program, the National Highway System Program, and the Surface Transportation Program that will--

(A) cost-effectively preserve, maintain, or otherwise extend the useful life of existing highway infrastructure elements; or

(B) provide operational improvements, including traffic management and intelligent transportation system strategies and limited capacity enhancements, at points of recurring highway congestion.

(2) TRANSFER PROHIBITION.--Notwithstanding sections 104 and 126 of title 23, United States Code, funds apportioned under this section shall not be transferred to another Federal agency or program.

(1) IN GENERAL.-- On October 1 of each fiscal year the Secretary shall apportion to the States the funds authorized to be appropriated to carry out this section in accordance with the following formula:

(A) 25 percent of the apportionments in the ratio that--

(i) the total lane miles of Federal-aid highways in each State; bears to

(ii) the total lane miles of Federal-aid highways in all States.

(B) 40 percent of the apportionments in the ratio that--

(i) the total vehicle miles traveled on lanes on Federal-aid highways in each State; bears to

(ii) the total vehicle miles traveled on lanes on Federal-aid highways in all States.

(i) the estimated tax payments attributable to highway users in each State paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available; bears to

(ii) the estimated tax payments attributable to highway users in all States paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available.

(2) MINIMUM APPORTIONMENT.--Notwithstanding paragraph (1), each State shall receive a minimum of 1/2 of 1 percent of the funds apportioned under this paragraph.

(d) CONTRACT AUTHORITY.--Funds authorized to be appropriated under section 1101(a)(16) of this Act to carry out this section shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, except that such funds shall remain available for obligation only as provided in subsection (e); shall not be subject to any deduction or set aside requirement; and shall not be transferred to another Federal agency or program in accordance with subsection (b)(2).

(e) PERIOD OF AVAILABILITY.--

(1) OBLIGATION WITHIN 6 MONTHS.--Funds apportioned to a State under this section must be obligated by such State within 6 months of the date of apportionment. Any amounts that remain unobligated at the end of that period shall be reapportioned in accordance with subsection (f).

(2) ONE YEAR.--All funds apportioned or reapportioned under this section shall remain available for obligation until the last day of the fiscal year in which they are apportioned. Any amounts apportioned that remain unobligated at the end of the fiscal year shall lapse.

(f) REDISTRIBUTION OF APPORTIONED FUNDS AND OBLIGATION AUTHORITY.--Six months after the date of apportionment or as soon thereafter as feasible in each fiscal year, the Secretary shall withdraw any funds apportioned to a State under this section that remain unobligated, along with an equal amount of obligation authority provided for the use of such funds pursuant to section 1102(c) of this Act, and shall reapportion such funds and redistribute such obligation authority to those States that have fully obligated all amounts apportioned under this section in such fiscal year and that demonstrate they are able to obligate additional amounts for projects eligible under this section before the end of the fiscal year. The calculation and distribution of funds under section 105 of title 23, United States Code, shall not be adjusted as a result of the reapportionment of funds under this subsection.

(g) FEDERAL SHARE PAYABLE.--The Federal share payable for a project funded under this section shall be determined in accordance with the provisions of section 120 of title 23, United States Code.

(h) STATE DEFINED.--In this section, the term "State" has the meaning such term has under section 101(a) of title 23, United States Code.

SEC. 1202. CLARIFY FEDERAL-AID ELIGIBILITY FOR SECURITY PROJECTS. [Analysis]

Section 101 of title 23, United States Code, is amended ---

(1) by striking the word "and" at the end of paragraph (a)(3)(G);

(2) by striking the period at the end of paragraph (a)(3)(H) and inserting "; and";

(3) by adding the following at the end of paragraph (a)(3)(H):

"(I) improvements directly related to homeland security for detection, preparedness, prevention, response, and recovery."; and

(4) by inserting the words "protection and" after the words "means the" and by inserting ", secure," after the word "safe" in section (a)(14).

SEC. 1203. FUTURE OF THE INTERSTATE HIGHWAY SYSTEM. [Analysis]

DECLARATION OF POLICY.-Section 101 of title 23, United States Code, is amended by striking subsection (b) and inserting the following:

"(b) It is hereby declared to be in the national interest to accelerate the construction and reconstruction of the Federal-aid highway systems since many of such highways, or portions thereof, are in fact inadequate to meet the needs of local and interstate commerce and national and civil defense.

"It is further declared that it is in the national interest to preserve and enhance the Dwight D. Eisenhower National System of Interstate and Defense Highways (hereafter referred to as the "Interstate System") to meet the nation's needs for the 21st Century. Urban and long distance personal travel and freight movement demands continue to grow. Travel demand patterns will remain dynamic. Continued planning for and investment in the Interstate System is critical to assure it adequately meets the changing travel demands of the future. The Interstate System must be safe, efficient, and reliable and must ensure national and interregional personal mobility, the flow of interstate commerce, and travel movements essential for national security. To the maximum extent possible, actions under this title should address congestion and freight transportation to provide for a strong and vigorous national economy. Special emphasis should be devoted to providing safe and efficient access for the type and size of commercial and military vehicles that access designated National Highway System intermodal freight terminals.

"The Interstate System is further declared to be the nation's premiere highway system, essential for the nation's economic vitality, national security, and general welfare. The Secretary is directed to take appropriate actions to preserve and enhance the Interstate System to meet the needs of the 21^st Century.".

SEC. 1204. MILITARY VEHICLE ACCESS (OVERSIZE AND OVERWEIGHT VEHICLES; RELIEF FROM TOLLS). [Analysis]

(a) PROCEDURES ON MILITARY VEHICLE ACCESS.--The Secretary of Transportation is authorized to issue, in consultation with the Secretary of Defense and the Secretary of Homeland Security, procedures and orders that will expedite the highway movement of all marked military vehicles and convoys. The procedures shall specifically address the expedited movement of marked military vehicles, including the establishment of temporary vehicle size and weight limits in excess of Federal and local maximum limits, expedited oversize/overweight permits, and exemptions from payment of local tolls and expedited movement through toll facilities.

(b) PREEMPTION.--A law, regulation, order, ruling, provision, or other requirement of a State, territory, Indian tribe, or political subdivision thereof, which covers the vehicles and movements described in paragraph (a) and which is not consistent with the procedures or related limitations established by the Secretary under that paragraph, is preempted. The Secretaries of Transportation, Homeland Security, and Defense, may request the Attorney General to bring a civil action seeking appropriate relief respecting the effect of such laws, regulations, orders, rulings, provisions or other requirements in any court of competent jurisdiction. Nothing in this section shall be construed as limiting claims or remedies otherwise available under law or equity.

(c) EXEMPTION FROM ADMINISTRATIVE PROCEDURE ACT.--A procedure established by the Secretary under paragraph (a) shall be exempt from the provisions of 5 U.S.C. 553.

SEC. 1205. FREIGHT TRANSPORTATION GATEWAYS; FREIGHT INTERMODAL CONNECTIONS. [Analysis]

(a) FREIGHT TRANSPORTATION GATEWAYS.--Chapter 3 of title 23, United States Code, is amended by adding after section 324 the following new section:

"§ 325. Freight transportation gateways

"(a) IN GENERAL.--

"(1) ESTABLISHMENT.--The Secretary shall establish a freight transportation gateways program to improve productivity, security, and safety of freight transportation gateways, while mitigating congestion and community impacts in the area of such gateways.

"(2) PURPOSES.--The purposes of the freight transportation gateways program shall be--

"(A) to facilitate and support multimodal freight transportation initiatives at the State and local levels in order to improve freight transportation gateways and mitigate the impact of congestion on the environment in the area of such gateways;

"(B) to provide capital funding to address infrastructure and freight operational needs at freight transportation gateways;

"(C) to encourage adoption of new financing strategies to leverage State, local, and private investment in freight transportation gateways; and

"(D) to support military mobilization and readiness.

"(b) STATE RESPONSIBILITIES.--

"(1) PROJECT DEVELOPMENT PROCESS.--Each State shall ensure that intermodal freight transportation, trade facilitation, and economic development needs are adequately addressed and fully integrated into the project development process, including transportation planning, through final design and construction of freight related transportation projects.

"(2) FREIGHT TRANSPORTATION COORDINATOR POSITION.--Each State shall designate a freight transportation coordinator. The coordinator shall be responsible for fostering public and private sector collaboration needed to implement complex solutions to freight transportation and freight transportation gateway problems, including coordination of metropolitan and statewide transportation activities with trade and economic interests and coordination with other States, local Department of Defense officials, local Department of Homeland Security officials, agencies, and organizations to find regional solutions to freight transportation problems. The coordinator shall also be responsible for advancing freight professional capacity building programs for the State.

"(c) INNOVATIVE FINANCE.-States and localities are encouraged to adopt innovative financing strategies for freight transportation gateway improvements, including new user fees; modifications to existing user fees, including trade facilitation charges; revenue options that incorporate private sector investment; and a blending of Federal-aid and innovative finance programs. The Secretary shall provide technical assistance to States and localities with respect to such strategies.

"(d) INTERMODAL FREIGHT TRANSPORTATION PROJECTS.--

"(1) USE OF SURFACE TRANSPORTATION PROGRAM FUNDS.-- A State may obligate funds apportioned to it under section 104(b)(3) of this title for publicly owned intermodal freight transportation projects that provide community and highway benefits by addressing economic, congestion, security, safety, and environmental issues associated with freight transportation gateways.

"(2) ELIGIBLE PROJECTS.--Projects eligible for funding under this section--

"(A) may include publicly-owned intermodal freight transfer facilities, access to such facilities, and operational improvements for such facilities (including capital investment for Intelligent Transportation Systems), except that projects located within the boundaries of port terminals shall only include the transportation infrastructure modifications necessary to facilitate direct intermodal access into and out of such port; and

"(B) may involve the combining of private and public sector funds.".

(b) ELIGIBILITY FOR SURFACE TRANSPORTATION PROGRAM FUNDS.--Section 133(b) of title 23, United States Code, is amended by adding at the end the following new paragraph:

"(15) Intermodal freight transportation projects in accordance with section

325(d)(2) of this title.".

(c) FREIGHT INTERMODAL CONNECTIONS TO NHS.--Section 103(b) of such title, is amended by adding at the end the following new paragraph:

"(7) FREIGHT INTERMODAL CONNECTIONS TO THE NHS---

"(A) FUNDING SET-ASIDE.--Of the funds apportioned to a State in each fiscal year under section 104(b)(1) of this title, an amount determined in accordance with subparagraph (B) of this paragraph shall only be available to such State to be obligated for projects on--

"(i) National Highway System routes connecting to intermodal freight terminals identified according to criteria set forth in the report to Congress entitled "Pulling Together: The National Highway System and its Connections to Major Intermodal Terminals" dated May 24, 1996, referenced in paragraph (1) of this subsection, and any modifications to these connections consistent with paragraph (4) of this subsection, and

"(ii) Strategic Highway Network (STRAHNET) connectors to strategic military deployment ports.

"(B) DETERMINATION OF AMOUNT.--The amount of funds for each State in a fiscal year that shall be set aside pursuant to subparagraph (A) of this paragraph shall be--

"(i) equal to the total amount of funds apportioned to such State under section 104(b)(1) of this title multiplied by the percentage of miles that routes set forth in subparagraph (A) of this paragraph constitute of the total miles on the National Highway System in such State, or

"(ii) two percent of the annual apportionment to the State of funds under 104(b)(1), whichever is greater.

"(C) EXEMPTION FROM SET-ASIDE.--In any fiscal year, a State may obligate the funds otherwise set aside by this paragraph on any project which is both eligible under paragraph (6) of this subsection and located in such State on a segment of the National Highway System set forth in paragraph (2) of this subsection if such State certifies and the Secretary concurs that--

"(i) the routes described in subparagraph (A) of this paragraph are in good condition and provide an adequate level of service for military vehicle and civilian commercial vehicle use, and

"(ii) significant needs on such routes are being met or do not exist.".

(d) DEFINITIONS AND DECLARATION OF POLICY.--Section 101(a) of such title is amended by redesignating paragraphs (11) through (37) as paragraphs (12) through (38), respectively, and inserting new paragraph (11) as follows:

"(11) FREIGHT TRANSPORTATION GATEWAY.--The term 'freight transportation gateway' means a nationally or regionally significant transportation port of entry or hub for domestic and global trade, military mobilization, and includes freight intermodal and Strategic Highway Network connections that provide access to and from these gateways.".

(e) FEDERAL SHARE PAYABLE.--Section 120 of such title is amended by adding at the end the following new subsection:

"(m) INCREASED FEDERAL SHARE FOR CONNECTORS.--On National Highway System intermodal freight connections and Strategic Highway Network connectors to strategic military deployment ports described in section 103(b)(7), the Federal share may be up to 90 percent of the total cost of the project.".

(f) LENGTH LIMITATIONS.--Section 31111(e) of title 49, United States Code, is amended by adding at the end "In the interests of economic competitiveness, security, and intermodal connectivity, States shall update these qualifying highways within three years of enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003 to include Strategic Highway Network connectors to strategic military deployment ports and National Highway System intermodal freight connections serving military and commercial truck traffic going to major intermodal terminals as described in section 103(b)(7).".

(g) CONFORMING AMENDMENT.-The analysis of chapter 3 of title 23 is amended by adding at the end the following:

"325. Freight transportation gateways.".

SEC. 1206. AUTHORITY FOR ALTERNATIVE TIME -SAVING PROCEDURES FOR CRITICAL TRANSPORTATION SECURITY PROJECTS. [Analysis]

(a) Critical, time sensitive highway and public transportation security projects are projects that are necessary to address an imminent threat to the security of a transportation facility or to repair damage to a transportation facility caused by a terrorist attack against the United States. Such projects shall be identified by the Secretary in consultation with the owner-operator of the facility and with the Secretary of Homeland Security.

(b) The Secretary of Transportation shall develop and implement expedited procedures for critical, time-sensitive highway and public transportation security projects. These procedures shall address planning, environmental review, public involvement, acquisition of rights-of-way, and contracting, and they shall be developed with the concurrence of other affected Federal agencies whose authorities will be affected by the procedures and in consultation with any other Federal agencies that the Secretary determines have an interest in the procedures. For the limited purpose of expediting interim measures needed to address an imminent threat to the security of a transportation facility, the Secretary may provide that these procedures are exclusive of any other statute relating to planning, environmental reviews, public involvement, acquisition of right-of-way, and contracting, so long as the Secretary determines that such measures are necessary for the protection of the public and receives the concurrence of any other Federal agency responsible for administering such statutes. The Secretary shall issue rules establishing these procedures within one year of the enactment of this law.

Subtitle C--Finance

SEC. 1301. FEDERAL SHARE. [Analysis]

Section 120 of title 23, United States Code, is amended-

(1) in subsection (a), by striking "shall be 90 percent" and all that follows through the end of the subsection and inserting "shall not exceed 90 percent of the total cost of the project.";

(2) in subsection (b), by striking "shall be" and all that follows through the end of the subsection and inserting "shall not exceed 80 percent of the total cost of the project."; and

(3) by striking subsection (d) and inserting the following:

"(d) INCREASED FEDERAL SHARE.--The Federal share payable under (a) and (b) may be increased in the case of any State containing nontaxable Indian lands, public lands (both reserved and unreserved), national forests, and national parks and monuments. The Federal share for any project subject to this section shall be increased by a percentage of the remaining cost equal to the percentage that the area of all such lands in a State is of its total area not to exceed 95 percent of the total cost of the project. These rates shall be revised as needed based on data provided by the Federal agencies responsible for maintaining the data.".

SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS. [Analysis]

Section 104(m) of title 23, as redesignated by this Act, is amended to read as follows:

"(m) TRANSFER OF HIGHWAY AND TRANSIT FUNDS.-

"(1) TRANSFER OF HIGHWAY FUNDS FOR TRANSIT PROJECTS.-Funds made available for transit projects or transportation planning under this title may be transferred to and administered by the Secretary in accordance with chapter 53 of title 49, except that the provisions of this title relating to the non-Federal share shall apply to the transferred funds.

"(2) TRANSFER OF TRANSIT FUNDS FOR HIGHWAY PROJECTS.-Funds made available for highway projects or transportation planning under chapter 53 of title 49 may be transferred to and administered by the Secretary in accordance with this title, except that the provisions of such chapter relating to the non-Federal share shall apply to the transferred funds.

"(3) TRANSFER OF HIGHWAY FUNDS TO OTHER FEDERAL AGENCIES.-Except as provided in paragraphs (1) and (2), when an expenditure is specifically authorized in Federal-aid highway legislation, as a line item in an appropriation act, or when a State transportation department consents to a transfer of funds under this title that are derived from the Highway Trust Fund (other than the Mass Transit account), such funds may be transferred to another Federal agency subject to subparagraphs (A), (B), (C), and (D) of this paragraph--

"(A) if the Secretary determines, after consultation with the State transportation department as appropriate, that another Federal agency should carry out a project with funds made available under this title or any other act that are derived from Highway Trust Fund (other than the Mass Transit account);

"(B) the project will be administered by the Federal agency under its procedures, and such funds shall not be deemed to be an augmentation of that agency"s appropriations;

"(C) such other Federal agency agrees to accept the transfer of funds and to administer those funds; and

"(D) the provisions of this title or the acts referred to above relating to the non-Federal share shall apply to the transferred funds, except where the Secretary determines that it is in the best interest of the United States that such share be waived.

"(4) TRANSFER OF FUNDS AMONG STATES OR TO THE FEDERAL HIGHWAY ADMINISTRATION.-The Secretary may, at the request of a State, transfer funds apportioned or allocated to such State to another State or to the Federal Highway Administration for the purpose of funding a specific project or projects. The funds transferred shall be used for the same purpose and in the same manner for which they were authorized. Such transfer shall have no effect on any apportionment formula used to distribute funds to the States under sections 104, 105, or 144. Funds that are apportioned or allocated to a State under section 104(b)(3) and attributed to urbanized areas of a State with a population of over 200,000 individuals under section 133(d)(2) may be transferred under this subsection only if the metropolitan planning organization designated for the area concurs, in writing, with the transfer request.

"(5) TRANSFER OF OBLIGATION AUTHORITY.-Obligation authority shall be transferred in the same manner and amount as the funds for the projects are transferred under this section.".

SEC. 1303. STATE INFRASTRUCTURE BANK PILOT PROGRAM. [Analysis]

(a) DEFINITIONS.-In this section, the following definitions apply:

(1) CAPITAL PROJECT.--The term "capital project" has the meaning such term has under section 5302 of title 49, United States Code.

(2) OTHER ASSISTANCE.--The term "other assistance" includes any use of funds in an infrastructure bank-

(A) to provide credit enhancements;

(B) to serve as a capital reserve for bond or debt instrument financing;

(D) to ensure the issuance of letters of credit and credit instruments;

(E) to finance purchase and lease agreements with respect to transit projects;

(F) to provide bond or debt financing instrument security; and

(G) to provide other forms of debt financing and methods of leveraging funds that are approved by the Secretary and that relate to the project with respect to which such assistance is being provided.

(3) STATE.--The term "State" has the meaning such term has under section 101 of title 23, United States Code.

(4) CAPITALIZATION.--The term "capitalization" means the process used for depositing funds as initial capital into a State Infrastructure Bank to establish the infrastructure bank.

(5) COOPERATIVE AGREEMENT.--The term "cooperative agreement" means the written consent between a State and the Secretary which sets forth the manner in which the State Infrastructure Bank will be administered.

(6) LOAN.--The term "loan" means any form of direct financial assistance from the State Infrastructure Bank, required to be repaid over a period of time, which is provided to a project sponsor for all or part of project costs.

(7) GUARANTEE.--The term "guarantee" means a contract or contracts entered into by the State Infrastructure Bank in which the State Infrastructure Bank agrees to take responsibility for all or a portion of a project sponsor's financial obligations for a project under specified conditions.

(8) INITIAL ASSISTANCE.--The term "initial assistance" means the first round of State Infrastructure Bank funds that must be loaned or used for credit enhancement for purposes limited to highway construction under title 23 or transit capital projects under title 49.

(9) LEVERAGE.--The term "leverage" means a financial structure used to increase State Infrastructure Bank funds through debt issuance. A State Infrastructure Bank is considered leveraged if its total potential liabilities exceed its equity.

(b) PILOT PROGRAM.--

(1) COOPERATIVE AGREEMENTS.-Subject to the provisions of this section, the Secretary may enter into cooperative agreements with up to five States, including States that entered into cooperative agreements under section 1511 of the Transportation Equity Act for the 21^st Century, as amended, for the establishment of State infrastructure banks for making loans and providing other forms of credit assistance to public and private entities carrying out or proposing to carry out projects eligible for assistance under this section.

(2) APPLICATION.-- To participate in the pilot program, a State shall submit an application to the Secretary.

(3) SELECTION CRITERIA.--In evaluating applications for participation in the pilot program, the Secretary shall establish selection criteria that shall include--

(A) the State's ability to provide non-Federal funds to capitalize the bank;

(B) the existence of State enabling legislation that clearly allows for full State Infrastructure Bank participation;

(D) the amount of Federal funds the State will commit to the State Infrastructure Bank as a percentage of its Federal-aid apportionments;

(E) the State's eligibility under section 1511 of the Transportation Equity Act for the 21^st Century, as amended; and

(F) the State's past experience with a State Infrastructure Bank, including the program established under section 1511 of the Transportation Equity Act for the 21^st Century, as amended, or comparable financing mechanisms.

(4) TERMINATION OF COOPERATIVE AGREEMENT.--If a State that has been selected for this pilot program does not fund its State Infrastructure Bank within 90 days after execution of the cooperative agreement, the Secretary may terminate the cooperative agreement and may select another State to participate in the pilot program in accordance with this subsection.

(c) INTERSTATE COMPACTS.-Congress grants consent to 2 or more of the States, entering into a cooperative agreement under subsection (b)(1) with the Secretary for the establishment of a multi-state infrastructure bank, to enter into an interstate compact establishing such bank in accordance with this section.

(d) FUNDING.-

(1) HIGHWAY ACCOUNT.--Subject to subsection (i), the Secretary may permit a State entering into a cooperative agreement under this section to contribute not to exceed-

(A) 10 percent of the funds apportioned to the State for each of fiscal years 2004 through 2009 under each of sections 104(b)(1), 104(b)(3), 104(b)(4), and 144, of title 23, United States Code, and

(B) 10 percent of the funds allocated to the State for each of such fiscal years under section 105 of such title into the highway account of the infrastructure bank established by the State. Federal funds contributed to such account under this paragraph shall constitute for purposes of this section a capitalization grant for the highway account of the infrastructure bank.

(2) TRANSIT ACCOUNT.--Subject to subsection (i), the Secretary may permit a State entering into a cooperative agreement under this section, and any other Federal transit grant recipient, to contribute not to exceed 10 percent of the funds made available to the State or other Federal transit grant recipient in each of fiscal years 2004 through 2009 for capital projects under sections 5307, 5309, and 5311 of title 49, United States Code, into the transit account of the infrastructure bank established by the State. Federal funds contributed to such account under this paragraph shall constitute for purposes of this section a capitalization grant for the transit account of the infrastructure bank.

(3) SPECIAL RULE FOR URBANIZED AREAS OF OVER 200,000.-Funds that are attributed to urbanized areas of States with urbanized populations of over 200,000 under section 133(d)(2) of title 23, as amended by this Act, may be used to provide assistance with respect to a project only if the metropolitan planning organization designated for such area concurs, in writing, with the provision of such assistance.

(4) DISCONTINUANCE OF FUNDING.--If the Secretary determines that a State is not implementing the State Infrastructure Bank in accordance with the cooperative agreement, the Secretary may prohibit a State from contributing additional Federal funds to its State Infrastructure Bank.

(e) FORMS OF ASSISTANCE FROM INFRASTRUCTURE BANKS.-An

infrastructure bank established under this section may make loans or provide other credit assistance to a public or private entity in an amount equal to all or part of the cost of carrying out a project eligible for assistance under this section. The amount of any loan or other credit assistance provided for such project may be subordinated to any other debt financing for the project. Initial assistance provided with respect to a project from Federal funds contributed to an infrastructure bank under this section may not be made in the form of a grant.

(f) QUALIFYING PROJECTS.-Subject to paragraph (e), funds in an infrastructure bank established under this section may be used only to provide assistance with respect to projects eligible for assistance under title 23, United States Code, for capital projects (as defined in section 5302 of title 49, United States Code), or for any other project related to surface transportation that the Secretary determines to be appropriate.

