S.Amdt. 2290

TEXT OF AMENDMENTS

SA 2281. Mr. DeWINE submitted an amendment intended to be proposed by
him to the bill S. 1072, to authorize funds for Federal-aid highways,
highway safety programs, and transit programs, and for other purposes;
which was ordered to lie on the table; as follows:

On page 756, between lines 3 and 4, insert the following:

SEC. 1409. STUDY ON INCREASED SPEED LIMITS.

(a) Study.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall conduct a study to
examine the effects of increased speed limits enacted by
States after 1995.
(2) Requirements.--The study shall collect empirical data
regarding--
(A) increases or decreases in driving speeds on Interstate
highways since 1995;
(B) correlations between changes in driving speeds and
accident, injury, and fatality rates;
(C) correlations between posted speed limits and observed
driving speeds;
(D) the overall impact on motor vehicle safety resulting
from the repeal of the national maximum speed limit in 1995;
and
(E) such other matters as the Secretary determines to be
appropriate.
(b) Report.--Not later than 1 year after the date of
completion of the study under subsection (a), the Secretary
shall submit to Congress a report that describes the results
of the study.

[[Page S810]]

______

SA 2282. Mr. SCHUMER submitted an amendment intended to be proposed
by him to the bill S. 1072, to authorize funds for Federal-aid
highways, highway safety programs, and transit programs, and for other
purposes; which was ordered to lie on the table; as follows:

Strike section 5507 and insert the following:

SEC. 5507. UNIFORM DOLLAR LIMITATION FOR ALL TYPES OF
TRANSPORTATION FRINGE BENEFITS; CLARIFICATION
OF FEDERAL EMPLOYEE BENEFITS.

(a) Uniform Dollar Limitation For All Types of
Transportation Fringe Benefits.--
(1) In general.--Section 132(f)(2) of the Internal Revenue
Code of 1986 (relating to limitation on exclusion) is
amended--
(A) by striking ``$100'' in subparagraph (A) and inserting
``$190'', and
(B) by striking ``$175'' in subparagraph (B) and inserting
``$190''.
(2) Inflation adjustment conforming amendments.--
Subparagraph (A) of section 132(f)(6) of the Internal Revenue
Code of 1986 (relating to inflation adjustment) is amended--
(A) by striking the last sentence,
(B) by striking ``1999'' and inserting ``2003'', and
(C) by striking ``1998'' and inserting ``2002''.
(3) Effective Date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2003.
(b) Clarification of Federal Employee Benefits.--Section
7905 of title 5, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2)(C) by inserting ``and'' after the
semicolon;
(B) in paragraph (3) by striking ``; and'' and inserting a
period; and
(C) by striking paragraph (4); and
(2) in subsection (b)(2)(A) by amending subparagraph (A) to
read as follows:
``(A) a qualified transportation fringe as defined in
section 132(f)(1) of the Internal Revenue Code of 1986;''.
______

SA 2283. Mr. LAUTENBERG submitted an amendment intended to be
proposed by him to the bill S. 1072, to authorize funds for Federal-aid
highways, highway safety programs, and transit programs, and for other
purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC.  . TERMINATION OF DETERMINATIONS OF GRANDFATHER RIGHTS.

(a) In General.--Section 127 of title 23, United States
Code, is amended by adding at the end the following:
``(h) Grandfather Rights.--
``(1) General rule.--After the 270th day following the date
of enactment of this subsection, a State may not allow, on a
segment of the Interstate System, the operation of a vehicle
or combination (other than a longer combination vehicle)
exceeding an Interstate weight limit unless the operation is
specified on the list published under paragraph (2).
``(2) List of vehicles and combinations.--
``(A) Proceeding.--Not later than 60 days after the date of
enactment of this subsection, the Secretary shall initiate a
proceeding to determine and publish a list of vehicles and
combinations (other than longer combination vehicles),
otherwise exceeding an Interstate weight limit, that the
Department of Transportation, any other Federal agency, or a
State has determined on or before June 1, 2003, could be
lawfully operated within such State--
``(i) on July 1, 1956;
``(ii) in the case of the overall gross weight of any group
of 2 or more consecutive axles, on the date of enactment of
the Federal-Aid Highway Amendments of 1974; or
``(iii) under a special rule applicable to a State under
subsection (a).
``(B) Limitations.--
``(i) Actual and lawful operations required.--An operation
of a vehicle or combination may be included on the list
published under subparagraph (A) only if the vehicle or
combination was in actual and lawful operation in the State
on a regular or periodic basis on or before June 1, 2003.
``(ii) State authority not sufficient.--An operation of a
vehicle or combination may not be included on the list
published under subparagraph (A) on the basis that a State
law or regulation could have authorized the operation of the
vehicle or combination at some prior date by permit or
otherwise.
``(C) Publication of final list.--Not later than 270 days
after the date of enactment of this subsection, the Secretary
shall publish a final list of vehicles and combinations
described in subparagraph (A).
``(3) Limitation on statutory construction.--This
subsection does not prevent a State from reducing the gross
vehicle weight limitation, the single and tandem axle weight
limitations, or the overall maximum gross weight on a group
of 2 or more consecutive axles applicable to portions of the
Interstate System in the State for operations on the list
published under paragraph (2)(C) but in no event may any such
reduction result in a limitation that is less than an
Interstate weight limit.
``(4) Applicability of existing requirements.--All vehicles
and combinations included on the list published under
paragraph (2) shall be subject to all routing-specific,
commodity-specific, and weight-specific designations in force
in a State on June 1, 2003.
``(5) Interstate weight limit defined.--In this subsection,
the term `Interstate weight limit' means the 80,000 pound
gross vehicle weight limitation, the 20,000 pound single axle
weight limitation (including enforcement tolerances), the
34,000 pound tandem axle weight limitation (including
enforcement tolerances), and the overall maximum gross weight
(including enforcement tolerances) on a group of 2 or more
consecutive axles produced by application of the formula in
subsection (a).''.
(b) Conforming Amendment.--The fourth sentence of section
127(a) of title 23, United States Code, is amended by
striking ``the State determines''.

SEC.  . NONDIVISIBLE LOAD PROCEEDING.

Section 127 of title 23, United States Code, is further
amended by adding at the end the following:
``(i) Nondivisible Loads.--
``(1) Proceeding.--Not later than 60 days after the date of
enactment of this subsection, the Secretary shall initiate a
proceeding to define the term `vehicles and loads which
cannot be easily dismantled or divided' as used in subsection
(a) and section 31112 of title 49.
``(2) List of commodities.--
``(A) In general.--The definition developed under paragraph
(1) shall include a list of commodities (or classes or types
of commodities) that do not qualify as nondivisible loads.
``(B) Limitation.--The list of commodities developed under
paragraph (1) shall not be interpreted to be a comprehensive
list of commodities that do not qualify as nondivisible
loads.
``(3) Regulations.--Not later than 270 days after the date
of enactment of this subsection, the Secretary shall issue
final regulations setting forth the determination of the
Secretary made under paragraph (1). The Secretary shall
update the regulations as necessary.
``(4) Applicability.--Regulations issued under paragraph
(2) shall apply to all vehicles and loads operating on the
National Highway System.
``(5) State requirements.--A State may establish any
requirement that is not inconsistent with regulations issued
under paragraph (2).
``(6) Statement of policy.--The purpose of this subsection
is to promote conformity with Interstate weight limits to
preserve publicly funded infrastructure and protect motorists
by limiting maximum vehicle weight on key portions of the
Federal-aid highway system.''.

SEC.  . WAIVERS OF WEIGHT LIMITATIONS DURING PERIODS OF
NATIONAL EMERGENCY.

Section 127 of title 23, United States Code, is further
amended by adding at the end the following:
``(j) Waivers During Periods of National Emergency.--
``(1) In general.--Notwithstanding any other provision of
this section or section 126, the Secretary, in consultation
with the Secretary of Defense, may waive or limit the
application of any vehicle weight limit established under
this section or section 126 with respect to a highway route
during a period of national emergency in order to respond to
the effects of the national emergency.
``(2) Applicability.--Emergency limits established under
paragraph (1) shall preempt any inconsistent State vehicle
weight limits.''.

SEC.  . VEHICLE WEIGHT LIMITATIONS--NATIONAL HIGHWAY SYSTEM.

(a) In General.--Title 23, United States Code, is amended
by inserting after section 125 the following:

``Sec. 126. Vehicle weight limitations--National Highway
System

``(a) Non-Interstate Highways on NHS.--
``(1) In general.--After the 270th day following the date
of enactment of this section, any Interstate weight limit
that applies to vehicles and combinations (other than longer
combination vehicles) operating on the Interstate System in a
State under section 127 shall also apply to vehicles and
combinations (other than longer combination vehicles)
operating on non-Interstate segments of the National Highway
System in such State, unless such segments are subject to
lower State weight limits as provided for in subsection (d).
``(2) Existing highways.--
``(A) In general.--Notwithstanding paragraph (1), in the
case of a non-Interstate segment of the National Highway
System that is open to traffic on June 1, 2003, a State may
allow the operation of any vehicle or combination (other than
a longer combination vehicle) on such segment that the
Secretary determines under subsection (b) could be lawfully
operated on such segment on June 1, 2003.
``(B) Applicability of state laws and regulations.--All
operations described in subparagraph (A) shall continue to be
subject to all State statutes, regulations, limitations and
conditions, including routing-specific, commodity-specific,
and configuration-specific designations and all other
restrictions, in force on June 1, 2003.
``(3) New highways.--Subject to subsection (d)(1), the
gross vehicle weight limitations and axle loading limitations
applicable to all vehicles and combinations (other than
longer combination vehicles) on a non-Interstate segment of
the National Highway System

[[Page S811]]

that is not open to traffic on June 1, 2003, shall be the
Interstate weight limit.
``(b) Listing of Vehicles and Combinations.--
``(1) In general.--The Secretary shall initiate a
proceeding to determine and publish a list of vehicles and
combinations (other than longer combination vehicles),
otherwise exceeding an Interstate weight limit, that could be
lawfully operated on a non-Interstate segment of the National
Highway System on June 1, 2003.
``(2) Requirements.--In publishing a list of vehicles and
combinations under paragraph (1), the Secretary shall
identify--
``(A) the gross vehicle weight limitations and axle loading
limitations in each State applicable, on June 1, 2003, to
vehicles and combinations (other than longer combination
vehicles) on non-Interstate segments of the National Highway
System; and
``(B) operations of vehicles and combinations (other than
longer combination vehicles), exceeding State gross vehicle
weight limitations and axle loading limitations identified
under subparagraph (A), which were in actual and lawful
operation on a regular or periodic basis (including seasonal
operations) on June 1, 2003.
``(3) Limitation.--An operation of a vehicle or combination
may not be included on the list published under paragraph (1)
on the basis that a State law or regulation could have
authorized such operation at some prior date by permit or
otherwise.
``(4) Publication of final list.--Not later than 270 days
after the date of enactment of this section, the Secretary
shall publish a final list of vehicles and combinations
described in paragraph (1).
``(5) Updates.--The Secretary shall update the list
published under paragraph (1) as necessary to reflect new
designations made to the National Highway System.
``(c) Applicability of Limitations.--The limitations
established by subsection (a) shall apply to any new
designation made to the National Highway System and remain in
effect on those non-Interstate highways that cease to be
designated as part of the National Highway System.
``(d) Limitations on Statutory Construction.--
``(1) State enforcement of more restrictive weight
limits.--This section does not prevent a State from
maintaining or imposing a weight limitation that is more
restrictive than the Interstate weight limit on vehicles or
combinations (other than longer combination vehicles)
operating on a non-Interstate segment of the National Highway
System.
``(2) State actions to reduce weight limits.--This section
does not prevent a State from reducing the State's gross
vehicle weight limitation, single or tandem axle weight
limitations, or the overall maximum gross weight on 2 or more
consecutive axles on any non-Interstate segment of the
National Highway System.
``(e) Longer Combination Vehicles.--
``(1) Prohibition.--
``(A) In general.--After the 270th day following the date
of enactment of this section, a longer combination vehicle
may continue to operate on a non-Interstate segment of the
National Highway System only if the operation of the longer
combination vehicle configuration type was authorized by
State officials pursuant to State statute or regulation on
June 1, 2003, and in actual and lawful operation on a regular
or periodic basis (including seasonal operations) on or
before June 1, 2003.
``(B) Applicability of state laws and regulations.--All
operations described in subparagraph (A) shall continue to be
subject to all State statutes, regulations, limitations and
conditions, including routing-specific, commodity-specific,
and configuration-specific designations and all other
restrictions, in force on June 1, 2003.
``(2) Listing of vehicles and combinations.--
``(A) In general.--Not later than 60 days after the date of
enactment of this section, the Secretary shall initiate a
proceeding to determine and publish a list of longer
combination vehicles that could be lawfully operated on non-
Interstate segments of the National Highway System on June 1,
2003.
``(B) Limitation.--A longer combination vehicle may not be
included on the list published under subparagraph (A) on the
basis that a State law or regulation could have authorized
the operation of such vehicle at some prior date by permit or
otherwise.
``(C) Publication of final list.--Not later than 270 days
after the date of enactment of this section, the Secretary
shall publish a final list of longer combination vehicles
described in subparagraph (A).
``(D) Updates.--The Secretary shall update the list
published under subparagraph (A) as necessary to reflect new
designations made to the National Highway System.
``(3) Limitation on statutory construction.--This
subsection does not prevent a State from further restricting
in any manner or prohibiting the operation of a longer
combination vehicle; except that such restrictions or
prohibitions shall be consistent with the requirements of
section 127 of this title and sections 31112 through 31114 of
title 49, United States Code.
``(f) Model Schedule of Fines.--
``(1) In general.--The Secretary, in consultation with the
States, shall establish a model schedule of fines to be
assessed for violations of this section.
``(2) Purpose.--The purpose of the schedule of fines shall
be to ensure that fines are sufficient to deter violations of
the requirements of this section and to permit States to
recover costs associated with damages caused to the National
Highway System by the operation of such vehicles.
``(3) Adoption by states.--The Secretary shall encourage
but not require States to adopt the schedule of fines.
``(g) Definitions.--In this section, the following
definitions apply:
``(1) Interstate weight limit.--The term `Interstate weight
limit' has the meaning given such term in section 127(h).
``(2) Longer combination vehicle.--The term `longer
combination vehicle' has the meaning given such term in
section 127(d).''.
(b) Enforcement of Requirements.--Section 141(a) of title
23, United States Code, is amended--
(1) by striking ``the Federal-aid primary system, the
Federal-aid urban system, and the Federal-aid secondary
system, including the Interstate System'' and inserting ``the
National Highway System, including the Interstate System,'';
and
(2) by striking ``section 127'' and inserting ``sections
126 and 127''.
(c) Conforming Amendment.--The analysis for title 23,
United States Code, is amended by inserting after the item
relating to section 125 the following:

``126. Vehicle weight limitations--National Highway System.''.
______

SA 2284. Mr. LAUTENBERG submitted an amendment intended to be
proposed by him to the bill S. 1072 to authorize funds for Federal-aid
highways, highway safety programs, and transit programs, and for other
purposes; which was ordered to lie on the table; as follows:

On page 748, strike line 3 and insert the following:

SEC. 1403. HIGHER-RISK IMPAIRED DRIVERS.

On page 748, line 4, insert ``(a) License suspension
Definition.--'' before ``Section''.
On page 748, between lines 19 and 20, insert the following:
(b) Other Definitions.--Section 164 of title 23, United
States Code, is further amended--
(1) by striking subsection (a)(5) and inserting the
following:
``(5) Higher-risk impaired driver law.--
``(A) In general.--The term `higher-risk impaired driver
law' means a State law that provides, as a minimum penalty,
that an individual described in subparagraph (B) shall--
``(i) receive a driver's license suspension for not less
than 1 year, including a complete ban on driving for not less
than 90 days and for the remainder of the license suspension
period and prior to the issuance of a probational hardship or
work permit license, be required to install a certified
alcohol ignition interlock device;
``(ii) have the motor vehicle driven at the time of arrest
impounded or immobilized for not less than 90 days and for
the remainder of the license suspension period require the
installation of a certified alcohol ignition interlock device
on the vehicle;
``(iii) be subject to an assessment by a certified
substance abuse official of the State that assesses the
individual's degree of abuse of alcohol and assigned to a
treatment program or impaired driving education program as
determined by the assessment;
``(iv) be imprisoned for not less than 10 days, have an
electronic monitoring device for not less than 100 days, or
be as signed to a DUI/DWI specialty facility for not less
than 30 days;
``(v) be fined a minimum of $1,000, with the proceeds of
such funds to be used by the State or local jurisdiction for
impaired driving related prevention, enforcement, and
prosecution programs, or for the development or maintenance
of a tracking system of offenders driving while impaired;
``(vi) if the arrest resulted from involvement in a crash,
pay court-mandated restitution to the victims of the crash;
``(vii) be placed on probation by the court for a period of
not less than 2 years;
``(viii) if diagnosed with a substance abuse problem,
during the first year of the probation period referred to in
clause (vii), attend a treatment program for a period of 12
consecutive months sponsored by a State certified substance
abuse treatment agency and meet with a case manager at least
once each month; and
``(ix) be required by the court to attend a victim impact
panel, if such a panel is available.
``(B) Individuals to whom penalties apply.--An individual
is described in this subparagraph if that individual--
``(i) is convicted of a second or subsequent offense for
driving while intoxicated or driving under the influence
within a minimum of 10 consecutive years;
``(ii) is convicted of a driving while intoxicated or
driving under the influence with a blood alcohol
concentration of 0.15 percent or greater; or
``(iii) is convicted of a driving-while-suspended offense
if the suspension was the result of a conviction for driving
under the influence.'';
(2) by adding at the end of subsection (a) the following:
``(6) Special dui/dwi facility.--The term `special DUI/DWI
facility' means a facility that houses and treats offenders
arrested for driving while impaired and allows such offenders
to work or attend school.
``(7) Victim impact panel.--The term `victim impact panel'
means a group of impaired driving victims who speak to
offenders about

[[Page S812]]

impaired driving for the purpose of trying to change
attitudes and behaviors in order to deter impaired driving
recidivism.''; and
(3) by striking subsection (b) and inserting the
following:
``(b) Imposition of Higher-Risk Impaired Driver Law
Requirement.--
``(1) In general.--Notwithstanding any provision of section
104 to the contrary, as a condition of receiving the full
amount of funds apportioned to a State under paragraphs (1),
(3), and (4) of section 104(b), a State shall enact and
enforce a higher-risk impaired driver law.
``(2) Enforcement by withholding funds.--On October 1st of
the following fiscal years, the Secretary shall withhold the
applicable percentage of the amount required to be
apportioned for Federal-aid highways to a State on that date
under each of paragraphs (1), (3), and (4) of section 104(b)
if the State has not enacted or is not enforcing a higher-
risk impaired driver law:
``(A) For fiscal year 2008, the applicable percentage is 2
percent.
``(B) For fiscal year 2009, the applicable percentage is 4
percent.
``(C) For fiscal year 2010, the applicable percentage is 6
percent.
``(D) For fiscal years 2011 and thereafter, the applicable
percentage is 8 percent.''.
______

SA 2285. Mr. INHOFE proposed an amendment to the bill S. 1072, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; as follows:
Strike all after the enacting clause.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Safe,
Accountable, Flexible, and Efficient Transportation Equity
Act of 2004''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. General definitions.
Sec. 3. Definitions for title 23.

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Funding

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Minimum guarantee.
Sec. 1105. Revenue aligned budget authority.

Subtitle B--New Programs

Sec. 1201. Infrastructure performance and maintenance program.
Sec. 1202. Future of surface transportation system.
Sec. 1203. Freight transportation gateways; freight intermodal
connections.
Sec. 1204. Construction of ferry boats and ferry terminal facilities.
Sec. 1205. Designation of Daniel Patrick Moynihan Interstate Highway.
Sec. 1206. State-by-State comparison of highway construction costs.

Subtitle C--Finance

Sec. 1301. Federal share.
Sec. 1302. Transfer of highway and transit funds.
Sec. 1303. Transportation Infrastructure Finance and Innovation Act
Amendments.
Sec. 1304. Facilitation of international registration plans and
international fuel tax agreements.
Sec. 1305. National Commission on Future Revenue Sources to Support the
Highway Trust Fund and Finance the Needs of the Surface
Transportation System.
Sec. 1306. State infrastructure banks.
Sec. 1307. Public-private partnerships pilot program.
Sec. 1308. Wagering.

Subtitle D--Safety

Sec. 1401. Highway safety improvement program.
Sec. 1402. Operation lifesaver.
Sec. 1403. License suspension.
Sec. 1404. Bus axle weight exemption.
Sec. 1405. Safe routes to schools program.
Sec. 1406. Purchases of equipment.
Sec. 1407. Workzone safety.
Sec. 1408. Worker injury prevention and free flow of vehicular traffic.
Sec. 1409. Identity authentication standards.

Subtitle E--Environmental Planning and Review

Chapter 1--Transportation Planning

Sec. 1501. Integration of natural resource concerns into State and
metropolitan transportation planning.
Sec. 1502. Consultation between transportation agencies and resource
agencies in transportation planning.
Sec. 1503. Integration of natural resource concerns into transportation
project planning.
Sec. 1504. Public involvement in transportation planning and projects.
Sec. 1505. Project mitigation.

Chapter 2--Transportation Project Development Process

Sec. 1511. Transportation project development process.
Sec. 1512. Assumption of responsibility for categorical exclusions.
Sec. 1513. Surface transportation project delivery pilot program.
Sec. 1514. Regulations.

Chapter 3--Miscellaneous

Sec. 1521. Critical real property acquisition.
Sec. 1522. Planning capacity building initiative.

Subtitle F--Environment

Sec. 1601. Environmental restoration and pollution abatement; control
of invasive plant species and establishment of native
species.
Sec. 1602. National scenic byways program.
Sec. 1603. Recreational trails program.
Sec. 1604. Exemption of Interstate System.
Sec. 1605. Standards.
Sec. 1606. Use of high occupancy vehicle lanes.
Sec. 1607. Bicycle transportation and pedestrian walkways.
Sec. 1608. Idling reduction facilities in Interstate rights-of-way.
Sec. 1609. Toll programs.
Sec. 1610. Federal reference method.
Sec. 1611. Addition of particulate matter areas to CMAQ.
Sec. 1612. Addition to CMAQ-eligible projects.
Sec. 1613. Improved interagency consultation.
Sec. 1614. Evaluation and assessment of CMAQ projects.
Sec. 1615. Synchronized planning and conformity timelines,
requirements, and horizon.
Sec. 1616. Transition to new air quality standards.
Sec. 1617. Reduced barriers to air quality improvements.
Sec. 1618. Air quality monitoring data influenced by exceptional
events.
Sec. 1619. Conforming amendments.
Sec. 1620. Highway stormwater discharge mitigation program.
Sec. 1621. Exemption from certain hazardous materials transportation
requirements.

Subtitle G--Operations

Sec. 1701. Transportation systems management and operations.
Sec. 1702. Real-time system management information program.
Sec. 1703. Contracting for engineering and design services.
Sec. 1704. Off-duty time for drivers of commercial vehicles.
Sec. 1705. Designation of transportation management areas.

Subtitle H--Federal-Aid Stewardship

Sec. 1801. Future Interstate System routes.
Sec. 1802. Stewardship and oversight.
Sec. 1803. Design-build contracting.
Sec. 1804. Program efficiencies--finance.
Sec. 1805. Set-asides for interstate discretionary projects.
Sec. 1806. Federal lands highways program.
Sec. 1807. Highway bridge program.
Sec. 1808. Appalachian development highway system.
Sec. 1809. Multistate corridor program.
Sec. 1810. Border planning, operations, technology, and capacity
program.
Sec. 1811. Puerto Rico highway program.
Sec. 1812. National historic covered bridge preservation.
Sec. 1813. Transportation and community and system preservation
program.
Sec. 1814. Parking pilot programs.
Sec. 1815. Interstate oasis program.
Sec. 1816. Tribal-State road maintenance agreements.
Sec. 1817. National forest system roads.
Sec. 1818. Territorial highway program.
Sec. 1819. Magnetic levitation transportation technology deployment
program.
Sec. 1820. Donations and credits.
Sec. 1821. Disadvantaged business enterprises.
Sec. 1822. Emergency relief.

Subtitle I--Technical Corrections

Sec. 1901. Repeal or update of obsolete text.
Sec. 1902. Clarification of date.
Sec. 1903. Inclusion of requirements for signs identifying funding
sources in title 23.
Sec. 1904. Inclusion of Buy America requirements in title 23.
Sec. 1905. Technical amendments to nondiscrimination section.

TITLE II--TRANSPORTATION RESEARCH

Subtitle A--Funding

Sec. 2001. Authorization of appropriations.
Sec. 2002. Obligation ceiling.
Sec. 2003. Notice.

Subtitle B--Research and Technology

Sec. 2101. Research and technology program.
Sec. 2102. Study of data collection and statistical analysis efforts.
Sec. 2103. Centers for surface transportation excellence.
Sec. 2104. Motorcycle crash causation study grants.

Subtitle C--Intelligent Transportation System Research

Sec. 2201. Intelligent transportation system research and technical
assistance program.

TITLE III--PUBLIC TRANSPORTATION

Sec. 3001. Short title.
Sec. 3002. Amendments to title 49, United States Code; updated
terminology.
Sec. 3003. Policies, findings, and purposes.
Sec. 3004. Definitions.
Sec. 3005. Metropolitan transportation planning.
Sec. 3006. Statewide transportation planning.
Sec. 3007. Transportation management areas.
Sec. 3008. Private enterprise participation.
Sec. 3009. Urbanized area formula grants.

[[Page S813]]

Sec. 3010. Planning programs.
Sec. 3011. Capital investment program.
Sec. 3012. New freedom for elderly persons and persons with
disabilities.
Sec. 3013. Formula grants for other than urbanized areas.
Sec. 3014. Research, development, demonstration, and deployment
projects.
Sec. 3015. Transit cooperative research program.
Sec. 3016. National research programs.
Sec. 3017. National transit institute.
Sec. 3018. Bus testing facility.
Sec. 3019. Bicycle facilities.
Sec. 3020. Suspended light rail technology pilot project.
Sec. 3021. Crime prevention and security.
Sec. 3022. General provisions on assistance.
Sec. 3023. Special provisions for capital projects.
Sec. 3024. Contract requirements.
Sec. 3025. Project management oversight and review.
Sec. 3026. Project review.
Sec. 3027. Investigations of safety and security risk.
Sec. 3028. State safety oversight.
Sec. 3029. Sensitive security information.
Sec. 3030. Terrorist attacks and other acts of violence against public
transportation systems.
Sec. 3031. Controlled substances and alcohol misuse testing.
Sec. 3032. Employee protective arrangements.
Sec. 3033. Administrative procedures.
Sec. 3034. Reports and audits.
Sec. 3035. Apportionments of appropriations for formula grants.
Sec. 3036. Apportionments for fixed guideway modernization.
Sec. 3037. Authorizations.
Sec. 3038. Apportionments based on growing States formula factors.
Sec. 3039. Job access and reverse commute grants.
Sec. 3040. Over-the-road bus accessibility program.
Sec. 3041. Alternative transportation in parks and public lands.
Sec. 3042. Obligation ceiling.
Sec. 3043. Adjustments for the Surface Transportation Extension Act of
2003.
Sec. 3044. Intermodal passenger facilities.

TITLE IV--SURFACE TRANSPORTATION SAFETY

Sec. 4001. Short title.

Subtitle A--Highway Safety

Part 1--Highway Safety Grant Program

Sec. 4101. Short Title; amendment of title 23, United States Code.
Sec. 4102. Authorization of appropriations.
Sec. 4103. Highway safety programs.
Sec. 4104. Highway safety research and outreach programs.
Sec. 4105. National Highway Safety Advisory Committee technical
correction.
Sec. 4106. Occupant protection grants.
Sec. 4107. School bus driver training.
Sec. 4108. Emergency medical services.
Sec. 4109. Repeal of authority for alcohol traffic safety programs.
Sec. 4110. Impaired driving program.
Sec. 4111. State traffic safety information system improvements.
Sec. 4112. NHTSA accountability.
Sec. 4113. Effective dates.

Part 2--Specific Vehicle Safety-Related Rulings

Sec. 4151. Amendment of title 49, United States Code.
Sec. 4152. Load capacity labeling for light trucks.
Sec. 4153. Vehicle crash ejection prevention.
Sec. 4154. Vehicle backover avoidance technology study.
Sec. 4155. Vehicle backover data collection.
Sec. 4156. Aggressivity and incompatibility reduction standard.
Sec. 4157. Improved crashworthiness.
Sec. 4158. 15-passenger vans.
Sec. 4159. Tires.
Sec. 4160. Safety belt use reminders.
Sec. 4161. Missed deadlines reports.
Sec. 4162. Grants for improving child passenger safety programs.
Sec. 4163. Bus crash testing.
Sec. 4164. Authorization of appropriations.

Subtitle II--Motor Carrier Safety and Unified Carrier Registration

Sec. 4201. Short title; amendment of title 49, United States Code.
Sec. 4202. Required completion of overdue reports, studies, and
rulemakings.
Sec. 4203. Contract authority.

Part 1--Motor Carrier Safety

Sec. 4221. Minimum guarantee.
Sec. 4222. Authorization of appropriations.
Sec. 4223. Motor carrier safety grants.
Sec. 4224. CDL working group.
Sec. 4225. CDL learner's permit program.
Sec. 4226. Hobbs Act.
Sec. 4227. Penalty for denial of access to records.
Sec. 4228. Medical program.
Sec. 4229. Operation of commercial motor vehicles by individuals who
use insulin to treat diabetes mellitus.
Sec. 4230. Financial responsibility for private motor carriers.
Sec. 4231. Increased penalties for out-of-service violations and false
records.
Sec. 4232. Elimination of commodity and service exemptions.
Sec. 4233. Intrastate operations of interstate motor carriers.
Sec. 4234. Authority to stop commercial motor vehicles.
Sec. 4235. Revocation of operating authority.
Sec. 4236. Pattern of safety violations by motor carrier management.
Sec. 4237. Motor carrier research and technology program.
Sec. 4238. Review of commercial zone exemption provision.
Sec. 4239. International cooperation.
Sec. 4240. Performance and registration information system management.
Sec. 4241. Commercial vehicle information systems and networks
deployment.
Sec. 4242. Outreach and education.
Sec. 4243. Operation of restricted property-carrying units on national
highway system.
Sec. 4244. Operation of longer combination vehicles on national highway
system.
Sec. 4245. Application of safety standards to certain foreign motor
carriers.
Sec. 4246. Background checks for mexican and canadian drivers hauling
hazardous materials.
Sec. 4247. Exemption of drivers of utility service vehicles.
Sec. 4248. Operation of commercial motor vehicles transporting
agricultural commodities and farm supplies.
Sec. 4249. Safety performance history screening.
Sec. 4250. Compliance review audit.

Part 2--Unified Carrier Registration

Sec. 4261. Short title.
Sec. 4262. Relationship to other laws.
Sec. 4263. Inclusion of motor private and exempt carriers.
Sec. 4264. Unified carrier registration system.
Sec. 4265. Registration of motor carriers by States.
Sec. 4266. Identification of vehicles.
Sec. 4267. Use of ucr agreement revenues as matching funds.
Sec. 4268. Clerical amendments.

Subtitle C--Household Goods Movers

Sec. 4301. Short title; amendment of title 49, United States Code.
Sec. 4302. Findings; sense of Congress.
Sec. 4303. Definitions.
Sec. 4304. Payment of rates.
Sec. 4305. Household goods carrier operations.
Sec. 4306. Liability of carriers under receipts and bills of lading.
Sec. 4307. Dispute settlement for shipments of household goods.
Sec. 4308. Enforcement of regulations related to transportation of
household goods.
Sec. 4309. Working group for development of practices and procedures to
enhance federal-state relations.
Sec. 4310. Consumer handbook on dot website.
Sec. 4311. Information about household goods transportation on
carriers' websites.
Sec. 4312. Consumer complaints.
Sec. 4313. Review of liability of carriers.
Sec. 4314. Civil penalties relating to household goods brokers.
Sec. 4315. Civil and criminal penalty for failing to give up possession
of household goods.
Sec. 4316. Progress report.
Sec. 4317. Additional registration requirements for motor carriers of
household goods.

Subtitle D--Hazardous Materials Transportation Safety and Security

Sec. 4401. Short title.
Sec. 4402. Amendment of title 49, United States Code.

Part 1--General Authorities on Transportation of Hazardous Materials

Sec. 4421. Purpose.
Sec. 4422. Definitions.
Sec. 4423. General regulatory authority.
Sec. 4424. Limitation on issuance of hazmat licenses.
Sec. 4425. Representation and tampering.
Sec. 4426. Transporting certain highly radioactive material.
Sec. 4427. Hazmat employee training requirements and grants.
Sec. 4428. Registration.
Sec. 4429. Shipping papers and disclosure.
Sec. 4430. Rail tank cars.
Sec. 4431. Highway routing of hazardous material.
Sec. 4432. Unsatisfactory safety ratings.
Sec. 4433. Air transportation of ionizing radiation material.
Sec. 4434. Training curriculum for the public sector.
Sec. 4435. Planning and training grants; emergency preparedness fund.
Sec. 4436. Special permits and exclusions.
Sec. 4437. Uniform forms and procedures.
Sec. 4438. International uniformity of standards and requirements.
Sec. 4439. Hazardous materials transportation safety and security.
Sec. 4440. Enforcement.
Sec. 4441. Civil penalties.
Sec. 4442. Criminal penalties.
Sec. 4443. Preemption.
Sec. 4444. Relationship to other laws.
Sec. 4445. Judicial review.
Sec. 4446. Authorization of appropriations.

[[Page S814]]

Sec. 4447. Additional civil and criminal penalties.

Part 2--Other Matters

Sec. 4461. Administrative authority for research and special programs
administration.
Sec. 4462. Mailability of hazardous materials.
Sec. 4463. Criminal matters.
Sec. 4464. Cargo inspection program.
Sec. 4465. Information on hazmat registrations.
Sec. 4466. Report on applying hazardous materials regulations to
persons who reject hazardous materials.

Part 3--Sanitary Food Transportation

Sec. 4481. Short title.
Sec. 4482. Responsibilities of the Secretary of Health and Human
Services.
Sec. 4483. Department of Transportation requirements.
Sec. 4484. Effective date.

Subtitle E--Recreational Boating Safety

Sec. 4501. Short title.

Part 1--Federal Aid in Sport Fish Restoration Act Amendments

Sec. 4521. Amendment of Federal aid in Fish Restoration Act.
Sec. 4522. Authorization of appropriations.
Sec. 4523. Division of annual appropriations.
Sec. 4524. Maintenance of projects.
Sec. 4525. Boating infrastructure.
Sec. 4526. Requirements and restrictions concerning use of amounts for
expenses for administration.
Sec. 4527. Payments of funds to and cooperation with Puerto Rico, the
District of Columbia, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the
Virgin Islands.
Sec. 4528. Multistate conservation grant program.

Part 2--Clean Vessel Act Amendments

Sec. 4541. Grant program.

Part 3--Recreational Boating Safety Program Amendments

Sec. 4561. State matching funds requirement.
Sec. 4562. Availability of allocations.
Sec. 4563. Authorization of appropriations for State recreational
boating safety programs.
Sec. 4564. Maintenance of effort for State recreational boating safety
programs.

Part 4--Miscellaneous

Sec. 4581. Technical correction to Homeland Security Act.

Subtitle F--Rail Transportation

Part 1--Amtrak

Sec. 4601. Authorization of appropriations.
Sec. 4602. Establishment of corporation.

Part 2--Railroad Track Modernization

Sec. 4631. Short title.
Sec. 4632. Capital grants for railroad track.
Sec. 4633. Regulations.
Sec. 4634. Study of grant-funded projects.
Sec. 4635. Authorization of appropriations.

Part 3--Other Rail Transportation-Related Provisions

Sec. 4661. Capital grants for rail line relocation projects.
Sec. 4662. Federal bonds for transportation infrastructure.

TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

Sec. 5000. Short title; amendment of 1986 code; table of contents.

Subtitle A--Trust Fund Reauthorization

Sec. 5001. Extension of Highway Trust Fund and Aquatic Resources Trust
Fund expenditure authority and related taxes.
Sec. 5002. Full accounting of funds received by the Highway Trust Fund.
Sec. 5003. Modification of adjustments of apportionments.

Subtitle B--Volumetric Ethanol Excise Tax Credit

Sec. 5101. Short title.
Sec. 5102. Alcohol and biodiesel excise tax credit and extension of
alcohol fuels income tax credit.
Sec. 5103. Biodiesel income tax credit.

Subtitle C--Fuel Fraud Prevention

Sec. 5200. Short title.

Part I--Aviation Jet Fuel

Sec. 5211. Taxation of aviation-grade kerosene.
Sec. 5212. Transfer of certain amounts from the Airport and Airway
Trust Fund to the Highway Trust Fund to reflect highway
use of jet fuel.

Part II--Dyed Fuel

Sec. 5221. Dye injection equipment.
Sec. 5222. Elimination of administrative review for taxable use of dyed
fuel.
Sec. 5223. Penalty on untaxed chemically altered dyed fuel mixtures.
Sec. 5224. Termination of dyed diesel use by intercity buses.

Part III--Modification of Inspection of Records Provisions

Sec. 5231. Authority to inspect on-site records.
Sec. 5232. Assessable penalty for refusal of entry.

Part IV--Registration and Reporting Requirements

Sec. 5241. Registration of pipeline or vessel operators required for
exemption of bulk transfers to registered terminals or
refineries.
Sec. 5242. Display of registration.
Sec. 5243. Registration of persons within foreign trade zones.
Sec. 5244. Penalties for failure to register and failure to report.
Sec. 5245. Information reporting for persons claiming certain tax
benefits.

Part V--Imports

Sec. 5251. Tax at point of entry where importer not registered.
Sec. 5252. Reconciliation of on-loaded cargo to entered cargo.

Part VI--Miscellaneous Provisions

Sec. 5261. Tax on sale of diesel fuel whether suitable for use or not
in a diesel-powered vehicle or train.
Sec. 5262. Modification of ultimate vendor refund claims with respect
to farming.
Sec. 5263. Taxable fuel refunds for certain ultimate vendors.
Sec. 5264. Two-party exchanges.
Sec. 5265. Modifications of tax on use of certain vehicles.
Sec. 5266. Dedication of revenues from certain penalties to the Highway
Trust Fund.
Sec. 5267. Nonapplication of export exemption to delivery of fuel to
motor vehicles removed from United States.

Part VII--Total Accountability

Sec. 5271. Total accountability.
Sec. 5272. Excise tax reporting.
Sec. 5273. Information reporting.

Subtitle D--Definition of Highway Vehicle

Sec. 5301. Exemption from certain excise taxes for mobile machinery.
Sec. 5302. Modification of definition of off-highway vehicle.

Subtitle E--Excise Tax Reform and Simplification

Part I--Highway Excise Taxes

Sec. 5401. Dedication of gas guzzler tax to Highway Trust Fund.
Sec. 5402. Repeal certain excise taxes on rail diesel fuel and inland
waterway barge fuels.

Part II--Aquatic Excise Taxes

Sec. 5411. Elimination of Aquatic Resources Trust Fund and
transformation of Sport Fish Restoration Account.
Sec. 5412. Exemption of LED devices from sonar devices suitable for
finding fish.
Sec. 5413. Repeal of harbor maintenance tax on exports.
Sec. 5414. Cap on excise tax on certain fishing equipment.
Sec. 5415. Reduction in rate of tax on portable aerated bait
containers.

Part III--Aerial Excise Taxes

Sec. 5421. Clarification of excise tax exemptions for agricultural
aerial applicators and exemption for fixed-wing aircraft
engaged in forestry operations.
Sec. 5422. Modification of rural airport definition.
Sec. 5423. Exemption from ticket taxes for transportation provided by
seaplanes.
Sec. 5424. Certain sightseeing flights exempt from taxes on air
transportation.

Part IV--Alcoholic Beverage Excise Taxes

Sec. 5431. Repeal of special occupational taxes on producers and
marketers of alcoholic beverages.
Sec. 5432. Suspension of limitation on rate of rum excise tax cover
over to Puerto Rico and Virgin Islands.

Part V--Sport Excise Taxes

Sec. 5441. Custom gunsmiths.
Sec. 5442. Modified taxation of imported archery products.
Sec. 5443. Treatment of tribal governments for purposes of Federal
wagering excise and occupational taxes.

Part VI--Other Provisions

Sec. 5451. Income tax credit for distilled spirits wholesalers and for
distilled spirits in control State bailment warehouses
for costs of carrying Federal excise taxes on bottled
distilled spirits.
Sec. 5452. Credit for taxpayers owning commercial power takeoff
vehicles.
Sec. 5453. Credit for auxiliary power units installed on diesel-powered
trucks.

Subtitle F--Miscellaneous Provisions

Sec. 5501. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 5502. National Surface Transportation Infrastructure Financing
Commission.
Sec. 5503. Treasury study of fuel tax compliance and interagency
cooperation.
Sec. 5504. Expansion of Highway Trust Fund expenditure purposes to
include funding for studies of supplemental or
alternative financing for the Highway Trust Fund.
Sec. 5505. Treasury study of highway fuels used by trucks for non-
transportation purposes.
Sec. 5506. Delta regional transportation plan.
Sec. 5507. Treatment of employer-provided transit and van pooling
benefits.

[[Page S815]]

Sec. 5508. Study of incentives for production of biodiesel.

Subtitle G--Revenue Offsets

Part I--Limitation on Expensing Certain Passengers Automobiles

Sec. 5601. Expansion of limitation on depreciation of certain passenger
automobiles.

Part II--Provisions Designed To Curtail Tax Shelters

Sec. 5611. Clarification of economic substance doctrine.
Sec. 5612. Penalty for failing to disclose reportable transaction.
Sec. 5613. Accuracy-related penalty for listed transactions and other
reportable transactions having a significant tax
avoidance purpose.
Sec. 5614. Penalty for understatements attributable to transactions
lacking economic substance, etc.
Sec. 5615. Modifications of substantial understatement penalty for
nonreportable transactions.
Sec. 5616. Tax shelter exception to confidentiality privileges relating
to taxpayer communications.
Sec. 5617. Disclosure of reportable transactions.
Sec. 5618. Modifications to penalty for failure to register tax
shelters.
Sec. 5619. Modification of penalty for failure to maintain lists of
investors.
Sec. 5620. Modification of actions to enjoin certain conduct related to
tax shelters and reportable transactions.
Sec. 5621. Understatement of taxpayer's liability by income tax return
preparer.
Sec. 5622. Penalty on failure to report interests in foreign financial
accounts.
Sec. 5623. Frivolous tax submissions.
Sec. 5624. Regulation of individuals practicing before the Department
of Treasury.
Sec. 5625. Penalty on promoters of tax shelters.
Sec. 5626. Statute of limitations for taxable years for which required
listed transactions not reported.
Sec. 5627. Denial of deduction for interest on underpayments
attributable to nondisclosed reportable and noneconomic
substance transactions.
Sec. 5628. Authorization of appropriations for tax law enforcement.

Part III--Other Corporate Governance Provisions

Sec. 5631. Affirmation of consolidated return regulation authority.
Sec. 5632. Signing of corporate tax returns by chief executive officer.
Sec. 5633. Denial of deduction for certain fines, penalties, and other
amounts.
Sec. 5634. Disallowance of deduction for punitive damages.
Sec. 5635. Increase in criminal monetary penalty limitation for the
underpayment or overpayment of tax due to fraud.
Sec. 5636. Doubling of certain penalties, fines, and interest on
underpayments related to certain offshore financial
arrangements.

Part III--Enron-Related Tax Shelter Provisions

Sec. 5641. Limitation on transfer or importation of built-in losses.
Sec. 5642. No reduction of basis under section 734 in stock held by
partnership in corporate partner.
Sec. 5643. Repeal of special rules for FASITs.
Sec. 5644. Expanded disallowance of deduction for interest on
convertible debt.
Sec. 5645. Expanded authority to disallow tax benefits under section
269.
Sec. 5646. Modification of interaction between subpart F and passive
foreign investment company rules.

Part IV--Provisions To Discourage Expatriation

Sec. 5651. Tax treatment of inverted corporate entities.
Sec. 5652. Imposition of mark-to-market tax on individuals who
expatriate.
Sec. 5653. Excise tax on stock compensation of insiders of inverted
corporations.
Sec. 5654. Reinsurance of United States risks in foreign jurisdictions.

Part V--Provision To Replenish the General Fund

Sec. 5661. Modification to corporate estimated tax requirements.

TITLE VI--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
OFFSETS

Sec. 6101. Sense of the Senate on overall Federal budget.
Sec. 6102. Discretionary spending categories.
Sec. 6103. Level of obligation limitations.

SEC. 2. GENERAL DEFINITIONS.

In this Act:
(1) Department.--The term ``Department'' means the
Department of Transportation.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.

SEC. 3. DEFINITIONS FOR TITLE 23.

Section 101 of title 23, United States Code, is amended by
striking subsection (a) and inserting the following:
``(a) Definitions.--In this title:
``(1) Apportionment.--The term `apportionment' includes an
unexpended apportionment made under a law enacted before the
date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004.
``(2) Carpool project.--
``(A) In general.--The term `carpool project' means any
project to encourage the use of carpools and vanpools.
``(B) Inclusions.--The term `carpool project' includes a
project--
``(i) to provide carpooling opportunities to the elderly
and individuals with disabilities;
``(ii) to develop and implement a system for locating
potential riders and informing the riders of carpool
opportunities;
``(iii) to acquire vehicles for carpool use;
``(iv) to designate highway lanes as preferential carpool
highway lanes;
``(v) to provide carpool-related traffic control devices;
and
``(vi) to designate facilities for use for preferential
parking for carpools.
``(3) Construction.--
``(A) In general.--The term `construction' means the
supervision, inspection, and actual building of, and
incurring of all costs incidental to the construction or
reconstruction of a highway, including bond costs and other
costs relating to the issuance in accordance with section 122
of bonds or other debt financing instruments and costs
incurred by the State in performing Federal-aid project
related audits that directly benefit the Federal-aid highway
program.
``(B) Inclusions.--The term `construction' includes--
``(i) locating, surveying, and mapping (including the
establishment of temporary and permanent geodetic markers in
accordance with specifications of the National Oceanic and
Atmospheric Administration);
``(ii) resurfacing, restoration, and rehabilitation;
``(iii) acquisition of rights-of-way;
``(iv) relocation assistance, acquisition of replacement
housing sites, and acquisition and rehabilitation,
relocation, and construction of replacement housing;
``(v) elimination of hazards of railway grade crossings;
``(vi) elimination of roadside obstacles;
``(vii) improvements that directly facilitate and control
traffic flow, such as--

``(I) grade separation of intersections;
``(II) widening of lanes;
``(III) channelization of traffic;
``(IV) traffic control systems; and
``(V) passenger loading and unloading areas;

``(viii) capital improvements that directly facilitate an
effective vehicle weight enforcement program, such as--

``(I) scales (fixed and portable);
``(II) scale pits;
``(III) scale installation; and
``(IV) scale houses;

``(ix) improvements directly relating to securing
transportation infrastructures for detection, preparedness,
response, and recovery;
``(x) operating costs relating to traffic monitoring,
management, and control;
``(xi) operational improvements; and
``(xii) transportation system management and operations.
``(4) County.--The term `county' includes--
``(A) a corresponding unit of government under any other
name in a State that does not have county organizations; and
``(B) in those States in which the county government does
not have jurisdiction over highways, any local government
unit vested with jurisdiction over local highways.
``(5) Federal-aid highway.--
``(A) In general.--The term `Federal-aid highway' means a
highway eligible for assistance under this chapter.
``(B) Exclusions.--The term `Federal-aid highway' does not
include a highway classified as a local road or rural minor
collector.
``(6) Federal-aid system.--The term `Federal-aid system'
means any of the Federal-aid highway systems described in
section 103.
``(7) Federal lands highway.--The term `Federal lands
highway' means--
``(A) a forest highway;
``(B) a recreation road;
``(C) a public Forest Service road;
``(D) a park road;
``(E) a parkway;
``(F) a refuge road;
``(G) an Indian reservation road; and
``(H) a public lands highway.
``(8) Forest highway.--The term `forest highway' means a
forest road that is--
``(A) under the jurisdiction of, and maintained by, a
public authority; and
``(B) is open to public travel.
``(9) Forest road or trail.--
``(A) In general.--The term `forest road or trail' means a
road or trail wholly or partly within, or adjacent to, and
serving National Forest System land that is necessary for the
protection, administration, use, and development of the
resources of that land.
``(B) Inclusions.--The term `forest road or trail'
includes--
``(i) a classified forest road;
``(ii) an unclassified forest road;
``(iii) a temporary forest road; and
``(iv) a public forest service road.
``(10) Freight transportation gateway.--
``(A) In general.--The term `freight transportation
gateway' means a nationally or regionally significant
transportation port of entry or hub for domestic and global
trade or military mobilization.

[[Page S816]]

``(B) Inclusions.--The term `freight transportation
gateway' includes freight intermodal and Strategic Highway
Network connections that provide access to and from a port or
hub described in subparagraph (A).
``(11) Highway.--The term `highway' includes--
``(A) a road, street, and parkway;
``(B) a right-of-way, bridge, railroad-highway crossing,
tunnel, drainage structure, sign, guardrail, and protective
structure, in connection with a highway; and
``(C) a portion of any interstate or international bridge
or tunnel (including the approaches to the interstate or
international bridge or tunnel, and such transportation
facilities as may be required by the United States Customs
Service and the Bureau of Citizenship and Immigration
Services in connection with the operation of an international
bridge or tunnel), the cost of which is assumed by a State
transportation department.
``(12) Highway safety improvement project.--The term
`highway safety improvement project' means a project that
meets the requirements of section 148.
``(13) Indian reservation road.--
``(A) In general.--The term `Indian reservation road' means
a public road that is located within or provides access to an
area described in subparagraph (B) on which or in which
reside Indians or Alaskan Natives that, as determined by the
Secretary of the Interior, are eligible for services
generally available to Indians under Federal laws
specifically applicable to Indians.
``(B) Areas.--The areas referred to in subparagraph (A)
are--
``(i) an Indian reservation;
``(ii) Indian trust land or restricted Indian land that is
not subject to fee title alienation without the approval of
the Federal Government; and
``(iii) an Indian or Alaska Native village, group, or
community.
``(14) Interstate system.--The term `Interstate System'
means the Dwight D. Eisenhower National System of Interstate
and Defense Highways described in section 103(c).
``(15) Maintenance.--
``(A) In general.--The term `maintenance' means the
preservation of a highway.
``(B) Inclusions.--The term `maintenance' includes the
preservation of--
``(i) the surface, shoulders, roadsides, and structures of
a highway; and
``(ii) such traffic-control devices as are necessary for
safe, secure, and efficient use of a highway.
``(16) Maintenance area.--The term `maintenance area' means
an area that was designated as a nonattainment area, but was
later redesignated by the Administrator of the Environmental
Protection Agency as an attainment area, under section 107(d)
of the Clean Air Act (42 U.S.C. 7407(d)).
``(17) National forest system road or trail.--The term
`National Forest System road or trail' means a forest road or
trail that is under the jurisdiction of the Forest Service.
``(18) National highway system.--The term `National Highway
System' means the Federal-aid highway system described in
section 103(b).
``(19) Operating costs for traffic monitoring, management,
and control.--The term `operating costs for traffic
monitoring, management, and control' includes--
``(A) labor costs;
``(B) administrative costs;
``(C) costs of utilities and rent;
``(D) costs incurred by transportation agencies for
technology to monitor critical transportation infrastructure
for security purposes; and
``(E) other costs associated with transportation systems
management and operations and the continuous operation of
traffic control, such as--
``(i) an integrated traffic control system;
``(ii) an incident management program; and
``(iii) a traffic control center.
``(20) Operational improvement.--
``(A) In general.--The term `operational improvement'
means--
``(i) a capital improvement for installation or
implementation of--

``(I) a transportation system management and operations
program;
``(II) traffic and transportation security surveillance and
control equipment;
``(III) a computerized signal system;
``(IV) a motorist information system;
``(V) an integrated traffic control system;
``(VI) an incident management program;
``(VII) equipment and programs for transportation response
to manmade and natural disasters; or
``(VIII) a transportation demand management facility,
strategy, or program; and

``(ii) such other capital improvements to a public road as
the Secretary may designate by regulation.
``(B) Exclusions.--The term `operational improvement' does
not include--
``(i) a resurfacing, restorative, or rehabilitative
improvement;
``(ii) construction of an additional lane, interchange, or
grade separation; or
``(iii) construction of a new facility on a new location.
``(21) Park road.--The term `park road' means a public road
(including a bridge built primarily for pedestrian use, but
with capacity for use by emergency vehicles) that is located
within, or provides access to, an area in the National Park
System with title and maintenance responsibilities vested in
the United States.
``(22) Parkway.--The term `parkway' means a parkway
authorized by an Act of Congress on land to which title is
vested in the United States.
``(23) Project.--The term `project' means--
``(A)(i) an undertaking to construct a particular portion
of a highway; or
``(ii) if the context so implies, a particular portion of a
highway so constructed; and
``(B) any other undertaking eligible for assistance under
this title.
``(24) Project agreement.--The term `project agreement'
means the formal instrument to be executed by the Secretary
and recipient of funds under this title.
``(25) Public authority.--The term `public authority' means
a Federal, State, county, town, or township, Indian tribe,
municipal or other local government or instrumentality with
authority to finance, build, operate, or maintain toll or
toll-free facilities.
``(26) Public forest service road.--The term `public Forest
Service road' means a classified forest road--
``(A) that is open to public travel;
``(B) for which title and maintenance responsibility is
vested in the Federal Government; and
``(C) that has been designated a public road by the Forest
Service.
``(27) Public lands development roads and trails.--The term
`public lands development roads and trails' means roads and
trails that the Secretary of the Interior determines are of
primary importance for the development, protection,
administration, and use of public lands and resources under
the control of the Secretary of the Interior.
``(28) Public lands highway.--The term `public lands
highway' means--
``(A) a forest road that is--
``(i) under the jurisdiction of, and maintained by, a
public authority; and
``(ii) open to public travel; and
``(B) any highway through unappropriated or unreserved
public land, nontaxable Indian land, or any other Federal
reservation (including a main highway through such land or
reservation that is on the Federal-aid system) that is--
``(i) under the jurisdiction of, and maintained by, a
public authority; and
``(ii) open to public travel.
``(29) Public road.--The term `public road' means any road
or street that is--
``(A) under the jurisdiction of, and maintained by, a
public authority; and
``(B) open to public travel.
``(30) Recreational road.--The term `recreational road'
means a public road--
``(A) that provides access to a museum, lake, reservoir,
visitors center, gateway to a major wilderness area, public
use area, or recreational or historic site; and
``(B) for which title is vested in the Federal Government.
``(31) Refuge road.--The term `refuge road' means a public
road--
``(A) that provides access to or within a unit of the
National Wildlife Refuge System or a national fish hatchery;
and
``(B) for which title and maintenance responsibility is
vested in the United States Government.
``(32) Rural area.--The term `rural area' means an area of
a State that is not included in an urban area.
``(33) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``(34) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia; and
``(C) the Commonwealth of Puerto Rico.
``(35) State funds.--The term `State funds' includes funds
that are--
``(A) raised under the authority of the State (or any
political or other subdivision of a State); and
``(B) made available for expenditure under the direct
control of the State transportation department.
``(36) State transportation department.--The term `State
transportation department' means the department, agency,
commission, board, or official of any State charged by the
laws of the State with the responsibility for highway
construction.
``(37) Territorial highway system.--The term `territorial
highway system' means the system of arterial highways,
collector roads, and necessary interisland connectors in
American Samoa, the Commonwealth of the Northern Mariana
Islands, Guam, and the United States Virgin Islands that have
been designated by the appropriate Governor or chief
executive officer of a territory, and approved by the
Secretary, in accordance with section 215.
``(38) Transportation enhancement activity.--The term
`transportation enhancement activity' means, with respect to
any project or the area to be served by the project, any of
the following activities as the activities relate to surface
transportation:
``(A) Provision of facilities for pedestrians and bicycles.
``(B) Provision of safety and educational activities for
pedestrians and bicyclists.
``(C) Acquisition of scenic easements and scenic or
historic sites (including historic battlefields).
``(D) Scenic or historic highway programs (including the
provision of tourist and welcome center facilities).
``(E) Landscaping and other scenic beautification.
``(F) Historic preservation.
``(G) Rehabilitation and operation of historic
transportation buildings, structures, or facilities
(including historic railroad facilities and canals).

[[Page S817]]

``(H) Preservation of abandoned railway corridors
(including the conversion and use of the corridors for
pedestrian or bicycle trails).
``(I) Control and removal of outdoor advertising.
``(J) Archaeological planning and research.
``(K) Environmental mitigation--
``(i) to address water pollution due to highway runoff; or
``(ii) reduce vehicle-caused wildlife mortality while
maintaining habitat connectivity.
``(L) Establishment of transportation museums.
``(39) Transportation systems management and operations.--
``(A) In general.--The term `transportation systems
management and operations' means an integrated program to
optimize the performance of existing infrastructure through
the implementation of multimodal and intermodal, cross-
jurisdictional systems, services, and projects designed to
preserve capacity and improve security, safety, and
reliability of the transportation system.
``(B) Inclusions.--The term `transportation systems
management and operations' includes--
``(i) regional operations collaboration and coordination
activities between transportation and public safety agencies;
and
``(ii) improvements to the transportation system 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.
``(40) Urban area.--The term `urban area' means--
``(A) an urbanized area (or, in the case of an urbanized
area encompassing more than 1 State, the portion of the
urbanized area in each State); and
``(B) an urban place designated by the Bureau of the Census
that--
``(i) has a population of 5,000 or more;
``(ii) is not located within any urbanized area; and
``(iii) is located within boundaries that--

``(I) are fixed cooperatively by responsible State and
local officials, subject to approval by the Secretary; and
``(II) encompass, at a minimum, the entire urban place
designated by the Bureau of the Census (except in the case of
cities in the State of Maine and in the State of New
Hampshire).

``(41) Urbanized area.--The term `urbanized area' means an
area that--
``(A) has a population of 50,000 or more;
``(B) is designated by the Bureau of the Census; and
``(C) is located within boundaries that--
``(i) are fixed cooperatively by responsible State and
local officials, subject to approval by the Secretary; and
``(ii) encompass, at a minimum, the entire urbanized area
within a State as designated by the Bureau of the Census.''.

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Funding

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

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--
(A) $5,442,371,792 for fiscal year 2004;
(B) $6,425,168,342 for fiscal year 2005;
(C) $6,683,176,289 for fiscal year 2006;
(D) $6,702,365,186 for fiscal year 2007;
(E) $7,036,621,314 for fiscal year 2008; and
(F) $7,139,130,081 for fiscal year 2009.
(2) National highway system.--For the National Highway
System under section 103 of that title--
(A) $6,593,922,257 for fiscal year 2004;
(B) $7,815,590,130 for fiscal year 2005;
(C) $8,125,241,450 for fiscal year 2006;
(D) $8,148,531,791 for fiscal year 2007;
(E) $8,554,231,977 for fiscal year 2008; and
(F) $8,678,591,297 for fiscal year 2009.
(3) Bridge program.--For the bridge program under section
144 of that title--
(A) $4,650,754,076 for fiscal year 2004;
(B) $5,507,287,150 for fiscal year 2005;
(C) $5,713,860,644 for fiscal year 2006;
(D) $5,730,266,418 for fiscal year 2007;
(E) $6,016,042,650 for fiscal year 2008; and
(F) $6,103,714,622 for fiscal year 2009.
(4) Surface transportation program.--For the surface
transportation program under section 133 of that title--
(A) $6,877,178,900 for fiscal year 2004;
(B) $8,107,950,527 for fiscal year 2005;
(C) $8,417,741,127 for fiscal year 2006;
(D) $8,441,910,349 for fiscal year 2007;
(E) $8,862,919,976 for fiscal year 2008; and
(F) $8,992,134,975 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 that title--
(A) $1,880,092,073 for fiscal year 2004;
(B) $2,192,716,180 for fiscal year 2005;
(C) $2,270,239,273 for fiscal year 2006;
(D) $2,276,757,639 for fiscal year 2007;
(E) $2,390,302,660 for fiscal year 2008; and
(F) $2,425,236,569 for fiscal year 2009.
(6) Highway safety improvement program.--For the highway
safety improvement program under section 148 of that title--
(A) $1,187,426,572 for fiscal year 2004;
(B) $1,325,828,388 for fiscal year 2005;
(C) $1,377,448,548 for fiscal year 2006;
(D) $1,381,403,511 for fiscal year 2007;
(E) $1,450,295,996 for fiscal year 2008; and
(F) $1,471,607,029 for fiscal year 2009.
(7) Appalachian development highway system program.--For
the Appalachian development highway system program under
section 170 of that title, $590,000,000 for each of fiscal
years 2004 through 2009.
(8) Recreational trails program.--For the recreational
trails program under section 206 of that 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 that title--
(i) $300,000,000 for fiscal year 2004;
(ii) $325,000,000 for fiscal year 2005;
(iii) $350,000,000 for fiscal year 2006;
(iv) $375,000,000 for fiscal year 2007;
(v) $400,000,000 for fiscal year 2008; and
(vi) $425,000,000 for fiscal year 2009.
(B) Recreation roads.--For recreation roads under section
204 of that 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 that title--
(i) $300,000,000 for fiscal year 2004;
(ii) $310,000,000 for fiscal year 2005; and
(iii) $320,000,000 for each of fiscal years 2006 through
2009.
(D) Refuge roads.--For refuge roads under section 204 of
that title, $30,000,000 for each of fiscal years 2004 through
2009.
(E) Public lands highways.--For Federal lands highways
under section 204 of that title, $300,000,000 for each of
fiscal years 2004 through 2009.
(F) Safety.--For safety under section 204 of that title,
$40,000,000 for each of fiscal years 2004 through 2009.
(10) Multistate corridor program.--For the multistate
corridor program under section 171 of that title--
(A) $112,500,000 for fiscal year 2004;
(B) $135,000,000 for fiscal year 2005;
(C) $157,500,000 for fiscal year 2006;
(D) $180,000,000 for fiscal year 2007;
(E) $202,500,000 for fiscal year 2008; and
(F) $225,000,000 for fiscal year 2009.
(11) Border planning, operations, and technology program.--
For the border planning, operations, and technology program
under section 172 of that title--
(A) $112,500,000 for fiscal year 2004;
(B) $135,000,000 for fiscal year 2005;
(C) $157,500,000 for fiscal year 2006;
(D) $180,000,000 for fiscal year 2007;
(E) $202,500,000 for fiscal year 2008; and
(F) $225,000,000 for fiscal year 2009.
(12) National scenic byways program.--For the national
scenic byways program under section 162 of that title--
(A) $34,000,000 for fiscal year 2004;
(B) $35,000,000 for fiscal year 2005;
(C) $36,000,000 for fiscal year 2006;
(D) $37,000,000 for fiscal year 2007; and
(E) $39,000,000 for each of fiscal years 2008 and 2009.
(13) Infrastructure performance and maintenance program.--
For carrying out the infrastructure performance and
maintenance program under section 139 of that title
$2,000,000,000 for fiscal year 2004.
(14) Construction of ferry boats and ferry terminal
facilities.--For construction of ferry boats and ferry
terminal facilities under section 147 of that title,
$38,000,000 for each of fiscal years 2004 through 2009.
(15) Commonwealth of puerto rico highway program.--For the
Commonwealth of Puerto Rico highway program under section 173
of that title--
(A) $140,000,000 for fiscal year 2004;
(B) $145,000,000 for fiscal year 2005;
(C) $149,000,000 for fiscal year 2006;
(D) $154,000,000 for fiscal year 2007;
(E) $160,000,000 for fiscal year 2008; and
(F) $163,000,000 for fiscal year 2009.
(16) Public-private partnerships pilot program.--For the
public-private partnerships pilot program under section
109(c)(3) of that title, $10,000,000 for each of fiscal years
2004 through 2009.

SEC. 1102. OBLIGATION CEILING.

(a) General Limitation.--Subject to subsections (g) and
(h), and notwithstanding any other provision of law, the
obligations for Federal-aid highway and highway safety
construction programs shall not exceed--
(1) $33,643,326,300 for fiscal year 2004;
(2) $37,900,000,000 for fiscal year 2005;
(3) $39,100,000,000 for each of fiscal years 2006 and 2007;
(4) $39,400,000,000 for fiscal year 2008; and
(5) $44,400,000,000 for fiscal year 2009.
(b) Exceptions.--The limitations under subsection (a) shall
not apply to obligations under or for--
(1) section 125 of title 23, United States Code;
(2) section 147 of the Surface Transportation Assistance
Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
(3) section 9 of the Federal-Aid Highway Act of 1981
(Public Law 97-134; 95 Stat. 1701);
(4) subsections (b) and (j) of section 131 of the Surface
Transportation Assistance Act of 1982 (Public Law 97-424; 96
Stat. 2119);
(5) subsections (b) and (c) of section 149 of the Surface
Transportation and Uniform Relocation Assistance Act of 1987
(Public Law 100-17; 101 Stat. 198);
(6) sections 1103 through 1108 of the Intermodal Surface
Transportation Efficiency Act of 1991 (Public Law 102-240;
105 Stat. 2027);

[[Page S818]]

(7) section 157 of title 23, United States Code (as in
effect on June 8, 1998);
(8) section 105 of title 23, United States Code (as in
effect for fiscal years 1998 through 2003, but only in an
amount equal to $639,000,000 for each of those fiscal years);
(9) Federal-aid highway programs for which obligation
authority was made available under the Transportation Equity
Act for the 21st Century (Public Law 105-178; 112 Stat. 107)
or subsequent public laws for multiple years or to remain
available until used, but only to the extent that the
obligation authority has not lapsed or been used; and
(10) section 105 of title 23, United States Code (but, for
each of fiscal years 2004 through 2009, only in an amount
equal to $439,000,000 per fiscal year).
(c) Distribution of Obligation Authority.--For each of
fiscal years 2004 through 2009, the Secretary--
(1) shall not distribute obligation authority provided by
subsection (a) for the fiscal year for--
(A) amounts authorized for administrative expenses and
programs by section 104(a) of title 23, United States Code;
(B) programs funded from the administrative takedown
authorized by section 104(a)(1) of title 23, United States
Code; and
(C) amounts authorized for the highway use tax evasion
program and the Bureau of Transportation Statistics;
(2) shall not distribute an amount of obligation authority
provided by subsection (a) that is equal to the unobligated
balance of amounts made available from the Highway Trust Fund
(other than the Mass Transit Account) for Federal-aid highway
and highway safety programs for previous fiscal years the
funds for which are allocated by the Secretary;
(3) shall determine the ratio that--
(A) the obligation authority provided by subsection (a) for
the fiscal year, less the aggregate of amounts not
distributed under paragraphs (1) and (2); bears to
(B) the total of the sums authorized to be appropriated for
the Federal-aid highway and highway safety construction
programs (other than sums authorized to be appropriated for
provisions of law described in paragraphs (1) through (9) of
subsection (b) and sums authorized to be appropriated for
section 105 of title 23, United States Code, equal to the
amount referred to in subsection (b)(10) for the fiscal
year), less the aggregate of the amounts not distributed
under paragraphs (1) and (2);
(4) shall distribute the obligation authority provided by
subsection (a) less the aggregate amounts not distributed
under paragraphs (1) and (2), for section 14501 of title 40,
United States Code, so that the amount of obligation
authority available for that section is equal to the amount
determined by multiplying--
(A) the ratio determined under paragraph (3); by
(B) the sums authorized to be appropriated for that section
for the fiscal year;
(5) shall distribute among the States the obligation
authority provided by subsection (a), less the aggregate
amounts not distributed under paragraphs (1) and (2), for
each of the programs that are allocated by the Secretary
under this Act and title 23, United States Code (other than
to programs to which paragraph (1) applies), by multiplying--
(A) the ratio determined under paragraph (3); by
(B) the amounts authorized to be appropriated for each such
program for the fiscal year; and
(6) shall distribute the obligation authority provided by
subsection (a), less the aggregate amounts not distributed
under paragraphs (1) and (2) and the amounts distributed
under paragraphs (4) and (5), for Federal-aid highway and
highway safety construction programs (other than the amounts
apportioned for the equity bonus program, but only to the
extent that the amounts apportioned for the equity bonus
program for the fiscal year are greater than $439,000,000,
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) amounts authorized to be appropriated for the programs
that are apportioned to each State for the fiscal year; bear
to
(B) the total of the amounts authorized to be appropriated
for the programs that are apportioned to all States for the
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--
(1) revise a distribution of the obligation authority made
available under subsection (c) if an amount distributed
cannot be obligated during that fiscal year; and
(2) 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.--
(1) In general.--Except as provided in paragraph (2),
obligation limitations imposed by subsection (a) shall apply
to contract authority for transportation research programs
carried out under--
(A) chapter 5 of title 23, United States Code; and
(B) title II of this Act.
(2) Exception.--Obligation authority made available under
paragraph (1) shall--
(A) remain available for a period of 3 fiscal years; and
(B) 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) Redistribution of Certain Authorized Funds.--
(1) In general.--Not later than 30 days after the date of
distribution of obligation authority under subsection (c) for
each of fiscal years 2004 through 2009, the Secretary shall
distribute to the States any funds that--
(A) are authorized to be appropriated for the fiscal year
for Federal-aid highway programs; and
(B) the Secretary determines will not be allocated to the
States, and will not be available for obligation, in the
fiscal year due to the imposition of any obligation
limitation for the fiscal year.
(2) Ratio.--Funds shall be distributed under paragraph (1)
in the same ratio as the distribution of obligation authority
under subsection (c)(6).
(3) Availability.--Funds distributed under paragraph (1)
shall be available for any purpose described in section
133(b) of title 23, United States Code.
(g) Special Rule.--Obligation authority distributed for a
fiscal year under subsection (c)(4) for the provision
specified in subsection (c)(4) shall--
(1) remain available until used for obligation of funds for
that provision; and
(2) 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.
(h) Adjustment in Obligation Limit.--
(1) In general.--A limitation on obligations imposed by
subsection (a) for a fiscal year shall be adjusted by an
amount equal to the amount determined in accordance with
section 251(b)(1)(B) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) for the
fiscal year.
(2) Distribution.--An adjustment under paragraph (1) shall
be distributed in accordance with this section.
(i) 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) $450,000,000 for fiscal year 2004;
(2) $465,000,000 for fiscal year 2005;
(3) $480,000,000 for fiscal year 2006;
(4) $495,000,000 for fiscal year 2007;
(5) $510,000,000 for fiscal year 2008; and
(6) $525,000,000 for fiscal year 2009.
(j) National Highway System Component.--Section 104(b)(1)
of title 23, United States Code, is amended by striking
``$36,400,000'' and insert ``$50,000,000''.

SEC. 1103. APPORTIONMENTS.

(a) Administrative Expenses.--
(1) In general.--Section 104 of title 23, United States
Code, is amended by striking subsection (a) and inserting the
following:
``(a) Administrative Expenses.--
``(1) In general.--There are authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to be made available to the Secretary of
Transportation for administrative expenses of the Federal
Highway Administration--
``(A) $450,000,000 for fiscal year 2004;
``(B) $465,000,000 for fiscal year 2005;
``(C) $480,000,000 for fiscal year 2006;
``(D) $495,000,000 for fiscal year 2007;
``(E) $510,000,000 for fiscal year 2008; and
``(F) $525,000,000 for fiscal year 2009.
``(2) Purposes.--The funds authorized by this subsection
shall be used--
``(A) to administer the provisions of law to be financed
from appropriations for the Federal-aid highway program and
programs authorized under chapter 2; and
``(B) to make transfers of such sums as the Secretary
determines to be appropriate to the Appalachian Regional
Commission for administrative activities associated with the
Appalachian development highway system.
``(3) Availability.--The funds made available under
paragraph (1) shall remain available until expended.''.
(2) Conforming amendments.--Section 104 of title 23, United
States Code, is amended--
(A) in the matter preceding paragraph (1) of subsection
(b), by striking ``the deduction authorized by subsection (a)
and'';
(B) in the first sentence of subsection (e)(1), by striking
``, and also'' and all that follows through ``this section'';
and
(C) in subsection (i), by striking ``deducted'' and
inserting ``made available''.
(b) Metropolitan Planning.--Section 104(f) of title 23,
United States Code, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Set-aside.--On October 1 of each fiscal year, the
Secretary shall set aside 1.5 percent of the funds authorized
to be appropriated for the Interstate maintenance, national
highway system, surface transportation, congestion mitigation
and air quality improvement, highway safety improvement, and
highway bridge programs authorized under this title to carry
out the requirements of section 134.'';
(2) in paragraph (2), by striking ``per centum'' and
inserting ``percent'';
(3) in paragraph (3)--
(A) by striking ``The funds'' and inserting the following:

[[Page S819]]

``(A) In general.--The funds''; and
(B) by striking ``These funds'' and all that follows and
inserting the following:
``(B) Unused funds.--Any funds that are not used to carry
out section 134 may be made available by a metropolitan
planning organization to the State to fund activities under
section 135.''; and
(4) by adding at the end the following:
``(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
the match.''.
(c) Alaska Highway.--Section 104(b)(1)(A) of title 23,
United States Code, is amended by striking ``1998 through
2002'' and inserting ``2004 through 2009''.

SEC. 1104. EQUITY BONUS PROGRAM.

(a) In General.--Section 105 of title 23, United States
Code, is amended to read as follows:

``Sec. 105. Equity bonus program

``(a) Program.--
``(1) In general.--Subject to subsections (c) and (d), for
each of fiscal years 2004 through 2009, the Secretary shall
allocate among the States amounts sufficient to ensure that
no State receives a percentage of the total apportionments
for the fiscal year for the programs specified in paragraph
(2) that is less than the percentage calculated under
subsection (b).
``(2) Specific programs.--The programs referred to in
subsection (a) are--
``(A) the Interstate maintenance program under section 119;
``(B) the national highway system program under section
103;
``(C) the bridge program under section 144;
``(D) the surface transportation program under section 133;
``(E) the highway safety improvement program under section
148;
``(F) the congestion mitigation and air quality improvement
program under section 149;
``(G) metropolitan planning programs under section 104(f)
(other than planning programs funded by amounts provided
under the equity bonus program under this section);
``(H) the infrastructure performance and maintenance
program under section 139;
``(I) the equity bonus program under this section;
``(J) the Appalachian development highway system program
under subtitle IV of title 40;
``(K) the recreational trails program under section 206;
``(L) the safe routes to schools program under section 150;
and
``(M) the rail-highway grade crossing program under section
130.
``(b) State Percentage.--
``(1) In general.--The percentage referred to in subsection
(a) for each State shall be--
``(A) 95 percent of the quotient obtained by dividing--
``(i) the estimated tax payments attributable to highway
users in the State paid into the Highway Trust Fund (other
than the Mass Transit Account) in the most recent fiscal year
for which data are available; by
``(ii) the estimated tax payments attributable to highway
users in all States paid into the Highway Trust Fund (other
than the Mass Transit Account) for the fiscal year; or
``(B) for a State with a total population density of less
than 20 persons per square mile, as reported in the decennial
census conducted by the Federal Government in 2000, a total
population of less than 1,000,000, as reported in that
decennial census, or a median household income of less than
$35,000, as reported in that decennial census, the greater
of--
``(i) the percentage under paragraph (1); or
``(ii) the average percentage of the State's share of total
apportionments for the period of fiscal years 1998 through
2003 for the programs specified in paragraph (2).
``(2) Specific programs.--The programs referred to in
paragraph (1)(B)(ii) are (as in effect on the day before the
date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004)--
``(A) the Interstate maintenance program under section 119;
``(B) the national highway system program under section
103;
``(C) the bridge program under section 144;
``(D) the surface transportation program under section 133;
``(E) the recreational trails program under section 206;
``(F) the high priority projects program under section 117;
``(G) the minimum guarantee provided under this section;
``(H) revenue aligned budget authority amounts provided
under section 110;
``(I) the congestion mitigation and air quality improvement
program under section 149;
``(J) the Appalachian development highway system program
under subtitle IV of title 40; and
``(K) metropolitan planning programs under section 104(f).
``(c) Special Rules.--
``(1) Minimum combined allocation.--For each fiscal year,
before making the allocations under subsection (a)(1), the
Secretary shall allocate among the States amounts sufficient
to ensure that no State receives a combined total of amounts
allocated under subsection (a)(1), apportionments for the
programs specified in subsection (a)(2), and amounts
allocated under this subsection, that is less than 110
percent of the average for fiscal years 1998 through 2003 of
the annual apportionments for the State for all programs
specified in subsection (b)(2).
``(2) No negative adjustment.--Notwithstanding subsection
(d), no negative adjustment shall be made under subsection
(a)(1) to the apportionment of any State.
``(3) Minimum share of tax payments.--Notwithstanding
subsection (d), for each fiscal year, the Secretary shall
allocate among the States amounts sufficient to ensure that
no State receives a percentage of apportionments for the
fiscal year for the programs specified in subsection (a)(2)
that is less than 90.5 percent of the percentage share of the
State of estimated tax payments attributable to highway users
in the State paid into the Highway Trust Fund (other than the
Mass Transit Account) in the most recent fiscal year for
which data are available.
``(d) Limitation on Adjustments.--
``(1) In general.--Except as provided in paragraphs (2) and
(3) of subsection (c), no State shall receive, for any fiscal
year, additional amounts under subsection (a)(1) if--
``(A) the total apportionments of the State for the fiscal
year for the programs specified in subsection (a)(2); exceed
``(B) the percentage of the average, for the period of
fiscal years 1998 through 2003, of the annual apportionments
of the State for all programs specified in subsection (b)(2),
as specified in paragraph (2).
``(2) Percentages.--The percentages referred to in
paragraph (1)(B) are--
``(A) for fiscal year 2004, 120 percent;
``(B) for fiscal year 2005, 130 percent;
``(C) for fiscal year 2006, 134 percent;
``(D) for fiscal year 2007, 137 percent;
``(E) for fiscal year 2008, 145 percent; and
``(F) for fiscal year 2009, 250 percent.
``(e) Programmatic Distribution of Funds.--The Secretary
shall apportion the amounts made available under this section
so that the amount apportioned to each State under this
section for each program referred to in subparagraphs (A)
through (G) of subsection (a)(2) is equal to the amount
determined by multiplying the amount to be apportioned under
this section by the proportion that--
``(1) the amount of funds apportioned to each State for
each program referred to in subparagraphs (A) through (G) of
subsection (a)(2) for a fiscal year; bears to
``(2) the total amount of funds apportioned to each State
for all such programs for the fiscal year.
``(f) Metro Planning Set Aside.--Notwithstanding section
104(f), no set aside provided for under that section shall
apply to funds allocated under this section.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) such sums as are
necessary to carry out this section for each of fiscal years
2004 through 2009.''
(b) Conforming Amendments.--
(1) The analysis for subchapter I of chapter 1 of title 23,
United States Code, is amended by striking the item relating
to section 105 and inserting the following:

``105. Equity bonus program.''

(2) Section 104(a)(1) of title 23, United States Code, is
amended by striking ``minimum guarantee'' and inserting
``equity bonus''.

SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

Section 110 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraphs (1) and (2), by striking ``2000'' and
inserting ``2006'';
(B) in paragraph (1), by inserting ``(as in effect on
September 30, 2002)'' after ``(2 U.S.C.
901(b)(2)(B)(ii)(I)(cc))''; and
(C) in paragraph (2)--
(i) by striking ``If the amount'' and inserting the
following:
``(A) In general.--Except as provided in subparagraph (B),
if the amount'';
(ii) by inserting ``(as in effect on September 30, 2002)''
after ``(2 U.S.C. 901(b)(1)(B)(ii)(I)(cc)'';
(iii) by striking ``the succeeding'' and inserting
``that'';
(iv) by striking ``and the motor carrier safety grant
program''; and
(v) by adding at the end the following:
``(B) Limitation.--No reduction under subparagraph (A)
shall be made for a fiscal year if, as of October 1 of the
fiscal year, the cash balance in the Highway Trust Fund
(other than the Mass Transit Account) exceeds
$6,000,000,000.'';
(2) in subsection (b)(1), by striking subparagraph (A) and
inserting the following:
``(A) the sums authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit Account) for
each of the Federal-aid highway and highway safety
construction programs (other than the equity bonus program)
and for which funds are allocated from the Highway Trust Fund
by the Secretary under this title and the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004;
bears to'';
(3) in subsection (c), by inserting ``the highway safety
improvement program,'' after ``the surface transportation
program,''; and
(4) by striking subsections (e), (f), and (g).

Subtitle B--New Programs

SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE
PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code, is amended by inserting after section 138
the following:

[[Page S820]]

``Sec. 139. Infrastructure performance and maintenance
program

``(a) Establishment.--The Secretary shall establish and
implement an infrastructure performance and maintenance
program in accordance with this section.
``(b) Eligible Projects.--A State may obligate funds
allocated to the State under this section only for projects
eligible under the Interstate maintenance program under
section 119, the National Highway System program under
section 103, the surface transportation program under section
133, the highway safety improvement program under section
148, the highway bridge program under section 144, and the
congestion mitigation and air quality improvement program
under section 149 that will--
``(1) preserve, maintain, or otherwise extend, in a cost-
effective manner, the useful life of existing highway
infrastructure elements; or
``(2) provide operational improvements (including traffic
management and intelligent transportation system strategies
and limited capacity enhancements) at points of recurring
highway congestion.
``(c) Period of Availability.--
``(1) Obligation within 180 days.--
``(A) In general.--Funds allocated to a State under this
section shall be obligated by the State not later than 180
days after the date of apportionment.
``(B) Unobligated funds.--Any amounts that remain
unobligated at the end of that period shall be allocated in
accordance with subsection (d).
``(2) Obligation by end of fiscal year.--
``(A) In general.--All funds allocated or reallocated under
this section shall remain available for obligation until the
last day of the fiscal year for which the funds are
apportioned.
``(B) Unobligated funds.--Any amounts allocated that remain
unobligated at the end of the fiscal year shall lapse.
``(d) Redistribution of Allocated Funds and Obligation
Authority.--
``(1) In general.--On the date that is 180 days after the
date of allocation, or as soon thereafter as practicable, for
each fiscal year, the Secretary shall--
``(A) withdraw--
``(i) any funds allocated to a State under this section
that remain unobligated; and
``(ii) an equal amount of obligation authority provided for
the use of the funds in accordance with section 1101(13) of
the Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004; and
``(B) reallocate the funds and redistribute the obligation
authority to those States that--
``(i) have fully obligated all amounts allocated under this
section for the fiscal year; and
``(ii) demonstrate that the State is able to obligate
additional amounts for projects eligible under this section
before the end of the fiscal year.
``(2) Equity bonus.--The calculation and distribution of
funds under section 105 shall be adjusted as a result of the
allocation of funds under this subsection.
``(e) Federal Share Payable.--The Federal share payable for
a project funded under this section shall be determined in
accordance with section 120.''.
(b) Conforming Amendment.--The analysis for chapter 1 of
title 23, United States Code, is amended by adding after the
item relating to section 138 the following:

``139. Infrastructure performance and maintenance program.''.

SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

(a) Declaration of Policy.--Section 101 of title 23, United
States Code, is amended--
(1) by striking ``(b) It is hereby declared to be'' and
inserting the following:
``(b) Declaration of Policy.--
``(1) Acceleration of construction of federal-aid highway
systems.--Congress declares that it is'';
(2) in the second paragraph, by striking ``It is hereby
declared'' and inserting the following:
``(2) Completion of interstate system.--Congress
declares''; and
(3) by striking the last paragraph and inserting the
following:
``(3) Transportation needs of 21st century.--Congress
declares that--
``(A) it is in the national interest to preserve and
enhance the surface transportation system to meet the needs
of the United States for the 21st Century;
``(B) the current urban and long distance personal travel
and freight movement demands have surpassed the original
forecasts and travel demand patterns are expected to change;
``(C) continued planning for and investment in surface
transportation is critical to ensure the surface
transportation system adequately meets the changing travel
demands of the future;
``(D) among the foremost needs that the surface
transportation system must meet to provide for a strong and
vigorous national economy are safe, efficient, and reliable--
``(i) national and interregional personal mobility
(including personal mobility in rural and urban areas) and
reduced congestion;
``(ii) flow of interstate and international commerce and
freight transportation; and
``(iii) travel movements essential for national security;
``(E) 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;
``(F) it is in the national interest to seek ways to
eliminate barriers to transportation investment created by
the current modal structure of transportation financing;
``(G) the connection between land use and infrastructure is
significant;
``(H) transportation should play a significant role in
promoting economic growth, improving the environment, and
sustaining the quality of life; and
``(I) the Secretary should take appropriate actions to
preserve and enhance the Interstate System to meet the needs
of the 21st Century.''.
(b) National Surface Transportation System Study.--
(1) In general.--The Secretary shall--
(A) conduct a complete investigation and study of the
current condition and future needs of the surface
transportation system of the United States, including--
(i) the National Highway System;
(ii) the Interstate System;
(iii) the strategic highway network;
(iv) congressional high priority corridors;
(v) intermodal connectors;
(vi) freight facilities;
(vii) navigable waterways;
(viii) mass transportation;
(ix) freight and intercity passenger rail infrastructure
and facilities; and
(x) surface access to airports; and
(B) develop a conceptual plan, with alternative approaches,
for the future to ensure that the surface transportation
system will continue to serve the needs of the United States,
including specific recommendations regarding design and
operational standards, Federal policies, and legislative
changes.
(2) Specific issues.--In conducting the investigation and
study, the Secretary shall specifically address--
(A) the current condition and performance of the Interstate
System (including the physical condition of bridges and
pavements and operational characteristics and performance),
relying primarily on existing data sources;
(B) the future of the Interstate System, based on a range
of legislative and policy approaches for 15-, 30-, and 50-
year time periods;
(C) the expected demographics and business uses that impact
the surface transportation system;
(D) the expected use of the surface transportation system,
including the effects of changing vehicle types, modes of
transportation, fleet size and weights, and traffic volumes;
(E) desirable design policies and standards for future
improvements of the surface transportation system, including
additional access points;
(F) the identification of urban, rural, national, and
interregional needs for the surface transportation system;
(G) the potential for expansion, upgrades, or other changes
to the surface transportation system, including--
(i) deployment of advanced materials and intelligent
technologies;
(ii) critical multistate, urban, and rural corridors
needing capacity, safety, and operational enhancements;
(iii) improvements to intermodal linkages;
(iv) security and military deployment enhancements;
(v) strategies to enhance asset preservation; and
(vi) implementation strategies;
(H) the improvement of emergency preparedness and
evacuation using the surface transportation system,
including--
(i) examination of the potential use of all modes of the
surface transportation system in the safe and efficient
evacuation of citizens during times of emergency;
(ii) identification of the location of critical
bottlenecks; and
(iii) development of strategies to improve system
redundancy, especially in areas with a high potential for
terrorist attacks;
(I) alternatives for addressing environmental concerns
associated with the future development of the surface
transportation system;
(J) the evaluation and assessment of the current and future
capabilities for conducting system-wide real-time performance
data collection and analysis, traffic monitoring, and
transportation systems operations and management; and
(K) a range of policy and legislative alternatives for
addressing future needs for the surface transportation
system, including funding needs and potential approaches to
provide funds.
(3) Technical advisory committee.--The Secretary shall
establish a technical advisory committee, in a manner
consistent with the Federal Advisory Committee Act (5 U.S.C.
App.), to collect and evaluate technical input from--
(A) the Department of Defense;
(B) appropriate Federal, State, and local officials with
responsibility for transportation;
(C) appropriate State and local elected officials;
(D) transportation and trade associations;
(E) emergency management officials;
(F) freight providers;
(G) the general public; and
(H) other entities and persons determined appropriate by
the Secretary to ensure a diverse range of views.

[[Page S821]]

(4) Report.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Environment and Public Works of the Senate and
the Committee on Transportation and Infrastructure of the
House of Representatives, and make readily available to the
public, a report on the results of the investigation and
study conducted under this subsection.

SEC. 1203. FREIGHT TRANSPORTATION GATEWAYS; FREIGHT
INTERMODAL CONNECTIONS.

(a) Freight Transportation Gateways.--Chapter 3 of title
23, United States Code, is amended by adding at the end the
following:

``Sec. 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 the 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
the 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;
``(D) to facilitate access to intermodal freight transfer
facilities; and
``(E) to increase economic efficiency by facilitating the
movement of goods.
``(b) State Responsibilities.--
``(1) Project development process.--Each State, in
coordination with metropolitan planning organizations, shall
ensure that intermodal freight transportation, trade
facilitation, and economic development needs are adequately
considered 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.--
``(A) In general.--Each State shall designate a freight
transportation coordinator.
``(B) Duties.--The coordinator shall--
``(i) foster public and private sector collaboration needed
to implement complex solutions to freight transportation and
freight transportation gateway problems, including--

``(I) coordination of metropolitan and statewide
transportation activities with trade and economic interests;
``(II) coordination with other States, agencies, and
organizations to find regional solutions to freight
transportation problems; and
``(III) coordination with local officials of the Department
of Defense and the Department of Homeland Security, and with
other organizations, to develop regional solutions to
military and homeland security transportation needs; and

``(ii) promote programs that build professional capacity to
better plan, coordinate, integrate, and understand freight
transportation needs for the State.
``(c) Innovative Finance Strategies.--
``(1) In general.--States and localities are encouraged to
adopt innovative financing strategies for freight
transportation gateway improvements, including--
``(A) new user fees;
``(B) modifications to existing user fees, including trade
facilitation charges;
``(C) revenue options that incorporate private sector
investment; and
``(D) a blending of Federal-aid and innovative finance
programs.
``(2) Technical assistance.--The Secretary shall provide
technical assistance to States and localities with respect to
the strategies.
``(d) Intermodal Freight Transportation Projects.--
``(1) Use of surface transportation program funds.--A State
may obligate funds apportioned to the State under section
104(b)(3) for publicly-owned intermodal freight
transportation projects that provide community and highway
benefits by addressing economic, congestion, system
reliability, security, safety, or environmental issues
associated with freight transportation gateways.
``(2) Eligible projects.--A project eligible for funding
under this section--
``(A) may include publicly-owned intermodal freight
transfer facilities, access to the facilities, and
operational improvements for the facilities (including
capital investment for intelligent transportation systems),
except that projects located within the boundaries of port
terminals shall only include the surface transportation
infrastructure modifications necessary to facilitate direct
intermodal interchange, transfer, and access into and out of
the port; and
``(B) may involve the combining of private and public
funds.''.
(b) Eligibility for Surface Transportation Program Funds.--
Section 133(b) of title 23, United States Code, is amended by
inserting after paragraph (11) the following:
``(12) Intermodal freight transportation projects in
accordance with section 325(d)(2).''.
(c) Freight Intermodal Connections to NHS.--Section 103(b)
of title 23, United States Code, is amended by adding at the
end the following:
``(7) Freight intermodal connections to the nhs.--
``(A) Funding set-aside.--Of the funds apportioned to a
State for each fiscal year under section 104(b)(1), an amount
determined in accordance with subparagraph (B) shall only be
available to the State to be obligated for projects on--
``(i) National Highway System routes connecting to
intermodal freight terminals identified according to criteria
specified in the report to Congress entitled `Pulling
Together: The National Highway System and its Connections to
Major Intermodal Terminals' dated May 24, 1996, referred to
in paragraph (1), and any modifications to the connections
that are consistent with paragraph (4);
``(ii) strategic highway network connectors to strategic
military deployment ports; and
``(iii) projects to eliminate railroad crossings or make
railroad crossing improvements.
``(B) Determination of amount.--The amount of funds for
each State for a fiscal year that shall be set aside under
subparagraph (A) shall be equal to the greater of--
``(i) the product obtained by multiplying--

``(I) the total amount of funds apportioned to the State
under section 104(b)(1); by
``(II) the percentage of miles that routes specified in
subparagraph (A) constitute of the total miles on the
National Highway System in the State; or

``(ii) 2 percent of the annual apportionment to the State
of funds under 104(b)(1).
``(C) Exemption from set-aside.--For any fiscal year, a
State may obligate the funds otherwise set aside by this
paragraph for any project that is eligible under paragraph
(6) and is located in the State on a segment of the National
Highway System specified in paragraph (2), if the State
certifies and the Secretary concurs that--
``(i) the designated National Highway System intermodal
connectors described in subparagraph (A) are in good
condition and provide an adequate level of service for
military vehicle and civilian commercial vehicle use; and
``(ii) significant needs on the designated National Highway
System intermodal connectors are being met or do not
exist.''.
(d) Federal Share Payable.--Section 120 of title 23, United
States Code, is amended by adding at the end the following:
``(m) Increased Federal Share for Connectors.--In the case
of a project to support a National Highway System intermodal
freight connection or strategic highway network connector to
a strategic military deployment port described in section
103(b)(7), except as otherwise provided in section 120, the
Federal share of the total cost of the project shall be 90
percent.''.
(e) Length Limitations.--Section 31111(e) of title 49,
United States Code, is amended--
(1) by striking ``The'' and inserting the following:
``(1) In general.--The''; and
(2) by adding at the end the following:
``(2) Length limitations.--In the interests of economic
competitiveness, security, and intermodal connectivity, not
later than 3 years after the date of enactment of this
paragraph, States shall update the list of those qualifying
highways to include--
``(A) strategic highway network connectors to strategic
military deployment ports; and
``(B) National Highway System intermodal freight
connections serving military and commercial truck traffic
going to major intermodal terminals as described in section
103(b)(7)(A)(i).''.
(f) Conforming Amendment.--The analysis of chapter 3 of
title 23, United States Code, is amended by adding at the end
the following:

``325. Freight transportation gateways.''.

SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL
FACILITIES.

(a) In General.--Section 147 of title 23, United States
Code, is amended to read as follows:

``Sec. 147. Construction of ferry boats and ferry terminal
facilities

``(a) In General.--The Secretary shall carry out a program
for construction of ferry boats and ferry terminal facilities
in accordance with section 129(c).
``(b) Federal Share.--Except as provided in section 120,
the Federal share of the cost of construction of ferry boats
and ferry terminals under this section shall be 80
percent.''.
(b) Conforming Amendments.--
(1) The analysis for subchapter I of chapter 1 of title 23,
United States Code, is amended by striking the item relating
to section 147 and inserting the following:

``147. Construction of ferry boats and ferry terminal facilities.''.

(2) Section 1064 of the Intermodal Surface Transportation
Efficiency Act of 1991 (105 Stat. 2005) is repealed.

SEC. 1205. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE
HIGHWAY.

(a) Designation.--Interstate Highway 86 in the State of New
York, extending from the Pennsylvania border near Lake Erie
through Orange County, New York, shall be known and
designated as the ``Daniel Patrick Moynihan Interstate
Highway''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
highway referred to in subsection (a) shall be deemed

[[Page S822]]

to be a reference to the Daniel Patrick Moynihan Interstate
Highway.

SEC. 1206. STATE-BY-STATE COMPARISON OF HIGHWAY CONSTRUCTION
COSTS.

(a) Collection of Data.--
(1) In general.--The Administrator of the Federal Highway
Administration (referred to in this section as the
``Administrator'') shall collect from States any bid price
data that is necessary to make State-by-State comparisons of
highway construction costs.
(2) Data required.--In determining which data to collect
and the procedures for collecting data, the Administrator
shall take into account the data collection deficiencies
identified in the report prepared by the General Accounting
Office numbered GAO-04-113R.
(b) Report.--
(1) In general.--The Administrator shall submit to Congress
an annual report on the bid price data collected under
subsection (a).
(2) Inclusions.--The report shall include--
(A) State-by-State comparisons of highway construction
costs for the previous fiscal year (including the cost to
construct a 1-mile road segment of a standard design, as
determined by the Administrator);
(B) a description of the competitive bidding procedures
used in each State; and
(C) a determination by Administrator as to whether the
competitive bidding procedures described under subparagraph
(B) are effective.

Subtitle C--Finance

SEC. 1301. FEDERAL SHARE.

Section 120 of title 23, United States Code, is amended--
(1) in subsection (a), by striking paragraph (1) and
inserting the following:
``(a) Interstate System Projects.--
``(1) In general.--Except as otherwise provided in this
chapter, the Federal share payable on account of any project
on the Interstate System (including a project to add high
occupancy vehicle lanes and a project to add auxiliary lanes
but excluding a project to add any other lanes) shall be 90
percent of the total cost of the project.'';
(2) in subsection (b)--
(A) by striking ``Except as otherwise'' and inserting the
following:
``(1) In general.--Except as otherwise'';
(B) by striking ``shall be--'' and all that follows and
inserting ``shall be 80 percent of the cost of the
project.''; and
(C) by adding at the end the following:
``(2) State-determined lower federal share.--In the case of
any project subject to this subsection, a State may determine
a lower Federal share than the Federal share determined under
paragraph (1).'';
(3) by striking subsection (d) and inserting the following:
``(d) Increased Federal Share.--
``(1) In general.--The Federal share payable under
subsection (a) or (b) may be increased for projects and
activities in each State in which is located--
``(A) nontaxable Indian land;
``(B) public land (reserved or unreserved);
``(C) a national forest; or
``(D) a national park or monument.
``(2) Amount.--
``(A) In general.--The Federal share for States described
in paragraph (1) shall be increased by a percentage of the
remaining cost that--
``(i) is equal to the percentage that--

``(I) the area of all land described in paragraph (1) in a
State; bears to
``(II) the total area of the State; but

``(ii) does not exceed 95 percent of the total cost of the
project or activity for which the Federal share is provided.
``(B) Adjustment.--The Secretary shall adjust the Federal
share for States under subparagraph (A) as the Secretary
determines necessary, on the basis of data provided by the
Federal agencies that are responsible for maintaining the
data.''.

SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

Section 104 of title 23, United States Code, is amended by
striking subsection (k) and inserting the following:
``(k) Transfer of Highway and Transit Funds.--
``(1) Transfer of highway funds for transit projects.--
``(A) In general.--Subject to subparagraph (B), 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.
``(B) Non-federal share.--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.
``(3) Transfer of highway funds to other federal
agencies.--
``(A) In general.--Except as provided in clauses (i) and
(ii) and subparagraph (B), funds made available under this
title or any other Act that are derived from Highway Trust
Fund (other than the Mass Transit account) may be transferred
to another Federal agency if--
``(i)(I) an expenditure is specifically authorized in
Federal-aid highway legislation or as a line item in an
appropriation act; or
``(II) a State transportation department consents to the
transfer of funds;
``(ii) the Secretary determines, after consultation with
the State transportation department (as appropriate), that
the Federal agency should carry out a project with the funds;
and
``(iii) the other Federal agency agrees to accept the
transfer of funds and to administer the project.
``(B) Administration.--
``(i) Procedures.--A project carried out with funds
transferred to a Federal agency under subparagraph (A) shall
be administered by the Federal agency under the procedures of
the Federal agency.
``(ii) Appropriations.--Funds transferred to a Federal
agency under subparagraph (A) shall not be considered an
augmentation of the appropriations of the Federal agency.
``(iii) Non-federal share.--The provisions of this title,
or an Act described in subparagraph (A), relating to the non-
Federal share shall apply to a project carried out with the
transferred funds, unless the Secretary determines that it is
in the best interest of the United States that the non-
Federal share be waived.
``(4) Transfer of funds among states or to federal highway
administration.--
``(A) In general.--Subject to subparagraphs (B) through
(D), the Secretary may, at the request of a State, transfer
funds apportioned or allocated to the State to another State,
or to the Federal Highway Administration, for the purpose of
funding 1 or more specific projects.
``(B) Administration.--The transferred funds shall be used
for the same purpose and in the same manner for which the
transferred funds were authorized.
``(C) Apportionment.--The transfer shall have no effect on
any apportionment formula used to distribute funds to States
under this section or section 105 or 144.
``(D) Surface transportation program.--Funds that are
apportioned or allocated to a State under subsection (b)(3)
and attributed to an urbanized area of a State with a
population of over 200,000 individuals under section
133(d)(2) may be transferred under this paragraph only if the
metropolitan planning organization designated for the area
concurs, in writing, with the transfer request.
``(5) Transfer of obligation authority.--Obligation
authority for funds transferred under this subsection shall
be transferred in the same manner and amount as the funds for
the projects are transferred under this subsection.''.

SEC. 1303. TRANSPORTATION INFRASTRUCTURE FINANCE AND
INNOVATION ACT AMENDMENTS.

(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) in paragraph (8) (as redesignated by paragraph (2))--
(A) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(B) by striking subparagraph (D) and inserting the
following:
``(D) a project that--
``(i)(I) is a project for--

``(aa) a public freight rail facility or a private facility
providing public benefit;
``(bb) an intermodal freight transfer facility;
``(cc) a means of access to a facility described in item
(aa) or (bb);
``(dd) a service improvement for a facility described in
item (aa) or (bb) (including a capital investment for an
intelligent transportation system); or

``(II) comprises a series of projects described in
subclause (I) with the common objective of improving the flow
of goods;
``(ii) may involve the combining of private and public
sector funds, including investment of public funds in private
sector facility improvements; and
``(iii) if located within the boundaries of a port
terminal, includes only such surface transportation
infrastructure modifications as are necessary to facilitate
direct intermodal interchange, transfer, and access into and
out of the port.''; and
(4) in paragraph (10) (as redesignated by paragraph (2)) by
striking ``bond'' and inserting ``credit''.
(b) Determination of Eligibility and Project Selection.--
Section 182 of title 23, United States Code, 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, 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) in clause (i), by striking ``$100,000,000'' and
inserting ``$50,000,000''; and
(ii) in clause (ii), by striking ``50'' and inserting
``20''; and
(C) in paragraph (4)--
(i) by striking ``Project financing'' and inserting ``The
Federal credit instrument''; and
(ii) by inserting before the period at the end the
following: ``that also secure the project obligations''; and

[[Page S823]]

(2) in subsection (b)--
(A) in paragraph (1), by striking ``criteria'' the second
place it appears and inserting ``requirements''; and
(B) in paragraph (2)(B), by inserting ``(which may be the
Federal credit instrument)'' after ``obligations''.
(c) Secured Loans.--Section 183 of title 23, United States
Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``of any project selected under section
182.'' at the end;
(ii) in subparagraphs (A) and (B), by inserting ``of any
project selected under section 182'' after ``costs'' ; and
(iii) in subparagraph (B), by striking the semicolon at the
end and inserting a period; and
(B) in paragraph (4)--
(i) by striking ``funding'' and inserting ``execution'';
and
(ii) by striking ``rating,'' and all that follows and
inserting a period;
(2) in subsection (b)--
(A) by striking paragraph (2) and inserting the following:
``(2) Maximum amount.--The amount of the secured loan shall
not exceed the lesser of--
``(A) 33 percent of the reasonably anticipated eligible
project costs; or
``(B) the amount of the senior project obligations.'';
(B) in paragraph (3)(A)(i), by inserting ``that also secure
the senior project obligations'' after ``sources''; and
(C) in paragraph (4), by striking ``marketable''; and
(3) in subsection (c)--
(A) by striking paragraph (3);
(B) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively; and
(C) in paragraph (3) (as redesignated by subparagraph
(B))--
(i) in subparagraph (A), by striking ``during the 10
years''; and
(ii) in subparagraph (B)(ii), by striking ``loan'' and all
that follows and inserting ``loan.''.
(d) Lines of Credit.--Section 184 of title 23, United
States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (3), by striking ``interest, any debt
service reserve fund, and any other available reserve'' and
inserting ``interest (but not including reasonably required
financing reserves)'';
(B) in paragraph (4), by striking ``marketable United
States Treasury securities as of the date on which the line
of credit is obligated'' and inserting `` United States
Treasury securities as of the date of execution of the line
of credit agreement''; and
(C) in paragraph (5)(A)(i), by inserting ``that also secure
the senior project obligations'' after ``sources''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``scheduled'';
(ii) by inserting ``be scheduled to'' after ``shall''; and
(iii) by striking ``be fully repaid, with interest,'' and
inserting ``to conclude, with full repayment of principal and
interest,''; and
(B) by striking paragraph (3).
(e) Program Administration.--Section 185 of title 23,
United States Code, is amended to read as follows:

``Sec. 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.--
``(1) In general.--The Secretary may appoint a financial
entity to assist the Secretary in servicing the Federal
credit instruments.
``(2) Duties.--The servicer shall act as the agent for the
Secretary.
``(3) Fee.--The servicer 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 title 23, United States Code,
is amended to read as follows:

``Sec. 188. Funding

``(a) Funding.--
``(1) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this subchapter $130,000,000 for each
of fiscal years 2004 through 2009.
``(2) Administrative costs.--Of amounts made available
under paragraph (1), the Secretary may use for the
administration of this subchapter not more than $2,000,000
for each of fiscal years 2004 through 2009.
``(3) Collected fees and services.--In addition to funds
provided under paragraph (2)--
``(A) all fees collected under this subchapter shall be
made available without further appropriation to the Secretary
until expended, for use in administering this subchapter; and
``(B) the Secretary may accept and use payment or services
provided by transaction participants, or third parties that
are paid by participants from transaction proceeds, for due
diligence, legal, financial, or technical services.
``(4) 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.''.
(g) Repeal.--Section 189 of title 23, United States code,
is repealed.
(h) Conforming Amendments.--The analysis for chapter 1 of
title 23, United States Code, is amended--
(1) by striking the item relating to section 185 and
inserting the following:

``185. Program administration.'';

and
(2) by striking the item relating to section 189.

SEC. 1304. FACILITATION OF INTERNATIONAL REGISTRATION PLANS
AND INTERNATIONAL FUEL TAX AGREEMENTS.

(a) In General.--Chapter 317 of title 49, United States
Code, is amended by adding at the end the following:

``Sec. 31708. Facilitation of international registration
plans and international fuel tax agreements

``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, respectively, and that serves as a base
jurisdiction for motor carriers that are domiciled in Mexico,
to assist the State with administrative costs resulting from
serving as a base jurisdiction for motor carriers from
Mexico.''.
(b) Conforming Amendment.--The analysis for chapter 317 of
title 49, United States Code, is amended by adding at the end
the following:

``31708. Facilitation of international registration plans and
international fuel tax agreements.''.

SEC. 1305. NATIONAL COMMISSION ON FUTURE REVENUE SOURCES TO
SUPPORT THE HIGHWAY TRUST FUND AND FINANCE THE
NEEDS OF THE SURFACE TRANSPORTATION SYSTEM.

(a) Establishment.--There is established a commission to be
known as the ``National Commission on Future Revenue Sources
to Support the Highway Trust Fund and Finance the Needs of
the Surface Transportation System'' (referred to in this
section as the ``Commission'').
(b) Membership.--
(1) Composition.--The Commission shall be composed of 11
members, of whom--
(A) 3 members shall be appointed by the President;
(B) 2 members shall be appointed by the Speaker of the
House of Representatives;
(C) 2 members shall be appointed by the minority leader of
the House of Representatives;
(D) 2 members shall be appointed by the majority leader of
the Senate; and
(E) 2 members shall be appointed by the minority leader of
the Senate.
(2) Qualifications.--Members appointed under paragraph (1)
shall have experience in or represent the interests of--
(A) public finance, including experience in developing
State and local revenue resources;
(B) surface transportation program administration;
(C) organizations that use surface transportation
facilities;
(D) academic research into related issues; or
(E) other activities that provide unique perspectives on
current and future requirements for revenue sources to
support the Highway Trust Fund.
(3) Date of appointments.--The appointment of a member of
the Commission shall be made not later than 120 days after
the date of establishment of the Commission.
(4) Terms.--A member shall be appointed for the life of the
Commission.
(5) Vacancies.--A vacancy on the Commission--
(A) shall not affect the powers of the Commission; and
(B) shall be filled in the same manner as the original
appointment was made.
(6) Initial meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed,
the Commission shall hold the initial meeting of the
Commission.
(7) Meetings.--The Commission shall meet at the call of the
Chairperson.
(8) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(9) Chairperson and vice chairperson.--The Commission shall
select a Chairperson and Vice Chairperson from among the
members of the Commission.
(c) Duties.--
(1) In general.--The Commission shall--
(A) conduct a comprehensive study of alternatives to
replace or to supplement the fuel tax as the principal
revenue source to support the Highway Trust Fund and suggest
new or alternative sources of revenue to fund the needs of
the surface transportation system over at least the next 30
years;

[[Page S824]]

(B) conduct the study in a manner that builds on--
(i) findings, conclusions, and recommendations of the
recent study conducted by the Transportation Research Board
on alternatives to the fuel tax to support highway program
financing; and
(ii) other relevant prior research;
(C) consult with the Secretary and the Secretary of the
Treasury in conducting the study to ensure that the views of
the Secretaries concerning essential attributes of Highway
Trust Fund revenue alternatives are considered;
(D) consult with representatives of State Departments of
Transportation and metropolitan planning organizations and
other key interested stakeholders in conducting the study to
ensure that--
(i) the views of the stakeholders on alternative revenue
sources to support State transportation improvement programs
are considered; and
(ii) any recommended Federal financing strategy takes into
account State financial requirements; and
(E) based on the study, make specific recommendations
regarding--
(i) actions that should be taken to develop alternative
revenue sources to support the Highway Trust Fund; and
(ii) the time frame for taking those actions.
(2) Specific matters.--The study shall address
specifically--
(A) the advantages and disadvantages of alternative revenue
sources to meet anticipated Federal surface transportation
financial requirements;
(B) recommendations concerning the most promising revenue
sources to support long-term Federal surface transportation
financing requirements;
(C) development of a broad transition strategy to move from
the current tax base to new funding mechanisms, including the
time frame for various components of the transition strategy;
(D) recommendations for additional research that may be
needed to implement recommended alternatives; and
(E) the extent to which revenues should reflect the
relative use of the highway system.
(3) Related work.--To the maximum extent practicable, the
study shall build on related work that has been done by--
(A) the Secretary of Transportation;
(B) the Secretary of Energy;
(C) the Transportation Research Board; and
(D) other entities and persons.
(4) Factors.--In developing recommendations under this
subsection, the Commission shall consider--
(A) the ability to generate sufficient revenues from all
modes to meet anticipated long-term surface transportation
financing needs;
(B) the roles of the various levels of government and the
private sector in meeting future surface transportation
financing needs;
(C) administrative costs (including enforcement costs) to
implement each option;
(D) the expected increase in non-taxed fuels and the impact
of taxing those fuels;
(E) the likely technological advances that could ease
implementation of each option;
(F) the equity and economic efficiency of each option;
(G) the flexibility of different options to allow various
pricing alternatives to be implemented; and
(H) potential compatibility issues with State and local tax
mechanisms under each alternative.
(5) Report and recommendations.--Not later than September
30, 2007, the Commission shall submit to Congress a final
report that contains--
(A) a detailed statement of the findings and conclusions of
the Commission; and
(B) the recommendations of the Commission for such
legislation and administrative actions as the Commission
considers appropriate.
(d) Powers.--
(1) Hearings.--The Commission may hold such hearings, meet
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable
to carry out this section.
(2) Information from federal agencies.--
(A) In general.--The Commission may secure directly from a
Federal agency such information as the Commission considers
necessary to carry out this section.
(B) Provision of information.--On request of the
Chairperson of the Commission, the head of the agency shall
provide the information to the Commission.
(3) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other agencies of the Federal Government.
(4) Donations.--The Commission may accept, use, and dispose
of donations of services or property.
(e) Commission Personnel Matters.--
(1) Members.--A member of the Commission shall serve
without pay but shall be allowed travel expenses, including
per diem in lieu of subsistence, at rates authorized for an
employee of an agency under subchapter I of chapter 57 of
title 5, United States Code, while away from the home or
regular place of business of the member in the performance of
the duties of the Commission.
(2) Contractor.--The Commission may contract with an
appropriate organization, agency, or entity to conduct the
study required under this section, under the strategic
guidance of the Commission.
(3) Administrative support.--On the request of the
Commission, the Administrator of the Federal Highway
Administration shall provide to the Commission, on a
reimbursable basis, the administrative support and services
necessary for the Commission to carry out the duties of the
Commission under this section.
(4) Detail of department personnel.--
(A) In general.--On the request of the Commission, the
Secretary may detail, on a reimbursable basis, any of the
personnel of the Department to the Commission to assist the
Commission in carrying out the duties of the Commission under
this section.
(B) Civil service status.--The detail of the employee shall
be without interruption or loss of civil service status or
privilege.
(5) Cooperation.--The staff of the Secretary shall
cooperate with the Commission in the study required under
this section, including providing such nonconfidential data
and information as are necessary to conduct the study.
(f) Relationship to Other Laws.--
(1) In general.--Except as provided in paragraphs (2) and
(3), funds made available 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.
(2) Federal share.--The Federal share of the cost of the
study and the Commission under this section shall be 100
percent.
(3) Availability.--Funds made available to carry out this
section shall remain available until expended.
(g) Authorization of Appropriations.--There is authorized
to be appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to carry out this section
$3,000,000 for fiscal year 2004.
(h) Termination.--
(1) In general.--The Commission shall terminate on the date
that is 180 days after the date on which the Commission
submits the report of the Commission under subsection (c)(5).
(2) Records.--Not later than the termination date for the
Commission, all records and papers of the Commission shall be
delivered to the Archivist of the United States for deposit
in the National Archives.

SEC. 1306. STATE INFRASTRUCTURE BANKS.

Section 1511(b)(1)(A) of the Transportation Equity Act for
the 21st Century (23 U.S.C. 181 note; 112 Stat. 251) is
amended by striking ``Missouri,'' and all that follows
through ``for the establishment'' and inserting ``Missouri,
Rhode Island, Texas, and any other State that seeks such an
agreement for the establishment''.

SEC. 1307. PUBLIC-PRIVATE PARTNERSHIPS PILOT PROGRAM.

Section 109(c) of title 23, United States Code, is amended
by adding at the end the following:
``(3) Public-private partnerships pilot program.--
``(A) In general.--The Secretary may undertake a pilot
program to demonstrate the advantages of public-private
partnerships for critical capital development projects,
including highway, bridge, and freight intermodal connector
projects authorized under this title.
``(B) Projects.--In carrying out the program, the Secretary
shall--
``(i) select not less than 10 qualified public-private
partnership projects that are authorized under applicable
State and local laws; and
``(ii) use funds made available to carry out the program to
provide to sponsors of the projects assistance for
development phase activities described in section 181(1)(A),
to enhance project delivery and reduce overall costs.''.

SEC. 1308. WAGERING.

(a) In General.--Chapter 35 of the Internal Revenue Code of
1986 is repealed.
(b) Conforming Amendments.--
(1) Section 4901 of the Internal Revenue Code is amended to
read as follows:

``SEC. 4901. PAYMENT OF TAX.

``All special taxes shall be imposed as of on the first day
of July in each year, or on commencing any trade or business
on which such tax is imposed. In the former case the tax
shall be reckoned for 1 year, and in the latter case it shall
be reckoned proportionately, from the first day of the month
in which the liability to a special tax commenced, to and
including the 30th day of June following.''.
(2) Section 4903 of such Code is amended by striking ``,
other than the tax imposed by section 4411,''.
(3) Section 4905 of such Code is amended to read as
follows:

``SEC. 4905. LIABILITY IN CASE OF DEATH OR CHANGE OF
LOCATION.

``When any person who has paid the special tax for any
trade or business dies, his spouse or child, or executors or
administrators or other legal representatives, may occupy the
house or premises, and in like manner carry on, for the
residue of the term for which the tax is paid, the same trade
or business as the deceased before carried on, in the same
house and upon the same premises, without the payment of any
additional tax. When any person removes from the house or
premises for which any trade or business was taxed to any
other place, he may carry on the trade or business specified
in the register kept in the office of the official in charge
of the internal revenue district at the place to which he
removes, without the payment of any additional tax: Provided,
That all cases of death, change, or removal, as aforesaid,
with

[[Page S825]]

the name of the successor to any person deceased, or of the
person making such change or removal, shall be registered
with the Secretary, under regulations to be prescribed by the
Secretary.''.
(4) Section 4907 of such Code is amended by striking ``,
except the tax imposed by section 4411,''.
(5) Section 6103(i)(8)(A) of such Code is amended--
(A) by striking ``, except to the extent authorized by
subsection (f) or (p)(6), disclose to any person, other than
another officer or employee of such office whose official
duties require such disclosure, any return or return
information described in section 4424(a) in a form which can
be associated with, or otherwise identify, directly or
indirectly, a particular taxpayer, nor shall such officer or
employee disclose any other'' and inserting ``disclose any'',
and
(B) by striking ``such other officer'' and inserting ``such
officer''.
(6) Section 6103(o) of such Code is amended to read as
follows:
``(o) Disclosure of Returns and Return Information With
Respect to Taxes Imposed by Subtitle E.--Returns and return
information with respect to taxes imposed by subtitle E
(relating to taxes on alcohol, tobacco, and firearms) shall
be open to inspection by or disclosure to officers and
employees of a Federal agency whose official duties require
such inspection or disclosure.''.
(7)(A) Subchapter B of chapter 65 of such Code is amended
by striking section 6419 (relating to excise tax on
wagering).
(B) The table of section of subchapter B of chapter 65 of
such Code is amended by striking the item relating to section
6419.
(8) Section 6806 of such Code is amended by striking
``under subchapter B of chapter 35, under subchapter B of
chapter 36,'' and inserting ``under subchapter B of chapter
36''.
(9) Section 7012 of such Code is amended by striking
paragraph (2) and by redesignating paragraphs (3), (4), and
(5) as paragraphs (2), (3), and (4), respectively.
(10)(A) Subchapter B of chapter 75 of such Code is amended
by striking section 7262 (relating to violation of
occupational tax laws relating to wagering-failure to pay
special tax).
(B) The table of sections of subchapter B of chapter 75 of
such Code is amended by striking the item relating to section
7262.
(11) Section 7272 of such Code, as amended by section 5244
of this Act, is amended to read as follows:

``SEC. 7272. PENALTY FOR FAILURE TO REGISTER.

``Any person (other than persons required to register under
subtitle E, or persons engaging in a trade or business on
which a special tax is imposed by such subtitle) who fails to
register with the Secretary as required by this title or by
regulations issued thereunder shall be liable to a penalty of
$50 ($10,000 in the case of a failure to register under
section 4101).''.
(12) Section 7613(a) is amended by striking ``or other data
in the case of'' and all that follows and inserting ``or
other data in the case of alcohol, tobacco, and firearms
taxes, see subtitle E.''.
(13) The table of chapters of subtitle D of such Code is
amended by striking the item relating to chapter 35.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to wagers placed
after the date of the enactment of this Act.
(2) Special taxes.--In the case of amendments made by this
section relating to special taxes imposed by subchapter B of
chapter 35, the amendments made by this section shall take
effect on July 1, 2004.

Subtitle D--Safety

SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

(a) Safety Improvement.--
(1) In general.--Section 148 of title 23, United States
Code, is amended to read as follows:

``Sec. 148. Highway safety improvement program

``(a) Definitions.--In this section:
``(1) Highway safety improvement program.--The term
`highway safety improvement program' means the program
carried out under this section.
``(2) Highway safety improvement project.--
``(A) In general.--The term `highway safety improvement
project' means a project described in the State strategic
highway safety plan that--
``(i) corrects or improves a hazardous road location or
feature; or
``(ii) addresses a highway safety problem.
``(B) Inclusions.--The term `highway safety improvement
project' includes a project for--
``(i) an intersection safety improvement;
``(ii) pavement and shoulder widening (including addition
of a passing lane to remedy an unsafe condition);
``(iii) installation of rumble strips or another warning
device, if the rumble strips or other warning devices do not
adversely affect the safety or mobility of bicyclists and
pedestrians;
``(iv) installation of a skid-resistant surface at an
intersection or other location with a high frequency of
accidents;
``(v) an improvement for pedestrian or bicyclist safety;
``(vi)(I) construction of any project for the elimination
of hazards at a railway-highway crossing that is eligible for
funding under section 130, including the separation or
protection of grades at railway-highway crossings;
``(II) construction of a railway-highway crossing safety
feature; or
``(III) the conduct of a model traffic enforcement activity
at a railway-highway crossing;
``(vii) construction of a traffic calming feature;
``(viii) elimination of a roadside obstacle;
``(ix) improvement of highway signage and pavement
markings;
``(x) installation of a priority control system for
emergency vehicles at signalized intersections;
``(xi) installation of a traffic control or other warning
device at a location with high accident potential;
``(xii) safety-conscious planning;
``(xiii) improvement in the collection and analysis of
crash data;
``(xiv) planning, equipment, operational activities, or
traffic enforcement activities (including police assistance)
relating to workzone safety;
``(xv) installation of guardrails, barriers (including
barriers between construction work zones and traffic lanes
for the safety of motorists and workers), and crash
attenuators;
``(xvi) the addition or retrofitting of structures or other
measures to eliminate or reduce accidents involving vehicles
and wildlife; or
``(xvii) installation and maintenance of signs (including
fluorescent, yellow-green signs) at pedestrian-bicycle
crossings and in school zones.
``(3) Safety project under any other section.--
``(A) In general.--The term `safety project under any other
section' means a project carried out for the purpose of
safety under any other section of this title.
``(B) Inclusion.--The term `safety project under any other
section' includes a project to--
``(i) promote the awareness of the public and educate the
public concerning highway safety matters; or
``(ii) enforce highway safety laws.
``(4) State highway safety improvement program.--The term
`State highway safety improvement program' means projects or
strategies included in the State strategic highway safety
plan carried out as part of the State transportation
improvement program under section 135(f).
``(5) State strategic highway safety plan.--The term `State
strategic highway safety plan' means a plan developed by the
State transportation department that--
``(A) is developed after consultation with--
``(i) a highway safety representative of the Governor of
the State;
``(ii) regional transportation planning organizations and
metropolitan planning organizations, if any;
``(iii) representatives of major modes of transportation;
``(iv) State and local traffic enforcement officials;
``(v) persons responsible for administering section 130 at
the State level;
``(vi) representatives conducting Operation Lifesaver;
``(vii) representatives conducting a motor carrier safety
program under section 31104 or 31107 of title 49;
``(viii) motor vehicle administration agencies; and
``(ix) other major State and local safety stakeholders;
``(B) analyzes and makes effective use of State, regional,
or local crash data;
``(C) addresses engineering, management, operation,
education, enforcement, and emergency services elements of
highway safety as key factors in evaluating highway projects;
``(D) considers safety needs of, and high-fatality segments
of, public roads;
``(E) considers the results of State, regional, or local
transportation and highway safety planning processes;
``(F) describes a program of projects or strategies to
reduce or eliminate safety hazards;
``(G) is approved by the Governor of the State or a
responsible State agency; and
``(H) is consistent with the requirements of section
135(f).
``(b) Program.--
``(1) In general.--The Secretary shall carry out a highway
safety improvement program.
``(2) Purpose.--The purpose of the highway safety
improvement program shall be to achieve a significant
reduction in traffic fatalities and serious injuries on
public roads.
``(c) Eligibility.--
``(1) In general.--To obligate funds apportioned under
section 104(b)(5) to carry out this section, a State shall
have in effect a State highway safety improvement program
under which the State--
``(A) develops and implements a State strategic highway
safety plan that identifies and analyzes highway safety
problems and opportunities as provided in paragraph (2);
``(B) produces a program of projects or strategies to
reduce identified safety problems;
``(C) evaluates the plan on a regular basis to ensure the
accuracy of the data and priority of proposed improvements;
and
``(D) submits to the Secretary an annual report that--
``(i) describes, in a clearly understandable fashion, not
less than 5 percent of locations determined by the State,
using criteria established in accordance with paragraph

[[Page S826]]

(2)(B)(ii), as exhibiting the most severe safety needs; and
``(ii) contains an assessment of--

``(I) potential remedies to hazardous locations identified;
``(II) estimated costs associated with those remedies; and
``(III) impediments to implementation other than cost
associated with those remedies.

``(2) Identification and analysis of highway safety
problems and opportunities.--As part of the State strategic
highway safety plan, a State shall--
``(A) have in place a crash data system with the ability to
perform safety problem identification and countermeasure
analysis;
``(B) based on the analysis required by subparagraph (A)--
``(i) identify hazardous locations, sections, and elements
(including roadside obstacles, railway-highway crossing
needs, and unmarked or poorly marked roads) that constitute a
danger to motorists, bicyclists, pedestrians, and other
highway users; and
``(ii) using such criteria as the State determines to be
appropriate, establish the relative severity of those
locations, in terms of accidents, injuries, deaths, traffic
volume levels, and other relevant data;
``(C) adopt strategic and performance-based goals that--
``(i) address traffic safety, including behavioral and
infrastructure problems and opportunities on all public
roads;
``(ii) focus resources on areas of greatest need; and
``(iii) are coordinated with other State highway safety
programs;
``(D) advance the capabilities of the State for traffic
records data collection, analysis, and integration with other
sources of safety data (such as road inventories) in a manner
that--
``(i) complements the State highway safety program under
chapter 4 and the commercial vehicle safety plan under
section 31102 of title 49;
``(ii) includes all public roads;
``(iii) identifies hazardous locations, sections, and
elements on public roads that constitute a danger to
motorists, bicyclists, pedestrians, and other highway users;
and
``(iv) includes a means of identifying the relative
severity of hazardous locations described in clause (iii) in
terms of accidents, injuries, deaths, and traffic volume
levels;
``(E)(i) determine priorities for the correction of
hazardous road locations, sections, and elements (including
railway-highway crossing improvements), as identified through
crash data analysis;
``(ii) identify opportunities for preventing the
development of such hazardous conditions; and
``(iii) establish and implement a schedule of highway
safety improvement projects for hazard correction and hazard
prevention; and
``(F)(i) establish an evaluation process to analyze and
assess results achieved by highway safety improvement
projects carried out in accordance with procedures and
criteria established by this section; and
``(ii) use the information obtained under clause (i) in
setting priorities for highway safety improvement projects.
``(d) Eligible Projects.--
``(1) In general.--A State may obligate funds apportioned
to the State under section 104(b)(5) to carry out--
``(A) any highway safety improvement project on any public
road or publicly owned bicycle or pedestrian pathway or
trail; or
``(B) as provided in subsection (e), for other safety
projects.
``(2) Use of other funding for safety.--
``(A) Effect of section.--Nothing in this section prohibits
the use of funds made available under other provisions of
this title for highway safety improvement projects.
``(B) Use of other funds.--States are encouraged to address
the full scope of their safety needs and opportunities by
using funds made available under other provisions of this
title (except a provision that specifically prohibits that
use).
``(e) Flexible Funding for States With a Strategic Highway
Safety Plan.--
``(1) In general.--To further the implementation of a State
strategic highway safety plan, a State may use up to 25
percent of the amount of funds made available under this
section for a fiscal year to carry out safety projects under
any other section as provided in the State strategic highway
safety plan.
``(2) Other transportation and highway safety plans.--
Nothing in this subsection requires a State to revise any
State process, plan, or program in effect on the date of
enactment of this section.
``(f) Reports.--
``(1) In general.--A State shall submit to the Secretary a
report that--
``(A) describes progress being made to implement highway
safety improvement projects under this section;
``(B) assesses the effectiveness of those improvements; and
``(C) describes the extent to which the improvements funded
under this section contribute to the goals of--
``(i) reducing the number of fatalities on roadways;
``(ii) reducing the number of roadway-related injuries;
``(iii) reducing the occurrences of roadway-related
crashes;
``(iv) mitigating the consequences of roadway-related
crashes; and
``(v) reducing the occurrences of roadway-railroad grade
crossing crashes.
``(2) Contents; schedule.--The Secretary shall establish
the content and schedule for a report under paragraph (1).
``(3) Transparency.--The Secretary shall make reports under
paragraph (1) available to the public through--
``(A) the Internet site of the Department; and
``(B) such other means as the Secretary determines to be
appropriate.
``(4) Discovery and admission into evidence of certain
reports, surveys, and information.--Notwithstanding any other
provision of law, no report, survey, schedule, list, or other
data compiled or collected for any purpose directly relating
to paragraph (1) or subsection (c)(1)(D), or published by the
Secretary in accordance with paragraph (3), shall be--
``(A) subject to discovery or admitted into evidence in any
Federal or State judicial proceeding; or
``(B) considered for any other purpose in any action for
damages arising from an occurrence at a location identified
or addressed in the report, survey, schedule, list, or other
collection of data.
``(g) Federal Share of Highway Safety Improvement
Projects.--Except as provided in sections 120 and 130, the
Federal share of the cost of a highway safety improvement
project carried out with funds made available under this
section shall be 90 percent.
``(h) Funds for Bicycle and Pedestrian Safety.--A State
shall allocate for bicycle and pedestrian improvements in the
State a percentage of the funds remaining after
implementation of sections 130(e) and 150, in an amount that
is equal to or greater than the percentage of all fatal
crashes in the States involving bicyclists and pedestrians.
``(i) Roadway Safety Improvements for Older Drivers and
Pedestrians.--For each of fiscal years 2004 through 2009,
$25,000,000 is authorized to be appropriated out of the
Highway Trust Fund (other than the Mass Transit Account) for
projects in all States to improve traffic signs and pavement
markings in a manner consistent with the recommendations
included in the publication of the Federal Highway
Administration entitled `Guidelines and Recommendations to
Accommodate Older Drivers and Pedestrians (FHWA-RD-01-103)'
and dated October 2001.''.
(2) Allocations of apportioned funds.--Section 133(d) of
title 23, United States Code, is amended--
(A) by striking paragraph (1);
(B) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively;
(C) in paragraph (2) (as redesignated by subparagraph
(B))--
(i) in the first sentence of subparagraph (A)--

(I) by striking ``subparagraphs (C) and (D)'' and inserting
``subparagraph (C)''; and
(II) by striking ``80 percent'' and inserting ``90
percent'';

(ii) in subparagraph (B), by striking ``tobe'' and
inserting ``to be'';
(iii) by striking subparagraph (C);
(iv) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(v) in subparagraph (C) (as redesignated by clause (iv)),
by adding a period at the end; and
(D) in paragraph (4)(A) (as redesignated by subparagraph
(B)), by striking ``paragraph (2)'' and inserting ``paragraph
(1)''.
(3) Administration.--Section 133(e) of title 23, United
States Code, is amended in each of paragraphs (3)(B)(i),
(5)(A), and (5)(B) of subsection (e), by striking ``(d)(2)''
each place it appears and inserting ``(d)(1)''.
(4) Conforming amendments.--
(A) The analysis for chapter 1 of title 23, United States
Code, is amended by striking the item relating to section 148
and inserting the following:

``148. Highway safety improvement program.''.

(B) Section 104(g) of title 23, United States Code, is
amended in the first sentence by striking ``sections 130,
144, and 152 of this title'' and inserting ``sections 130 and
144''.
(C) Section 126 of title 23, United States Code, is
amended--
(i) in subsection (a), by inserting ``under'' after
``State's apportionment''; and
(ii) in subsection (b)--

(I) in the first sentence, by striking ``the last sentence
of section 133(d)(1) or to section 104(f) or to section
133(d)(3)'' and inserting ``section 104(f) or 133(d)(2)'';
and
(II) in the second sentence, by striking ``or 133(d)(2)''.

(D) Sections 154, 164, and 409 of title 23, United States
Code, are amended by striking ``152'' each place it appears
and inserting ``148''.
(b) Apportionment of Highway Safety Improvement Program
Funds.--Section 104(b) of title 23, United States Code, is
amended--
(1) in the matter preceding paragraph (1), by inserting
after ``Improvement program,'' the following: ``the highway
safety improvement program,''; and
(2) by adding at the end the following:
``(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.

[[Page S827]]

``(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.''.
(c) Elimination of Hazards Relating to Railway-Highway
Crossings.--
(1) Funds for railway-highway crossings.--Section 130(e) of
title 23, United States Code, is amended by inserting before
``At least'' the following: ``For each fiscal year, at least
$200,000,000 of the funds authorized and expended under
section 148 shall be available for the elimination of hazards
and the installation of protective devices at railway-highway
crossings.''.
(2) Biennial reports to congress.--Section 130(g) of title
23, United States Code, is amended in the third sentence--
(A) by inserting ``and the Committee on Commerce, Science,
and Transportation,'' after ``Public Works''; and
(B) by striking ``not later than April 1 of each year'' and
inserting ``every other year''.
(3) Expenditure of funds.--Section 130 of title 23, United
States Code, is amended by adding at the end the following:
``(k) Expenditure of Funds.--Funds made available to carry
out this section shall be available for expenditure on
compilation and analysis of data in support of activities
carried out under subsection (g).''.
(d) Transition.--
(1) Implementation.--Except as provided in paragraph (2),
the Secretary shall approve obligations of funds apportioned
under section 104(b)(5) of title 23, United States Code (as
added by subsection (b)) to carry out section 148 of that
title, only if, not later than October 1 of the second fiscal
year after the date of enactment of this Act, a State has
developed and implemented a State strategic highway safety
plan as required under section 148(c) of that title.
(2) Interim period.--
(A) In general.--Before October 1 of the second fiscal year
after the date of enactment of this Act and until the date on
which a State develops and implements a State strategic
highway safety plan, the Secretary shall apportion funds to a
State for the highway safety improvement program and the
State may obligate funds apportioned to the State for the
highway safety improvement program under section 148 for
projects that were eligible for funding under sections 130
and 152 of that title, as in effect on the day before the
date of enactment of this Act.
(B) No strategic highway safety plan.--If a State has not
developed a strategic highway safety plan by October 1 of the
second fiscal year after the date of enactment of this Act,
but demonstrates to the satisfaction of the Secretary that
progress is being made toward developing and implementing
such a plan, the Secretary shall continue to apportion funds
for 1 additional fiscal year for the highway safety
improvement program under section 148 of title 23, United
States Code, to the State, and the State may continue to
obligate funds apportioned to the State under this section
for projects that were eligible for funding under sections
130 and 152 of that title, as in effect on the day before the
date of enactment of this Act.
(C) Penalty.--If a State has not adopted a strategic
highway safety plan by the date that is 2 years after the
date of enactment of this Act, funds made available to the
State under section 1101(6) shall be redistributed to other
States in accordance with section 104(b)(3) of title 23,
United States Code.

SEC. 1402. OPERATION LIFESAVER.

Section 104(d)(1) of title 23, United States Code, is
amended--
(1) by striking ``subsection (b)(3)'' and inserting
``subsection (b)(5)''; and
(2) by striking ``$500,000'' and inserting ``$600,000''.

SEC. 1403. LICENSE SUSPENSION.

Section 164(a) of title 23, United States Code, is amended
by striking paragraph (3) and inserting the following:
``(3) License suspension.--The term `license suspension'
means--
``(A) the suspension of all driving privileges of an
individual for the duration of the suspension period; or
``(B) a combination of suspension of all driving privileges
of an individual for the first 90 days of the suspension
period, followed by reinstatement of limited driving
privileges requiring the individual to operate only motor
vehicles equipped with an ignition interlock system or other
device approved by the Secretary during the remainder of the
suspension period.''.

SEC. 1404. BUS AXLE WEIGHT EXEMPTION.

Section 1023 of the Intermodal Surface Transportation
Efficiency Act of 1991 (23 U.S.C. 127 note; 105 Stat. 1951)
is amended by striking subsection (h) and inserting the
following:
``(h) Over-the-Road Bus and Public Transit Vehicle
Exemption.--
``(1) In general.--The second sentence of section 127 of
title 23, United States Code (relating to axle weight
limitations for vehicles using the Dwight D. Eisenhower
System of Interstate and Defense Highways), shall not apply
to--
``(A) any over-the-road bus (as defined in section 301 of
the Americans With Disabilities Act of 1990 (42 U.S.C.
12181)); or
``(B) any vehicle that is regularly and exclusively used as
an intrastate public agency transit passenger bus.
``(2) State action.--No State or political subdivision of a
State, or any political authority of 2 or more States, shall
impose any axle weight limitation on any vehicle described in
paragraph (1) in any case in which such a vehicle is using
the Dwight D. Eisenhower System of Interstate and Defense
Highways.''.

SEC. 1405. SAFE ROUTES TO SCHOOLS PROGRAM.

(a) In General.--Subchapter I of chapter I of title 23,
United States Code, is amended by inserting after section 149
the following:

``Sec. 150. Safe routes to schools program

``(a) Definitions.--In this section:
``(1) Primary and secondary school.--The term `primary and
secondary school' means a school that provides education to
children in any of grades kindergarten through 12.
``(2) Program.--The term `program' means the safe routes to
schools program established under subsection (b).
``(3) Vicinity of a school.--The term `vicinity of a
school' means the area within 2 miles of a primary or
secondary school.
``(b) Establishment.--The Secretary shall establish and
carry out a safe routes to school program for the benefit of
children in primary and secondary schools in accordance with
this section.
``(c) Purposes.--The purposes of the program shall be--
``(1) to enable and to encourage children to walk and
bicycle to school;
``(2) to encourage a healthy and active lifestyle by making
walking and bicycling to school safer and more appealing
transportation alternatives; and
``(3) to facilitate the planning, development, and
implementation of projects and activities that will improve
safety in the vicinity of schools.
``(d) Eligible Recipients.--A State shall use amounts
apportioned under this section to provide financial
assistance to State, regional, and local agencies that
demonstrate an ability to meet the requirements of this
section.
``(e) Eligible Projects and Activities.--
``(1) Infrastructure-related projects.--
``(A) In general.--Amounts apportioned to a State under
this section may be used for the planning, design, and
construction of infrastructure-related projects to encourage
walking and bicycling to school, including--
``(i) sidewalk improvements;
``(ii) traffic calming and speed reduction improvements;
``(iii) pedestrian and bicycle crossing improvements;
``(iv) on-street bicycle facilities;
``(v) off-street bicycle and pedestrian facilities;
``(vi) secure bicycle parking facilities;
``(vii) traffic signal improvements; and
``(viii) pedestrian-railroad grade crossing improvements.
``(B) Location of projects.--Infrastructure-related
projects under subparagraph (A) may be carried out on--
``(i) any public road in the vicinity of a school; or
``(ii) any bicycle or pedestrian pathway or trail in the
vicinity of a school.
``(2) Behavioral activities.--
``(A) In general.--In addition to projects described in
paragraph (1), amounts apportioned to a State under this
section may be used for behavioral activities to encourage
walking and bicycling to school, including--
``(i) public awareness campaigns and outreach to press and
community leaders;
``(ii) traffic education and enforcement in the vicinity of
schools; and
``(iii) student sessions on bicycle and pedestrian safety,
health, and environment.
``(B) Allocation.--Of the amounts apportioned to a State
under this section for a fiscal year, not less than 10
percent shall be used for behavioral activities under this
paragraph.
``(f) Funding.--
``(1) Set aside.--Before apportioning amounts to carry out
section 148 for a fiscal year, the Secretary shall set aside
and use $70,000,000 to carry out this section.
``(2) Apportionment.--Amounts made available to carry out
this section shall be apportioned to States in accordance
with section 104(b)(5).
``(3) Administration of amounts.--Amounts apportioned to a
State under this section shall be administered by the State
transportation department.
``(4) Federal share.--Except as provided in sections 120
and 130, the Federal share of the cost of a project or
activity funded under this section shall be 90 percent.
``(5) Period of availability.--Notwithstanding section
118(b)(2), amounts apportioned under this section shall
remain available until expended.''.
(b) Conforming Amendments.--The analysis for subchapter I
of chapter 1 of title 23, United States Code is amended by
inserting after the item relating to section 149 the
following:

``150. Safe routes to school program.''.

[[Page S828]]

SEC. 1406. PURCHASES OF EQUIPMENT.

(a) In General.--Section 152 of title 23, United States
Code is amended to read as follows:

``Sec. 152. Purchases of equipment

``(a) In General.--Subject to subsection (b), a State
carrying out a project under this chapter shall purchase
device, tool or other equipment needed for the project only
after completing and providing a written analysis
demonstrating the cost savings associated with purchasing the
equipment compared with renting the equipment from a
qualified equipment rental provider before the project
commences.
``(b) Applicability.--This section shall apply to--
``(1) earth moving, road machinery, and material handling
equipment, or any other item, with a purchase price in excess
of $75,000; and
``(2) aerial work platforms with a purchase price in excess
of $25,000.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code, is amended by
striking the item relating to section 152 and inserting the
following:

``152. Purchases of equipment.''.

SEC. 1407. WORKZONE SAFETY.

Section 358(b) of the National Highway System Designation
Act of 1995 (109 Stat. 625) is amended by adding at the end
the following:
``(7) Recommending all federally-assisted projects in
excess of $15,000,000 to enter into contracts only with work
zone safety services contractors, traffic control
contractors, and trench safety and shoring contractors that
carry general liability insurance in an amount not less than
$15,000,000.
``(8) Recommending federally-assisted projects the costs of
which exceed $15,000,000 to include work zone intelligent
transportation systems that are--
``(A) provided by a qualified vendor; and
``(B) monitored continuously.
``(9) Recommending federally-assisted projects to fully
fund not less than 5 percent of project costs for work zone
safety and temporary traffic control measures, in addition to
the cost of the project, which measures shall be provided by
a qualified work zone safety or traffic control provider.
``(10) Ensuring that any recommendation made under any of
paragraphs (7) through (9) provides for an exemption for
applicability to a State, with respect to a project or class
of projects, to the extent that a State notifies the
Secretary in writing that safety is not expected to be
adversely affected by nonapplication of the requirement to
the project or class of projects.''.

SEC. 1408. WORKER INJURY PREVENTION AND FREE FLOW OF
VEHICULAR TRAFFIC.

Not later than 1 year after the date of enactment of this
Act, the Secretary shall promulgate regulations--
(1) to decrease the probability of worker injury;
(2) to maintain the free flow of vehicular traffic by
requiring workers whose duties place the workers on, or in
close proximity to, a Federal-aid highway (as defined in
section 101 of title 23, United States Code) to wear high-
visibility clothing; and
(3) to require such other worker-safety measures for
workers described in paragraph (2) as the Secretary
determines appropriate.

SEC. 1409. IDENTITY AUTHENTICATION STANDARDS.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1815(a)), is
amended by adding at the end the following:

``Sec. 178. Identity authentication standards

``(a) Definition of Information-Based Identity
Authentication.--In this section, the term `information-based
identity authentication' means the determination of the
identity of an individual, through the comparison of
information provided by a person, with other information
pertaining to that individual with a system using scoring
models and algorithms.
``(b) Standards.--Not later than 180 days after the date of
enactment of this section, the Secretary, in consultation
with the Secretary of Homeland Security and the Federal Motor
Carrier Safety Administration, shall promulgate regulations
establishing minimum standards for State departments of motor
vehicles regarding the use of information-based identity
authentication to determine the identity of an applicant for
a commercial driver's license, or the renewal, transfer or
upgrading, of a commercial driver's license.
``(c) Minimum Standards.--The regulations shall, at a
minimum, require State departments of motor vehicles to
implement, and applicants for commercial driver's licenses,
(or the renewal, transfer, or upgrading of commercial
driver's licenses), to comply with, reasonable procedures for
operating an information-based identity authentication
program before issuing, renewing, transferring, or upgrading
a commercial driver's license.
``(d) Key Factors.--In promulgating regulations under this
section, the Secretary shall require that an information-
based identity authentication program carried out under this
section establish processes that--
``(1) use multiple sources of matching information;
``(2) enable the measurement of the accuracy of the
determination of an applicant's identity;
``(3) support continuous auditing of compliance with
applicable laws, policies, and practices governing the
collection, use, and distribution of information in the
operation of the program; and
``(4) incorporate industry best practices to protect
significant privacy interests in the information used in the
program and the appropriate safeguarding of the storage of
the information.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter I of title 23, United States Code (as amended by
section 1815(b)), is amended by adding at the end the
following:

``178. Identity authentication standards.''.

Subtitle E--Environmental Planning and Review

CHAPTER 1--TRANSPORTATION PLANNING

SEC. 1501. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO
STATE AND METROPOLITAN TRANSPORTATION PLANNING.

(a) Metropolitan Planning.--Section 134(f) of title 23,
United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (D)--
(i) by inserting after ``environment'' the following:
``(including the protection of habitat, water quality, and
agricultural and forest land, while minimizing invasive
species)''; and
(ii) by inserting before the semicolon the following:
``(including minimizing adverse health effects from mobile
source air pollution and promoting the linkage of the
transportation and development goals of the metropolitan
area)''; and
(B) in subparagraph (G), by inserting ``and efficient use''
after ``preservation'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Selection of factors.--After soliciting and
considering any relevant public comments, the metropolitan
planning organization shall determine which of the factors
described in paragraph (1) are most appropriate for the
metropolitan area to consider.''.
(b) Statewide Planning.--Section 135(c) of title 23, United
States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (D)--
(i) by inserting after ``environment'' the following:
``(including the protection of habitat, water quality, and
agricultural and forest land, while minimizing invasive
species)''; and
(ii) by inserting before the semicolon the following:
``(including minimizing adverse health effects from mobile
source air pollution and promoting the linkage of the
transportation and development goals of the State)''; and
(B) in subparagraph (G), by inserting ``and efficient use''
after ``preservation'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Selection of projects and strategies.--After
soliciting and considering any relevant public comments, the
State shall determine which of the projects and strategies
described in paragraph (1) are most appropriate for the State
to consider.''.

SEC. 1502. CONSULTATION BETWEEN TRANSPORTATION AGENCIES AND
RESOURCE AGENCIES IN TRANSPORTATION PLANNING.

(a) In General.--Section 134(g) of title 23, United States
Code, is amended--
(1) in paragraph (2)--
(A) by redesignating subparagraphs (B) through (D) as
subparagraphs (C) through (E), respectively; and
(B) by inserting after subparagraph (A) the following:
``(B) Mitigation activities.--
``(i) In general.--A long-range transportation plan shall
include a discussion of--

``(I) types of potential habitat, hydrological, and
environmental mitigation activities that may assist in
compensating for loss of habitat, wetland, and other
environmental functions; and
``(II) potential areas to carry out these activities,
including a discussion of areas that may have the greatest
potential to restore and maintain the habitat types and
hydrological or environmental functions affected by the plan.

``(ii) Consultation.--The discussion shall be developed in
consultation with Federal, State, and tribal wildlife, land
management, and regulatory agencies.'';
(2) by redesignating paragraphs (4), (5), and (6) as
paragraphs (5), (6), and (7), respectively; and
(3) by inserting after paragraph (3) the following:
``(4) Consultation.--
``(A) In general.--In each metropolitan area, the
metropolitan planning organization shall consult, as
appropriate, with State and local agencies responsible for
land use management, natural resources, environmental
protection, conservation, and historic preservation
concerning the development of a long-range transportation
plan.
``(B) Issues.--The consultation shall involve--
``(i) comparison of transportation plans with State
conservation plans or with maps, if available;

[[Page S829]]

``(ii) comparison of transportation plans to inventories of
natural or historic resources, if available; or
``(iii) consideration of areas where wildlife crossing
structures may be needed to ensure connectivity between
wildlife habitat linkage areas.''.
(b) Improved Consultation During State Transportation
Planning.--
(1) In general.--Section 135(e)(2) of title 23, United
States Code, is amended by adding at the end the following:
``(D) Consultation, comparison, and consideration.--
``(i) In general.--The long-range transportation plan shall
be developed, as appropriate, in consultation with State and
local agencies responsible for--

``(I) land use management;
``(II) natural resources;
``(III) environmental protection;
``(IV) conservation; and
``(V) historic preservation.

``(ii) Comparison and consideration.--Consultation under
clause (i) shall involve--

``(I) comparison of transportation plans to State
conservation plans or maps, if available;
``(II) comparison of transportation plans to inventories of
natural or historic resources, if available; or
``(III) consideration of areas where wildlife crossing
structures may be needed to ensure connectivity between
wildlife habitat linkage areas.''.

(2) Additional requirements.--Section 135(e) of title 23,
United States Code, is amended--
(A) by redesignating paragraphs (4) and (5) as paragraphs
(6) and (7), respectively; and
(B) by inserting after paragraph (3) the following:
``(4) Mitigation activities.--
``(A) In general.--A long-range transportation plan shall
include a discussion of--
``(i) types of potential habitat, hydrological, and
environmental mitigation activities that may assist in
compensating for loss of habitat, wetlands, and other
environmental functions; and
``(ii) potential areas to carry out these activities,
including a discussion of areas that may have the greatest
potential to restore and maintain the habitat types and
hydrological or environmental functions affected by the plan.
``(B) Consultation.--The discussion shall be developed in
consultation with Federal, State, and tribal wildlife, land
management, and regulatory agencies.
``(5) Transportation strategies.--A long-range
transportation plan shall identify transportation strategies
necessary to efficiently serve the mobility needs of
people.''.

SEC. 1503. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO
TRANSPORTATION PROJECT PLANNING.

Section 109(c)(2) of title 23, United States Code, is
amended--
(1) by striking ``consider the results'' and inserting
``consider--
``(A) the results'';
(2) by striking the period at the end and inserting a
semicolon; and
(3) by adding at the end the following:
``(B) the publication entitled `Flexibility in Highway
Design' of the Federal Highway Administration;
``(C) `Eight Characteristics of Process to Yield Excellence
and the Seven Qualities of Excellence in Transportation
Design' developed by the conference held during 1998 entitled
`Thinking Beyond the Pavement National Workshop on
Integrating Highway Development with Communities and the
Environment while Maintaining Safety and Performance'; and
``(D) any other material that the Secretary determines to
be appropriate.''.

SEC. 1504. PUBLIC INVOLVEMENT IN TRANSPORTATION PLANNING AND
PROJECTS.

(a) Metropolitan Planning.--
(1) Participation by interested parties.--Section 134(g)(5)
of title 23, United States Code (as redesignated by section
1502(a)(1)), is amended--
(A) by striking ``Before approving'' and inserting the
following:
``(A) In general.--Before approving''; and
(B) by adding at the end the following:
``(B) Methods.--In carrying out subparagraph (A), the
metropolitan planning organization shall, to the maximum
extent practicable--
``(i) hold any public meetings at convenient and accessible
locations and times;
``(ii) employ visualization techniques to describe plans;
and
``(iii) make public information available in electronically
accessible format and means, such as the World Wide Web.''.
(2) Publication of long-range transportation plans.--
Section 134(g)(6)(i) of title 23, United States Code (as
redesignated by section 1502(a)(1)), is amended by inserting
before the semicolon the following: ``, including (to the
maximum extent practicable) in electronically accessible
formats and means such as the World Wide Web''.
(b) Statewide Planning.--
(1) Participation by interested parties.--Section 135(e)(3)
of title 23, United States Code, is amended by striking
subparagraph (B) and inserting the following:
``(B) Methods.--In carrying out subparagraph (A), the State
shall, to the maximum extent practicable--
``(i) hold any public meetings at convenient and accessible
locations and times;
``(ii) employ visualization techniques to describe plans;
and
``(iii) make public information available in electronically
accessible format and means, such as the World Wide Web.''.
(2) Publication of long-range transportation plans.--
Section 135(e) of title 23, United States Code (as amended by
section 1502(b)(2)), is amended by adding at the end the
following:
``(8) Publication of long-range transportation plans.--Each
long-range transportation plan prepared by a State shall be
published or otherwise made available, including (to the
maximum extent practicable) in electronically accessible
formats and means, such as the World Wide Web.''.

SEC. 1505. PROJECT MITIGATION.

(a) Mitigation for National Highway System Projects.--
Section 103(b)(6)(M) of title 23, United States Code, is
amended--
(1) by inserting ``(i)'' after ``(M); and
(2) by adding at the end the following:
``(ii) State habitat, streams, and wetlands mitigation
efforts under section 155.''.
(b) Mitigation for Surface Transportation Program
Projects.--Section 133(b)(11) of title 23, United States
Code, is amended--
(1) by inserting ``(A)'' after ``(11)''; and
(2) by adding at the end the following:
``(B) State habitat, streams, and wetlands mitigation
efforts under section 155.''.
(c) State Habitat, Streams, and Wetlands Mitigation
Funds.--Section 155 of title 23, United States Code, is
amended to read as follows:

``Sec. 155. State habitat, streams, and wetlands mitigation
funds

``(a) Establishment.--A State should establish a habitat,
streams, and wetlands mitigation fund (referred to in this
section as a `State fund').
``(b) Purpose.--The purpose of a State fund is to encourage
efforts for habitat, streams, and wetlands mitigation in
advance of or in conjunction with highway or transit projects
to--
``(1) ensure that the best habitat, streams, and wetland
mitigation sites now available are used; and
``(2) accelerate transportation project delivery by making
high-quality habitat, streams, and wetland mitigation credits
available when needed.
``(c) Funds.--A State may deposit into a State fund part of
the funds apportioned to the State under--
``(1) section 104(b)(1) for the National Highway System;
and
``(2) section 104(b)(3) for the surface transportation
program.
``(d) Use.--
``(1) In general.--Amounts deposited in a State fund shall
be used (in a manner consistent with this section) for
habitat, streams, or wetlands mitigation related to 1 or more
projects funded under this title, including a project under
the transportation improvement program of the State developed
under section 135(f).
``(2) Endangered species.--In carrying out this section, a
State and cooperating agency shall give consideration to
mitigation projects, on-site or off-site, that restore and
preserve the best available sites to conserve biodiversity
and habitat for--
``(A) Federal or State listed threatened or endangered
species of plants and animals; and
``(B) plant or animal species warranting listing as
threatened or endangered, as determined by the Secretary of
the Interior in accordance with section 4(b)(3)(B) of the
Endangered Species Act of 1973 (16 U.S.C. 1533(b)(3)(B)).
``(e) Consistency With Applicable Requirements.--
Contributions from the State fund to mitigation efforts may
occur in advance of project construction only if the efforts
are consistent with all applicable requirements of Federal
law (including regulations).''.
(d) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code, is amended by
striking the item relating to section 155 and inserting the
following:

``155. State habitat, streams, and wetlands mitigation funds.''.

CHAPTER 2--TRANSPORTATION PROJECT DEVELOPMENT PROCESS

SEC. 1511. TRANSPORTATION PROJECT DEVELOPMENT PROCESS.

(a) In General.--Chapter 3 of title 23, United States Code
(as amended by section 1203(a)), is amended by inserting
after section 325 the following:

``Sec. 326. Transportation project development process

``(a) Definitions.--In this section:
``(1) Agency.--The term `agency' means any agency,
department, or other unit of Federal, State, local, or
federally recognized tribal government.
``(2) Environmental impact statement.--The term
`environmental impact statement' means a detailed statement
of the environmental impacts of a project required to be
prepared under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).
``(3) Environmental review process.--
``(A) In general.--The term `environmental review process'
means the process for preparing, for a project--
``(i) an environmental impact statement; or
``(ii) any other document or analysis required to be
prepared under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.)

[[Page S830]]

``(B) Inclusions.--The term `environmental review process'
includes the process for and completion of any environmental
permit, approval, review, or study required for a project
under any Federal law other than the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(4) Project.--The term `project' means any highway or
transit project that requires the approval of the Secretary.
``(5) Project sponsor.--The term `project sponsor' means an
agency or other entity (including any private or public-
private entity), that seeks approval of the Secretary for a
project.
``(6) State transportation department.--The term `State
transportation department' means any statewide agency of a
State with responsibility for transportation.
``(b) Process.--
``(1) Lead agency.--
``(A) In general.--The Department of Transportation shall
be the lead Federal agency in the environmental review
process for a project.
``(B) Joint lead agencies.--Nothing in this section
precludes another agency from being a joint lead agency in
accordance with regulations under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(C) Concurrence of project sponsor.--The lead agency may
carry out the environmental review process in accordance with
this section only with the concurrence of the project
sponsor.
``(2) Request for process.--
``(A) In general.--A project sponsor may request that the
lead agency carry out the environmental review process for a
project or group of projects in accordance with this section.
``(B) Grant of request; public notice.--The lead agency
shall--
``(i) grant a request under subparagraph (A); and
``(ii) provide public notice of the request.
``(3) Effective date.--The environmental review process
described in this section may be applied to a project only
after the date on which public notice is provided under
subparagraph (B)(ii).
``(c) Roles and Responsibility of Lead Agency.--With
respect to the environmental review process for any project,
the lead agency shall have authority and responsibility to--
``(A) identify and invite cooperating agencies in
accordance with subsection (d);
``(B) develop an agency coordination plan with review,
schedule, and timelines in accordance with subsection (e);
``(C) determine the purpose and need for the project in
accordance with subsection (f);
``(D) determine the range of alternatives to be considered
in accordance with subsection (g);
``(E) convene dispute-avoidance and decision resolution
meetings and related efforts in accordance with subsection
(h);
``(F) take such other actions as are necessary and proper,
within the authority of the lead agency, to facilitate the
expeditious resolution of the environmental review process
for the project; and
``(G) prepare or ensure that any required environmental
impact statement or other document required to be completed
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) is completed in accordance with this
section and applicable Federal law.
``(d) Roles and Responsibilities of Cooperating Agencies.--
``(1) In general.--With respect to a project, each Federal
agency shall carry out any obligations of the Federal agency
in the environmental review process in accordance with this
section and applicable Federal law.
``(2) Invitation.--
``(A) In general.--The lead agency shall--
``(i) identify, as early as practicable in the
environmental review process for a project, any other
agencies that may have an interest in the project,
including--

``(I) agencies with jurisdiction over environmentally-
related matters that may affect the project or may be
required by law to conduct an environmental-related
independent review or analysis of the project or determine
whether to issue an environmental-related permit, license, or
approval for the project; and
``(II) agencies with special expertise relevant to the
project;

``(ii) invite the agencies identified in clause (i) to
become participating agencies in the environmental review
process for that project; and
``(iii) grant requests to become cooperating agencies from
agencies not originally invited.
``(B) Responses.--The deadline for receipt of a response
from an agency that receives an invitation under subparagraph
(A)(ii)--
``(i) shall be 30 days after the date of receipt by the
agency of the invitation; but
``(ii) may be extended by the lead agency for good cause.
``(3) Declining of invitations.--A Federal agency that is
invited by the lead agency to participate in the
environmental review process for a project shall be
designated as a cooperating agency by the lead agency, unless
the invited agency informs the lead agency in writing, by the
deadline specified in the invitation, that the invited
agency--
``(A) has no jurisdiction or authority with respect to the
project;
``(B) has no expertise or information relevant to the
project; and
``(C) does not intend to submit comments on the project.
``(4) Effect of designation.--Designation as a cooperating
agency under this subsection shall not imply that the
cooperating agency--
``(A) supports a proposed project; or
``(B) has any jurisdiction over, or special expertise with
respect to evaluation of, the project.
``(5) Designations for categories of projects.--
``(A) In general.--The Secretary may invite other agencies
to become cooperating agencies for a category of projects.
``(B) Designation.--An agency may be designated as a
cooperating agency for a category of projects only with the
consent of the agency.
``(6) Concurrent reviews.--Each Federal agency shall, to
the maximum extent practicable--
``(A) carry out obligations of the Federal agency under
other applicable law concurrently, and in conjunction, with
the review required under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.), unless doing so would
impair the ability of the Federal agency to carry out those
obligations; and
``(B) formulate and implement administrative, policy, and
procedural mechanisms to enable the agency to ensure
completion of the environmental review process in a timely,
coordinated, and environmentally responsible manner.
``(e) Development of Flexible Process and Timeline.--
``(1) Coordination plan.--
``(A) In general.--The lead agency shall establish a
coordination plan, which may be incorporated into a
memorandum of understanding, to coordinate agency and public
participation in and comment on the environmental review
process for a project or category of projects.
``(B) Workplan.--
``(i) In general.--The lead agency shall develop, as part
of the coordination plan, a workplan for completing the
collection, analysis, and evaluation of baseline data and
future impacts modeling necessary to complete the
environmental review process, including any data, analyses,
and modeling necessary for related permits, approvals,
reviews, or studies required for the project under other
laws.
``(ii) Consultation.--In developing the workplan under
clause (i), the lead agency shall consult with--

``(I) each cooperating agency for the project;
``(II) the State in which the project is located; and
``(III) if the State is not the project sponsor, the
project sponsor.

``(C) Schedule.--
``(i) In general.--The lead agency shall establish as part
of the coordination plan, after consultation with each
cooperating agency for the project and with the State in
which the project is located (and, if the State is not the
project sponsor, with the project sponsor), a schedule for
completion of the environmental review process for the
project.
``(ii) Factors for consideration.--In establishing the
schedule, the lead agency shall consider factors such as--

``(I) the responsibilities of cooperating agencies under
applicable laws;
``(II) resources available to the cooperating agencies;
``(III) overall size and complexity of a project;
``(IV) the overall schedule for and cost of a project; and
``(V) the sensitivity of the natural and historic resources
that could be affected by the project.

``(D) Consistency with other time periods.--A schedule
under subparagraph (C) shall be consistent with any other
relevant time periods established under Federal law.
``(E) Modification.--The lead agency may--
``(i) lengthen a schedule established under subparagraph
(C) for good cause; and
``(ii) shorten a schedule only with the concurrence of the
affected cooperating agencies.
``(F) Dissemination.--A copy of a schedule under
subparagraph (C), and of any modifications to the schedule,
shall be--
``(i) provided to all cooperating agencies and to the State
transportation department of the State in which the project
is located (and, if the State is not the project sponsor, to
the project sponsor); and
``(ii) made available to the public.
``(2) Comments and timelines.--
``(A) In general.--A schedule established under paragraph
(1)(C) shall include--
``(i) opportunities for comment, deadline for receipt of
any comments submitted, deadline for lead agency response to
comments; and
``(ii) except as otherwise provided under paragraph (1)--

``(I) an opportunity to comment by agencies and the public
on a draft or final environmental impact statement for a
period of not more than 60 days longer than the minimum
period required under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.); and
``(II) for all other comment periods established by the
lead agency for agency or public comments in the
environmental review process, a period of not more than the
longer of--

``(aa) 30 days after the final day of the minimum period
required under Federal law (including regulations), if
available; or

[[Page S831]]

``(bb) if a minimum period is not required under Federal
law (including regulations), 30 days.
``(B) Extension of comment periods.--The lead agency may
extend a period of comment established under this paragraph
for good cause.
``(C) Late comments.--A comment concerning a project
submitted under this paragraph after the date of termination
of the applicable comment period or extension of a comment
period shall not be eligible for consideration by the lead
agency unless the lead agency or project sponsor determines
there was good cause for the delay or the lead agency is
required to consider significant new circumstances or
information in accordance with sections 1501.7 and 1502.9 of
title 40, Code of Federal Regulations.
``(D) Deadlines for decisions under other laws.--In any
case in which a decision under any Federal law relating to a
project (including the issuance or denial of a permit or
license) is required to be made by the later of the date that
is 180 days after the date on which the Secretary made all
final decisions of the lead agency with respect to the
project, or 180 days after the date on which an application
was submitted for the permit or license, the Secretary shall
submit to the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives--
``(i) as soon as practicable after the 180-day period, an
initial notice of the failure of the Federal agency to make
the decision; and
``(ii) every 60 day thereafter until such date as all
decisions of the Federal agency relating to the project have
been made by the Federal agency, an additional notice that
describes the number of decisions of the Federal agency that
remain outstanding as of the date of the additional notice.
``(3) Involvement of the public.--Nothing in this
subsection shall reduce any time period provided for public
comment in the environmental review process under existing
Federal law (including a regulation).
``(f) Development of Project Purpose and Need Statement.--
``(1) In general.--With respect to the environmental review
process for a project, the purpose and need for the project
shall be defined in accordance with this subsection.
``(2) Authority.--The lead agency shall define the purpose
and need for a project, including the transportation
objectives and any other objectives intended to be achieved
by the project.
``(3) Involvement of cooperating agencies and the public.--
Before determining the purpose and need for a project, the
lead agency shall solicit for 30 days, and consider, any
relevant comments on the draft statement of purpose and need
for a proposed project received from the public and
cooperating agencies.
``(4) Effect on other reviews.--For the purpose of
compliance with the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) and any other law requiring an
agency that is not the lead agency to determine or consider a
project purpose or project need, such an agency acting,
permitting, or approving under, or otherwise applying,
Federal law with respect to a project shall adopt the
determination of purpose and need for the project made by the
lead agency.
``(5) Savings.--Nothing in this subsection preempts or
interferes with any power, jurisdiction, responsibility, or
authority of an agency under applicable law (including
regulations) with respect to a project.
``(6) Contents.--
``(A) In general.--The statement of purpose and need shall
include a clear statement of the objectives that the proposed
project is intended to achieve.
``(B) Effect on existing standards.--Nothing in this
subsection shall alter existing standards for defining the
purpose and need of a project.
``(7) Factors to consider.--The lead agency may determine
that any of the following factors and documents are
appropriate for consideration in determining the purpose of
and need for a project:
``(A) Transportation plans and related planning documents
developed through the statewide and metropolitan
transportation planning process under sections 134 and 135.
``(B) Land use plans adopted by units of State, local, or
tribal government (or, in the case of Federal land, by the
applicable Federal land management agencies).
``(C) Economic development plans adopted by--
``(i) units of State, local, or tribal government; or
``(ii) established economic development planning
organizations or authorities.
``(D) Environmental protection plans, including plans for
the protection or treatment of--
``(i) air quality;
``(ii) water quality and runoff;
``(iii) habitat needs of plants and animals;
``(iv) threatened and endangered species;
``(v) invasive species;
``(vi) historic properties; and
``(vii) other environmental resources.
``(E) Any publicly available plans or policies relating to
the national defense, national security, or foreign policy of
the United States.
``(g) Development of Project Alternatives.--
``(1) In general.--With respect to the environmental review
process for a project, the alternatives shall be determined
in accordance with this subsection.
``(2) Authority.--The lead agency shall determine the
alternatives to be considered for a project.
``(3) Involvement of cooperating agencies and the public.--
``(A) In general.--Before determining the alternatives for
a project, the lead agency shall solicit for 30 days and
consider any relevant comments on the proposed alternatives
received from the public and cooperating agencies.
``(B) Alternatives.--The lead agency shall consider--
``(i) alternatives that meet the purpose and need of the
project; and
``(ii) the alternative of no action.
``(C) Effect on existing standards.--Nothing in this
subsection shall alter the existing standards for determining
the range of alternatives.
``(4) Effect on other reviews.--Any other agency acting
under or applying Federal law with respect to a project shall
consider only the alternatives determined by the lead agency.
``(5) Savings.--Nothing in this subsection preempts or
interferes with any power, jurisdiction, responsibility, or
authority of an agency under applicable law (including
regulations) with respect to a project.
``(6) Factors to consider.--The lead agency may determine
that any of the following factors and documents are
appropriate for consideration in determining the alternatives
for a project:
``(A) The overall size and complexity of the proposed
action.
``(B) The sensitivity of the potentially affected
resources.
``(C) The overall schedule and cost of the project.
``(D) Transportation plans and related planning documents
developed through the statewide and metropolitan
transportation planning process under sections 134 and 135 of
title 23 of the United States Code.
``(E) Land use plans adopted by units of State, local, or
tribal government (or, in the case of Federal land, by the
applicable Federal land management agencies).
``(F) Economic development plans adopted by--
``(i) units of State, local, or tribal government; or
``(ii) established economic development planning
organizations or authorities.
``(G) environmental protection plans, including plans for
the protection or treatment of--
``(i) air quality;
``(ii) water quality and runoff;
``(iii) habitat needs of plants and animals;
``(iv) threatened and endangered species;
``(v) invasive species;
``(vi) historic properties; and
``(vii) other environmental resources.
``(H) Any publicly available plans or policies relating to
the national defense, national security, or foreign policy of
the United States.
``(h) Prompt Issue Identification and Resolution Process.--
``(1) In general.--The lead agency, the project sponsor,
and the cooperating agencies shall work cooperatively, in
accordance with this section, to identify and resolve issues
that could--
``(A) delay completion of the environmental review process;
or
``(B) result in denial of any approvals required for the
project under applicable laws.
``(2) Lead agency responsibilities.--
``(A) In general.--The lead agency, with the assistance of
the project sponsor, shall make information available to the
cooperating agencies, as early as practicable in the
environmental review process, regarding--
``(i) the environmental and socioeconomic resources located
within the project area; and
``(ii) the general locations of the alternatives under
consideration.
``(B) Basis for information.--Information about resources
in the project area may be based on existing data sources,
including geographic information systems mapping.
``(3) Cooperating agency responsibilities.--
``(A) In general.--Based on information received from the
lead agency, cooperating agencies shall promptly identify to
the lead agency any major issues of concern regarding the
potential environmental or socioeconomic impacts of a
project.
``(B) Major issues of concern.--A major issue of concern
referred to in subparagraph (A) may include any issue that
could substantially delay or prevent an agency from granting
a permit or other approval that is needed for a project, as
determined by a cooperating agency.
``(4) Issue resolution.--On identification of a major issue
of concern under paragraph (3), or at any time upon the
request of a project sponsor or the Governor of a State, the
lead agency shall promptly convene a meeting with
representatives of each of the relevant cooperating agencies,
the project sponsor, and the Governor to address and resolve
the issue.
``(5) Notification.--If a resolution of a major issue of
concern under paragraph (4) cannot be achieved by the date
that is 30 days after the date on which a meeting under that
paragraph is convened, the lead agency shall provide
notification of the failure to resolve the major issue of
concern to--
``(A) the heads of all cooperating agencies;
``(B) the project sponsor;
``(C) the Governor involved;

[[Page S832]]

``(D) the Committee on Environment and Public Works of the
Senate; and
``(E) the Committee on Transportation and Infrastructure of
the House of Representatives.
``(i) Performance Measurement.--
``(1) Progress reports.--The Secretary shall establish a
program to measure and report on progress toward improving
and expediting the planning and environmental review process.
``(2) Minimum requirements.--The program shall include, at
a minimum--
``(A) the establishment of criteria for measuring
consideration of--
``(i) State and metropolitan planning, project planning,
and design criteria; and
``(ii) environmental processing times and costs;
``(B) the collection of data to assess performance based on
the established criteria; and
``(C) the annual reporting of the results of the
performance measurement studies.
``(3) Involvement of the public and cooperating agencies.--
``(A) In general.--The Secretary shall biennially conduct a
survey of agencies participating in the environmental review
process under this section to assess the expectations and
experiences of each surveyed agency with regard to the
planning and environmental review process for projects
reviewed under this section.
``(B) Public participation.--In conducting the survey, the
Secretary shall solicit comments from the public.
``(j) Assistance to Affected Federal and State Agencies.--
``(1) In general.--The Secretary may approve a request by a
State or recipient to provide funds made available under this
title for a highway project, or made available under chapter
53 of title 49 for a mass transit project, to agencies
participating in the coordinated environmental review process
established under this section in order to provide the
resources necessary to meet any time limits established under
this section.
``(2) Amounts.--Such requests under paragraph (1) shall be
approved only--
``(A) for such additional amounts as the Secretary
determines are necessary for the affected Federal and State
agencies to meet the time limits for environmental review;
and
``(B) if those time limits are less than the customary time
necessary for that review.
``(k) Judicial Review and Savings Clause.--
``(1) Judicial review.--Nothing in this section shall
affect the reviewability of any final Federal agency action
in any United States district court or State court.
``(2) Savings clause.--Nothing in this section shall
affect--
``(A) the applicability of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other
Federal environmental statute; or
``(B) the responsibility of any Federal officer to comply
with or enforce such a statute.''.
(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 325 (as added by section 1203(f)) the following:

``326. Transportation project development process.''.

(2) Section 1309 of the Transportation Equity Act for the
21st Century (112 Stat. 232) is repealed.

SEC. 1512. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL
EXCLUSIONS.

(a) In General.--Chapter 3 of title 23, United States Code
(as amended by section 1511(a)), is amended by inserting
after section 326 the following:

``Sec. 327. Assumption of responsibility for categorical
exclusions

``(a) Categorical Exclusion Determinations.--
``(1) In general.--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 under part 1500 of title 40, Code of Federal
Regulations (as in effect on October 1, 2003).
``(2) Scope of authority.--A determination described in
paragraph (1) shall be made by a State in accordance with
criteria established by the Secretary and only for types of
activities specifically designated by the Secretary.
``(3) Criteria.--The criteria under paragraph (2) shall
include provisions for public availability of information
consistent with section 552 of title 5 and the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(b) Other Applicable Federal Laws.--
``(1) In general.--If a State assumes responsibility under
subsection (a), the Secretary may also assign and the State
may assume all or part of the responsibilities of the
Secretary 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, subject to the
same procedural and substantive requirements as would be
required if that responsibility were carried out by the
Secretary.
``(2) Sole responsibility.--A State that assumes
responsibility under paragraph (1) with respect to a Federal
law shall be solely responsible and solely liable for
complying with and carrying out that law, and the Secretary
shall have no such responsibility or liability.
``(c) Memoranda of Understanding.--
``(1) In general.--The Secretary and the State, after
providing public notice and opportunity for comment, shall
enter into a memorandum of understanding setting forth the
responsibilities to be assigned under this section and the
terms and conditions under which the assignments are made,
including establishment of the circumstances under which the
Secretary would reassume responsibility for categorical
exclusion determinations.
``(2) Term.--A memorandum of understanding--
``(A) shall have term of not more than 3 years; and
``(B) shall be renewable.
``(3) Acceptance of jurisdiction.--In a 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 that the State assumes.
``(4) Monitoring.--The Secretary shall--
``(A) monitor compliance by the State with the memorandum
of understanding and the provision by the State of financial
resources to carry out the memorandum of understanding; and
``(B) take into account the performance by the State when
considering renewal of the memorandum of understanding.
``(d) Termination.--The Secretary may terminate any
assumption of responsibility under a memorandum of
understanding on a determination that the State is not
adequately carrying out the responsibilities assigned to the
State.
``(e) State Agency Deemed To Be Federal Agency.--A State
agency that is assigned a responsibility under a memorandum
of understanding shall be deemed to be a Federal agency for
the purposes of the Federal law under which the
responsibility is exercised.''.
(b) Conforming Amendment.--The analysis for chapter 3 of
title 23, United States Code (as amended by section 1511(b)),
is amended by inserting after the item relating to section
326 the following:

``327. Assumption of responsibility for categorical exclusions.''.

SEC. 1513. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT
PROGRAM.

(a) In General.--Chapter 3 of title 23, United States Code
(as amended by section 1512(a)), is amended by inserting
after section 327 the following:

``Sec. 328. Surface transportation project delivery pilot
program

``(a) Establishment.--
``(1) In general.--The Secretary shall carry out a surface
transportation project delivery pilot program (referred to in
this section as the `program').
``(2) Assumption of responsibility.--
``(A) In general.--Subject to the other provisions of this
section, with the written agreement of the Secretary and a
State, which may be in the form of a memorandum of
understanding, the Secretary may assign, and the State may
assume, the responsibilities of the Secretary with respect to
1 or more highway projects within the State under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
``(B) Additional responsibility.--If a State assumes
responsibility under subparagraph (A)--
``(i) the Secretary may assign to the State, and the State
may assume, all or part of the responsibilities of the
Secretary for environmental review, consultation, or other
action required under any Federal environmental law
pertaining to the review or approval of a specific project;
but
``(ii) the Secretary may not assign--

``(I) responsibility for any conformity determination
required under section 176 of the Clean Air Act (42 U.S.C.
7506); or
``(II) any responsibility imposed on the Secretary by
section 134 or 135.

``(C) Procedural and substantive requirements.--A State
shall assume responsibility under this section subject to the
same procedural and substantive requirements as would apply
if that responsibility were carried out by the Secretary.
``(D) Federal responsibility.--Any responsibility of the
Secretary not explicitly assumed by the State by written
agreement under this section shall remain the responsibility
of the Secretary.
``(E) No effect on authority.--Nothing in this section
preempts or interferes with any power, jurisdiction,
responsibility, or authority of an agency, other than the
Department of Transportation, under applicable law (including
regulations) with respect to a project.
``(b) State Participation.--
``(1) Number of participating states.--The Secretary may
permit not more than 5 States (including the State of
Oklahoma) to participate in the program.
``(2) Application.--Not later than 270 days after the date
of enactment of this section, the Secretary shall promulgate
regulations that establish requirements relating to
information required to be contained in any application of a
State to participate in the program, including, at a
minimum--

[[Page S833]]

``(A) the projects or classes of projects for which the
State anticipates exercising the authority that may be
granted under the program;
``(B) verification of the financial resources necessary to
carry out the authority that may be granted under the
program; and
``(C) evidence of the notice and solicitation of public
comment by the State relating to participation of the State
in the program, including copies of comments received from
that solicitation.
``(3) Public notice.--
``(A) In general.--Each State that submits an application
under this subsection shall give notice of the intent of the
State to participate in the program not later than 30 days
before the date of submission of the application.
``(B) Method of notice and solicitation.--The State shall
provide notice and solicit public comment under this
paragraph by publishing the complete application of the State
in accordance with the appropriate public notice law of the
State.
``(4) Selection criteria.--The Secretary may approve the
application of a State under this section only if--
``(A) the regulatory requirements under paragraph (2) have
been met;
``(B) the Secretary determines that the State has the
capability, including financial and personnel, to assume the
responsibility; and
``(C) the head of the State agency having primary
jurisdiction over highway matters enters into a written
agreement with the Secretary described in subsection (c).
``(5) Other federal agency views.--If a State applies to
assume a responsibility of the Secretary that would have
required the Secretary to consult with another Federal
agency, the Secretary shall solicit the views of the Federal
agency before approving the application.
``(c) Written Agreement.--A written agreement under this
section shall--
``(1) be executed by the Governor or the top-ranking
transportation official in the State who is charged with
responsibility for highway construction;
``(2) be in such form as the Secretary may prescribe;
``(3) provide that the State--
``(A) agrees to assume all or part of the responsibilities
of the Secretary described in subsection (a);
``(B) expressly consents, on behalf of the State, to accept
the jurisdiction of the Federal courts for the compliance,
discharge, and enforcement of any responsibility of the
Secretary assumed by the State;
``(C) certifies that State laws (including regulations) are
in effect that--
``(i) authorize the State to take the actions necessary to
carry out the responsibilities being assumed; and
``(ii) are comparable to section 552 of title 5, including
providing that any decision regarding the public availability
of a document under those State laws is reviewable by a court
of competent jurisdiction; and
``(D) agrees to maintain the financial resources necessary
to carry out the responsibilities being assumed.
``(d) Jurisdiction.--
``(1) In general.--The United States district courts shall
have exclusive jurisdiction over any civil action against a
State for failure to carry out any responsibility of the
State under this section.
``(2) Legal standards and requirements.--A civil action
under paragraph (1) shall be governed by the legal standards
and requirements that would apply in such a civil action
against the Secretary had the Secretary taken the actions in
question.
``(3) Intervention.--The Secretary shall have the right to
intervene in any action described in paragraph (1).
``(e) Effect of Assumption of Responsibility.--A State that
assumes responsibility under subsection (a)(2) shall be
solely responsible and solely liable for carrying out, in
lieu of the Secretary, the responsibilities assumed under
subsection (a)(2), until the program is terminated as
provided in subsection (i).
``(f) Limitations on Agreements.--Nothing in this section
permits a State to assume any rulemaking authority of the
Secretary under any Federal law.
``(g) Audits.--
``(1) In general.--To ensure compliance by a State with any
agreement of the State under subsection (c)(1) (including
compliance by the State with all Federal laws for which
responsibility is assumed under subsection (a)(2)), for each
State participating in the program under this section, the
Secretary shall conduct--
``(A) semiannual audits during each of the first 2 years of
State participation; and
``(B) annual audits during each subsequent year of State
participation.
``(2) Public availability and comment.--
``(A) In general.--An audit conducted under paragraph (1)
shall be provided to the public for comment.
``(B) Response.--Not later than 60 days after the date on
which the period for public comment ends, the Secretary shall
respond to public comments received under subparagraph (A).
``(h) Report to Congress.--The Secretary shall submit to
Congress an annual report that describes the administration
of the program.
``(i) Termination.--
``(1) In general.--Except as provided in paragraph (2), the
program shall terminate on the date that is 6 years after the
date of enactment of this section.
``(2) Termination by secretary.--The Secretary may
terminate the participation of any State in the program if--
``(A) the Secretary determines that the State is not
adequately carrying out the responsibilities assigned to the
State;
``(B) the Secretary provides to the State--
``(i) notification of the determination of noncompliance;
and
``(ii) a period of at least 30 days during which to take
such corrective action as the Secretary determines is
necessary to comply with the applicable agreement; and
``(C) the State, after the notification and period provided
under subparagraph (B), fails to take satisfactory corrective
action, as determined by Secretary.''.
(b) Conforming Amendment.--The analysis for chapter 3 of
title 23, United States Code (as amended by section 1512(b)),
is amended by inserting after the item relating to section
327 the following:

``328. Surface transportation project delivery pilot program.''.

SEC. 1514. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL
REFUGES, AND HISTORIC SITES.

(a) Programs and Projects With De Minimis Impacts.--
(1) Title 23.--Section 138 of title 23, United States Code,
is amended--
(A) in the first sentence, by striking ``It is hereby'' and
inserting the following:
``(a) Declaration of Policy.--It is''; and
(B) by adding at the end the following:
``(b) De Minimis Impacts.--
``(1) Requirements.--
``(A) In general.--The requirements of this section shall
be considered to be satisfied with respect to an area
described in paragraph (2) or (3) if the Secretary
determines, in accordance with this subsection, that a
transportation program or project will have a de minimis
impact on the area.
``(B) Criteria.--In making any determination under this
subsection, the Secretary shall consider to be part of a
transportation program or project any avoidance,
minimization, mitigation, or enhancement measures that are
required to be implemented as a condition of approval of the
transportation program or project.
``(2) Historic sites.--With respect to historic sites, the
Secretary may make a finding of de minimis impact only if--
``(A) the Secretary has determined, in accordance with the
consultation process required under section 106 of the
National Historic Preservation Act (16 U.S.C. 470f), that--
``(i) the transportation program or project will have no
adverse effect on the historic site; or
``(ii) there will be no historic properties affected by the
transportation program or project;
``(B) the finding of the Secretary has received written
concurrence from the applicable State historic preservation
officer or tribal historic preservation officer (and from the
Advisory Council on Historic Preservation, if participating
in the consultation); and
``(C) the finding of the Secretary has been developed in
consultation with parties consulting as part of the process
referred to in subparagraph (A).
``(3) Parks, recreation areas, and wildlife and waterfowl
refuges.--With respect to parks, recreation areas, and
wildlife or waterfowl refuges, the Secretary may make a
finding of de minimis impact only if--
``(A) the Secretary has determined, in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) (including public notice and opportunity for public
review and comment), that the transportation program or
project will not adversely affect the activities, features,
and attributes of the park, recreation area, or wildlife or
waterfowl refuge eligible for protection under this section;
and
``(B) the finding of the Secretary has received concurrence
from the officials with jurisdiction over the park,
recreation area, or wildlife or waterfowl refuge.''.
(2) Title 49.--Section 303 of title 49, United States Code,
is amended--
(A) by striking ``(c) The Secretary'' and inserting the
following:
``(c) Approval of Programs and Projects.--Subject to
subsection (d), the Secretary''; and
(B) by adding at the end the following:
``(d) De Minimis Impacts.--
``(1) Requirements.--
``(A) In general.--The requirements of this section shall
be considered to be satisfied with respect to an area
described in paragraph (2) or (3) if the Secretary
determines, in accordance with this subsection, that a
transportation program or project will have a de minimis
impact on the area.
``(B) Criteria.--In making any determination under this
subsection, the Secretary shall consider to be part of a
transportation program or project any avoidance,
minimization, mitigation, or enhancement measures that are
required to be implemented as a condition of approval of the
transportation program or project.
``(2) Historic sites.--With respect to historic sites, the
Secretary may make a finding of de minimis impact only if--
``(A) the Secretary has determined, in accordance with the
consultation process required under section 106 of the
National Historic Preservation Act (16 U.S.C. 470f), that--

[[Page S834]]

``(i) the transportation program or project will have no
adverse effect on the historic site; or
``(ii) there will be no historic properties affected by the
transportation program or project;
``(B) the finding of the Secretary has received written
concurrence from the applicable State historic preservation
officer or tribal historic preservation officer (and from the
Advisory Council on Historic Preservation, if participating
in the consultation); and
``(C) the finding of the Secretary has been developed in
consultation with parties consulting as part of the process
referred to in subparagraph (A).
``(3) Parks, recreation areas, and wildlife and waterfowl
refuges.--With respect to parks, recreation areas, and
wildlife or waterfowl refuges, the Secretary may make a
finding of de minimis impact only if--
``(A) the Secretary has determined, in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) (including public notice and opportunity for public
review and comment), that the transportation program or
project will not adversely affect the activities, features,
and attributes of the park, recreation area, or wildlife or
waterfowl refuge eligible for protection under this section;
and
``(B) the finding of the Secretary has received concurrence
from the officials with jurisdiction over the park,
recreation area, or wildlife or waterfowl refuge.''.
(b) Clarification of Existing Standards.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall (in consultation
with affected agencies and interested parties) promulgate
regulations that clarify the factors to be considered and the
standards to be applied in determining the prudence and
feasibility of alternatives under section 138 of title 23 and
section 303 of title 49, United States Code.
(2) Requirements.--The regulations--
(A) shall clarify the application of the legal standards to
a variety of different types of transportation programs and
projects depending on the circumstances of each case; and
(B) may include, as appropriate, examples to facilitate
clear and consistent interpretation by agency decisionmakers.
(c) Implementation Study.--
(1) In general.--The Secretary and the Transportation
Research Board of the National Academy of Sciences shall
jointly conduct a study on the implementation of this section
and the amendments made by this section.
(2) Components.--In conducting the study, the Secretary and
the Transportation Research Board shall evaluate--
(A) the processes developed under this section and the
amendments made by this section and the efficiencies that may
result;
(B) the post-construction effectiveness of impact
mitigation and avoidance commitments adopted as part of
projects conducted under this section and the amendments made
by this section; and
(C) the quantity of projects with impacts that are
considered de minimis under this section and the amendments
made by this section, including information on the location,
size, and cost of the projects.
(3) Report requirement.--The Secretary and the
Transportation Research Board shall prepare--
(A) not earlier than the date that is 4 years after the
date of enactment of this Act, a report on the results of the
study conducted under this subsection; and
(B) not later than September 30, 2009, an update on the
report required under subparagraph (A).
(4) Report recipients.--The Secretary and the
Transportation Research Board shall--
(A) submit the report and update required under paragraph
(3) to--
(i) the appropriate committees of Congress;
(ii) the Secretary of the Interior; and
(iii) the Advisory Council on Historic Preservation; and
(B) make the report and update available to the public.

SEC. 1515. REGULATIONS.

Except as provided in section 1513, not later than 1 year
after the date of enactment of this Act, the Secretary shall
promulgate regulations necessary to implement the amendments
made by chapter 1 and this chapter.

CHAPTER 3--MISCELLANEOUS

SEC. 1521. CRITICAL REAL PROPERTY ACQUISITION.

Section 108 of title 23, United States Code, is amended by
adding at the end the following:
``(d) Critical Real Property Acquisition.--
``(1) In general.--Subject to paragraph (2), funds
apportioned to a State under this title may be used to pay
the costs of acquiring any real property that is determined
to be critical under paragraph (2) for a project proposed for
funding under this title.
``(2) Reimbursement.--The Federal share of the costs
referred to in paragraph (1) shall be eligible for
reimbursement out of funds apportioned to a State under this
title if, before the date of acquisition, the Secretary
determines that--
``(A) the property is offered for sale on the open market;
``(B) in acquiring the property, the State will comply with
the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.);
and
``(C) immediate acquisition of the property is critical
because--
``(i) based on an appraisal of the property, the value of
the property is increasing significantly;
``(ii) there is an imminent threat of development or
redevelopment of the property; and
``(iii) the property is necessary for the implementation of
the goals stated in the proposal for the project.
``(3) Applicable law.--An acquisition of real property
under this section shall be considered to be an exempt
project under section 176 of the Clean Air Act (42 U.S.C.
7506).
``(4) Environmental review.--
``(A) In general.--A project proposed to be conducted under
this title shall not be conducted on property acquired under
paragraph (1) until all required environmental reviews for
the project have been completed.
``(B) Effect on consideration of project alternatives.--The
number of critical acquisitions of real property associated
with a project shall not affect the consideration of project
alternatives during the environmental review process.
``(5) Proceeds from the sale or lease of real property.--
Section 156(c) shall not apply to the sale, use, or lease of
any real property acquired under paragraph (1).''.

SEC. 1522. PLANNING CAPACITY BUILDING INITIATIVE.

Section 104 of title 23, United States Code, is amended by
adding at the end the following:
``(m) Planning Capacity Building Initiative.--
``(1) In general.--The Secretary shall carry out a planning
capacity building initiative to support enhancements in
transportation planning to--
``(A) strengthen the processes and products of metropolitan
and statewide transportation planning under this title;
``(B) enhance tribal capacity to conduct joint
transportation planning under chapter 2;
``(C) participate in the metropolitan and statewide
transportation planning programs under this title; and
``(D) increase the knowledge and skill level of
participants in metropolitan and statewide transportation.
``(2) Priority.--The Secretary shall give priority to
planning practices and processes that support--
``(A) the transportation elements of homeland security
planning, including--
``(i) training and best practices relating to emergency
evacuation;
``(ii) developing materials to assist areas in coordinating
emergency management and transportation officials; and
``(iii) developing training on how planning organizations
may examine security issues;
``(B) performance-based planning, including--
``(i) data and data analysis technologies to be shared with
States, metropolitan planning organizations, local
governments, and nongovernmental organizations that--

``(I) participate in transportation planning;
``(II) use the data and data analysis to engage in
metropolitan, tribal, or statewide transportation planning;
``(III) involve the public in the development of
transportation plans, projects, and alternative scenarios;
and
``(IV) develop strategies to avoid, minimize, and mitigate
the impacts of transportation facilities and projects; and

``(ii) improvement of the quality of congestion management
systems, including the development of--

``(I) a measure of congestion;
``(II) a measure of transportation system reliability; and
``(III) a measure of induced demand;

``(C) safety planning, including--
``(i) development of State strategic safety plans
consistent with section 148;
``(ii) incorporation of work zone safety into planning; and
``(iii) training in the development of data systems
relating to highway safety;
``(D) operations planning, including--
``(i) developing training of the integration of
transportation system operations and management into the
transportation planning process; and
``(ii) training and best practices relating to regional
concepts of operations;
``(E) freight planning, including--
``(i) modeling of freight at a regional and statewide
level; and
``(ii) techniques for engaging the freight community with
the planning process;
``(F) air quality planning, including--
``(i) assisting new and existing nonattainment and
maintenance areas in developing the technical capacity to
perform air quality conformity analysis;
``(ii) providing training on areas such as modeling and
data collection to support air quality planning and analysis;
``(iii) developing concepts and techniques to assist areas
in meeting air quality performance timeframes; and
``(iv) developing materials to explain air quality issues
to decisionmakers and the public; and
``(G) integration of environment and planning.
``(3) Use of funds.--The Secretary shall use amounts made
available under paragraph (4) to make grants to, or enter
into contracts, cooperative agreements, and other
transactions with, a Federal agency, State agency, local
agency, federally recognized

[[Page S835]]

Indian tribal government or tribal consortium, authority,
association, nonprofit or for-profit corporation, or
institution of higher education for research, program
development, information collection and dissemination, and
technical assistance.
``(4) Set-aside.--
``(A) In general.--On October 1 of each fiscal year, of the
funds made available under subsection (a), the Secretary
shall set aside $4,000,000 to carry out this subsection.
``(B) Federal share.--The Federal share of the cost of an
activity carried out using funds made available under
subparagraph (A) shall be 100 percent.
``(C) Availability.--Funds made available under
subparagraph (A) shall remain available until expended.''.

Subtitle F--Environment

SEC. 1601. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT;
CONTROL OF INVASIVE PLANT SPECIES AND
ESTABLISHMENT OF NATIVE SPECIES.

(a) Modification to NHS/STP for Environmental Restoration,
Pollution Abatement, and Invasive Species.--
(1) Modifications to national highway system.--Section
103(b)(6) of title 23, United States Code, is amended by
adding at the end the following:
``(Q) Environmental restoration and pollution abatement in
accordance with section 165.
``(R) Control of invasive plant species and establishment
of native species in accordance with section 166.''.
(2) Modifications to surface transportation program.--
Section 133(b) of title 23, is amended by striking paragraph
(14) and inserting the following:
``(14) Environmental restoration and pollution abatement in
accordance with section 165.
``(15) Control of invasive plant species and establishment
of native species in accordance with section 166.''.
(b) Eligible Activities.--Subchapter I of chapter 1 of
title 23, United States Code, is amended by adding at the end
the following:

``Sec. 165. Eligibility for environmental restoration and
pollution abatement

``(a) In General.--Subject to subsection (b), environmental
restoration and pollution abatement to minimize or mitigate
the impacts of any transportation project funded under this
title (including retrofitting and construction of storm water
treatment systems to meet Federal and State requirements
under sections 401 and 402 of the Federal Water Pollution
Control Act (33 U.S.C. 1341, 1342)) may be carried out to
address water pollution or environmental degradation caused
wholly or partially by a transportation facility.
``(b) Maximum Expenditure.--In a case in which a
transportation facility is undergoing reconstruction,
rehabilitation, resurfacing, or restoration, the expenditure
of funds under this section for environmental restoration or
pollution abatement described in subsection (a) shall not
exceed 20 percent of the total cost of the reconstruction,
rehabilitation, resurfacing, or restoration of the facility.

``Sec. 166. Control of invasive plant species and
establishment of native species

``(a) Definitions.--In this section:
``(1) Invasive plant species--The term `invasive plant
species' means a nonindigenous species the introduction of
which causes or is likely to cause economic or environmental
harm or harm to human health.
``(2) Native plant species.--The term `native plant
species' means, with respect to a particular ecosystem, a
species that, other than as result of an introduction,
historically occurred or currently occurs in that ecosystem.
``(b) Control of Species.--
``(1) In general.--In accordance with all applicable
Federal law (including regulations), funds made available to
carry out this section may be used for--
``(A) participation in the control of invasive plant
species; and
``(B) the establishment of native species.
``(2) Included activities.--The participation and
establishment under paragraph (1) may include--
``(A) participation in statewide inventories of invasive
plant species and desirable plant species;
``(B) regional native plant habitat conservation and
mitigation;
``(C) native revegetation;
``(D) elimination of invasive species to create fuel breaks
for the prevention and control of wildfires; and
``(E) training.
``(3) Contributions.--
``(A) In general.--Subject to subparagraph (B), an activity
described in paragraph (1) may be carried out concurrently
with, in advance of, or following the construction of a
project funded under this title.
``(B) Condition for activities conducted in advance of
project construction.--An activity described in paragraph (1)
may be carried out in advance of construction of a project
only if the activity is carried out in accordance with all
applicable requirements of Federal law (including
regulations) and State transportation planning processes.''.
(c) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1406(b)), is amended by adding at the end the
following:

``165. Eligibility for environmental restoration and pollution
abatement.''.
``166. Control of invasive plant species and establishment of native
species.''.

SEC. 1602. NATIONAL SCENIC BYWAYS PROGRAM.

(a) In General.--Section 162 of title 23, United States
Code, is amended--
(1) in subsection (a)(1), by striking ``the roads as'' and
all that follows and inserting ``the roads as--
``(A) National Scenic Byways;
``(B) All-American Roads; or
``(C) America's Byways.'';
(2) in subsection (b)--
(A) in paragraph (1)(A), by striking ``designated as'' and
all that follows and inserting ``designated as--
``(i) National Scenic Byways;
``(ii) All-American Roads; or
``(iii) America's Byways; and'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``Byway or All-
American Road'' and inserting ``Byway, All-American Road, or
1 of America's Byways''; and
(ii) in subparagraph (B), by striking ``designation as a''
and all that follows and inserting ``designation as--
``(i) a National Scenic Byway;
``(ii) an All-American Road; or
``(iii) 1 of America's Byways; and''; and
(3) in subsection (c)(4), by striking ``passing lane,''.
(b) Research, Technical Assistance, Marketing, and
Promotion.--Section 162 of title 23, United States Code, is
amended--
(1) by redesignating subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively;
(2) by inserting after subsection (c) the following:
``(d) Research, Technical Assistance, Marketing, and
Promotion.--
``(1) In general.--The Secretary may carry out technical
assistance, marketing, market research, and promotion with
respect to State Scenic Byways, National Scenic Byways, All-
American Roads, and 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, or person, to carry
out projects and activities under this subsection.
``(3) Funds.--The Secretary may use not more than
$2,000,000 for each fiscal year of 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 under
this subsection to partnerships that leverage Federal funds
for research, technical assistance, marketing and
promotion.''; and
(3) in subsection (g) (as redesignated by paragraph (1)),
by striking ``80 percent'' and inserting ``the share
applicable under section 120, as adjusted under subsection
(d) of that section''.

SEC. 1603. RECREATIONAL TRAILS PROGRAM.