(g) INFRASTRUCTURE BANK REQUIREMENTS.-In order to establish an infrastructure bank under this section, each State establishing the bank shall--

(1) contribute, at a minimum, into each account of the bank from non-Federal sources an amount equal to 25 percent of the amount of each capitalization grant made to the State and contributed to the bank, except that if the contribution is into the highway account of the bank and the State has a lower non-Federal share under section 120(d) of title 23, as amended by this Act, such percentage shall be adjusted by the Secretary to correspond with such lower non-Federal share. The non-Federal share must be in the form of cash;

(2) ensure that the bank maintains on a continuing basis an investment grade rating on its debt or has a sufficient level of bond or debt financing instrument insurance to maintain the viability of the bank;

(3) ensure that investment income generated by funds contributed to an account of the bank will be-

(A) credited to the account;

(B) available for use in providing loans and other assistance to projects eligible for assistance from the account; and

(C) invested in United States Treasury securities, bank deposits, or such other financing instruments as the Secretary may approve to earn interest to enhance the leveraging of projects assisted by the bank;

(4) ensure that any loan from the bank will bear interest at or below market interest rates, as determined by the State, to make feasible the project that is the subject of the loan;

(5) ensure that repayment of any loan from the bank will commence not later than 5 years after the project has been completed or, in the case of a highway project, the facility has opened to traffic, whichever is later;

(6) ensure that the term for repaying any loan will not exceed 30 years after the date of the first payment on the loan under paragraph (5); and

(7) require the bank to make an annual report to the Secretary on its status, and to make such other reports as the Secretary may require by guidelines.

(h) SECRETARIAL REQUIREMENTS.-In administering this section, the Secretary shall-

(1) issue guidelines to ensure that all requirements of title 23, United States Code, or title 49, United States Code, that would otherwise apply to funds made available under such title and projects assisted with such funds apply to--

(A) funds made available under such title and contributed to an infrastructure bank established under this section; and

(B) projects assisted by the bank through the use of such funds; except to the extent that the Secretary determines that any requirement of such title (other than sections 113 and 114 of title 23 and section 5333 of title 49), is not consistent with the objectives of this section; and

(2) specify procedures and guidelines for establishing, operating, and providing assistance from the bank.

(i) APPLICABILITY OF FEDERAL LAW TO REPAYMENTS.-The requirements of title 23 and title 49, United States Code, shall apply to projects financed from repayments to an infrastructure bank from projects assisted by the bank. Such repayments shall be considered to be Federal funds for the purpose of this subsection.

(j) UNITED STATES NOT OBLIGATED.-The contribution of Federal funds into an infrastructure bank established under this section shall not be construed as a commitment, guarantee, or obligation on the part of the United States to any third party, nor shall any third party have any right against the United States for payment solely by virtue of the contribution. Any security or debt-financing instrument issued by the infrastructure bank shall expressly state that the security or instrument does not constitute a commitment, guarantee, or obligation of the United States.

(k) MANAGEMENT OF FEDERAL FUNDS.-Sections 3335 and 6503 of title 31, United States Code, shall not apply to funds contributed under this section.

(l) PROGRAM ADMINISTRATION.-For each of fiscal years 2004 through 2009, a State may expend not to exceed 2 percent of the Federal funds contributed to an infrastructure bank established by the State under this section to pay the reasonable costs of administering the bank. This limitation shall not apply to non-Federal funds.

SEC. 1304. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT (TIFIA) AMENDMENTS. [Analysis]

(a) DEFINITIONS.-Section 181 of title 23, United States Code is amended-

(1) in paragraph (3), by striking "category" and "offered into the capital markets";

(2) by striking paragraph (7) and redesignating paragraphs (8) through (15) as paragraphs (7) through (14) respectively;

(3) by amending paragraph (8)(D), as redesignated, to read as follows-

"(D) a public or private freight rail facility; an intermodal freight transfer facility; access to such facilities; and service improvements for such facilities including capital investment for Intelligent Transportation Systems; or a group of such projects with the common objective of improving the flow of goods, except that projects located within the boundaries of port terminals shall only include the transportation infrastructure modifications necessary to facilitate direct intermodal access into and out of such port. Such a project may involve the combining of private and public sector funds, including investment of public funds in private sector facility improvements."; and

(4) in paragraph (10), as redesignated, by striking "bond" and inserting "credit".

(b) DETERMINATION OF ELIGIBILITY AND PROJECT SELECTION.- Section 182 of such title is amended-

(1) in subsection (a)-

(A) by striking paragraphs (1) and (2) and inserting the following:

"(1) INCLUSION IN TRANSPORTATION PLANS AND PROGRAMS.-The project shall satisfy the applicable planning and programming requirements of sections 134 and 135 at such time as an agreement to make available a Federal credit instrument is entered into under this subchapter.

"(2) APPLICATION.-A State, a local government, public authority, public-private partnership, or any other legal entity undertaking the project and authorized by the Secretary, shall submit a project application to the Secretary.";

(B) in paragraph (3)(A)(i), by striking "$100,000,000" and inserting "$50,000,000"; and

(C) in paragraph (4), by striking "Project financing" and inserting "The Federal credit instrument" and by adding at the end of the sentence "that also secure the project obligations"; and

(2) in subsection (b)(1), by striking "criteria" after "eligibility" and inserting "requirements" and in subsection (b)(2)(B) by inserting ", which may be the Federal credit instrument," after "obligations".

(1) in subsection (a)-

(A) by striking "of any project selected under section 182." at the end of paragraph (1);

(B) by inserting "of any project selected under section 182" after "costs" in paragraphs (1)(A) and (1)(B); and

(C) in paragraph (4), by striking "funding" and inserting "execution" and by inserting a period in place of the comma after "receiving an investment grade rating" and striking all that follows to the end of the paragraph;

(2) in subsection (b)-

(A) by inserting "the lesser of" after "exceed" and "or the amount of the senior project obligations" after "costs";

(B) by inserting "that also secure the senior project obligations" in paragraph (3)(A)(i) after "sources"; and

(3) in subsection (c), by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4) respectively;

(d) LINES OF CREDIT.-Section 184 of such title is amended-

(1) in subsection (b)-

(A) in paragraph (3), by striking the comma after "interest" and by striking "any debt service reserve fund, and any other available reserve", and by inserting "but not including reasonably required financing reserves";

(B) in paragraph (4), by striking "marketable"; by striking "on which" after "date" and inserting "of execution of"; and by striking "is obligated" after "credit" and inserting "agreement"; and

(2) in subsection (c)-

(A) in paragraph (2) by striking "scheduled", by inserting "be scheduled to" after "shall", and by striking "be fully repaid, with interest," and inserting "to conclude, with full repayment of principle and interest,"; and

(B) by striking paragraph (3).

(e) PROGRAM ADMINISTRATION.-Section 185 of such title is amended to read as follows:

"§ 185. Program administration

"(a) REQUIREMENT.-The Secretary shall establish a uniform system to service the Federal credit instruments made available under this subchapter.

"(b) FEES.-The Secretary may establish fees at a level to cover all or a portion of the costs to the Federal government of servicing the Federal credit instruments.

"(c) SERVICER.-The Secretary may identify a financial entity to assist the Secretary in servicing the Federal credit instruments. The servicer-

"(1) shall act as the agent for the Secretary; and

"(2) shall receive a servicing fee, subject to approval by the Secretary.

"(d) ASSISTANCE FROM EXPERT FIRMS.-The Secretary may retain the services of expert firms, including counsel, in the field of municipal and project finance to assist in the underwriting and servicing of Federal credit instruments.".

(f) FUNDING.-Section 188 of such title is amended to read as follows:

"§ 188. Funding

"(a) FUNDING.-

"(1) IN GENERAL.-There are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) $130,000,000 for each of fiscal years 2004 through 2009 to carry out this subchapter.

"(2) ADMINISTRATIVE COSTS.-From funds made available under paragraph (1), the Secretary may use, for the administration of this subchapter, not more than $3,000,000 for each of fiscal years 2004 through 2009.

"(3) AVAILABILITY.-Amounts made available under paragraph (1) shall remain available until expended.

"(b) CONTRACT AUTHORITY.-

"(1) IN GENERAL.-Notwithstanding any other provision of law, approval by the Secretary of a Federal credit instrument that uses funds made available under this subchapter shall be deemed to be acceptance by the United States of a contractual obligation to fund the Federal credit investment.

"(2) AVAILABILITY.-Amounts authorized under this section for a fiscal year shall be available for obligation on October 1 of the fiscal year.

"(c) LIMITATIONS ON CREDIT AMOUNTS.-For each of fiscal years 2004 through 2009, principal amounts of Federal credit instruments made available shall be limited to $2,600,000,000.".

(g) Section 189 of such title is repealed.

(h) CONFORMING AMENDMENTS.--The analysis of chapter 1 of title 23 is amended by--

(1) revising the item relating to section 185 to read as follows:
"185. Program administration."; and

(2) striking the item relating to section 189.

SEC. 1305. INTERNATIONAL REGISTRATION PLAN AND INTERNATIONAL FUEL TAX AGREEMENT FACILITATION. [Analysis]

The Secretary may provide assistance to any State that is participating in the International Registration Plan and International Fuel Tax Agreement, as provided in sections 31704 and 31705 of title 49, United States Code, and that serves as a base jurisdiction for motor carriers that are domiciled in Mexico, to help the State with administration needs resulting from serving as a base jurisdiction for motor carriers from Mexico.

SEC. 1306. COMMERCIALIZED REST AREA PILOT PROJECTS. [Analysis]

(a) IN GENERAL.--The Secretary shall permit the States to conduct pilot projects to acquire, construct, operate, convert, and maintain rest areas along Interstate highways in their States in accordance with subsection (b).

(b) COMMERCIAL OPERATIONS.-

(1) ELIGIBILITY.--Notwithstanding section 111 of title 23 United States Code, and the project agreements required by section 111(a) and executed between the States and the Federal Highway Administration, the Secretary shall permit the rest areas in the pilot projects to include commercial operations that provide goods, services, and information that benefit the traveling public and the commercial motor carrier industry, and as deemed appropriate by the States, including:

(A) commercial advertising and displays if such advertising and media displays are:

(i) exhibited solely within any facility constructed in the rest area; and

(ii) not legible from the main traveled way;

(B) programs to provide commercial vehicle operators with special services designed to enhance motor carrier and highway safety; and

(2) PRIVATE OPERATORS.--The States may permit such commercial operations to be run by a private operator.

(c) PARTICIPATION.--Participation in this pilot project is limited to those proposals submitted to the Secretary for approval during the one year period after the date of enactment of this Act.

(d) PROPOSALS.--

(1) The State proposals shall at a minimum--

(A) describe the types of goods, services and information to be provided;

(B) demonstrate that the proposed project(s) helps implement the strategies developed in the "Study of Adequacy of Parking Facilities" prepared pursuant to section 4027 of the Transportation Equity Act for the 21st Century;

(C) contain a review and update of the individual State action plans for addressing commercial truck parking shortages; and

(D) prepare a plan for evaluating the results of the pilot project(s) in that State.

(2) The Secretary must determine that commercial rest area projects being advanced under this pilot program will meet all of the design standards applicable to rest areas on the Interstate system.

(e) LIMITATION ON USE OF REVENUES.-- Any revenues received by a State from the commercial operations in a rest area under this section that are in excess of amounts required for the proper operation and maintenance of the rest area shall be used by the State for projects eligible under title 23, United States Code.

(f) CONSIDERATIONS.-The Secretary shall consider the benefit to the traveling public and the impact on local businesses in carrying out this section.

(g) VENDING MACHINES.--If vending machines are placed in a pilot project, the State shall give priority to vending machines operated through the State licensing agency designated under the Randolph-Sheppard Act.

SEC. 1307. HIGHWAY USE TAX EVASION PROJECTS. [Analysis]

(a) ELIGIBLE ACTIVITIES.- Section 143(b) of title 23, United States Code, is amended as follows:

(1) INTERGOVERNMENTAL ENFORCEMENT EFFORTS.--Paragraph (2) is amended by inserting a comma after "Secretary" and adding "except that for each of fiscal years 2004 through 2009, $2,000,000 shall be available only to carry out intergovernmental enforcement efforts, including research and training".

(2) CONDITIONS ON FUNDS ALLOCATED TO INTERNAL REVENUE SERVICE.--Paragraph (3) is amended by inserting a comma after "subsection" and adding "except as otherwise provided in this section".

(3) LIMITATION ON USE OF FUNDS.--Paragraph (4) is amended--

(A) by striking "and" at the end of subparagraph (F);

(B) by striking the period at the end of subparagraph (G) and inserting a semicolon; and

"(H) to support efforts between States and Tribes to address issues related to state motor fuel taxes; and

"(I) to analyze and implement programs to reduce tax evasion associated with foreign imported fuel.".

(4) REPORTS.--The following new paragraph is added at the end:

"(9) REPORTS.-The Internal Revenue Service and States shall submit to the Secretary annual reports that describe the projects, examinations, and criminal investigations funded by and carried out under this section. The reports must specify the annual yield estimated for each project funded under this section.".

(b) EXCISE FUEL REPORTING SYSTEM.- Section 143(c) of such title is amended--

(1) in paragraph (1) by striking "Not later than August 1, 1998," and inserting "Not later than 90 days after enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003,"; by striking "development" and inserting "completion, operation,"; by striking "an excise fuel reporting system" and inserting "the excise summary terminal activity reporting system"; and by striking "(in this subsection referred to as the "system")";

(2) in paragraph (2)--

(A) by striking "the system" each place it appears and inserting "the excise summary terminal activity reporting system ";

(B) in subparagraph (A), by striking "develop" and inserting "complete";

(D) by striking the period at the end of subparagraph (C) and inserting "; and"; and

(E) by adding at the end the following new subparagraph:

"(D) the Commissioner of the Internal Revenue Service shall submit and the Secretary shall approve a budget and project plan for the completion, operation, and maintenance of the excise summary terminal activity reporting system."; and

(3) by amending paragraph (3) to read as follows:

"(3) FUNDING.-Of the amounts made available to carry out this section for each of fiscal years 2004 through 2009, the Secretary shall make funds available to the Internal Revenue Service to complete, operate, and maintain the excise summary terminal activity reporting system in accordance with this subsection.".

(c) REGISTRATION SYSTEM AND ELECTRONIC DATABASE.--Section 143 as amended by this Act is further amended by adding at the end the following new subsections:

"(d) PIPELINE, VESSEL, AND BARGE REGISTRATION SYSTEM.--

"(1) IN GENERAL.--Not later than 90 days after enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003, the Secretary shall enter into a memorandum of understanding with the Commissioner of the Internal Revenue Service for the purposes of the development, operation, and maintenance of a registration system for pipelines, vessels, and barges, and operators of such pipelines, vessels, and barges, that make bulk transfers of taxable fuel.

"(2) ELEMENTS OF MEMORANDUM OF UNDERSTANDING.--The memorandum of understanding shall provide that--

"(A) the Internal Revenue Service shall develop and maintain the registration system through contracts;

"(B) the Commissioner of the Internal Revenue Service shall submit and the Secretary shall approve a budget and project plan for development, operation, and maintenance of the registration system;

"(C) the registration system shall be under the control of the Internal Revenue Service; and

"(D) the registration system shall be made available for use by appropriate State and Federal revenue, tax, and law enforcement authorities, subject to section 6103 of the Internal Revenue Code of 1986.

"(3) FUNDING.-Of the amounts made available to carry out this section for each of fiscal years 2004 through 2009, the Secretary shall make funds available to the Internal Revenue Service to complete, operate, and maintain a registration system for pipelines, vessels, and barges, and operators of such pipelines, vessels, and barges, that make bulk transfers of taxable fuel in accordance with this subsection.

"(e) HEAVY VEHICLE USE TAX PAYMENT DATABASE.--

"(1) IN GENERAL.--Not later than 90 days after enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003, the Secretary shall enter into a memorandum of understanding with the Commissioner of the Internal Revenue Service for the purposes of the establishment, operation, and maintenance of an electronic database of heavy vehicle highway use tax payments.

"(2) ELEMENTS OF MEMORANDUM OF UNDERSTANDING.--The memorandum of understanding shall provide that--

"(A) the Internal Revenue Service shall establish and maintain the electronic database through contracts;

"(B) the Commissioner of the Internal Revenue Service shall submit and the Secretary shall approve a budget and project plan for establishment, operation, and maintenance of the electronic database;

"(C) the electronic database shall be under the control of the Internal Revenue Service; and

"(D) the electronic database shall be made available for use by appropriate State and Federal revenue, tax, and law enforcement authorities, subject to section 6103 of the Internal Revenue Code of 1986.

"(3) FUNDING.-Of the amounts made available to carry out this section for each of fiscal years 2004 through 2009, the Secretary shall make funds available to the Internal Revenue Service to establish, operate, and maintain an electronic database of heavy vehicle highway use tax payments in accordance with this subsection.

"(f) By March 30 and September 30 of each year, the Internal Revenue Service shall provide reports to the Secretary on the status of the Internal Revenue Service projects funded under this section related to the excise summary terminal activity reporting system; the pipeline, vessel, and barge registration system; and the heavy vehicle use tax electronic database.".

(d) ALLOCATIONS.--Of the amounts authorized to be appropriated under section 1101(a)(14) of this Act for Highway Use Tax Evasion Projects for each of fiscal years 2004 through 2009, $4,500,000 shall be allocated to the States, and for fiscal year 2004, $20,050,000 shall be allocated to the Internal Revenue Service, of which $10,500,000 shall be dedicated to the excise summary terminal activity reporting system, for each of fiscal years 2005 and 2006, $48,000,000 shall be allocated to the Internal Revenue Service, of which $4,500,00 shall be dedicated to the excise summary terminal activity reporting system, for fiscal year 2007, $38,000,000 shall be allocated to the Internal Revenue Service, of which $4,500,00 shall be dedicated to the excise summary terminal activity reporting system, and for each of fiscal years 2008 and 2009, $4,500,000 shall be allocated to the Internal Revenue Service, which shall be used for the excise summary terminal activity reporting system.

Subtitle D. Program Efficiencies and Improvements - Safety

SEC. 1401. NATIONAL HIGHWAY SAFETY GOAL; NATIONAL BLUE RIBBON COMMISSION ON HIGHWAY SAFETY. [Analysis]

(a) NATIONAL HIGHWAY SAFETY GOAL.-Section 101 of title 23, United States Code, is amended by adding at the end the following new subsection:

"(f) It is hereby declared to be in the national interest that the number of deaths attributable to traffic accidents on America's highways be significantly reduced. To achieve this goal, a national initiative targeted at saving lives through improved engineering, education, enforcement, and emergency response in cooperation with new and existing State and local safety programs is hereby authorized.".

(b) NATIONAL BLUE RIBBON COMMISSION ON HIGHWAY SAFETY.-

(1) ESTABLISHMENT.-The Secretary shall establish a National Blue Ribbon Commission on Highway Safety (hereinafter in this section referred to as "the Commission").

(2) MEMBERSHIP.--

(A) COMPOSITION.--The Commission shall be composed of 15 members as follows--

(i) the Secretary or the Secretary's delegate;

(ii) the Administrators of the Federal Highway Administration; the National Highway Traffic Safety Administration; the Federal Motor Carrier Safety Administration; and the Federal Railroad Administration, or the Administrators' delegates; and

(iii) 10 members appointed by the Secretary from among individuals who represent the interests of States and political subdivisions of States, the safety community, public health, and State and local law enforcement agencies, and who have been nominated by the Committee on Environment and Public Works and the Committee on Commerce, Science and Transportation of the United States Senate and the Committee on Transportation and Infrastructure of the United States House of Representatives.

(B) APPOINTMENT.--The Secretary shall select the individuals to be appointed under this subsection on the basis of their knowledge, expertise, or experience related to highway safety. Half of the appointments shall be made from nominees submitted by the Committee on Environment and Public Works and the Committee on Commerce, Science and Transportation of the Senate and the other half from the nominees submitted by the Committee on Transportation and Infrastructure of the House of Representatives. Each of these committees shall nominate 20 individuals qualified to serve on the Commission.

(C) TERMS.--The term of each member of the Commission shall be 6 years. Any vacancy shall be filled in the manner the original appointment was made. The vacancy does not affect the Commission's powers.

(3) FUNCTION.-The Commission, to carry out the direction of Congress, under section 101(f) of title 23, United States Code as amended by this Act, that the number of deaths attributable to traffic accidents on America's highways be significantly reduced, shall-

(A) oversee a comprehensive study evaluating the Nation's highway safety needs over the next three decades in the areas of engineering, education, enforcement, and emergency response and, based on such study, make specific recommendations to the Secretary for an achievable national goal for the reduction of highway fatalities and for the funding necessary to achieve such goal;

(B) assist in developing a national consensus in support of such goal; and

(C) advise, consult with, and make recommendations to, the Secretary to assist in identifying specific measures for achieving the national highway safety goal.

(4) SPECIFIC MATTERS TO BE ADDRESSED.-The national highway safety goal study conducted by the Commission shall examine the roles of highway infrastructure, drivers, and vehicles in fatalities on all public roads; identify high risk areas and activities associated with the greatest numbers of highway fatalities; examine the roles of various levels of government agencies and non-governmental organizations in reducing highway fatalities and recommend ways to strengthen highway safety partnerships; and identify measures that will save the most lives both long term and short term. The study shall consider, among other things, the findings, conclusions, and recommendations of highway safety studies and research conducted by the Transportation Research Board, including studies related to implementation of the American Association of State Highway and Transportation Officials' Strategic Highway Safety Plan.

(5) REPORTS TO CONGRESS.--

(A) INITIAL REPORT.--Not later than September 30, 2006, the Commission shall transmit to Congress an initial report on the results of the national highway safety goal study, including recommendations and such legislative recommendations as the President judges necessary and expedient for an achievable national goal for the reduction of highway fatalities and for preliminary strategies to be implemented to achieve such goal.

(B) FINAL REPORT.--Not later than February 1, 2009, the Commission shall transmit to Congress a final report on the results of the national highway safety goal study, including recommendations and such legislative recommendations as the President judges necessary and expedient for a comprehensive plan with specific strategies to achieve the fatality reduction goal recommended in the initial report and for the level of funding necessary to implement such fatality reduction plan and strategies.

(6) TERMINATION OF COMMISSION.--The Commission shall

terminate on the 180^th day following the date of transmittal of the final report to Congress under paragraph (5)(B) of this subsection. By the 180^th day, all records and papers of the Commission shall be delivered to the Administrator of the General Services Administration for deposit in the National Archives.

(7) AUTHORIZATION OF APPROPRIATIONS.--There are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account) up to $3,000,000 for fiscal year 2004, $1,000,000 for fiscal year 2005, $1,000,000 for fiscal year 2006, $1,000,000 for fiscal year 2007, $500,000 for fiscal year 2008, and $500,000 for fiscal year 2009 for the purposes of carrying out this subsection.

(8) APPLICABILITY OF TITLE 23.--Funds authorized by this subsection shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, except that the Federal share of the cost of the study and the Commission under this section shall be 100 percent, and such funds shall remain available until expended.

SEC. 1402. HIGHWAY SAFETY IMPROVEMENT PROGRAM; FLEXIBILITY FOR SAFETY INITIATIVES [Analysis]

(a) ESTABLISHMENT OF PROGRAM.--Chapter 1 of title 23, United States Code, is amended by inserting the following new section after section 149:
"§ 150. Highway Safety Improvement Program

"(a) ESTABLISHMENT.--The Secretary shall establish and implement a highway safety improvement program in accordance with this section, in order to significantly reduce fatalities and serious injuries on the Nation's roadway system.

"(b) PROGRAM.--

"(1) STATE RESPONSIBILITIES.--To receive funds under this section, each State shall have a process in place that identifies and analyzes highway safety problems and opportunities and will produce a program of projects for funding under this section based on this analysis. Such process and program of projects shall be known as the Highway Safety Improvement Program. The statewide program shall identify hazardous locations, sections, and elements including roadside obstacles, railway-highway crossing needs, and unmarked or poorly marked roads that may constitute a danger to motorists, bicyclists, pedestrians, and other highway users. States shall also have crash data systems and the ability to perform safety problem identification and countermeasure analysis.

"(2) PROGRAM ADMINISTRATION.--The Secretary shall establish implementing guidelines for this program, which shall include at a minimum the following components:

"(A) STRATEGIC APPROACH TO HIGHWAY SAFETY.--Each State shall, as appropriate, adopt strategic and performance-based goals for its Highway Safety Improvement Program. This statewide program shall address safety problems and opportunities on all roadways within the State, focus resources on areas of greatest need, and be complementary to the programs developed in response to section 402 of this title.

"(B) DATA IMPROVEMENT PROGRAM.-Each State shall, as appropriate, advance its capabilities for traffic records data collection, analysis, and integration with other sources of safety data such as roadway inventories. Such a data improvement program shall be complementary to the programs supported by sections 402 and 412 of this title; include all public roads; and contain provisions to identify hazardous locations, sections, and elements on these public roads that constitute a danger to motorists, bicyclists, and pedestrians.

"(C) PROGRAM OF IMPROVEMENTS.-Each State shall determine priorities for the correction of hazardous roadway locations, sections, and elements, including railway-highway crossing improvements, as identified through crash data analysis; identify opportunities for preventing the development of such hazardous conditions; and establish and implement a schedule of safety improvement projects for hazard correction and hazard prevention.