(a) Recreational Trails Program Formula.--Section 104(h)(1)
of title 23, United States Code, is amended--
(1) by striking ``Whenever'' and inserting the following:
``(A) In general.--In any case in which'';
(2) by striking ``research and technical assistance under
the recreational trails program and for the administration of
the National Recreational Trails Advisory Committee'' and
inserting ``research, technical assistance, and training
under the recreational trails program''; and
(3) by striking ``The Secretary'' and inserting the
following:
``(B) Contracts and agreements.--The Secretary''.
(b) Recreational Trails Program Administration.--Section
206 of title 23, United States Code, is amended--
(1) in subsection (d)--
(A) by striking paragraph (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 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 land,
construction of the trails shall be--
``(i) permissible under other law;
``(ii) necessary and recommended by a statewide
comprehensive outdoor recreation plan that is--

``(I) required under the Land and Water Conservation Fund
Act of 1965 (16 U.S.C. 460l-4 et seq.); and
``(II) 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 land, 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--

``(I) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);

[[Page S836]]

``(II) the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1600 et seq.); and
``(III) 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) development and dissemination of publications and
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.''; and
(B) in paragraph (3)--
(i) in subparagraph (D), by striking ``(2)(F)'' and
inserting ``(2)(I)''; and
(ii) by adding at the end the following:
``(E) Use of youth conservation or service corps.--A State
shall make available not less than 10 percent of the
apportionments of the State to provide grants to, or to enter
into cooperative agreements or contracts with, qualified
youth conservation or service corps to perform recreational
trails program activities.''; and
(2) in 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
``be determined in accordance with section 120'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``80 percent of'' and
inserting ``the amount determined in accordance with section
120 for''; and
(ii) in subparagraph (B), by inserting ``sponsoring the
project'' after ``Federal agency'';
(C) by striking paragraph (5);
(D) by redesignating paragraph (4) as paragraph (5);
(E) by inserting after paragraph (3) the following:
``(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 to pay 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.''; and
(F) in paragraph (5) (as redesignated by subparagraph (D)),
by striking ``80 percent'' and inserting ``the Federal share
as determined in accordance with section 120''; and
(4) in subsection (h)--
(A) in paragraph (1), by inserting after subparagraph (B)
the following:
``(C) Planning and environmental assessment costs incurred
prior to project approval.--A project funded under any of
subparagraphs (A) through (H) of subsection (d)(2) may permit
preapproval planning and environmental compliance costs
incurred not more than 18 months before project approval to
be credited toward the non-Federal share in accordance with
subsection (f).''; and
(B) by striking paragraph (2) and inserting the following:
``(2) Waiver of highway program requirements.--A project
funded under this section--
``(A) is intended to enhance recreational opportunity;
``(B) is not considered to be a highway project; and
``(C) is not subject to--
``(i) section 112, 114, 116, 134, 135, 138, 217, or 301 of
this title; or
``(ii) section 303 of title 49.''.

SEC. 1604. EXEMPTION OF INTERSTATE SYSTEM.

Subsection 103(c) of title 23, United States Code, is
amended by adding at the end the following:
``(5) Exemption of interstate system.--
``(A) In general.--Except as provided in subparagraph (B),
the Interstate System shall not be considered to be a
historic site under section 303 of title 49 or section 138 of
this title, regardless of whether the Interstate System or
portions of the Interstate System are listed on, or eligible
for listing on, the National Register of Historic Places.
``(B) Individual elements.--A portion of the Interstate
System that possesses an independent feature of historic
significance, such as a historic bridge or a highly
significant engineering feature, that would qualify
independently for listing on the National Register of
Historic Places, shall be considered to be a historic site
under section 303 of title 49 or section 138 of this title,
as applicable.''.

SEC. 1605. STANDARDS.

(a) In General.--Section 109(a) of title 23, United States
Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) consider the preservation, historic, scenic, natural
environmental, and community values.''.
(b) Context Sensitive Design.--Section 109 of title 23,
United States Code, is amended by striking subsection (p) and
inserting the following:
``(p) Context Sensitive Design.--
``(1) In general.--The Secretary shall encourage States to
design projects funded under this title that--
``(A) allow for the preservation of environmental, scenic,
or historic values;
``(B) ensure the safe use of the facility;
``(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) Approval by secretary.--Notwithstanding subsections
(b) and (c), the Secretary may approve a project described in
paragraph (1) for the National Highway System if the project
is designed to achieve the criteria specified in that
paragraph.''.

SEC. 1606. USE OF HIGH OCCUPANCY VEHICLE LANES.

Section 102 of title 23, United States Code, is amended by
striking subsection (a) and inserting the following:
``(a) High Occupancy Vehicle Lane Passenger Requirements.--
``(1) Definitions.--In this subsection:
``(A) Responsible agency.--The term `responsible agency'
means--
``(i) a State transportation department; and
``(ii) a local agency in a State that is responsible for
transportation matters.
``(B) Seriously degraded.--The term `seriously degraded',
with respect to a high occupancy vehicle lane, means, in the
case of a high occupancy vehicle lane, the minimum average
operating speed, performance threshold, and associated time
period of the high occupancy vehicle lane, calculated and
determined jointly by all applicable responsible agencies and
based on conditions unique to the roadway, are
unsatisfactory.
``(2) Requirements.--
``(A) In general.--Subject to subparagraph (B), for each
State, 1 or more responsible agencies shall establish the
occupancy requirements of vehicles operating on high
occupancy vehicle lanes.
``(B) Minimum number of occupants.--Except as provided in
paragraph (3), an occupancy requirement established under
subparagraph (A) shall--
``(i) require at least 2 occupants per vehicle for a
vehicle operating on a high occupancy vehicle lane; and
``(ii) in the case of a high occupancy vehicle lane that
traverses an adjacent State, be established in consultation
with the adjacent State.
``(3) Exceptions to hov occupancy requirements.--
``(A) Motorcycles.--For the purpose of this subsection, a
motorcycle--
``(i) shall not be considered to be a single occupant
vehicle; and
``(ii) shall be allowed to use a high occupancy vehicle
lane unless a responsible agency--

``(I) certifies to the Secretary the use of a high
occupancy vehicle lane by a motorcycle would create a safety
hazard; and
``(II) restricts that the use of the high occupancy vehicle
lane by motorcycles.

``(B) Low emission and energy-efficient vehicles.--
``(i) Definition of low emission and energy-efficient
vehicle.--In this subparagraph, the term `low emission and
energy-efficient vehicle' means a vehicle that has been
certified by the Administrator of the Environmental
Protection Agency--

``(I)(aa) to have a 45-mile per gallon or greater fuel
economy highway rating; or
``(bb) to qualify as an alternative fueled vehicle under
section 301 of the Energy Policy Act of 1992 (42 U.S.C.
13211); and
``(II) as meeting Tier II emission level established in
regulations promulgated 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.

``(ii) Exemption for low emission and energy-efficient
vehicles.--A responsible agency may permit qualifying low
emission and energy-efficient vehicles that do not meet
applicable occupancy requirements (as determined by the
responsible agency) to use high occupancy vehicle lanes if
the responsible agency--

``(I) establishes a program that addresses how those
qualifying low emission and energy-efficient vehicles are
selected and certified;
``(II) establishes requirements for labeling qualifying low
emission and energy-efficient vehicles (including procedures
for enforcing those requirements);
``(III) continuously monitors, evaluates, and reports to
the Secretary on performance; and
``(IV) imposes such restrictions on the use on high
occupancy vehicle lanes by vehicles that do not satisfy
established occupancy requirements as are necessary to ensure
that the performance of individual high occupancy vehicle
lanes, and the entire high occupancy vehicle lane system,
will not become seriously degraded.

``(C) Tolling of vehicles.--

[[Page S837]]

``(i) In general.--A responsible agency may permit
vehicles, in addition to the vehicles described in paragraphs
(A), (B), and (D) that do not satisfy established occupancy
requirements, to use a high occupancy vehicle lane only if
the responsible agency charges those vehicles a toll.
``(ii) Applicable authority.--In imposing a toll under
clause (i), a responsible agency shall--

``(I) be subject to section 129;
``(II) establish a toll program that addresses ways in
which motorists may enroll and participate in the program;
``(III) develop, manage, and maintain a system that will
automatically collect the tolls from covered vehicles;
``(IV) continuously monitor, evaluate, and report on
performance of the system;
``(V) establish such policies and procedures as are
necessary--

``(aa) to vary the toll charged in order to manage the
demand for use of high occupancy vehicle lanes; and
``(bb) to enforce violations; and

``(VI) establish procedures to impose such restrictions on
the use of high occupancy vehicle lanes by vehicles that do
not satisfy established occupancy requirements as are
necessary to ensure that the performance of individual high
occupancy vehicle lanes, and the entire high occupancy
vehicle lane system, will not become seriously degraded.

``(D) Designated public transportation vehicles.--
``(i) Definition of designated public transportation
vehicle.--In this subparagraph, the term `designated public
transportation vehicle' means a vehicle that--

``(I) provides designated public transportation (as defined
in section 221 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12141)); and
``(II)(aa) is owned or operated by a public entity; or
``(bb) is operated under a contract with a public entity.

``(ii) Use of high occupancy vehicle lanes.--A responsible
agency may permit designated public transportation vehicles
that do not satisfy established occupancy requirements to use
high occupancy vehicle lanes if the responsible agency--

``(I) requires the clear and identifiable labeling of each
designated public transportation vehicle operating under a
contract with a public entity with the name of the public
entity on all sides of the vehicle;
``(II) continuously monitors, evaluates, and reports on
performance of those designated public transportation
vehicles; and
``(III) imposes such restrictions on the use of high
occupancy vehicle lanes by designated public transportation
vehicles as are necessary to ensure that the performance of
individual high occupancy vehicle lanes, and the entire high
occupancy vehicle lane system, will not become seriously
degraded.

``(E) HOV lane management, operation, and monitoring.--
``(i) In general.--A responsible agency that permits any of
the exceptions specified in this paragraph shall comply with
clauses (ii) and (iii).
``(ii) Performance monitoring, evaluation, and reporting.--
A responsible agency described in clause (i) shall establish,
manage, and support a performance monitoring, evaluation, and
reporting program under which the responsible agency
continuously monitors, assesses, and reports on the effects
that any vehicle permitted to use a high occupancy vehicle
lane under an exception under this paragraph may have on the
operation of--

``(I) individual high occupancy vehicle lanes; and
``(II) the entire high occupancy vehicle lane system.

``(iii) Operation of hov lane or system.--A responsible
agency described in clause (i) shall limit use of, or cease
to use, any of the exceptions specified in this paragraph if
the presence of any vehicle permitted to use a high occupancy
vehicle lane under an exception under this paragraph
seriously degrades the operation of--

``(I) individual high occupancy vehicle lanes; and
``(II) the entire high occupancy vehicle lane system.''.

SEC. 1607. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

(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 place
it appears and inserting ``pedestrians or bicyclists'';
(3) by striking subsection (f) and inserting the following:
``(f) Federal Share.--The Federal share of the construction
of bicycle transportation facilities and pedestrian walkways,
and for carrying out nonconstruction projects relating to
safe pedestrian and bicycle use, shall be determined in
accordance with section 120(b).'';
(4) by redesignating subsection (j) as subsection (k);
(5) by inserting after subsection (i) the following:
``(j) Bicycle and Pedestrian Safety Grants.--
``(1) In general.--The Secretary shall select and make
grants to a national, nonprofit organization engaged in
promoting bicycle and pedestrian safety--
``(A) to operate a national bicycle and pedestrian
clearinghouse;
``(B) to develop information and educational programs
regarding walking and bicycling; and
``(C) to disseminate techniques and strategies for
improving bicycle and pedestrian safety.
``(2) Funding.--The Secretary may use funds set aside under
section 104(n) to carry out this subsection.
``(3) Applicability of title 23.--Funds authorized to be
appropriated to carry out this subsection shall be available
for obligation in the same manner as if the funds were
apportioned under section 104, except that the funds shall
remain available until expended.''; and
(6) in subsection (k) (as redesignated by paragraph (4))--
(A) by redesignating paragraph (4) as paragraph (5); and
(B) by inserting after paragraph (3) the following:
``(4) Shared use path.--The term `shared use path' means a
multiuse trail or other path that is--
``(A) physically separated from motorized vehicular traffic
by an open space or barrier, either within a highway right-
of-way or within an independent right-of-way; and
``(B) usable for transportation purposes (including by
pedestrians, bicyclists, skaters, equestrians, and other
nonmotorized users).''.
(b) Reservation of Funds.--Section 104 of title 23, United
States Code (as amended by section 1522), is amended by
adding at the end the following:
``(n) Bicycle and Pedestrian Safety Grants.--On October 1
of each of 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
apportioned under subsection (b)(3) for use in carrying out
the bicycle and pedestrian safety grant program under section
217.''.

SEC. 1608. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-
OF-WAY.

Section 111 of title 23, United States Code, is amended by
adding at the end the following:
``(d) Idling Reduction Facilities in Interstate Rights-of-
Way.--
``(1) In general.--Notwithstanding subsection (a), a State
may--
``(A) 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 the State, so long
as those idling reduction measures do not--
``(i) reduce the existing number of designated truck
parking spaces at any given rest or recreation area; or
``(ii) preclude the use of those spaces by trucks employing
alternative idle reduction technologies; and
``(B) charge a fee, or permit the charging of a fee, for
the use of those parking spaces actively providing power to a
truck to reduce idling.
``(2) Purpose.--The exclusive purpose of the facilities
described in paragraph (1) (or similar technologies) shall be
to enable operators of motor vehicles used for commercial
purposes--
``(A) to reduce idling of a truck while parked in the rest
or recreation area; and
``(B) to use installed or other equipment specifically
designed to reduce idling of a truck, or provide alternative
power for supporting driver comfort, while parked.''.

SEC. 1609. TOLL PROGRAMS.

(a) Interstate System Reconstruction and Rehabilitation
Pilot Program.--Section 1216(b) of the Transportation Equity
Act for the 21st Century (23 U.S.C. 129 note; 112 Stat.
212)--
(1) is amended--
(A) in paragraph (1)--
(i) by striking ``The Secretary'' and inserting
``Notwithstanding section 301, the Secretary''; and
(ii) by striking ``that could not otherwise be adequately
maintained or functionally improved without the collection of
tolls'';
(B) 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.'';
(C) in paragraph (4)--
(i) by striking subparagraph (A) and inserting the
following:
``(A) the State's analysis showing that financing the
reconstruction or rehabilitation of a facility with the
collection of tolls under the pilot program is the most
efficient, economical, or expeditious way to advance the
project;'';
(ii) by striking subparagraph (B) and inserting the
following:
``(B) the facility needs reconstruction or rehabilitation,
including major work that may require replacing sections of
the existing facility on new alignment;'';
(iii) by striking subparagraph (C); and
(iv) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively;
(2) is redesignated as subsection (d) of section 129 of
title 23, United States Code, and moved to appear at the end
of that section; and
(3) by striking ``of title 23, United States Code'' each
place it appears.

[[Page S838]]

(b) Fast and Sensible Toll (FAST) Lanes Program.--Section
129 of title 23, United States Code (as amended by subsection
(a)(2)), is amended by adding at the end the following:
``(e) Fast and Sensible Toll (FAST) Lanes Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible toll facility.--The term `eligible toll
facility' includes--
``(i) a facility in existence on the date of enactment of
this subsection that collects tolls;
``(ii) a facility in existence on the date of enactment of
this subsection, including a facility that serves high
occupancy vehicles;
``(iii) a facility modified or constructed after the date
of enactment of this subsection to create additional tolled
capacity (including a facility constructed by a private
entity or using private funds); and
``(iv) in the case of a new lane added to a previously non-
tolled facility, only the new lane.
``(B) Nonattainment area.--The term `nonattainment area'
has the meaning given the term in section 171 of the Clean
Air Act (42 U.S.C. 7501).
``(2) Establishment.--Notwithstanding sections 129 and 301,
the Secretary shall permit a State, public authority, or a
public or private entity designated by a State, to collect a
toll from motor vehicles at an eligible toll facility for any
highway, bridge, or tunnel, including facilities on the
Interstate System--
``(A) to manage high levels of congestion;
``(B) to reduce emissions in a nonattainment area or
maintenance area; or
``(C) to finance the expansion of a highway, for the
purpose of reducing traffic congestion, by constructing 1 or
more additional lanes (including bridge, tunnel, support, and
other structures necessary for that construction) on the
Interstate System.
``(3) Limitation on use of revenues.--
``(A) Use.--
``(i) In general.--Toll revenues received under paragraph
(2) shall be used by a State, public authority, or private
entity designated by a State, for--

``(I) debt service for debt incurred on 1 or more highway
or transit projects carried out under this title or title 49;
``(II) a reasonable return on investment of any private
financing;
``(III) the costs necessary for proper operation and
maintenance of any facilities under paragraph (2) (including
reconstruction, resurfacing, restoration, and
rehabilitation); or
``(IV) if the State, public authority, or private entity
annually certifies that the tolled facility is being
adequately operated and maintained, any other purpose
relating to a highway or transit project carried out under
this title or title 49.

``(B) Requirements.--
``(i) Variable price requirement.--A facility that charges
tolls under this subsection may establish a toll that varies
in price according to time of day or level of traffic, as
appropriate to manage congestion or improve air quality.
``(ii) HOV variable pricing requirement.--The Secretary
shall require, for each high occupancy vehicle facility that
charges tolls under this subsection, that the tolls vary in
price according to time of day or level of traffic, as
appropriate to manage congestion or improve air quality.
``(iii) HOV passenger requirements.--In addition to the
exceptions to the high occupancy vehicle passenger
requirements established under section 102(a)(2), a State may
permit motor 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.
``(C) Agreement.--
``(i) In general.--Before the Secretary may permit a
facility to charge tolls under this subsection, the Secretary
and the applicable State, public authority, or private entity
designated by a State shall enter into an agreement for each
facility incorporating the conditions described in
subparagraphs (A) and (B).
``(ii) Termination.--An agreement under clause (i) shall
terminate with respect to a facility upon the decision of the
State, public authority, or private entity designated by a
State to discontinue the variable tolling program under this
subsection for the facility.
``(iii) Debt.--

``(I) In general.--If there is any debt outstanding on a
facility at the time at which the decision is made to
discontinue the program under this subsection with respect to
the facility, the facility may continue to charge tolls in
accordance with the terms of the agreement until such time as
the debt is retired.
``(II) Notice.--On retirement of the debt of a tolled
facility, the applicable State, public authority, or private
entity designated by a State shall provide notice to the
public of that retirement.

``(D) Limitation on federal share.--The Federal share of
the cost of a project on a facility tolled under this
subsection, including a project to install the toll
collection facility shall be a percentage, not to exceed 80
percent, determined by the applicable State.
``(4) Eligibility.--To be eligible to participate in the
program under this subsection, a State, public authority, or
private entity designated by a State shall provide to the
Secretary--
``(A) a description of the congestion or air quality
problems sought to be addressed under the program;
``(B) a description of--
``(i) the goals sought to be achieved under the program;
and
``(ii) the performance measures that would be used to gauge
the success made toward reaching those goals; and
``(C) such other information as the Secretary may require.
``(5) Automation.--Fees collected from motorists using a
FAST lane shall be collected only through the use of noncash
electronic technology that optimizes the free flow of traffic
on the tolled facility.
``(6) Interoperability.--
``(A) Rule.--
``(i) In general.--Not later than 180 days after the date
of enactment of this paragraph, the Secretary shall
promulgate a final rule specifying requirements, standards,
or performance specifications for automated toll collection
systems implemented under this section.
``(ii) Development.--In developing that rule, which shall
be designed to maximize the interoperability of electronic
collection systems, the Secretary shall, to the maximum
extent practicable--

``(I) seek to accelerate progress toward the national goal
of achieving a nationwide interoperable electronic toll
collection system;
``(II) take into account the use of noncash electronic
technology currently deployed within an appropriate
geographical area of travel and the noncash electronic
technology likely to be in use within the next 5 years; and
``(III) seek to minimize additional costs and maximize
convenience to users of toll facility and to the toll
facility owner or operator.

``(B) Future modifications.--As the state of technology
progresses, the Secretary shall modify the rule promulgated
under subparagraph (A), as appropriate.
``(7) Reporting.--
``(A) In general.--The Secretary, in cooperation with State
and local agencies and other program participants and with
opportunity for public comment, shall--
``(i) develop and publish performance goals for each FAST
lane project;
``(ii) establish a program for regular monitoring and
reporting on the achievement of performance goals,
including--

``(I) effects on travel, traffic, and air quality;
``(II) distribution of benefits and burdens;
``(III) use of alternative transportation modes; and
``(IV) use of revenues to meet transportation or impact
mitigation needs.

``(B) Reports to congress.--The Secretary shall submit to
the Committee on Environment and Public Works of the Senate
and the Committee on Transportation and Infrastructure of the
House of Representatives--
``(i) not later than 1 year after the date of enactment of
this subsection, and annually thereafter, a report that
describes in detail the uses of funds under this subsection
in accordance with paragraph (8)(D); and
``(ii) not later than 3 years after the date of enactment
of this subsection, and every 3 years thereafter, a report
that describes any success of the program under this
subsection in meeting congestion reduction and other
performance goals established for FAST lane programs.
``(8) Funding.--
``(A) Authorization of appropriations.--There is authorized
to be appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to carry out pre-implementation
studies and post-implementation evaluations of projects
planned or implemented under this subsection $11,000,000 for
each of fiscal years 2004 through 2009.
``(B) Availability.--Funds allocated by the Secretary to a
State under this subsection shall remain available for
obligation by the State for a period of 3 years after the
last day of the fiscal year for which the funds were
authorized.
``(C) Contract authority.--Funds authorized to be
appropriated under this paragraph shall be available for
obligation in the same manner as if the funds were
apportioned under this chapter, except that the Federal share
of the cost of any project carried out under this subsection
and the availability of funds authorized by this paragraph
shall be determined in accordance with this subsection.
``(D) Program promotion.--Notwithstanding any other
provision of this section, the Secretary shall use an amount
not to exceed 2 percent of the funds made available under
subparagraph (A)--
``(i) to make grants to promote the purposes of the program
under this subsection;
``(ii) to provide technical support to State and local
governments or other public or private entities involved in
implementing or considering FAST lane programs; and
``(iii) to conduct research on variable pricing that will
support State or local efforts to initiate those pricing
requirements.
``(E) Effect on other apportionments and allocations.--
Revenues collected from tolls established under this
subsection shall not be taken into account in determining the
apportionments and allocations that any State or
transportation district within a State shall be entitled to
receive under or in accordance with this chapter.
``(9) Compliance.--The Secretary shall ensure that any
project or activity carried out

[[Page S839]]

under this section complies with requirements under section
106 of this title and section 307 of title 49.
``(10) Voluntary use.--Nothing in this subsection requires
any highway user to use a FAST lane.
``(11) Environmental requirements.--Nothing in this
subsection affects any environmental requirement applicable
to the construction or operation of an eligible toll facility
under this title or any other provision of law.''.
(c) Conforming Amendments.--
(1) In general.--Section 1012 of the Intermodal Surface
Transportation Efficiency Act (23 U.S.C. 149 note; 105 Stat.
1938; 112 Stat. 211) is amended by striking subsection (b).
(2) Continuation of program.--Notwithstanding the amendment
made by paragraph (1), the Secretary shall monitor and allow
any value pricing program established under a cooperative
agreement in effect on the day before the date of enactment
of this Act to continue.

SEC. 1610. FEDERAL REFERENCE METHOD.

(a) In General.--Section 6102 of the Transportation Equity
Act for the 21st Century (42 U.S.C. 7407 note; 112 Stat. 464)
is amended by striking subsection (e) and inserting the
following:
``(e) Field Study.--Not later than 2 years after the date
of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004, the
Administrator shall--
``(1) conduct a field study of the ability of the
PM<inf>2.5</inf> Federal Reference Method to differentiate
those particles that are larger than 2.5 micrometers in
diameter;
``(2) develop a Federal reference method to measure
directly particles that are larger than 2.5 micrometers in
diameter without reliance on subtracting from coarse particle
measurements those particles that are equal to or smaller
than 2.5 micrometers in diameter;
``(3) develop a method of measuring the composition of
coarse particles; and
``(4) submit a report on the study and responsibilities of
the Administrator under paragraphs (1) through (3) to--
``(A) the Committee on Commerce of the House of
Representatives; and
``(B) the Committee on Environment and Public Works of the
Senate.''.

SEC. 1611. ADDITION OF PARTICULATE MATTER AREAS TO CMAQ.

Section 104(b)(2) of title 23, United States Code, is
amended--
(1) in subparagraph B--
(A) in the matter preceding clause (i), by striking ``ozone
or carbon monoxide'' and inserting ``ozone, carbon monoxide,
or fine particulate matter (PM<inf>2.5</inf>)'';
(B) by striking clause (i) and inserting the following:
``(i) 1.0, if at the time of apportionment, the area is a
maintenance area;'';
(C) in clause (vi), by striking ``or'' after the semicolon;
and
(D) in clause (vii)--
(i) by striking ``area as described in section 149(b) for
ozone,'' and inserting ``area for ozone (as described in
section 149(b) or for PM-2.5''; and
(ii) by striking the period at the end and inserting a
semicolon;
(2) by adding at the end the following:
``(viii) 1.0 if, at the time of apportionment, any county
that is 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.'';
(3) by striking subparagraph (C) and inserting the
following:
``(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 the Clean Air 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) or clause (viii)
of subparagraph (B), shall be further multiplied by a factor
of 1.2.'';
(4) by redesignating subparagraph (D) and (E) as
subparagraphs (E) and (F) respectively; and
(5) by inserting after subparagraph (C) the following:
``(D) Additional adjustment for pm 2.5 areas.--If, in
addition to being designated as a nonattainment or
maintenance area for ozone or 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. 1612. ADDITION TO CMAQ-ELIGIBLE PROJECTS.

(a) Eligible Projects.--Section 149(b) of title 23, United
States Code, is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(6) if the project or program is for the purchase of
alternative fuel (as defined in section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211)) or biodiesel.''.
(b) States Receiving Minimum Apportionment.--Section 149(c)
of title 23, United States Code, is amended--
(1) in paragraph (1), by striking ``for any project
eligible under the surface transportation program under
section 133.'' and inserting the following: ``for any project
in the State that--
``(A) would otherwise be eligible under this section as if
the project were carried out in a nonattainment or
maintenance area; or
``(B) is eligible under the surface transportation program
under section 133.''; and
(2) in paragraph (2), by striking ``for any project in the
State eligible under section 133.'' and inserting the
following: ``for any project in the State that--
``(A) would otherwise be eligible under this section as if
the project were carried out in a nonattainment or
maintenance area; or
``(B) is eligible under the surface transportation program
under section 133.''.

SEC. 1613. IMPROVED INTERAGENCY CONSULTATION.

Section 149 of title 23, United States Code, is amended by
adding at the end the following:
``(g) 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 emission
reductions from proposed congestion mitigation and air
quality improvement programs and projects.''.

SEC. 1614. EVALUATION AND ASSESSMENT OF CMAQ PROJECTS.

Section 149 of title 23, United States Code, is amended by
adding at the end the following:
``(h) Evaluation and Assessment of Projects.--
``(1) In general.--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
program to--
``(A) determine the direct and indirect impact of the
projects on air quality and congestion levels; and
``(B) ensure the effective implementation of the program.
``(2) Database.--Using appropriate assessments of projects
funded under the congestion mitigation and air quality
program and results from other research, the Secretary shall
maintain and disseminate a cumulative database describing the
impacts of the projects.
``(3) Consideration.--The Secretary, in consultation with
the Administrator of the Environmental Protection Agency,
shall consider the recommendations and findings of the report
submitted to Congress under section 1110(e) of the
Transportation Equity Act for the 21st Century (112 Stat.
144), including recommendations and findings that would
improve the operation and evaluation of the congestion
mitigation and air quality improvement program under section
149.''.

SEC. 1615. SYNCHRONIZED PLANNING AND CONFORMITY TIMELINES,
REQUIREMENTS, AND HORIZON.

(a) Metropolitan Planning.--
(1) Development of long-range transportation plan.--Section
134(g)(1) of title 23, United States Code, is amended by
striking ``periodically, according to a schedule that the
Secretary determines to be appropriate,'' and inserting
``every 4 years (or more frequently, in a case in which the
metropolitan planning organization elects to update a
transportation plan more frequently) in areas designated as
nonattainment, as defined in section 107(d) of the Clean Air
Act (42 U.S.C. 7407(d)), and in areas that were nonattainment
that have been redesignated to attainment in accordance with
section 107(d)(3) of that Act (42 U.S.C. 7407(d)(3)), with a
maintenance plan under section 175A of that Act (42 U.S.C.
7505a), or every 5 years (or more frequently, in a case in
which the metropolitan planning organization elects to update
a transportation plan more frequently) in areas designated as
attainment (as defined in section 107(d) of that Act (42
U.S.C. 7407(d))),''.
(2) Metropolitan transportation improvement program.--
Section 134(h) of title 23, United States Code, is amended--
(A) in paragraph (1)(D), by striking ``2 years'' and
inserting ``4 years''; and
(B) in paragraph (2)(A), by striking ``3-year'' and
inserting ``4-year''.
(3) Statewide transportation improvement program.--Section
135(f)(1)(A) of title 23, United States Code, is amended by
inserting after ``program'' the following: ``(which program
shall cover a period of 4 years and be updated every 4
years)''.
(4) Final regulations.--Not later than 18 months after the
date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004, the Secretary
shall promulgate regulations that are consistent with the
amendments made by this subsection.
(b) Synchronized Conformity Determination.--Section 176(c)
of the Clean Air Act (42 U.S.C. 7506(c)) is amended--
(1) in paragraph (2)--
(A) by striking ``(2) Any transportation plan'' and
inserting the following:
``(2) Transportation plans and programs.--Any
transportation plan'';
(B) in subparagraph (C)(iii), by striking the period at the
end and inserting a semicolon;

[[Page S840]]

(C) in subparagraph (D)--
(i) by striking ``Any project'' and inserting ``any
transportation project''; and
(ii) by striking the period at the end and inserting ``;
and''; and
(D) by adding at the end the following:
``(E) the appropriate metropolitan planning organization
shall redetermine conformity of existing transportation plans
and programs not later than 2 years after the date on which
the Administrator--
``(i) finds a motor vehicle emissions budget to be adequate
in accordance with section 93.118(e)(4) of title 40, Code of
Federal Regulations (as in effect on October 1, 2003);
``(ii) approves an implementation plan that establishes a
motor vehicle emissions budget, if that budget has not yet
been used in a conformity determination prior to approval; or
``(iii) promulgates an implementation plan that establishes
or revises a motor vehicle emissions budget.'';
(2) in paragraph (4)(B)(ii), by striking ``but in no case
shall such determinations for transportation plans and
programs be less frequent than every 3 years; and'' and
inserting ``but the frequency for making conformity
determinations on updated transportation plans and programs
shall be every 4 years, except in a case in which--

``(I) the metropolitan planning organization elects to
update a transportation plan or program more frequently; or
``(II) the metropolitan planning organization is required
to determine conformity in accordance with paragraph (2)(E);
and'';

(3) in paragraph (4)(B)--
(A) in clause (ii), by striking ``and'' at the end;
(B) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(iv) address the effects of the most recent population,
economic, employment, travel, transit ridership, congestion,
and induced travel demand information in the development and
application of the latest travel and emissions models.'';
(4) by adding at the end the following:
``(7) Conformity horizon for transportation plans.--
``(A) In general.--For the purposes of this section, a
transportation plan in a nonattainment or maintenance area
shall be considered to be a transportation plan or a portion
of a transportation plan that extends for the longest of the
following periods:
``(i) The first 10-year period of any such transportation
plan.
``(ii) The latest year in the implementation plan
applicable to the area that contains a motor vehicle emission
budget.
``(iii) The year after the completion date of a regionally
significant project, if the project requires approval before
the subsequent conformity determination.
``(B) Exception.--In a case in which an area has a revision
to an implementation plan under section 175A(b) and the
Administrator has found the motor vehicle emissions budgets
from that revision to be adequate in accordance with section
93.118(e)(4) of title 40, Code of Federal Regulations (as in
effect on October 1, 2003), or has approved the revision, the
transportation plan shall be considered to be a
transportation plan or portion of a transportation plan that
extends through the last year of the implementation plan
required under section 175A(b).
``(8) Definitions.--In this subsection:
``(A) Regionally significant project.--
``(i) In general.--The term `regionally significant
project' means a transportation project that is on a facility
that serves a regional transportation need, including--

``(I) access to and from the area outside of the region;
``(II) access to and from major planned developments,
including new retail malls, sports complexes, or
transportation terminals; and
``(III) most transportation terminals.

``(ii) Principal arterials and fixed guideways.--The term
`regionally significant project' includes, at a minimum--

``(I) all principal arterial highways; and
``(II) all fixed guideway transit facilities that offer an
alternative to regional highway travel.

``(iii) Additional projects.--The interagency consultation
process and procedures described in section 93.105(c) of
title 40, Code of Federal Regulations (as in effect on
October 1, 2003), shall be used to make determinations as to
whether minor arterial highways and other transportation
projects should be considered `regionally significant
projects'.
``(iv) Exclusions.--The term `regionally significant
project' does not include any project of a type listed in
sections 93.126 or 127 of title 40, Code of Federal
Regulations (as in effect on October 1, 2003).
``(B) Significant revision.--The term `significant
revision' means--
``(i) with respect to a regionally significant project, a
significant change in design concept or scope to the project;
and
``(ii) with respect to any other kind of project, a change
that converts a project that is not a regionally significant
project into a regionally significant project.
``(C) Transportation project.--The term `transportation
project' includes only a project that is--
``(i) a regionally significant project; or
``(ii) a project that makes a significant revision to an
existing project.''; and
(5) in the matter following paragraph (3)(B), by inserting
``transportation'' before ``project'' each place it appears.

SEC. 1616. TRANSITION TO NEW AIR QUALITY STANDARDS.

Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) is
amended by striking paragraph (3) and inserting the
following:
``(3) Methods of conformity determination before budget is
available.--
``(A) In general.--Until such time as a motor vehicle
emission budget from an implementation plan submitted for a
national ambient air quality standard is determined to be
adequate in accordance with section 93.118(e)(4) of title 40,
Code of Federal Regulations (as in effect on October 1,
2003), or the submitted implementation plan is approved,
conformity of such a plan, program, or project shall be
demonstrated, in accordance with clauses (i) and (ii) and as
selected through the consultation process required under
paragraph (4)(D)(i), with--
``(i) a motor vehicle emission budget that has been found
adequate in accordance with section 93.118(e)(4) of title 40,
Code of Federal Regulations (as in effect on October 1,
2003), or that has been approved, from an implementation plan
for the most recent prior applicable national ambient air
quality standard addressing the same pollutant; or
``(ii) other such tests as the Administrator shall
determine to ensure that--

``(I) the transportation plan or program--

``(aa) is consistent with the most recent estimates of
mobile source emissions;
``(bb) provides for the expeditious implementation of
transportation control measures in the applicable
implementation plan; and
``(cc) with respect to an ozone or carbon monoxide
nonattainment area, contributes to annual emissions
reductions consistent with sections 182(b)(1) and 187(a)(7);
and

``(II) the transportation project--

``(aa) comes from a conforming transportation plan and
program described in this subparagraph; and
``(bb) in a carbon monoxide nonattainment area, eliminates
or reduces the severity and number of violations of the
carbon monoxide standards in the area substantially affected
by the project.
``(B) Determination for a transportation project in a
carbon monoxide nonattainment area.--A determination under
subparagraph (A)(ii)(II)(bb) may be made as part of either
the conformity determination for the transportation program
or for the individual project taken as a whole during the
environmental review phase of project development.''.

SEC. 1617. REDUCED BARRIERS TO AIR QUALITY IMPROVEMENTS.

Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (as
amended by section 1615(b)(4)) is amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) Substitution for transportation control measures.--
``(A) In general.--Transportation control measures that are
specified in an implementation plan may be replaced or added
to the implementation plan with alternate or additional
transportation control measures if--
``(i) the substitute measures achieve equivalent or greater
emissions reductions than the control measure to be replaced,
as demonstrated with an analysis that is consistent with the
current methodology used for evaluating the replaced control
measure in the implementation plan;
``(ii) the substitute control measures are implemented--

``(I) in accordance with a schedule that is consistent with
the schedule provided for control measures in the
implementation plan; or
``(II) if the implementation plan date for implementation
of the control measure to be replaced has passed, as soon as
practicable after the implementation plan date but not later
than the date on which emission reductions are necessary to
achieve the purpose of the implementation plan;

``(iii) the substitute and additional control measures are
accompanied with evidence of adequate personnel, funding, and
authority under State or local law to implement, monitor, and
enforce the control measures;
``(iv) the substitute and additional control measures were
developed through a collaborative process that included--

``(I) participation by representatives of all affected
jurisdictions (including local air pollution control
agencies, the State air pollution control agency, and State
and local transportation agencies);
``(II) consultation with the Administrator; and
``(III) reasonable public notice and opportunity for
comment; and

``(v) the metropolitan planning organization, State air
pollution control agency, and the Administrator concur with
the equivalency of the substitute or additional control
measures.
``(B) Adoption.--After carrying out subparagraph (A), a
State shall adopt the substitute or additional transportation
control measure in the applicable implementation plan.
``(C) No requirement for express permission.--The
substitution or addition of a transportation control measure
in accordance with this paragraph shall not be contingent on
there being any provision in the implementation plan that
expressly permits such a substitution or addition.
``(D) No requirement for new conformity determination.--The
substitution or addition of a transportation control measure
in

[[Page S841]]

accordance with this paragraph shall not require--
``(i) a new conformity determination for the transportation
plan; or
``(ii) a revision of the implementation plan.
``(E) Continuation of control measure being replaced.--A
control measure that is being replaced by a substitute
control measure under this paragraph shall remain in effect
until the substitute control measure is adopted by the State
pursuant to subparagraph (B).
``(F) Effect of adoption.--Adoption of a substitute control
measure shall constitute rescission of the previously
applicable control measure.''.

SEC. 1618. AIR QUALITY MONITORING DATA INFLUENCED BY
EXCEPTIONAL EVENTS.

(a) In General.--Section 319 of the Clean Air Act (42
U.S.C. 7619) is amended--
(1) by striking the section heading and all that follows
through ``after notice and opportunity for public hearing''
and inserting the following:

``SEC. 319. AIR QUALITY MONITORING.

``(a) In General.--After notice and opportunity for public
hearing''; and
(2) by adding at the end the following:
``(b) Air Quality Monitoring Data Influenced by Exceptional
Events.--
``(1) Definition of exceptional event.--In this section:
``(A) In general.--The term `exceptional event' means an
event that--
``(i) affects air quality;
``(ii) is not reasonably controllable or preventable;
``(iii) is--

``(I) a natural event; or
``(II) an event caused by human activity that is unlikely
to recur at a particular location; and

``(iv) is determined by the Administrator through the
process established in the regulations promulgated under
paragraph (2) to be an exceptional event.
``(B) Exclusions.--The term `exceptional event' does not
include--
``(i) stagnation of air masses or meteorological
inversions;
``(ii) a meteorological event involving high temperatures
or lack of precipitation; or
``(iii) air pollution relating to source noncompliance.
``(2) Regulations.--
``(A) Proposed regulations.--Not later than March 1, 2005,
after consultation with Federal land managers and State air
pollution control agencies, the Administrator shall publish
in the Federal Register proposed regulations governing the
review and handling of air quality monitoring data influenced
by exceptional events.
``(B) Final regulations.--Not later than 1 year after the
date on which the Administrator publishes proposed
regulations under subparagraph (A), and after providing an
opportunity for interested persons to make oral presentations
of views, data, and arguments regarding the proposed
regulations, the Administrator shall promulgate final
regulations governing the review and handling or air quality
monitoring data influenced by an exceptional event that are
consistent with paragraph (3).
``(3) Principles and requirements.--
``(A) Principles.--In promulgating regulations under this
section, the Administrator shall follow--
``(i) the principle that protection of public health is the
highest priority;
``(ii) the principle that timely information should be
provided to the public in any case in which the air quality
is unhealthy;
``(iii) the principle that all ambient air quality data
should be included in a timely manner, an appropriate Federal
air quality database that is accessible to the public;
``(iv) the principle that each State must take necessary
measures to safeguard public health regardless of the source
of the air pollution; and
``(v) the principle that air quality data should be
carefully screened to ensure that events not likely to recur
are represented accurately in all monitoring data and
analyses.
``(B) Requirements.--Regulations promulgated under this
section shall, at a minimum, provide that--
``(i) the occurrence of an exceptional event must be
demonstrated by reliable, accurate data that is promptly
produced and provided by Federal, State, or local government
agencies;
``(ii) a clear causal relationship must exist between the
measured exceedances of a national ambient air quality
standard and the exceptional event to demonstrate that the
exceptional event caused a specific air pollution
concentration at a particular air quality monitoring
location;
``(iii) there is a public process for determining whether
an event is exceptional; and
``(iv) there are criteria and procedures for the Governor
of a State to petition the Administrator to exclude air
quality monitoring data that is directly due to exceptional
events from use in determinations by the Environmental
Protection Agency with respect to exceedances or violations
of the national ambient air quality standards.
``(4) Interim provision.--Until the effective date of a
regulation promulgated under paragraph (2), the following
guidance issued by the Administrator shall continue to apply:
``(A) Guidance on the identification and use of air quality
data affected by exceptional events (July 1986).
``(B) Areas affected by PM-10 natural events, May 30, 1996.
``(C) Appendices I, K, and N to part 50 of title 40, Code
of Federal Regulations.''.

SEC. 1619. CONFORMING AMENDMENTS.

Section 176(c)(4) of the Clean Air Act (42 U.S.C.
7506(c)(4) is amended--
(1) by redesignating subparagraphs (B) through (D) as
subparagraphs (D) through (F), respectively;
(2) by striking ``(4)(A) No later than one year after the
date of enactment of the Clean Air Act Amendments of 1990,
the Administrator shall promulgate'' and inserting the
following:
``(4) Criteria and procedures for determining conformity.--
``(A) In general.--The Administrator shall promulgate, and
periodically update,'';
(3) in subparagraph (A)--
(A) in the second sentence, by striking ``No later than one
year after such date of enactment, the Administrator, with
the concurrence of the Secretary of Transportation, shall
promulgate'' and inserting the following:
``(B) Transportation plans, programs, and projects.--The
Administrator, with the concurrence of the Secretary of
Transportation, shall promulgate, and periodically update,'';
and
(B) in the third sentence, by striking ``A suit'' and
inserting the following:
``(C) Civil action to compel promulgation.--A civil
action''; and
(4) by striking subparagraph (E) (as redesignated by
paragraph (1)) and inserting the following:
``(E) Inclusion of criteria and procedures in sip.--Not
later than 2 years after the date of enactment of the Safe,
Accountable, Flexible, and Efficient Transportation Equity
Act of 2004, the procedures under subparagraph (A) shall
include a requirement that each State include in the State
implementation plan criteria and procedures for consultation
in accordance with the Administrator's criteria and
procedures for consultation required by subparagraph
(D)(i).''.

SEC. 1620. HIGHWAY STORMWATER DISCHARGE MITIGATION PROGRAM.

(a) Highway Stormwater Mitigation Projects.--Section 133(d)
of title 23, United States Code (as amended by section
1401(a)(2)(B)), is amended by adding at the end the
following:
``(5) Highway stormwater discharge mitigation projects.--Of
the amount apportioned to a State under section 104(b)(3) for
a fiscal year, 2 percent shall be available only for projects
and activities carried out under section 167.''.
(b) Highway Stormwater Discharge Mitigation Program.--
Subchapter I of chapter 1 of title 23, United States Code (as
amended by section 1601(a)), is amended by adding at the end
the following:

``Sec. 167. Highway stormwater discharge mitigation program

``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Eligible mitigation project.--The term `eligible
mitigation project' means a practice or technique that--
``(A) improves stormwater discharge water quality;
``(B) attains preconstruction hydrology;
``(C) promotes infiltration of stormwater into groundwater;
``(D) recharges groundwater;
``(E) minimizes stream bank erosion;
``(F) promotes natural filters;
``(G) otherwise mitigates water quality impacts of highway
stormwater discharges, improves surface water quality, or
enhances groundwater recharge; or
``(H) reduces flooding caused by highway stormwater
discharge.
``(3) Federal-aid highway and associated facility.--The
term `Federal-aid highway and associated facility' means--
``(A) a Federal-aid highway; or
``(B) a facility or land owned by a State (or political
subdivision of a State) that is directly associated with the
Federal-aid highway.
``(4) Highway stormwater discharge.--The term `highway
stormwater discharge' means stormwater discharge from a
Federal-aid highway, or a Federal-aid highway and associated
facility, that was constructed before the date of enactment
of this section.
``(5) Highway stormwater discharge mitigation.--The term
`highway stormwater discharge mitigation' means--
``(A) the reduction of water quality impacts of stormwater
discharges from Federal-aid highways or Federal-aid highways
and associated facilities; or
``(B) the enhancement of groundwater recharge from
stormwater discharges from Federal-aid highways or Federal-
aid highways and associated facilities.
``(6) Program.--The term `program' means the highway
stormwater discharge mitigation program established under
subsection (b).
``(b) Establishment.--The Secretary shall establish a
highway stormwater discharge mitigation program--
``(1) to improve the quality of stormwater discharge from
Federal-aid highways or Federal-aid highways and associated
facilities; and
``(2) to enhance groundwater recharge.
``(c) Priority of Projects.--For projects funded from the
allocation under section 133(d)(6), a State shall give
priority to

[[Page S842]]

projects sponsored by a State or local government that assist
the State or local government in complying with the Federal
Water Pollution Control Act (33 U.S.C. 1251 et seq.).
``(d) Guidance.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, in consultation
with the Administrator, shall issue guidance to assist States
in carrying out this section.
``(2) Requirements for guidance.--The guidance issued under
paragraph (1) shall include information concerning innovative
technologies and nonstructural best management practices to
mitigate highway stormwater discharges.''.
(c) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1601(b), is amended by inserting after the item
relating to section 166 the following:

``167. Highway stormwater discharge mitigation program.''.

SEC. 1621. EXEMPTION FROM CERTAIN HAZARDOUS MATERIALS
TRANSPORTATION REQUIREMENTS.

(a) Definition of Eligible Person.--In this section, the
term ``eligible person'' means an agricultural producer that
has gross agricultural commodity sales that do not exceed
$500,000.
(b) Exemption.--Subject to subsection (c), part 172 of
title 49, Code of Federal Regulations, shall not apply to an
eligible person that transports a fertilizer, pesticide,
propane, gasoline, or diesel fuel for agricultural purposes,
to the extent determined by the Secretary.
(c) Applicability.--Subsection (b) applies to security plan
requirements under subpart I of part 172 of title 49, Code of
Federal Regulations (or a successor regulation).

Subtitle G--Operations

SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.

(a) Surface Transportation Program Eligibility.--Section
133(b) of title 23, United States Code (as amended by section
1601(a)(2)), is amended by adding at the end the following:
``(16) 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.
``(17) Rush hour congestion relief.--
``(A) In general.--Subject to subparagraph (B), a State may
spend the funds apportioned under this section to reduce
traffic delays caused by motor vehicle accidents and
breakdowns on highways during peak driving times.
``(B) Use of funds.--A State, metropolitan planning
organization, or local government may use the funds under
subparagraph (A)--
``(i) to develop a region-wide coordinated plan to mitigate
traffic delays caused by motor vehicle accidents and
breakdowns;
``(ii) to purchase or lease telecommunications equipment
for first responders;
``(iii) to purchase or lease towing and recovery services;
``(iv) to pay contractors for towing and recovery;
``(v) to rent vehicle storage areas adjacent to roadways;
``(vi) to fund service patrols, equipment, and operations;
``(vii) to purchase incident detection equipment;
``(viii) to carry out training.''.
(b) Congestion Mitigation and Air Quality Improvement
Program Eligibility.--Section 149(b)(5) of title 23, United
States Code, is amended by inserting ``improve transportation
systems management and operations,'' after
``intersections,''.
(c) Transportation Systems Management and Operations.--
(1) In general.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1620(b)), is
amended by adding at the end the following:

``Sec. 168. Transportation systems management and operations

``(a) In General.--The Secretary shall carry out a
transportation systems management and operations program to--
``(1) ensure efficient and effective transportation systems
management and operations on Federal-aid highways through
collaboration, coordination, and real-time information
sharing at a regional and Statewide level among--
``(A) managers and operators of major modes of
transportation;
``(B) public safety officials; and
``(C) the general public; and
``(2) manage and operate Federal-aid highways in a
coordinated manner to preserve the capacity and maximize the
performance of highway and transit facilities for travelers
and carriers.
``(b) Authorized Activities.--
``(1) In general.--In carrying out the program under
subsection (a), the Secretary may carry out activities to--
``(A) encourage managers and operators of major modes of
transportation, public safety officials, and transportation
planners in urbanized areas that are responsible for
conducting the day-to-day management, operations, public
safety, and planning of transportation facilities and
services to collaborate on and coordinate, on a regional
level and in a continuous and sustained manner, improved
transportation systems management and operations; and
``(B) encourage States to--
``(i) establish a system of basic real-time monitoring for
the surface transportation system; and
``(ii) provide the means to share the data gathered under
clause (i) among--

``(I) highway, transit, and public safety agencies;
``(II) jurisdictions (including States, cities, counties,
and metropolitan planning organizations);
``(III) private-sector entities; and
``(IV) the general public.

``(2) Activities.--Activities to be carried out under
paragraph (1) include--
``(A) developing a regional concept of operations that
defines a regional strategy shared by all transportation and
public safety participants with respect to the manner in
which the transportation systems of the region should be
managed, operated, and measured;
``(B) the sharing of information among operators, service
providers, public safety officials, and the general public;
and
``(C) guiding, in a regionally-coordinated manner and in a
manner consistent with and integrated into the metropolitan
and statewide transportation planning processes and regional
intelligent transportation system architecture, the
implementation of regional transportation system management
and operations initiatives, including--
``(i) emergency evacuation and response;
``(ii) traffic incident management;
``(iii) technology deployment; and
``(iv) traveler information systems delivery.
``(c) Cooperation.--In carrying out the program under
subsection (a), the Secretary may assist and cooperate with
other Federal agencies, State and local governments,
metropolitan planning organizations, private industry, and
other interested parties to improve regional collaboration
and real-time information sharing between managers and
operators of major modes of transportation, public safety
officials, emergency managers, and the general public to
increase the security, safety, and reliability of Federal-aid
highways.
``(d) Guidance; Regulations.--
``(1) In general.--In carrying out the program under
subsection (a), the Secretary may issue guidance or
promulgate regulations for the procurement of transportation
system management and operations facilities, equipment, and
services, including--
``(A) equipment procured in preparation for natural
disasters, disasters caused by human activity, and
emergencies;
``(B) system hardware;
``(C) software; and
``(D) software integration services.
``(2) Considerations.--In developing the guidance or
regulations under paragraph (1), the Secretary may consider
innovative procurement methods that support the timely and
streamlined execution of transportation system management and
operations programs and projects.
``(3) Financial assistance.--The Secretary may authorize
the use of funds made available under section 104(b)(3) to
provide assistance for regional operations collaboration and
coordination activities that are associated with regional
improvements, such as--
``(A) traffic incident management;
``(B) technology deployment;
``(C) emergency management and response;
``(D) traveler information; and
``(E) congestion relief.''.
(2) Conforming amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1620(c)), is amended by adding at the end:

``168. Transportation systems management and operations.''.

SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1701(c)(1)), is
amended by adding at the end the following:

``Sec. 169. Real-time system management information program

``(a) In General.--The Secretary shall carry out a real-
time system management information program to--
``(1) provide a nationwide system of basic real-time
information for managing and operating the surface
transportation system;
``(2)(A) identify long-range real-time highway and transit
monitoring needs; and
``(B) develop plans and strategies for meeting those needs;
``(3) provide the capability and means to share the basic
real-time information with State and local governments and
the traveling public; and
``(4) provide the nationwide capability to monitor, in
real-time, the traffic and travel conditions of major
highways in the United States, and to share that information
with State and local governments and the traveling public,
to--
``(A) improve the security of the surface transportation
system;
``(B) address congestion problems;
``(C) support improved response to weather events; and
``(D) facilitate the distribution of national and regional
traveler information.
``(b) Data Exchange Formats.--Not later than 1 year after
the date of enactment of this section, 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

[[Page S843]]

between jurisdictions to facilitate the nationwide
availability of information on traffic and travel conditions.
``(c) Statewide Incident Reporting System.--Not later than
2 years after the date of enactment of this section, or not
later than 5 years after the date of enactment of this
section if the Secretary determines that adequate real-time
communications capability will not be available within 2
years after the date of enactment of this section, each State
shall establish a statewide incident reporting system to
facilitate the real-time electronic reporting of highway and
transit incidents to a central location for use in--
``(1) monitoring an incident;
``(2) providing accurate traveler information on the
incident; and
``(3) responding to the incident as appropriate.
``(d) Regional ITS Architecture.--
``(1) In general.--In developing or updating regional
intelligent transportation system architectures under section
940.9 of title 23, Code of Federal Regulations (or any
successor regulation), States and local governments shall
address--
``(A) the real-time highway and transit information needs
of the State or local government, including coverage,
monitoring systems, data fusion and archiving, and methods of
exchanging or sharing information; and
``(B) the systems needed to meet those needs.
``(2) Data exchange formats.--In developing or updating
regional intelligent transportation system architectures,
States and local governments are encouraged to incorporate
the data exchange formats developed by the Secretary under
subsection (b) to ensure that the data provided by highway
and transit monitoring systems can readily be--
``(A) exchanged between jurisdictions; and
``(B) shared with the traveling public.
``(e) Eligible Funding.--Subject to project approval by the
Secretary, a State may--
``(1) use funds available to the State under section 505(a)
to carry out activities relating to the planning of real-time
monitoring elements; and
``(2) use funds apportioned to the State under paragraphs
(1) and (3) of section 104(b) to carry out activities
relating to the planning and deployment of real-time
monitoring elements.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1701(c)(2)), is amended adding at the end the
following:

``169. Real-time system management information program.''.

SEC. 1703. CONTRACTING FOR ENGINEERING AND DESIGN SERVICES.

Section 112(b)(2) of title 23, United States Code, is
amended--
(1) in subparagraph (A), by striking ``title 40'' and all
that follows through the period and inserting ``title 40.'';
(2) by striking subparagraph (B);
(3) by redesignating subparagraphs (C) through (F) as
subparagraphs (B) through (E), respectively; and
(4) by striking subparagraph (G).

SEC. 1704. OFF-DUTY TIME FOR DRIVERS OF COMMERCIAL VEHICLES.

Section 345(a)(2) of the National Highway System
Designation Act of 1995 (49 U.S.C. 31136 note; 109 Stat. 613)
is amended by adding at the end the following: ``No
additional off-duty time for a driver of such a vehicle shall
be required in order for the driver to operate the
vehicle.''.

SEC. 1705. DESIGNATION OF TRANSPORTATION MANAGEMENT AREAS.

(a) Funding.--Section 134(d)(3)(C)(ii) of title 23, United
States Code, is amended by striking subclause (II) and
inserting the following:

``(II) Funding.--In addition to funds made available to the
metropolitan planning organization for the Lake Tahoe Region
under this title and chapter 53 of title 49, 1 percent of all
funds distributed under section 202 shall be used to carry
out the transportation planning process for the Lake Tahoe
region under this subparagraph.''.

(b) Special Designation.--Section 134(i)(1) of title 23,
United States Code, is amended by adding at the end the
following:
``(C) Special designation.--
``(i) In general.--The urbanized areas of Oklahoma City,
Oklahoma, and Norman, Oklahoma, shall be designated as a
single transportation management area.
``(ii) Allocation.--The allocation of funds to the Oklahoma
City-Norman Transportation Management Area designated under
clause (i) shall be based on the aggregate population of the
2 urbanized areas referred to in that clause, as determined
by the Bureau of the Census.''.

Subtitle H--Federal-Aid Stewardship

SEC. 1801. FUTURE INTERSTATE SYSTEM ROUTES.

Section 103(c)(4)(B) of title 23, United States Code, is
amended--
(1) in clause (ii), by striking ``12'' and inserting
``25''; and
(2) in clause (iii)--
(A) in subclause (I), by striking ``in the agreement
between the Secretary and the State or States''; and
(B) by adding at the end the following:

``(III) Existing agreements.--An agreement described in
clause (ii) that is entered into before the date of enactment
of this subparagraph shall be deemed to include the 25-year
time limitation described in that clause, regardless of any
earlier construction completion date in the agreement.''.

SEC. 1802. STEWARDSHIP AND OVERSIGHT.

(a) In General.--Section 106 of title 23, United States
Code, is amended--
(1) by striking subsection (e) and inserting the following:
``(e) Value Engineering Analysis.--
``(1) Definition of value engineering analysis.--
``(A) In general.--In this subsection, the term `value
engineering analysis' means a systematic process of review
and analysis of a project, during the concept and design
phases, by a multidisciplined team of persons not involved in
the project, that is conducted to provide recommendations
such as those described in subparagraph (B) for--
``(i) providing the needed functions safely, reliably, and
at the lowest overall cost; and
``(ii) improving the value and quality of the project.
``(B) Inclusions.--The recommendations referred to in
subparagraph (A) include, with respect to a project--
``(i) combining or eliminating otherwise inefficient use of
costly parts of the original proposed design for the project;
and
``(ii) completely redesigning the project using different
technologies, materials, or methods so as to accomplish the
original purpose of the project.
``(2) Analysis.--The State shall provide a value
engineering analysis or other cost-reduction analysis for--
``(A) each project on the Federal-Aid System with an
estimated total cost of $25,000,000 or more;
``(B) a bridge project with an estimated total cost of
$20,000,000 or more; and
``(C) any other project the Secretary determines to be
appropriate.
``(3) Major projects.--The Secretary may require more than
1 analysis described in paragraph (2) for a major project
described in subsection (h).
``(4) Requirements.--Analyses described in paragraph (1)
for a bridge project shall--
``(A) include bridge substructure requirements based on
construction material; and
``(B) be evaluated--
``(i) on engineering and economic bases, taking into
consideration acceptable designs for bridges; and
``(ii) using an analysis of life-cycle costs and duration
of project construction.''; and
(2) by striking subsections (g) and (h) and inserting the
following:
``(g) Oversight Program.--
``(1) Program.--
``(A) In general.--The Secretary shall establish an
oversight program to monitor the effective and efficient use
of funds made available under this title.
``(B) Minimum requirements.--At a minimum, the program
shall monitor and respond to all areas relating to financial
integrity and project delivery.
``(2) Financial integrity.--
``(A) Financial management systems.--
``(i) In general.--The Secretary shall perform annual
reviews of the financial management systems of State
transportation departments that affect projects approved
under subsection (a).
``(ii) Review areas.--In carrying out clause (i), the
Secretary shall use risk assessment procedures to identify
areas to be reviewed.
``(B) Project costs.--The Secretary shall--
``(i) develop minimum standards for estimating project
costs; and
``(ii) periodically evaluate practices of the States for--

``(I) estimating project costs;
``(II) awarding contracts; and
``(III) reducing project costs.

``(C) Responsibility of the states.--
``(i) In general.--Each State shall be responsible for
ensuring that subrecipients of Federal funds within the State
under this section have--

``(I) sufficient accounting controls to properly manage the
Federal funds; and
``(II) adequate project delivery systems for projects
approved under this section.

``(ii) Review by secretary.--The Secretary shall
periodically review monitoring by the States of those
subrecipients.
``(3) Project delivery.--The Secretary shall--
``(A) perform annual reviews of the project delivery system
of each State, including analysis of 1 or more activities
that are involved in the life cycle of a project; and
``(B) employ risk assessment procedures to identify areas
to be reviewed.
``(4) Specific oversight responsibilities.--Nothing in this
section discharges or otherwise affects any oversight
responsibility of the Secretary--
``(A) specifically provided for under this title or other
Federal law; or
``(B) for the design and construction of all Appalachian
development highways under section 14501 of title 40 or
section 170 of this title.
``(h) Major Projects.--
``(1) In general.--Notwithstanding any other provision of
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, and recipients for such other
projects as may be identified by the Secretary, shall submit
to the Secretary for each project--
``(A) a project management plan; and
``(B) an annual financial plan.
``(2) Project management plan.--A project management plan
shall document--
``(A) the procedures and processes that are in effect to
provide timely information to the project decisionmakers to
effectively

[[Page S844]]

manage the scope, costs, schedules, and quality of, and the
Federal requirements applicable to, the project; and
``(B) the role of the agency leadership and management team
in the delivery of the project.
``(3) Financial plan.--A financial plan shall--
``(A) be based on detailed estimates of the cost to
complete the project; and
``(B) provide for the annual submission of updates to the
Secretary that are 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 the project,
and that is not covered by subsection (h), shall prepare, and
make available to the Secretary at the request of the
Secretary, an annual financial plan for the project.''.
(b) Conforming Amendments.--
(1) Section 114(a) of title 23, United States Code, is
amended--
(A) in the first sentence by striking ``highways or
portions of highways located on a Federal-aid system'' and
inserting ``Federal-aid highway or a portion of a Federal-aid
highway''; and
(B) by striking the second sentence and inserting ``The
Secretary shall have the right to conduct such inspections
and take such corrective action as the Secretary determines
to be appropriate.''.
(2) Section 117 of title 23, United States Code, is
amended--
(A) by striking subsection (d); and
(B) by redesignating subsections (e) through (h) as
subsections (d) through (g), respectively.
(c) Contractor Suspension and Debarment Policy; Sharing
Fraud Monetary Recoveries.--
(1) In general.--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) In general.--Notwithstanding any other provision of
law, the Secretary--
``(A) shall debar any contractor or subcontractor convicted
of a criminal or civil offense involving fraud relating to a
project receiving Federal highway or transit funds for such
period as the Secretary determines to be appropriate; and
``(B) subject to approval by the Attorney General--
``(i) except as provided in paragraph (2), shall suspend
any contractor or subcontractor upon indictment for criminal
or civil offenses involving fraud; and
``(ii) may exclude nonaffiliated subsidiaries of a debarred
business entity.
``(2) National security exception.--If the Secretary finds
that mandatory debarment or suspension of a contractor or
subcontractor under paragraph (1) would be contrary to the
national security of the United States, the Secretary--
``(A) may waive the debarment or suspension; and
``(B) in the instance of each waiver, shall provide
notification to Congress of the waiver with appropriate
details.
``(b) Sharing of Monetary Recoveries.--
``(1) In general.--Notwithstanding any other provision of
law--
``(A) 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; and
``(B) the State or local transit agency shall use the funds
for transportation infrastructure and oversight activities
relating to programs authorized under title 23 and this
title.
``(2) Amount.--The amount of recovered funds to be shared
with an affected State or local transit agency shall be--
``(A) determined by the Attorney General, in consultation
with the Secretary; and
``(B) considered to be Federal funds to be used in
compliance with other relevant Federal transportation laws
(including regulations).
``(3) Fraudulent activity.--Paragraph (1) shall not apply
in any case in which a State or local transit agency is found
by the Attorney General, in consultation with the Secretary,
to have been involved or negligent with respect to the
fraudulent activities.''.
(2) Conforming amendment.--The analysis for chapter 3 of
title 49, United States Code, is amended by striking the item
relating to section 307 and inserting the following:

``307. Contractor suspension and debarment policy; sharing fraud
monetary recoveries.''.

SEC. 1803. DESIGN-BUILD CONTRACTING.

Section 112(b)(3) of title 23, United States Code, is
amended by striking subparagraph (C) and inserting the
following:
``(C) Qualified projects.--A qualified project referred to
in subparagraph (A) is a project under this chapter
(including intermodal projects) for which the Secretary has
approved the use of design-build contracting under criteria
specified in regulations promulgated by the Secretary.''.

SEC. 1804. PROGRAM EFFICIENCIES--FINANCE.

(a) Advance Construction.--Section 115 of title 23, United
States Code, is amended--
(1) by redesignating subsection (c) as subsection (d);
(2) by redesignating subsections (a)(2), (a)(2)(A), and
(a)(2)(B) as subsections (c), (c)(1), and (c)(2),
respectively, and indenting appropriately;
(3) by striking ``(a) Congestion'' and all that follows
through subsection (a)(1)(B);
(4) by striking subsection (b); and
(5) by inserting after the section heading the following:
``(a) In General.--The Secretary may authorize a State to
proceed with a project authorized under this title--
``(1) without the use of Federal funds; and
``(2) in accordance with all procedures and requirements
applicable to the project other than those procedures and
requirements that limit the State to implementation of a
project--
``(A) with the aid of Federal funds previously apportioned
or allocated to the State; or
``(B) with obligation authority previously allocated to the
State.
``(b) Obligation of Federal Share.--The Secretary, on the
request of a State and execution of a project agreement, may
obligate all or a portion of the Federal share of the project
authorized under this section from any category of funds for
which the project is eligible.''.
(b) Obligation and Release of Funds.--Section 118 of title
23, United States Code, is amended by striking subsection (d)
and inserting the following:
``(d) Obligation and Release of Funds.--
``(1) In general.--Funds apportioned or allocated to a
State for a particular purpose for any fiscal year shall be
considered to be obligated if a sum equal to the total of the
funds apportioned or allocated to the State for that purpose
for that fiscal year and previous fiscal years is obligated.
``(2) Released funds.--Any funds released by the final
payment for a project, or by modifying the project agreement
for a project, shall be--
``(A) credited to the same class of funds previously
apportioned or allocated to the State; and
``(B) immediately available for obligation.
``(3) Net obligations.--Notwithstanding any other provision
of law (including a regulation), obligations recorded against
funds made available under this section shall be recorded and
reported as net obligations.''.

SEC. 1805. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS.

Section 118(c)(1) of title 23, United States Code, is
amended--
(1) by striking ``$50,000,000'' and all that follows
through ``2003'' and inserting ``$100,000,000 for each of
fiscal years 2004 through 2009''; and
(2) by striking ``Transportation Equity Act for the 21st
Century'' and inserting ``Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004''.

SEC. 1806. FEDERAL LANDS HIGHWAYS PROGRAM.

(a) Federal Share Payable.--
(1) In general.--Section 120(k) of title 23, United States
Code, is amended--
(A) by striking ``Federal-aid highway''; and
(B) by striking ``section 104'' and inserting ``this title
or chapter 53 of title 49''.
(2) Technical references.--Section 120(l) of title 23,
United States Code, is amended by striking ``section 104''
and inserting ``this title or chapter 53 of title 49''.
(b) Payments to Federal Agencies for Federal-Aid
Projects.--Section 132 of title 23, United States Code, is
amended--
(1) by striking the first 2 sentences and inserting the
following:
``(a) In General.--In a case in which a proposed Federal-
aid project is to be undertaken by a Federal agency in
accordance with an agreement between a State and the 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 such deposit with, or payment to, the Federal
agency as is required to meet the obligation of the State
under the agreement for the work undertaken or to be
undertaken by the Federal agency.
``(b) Reimbursement.--On execution of a project agreement
with a State described in subsection (a), the Secretary may
reimburse the State, using any available funds, for the
estimated Federal share under this title of the obligation of
the State deposited or paid under subsection (a)(2).''; and
(2) in the last sentence, by striking ``Any sums'' and
inserting the following:
``(c) Recovery and Crediting of Funds.--Any sums''.
(c) Allocations.--Section 202 of title 23, United States
Code, is amended--
(1) in subsection (a), by striking ``(a) On October 1'' and
all that follows through ``Such allocation'' and inserting
the following:
``(a) Allocation Based on Need.--
``(1) In general.--On October 1 of each fiscal year, the
Secretary shall allocate sums authorized to be appropriated
for the fiscal year for forest development roads and trails
according to the relative needs of the various national
forests and grasslands.
``(2) Planning.--The allocation under paragraph (1)'';
(2) by striking subsection (b) and inserting the following:
``(b) Allocation for Public Lands Highways.--
``(1) Public lands highways.--
``(A) In general.--On October 1 of each fiscal year, the
Secretary shall allocate 33\1/3\ percent of the sums
authorized to be appropriated for that fiscal year for public
lands

[[Page S845]]

highways among those States having unappropriated or
unreserved public lands, or nontaxable Indian lands or other
Federal reservations, on the basis of need in the States,
respectively, as determined by the Secretary, on application
of the State transportation departments of the respective
States.
``(B) Preference.--In making the allocation under
subparagraph (A), the Secretary shall give preference to
those projects that are significantly impacted by Federal
land and resource management activities that are proposed by
a State that contains at least 3 percent of the total public
land in the United States.
``(2) Forest highways.--
``(A) In general.--On October 1 of each fiscal year, the
Secretary shall allocate 66\2/3\ percent of the funds
authorized to be appropriated for public lands highways for
forest highways in accordance with section 134 of the
Federal-Aid Highway Act of 1987 (23 U.S.C. 202 note; 101
Stat. 173).
``(B) Public access to and within national forest system.--
In making the allocation under subparagraph (A), 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--
``(i) renewable resource and land use planning; and
``(ii) assessments of the impact of that planning on
transportation facilities.'';
(3) in subsection (c)--
(A) by striking ``(c) On'' and inserting the following:
``(c) Park Roads and Parkways.--
``(1) In general.--On''; and
(B) by adding at the end the following:
``(2) Priority.--
``(A) Definition of qualifying national park.--In this
paragraph, the term ``qualifying national park'' means a
National Park that is used more than 1,000,000 recreational
visitor days per year, based on an average of the 3 most
recent years of available data from the National Park
Service.
``(B) Priority.--Notwithstanding any other provision of
law, with respect to funds authorized for park roads and
parkways, the Secretary shall give priority in the allocation
of funds to projects for highways that--
``(i) are located in, or provide access to, a qualifying
National Park; and
``(ii) were initially constructed before 1940.
``(C) Priority conflicts.--If there is a conflict between
projects described in subparagraph (B), the Secretary shall
give highest priority to projects that--
``(i) are in, or that provide access to, parks that are
adjacent to a National Park of a foreign country; or
``(ii) are located in more than 1 State;'';
(4) in subsection (d)--
(A) in paragraph (1)--
(i) in the paragraph heading, by striking ``1999'' and
inserting ``2005''; and
(ii) by striking ``1999'' and inserting ``2005'';
(B) in paragraph (2)--
(i) in the paragraph heading, by striking ``2000'' and
inserting ``2005'';
(ii) in subparagraphs (A), (B), and (D), by striking
``2000'' each place it appears and inserting ``2005'';
(iii) in subparagraph (B), by striking ``1999'' each place
it appears and inserting ``2004''; and
(iv) by adding at the end the following:
``(E) Transferred funds.--
``(i) In general.--Not later than 30 days after the date on
which funds are made available to the Secretary of the
Interior under this paragraph, the funds shall be distributed
to, and available for immediate use by, the eligible Indian
tribes, in accordance with the formula applicable for each
fiscal year.
``(ii) Formula.--If the Secretary of the Interior has not
promulgated final regulations for the distribution of funds
under clause (i) for a fiscal year by the date on which the
funds for the fiscal year are required to be distributed
under that clause, the Secretary of the Interior shall
distribute the funds under clause (i) in accordance with the
applicable funding formula for the preceding year.
``(iii) Use of funds.--Notwithstanding any other provision
of this section, funds available to Indian tribes for Indian
reservation roads shall be expended on projects identified in
a transportation improvement program approved by the
Secretary.''; and
(C) in paragraph (4)--
(i) in subparagraph (B)--

(I) by striking ``(B) Reservation.--Of the amounts'' and
all that follows through ``to replace,'' and inserting the
following:

``(B) Funding.--
``(i) Reservation of funds.--Of the amounts authorized to
be appropriated for Indian reservation roads for each fiscal
year, the Secretary, in cooperation with the Secretary of the
Interior, shall reserve not less than $15,000,000 for each of
fiscal years 2004 through 2009 to carry out planning, design,
engineering, preconstruction, construction, and inspection of
projects to replace,''; and

(II) by adding at the end the following:

``(ii) Availability.--Funds made available to carry out
this subparagraph shall be available for obligation in the
same manner as if the funds were apportioned under chapter
1.''; and
(ii) by striking subparagraph (D) and inserting the
following:
``(D) Approval requirement.--
``(i) In general.--Subject to clause (ii), on request by an
Indian tribe or the Secretary of the Interior, the Secretary
may make funds available under this subsection for
preliminary engineering for Indian reservation road bridge
projects.
``(ii) Construction and construction engineering.--The
Secretary may make funds available under clause (i) for
construction and construction engineering only after approval
by the Secretary of applicable plans, specifications, and
estimates.''; and
(5) by adding at the end the following:
``(f) Administration of Indian Reservation Roads.--
Notwithstanding any other provision of law, for any fiscal
year, not more than 6 percent of the contract authority
amounts made available from the Highway Trust Fund to the
Bureau of Indian Affairs under this title shall be used to
pay the expenses incurred by the Bureau in administering the
Indian reservation roads program (including the
administrative expenses relating to individual projects
associated with the Indian reservation roads program).''.
(d) Planning and Agency Coordination.--Section 204 of title
23, United States Code, is amended--
(1) in subsection (a)(1), by inserting ``refuge roads,
recreation roads,'' after ``parkways,'';
(2) by striking subsection (b) and inserting the following:
``(b) Use of Funds.--
``(1) In general.--Funds available for public lands
highways, recreation roads, park roads and parkways, forest
highways, and Indian reservation roads shall be used by the
Secretary and the Secretary of the appropriate Federal land
management agency to pay the cost of transportation planning,
research, engineering, operation and maintenance of transit
facilities, and construction of the highways, roads,
parkways, forest highways, and transit facilities located on
public land, national parks, and Indian reservations.
``(2) Contract.--In connection with an activity described
in paragraph (1), the Secretary and the Secretary of the
appropriate Federal land management agency may enter into a
construction contract or other appropriate agreement with--
``(A) a State (including a political subdivision of a
State); or
``(B) an Indian tribe.
``(3) Indian reservation roads.--In the case of an Indian
reservation road--
``(A) Indian labor may be used, in accordance with such
rules and regulations as may be promulgated by the Secretary
of the Interior, to carry out any construction or other
activity described in paragraph (1); and
``(B) funds made available to carry out this section may be
used to pay bridge preconstruction costs (including planning,
design, and engineering).
``(4) Federal employment.--No maximum on Federal employment
shall be applicable to construction or improvement of Indian
reservation roads.
``(5) Availability of funds.--Funds available under this
section for each class of Federal lands highway shall be
available for any kind of transportation project eligible for
assistance under this title that is within or adjacent to, or
that provides access to, the areas served by the particular
class of Federal lands highway.
``(6) Reservation of funds.--The Secretary of the Interior
may reserve funds from administrative funds of the Bureau of
Indian Affairs that are associated with the Indian
reservation road program to finance the Indian technical
centers authorized under section 504(b).''; and
(3) in subsection (k)(1)--
(A) in subparagraph (B)--
(i) by striking ``(2), (5),'' and inserting ``(2), (3),
(5),''; and
(ii) by striking ``and'' after the semicolon;
(B) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following:
``(D) maintenance of public roads in national fish
hatcheries under the jurisdiction of the United States Fish
and Wildlife Service;
``(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
(except that expenditures on trails under this subparagraph
shall not exceed 5 percent of available funds for each fiscal
year).''.
(e) Safety.--
(1) Allocations.--Section 202 of title 23, United States
Code (as amended by subsection (c)(5)), is amended by adding
at the end the following:
``(g) Safety.--Subject to paragraph (2), on October 1 of
each fiscal year, the Secretary shall allocate the sums
authorized to be appropriated for the fiscal year for safety
as follows:
``(1) 12 percent to the Bureau of Reclamation.
``(2) 18 percent to the Bureau of Indian Affairs.
``(3) 17 percent to the Bureau of Land Management.
``(4) 17 percent to the Forest Service.
``(5) 7 percent to the United States Fish and Wildlife
Service.
``(6) 17 percent to the National Park Service.
``(7) 12 percent to the Corps of Engineers.''.
(2) Availability of funds.--Section 203 of title 23, United
States Code, is amended by inserting ``safety projects or
activities,'' after ``refuge roads,'' each place it appears.
(3) Use of funding.--Section 204 of title 23, United States
Code, is amended by adding at the end the following:

[[Page S846]]

``(l) Safety Activities.--
``(1) In general.--Notwithstanding any other provision of
this title, funds made available for safety under this title
shall be used by the Secretary and the head of the
appropriate Federal land management agency only to pay the
costs of carrying out--
``(A) transportation safety improvement activities;
``(B) activities to eliminate high-accident locations;
``(C) projects to implement protective measures at, or
eliminate, at-grade railway-highway crossings;
``(D) collection of safety information;
``(E) transportation planning projects or activities;
``(F) bridge inspection;
``(G) development and operation of safety management
systems;
``(H) highway safety education programs; and
``(I) other eligible safety projects and activities
authorized under chapter 4.
``(2) Contracts.--In carrying out paragraph (1), the
Secretary and the Secretary of the appropriate Federal land
management agency may enter into contracts or agreements
with--
``(A) a State;
``(B) a political subdivision of a State; or
``(C) an Indian tribe.
``(3) Exception.--The cost sharing requirements under the
Federal Water Project Recreation Act (16 U.S.C. 460l-12 et
seq.) shall not apply to funds made available to the Bureau
of Reclamation under this subsection.''.
(f) Recreation Roads.--
(1) Authorizations.--Section 201 of title 23, United States
Code, is amended in the first sentence by inserting
``recreation roads,'' after ``public lands highways,''.
(2) Allocations.--Section 202 of title 23, United States
Code (as amended by subsection (e)(1)), is amended by adding
at the end the following:
``(h) Recreation Roads.--
``(1) In general.--Subject to paragraphs (2) and (3), on
October 1 of each fiscal year, the Secretary, after
completing the transfer under subsection 204(i), shall
allocate the sums authorized to be appropriated for the
fiscal year for recreation roads as follows:
``(A) 8 percent to the Bureau of Reclamation.
``(B) 9 percent to the Corps of Engineers.
``(C) 13 percent to the Bureau of Land Management.
``(D) 70 percent to the Forest Service.
``(2) Allocation within agencies.--Recreation road funds
allocated to a Federal agency under paragraph (1) shall be
allocated for projects and activities of the Federal agency
according to the relative needs of each area served by
recreation roads under the jurisdiction of the Federal
agency, as indicated in the approved transportation
improvement program for each Federal agency.''.
(3) Availability of funds.--Section 203 of title 23, United
States Code, is amended--
(A) in the first sentence, by inserting ``recreation
roads,'' after ``Indian reservation roads,''; and
(B) in the fourth sentence, by inserting ``, recreation
roads,'' after ``Indian roads''.
(4) Use of funding.--Section 204 of title 23, United States
Code (as amended by subsection (e)(3)), is 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 under
this title 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 paragraph (1), (2), (3), (5), or (6) of
subsection (h) that are located in or adjacent to Federal
land under the jurisdiction of--
``(i) the Department of Agriculture; or
``(ii) the Department of the Interior;
``(C) transportation planning and administrative activities
associated with those 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 described in
subparagraph (B).
``(2) Contracts.--In carrying out paragraph (1), the
Secretary and the Secretary of the appropriate Federal land
management agency may enter into contracts or agreements
with--
``(A) a State;
``(B) a political subdivision of a State; or
``(C) an Indian tribe.
``(3) New roads.--No funds made 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.--A
maintenance or improvement project that is funded under this
subsection, and that is consistent with or has been
identified in a land use plan for an area under the
jurisdiction of a Federal agency, shall not require any
additional environmental reviews or assessments under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) if--
``(A) the Federal agency that promulgated the land use plan
analyzed the specific proposal for the maintenance or
improvement project under that Act; and
``(B) as of the date on which the funds are to be expended,
there are--
``(i) no significant changes to the proposal bearing on
environmental concerns; and
``(ii) no significant new information.
``(5) Exception.--The cost sharing requirements under the
Federal Water Project Recreation Act (16 U.S.C. 460l-12 et
seq.) shall not apply to funds made available to the Bureau
of Reclamation under this subsection.''.
(g) Conforming Amendments.--
(1) Sections 120(e) and 125(e) of title 23, United States
Code, are amended by striking ``public lands highways,'' each
place it appears and inserting ``public lands highways,
recreation roads,''.
(2) Sections 120(e), 125(e), 201, 202(a), and 203 of title
23, United States Code, are amended by striking ``forest
development roads'' each place it appears and inserting
``National Forest System roads''.
(3) Section 202(e) of title 23, United States Code, is
amended by striking ``Refuge System,'' and inserting ``Refuge
System and the various national fish hatcheries,''.
(4) Section 204 of title 23, United States Code, is
amended--
(A) in subsection (a)(1), by striking ``public lands
highways,'' and inserting ``public lands highways, recreation
roads, forest highways,''; and
(B) in subsection (i), by striking ``public lands
highways'' each place it appears and inserting ``public lands
highways, recreation roads, and forest highways''.
(5) Section 205 of title 23, United States Code, is
amended--
(A) by striking the section heading and inserting the
following:

``Sec. 205. National Forest System roads and trails'';

and
(B) in subsections (a) and (d), by striking ``forest
development roads'' each place it appears and inserting
``National Forest System roads''.
(6) The analysis for chapter 2 of title 23, United States
Code, is amended by striking the item relating to section 205
and inserting the following:

``205. National Forest System roads and trails.''.
(7) Section 217(c) of title 23, United States Code, is
amended by inserting ``refuge roads,'' after ``Indian
reservation roads,''.

SEC. 1807. HIGHWAY BRIDGE PROGRAM.

(a) In General.--Section 144 of title 23, United States
Code, is amended--
(1) by striking the section heading and all that follows
through subsection (a) and inserting the following:

``Sec. 144. Highway bridge program

``(a) Congressional Statement.--Congress finds and declares
that it is in the vital interest of the United States that a
highway bridge program be established to enable 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 at any time at which the States
and the Secretary determine that a bridge is unsafe because
of structural deficiencies, physical deterioration, or
functional obsolescence.'';
(2) by striking subsection (d) and inserting the following:
``(d) Participation in Program.--
``(1) In general.--On application by a State to the
Secretary for assistance in replacing or rehabilitating a
highway bridge that has been determined to be eligible for
replacement or rehabilitation under subsection (b) or (c),
the Secretary may approve Federal participation in--
``(A) replacing the bridge with a comparable bridge; or
``(B) rehabilitating the bridge.
``(2) Specific kinds of rehabilitation.--On application by
a State to the Secretary for assistance in painting, seismic
retrofit, or preventative maintenance of, or installation of
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, the
structure.
``(3) Eligibility.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall determine the eligibility of highway
bridges for replacement or rehabilitation for each State
based on the number of unsafe highway bridges in the State.
``(B) Preventative maintenance.--A State may carry out a
project for preventative maintenance on a bridge, seismic
retrofit of a bridge, or installation of scour
countermeasures to a bridge under this section without regard
to whether the bridge is eligible for replacement or
rehabilitation under this section.'';
(3) in subsection (e)--
(A) in the third sentence, by striking ``square footage''
and inserting ``area'';
(B) in the fourth sentence--
(i) 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
(ii) by striking ``1997'' and inserting ``2003''; and

[[Page S847]]

(C) in the seventh sentence, by striking ``the Federal-aid
primary system'' and inserting ``Federal-aid highways'';
(4) by striking subsections (f) and (g) and inserting the
following:
``(f) Set Asides.--
``(1) Discretionary bridge program.--
``(A) In general.--Of the amounts authorized to be
appropriated to carry out the bridge program under this
section for each of fiscal years 2004 through 2009, all but
$150,000,000 shall be apportioned as provided in subsection
(e).
``(B) Availability.--The $150,000,000 referred to in
subparagraph (A) shall be available at the discretion of the
Secretary, except that not to exceed $25,000,000 of that
amount shall be available only for projects for the seismic
retrofit of bridges.
``(C) Set asides.--For fiscal year 2004, the Secretary
shall provide--
``(i) $50,000,000 to the State of Nevada for construction
of a replacement of the federally-owned bridge over the
Hoover Dam in the Lake Mead National Recreation Area; and
``(ii) $50,000,000 to the State of Missouri for
construction of a structure over the Mississippi River to
connect the city of St. Louis, Missouri, to the State of
Illinois.
``(2) Off-system bridges.--
``(A) In general.--Not less than 15 percent of the amount
apportioned to each State in each of fiscal years 2004
through 2009 shall be expended for projects to replace,
rehabilitate, perform systematic preventative maintenance or
seismic retrofit, or apply calcium magnesium acetate, sodium
acetate/formate, or other environmentally acceptable,
minimally corrosive anti-icing and de-icing compositions or
install scour countermeasures to highway bridges located on
public roads, other than those on a Federal-aid highway, or
to complete the Warwick Intermodal Station (including the
construction of a people mover between the Station and the
T.F. Green Airport).
``(B) Reduction of expenditures.--The Secretary, after
consultation with State and local officials, may, with
respect to the State, reduce the requirement for expenditure
for bridges not on a Federal-aid highway if the Secretary
determines that the State has inadequate needs to justify the
expenditure.'';
(5) in subsection (i)--
(A) in paragraph (3), by striking ``and'';
(B) in paragraph (4), by striking the period at the end and
inserting ``; and'';
(C) by striking ``Such reports'' and all that follows
through ``to Congress.''; and
(D) by adding at the end the following:
``(5) biennially submit such reports as are required under
this subsection to the appropriate committees of Congress
simultaneously with the report required by section 502(g).'';
(6) in the first sentence of subsection (n), by striking
``all standards'' and inserting ``all general engineering
standards'';
(7) in subsection (o)--
(A) in paragraph (3)--
(i) by striking ``title (including this section)'' and
inserting ``section''; and
(ii) by inserting ``200 percent of'' after ``shall not
exceed''; and
(B) in paragraph (4)(B)--
(i) in the second sentence, by inserting ``200 percent of''
after ``not to exceed''; and
(ii) in the last sentence, by striking ``title'' and
inserting ``section'';
(8) by redesignating subsections (h) through (q) as
subsections (g) through (p), respectively; and
(9) by adding at the end the following:
``(q) Continuation of Annual Materials Report on New Bridge
Construction and Bridge Rehabilitation.--Not later than 1
year after the date of enactment of this subsection, and
annually thereafter, the Secretary shall publish in the
Federal Register a report describing construction materials
used in new Federal-aid bridge construction and bridge
rehabilitation projects.
``(r) Federal Share.--The Federal share of the cost of a
project payable from funds made available to carry out this
section shall be the share applicable under section 120(b),
as adjusted under subsection (d) of that section.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code, is amended by
striking the item relating to section 144 and inserting the
following:

``144. Highway bridge program.''.

SEC. 1808. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1702(a)), is
amended by adding at the end the following:

``Sec. 170. Appalachian development highway system

``(a) Apportionment.--
``(1) In general.--The Secretary shall apportion funds made
available under section 1101(7) of the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004 for
fiscal years 2004 through 2009 among States based on the
latest available estimate of the cost to construct highways
and access roads for the Appalachian development highway
system program prepared by the Appalachian Regional
Commission under section 14501 of title 40.
``(2) Availability.--Funds described in paragraph (1) shall
be available to construct highways and access roads under
chapter 145 of title 40.
``(b) Applicability of Title.--Funds made available under
section 1101(7) of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004 for the
Appalachian development highway system shall be available for
obligation in the same manner as if the funds were
apportioned under this chapter, except that--
``(1) the Federal share of the cost of any project under
this section shall be determined in accordance with subtitle
IV of title 40; and
``(2) the funds shall remain available until expended.''.
(b) Conforming Amendments.--
(1) Use of toll credits.--Section 120(j)(1) of title 23,
United States Code is amended by inserting ``and the
Appalachian development highway system program under subtitle
IV of title 40'' after ``(other than the emergency relief
program authorized by section 125''.
(2) Analysis.--The analysis of chapter 1 of title 23,
United States Code (as amended by section 1702(b)), is
amended by adding at the end the following:

``170. Appalachian development highway system.''.

SEC. 1809. MULTISTATE CORRIDOR PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by 1808(a)), is amended by
adding at the end the following:

``Sec. 171. Multistate corridor program

``(a) Establishment and Purpose.--The Secretary shall carry
out a program to--
``(1) support and encourage multistate transportation
planning and development; and
``(2) facilitate transportation decisionmaking and
coordinate project delivery involving multistate corridors.
``(b) Eligible Recipients.--A State transportation
department and a metropolitan planning organization may
receive and administer funds provided under this section.
``(c) Eligible Activities.--The Secretary shall make
allocations under this program for multistate highway and
multimodal planning studies and construction.
``(d) Other Provisions Regarding Eligibility.--
``(1) Studies.--All studies funded under this program shall
be consistent with the continuing, cooperative, and
comprehensive planning processes required by sections 134 and
135.
``(2) Construction.--All construction funded under this
program shall be consistent with section 133(b)(1).
``(e) Selection Criteria.--The Secretary shall select
studies and projects to be carried out under the program
based on--
``(1) the existence and significance of signed and binding
multijurisdictional agreements;
``(2) endorsement of the study or project by applicable
elected State and local representatives;
``(3) prospects for early completion of the study or
project; or
``(4) whether the projects to be studied or constructed are
located on corridors identified by section 1105(c) of the
Intermodal Surface Transportation Efficiency Act of 1991
(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 multimodal and
multijurisdictional transportation decisionmaking; and
``(2) give priority to studies or projects that emphasize
multimodal planning, including planning for operational
improvements that--
``(A) increase--
``(i) mobility;
``(ii) freight productivity;
``(iii) access to marine or inland ports;
``(iv) safety and security; and
``(v) reliability; and
``(B) enhance the environment.
``(g) Federal Share.--Except as provided in section 120,
the Federal share of the cost of a study or project carried
out under the program, using funds from all Federal sources,
shall be 80 percent.
``(h) Applicability.--Funds authorized to be appropriated
under section 1101(10) of the Safe, Accountable, Flexible,
and Efficient Transportation Equity Act of 2004 to carry out
this section shall be available for obligation in the same
manner as if the funds were apportioned under this
chapter.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1809(b)) is amended by adding at the end the
following:

``171. Multistate corridor program.''.

SEC. 1810. BORDER PLANNING, OPERATIONS, TECHNOLOGY, AND
CAPACITY PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1809(a)), is
amended by adding at the end the following:

``Sec. 172. Border planning, operations, technology, and
capacity program

``(a) Definitions.--In this section:
``(1) Border state.--The term `border State' means any of
the States of Alaska, Arizona, California, Idaho, Maine,
Michigan, Minnesota, Montana, New Hampshire, New Mexico, New
York, North Dakota, Texas, Vermont, and Washington.
``(2) Program.--The term `program' means the border
planning, operations, technology, and capacity program
established under subsection (b).
``(b) Establishment and Purpose.--The Secretary shall
establish and carry out a

[[Page S848]]

border planning, operations, technology, and capacity
improvement program to support coordination and improvement
in bi-national transportation planning, operations,
efficiency, information exchange, safety, and security at the
international borders of the United States with Canada and
Mexico.
``(c) Eligible Activities.--
``(1) In general.--The Secretary shall make allocations
under the program for projects to carry out eligible
activities described in paragraph (2) at or near
international land borders in border States.
``(2) Eligible activities.--A border State may obligate
funds apportioned to the border State under this section
for--
``(A) highway and multimodal planning or environmental
studies;
``(B) cross-border port of entry and safety inspection
improvements, including operational enhancements and
technology applications;
``(C) technology and information exchange activities; and
``(D) right-of-way acquisition, design, and construction,
as needed--
``(i) to implement the enhancements or applications
described in subparagraphs (B) and (C);
``(ii) to decrease air pollution emissions from vehicles or
inspection facilities at border crossings; or
``(iii) to increase highway capacity at or near
international borders.
``(d) Other Provisions Regarding Eligibility.--
``(1) In general.--Each project funded under the program
shall be carried out in accordance with the continuing,
cooperative, and comprehensive planning processes required by
sections 134 and 135.
``(2) Regionally significant projects.--To be funded under
the program, a regionally significant project shall be
included on the applicable transportation plan and program
required by sections 134 and 135.
``(e) Program Priorities.--Border States shall give
priority to projects that emphasize--
``(1) multimodal planning;
``(2) improvements in infrastructure; and
``(3) operational improvements that--
``(A) increase safety, security, freight capacity, or
highway access to rail, marine, and air services; and
``(B) enhance the environment.
``(f) Mandatory Program.--
``(1) In general.--For each fiscal year, the Secretary
shall allocate among border States, in accordance with the
formula described in paragraph (2), funds to be used in
accordance with subsection (d).
``(2) Formula.--Subject to paragraph (3), the amount
allocated to a border State under this paragraph shall be
determined by the Secretary, as follows:
``(A) 25 percent in the ratio that--
``(i) the average annual weight of all cargo entering the
border State by commercial vehicle across the international
border with Canada or Mexico, as the case may be; bears to
``(ii) the average annual weight of all cargo entering all
border States by commercial vehicle across the international
borders with Canada and Mexico.
``(B) 25 percent in the ratio that--
``(i) the average trade value of all cargo imported into
the border State and all cargo exported from the border State
by commercial vehicle across the international border with
Canada or Mexico, as the case may be; bears to
``(ii) the average trade value of all cargo imported into
all border States and all cargo exported from all border
States by commercial vehicle across the international borders
with Canada and Mexico.
``(C) 25 percent in the ratio that--
``(i) the number of commercial vehicles annually entering
the border State across the international border with Canada
or Mexico, as the case may be; bears to
``(ii) the number of all commercial vehicles annually
entering all border States across the international borders
with Canada and Mexico.
``(D) 25 percent in the ratio that--
``(i) the number of passenger vehicles annually entering
the border State across the international border with Canada
or Mexico, as the case may be; bears to
``(ii) the number of all passenger vehicles annually
entering all border States across the international borders
with Canada and Mexico.
``(3) Data source.--
``(A) In general.--The data used by the Secretary in making
allocations under this subsection shall be based on the
Bureau of Transportation Statistics Transborder Surface
Freight Dataset (or other similar database).
``(B) Basis of calculation.--All formula calculations shall
be made using the average values for the most recent 5-year
period for which data are available.
``(4) Minimum allocation.--Notwithstanding paragraph (2),
for each fiscal year, each border State shall receive at
least \1/2\ of 1 percent of the funds made available for
allocation under this paragraph for the fiscal year.
``(g) Federal Share.--Except as provided in section 120,
the Federal share of the cost of a project carried out under
the program shall be 80 percent.
``(h) Obligation.--Funds made available under section
1101(11) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 to carry out the program
shall be available for obligation in the same manner as if
the funds were apportioned under this chapter.
``(i) Information Exchange.--No individual project the
scope of work of which is limited to information exchange
shall receive an allocation under the program in an amount
that exceeds $500,000 for any fiscal year.
``(j) Projects in Canada or Mexico.--A project in Canada or
Mexico, proposed by a border State to directly and
predominantly facilitate cross-border vehicle and commercial
cargo movements at an international gateway or port of entry
into the border region of the State, may be constructed using
funds made available under the program if, before obligation
of those funds, Canada or Mexico, or the political
subdivision of Canada or Mexico that is responsible for the
operation of the facility to be constructed, provides
assurances satisfactory to the Secretary that any facility
constructed under this subsection will be--
``(1) constructed in accordance with standards equivalent
to applicable standards in the United States; and
``(2) properly maintained and used over the useful life of
the facility for the purpose for which the Secretary
allocated funds to the project.
``(k) Transfer of Funds to the General Services
Administration.--
``(1) State funds.--At the request of a border State, funds
made available under the program may be transferred to the
General Services Administration for the purpose of funding 1
or more specific projects if--
``(A) the Secretary determines, after consultation with the
State transportation department of the border State, that the
General Services Administration should carry out the project;
and
``(B) the General Services Administration agrees to accept
the transfer of, and to administer, those funds.
``(2) Non-federal share.--
``(A) In general.--A border State that makes a request
under paragraph (1) shall provide directly to the General
Services Administration, for each project covered by the
request, the non-Federal share of the cost of each project
described in subsection (f).
``(B) No augmentation of appropriations.--Funds provided by
a border State under subparagraph (A)--
``(i) shall not be considered to be an augmentation of the
appropriations made available to the General Services
Administration; and
``(ii) shall be--

``(I) administered in accordance with the procedures of the
General Services Administration; but
``(II) available for obligation in the same manner as if
the funds were apportioned under this chapter.

``(C) Obligation authority.--Obligation authority shall be
transferred to the General Services Administration in the
same manner and amount as the funds provided for projects
under subparagraph (A).
``(3) Direct transfer of authorized funds.--
``(A) In general.--In addition to allocations to States and
metropolitan planning organizations under subsection (c), 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 border States, if--
``(i) the Secretary determines that the transfer is
necessary to effectively carry out the purposes of this
program; and
``(ii) the General Services Administration agrees to accept
the transfer of, and to administer, those funds.
``(B) No augmentation of appropriations.--Funds transferred
by the Secretary under subparagraph (A)--
``(i) shall not be considered to be an augmentation of the
appropriations made available to the General Services
Administration; and
``(ii) shall be--

``(I) administered in accordance with the procedures of the
General Services Administration; but
``(II) available for obligation in the same manner as if
the funds were apportioned under this chapter.

``(C) Obligation authority.--Obligation authority shall be
transferred to the General Services Administration in the
same manner and amount as the funds transferred under
subparagraph (A).''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1809(b)), is amended by adding at the end the
following:

``172. Border planning, operations, and technology program.''.

SEC. 1811. PUERTO RICO HIGHWAY PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1810(a)), is
amended by adding at the end the following:

``Sec. 173. Puerto Rico highway program

``(a) In General.--The Secretary shall allocate funds
authorized by section 1101(15) of the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004 for
each of fiscal years 2004 through 2009 to the Commonwealth of
Puerto Rico to carry out a highway program in the
Commonwealth.
``(b) Applicability of Title.--
``(1) In general.--Amounts made available by section
1101(15) of the Safe, Accountable,

[[Page S849]]

Flexible, and Efficient Transportation Equity Act of 2004
shall be available for obligation in the same manner as if
such funds were apportioned under this chapter.
``(2) Limitation on obligations.--The amounts shall be
subject to any limitation on obligations for Federal-aid
highway and highway safety construction programs.
``(c) Treatment of Funds.--Amounts made available to carry
out this section for a fiscal year shall be administered as
follows:
``(1) Apportionment.--For the purpose of imposing any
penalty under this title or title 49, the amounts shall be
treated as being apportioned to Puerto Rico under sections
104(b) and 144, for each program funded under those sections
in an amount determined by multiplying--
``(A) the aggregate of the amounts for the fiscal year; by
``(B) the ratio that--
``(i) the amount of funds apportioned to Puerto Rico for
each such program for fiscal year 1997; bears to
``(ii) the total amount of funds apportioned to Puerto Rico
for all such programs for fiscal year 1997.
``(2) Penalty.--The amounts treated as being apportioned to
Puerto Rico under each section referred to in paragraph (1)
shall be deemed to be required to be apportioned to Puerto
Rico under that section for purposes of the imposition of any
penalty under this title and title 49.
``(3) Effect on allocations and apportionments.--Subject to
paragraph (2), nothing in this section affects any allocation
under section 105 and any apportionment under sections 104
and 144.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1810(b)), is amended by adding at the end the
following:

``173. Puerto Rico highway program.''.

SEC. 1812. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1811(a)), is
amended by adding at the end the following:

``Sec. 174. National historic covered bridge preservation

``(a) Definition of Historic Covered Bridge.--In this
section, the term `historic covered bridge' means a covered
bridge that is listed or eligible for listing on the National
Register of Historic Places.
``(b) Historic Covered Bridge Preservation.--Subject to the
availability of appropriations, the Secretary shall--
``(1) collect and disseminate information on historic
covered bridges;
``(2) conduct educational programs relating to the history
and construction techniques of historic covered bridges;
``(3) conduct research on the history of historic covered
bridges; and
``(4) conduct research on, and study techniques for,
protecting historic covered bridges from rot, fire, natural
disasters, or weight-related damage.
``(c) Grants.--
``(1) In general.--Subject to the availability of
appropriations, the Secretary shall make a grant to a State
that submits an application to the Secretary that
demonstrates a need for assistance in carrying out 1 or more
historic covered bridge projects described in paragraph (2).
``(2) Eligible projects.--A grant under paragraph (1) may
be made for a project--
``(A) to rehabilitate or repair a historic covered bridge;
or
``(B) to preserve a historic covered bridge, including
through--
``(i) installation of a fire protection system, including a
fireproofing or fire detection system and sprinklers;
``(ii) installation of a system to prevent vandalism and
arson; or
``(iii) relocation of a bridge to a preservation site.
``(3) Authenticity requirements.--A grant under paragraph
(1) may be made for a project only if--
``(A) to the maximum extent practicable, the project--
``(i) is carried out in the most historically appropriate
manner; and
``(ii) preserves the existing structure of the historic
covered bridge; and
``(B) the project provides for the replacement of wooden
components with wooden components, unless the use of wood is
impracticable for safety reasons.
``(4) Federal share.--Except as provided in section 120,
the Federal share of the cost of a project carried out with a
grant under this subsection shall be 80 percent.
``(d) Funding.--There is authorized to be appropriated to
carry out this section $14,000,000 for each of fiscal years
2004 through 2009, to remain available until expended.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1811(b)), is amended by adding at the end the
following:

``174. National historic covered bridge preservation.''.

SEC. 1813. TRANSPORTATION AND COMMUNITY AND SYSTEM
PRESERVATION PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1812(a)), is
amended by adding at the end the following:

``Sec. 175. Transportation and community and system
preservation program

``(a) Establishment.--The Secretary shall establish a
comprehensive program to facilitate the planning,
development, and implementation of strategies by States,
metropolitan planning organizations, federally-recognized
Indian tribes, and local governments to integrate
transportation, community, and system preservation plans and
practices that address the goals described in subsection (b).
``(b) Goals.--The goals of the program are to--
``(1) improve the efficiency of the transportation system
in the United States;
``(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 to identify
strategies, to encourage private sector development patterns
that achieve the goals identified in paragraphs (1) through
(4).
``(c) Allocation of Funds for Implementation.--
``(1) In general.--The Secretary shall allocate funds made
available to carry out this subsection to States,
metropolitan planning organizations, and local governments to
carry out projects to address transportation efficiency and
community and system preservation.
``(2) Criteria.--In allocating funds made available to
carry out this subsection, the Secretary shall give priority
to applicants that--
``(A) have instituted preservation or development plans and
programs that--
``(i) meet the requirements of this title and chapter 53 of
title 49, United States Code; and
``(ii)(I) are coordinated with State and local adopted
preservation or development plans;
``(II) are intended to promote cost-effective and strategic
investments in transportation infrastructure that minimize
adverse impacts on the environment; or
``(III) are intended to promote innovative private sector
strategies.
``(B) have instituted other policies to integrate
transportation and community and system preservation
practices, such as--
``(i) spending policies that direct funds to high-growth
areas;
``(ii) urban growth boundaries to guide metropolitan
expansion;
``(iii) `green corridors' programs that provide access to
major highway corridors for areas targeted for efficient and
compact development; or
``(iv) other similar programs or policies as determined by
the Secretary;
``(C) have preservation or development policies that
include a mechanism for reducing potential impacts of
transportation activities on the environment;
``(D) examine ways to encourage private sector investments
that address the purposes of this section; and
``(E) propose projects for funding that address the
purposes described in subsection (b)(2).
``(3) Equitable distribution.--In allocating funds to carry
out this subsection, the Secretary shall ensure the equitable
distribution of funds to a diversity of populations and
geographic regions.
``(4) Use of allocated funds.--
``(A) In general.--An allocation of funds made available to
carry out this subsection shall be used by the recipient to
implement the projects proposed in the application to the
Secretary.
``(B) Types of projects.--The allocation of funds shall be
available for obligation for--
``(i) any project eligible for funding under this title or
chapter 53 of title 49, United States Code; or
``(ii) any other activity relating to transportation and
community and system preservation that the Secretary
determines to be appropriate, including corridor preservation
activities that are necessary to implement--

``(I) transit-oriented development plans;
``(II) traffic calming measures; or
``(III) other coordinated transportation and community and
system preservation practices.

``(d) Funding.--
``(1) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this section $50,000,000 for each of
fiscal years 2004 through 2009.
``(2) Contract authority.--Funds authorized under this
subsection shall be available for obligation in the same
manner as if the funds were apportioned under this
chapter.''.
(b) Eligible Projects.--Section 133(b) of title 23, United
States Code (as amended by section 1701(a)), is amended by
adding at the end the following:
``(18) Transportation and community system preservation to
facilitate the planning, development, and implementation of
strategies of metropolitan planning organizations and local
governments to integrate transportation, community, and
system preservation plans and practices that address the
following:
``(A) Improvement of the efficiency of the transportation
system in the United States.
``(B) Reduction of the impacts of transportation on the
environment.
``(C) Reduction of the need for costly future investments
in public infrastructure.
``(D) Provision of efficient access to jobs, services, and
centers of trade.

[[Page S850]]

``(E) Examination of development patterns, and
identification of strategies to encourage private sector
development patterns, that achieve the goals identified in
subparagraphs (A) through (D).
``(19) Projects relating to intersections, including
intersections--
``(A) that--
``(i) have disproportionately high accident rates;
``(ii) have high levels of congestion, as evidenced by--

``(I) interrupted traffic flow at the intersection; and
``(II) a level of service rating, issued by the
Transportation Research Board of the National Academy of
Sciences in accordance with the Highway Capacity Manual, that
is not better than `F' during peak travel hours; and

``(iii) are directly connected to or located on a Federal-
aid highway; and
``(B) improvements that are approved in the regional plan
of the appropriate local metropolitan planning
organization.''.
(c) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1812(b)), is amended by adding at the end the
following:

``175. Transportation and community and system preservation pilot
program.''.

SEC. 1814. PARKING PILOT PROGRAMS.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1813(a)), is
amended by adding at the end the following:

``Sec. 176. Parking pilot programs

``(a) Commercial Truck Parking Pilot Program.--
``(1) Establishment.--In cooperation with appropriate
State, regional, and local governments, the Secretary shall
establish a pilot program to address the shortage of long-
term parking for drivers of commercial motor vehicles on the
National Highway System.
``(2) Allocation of funds.--
``(A) In general.--The Secretary shall allocate funds made
available under this subsection to States, metropolitan
planning organizations, and local governments.
``(B) Criteria.--In allocating funds under this subsection,
the Secretary shall give priority to an applicant that--
``(i) demonstrates a severe shortage of commercial vehicle
parking capacity on the corridor to be addressed;
``(ii) consults with affected State and local governments,
community groups, private providers of commercial vehicle
parking, and motorist and trucking organizations; and
``(iii) demonstrates that the project proposed by the
applicant is likely to have a positive effect on highway
safety, traffic congestion, or air quality.
``(3) Use of allocated funds.--
``(A) In general.--A recipient of funds allocated under
this subsection shall use the funds to carry out the project
proposed in the application submitted by the recipient to the
Secretary.
``(B) Types of projects.--Funds under this subsection shall
be available for obligation for projects that serve the
National Highway System, including--
``(i) construction of safety rest areas that include
parking for commercial motor vehicles;
``(ii) construction of commercial motor vehicle parking
facilities that are adjacent to commercial truck stops and
travel plazas;
``(iii) costs associated with the opening of facilities
(including inspection and weigh stations and park-and-ride
facilities) to provide commercial motor vehicle parking;
``(iv) projects that promote awareness of the availability
of public or private commercial motor vehicle parking on the
National Highway System, including parking in connection with
intelligent transportation systems and other systems;
``(v) construction of turnouts along the National Highway
System for commercial motor vehicles;
``(vi) capital improvements to public commercial motor
vehicle truck parking facilities closed on a seasonal basis
in order to allow the facilities to remain open year-around;
and
``(vii) improvements to the geometric design at
interchanges on the National Highway System to improve access
to commercial motor vehicle parking facilities.
``(4) Report.--Not later than 5 years after the date of
enactment of this section, the Secretary shall submit to
Congress a report on the results of the pilot program carried
out under this subsection.
``(5) Federal share.--The Federal share of the cost of a
project carried out under this subsection shall be consistent
with section 120.
``(6) Funding.--
``(A) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this subsection $10,000,000 for each of
fiscal years 2005 through 2009.
``(B) Contract authority.--Funds authorized under this
paragraph shall be available for obligation in the same
manner as if the funds were apportioned under this chapter.
``(b) Corridor and Fringe Parking Pilot Program.--
``(1) Establishment.--
``(A) In general.--In cooperation with appropriate State,
regional, and local governments, the Secretary shall carry
out a pilot program to provide corridor and fringe parking
facilities.
``(B) Primary function.--The primary function of a corridor
and fringe parking facility funded under this subsection
shall be to provide parking capacity to support car pooling,
van pooling, ride sharing, commuting, and high occupancy
vehicle travel.
``(C) Overnight parking.--A State may permit a facility
described in subparagraph (B) to be used for the overnight
parking of commercial vehicles if the use does not foreclose
or unduly limit the primary function of the facility
described in subparagraph (B).
``(2) Allocation of funds.--
``(A) In general.--The Secretary shall allocate funds made
available to carry out this subsection to States.
``(B) Criteria.--In allocating funds under this subsection,
the Secretary shall give priority to a State that--
``(i) demonstrates demand for corridor and fringe parking
on the corridor to be addressed;
``(ii) consults with affected metropolitan planning
organizations, local governments, community groups, and
providers of corridor and fringe parking; and
``(iii) demonstrates that the project proposed by the State
is likely to have a positive effect on ride sharing, traffic
congestion, or air quality.
``(3) Use of allocated funds.--
``(A) In general.--A recipient of funds allocated under
this subsection shall use the funds to carry out the project
proposed in the application submitted by the recipient to the
Secretary.
``(B) Types of projects.--Funds under this subsection shall
be available for obligation for projects that serve the
Federal-aid system, including--
``(i) construction of corridor and fringe parking
facilities;
``(ii) costs associated with the opening of facilities;
``(iii) projects that promote awareness of the availability
of corridor and fringe parking through the use of signage and
other means;
``(iv) capital improvements to corridor and fringe parking
facilities closed on a seasonal basis in order to allow the
facilities to remain open year-around; and
``(v) improvements to the geometric design on adjoining
roadways to facilitate access to, and egress from, corridor
and fringe parking facilities.
``(4) Report.--Not later than 5 years after the date of
enactment of this section, the Secretary shall submit to
Congress a report on the results of the pilot program carried
out under this subsection.
``(5) Federal share.--The Federal share of the cost of a
project carried out under this subsection shall be consistent
with section 120.
``(6) Funding.--
``(A) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this subsection $10,000,000 for each of
fiscal years 2005 through 2009.
``(B) Contract authority.--Funds authorized under this
paragraph shall be available for obligation in the same
manner as if the funds were apportioned under this
chapter.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter I of title 23, United States Code (as amended by
section 1813(c)), is amended by adding at the end the
following:

``176. Parking pilot programs.''.

SEC. 1815. INTERSTATE OASIS PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1814(a)), is
amended by adding at the end the following:

``Sec. 177. Interstate oasis program

``(a) In General.--Not later than 180 days after the date
of enactment of this section, in consultation with the States
and other interested parties, the Secretary shall--
``(1) establish an Interstate oasis program; and
``(2) develop standards for designating, as an Interstate
oasis, a facility that--
``(A) offers--
``(i) products and services to the public;
``(ii) 24-hour access to restrooms; and
``(iii) parking for automobiles and heavy trucks; and
``(B) meets other standards established by the Secretary.
``(b) Standards for Designation.--The standards for
designation under subsection (a) shall include standards
relating to--
``(1) the appearance of a facility; and
``(2) the proximity of the facility to the Interstate
System.
``(c) Eligibility for Designation.--If a State elects to
participate in the interstate oasis program, any facility
meeting the standards established by the Secretary shall be
eligible for designation under this section.
``(d) Logo.--The Secretary shall design a logo to be
displayed by a facility designated under this section.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter I of title 23, United States Code (as amended by
section 1814(b)), is amended by adding at the end the
following:

``177. Interstate oasis program.''.

SEC. 1816. TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS.

Section 204 of title 23, United States Code (as amended by
section 1806(f)(4)), is amended by adding at the end the
following:
``(n) Tribal-State Road Maintenance Agreements.--

[[Page S851]]

``(1) In general.--Notwithstanding any other provision of
law, regulation, policy, or guideline, an Indian tribe and a
State may enter into a road maintenance agreement under which
an Indian tribe assumes the responsibilities of the State
for--
``(A) Indian reservation roads; and
``(B) roads providing access to Indian reservation roads.
``(2) Tribal-state agreements.--Agreements entered into
under paragraph (1)--
``(A) shall be negotiated between the State and the Indian
tribe; and
``(B) shall not require the approval of the Secretary.
``(3) Annual report.--Effective beginning with fiscal year
2004, the Secretary shall prepare and submit to Congress an
annual report that identifies--
``(A) the Indian tribes and States that have entered into
agreements under paragraph (1);
``(B) the number of miles of roads for which Indian tribes
have assumed maintenance responsibilities; and
``(C) the amount of funding transferred to Indian tribes
for the fiscal year under agreements entered into under
paragraph (1).''.

SEC. 1817. NATIONAL FOREST SYSTEM ROADS.

Section 205 of title 23, United States Code, is amended by
adding at the end the following:
``(e) Of the amounts made available for National Forest
System roads, $15,000,000 for each fiscal year shall be used
by the Secretary of Agriculture to pay the costs of
facilitating the passage of aquatic species beneath roads in
the National Forest System, including the costs of
constructing, maintaining, replacing, or removing culverts
and bridges, as appropriate.''.

SEC. 1818. TERRITORIAL HIGHWAY PROGRAM.

(a) In General.--Chapter 2 of title 23, United States Code,
is amended by striking section 215 and inserting the
following:

``Sec. 215. Territorial highway program

``(a) Definitions.--In this section:
``(1) Program.--The term `program' means the territorial
highway program established under subsection (b).
``(2) Territory.--The term `territory' means the any of the
following territories of the United States:
``(A) American Samoa.
``(B) The Commonwealth of the Northern Mariana Islands.
``(C) Guam.
``(D) The United States Virgin Islands.
``(b) Program.--
``(1) In general.--Recognizing the mutual benefits that
will accrue to the territories and the United States from the
improvement of highways in the territories, the Secretary may
carry out a program to assist each territorial government in
the construction and improvement of a system of arterial and
collector highways, and necessary inter-island connectors,
that is--
``(A) designated by the Governor or chief executive officer
of each territory; and
``(B) approved by the Secretary.
``(2) Federal share.--The Secretary shall provide Federal
financial assistance to territories under this section in
accordance with section 120(h).
``(c) Technical Assistance.--
``(1) In general.--To continue a long-range highway
development program, the Secretary may provide technical
assistance to the governments of the territories to enable
the territories to, on a continuing basis--
``(A) engage in highway planning;
``(B) conduct environmental evaluations;
``(C) administer right-of-way acquisition and relocation
assistance programs; and
``(D) design, construct, operate, and maintain a system of
arterial and collector highways, including necessary inter-
island connectors.
``(2) Form and terms of assistance.--Technical assistance
provided under paragraph (1), and the terms for the sharing
of information among territories receiving the technical
assistance, shall be included in the agreement required by
subsection (e).
``(d) Nonapplicability of Certain Provisions.--
``(1) In general.--Except to the extent that provisions of
chapter 1 are determined by the Secretary to be inconsistent
with the needs of the territories and the intent of the
program, chapter 1 (other than provisions of chapter 1
relating to the apportionment and allocation of funds) shall
apply to funds authorized to be appropriated for the program.
``(2) Applicable provisions.--The specific sections of
chapter 1 that are applicable to each territory, and the
extent of the applicability of those section, shall be
identified in the agreement required by subsection (e).
``(e) Agreement.--
``(1) In general.--Except as provided in paragraph (3),
none of the funds made available for the program shall be
available for obligation or expenditure with respect to any
territory until the Governor or chief executive officer of
the territory enters into a new agreement with the Secretary
(which new agreement shall be entered into not later than 1
year after the date of enactment of the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004),
providing that the government of the territory shall--
``(A) implement the program in accordance with applicable
provisions of chapter 1 and subsection (d);
``(B) design and construct a system of arterial and
collector highways, including necessary inter-island
connectors, in accordance with standards that are--
``(i) appropriate for each territory; and
``(ii) approved by the Secretary;
``(C) provide for the maintenance of facilities constructed
or operated under 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) Technical assistance.--The new agreement required by
paragraph (1) shall--
``(A) specify the kind of technical assistance to be
provided under the program;
``(B) include appropriate provisions regarding information
sharing among the territories; and
``(C) delineate the oversight role and responsibilities of
the territories and the Secretary.
``(3) Review and revision of agreement.--The new agreement
entered into under paragraph (1) shall be reevaluated and, as
necessary, revised, at least every 2 years.
``(4) Existing agreements.--With respect to an agreement
between the Secretary and the Governor or chief executive
officer of a territory that is in effect as of the date of
enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004--
``(A) the agreement shall continue in force until replaced
by a new agreement in accordance with paragraph (1); and
``(B) amounts made available for the program under the
agreement shall be available for obligation or expenditure so
long as the agreement, or a new agreement under paragraph
(1), is in effect.
``(f) Permissible Uses of Funds.--
``(1) In general.--Funds made available for the program may
be used only for the following projects and activities
carried out in a territory:
``(A) Eligible surface transportation program projects
described in section 133(b).
``(B) Cost-effective, preventive maintenance consistent
with section 116.
``(C) Ferry boats, terminal facilities, and approaches, in
accordance with subsections (b) and (c) of section 129.
``(D) Engineering and economic surveys and investigations
for the planning, and the financing, of future highway
programs.
``(E) Studies of the economy, safety, and convenience of
highway use.
``(F) The regulation and equitable taxation of highway use.
``(G) Such research and development as are necessary in
connection with the planning, design, and maintenance of the
highway system.
``(2) Prohibition on use of funds for routine
maintenance.--None of the funds made available for the
program shall be obligated or expended for routine
maintenance.
``(g) Location of Projects.--Territorial highway projects
(other than those described in paragraphs (1), (3), and (4)
of section 133(b)) may not be undertaken on roads
functionally classified as local.''.
(b) Conforming Amendments.--
(1) Eligible projects.--Section 103(b)(6) of title 23,
United States Code, is amended by striking subparagraph (P)
and inserting the following:
``(P) Projects eligible for assistance under the
territorial highway program under section 215.''.
(2) 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''.
(3) Analysis.--The analysis for chapter 2 of title 23,
United States Code, is amended by striking the item relating
to section 215 and inserting the following:

``215. Territorial highway program.''.

SEC. 1819. MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY
DEPLOYMENT PROGRAM.

Section 322 of title 23, United States Code, is amended--
(1) in subsection (c)--
(A) by striking ``Not later than'' and inserting the
following:
``(1) Initial solicitation.--Not later than''; and
(B) by adding at the end the following:
``(2) Additional solicitation.--Not later than 1 year after
the date of enactment of this paragraph, the Secretary may
solicit additional applications from States, or authorities
designated by 1 or more States, for financial assistance
authorized by subsection (b) for planning, design, and
construction of eligible MAGLEV projects.'';
(2) in subsection (e), by striking ``Prior to soliciting
applications, the Secretary'' and inserting ``The
Secretary'';
(3) in subsection (h)--
(A) in subparagraph (A), by striking clause (i) and
inserting the following:
``(i) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this section $15,000,000 for each of
fiscal years 2004 through 2009.''; and
(B) in subparagraph (B), by striking clause (i) and
inserting the following:
``(i) In general.--There are authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this section--

``(I) $375,000,000 for fiscal year 2004;
``(II) $400,000,000 for fiscal year 2005;
``(III) $415,000,000 for fiscal year 2006;
``(IV) $425,000,000 for fiscal year 2007;
``(V) $435,000,000 for fiscal year 2008; and
``(VI) $450,000,000 for fiscal year 2009.''; and

[[Page S852]]

(4) by striking subsection (i).

SEC. 1820. DONATIONS AND CREDITS.

Section 323 of title 23, United States Code, is amended--
(1) in the first sentence of subsection (c), by inserting
``, or a local government from offering to donate funds,
materials, or services performed by local government
employees,'' after ``services''; and
(2) striking subsection (e).

SEC. 1821. DISADVANTAGED BUSINESS ENTERPRISES.

(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 and II of this
Act shall be expended with small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(b) Definitions.--In this section:
(1) Small business concern.--
(A) In general.--The term ``small business concern'' has
the meaning given the term under section 3 of the Small
Business Act (15 U.S.C. 632).
(B) Exclusion.--The term ``small business concern'' does
not include any concern or group of concerns controlled by
the same socially and economically disadvantaged individual
or individuals that 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 given the term under section
8(d) of the Small Business Act (15 U.S.C. 637(d)) and
relevant subcontracting regulations promulgated under that
section, except that women shall be presumed to be socially
and economically disadvantaged individuals for the 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
section. Such minimum uniform criteria shall include 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. 1822. EMERGENCY RELIEF.

Section 125(c)(1) of title 23, United States Code, is
amended by striking $100,000,000'' and inserting
``$300,000,000''.

Subtitle I--Technical Corrections

SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT.

(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''.

SEC. 1902. CLARIFICATION OF DATE.

Section 109(g) of title 23, United States Code, is amended
in the first sentence by striking ``The Secretary'' and all
that follows through ``of 1970'' and inserting ``Not later
than January 30, 1971, the Secretary shall issue''.

SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING
FUNDING SOURCES IN TITLE 23.

(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.

(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 312 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 ``by this Act'' the
first place it appears and all that follows through ``of
1978'' and inserting ``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,'' and all
that follows through ``Code, which'' and inserting ``the
Surface Transportation Assistance Act of 1982 (96 Stat. 2097)
or this title that'';
(D) by striking subsection (e); and
(E) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.

SEC. 1905. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION.

Section 140 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in the first sentence, by striking ``subsection (a) of
section 105 of this title'' and inserting ``section 135'';
(B) in the second sentence, by striking ``He'' and
inserting ``The Secretary'';
(C) in the third sentence, by striking ``where he considers
it necessary to assure'' and inserting ``if necessary to
ensure''; and
(D) in the last sentence--
(i) by striking ``him'' and inserting ``the Secretary'' and
(ii) by striking ``he'' and inserting ``the Secretary'';
(2) in subsection (b)--
(A) in the first sentence, by striking ``highway
construction'' and inserting ``surface transportation''; and
(B) in the second sentence--
(i) by striking ``as he may deem necessary'' and inserting
``as necessary''; and
(ii) by striking ``not to exceed $2,500,000 for the
transition quarter ending September 30, 1976, and'';
(3) in the second sentence of subsection (c)--
(A) by striking ``subsection 104(b)(3) of this title'' and
inserting ``section 104(b)(3)''; and
(B) by striking ``he may deem''; and
(4) in the heading of subsection (d), by striking ``and
contracting''.

TITLE II--TRANSPORTATION RESEARCH

Subtitle A--Funding

SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account):
(1) Surface transportation research.--
(A) In general.--For carrying out sections 502, 503, 506,
507, 508, and 511 of title 23, United States Code--
(i) $211,000,000 for each of fiscal years 2004 and 2005;
(ii) $215,000,000 for fiscal year 2006;
(iii) $218,000,000 for fiscal year 2007;
(iv) $220,000,000 for fiscal year 2008; and
(v) $223,000,000 for fiscal year 2009.
(B) Surface transportation-environmental cooperative
research program.--For each of fiscal years 2004 through
2009, the Secretary shall set aside $20,000,000 of the funds
authorized under subparagraph (A) to carry out the surface
transportation-environmental cooperative research program
under section 507 of title 23, United States Code.
(2) Training and education.--For carrying out section 504
of title 23, United States Code--
(A) $27,000,000 for fiscal year 2004;
(B) $28,000,000 for fiscal year 2005;
(C) $29,000,000 for fiscal year 2006;
(D) $30,000,000 for fiscal year 2007;
(E) $31,000,000 for fiscal year 2008; and
(F) $32,000,000 for fiscal year 2009.
(3) Bureau of transportation statistics.--For the Bureau of
Transportation Statistics to carry out section 111 of title
49, United States Code, $28,000,000 for each of fiscal years
2004 through 2009.
(4) ITS standards, research, operational tests, and
development.--For carrying out sections 524, 525, 526, 527,
528, and 529 of title 23, United States Code--
(A) $120,000,000 for fiscal year 2004;
(B) $123,000,000 for fiscal year 2005;
(C) $126,000,000 for fiscal year 2006;
(D) $129,000,000 for fiscal year 2007;
(E) $132,000,000 for fiscal year 2008; and
(F) $135,000,000 for fiscal year 2009.
(5) University transportation centers.--For carrying out
section 510 of title 23, United States Code--
(A) $40,000,000 for fiscal year 2004; and
(B) $45,000,000 for each of fiscal years 2005 through 2009.
(b) Applicability of Title 23, United States Code.--Funds
authorized to be appropriated by subsection (a)--
(1) 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 the funds shall be
the share applicable under section 120(b) of title 23, United
States

[[Page S853]]

Code, as adjusted under subsection (d) of that section
(unless otherwise specified or otherwise determined by the
Secretary); and
(2) shall remain available until expended.
(c) Allocations.--
(1) Surface transportation research.--Of the amounts made
available under subsection (a)(1)--
(A) $27,000,000 for each of fiscal years 2004 through 2009
shall be available to carry out advanced, high-risk, long-
term research under section 502(d) of title 23, United States
Code;
(B) $18,000,000 for fiscal years 2004 and 2005, $17,000,000
for fiscal year 2006, $15,000,000 for fiscal year 2007,
$12,000,000 for fiscal year 2008, and $10,00,000 for fiscal
year 2009 shall be available to carry out the long-term
pavement performance program under section 502(e) of that
title;
(C) $6,000,000 for each of fiscal years 2004 through 2009
shall be available to carry out the high-performance concrete
bridge research and technology transfer program under section
502(i) of that title;
(D) $6,000,000 for each of fiscal years 2004 through 2009
shall be made available to carry out research on asphalt used
in highway pavements;
(E) $6,000,000 for each of fiscal years 2004 through 2009
shall be made available to carry out research on concrete
pavements;
(F) $3,000,000 for each of fiscal years 2004 through 2009
shall be made available to carry out research on aggregates
used in highway pavements;
(G) $4,750,000 for each of fiscal years 2004 through 2009
shall be made available for further development and
deployment of techniques to prevent and mitigate alkali
silica reactivity; and
(H) $3,000,000 for each of fiscal years 2004 through 2009
shall be made available to carry out section 502(f)(3) of
title 23, United States Code.
(2) Technology application program.--Of the amounts made
available under subsection (a)(1), $60,000,000 for each of
fiscal years 2004 through 2009 shall be available to carry
out section 503 of title 23, United States Code.
(3) Training and education.--Of the amounts made available
under subsection (a)(2)--
(A) $12,000,000 for fiscal year 2004, $12,500,000 for
fiscal year 2005, $13,000,000 for fiscal year 2006,
$13,500,000 for fiscal year 2007, $14,000,000 for fiscal year
2008, and $14,500,000 for fiscal year 2009 shall be available
to carry out section 504(a) of title 23, United States Code
(relating to the National Highway Institute);
(B) $15,000,000 for each of fiscal years 2004 through 2009
shall be available to carry out section 504(b) of that title
(relating to local technical assistance); and
(C) $3,000,000 for each of fiscal years 2004 through 2009
shall be available to carry out section 504(c)(2) of that
title (relating to the Eisenhower Transportation Fellowship
Program).
(4) International highway transportation outreach
program.--Of the amounts made available under subsection
(a)(1), $500,000 for each of fiscal years 2004 through 2009
shall be available to carry out section 506 of title 23,
United States Code.
(5) New strategic highway research program.--For each of
fiscal years 2004 through 2009, to carry out section 509 of
title 23, United States Code, the Secretary shall set aside--
(A) $15,000,000 of the amounts made available to carry out
the interstate maintenance program under section 119 of title
23, United States Code, for the fiscal year;
(B) $19,000,000 of the amounts made available for the
National Highway System under section 101 of title 23, United
States Code, for the fiscal year;
(C) $13,000,000 of the amounts made available to carry out
the bridge program under section 144 of title 23, United
States Code, for the fiscal year;
(D) $20,000,000 of the amounts made available to carry out
the surface transportation program under section 133 of title
23, United States Code, for the fiscal year;
(E) $5,000,000 of the amounts made available to carry out
the congestion mitigation and air quality improvement program
under section 149 of title 23, United States Code, for the
fiscal year; and
(F) $3,000,000 of the amounts made available to carry out
the highway safety improvement program under section 148 of
title 23, United States Code, for the fiscal year.
(6) Commercial vehicle intelligent transportation system
infrastructure program.--Of the amounts made available under
subsection (a)(4), not less than $30,000,000 for each of
fiscal years 2004 through 2009 shall be available to carry
out section 527 of title 23, United States Code.
(d) Transfers of Funds.--The Secretary may transfer--
(1) to an amount made available under paragraphs (1), (2),
or (4) of subsection (c), not to exceed 10 percent of the
amount allocated for a fiscal year under any other of those
paragraphs; and
(2) to an amount made available under subparagraphs (A),
(B), or (C) of subsection (c)(3), not to exceed 10 percent of
the amount allocated for a fiscal year under any other of
those subparagraphs.

SEC. 2002. OBLIGATION CEILING.

Notwithstanding any other provision of law, the total of
all obligations from amounts made available from the Highway
Trust Fund (other than the Mass Transit Account) by section
2001(a) shall not exceed--
(1) $426,200,000 for fiscal year 2004;
(2) $435,200,000 for fiscal year 2005;
(3) $443,200,000 for fiscal year 2006;
(4) $450,200,000 for fiscal year 2007;
(5) $456,200,000 for fiscal year 2008; and
(6) $463,200,000 for fiscal year 2009.

SEC. 2003. NOTICE.

(a) Notice of Reprogramming.--If any funds authorized for
carrying out this title or the amendments made by this title
are subject to a reprogramming action that requires notice to
be provided to the Committee on Appropriations of the House
of Representatives and the Committee on Appropriations of the
Senate, notice of that action shall be concurrently provided
to the Committee on Transportation and Infrastructure and the
Committee on Science of the House of Representatives and the
Committee on Environment and Public Works of the Senate.
(b) Notice of Reorganization.--On or before the 15th day
preceding the date of any major reorganization of a program,
project, or activity of the Department of Transportation for
which funds are authorized by this title or the amendments
made by this title, the Secretary shall provide notice of the
reorganization to the Committee on Transportation and
Infrastructure and the Committee on Science of the House of
Representatives and the Committee on Environment and Public
Works of the Senate.

Subtitle B--Research and Technology

SEC. 2101. RESEARCH AND TECHNOLOGY PROGRAM.

(a) In General.--Chapter 5 of title 23, United States Code,
is amended to read as follows:

``CHAPTER 5--RESEARCH AND TECHNOLOGY

``SUBCHAPTER I--SURFACE TRANSPORTATION

``Sec.
``501. Definitions.
``502. Surface transportation research.
``503. Technology application program.
``504. Training and education.
``505. State planning and research.
``506. International highway transportation outreach program.
``507. Surface transportation-environmental cooperative research
program.
``508. Surface transportation research technology deployment and
strategic planning.
``509. New strategic highway research program.
``510. University transportation centers.
``511. Multistate corridor operations and management.

``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND
TECHNICAL ASSISTANCE PROGRAM

``521. Finding.
``522. Goals and purposes.
``523. Definitions.
``524. General authorities and requirements.
``525. National ITS Program Plan.
``526. National ITS architecture and standards.
``527. Commercial vehicle intelligent transportation system
infrastructure program.
``528. Research and development.
``529. Use of funds.

``SUBCHAPTER I--SURFACE TRANSPORTATION

``Sec. 501. Definitions

``In this subchapter:
``(1) Federal laboratory.--The term `Federal laboratory'
includes--
``(A) a Government-owned, Government-operated laboratory;
and
``(B) a Government-owned, contractor-operated laboratory.
``(2) Safety.--The term `safety' includes highway and
traffic safety systems, research, and development relating
to--
``(A) vehicle, highway, driver, passenger, bicyclist, and
pedestrian characteristics;
``(B) accident investigations;
``(C) communications;
``(D) emergency medical care; and
``(E) transportation of the injured.

``Sec. 502. Surface transportation research

``(a) In General.--
``(1) Research, development, and technology transfer
activities.--The Secretary may carry out research,
development, and technology transfer activities with respect
to--
``(A) all phases of transportation planning and development
(including new technologies, construction, transportation
systems management and operations development, design,
maintenance, safety, security, financing, data collection and
analysis, demand forecasting, multimodal assessment, and
traffic conditions); and
``(B) the effect of State laws on the activities described
in subparagraph (A).
``(2) Tests and development.--The Secretary may test,
develop, or assist in testing and developing, any material,
invention, patented article, or process.
``(3) Cooperation, grants, and contracts.--
``(A) In general.--The Secretary may carry out this
section--
``(i) independently;
``(ii) in cooperation with--

``(I) any other Federal agency or instrumentality; and

[[Page S854]]

``(II) any Federal laboratory; or

``(iii) by making grants to, or entering into contracts,
cooperative agreements, and other transactions with--

``(I) the National Academy of Sciences;
``(II) the American Association of State Highway and
Transportation Officials;
``(III) planning organizations;
``(IV) a Federal laboratory;
``(V) a State agency;
``(VI) an authority, association, institution, or
organization;
``(VII) a for-profit or nonprofit corporation;
``(VIII) a foreign country; or
``(IX) any other person.

``(B) Competition; review.--All parties entering into
contracts, cooperative agreements or other transactions with
the Secretary, or receiving grants, to perform research or
provide technical assistance under this section shall be
selected, to the maximum extent practicable and appropriate--
``(i) on a competitive basis; and
``(ii) on the basis of the results of peer review of
proposals submitted to the Secretary.
``(4) Technological innovation.--The programs and
activities carried out under this section shall be consistent
with the surface transportation research and technology
development strategic plan developed under section 508(c).
``(5) Funds.--
``(A) Special account.--In addition to other funds made
available to carry out this section, the Secretary shall use
such funds as may be deposited by any cooperating
organization or person in a special account of the Treasury
established for this purpose.
``(B) Use of funds.--The Secretary shall use funds made
available to carry out this section to develop, administer,
communicate, and promote the use of products of research,
development, and technology transfer programs under this
section.
``(b) Collaborative Research and Development.--
``(1) In general.--To encourage innovative solutions to
surface transportation problems and stimulate the deployment
of new technology, the Secretary may carry out, on a cost-
shared basis, collaborative research and development with--
``(A) non-Federal entities (including State and local
governments, foreign governments, colleges and universities,
corporations, institutions, partnerships, sole
proprietorships, and trade associations that are incorporated
or established under the laws of any State); and
``(B) Federal laboratories.
``(2) Agreements.--In carrying out this subsection, the
Secretary may enter into cooperative research and development
agreements (as defined in section 12 of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710a)).
``(3) Federal share.--
``(A) In general.--The Federal share of the cost of
activities carried out under a cooperative research and
development agreement entered into under this subsection
shall not exceed 50 percent, except that if there is
substantial public interest or benefit, the Secretary may
approve a greater Federal share.
``(B) Non-federal share.--All costs directly incurred by
the non-Federal partners, including personnel, travel, and
hardware development costs, shall be credited toward the non-
Federal share of the cost of the activities described in
subparagraph (A).
``(4) Use of technology.--The research, development, or use
of a technology under a cooperative research and development
agreement entered into under this subsection, including the
terms under which the technology may be licensed and the
resulting royalties may be distributed, shall be subject to
the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3701 et seq.).
``(5) Waiver of advertising requirements.--Section 3709 of
the Revised Statutes (41 U.S.C. 5) shall not apply to a
contract or agreement entered into under this chapter.
``(c) Contents of Research Program.--The Secretary shall
include as priority areas of effort within the surface
transportation research program--
``(1) the development of new technologies and methods in
materials, pavements, structures, design, and construction,
with the objectives of--
``(A)(i) increasing to 50 years the expected life of
pavements;
``(ii) increasing to 100 years the expected life of
bridges; and
``(iii) significantly increasing the durability of other
infrastructure;
``(B) lowering the life-cycle costs, including--
``(i) construction costs;
``(ii) maintenance costs;
``(iii) operations costs; and
``(vi) user costs.
``(2) the development, and testing for effectiveness, of
nondestructive evaluation technologies for civil
infrastructure using existing and new technologies;
``(3) the investigation of--
``(A) the application of current natural hazard mitigation
techniques to manmade hazards; and
``(B) the continuation of hazard mitigation research
combining manmade and natural hazards;
``(4) the improvement of safety--
``(A) at intersections;
``(B) with respect to accidents involving vehicles run off
the road; and
``(C) on rural roads;
``(5) the reduction of work zone incursions and improvement
of work zone safety;
``(6) the improvement of geometric design of roads for the
purpose of safety;
``(7) the examination of data collected through the
national bridge inventory conducted under section 144 using
the national bridge inspection standards established under
section 151, with the objectives of determining whether--
``(A) the most useful types of data are being collected;
and
``(B) any improvement could be made in the types of data
collected and the manner in which the data is collected, with
respect to bridges in the United States;
``(8) the improvement of the infrastructure investment
needs report described in subsection (g) through--
``(A) the study and implementation of new methods of
collecting better quality data, particularly with respect to
performance, congestion, and infrastructure conditions;
``(B) monitoring of the surface transportation system in a
system-wide manner, through the use of--
``(i) intelligent transportation system technologies of
traffic operations centers; and
``(ii) other new data collection technologies as sources of
better quality performance data;
``(C) the determination of the critical metrics that should
be used to determine the condition and performance of the
surface transportation system; and
``(D) the study and implementation of new methods of
statistical analysis and computer models to improve the
prediction of future infrastructure investment requirements;
``(9) the development of methods to improve the
determination of benefits from infrastructure improvements,
including--
``(A) more accurate calculations of benefit-to-cost ratios,
considering benefits and impacts throughout local and
regional transportation systems;
``(B) improvements in calculating life-cycle costs; and
``(C) valuation of assets;
``(10) the improvement of planning processes to better
predict outcomes of transportation projects, including the
application of computer simulations in the planning process
to predict outcomes of planning decisions;
``(11) the multimodal applications of Geographic
Information Systems and remote sensing, including such areas
of application as--
``(A) planning;
``(B) environmental decisionmaking and project delivery;
and
``(C) freight movement;
``(12) the development and application of methods of
providing revenues to the Highway Trust Fund with the
objective of offsetting potential reductions in fuel tax
receipts;
``(13) the development of tests and methods to determine
the benefits and costs to communities of major transportation
investments and projects;
``(14) the conduct of extreme weather research, including
research to--
``(A) reduce contraction and expansion damage;
``(B) reduce or repair road damage caused by freezing and
thawing;
``(C) improve deicing or snow removal techniques;
``(D) develop better methods to reduce the risk of thermal
collapse, including collapse from changes in underlying
permafrost;
``(E) improve concrete and asphalt installation in extreme
weather conditions; and
``(F) make other improvements to protect highway
infrastructure or enhance highway safety or performance;
``(15) the improvement of surface transportation planning;
``(16) environmental research;
``(17) transportation system management and operations; and
``(18) any other surface transportation research topics
that the Secretary determines, in accordance with the
strategic planning process under section 508, to be critical.
``(d) Advanced, High-Risk Research.--
``(1) In general.--The Secretary shall establish and carry
out, in accordance with the surface transportation research
and technology development strategic plan developed under
section 508(c) and research priority areas described in
subsection (c), an advanced research program that addresses
longer-term, higher-risk research with potentially dramatic
breakthroughs for improving the durability, efficiency,
environmental impact, productivity, and safety (including
bicycle and pedestrian safety) aspects of highway and
intermodal transportation systems.
``(2) Partnerships.--In carrying out the program, the
Secretary shall seek to develop partnerships with the public
and private sectors.
``(3) Report.--The Secretary shall include in the strategic
plan required under section 508(c) a description of each of
the projects, and the amount of funds expended for each
project, carried out under this subsection during the fiscal
year.
``(e) Long-Term Pavement Performance Program.--
``(1) Authority.--The Secretary shall continue, through
September 30, 2009, the long-term pavement performance
program tests, monitoring, and data analysis.
``(2) Grants, cooperative agreements, and contracts.--Under
the program, the Secretary shall make grants and enter into
cooperative agreements and contracts to--

[[Page S855]]

``(A) monitor, material-test, and evaluate highway test
sections in existence as of the date of the grant, agreement,
or contract;
``(B) analyze the data obtained in carrying out
subparagraph (A); and
``(C) prepare products to fulfill program objectives and
meet future pavement technology needs.
``(3) Conclusion of program.--
``(A) Summary report.--The Secretary shall include in the
strategic plan required under section 508(c) a report on the
initial conclusions of the long-term pavement performance
program that includes--
``(i) an analysis of any research objectives that remain to
be achieved under the program;
``(ii) an analysis of other associated longer-term
expenditures under the program that are in the public
interest;
``(iii) a detailed plan regarding the storage, maintenance,
and user support of the database, information management
system, and materials reference library of the program;
``(iv) a schedule for continued implementation of the
necessary data collection and analysis and project plan under
the program; and
``(v) an estimate of the costs of carrying out each of the
activities described in clauses (i) through (iv) for each
fiscal year during which the program is carried out.
``(B) Deadline; usefulness of advances.--The Secretary
shall, to the maximum extent practicable--
``(i) ensure that the long-term pavement performance
program is concluded not later than September 30, 2009; and
``(ii) make such allowances as are necessary to ensure the
usefulness of the technological advances resulting from the
program.
``(f) Seismic Research.--The Secretary shall--
``(1) in consultation and cooperation with Federal agencies
participating in the National Earthquake Hazards Reduction
Program established by section 5 of the Earthquake Hazards
Reduction Act of 1977 (42 U.S.C. 7704), coordinate the
conduct of seismic research;
``(2) take such actions as are necessary to ensure that the
coordination of the research is consistent with--
``(A) planning and coordination activities of the Director
of the Federal Emergency Management Agency under section
5(b)(1) of that Act (42 U.S.C. 7704(b)(1)); and
``(B) the plan developed by the Director of the Federal
Emergency Management Agency under section 8(b) of that Act
(42 U.S.C. 7705b(b)); and
``(3) in cooperation with the Center for Civil Engineering
Research at the University of Nevada, Reno, carry out a
seismic research program--
``(A) to study the vulnerability of the Federal-aid highway
system and other surface transportation systems to seismic
activity;
``(B) to develop and implement cost-effective methods to
reduce the vulnerability; and
``(C) to conduct seismic research and upgrade earthquake
simulation facilities as necessary to carry out the program.
``(g) Infrastructure Investment Needs Report.--
``(1) In general.--Not later than July 31, 2004, and July
31 of every second year thereafter, the Secretary shall
submit to the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report that
describes--
``(A) estimates of the future highway and bridge needs of
the United States; and
``(B) the backlog of current highway and bridge needs.
``(2) Comparison with prior reports.--Each report under
paragraph (1) shall provide the means, including all
necessary information, to relate and compare the conditions
and service measures used in the previous biennial reports.
``(h) Security Related Research and Technology Transfer
Activities.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004, the Secretary,
in consultation with the Secretary of Homeland Security, with
key stakeholder input (including State transportation
departments) shall develop a 5-year strategic plan for
research and technology transfer and deployment activities
pertaining to the security aspects of highway infrastructure
and operations.
``(2) Components of plan.--The plan shall include--
``(A) an identification of which agencies are responsible
for the conduct of various research and technology transfer
activities;
``(B) a description of the manner in which those activities
will be coordinated; and
``(C) a description of the process to be used to ensure
that the advances derived from relevant activities supported
by the Federal Highway Administration are consistent with the
operational guidelines, policies, recommendations, and
regulations of the Department of Homeland Security; and
``(D) a systematic evaluation of the research that should
be conducted to address, at a minimum--
``(i) vulnerabilities of, and measures that may be taken to
improve, emergency response capabilities and evacuations;
``(ii) recommended upgrades of traffic management during
crises;
``(iii) enhanced communications among the public, the
military, law enforcement, fire and emergency medical
services, and transportation agencies;
``(iv) protection of critical, security-related
infrastructure; and
``(v) structural reinforcement of key facilities.
``(3) Submission.--On completion of the plan under this
subsection, the Secretary shall submit to the Committee on
Environment and Public Works of the Senate and the Committee
on Transportation and Infrastructure of the House of
Representatives--
``(A) a copy of the plan developed under paragraph (1); and
``(B) a copy of a memorandum of understanding specifying
coordination strategies and assignment of responsibilities
covered by the plan that is signed by the Secretary and the
Secretary of Homeland Security.
``(i) High-Performance Concrete Bridge Research and
Technology Transfer Program.--In accordance with the
objectives described in subsection (c)(1) and the
requirements under sections 503(b)(4) and 504(b), the
Secretary shall carry out a program to demonstrate the
application of high-performance concrete in the construction
and rehabilitation of bridges.
``(j) Biobased Transportation Research.--There shall be
available from the Highway Trust Fund (other than the Mass
Transit Account) $18,000,000 for each of fiscal years 2004
through 2009 equally divided and available to carry out
biobased research of national importance at the National
Biodiesel Board and at research centers identified in section
9011 of Public Law 107-171.

``Sec. 503. Technology application program

``(a) Technology Application Initiatives and Partnerships
Program.--
``(1) Establishment.--The Secretary, in consultation with
interested stakeholders, shall develop and administer a
national technology and innovation application initiatives
and partnerships program.
``(2) Purpose.--The purpose of the program shall be to
significantly accelerate the adoption of technology and
innovation by the surface transportation community.
``(3) Application goals.--
``(A) Establishment.--Not later than 180 days after the
date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004, the Secretary,
in consultation with the Surface Transportation Research
Technology Advisory Committee, State transportation
departments, and other interested stakeholders, shall
establish, as part of the surface transportation research and
technology development strategic plan under section 508(c),
goals to carry out paragraph (1).
``(B) Design.--Each of the goals and the program developed
to achieve the goals shall be designed to provide tangible
benefits, with respect to transportation systems, in the
areas of efficiency, safety, reliability, service life,
environmental protection, and sustainability.
``(C) Strategies for achievement.--For each goal, the
Secretary, in cooperation with representatives of the
transportation community, such as States, local governments,
the private sector, and academia, shall use domestic and
international technology to develop strategies and
initiatives to achieve the goal, including technical
assistance in deploying technology and mechanisms for sharing
information among program participants.
``(4) Integration with other programs.--The Secretary shall
integrate activities carried out under this subsection with
the efforts of the Secretary to--
``(A) disseminate the results of research sponsored by the
Secretary; and
``(B) facilitate technology transfer.
``(5) Leveraging of federal resources.--In selecting
projects to be carried out under this subsection, the
Secretary shall give preference to projects that leverage
Federal funds with other significant public or private
resources.
``(6) Grants, cooperative agreements, and contracts.--Under
the program, the Secretary may make grants and enter into
cooperative agreements and contracts to foster alliances and
support efforts to stimulate advances in transportation
technology.
``(7) Reports.--The results and progress of activities
carried out under this section shall be published as part of
the annual transportation research report prepared by the
Secretary under section 508(c)(5).
``(8) Allocation.--To the extent appropriate to achieve the
goals established under paragraph (3), the Secretary may
further allocate funds made available to carry out this
section to States for use by those States.
``(b) Innovative Surface Transportation Infrastructure
Research and Construction Program.--
``(1) In general.--The Secretary shall establish and carry
out a program for the application of innovative material,
design, and construction technologies in the construction,
preservation, and rehabilitation of elements of surface
transportation infrastructure.
``(2) Goals.--The goals of the program shall include--
``(A) the development of new, cost-effective, and
innovative materials;
``(B) the reduction of maintenance costs and life-cycle
costs of elements of infrastructure, including the costs of
new construction, replacement, and rehabilitation;
``(C) the development of construction techniques to
increase safety and reduce construction time and traffic
congestion;

[[Page S856]]

``(D) the development of engineering design criteria for
innovative products and materials for use in surface
transportation infrastructure;
``(E) the development of highway bridges and structures
that will withstand natural disasters and disasters caused by
human activity; and
``(F) the development of new, nondestructive technologies
and techniques for the evaluation of elements of
transportation infrastructure.
``(3) Grants, cooperative agreements, and contracts.--
``(A) In general.--Under the program, the Secretary shall
make grants to, and enter into cooperative agreements and
contracts with--
``(i) States, other Federal agencies, universities and
colleges, private sector entities, and nonprofit
organizations, to pay the Federal share of the cost of
research, development, and technology transfer concerning
innovative materials and methods; and
``(ii) States, to pay the Federal share of the cost of
repair, rehabilitation, replacement, and new construction of
elements of surface transportation infrastructure that
demonstrate the application of innovative materials and
methods.
``(B) Applications.--
``(i) In general.--To receive a grant under this
subsection, an entity described in subparagraph (A) shall
submit to the Secretary an application in such form and
containing such information as the Secretary may require.
``(ii) Approval.--The Secretary shall select and approve an
application based on whether the proposed project that is the
subject of the application would meet the goals described in
paragraph (2).
``(4) Technology and information transfer.--The Secretary
shall take such action as is necessary to--
``(A) ensure that the information and technology resulting
from research conducted under paragraph (3) is made available
to State and local transportation departments and other
interested parties, as specified by the Secretary; and
``(B) encourage the use of the information and technology.
``(5) Federal share.--The Federal share of the cost of a
project under this section shall be determined by the
Secretary.

``Sec. 504. Training and education

``(a) National Highway Institute.--
``(1) In general.--The Secretary shall--
``(A) operate, in the Federal Highway Administration, a
National Highway Institute (referred to in this subsection as
the `Institute'); and
``(B) administer, through the Institute, the authority
vested in the Secretary by this title or by any other law for
the development and conduct of education and training
programs relating to highways.
``(2) Duties of the institute.--In cooperation with State
transportation departments, industries in the United States,
and national or international entities, the Institute shall
develop and administer education and training programs of
instruction for--
``(A) Federal Highway Administration, State, and local
transportation agency employees;
``(B) regional, State, and metropolitan planning
organizations;
``(C) State and local police, public safety, and motor
vehicle employees; and
``(D) United States citizens and foreign nationals engaged
or to be engaged in surface transportation work of interest
to the United States.
``(3) Courses.--
``(A) In general.--The Institute shall--
``(i) develop or update existing courses in asset
management, including courses that include such components
as--

``(I) the determination of life-cycle costs;
``(II) the valuation of assets;
``(III) benefit-to-cost ratio calculations; and
``(IV) objective decisionmaking processes for project
selection; and

``(ii) continually develop courses relating to the
application of emerging technologies for--

``(I) transportation infrastructure applications and asset
management;
``(II) intelligent transportation systems;
``(III) operations (including security operations);
``(IV) the collection and archiving of data;
``(V) expediting the planning and development of
transportation projects; and
``(VI) the intermodal movement of individuals and freight.

``(B) Additional courses.--In addition to the courses
developed under subparagraph (A), the Institute, in
consultation with State transportation departments,
metropolitan planning organizations, and the American
Association of State Highway and Transportation Officials,
may develop courses relating to technology, methods,
techniques, engineering, construction, safety, maintenance,
environmental mitigation and compliance, regulations,
management, inspection, and finance.
``(C) Revision of courses offered.--The Institute shall
periodically--
``(i) review the course inventory of the Institute; and
``(ii) revise or cease to offer courses based on course
content, applicability, and need.
``(4) Eligibility; federal share.--The funds apportioned to
a State under section 104(b)(3) for the surface
transportation program shall be available for expenditure by
the State transportation department for the payment of not to
exceed 80 percent of the cost of tuition and direct
educational expenses (excluding salaries) in connection with
the education and training of employees of State and local
transportation agencies in accordance with this subsection.
``(5) Federal responsibility.--
``(A) In general.--Except as provided in subparagraph (B),
education and training of employees of Federal, State, and
local transportation (including highway) agencies authorized
under this subsection may be provided--
``(i) by the Secretary, at no cost to the States and local
governments, if the Secretary determines that provision at no
cost is in the public interest; or
``(ii) by the State, through grants, cooperative
agreements, and contracts with public and private agencies,
institutions, individuals, and the Institute.
``(B) Payment of full cost by private persons.--Private
agencies, international or foreign entities, and individuals
shall pay the full cost of any education and training
(including the cost of course development) received by the
agencies, entities, and individuals, unless the Secretary
determines that payment of a lesser amount of the cost is of
critical importance to the public interest.
``(6) Training fellowships; cooperation.--The Institute
may--
``(A) engage in training activities authorized under this
subsection, including the granting of training fellowships;
and
``(B) exercise the authority of the Institute independently
or in cooperation with any--
``(i) other Federal or State agency;
``(ii) association, authority, institution, or
organization;
``(iii) for-profit or nonprofit corporation;
``(iv) national or international entity;
``(v) foreign country; or
``(vi) person.
``(7) Collection of fees.--
``(A) In general.--In accordance with this subsection, the
Institute may assess and collect fees to defray the costs of
the Institute in developing or administering education and
training programs under this subsection.
``(B) Persons subject to fees.--Fees may be assessed and
collected under this subsection only with respect to--
``(i) persons and entities for whom education or training
programs are developed or administered under this subsection;
and
``(ii) persons and entities to whom education or training
is provided under this subsection.
``(C) Amount of fees.--The fees assessed and collected
under this subsection shall be established in a manner that
ensures that the liability of any person or entity for a fee
is reasonably based on the proportion of the costs referred
to in subparagraph (A) that relate to the person or entity.
``(D) Use.--All fees collected under this subsection shall
be used, without further appropriation, to defray costs
associated with the development or administration of
education and training programs authorized under this
subsection.
``(8) Relation to fees.--The funds made available to carry
out this subsection may be combined with or held separate
from the fees collected under--
``(A) paragraph (7);
``(B) memoranda of understanding;
``(C) regional compacts; and
``(D) other similar agreements.
``(b) Local Technical Assistance Program.--
``(1) Authority.--The Secretary shall carry out a local
technical assistance program that will provide access to
surface transportation technology to--
``(A) highway and transportation agencies in urbanized
areas;
``(B) highway and transportation agencies in rural areas;
``(C) contractors that perform work for the agencies; and
``(D) infrastructure security.
``(2) Grants, cooperative agreements, and contracts.--The
Secretary may make grants and enter into cooperative
agreements and contracts to provide education and training,
technical assistance, and related support services to--
``(A) assist rural, local transportation agencies and
tribal governments, and the consultants and construction
personnel working for the agencies and governments, to--
``(i) develop and expand expertise in road and
transportation areas (including pavement, bridge, concrete
structures, intermodal connections, safety management
systems, intelligent transportation systems, incident
response, operations, and traffic safety countermeasures);
``(ii) improve roads and bridges;
``(iii) enhance--

``(I) programs for the movement of passengers and freight;
and
``(II) intergovernmental transportation planning and
project selection; and

``(iv) deal effectively with special transportation-related
problems by preparing and providing training packages,
manuals, guidelines, and technical resource materials;
``(B) develop technical assistance for tourism and
recreational travel;
``(C) identify, package, and deliver transportation
technology and traffic safety information to local
jurisdictions to assist urban transportation agencies in
developing and expanding their ability to deal effectively

[[Page S857]]

with transportation-related problems (particularly the
promotion of regional cooperation);
``(D) operate, in cooperation with State transportation
departments and universities--
``(i) local technical assistance program centers designated
to provide transportation technology transfer services to
rural areas and to urbanized areas; and
``(ii) local technical assistance program centers
designated to provide transportation technical assistance to
tribal governments; and
``(E) allow local transportation agencies and tribal
governments, in cooperation with the private sector, to
enhance new technology implementation.
``(c) Research Fellowships.--
``(1) General authority.--The Secretary, acting
independently or in cooperation with other Federal agencies
and instrumentalities, may make grants for research
fellowships for any purpose for which research is authorized
by this chapter.
``(2) Dwight david eisenhower transportation fellowship
program.--The Secretary shall establish and implement a
transportation research fellowship program, to be known as
the `Dwight David Eisenhower Transportation Fellowship
Program', for the purpose of attracting qualified students to
the field of transportation.

``Sec. 505. State planning and research

``(a) In General.--Two percent of the sums apportioned to a
State for fiscal year 2004 and each fiscal year thereafter
under sections 104 (other than subsections (f) and (h)) and
144 shall be available for expenditure by the State, in
consultation with the Secretary, only for--
``(1) the conduct of engineering and economic surveys and
investigations;
``(2) the planning of--
``(A) future highway programs and local public
transportation systems; and
``(B) the financing of those programs and systems,
including metropolitan and statewide planning under sections
134 and 135;
``(3) the development and implementation of management
systems under section 303;
``(4) the conduct of studies on--
``(A) the economy, safety, and convenience of surface
transportation systems; and
``(B) the desirable regulation and equitable taxation of
those systems;
``(5) research, development, and technology transfer
activities necessary in connection with the planning, design,
construction, management, and maintenance of highway, public
transportation, and intermodal transportation systems;
``(6) the conduct of studies, research, and training
relating to the engineering standards and construction
materials for surface transportation systems described in
paragraph (5) (including the evaluation and accreditation of
inspection and testing and the regulation of and charging for
the use of the standards and materials); and
``(7) the conduct of activities relating to the planning of
real-time monitoring elements.
``(b) Minimum Expenditures on Research, Development, and
Technology Transfer Activities.--
``(1) In general.--Subject to paragraph (2), not less than
25 percent of the funds subject to subsection (a) that are
apportioned to a State for a fiscal year shall be expended by
the State for research, development, and technology transfer
activities that--
``(A) are described in subsection (a); and
``(B) relate to highway, public transportation, and
intermodal transportation systems.
``(2) Waivers.--The Secretary may waive the application of
paragraph (1) with respect to a State for a fiscal year if--
``(A) the State certifies to the Secretary for the fiscal
year that total expenditures by the State for transportation
planning under sections 134 and 135 will exceed 75 percent of
the funds described in paragraph (1); and
``(B) the Secretary accepts the certification of the State.
``(3) Nonapplicability of assessment.--Funds expended under
paragraph (1) 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).
``(c) Federal Share.--The Federal share of the cost of a
project carried out using funds subject to subsection (a)
shall be the share applicable under section 120(b), as
adjusted under subsection (d) of that section.
``(d) Administration of Sums.--Funds subject to subsection
(a) shall be--
``(1) combined and administered by the Secretary as a
single fund; and
``(2) available for obligation for the period described in
section 118(b)(2).
``(e) Eligible Use of State Planning and Research Funds.--A
State, in coordination with the Secretary, may obligate funds
made available to carry out this section for any purpose
authorized under section 506(a).

``Sec. 506. International highway transportation outreach
program

``(a) Establishment.--The Secretary may establish an
international highway transportation outreach program--
``(1) to inform the United States highway community of
technological innovations in foreign countries that could
significantly improve highway transportation in the United
States;
``(2) to promote United States highway transportation
expertise, goods, and services in foreign countries; and
``(3) to increase transfers of United States highway
transportation technology to foreign countries.
``(b) Activities.--Activities carried out under the program
may include--
``(1) the development, monitoring, assessment, and
dissemination in the United States of information about
highway transportation innovations in foreign countries that
could significantly improve highway transportation in the
United States;
``(2) research, development, demonstration, training, and
other forms of technology transfer and exchange;
``(3) the provision to foreign countries, through
participation in trade shows, seminars, expositions, and
other similar activities, of information relating to the
technical quality of United States highway transportation
goods and services;
``(4) the offering of technical services of the Federal
Highway Administration that cannot be readily obtained from
private sector firms in the United States for incorporation
into the proposals of those firms undertaking highway
transportation projects outside the United States, if the
costs of the technical services will be recovered under the
terms of the project;
``(5) the conduct of studies to assess the need for, or
feasibility of, highway transportation improvements in
foreign countries; and
``(6) the gathering and dissemination of information on
foreign transportation markets and industries.
``(c) Cooperation.--The Secretary may carry out this
section in cooperation with any appropriate--
``(1) Federal, State, or local agency;
``(2) authority, association, institution, or organization;
``(3) for-profit or nonprofit corporation;
``(4) national or international entity;
``(5) foreign country; or
``(6) person.
``(d) Funds.--
``(1) Contributions.--Funds available to carry out this
section shall include funds deposited by any cooperating
organization or person into a special account of the Treasury
established for this purpose.
``(2) Eligible uses of funds.--The funds deposited into the
account, and other funds available to carry out this section,
shall be available to cover the cost of any activity eligible
under this section, including the cost of--
``(A) promotional materials;
``(B) travel;
``(C) reception and representation expenses; and
``(D) salaries and benefits.
``(3) Reimbursements for salaries and benefits.--
Reimbursements for salaries and benefits of Department of
Transportation employees providing services under this
section shall be credited to the account.
``(e) Report--For each fiscal year, the Secretary shall
submit to the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report that
describes the destinations and individual trip costs of
international travel conducted in carrying out activities
described in this section.

``Sec. 507. Surface transportation-environmental cooperative
research program

``(a) In General.--The Secretary shall establish and carry
out a surface transportation-environmental cooperative
research program.
``(b) Contents.--The program carried out under this section
may include research--
``(1) to develop more accurate models for evaluating
transportation control measures and transportation system
designs that are appropriate for use by State and local
governments (including metropolitan planning organizations)
in designing implementation plans to meet Federal, State, and
local environmental requirements;
``(2) to improve understanding of the factors that
contribute to the demand for transportation;
``(3) to develop indicators of economic, social, and
environmental performance of transportation systems to
facilitate analysis of potential alternatives;
``(4) to meet additional priorities as determined by the
Secretary in the strategic planning process under section
508; and
``(5) to refine, through the conduct of workshops,
symposia, and panels, and in consultation with stakeholders
(including the Department of Energy, the Environmental
Protection Agency, and other appropriate Federal and State
agencies and associations) the scope and research emphases of
the program.
``(c) Program Administration.--The Secretary shall--
``(1) administer the program established under this
section; and
``(2) ensure, to the maximum extent practicable, that--
``(A) the best projects and researchers are selected to
conduct research in the priority areas described in
subsection (b)--
``(i) on the basis of merit of each submitted proposal; and
``(ii) through the use of open solicitations and selection
by a panel of appropriate experts;
``(B) a qualified, permanent core staff with the ability
and expertise to manage a large multiyear budget is used;
``(C) the stakeholders are involved in the governance of
the program, at the executive,

[[Page S858]]

overall program, and technical levels, through the use of
expert panels and committees; and
``(D) there is no duplication of research effort between
the program established under this section and the new
strategic highway research program established under section
509.
``(d) National Academy of Sciences.--The Secretary may make
grants to, and enter into cooperative agreements with, the
National Academy of Sciences to carry out such activities
relating to the research, technology, and technology transfer
activities described in subsections (b) and (c) as the
Secretary determines to be appropriate.

``Sec. 508. Surface transportation research technology
deployment and strategic planning

``(a) Planning.--
``(1) Establishment.--The Secretary shall--
``(A) establish, in accordance with section 306 of title 5,
a strategic planning process that--
``(i) enhances effective implementation of this section
through the establishment in accordance with paragraph (2) of
the Surface Transportation Research Technology Advisory
Committee; and
``(ii) focuses on surface transportation research funded
through paragraphs (1), (2), (4), and (5) of section 2001(a)
of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, taking into consideration
national surface transportation system needs and
intermodality requirements;
``(B) coordinate Federal surface transportation research,
technology development, and deployment activities;
``(C) at such intervals as are appropriate and practicable,
measure the results of those activities and the ways in which
the activities affect the performance of the surface
transportation systems of the United States; and
``(D) ensure, to the maximum extent practicable, that
planning and reporting activities carried out under this
section are coordinated with all other surface transportation
planning and reporting requirements.
``(2) Surface transportation research technology advisory
committee.--
``(A) Establishment.--Not later than 90 days after the date
of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004, the Secretary
shall establish a committee to be known as the `Surface
Transportation Research Technology Advisory Committee'
(referred to in this section as the `Committee').
``(B) Membership.--The Committee shall be composed of 12
members appointed by the Secretary--
``(i) each of which shall have expertise in a particular
area relating to Federal surface transportation programs,
including--

``(I) safety;
``(II) operations;
``(III) infrastructure (including pavements and
structures);
``(IV) planning and environment;
``(V) policy; and
``(VI) asset management; and

``(ii) of which--

``(I) 3 members shall be individuals representing the
Federal Government;
``(II) 3 members--

``(aa) shall be exceptionally qualified to serve on the
Committee, as determined by the Secretary, based on
education, training, and experience; and
``(bb) shall not be officers or employees of the United
States;

``(III) 3 members--

``(aa) shall represent the transportation industry
(including the pavement industry); and
``(bb) shall not be officers or employees of the United
States; and

``(IV) 3 members shall represent State transportation
departments from 3 different geographical regions of the
United States.

``(C) Meetings.--The advisory subcommittees shall meet on a
regular basis, but not less than twice each year.
``(D) Duties.--The Committee shall provide to the
Secretary, on a continuous basis, advice and guidance
relating to--
``(i) the determination of surface transportation research
priorities;
``(ii) the improvement of the research planning and
implementation process;
``(iii) the design and selection of research projects;
``(iv) the review of research results;
``(v) the planning and implementation of technology
transfer activities and
``(vi) the formulation of the surface transportation
research and technology deployment and deployment strategic
plan required under subsection (c).
``(E) Authorization of appropriations.--There is authorized
to be appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to carry out this paragraph
$200,000 for each fiscal year.
``(b) Implementation.--The Secretary shall--
``(1) provide for the integrated planning, coordination,
and consultation among the operating administrations of the
Department of Transportation, all other Federal agencies with
responsibility for surface transportation research and
technology development, State and local governments,
institutions of higher education, industry, and other private
and public sector organizations engaged in surface
transportation-related research and development activities;
and
``(2) ensure that the surface transportation research and
technology development programs of the Department do not
duplicate other Federal, State, or private sector research
and development programs.
``(c) Surface Transportation Research and Technology
Deployment Strategic Plan.--
``(1) In general.--After receiving, and based on, extensive
consultation and input from stakeholders representing the
transportation community and the Surface Transportation
Research Advisory Committee, the Secretary shall, not later
than 1 year after the date of enactment of the Safe,
Accountable, Flexible, and Efficient Transportation Equity
Act of 2004, complete, and shall periodically update
thereafter, a strategic plan for each of the core surface
transportation research areas, including--
``(A) safety;
``(B) operations;
``(C) infrastructure (including pavements and structures);
``(D) planning and environment;
``(E) policy; and
``(F) asset management.
``(2) Components.--The strategic plan shall specify--
``(A) surface transportation research objectives and
priorities;
``(B) specific surface transportation research projects to
be conducted;
``(C) recommended technology transfer activities to promote
the deployment of advances resulting from the surface
transportation research conducted; and
``(D) short- and long-term technology development and
deployment activities.
``(3) Review and submission of findings.--The Secretary
shall enter into a contract with the Transportation Research
Board of the National Academy of Sciences, on behalf of the
Research and Technology Coordinating Committee of the
National Research Council, under which--
``(A) the Transportation Research Board shall--
``(i) review the research and technology planning and
implementation process used by Federal Highway
Administration; and
``(ii) evaluate each of the strategic plans prepared under
this subsection--

``(I) to ensure that sufficient stakeholder input is being
solicited and considered throughout the preparation process;
and
``(II) to offer recommendations relevant to research
priorities, project selection, and deployment strategies; and

``(B) the Secretary shall ensure that the Research and
Technology Coordinating Committee, in a timely manner,
informs the Committee on Environment and Public Works of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives of the findings of the review
and evaluation under subparagraph (A).
``(4) Responses of secretary.--Not later than 60 days after
the date of completion of the strategic plan under this
subsection, the Secretary shall submit to the Committee on
Environment and Public Works of the Senate and the Committee
on Transportation and Infrastructure of the House of
Representatives written responses to each of the
recommendations of the Research and Technology Coordinating
Committee under paragraph (3)(A)(ii)(II).
``(d) Consistency With Government Performance and Results
Act of 1993.--The plans and reports developed under this
section shall be consistent with and incorporated as part of
the plans developed under section 306 of title 5 and sections
1115 and 1116 of title 31.

``Sec. 509. New strategic highway research program

``(a) In General.--The National Research Council shall
establish and carry out, through fiscal year 2009, a new
strategic highway research program.
``(b) Basis; Priorities.--With respect to the program
established under subsection (a)--
``(1) the program shall be based on--
``(A) National Research Council Special Report No. 260,
entitled `Strategic Highway Research'; and
``(B) the results of the detailed planning work
subsequently carried out to scope the research areas through
National Cooperative Research Program Project 20-58.
``(2) the scope and research priorities of the program
shall--
``(A) be refined through stakeholder input in the form of
workshops, symposia, and panels; and
``(B) include an examination of--
``(i) the roles of highway infrastructure, drivers, and
vehicles in fatalities on public roads;
``(ii) high-risk areas and activities associated with the
greatest numbers of highway fatalities;
``(iii) the roles of various levels of government agencies
and non-governmental organizations in reducing highway
fatalities (including recommendations for methods of
strengthening highway safety partnerships);
``(iv) measures that may save the greatest number of lives
in the short- and long-term;
``(v) renewal of aging infrastructure with minimum impact
on users of facilities;
``(vi) driving behavior and likely crash causal factors to
support improved countermeasures;
``(vii) reduction in congestion due to nonrecurring
congestion;
``(viii) planning and designing of new road capacity to
meet mobility, economic, environmental, and community needs;
``(3) the program shall consider, at a minimum, the results
of studies relating to the

[[Page S859]]

implementation of the Strategic Highway Safety Plan prepared
by the American Association of State Highway and
Transportation Officials; and
``(4) the research results of the program, expressed in
terms of technologies, methodologies, and other appropriate
categorizations, shall be disseminated to practicing
engineers as soon as practicable for their use.
``(c) Program Administration.--In carrying out the program
under this section, the National Research Council shall
ensure, to the maximum extent practicable, that--
``(1) the best projects and researchers are selected to
conduct research for the program and priorities described in
subsection (b)--
``(A) on the basis of the merit of each submitted proposal;
and
``(B) through the use of open solicitations and selection
by a panel of appropriate experts;
``(2) the National Research Council acquires a qualified,
permanent core staff with the ability and expertise to manage
a large research program and multiyear budget;
``(3) the stakeholders are involved in the governance of
the program, at the executive, overall program, and technical
levels, through the use of expert panels and committees; and
``(4) there is no duplication of research effort between
the program established under this section and the surface
transportation-environment cooperative research program
established under section 507 or any other research effort of
the Department.
``(d) National Academy of Sciences.--The Secretary may make
grants to, and enter into cooperative agreements with, the
National Academy of Sciences to carry out such activities
relating to research, technology, and technology transfer
described in subsections (b) and (c) as the Secretary
determines to be appropriate.
``(e) Report on Implementation of Results.--
``(1) In general.--Not later than October 1, 2007, the
Secretary shall enter into a contract with the Transportation
Research Board of the National Academy of Sciences under
which the Transportation Research Board shall complete a
report on the strategies and administrative structure to be
used for implementation of the results of new strategic
highway research program.
``(2) Components.--The report under paragraph (1) shall
include, with respect to the new strategic highway research
program--
``(A) an identification of the most promising results of
research under the program (including the persons most likely
to use the results);
``(B) a discussion of potential incentives for, impediments
to, and methods of, implementing those results;
``(C) an estimate of costs that would be incurred in
expediting implementation of those results; and
``(D) recommendations for the way in which implementation
of the results of the program under this section should be
conducted, coordinated, and supported in future years,
including a discussion of the administrative structure and
organization best suited to carry out those responsibilities.
``(3) Consultation.--In developing the report, the
Transportation Research Board shall consult with a wide
variety of stakeholders, including--
``(A) the American Association of State highway Officials;
``(B) the Federal Highway Administration; and
``(C) the Surface Transportation Research Technology
Advisory Committee.
``(4) Submission.--Not later than February 1, 2009, the
Secretary shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives the report under this subsection.

``Sec. 510. University transportation centers

``(a) Centers.--
``(1) In general.--During fiscal year 2004, the Secretary
shall provide grants to 40 nonprofit institutions of higher
learning (or consortia of institutions of higher learning) to
establish centers to address transportation design,
management, research, development, and technology matters,
especially the education and training of greater numbers of
individuals to enter into the professional field of
transportation.
``(2) Distribution of centers.--Not more than 1 university
transportation center (or lead university in a consortia of
institutions of higher learning), other than a center or
university selected through a competitive process, may be
located in any State.
``(3) Identification of centers.--The university
transportation centers established under this section shall--
``(A) comply with applicable requirements under subsection
(c); and
``(B) be located at the institutions of higher learning
specified in paragraph (4).
``(4) Identification of groups.--For the purpose of making
grants under this subsection, the following grants are
identified:
``(A) Group a.--Group A shall consist of the 10 regional
centers selected under subsection (b).
``(B) Group b.--Group B shall consist of the following:
``(i) [_________].
``(ii) [_________].
``(iii) [_________].
``(iv) [_________].
``(v) [_________].
``(vi) [_________].
``(vii) [_________].
``(viii) [_________]
``(ix) [_________].
``(x) [_________].
``(xi) [_________].
``(C) Group c.--Group C shall consist of the following:
``(i) [_________].
``(ii) [_________].
``(iii) [_________].
``(iv) [_________].
``(v) [_________].
``(vi) [_________].
``(vii) [_________].
``(viii) [_________].
``(ix) [_________].
``(x) [_________].
``(xi) [_________].
``(D) Group d.--Group D shall consist of the following:
``(i) [_________].
``(ii) [_________].
``(iii) [_________].
``(iv) [_________].
``(v) [_________].
``(vi) [_________].
``(vii) [_________].
``(viii) [_________].
``(b) Regional Centers.--
``(1) In general.--Not later than September 30, 2004, the
Secretary shall provide to nonprofit institutions of higher
learning (or consortia of institutions of higher learning)
grants to be used during the period of fiscal years 2005
through 2009 to establish and operate 1 university
transportation center in each of the 10 Federal regions that
comprise the Standard Federal Regional Boundary System.
``(2) Selection of regional centers.--
``(A) Proposals.--In order to be eligible to receive a
grant under this subsection, an institution described in
paragraph (1) shall submit to the Secretary a proposal, in
response to any request for proposals that shall be made by
the Secretary, that is in such form and contains such
information as the Secretary shall prescribe.
``(B) Request schedule.--The Secretary shall request
proposals once for the period of fiscal years 2004 through
2006 and once for the period of fiscal years 2007 through
2009.
``(C) Eligibility.--Any institution of higher learning (or
consortium of institutions of higher learning) that meets the
criteria described in subsection (c) (including any
institution identified in subsection (a)(4)) may apply for a
grant under this subsection.
``(D) Selection criteria.--The Secretary shall select each
recipient of a grant under this subsection through a
competitive process on the basis of--
``(i) the location of the center within the Federal region
to be served;
``(ii) the demonstrated research capabilities and extension
resources available to the recipient to carry out this
section;
``(iii) the capability of the recipient to provide
leadership in making national and regional contributions to
the solution of immediate and long-range transportation
problems;
``(iv) the demonstrated ability of the recipient to
disseminate results of transportation research and education
programs through a statewide or regionwide continuing
education program; and
``(v) the strategic plan that the recipient proposes to
carry out using funds from the grant.
``(E) Selection process.--In selecting the recipients of
grants under this subsection, the Secretary shall consult
with, and consider the advice of--
``(i) the Research and Special Programs Administration;
``(ii) the Federal Highway Administration; and
``(iii) the Federal Transit Administration.
``(c) Center Requirements.--
``(1) In general.--With respect to a university
transportation center established under subsection (a) or
(b), the institution or consortium that receives a grant to
establish the center--
``(A) shall annually contribute at least $250,000 to the
operation and maintenance of the center, except that payment
by the institution or consortium of the salary required for
transportation-related faculty and staff for a period greater
than 90 days may not be counted against that contribution;
``(B) shall have established, as of the date of receipt of
the grant, undergraduate or graduate programs in--
``(i) civil engineering;
``(ii) transportation engineering;
``(iii) transportation systems management and operations;
or
``(iv) any other field significantly related to surface
transportation systems, as determined by the Secretary; and
``(C) not later than 120 days after the date on which the
institution or consortium receives notice of selection as a
site for the establishment of a university transportation
center under this section, shall submit to the Secretary a 6-
year program plan for the university transportation center
that includes, with respect to the center--
``(i) a description of the purposes of programs to be
conducted by the center;
``(ii) a description of the undergraduate and graduate
transportation education efforts to be carried out by the
center;
``(iii) a description of the nature and scope of research
to be conducted by the center;
``(iv) a list of personnel, including the roles and
responsibilities of those personnel within the center; and

[[Page S860]]

``(v) a detailed budget, including the amount of
contributions by the institution or consortium to the center;
and
``(D) shall establish an advisory committee that--
``(i) is composed of a representative from each of the
State transportation department of the State in which the
institution or consortium is located, the Department of
Transportation, and the institution or consortia, as
appointed by those respective entities;
``(ii) in accordance with paragraph (2), shall review and
approve or disapprove the plan of the institution or
consortium under subparagraph (C); and
``(iii) shall, to the maximum extent practicable, ensure
that the proposed research to be carried out by the
university transportation center will contribute to the
national highway research and technology agenda, as
periodically updated by the Secretary, in consultation with
stakeholders representing the highway community.
``(2) Peer review.--
``(A) In general.--The Secretary shall require peer review
for each report on research carried out using funds made
available for this section.
``(B) Purposes of peer review.--Peer review of a report
under this section shall be carried out to evaluate--
``(i) the relevance of the research described in the report
with respect to the strategic plan under, and the goals of,
this section;
``(ii) the research covered by the report, and to recommend
modifications to individual project plans;
``(iii) the results of the research before publication of
those results; and
``(iv) the overall outcomes of the research.
``(C) Internet availability.--Each report under this
section that is received by the Secretary shall be
published--
``(i) by the Secretary, on the Internet website of the
Department of Transportation; and
``(ii) by the University Transportation Center.
``(3) Approval of plans--A plan of an institution or
consortium described in paragraph (1)(C) shall not be
submitted to the Secretary until such time as the advisory
committee established under paragraph (1)(D) reviews and
approves the plan.
``(4) Failure to comply.--If a recipient of a grant under
this subsection fails to submit a program plan acceptable to
the Secretary and in accordance with paragraph (1)(C)--
``(A) the recipient shall forfeit the grant and the
selection of the recipient as a site for the establishment of
a university transportation center; and
``(B) the Secretary shall select a replacement recipient
for the forfeited grant.
``(5) Applicability.--This subsection does not apply to any
research funds received in accordance with a competitive
contract offered and entered into by the Federal Highway
Administration.
``(d) Objectives.--Each university transportation center
established under subsection (a) or (b) shall carry out--
``(1) undergraduate or graduate education programs that
include--
``(A) multidisciplinary coursework; and
``(B) opportunities for students to participate in
research;
``(2) basic and applied research, the results and products
of which shall be judged by peers or other experts in the
field so as to advance the body of knowledge in
transportation; and
``(3) an ongoing program of technology transfer that makes
research results available to potential users in such form as
will enable the results to be implemented, used, or otherwise
applied.
``(e) Maintenance of Effort.--To be eligible to receive a
grant under this section, an applicant shall--
``(1) enter into an agreement with the Secretary to ensure
that the applicant will maintain total expenditures from all
other sources to establish and operate a university
transportation center and related educational and research
activities at a level that is at least equal to the average
level of those expenditures during the 2 fiscal years before
the date on which the grant is provided;
``(2) provide the annual institutional contribution
required under subsection (c)(1); and
``(3) submit to the Secretary, in a timely manner, for use
by the Secretary in the preparation of the annual research
report under section 508(c)(5) of title 23, an annual report
on the projects and activities of the university
transportation center for which funds are made available
under section 2001 of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004 that contains, at
a minimum, for the fiscal year covered by the report, a
description of--
``(A) the goals of the center;
``(B) the educational activities carried out by the center
(including a detailed summary of the budget for those
educational activities);
``(C) teaching activities of faculty at the center;
``(D) each research project carried out by the center,
including--
``(i) the identity and location of each investigator
working on a research project;
``(ii) the overall funding amount for each research project
(including the amounts expended for the project as of the
date of the report);
``(iii) the current schedule for each research project; and
``(iv) the results of each research project through the
date of submission of the report, with particular emphasis on
results for the fiscal year covered by the report; and
``(E) overall technology transfer and implementation
efforts of the center.
``(f) Program Coordination.--The Secretary shall--
``(1) coordinate the research, education, training, and
technology transfer activities carried out by recipients of
grants under this section; and
``(2) establish and operate a clearinghouse for, and
disseminate, the results of those activities.
``(g) Funding.--
``(1) Number and amount of grants.--The Secretary shall
make the following grants under this subsection:
``(A) Group a.--For each of fiscal years 2004 through 2009,
the Secretary shall make a grant in the amount of $20,000,000
to each of the institutions in group A (as described in
subsection (a)(4)(A)).
``(B) Group b.--The Secretary shall make a grant to each of
the institutions in group B (as described in subsection
(a)(4)(B)) in the amount of--
``(i) $4,000,000 for each of fiscal years 2004 and 2005;
and
``(ii) $6,000,000 for each of fiscal years 2006 and 2007.
``(C) Group c.--For each of fiscal years 2004 through 2007,
the Secretary shall make a grant in the amount of $10,000,000
to each of the institutions in group C (as described in
subsection (a)(4)(C)).
``(D) Group d.--For each of fiscal years 2004 through 2009,
the Secretary shall make a grant in the amount of $25,000,000
to each of the institutions in group D (as described in
subsection (a)(4)(D)).
``(E) Limited grants for groups b and c.--For each of
fiscal years 2008 and 2009, of the institutions classified in
groups B and C (as described in subsection (a)(4)(B)), the
Secretary shall select and make a grant in the amount of
$10,000,000 to each of not more than 15 institutions.
``(2) Use of funds--
``(A) In general.--Of the funds made available for a fiscal
year to a university transportation center established under
subsection (a) or (b)--
``(i) not less than $250,000 shall be used to establish and
maintain new faculty positions for the teaching of
undergraduate, transportation-related courses;
``(ii) not more than $500,000 for the fiscal year, or
$1,000,000 in the aggregate, may be used to construct or
improve transportation-related laboratory facilities; and
``(iii) not more than $300,000 for the fiscal year may be
used for student internships of not more than 180 days in
duration to enable students to gain experience by working on
transportation projects as interns with design or
construction firms.
``(B) Facilities and administration fee.--Not more than 10
percent of any grant made available to a university
transportation center (or any institution or consortium that
establishes such a center) for a fiscal year may be used to
pay to the appropriate nonprofit institution of higher
learning any administration and facilities fee (or any
similar overhead fee) for the fiscal year.
``(3) Limitation on availability of funds.--Funds made
available under this subsection shall remain available for
obligation for a period of 2 years after September 30 of the
fiscal year for which the funds are authorized.

``Sec. 511. Multistate corridor operations and management

``(a) In General.--The Secretary shall encourage multistate
cooperative agreements, coalitions, or other arrangements to
promote regional cooperation, planning, and shared project
implementation for programs and projects to improve
transportation system management and operations.
``(b) Interstate Route I-95 Corridor Coalition
Transportation Systems Management and Operations.--
``(1) In general.--The Secretary shall make grants under
this subsection to States to continue intelligent
transportation system management and operations in the
Interstate Route I-95 corridor coalition region initiated
under the Intermodal Surface Transportation Efficiency Act of
1991 (Public Law 102-240).
``(2) Funding.--Of the amounts made available under section
2001(a)(4) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, the Secretary shall use to
carry out this subsection--
``(A) $8,000,000 for fiscal year 2004;
``(B) $10,000,000 for fiscal year 2005;
``(C) $12,000,000 for fiscal year 2006;
``(D) $12,000,000 for fiscal year 2007;
``(E) $12,000,000 for fiscal year 2008; and
``(F) $12,000,000 for fiscal year 2009.''.
(b) Other University Funding.--No university (other than
university transportation centers specified in section 510 of
title 23, United States Code (as added by subsection (a))
shall receive funds made available under section 2001 to
carry out research unless the university is selected to
receive the funds--
(1) through a competitive process that incorporates merit-
based peer review; and
(2) based on a proposal submitted to the Secretary by the
university in response to a request for proposals issued by
the Secretary.
(c) Conforming Amendment.--Section 5505 of title 49, United
States Code, is repealed.

[[Page S861]]

SEC. 2102. STUDY OF DATA COLLECTION AND STATISTICAL ANALYSIS
EFFORTS.

(a) Definitions.--In this section:
(1) Administration.--The term ``Administration'' means the
Federal Highway Administration.
(2) Board.--The term ``Board'' means the Transportation
Research Board of the National Academy of Sciences.
(3) Bureau.--The term ``Bureau'' means the Bureau of
Transportation Statistics.
(4) Department.--The term ``Department'' means the
Department of Transportation.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(b) Priority Areas of Effort.--
(1) Statistical standards.--The Secretary shall direct the
Bureau to assume the role of the lead agency in working with
other agencies of the Department to establish, by not later
the date that is 1 year after the date of enactment of this
Act, statistical standards for the Department.
(2) Statistical analysis effort.--
(A) In general.--The Bureau shall provide to the Secretary,
on an annual basis, an overview of the level of effort
expended on statistical analyses by each agency within the
Department.
(B) Duty of agencies.--Each agency of the Department shall
provide to the Bureau such information as the Bureau may
require in carrying out subparagraph (A).
(3) National security.--The Bureau shall--
(A) conduct a study of the ways in which transportation
statistics are and may be used for the purpose of national
security; and
(B) submit to the Transportation Security Administration
recommendations for means by which the use of transportation
statistics for the purpose of national security may be
improved.
(4) Modernization.--The Bureau shall develop new protocols
for adapting data collection and delivery efforts in
existence as of the date of enactment of this Act to deliver
information in a more timely and frequent fashion.
(c) Study.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall provide a grant
to, or enter into a cooperative agreement or contract with,
the Board for the conduct of a study of the data collection
and statistical analysis efforts of the Department with
respect to the modes of surface transportation for which
funds are made available under this Act.
(2) Purpose.--The purpose of the study shall be to provide
to the Department information for use by agencies of the
Department in providing to surface transportation agencies
and individuals engaged in the surface transportation field
higher quality, and more relevant and timely, data,
statistical analyses, and products.
(3) Content.--The study shall include--
(A) an examination and analysis of the efforts, analyses,
and products (with respect to usefulness and policy
relevance) of the Bureau as of the date of the study, as
compared with the duties of the Bureau specified in
subsections (c) through (f) of section 111 of title 49,
United States Code;
(B) an examination and analysis of data collected by,
methods of data collection of, and analyses performed by,
agencies within the Department; and
(C) recommendations relating to--
(i) the future efforts of the Department in the area of
surface transportation with respect to--

(I) types of data collected;
(II) methods of data collection;
(III) types of analyses performed; and
(IV) products made available by the Secretary to the
transportation community and Congress;

(ii) the means by which the Department may cooperate with
State transportation departments to provide technical
assistance in the use of data collected by traffic operations
centers; and
(iii) duplication of efforts within the Department,
including ways in which--

(I) the duplication may be reduced or eliminated; and
(II) each agency of the Department may cooperate with, and
complement the efforts of, the others.

(4) Consultation.--In conducting the study, the Board shall
consult with such stakeholders, agencies, and other entities
as the Board considers to be appropriate.
(5) Report.--Not later than 1 year after the date on which
a grant is provided, or a cooperative agreement or contract
is entered into, for a study under paragraph (1)--
(A) the Board shall submit to the Secretary, the Committee
on Environment and Public Works of the Senate, and the
Committee on Transportation and Infrastructure of the House
of Representatives a final report on the results of the
study; and
(B) the results of the study shall be published--
(i) by the Secretary, on the Internet website of the
Department; and
(ii) by the Board, on the Internet website of the Board.
(6) Implementation of results.--The Bureau shall, to the
maximum extent practicable, implement any recommendations
made with respect to the results of the study under this
subsection.
(7) Compliance.--
(A) In general.--The Comptroller General of the United
States shall conduct a review of the study under this
subsection.
(B) Noncompliance.--If the Comptroller General of the
United States determines that the Bureau failed to conduct
the study under this subsection, the Bureau shall be
ineligible to receive funds from the Highway Trust Fund until
such time as the Bureau conducts the study under this
subsection.
(d) Conforming Amendments.--
(1) Section 111 of title 49, United States Code, is
amended--
(A) by redesignating subsection (k) as subsection (m);
(B) by inserting after subsection (j) the following:
``(k) Annual Report.--
``(1) In general.--For fiscal year 2005 and each fiscal
year thereafter, the Bureau shall prepare and submit to the
Secretary an annual report that--
``(A) describes progress made in responding to study
recommendations for the fiscal year; and
``(B) summarizes the activities and expenditure of funds by
the Bureau for the fiscal year.
``(2) Availability.--The Bureau shall--
``(A) make the report described in paragraph (1) available
to the public; and
``(B) publish the report on the Internet website of the
Bureau.
``(3) Combination of reports.--The report required under
paragraph (1) may be included in or combined with the
Transportation Statistics Annual Report required by
subsection (j).
``(l) Expenditure of Funds.--Funds from the Highway Trust
Fund (other than the Mass Transit Account) that are
authorized to be appropriated, and made available, in
accordance with section 2001(a)(3) of the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004
shall be used only for the collection and statistical
analysis of information relating to surface transportation
systems.''; and
(C) in subsection (m) (as redesignated by subparagraph
(A)), by inserting ``surface transportation'' after ``sale
of''.
(2) The analysis for chapter 55 of title 49, United States
Code, is amended by striking the item relating to section
5505 and inserting the following:

``5505. University transportation centers.''.

SEC. 2103. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.

(a) Establishment.--The Secretary shall establish the
centers for surface transportation excellence described in
subsection (b) to promote high-quality outcomes in support of
strategic national programs and activities, including--
(1) the environment;
(2) operations;
(3) surface transportation safety;
(4) project finance; and
(5) asset management.
(b) Centers.--The centers for surface transportation
excellence referred to in subsection (a) are--
(1) a Center for Environmental Excellence to provide
technical assistance, information sharing of best practices,
and training in the use of tools and decision-making
processes to assist States in planning and delivering
environmentally-sound surface transportation projects;
(2) a Center for Operations Excellence to provide support
for an integrated and coordinated national program for
implementing operations in planning and management (including
standards development) for the transportation system in the
United States;
(3) a Center for Excellence in Surface Transportation
Safety to implement a program of support for State
transportation departments, including--
(A) the maintenance of an Internet site to provide critical
information on safety programs;
(B) the provision of technical assistance to support a lead
State transportation department for each of the safety
emphasis areas (as identified by the Secretary); and
(C) the provision of training and education to enhance
knowledge of personnel of State transportation departments in
support of safety highway goals;
(4) a Center for Excellence in Project Finance--
(A) to provide support to State transportation departments
in the development of finance plans and project oversight
tools; and
(B) to develop and offer training in state-of-the-art
financing methods to advance projects and leverage funds; and
(5) a Center for Excellence in Asset Management to develop
and conduct research, provide training and education, and
disseminate information on the benefits and tools for asset
management.
(c) Program Administration.--
(1) In general.--Before funds authorized under this section
for fiscal years 2005 through 2009 are obligated, the
Secretary shall review and approve a multiyear strategic plan
to be submitted by each of the centers.
(2) Timing.--The plan shall be submitted before the
beginning of fiscal year 2005 and, subsequently, shall be
annually updated.
(3) Content.--The plan shall include--
(A) a list of research and technical assistance projects
and objectives; and
(B) a description of any other technology transfer
activities, including a summary of training efforts.
(4) Cooperation and competition.--

[[Page S862]]

(A) In general.--The Secretary shall carry out this section
by making grants to, or entering into contracts, cooperative
agreements, and other transactions with--
(i) the National Academy of Sciences;
(ii) the American Association of State Highway and
Transportation Officials;
(iii) planning organizations;
(iv) a Federal laboratory;
(v) a State agency;
(vi) an authority, association, institution, or
organization; or
(vii) a for-profit or nonprofit corporation.
(B) Competition; review.--All parties entering into
contracts, cooperative agreements, or other transactions with
the Secretary, or receiving grants, to perform research or
provide technical assistance under this section shall be
selected, to the maximum extent practicable--
(i) on a competitive basis; and
(ii) on the basis of the results of peer review of
proposals submitted to the Secretary.
(5) Nonduplication.--The Secretary shall ensure that
activities conducted by each of the centers do not duplicate,
and to the maximum extent practicable, are integrated and
coordinated with similar activities conducted by the Federal
Highway Administration, the local technical assistance
program, university transportation centers, and other
research efforts supported with funds authorized by this
title.
(d) Allocations.--
(1) In general.--For each of fiscal years 2004 through
2009, of the funds made available under section
2001(a)(1)(A), the Secretary shall set aside $10,000,000 to
carry out this section.
(2) Allocation of funds.--Of the funds made available under
paragraph (1)--
(A) 20 percent shall be allocated to the Center for
Environmental Excellence established under subsection (b)(1);
(B) 30 percent shall be allocated to the Center for
Operations Excellence established under subsection (b)(2);
(C) 20 percent shall be allocated to the Center for
Excellence in Surface Transportation Safety established under
subsection (b)(3);
(D) 10 percent shall be allocated to the Center for
Excellence in Project Finance established under subsection
(b)(4); and
(E) 20 percent shall be allocated to the Center for
Excellence in Asset Management established under subsection
(b)(5).
(3) Applicability of title 23.--Funds made available under
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
shall be 100 percent.

SEC. 2104. MOTORCYCLE CRASH CAUSATION STUDY GRANTS.

(a) Grants.--The Secretary shall provide grants for the
purpose of conducting a comprehensive, in-depth motorcycle
crash causation study that employs the common international
methodology for in-depth motorcycle accident investigation of
the Organization for Economic Cooperation and Development.
(b) Funding.--Of the amounts made available under section
2001(a)(3), $1,500,000 for each of fiscal years 2004 and 2005
shall be available to carry out this section.

Subtitle C--Intelligent Transportation System Research

SEC. 2201. INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND
TECHNICAL ASSISTANCE PROGRAM.

(a) In General.--Chapter 5 of title 23, United States Code
(as amended by section 2101), is amended by adding at the end
the following:

``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND
TECHNICAL ASSISTANCE PROGRAM

``Sec. 521. Finding

``Congress finds that continued investment in architecture
and standards development, research, technical assistance for
State and local governments, and systems integration is
needed to accelerate the rate at which intelligent
transportation systems--
``(1) are incorporated into the national surface
transportation network; and
``(2) as a result of that incorporation, improve
transportation safety and efficiency and reduce costs and
negative impacts on communities and the environment.

``Sec. 522. Goals and purposes

``(a) Goals.--The goals of the intelligent transportation
system research and technical assistance program include--
``(1) enhancement of surface transportation efficiency and
facilitation of intermodalism and international trade--
``(A) to meet a significant portion of future
transportation needs, including public access to employment,
goods, and services; and
``(B) to reduce regulatory, financial, and other
transaction costs to public agencies and system users;
``(2) the acceleration of the use of intelligent
transportation systems to assist in the achievement of
national transportation safety goals, including the
enhancement of safe operation of motor vehicles and
nonmotorized vehicles, with particular emphasis on decreasing
the number and severity of collisions;
``(3) protection and enhancement of the natural environment
and communities affected by surface transportation, with
particular emphasis on assisting State and local governments
in achieving national environmental goals;
``(4) accommodation of the needs of all users of surface
transportation systems, including--
``(A) operators of commercial vehicles, passenger vehicles,
and motorcycles;
``(B) users of public transportation users (with respect to
intelligent transportation system user services); and
``(C) individuals with disabilities; and
``(5)(A) improvement of the ability of the United States to
respond to emergencies and natural disasters; and
``(B) enhancement of national security and defense
mobility.
``(b) Purposes.--The Secretary shall carry out activities
under the intelligent transportation system research and
technical assistance program to, at a minimum--
``(1) assist in the development of intelligent
transportation system technologies;
``(2) ensure that Federal, State, and local transportation
officials have adequate knowledge of intelligent
transportation systems for full consideration in the
transportation planning process;
``(3) improve regional cooperation, interoperability, and
operations for effective intelligent transportation system
performance;
``(4) promote the innovative use of private resources;
``(5) assist State transportation departments in developing
a workforce capable of developing, operating, and maintaining
intelligent transportation systems;
``(6) maintain an updated national ITS architecture and
consensus-based standards while ensuring an effective Federal
presence in the formulation of domestic and international ITS
standards;
``(7) advance commercial vehicle operations components of
intelligent transportation systems--
``(A) to improve the safety and productivity of commercial
vehicles and drivers; and
``(B) to reduce costs associated with commercial vehicle
operations and Federal and State commercial vehicle
regulatory requirements;
``(8) evaluate costs and benefits of intelligent
transportation systems projects;
``(9) improve, as part of the Archived Data User Service
and in cooperation with the Bureau of Transportation
Statistics, the collection of surface transportation system
condition and performance data through the use of intelligent
transportation system technologies; and
``(10) ensure access to transportation information and
services by travelers of all ages.