"(D) EVALUATION.-Each State shall, as appropriate, establish an evaluation process to analyze and assess results achieved by safety improvement projects carried out in accordance with procedures and criteria established by this section, and such information shall be used in setting priorities for safety improvement projects.

"(c) REPORTS.--Each State shall report to the Secretary on progress being made

to implement safety improvement projects under this section and the effectiveness of such improvements. The Secretary shall establish the content and schedule for such reports.

"(d) ELIGIBLE PROJECTS.-

"(1) IN GENERAL.-A State may obligate funds apportioned to it under this section for any safety improvement project on any public road or publicly-owned bicycle or pedestrian pathway or trail.

"(2) SAFETY IMPROVEMENT PROJECT.-For purposes of this section the term 'safety improvement project' means a project that corrects or improves a hazardous roadway location or feature, or proactively addresses highway safety problems, including: intersection improvements, pavement and shoulder widening, installation of rumble strips and other warning devices, improving skid resistance, improvements for pedestrian or bicyclist safety, railway-highway crossing safety, traffic calming, elimination of roadside obstacles, improving highway signage and pavement marking, installing priority control systems for emergency vehicles at signalized intersections, installing traffic control or warning devices at locations with high accident potential, safety conscious planning, and improving crash data collection and analysis.

"(e) FUNDING.-Sums authorized to be appropriated to carry out this section shall be apportioned in accordance with section 104(b)(5).

"(f) FEDERAL SHARE.-The Federal share payable on account of any project carried out under this section shall be 90 percent of the cost thereof.

"(g) USE OF FUNDS.--Beginning in fiscal year 2005 and for each fiscal year thereafter, 10 percent of the funds available to a State to carry out the highway safety improvement program established in accordance with this section shall be obligated for projects under section 402 of this title, unless by October 1 of the fiscal year in which funds become available to a State the State has enacted a primary safety belt law or the State demonstrates that the safety belt use rate in that State meets or exceeds 90 percent. A State subject to the provisions of this subsection must have in place or adopt a strategic highway safety plan in accordance with section 151 of this title. Activities funded under this subsection shall be consistent with such a plan.

"(h) Use of Other Funding for Safety.-Nothing in this section shall be interpreted to prohibit the use of funds made available under other sections of this title for highway safety improvement projects, and States are to encouraged to address the full scope of their safety needs and opportunities by using other funds unless provisions exist that prohibit such use.".

(b) APPORTIONMENT OF HIGHWAY SAFETY IMPROVEMENT PROGRAM FUNDS.-Section 104 of such title is amended--

(1) by inserting in subsection (a) "the Highway Safety Improvement Program under section 150," after "section 204,";

(2) by inserting in subsection (b) "the Highway Safety Improvement Program," after "Improvement Program,"; and

(3) by adding at the end of subsection (b) the following new paragraph:

"(5) HIGHWAY SAFETY IMPROVEMENT PROGRAM.-

"(A) IN GENERAL.-- For the Highway Safety Improvement Program, in accordance with the following formula:

"(i) 25 percent of the apportionments in the ratio that--

"(I) the total lane miles of Federal-aid highways in each State; bears to

"(II) the total lane miles of Federal-aid highways in all States.

"(ii) 40 percent of the apportionments in the ratio that--

"(I) the total vehicle miles traveled on lanes on Federal-aid highways in each State; bears to

"(II) the total vehicle miles traveled on lanes on Federal-aid highways in all States.

"(iii) 35 percent of the apportionments in the ratio that--

"(I) the estimated tax payments attributable to highway users in each State paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available; bears to

"(II) the estimated tax payments attributable to highway users in all States paid into the Highway Trust Fund (other than the Mass Transit Account) in the latest fiscal year for which data are available.

"(B) Minimum apportionment.-- Notwithstanding subparagraph (A), each State shall receive a minimum of 1/2 of 1 percent of the funds apportioned under this paragraph.".

(1) by repealing section 152;

(2) by redesignating section 151 as section 152; and

(3) by inserting the following new section 151 after section 150:

"§ 151. Flexibility for safety initiatives

"(a) IN GENERAL.-As provided in this section, a State that develops and implements a strategic highway safety plan and comprehensive safety planning process shall have the flexibility to use funds available under section 150 of this title, the Highway Safety Improvement Program, for title 23 safety purposes not otherwise eligible under such section, including funding for public awareness, education, and enforcement.

"(b) STRATEGIC HIGHWAY SAFETY PLAN.-To qualify for flexible safety funding as provided under this section, the State strategic highway safety plan must--

"(1) be based on a collaborative process that includes the State Department of Transportation, the Governor's Representative for Highway Safety, persons responsible for administering section 130 of this title at the State level, and other major State and local safety stakeholders, including Operation Lifesaver;

"(2) address engineering, education, enforcement, and emergency services

elements of highway safety;

"(3) consider the results of existing State transportation and highway safety planning processes; and

"(4) be certified by the Secretary, in consultation with the Federal Highway Administration and the National Highway Traffic Safety Administration, as based on a comprehensive, collaborative process, and effective analyses of State crash data.

"(c) SAFETY ACTIVITIES CONSISTENT WITH PLAN.-To qualify for the flexible use of funds available under sections 150 and 402(k) in accordance with this section, activities must be consistent with the State strategic highway safety plan.

"(d) OTHER TRANSPORTATION AND HIGHWAY SAFETY PLANS.-Nothing in this section shall require a State to revise existing State processes, plans, or programs.

"(e) FLEXIBLE FUNDING.--A State that receives funds under section 150 shall use such funds for projects eligible under such section, except that up to 50 percent of such funds may be used for activities eligible for assistance under section 402 of this title that are consistent with the State's strategic highway safety plan and not otherwise eligible for assistance under section 150.".

(d) ELIMINATION OF SURFACE TRANSPORTATION PROGRAM SET-ASIDE.--Section 133(d) of such title is amended by striking paragraph (1) and by

redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively.

(e) CONFORMING AMENDMENTS.

(1) The analysis for chapter 1 of such title is amended-

(A) by striking the item relating to section 152;

(B) by renumbering "151. National bridge inspection program." as "152"; and

"150. Highway Safety Improvement Program.

"151. Flexibility for safety initiatives.".

(2) Section 130 of such title is amended--

(A) by striking subsections (e) and (f) and redesignating subsections (g) through (j) as (e) through (h), respectively; and

(B) in subsection (f), as redesignated by this Act, by striking "authorized to be appropriated to carry out this section" and inserting "made available as provided under section 150 of this title to carry out this section".

(3) Section 154(c)(3) of such title is amended by striking "152" and inserting "150".

(4) Section 164(b)(3) of such title is amended by striking "152" and inserting "150".

(5) Section 409 of such title is amended by striking "152" and inserting "150".

SEC. 1403. OPERATION LIFESAVER. [Analysis]

Section 104(d)(1) of title 23, United States Code, is amended by striking "$500,000" and inserting "$600,000".

SEC. 1404. HIGHWAY SAFETY PROGRAMS; CERTIFICATION OF PUBLIC ROAD MILEAGE. [Analysis]

Section 402(c) of title 23, United States Code, is amended by striking in the fifth sentence "the Governor of".

Subtitle E. Program Efficiencies and Improvements - Planning

SEC. 1501. METROPOLITAN PLANNING. [Analysis]

Section 134 of title 23, United States Code, is amended by striking subsections (a) through (o) and inserting the following:

"Metropolitan planning shall be carried out in accordance with section 5203 of title 49, United States Code.".

SEC. 1502. STATEWIDE PLANNING. [Analysis]

Section 135 of title 23, United States Code, is amended by striking subsections (a) through (i) and inserting the following:

"Statewide planning shall be carried out in accordance with section 5204 of title 49, United States Code.".

SEC. 1503. STATE PLANNING AND RESEARCH. [Analysis]

(a) STATE PLANNING AND RESEARCH.-Chapter 5 of title 23, United States Code, is amended by striking section 505.

(b) CONFORMING AMENDMENT.-The analysis for chapter 5 of such title is amended by striking the item related to section 505.

(1) by redesignating subsections (i), (j), (k), and (l) as subsections (k), (l), (m), and (n), respectively; and

(2) by inserting after subsection (h) the following:

"(i) STATE PLANNING AND RESEARCH.--

"(1) IN GENERAL.--Two and 1/2 percent of the sums apportioned to a State for each fiscal year under this section (other than subsections (f) and (h)) and under sections 105 and 144 of this title shall be available for expenditure by the State, in consultation with the Secretary, only for the following purposes:

"(A) Engineering and economic surveys and investigations.

"(B) The planning of future highway and local public transportation systems, the planning of the financing of such systems, and metropolitan and statewide planning under sections 134 and 135 of this title, including freight planning, safety planning, transportation systems management and operations planning, transportation-related land use planning, and transportation-related growth management activities within these planning processes and planning capacity building activities described in section 104(j) of this title.

"(C) Development and implementation of infrastructure management and traffic monitoring systems under section 303 of this title and for asset management activities.

"(D) Studies of the economy, safety, and convenience of highway and local public transportation systems and the desirable regulation and equitable taxation of their use.

"(E) Research, development, and technology transfer activities necessary in connection with the planning, design, construction, management, maintenance, regulation, and taxation of the use of highway, local public transportation, and intermodal transportation systems.

"(F) Study, research, and training on the engineering standards and construction materials, including accreditation of inspection and testing, for highway, local public transportation, and intermodal transportation systems.

"(2) MINIMUM EXPENDITURES ON RESEARCH, DEVELOPMENT, AND TECHNOLOGY TRANSFER ACTIVITIES.--

"(A) IN GENERAL.--Subject to subparagraph (B), not less than 20 percent of the funds subject to paragraph (1) for a fiscal year shall be expended by the State for research, development, and technology transfer activities described in paragraph (1), relating to highway, local public transportation, and intermodal transportation systems.

"(B) WAIVERS.--The Secretary may waive the application of subparagraph (A) with respect to a State for a fiscal year if the State certifies to the Secretary for the fiscal year that the funds described in subparagraph (A) are not needed for research, development, and technology transfer and the Secretary accepts such certification.

"(C) NONAPPLICABILITY OF ASSESSMENT.--Funds expended under subparagraph (A) shall not be considered to be part of the extramural budget of the agency for the purpose of section 9 of the Small Business Act (15 U.S.C. 638).

"(3) MINIMUM EXPENDITURES FOR IMPROVING THE QUALITY OF COLLECTION AND REPORTING OF STRATEGIC SURFACE TRANSPORTATION DATA.--

"(A) IN GENERAL.--Subject to subparagraph (B), not less than 20% of the funds subject to paragraph (1) for a fiscal year shall be expended by the State to improve the collection and reporting of strategic surface transportation data to provide critical information about the extent, condition, use, performance, and financing of the Nation's highways (including intermodal connectors) for passenger and freight movement.

"(B) WAIVERS.--The Secretary may waive the application of subparagraph (A) with respect to a State for a fiscal year if the State certifies to the Secretary for the fiscal year that the State is collecting and reporting strategic data consistent with quality assurance guidelines developed cooperatively with the States and the Secretary approves such certification. If such waiver is approved, the funds may be used for the activities described in paragraph (1) of this subsection.

"(4) FEDERAL SHARE.--The Federal share of the cost of a project carried out using funds subject to paragraph (1) shall be matched in accordance with section 120(b) unless the Secretary determines that the interests of the Federal-aid highway program would be best served without such matching.

"(5) ADMINISTRATION OF SUMS.--Funds subject to paragraph (1) shall be combined and administered by the Secretary as a single fund and shall be available for obligation for the same period as funds apportioned under section 104(b)(1).".

SEC.1504. CRITICAL REAL PROPERTY ACQUISITION. [Analysis]

Section 108 of title 23, United States Code, is amended by adding at the end the following:

"(d) CRITICAL REAL PROPERTY ACQUISITION.--

"(1) Subject to paragraph (2), funds apportioned to a State under this title may be used to participate in the payment of costs incurred in the acquisition of real property that is deemed critical, as determined under paragraph (2), for any project proposed for funding under this title, prior to the completion of any required environmental reviews for property acquisition.

"(2) The Federal share payable of the costs described in paragraph (1) shall be eligible for reimbursement out of funds apportioned to a State under this title if, prior to acquisition, the State demonstrates to the Secretary, and the Secretary determines, that the property is offered for sale on the open market, that the State will comply fully with the Uniform Relocation Assistance and Real Property Acquisition Policies Act in acquiring the property, and that immediate acquisition of the property is critical because either:

"(A) normal appraisal techniques show that the property's value is increasing significantly;

"(B) there is an imminent threat of development or redevelopment of the property; or

"(C) the property is necessary for the implementation of the goals as stated in the project proposal.

"(3) An acquisition undertaken pursuant to this section shall be considered to be an exempt project under section 176 of the Clean Air Act and its implementing regulations.

"(4) No project development activity may be undertaken on property acquired in accordance with paragraph (2) until any required environmental reviews for the project have been completed.

"(5) The number of critical acquisitions associated with a project shall be limited and shall not affect the consideration of project alternatives during the environmental review process.

"(6) Section 156 (c) of this title shall not apply to the sale, use or lease of any property acquired in accordance with paragraph (2).".

SEC. 1505. PLANNING CAPACITY BUILDING INITIATIVE. [Analysis]

Section 104 of title 23, United States Code, is amended by inserting after subsection (i), as added by this Act, the following:

"(j) PLANNING CAPACITY BUILDING INITIATIVE.-

"(1) IN GENERAL.--The Secretary shall establish a planning capacity building initiative to support enhancements in transportation planning, in order to--

"(A) strengthen metropolitan and statewide transportation planning under chapter 52 of title 49;

"(B) enhance tribal capacity to conduct joint transportation planning under Chapter 2 of this title; and

"(C) participate in the metropolitan and statewide transportation planning programs under chapter 52 of title 49.

"(2) PRIORITY.--The Secretary shall give priority to planning practices and processes that support homeland security planning, performance based planning, safety planning, operations planning, freight planning, and integration of environment and planning.

"(3) USE OF FUNDS.--Funds authorized for this program may be used for research, program development, information collection and dissemination, and technical assistance. The Secretary may use these funds independently or make grants to, or enter into contracts, cooperative agreements, and other transactions, with a Federal agency, State agency, local agency, Federally recognized Indian tribal government or tribal consortium, authority, association, nonprofit or for-profit corporation, or institution of higher education, to carry out the purposes of this subsection.

"(4) SET-ASIDE.--On October 1 of each fiscal year, the Secretary, after making the deductions authorized by subsections (a) and (f) of section 104 of this title, shall set aside $20,000,000 of the remaining funds authorized for the Surface Transportation Program to carry out the requirements of this subsection.

"(5) FEDERAL SHARE.--The Federal share of the cost of an activity carried out using such funds shall be up to 100 percent, and such funds shall remain available until expended.

"(6) ADMINISTRATION.--This initiative shall be administered by the Federal Highway Administration in cooperation with the Federal Transit Administration.".

Subtitle F. Program Efficiencies and Improvements - Environment

SEC. 1601. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM. [Analysis]

(a) ELIGIBLE PROJECTS.-Section 149(b) of title 23, United States Code, is amended-

(1) in the first paragraph, by inserting "and, the project or program will reduce emissions to contribute to the attainment or maintenance of the National Ambient Air Quality Standard for which the area is or was designated nonattainment," after "December 31, 1997,";

(2) in subsection (1)(A), by striking "(other than clause (xvi) of such section)";

(3) in paragraph (1)(A)(ii), by inserting "by providing new or enhanced transportation facilities or services to further reduce emissions" after "area";

(4) in paragraph (1)(B), by inserting "or" at the end after "section;";

(5) in paragraph (2), by inserting "or program" after "and the project", and by striking "have air quality benefits;" and inserting "reduce emissions; or";

(6) in paragraph (3), by--

"(A) inserting "if" after "(3)";

"(B) striking "contribute to the attainment of a national ambient air quality standard" and inserting "reduce emissions";

"(C) striking the comma after "traveled" and inserting "or"; and

"(D) inserting "through technological improvements such as anti-idling equipment and diesel retrofits for trucks, school buses, transit buses and other vehicles" after "consumption,";

(7) in paragraph (4), by inserting "if the project or program is" after "(4)", and by striking "contribute to the attainment of a national ambient air quality standard" and inserting "reduce emissions";

(8) in paragraph (5), by striking "that are eligible for assistance under this section on the day before the date of enactment of this paragraph" and inserting "that will reduce emissions"; and

(9) in the final unnumbered paragraph, by striking the second sentence.

(b) STATES RECEIVING MINIMUM APPORTIONMENT.-Section 149(c) of such title is amended in paragraphs (1) and (2) by inserting "OR MAINTENANCE" after "NONATTAINMENT" in the heading of each paragraph.

"(f) Interagency Consultation.--The Secretary shall encourage States and metropolitan planning organizations to consult with State and local air quality agencies in nonattainment and maintenance areas on the estimated emissions reductions from proposed congestion mitigation and air quality improvement programs and projects.".

(d) EVALUATION AND ASSESSMENT OF PROJECTS.-Section 149 of such title is amended by adding at the end the following new paragraph:

"(g) EVALUATION AND ASSESSMENT OF PROJECTS.-

"(1) EVALUATION AND ASSESSMENT.-The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall evaluate and assess a representative sample of projects funded under the Congestion Mitigation and Air Quality Improvement Program for their actual impact on emissions, and congestion levels and to assure effective program implementation. Using appropriate assessments of CMAQ-funded projects, and results from other research, the Secretary shall maintain a cumulative database on these impacts for broad dissemination.

"(2) FUNDING.-Funds set aside under section 104(o) of this title shall be available to carry out this subsection.".

(e) FUNDING FOR EVALUATION AND ASSESSMENT OF PROJECTS.-Section 104 of such title is amended by adding at the end the following new subsection:

"(o) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM EVALUATION AND ASSESSMENT OF PROJECTS.-Before making apportionments under subsection (b)(2) of this section for a fiscal year, the Secretary shall deduct 0.5 percent from the amount to be apportioned for such fiscal year for the purpose of carrying out the requirements of section 149(g) of this title.".

(f) APPORTIONMENTS.-Section 104(b) of such title 23 is amended-

(1) in paragraph (2)(B), by striking "or" after "ozone" and inserting a comma, and by inserting ", or fine particulate matter (PM-2.5)" after "carbon monoxide";

(2) by amending paragraph (2)(B) (i) to read as follows:

"(i) 1.0 if at the time of the apportionment, the area is a maintenance area;";

(3) in paragraph (2)(B)(vi), by striking "or" after the semicolon;

(4) in paragraph (2)(B)(vii), by inserting "for ozone" after "maintenance area", and striking "for ozone" after "section 149(b)" and inserting "or for PM-2.5";

(5) by adding at the end of paragraph (2)(B) two new clauses to read as follows:

"(viii) 1.0 if, at the time of apportionment, any county, not designated as a nonattainment or maintenance area under the 1-hour ozone standard, is designated as nonattainment under the 8-hour ozone standard; or

"(ix) 1.2 if, at the time of apportionment, the area is not a nonattainment or maintenance area as described in section 149(b) for ozone or carbon monoxide, but is an area designated nonattainment under the PM-2.5 standard.";

(6) by amending paragraph (2)(C) to read as follows:

"(C) ADDITIONAL ADJUSTMENT FOR CARBON MONOXIDE AREAS.-If, in addition to being designated as a nonattainment or maintenance area for ozone as described in section 149(b), any county within the area was also classified under subpart 3 of part D of title I of such Act (42 U.S.C. 7512 et seq.) as a nonattainment or maintenance area described in section 149(b) for carbon monoxide, the weighted nonattainment or maintenance area population of the county, as determined under clauses (i) through (vi) of subparagraph (B), shall be further multiplied by a factor of 1.2."; and

(7) by redesignating paragraphs (2)(D) and (2)(E) as (2)(E) and (2)(F) and inserting after paragraph (2)(C) a new paragraph (2)(D) to read as follows:

"(D) ADDITIONAL ADJUSTMENT FOR PM 2.5 AREAS.-If, in addition to being designated as a nonattainment or maintenance area for ozone, carbon monoxide or both as described in section 149(b), any county within the area was also designated under the PM-2.5 standard as a nonattainment or maintenance area, the weighted nonattainment or maintenance area population of those counties shall be further multiplied by a factor of 1.2.".

SEC. 1602. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT DECISIONMAKING. [Analysis]

(a) POLICY AND PURPOSE.-

(1) POLICY.-The Enlibra principles, as initially developed by the Western Governors Association and adopted by the National Governors Association, represent a sound basis for interaction among the Federal, State, local governments, and tribes on environmental matters and should be followed to the maximum extent practicable in the development of highway construction and public transit improvements. These principles are:

(A) Assign responsibilities at the right level.

(B) Use collaborative processes to break down barriers and find solutions.

(D) Separate subjective choices from objective data gathering.

(E) Pursue economic incentives whenever appropriate.

(F) Ensure environmental understanding.

(G) Make sure environmental decisions are fully informed.

(H) Use appropriate geographic boundaries for environmental problems.

(2) PURPOSE.--The purpose of this section is to reduce delays in the delivery of highway construction and public transit projects arising from the environmental review process, while continuing to ensure the protection of the human and natural environment.

(b) COORDINATED ENVIRONMENTAL REVIEW PROCESS.--

(1) DEVELOPMENT AND IMPLEMENTATION.--The Secretary shall develop and implement a coordinated environmental review process for highway construction and public transit projects that require--

(A) the preparation of an environmental impact statement or environmental assessment under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), except that the Secretary may decide not to apply this section to the preparation of an environmental assessment under such Act; or

(B) the conduct of any other environmental review or analysis, rendering of an opinion, or issuance of an environmental permit, license, or approval under Federal law.

(2) MEMORANDUM OF UNDERSTANDING.--

(A) IN GENERAL.--The coordinated environmental review process may be specified for a particular project, class of projects, or program and shall ensure that, whenever practicable (as specified in this section), all environmental reviews, analyses, opinions, and any permits, licenses, or approvals that must be issued or made by any Federal agency for the project concerned shall be conducted concurrently and completed within a cooperatively determined time period. Such process for a project, class of projects, or program may be incorporated into a memorandum of understanding between the Department of Transportation and affected Federal agencies (and, where appropriate, State and local agencies and Federally recognized tribes).

(B) ESTABLISHMENT OF TIME PERIODS.--In establishing the time period referred to in subparagraph (A), and any time periods for review within such period, the Department and all such agencies shall take into account their respective resources and statutory commitments.

(c) ELEMENTS OF COORDINATED ENVIRONMENTAL REVIEW PROCESS.--For each project, the coordinated environmental review process established under this section shall provide, at a minimum, for the following elements:

(1) FEDERAL AGENCY IDENTIFICATION.-- The Secretary shall, at the earliest possible time, identify all potential Federal agencies that--

(A) have jurisdiction by law over or special expertise related to environmental-related issues that may be affected by the project and the analysis of which would be part of any environmental document required by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or

(B) may be required by Federal law to independently--

(i) conduct an environmental-related review or analysis for the project;

(ii) determine whether to issue a permit, license, or approval for the project; or

(iii) render an opinion on the environmental impact of the project.

(2) TIME LIMITATIONS AND CONCURRENT REVIEW.-- If requested by the project sponsor, the Secretary and the head of each Federal agency identified under paragraph (1)-

(A)(i) shall jointly develop and establish time periods for review for--

(I) all Federal agency comments with respect to any environmental documents required by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for the project; and

(II) all other independent Federal agency environmental analyses, reviews, opinions, and decisions on any permits, licenses, and approvals that must be issued or made for the project; such that each such Federal agency's review shall be undertaken and completed within such established time periods for review; or

(ii) may enter into an agreement to establish such time periods for review with respect to a class of projects or programs; and

(B) shall ensure, in establishing such time periods for review, that the conduct of any such analysis or review, rendering of such opinion, and the issuance of such decision is undertaken concurrently with all other environmental reviews for the project, including the reviews required by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); except that such review may not be concurrent if the affected Federal agency can demonstrate that such concurrent review would result in a significant adverse impact to the environment or substantively alter the operation of Federal law or would not be possible without information developed as part of the environmental review process.

(3) FACTORS TO BE CONSIDERED.-- Time periods for review established under this section shall be consistent with the time periods established by the Council on Environmental Quality under sections 1501.8 and 1506.10 of title 40, Code of Federal Regulations.

(4) EXTENSIONS.-- The Secretary shall extend any time periods for review under this section if, upon good cause shown, the Secretary and any Federal agency concerned determine that additional time for analysis and review is needed. Any memorandum of understanding shall be modified to incorporate any mutually agreed-upon extensions.