``Sec. 523. Definitions

``In this subchapter:
``(1) Commercial vehicle information systems and
networks.--The term `commercial vehicle information systems
and networks' means the information systems and
communications networks that support commercial vehicle
operations.
``(2) Commercial vehicle operations.--
``(A) In general.--The term `commercial vehicle operations'
means motor carrier operations and motor vehicle regulatory
activities associated with the commercial movement of goods
(including hazardous materials) and passengers.
``(B) Inclusions.--The term `commercial vehicle
operations', with respect to the public sector, includes--
``(i) the issuance of operating credentials;
``(ii) the administration of motor vehicle and fuel taxes;
and
``(iii) roadside safety and border crossing inspection and
regulatory compliance operations.
``(3) Intelligent transportation infrastructure.--The term
`intelligent transportation infrastructure' means fully
integrated public sector intelligent transportation system
components, as defined by the Secretary.
``(4) Intelligent transportation system.--The term
`intelligent transportation system' means electronics,
communications, or information processing used singly or in
combination to improve the efficiency or safety of a surface
transportation system.
``(5) National its architecture.--The term `national ITS
architecture' means the common framework for interoperability
adopted by the Secretary that defines--
``(A) the functions associated with intelligent
transportation system user services;
``(B) the physical entities or subsystems within which the
functions reside;
``(C) the data interfaces and information flows between
physical subsystems; and
``(D) the communications requirements associated with the
information flows.
``(6) Standard.--The term `standard' means a document
that--
``(A) contains technical specifications or other precise
criteria for intelligent transportation systems that are to
be used consistently as rules, guidelines, or definitions of
characteristics so as to ensure that materials, products,
processes, and services are fit for their purposes; and
``(B) may--
``(i) support the national ITS architecture; and
``(ii) promote--

``(I) the widespread use and adoption of intelligent
transportation system technology as a component of the
surface transportation systems of the United States; and
``(II) interoperability among intelligent transportation
system technologies implemented throughout the States.

[[Page S863]]

``Sec. 524. General authorities and requirements

``(a) Scope.--Subject to this subchapter, the Secretary
shall carry out an ongoing intelligent transportation system
research program--
``(1) to research, develop, and operationally test
intelligent transportation systems; and
``(2) to provide technical assistance in the nationwide
application of those systems as a component of the surface
transportation systems of the United States.
``(b) Policy.--Intelligent transportation system
operational tests and projects funded under this subchapter
shall encourage, but not displace, public-private
partnerships or private sector investment in those tests and
projects.
``(c) Cooperation With Governmental, Private, and
Educational Entities.--The Secretary shall carry out the
intelligent transportation system research and technical
assistance program in cooperation with--
``(1) State and local governments and other public
entities;
``(2) the private sector;
``(3) Federal laboratories (as defined in section 501); and
``(4) colleges and universities, including historically
black colleges and universities and other minority
institutions of higher education.
``(d) Consultation With Federal Officials.--In carrying out
the intelligent transportation system research program, the
Secretary, as appropriate, shall consult with--
``(1) the Secretary of Commerce;
``(2) the Secretary of the Treasury;
``(3) the Administrator of the Environmental Protection
Agency;
``(4) the Director of the National Science Foundation; and
``(5) the Secretary of Homeland Security.
``(e) Technical Assistance, Training, and Information.--The
Secretary may provide technical assistance, training, and
information to State and local governments seeking to
implement, operate, maintain, or evaluate intelligent
transportation system technologies and services.
``(f) Transportation Planning.--The Secretary may provide
funding to support adequate consideration of transportation
system management and operations (including intelligent
transportation systems) within metropolitan and statewide
transportation planning processes.
``(g) Information Clearinghouse.--The Secretary shall--
``(1) maintain a repository for technical and safety data
collected as a result of federally sponsored projects carried
out under this subchapter; and
``(2) on request, make that information (except for
proprietary information and data) readily available to all
users of the repository at an appropriate cost.
``(h) Advisory Committees.--
``(1) In general.--In carrying out this subchapter, the
Secretary--
``(A) may use 1 or more advisory committees; and
``(B) shall designate a public-private organization, the
members of which participate in on-going research, planning,
standards development, deployment, and marketing of ITS
programs, products, and services, and coordinate the
development and deployment of intelligent transportation
systems in the United States, as the Federal advisory
committee authorized by section 5204(h) of the Transportation
Equity Act for the 21st Century (112 Stat. 454).
``(2) Funding.--Of the amount made available to carry out
this subchapter, the Secretary may use $1,500,000 for each
fiscal year for advisory committees described in paragraph
(1).
``(3) Applicability of federal advisory committee act.--Any
advisory committee described in paragraph (1) shall be
subject to the Federal Advisory Committee Act (5 U.S.C.
App.).
``(i) Procurement Methods.--The Secretary shall develop and
provide appropriate technical assistance and guidance to
assist State and local agencies in evaluating and selecting
appropriate methods of deployment and procurement for
intelligent transportation system projects carried out using
funds made available from the Highway Trust Fund, including
innovative and nontraditional methods such as Information
Technology Omnibus Procurement (as developed by the
Secretary).
``(j) Evaluations.--
``(1) Guidelines and requirements.--
``(A) In general.--The Secretary shall issue revised
guidelines and requirements for the evaluation of operational
tests and other intelligent transportation system projects
carried out under this subchapter.
``(B) Objectivity and independence.--The guidelines and
requirements issued under subparagraph (A) shall include
provisions to ensure the objectivity and independence of the
evaluator so as to avoid any real or apparent conflict of
interest or potential influence on the outcome by--
``(i) parties to any such test; or
``(ii) any other formal evaluation carried out under this
subchapter.
``(C) Funding.--The guidelines and requirements issued
under subparagraph (A) shall establish evaluation funding
levels based on the size and scope of each test that ensure
adequate evaluation of the results of the test or project.
``(2) Special rule.--Any survey, questionnaire, or
interview that the Secretary considers necessary to carry out
the evaluation of any test or program assessment activity
under this subchapter shall not be subject to chapter 35 of
title 44.

``Sec. 525. National ITS Program Plan

``(a) In General.--
``(1) Updates.--Not later than 1 year after the date of
enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, the Secretary, in
consultation with interested stakeholders (including State
transportation departments) shall develop a 5-year National
ITS Program Plan.
``(2) Scope.--The National ITS Program Plan shall--
``(A) specify the goals, objectives, and milestones for the
research and deployment of intelligent transportation systems
in the contexts of--
``(i) major metropolitan areas;
``(ii) smaller metropolitan and rural areas; and
``(iii) commercial vehicle operations;
``(B) specify the manner in which specific programs and
projects will achieve the goals, objectives, and milestones
referred to in subparagraph (A), including consideration of a
5-year timeframe for the goals and objectives;
``(C) identify activities that provide for the dynamic
development, testing, and necessary revision of standards and
protocols to promote and ensure interoperability in the
implementation of intelligent transportation system
technologies, including actions taken to establish standards;
and
``(D) establish a cooperative process with State and local
governments for--
``(i) determining desired surface transportation system
performance levels; and
``(ii) developing plans for accelerating the incorporation
of specific intelligent transportation system capabilities
into surface transportation systems.
``(b) Reporting.--The National ITS Program Plan shall be
transmitted and biennially updated as part of the surface
transportation research and technology development strategic
plan developed under section 508(c).

``Sec. 526. National ITS architecture and standards

``(a) In General.--
``(1) Development, implementation, and maintenance.--In
accordance with section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110
Stat. 783), the Secretary shall develop, implement, and
maintain a national ITS architecture and supporting standards
and protocols to promote the widespread use and evaluation of
intelligent transportation system technology as a component
of the surface transportation systems of the United States.
``(2) Interoperability and efficiency.--To the maximum
extent practicable, the national ITS architecture shall
promote interoperability among, and efficiency of,
intelligent transportation system technologies implemented
throughout the United States.
``(3) Use of standards development organizations.--In
carrying out this section, the Secretary shall use the
services of such standards development organizations as the
Secretary determines to be appropriate.
``(b) Provisional Standards.--
``(1) In general.--If the Secretary finds that the
development or selection of an intelligent transportation
system standard jeopardizes the timely achievement of the
objectives identified in subsection (a), the Secretary may
establish a provisional standard--
``(A) after consultation with affected parties; and
``(B) by using, to the maximum extent practicable, the work
product of appropriate standards development organizations.
``(2) Critical standards.--If a standard identified by the
Secretary as critical has not been adopted and published by
the appropriate standards development organization by the
date of enactment of this subchapter, the Secretary shall
establish a provisional standard--
``(A) after consultation with affected parties; and
``(B) by using, to the maximum extent practicable, the work
product of appropriate standards development organizations.
``(3) Period of effectiveness.--A provisional standard
established under paragraph (1) or (2) shall--
``(A) be published in the Federal Register; and
``(B) remain in effect until such time as the appropriate
standards development organization adopts and publishes a
standard.
``(c) Waiver of Requirement To Establish Provisional
Critical Standard.--
``(1) In general.--The Secretary may waive the requirement
under subsection (b)(2) to establish a provisional standard
if the Secretary determines that additional time would be
productive in, or that establishment of a provisional
standard would be counterproductive to, the timely
achievement of the objectives identified in subsection (a).
``(2) Notice.--The Secretary shall publish in the Federal
Register a notice that describes--
``(A) each standard for which a waiver of the provisional
standard requirement is granted under paragraph (1);
``(B) the reasons for and effects of granting the waiver;
and
``(C) an estimate as to the date on which the standard is
expected to be adopted through a process consistent with
section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783).

[[Page S864]]

``(3) Withdrawal of waiver.--
``(A) In general.--The Secretary may withdraw a waiver
granted under paragraph (1) at any time.
``(B) Notice.--On withdrawal of a waiver, the Secretary
shall publish in the Federal Register a notice that
describes--
``(i) each standard for which the waiver has been
withdrawn; and
``(ii) the reasons for withdrawing the waiver.
``(d) Conformity With National ITS Architecture.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the Secretary shall ensure that intelligent
transportation system projects carried out using funds made
available from the Highway Trust Fund conform to the national
ITS architecture, applicable standards or provisional
standards, and protocols developed under subsection (a).
``(2) Discretion of secretary.--The Secretary may authorize
exceptions to paragraph (1) for projects designed to achieve
specific research objectives outlined in--
``(A) the National ITS Program Plan under section 525; or
``(B) the surface transportation research and technology
development strategic plan developed under section 508(c).
``(3) Exceptions.--Paragraph (1) shall not apply to funds
used for operation or maintenance of an intelligent
transportation system in existence on the date of enactment
of this subchapter.

``Sec. 527. Commercial vehicle information systems and
networks deployment

``(a) Definitions.--In this section:
``(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.--
``(A) In general.--The term `commercial vehicle operations'
means motor carrier operations and motor vehicle regulatory
activities associated with the commercial movement of goods
(including hazardous materials) and passengers.
``(B) Inclusions.--The term `commercial vehicle
operations', with respect to the public sector, includes--
``(i) the issuance of operating credentials;
``(ii) the administration of motor vehicle and fuel taxes;
and
``(iii) the administration of 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--
``(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
system for access to--

``(I) interstate carrier and commercial vehicle data;
``(II) summaries of past safety performance; and
``(III) 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 system for access to
interstate carrier and commercial vehicle data;
``(B) interstate credentials administration to--
``(i)(I) perform end-to-end (including carrier application)
jurisdiction application processing, and credential issuance,
of at least the International Registration Plan and
International Fuel Tax Agreement credentials; and
``(II) extend the processing to other credentials,
including intrastate, titling, oversize or overweight
requirements, carrier registration, and hazardous materials;
``(ii) connect to the International Registration Plan and
International Fuel Tax Agreement clearinghouses; and
``(iii)(I) have at least 10 percent of the transaction
volume handled electronically; and
``(II) have the capability to add more carriers and to
extend to branch offices where applicable; and
``(C) roadside electronic screening to electronically
screen transponder-equipped commercial vehicles at a minimum
of 1 fixed or mobile inspection site and to replicate the
screening at other sites.
``(4) Expanded deployment.--The term `expanded deployment'
means the deployment of systems in a State that--
``(A) exceed the requirements of a core deployment of
commercial vehicle information systems and networks;
``(B) improve safety and the productivity of commercial
vehicle operations; and
``(C) enhance transportation security.
``(b) Program.--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.
``(c) Purpose.--It is the purpose of the program to 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.
``(d) Core Deployment Grants.--
``(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 subsection, a State shall--
``(A) have a commercial vehicle information systems and
networks program plan and a top level system design approved
by the Secretary;
``(B) certify to the Secretary that the commercial vehicle
information systems and networks deployment activities of the
State (including hardware procurement, software and system
development, and infrastructure modifications)--
``(i) are consistent with the national intelligent
transportation systems and commercial vehicle information
systems and networks architectures and available standards;
and
``(ii) promote interoperability and efficiency, to the
maximum extent practicable; and
``(C) agree to execute interoperability tests developed by
the Federal Motor Carrier Safety Administration to verify
that the systems of the State 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 subsection for the core
deployment of commercial vehicle information systems and
networks may not exceed $2,500,000, including funds received
under section 2001(a) of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004 for the core
deployment of commercial vehicle information systems and
networks.
``(4) Use of funds.--
``(A) In general.--Subject to subparagraph (B), funds from
a grant under this subsection may only be used for the core
deployment of commercial vehicle information systems and
networks.
``(B) Remaining funds.--An eligible State that has
completed the core deployment of commercial vehicle
information systems and networks, or completed the 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 the State.
``(e) Expanded Deployment Grants.--
``(1) In general.--For each fiscal year, from the funds
remaining after the Secretary has made core deployment grants
under subsection (d), the Secretary may make grants to each
eligible State, on 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 shall be 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 in an amount that does not
exceed $1,000,000 for each 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.
``(f) Federal Share.--The Federal share of the cost of a
project payable from funds made available to carry out this
section shall be the share applicable under section 120(b),
as adjusted under subsection (d) of that section.
``(g) Funding.--Funds authorized to be appropriated to
carry out this section shall be available for obligation in
the same manner and to the same extent as if the funds were
apportioned under chapter 1, except that the funds shall
remain available until expended.

``Sec. 528. Research and development

``(a) In General.--The Secretary shall carry out a
comprehensive program of intelligent transportation system
research, development, and operational tests of intelligent
vehicles and intelligent infrastructure systems, and other
similar activities that are necessary to carry out this
subchapter.
``(b) Priority Areas.--Under the program, the Secretary
shall give priority to funding projects that--
``(1) assist in the development of an interconnected
national intelligent transportation system network that--
``(A) improves the reliability of the surface
transportation system;
``(B) supports national security;

[[Page S865]]

``(C) reduces, by at least 20 percent, the cost of
manufacturing, deploying, and operating intelligent
transportation systems network components;
``(D) could assist in deployment of the Armed Forces in
response to a crisis; and
``(E) improves response to, and evacuation of the public
during, an emergency situation;
``(2) address traffic management, incident management,
transit management, toll collection traveler information, or
highway operations systems with goals of--
``(A) reducing metropolitan congestion by 5 percent by
2010;
``(B) ensuring that a national, interoperable 511 system,
along with a national traffic information system that
includes a user-friendly, comprehensive website, is fully
implemented for use by travelers throughout the United States
by September 30, 2010; and
``(C)(i) improving incident management response,
particularly in rural areas, so that rural emergency response
times are reduced by an average of 10 minutes; and
``(ii) subject to subsection (d), improving communication
between emergency care providers and trauma centers;
``(3) address traffic management, incident management,
transit management, toll collection, traveler information, or
highway operations systems;
``(4) conduct operational tests of the integration of at
least 3 crash-avoidance technologies in passenger vehicles;
``(5) incorporate human factors research, including the
science of the driving process;
``(6) facilitate the integration of intelligent
infrastructure, vehicle, and control technologies;
``(7) incorporate research on the impact of environmental,
weather, and natural conditions on intelligent transportation
systems, including the effects of cold climates;
``(8) as determined by the Secretary, will improve the
overall safety performance of vehicles and roadways,
including the use of real-time setting of speed limits
through the use of speed management technology;
``(9) examine--
``(A) the application to intelligent transportation systems
of appropriately modified existing technologies from other
industries; and
``(B) the development of new, more robust intelligent
transportation systems technologies and instrumentation;
``(10) develop and test communication technologies that--
``(A) are based on an assessment of the needs of officers
participating in a motor carrier safety program funded under
section 31104 of title 49;
``(B) take into account the effectiveness and adequacy of
available technology;
``(C) address systems integration, connectivity, and
interoperability challenges; and
``(D) provide the means for officers participating in a
motor carrier safety program funded under section 31104 of
title 49 to directly assess, without an intermediary, current
and accurate safety and regulatory information on motor
carriers, commercial motor vehicles and drivers at roadside
or mobile inspection facilities;
``(11) enhance intermodal use of intelligent transportation
systems for diverse groups, including for emergency and
health-related services;
``(12) improve sensing and wireless communications that
provide real-time information regarding congestion and
incidents;
``(13) develop and test high-accuracy, lane-level, real-
time accessible digital map architectures that can be used by
intelligent vehicles and intelligent infrastructure elements
to facilitate safety and crash avoidance (including
establishment of national standards for an open-architecture
digital map of all public roads that is compatible with
electronic 9-1-1 services);
``(14) encourage the dual-use of intelligent transportation
system technologies (such as wireless communications) for--
``(A) emergency services;
``(B) road pricing; and
``(C) local economic development; and
``(15) advance the use of intelligent transportation
systems to facilitate high-performance transportation
systems, such as through--
``(A) congestion-pricing;
``(B) real-time facility management;
``(C) rapid-emergency response; and
``(D) just-in-time transit.
``(c) Operational Tests.--Operational tests conducted under
this section shall be designed for--
``(1) the collection of data to permit objective evaluation
of the results of the tests;
``(2) the derivation of cost-benefit information that is
useful to others contemplating deployment of similar systems;
and
``(3) the development and implementation of standards.
``(d) Federal Share.--The Federal share of the costs of
operational tests under subsection (a) shall not exceed 80
percent.

``Sec. 529. Use of funds

``(a) In General.--For each fiscal year, not more than
$5,000,000 of the funds made available to carry out this
subchapter shall be used for intelligent transportation
system outreach, public relations, displays, tours, and
brochures.
``(b) Applicability.--Subsection (a) shall not apply to
intelligent transportation system training, scholarships, or
the publication or distribution of research findings,
technical guidance, or similar documents.''.
(b) Conforming Amendment.--Title V of the Transportation
Equity Act for the 21st Century is amended by striking
subtitle C (23 U.S.C. 502 note; 112 Stat. 452).

TITLE III--PUBLIC TRANSPORTATION

SEC. 3001. SHORT TITLE.

This title may be cited as the ``Federal Public
Transportation Act of 2004''.

SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES CODE;
UPDATED TERMINOLOGY.

(a) Amendments to Title 49.--Except as otherwise
specifically provided, whenever in this title an amendment or
repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision of law, the reference shall
be considered to be made to a section or other provision of
title 49, United States Code.
(b) Updated Terminology.--Except for sections 5301(f),
5302(a)(7), and 5315, chapter 53, including the chapter
analysis, is amended by striking ``mass transportation'' each
place it appears and inserting ``public transportation''.

SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

(a) Development and Revitalization of Public Transportation
Systems.--Section 5301(a) is amended to read as follows:
``(a) Development and Revitalization of Public
Transportation Systems.--It is in the economic interest of
the United States to foster the development and
revitalization of public transportation systems that maximize
the efficient, secure, and safe mobility of individuals and
minimize environmental impacts.''.
(b) General Findings.--Section 5301(b)(1) is amended--
(1) by striking ``70 percent'' and inserting ``two-
thirds''; and
(2) by striking ``urban areas'' and inserting ``urbanized
areas''.
(c) Preserving the Environment.--Section 5301(e) is
amended--
(1) by striking ``an urban'' and inserting ``a''; and
(2) by striking ``under sections 5309 and 5310 of this
title''.
(d) General Purposes.--Section 5301(f) is amended--
(1) in paragraph (1)--
(A) by striking ``improved mass'' and inserting ``improved
public''; and
(B) by striking ``public and private mass transportation
companies'' and inserting ``public transportation companies
and private companies engaged in public transportation'';
(2) in paragraph (2)--
(A) by striking ``urban mass'' and inserting ``public'';
and
(B) by striking ``public and private mass transportation
companies'' and inserting ``public transportation companies
and private companies engaged in public transportation'';
(3) in paragraph (3)--
(A) by striking ``urban mass'' and inserting ``public'';
and
(B) by striking ``public or private mass transportation
companies'' and inserting ``public transportation companies
or private companies engaged in public transportation''; and
(4) in paragraph (5), by striking ``urban mass'' and
inserting ``public''.

SEC. 3004. DEFINITIONS.

Section 5302(a) is amended--
(1) in paragraph (1)--
(A) in subparagraph (G)(i), by inserting ``including the
intercity bus portions of such facility or mall,'' after
``transportation mall,'';
(B) in subparagraph (G)(ii), by inserting ``, except for
the intercity bus portion of intermodal facilities or
malls,'' after ``commercial revenue-producing facility'';
(C) in subparagraph (H)--
(i) by striking ``and'' after ``innovative'' and inserting
``or''; and
(ii) by striking ``or'' after the semicolon at the end;
(D) in subparagraph (I), by striking the period at the end
and inserting a semicolon; and
(E) by adding at the end the following:
``(J) crime prevention and security, including--
``(i) projects to refine and develop security and emergency
response plans; or
``(ii) projects to detect chemical or biological agents in
public transportation;
``(K) conducting emergency response drills with public
transportation agencies and local first response agencies or
security training for public transportation employees, except
for expenses relating to operations; or
``(L) establishing a debt service reserve, made up of
deposits with a bondholder's trustee, to ensure the timely
payment of principal and interest on bonds issued by a grant
recipient to finance an eligible project under this
chapter.'';
(2) by striking paragraph (16);
(3) by redesignating paragraphs (8) through (15) as
paragraphs (9) through (16), respectively;
(4) by striking paragraph (7) and inserting the following:
``(7) Mass transportation.--The term `mass transportation'
means public transportation.
``(8) Mobility management.--The term `mobility management'
means a short-range planning or management activity or
project that does not include operating public transportation
services and--
``(A) improves coordination among public transportation
providers, including private companies engaged in public
transportation;

[[Page S866]]

``(B) addresses customer needs by tailoring public
transportation services to specific market niches; or
``(C) manages public transportation demand.'';
(5) by amending paragraph (11), as redesignated, to read as
follows:
``(11) Public transportation.--The term `public
transportation' means transportation by a conveyance that
provides local regular and continuing general or special
transportation to the public, but does not include school
bus, charter bus, intercity passenger rail, or sightseeing
transportation.'';
(6) in subparagraphs (A) and (E) of paragraph (16), as
redesignated, by striking ``and'' each place it appears and
inserting ``or''; and
(7) by amending paragraph (17) to read as follows:
``(17) Urbanized area.--The term `urbanized area' means an
area encompassing a population of not less than 50,000 people
that has been defined and designated in the most recent
decennial census as an `urbanized area' by the Secretary of
Commerce.''.

SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING.

Section 5303 is amended to read as follows:

``Sec. 5303. Metropolitan transportation planning

``(a) Definitions.--As used in this section and in section
5304, the following definitions shall apply:
``(1) Consultation.--A `consultation' occurs when 1 party--
``(A) confers with another identified party in accordance
with an established process;
``(B) prior to taking action, considers the views of the
other identified party; and
``(C) periodically informs that party about action taken.
``(2) Metropolitan planning area.--The term `metropolitan
planning area' means the geographic area determined by
agreement between the metropolitan planning organization and
the Governor under subsection (d).
``(3) Metropolitan planning organization.--The term
`metropolitan planning organization' means the Policy Board
of the organization designated under subsection (c).
``(4) Nonmetropolitan area.--The term `nonmetropolitan
area' means any geographic area outside all designated
metropolitan planning areas.
``(5) Nonmetropolitan local official.--The term
`nonmetropolitan local official' means any elected or
appointed official of general purpose local government
located in a nonmetropolitan area who is responsible for
transportation services for such local government.
``(b) General Requirements.--
``(1) Development of plans.--To accomplish the objectives
described in section 5301(a), each metropolitan planning
organization, in cooperation with the State and public
transportation operators, shall develop transportation plans
for metropolitan planning areas of the State in which it is
located.
``(2) Contents.--The plans developed under paragraph (1)
for each metropolitan planning area shall provide for the
development and integrated management and operation of
transportation systems and facilities (including pedestrian
walkways and bicycle transportation facilities) that will
function as an intermodal transportation system for the
metropolitan planning area and as an integral part of an
intermodal transportation system for the State and the United
States.
``(3) Process of development.--The process for developing
the plans shall provide for consideration of all modes of
transportation and shall be continuing, cooperative, and
comprehensive to the degree appropriate, based on the
complexity of the transportation problems to be addressed.
``(4) Planning and project development.--The metropolitan
planning organization, the State Department of
Transportation, and the appropriate public transportation
provider shall agree upon the approaches that will be used to
evaluate alternatives and identify transportation
improvements that address the most complex problems and
pressing transportation needs in the metropolitan area.
``(c) Designation of Metropolitan Planning Organizations.--
``(1) In general.--To carry out the transportation planning
process under this section, a metropolitan planning
organization shall be designated for each urbanized area--
``(A) by agreement between the Governor and units of
general purpose local government that combined represent not
less than 75 percent of the affected population (including
the incorporated city or cities named by the Bureau of the
Census in designating the urbanized area); or
``(B) in accordance with procedures established by
applicable State or local law.
``(2) Structure.--Each metropolitan planning organization
designated under paragraph (1) that serves an area identified
as a transportation management area shall consist of--
``(A) local elected officials;
``(B) officials of public agencies that administer or
operate major modes of transportation in the metropolitan
area; and
``(C) appropriate State officials.
``(3) Limitation on statutory construction.--Nothing in
this subsection shall be construed to interfere with the
authority, under any State law in effect on December 18,
1991, of a public agency with multimodal transportation
responsibilities--
``(A) to develop plans and programs for adoption by a
metropolitan planning organization; and
``(B) to develop long-range capital plans, coordinate
transit services and projects, and carry out other activities
pursuant to State law.
``(4) Continuing designation.--The designation of a
metropolitan planning organization under this subsection or
any other provision of law shall remain in effect until the
metropolitan planning organization is redesignated under
paragraph (5).
``(5) Redesignation procedures.--A metropolitan planning
organization may be redesignated by agreement between the
Governor and units of general purpose local government that
combined represent not less than 75 percent of the existing
planning area population (including the incorporated city or
cities named by the Bureau of the Census in designating the
urbanized area) as appropriate to carry out this section.
``(6) Designation of more than 1 metropolitan planning
organization.--More than 1 metropolitan planning organization
may be designated within an existing metropolitan planning
area only if the Governor and the existing metropolitan
planning organization determine that the size and complexity
of the existing metropolitan planning area make designation
of more than 1 metropolitan planning organization for the
area appropriate.
``(d) Metropolitan Planning Area Boundaries.--
``(1) In general.--For the purposes of this section, the
boundaries of a metropolitan planning area shall be
determined by agreement between the metropolitan planning
organization and the Governor.
``(2) Included area.--Each metropolitan planning area--
``(A) shall encompass at least the existing urbanized area
and the contiguous area expected to become urbanized within a
20-year forecast period for the transportation plan; and
``(B) may encompass the entire metropolitan statistical
area or consolidated metropolitan statistical area, as
defined by the Office of Management and Budget.
``(3) Identification of new urbanized areas within existing
planning area boundaries.--The designation by the Bureau of
the Census of new urbanized areas within an existing
metropolitan planning area shall not require the
redesignation of the existing metropolitan planning
organization.
``(4) Existing metropolitan planning areas in
nonattainment.--Notwithstanding paragraph (2), in the case of
an urbanized area designated as a nonattainment area for
ozone or carbon monoxide under the Clean Air Act (42 U.S.C.
7401 et seq.), the boundaries of the metropolitan planning
area in existence as of the date of enactment of the Federal
Public Transportation Act of 2004 shall be retained, except
that the boundaries may be adjusted by agreement of the
Governor and affected metropolitan planning organizations in
accordance with paragraph (5).
``(5) New metropolitan planning areas in nonattainment.--If
an urbanized area is designated after the date of enactment
of this paragraph in a nonattainment area for ozone or carbon
monoxide, the boundaries of the metropolitan planning area--
``(A) shall be established in accordance with subsection
(c)(1);
``(B) shall encompass the areas described in paragraph
(2)(A);
``(C) may encompass the areas described in paragraph
(2)(B); and
``(D) may address any nonattainment identified under the
Clean Air Act (42 U.S.C. 7401 et seq.) for ozone or carbon
monoxide.
``(e) Coordination in Multistate Areas.--
``(1) In general.--The Secretary shall encourage each
Governor with responsibility for a portion of a multistate
metropolitan area and the appropriate metropolitan planning
organizations to provide coordinated transportation planning
for the entire metropolitan area.
``(2) Interstate compacts.--States are authorized--
``(A) to enter into agreements or compacts with other
States, which agreements or compacts are not in conflict with
any law of the United States, for cooperative efforts and
mutual assistance in support of activities authorized under
this section as the activities pertain to interstate areas
and localities within the States; and
``(B) to establish such agencies, joint or otherwise, as
the States may determine desirable for making the agreements
and compacts effective.
``(3) Lake tahoe region.--
``(A) Definition.--In this paragraph, the term `Lake Tahoe
region' has the meaning given the term `region' in
subdivision (a) of article II of the Tahoe Regional Planning
Compact, as set forth in the first section of Public Law 96-
551 (94 Stat. 3234).
``(B) Transportation planning process.--The Secretary
shall--
``(i) establish with the Federal land management agencies
that have jurisdiction over land in the Lake Tahoe region a
transportation planning process for the region; and
``(ii) coordinate the transportation planning process with
the planning process required of State and local governments
under this section and section 5304.
``(C) Interstate compact.--
``(i) In general.--Subject to clause (ii) and
notwithstanding subsection (c), to carry out the
transportation planning process required by this section,
California and Nevada may

[[Page S867]]

designate a metropolitan planning organization for the Lake
Tahoe region, by agreement between the Governor of the State
of California, the Governor of the State of Nevada, and units
of general purpose local government that combined represent
not less than 75 percent of the affected population
(including the incorporated city or cities named by the
Bureau of the Census in designating the urbanized area), or
in accordance with procedures established by applicable State
or local law.
``(ii) Involvement of federal land management agencies.--

``(I) Representation.--The policy board of a metropolitan
planning organization designated under clause (i) shall
include a representative of each Federal land management
agency that has jurisdiction over land in the Lake Tahoe
region.
``(II) Funding.--In addition to funds made available to the
metropolitan planning organization under other provisions of
title 23 and this chapter, not more than 1 percent of the
funds allocated under section 202 of title 23 may be used to
carry out the transportation planning process for the Lake
Tahoe region under this subparagraph.

``(D) Activities.--Highway projects included in
transportation plans developed under this paragraph--
``(i) shall be selected for funding in a manner that
facilitates the participation of the Federal land management
agencies that have jurisdiction over land in the Lake Tahoe
region; and
``(ii) may, in accordance with chapter 2 of title 23, be
funded using funds allocated under section 202 of title 23.
``(f) Coordination of Metropolitan Planning
Organizations.--
``(1) Nonattainment areas.--If more than 1 metropolitan
planning organization has authority within a metropolitan
area or an area which is designated as a nonattainment area
for ozone or carbon monoxide under the Clean Air Act (42
U.S.C. 7401 et seq.), each metropolitan planning organization
shall consult with the other metropolitan planning
organizations designated for such area and the State in the
coordination of plans required by this section.
``(2) Transportation improvements located in multiple
metropolitan planning areas.--If a transportation improvement
funded from the highway trust fund is located within the
boundaries of more than 1 metropolitan planning area, the
metropolitan planning organizations shall coordinate plans
regarding the transportation improvement.
``(3) Interregional and interstate project impacts.--
Planning for National Highway System, commuter rail projects,
or other projects with substantial impacts outside a single
metropolitan planning area or State shall be coordinated
directly with the affected, contiguous, metropolitan planning
organizations and States.
``(4) Coordination with other planning processes.--
``(A) In general.--The Secretary shall encourage each
metropolitan planning organization to coordinate its planning
process, to the maximum extent practicable, with those
officials responsible for other types of planning activities
that are affected by transportation, including State and
local land use planning, economic development, environmental
protection, airport operations, housing, and freight.
``(B) Other considerations.--The metropolitan planning
process shall develop transportation plans with due
consideration of, and in coordination with, other related
planning activities within the metropolitan area. This should
include the design and delivery of transportation services
within the metropolitan area that are provided by--
``(i) recipients of assistance under this chapter;
``(ii) governmental agencies and nonprofit organizations
(including representatives of the agencies and organizations)
that receive Federal assistance from a source other than the
Department of Transportation to provide nonemergency
transportation services; and
``(iii) recipients of assistance under section 204 of title
23.
``(g) Scope of Planning Process.--
``(1) In general.--The goals and objectives developed
through the metropolitan planning process for a metropolitan
planning area under this section shall address, in relation
to the performance of the metropolitan area transportation
systems--
``(A) supporting the economic vitality of the metropolitan
area, especially by enabling global competitiveness,
productivity, and efficiency, including through services
provided by public and private operators;
``(B) increasing the safety of the transportation system
for motorized and nonmotorized users;
``(C) increasing the security of the transportation system
for motorized and nonmotorized users;
``(D) increasing the accessibility and mobility of people
and for freight, including through services provided by
public and private operators;
``(E) protecting and enhancing the environment, promoting
energy conservation, and promoting consistency between
transportation improvements and State and local land use
planning and economic development patterns;
``(F) enhancing the integration and connectivity of the
transportation system, across and between modes, for people
and freight, including through services provided by public
and private operators;
``(G) promoting efficient system management and operation;
and
``(H) emphasizing the preservation of the existing
transportation system, including services provided by public
and private operators.
``(2) Failure to consider factors.--The failure to consider
any factor specified in paragraph (1) shall not be reviewable
by any court under title 23, this title, subchapter II of
chapter 5 of title 5, or chapter 7 of title 5 in any matter
affecting a transportation plan, a transportation improvement
plan, a project or strategy, or the certification of a
planning process.
``(h) Development of Transportation Plan.--
``(1) In general.--
``(A) Requirement.--Each metropolitan planning organization
shall develop, and update not less frequently than every 3
years, a transportation plan for its metropolitan planning
area in accordance with this subsection.
``(B) Coordination factors.--In developing the
transportation plan under this section, each metropolitan
planning organization shall consider the factors described in
subsection (f) over a 20-year forecast period.
``(C) Financial estimates.--For the purpose of developing
the transportation plan, the metropolitan planning
organization, transit operator, and State shall cooperatively
develop estimates of funds that will be available to support
plan implementation.
``(2) Contents.-- A transportation plan under this
subsection shall be in a form that the Secretary determines
to be appropriate and shall contain--
``(A) an identification of transportation facilities,
including major roadways, public transportation, multimodal
and intermodal facilities, and intermodal connectors, that
should function as an integrated metropolitan transportation
system, emphasizing those facilities that serve important
national and regional transportation functions;
``(B) a financial plan that--
``(i) demonstrates how the adopted transportation plan can
be implemented;
``(ii) indicates resources from public and private sources
that are reasonably expected to be made available to carry
out the plan;
``(iii) recommends any additional financing strategies for
needed projects and programs; and
``(iv) may include, for illustrative purposes, additional
projects that would be included in the adopted transportation
plan if approved by the Secretary and reasonable additional
resources beyond those identified in the financial plan were
available;
``(C) operational and management strategies to improve the
performance of existing transportation facilities to relieve
vehicular congestion and maximize the safety and mobility of
people and goods;
``(D) capital investment and other strategies to preserve
the existing metropolitan transportation infrastructure and
provide for multimodal capacity increases based on regional
priorities and needs; and
``(E) proposed transportation and transit enhancement
activities.
``(3) Coordination with clean air act agencies.--In
metropolitan areas in nonattainment for ozone or carbon
monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.),
the metropolitan planning organization shall coordinate the
development of a transportation plan with the process for
development of the transportation control measures of the
State implementation plan required by the Clean Air Act.
``(4) Participation by interested parties.--
``(A) Development of participation plan.--Not less
frequently than every 3 years, each metropolitan planning
organization shall develop and adopt a plan for participation
in the process for developing the metropolitan transportation
plan by--
``(i) citizens;
``(ii) affected public agencies;
``(iii) representatives of public transportation employees;
``(iv) freight shippers;
``(v) providers of freight transportation services;
``(vi) private providers of transportation;
``(vii) representatives of users of public transit;
``(viii) representatives of users of pedestrian walkways
and bicycle transportation facilities; and
``(ix) other interested parties.
``(B) Contents of participation plan.--The participation
plan--
``(i) shall be developed in a manner the Secretary
determines to be appropriate;
``(ii) shall be developed in consultation with all
interested parties; and
``(iii) shall provide that all interested parties have
reasonable opportunities to comment on--

``(I) the process for developing the transportation plan;
and
``(II) the contents of the transportation plan.

``(C) Certification.--Before the Governor and metropolitan
planning organizations approve a transportation plan, each
metropolitan planning organization shall certify that it has
complied with the requirements of the participation plan it
has adopted.
``(5) Approval of the transportation plan.--
``(A) In general.--Each transportation plan prepared by a
metropolitan planning organization shall be--

[[Page S868]]

``(i) approved by the metropolitan planning organization;
and
``(ii) submitted to the Governor for approval of the first
5 years of the plan.
``(B) Project advancement.--The projects listed in the
first 5 years of the plan may be selected for advancement
consistent with the project selection requirements.
``(C) Major amendments.--Major amendments to the list
described in subparagraph (B), including the addition,
deletion, or concept and scope change of a regionally
significant project, may not be advanced without--
``(i) appropriate public involvement;
``(ii) financial planning;
``(iii) transportation conformity analyses; and
``(iv) a finding by the Federal Highway Administration and
Federal Transit Administration that the amended plan was
produced in a manner consistent with this section.
``(6) Included projects.--
``(A) Projects under chapter 1 of title 23 and this
chapter.--A transportation plan developed under this section
for a metropolitan area shall include the projects and
strategies within the metropolitan area that are proposed for
funding under chapter 1 of title 23 and this chapter.
``(B) Projects under chapter 2 of title 23.--
``(i) Regionally significant projects.--Regionally
significant projects proposed for funding under chapter 2 of
title 23 shall be identified individually in the metropolitan
transportation plan.
``(ii) Other projects.--Projects proposed for funding under
chapter 2 of title 23 that are not regionally significant
shall be grouped in 1 line item or identified individually in
the metropolitan transportation plan.
``(7) Selection of projects.--
``(A) In general.--Except as otherwise provided under
subsection (i)(4), the selection of federally funded projects
in metropolitan planning areas shall be carried out, from the
approved transportation plan--
``(i) by the State, in the case of projects under chapter 1
of title 23 or section 5308, 5310, 5311, or 5317 of this
title;
``(ii) by the designated recipient, in the case of projects
under section 5307; and
``(iii) in cooperation with the metropolitan planning
organization.
``(B) Modifications to project priority.--Notwithstanding
any other provision of law, action by the Secretary shall not
be required to advance a project from the first 5 years of
the approved transportation plan in place of another project
in the same 5-year period.
``(8) Publication requirements.--
``(A) Publication of transportation plan.--A transportation
plan involving Federal participation shall be published or
otherwise made readily available by the metropolitan planning
organization for public review.
``(B) Publication of annual listings of projects.--An
annual listing of projects, including investments in
pedestrian walkways and bicycle transportation facilities,
for which Federal funds have been obligated in the preceding
5 years shall be published or otherwise made available for
public review by the cooperative effort of the State, transit
operator, and the metropolitan planning organization. This
listing shall be consistent with the funding categories
identified in the first 5 years of the transportation plan.
``(C) Rulemaking.--Not later than 120 days after the date
of enactment of the Federal Public Transportation Act of
2004, the Secretary shall issue regulations specifying--
``(i) the types of data to be included in the list
described in subparagraph (B), including--

``(I) the name, type, purpose, and geocoded location of
each project;
``(II) the Federal, State, and local identification numbers
assigned to each project;
``(III) amounts obligated and expended on each project,
sorted by funding source and transportation mode, and the
date on which each obligation was made; and
``(IV) the status of each project; and

``(ii) the media through which the list described in
subparagraph (B) will be made available to the public,
including written and visual components for each of the
projects listed.
``(i) Transportation Management Areas.--
``(1) Required identification.--The Secretary shall
identify each urbanized area with a population of more than
200,000 individuals as a transportation management area.
``(2) Transportation plans.--Transportation plans for a
metropolitan planning area serving a transportation
management area shall be based on a continuing and
comprehensive transportation planning process carried out by
the metropolitan planning organization in cooperation with
the State and transit operators.
``(3) Congestion management system.--
``(A) In general.--The transportation planning process
under this section shall address congestion management
through a process that provides for effective management and
operation, based on a cooperatively developed and implemented
metropolitan-wide strategy, of new and existing
transportation facilities eligible for funding under title 23
and this chapter through the use of travel demand reduction
and operational management strategies.
``(B) Phase-in schedule.--The Secretary shall establish a
phase-in schedule that provides for full compliance with the
requirements of this section not later than 1 year after the
identification of transportation management areas under
paragraph (1).
``(4) Selection of projects.--
``(A) In general.--All federally funded projects carried
out within the boundaries of a metropolitan planning area
serving a transportation management area under title 23
(except for projects carried out on the National Highway
System and projects carried out under the bridge program or
the interstate maintenance program) or under this chapter
shall be selected for implementation from the approved
transportation plan by the metropolitan planning organization
designated for the area in consultation with the State and
any affected public transit operator.
``(B) National highway system projects.--Projects on the
National Highway System carried out within the boundaries of
a metropolitan planning area serving a transportation
management area and projects carried out within such
boundaries under the bridge program or the interstate
maintenance program under title 23 shall be selected for
implementation from the approved transportation plan by the
State in cooperation with the metropolitan planning
organization designated for the area.
``(5) Certification.--
``(A) In general.--The Secretary shall--
``(i) ensure that the metropolitan planning process of a
metropolitan planning organization serving a transportation
management area is being carried out in accordance with
Federal law; and
``(ii) subject to subparagraph (B), certify, not less
frequently than once every 3 years, that the requirements of
this paragraph are met with respect to the metropolitan
planning process.
``(B) Requirements for certification.--The Secretary may
make the certification under subparagraph (A) if--
``(i) the transportation planning process complies with the
requirements of this section and all other applicable Federal
law; and
``(ii) a transportation plan for the metropolitan planning
area has been approved by the metropolitan planning
organization and the Governor.
``(C) Penalty for failing to certify.--
``(i) Withholding project funds.--If the metropolitan
planning process of a metropolitan planning organization
serving a transportation management area is not certified,
the Secretary may withhold any funds otherwise available to
the metropolitan planning area for projects funded under
title 23 and this chapter.
``(ii) Restoration of withheld funds.--Any funds withheld
under clause (i) shall be restored to the metropolitan
planning area when the metropolitan planning process is
certified by the Secretary.
``(D) Review of certification.--In making a certification
under this paragraph, the Secretary shall provide for public
involvement appropriate to the metropolitan area under
review.
``(j) Abbreviated Plans for Certain Areas.--
``(1) In general.--Subject to paragraph (2), in the case of
a metropolitan area not designated as a transportation
management area under this section, the Secretary may provide
for the development of an abbreviated transportation plan for
the metropolitan planning area that the Secretary determines
is appropriate to achieve the purposes of this section, after
considering the complexity of transportation problems in the
area.
``(2) Nonattainment areas.--The Secretary may not permit
abbreviated plans for a metropolitan area that is in
nonattainment for ozone or carbon monoxide under the Clean
Air Act (42 U.S.C. 7401 et seq.).
``(k) Additional Requirements for Certain Nonattainment
Areas.--
``(1) In general.--Notwithstanding any other provisions of
title 23 or this chapter, Federal funds may not be advanced
for transportation management areas classified as
nonattainment for ozone or carbon monoxide pursuant to the
Clean Air Act (42 U.S.C. 7401 et seq.) for any highway
project that will result in a significant increase in
carrying capacity for single-occupant vehicles unless the
project is addressed through a congestion management process.
``(2) Applicability.--This subsection applies to any
nonattainment area within the metropolitan planning area
boundaries determined under subsection (d).
``(l) Limitation on Statutory Construction.--Nothing in
this section shall be construed to confer on a metropolitan
planning organization the authority to impose legal
requirements on any transportation facility, provider, or
project that is not eligible under title 23 or this chapter.
``(m) Availability of Funds.--Funds set aside under section
104(f) of title 23 or section 5308 of this title shall be
available to carry out this section.
``(n) Continuation of Current Review Practice.--Any
decision by the Secretary concerning a plan described in this
section shall not be considered to be a Federal action
subject to review under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.).''.

SEC. 3006. STATEWIDE TRANSPORTATION PLANNING.

Section 5304 is amended to read as follows:

``Sec. 5304. Statewide transportation planning

``(a) General Requirements.--

[[Page S869]]

``(1) Development of plans and programs.--To support the
policies described in section 5301(a), each State shall
develop a statewide transportation plan (referred to in this
section as a ``Plan'') and a statewide transportation
improvement program (referred to in this section as a
``Program'') for all areas of the State subject to section
5303.
``(2) Contents.--The Plan and the Program developed for
each State shall provide for the development and integrated
management and operation of transportation systems and
facilities (including pedestrian walkways and bicycle
transportation facilities) that will function as an
intermodal transportation system for the State and an
integral part of an intermodal transportation system for the
United States.
``(3) Process of development.--The process for developing
the Plan and the Program shall--
``(A) provide for the consideration of all modes of
transportation and the policies described in section 5301(a);
and
``(B) be continuing, cooperative, and comprehensive to the
degree appropriate, based on the complexity of the
transportation problems to be addressed.
``(b) Coordination With Metropolitan Planning; State
Implementation Plan.--Each State shall--
``(1) coordinate planning under this section with--
``(A) the transportation planning activities under section
5303 for metropolitan areas of the State; and
``(B) other related statewide planning activities,
including trade and economic development and related
multistate planning efforts; and
``(2) develop the transportation portion of the State
implementation plan, as required by the Clean Air Act (42
U.S.C. 7401 et seq.).
``(c) Interstate Agreements.--States may enter into
agreements or compacts with other States for cooperative
efforts and mutual assistance in support of activities
authorized under this section related to interstate areas and
localities in the States and establishing authorities the
States consider desirable for making the agreements and
compacts effective.
``(d) Scope of Planning Process.--
``(1) In general.--Each State shall carry out a statewide
transportation planning process that provides for the
consideration of projects, strategies, and implementing
projects and services that will--
``(A) support the economic vitality of the United States,
the States, nonmetropolitan areas, and metropolitan areas,
especially by enabling global competitiveness, productivity,
and efficiency;
``(B) increase the safety of the transportation system for
motorized and nonmotorized users;
``(C) increase the security of the transportation system
for motorized and nonmotorized users;
``(D) increase the accessibility and mobility of people and
freight;
``(E) protect and enhance the environment, promote energy
conservation, promote consistency between transportation
improvements and State and local land use planning and
economic development patterns, and improve the quality of
life;
``(F) enhance the integration and connectivity of the
transportation system, across and between modes throughout
the State, for people and freight;
``(G) promote efficient system management and operation;
and
``(H) emphasize the preservation of the existing
transportation system.
``(2) Failure to consider factors.--The failure to consider
any factor specified in paragraph (1) shall not be reviewable
by any court under title 23, this title, subchapter II of
chapter 5 of title 5, or chapter 7 of title 5 in any matter
affecting a Plan, a Program, a project or strategy, or the
certification of a planning process.
``(e) Additional Requirements.--In carrying out planning
under this section, each State shall consider--
``(1) with respect to nonmetropolitan areas, the concerns
of affected local officials with responsibility for
transportation;
``(2) the concerns of Indian tribal governments and Federal
land management agencies that have jurisdiction over land
within the boundaries of the State; and
``(3) coordination of Plans, Programs, and planning
activities with related planning activities being carried out
outside of metropolitan planning areas and between States.
``(f) Statewide Transportation Plan.--
``(1) Development.--Each State shall develop a Plan, with a
minimum 20-year forecast period for all areas of the State,
that provides for the development and implementation of the
intermodal transportation system of the State.
``(2) Consultation with governments.--
``(A) Metropolitan planning areas.--The Plan shall be
developed for each metropolitan planning area in the State in
cooperation with the metropolitan planning organization
designated for the metropolitan planning area under section
5303.
``(B) Nonmetropolitan areas.--With respect to
nonmetropolitan areas, the statewide transportation plan
shall be developed in consultation with affected
nonmetropolitan officials with responsibility for
transportation. The consultation process shall not require
the review or approval of the Secretary.
``(C) Indian tribal areas.--With respect to each area of
the State under the jurisdiction of an Indian tribal
government, the Plan shall be developed in consultation with
the tribal government and the Secretary of the Interior.
``(3) Participation by interested parties.--In developing
the Plan, the State shall--
``(A) provide citizens, affected public agencies,
representatives of public transportation employees, freight
shippers, private providers of transportation,
representatives of users of public transportation,
representatives of users of pedestrian walkways and bicycle
transportation facilities, providers of freight
transportation services, and other interested parties with a
reasonable opportunity to comment on the proposed Plan; and
``(B) identify transportation strategies necessary to
efficiently serve the mobility needs of people.
``(4) Financial plan.--The Plan may include a financial
plan that--
``(A) demonstrates how the adopted Plan can be implemented;
``(B) indicates resources from public and private sources
that are reasonably expected to be made available to carry
out the Plan;
``(C) recommends any additional financing strategies for
needed projects and programs; and
``(D) may include, for illustrative purposes, additional
projects that would be included in the adopted Plan if
reasonable additional resources beyond those identified in
the financial plan were available.
``(5) Selection of projects from illustrative list.--A
State shall not be required to select any project from the
illustrative list of additional projects described in
paragraph (4)(D).
``(6) Existing system.--The Plan should include capital,
operations and management strategies, investments,
procedures, and other measures to ensure the preservation and
most efficient use of the existing transportation system.
``(g) Statewide Transportation Improvement Program.--
``(1) Development.--Each State shall develop a Program for
all areas of the State.
``(2) Consultation with governments.--
``(A) Metropolitan planning areas.--With respect to each
metropolitan planning area in the State, the Program shall be
developed in cooperation with the metropolitan planning
organization designated for the metropolitan planning area
under section 5303.
``(B) Nonmetropolitan areas.--With respect to each
nonmetropolitan area in the State, the Program shall be
developed in consultation with affected nonmetropolitan local
officials with responsibility for transportation. The
consultation process shall not require the review or approval
of the Secretary.
``(C) Indian tribal areas.--With respect to each area of
the State under the jurisdiction of an Indian tribal
government, the Program shall be developed in consultation
with the tribal government and the Secretary of the Interior.
``(3) Participation by interested parties.--In developing
the Program, the State shall provide citizens, affected
public agencies, representatives of public transportation
employees, freight shippers, private providers of
transportation, providers of freight transportation services,
representatives of users of public transit, representatives
of users of pedestrian walkways and bicycle transportation
facilities, and other interested parties with a reasonable
opportunity to comment on the proposed Program.
``(4) Included projects.--
``(A) In general.--A Program developed under this
subsection for a State shall include federally supported
surface transportation expenditures within the boundaries of
the State.
``(B) Listing of projects.--
``(i) In general.--The Program shall cover a minimum of 5
years, identify projects by year, be fiscally constrained by
year, and be updated not less than once every 5 years.
``(ii) Publication.--An annual listing of projects for
which funds have been obligated in the preceding 5 years in
each metropolitan planning area shall be published or
otherwise made available by the cooperative effort of the
State, transit operator, and the metropolitan planning
organization for public review. The listing shall be
consistent with the funding categories identified in the
first 5 years of each metropolitan transportation plan.
``(C) Individual identification.--
``(i) Regionally significant projects.--Regionally
significant projects proposed for funding under chapter 2 of
title 23 shall be identified individually in the
transportation improvement program.
``(ii) Other projects.--Projects proposed for funding under
chapter 2 of title 23 that are not determined to be
regionally significant shall be grouped in 1 line item or
identified individually.
``(D) Consistency with statewide transportation plan.--Each
project included in the list described in subparagraph (B)
shall be--
``(i) consistent with the Plan developed under this section
for the State;
``(ii) identical to the project or phase of the project as
described in each year of the initial 5 years of an approved
metropolitan transportation plan; and
``(iii) in conformance with the applicable State air
quality implementation plan developed under the Clean Air Act
(42 U.S.C. 7401 et seq.), if the project is carried out in an

[[Page S870]]

area designated as nonattainment for ozone or carbon monoxide
under that Act.
``(E) Requirement of anticipated full funding.--The Program
shall not include a project, or an identified phase of a
project, unless full funding can reasonably be anticipated to
be available for the project within the time period
contemplated for completion of the project.
``(F) Financial plan.--The Program may include a financial
plan that--
``(i) demonstrates how the approved Program can be
implemented;
``(ii) indicates resources from public and private sources
that are reasonably expected to be made available to carry
out the Program;
``(iii) recommends any additional financing strategies for
needed projects and programs; and
``(iv) may include, for illustrative purposes, additional
projects that would be included in the adopted transportation
plan if reasonable additional resources beyond those
identified in the financial plan were available.
``(G) Selection of projects from illustrative list.--
``(i) No required selection.--Notwithstanding subparagraph
(F), a State shall not be required to select any project from
the illustrative list of additional projects described in
subparagraph (F)(iv).
``(ii) Required approval by the secretary.--A State shall
not include any project from the illustrative list of
additional projects described in subparagraph (F)(iv) in an
approved Program without the approval of the Secretary.
``(H) Priorities.--The Program shall reflect the priorities
for programming and expenditures of funds, including
transportation and transit enhancement activities, required
by title 23 and this chapter, and transportation control
measures included in the State's air quality implementation
plan.
``(5) Project selection for areas with fewer than 50,000
individuals.--
``(A) In general.--Each State, in cooperation with the
affected nonmetropolitan local officials with responsibility
for transportation, shall select projects to be carried out
in areas with fewer than 50,000 individuals from the approved
Program (excluding projects carried out under the National
Highway System, the bridge program, or the interstate
maintenance program under title 23 or sections 5310 and 5311
of this title).
``(B) Certain programs.--Each State, in consultation with
the affected nonmetropolitan local officials with
responsibility for transportation, shall select, from the
approved Program, projects to be carried out in areas with
fewer than 50,000 individuals under the National Highway
System, the bridge program, or the Interstate maintenance
program under title 23 or under sections 5310 and 5311 of
this title.
``(6) Statewide transportation improvement program
approval.--A Program developed under this subsection shall be
reviewed and based on a current planning finding approved by
the Secretary not less frequently than once every 5 years.
``(7) Planning finding.--Not less frequently than once
every 5 years, the Secretary shall determine whether the
transportation planning process through which Plans and
Programs are developed are consistent with this section and
section 5303.
``(8) Modifications to project priority.--Notwithstanding
any other provision of law, a project included in the
approved Program may be advanced in place of another project
in the program without the approval of the Secretary.
``(h) Funding.--Funds set aside pursuant to section 104(i)
of title 23 and 5308 of this title shall be available to
carry out this section.
``(i) Treatment of Certain State Laws as Congestion
Management Systems.--For purposes of this section and section
5303, State laws, rules, or regulations pertaining to
congestion management systems or programs may constitute the
congestion management system under section 5303(i)(3) if the
Secretary determines that the State laws, rules, or
regulations are consistent with, and fulfill the intent of,
the purposes of section 5303.
``(j) Continuation of Current Review Practice.--Any
decision by the Secretary under this section, regarding a
metropolitan or statewide transportation plan or the Program,
shall not be considered to be a Federal action subject to
review under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.).''.

SEC. 3007. TRANSPORTATION MANAGEMENT AREAS.

Section 5305 is repealed.

SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

Section 5306 is amended--
(1) in subsection (a)--
(A) by striking ``5305 of this title'' and inserting
``5308''; and
(B) by inserting ``, as determined by local policies,
criteria, and decision making,'' after ``feasible'';
(2) in subsection (b) by striking ``5303-5305 of this
title'' and inserting ``5303, 5304, and 5308''; and
(3) by adding at the end the following:
``(c) Regulations.--Not later than 1 year after the date of
enactment of the Federal Public Transportation Act of 2004,
the Secretary shall issue regulations describing how the
requirements under this chapter relating to subsection (a)
shall be enforced.

SEC. 3009. URBANIZED AREA FORMULA GRANTS.

(a) Technical Amendments.--Section 5307 is amended--
(1) by striking subsections (h), (j) and (k); and
(2) by redesignating subsections (i), (l), (m), and (n) as
subsections (h), (i), (j), and (k), respectively.
(b) Definitions.--Section 5307(a) is amended--
(1) by amending paragraph (2)(A) to read as follows:
``(A) an entity designated, in accordance with the planning
process under sections 5303, 5304, and 5306, by the chief
executive officer of a State, responsible local officials,
and publicly owned operators of public transportation, to
receive and apportion amounts under sections 5336 and 5337
that are attributable to transportation management areas
designated under section 5303; or''; and
(2) by adding at the end the following:
``(3) Subrecipient.--The term `subrecipient' means a State
or local governmental authority, a nonprofit organization, or
a private operator of public transportation service that may
receive a Federal transit program grant indirectly through a
recipient, rather than directly from the Federal
Government.''.
(c) General Authority.--Section 5307(b) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) In general.--The Secretary of Transportation may
award grants under this section for--
``(A) capital projects, including associated capital
maintenance items;
``(B) planning, including mobility management;
``(C) transit enhancements;
``(D) operating costs of equipment and facilities for use
in public transportation in an urbanized area with a
population of less than 200,000; and
``(E) operating costs of equipment and facilities for use
in public transportation in a portion or portions of an
urbanized area with a population of at least 200,000, but not
more than 225,000, if--
``(i) the urbanized area includes parts of more than 1
State;
``(ii) the portion of the urbanized area includes only 1
State;
``(iii) the population of the portion of the urbanized area
is less than 30,000; and
``(iv) the grants will not be used to provide public
transportation outside of the portion of the urbanized
area.'';
(2) by amending paragraph (2) to read as follows:
``(2) Special rule for fiscal years 2004 through 2006--
``(A) Increased flexibility.--The Secretary may award
grants under this section, from funds made available to carry
out this section for each of the fiscal years 2004 through
2006, to finance the operating cost of equipment and
facilities for use in mass transportation in an urbanized
area with a population of at least 200,000, as determined by
the 2000 decennial census of population if--
``(i) the urbanized area had a population of less than
200,000, as determined by the 1990 decennial census of
population;
``(ii) a portion of the urbanized area was a separate
urbanized area with a population of less than 200,000, as
determined by the 1990 decennial census of population;
``(iii) the area was not designated as an urbanized area,
as determined by the 1990 decennial census of population; or
``(iv) a portion of the area was not designated as an
urbanized area, as determined by the 1990 decennial census,
and received assistance under section 5311 in fiscal year
2002.
``(B) Maximum amounts in fiscal year 2004.--In fiscal year
2004--
``(i) amounts made available to any urbanized area under
clause (i) or (ii) of subparagraph (A) shall be not more than
the amount apportioned in fiscal year 2002 to the urbanized
area with a population of less than 200,000, as determined in
the 1990 decennial census of population;
``(ii) amounts made available to any urbanized area under
subparagraph (A)(iii) shall be not more than the amount
apportioned to the urbanized area under this section for
fiscal year 2003; and
``(iii) each portion of any area not designated as an
urbanized area, as determined by the 1990 decennial census,
and eligible to receive funds under subparagraph (A)(iv),
shall receive an amount of funds to carry out this section
that is not less than the amount the portion of the area
received under section 5311 for fiscal year 2002.
``(C) Maximum amounts in fiscal year 2005.--In fiscal year
2005--
``(i) amounts made available to any urbanized area under
clause (i) or (ii) of subparagraph (A) shall be not more than
50 percent of the amount apportioned in fiscal year 2002 to
the urbanized area with a population of less than 200,000, as
determined in the 1990 decennial census of population;
``(ii) amounts made available to any urbanized area under
subparagraph (A)(iii) shall be not more than 50 percent of
the amount apportioned to the urbanized area under this
section for fiscal year 2003; and
``(iii) each portion of any area not designated as an
urbanized area, as determined by the 1990 decennial census,
and eligible to receive funds under subparagraph (A)(iv),
shall receive an amount of funds to carry out this section
that is not less 50 percent of the

[[Page S871]]

amount the portion of the area received under section 5311
for fiscal year 2002.
``(D) Maximum amounts in fiscal year 2006.--In fiscal year
2006--
``(i) amounts made available to any urbanized area under
clause (i) or (ii) of subparagraph (A) shall be not more than
25 percent of the amount apportioned in fiscal year 2002 to
the urbanized area with a population of less than 200,000, as
determined in the 1990 decennial census of population;
``(ii) amounts made available to any urbanized area under
subparagraph (A)(iii) shall be not more than 25 percent of
the amount apportioned to the urbanized area under this
section for fiscal year 2003; and
``(iii) each portion of any area not designated as an
urbanized area, as determined by the 1990 decennial census,
and eligible to receive funds under subparagraph (A)(iv),
shall receive an amount of funds to carry out this section
that is not less than 25 percent of the amount the portion of
the area received under section 5311 in fiscal year 2002.'';
and
(3) by striking paragraph (4).
(d) Public Participation Requirements.--Section 5307(c)(5)
is amended by striking ``section 5336'' and inserting
``sections 5336 and 5337''.
(e) Grant Recipient Requirements.--Section 5307(d)(1) is
amended--
(1) in subparagraph (A), by inserting ``, including safety
and security aspects of the program'' after ``program'';
(2) in subparagraph (E), by striking ``section'' and all
that follows and inserting ``section, the recipient will
comply with sections 5323 and 5325;'';
(3) in subparagraph (H), by striking ``sections 5301(a) and
(d), 5303-5306, and 5310(a)-(d) of this title'' and inserting
``subsections (a) and (d) of section 5301 and sections 5303
through 5306'';
(4) in subparagraph (I) by striking ``and'' at the end;
(5) in subparagraph (J), by striking the period at the end
and inserting ``; and''; and
(6) by adding at the end the following:
``(K) if located in an urbanized area with a population of
at least 200,000, will expend not less than 1 percent of the
amount the recipient receives each fiscal year under this
section for transit enhancement activities described in
section 5302(a)(15).''.
(f) Government's Share of Costs.--Section 5307(e) is
amended--
(1) by striking the first sentence and inserting the
following:
``(1) Capital projects.--A grant for a capital project
under this section shall cover 80 percent of the net project
cost.'';
(2) by striking ``A grant for operating expenses'' and
inserting the following:
``(2) Operating expenses.--A grant for operating
expenses'';
(3) by striking the fourth sentence and inserting the
following:
``(3) Remaining costs.--The remainder of the net project
cost shall be provided in cash from non-Federal sources or
revenues derived from the sale of advertising and concessions
and amounts received under a service agreement with a State
or local social service agency or a private social service
organization.''; and
(4) by adding at the end the following: ``The prohibitions
on the use of funds for matching requirements under section
403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C.
603(a)(5)(C)(vii)) shall not apply to the remainder.''.
(g) Undertaking Projects in Advance.--Section 5307(g) is
amended by striking paragraph (4).
(h) Relationship to Other Laws.--Section 5307(k), as
redesignated, is amended to read as follows:
``(k) Relationship to Other Laws.--
``(1) Applicable provisions.--Sections 5301, 5302, 5303,
5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329,
5330, 5331, 5332, 5333 and 5335 apply to this section and to
any grant made under this section.
``(2) Inapplicable provisions.--
``(A) In general.--Except as provided under this section,
no other provision of this chapter applies to this section or
to a grant made under this section.
``(B) Title 5.--The provision of assistance under this
chapter shall not be construed as bringing within the
application of chapter 15 of title 5, any nonsupervisory
employee of a public transportation system (or any other
agency or entity performing related functions) to which such
chapter is otherwise inapplicable.''.

SEC. 3010. PLANNING PROGRAMS.

(a) In General.--Section 5308 is amended to read as
follows:

``Sec. 5308. Planning programs

``(a) Grants Authorized.--Under criteria established by the
Secretary, the Secretary may award grants to States,
authorities of the States, metropolitan planning
organizations, and local governmental authorities, make
agreements with other departments, agencies, or
instrumentalities of the Government, or enter into contracts
with private nonprofit or for-profit entities to--
``(1) develop transportation plans and programs;
``(2) plan, engineer, design, and evaluate a public
transportation project; or
``(3) conduct technical studies relating to public
transportation, including--
``(A) studies related to management, planning, operations,
capital requirements, and economic feasibility;
``(B) evaluations of previously financed projects;
``(C) peer reviews and exchanges of technical data,
information, assistance, and related activities in support of
planning and environmental analyses among metropolitan
planning organizations and other transportation planners; and
``(D) other similar and related activities preliminary to,
and in preparation for, constructing, acquiring, or improving
the operation of facilities and equipment.
``(b) Purpose.--To the extent practicable, the Secretary
shall ensure that amounts appropriated pursuant to section
5338 to carry out this section and sections 5303, 5304, and
5306 are used to support balanced and comprehensive
transportation planning that considers the relationships
among land use and all transportation modes, without regard
to the programmatic source of the planning amounts.
``(c) Metropolitan Planning Program.--
``(1) Allocations to States.--
``(A) In general.--The Secretary shall allocate 80 percent
of the amount made available under subsection (g)(3)(A) to
States to carry out sections 5303 and 5306 in a ratio equal
to the population in urbanized areas in each State, divided
by the total population in urbanized areas in all States, as
shown by the latest available decennial census of population.
``(B) Minimum allocation.--Each State shall receive not
less than 0.5 percent of the total amount allocated under
this paragraph.
``(2) Availability of funds.--A State receiving an
allocation under paragraph (1) shall promptly distribute such
funds to metropolitan planning organizations in the State
under a formula--
``(A) developed by the State in cooperation with the
metropolitan planning organizations;
``(B) approved by the Secretary of Transportation;
``(C) that considers population in urbanized areas; and
``(D) that provides an appropriate distribution for
urbanized areas to carry out the cooperative processes
described in this section.
``(3) Supplemental allocations.--
``(A) In general.--The Secretary shall allocate 20 percent
of the amount made available under subsection (g)(3)(A) to
States to supplement allocations made under paragraph (1) for
metropolitan planning organizations.
``(B) Allocation formula.--Amounts under this paragraph
shall be allocated under a formula that reflects the
additional cost of carrying out planning, programming, and
project selection responsibilities in complex metropolitan
planning areas under sections 5303, 5304, and 5306.
``(d) State Planning and Research Program.--
``(1) In general.--The Secretary shall allocate amounts
made available pursuant to subsection (g)(3)(B) to States for
grants and contracts to carry out sections 5304, 5306, 5315,
and 5322 so that each State receives an amount equal to the
ratio of the population in urbanized areas in that State,
divided by the total population in urbanized areas in all
States, as shown by the latest available decennial census.
``(2) Minimum allocation.--Each State shall receive not
less than 0.5 percent of the amount allocated under this
subsection.
``(3) Reallocation.--A State may authorize part of the
amount made available under this subsection to be used to
supplement amounts available under subsection (c).
``(e) Planning Capacity Building Program.--
``(1) Establishment.--The Secretary shall establish a
Planning Capacity Building Program (referred to in this
subsection as the ``Program'') to support and fund innovative
practices and enhancements in transportation planning.
``(2) Purpose.--The purpose of the Program shall be to
promote activities that support and strengthen the planning
processes required under this section and sections 5303 and
5304.
``(3) Administration.--The Program shall be administered by
the Federal Transit Administration in cooperation with the
Federal Highway Administration.
``(4) Use of funds.--
``(A) In general.--Appropriations authorized under
subsection (g)(1) to carry out this subsection may be used--
``(i) to provide incentive grants to States, metropolitan
planning organizations, and public transportation operators;
and
``(ii) to conduct research, disseminate information, and
provide technical assistance.
``(B) Grants, contracts, cooperative agreements.--In
carrying out the activities described in subparagraph (A),
the Secretary may--
``(i) expend appropriated funds directly; or
``(ii) award grants to, or enter into contracts,
cooperative agreements, and other transactions with, a
Federal agency, State agency, local governmental authority,
association, nonprofit or for-profit entity, or institution
of higher education.
``(f) Government's Share of Costs.--Amounts made available
to carry out subsections (c), (d), and (e) may not exceed 80
percent of the costs of the activity unless the Secretary of
Transportation determines that it is in the interest of the
Government not to require State or local matching funds.
``(g) Allocation of Funds.--Of the amounts made available
under section 5338(b)(2)(B) for fiscal year 2005 and each
fiscal year thereafter to carry out this section--

[[Page S872]]

``(1) $5,000,000 shall be allocated for the Planning
Capacity Building Program established under subsection (e);
``(2) $20,000,000 shall be allocated for grants under
subsection (a)(2) for alternatives analyses required by
section 5309(e)(2)(A); and
``(3) of the remaining amount--
``(A) 82.72 percent shall be allocated for the metropolitan
planning program described in subsection (d); and
``(B) 17.28 percent shall be allocated to carry out
subsection (b).
``(h) Reallocations.--Any amount allocated under this
section that has not been used 3 years after the end of the
fiscal year in which the amount was allocated shall be
reallocated among the States.''.
(b) Conforming Amendment.--The item relating to section
5308 in the table of sections for chapter 53 is amended to
read as follows:

``5308. Planning programs.''.

SEC. 3011. CAPITAL INVESTMENT PROGRAM.

(a) Section Heading.--The section heading of section 5309
is amended to read as follows:

``Sec. 5309. Capital investment grants''.

(b) General Authority.--Section 5309(a) is amended--
(1) in paragraph (1)--
(A) by striking ``(1) The Secretary of Transportation may
make grants and loans'' and inserting the following:
``(1) Grants authorized.--The Secretary may award grants'';
(B) in subparagraph (A), by striking ``alternatives
analysis related to the development of systems,'';
(C) by striking subparagraphs (B), (C), (D), and (G);
(D) by redesignating subparagraphs (E), (F), and (H) as
subparagraphs (B), (C), and (D), respectively;
(E) in subparagraph (C), as redesignated, by striking the
semicolon at the end and inserting ``, including programs of
bus and bus-related projects for assistance to subrecipients
which are public agencies, private companies engaged in
public transportation, or private nonprofit organizations;
and''; and
(F) in subparagraph (D), as redesignated--
(i) by striking ``to support fixed guideway systems''; and
(ii) by striking ``dedicated bus and high occupancy
vehicle'';
(2) by amending paragraph (2) to read as follows:
``(2) Grantee requirements.--
``(A) Grantee in urbanized area.--The Secretary shall
require that any grants awarded under this section to a
recipient located in an urbanized area shall be subject to
all terms, conditions, requirements, and provisions that the
Secretary determines to be necessary or appropriate for the
purposes of this section, including requirements for the
disposition of net increases in the value of real property
resulting from the project assisted under this section.
``(B) Grantee not in urbanized area.--The Secretary shall
require that any grants awarded under this section to a
recipient not located in an urbanized area shall be subject
to the same terms, conditions, requirements, and provisions
as a recipient or subrecipient of assistance under section
5311.
``(C) Subrecipient.--The Secretary shall require that any
private, nonprofit organization that is a subrecipient of a
grant awarded under this section shall be subject to the same
terms, conditions, requirements, and provisions as a
subrecipient of assistance under section 5310.''; and
(3) by adding at the end the following:
``(3) Certification.--An applicant that has submitted the
certifications required under subparagraphs (A), (B), (C),
and (H) of section 5307(d)(1) shall be deemed to have
provided sufficient information upon which the Secretary may
make the findings required under this subsection.''.
(c) Defined Term.--Section 5309(b) is amended to read as
follows:
``(b) Defined Term.--As used in this section, the term
`alternatives analysis' means a study conducted as part of
the transportation planning process required under sections
5303 and 5304, which includes--
``(1) an assessment of a wide range of public
transportation alternatives designed to address a
transportation problem in a corridor or subarea;
``(2) sufficient information to enable the Secretary to
make the findings of project justification and local
financial commitment required under this section;
``(3) the selection of a locally preferred alternative; and
``(4) the adoption of the locally preferred alternative as
part of the long-range transportation plan required under
section 5303.''.
(d) Grant Requirements.--Section 5309(d) is amended to read
as follows:
``(d) Grant Requirements.--The Secretary may not approve a
grant for a project under this section unless the Secretary
determines that--
``(1) the project is part of an approved transportation
plan and program of projects required under sections 5303,
5304, and 5306; and
``(2) the applicant has, or will have--
``(A) the legal, financial, and technical capacity to carry
out the project, including safety and security aspects of the
project;
``(B) satisfactory continuing control over the use of the
equipment or facilities; and
``(C) the capability and willingness to maintain the
equipment or facilities.''.
(e) Major Capital Investment Projects of $75,000,000 or
More.--Section 5309(e) is amended to read as follows:
``(e) Major Capital Investment Projects of $75,000,000 or
More.--
``(1) Full funding grant agreement.--The Secretary shall
enter into a full funding grant agreement, based on the
evaluations and ratings required under this subsection, with
each grantee receiving not less than $75,000,000 under this
subsection for a new fixed guideway or corridor improvement
capital project that--
``(A) is authorized for final design and construction; and
``(B) has been rated as medium, medium-high, or high, in
accordance with paragraph (5)(B).
``(2) Determinations.--The Secretary may not award a grant
under this subsection for a new fixed guideway or corridor
improvement capital project unless the Secretary determines
that the proposed project is--
``(A) based on the results of an alternatives analysis and
preliminary engineering;
``(B) justified based on a comprehensive review of its
mobility improvements, environmental benefits, cost-
effectiveness, operating efficiencies, economic development
effects, and public transportation supportive land use
patterns and policies; and
``(C) supported by an acceptable degree of local financial
commitment, including evidence of stable and dependable
financing sources to construct the project, and maintain and
operate the entire public transportation system, while
ensuring that the extent and quality of existing public
transportation services are not degraded.
``(3) Evaluation of project justification.--In making the
determinations under paragraph (2)(B) for a major capital
investment grant, the Secretary shall analyze, evaluate, and
consider--
``(A) the results of the alternatives analysis and
preliminary engineering for the proposed project;
``(B) the reliability of the forecasts of costs and
utilization made by the recipient and the contractors to the
recipient;
``(C) the direct and indirect costs of relevant
alternatives;
``(D) factors such as--
``(i) congestion relief;
``(ii) improved mobility;
``(iii) air pollution;
``(iv) noise pollution;
``(v) energy consumption; and
``(vi) all associated ancillary and mitigation costs
necessary to carry out each alternative analyzed;
``(E) reductions in local infrastructure costs achieved
through compact land use development;
``(F) the cost of suburban sprawl;
``(G) the degree to which the project increases the
mobility of the public transportation dependent population or
promotes economic development;
``(H) population density and current transit ridership in
the transportation corridor;
``(I) the technical capability of the grant recipient to
construct the project;
``(J) any adjustment to the project justification necessary
to reflect differences in local land, construction, and
operating costs; and
``(K) other factors that the Secretary determines to be
appropriate to carry out this chapter.
``(4) Evaluation of local financial commitment.--
``(A) In general.--In evaluating a project under paragraph
(2)(C), the Secretary shall require that--
``(i) the proposed project plan provides for the
availability of contingency amounts that the Secretary
determines to be reasonable to cover unanticipated cost
increases;
``(ii) each proposed local source of capital and operating
financing is stable, reliable, and available within the
proposed project timetable; and
``(iii) local resources are available to recapitalize and
operate the overall proposed public transportation system,
including essential feeder bus and other services necessary
to achieve the projected ridership levels, while ensuring
that the extent and quality of existing public transportation
services are not degraded.
``(B) Evaluation criteria.--In assessing the stability,
reliability, and availability of proposed sources of local
financing under paragraph (2)(C), the Secretary shall
consider--
``(i) the reliability of the forecasts of costs and
utilization made by the recipient and the contractors to the
recipient;
``(ii) existing grant commitments;
``(iii) the degree to which financing sources are dedicated
to the proposed purposes;
``(iv) any debt obligation that exists, or is proposed by
the recipient, for the proposed project or other public
transportation purpose; and
``(v) the extent to which the project has a local financial
commitment that exceeds the required non-Federal share of the
cost of the project, provided that if the Secretary gives
priority to financing projects that include more than the
non-Federal share required under subsection (h), the
Secretary shall give equal consideration to differences in
the fiscal capacity of State and local governments.
``(5) Project advancement and ratings.--
``(A) Project advancement.--A proposed project under this
subsection shall not advance from alternatives analysis to
preliminary engineering or from preliminary engineering to
final design and construction unless the Secretary determines
that the project meets the requirements of this section and
there is a reasonable likelihood that

[[Page S873]]

the project will continue to meet such requirements.
``(B) Ratings.--In making a determination under
subparagraph (A), the Secretary shall evaluate and rate the
project on a 5-point scale (high, medium-high, medium,
medium-low, or low) based on the results of the alternatives
analysis, the project justification criteria, and the degree
of local financial commitment, as required under this
subsection. In rating the projects, the Secretary shall
provide, in addition to the overall project rating,
individual ratings for each of the criteria established by
regulation.
``(6) Applicability.--This subsection shall not apply to
projects for which the Secretary has issued a letter of
intent or entered into a full funding grant agreement before
the date of enactment of the Federal Public Transportation
Act of 2004.
``(7) Rulemaking.--Not later than 240 days after the date
of enactment of the Federal Public Transportation Act of
2004, the Secretary shall issue regulations on the manner by
which the Secretary shall evaluate and rate projects based on
the results of alternatives analysis, project justification,
and local financial commitment, in accordance with this
subsection.
``(8) Policy guidance.--
``(A) Publication.--The Secretary shall publish policy
guidance regarding the new starts project review and
evaluation process--
``(i) not later than 120 days after the date of enactment
of the Federal Public Transportation Act of 2004; and
``(ii) each time significant changes are made by the
Secretary to the new starts project review and evaluation
process and criteria, but not less frequently than once every
2 years.
``(B) Public comment and response.--The Secretary shall--
``(i) invite public comment to the policy guidance
published under subparagraph (A); and
``(ii) publish a response to the comments received under
clause (i).''.
(f) Major Capital Investment Projects of Less Than
$75,000,000.-- Section 5309(f) is amended to read as follows:
``(f) Major Capital Investment Projects of Less Than
$75,000,000.--
``(1) Project construction grant agreement.--
``(A) In general.--The Secretary shall enter into a project
construction grant agreement, based on evaluations and
ratings required under this subsection, with each grantee
receiving less than $75,000,000 under this subsection for a
new fixed guideway or corridor improvement capital project
that--
``(i) is authorized by law; and
``(ii) has been rated as medium, medium-high, or high, in
accordance with paragraph (3)(B).
``(B) Contents.--
``(i) In general.--An agreement under this paragraph shall
specify--

``(I) the scope of the project to be constructed;
``(II) the estimated net cost of the project;
``(III) the schedule under which the project shall be
constructed;
``(IV) the maximum amount of funding to be obtained under
this subsection;
``(V) the proposed schedule for obligation of future
Federal grants; and
``(VI) the sources of non-Federal funding.

``(ii) Additional funding.--The agreement may include a
commitment on the part of the Secretary to provide funding
for the project in future fiscal years.
``(C) Full funding grant agreement.--An agreement under
this paragraph shall be considered a full funding grant
agreement for the purposes of subsection (g).
``(2) Selection process.--
``(A) Selection criteria.--The Secretary may not award a
grant under this subsection for a proposed project unless the
Secretary determines that the project is--
``(i) based on the results of planning and alternatives
analysis;
``(ii) justified based on a review of its public
transportation supportive land use policies, cost
effectiveness, and effect on local economic development; and
``(iii) supported by an acceptable degree of local
financial commitment.
``(B) Planning and alternatives.--In evaluating a project
under subparagraph (A)(i), the Secretary shall analyze and
consider the results of planning and alternatives analysis
for the project.
``(C) Project justification.--In making the determinations
under subparagraph (A)(ii), the Secretary shall--
``(i) determine the degree to which local land use policies
are supportive of the public transportation project and the
degree to which the project is likely to achieve local
developmental goals;
``(ii) determine the cost effectiveness of the project at
the time of the initiation of revenue service;
``(iii) determine the degree to which the project will have
a positive effect on local economic development;
``(iv) consider the reliability of the forecasts of costs
and ridership associated with the project; and
``(v) consider other factors that the Secretary determines
to be appropriate to carry out this subsection.
``(D) Local financial commitment.--For purposes of
subparagraph (A)(iii), the Secretary shall require that each
proposed local source of capital and operating financing is
stable, reliable, and available within the proposed project
timetable.
``(3) Advancement of project to development and
construction.--
``(A) In general.--A proposed project under this subsection
may not advance from the planning and alternatives analysis
stage to project development and construction unless--
``(i) the Secretary finds that the project meets the
requirements of this subsection and there is a reasonable
likelihood that the project will continue to meet such
requirements; and
``(ii) the metropolitan planning organization has adopted
the locally preferred alternative for the project into the
long-range transportation plan.
``(B) Evaluation.--In making the findings under
subparagraph (A), the Secretary shall evaluate and rate the
project as high, medium-high, medium, medium-low, or low,
based on the results of the analysis of the project
justification criteria and the degree of local financial
commitment, as required under this subsection.
``(4) Impact report.--
``(A) In general.--Not later than 240 days after the date
of enactment of the Federal Public Transportation Act of
2004, the Federal Transit Administration shall submit a
report on the methodology to be used in evaluating the land
use and economic development impacts of non-fixed guideway or
partial fixed guideway projects to--
``(i) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
``(ii) the Committee on Transportation and Infrastructure
of the House of Representatives.
``(B) Contents.--The report submitted under subparagraph
(A) shall address any qualitative and quantitative
differences between fixed guideway and non-fixed guideway
projects with respect to land use and economic development
impacts.
``(5) Regulations.--Not later than 120 days after the date
of enactment of the Federal Public Transportation Act of
2004, the Secretary shall issue regulations establishing an
evaluation and rating process for proposed projects under
this subsection that is based on the results of project
justification and local financial commitment, as required
under this subsection.''.
(g) Full Funding Grant Agreements.--Section 5309(g)(2) is
amended by adding at the end the following:
``(C) Before and after study.--
``(i) In general.--Each full funding grant agreement shall
require the applicant to conduct a study that--
``(I) describes and analyzes the impacts of the new start
project on transit services and transit ridership;
``(II) evaluates the consistency of predicted and actual
project characteristics and performance; and
``(III) identifies sources of differences between predicted
and actual outcomes.
``(ii) Information collection and analysis plan.--
``(I) Submission of plan.--Applicants seeking a full
funding grant agreement shall submit a complete plan for the
collection and analysis of information to identify the
impacts of the new start project and the accuracy of the
forecasts prepared during the development of the project.
Preparation of this plan shall be included in the full
funding grant agreement as an eligible activity.
``(II) Contents of plan.--The plan submitted under
subclause (I) shall provide for--
``(aa) the collection of data on the current transit system
regarding transit service levels and ridership patterns,
including origins and destinations, access modes, trip
purposes, and rider characteristics;
``(bb) documentation of the predicted scope, service
levels, capital costs, operating costs, and ridership of the
project;
``(cc) collection of data on the transit system 2 years
after the opening of the new start project, including
analogous information on transit service levels and ridership
patterns and information on the as-built scope and capital
costs of the new start project; and
``(dd) analysis of the consistency of predicted project
characteristics with the after data.
``(D) Collection of data on current system.--To be eligible
for a full funding grant agreement, recipients shall have
collected data on the current system, according to the plan
required, before the beginning of construction of the
proposed new start project. Collection of this data shall be
included in the full funding grant agreement as an eligible
activity.
``(E) Public private partnership pilot program.--
``(i) Authorization.--The Secretary may establish a pilot
program to demonstrate the advantages of public-private
partnerships for certain fixed guideway systems development
projects.
``(ii) Identification of qualified projects.--The Secretary
shall identify qualified public-private partnership projects
as permitted by applicable State and local enabling laws and
work with project sponsors to enhance project delivery and
reduce overall costs.''.
(h) Federal Share of Net Project Cost.--Section 5309(h) is
amended to read as follows:
``(h) Federal Share of Adjusted Net Project Cost.--
``(1) In general.--The Secretary shall estimate the net
project cost based on engineering studies, studies of
economic feasibility, and information on the expected use of
equipment or facilities.

[[Page S874]]

``(2) Adjustment for completion under budget.--The
Secretary may adjust the final net project cost of a major
capital investment project evaluated under subsections (e)
and (f) to include the cost of eligible activities not
included in the originally defined project if the Secretary
determines that the originally defined project has been
completed at a cost that is significantly below the original
estimate.
``(3) Maximum federal share.--
``(A) In general.--A grant for the project shall be for 80
percent of the net project cost, or the net project cost as
adjusted under paragraph (2), unless the grant recipient
requests a lower grant percentage.
``(B) Exceptions.--The Secretary may provide a higher grant
percentage than requested by the grant recipient if--
``(i) the Secretary determines that the net project cost of
the project is not more than 10 percent higher than the net
project cost estimated at the time the project was approved
for advancement into preliminary engineering; and
``(ii) the ridership estimated for the project is not less
than 90 percent of the ridership estimated for the project at
the time the project was approved for advancement into
preliminary engineering.
``(4) Other sources.--The costs not funded by a grant under
this section may be funded from--
``(A) an undistributed cash surplus;
``(B) a replacement or depreciation cash fund or reserve;
or
``(C) new capital, including any Federal funds that are
eligible to be expended for transportation.
``(5) Planned extension to fixed guideway system.--In
addition to amounts allowed under paragraph (1), a planned
extension to a fixed guideway system may include the cost of
rolling stock previously purchased if the Secretary
determines that only non-Federal funds were used and that the
purchase was made for use on the extension. A refund or
reduction of the costs not funded by a grant under this
section may be made only if a refund of a proportional amount
of the grant is made at the same time.
``(6) Exception.--The prohibitions on the use of funds for
matching requirements under section 403(a)(5)(C)(vii) of the
Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not
apply to amounts allowed under paragraph (4).''.
(i) Loan Provisions and Fiscal Capacity Considerations.--
Section 5309 is amended--
(1) by striking subsections (i), (j), (k), and (l);
(2) by redesignating subsections (m) and (n) as subsections
(i) and (j), respectively;
(3) by striking subsection (o) (as added by section 3009(i)
of the Federal Transit Act of 1998); and
(4) by redesignating subsections (o) and (p) as subsections
(k) and (l), respectively.
(j) Allocating Amounts.--Section 5309(i), as redesignated,
is amended to read as follows:
``(i) Allocating Amounts.--
``(1) Fiscal year 2004.--Of the amounts made available or
appropriated for fiscal year 2004 under section 5338(a)(3)--
``(A) $1,315,983,615 shall be allocated for projects of not
less than $75,000,000 for major capital projects for new
fixed guideway systems and extensions of such systems under
subsection (e) and projects for new fixed guideway or
corridor improvement capital projects under subsection (f);
``(B) $1,199,387,615 shall be allocated for capital
projects for fixed guideway modernization; and
``(C) $603,617,520 shall be allocated for capital projects
for buses and bus-related equipment and facilities.
``(2) In general.--Of the amounts made available or
appropriated for fiscal year 2005 and each fiscal year
thereafter for grants under this section pursuant to
subsections (b)(4) and (c) of section 5338--
``(A) the amounts appropriated under section 5338(c) shall
be allocated for major capital projects for--
``(i) new fixed guideway systems and extensions of not less
than $75,000,000, in accordance with subsection (e); and
``(ii) projects for new fixed guideway or corridor
improvement capital projects, in accordance with subsection
(f); and
``(B) the amounts made available under section 5338(b)(4)
shall be allocated for capital projects for buses and bus-
related equipment and facilities.
``(3) Fixed guideway modernization.--The amounts made
available for fixed guideway modernization under section
5338(b)(2)(K) for fiscal year 2005 and each fiscal year
thereafter shall be allocated in accordance with section
5337.
``(4) Preliminary engineering.--Not more that 8 percent of
the allocation described in paragraphs (1)(A) and (2)(A) may
be expended on preliminary engineering.
``(5) Funding for ferry boats.--Of the amounts described in
paragraphs (1)(A) and (2)(A), $10,400,000 shall be available
in each of the fiscal years 2004 through 2009 for capital
projects in Alaska and Hawaii for new fixed guideway systems
and extension projects utilizing ferry boats, ferry boat
terminals, or approaches to ferry boat terminals.
``(6) Bus and bus facility grants.--
``(A) Considerations.--In making grants under paragraphs
(1)(C) and (2)(B), the Secretary shall consider the age and
condition of buses, bus fleets, related equipment, and bus-
related facilities.
``(B) Projects not in urbanized areas.--Of the amounts made
available under paragraphs (1)(C) and (2)(B), not less than
5.5 percent shall be available in each fiscal year for
projects that are not in urbanized areas.
``(C) Intermodal terminals.--Of the amounts made available
under paragraphs (1)(C) and (2)(B), not less than $75,000,000
shall be available in each fiscal year for intermodal
terminal projects, including the intercity bus portion of
such projects.''.
(k) Reports.--Section 5309 is amended by inserting at the
end the following:
``(m) Reports.--
``(1) Annual report on funding recommendations.--
``(A) In general.--Not later than the first Monday of
February of each year, the Secretary shall submit a report on
funding recommendations to--
``(i) the Committee on Transportation and Infrastructure of
the House of Representatives;
``(ii) the Committee on Banking, Housing, and Urban Affairs
of the Senate;
``(iii) the Subcommittee on Transportation of the Committee
on Appropriations of the House of Representatives; and
``(iv) the Subcommittee on Transportation of the Committee
on Appropriations of the Senate.
``(B) Contents.--The report submitted under subparagraph
(A) shall contain--
``(i) a proposal on the allocation of amounts to finance
grants for capital investment projects among grant
applicants;
``(ii) a recommendation of projects to be funded based on--

``(I) the evaluations and ratings determined under
subsection (e) and (f); and
``(II) existing commitments and anticipated funding levels
for the subsequent 3 fiscal years; and

``(iii) detailed ratings and evaluations on each project
recommended for funding.
``(2) Triennial reports on project ratings.--
``(A) In general.--Not later than the first Monday of
February, the first Monday of June, and the first Monday of
October of each year, the Secretary shall submit a report on
project ratings to--
``(i) the Committee on Transportation and Infrastructure of
the House of Representatives;
``(ii) the Committee on Banking, Housing, and Urban Affairs
of the Senate;
``(iii) the Subcommittee on Transportation of the Committee
on Appropriations of the House of Representatives; and
``(iv) the Subcommittee on Transportation of the Committee
on Appropriations of the Senate.
``(B) Contents.--Each report submitted under subparagraph
(A) shall contain--
``(i) a summary of the ratings of all capital investment
projects for which funding was requested under this section;
``(ii) detailed ratings and evaluations on the project of
each applicant that had significant changes to the finance or
project proposal or has completed alternatives analysis or
preliminary engineering since the date of the latest report;
and
``(iii) all relevant information supporting the evaluation
and rating of each updated project, including a summary of
the financial plan of each updated project.
``(3) Before and after study reports.--Not later than the
first Monday of August of each year, the Secretary shall
submit a report containing a summary of the results of the
studies conducted under subsection (g)(2) to--
``(A) the Committee on Transportation and Infrastructure of
the House of Representatives;
``(B) the Committee on Banking, Housing, and Urban Affairs
of the Senate;
``(C) the Subcommittee on Transportation of the Committee
on Appropriations of the House of Representatives; and
``(D) the Subcommittee on Transportation of the Committee
on Appropriations of the Senate.
``(4) Contractor performance assessment report.--
``(A) In general.--Not later than 180 days after the
enactment of the Federal Public Transportation Act of 2004,
and each year thereafter, the Secretary shall submit a report
analyzing the consistency and accuracy of cost and ridership
estimates made by each contractor to public transportation
agencies developing major investment projects to the
committees and subcommittees listed under paragraph (3).
``(B) Contents.--The report submitted under subparagraph
(A) shall compare the cost and ridership estimates made at
the time projects are approved for entrance into preliminary
engineering with--
``(i) estimates made at the time projects are approved for
entrance into final design;
``(ii) costs and ridership when the project commences
revenue operation; and
``(iii) costs and ridership when the project has been in
operation for 2 years.
``(5) Annual general accounting office review.--
``(A) Review.--The Comptroller General of the United States
shall conduct an annual review of the processes and
procedures for evaluating and rating projects and
recommending projects and the Secretary's implementation of
such processes and procedures.
``(B) Report.--Not later than 90 days after the submission
of each report required under paragraph (1), the Comptroller
General shall submit a report to Congress that summarizes the
results of the review conducted under subparagraph (A).

[[Page S875]]

``(6) Contractor performance incentive report.--Not later
than 180 days after the enactment of the Federal Public
Transportation Act of 2004, the Secretary shall submit a
report to the committees and subcommittees listed under
paragraph (3) on the suitability of allowing contractors to
public transportation agencies that undertake major capital
investments under this section to receive performance
incentive awards if a project is completed for less than the
original estimated cost.''.

SEC. 3012. NEW FREEDOM FOR ELDERLY PERSONS AND PERSONS WITH
DISABILITIES.

(a) In General.--Section 5310 is amended to read as
follows:

``Sec. 5310. New freedom for elderly persons and persons with
disabilities

``(a) General Authority.--
``(1) Authorization.--The Secretary may award grants to a
State for capital public transportation projects that are
planned, designed, and carried out to meet the needs of
elderly individuals and individuals with disabilities, with
priority given to the needs of these individuals to access
necessary health care.
``(2) Acquisition of public transportation services.--A
capital public transportation project under this section may
include acquiring public transportation services as an
eligible capital expense.
``(3) Administrative costs.--A State may use not more than
15 percent of the amounts received under this section to
administer, plan, and provide technical assistance for a
project funded under this section.
``(b) Allotments Among States.--
``(1) In general.--From amounts made available or
appropriated in each fiscal year under subsections
(a)(1)(C)(iv) and (b)(2)(D) of section 5338 for grants under
this section, the Secretary shall allot amounts to each State
under a formula based on the number of elderly individuals
and individuals with disabilities in each State.
``(2) Transfer of funds.--Any funds allotted to a State
under paragraph (1) may be transferred by the State to the
apportionments made under sections 5311(c) and 5336 if such
funds are only used for eligible projects selected under this
section.
``(3) Reallocation of funds.--A State receiving a grant
under this section may reallocate such grant funds to--
``(A) a private nonprofit organization;
``(B) a public transportation agency or authority; or
``(C) a governmental authority that--
``(i) has been approved by the State to coordinate services
for elderly individuals and individuals with disabilities;
``(ii) certifies that nonprofit organizations are not
readily available in the area that can provide the services
described under this subsection; or
``(iii) will provide services to persons with disabilities
that exceed those services required by the Americans with
Disabilities Act.
``(c) Federal Share.--
``(1) Maximum.--
``(A) In general.--A grant for a capital project under this
section may not exceed 80 percent of the net capital costs of
the project, as determined by the Secretary.
``(B) Exception.--A State described in section 120(d) of
title 23 shall receive an increased Federal share in
accordance with the formula under that section.
``(2) Remaining costs.--The costs of a capital project
under this section that are not funded through a grant under
this section--
``(A) may be funded from an undistributed cash surplus, a
replacement or depreciation cash fund or reserve, a service
agreement with a State or local social service agency or a
private social service organization, or new capital; and
``(B) may be derived from amounts appropriated to or made
available to any Federal agency (other than the Department of
Transportation, except for Federal Lands Highway funds) that
are eligible to be expended for transportation.
``(3) Exception.--For purposes of paragraph (2), the
prohibitions on the use of funds for matching requirements
under section 403(a)(5)(C)(vii) of the Social Security Act
(42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or
State funds to be used for transportation purposes.
``(d) Grant Requirements.--
``(1) In general.--A grant recipient under this section
shall be subject to the requirements of a grant recipient
under section 5307 to the extent the Secretary determines to
be appropriate.
``(2) Certification requirements.--
``(A) Fund transfers.--A grant recipient under this section
that transfers funds to a project funded under section 5336
in accordance with subsection (b)(2) shall certify that the
project for which the funds are requested has been
coordinated with private nonprofit providers of services
under this section.
``(B) Project selection and plan development.--Each grant
recipient under this section shall certify that--
``(i) the projects selected were derived from a locally
developed, coordinated public transit-human services
transportation plan; and
``(ii) the plan was developed through a process that
included representatives of public, private, and nonprofit
transportation and human services providers and participation
by the public.
``(C) Allocations to subrecipients.--Each grant recipient
under this section shall certify that allocations of the
grant to subrecipients, if any, are distributed on a fair and
equitable basis.
``(e) State Program of Projects.--
``(1) Submission to secretary.--Each State shall annually
submit a program of transportation projects to the Secretary
for approval with an assurance that the program provides for
maximum feasible coordination between transportation services
funded under this section and transportation services
assisted by other Federal sources.
``(2) Use of funds.--Each State may use amounts made
available to carry out this section to provide transportation
services for elderly individuals and individuals with
disabilities if such services are included in an approved
State program of projects.
``(f) Leasing Vehicles.--Vehicles acquired under this
section may be leased to local governmental authorities to
improve transportation services designed to meet the needs of
elderly individuals and individuals with disabilities.
``(g) Meal Delivery for Homebound Individuals.--Public
transportation service providers receiving assistance under
this section or section 5311(c) may coordinate and assist in
regularly providing meal delivery service for homebound
individuals if the delivery service does not conflict with
providing public transportation service or reduce service to
public transportation passengers.
``(h) Transfers of Facilities and Equipment.--With the
consent of the recipient in possession of a facility or
equipment acquired with a grant under this section, a State
may transfer the facility or equipment to any recipient
eligible to receive assistance under this chapter if the
facility or equipment will continue to be used as required
under this section.
``(i) Fares Not Required.--This section does not require
that elderly individuals and individuals with disabilities be
charged a fare.''.
(b) Conforming Amendment.--The item relating to section
5310 in the table of sections for chapter 53 is amended to
read as follows:

``5310. New freedom for elderly persons and persons with
disabilities.''.