(d) CLARIFICATION REGARDING ENVIRONMENTAL IMPACT STATEMENTS PREPARED BY STATE AND LOCAL TRANSPORTATION AGENCIES.-Any project sponsor that is a State or local governmental entity eligible to receive funds under this Act, chapter I of title 23, United States Code; or chapter 53 of title 49, United States Code, may, at the discretion of the Secretary, serve as a joint lead agency with the Department for purposes of preparing any environmental document under the National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321, et seq.), and may prepare any such environmental documents required in support of any action or approval by the Secretary, provided that the Department furnishes guidance in such preparation and independently evaluates such document, and provided that the document is approved and adopted by the Secretary prior to the Secretary taking any subsequent action or making any approval based on such document, whether or not the Secretary's action or approval results in Federal funding. The Secretary shall ensure that the project sponsor complies with all design and mitigation commitments made jointly by the Secretary and the project sponsor in such environmental document, or that the document is appropriately supplemented if project changes become necessary. Any such environmental document prepared in accordance with this subsection may be adopted or used by any Federal agency making any approval to the same extent that such Federal agency could adopt or use a document prepared by another Federal agency.

(e) DISPUTE RESOLUTION.--When the Secretary determines that a Federal agency which is subject to a time period under this section for its environmental review has failed to complete its review, analysis, opinion, or decision on issuing any permit, license, or approval within the established time period or within any agreed-upon extension to such time period, the Secretary may, after notice and consultation with such agency, close the record on the matter before the Secretary. If the Secretary finds, after timely compliance with this section, that an environmental issue related to the project over which an affected Federal agency has jurisdiction under Federal law has not been resolved, the Secretary and the head of the Federal agency shall resolve the matter not later than 30 days after the date of the finding by the Secretary. The dispute resolution procedures established pursuant to this subsection may be initiated by the Secretary or by the Governor of any State in which a highway construction or public transit project is located, or by the head of any Federal agency subject to the time period under this subsection.

(f) PARTICIPATION OF STATE AGENCIES.--For any project eligible for assistance under chapter 1 of title 23, United States Code, a State, under State law, may require that all State agencies that have jurisdiction by State or Federal law over environmental-related issues that may be affected by the project, or that are required to issue any environmental-related reviews, analyses, opinions, or determinations on issuing any permits, licenses, or approvals for the project, be subject to the coordinated environmental review process established under this section unless the Secretary determines that a State agency's participation would not be in the public interest. If a State wishes to participate in the review process, the State must require all such State agencies with jurisdiction by law to be subject to and comply with the review process to the same extent as a Federal agency.

(g) ASSISTANCE TO AFFECTED STATE AND FEDERAL AGENCIES.--

(1) IN GENERAL.-- The Secretary may approve a request by a State to provide funds made available under chapter 1 of title 23, United States Code, or for a public transit project made available under chapter 53 of title 49, United States Code, to the State for the project, class of projects, or program subject to the coordinated environmental review process established under this section, to affected Federal agencies, including the Department of Transportation, to State agencies participating in the coordinated environmental review process, and to Federally recognized tribes, to provide the resources necessary to meet any time limits established under this section. The Secretary also may use funds made available under section 204 of title 23, United States Code, for the purposes specified under this subsection.

(2) AMOUNTS.--Such requests under paragraph (1) shall be approved only--

(A) for the additional amounts that the Secretary determines are necessary for the affected Federal agencies to meet the time limits for environmental review; and

(B) if such time limits are less than the customary time necessary for such review.

(h) JUDICIAL REVIEW AND SAVINGS CLAUSE.--

(1) JUDICIAL REVIEW.--Except as set forth under subsection (i), nothing in this section shall affect the reviewability of any final Federal agency action in a court of the United States.

(2) SAVINGS CLAUSE.-- Nothing in this section shall affect the applicability of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal environmental statute or affect the responsibility of any Federal officer to comply with or enforce any such statute.

(i) LIMITATIONS ON CLAIMS. - Notwithstanding any other provision of law, a claim arising under Federal law seeking judicial review of a permit, license, or approval issued by a Federal agency for a highway construction or public transit project shall be barred unless it is filed within one hundred eighty days after the permit, license, or approval is final pursuant to the statute under which the agency action is taken, unless a shorter time is specified in the Federal law pursuant to which judicial review is allowed. Nothing in this subsection shall create a right to judicial review or place any limit on filing a claim that a person has violated the terms of a permit, license, or approval.

(j) REPEAL.--Section 1309 of the Transportation Equity Act for the 21^st Century (Public Law 105-178; 112 Stat. 232; June 9, 1998) is repealed.

SEC. 1603. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL EXCLUSIONS. [Analysis]

(a) GENERAL.--Section 138 of title 23, United States Code, is repealed and the following new section is inserted:

§ 138. Assumption of responsibility for categorical exclusions

"(a) CATEGORICAL EXCLUSION DETERMINATIONS.--Upon mutual agreement, the Secretary may assign and a State may assume responsibility for determining whether certain designated activities are included within classes of action identified in regulation by the Secretary that are categorically excluded from requirements for environmental assessments or environmental impact statements pursuant to regulations promulgated by the Council on Environmental Quality, or other successor law or regulation. Such determinations shall be made by a State pursuant to criteria established by the Secretary and only for types of activities specifically designated by the Secretary. Such criteria shall include provision for public availability of information consistent with the Freedom of Information Act (5 U.S.C. 552).

"(b) OTHER APPLICABLE FEDERAL LAWS.--Upon mutual agreement, the Secretary may assign and the State may assume some or all of the Department's responsibilities for environmental review, consultation, or other related actions required under any Federal law applicable to activities that are classified by the Secretary as categorical exclusions, with the exception of government-to-government consultation with Indian tribes, if the State also assumes decision-making authority under this section. The State shall assume this responsibility subject to the same procedural and substantive requirements as would be required if that responsibility was carried out by the Department. When a State assumes such responsibility under a Federal law, it shall be solely responsible and solely liable for complying with and carrying out that law in lieu of the Department.

"(c) AGREEMENTS.--The Secretary and the State shall enter into a memorandum of understanding setting forth the responsibilities to be assigned under this section and the terms and conditions under which such assignments are to be made. Such memorandums of understanding shall be established for periods of no more than three years. In the memorandum of understanding the State shall consent to accept the jurisdiction of the Federal courts for the compliance, discharge, and enforcement of any responsibility of the Secretary it may assume. The Secretary shall monitor the State department of transportation's compliance with the memorandum of understanding as well as the effectiveness of the delegation, and will take into account the State's performance in deciding whether and under what conditions to renew a memorandum of understanding.

"(d) TERMINATION.--The Secretary may terminate any assumption of responsibility under this section upon a determination that a State is not adequately carrying out its assigned responsibilities.

"(e) STATE SUBJECT TO FEDERAL LAWS.--For purposes of assuming the Secretary's responsibilities under this section, the State agency signing the agreement in subsection (c) is deemed to be a Federal agency to the extent the State is carrying out the Secretary's responsibilities under the National Environmental Policy Act, under this title, and under any other Federal law.".

(b) CONFORMING AMENDMENT.-The analysis of chapter 1 of title 23 is amended by striking "Preservation of parklands" in the item relating to section 138 and inserting "Assumption of responsibility for categorical exclusions.".

SEC. 1604. "SECTION 4(f)" POLICY ON LANDS, WILDLIFE AND WATERFOWL REFUGES, AND HISTORIC SITES. [Analysis]

Section 303 of title 49, United States Code, is amended to read as follows:

"§ 303. Policy on lands, wildlife and waterfowl refuges, and historic sites

"(a) It is the policy of the United States Government that special effort should be made to preserve the natural beauty of the countryside and public park and recreation lands, wildlife and waterfowl refuges, and historic sites.

"(b) The Secretary of Transportation shall cooperate and consult, when appropriate, with the Secretaries of the Interior, Housing and Urban Development, and Agriculture, and with the States, in developing transportation plans and programs that include measures to maintain or enhance the natural beauty of lands crossed by transportation activities or facilities.

"(c)(1) The Secretary of Transportation may approve a transportation program or project requiring the use of publicly owned land of a public park, recreation area, or wildlife and waterfowl refuge of national, State, or local significance, or land of a historic site of national, State, or local significance (as determined by the Federal, State, or local officials having jurisdiction over the park, area, refuge or site) only if--

"(A) there is no feasible and prudent alternative to using that land, and

"(B) the program or project includes all possible planning to minimize harm to the park, recreation area, wildlife and waterfowl refuge, or historic site resulting from the use.

"(2) In making approvals under this subsection, the Secretary shall apply the following standards:

"(A) The Secretary may eliminate an alternative as infeasible if the Secretary finds that the alternative cannot be implemented as a matter of sound engineering.

"(B) The Secretary shall consider the following when determining whether it would be prudent to avoid the use of land of a resource subject to preservation under this section:

"(i) The relative significance of the land of the resource being protected.

"(ii) The views of the official or officials with jurisdiction over the land.

"(iii) The relative severity of the adverse effects on the protected activities, attributes, or features that qualify a resource for protection.

"(iv) The ability to mitigate adverse effects.

"(v) The magnitude of the adverse effects that would result from the selection of an alternative that avoids the use of the land of the resource.

"(C) A mitigation measure or mitigation alternative under paragraph (c)(1)(B) of this section is possible if it is feasible and prudent. In evaluating the feasibility and prudence of a mitigation measure or mitigation alternative under paragraph (c)(1)(B) of this section, the Secretary shall be governed by the standards of paragraphs (c)(2)(A) and (B) of this subsection.

"(d) The requirements of this section do not apply to--

"(1) a project for a park road, parkway, or refuge road under section 204 of title 23; or

"(2) a highway project on land administered by an agency of the Federal government, when the purpose of the project is to serve or enhance the values for which the land would otherwise be protected under this section, as jointly determined by the Secretary of Transportation and the head of the appropriate Federal land managing agency.

"(e) The requirements of this section are deemed to be satisfied where the treatment of an historic site (other than a National Historic Landmark) has been agreed upon in accordance with Section 106 of the National Historic Preservation Act (16 U.S.C. 470f). The Secretary, in consultation with the Advisory Council on Historic Preservation, shall develop administrative procedures to review the implementation of this subsection to ensure that the objectives of the National Historic Preservation Act are being met.

"(f)(1) The Secretary may approve a request by a State to provide funds made available under chapter 1 of title 23, United States Code, to a State historic preservation office, Tribal historic preservation office, or to the Advisory Council on Historic Preservation to provide the resources necessary to expedite the historic preservation review and consultation process under section 303 of title 49 and under section 470f of title 16, United States Code.

"(2) The Secretary shall encourage States to provide such funding to State historic preservation officers, Tribal historic preservation officers or the Advisory Council on Historic Preservation where the investment of such funds will accelerate completion of a project or classes of projects or programs by reducing delays in historic preservation review and consultation.

"(3) Such requests under paragraph (1) shall be approved only for the additional amounts that the Secretary determines are necessary for a State historic preservation office, Tribal historic preservation office, or the Advisory Council on Historic Preservation to expedite the review and consultation process and only where the Secretary determines that such additional amounts will permit completion of the historic preservation process in less than the time customarily required for such process.".

SEC. 1605. NATIONAL SCENIC BYWAYS PROGRAM. [Analysis]

(a) IN GENERAL.-- Section 162 of title 23, United States Code, is amended--

(1) in subsection (a)(1), by inserting a comma after "Byways" and by striking "or All-American Roads" and inserting "All-American Roads, or one of America's Byways";

(2) in subsection (b)(1)(A), by inserting a comma after "Byways" and by striking "or All-American Roads," and inserting "All-American Roads, or one of America's Byways,";

(3) in subsection (b)(2)(A), by inserting a comma after "Byway" and by striking "or All-American Road" and inserting "All-American Road, or one of America's Byways";

(4) in subsection (b)(2)(B), by inserting a comma after "Byway" and by striking "or All-American Road" and inserting "All-American Road, or one of America's Byways"; and

(5) in subsection (c)(4), by striking "passing lane,".

(b) RESEARCH, TECHNICAL ASSISTANCE, MARKETING, AND PROMOTION.--Section 162 of such title is further amended-

(1) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively;

(2) by inserting after subsection (c) the following new subsection:

"(d) RESEARCH, TECHNICAL ASSISTANCE, MARKETING, AND PROMOTION.--

"(1) IN GENERAL.--The Secretary may carry out research, technical assistance, marketing, and promotion with respect to State scenic byways, National Scenic Byways, All-American Roads, or America's Byways.

"(2) COOPERATION, GRANTS, AND CONTRACTS.--The Secretary may make grants to or enter into contracts, cooperative agreements, and other transactions with any Federal agency, State agency, authority, association, institution, for-profit or nonprofit corporation, organization, foreign country, or person, including the center for national scenic byways in Duluth, Minnesota, to carry out the provisions of this subsection.

"(3) FUNDS.--The Secretary may use funds made available for the National Scenic Byways Program to carry out projects and activities under this subsection.

"(4) PRIORITY.--The Secretary shall give priority to partnerships that leverage private, Federal , or other public funds for research, technical assistance, marketing and promotion."; and

(3) by adding the following at the end of subsection (g):

"The Federal share of the cost of projects or activities under subsection (d) may be up to 100 percent.".

SEC. 1606. RECREATIONAL TRAILS PROGRAM. [Analysis]

(a) RECREATIONAL TRAILS PROGRAM FORMULA-Section 104(h)(1) of title 23, United States Code, is amended by striking "research and technical assistance under the recreational trails program and for the administration of the National Recrea-tional Trails Advisory Committee" and inserting "research, tech-nical assist-ance, and training under the recreational trails pro-gram".

(b) RECREATIONAL TRAILS PROGRAM ADMINISTRATION.-Section 206 of title 23, United States Code, is amended-

(1) by striking subsection (c) and inserting the following:

"(c) STATE RESPONSIBILITIES.-

"(1) ELIGIBILITY.-To be eligible for apportionments under this section-

"(A) the Governor of the State shall designate the State agency or agencies that will be responsible for administering apportionments made to the State under this section; and

"(B) the State shall establish a State recreational trail committee that-

"(i) has not less than 30 percent of its voting membership representing nonmotorized recreational trail users,

"(ii) has not less than 30 percent of its voting membership representing motorized recreational trail users,

"(iii) must meet not less than once per Federal fiscal year in a publicly announced public meeting, and

"(iv) must be used to develop statewide trail program policy and to rate, rank, and recommend recreational trails program projects for funding.

"(2) OBLIGATION REQUIREMENT.--If a State does not meet the committee require-ments within a fiscal year, it is not eligible for an apportionment in the following fiscal year.";

(2) by striking subsection (d)(2) and inserting the following:

"(2) PERMISSIBLE USES.-Permissible uses of funds apportioned to a State for a fiscal year to carry out this section include-

"(A) maintenance and restoration of existing recreational trails;

"(B) development and rehabilitation of trailside and trailhead facilities and trail linkages for recreational trails;

"(C) purchase and lease of recreational trail construction and maintenance equipment;

"(D) construction of new recreational trails, except that, in the case of new recreational trails crossing Federal lands, construction of the trails shall be-

"(i) permissible under other law;

"(ii) necessary and recommended by a statewide comprehensive outdoor recreation plan that is required by the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.) and that is in effect;

"(iii) approved by the administering agency of the State designated under subsection (c)(1)(A); and

"(iv) approved by each Federal agency having jurisdiction over the affected lands under such terms and conditions as the head of the Federal agency determines to be appropriate, except that the approval shall be contingent on compliance by the Federal agency with all applicable laws, including the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et. seq.), the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et. seq.), and the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et. seq.);

"(E) acquisition of easements and fee simple title to property for recreational trails or recreational trail corridors;

"(F) assessment of trail conditions for accessibility and maintenance;

"(G) use of trail crews, youth conservation or service corps, or other appropriate means to carry out activities under this section;

"(H) operation of educational programs to promote safety and environmental protection as those objectives relate to the use of recreational trails, supporting non-law enforcement trail safety and trail use monitoring patrol programs, and providing trail-related training, but in an amount not to exceed 5 percent of the apportionment made to the State for the fiscal year; and

"(I) payment of costs to the State incurred in administering the program, but in an amount not to exceed 7 percent of the apportionment made to the State for the fiscal year to carry out this section.";

(3) by striking subsection (d)(3)(C) and inserting the following:

"(C) USE OF YOUTH CONSERVATION OR SERVICE CORPS.-A State shall make available not less than 10 percent of its apportionments for grants, cooperative agree-ments, or contracts with qualified youth conservation or service corps to perform recreational trails program activities.";

(4) in subsection (d)(3)(D), by striking "(2)(F)" and inserting "(2)(I)";

(5) by amending subsection (f)-

(A) in paragraph (1)-

(i) by inserting "and the Federal share of the administrative costs of a State" after "project"; and

(ii) by striking "not exceed 80 percent" and inserting in its place "be determined in accordance with section 120(b)";

(B) in paragraph (2)(A), by striking "80 percent of" and inserting "the amount determined in accordance with section 120(b) for";

(D) by striking paragraph (5);

(E) by redesignating paragraph (4) as paragraph (5), and by striking "80 percent" and inserting in its place "the Federal share as determined in accordance with section 120(b)"; and

(F) by inserting after paragraph (3)-

"(4) USE OF RECREATIONAL TRAILS PROGRAM FUNDS TO MATCH OTHER FEDERAL PROGRAM FUNDS.-Notwithstanding any other provision of law, funds made available under this section may be used toward the non-Federal matching share for other Federal program funds that are-

(A) expended in accordance with the requirements of the Federal program relating to activities funded and populations served; and

(B) expended on a project that is eligible for assistance under this section.";

(6) by inserting after subsection (h)(1)(B) the following:

"(C) PLANNING AND ENVIRONMENTAL ASSESSMENT COSTS INCURRED PRIOR TO PROJECT APPROVAL.-A project funded under subsections (d)(2)(A) through (H) may allow pre-approval planning and environ-mental compliance costs to be credited toward the non-Federal share in accord-ance with subsection (f), limited to costs incurred less than 18 months prior to project approval."; and

(7) by striking paragraph (h)(2) and inserting the following:

"(2) WAIVER OF HIGHWAY PROGRAM REQUIREMENTS.-A project funded under this section is intended to enhance recreational opportunity and is not considered a highway project. Projects funded under this section are not subject to sections 112, 113, 114, 116, 134, 135, 217, or 301 of this title; or section 303 of title 49.".

SEC. 1607. EXEMPTION OF THE INTERSTATE SYSTEM. [Analysis]

Subsection 103(c) of title 23, United States Code, is amended by inserting the following after paragraph (4):

"(5) EXEMPTION OF THE INTERSTATE SYSTEM.--The Interstate Highway System, or any portion thereof, as designated pursuant to subsection 103(c) of this title, shall not be considered an historic site of national, State or local significance for purposes of 49 U.S.C. 303, 16 U.S.C. 470f, or 16. U.S.C. 470h-2 by virtue of being listed as a resource on, or eligible for listing in, the National Register of Historic Places. At the discretion of the Secretary, with the advice of the Department of the Interior, individual elements of the Interstate Highway System may receive the protection of section 106 or section 110 of the National Historic Preservation Act (16 U.S.C. 470f and 470h-2).".

SEC. 1608. MODIFICATION TO NHS/STP FOR INVASIVE SPECIES, WETLANDS, BROWNFIELDS, AND ENVIRONMENTAL RESTORATION. [Analysis]

(a) MODIFICATIONS TO THE NHS FOR INVASIVE SPECIES, WETLANDS, BROWNFIELDS, AND ENVIRONMENTAL RESTORATION.--

(1) TECHNICAL CORRECTIONS.-- Section 103 (b)(6) of title 23, United States Code, is amended in subparagraph (M)-

(A) by striking "1990" and inserting "2000"; and

(B) by striking "101-640" and inserting "106-541".

(2) STATE RESPONSIBILITY.-- Section 103 (b)(6) is further amended in subparagraph (M) by inserting "as determined by the State" after "to the maximum extent practicable".

(3) ELIGIBLE PROJECTS FOR NHS.--Section 103 (b)(6) is further amended by adding at the end the following new subparagraphs:

"(Q) Environmental restoration and pollution abatement to minimize or mitigate impacts of any transportation project funded under this title (including the retrofit or construction of storm water treatment systems to meet State and Federal National Pollutant Discharge Elimination System requirements under Section 402 of the Clean Water Act) to address water pollution or environmental degradation caused or contributed to by transportation facilities. When transportation facilities are undergoing reconstruction, rehabilitation, resurfacing, or restoration, the expenditure of funds under this section for any such environmental restoration or pollution abatement project shall not exceed 20 percent of the total cost of the reconstruction, rehabilitation, resurfacing, or restoration project.

"(R) In accordance with all applicable Federal law (including applicable Federal regulations), participation in the control of invasive plant species and the establishment of native species related to projects funded under this title, which may include participation in statewide inventories of both invasive and desirable plant species and regional native plant habitat conservation and mitigation, and restoration plans. Contributions to the measures described in the preceding sentence may take place concurrent with or in advance of project construction; except that contributions in advance of project construction may occur only if the efforts are consistent with all applicable requirements of Federal law (including applicable Federal regulations) and State transportation planning processes.

"(S) Remediation associated with the construction of a project funded under this title on a brownfield site, as defined in 42 U.S.C. 9601.".

(b) MODIFICATIONS TO THE SURFACE TRANSPORTATION PROGRAM FOR INVASIVE SPECIES, WETLANDS, BROWNFIELDS, AND ENVIRONMENTAL RESTORATION.-

(1) TECHNICAL CORRECTIONS.-- Section 133 (b)(11) of title 23, is amended:

(A) by striking "1990" and inserting "2000"; and

(B) by striking "101-640" and inserting "106-541";

(2) STATE RESPONSIBILITY.-- Section 133 (b)(11) is further amended by inserting "determined by the State" after "to the maximum extent practicable".

(3) ELIGIBLE PROJECTS FOR SURFACE TRANSPORTATION PROGRAM.-

(A) ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT.--Section 133 of title 23, United States Code, is amended by striking (b)(14) and inserting the following:

"(14) Environmental restoration and pollution abatement to minimize or mitigate impacts of any transportation project funded under this title (including the retrofit or construction of storm water treatment systems to meet State and Federal National Pollutant Discharge Elimination System requirements under Section 402 of the Clean Water Act) to address water pollution or environmental degradation caused or contributed to by transportation facilities. When transportation facilities are undergoing reconstruction, rehabilitation, resurfacing, or restoration, the expenditure of funds under this section for any such environmental restoration or pollution abatement project shall not exceed 20 percent of the total cost of the reconstruction, rehabilitation, resurfacing, or restoration project.".

(B) INVASIVE SPECIES CONTROL AND BROWNFIELDS REMEDIATION EFFORTS.--Section 133(b) of such title, as amended by this Act, is further amended by adding at the end the following new paragraphs:

"(16) In accordance with all applicable Federal law (including regulations), participation in the control of invasive plant species and the establishment of native species related to projects funded under this title, which may include participation in statewide inventories of both invasive and desirable plant species and regional native plant habitat conservation and mitigation, and restoration plans. Contributions to the measures described in the preceding sentence may take place concurrent with or in advance of project construction; except that contributions in advance of project construction may occur only if the efforts are consistent with all applicable requirements of Federal law (including regulations) and State transportation planning processes.

"(17) Remediation associated with the construction of a project funded under this title on a brownfield site, as defined in 42 U.S.C. 9601.".

SEC. 1609. STANDARDS. [Analysis]

(a) IN GENERAL.--Section 109(a) of title 23 of the United States Code is amended by--

(1) striking "and" at the end of paragraph (1);

(2) striking the period at the end of paragraph (2) and inserting "; and"; and

(3) adding the following paragraph at the end of subsection (a):

"(3) consider the preservation, historic, scenic, natural environment, and community values.".

(b) CONTEXT SENSITIVE DESIGN.--Section 109 of such title is amended by striking subsection (p) and inserting the following:

"(p) CONTEXT SENSITIVE DESIGN.--

"(1) The Secretary shall encourage States to design projects funded under title 23 to:

"(A) allow for the preservation of environmental, scenic, community, and/or historic values;

"(B) ensure safe use of the facility for both passenger and freight movement;

"(C) provide for consideration of the context of the locality;

"(D) encourage access for other modes of transportation; and

"(E) comply with subsection (a).

"(2) Notwithstanding subsections (b) and (c), the Secretary may approve a project for the National Highway System if the project is designed to achieve the criteria of subparagraphs (A) through (E).".

SEC. 1610. USE OF HOV LANES. [Analysis]

Section 102 of title 23, United States Code, is amended by striking subsection (a) and inserting the following:

"(a) HIGH OCCUPANCY VEHICLE (HOV) PASSENGER REQUIREMENTS.--

"(1) IN GENERAL.--A State transportation department or other responsible local agencies shall establish the occupancy requirements of vehicles operating in HOV facilities; except that no fewer than 2 occupants per vehicle may be required, unless otherwise provided in paragraph (2).

"(2) EXCEPTIONS TO HOV OCCUPANCY REQUIREMENTS.--

"(A) MOTORCYCLES. - Motorcycles shall not be considered single occupant vehicles and shall be allowed to use HOV facilities, except that upon certification by the responsible agency to the Secretary, the agency may restrict such use by motorcycles if such use would create a safety hazard.