SEC. 3013. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

(a) Definitions.--Section 5311(a) is amended to read as
follows:
``(a) Definitions.--As used in this section, the following
definitions shall apply:
``(1) Recipient.--The term `recipient' means a State that
receives a Federal transit program grant directly from the
Federal Government.
``(2) Subrecipient.--The term `subrecipient' means a State
or local governmental authority, a nonprofit organization, or
a private operator of public transportation service that
receives Federal transit program grant funds indirectly
through a recipient.''.
(b) General Authority.--Section 5311(b) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Grants authorized.--Except as provided under
paragraph (2), the Secretary may award grants under this
section to recipients located in areas other than urbanized
areas for--
``(A) public transportation capital projects;
``(B) operating costs of equipment and facilities for use
in public transportation; and
``(C) the acquisition of public transportation services.'';
(2) by redesignating paragraph (2) as paragraph (3);
(3) by inserting after paragraph (1) the following:
``(2) State program.--
``(A) In general.--A project eligible for a grant under
this section shall be included in a State program for public
transportation service projects, including agreements with
private providers of public transportation service.
``(B) Submission to secretary.--Each State shall annually
submit the program described in subparagraph (A) to the
Secretary.
``(C) Approval.--The Secretary may not approve the program
unless the Secretary determines that--
``(i) the program provides a fair distribution of amounts
in the State;
``(ii) the program provides the maximum feasible
coordination of public transportation service assisted under
this section with transportation service assisted by other
Federal sources; and
``(iii) amounts provided for projects on Indian
reservations are not less than amounts attributable to the
population and land area of Indian reservations in the State,
as published under subsection (c)(4).'';
(4) in paragraph (3), as redesignated--
(A) by striking ``(3) The Secretary of Transportation'' and
inserting the following:
``(3) Rural transportation assistance program.--
``(A) Establishment.--The Secretary'';
(B) by striking ``make'' and inserting ``use not more than
2 percent of the amount made available to carry out this
section to award''; and
(C) by adding at the end the following:
``(B) Data Collection.--
``(i) Report.--Each grantee under this section shall submit
an annual report to the Secretary containing information on
capital investment, operations, and service provided with
funds received under this section, including--

``(I) total annual revenue;
``(II) sources of revenue;

[[Page S876]]

``(III) total annual operating costs;
``(IV) total annual capital costs;
``(V) fleet size and type, and related facilities;
``(VI) revenue vehicle miles; and
``(VII) ridership.''; and

(5) by adding after paragraph (3) the following:
``(4) Of the amount made available to carry out paragraph
(3)--
``(A) not more than 15 percent may be used to carry out
projects of a national scope; and
``(B) any amounts not used under subparagraph (A) shall be
allocated to the States.''.
(c) Apportionments.--Section 5311(c) is amended to read as
follows:
``(c) Apportionments.--
``(1) In general.--Of the amounts made available or
appropriated for each fiscal year pursuant to subsections
(a)(1)(C)(v) and (b)(2)(F) of section 5338--
``(A) 20 percent shall be apportioned to the States in
accordance with paragraph (2); and
``(B) 80 percent shall be apportioned to the States in
accordance with paragraph (3).
``(2) Apportionments based on land area in nonurbanized
areas.--
``(A) In general.--Subject to subparagraph (B), each State
shall receive an amount that is equal to the amount
apportioned under paragraph (1)(A) multiplied by the ratio of
the land area in areas other than urbanized areas in that
State and divided by the land area in all areas other than
urbanized areas in the United States, as shown by the most
recent decennial census of population.
``(B) Maximum apportionment.--No State shall receive more
than 5 percent of the amount apportioned under this
paragraph.
``(3) Apportionments based on population in nonurbanized
areas.--Each State shall receive an amount equal to the
amount apportioned under paragraph (1)(B) multiplied by the
ratio of the population of areas other than urbanized areas
in that State divided by the population of all areas other
than urbanized areas in the United States, as shown by the
most recent decennial census of population.
``(4) Publication of apportionments.--The Secretary shall
publish the total amount apportioned to each State under this
subsection and the amounts attributable to the population and
land area of Indian reservations in each State.''.
(d) Use for Administrative, Planning, and Technical
Assistance.--Section 5311(e) is amended--
(1) by striking ``and Technical Assistance.--(1) The
Secretary of Transportation'' and inserting ``, Planning, and
Technical Assistance.--The Secretary'';
(2) by striking ``to a recipient''; and
(3) by striking paragraph (2).
(e) Intercity Bus Transportation.--Section 5311(f) is
amended--
(1) in paragraph (1)--
(A) by striking ``(1)'' and inserting the following:
``(1) In general.--''; and
(B) by striking ``after September 30, 1993,''; and
(2) in paragraph (2)--
(A) by striking ``A State'' and inserting ``After
consultation with affected intercity bus service providers, a
State''; and
(B) by striking ``of Transportation''.
(f) Federal Share of Costs.--Section 5311(g) is amended to
read as follows:
``(g) Federal Share of Costs.--
``(1) Maximum federal share.--
``(A) Capital projects.--
``(i) In general.--Except as provided under clause (ii), a
grant awarded under this section for any purpose other than
operating assistance may not exceed 80 percent of the net
capital costs of the project, as determined by the Secretary.
``(ii) Exception.--A State described in section 120(d) of
title 23 shall receive a Federal share of the net capital
costs in accordance with the formula under that section.
``(B) Operating assistance.--
``(i) In general.--Except as provided under clause (ii), a
grant made under this section for operating assistance may
not exceed 50 percent of the net operating costs of the
project, as determined by the Secretary.
``(ii) Exception.--A State described in section 120(d) of
title 23 shall receive a Federal share of the net operating
costs equal to 62.5 percent of the Federal share provided for
under subparagraph (A)(ii).
``(2) Other funding sources.--Funds for a project under
this section that are not provided for by a grant under this
section--
``(A) may be provided from--
``(i) an undistributed cash surplus;
``(ii) a replacement or depreciation cash fund or reserve;
``(iii) a service agreement with a State or local social
service agency or a private social service organization; or
``(iv) new capital; and
``(B) may be derived from amounts appropriated to or made
available to a Federal agency (other than the Department of
Transportation, except for Federal Land Highway funds) that
are eligible to be expended for transportation.
``(3) Use of federal grant.--A State carrying out a program
of operating assistance under this section may not limit the
level or extent of use of the Federal grant for the payment
of operating expenses.
``(4) Exception.--For purposes of paragraph (2)(B), the
prohibitions on the use of funds for matching requirements
under section 403(a)(5)(c)(vii) of the Social Security Act
(42 U.S.C. 603(a)(5)(c)(vii)) shall not apply to Federal or
State funds to be used for transportation purposes.''.
(g) Waiver Condition.--Section 5311(j)(1) is amended by
striking ``but the Secretary of Labor may waive the
application of section 5333(b)'' and inserting ``if the
Secretary of Labor utilizes a Special Warranty that provides
a fair and equitable arrangement to protect the interests of
employees''.

SEC. 3014. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND
DEPLOYMENT PROJECTS.

(a) In General.--Section 5312 is amended--
(1) by amending subsection (a) to read as follows:
``(a) Research, Development, and Demonstration Projects.--
``(1) In general.--The Secretary may make grants,
contracts, cooperative agreements, or other transactions
(including agreements with departments, agencies, and
instrumentalities of the United States Government) for
research, development, demonstration or deployment projects,
or evaluation of technology of national significance to
public transportation that the Secretary determines will
improve public transportation service or help public
transportation service meet the total transportation needs at
a minimum cost.
``(2) Information.--The Secretary may request and receive
appropriate information from any source.
``(3) Savings provision.--This subsection does not limit
the authority of the Secretary under any other law.'';
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) and (e) as (b) and
(c), respectively.
(4) in subsection (b), as redesignated--
(A) in paragraph (2), by striking ``other agreements'' and
inserting ``other transactions''; and
(B) in paragraph (5), by striking ``within the Mass Transit
Account of the Highway Trust Fund''; and
(5) in subsection (c), as redesignated--
(A) in paragraph (2), by striking ``public and private''
and inserting ``public or private''; and
(B) in paragraph (3), by striking ``within the Mass Transit
Account of the Highway Trust Fund'' .
(b) Conforming Amendments.--
(1) Section heading.--The heading of section 5312 is
amended to read as follows:

``Sec. 5312. Research, development, demonstration, and
deployment projects''.

(2) Table of sections.--The item relating to section 5312
in the table of sections for chapter 53 is amended to read as
follows:

``5312. Research, development, demonstration, and deployment
projects.''.

SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM.

(a) In General.--Section 5313 is amended--
(1) by striking subsection (b);
(2) in subsection (a)--
(A) in paragraph (1), by striking ``(1) The amounts made
available under paragraphs (1) and (2)C)(ii) of section
5338(c) of this title'' and inserting ``The amounts made
available under subsections (a)(5)(C)(iii) and (b)(2)(G)(i)
of section 5338''; and
(B) in paragraph (2), by striking ``(2)'' and inserting the
following:
``(b) Federal Assistance.--''; and
(3) by amending subsection (c) to read as follows:
``(c) Federal Share.--If there would be a clear and direct
financial benefit to an entity under a grant or contract
financed under this section, the Secretary shall establish a
Federal share consistent with such benefit.''.
(b) Conforming Amendments.--
(1) Section heading.--The heading of section 5313 is
amended to read as follows:

``Sec. 5313. Transit cooperative research program''.

(2) Table of sections.--The item relating to section 5313
in the table of sections for chapter 53 is amended to read as
follows:

``5313. Transit cooperative research program.''.

SEC. 3016. NATIONAL RESEARCH PROGRAMS.

(a) In General.--Section 5314 is amended--
(1) in subsection (a)--
(A) by amending paragraph (1) to read as follows:
``(1) Availability of funds.--The Secretary may use amounts
made available under subsections (a)(5)(C)(iv) and
(b)(2)(G)(iv) of section 5338 for grants, contracts,
cooperative agreements, or other transactions for the
purposes described in sections 5312, 5315, and 5322.'';
(B) in paragraph (2), by striking ``(2) Of'' and inserting
the following:
``(2) ADA compliance.--From'';
(C) by amending paragraph (3) to read as follows:
``(3) Special demonstration initiatives.--The Secretary may
use not more than 25 percent of the amounts made available
under paragraph (1) for special demonstration initiatives,
subject to terms that the Secretary determines to be
consistent with this chapter. For a nonrenewable grant of not
more than $100,000, the Secretary shall provide expedited
procedures for complying with the requirements of this
chapter.''; and
(D) in paragraph (4)--
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraph (C) as subparagraph (B);
and
(2) by amending subsection (b) to read as follows:
``(b) Federal Share.--If there would be a clear and direct
financial benefit to an entity under a grant, contract,
cooperative agreement, or other transaction financed

[[Page S877]]

under subsection (a) or section 5312, 5313, 5315, or 5322,
the Secretary shall establish a Federal share consistent with
such benefit.''.
(b) Conforming Amendments.--
(1) Section heading.--The heading for section 5314 is
amended to read as follows:

``Sec. 5314. National research programs''.

(2) Table of sections.--The item relating to section 5314
in the table of sections for chapter 53 is amended to read as
follows:

``5314. National research programs.''.

SEC. 3017. NATIONAL TRANSIT INSTITUTE.

(a) Section 5315 is amended--
(1) by striking subsections (a) and (b) and inserting the
following:
``(a) Establishment.--The Secretary shall award a grant to
Rutgers University to conduct a national transit institute.
``(b) Duties.--
``(1) In general.--In cooperation with the Federal Transit
Administration, State transportation departments, public
transportation authorities, and national and international
entities, the institute established pursuant to subsection
(a) shall develop and conduct training programs for Federal,
State, and local transportation employees, United States
citizens, and foreign nationals engaged or to be engaged in
Government-aid public transportation work.
``(2) Training programs.--The training programs developed
under paragraph (1) may include courses in recent
developments, techniques, and procedures related to--
``(A) intermodal and public transportation planning;
``(B) management;
``(C) environmental factors;
``(D) acquisition and joint use rights of way;
``(E) engineering and architectural design;
``(F) procurement strategies for public transportation
systems;
``(G) turnkey approaches to delivering public
transportation systems;
``(H) new technologies;
``(I) emission reduction technologies;
``(J) ways to make public transportation accessible to
individuals with disabilities;
``(K) construction, construction management, insurance, and
risk management;
``(L) maintenance;
``(M) contract administration;
``(N) inspection;
``(O) innovative finance;
``(P) workplace safety; and
``(Q) public transportation security.''; and
(2) in subsection (d), by striking ``mass'' each place it
appears.

SEC. 3018. BUS TESTING FACILITY.

Section 5318 is amended--
(1) in subsection (a)--
(A) by striking ``Establishment.--The Secretary of
Transportation shall establish one facility'' and inserting
``In General.--The Secretary shall maintain 1 facility''; and
(B) by striking ``established by renovating'' and inserting
``maintained at''; and
(2) in subsection (d), by striking ``section 5309(m)(1)(C)
of this title'' and inserting ``paragraphs (1)(C) and (2)(B)
of section 5309(i)''.

SEC. 3019. BICYCLE FACILITIES.

Section 5319 is amended by striking ``5307(k)'' and
inserting ``5307(d)(1)(K)''.

SEC. 3020. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

Section 5320 is repealed.

SEC. 3021. CRIME PREVENTION AND SECURITY.

Section 5321 is repealed.

SEC. 3022. GENERAL PROVISIONS ON ASSISTANCE.

Section 5323 is amended--
(1) in subsection (a)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--Financial assistance provided under this
chapter to a State or a local governmental authority may be
used to acquire an interest in, or to buy property of, a
private company engaged in public transportation, for a
capital project for property acquired from a private company
engaged in public transportation after July 9, 1964, or to
operate a public transportation facility or equipment in
competition with, or in addition to, transportation service
provided by an existing public transportation company, only
if--
``(A) the Secretary determines that such financial
assistance is essential to a program of projects required
under sections 5303, 5304, and 5306;
``(B) the Secretary determines that the program provides
for the participation of private companies engaged in public
transportation to the maximum extent feasible; and
``(C) just compensation under State or local law will be
paid to the company for its franchise or property.''; and
(B) in paragraph (2), by striking ``(2)'' and inserting the
following:
``(2) Limitation.--'';
(2) by amending subsection (b) to read as follows:
``(b) Notice and Public Hearing.--
``(1) In general.--An application for a grant under this
chapter for a capital project that will substantially affect
a community, or the public transportation service of a
community, shall include, in the environmental record for the
project, evidence that the applicant has--
``(A) provided an adequate opportunity for public review
and comment on the project;
``(B) held a public hearing on the project if the project
affects significant economic, social, or environmental
interests;
``(C) considered the economic, social, and environmental
effects of the project; and
``(D) found that the project is consistent with official
plans for developing the urban area.
``(2) Contents of notice.--Notice of a hearing under this
subsection--
``(A) shall include a concise description of the proposed
project; and
``(B) shall be published in a newspaper of general
circulation in the geographic area the project will serve.'';
(3) by amending subsection (c) to read as follows:
``(c) New Technology.--A grant for financial assistance
under this chapter for new technology, including innovative
or improved products, techniques, or methods, shall be
subject to the requirements of section 5309 to the extent the
Secretary determines to be appropriate.'';
(4) by amending subsection (d) to read as follows:
``(d) Conditions on Bus Transportation Service.--Financial
assistance under this chapter may be used to buy or operate a
bus only if the recipient agrees to comply with the following
conditions on bus transportation service:
``(1) Charter bus service.--
``(A) In general.--Except as provided under subparagraph
(B), a recipient may provide incidental charter bus service
only within its lawful service area if--
``(i) the recipient annually publishes, by electronic and
other appropriate means, a notice--

``(I) indicating its intent to offer incidental charter bus
service within its lawful service area; and
``(II) soliciting notices from private bus operators that
wish to appear on a list of carriers offering charter bus
service in that service area;

``(ii) the recipient provides private bus operators with an
annual opportunity to notify the recipient of its desire to
appear on a list of carriers offering charter bus service in
such service area;
``(iii) upon receiving a request for charter bus service,
the recipient electronically notifies the private bus
operators listed as offering charter service in that service
area with the name and contact information of the requestor
and the nature of the charter service request; and
``(iv) the recipient does not offer to provide charter bus
service unless no private bus operator indicates that it is
willing and able to provide the service within a 72-hour
period after the receipt of such notice.
``(B) Exception.--A recipient that operates 2,000 or fewer
vehicles in fixed-route peak hour service may provide
incidental charter bus transportation directly to--
``(i) local governments; and
``(ii) social service entities with limited resources.
``(C) Irregularly scheduled events.--Service, other than
commuter service, by a recipient to irregularly scheduled
events, where the service is conducted in whole or in part
outside the service area of the recipient, regardless of
whether the service is contracted for individually with
passengers, is subject to a rebuttable presumption that such
service is charter service.
``(2) Violation of agreements.--
``(A) Complaints.--A complaint regarding the violation of a
charter bus service agreement shall be submitted to the
Regional Administrator of the Federal Transit Administration,
who shall--
``(i) provide a reasonable opportunity for the recipient to
respond to the complaint;
``(ii) provide the recipient with an opportunity for an
informal hearing; and
``(iii) issue a written decision not later than 60 days
after the parties have completed their submissions.
``(B) Appeals.--
``(i) In general.--A decision by the Regional Administrator
may be appealed to a panel comprised of the Federal Transit
Administrator, personnel in the Office of the Secretary of
Transportation, and other persons with expertise in surface
passenger transportation issues.
``(ii) Standard of review.--The panel described in clause
(i) shall consider the complaint de novo on all issues of
fact and law.
``(iii) Written decision.--The appeals panel shall issue a
written decision on an appeal not later than 60 days after
the completion of submissions. This decision shall be the
final order of the agency and subject to judicial review in
district court.
``(C) Correction.--If the Secretary determines that a
violation of an agreement relating to the provision of
charter service has occurred, the Secretary shall correct the
violation under terms of the agreement.
``(D) Remedies.--The Secretary may issue orders to
recipients to cease and desist in actions that violate the
agreement, and such orders shall be binding upon the parties.
In addition to any remedy spelled out in the agreement, if a
recipient has failed to correct a violation within 60 days
after the receipt of a notice of violation from the
Secretary, the Secretary shall withhold from the recipient
the lesser of--
``(i) 5 percent of the financial assistance available to
the recipient under this chapter for the next fiscal year; or
``(ii) $200,000.
``(3) Regulations.--Not later than 1 year after the date of
enactment of the Federal Public Transportation Act of 2004,
the Secretary shall issue amended regulations that--
``(A) implement this subsection, as revised by such Act;
and

[[Page S878]]

``(B) impose restrictions, procedures, and remedies in
connection with sightseeing service by a recipient.
``(4) Public notice.--The Secretary shall make all written
decisions, guidance, and other pertinent materials relating
to the procedures in this subsection available to the public
in electronic and other appropriate formats in a timely
manner.'';
(5) by striking subsection (e);
(6) by redesignating subsection (f) as subsection (e);
(7) in subsection (e), as redesignated--
(A) by striking ``(1)'' and inserting the following:
``(1) In general.--'';
(B) by striking paragraph (2);
(C) by striking ``This subsection'' and inserting the
following:
``(2) Exceptions.--This subsection; and
(D) by adding at the end the following:
``(3) Penalty.--If the Secretary determines that an
applicant, governmental authority, or publicly owned operator
has violated the agreement required under paragraph (1), the
Secretary shall bar the applicant, authority, or operator
from receiving Federal transit assistance in an amount the
Secretary determines to be appropriate.'';
(8) by inserting after subsection (e) the following:
``(f) Bond Proceeds Eligible for Local Share.--
``(1) In general.--Notwithstanding any other provision of
law, a recipient of assistance under section 5307 or 5309,
may use the proceeds from the issuance of revenue bonds as
part of the local matching funds for a capital project.
``(2) Reimbursement by secretary.--The Secretary may
reimburse an eligible recipient for deposits of bond proceeds
in a debt service reserve that the recipient established
pursuant to section 5302(a)(1)(K) from amounts made available
to the recipient under section 5307 or 5309.'';
(9) in subsection (g)--
(A) by striking ``(f)'' each place it appears and inserting
``(e)''; and
(B) by striking ``103(e)(4) and 142 (a) or (c)'' each place
it appears and inserting ``133 and 142'';
(10) by amending subsection (h) to read as follows:
``(h) Transfer of Lands or Interests in Lands Owned by the
United States.--
(1) Request by secretary.--If the Secretary determines that
any part of the lands or interests in lands owned by the
United States and made available as a result of a military
base closure is necessary for transit purposes eligible under
this chapter, including corridor preservation, the Secretary
shall submit a request to the head of the Federal agency
supervising the administration of such lands or interests in
lands. Such request shall include a map showing the portion
of such lands or interests in lands, which is desired to be
transferred for public transportation purposes.
``(2) Transfer of land.--If 4 months after submitting a
request under paragraph (1), the Secretary does not receive a
response from the Federal agency described in paragraph (1)
that certifies that the proposed appropriation of land is
contrary to the public interest or inconsistent with the
purposes for which such land has been reserved, or if the
head of such agency agrees to the utilization or transfer
under conditions necessary for the adequate protection and
utilization of the reserve, such land or interests in land
may be utilized or transferred to a State, local governmental
authority, or public transportation operator for such
purposes and subject to the conditions specified by such
agency.
``(3) Reversion.--If at any time the lands or interests in
land utilized or transferred under paragraph (2) are no
longer needed for public transportation purposes, the State,
local governmental authority, or public transportation
operator that received the land shall notify to the
Secretary, and such lands shall immediately revert to the
control of the head of the Federal agency from which the land
was originally transferred.'';
(11) in subsection (j)(5), by striking ``Intermodal Surface
Transportation Efficiency Act of 1991 (Public Law 102-240,
105 Stat. 1914)'' and inserting ``Federal Public
Transportation Act of 2004'';
(12) by amending subsection (l) to read as follows:
``(l) Relationship to Other Laws.--Section 1001 of title 18
applies to a certificate, submission, or statement provided
under this chapter. The Secretary may terminate financial
assistance under this chapter and seek reimbursement
directly, or by offsetting amounts, available under this
chapter, if the Secretary determines that a recipient of such
financial assistance has made a false or fraudulent statement
or related act in connection with a Federal transit
program.'';
(13) in subsection (m), by inserting at the end the
following: ``Requirements to perform preaward and
postdelivery reviews of rolling stock purchases to ensure
compliance with subsection (j) shall not apply to private
nonprofit organizations or to grantees serving urbanized
areas with a population of fewer than 1,000,000.'';
(14) in subsection (o), by striking ``the Transportation
Infrastructure Finance and Innovation Act of 1998'' and
inserting ``sections 181 through 188 of title 23''; and
(15) by adding at the end the following:
``(p) Prohibited Use of Funds.--Grant funds received under
this chapter may not be used to pay ordinary governmental or
nonproject operating expenses.''.

SEC. 3023. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

(a) In General.--Section 5324 is amended to read as
follows:

``Sec. 5324. Special provisions for capital projects

``(a) Real Property and Relocation Services.--Whenever real
property is acquired or furnished as a required contribution
incident to a project, the Secretary shall not approve the
application for financial assistance unless the applicant has
made all payments and provided all assistance and assurances
that are required of a State agency under sections 210 and
305 of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C. 4630 and 4655).
The Secretary must be advised of specific references to any
State law that are believed to be an exception to section 301
or 302 of such Act (42 U.S.C. 4651 and 4652).
``(b) Advance Real Property Acquisitions.--
(1) In general.--The Secretary may participate in the
acquisition of real property for any project that may use the
property if the Secretary determines that external market
forces are jeopardizing the potential use of the property for
the project and if--
``(A) there are offers on the open real estate market to
convey that property for a use that is incompatible with the
project under study;
``(B) there is an imminent threat of development or
redevelopment of the property for a use that is incompatible
with the project under study;
``(C) recent appraisals reflect a rapid increase in the
fair market value of the property;
``(D) the property, because it is located near an existing
transportation facility, is likely to be developed and to be
needed for a future transportation improvement; or
``(E) the property owner can demonstrate that, for health,
safety, or financial reasons, retaining ownership of the
property poses an undue hardship on the owner in comparison
to other affected property owners and requests the
acquisition to alleviate that hardship.
``(2) Environmental reviews.--Property acquired in
accordance with this subsection may not be developed in
anticipation of the project until all required environmental
reviews for the project have been completed.
``(3) Limitation.--The Secretary shall limit the size and
number of properties acquired under this subsection as
necessary to avoid any prejudice to the Secretary's objective
evaluation of project alternatives.
``(4) Exemption.--An acquisition under this section shall
be considered an exempt project under section 176 of the
Clean Air Act (42 U.S.C. 7506).
``(c) Railroad Corridor Preservation.--
``(1) In general.--The Secretary may assist an applicant to
acquire railroad right-of-way before the completion of the
environmental reviews for any project that may use the right-
of-way if the acquisition is otherwise permitted under
Federal law. The Secretary may establish restrictions on such
an acquisition as the Secretary determines to be necessary
and appropriate.
``(2) Environmental reviews.--Railroad right-of-way
acquired under this subsection may not be developed in
anticipation of the project until all required environmental
reviews for the project have been completed.
``(d) Consideration of Economic, Social, and Environmental
Interests.--
``(1) In general.--The Secretary may not approve an
application for financial assistance for a capital project
under this chapter unless the Secretary determines that the
project has been developed in accordance with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
The Secretary's findings under this paragraph shall be made a
matter of public record.
``(2) Cooperation and consultation.--In carrying out
section 5301(e), the Secretary shall cooperate and consult
with the Secretary of the Interior and the Administrator of
the Environmental Protection Agency on each project that may
have a substantial impact on the environment.''.
(b) Conforming Amendment.--The item relating to section
5324 in the table of sections for chapter 53 is amended to
read as follows:

``5324. Special provisions for capital projects.''.

SEC. 3024. CONTRACT REQUIREMENTS.

(a) In General.--Section 5325 is amended to read as
follows:

``Sec. 5325. Contract requirements

``(a) Competition.--Recipients of assistance under this
chapter shall conduct all procurement transactions in a
manner that provides full and open competition as determined
by the Secretary.
``(b) Architectural, Engineering, and Design Contracts.--
``(1) In general.--A contract or requirement for program
management, architectural engineering, construction
management, a feasibility study, and preliminary engineering,
design, architectural, engineering, surveying, mapping, or
related services for a project for which Federal assistance
is provided under this chapter shall be awarded in the same
manner as a contract for architectural and engineering
services is negotiated under chapter 11 of title 40, or an
equivalent qualifications-based requirement of a State. This
subsection does not apply to the extent a State has adopted
or adopts by law a formal procedure for procuring those
services.
``(2) Additional requirements.--When awarding a contract
described in paragraph

[[Page S879]]

(1), recipients of assistance under this chapter shall comply
with the following requirements:
``(A) Any contract or subcontract awarded under this
chapter shall be performed and audited in compliance with
cost principles contained in part 31 of title 48, Code of
Federal Regulations (commonly known as the Federal
Acquisition Regulation).
``(B) A recipient of funds under a contract or subcontract
awarded under this chapter shall accept indirect cost rates
established in accordance with the Federal Acquisition
Regulation for 1-year applicable accounting periods by a
cognizant Federal or State government agency, if such rates
are not currently under dispute.
``(C) After a firm's indirect cost rates are accepted under
subparagraph (B), the recipient of the funds shall apply such
rates for the purposes of contract estimation, negotiation,
administration, reporting, and contract payment, and shall
not be limited by administrative or de facto ceilings.
``(D) A recipient requesting or using the cost and rate
data described in subparagraph (C) shall notify any affected
firm before such request or use. Such data shall be
confidential and shall not be accessible or provided by the
group of agencies sharing cost data under this subparagraph,
except by written permission of the audited firm. If
prohibited by law, such cost and rate data shall not be
disclosed under any circumstances.
``(c) Efficient Procurement.--A recipient may award a
procurement contract under this chapter to other than the
lowest bidder if the award furthers an objective consistent
with the purposes of this chapter, including improved long-
term operating efficiency and lower long-term costs.
``(d) Design-Build Projects.--
``(1) Defined term.--As used in this subsection, the term
`design-build project'--
``(A) means a project under which a recipient enters into a
contract with a seller, firm, or consortium of firms to
design and build an operable segment of a public
transportation system that meets specific performance
criteria; and
``(B) may include an option to finance, or operate for a
period of time, the system or segment or any combination of
designing, building, operating, or maintaining such system or
segment.
``(2) Financial assistance for capital costs.--Federal
financial assistance under this chapter may be provided for
the capital costs of a design-build project after the
recipient complies with Government requirements.
``(e) Rolling Stock.--
``(1) Acquisition.--A recipient of financial assistance
under this chapter may enter into a contract to expend that
assistance to acquire rolling stock--
``(A) with a party selected through a competitive
procurement process; or
``(B) based on--
``(i) initial capital costs; or
``(ii) performance, standardization, life cycle costs, and
other factors.
``(2) Multiyear contracts.--A recipient procuring rolling
stock with Federal financial assistance under this chapter
may make a multiyear contract, including options, to buy not
more than 5 years of requirements for rolling stock and
replacement parts. The Secretary shall allow a recipient to
act on a cooperative basis to procure rolling stock under
this paragraph and in accordance with other Federal
procurement requirements.
``(f) Examination of Records.--Upon request, the Secretary
and the Comptroller General, or any of their representatives,
shall have access to and the right to examine and inspect all
records, documents, and papers, including contracts, related
to a project for which a grant is made under this chapter.
``(g) Grant Prohibition.--A grant awarded under this
chapter may not be used to support a procurement that uses an
exclusionary or discriminatory specification.
``(h) Bus Dealer Requirements.--No State law requiring
buses to be purchased through in-State dealers shall apply to
vehicles purchased with a grant under this chapter.
``(i) Awards to Responsible Contractors.--
``(1) In general.--Federal financial assistance under this
chapter may be provided for contracts only if a recipient
awards such contracts to responsible contractors possessing
the ability to successfully perform under the terms and
conditions of a proposed procurement.
``(2) Criteria.--Before making an award to a contractor
under paragraph (1), a recipient shall consider--
``(A) the integrity of the contractor;
``(B) the contractor's compliance with public policy;
``(C) the contractor's past performance, including the
performance reported in the Contractor Performance Assessment
Reports required under section 5309(m)(4); and
``(D) the contractor's financial and technical
resources.''.
(b) Conforming Amendments.--Chapter 53 is amended by
striking section 5326.

SEC. 3025. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

(a) Project Management Plan Requirements.--Section 5327(a)
is amended--
(1) in paragraph (11), by striking ``and'' at the end;
(2) in paragraph (12), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(13) safety and security management.''.
(b) Limitations on Use of Available Amounts.--Section
5327(c) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) In general.--The Secretary may not use more than 1
percent of amounts made available for a fiscal year to carry
out any of sections 5307 through 5311, 5316, or 5317, or a
project under the National Capital Transportation Act of 1969
(Public Law 91-143) to make a contract to oversee the
construction of major projects under any of sections 5307
through 5311, 5316, or 5317 or under that Act.'';
(2) in paragraph (2)--
(A) by striking ``(2)'' and inserting the following:
``(2) Other allowable uses.--''; and
(B) by inserting ``and security'' after ``safety''; and
(3) in paragraph (3), by striking ``(3) The Government
shall'' and inserting the following:
``(3) Federal share.--Federal funds shall be used to''.

SEC. 3026. PROJECT REVIEW.

Section 5328 is amended--
(1) in subsection (a)--
(A) in paragraph (1) by striking ``(1) When the Secretary
of Transportation allows a new fixed guideway project to
advance into the alternatives analysis stage of project
review, the Secretary shall cooperate with the applicant''
and inserting the following:
``(1) Alternatives analysis.--The Secretary shall cooperate
with an applicant undertaking an alternatives analysis under
subsections (e) and (f) of section 5309'';
(B) in paragraph (2)--
(i) by striking ``(2)'' and inserting the following:
``(2) Advancement to preliminary engineering stage.--'';
and
(ii) by striking ``is consistent with'' and inserting
``meets the requirements of'';
(C) in paragraph (3)--
(i) by striking ``(3)'' and inserting the following:
``(3) Record of decision.--'';
(ii) by striking ``of construction''; and
(iii) by adding before the period at the end the following:
``if the Secretary determines that the project meets the
requirements of subsection (e) or (f) of section 5309''; and
(D) by striking paragraph (4); and
(2) by striking subsection (c).

SEC. 3027. INVESTIGATIONS OF SAFETY AND SECURITY RISK.

(a) In General.--Section 5329 is amended to read as
follows:

``Sec. 5329. Investigation of safety hazards and security
risks

``(a) In General.--The Secretary may conduct investigations
into safety hazards and security risks associated with a
condition in equipment, a facility, or an operation financed
under this chapter to establish the nature and extent of the
condition and how to eliminate, mitigate, or correct it.
``(b) Submission of Corrective Plan.--If the Secretary
establishes that a safety hazard or security risk warrants
further protective measures, the Secretary shall require the
local governmental authority receiving amounts under this
chapter to submit a plan for eliminating, mitigating, or
correcting it.
``(c) Withholding of Funds.--Financial assistance under
this chapter, in an amount to be determined by the Secretary,
may be withheld until a plan is approved and carried out.''.
(b) Conforming Amendment.--The item relating to section
5329 in the table of sections for chapter 53 is amended to
read as follows:

``5329. Investigation of safety hazards and security risks.''.

SEC. 3028. STATE SAFETY OVERSIGHT.

(a) In General.--Section 5330 is amended--
(1) by amending the heading to read as follows:

``Sec. 5330. Withholding amounts for noncompliance with State
safety oversight requirements'';

(2) by amending subsection (a) to read as follows:
``(a) Application.--This section shall only apply to--
``(1) States that have rail fixed guideway public
transportation systems that are not subject to regulation by
the Federal Railroad Administration; and
``(2) States that are designing rail fixed guideway public
transportation systems that will not be subjected to
regulation by the Federal Railroad Administration.'';
(3) in subsection (d), by striking ``affected States'' and
inserting the following: ``affected States--
``(1) shall ensure uniform safety standards and
enforcement; or
``(2) may designate''; and
(4) in subsection (f), by striking ``Not later than
December 18, 1992, the'' and inserting ``The''.
(b) Conforming Amendment.--The item relating to section
5330 in the table of sections for chapter 53 is amended to
read as follows:

``5330. Withholding amounts for noncompliance with State safety
oversight requirements.''.

SEC. 3029. SENSITIVE SECURITY INFORMATION.

Section 40119(b) is amended--
(1) in paragraph (1)(C), by inserting ``, transportation
facilities or infrastructure, or transportation employees''
before the period at the end; and
(2) by adding at the end the following:
``(3) A State or local government may not enact, enforce,
prescribe, issue, or continue in effect any law, regulation,
standard, or order to the extent it is inconsistent with

[[Page S880]]

this section or regulations prescribed under this section.''.

SEC. 3030. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE
AGAINST PUBLIC TRANSPORTATION SYSTEMS.

(a) In General.--Section 1993 of title 18, United States
Code, is amended--
(1) by striking ``mass'' each place it appears and
inserting ``public'';
(2) in subsection (a)(5), by inserting ``controlling,''
after ``operating''; and
(3) in subsection (c)(5), by striking ``5302(a)(7) of title
49, United States Code,'' and inserting ``5302(a) of title
49,''.
(b) Conforming Amendment.--The table of contents for
chapter 97 of title 18, United States Code is amended by
amending the item related to section 1993 to read as follows:

``1993. Terrorist attacks and other acts of violence against public
transportation systems.''.

SEC. 3031. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

Section 5331 is amended--
(1) in subsection (a)(3), by inserting before the period at
the end the following: ``or sections 2303a, 7101(i), or
7302(e) of title 46. The Secretary may also decide that a
form of public transportation is covered adequately, for
employee alcohol and controlled substances testing purposes,
under the alcohol and controlled substance statutes or
regulations of an agency within the Department of
Transportation or other Federal agency''; and
(2) in subsection (f), by striking paragraph (3).

SEC. 3032. EMPLOYEE PROTECTIVE ARRANGEMENTS.

Section 5333(b) is amended--
(1) in paragraph (3), by striking the period at the end and
inserting ``, if--
``(A) the protective period does not exceed 4 years; and
``(B) the separation allowance does not exceed 12
months.''; and
(2) by adding at the end the following:
``(4) An arrangement under this subsection shall not
guarantee continuation of employment as a result of a change
in private contractors through competitive bidding unless
such continuation is otherwise required under subparagraph
(A), (B), or (D) of paragraph (2).
``(5) Fair and equitable arrangements to protect the
interests of employees utilized by the Secretary of Labor for
assistance to purchase like-kind equipment or facilities, and
amendments to existing assistance agreements, shall be
certified without referral.''.

SEC. 3033. ADMINISTRATIVE PROCEDURES.

Section 5334 is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``5309-5311 of this
title'' and all that follows and inserting ``5309 through
5311;'';
(B) in paragraph (9), by striking ``and'' at the end;
(C) in paragraph (10), by striking the period at the end
and inserting ``; and''; and
(D) by inserting at the end the following:
``(11) issue regulations as necessary to carry out the
purposes of this chapter.'';
(2) by redesignating subsections (b), (c), (d), (e), (f),
(g), (h), (i), and (j) as subsections (c), (d), (e), (f),
(g), (h), (i), (j), and (k), respectively;
(3) by adding after subsection (a) the following:
``(b) Prohibitions Against Regulating Operations and
Charges.--
``(1) In general.--Except as directed by the President for
purposes of national defense or in the event of a national or
regional emergency, the Secretary may not regulate--
``(A) the operation, routes, or schedules of a public
transportation system for which a grant is made under this
chapter; or
``(B) the rates, fares, tolls, rentals, or other charges
prescribed by any public or private transportation provider.
``(2) Compliance with agreement.--Nothing in this
subsection shall prevent the Secretary from requiring a
recipient of funds under this chapter to comply with the
terms and conditions of its Federal assistance agreement.'';
and
(4) in subsection (j)(1), as redesignated, by striking
``carry out section 5312(a) and (b)(1) of this title'' and
inserting ``advise and assist the Secretary in carrying out
section 5312(a)''.

SEC. 3034. REPORTS AND AUDITS.

Section 5335 is amended--
(1) by striking subsection (b); and
(2) in subsection (a)--
(A) in paragraph (1), by striking ``(1)''; and
(B) in paragraph (2), by striking ``(2) The Secretary may
make a grant under section 5307 of this title'' and inserting
the following:
``(b) Reporting and Uniform Systems.--The Secretary may
award a grant under section 5307 or 5311''.

SEC. 3035. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA
GRANTS.

Section 5336 is amended--
(1) by striking subsection (d);
(2) by striking subsection (h);
(3) by striking subsection (k);
(4) by redesignating subsections (a) through (c) as
subsections (b) through (d), respectively;
(5) by adding before subsection (b), as redesignated, the
following:
``(a) Apportionments.--Of the amounts made available for
each fiscal year under subsections (a)(1)(C)(vi) and
(b)(2)(L) of section 5338--
``(1) there shall be apportioned, in fiscal year 2005 and
each fiscal year thereafter, $35,000,000 to certain urbanized
areas with populations of less than 200,000 in accordance
with subsection (k); and
``(2) any amount not apportioned under paragraph (1) shall
be apportioned to urbanized areas in accordance with
subsections (b) through (d).'';
(6) in subsection (b), as redesignated--
(A) by striking ``Of the amount made available or
appropriated under section 5338(a) of this title'' and
inserting ``Of the amount apportioned under subsection
(a)(3)''; and
(B) in paragraph (2), by striking ``subsections (b) and (c)
of this section'' and inserting ``subsections (c) and (d)'';
(7) in subsection (c)(2), as redesignated, by striking
``subsection (a)(2) of this section'' and inserting
``subsection (b)(2)'';
(8) in subsection (d), as redesignated, by striking
``subsection (a)(2) of this section'' and inserting
``subsection (b)(2)'';
(9) in subsection (e)(1), by striking ``subsections (a) and
(h)(2) of section 5338 of this title'' and inserting
``subsections (a) and (b) of section 5338'';
(10) in subsection (g), by striking ``subsection (a)(1) of
this section'' each place it appears and inserting
``subsection (b)(1)''; and
(11) by adding at the end the following:
``(k) Small Transit Intensive Cities Factors.--The amount
apportioned under subsection (a)(1) shall be apportioned to
urbanized areas as follows:
``(1) The Secretary shall calculate a factor equal to the
sum of revenue vehicle hours operated within urbanized areas
with a population of between 200,000 and 1,000,000 divided by
the sum of the population of all such urbanized areas.
``(2) The Secretary shall designate as eligible for an
apportionment under this subsection all urbanized areas with
a population of under 200,000 for which the number of revenue
vehicle hours operated within the urbanized area divided by
the population of the urbanized area exceeds the factor
calculated under paragraph (1).
``(3) For each urbanized area qualifying for an
apportionment under paragraph (2), the Secretary shall
calculate an amount equal to the product of the population of
that urbanized area and the factor calculated under paragraph
(1).
``(4) For each urbanized area qualifying for an
apportionment under paragraph (2), the Secretary shall
calculate an amount equal to the difference between the
number of revenue vehicle hours within that urbanized area
less the amount calculated in paragraph (3).
``(5) Each urbanized area qualifying for an apportionment
under paragraph (2) shall receive an amount equal to the
amount to be apportioned under this subsection multiplied by
the amount calculated for that urbanized area under paragraph
(4) divided by the sum of the amounts calculated under
paragraph (4) for all urbanized areas qualifying for an
apportionment under paragraph (2).
``(l) Study on Incentives in Formula Programs.--
``(1) Study.--The Secretary shall conduct a study to assess
the feasibility and appropriateness of developing and
implementing an incentive funding system under sections 5307
and 5311 for operators of public transportation.
``(2) Report.--
``(A) In general.--Not later than 1 year after the date of
enactment of the Federal Public Transportation Act of 2004,
the Secretary shall submit a report on the results of the
study conducted under paragraph (1) to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives.
``(B) Contents.--The report submitted under subparagraph
(A) shall include--
``(i) an analysis of the availability of appropriate
measures to be used as a basis for the distribution of
incentive payments;
``(ii) the optimal number and size of any incentive
programs;
``(iii) what types of systems should compete for various
incentives;
``(iv) how incentives should be distributed; and
``(v) the likely effects of the incentive funding
system.''.

SEC. 3036. APPORTIONMENTS FOR FIXED GUIDEWAY MODERNIZATION.

Section 5337 is amended--
(1) in subsection (a), by striking ``for each of fiscal
years 1998 through 2003''; and
(2) by striking ``section 5336(b)(2)(A)'' each place it
appears and inserting ``section 5336(c)(2)(A)''.

SEC. 3037. AUTHORIZATIONS.

Section 5338 is amended to read as follows:

``Sec. 5338. Authorizations

``(a) Fiscal Year 2004.--
``(1) Formula grants.--
``(A) Trust fund.--For fiscal year 2004, $3,053,079,920
shall be available from the Mass Transit Account of the
Highway Trust Fund to carry out sections 5307, 5309, 5310,
and 5311 of this chapter and section 3038 of the
Transportation Equity Act for the 21st Century (49 U.S.C.
5310 note).
``(B) General fund.--In addition to the amounts made
available under subparagraph (A), there are authorized to be
appropriated $763,269,980 for fiscal year 2004 to carry out
sections 5307, 5309, 5310, and 5311 of this chapter and
section 3038 of the Transportation Equity Act for the 21st
Century (49 U.S.C. 5310 note).

[[Page S881]]

``(C) Allocation of funds.--Of the amounts made available
or appropriated under this paragraph--
``(i) $4,821,335 shall be available to the Alaska Railroad
for improvements to its passenger operations under section
5307;
``(ii) $6,908,995 shall be available to provide over-the-
road bus accessibility grants under section 3038 of the
Transportation Equity Act for the 21st Century (49 U.S.C.
5310 note);
``(iii) $90,117,950 shall be available to provide
transportation services to elderly individuals and
individuals with disabilities under section 5310;
``(iv) $239,188,058 shall be available to provide financial
assistance for other than urbanized areas under section 5311;
``(v) $3,425,608,562 shall be available to provide
financial assistance for urbanized areas under section 5307;
and
``(vi) $49,705,000 shall be available to provide financial
assistance for buses and bus facilities under section 5309..
``(2) Job access and reverse commute.--
``(A) Trust fund.--For fiscal year 2004, $99,410,000 shall
be available from the Mass Transit Account of the Highway
Trust Fund to carry out section 3037 of the Transportation
Equity Act for the 21st Century (49 U.S.C. 5309 note).
``(B) General fund.--In addition to the amounts made
available under paragraph (A), there are authorized to be
appropriated $24,852,500 for fiscal year 2004 to carry out
section 3037 of the Transportation Equity Act of the 21st
Century (49 U.S.C. 5309 note).
``(3) Capital program grants.--
``(A) Trust fund.--For fiscal year 2004, $2,495,191,000
shall be available from the Mass Transit Account of the
Highway Trust Fund to carry out section 5309.
``(B) General fund.--In addition to the amounts made
available under subparagraph (A), there are authorized to be
appropriated $623,797,750 for fiscal year 2004 to carry out
section 5309.
``(4) Planning.--
``(A) Trust fund.--For fiscal year 2004, $58,254,260 shall
be available from the Mass Transit Account of the Highway
Trust Fund to carry out section 5308.
``(B) General fund.--In addition to the amounts made
available under subparagraph (A), there are authorized to be
appropriated $14,315,040 for fiscal year 2004 to carry out
section 5308.
``(C) Allocation of funds.--Of the amounts made available
or appropriated under this paragraph--
``(i) 82.72 percent shall be allocated for metropolitan
planning under section 5308(c); and
``(ii) 17.28 percent shall be allocated for State planning
under section 5308(d).
``(5) Research.--
``(A) Trust fund.--For fiscal year 2004, $41,951,020 shall
be available from the Mass Transit Account of the Highway
Trust Fund to carry out sections 5311(b), 5312, 5313, 5314,
5315, and 5322.
``(B) General fund.--In addition to the amounts made
available under subparagraph (A), there are authorized to be
appropriated $10,736,280 for fiscal year 2004 to carry out
sections 5311(b), 5312, 5313, 5314, 5315, and 5322.
``(C) Allocation of funds.--Of the funds made available or
appropriated under this paragraph--
``(i) not less than $3,976,400 shall be available to carry
out programs of the National Transit Institute under section
5315;
``(ii) not less than $5,219,025 shall be available to carry
out section 5311(b)(2);
``(iii) not less than $8,201,325 shall be available to
carry out section 5313; and
``(iv) the remainder shall be available to carry out
national research and technology programs under sections
5312, 5314, and 5322.
``(6) University transportation research.--
``(A) Trust fund.--For fiscal year 2004, $4,771,680 shall
be available from the Mass Transit Account of the Highway
Trust Fund to carry out sections 5505 and 5506.
``(B) General fund.--In addition to amounts made available
under subparagraph (A), there are authorized to be
appropriated $1,192,920 for fiscal year 2004 to carry out
sections 5505 and 5506.
``(C) Allocation of funds.--Of the amounts made available
or appropriated under this paragraph--
``(i) $1,988,200 shall be available for grants under
5506(f)(5) to the institution identified in section
5505(j)(3)(E), as in effect on the day before the date of
enactment of the Federal Public Transportation Act of 2004;
``(ii) $1,988,200 shall be available for grants under
section 5505(d) to the institution identified in section
5505(j)(4)(A), as in effect on the date specified in clause
(i); and
``(iii) $1,988,200 shall be available for grants under
section 5505(d) to the institution identified in section
5505(j)(4)(F), as in effect on the date specified in
subclause (I).
``(C) Special rule.--Nothing in this paragraph shall be
construed to limit the transportation research conducted by
the centers receiving financial assistance under this
section.
``(7) Administration.--
``(A) Trust fund.--For fiscal year 2004, $60,043,640 shall
be available from the Mass Transit Account of the Highway
Trust Fund to carry out section 5334.
``(B) General fund.--In addition to amounts made available
under subparagraph (A), there are authorized to be
appropriated $15,010,910 for fiscal year 2004 to carry out
section 5334.
``(8) Grants as contractual obligations.--
``(A) Grants financed from highway trust fund.--A grant or
contract that is approved by the Secretary and financed with
amounts made available under paragraph (1)(A), (2)(A),
(3)(A), (4)(A), (5)(A), (6)(A), or (7)(A) is a contractual
obligation of the United States Government to pay the Federal
share of the cost of the project.
``(B) Grants financed from general fund.--A grant or
contract that is approved by the Secretary and financed with
amounts appropriated in advance under paragraph (1)(B),
(2)(B), (3)(B), (4)(B), (5)(B), (6)(B), or (7)(B) is a
contractual obligation of the United States Government to pay
the Federal share of the cost of the project only to the
extent that amounts are appropriated for such purpose by an
Act of Congress.
``(9) Availability of Amounts.--Amounts made available or
appropriated under paragraphs (1) through (6) shall remain
available until expended.''.
``(b) Formula Grants and Research.--
``(1) In general.--There shall be available from the Mass
Transit Account of the Highway Trust Fund to carry out
sections 5307, 5308, 5309, 5310 through 5316, 5322, 5335,
5340, and 5505 of this title, and sections 3037 and 3038 of
the Federal Transit Act of 1998 (112 Stat. 387 et seq.)--
``(A) $6,262,600,000 for fiscal year 2005;
``(B) $6,577,629,000 for fiscal year 2006;
``(C) $6,950,400,000 for fiscal year 2007;
``(D) $7,594,760,000 for fiscal year 2008; and
``(E) $8,275,320,000 for fiscal year 2009.
``(2) Allocation of funds.--Of the amounts made available
under paragraph (1) for each fiscal year--
``(A) 0.092 percent shall be available for grants to the
Alaska Railroad under section 5307 for improvements to its
passenger operations;
``(B) 1.75 percent shall be available to carry out section
5308;
``(C) 2.05 percent shall be available to provide financial
assistance for job access and reverse commute projects under
section 3037 of the Federal Transit Act of 1998 (49 U.S.C.
5309 note);
``(D) 3.00 percent shall be available to provide financial
assistance for services for elderly persons and persons with
disabilities under section 5310;
``(E) 0.125 percent shall be available to carry out section
3038 of the Transportation Equity Act for the 21st Century
(49 U.S.C. 5310 note);
``(F) 6.25 percent shall be available to provide financial
assistance for other than urbanized areas under section 5311;
``(G) 0.89 percent shall be available to carry out transit
cooperative research programs under section 5313, the
National Transit Institute under section 5315, university
research centers under section 5505, and national research
programs under sections 5312, 5313, 5314, and 5322, of
which--
``(i) 17.0 percent shall be allocated to carry out transit
cooperative research programs under section 5313;
``(ii) 7.5 percent shall be allocated to carry out programs
under the National Transit Institute under section 5315,
including not more than $1,000,000 to carry out section
5315(a)(16);
``(iii) 11.0 percent shall be allocated to carry out the
university centers program under section 5505; and
``(iv) any funds made available under this subparagraph
that are not allocated under clauses (i) through (iii) shall
be allocated to carry out national research programs under
sections 5312, 5313, 5314, and 5322;
``(H) $25,000,000 shall be available for each of the fiscal
years 2005 through 2009 to carry out section 5316;
``(I) there shall be available to carry out section 5335--
``(i) $3,700,000 in fiscal year 2005;
``(iii) $3,900,000 in fiscal year 2006;
``(iv) $4,200,000 in fiscal year 2007;
``(v) $4,600,000 in fiscal year 2008; and
``(vi) $5,000,000 in fiscal year 2009;
``(J) 6.25 percent shall be allocated in accordance with
section 5340 to provide financial assistance for urbanized
areas under section 5307 and other than urbanized areas under
section 5311; and
``(K) 22.0 percent shall be allocated in accordance with
section 5337 to provide financial assistance under section
5309(i)(3); and
``(L) any amounts not made available under subparagraphs
(A) through (K) shall be allocated in accordance with section
5336 to provide financial assistance for urbanized areas
under section 5307.
``(3) University centers program.--
``(A) Allocation.--Of the amounts allocated under paragraph
(2)(G)(iii), $1,000,000 shall be available in each of the
fiscal years 2005 through 2009 for Morgan State University to
provide transportation research, training, and curriculum
development.
``(B) Requirements.--The university specified under
subparagraph (A) shall be considered a University
Transportation Center under section 510 of title 23, and
shall be subject to the requirements under subsections (c),
(d), (e), and (f) of such section.
``(C) Report.--In addition to the report required under
section 510(e)(3) of title 23, the university specified under
subparagraph (A) shall annually submit a report to the
Secretary that describes the university's contribution to
public transportation.
``(4) Bus grants.--In addition to the amounts made
available under paragraph (1), there shall be available from
the Mass Transit Account of the Highway Trust Fund to carry
out section 5309(i)(2)(B)--
``(A) $839,829,000 for fiscal year 2005;
``(B) $882,075,000 for fiscal year 2006;

[[Page S882]]

``(C) $932,064,000 for fiscal year 2007;
``(D) $1,018,474,000 for fiscal year 2008; and
``(E) $1,109,739,000 for fiscal year 2009.
``(c) Major Capital Investment Grants.--There are
authorized to be appropriated to carry out section
5309(i)(2)(A)--
``(1) $1,461,072,000 for fiscal year 2005;
``(2) $1,534,568,000 for fiscal year 2006;
``(3) $1,621,536,000 for fiscal year 2007;
``(4) $1,771,866,000 for fiscal year 2008; and
``(5) $1,930,641,000 for fiscal year 2009.
``(d) Administration.--There shall be available from the
Mass Transit Account of the Highway Trust Fund to carry out
section 5334--
``(1) $86,500,000 for fiscal year 2005;
``(2) $90,851,000 for fiscal year 2006;
``(3) $96,000,000 for fiscal year 2007;
``(4) $104,900,000 for fiscal year 2008; and
``(5) $114,300,000 for fiscal year 2009.
``(e) Grants as Contractual Obligations.--
``(1) Mass transit account funds.--A grant or contract
approved by the Secretary that is financed with amounts made
available under subsection (b)(1) or (d) is a contractual
obligation of the United States Government to pay the Federal
share of the cost of the project.
``(2) Appropriated funds.--A grant or contract approved by
the Secretary that is financed with amounts made available
under subsection (b)(2) or (c) is a contractual obligation of
the United States Government to pay the Federal share of the
cost of the project only to the extent that amounts are
appropriated in advance for such purpose by an Act of
Congress.
``(f) Availability of Amounts.--Amounts made available by
or appropriated under subsections (b) and (c) shall remain
available until expended.''.

SEC. 3038. APPORTIONMENTS BASED ON GROWING STATES FORMULA
FACTORS.

(a) In General.--Chapter 53 is amended by adding at the end
the following:

``Sec. 5340. Apportionments based on growing States and high
density State formula factors

``(a) Allocation.--Of the amounts made available for each
fiscal year under section 5338(b)(2)(J), the Secretary shall
apportion--
``(1) 50 percent to States and urbanized areas in
accordance with subsection (b); and
``(2) 50 percent to States and urbanized areas in
accordance with subsection (c).
``(b) Growing State Apportionments.--
``(1) Apportionment among states.--The amounts apportioned
under paragraph (a)(1) shall provide each State with an
amount equal to the total amount apportioned multiplied by a
ratio equal to the population of that State forecast for the
year that is 15 years after the most recent decennial census,
divided by the total population of all States forecast for
the year that is 15 years after the most recent decennial
census.
``(2) Apportionments between urbanized areas and other than
urbanized areas in each state.--
``(A) In general.--The Secretary shall apportion amounts to
each State under paragraph (1) so that urbanized areas in
that State receive an amount equal to the amount apportioned
to that State multiplied by a ratio equal to the sum of the
forecast population of all urbanized areas in that State
divided by the total forecast population of that State. In
making the apportionment under this subparagraph, the
Secretary shall utilize any available forecasts made by the
State. If no forecasts are available, the Secretary shall
utilize data on urbanized areas and total population from the
most recent decennial census.
``(B) Remaining amounts.--Amounts remaining for each State
after apportionment under subparagraph (A) shall be
apportioned to that State and added to the amount made
available for grants under section 5311.
``(3) Apportionments among urbanized areas in each state.--
The Secretary shall apportion amounts made available to
urbanized areas in each State under subsection (b)(2)(A) so
that each urbanized area receives an amount equal to the
amount apportioned under subsection (b)(2)(A) multiplied by a
ratio equal to the population of each urbanized area divided
by the sum of populations of all urbanized areas in the
State. Amounts apportioned to each urbanized area shall be
added to amounts apportioned to that urbanized area under
section 5336, and made available for grants under section
5307.
``(c) High Density State Apportionments.--Amounts to be
apportioned under subsection (a)(2) shall be apportioned as
follows:
``(1) Eligible states.--The Secretary shall designate as
eligible for an apportionment under this subsection all
States with a population density in excess of 370 persons per
square mile.
``(2) State urbanized land factor.--For each State
qualifying for an apportionment under paragraph (1), the
Secretary shall calculate an amount equal to the product of
the urban land area of urbanized areas in the State times 370
persons per square mile.
``(3) State apportionment factor.--For each State
qualifying for an apportionment under paragraph (1), the
Secretary shall calculate an amount equal to the difference
between the total population of the State less the amount
calculated in paragraph (2).
``(4) State apportionment.--Each State qualifying for an
apportionment under paragraph (1) shall receive an amount
equal to the amount to be apportioned under this subsection
multiplied by the amount calculated for the State under
paragraph (3) divided by the sum of the amounts calculated
under paragraph (3) for all States qualifying for an
apportionment under paragraph (1).
``(5) Apportionments between urbanized areas and other than
urbanized areas in each state.--
``(A) In general.--The Secretary shall apportion amounts
apportioned to each State under paragraph (4) so that
urbanized areas in that State receive an amount equal to the
amount apportioned to that State multiplied by a ratio equal
to the sum of the population of all urbanized areas in that
State divided by the total population of that State.
``(B) Remaining amounts.--Amounts remaining for each State
after apportionment under subparagraph (a) shall be
apportioned to that State and added to the amount made
available for grants under section 5311.
``(6) Apportionments among urbanized areas in each state.--
The Secretary shall apportion amounts made available to
urbanized areas in each State under subsection (c)(5)(A) so
that each urbanized area receives an amount equal to the
amount apportioned under subsection (c)(5)(A) multiplied by a
ratio equal to the population of each urbanized area divided
by the sum of populations of all urbanized areas in the
State. Amounts apportioned to each urbanized area shall be
added to amounts apportioned to that urbanized area under
section 5336, and made available for grants under section
5307.''.
(b) Conforming Amendment.--The table of sections for
chapter 53 is amended by adding at the end the following:

``5340. Apportionments based on growing States and high density States
formula factors.''.

SEC. 3039. JOB ACCESS AND REVERSE COMMUTE GRANTS.

Section 3037 of the Federal Transit Act of 1998 (49 U.S.C.
5309 note) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``means an individual'' and inserting the
following: ``means--
``(A) an individual''; and
(ii) by striking the period at the end and inserting ``; or
``(B) an individual who is eligible for assistance under
the State program of Temporary Assistance to Needy Families
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et. seq.) in the State in which the recipient
of a grant under this section is located.''; and
(B) in paragraph (2), by striking ``development of'' each
place it appears and inserting ``development and provision
of'';
(2) in subsection (i), by amending paragraph (2) to read as
follows:
``(2) Coordination.--
``(A) In general.--The Secretary shall coordinate
activities under this section with related activities under
programs of other Federal departments and agencies.
``(B) Certification.--A recipient of funds under this
section shall certify that--
``(i) the project has been derived from a locally
developed, coordinated public transit human services
transportation plan; and
``(ii) the plan was developed through a process that
included representatives of public, private, and nonprofit
transportation and human services providers and participation
by the public.'';
(3) by amending subsection (j) to read as follows:
``(j) Grant Requirements.--
``(1) In general.--
``(A) Urbanized areas.--A grant awarded under this section
to a public agency or private company engaged in public
transportation in an urbanized area shall be subject to the
all of the terms and conditions to which a grant awarded
under section 5307 of title 49, United States Code, is
subject, to the extent the Secretary considers appropriate.
``(B) Other than urbanized areas.--A grant awarded under
this section to a public agency or a private company engaged
in public transportation in an area other than urbanized
areas shall be subject to all of the terms and conditions to
which a grant awarded under section 5311 of title 49, United
States Code, is subject, to the extent the Secretary
considers appropriate.
``(C) Nonprofit organizations.--A grant awarded under this
section to a private nonprofit organization shall be subject
to all of the terms and conditions to which a grant made
under section 5310 of title 49, United States Code, is
subject, to the extent the Secretary considers appropriate.
``(2) Special warranty.--
``(A) In general.--Section 5333(b) of title 49, United
States Code, shall apply to grants under this section if the
Secretary of Labor utilizes a Special Warranty that provides
a fair and equitable arrangement to protect the interests of
employees.
``(B) Waiver.--The Secretary may waive the applicability of
the Special Warranty under subparagraph (A) for private non-
profit recipients on a case-by-case basis as the Secretary
considers appropriate.''; and
(4) by striking subsections (k) and (l).

SEC. 3040. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.

(a) Section Heading.--The section heading for section 3038
of the Federal Transit Act of 1998 (49 U.S.C. 5310 note), is
amended to read as follows:

``SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.''.

(b) Funding.--Section 3038(g) of the Federal Transit Act of
1998 (49 U.S.C. 5310 note) is amended to read as follows:

[[Page S883]]

``(g) Funding.--Of the amounts made available for each
fiscal year under subsections (a)(1)(C)(iii) and (b)(2)(E) of
section 5338 of title 49, United States Code--
``(1) 75 percent shall be available, and shall remain
available until expended, for operators of over-the-road
buses, used substantially or exclusively in intercity, fixed-
route over-the-road bus service, to finance the incremental
capital and training costs of the Department of
Transportation's final rule regarding accessibility of over-
the-road buses; and
``(2) 25 percent shall be available, and shall remain
available until expended, for operators of over-the-road bus
service not described in paragraph (1), to finance the
incremental capital and training costs of the Department of
Transportation's final rule regarding accessibility of over-
the-road buses.''.
(b) Conforming Amendment.--The item relating to section
3038 in the table of contents for the Transportation Equity
Act for the 21st Century (Public Law 105-178) is amended to
read as follows:

``Sec. 3038. Over-the-road bus accessibility program.''.

SEC. 3041. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC
LANDS.

(a) In General.--Chapter 53 is amended by inserting after
section 5315 the following:

``Sec. 5316. Alternative transportation in parks and public
lands

``(a) In General.--
``(1) Authorization.--
``(A) In general.--The Secretary, in consultation with the
Secretary of the Interior, may award a grant or enter into a
contract, cooperative agreement, interagency agreement,
intraagency agreement, or other transaction to carry out a
qualified project under this section to enhance the
protection of America's National Parks and public lands and
increase the enjoyment of those visiting the parks and public
lands by ensuring access to all, including persons with
disabilities, improving conservation and park and public land
opportunities in urban areas through partnering with state
and local governments, and improving park and public land
transportation infrastructure.
``(B) Consultation with other agencies.--To the extent that
projects are proposed or funded in eligible areas that are
not within the jurisdiction of the Department of the
Interior, the Secretary of the Interior shall consult with
the heads of the relevant Federal land management agencies in
carrying out the responsibilities under this section.
``(2) Use of funds.--A grant, cooperative agreement,
interagency agreement, intraagency agreement, or other
transaction for a qualified project under this section shall
be available to finance the leasing of equipment and
facilities for use in public transportation, subject to any
regulation that the Secretary may prescribe limiting the
grant or agreement to leasing arrangements that are more
cost-effective than purchase or construction.
``(b) Definitions.--As used in this section, the following
definitions shall apply:
``(1) Eligible area.--The term `eligible area' means any
federally owned or managed park, refuge, or recreational area
that is open to the general public, including--
``(A) a unit of the National Park System;
``(B) a unit of the National Wildlife Refuge System;
``(C) a recreational area managed by the Bureau of Land
Management; and
``(D) a recreation area managed by the Bureau of
Reclamation.
``(2) Federal land management agency.--The term `Federal
land management agency' means a Federal agency that manages
an eligible area.
``(3) Alternative transportation.--The term `alternative
transportation' means transportation by bus, rail, or any
other publicly or privately owned conveyance that provides to
the public general or special service on a regular basis,
including sightseeing service.
``(4) Qualified participant.--The term `qualified
participant' means--
``(A) a Federal land management agency; or
``(B) a State, tribal, or local governmental authority with
jurisdiction over land in the vicinity of an eligible area
acting with the consent of the Federal land management
agency, alone or in partnership with a Federal land
management agency or other Governmental or nongovernmental
participant.
``(5) Qualified project.--The term `qualified project'
means a planning or capital project in or in the vicinity of
an eligible area that--
``(A) is an activity described in section 5302, 5303, 5304,
5308, or 5309(a)(1)(A);
``(B) involves--
``(i) the purchase of rolling stock that incorporates clean
fuel technology or the replacement of buses of a type in use
on the date of enactment of this section with clean fuel
vehicles; or
``(ii) the deployment of alternative transportation
vehicles that introduce innovative technologies or methods;
``(C) relates to the capital costs of coordinating the
Federal land management agency public transportation systems
with other public transportation systems;
``(D) provides a nonmotorized transportation system
(including the provision of facilities for pedestrians,
bicycles, and nonmotorized watercraft);
``(E) provides waterborne access within or in the vicinity
of an eligible area, as appropriate to and consistent with
this section; or
``(F) is any other alternative transportation project
that--
``(i) enhances the environment;
``(ii) prevents or mitigates an adverse impact on a natural
resource;
``(iii) improves Federal land management agency resource
management;
``(iv) improves visitor mobility and accessibility and the
visitor experience;
``(v) reduces congestion and pollution (including noise
pollution and visual pollution); or
``(vi) conserves a natural, historical, or cultural
resource (excluding rehabilitation or restoration of a non-
transportation facility).
``(c) Federal Agency Cooperative Arrangements.--The
Secretary shall develop cooperative arrangements with the
Secretary of the Interior that provide for--
``(1) technical assistance in alternative transportation;
``(2) interagency and multidisciplinary teams to develop
Federal land management agency alternative transportation
policy, procedures, and coordination; and
``(3) the development of procedures and criteria relating
to the planning, selection, and funding of qualified projects
and the implementation and oversight of the program of
projects in accordance with this section.
``(d) Limitation on Use of Available Amounts.--
``(1) In general.--The Secretary, in consultation with the
Secretary of the Interior, may use not more than 10 percent
of the amount made available for a fiscal year under section
5338(a)(2)(I) to carry out planning, research, and technical
assistance under this section, including the development of
technology appropriate for use in a qualified project.
``(2) Additional amounts.--Amounts made available under
this subsection are in addition to amounts otherwise
available to the Secretary to carry out planning, research,
and technical assistance under this title or any other
provision of law.
``(3) Maximum amount.--No qualified project shall receive
more than 12 percent of the total amount made available to
carry out this section under section 5338(a)(2)(I) for any
fiscal year.
``(e) Planning Process.--In undertaking a qualified project
under this section,
``(1) if the qualified participant is a Federal land
management agency--
``(A) the Secretary, in cooperation with the Secretary of
the Interior, shall develop transportation planning
procedures that are consistent with--
``(i) the metropolitan planning provisions under section
5303 of this title;
``(ii) the statewide planning provisions under section 5304
of this title; and
``(iii) the public participation requirements under section
5307(e); and
``(B) in the case of a qualified project that is at a unit
of the National Park system, the planning process shall be
consistent with the general management plans of the unit of
the National Park system; and
``(2) if the qualified participant is a State or local
governmental authority, or more than one State or local
governmental authority in more than one State, the qualified
participant shall--
``(A) comply with the metropolitan planning provisions
under section 5303 of this title;
``(B) comply with the statewide planning provisions under
section 5304 of this title;
``(C) comply with the public participation requirements
under section 5307(e) of this title; and
``(D) consult with the appropriate Federal land management
agency during the planning process.
``(f) Cost Sharing.--
``(1) The Secretary, in cooperation with the Secretary of
the Interior, shall establish the agency share of net project
cost to be provided under this section to a qualified
participant.
``(2) In establishing the agency share of net project cost
to be provided under this section, the Secretary shall
consider--
``(A) visitation levels and the revenue derived from user
fees in the eligible area in which the qualified project is
carried out;
``(B) the extent to which the qualified participant
coordinates with a public transportation authority or private
entity engaged in public transportation;
``(C) private investment in the qualified project,
including the provision of contract services, joint
development activities, and the use of innovative financing
mechanisms;
``(D) the clear and direct benefit to the qualified
participant; and
``(E) any other matters that the Secretary considers
appropriate to carry out this section.
``(3) Notwithstanding any other provision of law, Federal
funds appropriated to any Federal land management agency may
be counted toward the non-agency share of the net project
cost of a qualified project.
``(g) Selection of Qualified Projects.--
``(1) The Secretary of the Interior, after consultation
with and in cooperation with the Secretary, shall determine
the final selection and funding of an annual program of
qualified projects in accordance with this section.
``(2) In determining whether to include a project in the
annual program of qualified projects, the Secretary of the
Interior shall consider--
``(A) the justification for the qualified project,
including the extent to which the qualified project would
conserve resources,

[[Page S884]]

prevent or mitigate adverse impact, and enhance the
environment;
``(B) the location of the qualified project, to ensure that
the selected qualified projects--
``(i) are geographically diverse nationwide; and
``(ii) include qualified projects in eligible areas located
in both urban areas and rural areas;
``(C) the size of the qualified project, to ensure that
there is a balanced distribution;
``(D) the historical and cultural significance of a
qualified project;
``(E) safety;
``(F) the extent to which the qualified project would-
``(i) enhance livable communities;
``(ii) reduce pollution (including noise pollution, air
pollution, and visual pollution);
``(iii) reduce congestion; and
``(iv) improve the mobility of people in the most efficient
manner; and
``(G) any other matters that the Secretary considers
appropriate to carry out this section, including-
``(i) visitation levels;
``(ii) the use of innovative financing or joint development
strategies; and
``(iii) coordination with gateway communities.
``(h) Qualified Projects Carried Out in Advance.--
``(1) When a qualified participant carries out any part of
a qualified project without assistance under this section in
accordance with all applicable procedures and requirements,
the Secretary, in consultation with the Secretary of the
Interior, may pay the share of the net capital project cost
of a qualified project if--
``(A) the qualified participant applies for the payment;
``(B) the Secretary approves the payment; and
``(C) before carrying out that part of the qualified
project, the Secretary approves the plans and specifications
in the same manner as plans and specifications are approved
for other projects assisted under this section.
``(2)(A) The cost of carrying out part of a qualified
project under paragraph (1) includes the amount of interest
earned and payable on bonds issued by a State or local
governmental authority, to the extent that proceeds of the
bond are expended in carrying out that part.
``(B) The rate of interest under this paragraph may not
exceed the most favorable rate reasonably available for the
qualified project at the time of borrowing.
``(C) The qualified participant shall certify, in a manner
satisfactory to the Secretary, that the qualified participant
has exercised reasonable diligence in seeking the most
favorable interest rate.
``(i) Relationship to Other Laws.--
``(1) Section 5307.--A qualified participant under this
section shall be subject to the requirements of sections 5307
and 5333(a) to the extent the Secretary determines to be
appropriate.
``(2) Other requirements.--A qualified participant under
this section is subject to any other terms, conditions,
requirements, and provisions that the Secretary determines to
be appropriate to carry out this section, including
requirements for the distribution of proceeds on disposition
of real property and equipment resulting from a qualified
project assisted under this section.
``(3) Project management plan.--If the amount of assistance
anticipated to be required for a qualified project under this
section is not less than $25,000,000--
``(A) the qualified project shall, to the extent the
Secretary considers appropriate, be carried out through a
full funding grant agreement, in accordance with section
5309(g); and
``(B) the qualified participant shall prepare a project
management plan in accordance with section 5327(a).
``(i) Asset Management.--The Secretary, in consultation
with the Secretary of the Interior, may transfer the interest
of the Department of Transportation in, and control over, all
facilities and equipment acquired under this section to a
qualified participant for use and disposition in accordance
with any property management regulations that the Secretary
determines to be appropriate.
``(j) Coordination of Research and Deployment of New
Technologies.--
``(1) The Secretary, in cooperation with the Secretary of
the Interior, may undertake, or make grants, cooperative
agreements, contracts (including agreements with departments,
agencies, and instrumentalities of the Federal Government) or
other transactions for research, development, and deployment
of new technologies in eligible areas that will--
``(A) conserve resources;
``(B) prevent or mitigate adverse environmental impact;
``(C) improve visitor mobility, accessibility, and
enjoyment; and
``(D) reduce pollution (including noise pollution and
visual pollution).
``(2) The Secretary may request and receive appropriate
information from any source.
``(3) Grants, cooperative agreements, contracts or other
transactions under paragraph (1) shall be awarded from
amounts allocated under subsection (c)(1).
``(k) Innovative Financing.--A qualified project receiving
financial assistance under this section shall be eligible for
funding through a state infrastructure bank or other
innovative financing mechanism available to finance an
eligible project under this chapter.
``(l) Reports.--
``(1) In general.--The Secretary, in consultation with the
Secretary of the Interior, shall annually submit a report on
the allocation of amounts made available to assist qualified
projects under this section to--
``(A) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
``(B) the Committee on Transportation and Infrastructure of
the House of Representatives.
``(2) Annual and supplemental reports.--The report required
under paragraph (1) shall be included in the report submitted
under section 5309(m).''.
(b) Conforming Amendments.--The table of sections for
chapter 53 is amended by inserting after the item relating to
section 5315 the following:

``5316. Alternative transportation in parks and public lands.''.

SEC. 3042. OBLIGATION CEILING.

Notwithstanding any other provision of law, the total of
all obligations from amounts made available from the Mass
Transit Account of the Highway Trust Fund by, and amounts
appropriated under, subsections (a) through (c) of section
5338 of title 49, United States Code, shall not exceed--
(1) $7,265,876,900 for fiscal year 2004;
(2) $8,650,000,000 for fiscal year 2005;
(3) $9,085,123,000 for fiscal year 2006;
(4) $9,600,000,000 for fiscal year 2007;
(5) $10,490,000,000 for fiscal year 2008; and
(6) $11,430,000,000 for fiscal year 2009.

SEC. 3043. ADJUSTMENTS FOR THE SURFACE TRANSPORTATION
EXTENSION ACT OF 2003.

(a) In General.--Notwithstanding any other provision of
law, the Secretary shall reduce the total apportionments and
allocations made for fiscal year 2004 to each grant recipient
under section 5338 of title 49, United States Code, by the
amount apportioned to that recipient pursuant to section 8 of
the Surface Transportation Extension Act of 2003 (117 Stat.
1121).
(b) Fixed Guideway Modernization Adjustment.--In making the
apportionments described in subsection (a), the Secretary
shall adjust the amount apportioned for fiscal year 2004 to
each urbanized area for fixed guideway modernization to
reflect the apportionment method set forth in 5337(a) of
title 49, United States Code.

SEC. 3044. INTERMODAL PASSENGER FACILITIES.

(a) In General.--Chapter 55 of title 49, United States
Code, is amended by adding at the end the following:

``SUBCHAPTER III--INTERMODAL PASSENGER FACILITIES

Sec. 5571. Policy and purposes

``(a) Development and Enhancement of Intermodal Passenger
Facilities.--It is in the economic interest of the United
States to improve the efficiency of public surface
transportation modes by ensuring their connection with and
access to intermodal passenger terminals, thereby
streamlining the transfer of passengers among modes,
enhancing travel options, and increasing passenger
transportation operating efficiencies.
``(b) General Purposes.--The purposes of this subchapter
are to accelerate intermodal integration among North
America's passenger transportation modes through--
``(1) ensuring intercity public transportation access to
intermodal passenger facilities;
``(2) encouraging the development of an integrated system
of public transportation information; and
``(3) providing intercity bus intermodal passenger facility
grants.

Sec. 5572. Definitions

``In this subchapter--
``(1) `capital project' means a project for--
``(A) acquiring, constructing, improving, or renovating an
intermodal facility that is related physically and
functionally to intercity bus service and establishes or
enhances coordination between intercity bus service and
transportation, including aviation, commuter rail, intercity
rail, public transportation, seaports, and the National
Highway System, such as physical infrastructure associated
with private bus operations at existing and new intermodal
facilities, including special lanes, curb cuts, ticket kiosks
and counters, baggage and package express storage, employee
parking, office space, security, and signage; and
``(B) establishing or enhancing coordination between
intercity bus service and transportation, including aviation,
commuter rail, intercity rail, public transportation, and the
National Highway System through an integrated system of
public transportation information.
``(2) `commuter service' means service designed primarily
to provide daily work trips within the local commuting area.
``(3) `intercity bus service' means regularly scheduled bus
service for the general public which operates with limited
stops over fixed routes connecting two or more urban areas
not in close proximity, which has the capacity for
transporting baggage carried by passengers, and which makes
meaningful connections with scheduled intercity bus service
to more distant points, if such service is available and may
include package express service, if incidental to passenger
transportation, but does not include air, commuter, water or
rail service.
``(4) `intermodal passenger facility' means passenger
terminal that does, or can be modified to, accommodate
several modes of

[[Page S885]]

transportation and related facilities, including some or all
of the following: intercity rail, intercity bus, commuter
rail, intracity rail transit and bus transportation, airport
limousine service and airline ticket offices, rent-a-car
facilities, taxis, private parking, and other transportation
services.
``(5) `local governmental authority' includes--
``(A) a political subdivision of a State;
``(B) an authority of at least one State or political
subdivision of a State;
``(C) an Indian tribe; and
``(D) a public corporation, board, or commission
established under the laws of the State.
``(6) `owner or operator of a public transportation
facility' means an owner or operator of intercity-rail,
intercity-bus, commuter-rail, commuter-bus, rail-transit,
bus-transit, or ferry services.
``(7) `recipient' means a State or local governmental
authority or a nonprofit organization that receives a grant
to carry out this section directly from the Federal
government.
``(8) `Secretary' means the Secretary of Transportation.
``(9) `State' means a State of the United States, the
District of Columbia, Puerto Rico, the Northern Mariana
Islands, Guam, American Samoa, and the Virgin Islands.
``(10) `urban area' means an area that includes a
municipality or other built-up place that the Secretary,
after considering local patterns and trends of urban growth,
decides is appropriate for a local public transportation
system to serve individuals in the locality.

``Sec. 5573. Assurance of access to intermodal passenger
facilities

``Intercity buses and other modes of transportation shall,
to the maximum extent practicable, have access to publicly
funded intermodal passenger facilities, including those
passenger facilities seeking funding under section 5574.

``Sec. 5574. Intercity bus intermodal passenger facility
grants

``(a) General Authority.--The Secretary of Transportation
may make grants under this section to recipients in financing
a capital project only if the Secretary finds that the
proposed project is justified and has adequate financial
commitment.
``(b) Competitive Grant Selection.--The Secretary shall
conduct a national solicitation for applications for grants
under this section. Grantees shall be selected on a
competitive basis.
``(c) Share of Net Project Costs.--A grant shall not exceed
50 percent of the net project cost, as determined by the
Secretary.
``(d) Regulations.--The Secretary may promulgate such
regulations as are necessary to carry out this section.

``Sec. 5575. Funding

``(a) Highway Account.--
``(1) There is authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit Account) to
carry out this subchapter $10,000,000 for each of fiscal
years 2005 through 2009.
``(2) The funding made available under paragraph (1) shall
be available for obligation in the same manner as if such
funds were apportioned under chapter 1 of title 23 and shall
be subject to any obligation limitation imposed on funds for
Federal-aid highways and highway safety construction
programs.
``(b) Period of Availability.--Amounts made available under
subsection (a) shall remain available until expended.''.
(b) Conforming Amendment.--The chapter analysis for chapter
55 of title 49, United States Code, is amended by adding at
the end the following:

``Subchapter III--Intermodal Passenger Facilities

Sec.
``5571. Policy and Purposes.
``5572. Definitions.
``5573. Assurance of access to intermodal facilities.
``5574. Intercity bus intermodal facility grants.
``5575. Funding.''.

TITLE IV--SURFACE TRANSPORTATION SAFETY

SEC. 4001. SHORT TITLE.

This title may be cited as the ``Surface Transportation
Safety Reauthorization Act of 2004''.

Subtitle A--Highway Safety

Part 1--Highway Safety Grant Program

SEC. 4101. SHORT TITLE; AMENDMENT OF TITLE 23, UNITED STATES
CODE.

(a) Short Title.--This subtitle may be cited as the
``Highway Safety Grant Program Reauthorization Act of 2004''.
(b) Amendment of Title 23, United States Code.--Except as
otherwise expressly provided, whenever in this subtitle an
amendment or repeal is expressed in terms of an amendment to,
or a repeal of, a section or other provision, the reference
shall be considered to be made to a section or other
provision of title 23, United States Code.

SEC. 4102. AUTHORIZATION OF APPROPRIATIONS.

(a) Amounts for Fiscal Years 2004 Through 2009.--There are
authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) to the Secretary of
Transportation for the National Highway Traffic Safety
Administration the following:
(1) To carry out the Highway Safety Programs under section
402 of title 23, United States Code, $170,000,000 in fiscal
year 2004, $174,000,000 in fiscal year 2005, $179,000,000 in
fiscal year 2006, $185,000,000 in fiscal year 2007,
$204,000,000 in fiscal year 2008, and $207,000,000 in fiscal
year 2009.
(2) To carry out the Highway Safety Research and Outreach
Programs under section 403 of title 23, United States Code,
$110,000,000 in fiscal year 2004, $112,000,000 in fiscal year
2005, $114,000,000 in fiscal year 2006, $116,000,000 in
fiscal year 2007, $118,000,000 in fiscal year 2008, and
$120,000,000 in fiscal year 2009.
(3) To carry out the Occupant Protection Programs under
section 405 of title 23, United States Code, $120,000,000 in
fiscal year 2004, $122,000,000 in fiscal year 2005,
$124,000,000 in fiscal year 2006, $126,000,000 in fiscal year
2007, $128,000,000 in fiscal year 2008, and $130,000,000 in
fiscal year 2009.
(4) To carry out the Emergency Medical Services Program
under section 407A of title 23, United States Code,
$5,000,000 in each of fiscal years 2004 through 2009.
(5) To carry out the Impaired Driving Program under section
410 of title 23, United States Code, $85,000,000 in fiscal
year 2004, $89,000,000 in fiscal year 2005, $93,000,000 in
fiscal year 2006, $110,000,000 in fiscal year 2007,
$126,000,000 in fiscal year 2008, and $130,000,000 in fiscal
year 2009.
(6) To carry out the State Traffic Safety Information
System Improvements under section 412 of title 23, United
States Code, $45,000,000 in each of fiscal years 2004 through
2009.
(7) To carry out chapter 303 of title 49, United States
Code, $4,000,000 for each of fiscal years 2004 through 2009.
(b) Prohibition on Other Uses.--Except as otherwise
provided in this title, the amounts allocated from the
Highway Trust Fund for programs provided for in chapter 4 of
title 23, United States Code, shall only be used for such
programs and may not be used by States or local governments
for construction purposes.
(c) Effect of Revenue Deficiency.--If revenue to the
Highway Trust Fund for a given fiscal year is lower than the
amounts authorized by this subtitle, any subsequent
reductions in the overall funding for highway and transit
programs shall not affect the highway safety programs
provided for in chapter 4 of title 23, United States Code.
(d) Proportional Increases.--For each fiscal year from 2004
through 2009, if revenue to the Highway Trust Fund increases
above the amounts for each such fiscal year set forth in the
fiscal year 2004 joint budget resolution, then the amounts
made available in such year for the programs in sections 402,
405, and 410 shall increase by the same percentage.

SEC. 4103. HIGHWAY SAFETY PROGRAMS.

(a) Programs To Be Included.--
(1) Motor vehicle airbags public awareness.--Section
402(a)(2) is amended by striking `` vehicles and to increase
public awareness of the benefit of motor vehicles equipped
with airbags'' and inserting ``vehicles,''.
(2) Aggressive driving.--Section 402(a) is further
amended--
(A) by redesignating clause (6) as clause (7);
(B) by inserting after ``involving school buses,'' at the
end of clause (5) ``(6) to reduce aggressive driving and to
educate drivers about defensive driving,''; and
(C) by inserting ``aggressive driving,'' after ``school bus
accidents,''.
(b) Apportionment.--
(1) Tribal government programs.--Section 402(c) is amended
by striking ``three-fourths of 1 percent'' and inserting ``2
percent''.
(c) Extra Funding for Occupant Protection and Impaired
Driving Programs.--Section 402 is amended by inserting after
subsection (g) the following:
``(h) Grants.--Funds available to States under this section
may be used for making grants of financial assistance for
programs and initiatives authorized by sections 405 and 410
of this title.''.
(d) Law Enforcement Chase Training.--Section 402 is amended
by adding at the end the following:
``(l) Limitation Relating to Law Enforcement Vehicular
Pursuit Training.--No State may receive any funds available
for fiscal years after fiscal year 2004 for programs under
this chapter until the State submits to the Secretary a
written statement that the State actively encourages all
relevant law enforcement agencies in that State to follow the
guidelines established for police chases issued by the
International Association of Chiefs of Police that are in
effect on the date of enactment of the Highway Safety Grant
Program Reauthorization Act of 2004, or as revised and in
effect after that date as determined by the Secretary.
``(m) Consolidation of Grant Applications.--The Secretary
shall establish an approval process by which a State may
apply for all grants included under this chapter through a
single application with a single annual deadline. The Bureau
of Indian Affairs shall establish a similarly simplified
process for applications from Indian tribes.
``(n) Administrative Expenses.--Funds authorized to be
appropriated to carry out this section shall be subject to a
deduction of not to exceed 5 percent for the necessary costs
of administering the provisions of this section, section 405,
section 407A, section 410, and 413 of this chapter.''.

[[Page S886]]

SEC. 4104. HIGHWAY SAFETY RESEARCH AND OUTREACH PROGRAMS.

(a) Revised Authority and Requirements.--Section 403 is
amended to read as follows:

``Sec. 403. Highway safety research and development

``(a) Authority of the Secretary.--The Secretary is
authorized to use funds appropriated to carry out this
section to--
``(1) conduct research on all phases of highway safety and
traffic conditions, including accident causation, highway or
driver characteristics, communications, and emergency care;
``(2) conduct ongoing research into driver behavior and its
effect on traffic safety;
``(3) conduct research on, and launch initiatives to
counter, fatigued driving by drivers of motor vehicles and
distracted driving in such vehicles, including the effect
that the use of electronic devices and other factors deemed
relevant by the Secretary have on driving;
``(4) conduct training or education programs in cooperation
with other Federal departments and agencies, States, private
sector persons, highway safety personnel, and law enforcement
personnel;
``(5) conduct research on, and evaluate the effectiveness
of, traffic safety countermeasures, including seat belts and
impaired driving initiatives; and
``(6) conduct demonstration projects.
``(b) Specific Research Programs.--
``(1) Required programs.--The Secretary shall conduct
research on the following:
``(A) Effects of use of controlled substances.--A study on
the effects of the use of controlled substances on driver
behavior to determine--
``(i) methodologies for measuring driver impairment
resulting from use of the most common controlled substances
(including the use of such substances in combination with
alcohol); and
``(ii) effective and efficient methods for training law
enforcement personnel to detect or measure the level of
impairment of a driver who is under the influence of a
controlled substance by the use of technology or otherwise.
``(B) On-scene motor vehicle collision causation.--A
nationally representative study to collect on-scene motor
vehicle collision data, and to determine crash causation, for
which the Secretary shall enter into a contract with the
National Academy of Sciences to conduct a review of the
research, design, methodology, and implementation of the
study.
``(C) Toll facilities workplace safety.--A study on the
safety of highway toll collection facilities, including toll
booths, conducted in cooperation with State and local highway
safety organizations to determine the safety of highway toll
collection facilities for the toll collectors who work in and
around such facilities and to develop best practices that
would be of benefit to State and local highway safety
organizations. The study shall consider--
``(i) any problems resulting from design or construction of
facilities that contribute to the occurrence of vehicle
collisions with the facilities;
``(ii) the safety of crosswalks used by toll collectors in
transit to and from toll booths;
``(iii) the extent of the enforcement of speed limits at
and in the vicinity of toll facilities;
``(iv) the use of warning devices, such as vibration and
rumble strips, to alert drivers approaching toll facilities;
``(v) the use of cameras to record traffic violations in
the vicinity of toll facilities;
``(vi) the use of traffic control arms in the vicinity of
toll facilities;
``(vii) law enforcement practices and jurisdictional issues
that affect safety at and in the vicinity of toll facilities;
and
``(viii) data (which shall be collected in conducting the
research) regarding the incidence of accidents and injuries
at and around toll booth facilities.
``(2) Time for completion of studies.--The studies
conducted in subparagraphs (A), (B), and (C) of paragraph (1)
may be conducted in concert with other Federal departments
and agencies with relevant expertise. The Secretary shall
submit an annual report to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives
Committee on Transportation and Infrastructure on the
progress of each study conducted under this subsection.
``(3) Ongoing studies.--The studies under subparagraphs (A)
and (B) of paragraph (1) shall be conducted on an ongoing
basis.
``(4) Reports.--
``(A) One-time study.--Not later than 2 years after the
date of enactment of the Highway Safety Grant Program
Reauthorization Act of 2004, the Secretary shall submit a
final report on the study referred to in paragraph (1)(C) to
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives.
``(B) Ongoing studies.--The Secretary shall submit a report
on the studies referred to in paragraph (3) to the Committees
of Congress referred to in subparagraph (A) not later than
December 31, 2005, and shall submit additional reports on
such studies to such committees every 2 years. Such
additional reports shall contain the findings, progress,
remaining challenges, research objectives, and other relevant
data relating to the ongoing studies.
``(c) Nationwide Traffic Safety Campaigns.--
``(1) Requirement for campaigns.--The Administrator of the
National Highway Traffic Safety Administration shall
establish and administer a program under which 3 high-
visibility traffic safety law enforcement campaigns will be
carried out for the purposes specified in paragraph (2) in
each of years 2004 through 2009.
``(2) Purpose.--The purpose of each law enforcement
campaign is to achieve either or both of the following
objectives:
``(A) Reduce alcohol-impaired or drug-impaired operation of
motor vehicles.
``(B) Increase use of seat belts by occupants of motor
vehicles.
``(3) Advertising.--The Administrator may use, or authorize
the use of, funds available under this section to pay for the
development, production, and use of broadcast and print media
advertising in carrying out traffic safety law enforcement
campaigns under this subsection. Consideration shall be given
to advertising directed at non-English speaking populations,
including those who listen, read, or watch nontraditional
media.
``(4) Coordination with states.--The Administrator shall
coordinate with the States in carrying out the traffic safety
law enforcement campaigns under this subsection, including
advertising funded under paragraph (3), with a view to--
``(A) relying on States to provide the law enforcement
resources for the campaigns out of funding available under
this section and sections 402, 405, and 410 of this title;
and
``(B) providing out of National Highway Traffic Safety
Administration resources most of the means necessary for
national advertising and education efforts associated with
the law enforcement campaigns.
``(5) Annual evaluation.--The Secretary shall conduct an
annual evaluation of the effectiveness of such initiatives.
``(6) Funding.--The Secretary shall use $24,000,000 in each
of fiscal years 2004 through 2009 for advertising and
educational initiatives to be carried out nationwide in
support of the campaigns under this section.
``(d) Improving Older Driver Safety.--
``(1) In general.--Of the funds made available under this
section, the Secretary shall allocate $2,000,000 in each of
fiscal years 2004 through 2009 to conduct a comprehensive
research and demonstration program to improve traffic safety
pertaining to older drivers. The program shall--
``(A) provide information and guidelines to assist
physicians and other related medical personnel, families,
licensing agencies, enforcement officers, and various public
and transit agencies in enhancing the safety and mobility of
older drivers;
``(B) improve the scientific basis of medical standards and
screenings strategies used in the licensing of all drivers in
a non-discriminatory manner;
``(C) conduct field tests to assess the safety benefits and
mobility impacts of different driver licensing strategies and
driver assessment and rehabilitation methods;
``(D) assess the value and improve the safety potential of
driver retraining courses of particular benefit to older
drivers; and
``(E) conduct other activities to accomplish the objectives
of this action.
``(2) Formulation of plan.--After consultation with
affected parties, the Secretary shall formulate an older
driver traffic safety plan to guide the design and
implementation of this program. The plan shall be submitted
to the House of Representatives Committee on Transportation
and Infrastructure and the Senate Committee on Commerce,
Science, and Transportation within 180 days after the date of
enactment of the Highway Safety Grant Program Reauthorization
Act of 2004.
``(e) Law Enforcement Training.--
``(1) Requirement for program.--The Administrator of the
National Highway Traffic Safety Administration shall carry
out a program to train law enforcement personnel of each
State and political subdivision thereof in police chase
techniques that are consistent with the police chase
guidelines issued by the International Association of Chiefs
of Police.
``(2) Amount for program.--Of the amount available for a
fiscal year to carry out this section, $200,000 shall be
available for carrying out this subsection.
``(f) International Cooperation.--
``(1) Authority.--The Administrator of the National Highway
Traffic Safety Administration may participate and cooperate
in international activities to enhance highway safety.
``(2) Amount for program.--Of the amount available for a
fiscal year to carry out this section, $200,000 may be used
for activities authorized under paragraph (1).''.
(b) Study on refusal of intoxication testing.--
(1) Requirement for study.--In addition to studies under
section 403 of title 23, United States Code, the Secretary of
Transportation shall carry out a study of the frequency with
which persons arrested for the offense of operating a motor
vehicle under the influence of alcohol and persons arrested
for the offense of operating a motor vehicle while
intoxicated refuse to take a test to determine blood alcohol
concentration levels and the effect such refusals have on the
ability of States to prosecute such persons for those
offenses.
(2) Consultation.--In carrying out the study under this
section, the Secretary shall consult with the Governors of
the States, the States' Attorneys General, and the United
States Sentencing Commission.

[[Page S887]]

(3) Report.--
(A) requirement for report.--Not later than 1 year after
the date of the enactment of this Act, the Secretary shall
submit a report on the results of the study to the Committee
on Commerce, Science, and Transportation of the Senate and
the Committee on Transportation and Infrastructure of the
House of Representatives.
(B) Content.--The report shall include any recommendation
for legislation, including any recommended model State
legislation, and any other recommendations that the Secretary
considers appropriate for implementing a program designed to
decrease the occurrence refusals by arrested persons to
submit to a test to determine blood alcohol concentration
levels.

SEC. 4105. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE
TECHNICAL CORRECTION.

Section 404(d) is amended by striking ``Commerce'' and
inserting ``Transportation''.

SEC. 4106. OCCUPANT PROTECTION GRANTS.

Section 405 is amended--
(1) by striking the second sentence of subsection (a)(1);
(2) by striking ``Transportation Equity Act for the 21st
Century.'' in subsection (a)(2) and inserting ``Highway
Safety Grant Program Reauthorization Act of 2004.'';
(3) by striking subsections (a)(3) and (4), (b), (c), and
(d) and redesignating subsections (e) and (f) as subsections
(d) and (e), respectively; and
(4) by inserting after subsection (a) the following:
``(b) Occupant Protection Grants.--
``(1) In general.--In addition to the grants authorized by
subsection (a), the Secretary shall make grants in accordance
with this subsection.
``(2) Safety belt performance grants.--
``(A) Primary safety belt use law.--
``(i) For fiscal years 2004 and 2005, the Secretary shall
make a grant to each State that enacted, and is enforcing, a
primary safety belt use law for all passenger motor vehicles
that became effective by December 31, 2003.
``(ii) For each of fiscal years 2004 through 2009, the
Secretary shall, after making grants under clause (i) of this
subparagraph, make a one-time grant to each State that either
enacts for the first time after December 31, 2003, and has in
effect a primary safety belt use law for all passenger motor
vehicles, or, in the case of a State that does not have such
a primary safety belt use law, has a State safety belt use
rate in the preceding fiscal year of at least 90 percent, as
measured under criteria determined by the Secretary.
``(iii) Of the funds authorized for grants under this
subsection, $100,000,000 in each of fiscal years 2004 through
2009 shall be available for grants under this paragraph. The
amount of a grant available to a State in each of fiscal
years 2004 and 2005 under clause (i) of this subparagraph
shall be equal to \1/2\ of the amount of funds apportioned to
the State under section 402(c) for fiscal year 2003. The
amount of a grant available to a State in fiscal year 2004 or
in a subsequent fiscal year under clause (ii) of this
subparagraph shall be equal to 5 times the amount apportioned
to the State for fiscal year 2003 under section 402(c). A
State that receives a grant under clause (ii) of this
subparagraph is ineligible to receive funding under
subparagraph (B) for that fiscal year and the following
fiscal year. The Federal share payable for grants under this
subparagraph shall be 100 percent. If the total amount of
grants under clause (ii) of this subparagraph for a fiscal
year exceeds the amount of funds available in the fiscal
year, grants shall be made to each eligible State, in the
order in which its primary safety belt use law became
effective or its safety belt use rate reached 90 percent,
until the funds for the fiscal year are exhausted. A State
that does not receive a grant for which it is eligible in a
fiscal year shall receive the grant in the succeeding fiscal
year so long as its law remains in effect or its safety belt
use rate remains at or above 90 percent. If the total amount
of grants under this subparagraph for a fiscal year is less
than the amount available in the fiscal year, the Secretary
shall use any funds that exceed the total amount for grants
under subparagraph (B) of this paragraph.
``(B) Safety belt use rate.--
``(i) For each fiscal year, from 2004 through 2009, the
funds authorized for a grant under this subparagraph shall be
awarded to States that increase their measured safety belt
use rate, as determined by the Secretary, by decreasing the
proportion of non-users of safety belts by 10 percent, as
compared to the proportion of non-users, in the preceding
fiscal year.
``(ii) Each State that meets the requirement of clause (i)
of this subparagraph shall be apportioned an amount of funds
that is equal to the amount available under this subparagraph
for the relevant fiscal year multiplied by the ratio that the
funds apportioned to the State under section 402 for such
fiscal year bear to the funds apportioned under section 402
for such fiscal year to all states that qualify for a grant
for such fiscal year.
``(iii) Of the funds authorized for grants under this
subsection, $20,000,000 for fiscal year 2004, $22,000,000 for
fiscal year 2005, $24,000,000 for fiscal year 2006,
$26,000,000 for fiscal year 2007, $28,000,000 for fiscal year
2008, and $30,000,000 for fiscal year 2009 shall be available
for safety belt use rate grants under this subparagraph.
``(iv) The Federal share payable for grants under this
subparagraph shall be 100 percent.
``(c) Use of Grants.--A State allocated an amount for a
grant under subparagraph (A) or (B) of subsection (b)(2) may
use the amount for activities eligible for assistance under
sections 402, 405, and 410 of title 23, United States
Code.''.

SEC. 4107. SCHOOL BUS DRIVER TRAINING.

Section 406(c) is amended by striking the first, second,
and third sentences.

SEC. 4108. EMERGENCY MEDICAL SERVICES.

(a) Federal Coordination and Enhanced Support of Emergency
Medical Services.--Chapter 4 is amended by inserting after
section 407 the following:

``Sec. 407A. Federal coordination and enhanced support of
emergency medical services

``(a) Federal Interagency Committee on Emergency Medical
Services.--
``(1) Establishment.--The Secretary of Transportation and
the Secretary of Homeland Security, through the Under
Secretary for Emergency Preparedness and Response, shall
establish a Federal Interagency Committee on Emergency
Medical Services. In establishing the Interagency Committee,
the Secretary of Transportation and the Secretary of Homeland
Security through the Under Secretary for Emergency
Preparedness and Response shall consult with the Secretary of
Health and Human Services.
``(2) Membership.--The Interagency Committee shall consist
of the following officials, or their designees:
``(A) The Administrator, National Highway Traffic Safety
Administration.
``(B) The Director, Preparedness Division, Emergency
Preparedness and Response Directorate, Department of Homeland
Security.
``(C) The Administrator, Health Resources and Services
Administration, Department of Health and Human Services.
``(D) The Director, Centers for Disease Control and
Prevention, Department of Health and Human Services.
``(E) The Administrator, United States Fire Administration,
Emergency Preparedness and Response Directorate, Department
of Homeland Security.
``(F) The Director, Center for Medicare and Medicaid
Services, Department of Health and Human Services.
``(G) The Undersecretary of Defense for Personnel and
Readiness.
``(H) The Director, Indian Health Service, Department of
Health and Human Services.
``(I) The Chief, Wireless Telecom Bureau, Federal
Communications Commission.
``(J) A representative of any other Federal agency
identified by the Secretary of Transportation or the
Secretary of Homeland Security through the Under Secretary
for Emergency Preparedness and Response, in consultation with
the Secretary of Health and Human Services, as having a
significant role in relation to the purposes of the
Interagency Committee.
``(3) Purposes.--The purposes of the Interagency Committee
are as follows:
``(A) To ensure coordination among the Federal agencies
involved with State, local, tribal, or regional emergency
medical services and 9-1-1 systems.
``(B) To identify State, local, tribal, or regional
emergency medical services and 9-1-1 needs.
``(C) To recommend new or expanded programs, including
grant programs, for improving State, local, tribal, or
regional emergency medical services and implementing improved
emergency medical services communications technologies,
including wireless 9-1-1.
``(D) To identify ways to streamline the process through
which Federal agencies support State, local, tribal or
regional emergency medical services.
``(E) To assist State, local, tribal or regional emergency
medical services in setting priorities based on identified
needs.
``(F) To advise, consult, and make recommendations on
matters relating to the implementation of the coordinated
State emergency medical services programs.
``(4) Administration.--The Administrator of the National
Highway Traffic Safety Administration, in cooperation with
the Director, Preparedness Division, Emergency Preparedness
and Response Directorate, Department of Homeland Security,
shall provide administrative support to the Interagency
Committee, including scheduling meetings, setting agendas,
keeping minutes and records, and producing reports.
``(5) Leadership.--The members of the Interagency Committee
shall select a chairperson of the Committee annually.
``(6) Meetings.--The Interagency Committee shall meet as
frequently as is determined necessary by the chairperson of
the Committee.
``(7) Annual reports.--The Interagency Committee shall
prepare an annual report to Congress on the Committee's
activities, actions, and recommendations.
``(b) Coordinated Nationwide Emergency Medical Services
Program.--
``(1) Program requirement.--The Secretary of
Transportation, acting through the Administrator of the
National Highway Traffic Safety Administration, shall
coordinate with officials of other Federal departments and
agencies, and may assist State and local governments and
emergency medical services organizations (whether or not a
firefighter organization), private industry, and other
interested parties, to ensure the development and
implementation of a coordinated

[[Page S888]]

nationwide emergency medical services program that is
designed to strengthen transportation safety and public
health and to implement improved emergency medical services
communication systems, including 9-1-1.
``(2) Coordinated state emergency medical services
program.--Each State shall establish a program, to be
approved by the Secretary, to coordinate the emergency
medical services and resources deployed throughout the State,
so as to ensure--
``(A) improved emergency medical services communication
systems, including 9-1-1;
``(B) utilization of established best practices in system
design and operations;
``(C) implementation of quality assurance programs; and
``(D) incorporation of data collection and analysis
programs that facilitate system development and data linkages
with other systems and programs useful to emergency medical
services.
``(3) Administration of state programs.--The Secretary may
not approve a coordinated State emergency medical services
program under this subsection unless the program--
``(A) provides that the Governor of the State is
responsible for its administration through a State office of
emergency medical services that has adequate powers and is
suitably equipped and organized to carry out such program and
coordinates such program with the highway safety office of
the State; and
``(B) authorizes political subdivisions of the State to
participate in and receive funds under such program,
consistent with a goal of achieving statewide coordination of
emergency medical services and 9-1-1 activities.
``(4) Funding.--
``(A) Use of funds.--Funds authorized to be appropriated to
carry out this subsection shall be used to aid the States in
conducting coordinated emergency medical services and 9-1-1
programs as described in paragraph (2).
``(B) Apportionment.--
``(i) Apportionment formula.--The funds shall be
apportioned as follows: 75 percent in the ratio that the
population of each State bears to the total population of all
the States, as shown by the latest available Federal census,
and 25 percent in the ratio that the public road mileage in
each State bears to the total public road mileage in all
States. For the purpose of this subparagraph, a `public road'
means any road under the jurisdiction of and maintained by a
public authority and open to public travel. Public road
mileage as used in this subsection shall be determined as of
the end of the calendar year prior to the year in which the
funds are apportioned and shall be certified by the Governor
of the State and subject to approval by the Secretary.
``(ii) Minimum apportionment.--The annual apportionment to
each State shall not be less than \1/2\ of 1 percent of the
total apportionment, except that the apportionment to the
Secretary of the Interior on behalf of Indian tribes shall
not be less than \3/4\ of 1 percent of the total
apportionment, and the apportionments to the Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands shall not be less than \1/4\ of 1 percent of
the total apportionment.
``(5) Applicability of chapter 1.--Section 402(d) of this
title shall apply in the administration of this subsection.
``(6) Federal share.--The Federal share of the cost of a
project or program funded under this subsection shall be 80
percent.
``(7) Application in indian country.--
``(A) Use of terms.--For the purpose of application of this
subsection in Indian country, the terms `State' and `Governor
of the State' include the Secretary of the Interior and the
term `political subdivisions of the State' includes an Indian
tribe.
``(B) Indian country defined.--In this subsection, the term
`Indian country' means--
``(i) all land within the limits of any Indian reservation
under the jurisdiction of the United States, notwithstanding
the issuance of any patent and including rights-of-way
running through the reservation;
``(ii) all dependent Indian communities within the borders
of the United States, whether within the original or
subsequently acquired territory thereof and whether within or
without the limits of a State; and
``(iii) all Indian allotments, the Indian titles to which
have not been extinguished, including rights-of-way running
through such allotments.
``(c) State Defined.--In this section, the term `State'
means each of the 50 States, the District of Columbia, Puerto
Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the
Secretary of the Interior on behalf of Indian tribes.
``(d) Construction With Respect to District of Columbia.--
In the administration of this section with respect to the
District of Columbia, a reference in this section to the
Governor of a State shall refer to the Mayor of the District
of Columbia.''.
(b) Clerical Amendment.--The chapter analysis for chapter 4
is amended by inserting after the item relating to section
407 the following:

``407A. Federal coordination and enhanced support of emergency medical
services.''.

SEC. 4109. REPEAL OF AUTHORITY FOR ALCOHOL TRAFFIC SAFETY
PROGRAMS.

(a) Repeal.--Section 408 is repealed.
(b) Clerical Amendment.--The chapter analysis for chapter 4
is amended by striking the item relating to section 408.

SEC. 4110. IMPAIRED DRIVING PROGRAM.

(a) Maintenance of Effort.--Section 410(a)(2) is amended by
striking ``the Transportation Equity Act for the 21st
Century'' and inserting ``the Highway Safety Grant Program
Reauthorization Act of 2004''.
(b) Revised Grant Authority.--Section 410 is amended--
(1) by striking paragraph (3) of subsection (a) and
redesignating paragraph (4) as paragraph (3); and
(2) by striking subsections (b) through (f) and inserting
the following:
``(b) Program-Related Eligibility Requirements.--To be
eligible for a grant under this section, a State shall--
``(1) carry out each of the programs and activities
required under subsection (c);
``(2) comply with the additional requirements set forth in
subsection (d) with respect to such programs and activities;
and
``(3) comply with any additional requirements of the
Secretary.
``(c) Required State Programs and Activities.--For the
purpose of subsection (b)(1), a State must meet the
requirements of 4 of the following 6 criteria in order to
receive a grant under this section:
``(1) Check-point, saturation patrol program.--
``(A) A State program to conduct of a series of high-
visibility, Statewide law enforcement campaigns in which law
enforcement personnel monitor for impaired driving, either
through use of check-points or saturation patrols, on a
nondiscriminatory, lawful basis for the purpose of
determining whether the operators of the motor vehicles are
driving while under the influence of alcohol or controlled
substances that meets the requirements of subparagraphs (B)
and (C).
``(B) A program meets the requirements of this subparagraph
only if a State organizes the campaigns in cooperation with
related national campaigns organized by the National Highway
Traffic Safety Administration, but this subparagraph does not
preclude a State from initiating high-visibility, Statewide
law enforcement campaigns independently of the cooperative
efforts.
``(C) A program meets the requirements of this subparagraph
only if, for each fiscal year, a State demonstrates to the
Secretary that the State and the political subdivisions of
the State that receive funds under this section have
increased, in the aggregate, the total number of impaired
driving law enforcement activities, as described in
subparagraph (A) (or any other similar activity approved by
the Secretary), initiated in such State during the preceding
fiscal year by a factor that the Secretary determines
meaningful for the State over the number of such activities
initiated in such State during the preceding fiscal year,
which shall not be less than 5 percent.
``(2) Prosecution and adjudication program.--For grants
made during fiscal years after fiscal year 2004, a State
prosecution and adjudication program under which--
``(A) judges and prosecutors are actively encouraged to
prosecute and adjudicate cases of defendants who repeatedly
commit impaired driving offenses by reducing the use of State
diversion programs, or other means that have the effect of
avoiding or expunging a permanent record of impaired driving
in such cases;
``(B) the courts in a majority of the judicial
jurisdictions of the State are monitored on the courts'
adjudication of cases of impaired driving offenses; or
``(C) annual Statewide outreach is provided for judges and
prosecutors on innovative approaches to the prosecution and
adjudication of cases of impaired driving offenses that have
the potential for significantly improving the prosecution and
adjudication of such cases.
``(3) Impaired operator information system.--
``(A) A State impaired operator information system that--
``(i) tracks drivers who are arrested or convicted for
violation of laws prohibiting impaired operation of motor
vehicles;
``(ii) includes information about each case of an impaired
driver beginning at the time of arrest through case
disposition, including information about any trial, plea,
plea agreement, conviction or other disposition, sentencing
or other imposition of sanctions, and substance abuse
treatment;
``(iii) provides--

``(I) accessibility to the information for law enforcement
personnel Statewide and for United States law enforcement
personnel; and
``(II) linkage for the sharing of the information and of
the information in State traffic record systems among
jurisdictions and appropriate agencies, court systems and
offices of the States;

``(iv) shares information with the National Highway Traffic
Safety Administration for compilation and use for the
tracking of impaired operators of motor vehicles who move
from State to State; and
``(v) meets the requirements of subparagraphs (B), (C), and
(D) of this paragraph, as applicable.
``(B) A program meets the requirements of this subparagraph
only if, during fiscal years 2004 and 2005, a State--
``(i) assess the system used by the State for tracking
drivers who are arrested or convicted for violation of laws
prohibiting impaired operation of motor vehicles;
``(ii) identifies ways to improve the system, as well as to
enhance the capability of

[[Page S889]]

the system to provide information in coordination with
impaired operator information systems of other States; and
``(iii) develops a strategic plan that sets forth the
actions to be taken and the resources necessary to achieve
the identified improvements and to enhance the capability for
coordination with the systems of other States.
``(C) A program meets the requirements of this subparagraph
only if, in each of fiscal years 2006, 2007, and 2008, a
State demonstrates to the Secretary that the State has made
substantial and meaningful progress in improving the State's
impaired operator information system, and makes public a
report on the progress of the information system.
``(D) A program meets the requirements of this subparagraph
only if, in fiscal year 2009, a State demonstrates to the
Secretary that the State's impaired operator information
system meets the basic standards for such systems as
determined by the Secretary.
``(4) Impaired driving performance.--The percentage of
fatally-injured drivers with 0.08 percent or greater blood
alcohol concentration in the State has decreased in each of
the 2 most recent calendar years.
``(5) Impaired driving task force.--
Establishment of an impaired driving task force that
involves all relevant State, tribal, and local agencies
responsible for reducing alcohol impairment and impaired
driving and meets the requirements of subparagraphs (B), (C),
and (D). The purpose of the task force is to oversee efforts
to reduce impaired driving by strengthening applicable laws,
regulations, programs, and policies, and to coordinate
impaired driving resources and programs among different
jurisdictions. The impaired driving task force shall include
State, Tribal, and local law enforcement, motor carrier
safety agencies, and State alcohol and drug abuse prevention
agencies, State and local court systems, State drivers
licensing agencies, the State highway safety office, and
State parole and probation agencies.
``(B) In fiscal year 2004 and fiscal year 2005, the State
shall establish a statewide impaired driving task force to
assess the State's impaired driving system, identify the
opportunities for improvements in the system, and develop a
strategic plan that outlines the steps and resources
necessary to improve the system and enhance coordination
among State and local agencies responsible for reducing
impaired driving.
``(C) In each subsequent fiscal year, the State
demonstrates progress in the implementation of top priorities
of the strategic plan.
``(D) The State provides the Secretary a copy of the
strategic plan developed under subparagraph and in subsequent
years, a report detailing the progress of the strategic plan.
The Secretary shall make available for public viewing each
strategic plan and progress report.
``(6) Impaired driving courts.--
``(A) In general.--A program to consolidate and coordinate
impaired driving cases into courts that specialize in
impaired driving cases, with the emphasis on tracking and
processing offenders of impaired driving laws, (hereinafter
referred to as DWI courts) that meets the requirements of
this paragraph.
``(B) Characteristics.--A DWI Court is a distinct function
performed by a court system for the purpose of changing the
behavior of alcohol or drug dependent offenders arrested for
driving while impaired. A DWI Court can be a dedicated court
with dedicated personnel, including judges, prosecutors and
probation officers. A DWI court may be an existing court
system that serves the following essential DWI Court
functions:
``(i) A DWI Court performs an assessment of high-risk
offenders utilizing a team headed by the judge and including
all criminal justice stakeholders (prosecutors, defense
attorneys, probations officers, law enforcement personnel and
others) along with alcohol/drug treatment professionals.
``(ii) The DWI Court team recommends a specific plea
agreement or contract for each offender that can include
incarceration, treatment, and close community supervision.
The agreement maximizes the probability of rehabilitation and
minimizes the likelihood of recidivism.
``(iii) Compliance with the agreement is verified with
thorough monitoring and frequent alcohol testing. Periodic
status hearings assess offender progress and allow an
opportunity for modifying the sentence if necessary.
``(C) In the first year of operation, the States shall
assess the number of court systems in its jurisdiction that
are consistently performing the DWI Court functions.
``(D) In the second year of operation, the State shall
develop a strategic plan for increasing the number of courts
performing the DWI function.
``(E) In subsequent years of operation, the State shall
demonstrate progress in increasing the number of DWI Courts
and in increasing the number of high-risk offenders
participating in and successfully completing DWI Court
agreements.
``(d) Uses of Grants.--Grants made under this section may
be used for programs and activities described in subsection
(c) and to defray the following costs:
``(1) Labor costs, management costs, and equipment
procurement costs for the high-visibility, Statewide law
enforcement campaigns under subsection (c)(1).
``(2) The costs of the training of law enforcement
personnel and the procurement of technology and equipment,
such as and including video equipment and passive alcohol
sensors, to counter directly impaired operation of motor
vehicles.
``(3) The costs of public awareness, advertising, and
educational campaigns that publicize use of sobriety check
points or increased law enforcement efforts to counter
impaired operation of motor vehicles.
``(4) The costs of public awareness, advertising, and
educational campaigns that target impaired operation of motor
vehicles by persons under 34 years of age.
``(5) The costs of the development and implementation of a
State impaired operator information system described in
subsection (c)(3).
``(e) Additional Authorities for Certain Authorized Uses.--
``(1) Combination of grant proceeds.--Grant funds used for
a campaign under subsection (d)(3) may be combined, or
expended in coordination, with proceeds of grants under
section 402 of this title.
``(2) Coordination of uses.--Grant funds used for a
campaign under paragraph (3) or (4) of subsection (d) may be
expended--
``(A) in coordination with employers, schools, entities in
the hospitality industry, and nonprofit traffic safety
groups; and
``(B) in coordination with sporting events and concerts and
other entertainment events.
``(g) Funding.--
``(1) In general.--Except as provided in paragraph (2),
grant funding under this section shall be allocated among
eligible States on the basis of the apportionment formula
that applies for apportionments under section 402(c) of this
title.
``(2) High fatality-rate states.--The amount of the grant
funds allocated under this subsection to each of the 10
States with the highest impaired driving-related fatality
rate for the most recent fiscal year for which the data is
available preceding the fiscal year of the allocation shall
be twice the amount that, except for this subparagraph, would
otherwise be allocated to the State under paragraph (1).
``(h) Use of Funds by High Fatality-Rate States.--
``(1) Required uses.--At least \1/2\ of the amounts
allocated to States under subsection (g)(2) shall be used for
the program described in subsection (c)(1).
``(2) Requirement for plan.--A State receiving an
allocation of grant funds under subsection (g)(2) shall
expend those funds only after consulting with the
Administrator of the National Highway Traffic Safety
Administration regarding such expenditures.
``(i) Definitions.--In this section:
``(1) Impaired operator.--The term `impaired operator'
means a person who, while operating a motor vehicle--
``(A) has a blood alcohol content of 0.08 percent or
higher; or
``(B) is under the influence of a controlled substance.
``(2) Impaired driving-related fatality rate.--The term
`impaired driving-related fatality rate' means the rate of
the fatal accidents that involve impaired drivers while
operating motor vehicles, as calculated in accordance with
regulations which the Administrator of the National Highway
Traffic Safety Administration shall prescribe.''.
(c) NHTSA To Issue Regulations.--Not later than 12 months
after the enactment of the Highway Safety Grant Program
Reauthorization Act of 2004, the National Highway Traffic
Safety Administration shall issue guidelines to the States
specifying the types and formats of data that States should
collect relating to drivers who are arrested or convicted for
violation of laws prohibiting the impaired operation of motor
vehicles.

SEC. 4111. STATE TRAFFIC SAFETY INFORMATION SYSTEM
IMPROVEMENTS.

(a) Grant Program Authority.--Chapter 4 is amended by
adding at the end the following:

``Sec. 412. State traffic safety information system
improvements

``(a) Grant Authority.--Subject to the requirements of this
section, the Secretary shall make grants of financial
assistance to eligible States to support the development and
implementation of effective programs by such States to--
``(1) improve the timeliness, accuracy, completeness,
uniformity, integration, and accessibility of the safety data
of the State that is needed to identify priorities for
national, State, and local highway and traffic safety
programs;
``(2) evaluate the effectiveness of efforts to make such
improvements;
``(3) link the State data systems, including traffic
records, with other data systems within the State, such as
systems that contain medical, roadway, and economic data; and
``(4) improve the compatibility and interoperability of the
data systems of the State with national data systems and data
systems of other States and enhance the ability of the
Secretary to observe and analyze national trends in crash
occurrences, rates, outcomes, and circumstances.
``(b) First-Year Grants.--
``(1) Eligibility.--To be eligible for a first-year grant
under this section in a fiscal year, a State shall
demonstrate to the satisfaction of the Secretary that the
State has--
``(A) established a highway safety data and traffic records
coordinating committee with a multidisciplinary membership
that includes, among others, managers, collectors, and users
of traffic records and public health and injury control data
systems; and

[[Page S890]]

``(B) developed a multiyear highway safety data and traffic
records system strategic plan that addresses existing
deficiencies in the State's highway safety data and traffic
records system, is approved by the highway safety data and
traffic records coordinating committee, and--
``(i) specifies how existing deficiencies in the State's
highway safety data and traffic records system were
identified;
``(ii) prioritizes, on the basis of the identified highway
safety data and traffic records system deficiencies, the
highway safety data and traffic records system needs and
goals of the State, including the activities under subsection
(a);
``(iii) identifies performance-based measures by which
progress toward those goals will be determined; and
``(iv) specifies how the grant funds and any other funds of
the State are to be used to address needs and goals
identified in the multiyear plan.
``(2) Grant amount.--Subject to subsection (d)(3), the
amount of a first-year grant to a State for a fiscal year
shall the higher of--
``(A) the amount determined by multiplying--
``(i) the amount appropriated to carry out this section for
such fiscal year, by
``(ii) the ratio that the funds apportioned to the State
under section 402 of this title for fiscal year 2003 bears to
the funds apportioned to all States under such section for
fiscal year 2003; or
``(B) $300,000.
``(c) Successive Year Grants.--
``(1) Eligibility.--A State shall be eligible for a grant
under this subsection in a fiscal year succeeding the first
fiscal year in which the State receives a grant under
subsection (b) if the State, to the satisfaction of the
Secretary--
``(A) submits an updated multiyear plan that meets the
requirements of subsection (b)(1)(B);
``(B) certifies that its highway safety data and traffic
records coordinating committee continues to operate and
supports the multiyear plan;
``(C) specifies how the grant funds and any other funds of
the State are to be used to address needs and goals
identified in the multiyear plan;
``(D) demonstrates measurable progress toward achieving the
goals and objectives identified in the multiyear plan; and
``(E) includes a current report on the progress in
implementing the multiyear plan.
``(2) Grant amount.--Subject to subsection (d)(3), the
amount of a year grant made to a State for a fiscal year
under this subsection shall equal the higher of--
``(A) the amount determined by multiplying--
``(i) the amount appropriated to carry out this section for
such fiscal year, by
``(ii) the ratio that the funds apportioned to the State
under section 402 of this title for fiscal year 2003 bears to
the funds apportioned to all States under such section for
fiscal year 2003; or
``(B) $500,000.
``(d) Additional Requirements and Limitations.--
``(1) Model data elements.--The Secretary, in consultation
with States and other appropriate parties, shall determine
the model data elements that are useful for the observation
and analysis of State and national trends in occurrences,
rates, outcomes, and circumstances of motor vehicle traffic
accidents. In order to be eligible for a grant under this
section, a State shall submit to the Secretary a
certification that the State has adopted and uses such model
data elements, or a certification that the State will use
grant funds provided under this section toward adopting and
using the maximum number of such model data elements as soon
as practicable.
``(2) Maintenance of effort.--No grant may be made to a
State under this section in any fiscal year unless the State
enters into such agreements with the Secretary as the
Secretary may require to ensure that the State will maintain
its aggregate expenditures from all other sources for highway
safety data programs at or above the average level of such
expenditures maintained by such State in the 2 fiscal years
preceding the date of enactment of the Highway Safety Grant
Program Reauthorization Act of 2003.
``(3) Federal share.--The Federal share of the cost of
adopting and implementing in a fiscal year a State program
described in subsection (a) may not exceed 80 percent.
``(4) Limitation on use of grant proceeds.--A State may use
the proceeds of a grant received under this section only to
implement the program described in subsection (a) for which
the grant is made.
``(e) Applicability of Chapter 1.--Section 402(d) of this
title shall apply in the administration of this section.''.
(b) Clerical Amendment.--The chapter analysis for chapter 4
is amended by adding at the end the following:

``412. State traffic safety information system improvements.''.

SEC. 4112. NHTSA ACCOUNTABILITY.

(a) In General.--Chapter 4, as amended by section 4111, is
amended by adding at the end the following:

``Sec. 413. Agency accountability

``(a) Triennial State Management Reviews.--At least once
every 3 years the National Highway Traffic Safety
Administration shall conduct a review of each State highway
safety program. The review shall include a management
evaluation of all grant programs partially or fully funded
under this title. The Administrator shall provide review-
based recommendations on how each State may improve the
management and oversight of its grant activities and may
provide a management and oversight plan.
``(b) Recommendations before Submission.--In order to
provide guidance to State highway safety agencies on matters
that should be addressed in the State highway safety program
goals and initiatives as part of its highway safety plan
before the plan is submitted for review, the Administrator
shall provide non-binding data-based recommendations to each
State at least 90 days before the date on which the plan is
to be submitted for approval.
``(c) State Program Review.--The Administrator shall--
``(1) conduct a program improvement review of any State
that does not make substantial progress over a 3-year period
in meeting its priority program goals; and
``(2) provide technical assistance and safety program
recommendations to the State for any goal not achieved.
``(d) Regional Harmonization.--The Administration and the
Inspector General of the Department of Transportation shall
undertake a State grant administrative review of the
practices and procedures of the management reviews and
program reviews conducted by Administration regional offices
and formulate a report of best practices to be completed
within 180 days after the date of enactment of the Surface
Transportation Safety Reauthorization Act of 2004.
``(e) Best Practices Guidelines.--
``(1) Uniform guidelines.--The Administration shall issue
uniform management review and program review guidelines based
on the report under subsection (d). Each regional office
shall use the guidelines in executing its State
administrative review duties.
``(2) Publication.--The Administration shall make the
following documents available via the Internet upon their
completion:
``(A) The Administration's management review and program
review guidelines.
``(B) State highway safety plans.
``(C) State annual accomplishment reports.
``(D) The Administration's State management reviews.
``(E) The Administration's State program improvement plans.
``(3) Reports to state highway safety agencies.--The
Administrator may not make a plan, report, or review
available under paragraph (2) that is directed to a State
highway safety agency until after it has been submitted to
that agency.
``(f) General Accounting Office Review.--The General
Accounting Office shall analyze the effectiveness of the
National Highway Traffic Safety Administration's oversight of
traffic safety grants by seeking to determine the usefulness
of the Administration's advice to the States regarding grants
administration and State activities, the extent to which the
States incorporate the Administration's recommendation into
their highway safety plans and programs, and improvements
that result in a State's highway safety program that may be
attributable to the Administration's recommendations. Based
on this analysis, the General Accounting Office shall submit
a report by not later than the end of fiscal year 2008 to the
House of Representatives Committee on Transportation and
Infrastructure and the Senate Committee on Commerce, Science,
and Transportation.''.
(b) Conforming Amendment.--The chapter analysis for chapter
4, as amended by section 4111, is amended by inserting after
the item relating to section 412 the following:

``413. Agency accountability''.

Part 2--Specific Vehicle Safety-Related Rulings

SEC. 4151. AMENDMENT OF TITLE 49, UNITED STATES CODE.

Except as otherwise specifically provided, whenever in this
subtitle an amendment is expressed in terms of an amendment
to a section or other provision of law, the reference shall
be considered to be made to a section or other provision of
title 49, United States Code.

SEC. 4152. VEHICLE CRASH EJECTION PREVENTION.

(a) In General.--Subchapter II of chapter 301 is amended by
adding at the end the following:

``Sec. 30128. Vehicle accident ejection protection

``(a) In General.--The Secretary of Transportation shall
prescribe a safety standard under this chapter or upgrade
existing Federal motor vehicle safety standards to reduce
complete and partial occupant ejection from motor vehicles
with a gross vehicle weight rating of not more than 10,000
pounds that are involved in accidents that present a risk of
occupant ejection. In formulating the safety standard, the
Secretary shall consider the ejection-mitigation capabilities
of safety technologies, such as advanced side glazing, side
curtains, and side impact air bags.
``(b) Door Lock and Retention Standard.--The Secretary
shall upgrade Federal Motor Vehicle Safety Standard No. 206
to require manufacturers of new motor vehicles with a gross
vehicle weight rating of not more than 10,000 pounds that are
distributed in commerce for sale in the United States to make
such modifications to door locks, door latches, and retention
components of doors in such vehicles as the Secretary
determines to be necessary to reduce occupant ejection

[[Page S891]]

from such vehicles in motor vehicle accidents.''.
(b) Rulemaking Deadlines.--
(1) Rulemaking.--The Secretary of Transportation shall
issue--
(A) a notice of a proposed rulemaking under section 30128
of title 49, United States Code, not later than June 30,
2006; and
(B) a final rule under that section not later than 18
months after the publication of the notice of proposed
rulemaking.
(2) Effective date of requirements.--In the final rule, the
Secretary shall set forth effective dates for the
requirements contained in the rule.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Transportation
$500,000 for each of fiscal years 2004 and 2005 to promulgate
rules under section 30128 of title 49, United States Code.
(d) Conforming Amendment.--The chapter analysis for chapter
301 is amended by inserting after the item relating to
section 30127 the following:

``30128. Vehicle accident ejection protection''.

SEC. 4153. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY.

(a) In General.--The Administrator of the National Highway
Traffic Safety Administration shall conduct a study of
effective methods for reducing the incidence of injury and
death outside of parked passenger motor vehicles with a gross
vehicle weight rating of not more than 10,000 pounds
attributable to movement of such vehicles. The Administrator
shall complete the study within 1 year after the date of
enactment of this Act and report its findings to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Energy and Commerce not
later than 5 months after the date of enactment of this Act.
(b) Specific Issues To Be Covered.--The study required by
subsection (a) shall--
(1) include an analysis of backover prevention technology;
(2) identify, evaluate, and compare the available
technologies for detecting people or objects behind a motor
vehicle with a gross vehicle weight rating of not more than
10,000 pounds for their accuracy, effectiveness, cost, and
feasibility for installation; and
(3) provide an estimate of cost savings that would result
from widespread use of backover prevention devices and
technologies in motor vehicles with a gross vehicle weight
rating of not more than 10,000 pounds, including savings
attributable to the prevention of--
(A) injuries and fatalities; and
(B) damage to bumpers and other motor vehicle parts and
damage to other objects.

SEC. 4154. VEHICLE BACKOVER DATA COLLECTION.

In conjunction with the study required in section 4154, the
National Highway Traffic Safety Administration may establish
a method to collect and maintain data on the number and types
of injuries and deaths involving motor vehicles with a gross
vehicle weight rating of not more than 10,000 pounds in non-
traffic, non-accident incidents to assist in the analysis
required in section 4153 of this Act regarding the inclusion
of backover prevention technologies in motor vehicles with a
gross vehicle weight rating of not more than 10,000 pounds.

SEC. 4155. AGGRESSIVITY AND INCOMPATIBILITY REDUCTION
STANDARD.

(a) In General.--Subchapter II of chapter 301, as amended
by section 4152, is amended by adding at the end the
following:

``Sec. 30129. Vehicle incompatibility and aggressivity
reduction standard

``(a) In General.--The Secretary of Transportation shall
issue motor vehicle safety standards to reduce vehicle
incompatibility and aggressivity for motor vehicles with a
gross vehicle weight rating of not more than 10,000 pounds.
In formulating the standards, the Secretary shall consider
factors such as bumper height, weight, and any other design
characteristics necessary to ensure better management of
crash forces in frontal and side impact crashes among
different types, sizes, and weights of motor vehicles with a
gross vehicle weight rating of not more than 10,000 pounds in
order to reduce occupant deaths and injuries.
``(b) Standards.--The Secretary shall develop a standard
rating metric to evaluate compatibility and aggressivity
among motor vehicles with a gross vehicle weight rating of
not more than 10,000 pounds.
``(c) Public Information.--The Secretary shall create a
public information program that includes vehicle ratings
based on risks posed by vehicle incompatibility and
aggressivity to occupants, risks posed by vehicle
incompatibility and agressivity to other motorists, and
combined risks posed by vehicle incompatibility and
agressivity by vehicle make and model.''.
(b) Rulemaking Deadlines.--
(1) Rulemaking.--The Secretary of Transportation shall
issue--
(A) a notice of a proposed rulemaking under section 30129
of title 49, United States Code, not later than January 31,
2007; and
(B) a final rule under that section not later than 18
months after the publication of the notice of proposed
rulemaking.
(2) Effective date of requirements.--In the final rule, the
Secretary shall set forth effective dates for the
requirements contained in the rule.
(c) Conforming Amendment.--The chapter analysis for chapter
301 is amended by inserting after the item relating to
section 30128 the following:

``30129. Vehicle incompatibility and aggressivity reduction standard''.

SEC. 4156. IMPROVED CRASHWORTHINESS.

(a) Improved Crashworthiness.--Subchapter II of chapter
301, as amended by section 4155, is amended by adding at the
end the following:

``Sec. 30130. Improved crashworthiness of motor vehicles

``(a) Rollovers.--
``(1) In general.--The Secretary of Transportation shall
prescribe a motor vehicle safety standard under this chapter
for rollover crashworthiness standards for motor vehicles
with a gross weight rating of not more than 10,000 pounds. In
formulating the safety standard, the Secretary shall consider
the prescription of a roof strength standard based on dynamic
tests that realistically duplicate the actual forces
transmitted to a passenger motor vehicle during an on-roof
rollover crash, and shall consider safety technologies and
design improvements such as--
``(A) improved seat structure and safety belt design,
including seat belt pretensioners;
``(B) side impact head protection airbags; and
``(C) roof injury protection measures.
``(2) Rollover resistance standard.--The Secretary shall
prescribe a motor vehicle safety standard under this chapter
to improve on the basic design characteristics of motor
vehicles with a gross vehicle weight rating of not more than
10,000 pounds to increase their resistance to rollover. The
Secretary shall also consider additional technologies to
improve the handling of motor vehicles with a gross vehicle
weight rating of not more than 10,000 pounds and thereby
reduce the likelihood of vehicle instability and rollovers.
``(3) Study.--The Secretary shall conduct a study on
electronic stability control systems and other technologies
designed to improve the handling of motor vehicles with a
gross vehicle weight rating of not more than 10,000 pounds
and shall report the results of that study to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Transportation and
Infrastructure by December 31, 2005.
``(b) Frontal Impact Standards and Crash Tests.--
``(1)In general.--The Secretary shall prescribe a motor
vehicle safety standard under this chapter or upgrade
existing Federal motor vehicle safety standards to improve
the protection of occupants in frontal impact crashes
involving motor vehicles with a gross vehicle weight rating
of not more than 10,000 pounds.
``(2) Test methodology.--In determining the standard under
paragraph (1), the Secretary shall--
``(A) evaluate additional test barriers and measurements of
occupant head impact and neck injuries; and
``(B) review frontal impact criteria, including
consideration of criteria established by the Insurance
Institute for Highway Safety.
``(c) Side Impact Standards and Crash Tests.--
``(1)In general.--The Secretary shall prescribe a motor
vehicle safety standard under this chapter or upgrade
existing Federal motor vehicle safety standards to improve
the protection afforded to occupants in side impact crashes
involving motor vehicles with a gross vehicle weight rating
of not more than 10,000 pounds.
``(2) Test methodology.--In prescribing the standard under
paragraph (1), the Secretary shall--
``(A) evaluate additional test barriers and measurements of
occupant head impact and neck injuries;
``(C) consider the need for additional and new crash test
dummies that represent the full range of occupant sizes and
weights; and
``(D) review side impact criteria, including consideration
of criteria established by the Insurance Institute for
Highway Safety.''.
(b) Rulemaking Deadlines.--
(1) Rulemaking.--The Secretary of Transportation shall--
(A) issue a notice of a proposed rulemaking under section
30130 of title 49, United States Code, not later than June
30, 2006; and
(B) issue a final rule not later than 18 months after
publication of the notice of proposed rulemaking.
(2) Effective date of requirements.--In the final rule, the
Secretary shall set forth effective dates for the
requirements contained in this rule.
(c) Conforming Amendment.--The chapter analysis for chapter
301 is amended by inserting after the item relating to
section 30129 the following:

``30130. Improved crashworthiness of passenger motor vehicles''.

SEC. 4157. 15-PASSENGER VANS.

(a) In General.--The Secretary of Transportation shall
initiate a rulemaking and issue a final regulation not later
than September 31, 2005, to include all 15-passenger vans
with a gross vehicle weight rating of not more than 10,000
pounds in the National Highway Traffic Safety
Administration's dynamic rollover testing program and require
such vans to comply with all existing and

[[Page S892]]

prospective Federal Motor Vehicle Safety Standards for
occupant protection and vehicle crash avoidance that are
relevant to such vehicles.
(b) New Car Assessment Program.--The Secretary shall
initiate a rulemaking and issue a final regulation not later
than September 31, 2005, to include all 15-passenger vans
with a gross vehicle weight of not more than 10,000 pounds in
the Administration's New Car Assessment Program rollover
resistance program.
(c) Vehicle Control Technology for 15-passenger Vans.--The
National Highway Traffic Safety Administration shall evaluate
and test the potential of technological systems, particularly
electronic stability control systems and rollover warning
systems, to assist drivers in maintaining control of 15-
passenger vans with a gross vehicle weight rating of not more
than 10,000 pounds.
(d) Certain Specialized Vehicles Excluded.--In this
section, the term ``15-passenger van'' does not include an
ambulance, tow truck, or other vehicle designed primarily for
the transportation of property or special purpose equipment.

SEC. 4158. ADDITIONAL SAFETY PERFORMANCE CRITERIA FOR TIRES.

(a) Strength and Road Hazard Protection.--The Secretary of
Transportation shall issue a final rule to upgrade Federal
Motor Vehicle Safety Standard No. 139 to include strength and
road hazard protection safety performance criteria for light
vehicle tires, which are criteria that were not addressed in
the June 2003 final rule mandated by the Transportation
Recall Enhancement, Accountability, and Documentation Act of
2000.
(b) Resistance to Bead Unseating and Aging.--The Secretary
of Transportation shall issue a final rule to upgrade Federal
Motor Vehicle Safety Standard No. 139 to include resistance
to bead unseating and aging safety performance criteria for
passenger motor vehicle tires, which are criteria that were
not addressed in the June, 2003, final rule mandated by the
Transportation Recall Enhancement, Accountability, and
Documentation Act of 2000.
(c) Rulemaking Deadlines.--The Secretary of Transportation
shall--
(1) issue a notice of proposed rulemaking under subsection
(a) not later than June 30, 2005, and under subsection(b) not
later than December 31, 2005; and
(2) issue a final rule relating to subsection (a) not later
than 18 months after June 30, 2005, and a final rule under
subsection (b) not later than 18 months after December 31,
2005.
(d) Technology use and report.--The Secretary shall
reconsider the use of shearography analysis, on a sampling
basis, for regulatory compliance and the Administrator of the
National Highway Traffic Safety Administration shall report
to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure on the most cost effective
methods of using such technology within 2 years after the
date of enactment of the Highway Safety Grant Program
Reauthorization Act of 2004.

SEC. 4159. SAFETY BELT USE REMINDERS.

(a) Notice of Proposed Rules To Encourage More Seat Belt
Use.--Not later than 12 months after the date of enactment of
this Act, the Secretary of Transportation shall issue a
Notice of Proposed Rulemaking to amend the Federal Motor
Vehicle Safety Standard No. 208 for motor vehicles with a
gross vehicle weight rating of not more than 10,000 pounds to
encourage increased seat belt usage by drivers and
passengers. The proposed rulemaking shall take into account
the potential safety benefits and public acceptability of
alternative means to encourage increased seat belt usage,
including intermittent or continuous audible or visual
reminders when a driver or passenger is not wearing a seat
belt, features to prevent operation of convenience or
entertainment features of the vehicle when a driver or
passenger is not wearing a seat belt, and shall consider
technology, including but not limited to technology
identified by the National Academy of Sciences in its study
of the potential benefits of seat belt usage reminder
technologies.
(b) Final Rule.--Not later than 24 months after the date of
enactment of this Act, the Secretary shall issue the final
rule required by subsection (a).
(c) Buzzer Law.--
(1) In general.--Section 30124 is amended--
(A) by striking ``not'' the first place it appears; and
(B) by striking ``except'' and inserting ``including''.
(2) Conforming amendment.--Section 30122 is amended by
striking subsection (d).

SEC. 4160. MISSED DEADLINES REPORTS.

(a) In General.--If the Secretary of Transportation fails
to meet any rulemaking deadline established in this subtitle,
the Secretary shall transmit a report to the Senate Committee
on Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and
Infrastructure within 90 days after missing the deadline--
(1) explaining why the Secretary failed to meet the
deadline; and
(2) setting forth a date by which the Secretary anticipates
that the rulemaking will be made.
(b) Consideration of Effects.--The Secretary of
Transportation shall consider and report the potential
consequences, in terms of the number of deaths and the number
and severity of injuries, that may result from not meeting
any such deadline.

SEC. 4161. GRANTS FOR IMPROVING CHILD PASSENGER SAFETY
PROGRAMS.

(a) In General.--Chapter 4 of title 23, United States Code,
as amended by section 4111 of this Act, is amended by adding
at the end the following:

``Sec. 413. Booster seat incentive grants

``(a) In General.--The Secretary of Transportation shall
make a grant under this section to any eligible State.
``(b) Eligibility Requirements.--
``(1) In general.--The Secretary shall make a grant to each
State that, as determined by the Secretary, enacts or has
enacted, and is enforcing a law requiring that children
riding in passenger motor vehicles (as defined in section
405(d)(4)) who are too large to be secured in a child safety
seat be secured in a child restraint (as defined in section
7(1) of Anton's Law (49 U.S.C. 30127 note)) that meets
requirements prescribed by the Secretary under section 3 of
Anton's Law.
``(2) Year in which first eligible.--
``(A) Early qualification.--A State that has enacted a law
described in paragraph (1) that is in effect before October
1, 2005, is first eligible to receive a grant under
subsection (a) in fiscal year 2006.
``(B) Subsequent qualification.--A State that enacts a law
described in paragraph (1) that takes effect after September
30, 2005, is first eligible to receive a grant under
subsection (a) in the first fiscal year beginning after the
date on which the law is enacted.
``(3) Continuing eligibility.--A State that is eligible
under paragraph (1) to receive a grant may receive a grant
during each fiscal year listed in subsection (f) in which it
is eligible.
``(4) Maximum number of grants.--A State may not receive
more than 4 grants under this section.
``(c) Grant Amount.--Amounts available for grants under
this section in any fiscal year shall be apportioned among
the eligible States on the basis of population.
``(d) Use of Grant Amounts.--
``(1) In general.--Of the amounts received by a State under
this section for any fiscal year--
``(A) 50 percent shall be used for the enforcement of, and
education to promote public awareness of, State child
passenger protection laws; and
``(B) 50 percent shall be used to fund programs that
purchase and distribute child booster seats, child safety
seats, and other appropriate passenger motor vehicle child
restraints to indigent families without charge.
``(2) Report.--Within 60 days after the State fiscal year
in which a State receives a grant under this section, the
State shall transmit to the Secretary a report documenting
the manner in which grant amounts were obligated or expended
and identifying the specific programs supports by grant
funds. The report shall be in a form prescribed by the
Secretary and may be combined with other State grant
reporting requirements under this chapter.
``(e) Definition of Child Safety Seat.--The term `child
safety seat' means any device (except safety belts (as such
term is defined in section 405(d)(5)), designed for use in a
motor vehicle (as such term is defined in section 405(d)(1))
to restrain, seat, or position a child who weighs 50 pounds
or less.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary of
Transportation, out of the Highway Trust Fund--
``(1) $18,000,000 for fiscal year 2006;
``(2) $20,000,000 for fiscal year 2007;
``(3) $25,000,000 for fiscal year 2008; and
``(4) $30,000,000 for fiscal year 2009.''.
(b) Clerical Amendment.--The chapter analysis for chapter 4
of title 23, United States Code, is amended by inserting
after the item relating to section 411 the following:

``413. Booster seat incentive grants.''.

SEC. 4162. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary of
Transportation to carry out this subtitle and chapter 301
(motor vehicle safety) of title 49, United States Code--
(1) $130,500,000 for fiscal year 2004;
(1) $133,500,000 for fiscal year 2005;
(1) $133,600,000 for fiscal year 2006;
(1) $134,500,000 for fiscal year 2007;
(1) $138,000,000 for fiscal year 2008; and
(1) $141,000,000 for fiscal year 2009.

Subtitle B--Motor Carrier Safety and Unified Carrier Registration

SEC. 4201. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES
CODE

(a) Short Title.--This title may be cited as the ``Motor
Carrier Safety Reauthorization Act of 2004''.
(b) Amendment of Title 49, United States Code.--Except as
otherwise specifically provided, whenever in this title an
amendment is expressed in terms of an amendment to a section
or other provision of law, the reference shall be considered
to be made to a section or other provision of title 49,
United States Code.

SEC. 4202. REQUIRED COMPLETION OF OVERDUE REPORTS, STUDIES,
AND RULEMAKINGS.

(a) Requirement for completion.--By no later than 36 months
after the date of enactment of this Act, the Secretary of
Transportation shall complete all reports, studies, and
rulemaking proceedings to issue regulations which Congress
directed the Secretary

[[Page S893]]

to complete in previous laws and which are not yet completed,
including--
(1) Commercial Vehicle Driver Biometric Identifier,
section 9105, Truck and Bus Safety and Regulatory Reform Act
of 1988;
(2) General Transportation of HAZMAT, section 8(b),
Hazardous Materials Transportation Uniform Safety Act of
1990;
(3) Nationally Uniform System of Permits for Interstate
Motor Carrier Transport of HAZMAT, section 22, Hazardous
Materials Transportation Uniform Safety Act of 1990;
(4) Training for Entry-Level Drivers of Commercial Motor
Vehicles, section 4007 (a), Intermodal Surface Transportation
Efficiency Act of 1991;
(5) Minimum Training Requirements for Operators and for
Training Instructors of Multiple Trailer Combination
Vehicles, section 4007(b)(2), Intermodal Surface
Transportation Efficiency Act of 1991;
(6) Railroad-Highway Grade Crossing Safety, section 112,
Hazardous Materials Transportation Authorization Act of 1994;
(7) Safety Performance History of New Drivers, section
114, Hazardous Materials Transportation Authorization Act of
1994;
(8) Motor Carrier Replacement Information and Registration
System, section 103, ICC Termination Act of 1995;
(9) General Jurisdiction Over Freight Forwarder Service,
section 13531, ICC Termination Act of 1995;
(10) Waivers, Exemptions, and Pilot Programs, section
4007, Transportation Equity Act for the Twenty-First Century;
(11) Safety Performance History of New Drivers, section
4014, Transportation Equity Act for the Twenty-First Century;
(12) Performance-based CDL Testing, section 4019,
Transportation Equity Act for the Twenty-First Century;
(13) Improved Flow of Driver History Pilot Program,
section 4022, Transportation Equity Act for the Twenty-First
Century;
(14) Employee Protections, section 4023, Transportation
Equity Act for the Twenty-First Century;
(15) Improved Interstate School Bus Safety, section 4024,
Transportation Equity Act for the Twenty-First Century;
(16) Federal Motor Carrier Safety Administration 2010
Strategy, Sec. 104, Motor Carrier Safety Improvement Act of
1999;
(17) New Motor Carrier Entrant Requirements, section 210,
Motor Carrier Safety Improvement Act of 1999;
(18) Certified Motor Carrier Safety Auditors, section 211,
Motor Carrier Safety Improvement Act of 1999;
(19) Medical Certificate, section 215, Motor Carrier
Safety Improvement Act of 1999;
(20) Report on Any Pilots Undertaken to Develop Innovative
Methods of Improving Motor Carrier Compliance with Traffic
Laws, section 220, Motor Carrier Safety Improvement Act of
1999;
(21) Status Report on the Implementation of Electronic
Transmission of Data State-to-State on Convictions for All
Motor Vehicle Control Law Violations for CDL Holders, section
221, Motor Carrier Safety Improvement Act of 1999;
(22) Assessment of Civil Penalties, section 222, Motor
Carrier Safety Improvement Act of 1999;
(23) Truck Crash Causation Study, section 224, Motor
Carrier Safety Improvement Act of 1999;
(24) Drug Test Results Study, section 226, Motor Carrier
Safety Improvement Act of 1999.
(b) Final Rule Required.--Unless specifically permitted by
law, rulemaking proceedings shall be considered completed for
purposes of this section only when the Secretary has issued a
final rule and the docket for the rulemaking proceeding is
closed.
(c) Schedule for Completion.--No fewer than one-third of
the reports, studies, and rulemaking proceedings in
subsection (a) shall be completed every 12 months after the
date of enactment of this Act. The Inspector General of the
Department of Transportation shall make an annual
determination as to whether this schedule has been met.
(d) Failure To Comply.--If the Secretary fails to complete
the required number of reports, studies, and rulemaking
proceedings according to the schedule set forth in subsection
(c) during any fiscal year, the Secretary shall allocate to
the States $3,000,000 from the amount authorized by section
31104(i)(1) of title 49, United States Code, for
administrative expenses of the Federal Motor Carrier Safety
Administration to conduct additional compliance reviews under
section 31102 of that title instead of obligating or
expending such amount for those administrative expenses.
(e) Amendments to the Listed Reports, Studies, and
Rulemaking Proceedings.--In addition to completing the
reports, studies and rulemaking proceedings listed in
subsection (c), the Secretary shall--
(1) amend the Interim Final Rule addressing New Motor
Carrier Entrant Requirements to require that a safety audit
be immediately converted to a compliance review and
appropriate enforcement actions be taken if the safety audit
discloses acute safety violations by the new entrant; and
(2) eliminate a proposed provision in the rulemaking
proceeding addressing Commercial Van Operations Transporting
Nine to Fifteen Passengers which exempts commercial van
operations that operate within a 75-mile radius.
(f) Completion of New Rulemaking Proceedings.--Nothing in
this section delays or changes the deadlines specified for
new reports, studies, or rulemaking mandates contained in
this title.
(g) Report of Other Agency Actions.--Within 12 months after
the date of enactment of this Act, the Secretary shall submit
to the Senate Committee on Commerce, Science, and
Transportation and to the House Committee on Transportation
and Infrastructure a report on the status of the following
projects:
(1) Rescinding the current regulation which prohibits truck
and bus drivers from viewing television and monitor screens
while operating commercial vehicles.
(2) Incorporating Out-Of-Service Criteria regulations
enforced by the Federal Motor Carrier Safety Administration.
(3) Revision of the safety fitness rating system of motor
carriers.
(4) Amendment of Federal Motor Carrier Safety
Administration rules of practice for conducting motor carrier
administrative proceedings, investigations,
disqualifications, and for issuing penalties.
(5) Requiring commercial drivers to have a sufficient
functional speaking and reading comprehension of the English
language.
(6) Inspection, repair and maintenance of intermodal
container chassis and trailers.

SEC. 4203. CONTRACT AUTHORITY.

Authorizations from the Highway Trust Fund (other than the
Mass Transit Account) to carry out this title shall be
available for obligation on the date of their apportionment
or allocation or on October 1 of the fiscal year for which
they are authorized, whichever occurs first. Approval by the
Secretary of a grant with funds made available under this
title imposes upon the United States Government a contractual
obligation for payment of the Government's share of costs
incurred in carrying out the objectives of the grant.

Part 1--Motor Carrier Safety

SEC. 4221. MINIMUM GUARANTEE.

There are authorized to be appropriated from the Highway
Trust Fund (other than the Mass Transit Account) not less
than 1.21 percent of the total amounts made available in any
fiscal year from the Highway Trust Fund for purposes of this
title.

SEC. 4222. AUTHORIZATION OF APPROPRIATIONS.

(a) Administrative Expenses.--Section 31104 is amended by
adding at the end the following:
``(i) Administrative expenses.--
``(1) There are authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit Account) for
the Secretary of Transportation to pay administrative
expenses of the Federal Motor Carrier Safety Administration--
``(A) $202,900,000 for fiscal year 2004;
``(B) $206,200,000 for fiscal year 2005;
``(C) $211,400,000 for fiscal year 2006;
``(D) $217,500,000 for fiscal year 2007;
``(E) $222,600,000 for fiscal year 2008; and
``(F) $228,500,000 for fiscal year 2009.
``(2) The funds authorized by this subsection shall be used
for personnel costs; administrative infrastructure; rent;
information technology; programs for research and technology,
information management, regulatory development (including a
medical review board and rules for medical examiners),
performance and registration information system management,
and outreach and education; other operating expenses and
similar matters; and such other expenses as may from time to
time become necessary to implement statutory mandates not
funded from other sources.
``(3) From the funds authorized by this section, the
Secretary shall ensure that compliance reviews are completed
on the motor carriers that have demonstrated through
performance data that they pose the highest safety risk. At a
minimum, compliance reviews shall be conducted within 6
months after whenever a carrier is rated as category A or B.
``(4) The amounts made available under this section shall
remain available until expended.
``(5) Of the funds authorized by paragraph (1), $6,750,000
in each of fiscal years 2004 through 2009 shall be used to
carry out the medical program under section 31149.''.
(b) Amendment to Apportionment Provision of Title 23.--
Section 104(a) of title 23, United States Code, is amended--
(1) by striking ``exceed--'' and so much of subparagraph
(A) as precedes clause (i) and inserting ``exceed 1\1/6\
percent of all sums so made available, as the Secretary
determines necessary--'';
(2) by redesignating clause (i) and (ii) of subparagraph
(A) as subparagraphs (A) and (B), and indenting such clauses,
as so redesignated, 2 em spaces; and
(3) by striking ``system; and'' in subparagraph (B) as so
redesignated, and all that follows through ``research.'' and
inserting ``system.''.
(c) Grant Programs.--There are authorized to be
appropriated from the Highway Trust Fund (other than the Mass
Transit Account) for the following Federal Motor Carrier
Safety Administration programs:
(1) Border enforcement grants under section 31107 of title
49, United States Code--
(A) $ 32,000,000 for fiscal year 2004;
(B) $ 33,000,000 for fiscal year 2005;
(C) $ 33,000,000 for fiscal year 2006;
(D) $ 34,000,000 for fiscal year 2007;
(E) $ 35,000,000 for fiscal year 2008; and
(F) $ 36,000,000 for fiscal year 2009.
(2) Performance and registration information system
management grant program under 31109 of title 49, United
States Code--

[[Page S894]]

(A) $4,000,000 for fiscal year 2004;
(B) $4,000,000 for fiscal year 2005;
(C) $4,000,000 for fiscal year 2006;
(D) $4,000,000 for fiscal year 2007;
(E) $4,000,000 for fiscal year 2008; and
(F) $4,000,000 for fiscal year 2009.
(3) Commercial driver's license and driver improvement
program grants under section 31318 of title 49, United States
Code--
(A) $22,000,000 for fiscal year 2004;
(B) $22,000,000 for fiscal year 2005;
(C) $23,000,000 for fiscal year 2006;
(D) $23,000,000 for fiscal year 2007;
(E) $24,000,000 for fiscal year 2008; and
(F) $25,000,000 for fiscal year 2009.
(4) Deployment of the Commercial Vehicle Informations
Systems and Networks established under section 4241 of this
title, $25,000,000 for each of fiscal years 2004 through
2009.
(d) Motor Carrier Safety Account.--Funds made available
under subsection (c) shall be administered in the account
established in the Treasury entitled ``Motor Carrier Safety
69-8055-0-7-401.
(e) Period of Availability.--The amounts made available
under subsection (c) of this section shall remain available
until expended.

SEC. 4223. MOTOR CARRIER SAFETY GRANTS.

(a) Motor Carrier Safety Assistance Program.--
(1) Section 31102 is amended--
(A) by striking ``activities by fiscal year 2000;'' in
subsection (b)(1)(A) and inserting ``activities for
commercial motor vehicles of passengers and freight;'';
(B) by striking ``years before December 18, 1991;'' in
subsection (b)(1)(E) and inserting ``years'';
(C) by striking ``and'' after the semicolon in subsection
(b)(1)(S);
(D) by striking ``personnel.'' in subsection (b)(1)(T) and
inserting ``personnel;'';
(E) adding at the end of subsection (b)(1) the following:
``(U) ensures that inspections of motor carriers of
passengers are conducted at stations, terminals, border
crossings, or maintenance facilities, except in the case of
an imminent or obvious safety hazard;
``(V) provides that the State will include in the training
manual for the licensing examination to drive a non-
commercial motor vehicle and a commercial motor vehicle,
information on best practices for driving safely in the
vicinity of commercial motor vehicles and in the vicinity of
non-commercial vehicles, respectively; and
``(W) provides that the State will enforce the registration
requirements of section 13902 by suspending the operation of
any vehicle discovered to be operating without registration
or beyond the scope of its registration.''; and
(F) by striking subsection (c) and inserting the following:
``(c) Use of Grants to Enforce Other Laws.--A State may use
amounts received under a grant under subsection (a) of this
section for the following activities:
``(1) If the activities are carried out in conjunction with
an appropriate inspection of the commercial motor vehicle to
enforce Government or State commercial motor vehicle safety
regulations--
``(A) enforcement of commercial motor vehicle size and
weight limitations at locations other than fixed weight
facilities, at specific locations such as steep grades or
mountainous terrains where the weight of a commercial motor
vehicle can significantly affect the safe operation of the
vehicle, or at ports where intermodal shipping containers
enter and leave the United States; and
``(B) detection of the unlawful presence of a controlled
substance (as defined under section 102 of the Comprehensive
Drug Abuse Prevention and Control Act of 1970 (21 U.S.C.
802)) in a commercial motor vehicle or on the person of any
occupant (including the operator) of the vehicle.
``(2) Documented enforcement of State traffic laws and
regulations designed to promote the safe operation of
commercial motor vehicles, including documented enforcement
of such laws and regulations against non-commercial motor
vehicles when necessary to promote the safe operation of
commercial motor vehicles.''.
(2) Section 31103(b) is amended--
(1) by inserting ``(1)'' after ``activities.--''; and
(2) by adding at the end the following:
``(2) New entrant motor carrier audit funds.--From the
amounts designated under section 31104(f)(4), the Secretary
may allocate new entrant motor carrier audit funds to States
and local governments without requiring a matching
contribution from such States or local governments.''.
(3) Section 31104(a) is amended to read as follows:
``(a) In General.--There are authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out section 31102:
``(1) Not more than $186,100,000 for fiscal year 2004.
``(2) Not more than $189,800,000 for fiscal year 2005.
``(3) Not more than $193,600,000 for fiscal year 2006.
``(4) Not more than $197,500,000 for fiscal year 2007.
``(5) Not more than $201,400,000 for fiscal year 2008.
``(6) Not more than $205,500,000 for fiscal year 2009.''.
(4) Section 31104(f) is amended by striking paragraph (2)
and inserting the following:
``(2) High-priority activities.--The Secretary may
designate up to 5 percent of amounts available for allocation
under paragraph (1) for States, local governments, and
organizations representing government agencies or officials
for carrying out high priority activities and projects that
improve commercial motor vehicle safety and compliance with
commercial motor vehicle safety regulations, including
activities and projects that are national in scope, increase
public awareness and education, or demonstrate new
technologies. The amounts designated under this paragraph
shall be allocated by the Secretary to State agencies, local
governments, and organizations representing government
agencies or officials that use and train qualified officers
and employees in coordination with State motor vehicle safety
agencies. At least 80 percent of the amounts designated under
this paragraph shall be awarded to State agencies and local
government agencies.
``(3) Safety-performance incentive programs.--The Secretary
may designate up to 10 percent of the amounts available for
allocation under paragraph (1) for safety performance
incentive programs for States. The Secretary shall establish
safety performance criteria to be used to distribute
incentive program funds. Such criteria shall include, at a
minimum, reduction in the number and rate of fatal accidents
involving commercial motor vehicles. Allocations under this
paragraph do not require a matching contribution from a
State.
``(4) New entrant audits.--The Secretary shall designate up
to $29,000,000 of the amounts available for allocation under
paragraph (1) for audits of new entrant motor carriers
conducted pursuant to 31144(f). The Secretary may withhold
such funds from a State or local government that is unable to
use government employees to conduct new entrant motor carrier
audits, and may instead utilize the funds to conduct audits
in those jurisdictions.''.
(b) Grants to States for Border Enforcement.--Section 31107
is amended to read as follows:

``Sec. 31107. Border enforcement grants

``(a) General Authority.--From the funds authorized by
section 4222(c)(1) of the Motor Carrier Safety
Reauthorization Act of 2004, the Secretary may make a grant
in a fiscal year to a State that shares a border with another
country for carrying out border commercial motor vehicle
safety programs and related enforcement activities and
projects.
``(b) Maintenance of Expenditures.--The Secretary may make
a grant to a State under this section only if the State
agrees that the total expenditure of amounts of the State and
political subdivisions of the State, exclusive of United
States Government amounts, for carrying out border commercial
motor vehicle safety programs and related enforcement
activities and projects will be maintained at a level at
least equal to the average level of that expenditure by the
State and political subdivisions of the State for the last 2
State or Federal fiscal years before October 1, 2003.''.
(c) Grants to States for Commercial Driver's License
Improvements.--Chapter 313 is amended by adding at the end
the following:

``Sec. 31318. Grants for commercial driver's license program
improvements

``(a) General Authority.--From the funds authorized by
section 4222(c)(3) of the Motor Carrier Safety
Reauthorization Act of 2004, the Secretary may make a grant
to a State, except as otherwise provided in subsection (e),
in a fiscal year to improve its implementation of the
commercial driver's license program, providing the State is
in substantial compliance with the requirements of section
31311 and this section. The Secretary shall establish
criteria for the distribution of grants and notify the States
annually of such criteria.
``(b) Conditions.--Except as otherwise provided in
subsection (e), a State may use a grant under this section
only for expenses directly related to its commercial driver's
license program, including, but not limited to, computer
hardware and software, publications, testing, personnel,
training, and quality control. The grant may not be used to
rent, lease, or buy land or buildings. The Secretary shall
give priority to grants that will be used to achieve
compliance with the requirements of the Motor Carrier Safety
Improvement Act. The Secretary may allocate the funds
appropriated for such grants in a fiscal year among the
eligible States whose applications for grants have been
approved, under criteria established by the Secretary.
``(c) Maintenance of Expenditures.--Except as otherwise
provided in subsection (e), the Secretary may make a grant to
a State under this section only if the State agrees that the
total expenditure of amounts of the State and political
subdivisions of the State, exclusive of United States
Government amounts, for the operation of the commercial
driver's license program will be maintained at a level at
least equal to the average level of that expenditure by the
State and political subdivisions of the State for the last 2
fiscal years before October 1, 2003.
``(d) Government Share.--Except as otherwise provided in
subsection (e), the Secretary shall reimburse a State, from a
grant made under this section, an amount that is not more
than 80 percent of the costs incurred by the State in a
fiscal year in implementing the commercial driver's license
improvements described in subsection (b). In

[[Page S895]]

determining those costs, the Secretary shall include in-kind
contributions by the State.
``(e) High-Priority Activities.--
``(1) The Secretary may make a grant to a State agency,
local government, or organization representing government
agencies or officials for the full cost of research,
development, demonstration projects, public education, or
other special activities and projects relating to commercial
driver licensing and motor vehicle safety that are of benefit
to all jurisdictions or designed to address national safety
concerns and circumstances.
``(2) The Secretary may designate up to 10 percent of the
amounts made available under section 4222(c)(3) of the Motor
Carrier Safety Reauthorization Act of 2004 in a fiscal year
for high-priority activities under subsection (e)(1).
``(f) Emerging Issues.--The Secretary may designate up to
10 percent of the amounts made available under section
4222(c)(3) of the Motor Carrier Safety Reauthorization Act of
2004 in a fiscal year for allocation to a State agency, local
government, or other person at the discretion of the
Secretary to address emerging issues relating to commercial
driver's license improvements.
``(g) Apportionment.--Except as otherwise provided in
subsections (e) and (f), all amounts available in a fiscal
year to carry out this section shall be apportioned to States
according to a formula prescribed by the Secretary.
``(h) Deduction for Administrative Expenses.--On October 1
of each fiscal year or as soon after that date as
practicable, the Secretary may deduct, from amounts made
available under section 4222(c)(3) of the Motor Carrier
Safety Reauthorization Act of 2004 for that fiscal year, up
to 0.75 percent of those amounts for administrative expenses
incurred in carrying out this section in that fiscal year.''.
(d) Noncompliance with CDL Requirements.--Section 31314 is
amended by striking subsections (a) and (b) and inserting the
following:
``(a) First Fiscal Year.--The Secretary of Transportation
shall withhold up to 5 percent of the amount required to be
apportioned to a State under section 104(b)(1), (3), and (4)
of title 23 on the first day of the fiscal year after the
first fiscal year beginning after September 30, 1992,
throughout which the State does not comply substantially with
a requirement of section 31311(a) of this title.
``(b) Second Fiscal Year.--The Secretary shall withhold up
to 10 percent of the amount required to be apportioned to a
State under section 104(b)(1), (3), and (4) of title 23 on
the first day of each fiscal year after the second fiscal
year beginning after September 30, 1992, throughout which the
State does not comply substantially with a requirement of
section 31311(a) of this title.''.
(e) Conforming Amendments.--
(1) The chapter analysis for chapter 311 is amended--
(A) by striking the item relating to Subchapter I, and
inserting the following:

``SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS'';
and
(B) by striking the item relating to section 31107, and
inserting the following:

``31107. Border enforcement grants.''.

(2) Subchapter I of chapter 311 is amended by striking the
subchapter heading and inserting the following:

``SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS''
(3) The chapter analysis for chapter 313 is amended by
inserting the following after the item relating to section
31317:

``31318. Grants for commercial driver's license program
improvements.''.

SEC. 4224. CDL WORKING GROUP.

(a) In General.--The Secretary of Transportation shall
convene a working group to study and address current
impediments and foreseeable challenges to the commercial
driver's license program's effectiveness and measures needed
to realize the full safety potential of the commercial
driver's license program. The working group shall address
such issues as State enforcement practices, operational
procedures to detect and deter fraud, needed improvements for
seamless information sharing between States, effective
methods for accurately sharing electronic data between
States, updated technology, and timely notification from
judicial bodies concerning traffic and criminal convictions
of commercial driver's license holders.
(b) Membership.--Members of the working group should
include State motor vehicle administrators, organizations
representing government agencies or officials, members of the
Judicial Conference, representatives of the trucking
industry, representatives of labor organizations, safety
advocates, and other significant stakeholders.
(c) Report.--Within 2 years after the date of enactment of
this Act, the Secretary, on behalf of the working group,
shall complete a report of the working group's findings and
recommendations for legislative, regulatory, and enforcement
changes to improve the commercial driver's license program.
The Secretary shall promptly transmit the report to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Transportation and
Infrastructure.
(d) Funding.--From the funds authorized by section
4222(c)(3) of this title, $200,000 shall be made available
for each of fiscal years 2004 and 2005 to carry out this
section.

SEC. 4225. CDL LEARNER'S PERMIT PROGRAM.

(a) In General.--Chapter 313 is amended--
(1) by striking ``time.'' in section 31302 and inserting
``license, and may have only 1 learner's permit at any
time.'';
(2) by inserting ``and learners' permits'' after
``licenses'' the first place it appears in section 31308;
(3) by striking ``licenses.'' in section 31308 and
inserting ``licenses and permits.'';
(4) by redesignating paragraphs (2) and (3) of section
31308 as paragraphs (3) and (4), respectively, and inserting
after paragraph (1) the following:
``(2) before a commercial driver's license learner's permit
can be issued to an individual, the individual must pass a
written test on the operation of a commercial motor vehicle
that complies with the minimum standards prescribed by the
Secretary under section 31305(a) of this title;'';
(5) by inserting ``or learner's permit'' after ``license''
each place it appears in paragraphs (3) and (4), as
redesignated, of section 31308; and
(6) by inserting ``or learner's permit'' after ``license''
each place it appears in section 31309(b).
(b) Conforming Amendments.--
(1) Section 31302 is amended by inserting ``and learner's
permits'' in the section caption.
(2) Sections 31308 and 31309 are each amended by inserting
``and learner's permit'' after ``license'' in the section
captions.
(3) The chapter analysis for chapter 313 is amended by
striking the item relating to section 31302 and inserting the
following:

``31302. Limitation on the number of driver's licenses and learner's
permits''.

(4) The chapter analysis for chapter 313 is amended by
striking the items relating to sections 31308 and 31309 and
inserting the following:

``31308. Commercial driver's license and learner's permit
``31309. Commercial driver's license and learner's permit information
system''.

SEC. 4226. HOBBS ACT.

(a) Section 2342(3)(A) of title 28, United States Code, is
amended to read as follows:
``(A) the Secretary of Transportation issued pursuant to
section 2, 9, 37, or 41 of the Shipping Act, 1916 (46 U.S.C.
App. 802, 803, 808, 835, 839, and 841a) or pursuant to Part B
or C of subtitle IV of title 49 or pursuant to subchapter III
of chapter 311, chapter 313, and chapter 315 of Part B of
subtitle VI of title 49; and''.
(b) Section 351(a) is amended to read as follows:
``(a) Judicial Review.--An action of the Secretary of
Transportation in carrying out a duty or power transferred
under the Department of Transportation Act (Public Law 89-
670; 80 Stat. 931), or an action of the Administrator of the
Federal Railroad Administration, Federal Motor Carrier Safety
Administration, or the Federal Aviation Administration in
carrying out a duty or power specifically assigned to the
Administrator by that Act, may be reviewed judicially to the
same extent and in the same way as if the action had been an
action by the department, agency, or instrumentality of the
United States Government carrying out the duty or power
immediately before the transfer or assignment.''.
(c) Section 352 is amended to read as follows:

``Sec. 352. Authority to carry out certain transferred duties
and powers

``In carrying out a duty or power transferred under the
Department of Transportation Act (Public Law 89-670; 80 Stat.
931), the Secretary of Transportation and the Administrators
of the Federal Railroad Administration, the Federal Motor
Carrier Safety Administration, and the Federal Aviation
Administration have the same authority that was vested in the
department, agency, or instrumentality of the United States
Government carrying out the duty or power immediately before
the transfer. An action of the Secretary or Administrator in
carrying out the duty or power has the same effect as when
carried out by the department, agency, or instrumentality.''.

SEC. 4227. PENALTY FOR DENIAL OF ACCESS TO RECORDS.

Section 521(b)(2) is amended by adding at the end the
following:
``(E) Copying of records and access to equipment, lands,
and buildings.--A motor carrier subject to chapter 51 of
subtitle III, a motor carrier, broker, or freight forwarder
subject to part B of subtitle IV, or the owner or operator of
a commercial motor vehicle subject to part B of subtitle VI
of this title who fails to allow the Secretary, or an
employee designated by the Secretary, promptly upon demand to
inspect and copy any record or inspect and examine equipment,
lands, buildings and other property in accordance with
sections 504(c), 5121(c), and 14122(b) of this title shall be
liable to the United States for a civil penalty not to exceed
$500 for each offense, and each day the Secretary is denied
the right to inspect and copy any record or inspect and
examine equipment, lands, buildings and other property shall
constitute a separate offense, except that the total of all
civil penalties against any violator for all offenses related
to a single violation shall not exceed $5,000. It shall be a
defense to such penalty that the records did not exist at the
time of the Secretary's request or could not be timely
produced without unreasonable expense or effort. Nothing
herein amends or supersedes

[[Page S896]]

any remedy available to the Secretary under sections 502(d),
507(c), or other provision of this title.''.

SEC. 4228. MEDICAL PROGRAM.

(a) In General.--Subchapter III of chapter 311 is amended
by adding at the end the following:

``Sec. 31149. Medical program

``(a) Medical Review Board.--
``(1) Establishment and function.--The Secretary of
Transportation shall establish a Medical Review Board to
serve as an advisory committee to provide the Federal Motor
Carrier Safety Administration with medical advice and
recommendations on driver qualification medical standards and
guidelines, medical examiner education, and medical research.
``(2) Composition.--The Medical Review Board shall be
appointed by the Secretary and shall consist of 5 members
selected from medical institutions and private practice. The
membership shall reflect expertise in a variety of
specialties relevant to the functions of the Federal Motor
Carrier Safety Administration.
``(b) Chief Medical Examiner.--The Secretary shall appoint
a chief medical examiner for the Federal Motor Carrier Safety
Administration.
``(c) Medical Standards and Requirements.--The Secretary,
with the advice of the Medical Review Board and the chief
medical examiner, shall--
``(1) establish, review, and revise--
``(A) medical standards for applicants for and holders of
commercial driver's licenses that will ensure that the
physical condition of operators of commercial motor vehicles
is adequate to enable them to operate the vehicles safely;
``(B) requirements for periodic physical examinations of
such operators performed by medical examiners who have
received training in physical and medical examination
standards and are listed on a national registry maintained by
the Department of Transportation; and
``(C) requirements for notification of the chief medical
examiner if such an applicant or holder--
``(i) fails to meet the applicable standards; or
``(ii) is found to have a physical or mental disability or
impairment that would interfere with the individual's ability
to operate a commercial motor vehicle safely;
``(2) require each holder of a commercial driver's license
or learner's permit to have a current valid medical
certificate;
``(3) issue such certificates to such holders and
applicants who are found, upon examination, to be physically
qualified to operate a commercial motor vehicle and to meet
applicable medical standards; and
``(4) develop, as appropriate, specific courses and
materials for medical examiners listed in the national
registry established under this section, and require those
medical examiners to complete specific training, including
refresher courses, to be listed in the registry.
``(d) National Registry of Medical Examiners.--The
Secretary, through the Federal Motor Carrier Safety
Administration--
``(1) shall establish and maintain a current national
registry of medical examiners who are qualified to perform
examination, testing, inspection, and issuance of a medical
certificate;
``(2) shall delegate to those examiners the authority to
issue such certificates if the Medical Review Board develops
a system to identify the medical examination forms uniquely
and track them; and
``(3) shall remove from the registry the name of any
medical examiner that fails to meet the qualifications
established by the Secretary for being listed in the
registry.
``(e) Consultation and Cooperation with FAA.--
``(1) In general.--The Administrator of the Federal Motor
Carrier Safety Administration shall consult the Administrator
of the Federal Aviation Administration with respect to
examinations, the issuance of certificates, standards, and
procedures under this section in order to take advantage of
such aspects of the Federal Aviation Administration's airman
certificate program under chapter 447 of this title as the
Administrator deems appropriate for carrying out this
section.
``(2) Use of FAA-qualified examiners.--The Administrator of
the Federal Motor Carrier Safety Administration and the
Administrator of the Federal Aviation Administration are
authorized and encouraged to execute a memorandum of
understanding under which individuals holding or applying for
a commercial driver's license or learner's permit may be
examined, for purposes of this section, by medical examiners
who are qualified to administer medical examinations for
airman certificates under chapter 447 of this title and the
regulations thereunder--
``(A) until the national registry required by subsection
(d) is fully established; and
``(B) to the extent that the Administrators determine
appropriate, after that registry is established.
``(f) Regulations.--The Secretary is authorized to
promulgate such regulations as may be necessary to carry out
this section.''.
(b) Medical Examiners.--Section 31136(a)(3) is amended to
read as follows:
``(3) the physical condition of operators of commercial
motor vehicles is adequate to enable them to operate the
vehicles safely, and the periodic physical examinations
required of such operators are performed by medical examiners
who have received training in physical and medical
examination standards and are listed on a national registry
maintained by the Department of Transportation; and''.
(c) Definition of Medical Examiner.--Section 31132 is
amended--
(1) by redesignating paragraphs (6) through (10) as
paragraphs (7) through (11), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) `medical examiner' means an individual licensed,
certified, or registered in accordance with regulations
issued by the Federal Motor Carrier Safety Administration as
a medical examiner.''.
(e) Conforming Amendment.--The chapter analysis for chapter
311 is amended by inserting after the item relating to
section 31148 the following:

``31149. Medical program''.

(f) Effective Date.--The amendment made by subsection (a)
shall take effect 1 year after the date of enactment of this
Act.

SEC. 4229. OPERATION OF COMMERCIAL MOTOR VEHICLES BY
INDIVIDUALS WHO USE INSULIN TO TREAT DIABETES
MELLITUS.

(a) Revision of Final Rule.--Not later than 90 days after
the date of the enactment of this Act, the Secretary shall
revise the final rule to allow individuals who use insulin to
treat their diabetes to operate commercial motor vehicles in
interstate commerce. The revised final rule shall provide for
the individual assessment of applicants who use insulin to
treat their diabetes and who are, except for their use of
insulin, otherwise qualified under the Federal Motor Carrier
Safety Regulations. The revised final rule shall be
consistent with the criteria described in section 4018 of the
Transportation Equity Act for the 21st Century (49 U.S.C.
31305 note) and shall conclude the rulemaking process in the
Federal Motor Carrier Safety Administration docket relating
to qualifications of drivers with diabetes.
(b) No History of Driving While Using Insulin Required for
Qualification.--The Secretary may not require individuals to
have experience operating commercial motor vehicles while
using insulin in order to qualify to operate a commercial
motor vehicle in interstate commerce.
(c) History of Diabetes Control.--The Secretary may require
an individual to have used insulin for a minimum period of
time and demonstrated stable control of diabetes in order to
qualify to operate a commercial motor vehicle in interstate
commerce. Any such requirement, including any requirement
with respect to the duration of such insulin use, shall be
consistent with the findings of the expert medical panel
reported in July 2000 in ``A Report to Congress on the
Feasibility of a Program to Qualify Individuals with Insulin-
Treated Diabetes Mellitus to Operate Commercial Motor
Vehicles in Interstate Commerce as Directed by the
Transportation Equity Act for the 21st Century''.
(d) Applicable Standard.--The Secretary shall ensure that
individuals who use insulin to treat their diabetes are not
held to a higher standard than other qualified commercial
drivers, except to the extent that limited operating,
monitoring, or medical requirements are deemed medically
necessary by experts in the field of diabetes medicine.

SEC. 4230. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR
CARRIERS.

(a) Transportation of Passengers.--
(1) Section 31138(a) is amended to read as follows:
``(a) General Requirement.--The Secretary of Transportation
shall prescribe regulations to require minimum levels of
financial responsibility sufficient to satisfy liability
amounts established by the Secretary covering public
liability and property damage for the transportation of
passengers by motor vehicle in the United States between a
place in a State and--
``(1) a place in another State;
``(2) another place in the same State through a place
outside of that State; or
``(3) a place outside the United States.''.
(2) Section 31138(c) is amended by adding at the end the
following:
``(4) The Secretary may require a person, other than a
motor carrier as defined in section 13102(12) of this title,
transporting passengers by motor vehicle to file with the
Secretary the evidence of financial responsibility specified
in subsection (c)(1) of this section in an amount not less
than that required by this section, and the laws of the State
or States in which the person is operating, to the extent
applicable. The extent of the financial responsibility must
be sufficient to pay, not more than the amount of the
financial responsibility, for each final judgment against the
person for bodily injury to, or death of, an individual
resulting from the negligent operation, maintenance, or use
of motor vehicles, or for loss or damage to property, or
both.''.
(b) Transportation of Property.--Section 31139 is amended--
(1) by striking so much of subsection (b) as precedes
paragraph (2) and inserting the following:
``(b) General Requirements and Minimum Amount.--
``(1) The Secretary of Transportation shall prescribe
regulations to require minimum levels of financial
responsibility sufficient to satisfy liability amounts
established by the Secretary covering public liability,
property damage, and environmental restoration for

[[Page S897]]

the transportation of property by motor vehicle in the United
States between a place in a State and--
``(A) a place in another State;
``(B) another place in the same State through a place
outside of that State; or
``(C) a place outside the United States.'';
(2) by aligning the left margin of paragraph (2) of
subsection (b) with the left margin of paragraph (1) of that
subsection (as amended by paragraph (1) of this subsection);
and
(3) by redesignating subsection (c) through (g) as
subsections (d) through (h), respectively, and inserting
after subsection (b) the following:
``(c) Filing of Evidence of Financial Responsibility.--The
Secretary may require a motor private carrier, as defined in
section 13102 of this title, to file with the Secretary the
evidence of financial responsibility specified in subsection
(b) of this section in an amount not less than that required
by this section, and the laws of the State or States in which
the motor private carrier is operating, to the extent
applicable. The amount of the financial responsibility must
be sufficient to pay, not more than the amount of the
financial responsibility, for each final judgment against the
motor private carrier for bodily injury to, or death of, an
individual resulting from negligent operation, maintenance,
or use of motor vehicles, or for loss or damage to property,
or both.''.

SEC. 4231. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS
AND FALSE RECORDS.

(a) Section 521(b)(2)(B) is amended to read as follows:
``(B) Recordkeeping and reporting violations.--A person
required to make a report to the Secretary, answer a
question, or make, prepare, or preserve a record under
section 504 of this title or under any regulation issued by
the Secretary pursuant to subchapter III of chapter 311
(except sections 31138 and 31139) or section 31502 of this
title about transportation by motor carrier, motor carrier of
migrant workers, or motor private carrier, or an officer,
agent, or employee of that person--
``(i) who does not make that report, does not specifically,
completely, and truthfully answer that question in 30 days
from the date the Secretary requires the question to be
answered, or does not make, prepare, or preserve that record
in the form and manner prescribed by the Secretary, shall be
liable to the United States for a civil penalty in an amount
not to exceed $1,000 for each offense, and each day of the
violation shall constitute a separate offense, except that
the total of all civil penalties assessed against any
violator for all offenses related to any single violation
shall not exceed $10,000; or
``(ii) who knowingly falsifies, destroys, mutilates, or
changes a required report or record, knowingly files a false
report with the Secretary, knowingly makes or causes or
permits to be made a false or incomplete entry in that record
about an operation or business fact or transaction, or
knowingly makes, prepares, or preserves a record in violation
of a regulation or order of the Secretary, shall be liable to
the United States for a civil penalty in an amount not to
exceed $10,000 for each violation, if any such action can be
shown to have misrepresented a fact that constitutes a
violation other than a reporting or recordkeeping
violation.''.
(b) Section 31310(i)(2) is amended to read as follows:
``(2) The Secretary shall prescribe regulations
establishing sanctions and penalties related to violations of
out-of-service orders by individuals operating commercial
motor vehicles. The regulations shall require at least that--
``(A) an operator of a commercial motor vehicle found to
have committed a first violation of an out-of-service order
shall be disqualified from operating such a vehicle for at
least 180 days and liable for a civil penalty of at least
$2,500;
``(B) an operator of a commercial motor vehicle found to
have committed a second violation of an out-of-service order
shall be disqualified from operating such a vehicle for at
least 2 years and not more than 5 years and liable for a
civil penalty of at least $5,000;
``(C) an employer that knowingly allows or requires an
employee to operate a commercial motor vehicle in violation
of an out-of-service order shall be liable for a civil
penalty of not more than $25,000; and
``(D) an employer that knowingly and willfully allows or
requires an employee to operate a commercial motor vehicle in
violation of an out-of-service order shall, upon conviction,
be subject for each offense to imprisonment for a term not to
exceed 1 year or a fine under title 18, United States Code,
or both.''.

SEC. 4232. ELIMINATION OF COMMODITY AND SERVICE EXEMPTIONS.

(a) Section 13506(a) is amended--
(1) by striking paragraphs (6), (11), (12), (13), and (15);
(2) by redesignating paragraphs (7), (8), (9), (10), and
(14) as paragraphs (6), (7), (8), (9) and (10), respectively;
(3) by inserting ``or'' after the semicolon in paragraph
(9), as redesignated; and
(4) striking ``13904(d); or'' in paragraph (1), as
redesignated, and inserting ``14904(d).''.
(b) Section 13507 is amended by striking ``(6), (8), (11),
(12), or (13)'' and inserting ``(6)''.

SEC. 4233. INTRASTATE OPERATIONS OF INTERSTATE MOTOR
CARRIERS.

(a) Subsection (a) of section 31144 is amended to read as
follows:
``(a) In General.--The Secretary shall--
``(1) determine whether an owner or operator is fit to
operate safely commercial motor vehicles, utilizing among
other things the accident record of an owner or operator
operating in interstate commerce and the accident record and
safety inspection record of such owner or operator in
operations that affect interstate commerce;
``(2) periodically update such safety fitness
determinations;
``(3) make such final safety fitness determinations readily
available to the public; and
``(4) prescribe by regulation penalties for violations of
this section consistent with section 521.''.
(b) Subsection (c) of section 31144 is amended by adding at
the end the following:
``(5) Transportation affecting interstate commerce.--Owners
or operators of commercial motor vehicles prohibited from
operating in interstate commerce pursuant to paragraphs (1)
through (3) of this section may not operate any commercial
motor vehicle that affects interstate commerce until the
Secretary determines that such owner or operator is fit.''.
(c) Section 31144 is amended by redesignating subsections
(d), (e), and the second subsection (c) as subsections (e),
(f), and (g), respectively, and inserting after subsection
(c) the following:
``(d) Determination of Unfitness by a State.--If a State
that receives Motor Carrier Safety Assistance Program funds
pursuant to section 31102 of this title determines, by
applying the standards prescribed by the Secretary under
subsection (b) of this section, that an owner or operator of
commercial motor vehicles that has its principal place of
business in that State and operates in intrastate commerce is
unfit under such standards and prohibits the owner or
operator from operating such vehicles in the State, the
Secretary shall prohibit the owner or operator from operating
such vehicles in interstate commerce until the State
determines that the owner or operator is fit.''.

SEC. 4234. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.

(a) In General.--Chapter 2 of title 18, United States Code,
is amended by adding at the end the following:

``Sec. 38. Commercial motor vehicles required to stop for
inspections

``(a) A driver of a commercial motor vehicle, as defined in
section 31132(1) of title 49, shall stop and submit to
inspection of the vehicle, driver, cargo, and required
records when directed to do so by an authorized employee of
the Federal Motor Carrier Safety Administration, Department
of Transportation, at or in the vicinity of an inspection
site. The driver shall not leave the inspection site until
authorized to do so by an authorized employee.
``(b) A driver of a commercial motor vehicle, as defined in
subsection (a), who knowingly fails to stop for inspection
when directed to do so by an authorized employee of the
Federal Motor Carrier Safety Administration at or in the
vicinity of an inspection site, or leaves the inspection site
without authorization, shall be fined under this title or
imprisoned not more than 1 year, or both.''.
(b) Authority of FMCSA.--Chapter 203 of title 18, United
States Code, is amended by adding at the end the following:

``Sec. 3064. Powers of Federal Motor Carrier Safety
Administration

``Authorized employees of the Federal Motor Carrier Safety
Administration may direct a driver of a commercial motor
vehicle, as defined in 49 U.S.C. 31132(1), to stop for
inspection of the vehicle, driver, cargo, and required
records at or in the vicinity of an inspection site.''.
(c) Conforming Amendments.--
(1) The chapter analysis for chapter 2 of title 18, United
States Code, is amended by inserting after the item relating
to section 37 the following:

``38. Commercial motor vehicles required to stop for inspections.''.

(2) The chapter analysis for chapter 203 of title 18,
United States Code, is amended by inserting after the item
relating to section 3063 the following:

``3064. Powers of Federal Motor Carrier Safety Administration.''.

SEC. 4235. REVOCATION OF OPERATING AUTHORITY.

Section 13905(e) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Protection of safety.--Notwithstanding subchapter II
of chapter 5 of title 5, the Secretary--
``(A) may suspend the registration of a motor carrier, a
freight forwarder, or a broker for failure to comply with
requirements of the Secretary pursuant to section 13904(c) or
13906 of this title, or an order or regulation of the
Secretary prescribed under those sections; and
``(B) shall revoke the registration of a motor carrier that
has been prohibited from operating in interstate commerce for
failure to comply with the safety fitness requirements of
section 31144 of this title.'';
(2) by striking ``may suspend a registration''in paragraph
(2) and inserting ``shall revoke the registration''; and
(3) by striking paragraph (3) and inserting the following:
``(3) Notice; period of suspension.--The Secretary may
suspend or revoke under this

[[Page S898]]

subsection the registration only after giving notice of the
suspension or revocation to the registrant. A suspension
remains in effect until the registrant complies with the
applicable sections or, in the case of a suspension under
paragraph (2), until the Secretary revokes the suspension.''.

SEC. 4236. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER
MANAGEMENT.

(a) In General.--Section 31135 is amended--
(1) by inserting ``(a) In General.--'' before ``Each''; and
(2) by adding at the end the following:
``(b) Pattern of Non-Compliance.--If an officer of a motor
carrier engages in a pattern or practice of avoiding
compliance, or masking or otherwise concealing non-
compliance, with regulations on commercial motor vehicle
safety prescribed under this subchapter, the Secretary may
suspend, amend, or revoke any part of the motor carrier's
registration under section 13905 of this title.
``(c) List of Proposed Officers.--Each person seeking
registration as a motor carrier under section 13902 of this
title shall submit a list of the proposed officers of the
motor carrier. If the Secretary determines that any of the
proposed officers has previously engaged in a pattern or
practice of avoiding compliance, or masking or otherwise
concealing non-compliance, with regulations on commercial
motor vehicle safety prescribed under this chapter, the
Secretary may deny the person's application for registration
as a motor carrier under section 13902(a)(3).
``(d) Regulations.--The Secretary shall by regulation
establish standards to implement subsections (b) and (c).
``(e) Definitions.--In this section:
``(1) Motor carrier.--The term motor carrier has the
meaning given the term in section 13102(12) of this title;
and
``(2) Officer.--The term officer means an owner, chief
executive officer, chief operating officer, chief financial
officer, safety director, vehicle maintenance supervisor and
driver supervisor of a motor carrier, regardless of the title
attached to those functions.''.
(b) Registration of Carriers.--Section 13902(a)(1)(B) is
amended to read as follows:
``(B) any safety regulations imposed by the Secretary, the
duties of employers and employees established by the
Secretary under section 31135, and the safety fitness
requirements established by the Secretary under section
31144; and''.

SEC. 4237. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.

(a) In General--Section 31108 is amended to read as
follows:

``Sec. 31108. Motor carrier research and technology program

``(a) Research, Technology, and Technology Transfer
Activities.--
``(1) The Secretary of Transportation shall establish and
carry out a motor carrier and motor coach research and
technology program. The Secretary may carry out research,
development, technology, and technology transfer activities
with respect to--
``(A) the causes of accidents, injuries and fatalities
involving commercial motor vehicles; and
``(B) means of reducing the number and severity of
accidents, injuries and fatalities involving commercial motor
vehicles.
``(2) The Secretary may test, develop, or assist in testing
and developing any material, invention, patented article, or
process related to the research and technology program.
``(3) The Secretary may use the funds appropriated to carry
out this section for training or education of commercial
motor vehicle safety personnel, including, but not limited
to, training in accident reconstruction and detection of
controlled substances or other contraband, and stolen cargo
or vehicles.
``(4) The Secretary may carry out this section--
``(A) independently;
``(B) in cooperation with other Federal departments,
agencies, and instrumentalities and Federal laboratories; or
``(C) by making grants to, or entering into contracts,
cooperative agreements, and other transactions with, any
Federal laboratory, State agency, authority, association,
institution, for-profit or non-profit corporation,
organization, foreign country, or person.
``(5) The Secretary shall use funds made available to carry
out this section to develop, administer, communicate, and
promote the use of products of research, technology, and
technology transfer programs under this section.
``(b) Collaborative Research and Development.--
``(1) To advance innovative solutions to problems involving
commercial motor vehicle and motor carrier safety, security,
and efficiency, and to stimulate the deployment of emerging
technology, the Secretary may carry out, on a cost-shared
basis, collaborative research and development with--
``(A) non-Federal entities, including State and local
governments, foreign governments, colleges and universities,
corporations, institutions, partnerships, and sole
proprietorships that are incorporated or established under
the laws of any State; and
``(B) Federal laboratories.
``(2) In carrying out this subsection, the Secretary may
enter into cooperative research and development agreements
(as defined in section 12 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3710a)).
``(3)(A) The Federal share of the cost of activities
carried out under a cooperative research and development
agreement entered into under this subsection shall not exceed
50 percent, except that if there is substantial public
interest or benefit, the Secretary may approve a greater
Federal share.
``(B) All costs directly incurred by the non-Federal
partners, including personnel, travel, and hardware or
software development costs, shall be credited toward the non-
Federal share of the cost of the activities described in
subparagraph (A).
``(4) The research, development, or use of a technology
under a cooperative research and development agreement
entered into under this subsection, including the terms under
which the technology may be licensed and the resulting
royalties may be distributed, shall be subject to the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3701 et seq.).
``(5) Section 5 of title 41, United States Code, shall not
apply to a contract or agreement entered into under this
section.
``(c) Availability of Amounts.--The amounts made available
under section 4222(a) of the Motor Carrier Safety
Reauthorization Act of 2004 to carry out this section shall
remain available until expended.
``(d) Contract Authority.--Approval by the Secretary of a
grant with funds made available under section 4222(a) of the
Motor Carrier Safety Reauthorization Act of 2004 to carry out
this section imposes upon the United States Government a
contractual obligation for payment of the Government's share
of costs incurred in carrying out the objectives of the
grant.''.
(b) Conforming Amendment.--The chapter analysis for chapter
311 is amended by striking the item relating to section
31108, and inserting the following:

``31108. Motor carrier research and technology program.''.

SEC. 4238. REVIEW OF COMMERCIAL ZONE EXEMPTION PROVISION.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Transportation shall
complete a review of part 372 of title 49, Code of Federal
Regulations, as it pertains to commercial zone exemptions
(excluding border commercial zones) from Department of
Transportation and Surface Transportation Board regulations
governing interstate commerce. The Secretary shall determine
whether such exemptions should continue to apply as written,
should undergo revision, or should be revoked. The Secretary
shall submit to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee
on Transportation and Infrastructure a report of the review
not later than 14 months after such date of enactment.
(b) Notice.--The Secretary shall publish notice of the
review required by subsection (a) and provide and opportunity
for the public to submit comments on the effect of
continuing, revising, or revoking the commercial zone
exemptions in part 372 of title 49, Code of Federal
Regulations.

SEC. 4239. INTERNATIONAL COOPERATION.

(a) In General.--Chapter 311 is amended by inserting at the
end the following:

``SUBCHAPTER IV--MISCELLANEOUS

``Sec. 31161. International cooperation

``The Secretary is authorized to use funds appropriated
under section 31104(i) of this title to participate and
cooperate in international activities to enhance motor
carrier, commercial motor vehicle, driver, and highway safety
by such means as exchanging information, conducting research,
and examining needs, best practices, and new technology.''.
(b) Clerical Amendment.--The chapter analysis for chapter
311 is amended by adding at the end the following:

``SUBCHAPTER IV--MISCELLANEOUS
``31161. International cooperation.''.

SEC. 4240. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM
MANAGEMENT.

(a) In General.--Section 31106(b) is amended--
(1) by striking paragraphs (2) and (3) and inserting the
following:
``(2) Design.--The program shall link Federal motor carrier
safety information systems with State commercial vehicle
registration and licensing systems and shall be designed to
enable a State to--
``(A) determine the safety fitness of a motor carrier or
registrant when licensing or registering the registrant or
motor carrier or while the license or registration is in
effect; and
``(B) deny, suspend, or revoke the commercial motor vehicle
registrations of a motor carrier or registrant that has been
issued an operations out-of-service order by the Secretary.
``(3) Conditions for Participation.--The Secretary shall
require States, as a condition of participation in the
program, to--
``(A) comply with the uniform policies, procedures, and
technical and operational standards prescribed by the
Secretary under subsection (a)(4);
``(B) possess the authority to impose sanctions relating to
commercial motor vehicle registration on the basis of a
Federal safety fitness determination; and
``(C) cancel the motor vehicle registration and seize the
registration plates of an employer found liable under section

[[Page S899]]

31310(i)(2)(C) of this title for knowingly allowing or
requiring an employee to operate a commercial motor vehicle
in violation of an out-of-service order.''; and
(2) by striking paragraph (4).
(b) Performance and Registration Information System
Management Grants.--
(1) Subchapter I of chapter 311, as amended by this title,
is further amended by adding at the end the following:

``Sec. 31109. Performance and Registration Information System
Management

``(a) In General.--From the funds authorized by section
4222(c)(2) of the Motor Carrier Safety Reauthorization Act of
2004, the Secretary may make a grant in a fiscal year to a
State to implement the performance and registration
information system management requirements of section
31106(b).
``(b) Availability of Amounts.--Amounts made available to a
State under section 4222(c)(2) of the Motor Carrier Safety
Reauthorization Act of 2004 to carry out this section shall
remain available until expended.
``(c) Secretary's Approval.--Approval by the Secretary of a
grant to a State under section 4222(c)(2) of the Motor
Carrier Safety Reauthorization Act of 2004 to carry out this
section is a contractual obligation of the Government for
payment of the amount of the grant.''.
(2) Conforming amendment.--The chapter analysis for chapter
311 is amended by inserting after the item relating to
section 31108 the following:

``31109. Performance and Registration Information System Management.''.

SEC. 4241. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND
NETWORKS DEPLOYMENT.

(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
(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.
(c) Core Deployment Grants.--
(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 $2,500,000.
(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 completed 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
$1,000,000 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 4222(c)(4) 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:
(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.--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
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 for access to
interstate carrier and commercial vehicle data.
(B) Interstate credentials administration.--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 and International Fuel Tax Agreement
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 and
International Fuel Tax Agreement 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 screening.--Roadside electronic screening to
electronically screen transponder-equipped commercial
vehicles at a minimum of 1 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.

SEC. 4242. OUTREACH AND EDUCATION.

(a) In General.--The Secretary of Transportation, through
the National Highway Traffic Safety Administration and the
Federal Motor Carrier Safety Administration, may undertake
outreach and education initiatives, including the ``Share the
Road Safely'' program, that may reduce the number of highway
accidents, injuries, and fatalities involving commercial
motor vehicles. The Secretary may not use funds authorized by
this part for the ``Safety Is Good Business'' program.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for fiscal year 2004 to
carry out this section--
(1) $250,000 for the Federal Motor Carrier Safety
Administration; and
(2) $750,000 for the National Highway Traffic Safety
Administration.

SEC. 4243. OPERATION OF RESTRICTED PROPERTY-CARRYING UNITS ON
NATIONAL HIGHWAY SYSTEM.

(a) Restricted Property-Carrying Unit Defined.--Section
31111(a) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and

[[Page S900]]

(2) by inserting after paragraph (2) the following:
``(3) Restricted property-carrying unit.--The term
`restricted property-carrying unit' means any trailer, semi-
trailer, container, or other property-carrying unit that is
longer than 53 feet.''.
(b) Prohibition on Operation of Restricted Property-
Carrying Units.--
(1) In general.--Section 31111(b)(1)(C) is amended to read
as follows:
``(C) allows operation on any segment of the National
Highway System, including the Interstate System, of a
restricted property-carrying unit unless the operation is
specified on the list published under subsection (h);''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect 270 days after the date of enactment of
this subsection.
(c) Limitations.--Section 31111 is amended by adding at the
end the following:
``(h) Restricted Property-Carrying Units.--
``(1) Applicability of prohibition.--
``(A) In general.--Notwithstanding subsection (b)(1)(C), a
restricted property-carrying unit may continue to operate on
a segment of the National Highway System if the operation of
such unit is specified on the list published under paragraph
(2).
``(B) Applicability of state laws and regulations.--All
operations specified on the list published under paragraph
(2) shall continue to be subject to all State statutes,
regulations, limitations and conditions, including routing-
specific, commodity-specific, and configuration-specific
designations and all other restrictions, in force on June 1,
2003.
``(C) Fire-fighting units.--Subsection (b)(1)(C) shall not
apply to the operation of a restricted property-carrying unit
that is used exclusively for fire-fighting.
``(2) Listing of restricted property-carrying units.--
``(A) In general.--Not later than 60 days after the date of
enactment of this subsection, the Secretary shall initiate a
proceeding to determine and publish a list of restricted
property-carrying units that were authorized by State
officials pursuant to State statute or regulation on June 1,
2003, and in actual and lawful operation on a regular or
periodic basis (including seasonal operations) on or before
June 1, 2003.
``(B) Limitation.--A restricted property-carrying unit may
not be included on the list published under subparagraph (A)
on the basis that a State law or regulation could have
authorized the operation of the unit at some prior date by
permit or otherwise.
``(C) Publication of final list.--Not later than 270 days
after the date of enactment of this subsection, the Secretary
shall publish a final list of restricted property-carrying
units described in subparagraph (A).
``(D) Updates.--The Secretary shall update the list
published under subparagraph (C) as necessary to reflect new
designations made to the National Highway System.
``(3) Applicability of prohibition.--The prohibition
established by subsection (b)(1)(C) shall apply to any new
designation made to the National Highway System and remain in
effect on those portions of the National Highway System that
cease to be designated as part of the National Highway
System.
``(4) Limitation on statutory construction.--This
subsection does not prevent a State from further restricting
in any manner or prohibiting the operation of a restricted
property-carrying unit; except that such restrictions or
prohibitions shall be consistent with the requirements of
this section and sections 31112 through 31114.''.
(d) Enforcement.--The second sentence of section 141(a) of
title 23, United States Code, is amended by striking
``section 31112'' and inserting ``sections 31111 and 31112''.