"(B) LOW EMISSION AND ENERGY-EFFICIENT VEHICLES.-

"(i) Responsible agencies shall have the option of allowing qualifying low emission and energy-efficient vehicles to use HOV facilities if they do not satisfy the established occupancy requirements.

"(ii) Responsible agencies that allow qualifying low emission and energy-efficient vehicles to use HOV facilities shall--

"(I) establish a program that addresses how such qualifying vehicles are selected and certified;

"(II) establish requirements for labeling qualifying vehicles and procedures for enforcing such vehicles;

"(III) continuously monitor, evaluate, and report on performance; and

"(IV) establish the policies and procedures that will limit or restrict the use of such vehicles as necessary, to ensure that the performance of individual facilities or the entire system does not become seriously degraded.

"(iii) As used in this subparagraph, the term "low emission and energy- efficient vehicles" means vehicles that have been certified--

"(I) by the Administrator of the Environmental Protection Agency to have a 45-mile-per-gallon or greater fuel economy highway rating; or are defined as an alternative fuel vehicle under section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 13211(2)); and

"(II) as meeting Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) for that make and model year vehicle.

"(C) BICYCLES.--Responsible agencies shall have the option of allowing bicycles on surface street HOV facilities when there is insufficient space within the roadway or public right-of-way to establish and designate a bicycle lane.

"(D) Tolling of Vehicles.-- Responsible agencies may permit vehicles, in addition to those vehicles described in paragraphs (A), (B), and (E) that do not satisfy the established occupancy requirements, to use an HOV facility only if they charge such vehicles a toll. The authority of an agency to impose a toll shall be subject to section 129 of this title. Any agency electing to toll such vehicles shall also--

"(i) establish a program that addresses how motorists can enroll and participate;

"(ii) develop, manage, and maintain a system that will automatically collect the tolls that vehicles must pay;

"(iii) continuously monitor, evaluate, and report on performance;

"(iv) establish the policies and procedures for varying the toll that is charged to manage the demand to use the subject facilities and enforcing violations; and

"(v) establish procedures that will limit or restrict the use of such vehicles as necessary, to ensure that the performance of individual facilities or the entire system does not become seriously degraded.

"(E) DESIGNATED PUBLIC TRANSPORTATION VEHICLES.--

"(i) In this subparagraph, the term "designated public transportation vehicles" means vehicles that provide designated public transportation, as defined under section 12141 of title 42, and that are owned or operated by a public entity or that are operating under contract to a public entity.

"(ii) Responsible agencies may permit designated public transportation vehicles to use HOV facilities if they do not satisfy the established occupancy requirements.

"(iii) Any agency that permits designated public transportation vehicles to use HOV facilities if they do not satisfy the established occupancy requirements shall--

"(I) establish requirements for clearly and identifiably labeling vehicles operating under contract to the public entity with the name of the public entity on all sides of the vehicle;

"(II) establish the policies and procedures to ensure that vehicles operating under contract to the public entity are in compliance with the labeling requirement under subclause (I) of this clause;

"(III) continuously monitor, evaluate, and report on performance; and

"(3) HOV FACILITY MANAGEMENT, OPERATION, AND MONITORING.--Agencies that permit any of the exceptions specified in paragraph (a)(2) shall be responsible for the following:

"(A) PERFORMANCE MONITORING, EVALUATION, AND REPORTING.--Responsible agencies shall be required to establish, manage, and support a performance monitoring, evaluation, and reporting program if they permit any of the exceptions specified in paragraph (a)(2). This program shall continuously monitor, assess, and report on the impacts that any of these specific types of allowed vehicles may have on the operation of individual HOV facilities and the entire HOV system.

"(B) OPERATION OF HOV FACILITY OR SYSTEM.--Responsible agencies shall limit or discontinue permitting any of the exceptions specified in paragraph (a)(2), if the presence of any of these specific types of allowed vehicles seriously degrades the operation of individual HOV facilities or the entire HOV system. For purposes of this section, "seriously degraded" means that an HOV facility located on a freeway, or similar type of roadway, fails to maintain a minimum average operating speed of at least 45 miles per hour 90 percent of the time over a consecutive six-month period during weekday peak travel periods. For HOV facilities on other types of roadways, the minimum average operating speed, performance threshold, and associated time period shall be established based on the conditions unique to each roadway and agreed to by the responsible agencies.".

SEC. 1611. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS. [Analysis]

(a) IN GENERAL.-Section 217 of title 23, United States Code, is amended-

(1) in subsection (a), by inserting "pedestrian and" after "safe";

(2) in subsection (e), by striking "bicycles" each time it appears and inserting "pedestrians or bicyclists" in each instance;

(3) by striking subsection (f) and inserting the following:

"(f) FEDERAL SHARE.-The Federal share of the construction of bicycle transportation facili-ties and pedestrian walkways and for carrying out nonconstruction projects related to safe pedestrian and bicycle use shall be determined in accordance with section 120(b).";

(4) in subsection (j), by inserting after paragraph (4) the following:

"(5) SHARED USE PATH.-The term "shared use path" means a multi-use trail or other path, physically separated from motorized vehicular traffic by an open space or barrier, either with-in a highway right-of-way or within an independent right-of-way, and usable for trans-por-tation purposes. Shared use paths may be used by pedestrians, bicyclists, skaters, eques-trians, and other nonmotorized users."; and

(5) by adding after subsection (j) the following:

"(k) USER FEES.-At the option of each State, a shared use path funded under this sec-tion is not subject to the provisions of 23 U.S.C. 301, provided that the shared use path is not within a high-way right-of-way, and the income received from user fees is used for ongoing maintenance and operation of shared use paths within the State.

"(l) BICYCLE AND PEDESTRIAN SAFETY GRANTS.-

"(1) IN GENERAL.-The Secretary shall make grants to a national, not-for-profit organization engaged in promoting bicycle and pedestrian safety to-

"(A) operate a national bicycle and pedestrian clearinghouse;

"(B) develop information and educational programs; and

"(C) disseminate techniques and strategies for improving bicycle and pedestrian safety.

"(2) FUNDING.-Funds provided under section 104(p) of this title shall be available to carry out the provisions of this section.

"(3) APPLICABILITY OF TITLE 23.-Funds authorized by this subsection shall be available for obli-ga-tion in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, except that the funds shall remain available until expended.".

(b) SET-ASIDE.-Section 104 of title 23, United States Code, is amended by adding, after subsection (o), as added by this Act, the following:

"(p) BICYCLE AND PEDESTRIAN SAFETY GRANTS.--On October 1 of each fiscal year for fiscal years 2004 through 2009, the Secretary, after making the deductions authorized by subsections (a) and (f), shall set-aside $500,000 of the remaining funds authorized to be apportioned under subsection (b)(3) for carrying out the Bicycle and Pedestrian Safety Grants under section 217 of this title.".

SEC. 1612. TRANSPORTATION, ENERGY, AND ENVIRONMENT. [Analysis]

(a) IN GENERAL.- As part of the National Climate Change Technology Initiative and the Climate Change Research Initiative, the Secretary shall establish and carry out a multimodal energy and climate change program to study the relationship of transportation, energy, and climate change.

(b) CONTENTS.-The program to be carried out under this section shall include, but not be limited to, research designed to-

(1) identify, develop and evaluate strategies to improve energy efficiency and reduce greenhouse gas emissions from transportation sources; and

(2) identify and evaluate the potential effects of climate changes on the nation's transportation systems, and strategies to address these effects;

(c) PROJECT SELECTION.--Activities to be undertaken in this program will be determined by an internal steering committee established by the Secretary of Transportation. This intermodal committee shall include representatives from the Office of the Secretary and operating administrations within the Department of Transportation as designated by the Secretary.

(d) GRANTS, COOPERATIVE AGREEMENTS AND CONTRACTS.--The Secretary may carry out this program independently or by making grants to, or entering into contracts, cooperative agreements, and other transactions, with a Federal agency, State agency, local agency, authority, association, nonprofit or for-profit corporation, or institution of higher education.

(e) FUNDING.--

(1) HIGHWAY ACCOUNT.--

(A) FUNDING.--There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) to carry out this section $3,600,000 for fiscal year 2004, $2,200,000 for fiscal year 2005, $2,200,000 for fiscal year 2006, $2,200,000for fiscal year 2007, $2,700,000 for fiscal year 2008, and $2,700,000 for fiscal year 2009.

(B) CONTRACT AUTHORITY.-Funds authorized from the Highway Trust Fund (other than the Mass Transit Account) to carry out this Section shall be available for obligation in the same manner as if the funds were apportioned under Chapter 1 of Title 23, United States Code, except that the Federal share of the cost of a project or activity carried out using such funds shall not exceed 100 percent and such funds shall remain available until expended.

(2) MASS TRANSIT ACCOUNT.-

(A) FUNDING.--There is authorized to be appropriated from the Mass Transit Account of the Highway Trust Fund to carry out this section $400,000 for fiscal year 2004, $300,000 for fiscal year 2005, $300,000 for fiscal year 2006, $300,000 for fiscal year 2007, $300,000 for fiscal year 2008, and $300,000 for fiscal year 2009.

(B) CONTRACT AUTHORITY.--A grant or contract that is financed with amounts paid under this subparagraph from the Mass Transit Account is a contractual obligation of the United States Government to pay the Government's share of the cost of the project.

(3) AIRPORT AND AIRWAY TRUST FUND.--There is authorized to be appropriated from the Airport and Airway Trust Fund to carry out this section $500,000 for fiscal year 2005, $500,000 for fiscal year 2006, and $500,000 for fiscal year 2007.

SEC. 1613. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY. [Analysis]

Section 111 of Title 23 of the United States Code is hereby amended by adding at the end the following:

"(d) IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY.--Notwithstanding the prohibition on commercial establishments set forth in subsection (a), any State may permit electrification or other idling reduction facilities and equipment, for use by motor vehicles used for commercial purposes, to be placed in rest and recreation areas, and in safety rest areas, constructed or located on rights-of-way of the Interstate System in such State, and may charge, or permit charges for the use of such facilities. The exclusive purpose of such facilities or technologies shall be to enable operators of such vehicles to turn off their engines while parked and still have heating, air conditioning, electricity, and communication services in the vehicle.".

SEC.1614. APPROPRIATION FOR TRANSPORTATION PURPOSES OF LANDS OR INTEREST IN LANDS OWNED BY THE UNITED STATES. [Analysis]

(a) IN GENERAL.--Section 317 of title 23, United States Code, is amended to read as follows:

"§ 317. Appropriation for transportation purposes of lands or interest in lands owned by the United States

"(a) IN GENERAL.--If the Secretary determines that any part of the lands or interests in land owned by the United States are reasonably necessary for any project administered under this title or as a source for materials for such a project, the Secretary is authorized to file with the Secretary of the Department supervising the administration of such lands or interests in lands a description and a map showing the portion of such lands or interests in lands which it is necessary to appropriate. The Secretary of such Department shall have a period of up to four months to review the proposed appropriation and to designate reasonable mitigation measures necessary to protect the adjacent federal lands from adverse environmental impacts, or to certify that the proposed appropriation is contrary to the purposes for which such lands or materials have been reserved. If no such certification is received, the Secretary may appropriate and transfer such lands or interests in lands to the State transportation department, or its nominee, subject to such reasonable mitigation measures designated above. If at any time the need for such lands or materials for transportation purposes shall no longer exist, notice of the fact shall be given by the State transportation department to the Secretary and the Secretary of the Department from which they had been appropriated. Such lands or materials may, at the discretion of the Secretary of the Department from which they had been appropriated or its designee, revert to the United States, under the control of such Secretary, or its designee. Unless otherwise instructed by the Secretary, prior to any such reversion the State transportation department shall restore the land to its former condition.

"(b) PRIOR RESTRICTIONS OR ENCUMBRANCES.--Notwithstanding any other provision of law, the acquisition and use of land under this section may proceed irrespective of any prior deed restrictions or other encumbrances that were imposed as a condition on the receipt of Federal funds.".

(b) CONFORMING AMENDMENT.--The analysis for chapter 3 of such title is revised by amending the item relating to section 317 to read as follows: "317. Appropriation for transportation purposes of lands or interest in lands owned by the United States.".

SEC. 1615. TOLL PROGRAMS. [Analysis]

(a) INTERSTATE SYSTEM RECONSTRUCTION AND REHABILITATION PILOT PROGRAM.--Sec. 1216(b) of the Transportation Equity Act for the 21st Century is amended--

(1) in paragraph (1), by striking "that could not otherwise be adequately maintained or functionally improved without the collection of tolls";

(2) in paragraph (3), by striking subparagraph (C) and inserting the following:

"(C) An analysis demonstrating that financing the reconstruction or rehabilitation of the facility with the collection of tolls under this pilot program is the most efficient, economical, or expeditious way to advance the project."; and

(3) in paragraph (4),

(A) by striking subparagraph (A) and inserting the following:

"(A) the State's analysis showing that financing the reconstruction or rehabilitation of this facility with the collection of tolls under this program is the most efficient, economical, or expeditious way to advance the project is reasonable;";

(B) by striking subparagraph (B) and inserting the following:

"(B) the facility needs reconstruction or rehabilitation;";

(D) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively.

(b) VARIABLE TOLL PRICING PROGRAM.--

(1) ESTABLISHMENT.--The Secretary, notwithstanding sections 129 and 301 of title 23, United States Code, may permit a State or public authority to toll any highway, bridge, or tunnel, including facilities on the Interstate System, to manage existing high levels of congestion or reduce emissions in a nonattainment area or maintenance area.

(2) BASIC PROGRAM.--The following conditions apply to any variable toll pricing program established under this section:

(A) LIMITATION ON USE OF REVENUES.--All toll revenues received from the operation of the toll facility shall be used first for debt service, reasonable return on investment of any private financing, and the costs necessary for proper operation and maintenance of the toll facility (including reconstruction, resurfacing, restoration, and rehabilitation). If the State or public authority certifies annually that the tolled facility is being adequately maintained, then the State or public authority may use any excess toll revenues for projects eligible for Federal assistance under title 23, United States Code.

(B) AGREEMENT.--Before the Secretary may permit tolling under this subsection, and for each facility that may be tolled, the Secretary and the State or public authority must enter into an agreement providing for the conditions in subparagraphs (A) and (C) of this paragraph. The agreement shall terminate upon the decision of the State or public authority to discontinue its variable tolling program for that facility. If there is any debt outstanding on the facility at the time the decision is made to discontinue the program, the facility may continue to be tolled in accordance with the terms of the agreement until the debt is retired.

(i) VARIABLE PRICE REQUIREMENT.--The Secretary shall require, for each facility that may be tolled under this subsection, that the tolls vary in price according to time of day, as appropriate, to manage congestion or to improve air quality.

(ii) HOV PASSENGER REQUIREMENTS.--In addition to the exceptions to the high occupancy vehicle passenger requirements established under section 102(a)(2) of title 23, United States Code, a State may permit vehicles with fewer than 2 occupants to operate in high occupancy vehicle lanes as part of a variable toll pricing program established under this subsection.

(D) LIMITATION ON FEDERAL SHARE.--The Federal share payable for projects on the tolled facility, including projects to install toll collection facilities, shall be a percentage determined by the State but shall not exceed 80 percent.

(3) ELIGIBILITY.--To be eligible to participate in the program, a State or public authority shall provide to the Secretary--

(A) a description of the congestion or air quality problems sought to be addressed under this program;

(B) an identification of the goals sought to be achieved and the performance measures that would be used to gauge the success made toward reaching those goals; and

(4) DEFINITIONS.--

(A) MAINTENANCE AREA.--The term "maintenance area" has the same meaning given the term under section 101 of title 23, United States Code.

(B) NONATTAINMENT AREA.--The term "nonattainment area" has the same meaning given the term under section 7501 of title 42, United States Code.

(c) REPEAL.-- Section 1012(b) of the Intermodal Surface Transportation Efficiency Act, as amended by section 1216(a) of the Transportation Equity Act for the 21^st Century, is repealed. Notwithstanding the repeal of section 1012(b), the Secretary shall monitor and allow any value pricing program established under a cooperative agreement in effect on the date of enactment of this Act to continue.

SEC. 1616. OZONE STANDARDS, PARTICULATE MATTER STANDARDS, AND REGIONAL HAZE PROGRAM. [Analysis]

(a) TITLE.--The heading of title VI of the Transportation Equity Act for the 21^st Century (Public Law 105-178; 112 Stat. 463; June 9, 1998) is amended to read as follows:

"TITLE VI--OZONE STANDARDS, PARTICULATE MATTER STANDARDS, AND REGIONAL HAZE PROGRAM"

(b) FINDINGS AND PURPOSE.--Section 6101 of such Act is amended to read as follows:

"§ 6101. FINDINGS AND PURPOSE.

"(a) The Congress finds that--

"(1) the fine particle (PM2.5) standards promulgated by the Administrator of the Environmental Protection Agency (referred to in this title as "Administrator") in July 1997 were established to protect the public health and welfare;

"(2) there is a continuing need for PM2.5 air quality monitoring data;

"(3) with three years of PM2.5 air quality monitoring data for all areas expected to be available by 2003 it is important to move forward to designate areas as attainment or nonattainment and proceed with implementation of these standards;

"(4) it will be beneficial to States to develop and submit implementation plans for the PM-2.5 standards and the regional haze program at the same time; and

"(5) Western States that participated in the Grand Canyon Visibility Transport Commission should be permitted to submit plans in 2003 to implement recommendations set forth in the Commission's report.

"(b) The purposes of this title are--

"(1) to ensure the availability of PM2.5 air quality monitoring data;

"(2) to establish a deadline for the designation of areas for the PM-2.5 standards; and

"(3) to ensure that States are able to develop PM2.5 and regional haze implementation plans at the same time for all areas within a State, while continuing to allow nine Western States the option of submitting regional haze plans in 2003 to implement regional haze requirements based on the 1996 recommendations of the Grand Canyon Visibility Transport Commission.".

(1) The heading of section 6102 of the Transportation Equity Act for the 21^stCentury is amended to read as follows:

"SEC. 6102. PARTICULATE MATTER AND REGIONAL HAZE PROGRAMS."

(2) Section 6102(c) of such Act is amended to read as follows:

"(c)(1) The Governors shall be required to submit designations referred to in section 107(d)(1) of the Clean Air Act (42 U.S.C. 7407(d)(1)) for each area following promulgation of the July 1997 PM2.5 national ambient air quality standard by September 30, 2003 based on air quality monitoring data collected in accordance with any applicable Federal reference methods for the relevant areas. Only data from the monitoring network designated in subsection (a) and other Federal reference method PM2.5 monitors shall be considered for such designations. Nothing in the previous sentence shall be construed as affecting the Governor's authority to designate an area initially as nonattainment, and the Administrator's authority to promulgate the designation of an area as nonattainment, under section 107(d)(1) of the Clean Air Act, based on its contribution to ambient air quality in a nearby nonattainment area.

"(2)(A) Each State shall submit, for the entire State, the State implementation plan revisions to meet the requirements promulgated by the Administrator under section 169B(e)(1) of the Clean Air Act (42 U.S.C. 7492(e)(1)) (hereinafter in this paragraph referred to as 'the regional haze requirements') by 3 years after the date the Administrator promulgates the designations referred to in subsection (d) for such State.

"(B) The provisions of subparagraph (A) of this paragraph shall not preclude the implementation of the agreements and recommendations set forth in the Grand Canyon Visibility Transport Commission Report dated June 1996. These provisions shall not preclude the submission of State implementation plan revisions by the States of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Utah, or Wyoming by December 31, 2003, for implementation of the regional haze requirements as they apply to such States. Each of the aforementioned States submitting such plan revisions shall also submit statewide implementation plan revisions, as required under subparagraph (A), to address, as necessary, any additional mandatory Class I Federal areas not addressed by the revisions submitted pursuant to the preceding sentence.".

(3) Section 169B(e)(2) of the Clean Air Act (42 U.S.C. 7492(e)(2)) is repealed.

(4) Section 6102(d) of the Transportation Equity Act for the 21^st Century is amended to read as follows:

"(d) Notwithstanding any other provision of law, the Administrator shall promulgate the designations referred to in subsection (d) of section 107 of the Clean Air Act for each area of each State for the July 1997 PM-2.5 national ambient air quality standards by December 31, 2004.".

(d) CONFORMING AMENDMENT.--Section 1(b) of the Transportation Equity Act for the 21^st Century is amended in the Table of Contents--

(1) in the heading for title VI, by striking "OZONE AND PARTICULATE MATTER STANDARDS" and inserting "OZONE STANDARDS, PARTICULATE MATTER STANDARDS, AND REGIONAL HAZE PROGRAM"; and

(2) in the item relating to section 6102, by striking "monitoring program" and inserting "and regional haze programs".

SEC. 1617. INDEMNIFICATION ON CERTAIN RAILBANKED PROJECTS. [Analysis]

Where, pursuant to a final judgment, a Federal court finds the United States liable by operation of section 8(d) the National Trails System Act (enacted by section 208 of Pub. L. 98-11, 97 Stat. 48) (16 U.S.C. 1247(d)), for a taking of property under the Fifth Amendment to the United States Constitution, a State that has received funds, after the date of enactment of this Act, under a Federal-aid highway program established under title 23, United States Code, and that has used a portion of those funds to acquire, develop, maintain or improve a railroad right-of-way that is the subject of the judgment, shall indemnify the United States up to the lesser amount of the judgment awarded (including attorney fees) or the Federal-aid highway program funds received in connection with that railroad right-of-way.

Subtitle G--Program Efficiencies and Improvements--Operations

SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS. [Analysis]

(a) DEFINITIONS. Section 101(a) of title 23, United States Code, is amended-

(1) in paragraph (3)-

(A) by inserting "and intermodal operations to enhance security" after "program" in the first sentence; and

(B) in subparagraph (G), by striking "traffic control systems,";

(2) in paragraph (18), as redesignated by this Act, by inserting "costs incurred by transportation agencies attributed to operation of technology used to monitor critical transportation infrastructure for security purposes," after "rent," and by inserting "transportation systems management and operations and" after "with";

(3) in paragraph (19)(A)(i), as redesignated by this Act, by inserting-

(A) "transportation system management and operations, including," after "for";

(B) "and transportation security" after "installation of traffic"; and

(C) "equipment and programs for transportation response to manmade and natural disasters," after "incident management programs,";

(4) by redesignating paragraphs (39) and (40), as redesignated by this Act, as paragraphs (40) and (41), respectively; and

(5) by inserting new paragraph (39) after paragraph (38), as follows:

"(39) TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.-The term "transportation systems management and operations" means an integrated program to optimize the performance of existing infrastructure through the implementation of multi- and intermodal, cross-jurisdictional systems, services, and projects designed to preserve capacity and improve security, safety, and reliability of Federal-aid highways. Transportation systems management and operations includes regional operations collaboration and coordination activities between transportation and public safety agencies, and improvements such as traffic detection and surveillance, arterial management, freeway management, demand management, work zone management, emergency management, electronic toll collection, automated enforcement, traffic incident management, roadway weather management, traveler information services, commercial vehicle operations, traffic control, freight management, and coordination of highway, rail, transit, bicycle, and pedestrian operations.".

(b) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM ELIGIBILITY.--Section 149(b)(5) of such title is amended by inserting "improve transportation systems management and operations," after "intersections,"

(c) SURFACE TRANSPORTATION PROGRAM ELIGIBILITY.-Section 133(b) of such title, as amended by section 1608 of this Act, is further amended by adding at the end the following:

"(17) Regional transportation operations collaboration and coordination activities that are associated with regional improvements, such as traffic incident management, technology deployment, emergency management and response, traveler information, and regional congestion relief.".

(d) TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.--Chapter 1 of such title, as amended by this Act, is further amended by inserting the following new section after section 164:

"§ 165. Transportation systems management and operations

"(a) AUTHORITY.-To ensure efficient and effective transportation systems management and operations on Federal-aid highways, through collaboration, coordination, and real-time information sharing, at a regional level, between transportation system managers and operators, public safety officials, and the general public, and to manage and operate Federal-aid highways in a coordinated manner to preserve the capacity and maximize the performance of existing highway and transit facilities for travelers and carriers, the Secretary of Transportation may--

"(1) encourage transportation system managers, operators, public safety officials, and transportation planners within an urbanized area, who are actively engaged in and responsible for conducting the day-to-day management, operations, public safety, and planning of transportation facilities and services, to collaborate and coordinate on a regional level in a continuous and sustained manner, for improved transportation systems management and operations, including, at a minimum--

"(A) developing a regional concept of operations that defines a regional strategy shared by all transportation and public safety participants for how the regions' systems should be managed, operated, and measured;

"(B) sharing of information among operators, service providers, public safety officials, and the general public; and

"(C) guiding in a regionally-coordinated manner, the implementation of regional transportation system management and operations initiatives including emergency evacuation and response, traffic incident management, technology deployment, and traveler information systems delivery, in a manner consistent with and integrated into the ongoing Metropolitan and Statewide transportation planning processes and regional intelligent transportation system architecture, if required; and

"(2) encourage States to establish a system of basic real-time monitoring capability for the surface transportation system and provide the capability and means to share that data among agencies (highways, transit, public safety), jurisdictions (including states, cities, counties, metropolitan planning organizations), private-sector entities; and the traveling public.

"(b) EXECUTION.--To support the successful execution of transportation systems management and operations activities, the Secretary may undertake the following:

"(1) Assist and cooperate with other Federal departments and agencies, State and local governments, metropolitan planning organizations, private industry, and other interested parties to improve regional collaboration and real-time information sharing between transportation system managers and operators, public safety officials, emergency managers, and general public to increase security, safety, and reliability of our Federal-aid highways.

"(2) Issue, if necessary, new guidance or regulations for the procurement of transportation system management and operations facilities, equipment, and services, including but not limited to equipment procured in preparation for manmade or natural disasters and emergencies, system hardware, software, and software integration services. In developing such guidelines, the Secretary may consider innovative procurement methods that support the timely and streamlined execution of transportation system management and operations programs and projects.

"(3) Approve for Federal financial assistance from funds apportioned under section 104(b)(3) of this title support for regional operations collaboration and coordination activities that are associated with regional improvements, such as traffic incident management, technology deployment, emergency management and response, traveler information, and congestion relief.".

(e) CONFORMING AMENDMENT.-The analysis for chapter 1 of such title is amended by inserting after the item relating to section 164 the following:

"165. Transportation systems management and operations.".

SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM. [Analysis]

(a) GOALS AND PURPOSES.-

(1) GOALS.-The goals of the real-time system management information program are to provide the nationwide capability to monitor, in real-time, the traffic and travel conditions of our nation's major highways and to widely share that information to improve the security of the surface transportation system, address congestion problems, support improved response to weather events, and facilitate national and regional traveler information.

(2) PURPOSES.-The purposes of the real-time system management information program are to--

(A)establish a nationwide system of basic real-time information for managing and operating our surface transportation system;

(B)identify longer range real-time highway and transit monitoring needs and develop plans and strategies for meeting those needs; and

(b) DATA EXCHANGE FORMATS.-Within one year of enactment of this Act, the Secretary shall establish data exchange formats to ensure that the data provided by highway and transit monitoring systems, including statewide incident reporting systems can readily be exchanged across jurisdictional boundaries, facilitating nationwide availability of information.

(c) STATEWIDE INCIDENT REPORTING SYTEM.-Within 2 years of enactment of this legislation, each State shall establish a statewide incident reporting system.

(d) REGIONAL INTELLIGENT TRANSPORTATION SYSTEM ARCHITECTURE.-

(1) As State and local governments develop or update their regional ITS architectures, as specified in section 940.9 of title 23, Code of Federal Regulations (Regional ITS Architecture), they shall explicitly address their real-time highway and transit information needs and the systems needed to meet those needs. This specific incorporation of information needs should address coverage, monitoring systems, data fusion and archiving, and methods of exchanging or sharing this information.

(2) States are encouraged to incorporate the data exchange formats developed by the Secretary to ensure that the data provided by highway and transit monitoring systems can readily be exchanged across state and local governments, and with the traveling public.

(e) ELIGILIBITY.-

(1) USE OF SURFACE TRANSPORTATION PROGRAM FUNDS.-Subject to project approval by the Secretary, a State may obligate funds apportioned to it under section 104(b)(3) of title 23, United States Code, for activities related to the planning and deployment of real-time monitoring elements.

(2) USE OF NATIONAL HIGHWAY SYSTEM FUNDS.- Subject to project approval by the Secretary, a State may obligate funds apportioned to it under section 104(b)(1) of title 23, United States Code, for activities related to the planning and deployment of real-time monitoring elements.

(3) USE OF STATE PLANNING AND RESEARCH FUNDS.- Subject to project approval by the Secretary, a State may obligate funds available under section 104(i) of title 23, United States Code, as amended by section 1503 of this Act, for activities related to the planning of real-time monitoring elements.

(f) DEFINITION.-In this section, the term "statewide incident reporting system" means a statewide system for facilitating the real-time electronic reporting of incidents to a central location for use in monitoring the event, providing accurate traveler information, and responding to the incident as appropriate.

SEC. 1703. INTELLIGENT TRANSPORTATION SYSTEMS PERFORMANCE INCENTIVE PROGRAM. [Analysis]

(a) IN GENERAL.--The Secretary shall establish a comprehensive incentive program to accelerate the integration and interoperability of intelligent transportation systems in order to improve the performance of the surface transportation system in metropolitan and rural areas.

(b) DEFINITIONS.--

(1) INTELLIGENT TRANSPORTATION SYSTEMS.--The term "intelligent transportation systems" has the meaning given the term under section 5507 of this Act.

(2) NATIONAL HIGHWAY SYSTEM.--The term "National Highway System" means the Federal-aid highway system described in section 103(b) of title 23, United States Code.

(3) REGION - The term "region" means any geographic area that identifies the boundaries of the regional Intelligent Transportation Systems architecture and is defined by the needs of the participating agencies and their stakeholders for the purposes of improving surface transportation operations. A region may include a metropolitan planning area, a corridor, a State, or multiple states.

(c) GOAL.--The goal of the intelligent transportation systems performance incentive program is to reduce traffic congestion, improve transportation system reliability, provide better customer service to users of the highway system, and improve safety and security by providing financial incentives to transportation agencies to invest in proactively monitoring and managing the performance of the transportation system.

(d) PURPOSE.--The purpose of the intelligent transportation systems performance incentive program is to support the deployment and integration of intelligent transportation systems based on the performance of these systems in improving the management and operation of their surface transportation systems.

(e) REGULATIONS.--

(1) ISSUANCE.--The Secretary of Transportation shall issue regulations establishing a funding formula for the distribution of funds under this section.

(2) BASIS FOR FUNDING FORMULA.--The funding formula shall be based on criteria that reflect each State's--

(A) reductions in delay due to incidents;

(B) improvements in the operation and safety of signalized intersections;

(D) improvements in the efficiency and reliability of transit services;

(E) overall improvement in integrated regional transportation operations;

(F) improvements in the quality and availability of traveler information;

(G) improved crash notification; and

(H) improvements in the safety and productivity of commercial vehicle operations on the National Highway System.

(3) EFFECTIVE DATE.--The funding formula shall take effect in the fiscal year established by the Secretary in the regulations.

(4) APPORTIONMENT PHASE-IN.--The funding formula shall provide for the apportionment of funds in the following manner:

(A) FIRST FISCAL YEAR.--In the first fiscal year that the funding formula is in effect, 50 percent of the sums authorized to be appropriated for expenditure on the intelligent transportation systems performance incentive program for that fiscal year shall be apportioned according to the funding formula developed under this subsection and 50 percent of the amount shall be apportioned in accordance with the formula set forth in section 104(b)(1)(A)(i) through (iv) of title 23, United States Code.

(B) SECOND FISCAL YEAR.--In the second fiscal year the funding formula is in effect, 75 percent of the sums authorized to be appropriated for expenditure on the intelligent transportation systems performance incentive program for that fiscal year shall be apportioned according to the funding formula developed under this subsection and 25 percent of the amount shall be apportioned in accordance with the formula set forth in section 104(b)(1)(A)(i) through (iv) of title 23, United States Code.

(C) THIRD AND SUBSEQUENT FISCAL YEARS.--In the third and subsequent fiscal years, the sums authorized to be appropriated for expenditure on the intelligent transportation systems performance incentive program shall be apportioned according to the funding formula developed under this subsection.

(f) FUNDING.--

(1) APPLICABILITY OF TITLE 23, UNITED STATES CODE.--Funds authorized to be appropriated under section 1101(a)(13) of this Act shall be available for obligation in the same manner and to the same extent as if such funds were apportioned under chapter 1 of title 23, United States Code, except that such funds shall remain available until expended.

(2) FEDERAL SHARE.--The Federal share payable under section 120(b) of title 23, United States Code, shall apply to any project carried out under this section.

(g) APPORTIONMENTS.--The Secretary shall apportion the sums authorized to be appropriated for expenditure on the intelligent transportation systems performance incentive program among the States in accordance with the formula set forth in section 104(b)(1)(A)(i) through (iv) of title 23, United States Code, until the fiscal year established by the regulation under subsection (e)(3).

(h) USE OF FUNDS.--Amounts apportioned under this section shall be used for projects involving planning, deployment, integration, and operation of intelligent transportation systems, or any other project or activity designed to further improve system operations. Funds apportioned to each State under this section should be made available for projects in metropolitan planning areas, corridors, and other regions as appropriate to improve operations.

SEC. 1704. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS DEPLOYMENT. [Analysis]

(a) IN GENERAL.--The Secretary shall carry out a Commercial Vehicle Information Systems and Networks program to--

(1) improve the safety and productivity of commercial vehicles and drivers; and

(2) reduce costs associated with commercial vehicle operations and Federal and State commercial vehicle regulatory requirements.

(b) PURPOSE.--The program shall advance the technological capability and promote the deployment of intelligent transportation system applications for commercial vehicle operations, including commercial vehicle, commercial driver, and carrier-specific information systems and networks.

(1) IN GENERAL.--The Secretary shall make grants to eligible States for the core deployment of Commercial Vehicle Information Systems and Networks.

(2)ELIGIBILITY.-- To be eligible for a core deployment grant under this section, a State--

(A) shall have a Commercial Vehicle Information Systems and Networks program plan and a top level system design approved by the Secretary;

(B) shall certify to the Secretary that its Commercial Vehicle Information Systems and Networks deployment activities, including hardware procurement, software and system development, and infrastructure modifications, are consistent with the national intelligent transportation systems and Commercial Vehicle Information Systems and Networks architectures and available standards, and promote interoperability and efficiency to the extent practicable; and

(C) shall agree to execute interoperability tests developed by the Federal Motor Carrier Safety Administration to verify that its systems conform with the national intelligent transportation systems architecture, applicable standards, and protocols for Commercial Vehicle Information Systems and Networks.

(3) AMOUNT OF GRANTS.--The maximum aggregate amount a State may receive under this section for the core deployment of Commercial Vehicle Information Systems and Networks may not exceed $2.5 million, including funds received under sections 4001(e) and 5001(a)(5) and (6) of the Transportation Equity Act for the 21^st Century for the core deployment of Commercial Vehicle Information Systems and Networks.

(4) USE OF FUNDS.--Funds from a grant under this subsection may only be used for the core deployment of Commercial Vehicle Information Systems and Networks. Eligible States that have either completed the core deployment of Commercial Vehicle Information Systems and Networks or complete such deployment before core deployment grant funds are expended, may use the remaining core deployment grant funds for the expanded deployment of Commercial Vehicle Information Systems and Networks in their State.

(d) EXPANDED DEPLOYMENT GRANTS.--

(1) IN GENERAL.--For each fiscal year, from the funds remaining after the Secretary has made core deployment grants under subsection (c) of this section, the Secretary may make grants to each eligible State, upon request, for the expanded deployment of Commercial Vehicle Information Systems and Networks.

(2) ELIGIBILITY.--Each State that has completed the core deployment of Commercial Vehicle Information Systems and Networks is eligible for an expanded deployment grant.

(3) AMOUNT OF GRANTS.--Each fiscal year, the Secretary may distribute funds available for expanded deployment grants equally among the eligible States, but not to exceed $1 million per State.

(4) USE OF FUNDS.--A State may use funds from a grant under this subsection only for the expanded deployment of Commercial Vehicle Information Systems and Networks.

(e) FEDERAL SHARE.--The Federal share of the cost of a project payable from funds made available to carry out this section shall not exceed 50 percent. The total Federal share of the cost of a project payable from all eligible sources shall not exceed 80 percent.

(f) APPLICABILITY OF TITLE 23, UNITED STATES CODE.--Funds authorized to be appropriated under section 1101(a)(15) of this Act shall be available for obligation in the same manner and to the same extent as if such funds were apportioned under chapter 1 of title 23, United States Code, except that such funds shall remain available until expended.

(g) DEFINITIONS.--In this section, the following definitions apply:

(1) COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS.--The term "Commercial Vehicle Information Systems and Networks" means the information systems and communications networks that provide the capability to--

(A) improve the safety of commercial vehicle operations;

(B) increase the efficiency of regulatory inspection processes to reduce administrative burdens by advancing technology to facilitate inspections and increase the effectiveness of enforcement efforts;

(C) advance electronic processing of registration information, driver licensing information, fuel tax information, inspection and crash data, and other safety information;

(D) enhance the safe passage of commercial vehicles across the United States and across international borders; and

(E) promote the communication of information among the States and encourage multistate cooperation and corridor development.

(2) COMMERCIAL VEHICLE OPERATIONS.--The term "commercial vehicle operations"--

(A) means motor carrier operations and motor vehicle regulatory activities associated with the commercial movement of goods, including hazardous materials, and passengers; and

(B) with respect to the public sector, includes the issuance of operating credentials, the administration of motor vehicle and fuel taxes, and roadside safety and border crossing inspection and regulatory compliance operations.

(3) CORE DEPLOYMENT.--The term "core deployment" means the deployment of systems in a State necessary to provide the State with the following capabilities:

(A) Safety information exchange to--

(i) electronically collect and transmit commercial vehicle and driver inspection data at a majority of inspection sites;

(ii) connect to the Safety and Fitness Electronic Records (SAFER) system for access to interstate carrier and commercial vehicle data, summaries of past safety performance, and commercial vehicle credentials information; and

(iii) exchange carrier data and commercial vehicle safety and credentials information within the State and connect to Safety and Fitness Electronic Records (SAFER) for access to interstate carrier and commercial vehicle data.

(B) Interstate credentials administration to--

(i) perform end-to-end processing, including carrier application, jurisdiction application processing, and credential issuance, of at least the International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) credentials and extend this processing to other credentials, including intrastate, titling, oversize/overweight, carrier registration, and hazardous materials;

(ii) connect to the International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA) clearinghouses; and

(iii) have at least 10 percent of the transaction volume handled electronically and have the capability to add more carriers and to extend to branch offices where applicable.

(C) Roadside electronic screening to electronically screen transponder-equipped commercial vehicles at a minimum of one fixed or mobile inspection sites and to replicate this screening at other sites.

(4) EXPANDED DEPLOYMENT.--The term "expanded deployment" means the deployment of systems in a State that exceed the requirements of an core deployment of Commercial Vehicle Information Systems and Networks, improve safety and the productivity of commercial vehicle operations, and enhance transportation security.

Subtitle H. Program Efficiencies and Improvements - Federal-Aid Stewardship

SEC. 1801. SURFACE TRANSPORTATION SYSTEM PERFORMANCE PILOT PROGRAM. [Analysis]

(a) ESTABLISHMENT.--

(1) IN GENERAL.--The Secretary shall establish and implement a Surface Transportation System Performance Pilot Program. Subject to this section, a State may assume some or all, as the Secretary and State may agree, of the Secretary's responsibilities under title 23, United States Code, or assume all or some, as they may agree, of the Secretary's responsibilities under any Federal law, for projects constructed with Federal funds under this pilot program.

(2) OBLIGATION OF FUNDS.--States participating in this pilot program may obligate funds under sections 104(b)(1), 104(b)(3), 104(b)(4), 104(b)(5), 105, and 144(e) of title 23, United States Code, for any purpose for which Federal funds may be obligated by a State under title 23. However, the State shall reserve 10 percent of the funds apportioned under section 104(b)(3) in each fiscal year for transportation enhancement activities as specified in section 133(d)(1), as amended by this Act.

(3) PURPOSE.--The purpose of this performance pilot program is to demonstrate the benefits of performance-based management and to determine how such an approach can be best incorporated into an effective Federally-assisted, State administered Federal-aid highway program. The Secretary shall work closely with potential pilot States to determine ways to build into program-level oversight performance measures that reflect both State and national interests and to apply them with specific measurement of program effectiveness.

(b) STATE PARTICIPATION.--

(1) NUMBER OF PARTICIPATING STATES.--The Secretary may permit up to five States to participate in the performance pilot program established under subsection (a).

(2) APPLICATION.--To participate in the performance pilot program, a State shall submit an application to the Secretary that contains, at a minimum, the following:

(A) A description of the State's long-term and short-term transportation goals.

(B) A description of how the State will address any areas of national strategic importance, as may be determined by the Secretary, in reaching its goals. The areas of national strategic importance must include the following: national security, interstate commerce, mobility, safety, and environmental stewardship.

(C) A description of the performance measures under which the State's progress and success toward reaching its goals would be measured.

(D) A description of how funding will be distributed equitably across the State, including to urbanized areas with populations in excess of 200,000. This would include addressing how local units of government would be consulted in the process of program development and implementation.

(E) Evidence of the State's notice and solicitation of public comment and copies of comments received from such solicitation.

(F) Such other information as the Secretary may require.

(3) PUBLIC NOTICE.--Each State that submits an application under this subsection, shall give public notice of its intent to participate in the pilot program at least 20 days prior to submitting its application to the Secretary. The State shall provide notice and solicit public comment by publishing the entire application in accordance with the State's public notice law.

(4) SELECTION CRITERIA.--The Secretary may approve the application of a State under this section only if the application demonstrates how the State plans to address the areas of national strategic importance as identified in subsection (b)(2)(B). The Secretary will prioritize the selection of applications based on the degree to which the applicant's proposed goals address the areas of national strategic importance, the State's ability to manage and monitor its programs on a performance basis, the State's commitment to conduct the required evaluations, and the degree to which the application otherwise proposes to achieve the purposes of this section.

(1) STATE AGREEMENT TO ASSUME SECRETARY'S RESPONSIBILITIES.--

(A) ASSIGNMENT AND ASSUMPTION OF RESPONSIBILITIES.--The Secretary and a State may agree, as provided in this section, that the Secretary will assign and the State will assume some or all of the responsibilities of the Secretary under any Federal law or requirement, except for the responsibilities relating to Federally recognized tribes, with respect to any project constructed with federal funds under this pilot program. The State shall assume these responsibilities subject to the same procedural and substantive requirements as would be required if such responsibilities were carried out by the Secretary. When a State assumes such responsibilities under a Federal law, the State shall be solely responsible and solely liable for complying with and carrying out that law in lieu of the Secretary and shall submit a certification as provided in subsection (f)(1).

(B) FEDERAL ROLE OF STATE.--For purposes of assuming the Secretary's responsibilities under a Surface Transportation System Performance Pilot Program, to the extent the State is carrying out the Secretary's responsibilities under the National Environmental Policy Act, title 23, United States Code, or any other Federal law, the State shall be deemed to be a Federal agency under such laws, and shall agree that its transportation department, or any other State agency carrying out a responsibility of the Secretary under this section, shall be subject to such Federal laws to the same extent that a Federal agency would be subject to such laws.

(C) STATE CERTIFICATION OF ASSUMPTION OF RESPONSIBILITIES.--Whenever a State assumes any of the Secretary's responsibilities under a Federal law, the State shall certify that it has laws and regulations that--

(i) authorize the State to take the actions necessary to carry out the responsibilities being assumed; and

(ii) are comparable to the Federal Freedom of Information Act and that any decision regarding the public availability of a document under those laws is reviewable by a court of competent authority.

(2) OTHER FEDERAL AGENCY VIEWS.--If a State assumes a responsibility of the Secretary under paragraph (1) of this subsection that would have required the Secretary to consult with another Federal agency, the Secretary shall solicit the views of such Federal agency prior to entering into or renewing any program agreement.

(3) MAINTENANCE OF EFFORT.--The Secretary shall not make any apportionment to a State participating in this performance pilot program in any fiscal year under sections 104(b)(1), 104(b)(3), 104(b)(4), 104(b)(5), 105, and 144(e) of title 23, United States Code, unless the State enters into such agreements with the Secretary as the Secretary may require to ensure that the State will maintain its non-Federal transportation capital expenditures in any fiscal year at or above the average level of such expenditures for the preceding three fiscal years.

(4) FEDERAL SHARE PAYABLE.--The Federal share payable under this performance pilot program for a project funded with apportionments under sections 104(b)(1), 104(b)(3), 104(b)(4), 104(b)(5), 105, and 144(e) of title 23, United States Code, may be up to 100 percent; except that, the Federal share payable for transportation enhancements under section 133(d)(1), shall be determined in accordance with title 23, United States Code.

(d) PROGRAM AGREEMENT.--

(1) IN GENERAL.--Each year prior to making any apportionments to a participating State, the Secretary shall enter into an agreement with the State establishing its performance goals and performance measures.

(2) AGREEMENT CONCERNING PARTICIPATING STATE'S RESPONSIBILITIES.--The Secretary shall enter into one or more agreements with a State selected for participation in this pilot program concerning which, if any, Federal laws or requirements the State will carry out under subsection (c). The program agreement between the Secretary and the State shall specify management responsibilities, including the role of the State in relation to other Federal agencies.

(3) GOALS.--The Secretary and participating State shall agree, based on the State's priorities and the areas of national strategic importance as determined by the Secretary, on the long-term and short-term goals to be achieved using the State's apportionments under the program.

(4) PERFORMANCE MEASURES.--The Secretary and the State shall mutually establish the performance measures that the State must meet relating to the goals identified in paragraph (3) of this subsection. Continued participation in the pilot program is contingent on the State meeting these performance measures. If a State fails to meet the agreed upon performance measures in two consecutive years, the Secretary shall terminate a State's participation in the pilot program.

(5) COMPLIANCE.--If a participating State fails to comply with any provision of this section, the Secretary shall take such actions as necessary to ensure compliance. Corrective actions may include termination of the State's participation in the pilot program.

(e) LIMITATIONS ON AGREEMENTS.--

(1) CIVIL RIGHTS.-- Nothing in this section shall be construed as relieving the Secretary from any of the Secretary's responsibilities under title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d, et seq.).

(2) MAJOR PROJECTS.-- Nothing in this section shall be construed as relieving the Secretary from any of the Secretary's responsibilities with respect to major projects under section 106(h) of title 23, United States Code.

(3) STATEWIDE AND METROPOLITAN PLANNING.-- Nothing in this section shall be construed as relieving the Secretary from any of the Secretary's responsibilities under the Statewide and metropolitan planning requirements of sections 134 and 135 of title 23, United States Code.

(4) REGULATORY RESPONSIBILITIES.--Nothing in this section shall be construed to allow a State to assume any of the Secretary's rulemaking authority under any Federal law.

(f) STATE REPORTING AND ACCOUNTABILITY.--A State participating in this pilot program shall make the following reports to the Secretary. A State may combine reports as appropriate.

(1) STATE CERTIFICATION PRIOR TO OBLIGATION OF FUNDS.--As a prerequisite to the Secretary's agreement that a State will fulfill or assume any of the Secretary's responsibilities, and prior to the obligation of any money under this pilot program in any fiscal year, the participating State shall provide, and annually renew, a certification that--

(A) is in a form acceptable to the Secretary;

(B) is executed by the Governor or the State's top-ranking transportation official charged with the responsibility for highway construction;

(D) specifies that the State consents to assume the status of the Secretary under any responsibility it may assume; and

(E) expressly consents on behalf of the State and himself or herself to accept the jurisdiction of the Federal courts for the compliance, discharge, and enforcement of any responsibility of the Secretary it may assume.

(2) END OF FISCAL YEAR STATE CERTIFICATION.--At the end of each fiscal year in which a State obligates funds under this pilot program, the State shall certify that it obligated such funds only for projects that would otherwise be eligible for assistance under title 23. Such certification shall also specify that the State reserved for obligation the amounts specified in section 133(d)(1) of such title as amended by this Act.

(3) FISCAL ACCOUNTABILITY.--Each State shall provide an annual accounting for the obligations in a manner determined by the Secretary in such a way as to provide a basis for evaluating the effect of the pilot program expenditures.

(4) ANNUAL STATE ASSESSMENT.--Each State will provide to the Secretary a narrative report at the end of each year describing the benefits of the pilot program to the State and any suggestions for improving the pilot program.

(g) TERMINATION.--This pilot program shall terminate six years following enactment of this Act. Funding obligated under the pilot program shall continue to be administered under the terms of the pilot program until those funds have been expended.

SEC. 1802. STEWARDSHIP AND OVERSIGHT. [Analysis]

(a) Section 106 of title 23, United States Code, is amended-

(1) by striking subsection (e) and inserting the following:

"(e) VALUE ENGINEERING ANALYSIS.-

"(1) ANALYSIS.--For all projects on the National Highway System with an estimated total cost of $25,000,000 or more, and any project the Secretary deems appropriate, the State shall provide a value engineering analysis or other cost reduction analysis. For major projects as identified in subsection (h) of this section, more than one such analysis may be required.

"(2) DEFINITION.--In this subsection, the term "value engineering analysis" means a systematic process of review and analysis of a project during its design phase by a multidisciplined team of persons not involved in the project in order to provide suggestions for reducing the total cost of the project and providing a project of equal or better quality. Such suggestions may include combining or eliminating otherwise inefficient use of expensive parts of the original proposal design for the project and total redesign of the proposed project using different technologies, materials, or methods so as to accomplish the original purpose of the project."; and

(2) by striking subsections (g) and (h) and inserting the following:

"(g) OVERSIGHT PROGRAM.--

"(1) IN GENERAL.--The Secretary shall establish an oversight program to monitor the effective and efficient use of funds authorized by this title. At a minimum, the program shall be responsive to all areas related to financial integrity and project delivery.

"(2) FINANCIAL INTEGRITY.--

"(A) FINANCIAL MANAGEMENT SYSTEMS.--The Secretary shall perform annual reviews that address elements of the State transportation departments' financial management systems that affect projects approved under subsection (a). Risk assessment procedures shall be used to identify review areas.

"(B) PROJECT COSTS.--The Secretary shall develop minimum standards for estimating project costs, and shall periodically evaluate the States' practices for estimating project costs, awarding contracts, and reducing project costs.

"(C) RESPONSIBILITY OF THE STATES.--The States are responsible for determining that subrecipients of Federal funds have sufficient accounting controls to properly manage Federal funds. The Secretary shall periodically review the States' monitoring of subrecipients.

"(3) PROJECT DELIVERY.--The Secretary shall perform annual reviews that address elements of the States' project delivery system, which includes one or more activities that are involved in the life cycle of a project from its conception to its completion. Risk assessment procedures will be used to identify review areas.

"(4) RESPONSIBILITY OF THE STATES.--The States are responsible for determining that subrecipients of Federal funds have adequate project delivery systems for projects approved under this section. The Secretary shall periodically review the States' monitoring of subrecipients.

"(5) SPECIFIC OVERSIGHT RESPONSIBILITIES.--Nothing in this section shall affect or discharge any oversight responsibility of the Secretary specifically provided for under this title or other Federal law. In addition, the Secretary shall retain full oversight responsibilities for the design and construction of all Appalachian development highways under section 201 of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.).

"(h) MAJOR PROJECTS.--

"(1) IN GENERAL.--Notwithstanding any other provision in this section, a recipient of Federal financial assistance for a project under this title with an estimated total cost of $1,000,000,000 or more, or any other project in the discretion of the Secretary, shall submit to the Secretary a project management plan and an annual financial plan.

"(2) PROJECT MANAGEMENT PLAN.--The project management plan shall document the procedures and processes in place to provide timely information to the project decision makers to effectively manage the scope, costs, schedules, and quality, and the Federal requirements of the project, and the role of the agency leadership and management team in the delivery of the project.

"(3) FINANCIAL PLAN. - The financial plan shall be based on detailed estimates of the cost to complete the project. Annual updates shall be submitted based on reasonable assumptions, as determined by the Secretary, of future increases in the cost to complete the project.

"(i) OTHER PROJECTS.--A recipient of Federal financial assistance for a project under this title that receives $100,000,000 or more in Federal assistance for such project, and that is not covered by subsection (h) of this section, shall prepare an annual financial plan. Annual financial plans prepared under this subsection shall be made available to the Secretary for review upon the Secretary's request.".

(b) Section 114(a) of such title is amended--

(1) in the first sentence by striking "highways or portions of highways located on a Federal-aid system" and inserting "Federal-aid highway or portion thereof"; and

(2) by striking the second sentence and inserting "The Secretary shall have the right to inspect and take any corrective action as the Secretary may deem appropriate.".

(c) Section 117 of such title is amended by striking subsection (d) and redesignating subsections (e), (f), (g), and (h) as subsections (d), (e), (f), and (g), respectively.

(d) Section 307 of title 49, United States Code, is amended to read as follows:

"Sec. 307. Contractor suspension and debarment policy; sharing fraud monetary recoveries

"(a) MANDATORY ENFORCEMENT POLICY.--(1) Notwithstanding any other provision of law, the Secretary shall--

"(A) debar any contractor or subcontractor convicted of criminal or civil offenses involving fraud related to projects receiving Federal highway or transit funds. The debarment period shall be determined by the Secretary, as appropriate; and

"(B) suspend any contractor or subcontractor upon their indictment for criminal or civil offenses involving fraud, subject to the approval of the Attorney General. The Secretary shall have authority to exclude non-affiliated subsidiaries of the debarred business entity, subject to the approval of the Attorney General.

"(2) Upon a finding that mandatory debarment or suspension of a contractor or subcontractor under subsection (1), above, would be contrary to the national security interests of the U.S., the Secretary may waive the debarment or suspension.

"(b) SHARING OF MONETARY RECOVERIES.--(1) Notwithstanding any other provision of law, monetary judgments accruing to the Federal government from judgments in Federal criminal prosecutions and civil judgments pertaining to fraud in highway and transit programs shall be shared with the State or local transit agency involved. The State or local transit agency shall use these funds for transportation infrastructure and oversight activities related to programs authorized under titles 23 and 49.

"(2) The amount of recovered funds to be shared with the affected State or local transit agency shall be determined by the Attorney General in consultation with the Secretary. These funds shall be considered Federal funds, to be used in compliance with other relevant Federal transportation laws and regulations.

"(3) The requirement for sharing of funds described in subparagraph (1), above, shall not be in effect in circumstances wherein the State or local transit agency is found by the Department of Justice, in consultation with the Secretary, to have been involved or negligent with respect to the fraudulent activities.".

(e) The analysis for chapter 3 of title 49 is amended by revising the entry for item 307 to read as follows:

"307. Contractor suspension and debarment policy; sharing fraud monetary recoveries.".

SEC. 1803. EMERGENCY RELIEF [Analysis]

Section 125(c)(1) of title 23, United States Code, is amended by striking "$100,000,000" and inserting "$200,000,000".

SEC. 1804. FEDERAL LANDS HIGHWAYS PROGRAM. [Analysis]

(a) DEFINITIONS.-Section 101(a) of title 23, United States Code, is amended-

(1) in paragraph (7), by striking " public lands highway" and inserting "recreation roads, public Forest Service roads";

(2) by striking paragraph (8) and inserting the following:

"(8) NATIONAL FOREST SYSTEM ROADS AND TRAILS.-The term 'National Forest System roads and trails' means forest roads or trails under the jurisdiction of the Forest Service.";

(3) by striking paragraph (10) and inserting the following:

"(10) FOREST ROAD OR TRAIL.-The term 'forest road or trail' means a road or trail wholly or partly within, or adjacent to, and serving National Forest System lands that is necessary for the protection, administration, use, and development of its resources. There are four types of forest roads:

"(A) CLASSIFIED FOREST ROAD.--The term 'classified forest road' means a forest road that the Forest Service determines to be needed for long-term motor vehicle access, including State roads, county roads, privately owned roads, National Forest System roads, and other roads authorized by the Forest Service.

"(B) UNCLASSIFIED FOREST ROAD.--The term 'unclassified forest road' means a forest road not managed by the Forest Service as part of the forest transportation system.

"(C) TEMPORARY FOREST ROAD.--The term 'temporary forest road' means a forest road that is authorized by the Forest Service through contract, permit, lease, other written authorization, or emergency operation not intended to be a part of the forest transportation system and not necessary for long-term resource management.

"(D) PUBLIC FOREST SERVICE ROAD.--The term 'Public Forest Service Road' means a classified forest road that is open to public travel for which title and maintenance responsibility is vested in the United States government and which has been designated a public road by the Forest Service.";

(4) in paragraph (26), as redesignated by this Act, by striking "unappropriated or unreserved"; and

(5) by striking paragraph (27), as redesignated by this Act, by redesignating paragraph (28) as (27), and by inserting the following new paragraph:

"(28) RECREATION ROADS.-The term 'recreation roads' means those public roads that provide access to museums, lakes, reservoirs, visitors centers, gateways to major wilderness areas, public uses areas, recreation and historic sites and for which title is vested in the United States Government."

(b) FEDERAL SHARE PAYABLE.-

(1) Section 120(k) of such title is amended by striking "Federal-aid highway".

(2) Sections 120(k) and 120(l) of such title are amended by striking "section 104" each time it appears, and inserting in its place "this title and chapter 53 of title 49".

(c) PAYMENTS TO FEDERAL AGENCIES FOR FEDERAL-AID PROJECTS.-Section 132 of such title is amended by striking the first two sentences and inserting the following:

"Where a proposed Federal-aid project is to be undertaken by a Federal agency pursuant to an agreement between a State and such Federal agency, the State may (1) direct the Secretary to transfer the funds for the Federal share of the project directly to the Federal agency, or (2) make a deposit with or payment to such Federal agency as may be required in fulfillment of the State's obligation under such agreement for the work undertaken or to be undertaken by such Federal agency; the Secretary, upon execution of a project agreement with such State for the proposed Federal-aid project, may reimburse the State out of the appropriate appropriations for the estimated Federal share, under the provisions of this title, of the State's obligation so deposited or paid by such State.".

(d) ALLOCATIONS.-Section 202 of such title is amended--

(1) in subsection (a), by inserting "and grasslands" after "national forests" in the first sentence;

(2) by striking subsection (b) and inserting the following:

"(b) On October 1 of each fiscal year, the Secretary shall allocate the sums authorized to be appropriated for such fiscal year for forest highways, after making the transfer of funds provided for in subsection 204(g) of this title, for each fiscal year as is provided in section 134 of the Federal-Aid Highway Act of 1987, and with respect to these allocations the Secretary shall give equal consideration to projects that provide access to and within the National Forest System, as identified by the Secretary of Agriculture through renewable resource and land use planning and the impact of such planning on existing transportation facilities."; and

(3) in subsection (d),

(A) in paragraph (1), by striking "1999" in the heading and within paragraph (1) and inserting "2005";

(B) in paragraph (2), by striking "2000" in the heading and within paragraphs (2)(A), (2)(B), and (2)(D) and inserting "2005", and by striking "1999" in paragraph (2)(B) and inserting "2004" at each place it appears;

(C) in paragraph (3)(A), by inserting "this chapter and section 125(e) of" after "under", and by adding "and the approved Indian reservation road transportation improvement program" after "Act"; and

(D) in paragraph (4)(D), by striking the sentence after "Approval Requirement." and inserting: "Funds for preliminary engineering for Indian reservation road bridge projects under this subsection may be made available by the Secretary upon request by a tribe or by the Secretary of the Interior. Funds for construction and construction engineering shall be made available only after approval of the plans, specifications, and estimates by the Secretary.".

(e) PLANNING AND AGENCY COORDINATION.-Section 204 of such title is amended-

(1) in subsection (a), by inserting "refuge roads," after "parkways,";

(2) in subsection (b), by striking "appropriate contracts" in the second sentence and inserting "appropriate agreements";

(3) in subsection (k)--

(A) by striking "(2), (5)," and inserting "(2), (3), (5),";

(B) by striking "and" after the semicolon at the end of paragraph (1)(B);

(D) by adding after paragraph (1)(C) the following new subparagraphs:

"(D) maintenance of public roads in National Fish hatcheries under Fish and Wildlife Service jurisdiction;

"(E) the non-Federal share of the cost of any project funded under this title or chapter 53 of title 49 that provides access to or within a wildlife refuge; and

"(F) maintenance and improvement of recreational trails, but such expenditures on trails are limited to 5 percent of available funding per fiscal year.".

(f) SAFETY.-

(1) ALLOCATIONS.-Section 202 of such title is amended by adding at the end the following:

"(f) SAFETY.-On October 1 of each fiscal year, the Secretary shall allocate the sums authorized to be appropriated for such fiscal year for safety as follows: 10 percent to the Bureau of Reclamation, 15 percent to the Bureau of Indian Affairs, 15 percent to the Bureau of Land Management, 15 percent to the Forest Service, 5 percent to the Fish and Wildlife Service, 15 percent to Military Traffic Management Command, 15 percent to the National Park Service, and 10 percent to the U.S. Army Corps of Engineers. The Secretary, from time to time, may adjust the percentage of safety funds allocated to the Federal agencies listed above based on the outputs of agency safety management systems, other safety need analyses or/studies, and the use of previously allocated safety funds.".

(2) Availability of Funds.-Section 203 of such title is amended in the first sentence by inserting "safety," after "refuge roads," at each place it appears.

(3) USE OF FUNDING.-Section 204 is amended by adding at the end the following:

"(l) Safety Activities.-

"(l) IN GENERAL.-Not withstanding any other provision of this title, funds made available for safety shall be used by the Secretary and the Secretary of the appropriate Federal land management agency only to pay the cost of transportation safety improvement projects, elimination of high accident locations, protection or elimination of at-grade railway-highway crossings, collection of safety information, transportation planning, bridge inspections, development and operation of safety management systems, highway safety education programs, and other eligible safety activities authorized in Chapter 4 of this title.

"(2) Contracts.-In carrying out paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency, as appropriate, may enter into contracts or agreements with a State, subdivision of a State, or Indian tribe.

"(3) EXCEPTION.--Funds allocated to the Bureau of Reclamation for the purposes described in this subsection are exempted from the cost-share requirements of P.L. 89-72, The Federal Water Recreation Act.".

(g) Recreation Roads.-

(1) AUTHORIZATIONS.-Section 201 of such title is amended by striking "public lands highways" and inserting "recreation roads".

(2) Allocations.--Section 202 of such title, as amended by this section, is further amended by adding at the end the following:

"(g) RECREATION ROADS.-On October 1 of each fiscal year, the Secretary, after making the transfer provided for in subsection 204(i) of this title, shall allocate the sums authorized to be appropriated for such fiscal year for recreation roads as follows: 6 percent to the Bureau of Reclamation, 6 percent to the U.S. Army Corps of Engineers, 10 percent to the Bureau of Land Management, 10 percent to the Military Traffic Management Command, and 68 percent to the Forest Service. Recreation road funds shall be allocated to projects and activities according to the relative needs of each area served by these roads as indicated in the approved transportation improvement programs for each agency. The Secretary, from time to time, may adjust the percentage of recreation road funds allocated to the Federal agencies listed above based on the outputs of agency management systems, other need analyses/or studies, and the use of previously allocated recreation road funds.".

(3) AVAILABILITY OF FUNDS.-Section 203 of such title is amended by striking "public lands highways" and inserting "recreation roads" at each place it appears.

(4) USE OF FUNDING.--Section 204 of such title, as amended by this section, is further amended by adding at the end the following:

"(m) RECREATION ROADS.-

"(1) IN GENERAL.-Notwithstanding any other provision of this title, funds made available for recreation roads shall be used by the Secretary and the Secretary of the appropriate Federal land management agency only to pay the cost of-

"(A) maintenance or improvements of existing recreation roads;

"(B) maintenance and improvements of eligible projects described in paragraphs (1), (2), (3), (5), and (6) of subsection (h) that are located in or adjacent to Federal land areas under the jurisdiction of the Departments of Agriculture, Defense, or the Interior;

"(C) transportation planning and administrative costs associated with such maintenance and improvements; and

"(D) the non-Federal share of the cost of any project funded under this title or chapter 53 of title 49 that provides access to or within Federal land areas under the jurisdiction of the Departments of Agriculture, Defense, or the Interior.

"(2) CONTRACTS.-In carrying out paragraph (1), the Secretary and the Secretary of the appropriate Federal land management agency, as appropriate, may enter into contracts or agreements with a State or civil subdivision of a State or Indian tribe as is determined advisable.

"(3) NEW ROADS.-No funds available under this section shall be used to pay the cost of the design or construction of new recreation roads.

"(4) Compliance with other environmental lawS.-Maintenance and improvement projects which are funded under this subsection and are consistent with or have been identified in a land use plan for the Federal area do not require any additional environmental reviews or assessments under the National Environmental Policy Act if the Federal agency that promulgated the land use plan analyzed the specific proposal under the National Environmental Policy Act and there are no significant changes to the proposal bearing on environmental concerns and no significant new information.

"(5) EXCEPTION.--Funds allocated to the Bureau of Reclamation for the purposes described in this subsection are exempted from the cost-share requirements of P.L. 89-72, The Federal Water Recreation Act.".

(h) CONFORMING AMENDMENTS.-

(1) Sections 120(e) and 125(e) of title 23, United States Code, are amended by inserting "recreation roads," after "public lands highways," each place the words appear.

(2) Sections 120(e), 125(e), 201, 202(a), 203, section 205 in the heading and in subsections (a) and (d), and the analysis for chapter 2 of such title are amended by striking "forest development roads" and inserting "National Forest System roads" each place the words appear.

(3) Section 204(a)(1) is amended by striking "public lands highways" and inserting "recreation roads, forest highways", section 204(b) is amended by striking "public lands highways" and inserting "recreation roads", and section 204(i) is amended by striking "public lands highways" and inserting "recreation roads and forest highways" each place the words appear.

(4) Section 217(c) is amended by striking " public lands highways" and inserting "refuge roads".

SEC. 1805. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM. [Analysis]

(a) APPORTIONMENT.-The Secretary shall apportion funds made available by section 1101(a)(7) of this Act for fiscal years 2004 through 2009 among the States based on the latest available cost to complete estimate for the Appalachian development highway system under section 201 of the Appalachian Regional Development Act of 1965 prepared by the Appalachian Regional Commission. Such funds shall be available to construct highways and access roads under section 201 of the Appalachian Regional Development Act of 1965.

(b) APPLICABILITY OF TITLE 23.-Funds authorized by section 1101(a)(7) of this Act for the Appalachian development highway system shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, except that the Federal share of the cost of any project under this section shall be determined in accordance with such section 201 and such funds shall remain available until expended.

(c) USE OF TOLL CREDITS.-Section 120(j)(1) of title 23, United States Code is amended by adding "and the Appalachian development highway system program under section 201 of the Appalachian Regional Development Act of 1965" following "(other than the emergency relief program authorized by section 125".

SEC. 1806. MULTI-STATE CORRIDOR PLANNING PROGRAM. [Analysis]

(a) ESTABLISHMENT AND PURPOSE.--The Secretary shall establish and implement a program to support and encourage multi-state transportation planning, provide for streamlined transportation project development, and facilitate transportation decision-making.

(b) ELIGIBLE RECIPIENTS.--State transportation departments and metropolitan planning organizations are eligible to receive and administer funds provided under this program.

(c) ELIGIBLE ACTIVITIES.-- The Secretary shall make allocations under this program for multi-state highway and multi-state multi-modal planning studies.

(d) OTHER PROVISIONS REGARDING ELIGIBILITY.--All studies funded under this program shall be consistent with the continuing, cooperative, and comprehensive planning processes required by sections 134 and 135 of title 23, United States Code.

(e) SELECTION CRITERIA.--The Secretary shall select projects based on--

(1) the existence and significance of signed and binding multi-jurisdictional agreements;

(2) endorsement of the study by elected State and local representatives;

(3) prospects for early completion of the study; and

(4) whether the projects to be studied are located on corridors identified by section 1105(c) of the Intermodal Surface Transportation Efficiency Act of 1991, as amended (Public Law 102-240; 105 Stat. 2032).

(f) PROGRAM PRIORITIES.--In administering the program, the Secretary shall--

(1) encourage and enable States and other jurisdictions to work together to develop plans for multi-modal and multi-jurisdictional transportation decision-making; and

(2) give priority to studies that emphasize multi-modal planning, including planning for operational improvements that increase mobility, freight productivity, access to marine ports, safety, and security while enhancing the environment.

(g) FEDERAL SHARE.--The Federal share payable, using funds from all Federal sources, for any study carried out under this section shall not exceed 80 percent of the total cost of such study, except that the share of funds from the Highway Trust Fund (other than the Mass Transit Account) shall not exceed 50 percent of the total cost of such study.

(h) APPLICABILITY OF TITLE 23 U.S.C.-- Funds authorized to be appropriated under section 1101(a)(10) of this Act to carry out this section shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code.

SEC. 1807. BORDER PLANNING, OPERATIONS, AND TECHNOLOGY PROGRAM. [Analysis]

(a) ESTABLISHMENT AND PURPOSE.--The Secretary shall establish and implement a program to support coordination and improvement in bi-national transportation planning, operations, efficiency, information exchange, safety, and security for the United States borders with Canada and Mexico.

(b) ELIGIBLE RECIPIENTS.--State transportation departments and metropolitan planning organizations at or near an international land border in the States of Alaska, Arizona, California, Idaho, Maine, Michigan, Minnesota, Montana, New Hampshire, New Mexico, New York, North Dakota, Texas, Vermont and Washington, are eligible to receive and administer funds allocated under this program.

(1) IN GENERAL.--The Secretary shall make allocations under the program established in this section for activities at or near international land borders in the States listed in subsection (b).

(2) SPECIFIC ACTIVITIES.--The activities eligible for funding under this program are--

(A) highway and multi-modal planning or environmental studies;

(B) cross-border Port of Entry and safety inspection improvements, including operational enhancements and technology applications;

(D) right-of-way acquisition, design, and construction, where needed to add the enhancements or applications described in subparagraphs (B) and (C), or to decrease air pollution emissions from vehicles or inspection facilities at border crossings.

(d) OTHER PROVISIONS REGARDING ELIGIBILITY.--All studies and projects funded under this program shall be consistent with the continuing, cooperative, and comprehensive planning processes required by sections 134 and 135 of title 23, United States Code. All regionally significant projects that are part of such applications must be on the transportation plans and program required by sections 134 and 135 of title 23, United States Code.

(e) SELECTION CRITERIA.--The Secretary shall select projects based on-- (1) expected benefits, including air quality benefits, of the project in relation to its costs;

(2) prospects for early completion of the study or project;

(3) endorsement of the project by formally constituted bi-national organizations with both Federal and State or provincial representation;

(4) the existence and significance of signed and binding multi-jurisdictional agreements;

(5) contributions of other title 23 funds and non-title 23 funds above the minimum required; and

(6) the extent to which the project benefits are multi-modal.

(f) PROGRAM PRIORITIES.--In administering the program, the Secretary shall emphasize multi-modal planning; infrastructure improvements; and operational improvements that increase safety, security, freight movement, or highway access to rail, marine, and air services while enhancing the environment.

(g) FEDERAL SHARE.--The Federal share payable on account of any project carried out under this section shall not exceed 80 percent of the total cost of such project.

(h) APPLICABILITY OF TITLE 23 U.S.C.-- Funds authorized to be appropriated under section 1101(1)(11) of this Act to carry out this section shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code.

(i) ALLOCATION OF FUNDS.--No individual project whose scope of work is limited to information exchange shall receive an allocation greater than $500,000 in a single year.

(j) PROJECTS IN CANADA OR MEXICO.--Projects in Canada or Mexico proposed by one or more border States that directly and predominantly facilitate cross border vehicle and commercial cargo movements at the international gateways or ports of entry into the border region(s) of such State(s), may be constructed using funds allocated under this program provided that, prior to the obligation of such funds, Canada or Mexico, or the political subdivision thereof responsible for the operation of the facility to be constructed, has provided assurances satisfactory to the Secretary that any facility constructed under this subsection will be constructed to standards equivalent to those in the United States and properly maintained and used over the useful life of the facility for the purpose for which the Secretary allocated funds to such project.

(k) SET-ASIDE.--The Secretary shall set-aside $47,000,000 of the funds authorized for fiscal year 2004 under section 1101(a)(11) of this Act for construction of State border safety inspection facilities in the States of Arizona, California, New Mexico, and Texas.

(l) TRANSFER OF FUNDS TO THE GENERAL SERVICES ADMINISTRATION.--

(1) STATE FUNDS.--At the request of a State, funds allocated under this section may be transferred to the General Services Administration for the purpose of funding a specific project or projects if the Secretary determines, after consultation with the State transportation department as appropriate, that the General Services Administration should carry out the project or projects and the General Services Administration agrees to accept the transfer of funds and to administer those funds. The State shall provide the 20 percent non-Federal share of the project cost, as required under subsection (g) of this section, directly to the General Services Administration. Funds so transferred or provided shall not be deemed to be an augmentation of the General Services Administration's appropriations and shall be administered under that agency's procedures, except the transferred funds shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code. Obligation authority shall be transferred to the General Services Administration in the same manner and amount as the allocated funds transferred for the projects.

(2) DIRECT TRANSFER OF AUTHORIZED FUNDS.--In addition to allocations to States and metropolitan planning organizations as provided in subection (b), the Secretary may transfer funds made available to carry out this section to the General Services Administration for construction of transportation infrastructure projects at or near the border in the States identified in subsection (b), if the Secretary determines that such transfer is necessary to effectively carry out the purposes of this program and the General Services Administration agrees to accept the transfer of funds and to administer those funds. Funds so transferred shall not be deemed to be an augmentation of the General Services Administration's appropriations and shall be administered under that agency's procedures, except the transferred funds shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code. Section 120 of title 23, United States Code, shall not apply to funds so transferred. Obligation authority shall be transferred to the General Services Administration in the same manner and amount as the funds transferred.

SEC. 1808. TERRITORIAL HIGHWAY PROGRAM AMENDMENTS. [Analysis]

(a) DEFINITIONS.---Section 101(a) of title 23, United States Code, as amended by this Act, is further amended--

(1) by redesignating paragraphs (36) through (38) as paragraphs (37) through (39) respectively, and

(2) by adding the following new paragraph after paragraph (35):

"(36) TERRITORIAL HIGHWAY SYSTEM.---The term "territorial highway system" means the system of arterial highways, collector roads, and necessary inter-island connectors in the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands that have been designated by the Governor and approved by the Secretary as provided in section 215 of this title.".

(b) FUNDING.---Section 104(b)(1)(A) of title 23, United States Code, is amended by striking "to the Virgin Islands, Guam, American Samoa, and the Commonwealth of Northern Mariana Islands" and inserting "for the territorial highway program authorized under section 215 of this title".

"(P) Projects eligible for assistance under the territorial highway program as provided in section 215 of this title.".

(d) TERRITORIAL HIGHWAY PROGRAM.---Chapter 2 of title 23, United States Code, is amended by striking section 215 and inserting the following:

"§ 215. Territorial highway program

"(a) IN GENERAL.--Recognizing the mutual benefits that will accrue to the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and to the United States from the improvement of highways in such territories of the United States, the Secretary is authorized to assist each such territorial government in a program for the construction and improvement of a system of arterial and collector highways, and necessary inter-island connectors designated by the Governor of such territory and approved by the Secretary. Federal financial assistance shall be granted under this section in accordance with section 120(h) of this title.

"(b) TECHNICAL ASSISTANCE.--In order to continue a long-range highway development program, the Secretary is authorized to provide technical assistance to the territorial governments to enable them to, on a continuing basis, engage in highway planning, conduct environmental evaluations, administer right-of-way acquisition and relocation assistance programs, and design, construct, operate, and maintain a system of arterial and collector highways, including necessary inter-island connectors. The technical assistance to be provided and the terms for sharing information among the territories shall be set forth in the agreement required by subsection (d) of this section.

"(c) APPLICABILITY OF CHAPTER 1.--The provisions of chapter 1 of this title (other than provisions related to the apportionment and allocation of funds) shall apply to funds authorized to be appropriated for the territorial highway program, except as determined by the Secretary to be inconsistent with the needs of the territories and the intent of the territorial highway program. The specific sections of chapter 1 that are applicable to each territory and the extent of their applicability shall be identified in the agreement provided for in subsection (d) of this section.

"(d) AGREEMENT.--

"(1) Except as provided in paragraph (3) of this subsection, no part of the appropriations authorized for the territorial highway program shall be available for obligation or expenditure with respect to any territory until the Governor enters into a new agreement with the Secretary, within 12 months after the effective date of this Act, providing that the government of such territory shall--

"(A) implement the territorial highway program in accordance with the appropriate provisions of chapter 1 of this title, as provided for in subsection (c) of this section;

"(B) design and construct a system of arterial and collector highways, including necessary interisland connectors, built in accordance with standards appropriate for each territory and approved by the Secretary;

"(C) provide for the maintenance of facilities constructed or operated under provisions of this section in a condition to adequately serve the needs of present and future traffic; and

"(D) implement standards for traffic operations and uniform traffic control devices that are approved by the Secretary.

"(2) The new agreement required by paragraph (1) of this subsection also shall specify the kind of technical assistance to be provided, include appropriate provisions regarding information sharing among the territories, and delineate the oversight role and responsibilities of the territories and the Secretary. The agreement shall be re-evaluated every two years and modified as appropriate.

"(3) Agreements in effect on the effective date of this Act shall continue in force until replaced, as required by paragraph (1) of this subsection, and appropriations authorized for the program shall be available for obligation or expenditure while the agreements are in place.

"(e) PERMISSIBLE USES OF FUNDS.--

"(1) Funds made available for the territorial highway program may be used only for--

"(A) eligible surface transportation program projects described in section 133(b) of this title;

"(B) cost effective preventive maintenance consistent with the requirements of section 116 of this title;

"(C) ferry boats, terminal facilities, and approaches, as provided for in section 129(b) and (c) of this title;

"(D) engineering and economic surveys and investigations for the planning of future highway programs and the financing thereof;

"(E) studies of the economy, safety, and convenience of highway usage and the desirable regulation and equitable taxation thereof; and

"(F) research and development, necessary in connection with the planning, design, and maintenance of the highway system, and the regulation and taxation of their use.

"(2) None of the appropriations authorized for the territorial highway program shall be obligated or expended for routine maintenance.

"(f) LOCATION OF PROJECTS.--Except as provided in subsection (b)(1) of section 133 of this title, territorial highway projects (other than those described in subsection (b)(3) and (4) of section 133 of this title) may not be undertaken on roads functionally classified as local.".

(h) CONFORMING AMENDMENTS.-The analysis of chapter 2 of title 23 is amended by revising the item relating to section 215 to read as follows:

"215. Territorial highway program.".

SEC. 1809. FUTURE INTERSTATE SYSTEM ROUTES. [Analysis]

(a) WRITTEN AGREEMENT OF STATES.--Section 103(c)(4)(B)(ii) of title 23, United States Code, is amended by striking "12" and inserting "25".

(b) REMOVAL OF DESIGNATION.--Section 103(c)(4)(B)(iii)(I) of such title is amended--

(1) by striking "in the agreement between the Secretary and the State or States"; and

(2) by adding at the end the following: "An agreement entered into under clause (ii) prior to the enactment of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003 shall be deemed to include the 25 year time limitation, notwithstanding an earlier construction completion date in that agreement.".

SEC. 1810. DONATIONS AND CREDITS. [Analysis]

Section 323 of title 23, United States Code, is amended by-

(1) inserting "or a local government from offering to donate funds, materials or services performed by local government employees," after "services" in the first sentence of subsection (c); and

(2) striking subsection (e).

SEC. 1811. DISADVANTAGED BUSINESS ENTERPRISES. [Analysis]

(a) GENERAL RULE.-Except to the extent that the Secretary determines otherwise, not less than 10 percent of the amounts made available for any program under titles I, III, and V of this Act shall be expended with small business concerns owned and controlled by socially and economically disadvantaged individuals.

(b) DEFINITIONS.-In this section, the following definitions apply:

(1) SMALL BUSINESS CONCERN.-The term "small business concern" has the meaning such term has under section 3 of the Small Business Act (15 U.S.C. 632); except that such term shall not include any concern or group of concerns controlled by the same socially and economically disadvantaged individual or individuals which has average annual gross receipts over the preceding 3 fiscal years in excess of $17,420,000, as adjusted by the Secretary for inflation.

(2) SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.-The term "socially and economically disadvantaged individuals" has the meaning such term has under section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and relevant subcontracting regulations promulgated pursuant thereto; except that women shall be presumed to be socially and economically disadvantaged individuals for purposes of this section.

(c) ANNUAL LISTING OF DISADVANTAGED BUSINESS ENTERPRISES.-Each State shall annually survey and compile a list of the small business concerns referred to in subsection (a) and the location of such concerns in the State and notify the Secretary, in writing, of the percentage of such concerns which are controlled by women, by socially and economically disadvantaged individuals (other than women), and by individuals who are women and are otherwise socially and economically disadvantaged individuals.

(d) UNIFORM CERTIFICATION.-The Secretary shall establish minimum uniform criteria for State governments to use in certifying whether a concern qualifies for purposes of this subsection. Such minimum uniform criteria shall include, but not be limited to, on-site visits, personal interviews, licenses, analysis of stock ownership, listing of equipment, analysis of bonding capacity, listing of work completed, resume of principal owners, financial capacity, and type of work preferred.

(e) COMPLIANCE WITH COURT ORDERS.---Nothing in this section limits the eligibility of an entity or person to receive funds made available under titles I, III, and V of this Act, if the entity or person is prevented, in whole or in part, from complying with subsection (a) because a Federal court issues a final order in which the court finds that the requirement of subsection (a), or the program established under subsection (a), is unconstitutional.

SEC. 1812. HIGHWAY BRIDGE PROGRAM. [Analysis]

(a) PROGRAM NAME.-Section 144 of title 23, United States Code, is amended in the section heading by striking "replacement and rehabilitation".

(b) IN GENERAL.-Section 144(a) of such title is amended to read as follows:

"(a) Congress hereby finds and declares it to be in the vital interest of the Nation that a highway bridge program be established to enable the several States to improve the condition of their bridges through replacement, rehabilitation, and systematic preventative maintenance on highway bridges over waterways, other topographical barriers, other highways, or railroads when the States and the Secretary find that a bridge is unsafe because of structural deficiencies, physical deterioration, or functional obsolescence.".

"(d) Whenever any State or States make application to the Secretary for assistance in replacing or rehabilitating a highway bridge which the priority system established under subsections (b) and (c) of this section shows to be eligible, the Secretary may approve Federal participation in replacing such bridge with a comparable facility or in rehabilitating such bridge. Whenever any State makes application to the Secretary for assistance in painting, seismic retrofit, or preventative maintenance of, or installing scour countermeasures or applying calcium magnesium acetate, sodium acetate/formate, or other environmentally acceptable, minimally corrosive anti-icing and de-icing compositions to, the structure of a highway bridge, the Secretary may approve Federal participation in the painting, seismic retrofit, or preventative maintenance of, or installation of scour countermeasures or application of acetate or sodium acetate/formate or such anti-icing or de-icing composition to, such structure. The Secretary shall determine the eligibility of highway bridges for replacement or rehabilitation for each State based upon the unsafe highway bridges in such State, except that a State may carry out a project for preventative maintenance on a bridge, seismic retrofit of a bridge, or installing scour countermeasures to a bridge under this section without regard to whether the bridge is eligible for replacement or rehabilitation under this section.".

(d) APPORTIONMENT FORMULA.-Section 144(e) of such title is amended-

(1) in the third sentence by striking "square footage" and inserting "area";

(2) in the fourth sentence by striking "by the total cost of any highway bridges constructed under subsection (m) in such State, relating to replacement of destroyed bridges and ferryboat services, and," and by striking "1997" and inserting "2003"; and

(3) by striking "the Federal-aid primary system" and inserting "Federal-aid highways".

(e) DISCRETIONARY BRIDGE PROGRAM.-Section 144(g) of such title is amended-

(1) by striking "SET ASIDES." in the heading of (g) and all that follows through paragraph (2)(B);

(2) by striking "(3)" and redesignating paragraph (3) as subsection (g); and

(3) in subsection (g), as redesignated, by--

(A) striking "nor more than 35 percent";

(B) striking "1987" and inserting "2004";

(D) striking "2003" and inserting "2009"; and

(E) striking "paint" and inserting "perform systematic preventative maintenance".

(f) INVENTORIES AND REPORTS.-Section 144(i) of such title is amended--

(1) in paragraph (3), by striking "and";

(2) in paragraph (4), by striking "section." and inserting "section; and"; and

(3) after paragraph (4), by striking "Such reports shall be submitted to such committees biennially at the same time as the report required by section 307(f)(1) of this title is submitted to Congress." and inserting the following:

"(5) submit reports required by this subsection to such committees biennially at the same time as the report required by section 502(g) of this title.".

(g) OFF-SYSTEM BRIDGE PROGRAM.-Section 144(n) of such title is amended by inserting "general engineering" between "all" and "standards".

(h) HISTORIC BRIDGE PROGRAM.-Section 144(o) of such title is amended--

(1) in paragraph (3), by striking "title (including this section)" and inserting "section" and by inserting "200 percent of" after "shall not exceed" and

(2) in paragraph (4), by inserting "200 percent of" after "not to exceed", and by striking "title" at the end of the paragraph and inserting "section".

(i) WATER RESOURCES PROJECTS.-Section 144 of such title is further amended by adding at the end the following--

"(r) Notwithstanding any other provision of law, any bridge funded under this title shall not be considered a "water resources project" as that term is used in the Wild and Scenic Rivers Act (16 U.S.C.1271-1287).".

(j) CONFORMING AMENDMENT.-The analysis for chapter 1 of title 23 is amended in the item relating to section 144 by striking "replacement and rehabilitation".

SEC. 1813. DESIGN-BUILD. [Analysis]

Section 112(b)(3) of title 23, United States Code, is amended by striking subparagraph (C) and inserting the following in its place:

"(C) QUALIFIED PROJECTS.--A qualified project is a project under this chapter for which the Secretary has approved the use of design-build contracting under criteria specified in regulations issued by the Secretary.".

SEC. 1814. INTERNATIONAL FERRIES [Analysis]

Section 129(c)(5) of title 23, United States Code, is amended-

(1) by striking "and" the first place it appears in the first sentence, and inserting a comma;

(2) by adding ", and the islands that comprise a territory of the United States" after "Puerto Rico" in the first sentence; and

(3) by adding "operations between the islands which comprise a territory of the United States," after "Puerto Rico," in the second sentence.

SEC. 1815. ASSUMPTION OF RESPONSIBILITY FOR TRANSPORTATION ENHANCEMENTS, RECREATIONAL TRAILS, AND TRANSPORTATION AND COMMUNITY AND SYSTEM PRESERVATION PROGRAM PROJECTS. [Analysis]

(a) IN GENERAL.-Chapter 1 of title 23, United States Code, as amended by this Act, is further amended by inserting the following new section after section 165:

"§ 166. Assumption of responsibility for transportation enhancements, recreational trails, and transportation, community, and system preservation program projects

"(a) ASSUMPTION OF SECRETARY'S RESPONSIBLITIES UNDER APPLICABLE FEDERAL LAWS.--

"(1) IN GENERAL.--Upon mutual agreement the Secretary may assign, and the State may assume, any of the Secretary's responsibilities (except responsibilities relating to Federally recognized tribes) for environmental reviews, consultation, decision-making or other actions under any Federal law applicable to projects that--

"(A) are funded under section 104(h) or section 167 of this title; or

"(B) meet the definition of a transportation enhancement activity as set forth in section 101(a)(38) of this title.

"(2) LIMITATIONS.--The State shall assume these responsibilities subject to the same procedural and substantive requirements as would be required if such responsibilities were carried out by the Secretary. When a State assumes any responsibility under a Federal law pursuant to this section, it assents to Federal jurisdiction and shall be solely responsible and solely liable for complying with and carrying out that law in lieu of the Secretary.

"(b) AGREEMENTS. --The Secretary and the State shall enter into a memorandum of understanding setting forth the responsibilities to be assigned under this section and the terms and conditions under which such assignments are to be made. In the memorandum of understanding the State shall consent to accept the jurisdiction of the Federal courts for the compliance, discharge, and enforcement of any responsibility of the Secretary it may assume. Such memoranda of understanding shall be established for periods of no more than three years. The Secretary shall review and determine compliance with the memorandum of understanding and the laws assigned by it to the State on an annual basis for the first three years of the agreement and, subsequently, on a periodic basis to be determined by mutual agreement but no longer than every three years.

"(c) TERMINATION.--The Secretary may terminate any assignment of responsibility under this section upon a determination that a State is not adequately meeting the terms and conditions of the memorandum of understanding.

"(d) STATE DEFINED.--For the recreational trails program, "State" means the State agency designated by the Governor of the State in accordance with section 206(c)(1) of this title.

"(e) PRESERVATION OF PUBLIC INTEREST CONSIDERATION.--Nothing contained in this section shall be construed to limit the requirements under any applicable law providing for the consideration and preservation of the public interest, including public participation and community values in transportation decision-making.

"(f ) STATE SUBJECT TO FEDERAL LAWS.--For purposes of assuming the Secretary's responsibilities under this section, the State agency signing the agreement in subsection (c) is deemed to be a Federal agency to the extent the State is carrying out the Secretary's responsibilities under the National Environmental Policy Act, under this title, and under any other Federal law.".

(b) CONFORMING AMENDMENT.-The analysis for chapter 1 of title 23, United States Code, as amended by this Act, is further amended by inserting after the item relating to section 165 the following:

"166. Assumption of responsibility for transportation enhancements, recreational trails, and transportation and community and system preservation program projects.".

SEC. 1816. TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION PROGRAM. [Analysis]

(a) TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION PROGRAM.--Chapter 1 of title 23, United States Code, as amended by this Act, is further amended by inserting the following new section after section 166:

"§ 167. Transportation, community, and system preservation program.

"(a) ESTABLISHMENT AND PURPOSE.-The Secretary shall establish a comprehensive program to investigate and address the relationships between transportation and community and system preservation and identify private sector-based initiatives. Through this program, the Secretary shall facilitate the planning, development, and implementation of strategies by States, metropolitan planning organizations, Federally-recognized tribes, and local governments to integrate transportation, community, and system preservation plans and practices that address one or more of the following:

"(1) improve the efficiency of the transportation system;

"(2) reduce the impacts of transportation on the environment;

"(3) reduce the need for costly future investments in public infrastructure;

"(4) provide efficient access to jobs, services, and centers of trade; and

"(5) examine development patterns and identify strategies to encourage private sector development patterns which achieve the goals identified in paragraphs (1) through (4).

"(b) FUNDING.-Funds authorized to be apportioned under section 104(q) of this title shall be available to carry out the provisions of this section.".

(b) Section 104 of such title is amended by adding after subsection (p), as added by this Act, the following:

"(q) TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION PROGRAM.-

"(1) SET-ASIDE.-On October 1 of each fiscal year for fiscal years 2004 through 2009, the Secretary, after making the deductions authorized by subsections (a) and (f), shall set aside $26,000,000 of the remaining funds authorized to be apportioned under subsection (b)(3) for carrying out the Transportation, Community, and System Preservation Program under section 167 of this chapter.

"(2) APPORTIONMENT.-

"(A) From amounts set aside under paragraph (1), the Secretary shall apportion $500,000 each fiscal year to each State, including the District of Columbia and Puerto Rico, to carryout the provisions of section 167.

"(B) A State shall also make funds apportioned under this subsection available to metropolitan planning organizations, Federally-recognized tribes, and local governments in a manner and amounts to be determined by the State to carryout the provisions of section 167.".

(c) CONFORMING AMENDMENT.- The analysis for chapter 1 of title 23, United States Code, as amended by this Act, is further amended by inserting after the item relating to section 166 the following:

"167. Transportation, community, and system preservation program.".

SEC. 1817. PROGRAM EFFICIENCES--FINANCE. [Analysis]

Section 115 of title 23, United States Code, is amended-

(1) by striking "(a)" and all that follows through subsection (a)(1)(B);

(2) by striking subsection (b);

(3) by redesignating subsection (c) as subsection (d);

(4) by redesignating subsections (a)(2), (a)(2)(A), and (a)(2)(B) as subsections (c), (c)(1), and (c)(2) respectively; and

(5) by inserting after the section heading the following:

"(a) The Secretary may authorize a State to proceed with a project authorized under this title without the aid of Federal funds in accordance with all procedures and all requirements applicable to such a project, except insofar as such procedures and requirements limit the State to implementation of projects with the aid of Federal funds previously apportioned or allocated to it or limit a State to implementation of a project with obligation authority previously allocated to it.

"(b) The Secretary, upon the request of the State and execution of a project agreement, may obligate the Federal share, or a portion of the Federal share, of the cost of a project authorized under this section from any category of funds for which the project is eligible.".

Subtitle I. Technical Corrections to Title 23, U.S.C.

SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT. [Analysis]

(a) LETTING OF CONTRACTS.--Section 112 of title 23, United States Code, is amended--

(1) by striking subsection (f); and

(2) by redesignating subsection (g) as subsection (f).

(b) FRINGE AND CORRIDOR PARKING FACILITIES.--Section 137(a) of title 23, United States Code, is amended in the first sentence by striking "on the Federal-aid urban system" and inserting "on a Federal-aid highway".

(1) PRIORITY PRIMARY ROUTES.--Section 147 of title 23, United States Code, is repealed.

(2) DEVELOPMENT OF A NATIONAL SCENIC AND RECREATIONAL HIGHWAY.--Section 148 of title 23, United States Code, is repealed.

(3) ACCESS HIGHWAYS TO PUBLIC RECREATION AREAS ON CERTAIN LAKES.--Section 155 of title 23, United States Code, is repealed.

(4) CONFORMING AMENDMENTS.--The analysis for chapter 1 of title 23, United States Code, is amended by striking the items relating to sections 147, 148, and 155.

SEC. 1902. CLARIFICATION OF DATE. [Analysis]

Section 109(g) of title 23, United States Code, is amended in the first sentence by striking "the day of enactment of the Federal-Aid Highway Act of 1970" and inserting "December 31, 1970,".

SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING FUNDING SOURCES IN TITLE 23. [Analysis]

(a) IN GENERAL.--Section 154 of the Federal-Aid Highway Act of 1987 (23 U.S.C. 101 note; 101 Stat. 209) is--

(1) transferred to title 23, United States Code;

(2) redesignated as section 321;

(3) moved to appear after section 320 of that title; and

(4) amended by striking the section heading and inserting the following:

"Sec. 321. Signs identifying funding sources".

(b) CONFORMING AMENDMENT.--The analysis for chapter 3 of title 23, United States Code, is amended by inserting after the item relating to section 320 the following:

"321. Signs identifying funding sources.".

SEC. 1904. INCLUSION OF "BUY AMERICA" REQUIREMENTS IN TITLE 23. [Analysis]

(a) IN GENERAL.--Section 165 of the Highway Improvement Act of 1982 (23 U.S.C. 101 note; 96 Stat. 2136) is--

(1) transferred to title 23, United States Code;

(2) redesignated as section 313;

(3) moved to appear after section 312 of that title; and

(4) amended by striking the section heading and inserting the following:

"Sec. 313. Buy America".

(b) CONFORMING AMENDMENTS.--(1) The analysis for chapter 3 of title 23,United States Code, is amended by inserting after the item relating to section 320 the following:

"313. Buy America.".

(2) Section 313 of title 23, United States Code (as added by subsection (a)), is amended--

(A) in subsection (a), by striking "any funds authorized to be appropriated by this Act or by any Act amended by this Act or, after the date of enactment of this Act, any funds authorized to be appropriated to carry out this Act, title 23, United States Code, or the Surface Transportation Assistance Act of 1978" and inserting "any funds authorized to be appropriated to carry out the Surface Transportation Assistance Act of 1982 (96 Stat. 2097) or this title";

(B) in subsection (b), by redesignating paragraph (4) as paragraph (3);

(C) in subsection (d), by striking "this Act, the Surface Transportation Assistance Act of 1978, or title 23, United States Code," and inserting "the Surface Transportation Assistance Act of 1982 (96 Stat. 2097) or this title";

(D) by striking subsection (e); and

(E) by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

SEC. 1905. TECHNICAL AMENDMENTS TO 23 USC 140 (NONDISCRIMINATION). [Analysis]

(a) Section 140(a) of title 23, United States Code, is amended as follows:

(1) At the beginning of the second sentence, strike the word "He" and insert in its place the words "The Secretary".

(2) In the first sentence, strike "subsection (a) of section 105" and insert in its place "section 135".

(3) In the third sentence, strike the phrase "where he considers it necessary" and insert in its place the phrase "where necessary".

(4) The last sentence is amended to read as follows:

"The Secretary shall periodically obtain from the Secretary of Labor and the respective State transportation departments information which will enable the Secretary to judge compliance with the requirements of this section and the Secretary of Labor shall render to the Secretary such assistance and information as the Secretary shall deem necessary to carry out the equal employment opportunity program required hereunder.".

(b) Section 140(b) of title 23, United States Code, is amended as follows:

(1) In the first sentence, strike the words "highway construction" and insert "surface transportation";

(2) In the second sentence, strike the phrase "as he may deem necessary" and insert in its place the phrase "as necessary", and strike the phrase "not to exceed $2,500,000 for the transition quarter ending September 30, 1976, and".

(3) In the fourth sentence, strike the phrase "shall not be not be applicable to contracts" and insert in its place the phrase "shall not be applicable to contracts".

(c) The second sentence of section 140(c) of title 23, United States Code, is amended by striking the phrase "the Secretary shall deduct such sums as he may deem necessary," and inserting in its place the phrase "the Secretary shall deduct such sums as necessary,".

(d) Section 140(d) of title 23, United States Code, is amended by striking from its catchline the words "and contracting".

SEC. 1906. FEDERAL SHARE PAYABLE FOR PROJECTS FOR ELIMINATION OF HAZARDS OF RAILWAY-HIGHWAY CROSSINGS. [Analysis]

Section 120(c) of title 23, United States Code, is amended by amending the first sentence of subsection (c) to read as follows:

"The Federal share payable on account of any project for traffic control signalization; safety rest areas; pavement marking; commuter carpooling and vanpooling; rail-highway crossing closure; projects for elimination of hazards of railway-highway crossings, as identified in section 2604 of Public Law 106-246 (114 Stat. 511, 559); or installation of traffic signs, traffic lights, guardrails, impact attenuators, concrete barrier endtreatments, breakaway utility poles, or priority control systems for emergency vehicles or transit vehicles at signalized intersections may amount to 100 percent of the cost of construction of such projects; except that not more than 10 percent of all sums apportioned for all the Federal-aid systems for any fiscal year in accordance with section 104 of this title shall be used under this subsection.".

The Safe, Accountable, Flexible and EfficientTransportation Equity Act of 2003