SEC. 4244. OPERATION OF LONGER COMBINATION VEHICLES ON
NATIONAL HIGHWAY SYSTEM.

(a) In General.--Section 31112 is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) National Highway System.--
``(1) General rule.--A State may not allow, on a segment of
the National Highway System that is not covered under
subsection (b) or (c), the operation of a commercial motor
vehicle combination (except a vehicle or load that cannot be
dismantled easily or divided easily and that has been issued
a special permit under applicable State law) with more than 1
property-carrying unit (not including the truck tractor)
whose property-carrying units are more than--
``(A) the maximum combination trailer, semitrailer, or
other type of length limitation allowed by law or regulation
of that State on June 1, 2003; or
``(B) the length of the property-carrying units of those
commercial motor vehicle combinations, by specific
configuration, in actual and lawful operation on a regular or
periodic basis (including continuing seasonal operation) in
that State on or before June 1, 2003.
``(2) Additional limitations.--
``(A) Applicability of state restrictions.--A commercial
motor vehicle combination whose operation in a State is not
prohibited under paragraph (1) may continue to operate in the
State on highways described in paragraph (1) only in
compliance with all State laws, regulations, limitations, and
conditions, including routing-specific and configuration-
specific designations and all other restrictions in force in
the State on June 1, 2003. Subject to regulations prescribed
by the Secretary under subsection (h), the State may make
minor adjustments of a temporary and emergency nature to
route designations and vehicle operating restrictions in
effect on June 1, 2003, for specific safety purposes and road
construction.
``(B) Additional state restrictions.--This subsection does
not prevent a State from further restricting in any manner or
prohibiting the operation of a commercial motor vehicle
combination subject to this section, except that such
restrictions or prohibitions shall be consistent with this
section and sections 31113(a), 31113(b), and 31114.
``(C) Minor adjustments.--A State making a minor adjustment
of a temporary and emergency nature as authorized by
subparagraph (A) or further restricting or prohibiting the
operation of a commercial motor vehicle combination as
authorized by subparagraph (B) shall advise the Secretary not
later than 30 days after the action. The Secretary shall
publish a notice of the action in the Federal Register.
``(3) List of state length limitations.--
``(A) State submissions.--Not later than 60 days after the
date of enactment of the Motor Carrier Safety Reauthorization
Act of 2004, each State shall submit to the Secretary for
publication a complete list of State length limitations
applicable to commercial motor vehicle combinations operating
in the State on the highways described in paragraph (1). The
list shall indicate the applicable State laws and regulations
associated with the length limitations. If a State does not
submit the information as required, the Secretary shall
complete and file the information for the State.
``(B) Publication of interim list.--Not later than 90 days
after the date of enactment of the Motor Carrier Safety
Reauthorization Act of 2004, the Secretary shall publish an
interim list in the Federal Register consisting of all
information submitted under subparagraph (A). The Secretary
shall review for accuracy all information submitted by a
State under subparagraph (A) and shall solicit and consider
public comment on the accuracy of the information.
``(C) Limitation.--A law or regulation may not be included
on the list submitted by a State or published by the
Secretary merely because it authorized, or could have
authorized, by permit or otherwise, the operation of
commercial motor vehicle combinations not in actual operation
on a regular or periodic basis on or before June 1, 2003.
``(D) Publication of final list.--Except as revised under
this subparagraph or subparagraph (E), the list shall be
published as final in the Federal Register not later than 270
days after the date of enactment of the Motor Carrier Safety
Reauthorization Act of 2004. In publishing the final list,
the Secretary shall make any revisions necessary to correct
inaccuracies identified under subparagraph (B). After
publication of the final list, commercial motor vehicle
combinations prohibited under paragraph (1) may not operate
on a highway described in paragraph (1) except as published
on the list.
``(E) Inaccuracies.--On the Secretary's own motion or on
request by any person (including a State), the Secretary
shall review the list published under subparagraph (D). If
the Secretary decides there is reason to believe a mistake
was made in the accuracy of the list, the Secretary shall
begin a proceeding to decide whether a mistake was made. If
the Secretary decides there was a mistake, the Secretary
shall publish the correction.''.
(b) Conforming Amendments.--Section 31112 is amended--
(1) by inserting ``126(e) or'' before ``127(d)'' in
subsection (g)(1) (as redesignated by subsection (a) of this
section);
(2) by inserting ``(or June 1, 2003, with respect to
highways described in subsection (f)(1))'' after ``June 2,
1991'' in subsection (g)(3) (as redesignated by subsection
(a) of this section); and
(3) by striking ``Not later than June 15, 1992, the
Secretary'' in subsection (h)(2) (as redesignated by
subsection (a) of this section) and inserting ``The
Secretary''; and
(4) by inserting ``or (f)'' in subsection (h)(2) (as
redesignated by subsection (a) of this section) after
``subsection (d)''.

SEC. 4245. APPLICATION OF SAFETY STANDARDS TO CERTAIN FOREIGN
MOTOR CARRIERS.

(a) Application of Safety Standards.--Section 30112 is
amended--
(1) by striking ``person'' in subsection (a) and inserting
``person, including a foreign motor carrier,''; and
(2) by adding at the end the following:
``(c) Definitions.--In this section:
``(1) Foreign motor carrier.--The term `foreign motor
carrier' has the meaning given that term in section 13102 of
this title.
``(2) Import.--The term `import' means transport by any
means into the United States, on a permanent or temporary
basis, including the transportation of a motor vehicle into
the United States for the purpose of providing the
transportation of cargo or passengers.''.
(b) Requirement for Certificate of Compliance.--Section
30115 is amended by adding at the end the following:
``(c) Application to Foreign Motor Carriers.--
``(1) In general.--The requirement for certification
described in subsection (a) shall

[[Page S901]]

apply to a foreign motor carrier that imports a motor vehicle
or motor vehicle equipment into the United States. Such
certification shall be made to the Secretary of
Transportation prior to the import of the vehicle or
equipment.
``(2) Definitions.--In this subsection:
``(A) Foreign motor carrier.--The term `foreign motor
carrier' has the meaning given that term in section 13102 of
this title.
``(B) Import.--The term `import' has the meaning given that
term in section 30112 of this title.''.
(c) Time for Compliance.--The amendments made by sections
(a) and (b) shall take effect on September 1, 2004.

SEC. 4246. BACKGROUND CHECKS FOR MEXICAN AND CANADIAN DRIVERS
HAULING HAZARDOUS MATERIALS.

(a) In General.--No commercial motor vehicle operator
registered to operate in Mexico or Canada may operate a
commercial motor vehicle transporting a hazardous material in
commerce in the United States until the operator has
undergone a background records check similar to the
background records check required for commercial motor
vehicle operators licensed in the United States to transport
hazardous materials in commerce.
(b) Definitions.--In this section:
(1) Hazardous materials.--The term ``hazardous material''
means any material determined by the Secretary of
Transportation to be a hazardous material for purposes of
this section.
(2) Commercial motor vehicle.--The term ``commercial motor
vehicle'' has the meaning given that term by section 31101 of
title 49, United States Code.
(c) Effective Date.--This section takes effect on April 1,
2004.

SEC. 4247. EXEMPTION OF DRIVERS OF UTILITY SERVICE VEHICLES.

Section 345 of the National Highway System Designation Act
of 1995 (49 U.S.C. 31136 note) is amended--
(1) by striking paragraph (4) of subsection (a) and
inserting the following:
``(4) Drivers of utility service vehicles.--
``(A) Inapplicability of federal regulations.--Such
regulations may not apply to a driver of a utility service
vehicle.
``(B) Prohibition on state regulations.--A State, a
political subdivision of a State, an interstate agency, or
other entity consisting of 2 or more States, may not enact or
enforce any law, rule, regulation, or standard that imposes
requirements on a driver of a utility service vehicle that
are similar to the requirements contained in such
regulations.'';
(2) by striking ``Nothing'' in subsection (b) and inserting
``Except as provided in subsection (a)(4), nothing''; and
(3) by striking ``paragraph (2)'' in the first sentence of
subsection (c) and inserting ``an exemption under paragraph
(2) or (4)''.

SEC. 4248. OPERATION OF COMMERCIAL MOTOR VEHICLES
TRANSPORTING AGRICULTURAL COMMODITIES AND FARM
SUPPLIES.

(a) Exemption From Hours-of-Service Requirements.--
(1) In general.--Section 345(c) of the National Highway
System Designation Act of 1995 (49 U.S.C. 31136 note), as
amended by section 4247(3) of this title, is amended by
striking ``paragraph (2) or (4)'' and inserting ``paragraph
(1), (2), or (4) of that subsection)''.
(2) Applicability.--The exemption provided by section
345(a)(1) of the National Highway System Designation Act of
1995 (49 U.S.C. 31136 note) shall apply to a person
transporting agricultural commodities or farm supplies for
agricultural purposes under that section on and after the
date of enactment of this Act regardless of any action taken
by the Secretary of Transportation under section 345(c) of
that Act before the date of enactment of this Act.
(b) Definition of Agricultural Commodity.--Section 345(e)
of the National Highway System Designation Act of 1995 (49
U.S.C. 31136 note) is amended--
(1) by redesignating paragraphs (3), (4), (5), and (6) as
paragraphs (5), (6), (4), and (7), respectively, and moving
the paragraphs so as to appear in numerical order; and
(2) by inserting after paragraph (2) the following:
``(3) Agricultural commodity.--The term `agricultural
commodity' has the meaning given the term in section 102 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602).''.

SEC. 4249. SAFETY PERFORMANCE HISTORY SCREENING.

(a) In General.--Subchapter III of chapter 311, as amended
by section 4228, is amended by adding at the end the
following:

``Sec. 31150. Safety performance history screening

``(a) In General.--The Secretary of Transportation shall
provide companies conducting pre-employment screening
services for the motor carrier industry electronic access
to--
``(1) commercial motor vehicle accident reports,
``(2) inspection reports that contain no driver-related
safety violations, and
``(3) serious driver-related safety violation inspection
reports that are contained in the Motor Carrier Management
Information System.
``(b) Establishment.--Prior to making information available
to such companies under subsection (a), the Secretary shall--
``(1) ensure that any information released is done in
accordance with the Fair Credit Reporting Act (15 U.S.C. 1681
et seq.) and all applicable Federal laws;
``(2) require the driver applicant's written consent as a
condition of releasing the information;
``(3) ensure that the information made available to
companies providing pre-employment screening services is not
released to any other unauthorized company or individual,
unless expressly authorized or required by law; and
``(4) provide a procedure for drivers to remedy incorrect
information in a timely manner.
``(c) Design.--To be eligible to have access to information
under subsection (a), a company conducting pre-employment
screening services for the motor carrier industry shall
utilize a screening process--
``(1) that is designed to assist the motor carrier industry
in assessing an individual driver's crash and serious safety
violation inspection history as a pre-employment condition;
``(2) the use of which is not mandatory; and
``(3) which is used only during the pre-employment
assessment of a driver-applicant.
``(d) Serious Driver-related Safety Violations.--In this
section, the term `serious driver-related safety violation'
means a violation listed in the North American Standard
Driver Out-of-service Criteria that prohibits the continued
operation of a commercial motor vehicle.''.
(b) Conforming Amendment.--The chapter analysis for chapter
311, as amended by section 4228, is amended by inserting
after the item relating to section 31149 the following:

``31150. Safety performance history screening''.

SEC. 4250. COMPLIANCE REVIEW AUDIT.

Within 1 year after the date of enactment of this Act, the
Inspector General for the Department of Transportation shall
audit the compliance reviews performed by the Federal Motor
Carrier Safety Administration in fiscal year 2003 and submit
a report to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure on--
(1) the enforcement actions taken as a result of the
compliance reviews, including fines, suspension or revocation
of operating authority, unsatisfactory ratings, and follow-up
actions to ensure compliance with Federal motor carrier
safety regulations;
(2) whether compliance reviews are or should be performed
on a corporate-wide basis for all affiliates of the motor
carrier selected for a compliance review as a result of its
Safety Status Measurement System ranking or the submission of
a complaint;
(3) whether the enforcement actions taken by the Federal
Motor Carrier Safety Administration are adequate to assure
future compliance of the motor carrier with Federal safety
regulations and what deterrent effect those enforcement
actions may have industry-wide;
(4) whether the methodology for calculating the crash rate
of commercial motor vehicles in the Safety Status Measurement
System would be more appropriately based on the number of
vehicle miles driven by a motor carrier rather than the
number of trucks operated by the carrier;
(5) whether the public access information in the Safety
Status Measurement System meets the agency's requirements
under the Data Quality Act; and
(6) the existing information Selection System Indicators
criteria and weighting and whether the safety evaluation area
containing data on accidents should receive higher priority
for complaince reviews and inspection selection.
(5) whether the public access information in the Safety
Status Measurement System meets the agency's requirements
under the Data Quality Act.

Part 2--Unified Carrier Registration

SEC. 4261. SHORT TITLE.

This part may be cited as the ``Unified Carrier
Registration Act of 2004''.

SEC. 4262. RELATIONSHIP TO OTHER LAWS.

Except as provided in section 14504 of title 49, United
States Code, and sections 14504a and 14506 of title 49,
United States Code, as added by this part, this part is not
intended to prohibit any State or any political subdivision
of any State from enacting, imposing, or enforcing any law or
regulation with respect to a motor carrier, motor private
carrier, broker, freight forwarder, or leasing company that
is not otherwise prohibited by law.

SEC. 4263. INCLUSION OF MOTOR PRIVATE AND EXEMPT CARRIERS.

(a) Persons Registered To Provide Transportation or Service
as a Motor Carrier or Motor Private Carrier.--Section 13905
is amended by--
(1) redesignating subsections (b), (c), (d), and (e) as
subsections (c), (d), (e), and (f), respectively; and
(2) inserting after subsection (a) the following:
``(b) Person Registered With Secretary.--Any person having
registered with the Secretary to provide transportation or
service as a motor carrier or motor private carrier under
this title, as in effect on January 1, 2002, but not having
registered pursuant to section 13902(a) of this title, shall
be deemed, for purposes of this part, to be registered to
provide such transportation or service for purposes of
sections 13908 and 14504a of this title.''.
(b) Security Requirement.--Section 13906(a) is amended by--

[[Page S902]]

(1) redesignating paragraphs (2) and (3) as paragraphs (3)
and (4), respectively; and
(2) inserting the following:
``(2) Security Requirement.--Not later than 120 days after
the date of enactment of the Unified Carrier Registration Act
of 2004, any person, other than a motor private carrier,
registered with the Secretary to provide transportation or
service as a motor carrier under section 13905(b) of this
title shall file with the Secretary a bond, insurance policy,
or other type of security approved by the Secretary, in an
amount not less than required by sections 31138 and 31139 of
this title.''.

SEC. 4264. UNIFIED CARRIER REGISTRATION SYSTEM.

(a) Section 13908 is amended to read as follows:

``Sec. 13908. Registration and other reforms

``(a) Establishment of Unified Carrier Registration
System.--The Secretary, in cooperation with the States,
representatives of the motor carrier, motor private carrier,
freight forwarder and broker industries, and after notice and
opportunity for public comment, shall issue within 1 year
after the date of enactment of the Unified Carrier
Registration Act of 2004 regulations to establish, an online,
Federal registration system to be named the Unified Carrier
Registration System to replace--
``(1) the current Department of Transportation
identification number system, the Single State Registration
System under section 14504 of this title;
``(2) the registration system contained in this chapter and
the financial responsibility information system under section
13906; and
``(3) the service of process agent systems under sections
503 and 13304 of this title.
``(b) Role as Clearinghouse and Depository of
Information.--The Unified Carrier Registration System shall
serve as a clearinghouse and depository of information on,
and identification of, all foreign and domestic motor
carriers, motor private carriers, brokers, and freight
forwarders, and others required to register with the
Department, including information with respect to a carrier's
safety rating, compliance with required levels of financial
responsibility, and compliance with the provisions of section
14504a of this title. The Secretary shall ensure that Federal
agencies, States, representatives of the motor carrier
industry, and the public have access to the Unified Carrier
Registration System, including the records and information
contained in the System.
``(c) Procedures for Correcting Information.--Not later
than 60 days after the effective date of this section, the
Secretary shall prescribe regulations establishing procedures
that enable a motor carrier to correct erroneous information
contained in any part of the Unified Carrier Registration
System.
``(d) Fee system.--The Secretary shall establish, under
section 9701 of title 31, a fee system for the Unified
Carrier Registration System according to the following
guidelines:
``(1) Registration and filing evidence of financial
responsibility.--The fee for new registrants shall as nearly
as possible cover the costs of processing the registration
and conducting the safety audit or examination, if required,
but shall not exceed $300.
``(2) Evidence of financial responsibility.--The fee for
filing evidence of financial responsibility pursuant to this
section shall not exceed $10 per filing. No fee shall be
charged for a filing for purposes of designating an agent for
service of process or the filing of other information
relating to financial responsibility.
``(3) Access and retrieval fees.--
``(A) In general.--Except as provided in subparagraph (B),
the fee system shall include a nominal fee for the access to
or retrieval of information from the Unified Carrier
Registration System to cover the costs of operating and
upgrading the System, including the personnel costs incurred
by the Department and the costs of administration of the
Unified Carrier Registration Agreement.
``(B) Exceptions.--There shall be no fee charged--
``(i) to any agency of the Federal Government or a State
government or any political subdivision of any such
government for the access to or retrieval of information and
data from the Unified Carrier Registration System for its own
use; or
``(ii) to any representative of a motor carrier, motor
private carrier, leasing company, broker, or freight
forwarder (as each is defined in section 14504a of this
title) for the access to or retrieval of the individual
information related to such entity from the Unified Carrier
Registration System for the individual use of such entity.''.

SEC. 4265. REGISTRATION OF MOTOR CARRIERS BY STATES.

(a) Termination of Registration Provisions.--Section 14504
is amended by adding at the end the following:
``(d) Termination of Provisions.--Subsections (b) and (c)
shall cease to be effective on the first January 1st
occurring more than 12 months after the date of enactment of
the Unified Carrier Registration Act of 2004.''.
(b) Unified Carrier Registration System Plan and
Agreement.--Chapter 145 is amended by inserting after section
14504 the following:

``Sec. 14504a. Unified carrier registration system plan and
agreement

``(a) Definitions.--In this section and section 14506 of
this title:
``(1) Commercial motor vehicle.--
``(A) In general.--Except as provided in subparagraph (B),
the term `commercial motor vehicle' has the meaning given the
term in section 31101 of this title.
``(B) Exception.--With respect to motor carriers required
to make any filing or pay any fee to a State with respect to
the motor carrier's authority or insurance related to
operation within such State, the term `commercial motor
vehicle' means any self-propelled vehicle used on the highway
in commerce to transport passengers or property for
compensation regardless of the gross vehicle weight rating of
the vehicle or the number of passengers transported by such
vehicle.
``(2) Base-state.--
``(A) In general.--The term `Base-State' means, with
respect to the Unified Carrier Registration Agreement, a
State--
``(i) that is in compliance with the requirements of
subsection (e); and
``(ii) in which the motor carrier, motor private carrier,
broker, freight forwarder or leasing company maintains its
principal place of business.
``(B) Designation of base-state.--A motor carrier, motor
private carrier, broker, freight forwarder or leasing company
may designate another State in which it maintains an office
or operating facility as its Base-State in the event that--
``(i) the State in which the motor carrier, motor private
carrier, broker, freight forwarder or leasing company
maintains its principal place of business is not in
compliance with the requirements of subsection (e); or
``(ii) the motor carrier, motor private carrier, broker,
freight forwarder or leasing company does not have a
principal place of business in the United States.
``(3) Intrastate fee.--The term `intrastate fee' means any
fee, tax, or other type of assessment, including per vehicle
fees and gross receipts taxes, imposed on a motor carrier or
motor private carrier for the renewal of the intrastate
authority or insurance filings of such carrier with a State.
``(4) Leasing company.--The term `leasing company' means a
lessor that is engaged in the business of leasing or renting
for compensation motor vehicles without drivers to a motor
carrier, motor private carrier, or freight forwarder.
``(5) Motor carrier.--The term `motor carrier' has the
meaning given the term in section 13102(12) of this title,
but shall include all carriers that are otherwise exempt from
the provisions of part B of this title pursuant to the
provisions of chapter 135 of this title or exemption actions
by the former Interstate Commerce Commission under this
title.
``(6) Participating state.--The term `participating state'
means a State that has complied with the requirements of
subsection (e) of this section.
``(7) SSRS.--The term `SSRS' means the Single State
Registration System in effect on the date of enactment of the
Unified Carrier Registration Act of 2004.
``(8) Unified carrier registration agreement.--The terms
`Unified Carrier Registration Agreement' and `UCR Agreement'
mean the interstate agreement developed under the Unified
Carrier Registration Plan governing the collection and
distribution of registration and financial responsibility
information provided and fees paid by motor carriers, motor
private carriers, brokers, freight forwarders and leasing
companies pursuant to this section.
``(9) Unified carrier registration plan.--The terms
`Unified Carrier Registration Plan' and `UCR Plan' mean the
organization of State, Federal and industry representatives
responsible for developing, implementing and administering
the Unified Carrier Registration Agreement.
``(10) Vehicle registration.--The term `vehicle
registration' means the registration of any commercial motor
vehicle under the International Registration Plan or any
other registration law or regulation of a jurisdiction.
``(b) Applicability of Provisions to Freight Forwarders.--A
Freight forwarder that operates commercial motor vehicles and
is not required to register as a carrier pursuant to section
13903(b) of this title shall be subject to the provisions of
this section as if a motor carrier.
``(c) Unreasonable Burden.--For purposes of this section,
it shall be considered an unreasonable burden upon interstate
commerce for any State or any political subdivision of a
State, or any political authority of 2 or more States--
``(1) to enact, impose, or enforce any requirement or
standards, or levy any fee or charge on any interstate motor
carrier or interstate motor private carrier in connection
with--
``(A) the registration with the State of the interstate
operations of a motor carrier or motor private carrier;
``(B) the filing with the State of information relating to
the financial responsibility of a motor carrier or motor
private carrier pursuant to sections 31138 or 31139 of this
title;
``(C) the filing with the State of the name of the local
agent for service of process of a motor carrier or motor
private carrier pursuant to sections 503 or 13304 of this
title; or
``(D) the annual renewal of the intrastate authority, or
the insurance filings, of a motor carrier or motor private
carrier, or

[[Page S903]]

other intrastate filing requirement necessary to operate
within the State, if the motor carrier or motor private
carrier is--
``(i) registered in compliance with section 13902 or
section 13905(b) of this title; and
``(ii) in compliance with the laws and regulations of the
State authorizing the carrier to operate in the State
pursuant to section 14501(c)(2)(A) of this title
except with respect to--

``(I) intrastate service provided by motor carriers of
passengers that is not subject to the preemptive provisions
of section 14501(a) of this title,
``(II) motor carriers of property, motor private carriers,
brokers, or freight forwarders, or their services or
operations, that are described in subparagraphs (B) and (C)
of section 14501(c)(2) and section 14506(c)(3) or permitted
pursuant to section 14506(b) of this title, and
``(III) the intrastate transportation of waste or
recycables by any carrier); or

``(2) to require any interstate motor carrier or motor
private carrier to pay any fee or tax, not proscribed by
paragraph (1)(D) of this subsection, that a motor carrier or
motor private carrier that pays a fee which is proscribed by
that paragraph is not required to pay.
``(d) Unified Carrier Registration Plan.--
``(1) Board of directors.--
``(A) Governance of plan.--The Unified Carrier Registration
Plan shall be governed by a Board of Directors consisting of
representatives of the Department of Transportation,
Participating States, and the motor carrier industry.
``(B) Number.--The Board shall consist of 15 directors.
``(C) Composition.--The Board shall be composed of
directors appointed as follows:
``(i) Federal motor carrier safety administration.--The
Secretary shall appoint 1 director from each of the Federal
Motor Carrier Safety Administration's 4 Service Areas (as
those areas were defined by the Federal Motor Carrier Safety
Administration on January 1, 2003), from among the chief
administrative officers of the State agencies responsible for
overseeing the administration of the UCR Agreement.
``(ii) State agencies.--The Secretary shall appoint 5
directors from the professional staffs of State agencies
responsible for overseeing the administration of the UCR
Agreement in their respective States. Nominees for these 5
directorships shall be submitted to the Secretary by the
national association of professional employees of the State
agencies responsible for overseeing the administration of the
UCR Agreement in their respective States.
``(iii) Motor carrier industry.--The Secretary shall
appoint 5 directors from the motor carrier industry. At least
1 of the appointees shall be an employee of the national
trade association representing the general motor carrier of
property industry.
``(iv) Department of transportation.--The Secretary shall
appoint the Deputy Administrator of the Federal Motor Carrier
Safety Administration, or such other presidential appointee
from the United States Department of Transportation, as the
Secretary may designate, to serve as a director.
``(D) Chairperson and vice-chairperson.--The Secretary
shall designate 1 director as Chairperson and 1 director as
Vice-Chairperson of the Board. The Chairperson and Vice-
Chairperson shall serve in such capacity for the term of
their appointment as directors.
``(E) Term.--In appointing the initial Board, the Secretary
shall designate 5 of the appointed directors for initial
terms of 3 years, 5 of the appointed directors for initial
terms of 2 years, and 5 of the appointed directors for
initial terms of 1 year. Thereafter, all directors shall be
appointed for terms of 3 years, except that the term of the
Deputy Administrator or other individual designated by the
Secretary under subparagraph (C)(iv) shall be at the
discretion of the Secretary. A director may be appointed to
succeed himself or herself. A director may continue to serve
on the Board until his or her successor is appointed.
``(2) Rules and regulations governing the ucr agreement.--
The Board of Directors shall develop the rules and
regulations to govern the UCR Agreement and submit such rules
and regulations to the Secretary for approval and adoption.
The rules and regulations shall--
``(A) prescribe uniform forms and formats, for--
``(i) the annual submission of the information required by
a Base-State of a motor carrier, motor private carrier,
leasing company, broker, or freight forwarder;
``(ii) the transmission of information by a Participating
State to the Unified Carrier Registration System;
``(iii) the payment of excess fees by a State to the
designated depository and the distribution of fees by the
depository to those States so entitled; and
``(iv) the providing of notice by a motor carrier, motor
private carrier, broker, freight forwarder, or leasing
company to the Board of the intent of such entity to change
its Base-State, and the procedures for a State to object to
such a change under subparagraph (C) of this paragraph;
``(B) provide for the administration of the Unified Carrier
Registration Agreement, including procedures for amending the
Agreement and obtaining clarification of any provision of the
Agreement;
``(C) provide procedures for dispute resolution that
provide due process for all involved parties; and
``(D) designate a depository.
``(3) Compensation and expenses.--Except for the
representative of the Department of Transportation appointed
pursuant to paragraph 1(D), no director shall receive any
compensation or other benefits from the Federal Government
for serving on the Board or be considered a Federal employee
as a result of such service. All Directors shall be
reimbursed for expenses they incur attending duly called
meetings of the Board. In addition, the Board may approve the
reimbursement of expenses incurred by members of any
subcommittee or task force appointed pursuant to paragraph
(5). The reimbursement of expenses to directors and
subcommittee and task force members shall be based on the
then applicable rules of the General Service Administration
governing reimbursement of expenses for travel by Federal
employees.
``(4) Meetings.--
``(A) In general.--The Board shall meet at least once per
year. Additional meetings may be called, as needed, by the
Chairperson of the Board, a majority of the directors, or the
Secretary.
``(B) Quorum.--A majority of directors shall constitute a
quorum.
``(C) Voting.--Approval of any matter before the Board
shall require the approval of a majority of all directors
present at the meeting.
``(D) Open meetings.--Meetings of the Board and any
subcommittees or task forces appointed pursuant to paragraph
(5) of this section shall be subject to the provisions of
section 552b of title 5.
``(5) Subcommittees.--
``(A) Industry advisory subcommittee.--The Chairperson
shall appoint an Industry Advisory Subcommittee. The Industry
Advisory Subcommittee shall consider any matter before the
Board and make recommendations to the Board.
``(B) Other subcommittees.--The Chairperson shall appoint
an Audit Subcommittee, a Dispute Resolution Subcommittee, and
any additional subcommittees and task forces that the Board
determines to be necessary.
``(C) Membership.--The chairperson of each subcommittee
shall be a director. The other members of subcommittees and
task forces may be directors or non-directors.
``(D) Representation on subcommittees.--Except for the
Industry Advisory Subcommittee (the membership of which shall
consist solely of representatives of entities subject to the
fee requirements of subsection (f) of this section), each
subcommittee and task force shall include representatives of
the Federal Motor Carrier Safety Administration, the
Participating States, and the motor carrier industry.
``(6) Delegation of authority.--The Board may contract with
any private commercial or non-profit entity or any agency of
a State to perform administrative functions required under
the Unified Carrier Registration Agreement, but may not
delegate its decision or policy-making responsibilities.
``(7) Determination of fees.--The Board shall determine the
annual fees to be assessed carriers, leasing companies,
brokers, and freight forwarders pursuant to the Unified
Carrier Registration Agreement. In determining the level of
fees to be assessed in the next Agreement year, the Board
shall consider--
``(A) the administrative costs associated with the Unified
Carrier Registration Plan and the Agreement;
``(B) whether the revenues generated in the previous year
and any surplus or shortage from that or prior years enable
the Participating States to achieve the revenue levels set by
the Board; and
``(C) the parameters for fees set forth in subsection
(f)(1).
``(8) Liability protections for directors.--No individual
appointed to serve on the Board shall be liable to any other
director or to any other party for harm, either economic or
non-economic, caused by an act or omission of the individual
arising from the individual's service on the Board if--
``(A) the individual was acting within the scope of his or
her responsibilities as a director; and
``(B) the harm was not caused by willful or criminal
misconduct, gross negligence, reckless misconduct, or a
conscious, flagrant indifference to the right or safety of
the party harmed by the individual.
``(9) Inapplicability of federal advisory committee act.--
The Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Unified Carrier Registration Plan or its
committees.
``(10) Certain fees not affected.--This section does not
limit the amount of money a State may charge for vehicle
registration or the amount of any fuel use tax a State may
impose pursuant to the International Fuel Tax Agreement.
``(e) State Participation.--
``(1) State plan.--No State shall be eligible to
participate in the Unified Carrier Registration Plan or to
receive any revenues derived under the Agreement, unless the
State submits to the Secretary, not later than 3 years after
the date of enactment of the Unified Carrier Registration Act
of 2004, a plan--
``(A) identifying the State agency that has or will have
the legal authority, resources,

[[Page S904]]

and qualified personnel necessary to administer the Unified
Carrier Registration Agreement in accordance with the rules
and regulations promulgated by the Board of Directors of the
Unified Carrier Registration Plan; and
``(B) containing assurances that an amount at least equal
to the revenue derived by the State from the Unified Carrier
Registration Agreement shall be used for motor carrier safety
programs, enforcement, and financial responsibility, or the
administration of the UCR Plan and UCR Agreement.
``(2) Amended plans.--A State may change the agency
designated in the plan submitted under this subsection by
filing an amended plan with the Secretary and the Chairperson
of the Unified Carrier Registration Plan.
``(3) Withdrawal of plan.--In the event a State withdraws,
or notifies the Secretary that it is withdrawing, the plan
submitted under this subsection, the State may no longer
participate in the Unified Carrier Registration Agreement or
receive any portion of the revenues derived under the
Agreement.
``(4) Termination of eligibility.--If a State fails to
submit a plan to the Secretary as required by paragraph (1)
or withdraws its plan under paragraph (3), the State shall be
prohibited from subsequently submitting or resubmitting a
plan or participating in the Agreement.
``(5) Provision of plan to chairperson.--The Secretary
shall provide a copy of each plan submitted under this
subsection to the initial Chairperson of the Board of
Directors of the Unified Carrier Registration Plan not later
than 90 days of appointing the Chairperson.
``(f) Contents of Unified Carrier Registration Agreement.--
The Unified Carrier Registration Agreement shall provide the
following:
``(1) Determination of fees.--
``(A) Fees charged motor carriers, motor private carriers,
or freight forwarders in connection with the filing of proof
of financial responsibility under the UCR Agreement shall be
based on the number of commercial motor vehicles owned or
operated by the motor carrier, motor private carrier, or
freight forwarder. Brokers and leasing companies shall pay
the same fees as the smallest bracket of motor carriers,
motor private carriers, and freight forwarders.
``(B) The fees shall be determined by the Board with the
approval of the Secretary.
``(C) The Board shall develop no more than 6 and no less
than 4 ranges of carriers by size of fleet.
``(D) The fee scale shall be progressive and use different
vehicle ratios for different ranges of carrier fleet size.
``(E) The Board may adjust the fees within a reasonable
range on an annual basis if the revenues derived from the
fees--
``(i) are insufficient to provide the revenues to which the
States are entitled under this section; or
``(ii) exceed those revenues.
``(2) Determination of ownership or operation.--Commercial
motor vehicles owned or operated by a motor carrier, motor
private carrier, or freight forwarder shall mean those
commercial motor vehicles registered in the name of the motor
carrier, motor private carrier, or freight forwarder or
controlled by the motor carrier, motor private carrier, or
freight forwarder under a long term lease during a vehicle
registration year.
``(3) Calculation of number of commercial motor vehicles
owned or operated.--The number of commercial motor vehicles
owned or operated by a motor carrier, motor private carrier,
or freight forwarder for purposes of subsection (e)(1) shall
be based either on the number of commercial motor vehicles
the motor carrier, motor private carrier, or freight
forwarder has indicated it operates on its most recently
filed MCS-150 or the total number of such vehicles it owned
or operated for the 12-month period ending on June 30 of the
year immediately prior to the each registration year of the
Unified Carrier Registration System.
``(4) Payment of fees.--Motor carriers, motor private
carriers, leasing companies, brokers, and freight forwarders
shall pay all fees required under this section to their Base-
State pursuant to the UCR Agreement.
``(g) Payment of Fees.--Revenues derived under the UCR
Agreement shall be allocated to Participating States as
follows:
``(1) A State that participated in the Single State
Registration System in the last calendar year ending before
the date of enactment of the Unified Carrier Registration Act
of 2004 and complies with the requirements of subsection (e)
of this section is entitled to receive a portion of the UCR
Agreement revenues generated under the Agreement equivalent
to the revenues it received under the SSRS in the last
calendar year ending before the date of enactment of the
Unified Carrier Registration Act of 2004, as long as the
State continues to comply with the provisions of subsection
(e).
``(2) A State that collected intrastate registration fees
from interstate motor carriers, interstate motor private
carriers, or interstate exempt carriers and complies with the
requirements of subsection (e) of this section is entitled to
receive an additional portion of the UCR Agreement revenues
generated under the Agreement equivalent to the revenues it
received from such interstate carriers in the last calendar
year ending before the date of enactment of the Unified
Carrier Registration Act of 2004, as long as the State
continues to comply with the provisions of subsection (e).
``(3) States that comply with the requirements of
subsection (e) of this section but did not participate in
SSRS during the last calendar year ending before the date of
enactment of the Unified Carrier Registration Act of 2004
shall be entitled to an annual allotment not to exceed
$500,000 from the UCR Agreement revenues generated under the
Agreement as long as the State continues to comply with the
provisions of subsection (e).
``(4) The amount of UCR Agreement revenues to which a State
is entitled under this section shall be calculated by the
Board and approved by the Secretary.
``(h) Distribution of UCR Agreement Revenues.--
``(1) Eligibility.--Each State that is in compliance with
the provisions of subsection (e) shall be entitled to a
portion of the revenues derived from the UCR Agreement in
accordance with subsection (g).
``(2) Entitlement to revenues.--A State that is in
compliance with the provisions of subsection (e) may retain
an amount of the gross revenues it collects from motor
carriers, motor private carriers, brokers, freight forwarders
and leasing companies under the UCR Agreement equivalent to
the portion of revenues to which the State is entitled under
subsection (g). All revenues a Participating State collects
in excess of the amount to which the State is so entitled
shall be forwarded to the depository designated by the Board
under subsection (d)(2)(D).
``(3) Distribution of funds from depository.--The excess
funds collected in the depository shall be distributed as
follows:
``(A) Excess funds shall be distributed on a pro rata basis
to each Participating State that did not collect revenues
under the UCR Agreement equivalent to the amount such State
is entitled under subsection (g), except that the sum of the
gross UCR Agreement revenues collected by a Participating
State and the amount distributed to it from the depository
shall not exceed the amount to which the State is entitled
under subsection (g).
``(B) Any excess funds held by the depository after all
distributions under subparagraph (A) have been made shall be
used to pay the administrative costs of the UCR Plan and the
UCR Agreement.
``(C) Any excess funds held by the depository after
distributions and payments under subparagraphs (A) and (B)
shall be retained in the depository, and the UCR Agreement
fees for motor carriers, motor private carriers, leasing
companies, freight forwarders, and brokers for the next fee
year shall be reduced by the Board accordingly.
``(i) Enforcement.--
``(1) Civil Actions.--Upon request by the Secretary of
Transportation, the Attorney General may bring a civil action
in a court of competent jurisdiction to enforce compliance
with this section and with the terms of the Unified Carrier
Registration Agreement.
``(2) Venue.--An action under this section may be brought
only in the Federal court sitting in the State in which an
order is required to enforce such compliance.
``(3) Relief.--Subject to section 1341 of title 28, the
court, on a proper showing--
``(A) shall issue a temporary restraining order or a
preliminary or permanent injunction; and
``(B) may issue an injunction requiring that the State or
any person comply with this section.
``(4) Enforcement by states.--Nothing in this section--
``(A) prohibits a Participating State from issuing
citations and imposing reasonable fines and penalties
pursuant to applicable State laws and regulations on any
motor carrier, motor private carrier, freight forwarder,
broker, or leasing company for failure to--
``(i) submit documents as required under subsection (d)(2);
or
``(ii) pay the fees required under subsection (f); or
``(B) authorizes a State to require a motor carrier, motor
private carrier, or freight forwarder to display as evidence
of compliance any form of identification in excess of those
permitted under section 14506 of this title on or in a
commercial motor vehicle.
``(j) Application to Intrastate Carriers.--Notwithstanding
any other provision of this section, a State may elect to
apply the provisions of the UCR Agreement to motor carriers
and motor private carriers subject to its jurisdiction that
operate solely in intrastate commerce within the borders of
the State.''.

SEC. 4266. IDENTIFICATION OF VEHICLES.

Chapter 145 is amended by adding at the end the following:

``Sec. 14506. Identification of vehicles

``(a) Restriction on Requirements.--No State, political
subdivision of a State, interstate agency, or other political
agency of 2 or more States may enact or enforce any law,
rule, regulation standard, or other provision having the
force and effect of law that requires a motor carrier, motor
private carrier, freight forwarder, or leasing company to
display any form of identification on or in a commercial
motor vehicle, other than forms of identification required by
the Secretary of Transportation under section 390.21 of title
49, Code of Federal Regulations.
``(b) Exception.--Notwithstanding paragraph (a), a State
may continue to require display of credentials that are
required--
``(1) under the International Registration Plan under
section 31704 of this title;
``(2) under the International Fuel Tax Agreement under
section 31705 of this title;

[[Page S905]]

``(3) in connection with Federal requirements for hazardous
materials transportation under section 5103 of this title; or
``(4) in connection with the Federal vehicle inspection
standards under section 31136 of this title.''.

SEC. 4267. USE OF UCR AGREEMENT REVENUES AS MATCHING FUNDS.

Section 31103(a) is amended by inserting ``Amounts
generated by the Unified Carrier Registration Agreement,
under section 14504a of this title and received by a State
and used for motor carrier safety purposes may be included as
part of the State's share not provided by the United
States.'' after ``United States Government.''.

SEC. 4268. CLERICAL AMENDMENTS.

(a) Section 13906 Caption.--The section caption for section
13906 is amended by inserting ``motor private carriers,''
after ``motor carriers,''.
(b) Table of Contents.--The chapter analysis for chapter
139 is amended by striking the item relating to section 13906
and inserting the following:

``13906. Security of motor carriers, motor private carriers, brokers,
and freight forwarders''.

Subtitle C--Household Goods Movers

SEC. 4301. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES
CODE.

(a) Short Title.--This subtitle may be cited as the
``Household Goods Mover Oversight Enforcement and Reform Act
of 2004''.
(b) Amendment of Title 49, United States Code.--Except as
otherwise specifically provided, whenever in this subtitle an
amendment is expressed in terms of an amendment to a section
or other provision of law, the reference shall be considered
to be made to a section or other provision of title 49,
United States Code.

SEC. 4302. FINDINGS; SENSE OF CONGRESS.

The Congress finds the following:
(1) There are approximately 1,500,000 interstate household
moves every year. While the vast majority of these interstate
moves are completed successfully, consumer complaints have
been increasing since the Interstate Commerce Commission was
abolished in 1996 and oversight of the household goods
industry was transferred to the Department of Transportation.
(2) While the overwhelming majority of household goods
carriers are honest and operate within the law, there appears
to be a growing criminal element that is exploiting a
perceived void in Federal and State enforcement efforts. The
growing criminal element tends to prey upon consumers.
(3) The movement of an individual's household goods is
unique and differs from the movement of a commercial
shipment. A consumer may utilize a moving company once or
twice in the consumer's lifetime and entrust virtually all of
the consumer's worldly goods to a mover.
(4) Federal resources are inadequate to properly police or
deter, on a nationwide basis, those movers who willfully
violate Federal regulations governing the household goods
industry and knowingly prey on consumers who are in a
vulnerable position. It is appropriate that a Federal-State
partnership be created to enhance enforcement against
fraudulent moving companies.

SEC. 4303. DEFINITIONS.

In this title, the terms ``carrier'', ``household goods'',
``motor carrier'', ``Secretary'', and ``transportation'' have
the meaning given such terms in section 13102 of title 49,
United States Code.

SEC. 4304. PAYMENT OF RATES.

Section 13707(b) is amended by adding at the end the
following:
``(3) Shipments of household goods.--
``(A) In general.--A carrier providing transportation for a
shipment of household goods shall give up possession of the
household goods transported at the destination upon payment
of--
``(i) 100 percent of the charges contained in a binding
estimate provided by the carrier;
``(ii) not more than 110 percent of the charges contained
in a nonbinding estimate provided by the carrier; or
``(iii) in the case of a partial delivery of the shipment,
the prorated percentage of the charges calculated in
accordance with subparagraph (B).
``(B) Calculation of prorated charges.--For purposes of
subparagraph (A)(iii), the prorated percentage of the charges
shall be the percentage of the total charges due to the
carrier as described in clause (i) or (ii) of subparagraph
(A) that is equal to the percentage of the weight of that
portion of the shipment delivered to the total weight of the
shipment.
``(C) Post-contract services.--Subparagraph (A) does not
apply to additional services requested by a shipper after the
contract of service is executed that were not included in the
estimate.
``(D) Impracticable operations.--Subparagraph (A) does
apply to impracticable operations, as defined by the
applicable carrier tariff, if the shipper agrees to pay the
charges for such operations within 30 days after the goods
are delivered.''.

SEC. 4305. HOUSEHOLD GOODS CARRIER OPERATIONS.

Section 14104 is amended--
(1) by striking paragraph (1) of subsection (b) and
inserting the following:
``(1) Requirement for written estimate.--A motor carrier
providing transportation of household goods subject to
jurisdiction under subchapter I of chapter 135 shall provide
to a prospective shipper a written estimate of all charges
related to the transportation of the household goods,
including charges for--
``(A) packing;
``(B) unpacking;
``(C) loading;
``(D) unloading; and
``(E) handling of the shipment from the point of origin to
the final destination (whether that destination is storage or
transit).'';
(2) by redesignating paragraph (2) of such subsection as
paragraph (4); and
(3) by inserting after paragraph (1), as amended by
paragraph (1), the following:
``(2) Other information.--At the time that a motor carrier
provides the written estimate required by paragraph (1), the
motor carrier shall provide the shipper a copy of the
Department of Transportation publication FMCSA-ESA-03-005 (or
its successor edition or publication) entitled `Ready to
Move?'. Before the execution of a contract for service, a
motor carrier shall provide the shipper a copy of the
Department of Transportation publication OCE 100, entitled
`Your Rights and Responsibilities When You Move' required by
section 375.2 of title 49, Code of Federal Regulations (or
any corresponding similar regulation).
``(3) Binding and nonbinding estimates.--The written
estimate required by paragraph (1) may be either binding or
nonbinding. The written estimate shall be based on a visual
inspection of the household goods if the household goods are
located within a 50-mile radius of the location of the
carrier's household goods agent preparing the estimate. The
Secretary may not prohibit any such carrier from charging a
prospective shipper for providing a written, binding estimate
for the transportation and related services.'';
(4) by redesignating subsection (c) as subsection (e); and
(5) by inserting after subsection (b), as amended by
paragraphs (1) and (2), the following:
``(c) Notification of Final Charges.--If the final charges
for a shipment of household goods exceed 100 percent of a
binding estimate or 110 percent of a nonbinding estimate, the
motor carrier shall provide the shipper an itemized statement
of the charges. The statement shall be provided to the
shipper within 24 hours prior to the delivery of the shipment
unless the shipper waives this requirement or the shipper
cannot be reached by fax, regular mail, or electronic mail.
Such notification shall--
``(1) be delivered in writing at the motor carrier's
expense; and
``(2) disclose the requirements of section 13707(b)(3) of
this title regarding payment for delivery of a shipment of
household goods.
``(d) Requirement for Inventory.--A motor carrier providing
transportation of a shipment of household goods, as defined
in section 13102(10), that is subject to jurisdiction under
subchapter I of chapter 135 of this title shall, before or at
the time of loading the shipment, prepare a written inventory
of all articles tendered and accepted by the motor carrier
for transportation. Such inventory shall--
``(1) list or otherwise reasonably identify each item
tendered for transportation;
``(2) be signed by the shipper and the motor carrier, or
the agent of the shipper or carrier, at the time the shipment
is loaded and at the time the shipment is unloaded at the
final destination;
``(3) be attached to, and considered part of, the bill of
lading; and
``(4) be subject to the same requirements of the Secretary
for record inspection and preservation that apply to bills of
lading.''.

SEC. 4306. LIABILITY OF CARRIERS UNDER RECEIPTS AND BILLS OF
LADING.

Section 14706(f) is amended--
(1) by resetting the text as a paragraph indented 2 ems
from the left margin and inserting ``(1) In general.--''
before ``A carrier''; and
(2) by adding at the end, the following:
``(2) Full value protection obligation.--Unless the carrier
receives a waiver in writing under paragraph (3), a carrier's
maximum liability for household goods that are lost, damaged,
destroyed, or otherwise not delivered to the final
destination is an amount equal to the replacement value of
such goods, subject to a maximum amount equal to the declared
value of the shipment, subject to rules issued by the Surface
Transportation Board and applicable tariffs.
``(3) Application of rates.--The released rates established
by the Board under paragraph (1) (commonly known as `released
rates') shall not apply to the transportation of household
goods by a carrier unless the liability of the carrier for
the full value of such household goods under paragraph (2) is
waived in writing by the shipper.''.

SEC. 4307. DISPUTE SETTLEMENT FOR SHIPMENTS OF HOUSEHOLD
GOODS.

(a) In General.--Section 14708(a) is amended--
(1) by resetting the text as a paragraph indented 2 ems
from the left margin and inserting ``(1) Requirement to
offer.--'' before ``As a condition''; and
(2) by striking ``shippers of household goods concerning
damage or loss to the household goods transported.'' and
inserting ``shippers. The carrier may not require the shipper
to agree to use arbitration as a means to settle such a
dispute.''; and
(3) by inserting at the end, the following:
``(2) Requirements for carriers.--If a dispute with a
carrier providing transportation of household goods involves
a claim that is--

[[Page S906]]

``(A) not more than $10,000 and the shipper requests
arbitration, such arbitration shall be binding on the
parties; or
``(B) for more than $10,000 and the shipper requests
arbitration, such arbitration shall be binding on the parties
only if the carrier agrees to arbitration.''.
(b) Arbitration Requirements.--
(1) In general.--Section 14708(b) is amended--
(A) by striking paragraph (4) and inserting the following:
``(4) Independence of arbitrator.--The Secretary shall
establish a system for the certification of persons
authorized to arbitrate or otherwise settle a dispute between
a shipper of household goods and a carrier. The Secretary
shall ensure that each person so certified is--
``(A) independent of the parties to the dispute;
``(B) capable, as determined under such regulations as the
Secretary may issue, to resolve such disputes fairly and
expeditiously; and
``(C) authorized and able to obtain from the shipper or
carrier any material and relevant information to the extent
necessary to carry out a fair and expeditious decisionmaking
process.'';
(B) by striking paragraph (6); and
(C) by redesignating paragraphs (7) and (8) as paragraphs
(6) and (7), respectively.
(2) Conforming amendment.--Section 14708(d)(3)(A) is
amended by striking ``(b)(8)'' and inserting ``(b)(7)''.
(c) Attorney's Fees to Carriers.--Section 14708(e) is
further amended by striking ``only if'' and all that follows
through the period at the end and inserting ``if--
``(1) the court proceeding is to enforce a decision
rendered in favor of the carrier through arbitration under
this section and is instituted after the shipper has a
reasonable opportunity to pay any charges required by such
decision; or
``(2) the shipper brought such action in bad faith--
``(A) after resolution of such dispute through arbitration
under this section; or
``(B) after institution of an arbitration proceeding by the
shipper to resolve such dispute under this section but
before--
``(i) the period provided under subsection (b)(7) for
resolution of such dispute (including, if applicable, an
extension of such period under such subsection) ends; and
``(ii) a decision resolving such dispute is rendered.''.
(d) Review and Report on Dispute Settlement Programs.--
(1) Review and report.--Not later than 18 months after the
date of enactment of this Act, the Secretary of
Transportation shall complete a review of the outcomes and
the effectiveness of the programs carried out under title 49,
United States Code, to settle disputes between motor carriers
and shippers and submit a report on the review to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Transportation and
Infrastructure. The report shall describe--
(A) the subject of, and amounts at issue is, the disputes;
(B) patterns in disputes or settlements;
(C) the prevailing party in disputes, if identifiable; and
(D) any other matters the Secretary considers appropriate.
(2) Requirement for public comment.--The Secretary shall
publish notice of the review required by paragraph (1) and
provide an opportunity for the public to submit comments on
the effectiveness of such programs. Notwithstanding any
confidentiality or non-disclosure provision in a settlement
agreement between a motor carrier and a shipper, it shall not
be a violation of that provision for a motor carrier or
shipper to submit a copy of the settlement agreement, or to
provide information included in the agreement, to the
Secretary for use in evaluating dispute settlement programs
under this subsection. Notwithstanding anything to the
contrary in section 552 of title 5, United States Code, the
Secretary may not post on the Department of Transportation's
electronic docket system, or make available to any requester
in paper or electronic format, any information submitted to
the Secretary by a motor carrier or shipper under the
preceding sentence. The Secretary shall use the settlement
agreements or other information submitted by a motor carrier
or shipper solely to evaluate the effectiveness of dispute
settlement programs and shall not include in the report
required by this subsection the names or, or other
identifying information concerning, motor carriers or
shippers that submitted comments or information under this
subsection.

SEC. 4308. ENFORCEMENT OF REGULATIONS RELATED TO
TRANSPORTATION OF HOUSEHOLD GOODS.

(a) Nonpreemption of Intrastate Transportation of Household
Goods.--Section 14501(c)(2)(B) is amended by inserting
``intrastate'' before ``transportation''.
(b) Enforcement of Federal Law With Respect to Interstate
Household Goods Carriers.--
(1) In general.--Chapter 147 is amended by adding at the
end the following:

``Sec. 14710. Enforcement of Federal laws and regulations
with respect to transportation of household goods

``(a) Enforcement by States.--Notwithstanding any other
provision of this title, a State authority may enforce the
consumer protection provisions, as determined by the
Secretary of Transportation, of this title that are related
to the transportation of household goods in interstate
commerce. Any fine or penalty imposed on a carrier in a
proceeding under this subsection shall, notwithstanding any
provision of law to the contrary, be paid to and retained by
the State.
``(b) State Authority Defined.--The term `State authority'
means an agency of a State that has authority under the laws
of the State to regulate the intrastate movement of household
goods.

``Sec. 14711. Enforcement by State attorneys general

``(a) In General.--A State, as parens patriae, may bring a
civil action on behalf of its residents in an appropriate
district court of the United States to enforce the consumer
protection provisions, as determined by the Secretary of
Transportation, of this title that are related to the
transportation of household goods in interstate commerce, or
regulations or orders of the Secretary or the Board
thereunder, or to impose the civil penalties authorized by
this part or such regulation or order, whenever the attorney
general of the State has reason to believe that the interests
of the residents of the State have been or are being
threatened or adversely affected by a carrier or broker
providing transportation subject to jurisdiction under
subchapter I or III of chapter 135 of this title, or a
foreign motor carrier providing transportation registered
under section 13902 of this title, that is engaged in
household goods transportation that violates this part or a
regulation or order of the Secretary or Board, as applicable,
promulgated under this part.
``(b) Notice.--The State shall serve written notice to the
Secretary or the Board, as the case may be, of any civil
action under subsection (a) prior to initiating such civil
action. The notice shall include a copy of the complaint to
be filed to initiate such civil action, except that if it is
not feasible for the State to provide such prior notice, the
State shall provide such notice immediately upon instituting
such civil action.
``(c) Authority To Intervene.--Upon receiving the notice
required by subsection (b), the Secretary or Board may
intervene in such civil action and upon intervening--
``(1) be heard on all matters arising in such civil action;
and
``(2) file petitions for appeal of a decision in such civil
action.
``(d) Construction.--For purposes of bringing any civil
action under subsection (a), nothing in this section shall
prevent the attorney general of a State from exercising the
powers conferred on the attorney general by the laws of such
State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the
production of documentary and other evidence.
``(e) Venue; Service of Process.--In a civil action brought
under subsection (a)--
``(1) the venue shall be a judicial district in which--
``(A) the carrier, foreign motor carrier, or broker
operates;
``(B) the carrier, foreign motor carrier, or broker was
authorized to provide transportation at the time the
complaint arose; or
``(C) where the defendant in the civil action is found;
``(2) process may be served without regard to the
territorial limits of the district or of the State in which
the civil action is instituted; and
``(3) a person who participated with a carrier or broker in
an alleged violation that is being litigated in the civil
action may be joined in the civil action without regard to
the residence of the person.
``(f) Enforcement of State Law.--Nothing contained in this
section shall prohibit an authorized State official from
proceeding in State court to enforce a criminal statute of
such State.''.
(2) Conforming amendment.--The analysis for chapter 147 is
amended by inserting after the item relating to section 14709
the following:

``14710. Enforcement of Federal laws and regulations with respect to
transportation of household goods.
``14711. Enforcement by State attorneys general.''.

SEC. 4309. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND
PROCEDURES TO ENHANCE FEDERAL-STATE RELATIONS.

(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall establish a
working group of State attorneys general, State authorities
that regulate the movement of household goods, and Federal
and local law enforcement officials for the purpose of
developing practices and procedures to enhance the Federal-
State partnership in enforcement efforts, exchange of
information, and coordination of enforcement efforts with
respect to interstate transportation of household goods and
making legislative and regulatory recommendations to the
Secretary concerning such enforcement efforts.
(b) Consultation.--In carrying out subsection (a), the
working group shall consult with industries involved in the
transportation of household goods, the public, and other
interested parties.

SEC. 4310. CONSUMER HANDBOOK ON DOT WEBSITE.

Within 6 months after the date of enactment of this Act,
the Secretary shall take

[[Page S907]]

such action as may be necessary to ensure that the Department
of Transportation publication OCE 100, entitled ``Your Rights
and Responsibilities When You Move'' required by section
375.2 of title 49, Code of Federal Regulations (or any
corresponding similar regulation), is prominently displayed,
and available in language that is readily understandable by
the general public, on the website of the Department of
Transportation.

SEC. 4311. INFORMATION ABOUT HOUSEHOLD GOODS TRANSPORTATION
ON CARRIERS' WEBSITES.

Not later than 1 year after the date of enactment of this
Act, the Secretary shall modify the regulations contained in
part 375 of title 49, Code of Federal Regulations, to require
a motor carrier or broker that is subject to such regulations
and that establishes and maintains a website to prominently
display on the website--
(1) the number assigned to the motor carrier or broker by
the Department of Transportation;
(2) the OCE 100 publication referred to in section 4310;
and
(3) in the case of a broker, a list of all motor carriers
providing transportation of household goods used by the
broker and a statement that the broker is not a motor carrier
providing transportation of household goods.

SEC. 4312. CONSUMER COMPLAINTS.

(a) Requirement for Database.--Subchapter II of chapter 141
is amended by adding at the end the following:

``Sec. 14124. Consumer complaints

``(a) Establishment of System and Database.--The Secretary
of Transportation shall--
``(1) establish a system to--
``(A) file and log a complaint made by a shipper that
relates to motor carrier transportation of household goods;
and
``(B) to solicit information gathered by a State regarding
the number and type of complaints involving the interstate
transportation of household goods;
``(2) establish a database of such complaints; and
``(3) develop a procedure--
``(A) to provide the public access to the database;
``(B) to forward a complaint, including the motor carrier
bill of lading number related to the complaint to a motor
carrier named in such complaint and to an appropriate State
authority (as defined in section 14710(c) in the State in
which the complainant resides; and
``(C) to permit a motor carrier to challenge information in
the database.
``(b) Requirement for Annual Reports.--The Secretary shall
issue regulations requiring a motor carrier that provides
transportation of household goods to submit to the Secretary,
not later than March 31st of each year, an annual report
covering the 12-month period ending on the preceding March
31st that includes--
``(1) the number of interstate shipments of household goods
that the motor carrier received from shippers and that were
delivered to a final destination during the preceding
calendar year;
``(2) the number and general category of complaints lodged
against the motor carrier during the preceding calendar year;
``(3) the number of shipments described in paragraph (1)
that resulted in the filing of a claim against the motor
carrier for loss or damage to the shipment for an amount in
excess of $500 during the preceding calendar year; and
``(4) the number of shipments described in paragraph (3)
that were--
``(A) resolved during the preceding calendar year; or
``(B) pending on the last day of the preceding calendar
year.
``(c) Summary to Congress.--The Secretary shall transmit a
summary each year of the complaints filed and logged under
subsection (a) for the preceding calendar year to the Senate
Committee on Commerce, Science, and Transportation and the
House of Representatives Committee on Transportation and
Infrastructure.''.
(b) Conforming Amendment.--The analysis for chapter 141 is
amended by inserting after the item relating to section 14123
the following:

``14124. Consumer complaints.''.

SEC. 4313. REVIEW OF LIABILITY OF CARRIERS.

(a) Review.--Not later than 1 year after the date of
enactment of this Act, the Surface Transportation Board shall
complete a review of the current Federal regulations
regarding the level of liability protection provided by motor
carriers that provide transportation of household goods and
revise such regulations, if necessary, to provide enhanced
protection in the case of loss or damage.
(b) Determinations.--The review required by subsection (a)
shall include a determination of--
(1) whether the current regulations provide adequate
protection;
(2) the benefits of purchase by a shipper of insurance to
supplement the carrier's limitations on liability;
(3) whether there are abuses of the current regulations
that leave the shipper unprotected in the event of loss and
damage to a shipment of household goods; and
(4) whether the section 14706 of title 49, United States
Code, should be modified or repealed.

SEC. 4314. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS
BROKERS.

Section 14901(d) is amended--
(1) by resetting the text as a paragraph indented 2 ems
from the left margin and inserting ``(1) In general.--''
before ``If a carrier''; and
(2) by adding at the end the following:
``(2) Estimate of broker without carrier agreement.--If a
broker for transportation of household goods subject to
jurisdiction under subchapter I of chapter 135 of this title
makes an estimate of the cost of transporting any such goods
before entering into an agreement with a carrier to provide
transportation of household goods subject to such
jurisdiction, the broker is liable to the United States for a
civil penalty of not less than $10,000 for each violation.
``(3) Unauthorized transportation.--If a person provides
transportation of household goods subject to jurisdiction
under subchapter I of chapter 135 this title or provides
broker services for such transportation without being
registered under chapter 139 of this title to provide such
transportation or services as a motor carrier or broker, as
the case may be, such person is liable to the United States
for a civil penalty of not less than $25,000 for each
violation.''.

SEC. 4315. CIVIL AND CRIMINAL PENALTY FOR FAILING TO GIVE UP
POSSESSION OF HOUSEHOLD GOODS.

(a) In General.--Chapter 149 is amended by adding at the
end the following:

``Sec. 14915. Penalties for failure to give up possession of
household goods

``(a) Civil Penalty.--Whoever is found to have failed to
give up possession of household goods is liable to the United
States for a civil penalty of not less than $10,000. Each day
a carrier is found to have failed to give up possession of
household goods may constitute a separate violation. If such
person is a carrier or broker, the Secretary may suspend for
a period of not less than 6 months the registration of such
carrier or broker under chapter 139 of this title.
``(b) Criminal Penalty.--Whoever has been convicted of
having failed to give up possession of household goods shall
be fined under title 18 or imprisoned for not more than 2
years, or both.
``(c) Failure To Give Up Possession of Household Goods
Defined.--For purposes of this section, the term `failed to
give up possession of household goods' means the knowing and
willful failure of a motor carrier to deliver to, or unload
at, the destination of a shipment of household goods that is
subject to jurisdiction under subchapter I or III of chapter
135 of this title, for which charges have been estimated by
the motor carrier providing transportation of such goods, and
for which the shipper has tendered a payment described in
clause (i), (ii), or (iii) of section 13707(b)(3)(A) of this
title.''.
(b) Conforming Amendment.--The analysis for such chapter is
amended by adding at the end the following:

``14915. Penalties for failure to give up possession of household
goods.''.

SEC. 4316. PROGRESS REPORT.

Not later than 1 year after the date of enactment of this
Act, the Secretary shall transmit to Congress a report on the
progress being made in implementing the provisions of this
title.

SEC. 4317. ADDITIONAL REGISTRATION REQUIREMENTS FOR MOTOR
CARRIERS OF HOUSEHOLD GOODS.

Section 13902(a) is amended--
(1) by striking paragraphs (2) and (3);
(2) by redesignating paragraph (4) as paragraph (5) and
inserting after paragraph (1) the following:
``(2) Additional registration requirements for household
goods transportation.--Notwithstanding paragraph (1), the
Secretary may register a person to provide transportation of
household goods (as defined in section 13102(10) of this
title) only after that person--
``(A) provides evidence of participation in an arbitration
program and provides a copy of the notice of that program as
required by section 14708(b)(2) of this title;
``(B) identifies its tariff and provides a copy of the
notice of the availability of that tariff for inspection as
required by section 13702(c) of this title;
``(C) provides evidence that it has access to, has read, is
familiar with, and will observe all laws relating to consumer
protection, estimating, consumers' rights and
responsibilities, and options for limitations of liability
for loss and damage; and
``(D) discloses any relationship involving common stock,
common ownership, common management, or common familial
relationships between that person and any other motor
carrier, freight forwarder, or broker of household goods
within the past 3 years.
``(3) Consideration of evidence; findings.--The Secretary
shall consider, and, to the extent applicable, make findings
on any evidence demonstrating that the registrant is unable
to comply with any applicable requirement of paragraph (1)
or, in the case of a registrant to which paragraph (2)
applies, paragraph (1) or (2).
``(4) Withholding.--If the Secretary determines that a
registrant under this section does not meet, or is not able
to meet, any requirement of paragraph (1) or, in the case of
a registrant to which paragraph (2) applies, paragraph (1) or
(2), the Secretary shall withhold registration.''; and
(3) by adding at the end of paragraph (5), as redesignated,
``In the case of a registration for the transportation of
household goods (as

[[Page S908]]

defined in section 13102(10 of this title), the Secretary may
also hear a complaint on the ground that the registrant fails
or will fail to comply with the requirements of paragraph (2)
of this subsection.''.

Subtitle D--Hazardous Materials Transportation Safety and Security

SEC. 4401. SHORT TITLE.

This subtitle may be cited as the ``Hazardous Material
Transportation Safety and Security Reauthorization Act of
2004''.

SEC. 4402. AMENDMENT OF TITLE 49, UNITED STATES CODE.

Except as otherwise expressly provided, whenever in this
subtitle an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of title 49, United States Code.

Part 1--General Authorities on Transportation of Hazardous Materials

SEC. 4421. PURPOSE.

The text of section 5101 is amended to read as follows:
``The purpose of this chapter is to protect against the
risks to life, property, and the environment that are
inherent in the transportation of hazardous material in
intrastate, interstate, and foreign commerce.''.

SEC. 4422. DEFINITIONS.

Section 5102 is amended as follows:
(1) Commerce.--Paragraph (1) is amended--
(A) by striking ``or'' after the semicolon in subparagraph
(A);
(B) by striking the ``State.'' in subparagraph (B) and
inserting ``State; or''; and
(C) by adding at the end the following:
``(C) on a United States-registered aircraft.''.
(2) Hazmat employee.--Paragraph (3) is amended to read as
follows:
``(3) `hazmat employee' means an individual--
``(A) who--
``(i) is employed or used by a hazmat employer; or
``(ii) is self-employed, including an owner-operator of a
motor vehicle, vessel, or aircraft, transporting hazardous
material in commerce; and
``(B) who performs a function regulated by the Secretary
under section 5103(b)(1) of this title.''.
(3) Hazmat employer.--Paragraph (4) is amended to read as
follows:
``(4) `hazmat employer' means a person--
``(A) who--
``(i) employs or uses at least 1 hazmat employee; or
``(ii) is self-employed, including an owner-operator of a
motor vehicle, vessel, or aircraft, transporting hazardous
material in commerce; and
``(B) who performs, or employs or uses at least 1 hazmat
employee to perform, a function regulated by the Secretary
under section 5103(b)(1) of this title.''.
(4) Imminent hazard.--Paragraph (5) is amended by inserting
``relating to hazardous material'' after ``of a condition''.
(5) Motor carrier.--Paragraph (7) is amended to read as
follows:
``(7) `motor carrier'--
``(A) means a motor carrier, motor private carrier, and
freight forwarder as those terms are defined in section 13102
of this title; but
``(B) does not include a freight forwarder, as so defined,
if the freight forwarder is not performing a function
relating to highway transportation.''.
(6) National response team.--Paragraph (8) is amended--
(A) by striking ``national response team'' both places it
appears and inserting ``National Response Team''; and
(B) by striking ``national contingency plan'' and inserting
``National Contingency Plan''.
(7) Person.--Paragraph (9)(A) is amended by striking
``offering'' and all that follows and inserting ``that--
``(i) offers hazardous material for transportation in
commerce;
``(ii) transports hazardous material to further a
commercial enterprise; or
``(iii) manufactures, designs, inspects, tests,
reconditions, marks, or repairs a packaging or packaging
component that is represented as qualified for use in
transporting hazardous material in commerce; but''.
(8) Secretary of transportation.--Section 5101 is further
amended--
(A) by redesignating paragraphs (11), (12), and (13), as
paragraphs (12), (13), and (14), respectively; and
(B) by inserting after paragraph (10) the following:
``(11) `Secretary' means the Secretary of Transportation
except as otherwise provided.''.

SEC. 4423. GENERAL REGULATORY AUTHORITY.

(a) Reference to Secretary of Transportation.--Section
5103(a) is amended by striking ``of Transportation''.
(b) Designating Material as Hazardous.--Section 5103(a) is
further amended--
(1) by striking ``etiologic agent'' and all that follows
through ``corrosive material,'' and inserting ``infectious
substance, flammable or combustible liquid, solid, or gas,
toxic, oxidizing, or corrosive material,''; and
(2) by striking ``decides'' and inserting ``determines''.
(c) Regulations for Safe Transportation.--Section
5103(b)(1)(A) is amended to read as follows:
``(A) apply to a person who--
``(i) transports hazardous material in commerce;
``(ii) causes hazardous material to be transported in
commerce;
``(iii) manufactures, designs, inspects, tests,
reconditions, marks, or repairs a packaging or packaging
component that is represented as qualified for use in
transporting hazardous material in commerce;
``(iv) prepares or accepts hazardous material for
transportation in commerce;
``(v) is responsible for the safety of transporting
hazardous material in commerce;
``(vi) certifies compliance with any requirement under this
chapter;
``(vii) misrepresents whether such person is engaged in any
activity under clause (i) through (vi) of this subparagraph;
or
``(viii) performs any other act or function relating to the
transportation of hazardous material in commerce; and''.
(d) Technical Amendment Regarding Consultation.--Section
5103 is amended--
(1) by striking subsection (b)(1)(C); and
(2) by adding at the end the following:
``(c) Consultation.--When prescribing a security regulation
or issuing a security order that affects the safety of the
transportation of hazardous material, the Secretary of
Homeland Security shall consult with the Secretary of
Transportation.''.

SEC. 4424. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.

(a) Reference to Secretary of Transportation.--Section
5103a is amended by striking ``of Transportation'' each place
it appears in subsections (a)(1), (c)(1)(B), and (d) and
inserting ``of Homeland Security''.
(b) Covered Hazardous Materials.--Section 5103a(b) is
amended by striking ``with respect to--'' and all that
follows and inserting ``with respect to any material defined
as hazardous material by the Secretary for which the
Secretary requires placarding of a commercial motor vehicle
transporting that material in commerce.''.
(c) Recommendations on Chemical or Biological Materials.--
Section 5103a is further amended--
(1) by redesignating subsections (c), (d), and (e) as
subsections (d), (e), and (f), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Recommendations on Chemical and Biological
Materials.--The Secretary of Health and Human Services shall
recommend to the Secretary any chemical or biological
material or agent for regulation as a hazardous material
under section 5103(a) of this title if the Secretary of
Health and Human Services determines that such material or
agent is a threat to the national security of the United
States.''.
(d) Conforming Amendment.--Section 5103a(a)(1) is amended
by striking ``subsection (c)(1)(B),'' and inserting
``subsection (d)(1)(B),''.

SEC. 4425. REPRESENTATION AND TAMPERING.

(a) Representation.--Section 5104(a) is amended--
(1) by striking ``a container,'' and all that follows
through ``packaging) for'' and inserting ``a package,
component of a package, or packaging for''; and
(2) by striking ``the container'' and all that follows
through ``packaging) meets'' and inserting ``the package,
component of a package, or packaging meets''.
(b) Tampering.--Section 5104(b) is amended--
(1) by inserting ``, without authorization from the owner
or custodian,'' after ``may not'';
(2) by striking ``unlawfully''; and
(3) by inserting ``component of a package, or packaging,''
after ``package,'' in paragraph (2).

SEC. 4426. TRANSPORTING CERTAIN HIGHLY RADIOACTIVE MATERIAL.

(a) Repeal of Routes and Modes Study.--Section 5105 is
amended by striking subsection (d).
(b) Repeal of Requirement for Inspections of Certain Motor
Vehicles.--Section 5105 is amended by striking subsection
(e).

SEC. 4427. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND GRANTS.

(a) Reference to Secretary of Transportation.--Section 5107
is amended by striking ``of Transportation'' each place it
appears in subsections (a), (b), (c) (other than in paragraph
(1)), (d), and (f).
(b) Training Grants.--Section 5107(e) is amended--
(1) by striking ``section 5127(c)(3)'' and inserting
``section 5128(b)(1) of this title'';
(2) by inserting ``and, to the extent determined
appropriate by the Secretary, grants for such instructors to
train hazmat employees'' after ``employees'' in the first
sentence thereof.

SEC. 4428. REGISTRATION.

(a) Reference to Secretary of Transportation.--Section 5108
is amended by striking ``of Transportation'' each place it
appears in subsections (a), (b) (other than following
``Department''), (d), (e), (f), (g), (h), and (i).
(b) Persons Required To File.--
(1) Requirement to file.--Section 5108(a)(1)(B) is amended
by striking ``class A or B explosive'' and inserting
``Division 1.1, 1.2, or 1.3 explosive material''.
(2) Authority to require to file.--Section 5108(a)(2)(B) is
amended to read as follows:
``(B) a person manufacturing, designing, inspecting,
testing, reconditioning, marking, or repairing a package or
packaging component that is represented as qualified for use
in transporting hazardous material in commerce.''.

[[Page S909]]

(3) No transportation without filing.--Section 5108(a)(3)
is amended by striking ``fabricate,'' and all that follows
through ``package or'' and inserting ``design, inspect, test,
recondition, mark, or repair a package, packaging component,
or''.
(c) Form and Content of Filings.--Section 5108(b)(1)(C) by
striking ``the activity.'' and inserting ``any of the
activities.''.
(d) Filing.--Section 5108(c) is amended to read as follows:
``(c) Filing.--Each person required to file a registration
statement under subsection (a) of this section shall file the
statement in accordance with regulations prescribed by the
Secretary.''.
(e) Fees.--Section 5108(g)(1) is amended by striking ``may
establish,'' and inserting ``shall establish,''.
(f) Relationship to Other Laws.--Section 5108(i)(2)(B) is
amended by inserting ``an Indian tribe,'' after ``subdivision
of a State,''.
(g) Registration and Annual Fees.--
(1) Reduction in cap.--Section 5108(g)(2)(A) is amended by
striking ``$5,000'' and inserting ``$2,000''.
(2) Rulemaking.--Any rule, regulation, or order issued by
the Secretary of Transportation under which the assessment,
payment, or collection of fees under section 5108(g) of title
49, United States Code, was suspended or terminated before
the date of enactment of this Act is declared null and void
effective 30 days after such date of enactment. Beginning on
the 31st day after such date of enactment, the fee schedule
established by the Secretary and set forth at 65 Federal
Register 7297 (as modified by the rule set forth at 67
Federal Register 58343) shall take effect and apply until
such time as it may be modified by a rulemaking proceeding.
(3) Planning and training grants.--Notwithstanding any
other provision of law to the contrary, including any
limitation on the amount of grants authorized by section 5116
of title 49, United States Code, not contained in that
section, the Secretary shall make grants under that section
from the account established under section 5116(i) to reduce
the balance in that account over the 6 fiscal year period
beginning with fiscal year 2004, but in no fiscal year shall
the grants distributed exceed the level authorized by section
5116 of title 49, United States Code.

SEC. 4429. SHIPPING PAPERS AND DISCLOSURE.

(a) Reference to Secretary of Transportation.--Section
5110(a) is amended by striking ``of Transportation''.
(b) Disclosure Considerations and Requirements.--Section
5110 is amended--
(1) by striking ``under subsection (b) of this section.''
in subsection (a) and inserting ``in regulations.'';
(2) by striking subsection (b); and
(3) by redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively.
(c) Retention of Papers.--The first sentence of section
5110(d), as redesignated by subsection (b)(3) of this
section, is amended to read as follows: ``The person who
provides the shipping paper, and the carrier required to keep
it, under this section shall retain the paper, or an
electronic format of it, for a period of 3 years after the
date the shipping paper is provided to the carrier, with the
paper and format to be accessible through their respective
principal places of business.''.

SEC. 4430. RAIL TANK CARS.

(a) Repeal of Requirements.--Section 5111 is repealed.
(b) Clerical Amendment.--The chapter analysis for chapter
51 is amended by striking the item relating to section 5111.

SEC. 4431. HIGHWAY ROUTING OF HAZARDOUS MATERIAL.

The second sentence of section 5112(a)(1) is amended by
striking ``However, the Secretary of Transportation'' and
inserting ``The Secretary''.

SEC. 4432. UNSATISFACTORY SAFETY RATINGS.

(a) In General.--The text of section 5113 is amended to
read as follows:
``A violation of section 31144(c)(3) of this title shall be
considered a violation of this chapter, and shall be subject
to the penalties in sections 5123 and 5124 of this title.''.
(b) Conforming Amendments.--The first subsection (c) of
section 31144 is amended--
(1) by striking ``sections 521(b)(5)(A) and 5113'' in
paragraph (1) and inserting ``section 521(b)(5)(A) of this
title''; and
(2) by adding at the end of paragraph (3) ``A violation of
this paragraph by an owner or operator transporting hazardous
material shall be considered a violation of chapter 51 of
this title, and shall be subject to the penalties in sections
5123 and 5124 of this title.''.

SEC. 4433. AIR TRANSPORTATION OF IONIZING RADIATION MATERIAL.

Section 5114(b) is amended by striking ``of
Transportation''.

SEC. 4434. TRAINING CURRICULUM FOR THE PUBLIC SECTOR.

(a) In General.--Section 5115(a) is amended to read as
follows:
``(a) In General.--In coordination with the Director of the
Federal Emergency Management Agency, the Chairman of the
Nuclear Regulatory Commission, the Administrator of the
Environmental Protection Agency, the Secretaries of Labor,
Energy, and Health and Human Services, and the Director of
the National Institute of Environmental Health Sciences, and
using existing coordinating mechanisms of the National
Response Team and, for radioactive material, the Federal
Radiological Preparedness Coordinating Committee, the
Secretary shall maintain a current curriculum of lists of
courses necessary to train public sector emergency response
and preparedness teams in matters relating to the
transportation of hazardous material.''.
(b) Requirements.--Section 5115(b) is amended--
(1) by striking ``developed'' in the matter preceding
paragraph (1) and inserting ``maintained''; and
(2) by striking ``under other United States Government
grant programs'' in paragraph (1)(C) and all that follows and
inserting ``with Federal assistance; and''.
(c) Training on Compliance with Legal Requirements.--
Section 5115(c)(3) is amended by striking ``Association.''
and inserting ``Association or by any other voluntary
organization establishing consensus-based standards that the
Secretary considers appropriate.''.
(d) Distribution and Publication.--Section 5115(d) is
amended--
(1) by striking ``national response team--'' and inserting
``National Response Team--''; and
(2) by striking ``publish a list'' in paragraph (2) and all
that follows and inserting ``publish and distribute the list
of courses maintained under this section, and of any programs
utilizing such courses.''.

SEC. 4435. PLANNING AND TRAINING GRANTS; EMERGENCY
PREPAREDNESS FUND.

(a) Reference to Secretary of Transportation.--Section 5116
is amended by striking ``of Transportation'' each place it
appears in subsections (a), (b), (c), (d), (g), and (i).
(b) Government Share of Costs.--Section 5116(e) is amended
by striking the second sentence.
(c) Monitoring and Technical Assistance.--Section 5116(f)
is amended by striking ``national response team'' and
inserting ``National Response Team''.
(d) Delegation of Authority.--Section 5116(g) is amended by
striking ``Government grant programs'' and inserting
``Federal financial assistance programs''.
(e) Emergency Preparedness Fund.--
(1) Name of fund.--Section 5116(i) is amended by inserting
after ``an account'' the following: ``(to be known as the
`Emergency Preparedness Fund')''.
(2) Publication of emergency response guide.--Section
5116(i) is further amended--
(A) by striking ``collects under section 5108(g)(2)(A) of
this title and'';
(B) by striking ``and'' after the semicolon in paragraph
(2);
(C) by redesignating paragraph (3) as paragraph (4); and
(D) by inserting after paragraph (2) the following:
``(3) to publish and distribute an emergency response
guide; and''.
(3) Conforming amendment.--Section 5108(g)(2)(C) is amended
by striking ``the account the Secretary of the Treasury
establishes'' and inserting ``the Emergency Response Fund
established''.
(f) Reports.--Section 5116(k) is amended--
(1) by striking the first sentence and inserting ``The
Secretary shall make available to the public annually
information on the allocation and uses of planning grants
under subsection (a), training grants under subsection (b),
and grants under subsection (j) of this section and under
section 5107 of this title.''; and
(2) by striking ``Such report'' in the second sentence and
inserting ``The information''.

SEC. 4436. SPECIAL PERMITS AND EXCLUSIONS.

(a) Special Permits and Exclusions.--
(1) In general.--Section 5117(a)(1) is amended by striking
``the Secretary of Transportation may issue'' and all that
follows through ``in a way'' and inserting ``the Secretary
may issue, modify, or terminate a special permit authorizing
variances from this chapter, or a regulation prescribed under
section 5103(b), 5104, 5110, or 5112 of this title, to a
person performing a function regulated by the Secretary under
section 5103(b)(1) of this title in a way''.
(2) Duration.--Section 5117(a)(2) is amended to read as
follows:
``(2) A special permit under this subsection--
``(A) shall be effective when first issued for not more
than 2 years; and
``(B) may be renewed for successive periods of not more
than 4 years each.''.
(b) References to Special Permits.--Section 5117 is further
amended--
(1) by striking ``an exemption'' each place it appears and
inserting ``a special permit''; and
(2) by striking ``the exemption'' each place it appears and
inserting ``the special permit''.
(c) Conforming and Clerical Amendments.--
(1) Conforming amendment.--The heading of section 5117 is
amended to read as follows:

``Sec. 5117. Special permits and exclusions''

(2) Clerical amendment.--The chapter analysis for chapter
51 is amended by striking the item relating to section 5117
and inserting the following:

``5117. Special permits and exclusions.''.
(d) Repeal of section 5118.--
(1) Section 5118 is repealed.
(2) The chapter analysis for chapter 51 is amended by
striking the item relating to section 5118 and inserting the
following:

``5118. Repealed''

SEC. 4437. UNIFORM FORMS AND PROCEDURES.

The text of section 5119 is amended to read as follows:

[[Page S910]]

``(a) In General.--The Secretary may prescribe regulations
to establish uniform forms and regulations for States on the
following:
``(1) To register and issue permits to persons that
transport or cause to be transported hazardous material by
motor vehicles in a State.
``(2) To permit the transportation of hazardous material in
a State.
``(b) Uniformity in Forms and Procedures.--In prescribing
regulations under subsection (a) of this section, the
Secretary shall develop procedures to eliminate discrepancies
among the States in carrying out the activities covered by
the regulations.
``(c) Limitation.--The regulations prescribed under
subsection (a) of this section may not define or limit the
amount of any fees imposed or collected by a State for any
activities covered by the regulations.
``(d) Effective Date.--
``(1) In general.--Except as provided in paragraph (2) of
this subsection, the regulations prescribed under subsection
(a) of this section shall take effect 1 year after the date
on which prescribed.
``(2) Extension.--The Secretary may extend the 1-year
period in subsection (a) for an additional year for good
cause.
``(e) State Regulations.--After the regulations prescribed
under subsection (a) of this section take effect under
subsection (d) of this section, a State may establish,
maintain, or enforce a requirement relating to the same
subject matter only if the requirement is consistent with
applicable requirements with respect to such activity in the
regulations.
``(f) Interim State Programs.--Pending the prescription of
regulations under subsection (a) of this section, States may
participate in the program of uniform forms and procedures
recommended by the Alliance for Uniform Hazmat Transportation
Procedures.''.

SEC. 4438. INTERNATIONAL UNIFORMITY OF STANDARDS AND
REQUIREMENTS.

Section 5120 is amended by striking ``of Transportation''
each place it appears in subsections (a), (b), and (c)(1).

SEC. 4439. HAZARDOUS MATERIALS TRANSPORTATION SAFETY AND
SECURITY.

The text of section 5121 is amended to read as follows:
``(a) General Authority.--
``(1) To carry out this chapter, the Secretary may
investigate, conduct tests, make reports, issue subpoenas,
conduct hearings, require the production of records and
property, take depositions, and conduct research,
development, demonstration, and training activities.
``(2) Except as provided in subsections (c) and (d) of this
section, the Secretary shall provide notice and an
opportunity for a hearing before issuing an order directing
compliance with this chapter, a regulation prescribed under
this chapter, or an order, special permit, or approval issued
under this chapter.
``(b) Records, Reports, Property, and Information.--A
person subject to this chapter shall--
``(1) maintain records, make reports, and provide property
and information that the Secretary by regulation or order
requires; and
``(2) make the records, reports, property, and information
available for inspection when the Secretary undertakes an
inspection or investigation.
``(c) Inspections and Investigations.--
``(1) A designated officer or employee of the Secretary
may--
``(A) inspect and investigate, at a reasonable time and in
a reasonable way, records and property relating to a function
described in section 5103(b)(1) of this title;
``(B) except for packaging immediately adjacent to the
hazardous material contents, gain access to, open, and
examine a package offered for or in transportation when the
officer or employees has an objectively reasonable and
articulable belief that the package may contain hazardous
material;
``(C) remove from transportation a package or related
packages in a shipment offered for or in transportation for
which--
``(i) such officer or employee has an objectively
reasonable and articulable belief that the package may pose
an imminent hazard; and
``(ii) such officer or employee contemporaneously documents
such belief in accordance with procedures set forth in
regulations prescribed under subsection (e) of this section;
``(D) gather information from the offeror, carrier,
packaging manufacturer or retester, or other person
responsible for a package or packages to ascertain the nature
and hazards of the contents of the package or packages;
``(E) as necessary under terms and conditions prescribed by
the Secretary, order the offeror, carrier, or other person
responsible for a package or packages to have the package or
packages transported to an appropriate facility, opened,
examined, and analyzed; and
``(F) when safety might otherwise be compromised, authorize
properly qualified personnel to assist in activities carried
out under this paragraph.
``(2) An officer or employee acting under the authority of
the Secretary under this subsection shall display proper
credentials when requested.
``(3) In instances when, as a result of an inspection or
investigation under this subsection, an imminent hazards is
not found to exist, the Secretary shall, in accordance with
procedures set forth in regulations prescribed under
subsection (e) of this section, assist the safe resumption of
transportation of the package, packages, or transport unit
concerned.
``(d) Emergency Orders.--
``(1) If, upon inspection, investigation, testing, or
research, the Secretary determines that a violation of a
provision of this chapter, or a regulation prescribed under
this chapter, or an unsafe condition or practice, constitutes
or is causing an imminent hazard, the Secretary may issue or
impose emergency restrictions, prohibitions, recalls, or out-
of-service orders, without notice or an opportunity for a
hearing, but only to the extent necessary to abate the
imminent hazard.
``(2) The action of the Secretary under paragraph (1) of
this subsection shall be in a written emergency order that--
``(A) describes the violation, condition, or practice that
constitutes or is causing the imminent hazard;
``(B) states the restrictions, prohibitions, recalls, or
out-of-service orders issued or imposed; and
``(C) describe the standards and procedures for obtaining
relief from the order.
``(3) After taking action under paragraph (1) of this
subsection, the Secretary shall provide for review of the
action under section 554 of title 5 if a petition for review
is filed within 20 calendar days of the issuance of the order
for the action.
``(4) If a petition for review of an action is filed under
paragraph (3) of this subsection and the review under that
paragraph is not completed by the end of the 30-day period
beginning on the date the petition is filed, the action shall
cease to be effective at the end of such period unless the
Secretary determines, in writing, that the imminent hazard
providing a basis for the action continues to exist.
``(5) In this subsection, the term `out-of-service order'
means a requirement that an aircraft, vessel, motor vehicle,
train, railcar, locomotive, other vehicle, transport unit,
transport vehicle, freight container, potable tank, or other
package not be moved until specified conditions have been
met.
``(e) Regulations.--The Secretary shall prescribe in
accordance with section 553 of title 5 regulations to carry
out the authority in subsections (c) and (d) of this section.
``(f) Facility, Staff, and Reporting System on Risks,
Emergencies, and Actions.--
``(1) The Secretary shall--
``(A) maintain a facility and technical staff sufficient to
provide, within the United States Government, the capability
of evaluating a risk relating to the transportation of
hazardous material and material alleged to be hazardous;
``(B) maintain a central reporting system and information
center capable of providing information and advice to law
enforcement and firefighting personnel, and other interested
individuals, and officers and employees of the United States
Government and State and local governments on meeting an
emergency relating to the transportation of hazardous
material; and
``(C) conduct a continuous review on all aspects of
transporting hazardous material to decide on and take
appropriate actions to ensure safe transportation of
hazardous material.
``(2) Paragraph (1) of this subsection shall not prevent
the Secretary from making a contract with a private entity
for use of a supplemental reporting system and information
center operated and maintained by the contractor.
``(g) Grants, Cooperative Agreements, and Other
Transactions.--The Secretary may enter into grants,
cooperative agreements, and other transactions with a person,
agency, or instrumentality of the United States, a unit of
State or local government, an Indian tribe, a foreign
government (in coordination with the Department of State), an
educational institution, or other appropriate entity--
``(1) to expand risk assessment and emergency response
capabilities with respect to the security of transportation
of hazardous material;
``(2) to conduct research, development, demonstration, risk
assessment and emergency response planning and training
activities; or
``(3) to otherwise carry out this chapter.
``(h) Reports.--
``(1) The Secretary shall, once every 2 years, submit to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure a comprehensive report on the
transportation of hazardous material during the preceding 2
calendar years. Each report shall include, for the period
covered by such report--
``(A) a statistical compilation of the accidents,
incidents, and casualties related to the transportation of
hazardous material during such period;
``(B) a list and summary of applicable Government
regulations, criteria, orders, and special permits;
``(C) a summary of the basis for each special permit
issued;
``(D) an evaluation of the effectiveness of enforcement
activities relating to the transportation of hazardous
material during such period, and of the degree of voluntary
compliance with regulations;
``(E) a summary of outstanding problems in carrying out
this chapter, set forth in order of priority; and

[[Page S911]]

``(F) any recommendations for legislative or administrative
action that the Secretary considers appropriate.
``(2) Before December 31, 2005, and every 3 years
thereafter, the Secretary, through the Bureau of
Transportation Statistics and in consultation with other
Federal departments and agencies, shall submit a report to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure on the transportation of hazardous
material in all modes of transportation during the preceding
3 calendar years. Each report shall include, for the period
covered by such report--
``(A) a summary of the hazardous material shipments,
deliveries, and movements during such period, set forth by
hazardous materials type, by tonnage and ton-miles, and by
mode, both domestically and across United States borders; and
``(B) a summary of shipment estimates during such period as
a proxy for risk.
``(i) Security Sensitive Information.--
``(1) If the Secretary determines that particular
information may reveal a vulnerability of a hazardous
material to attack during transportation in commerce, or may
facilitate the diversion of hazardous material during
transportation in commerce for use in an attack on people or
property, the Secretary may disclose such information only--
``(A) to the owner, custodian, offeror, or carrier of such
hazardous material;
``(B) to an officer, employee, or agent of the United
States Government, or a State or local government, including
volunteer fire departments, concerned with carrying out
transportation safety laws, protecting hazardous material in
the course of transportation in commerce, protecting public
safety or national security, or enforcing Federal law
designed to protect public health or the environment; or
``(C) in an administrative or judicial proceeding brought
under this chapter, under other Federal law intended to
protect public health or the environment, or under other
Federal law intended to address terrorist actions or threats
of terrorist actions.
``(2) The Secretary may make determinations under paragraph
(1) of this subsection with respect categories of information
in accordance with regulations prescribed by the Secretary.
``(3) A release of information pursuant to a determination
under paragraph (1) of this subsection shall not be treated
as a release of such information to the public for purposes
of section 552 of title 5.''.

SEC. 4440. ENFORCEMENT.

(a) Reference to Secretary of Transportation.--Section
5122(a) is amended by striking ``of Transportation''.
(b) General.--Section 5122(a) is further amended--
(1) by striking ``chapter or a regulation prescribed or
order''in the first sentence and inserting ``chapter, a
regulation prescribed under this chapter, or an order,
special permit, or approval''; and
(2) by striking the second sentence and inserting ``In an
action under this subsection, the court may award appropriate
relief, including a temporary or permanent injunction, civil
penalties under section 5123 of this title, and punitive
damages.''.
(c) Imminent Hazards.--Section 5122(b)(1)(B) is amended by
striking ``ameliorate'' and inserting ``mitigate''.

SEC. 4441. CIVIL PENALTIES.

(a) Reference to Secretary of Transportation.--Section
5123(b) is amended by striking ``of Transportation''.
(b) Penalty.--Section 5123(a)(1) is amended--
(1) by striking ``chapter or a regulation prescribed or
order'' and inserting ``chapter, a regulation prescribed
under this chapter, or an order, special permit, or
approval''; and
(2) by striking ``$25,000'' and inserting ``$100,000''.
(c) Hearing Requirement.--Section 5123(b) is amended by
striking ``chapter or a regulation prescribed'' and inserting
``chapter, a regulation prescribed under this chapter, or an
order, special permit, or approval issued''.
(d) Civil Actions To Collect.--Section 5123(d) is amended
by striking ``section.'' and inserting ``section and any
accrued interest on the civil penalty as calculated in
accordance with section 1005 of the Oil Pollution Act of 1990
(33 U.S.C. 2705). In the civil action, the amount and
appropriateness of the civil penalty shall not be subject to
review.''.
(e) Effective Date.--(1) The amendments made by subsections
(b) and (c) of this section shall take effect on the date of
the enactment of this Act, and shall apply with respect to
violations described in section 5123(a) of title 49, United
States Code (as amended by this section), that occur on or
after that date.
(2) The amendment made by subsection (d) of this section
shall apply with respect to civil penalties imposed on
violations described in section 5123(a) of title 49, United
States Code (as amended by this section), which violations
occur on or after the date of the enactment of this Act.

SEC. 4442. CRIMINAL PENALTIES.

(a) In General.--Section 5124 is amended--
(1) by inserting ``(a) In General.--'' before ``A person'';
and
(2) by striking ``chapter or a regulation prescribed or
order'' and inserting ``chapter, a regulation prescribed
under this chapter, or an order, special permit, or
approval''.
(b) Additional Matters.--That section is further amended by
adding at the end the following:
``(b) Aggravated Violations.--A person knowingly violating
section 5104(b) of this title or willfully violating this
chapter or a regulation prescribed, or an order, special
permit, or approval issued, under this chapter, who thereby
causes the release of hazardous material shall be fined under
title 18, imprisoned for not more than 20 years, or both.
``(c) Separate Violations.--A separate violation occurs for
each day the violation, committed by a person who transports
or causes to be transported hazardous material, continues.''.

SEC. 4443. PREEMPTION.

(a) Reference to Secretary of Transportation.--Section
5125(b)(2) is amended by striking ``of Transportation''.
(b) Purposes.--Section 5125 is amended--
(1) by redesignating subsections (a), (b), (c), (d), (e),
(f), and (g) as subsections (b), (c), (d), (e), (f), (g), and
(h), respectively;
(2) by inserting before subsection (b), as so redesignated,
the following:
``(a) Purposes.--The Secretary shall exercise the authority
in this section--
``(1) to achieve uniform regulation of the transportation
of hazardous material;
``(2) to eliminate rules that are inconsistent with the
regulations prescribed under this chapter; and
``(3) to otherwise promote the safe and efficient movement
of hazardous material in commerce.'';
(3) by striking subsection (g), as redesignated; and
(4) by redesignating subsection (h), as redesignated, as
subsection (g).
(c) General Preemption.--Section 5125(b), as redesignated
by subsection (b)(1) of this section, is further amended by
striking ``General.--Except as provided in subsection (b),
(c), and (e)'' and inserting ``Preemption Generally.--Except
as provided in subsections (c), (d), and (f)''.
(d) Substantive Differences.--Section 5125(c), as so
redesignated, is further amended--
(1) in the matter preceding subparagraph (A) of paragraph
(1), by striking ``subsection (c)'' and inserting
``subsection (d)'';
(2) by striking subparagraph (E) of paragraph (1) and
inserting the following:
``(E) the manufacturing, designing, inspecting, testing,
reconditioning, or repairing of a packaging or packaging
component that is represented as qualified for use in
transporting hazardous material in commerce.''; and
(3) by striking ``prescribes after November 16, 1990.
However, the'' in paragraph (2) and inserting ``prescribes.
The''.
(e) Decisions on Preemption.--Section 5125(e), as so
redesignated, is further amended by striking ``subsection
(a), (b)(1), or (c) of this section.'' in the first sentence
and inserting ``subsection (b), (c)(1), or (d) of this
section or section 5119(b) of this title.''.
(f) Waiver of Preemption.--Section 5125(f), as so
redesignated, is further amended by striking ``subsection
(a), (b)(1), or (c) of this section.'' and inserting
``subsection (b), (c)(1), or (d) of this section or section
5119(b) of this title.''.
(g) Emergency Waiver of Preemption; Additional Matters.--
Section 5125 is further amended--
(1) by redesignating subsection (g), as redesignated by
subsection (b)(4) of this section, as subsection (j); and
(2) by inserting after subsection (f), as redesignated by
subsection (b)(1) of this section, the following:
``(g) Emergency Waiver of Preemption.--
``(1) The Secretary may, upon a finding of good cause,
waive the preemption of a requirement of a State, political
subdivision of a State, or Indian tribe under this section
without prior notice or an opportunity for public comment
thereon.
``(2) For purposes of paragraph (1) of this subsection,
good cause exists when--
``(A) there is a potential threat that hazardous material
being transported in commerce may be used in an attack on
people or property; and
``(B) notice and an opportunity for public comment thereon
are impracticable or contrary to the public interest.
``(3)(A) A waiver of preemption under paragraph (1) of this
subsection shall be in effect for a period specified by the
Secretary, but not more than 6 months.
``(B) If the Secretary determines before the expiration of
a waiver of preemption under subparagraph (A) of this
paragraph that the potential threat providing the basis for
the waiver continues to exist, the Secretary may, after
providing notice and an opportunity for public comment
thereon, extend the duration of the waiver for such period
after the expiration of the waiver under that subparagraph as
the Secretary considers appropriate.
``(4) An action of the Secretary under paragraph (1) or (3)
of this subsection shall be in writing and shall set forth
the standards and procedures for seeking reconsideration of
the action.
``(5) After taking action under paragraph (1) or (3) of
this subsection, the Secretary shall provide for review of
the action if a petition for review of the action is filed
within 20 calendar days after the date of the action.
``(6) If a petition for review of an action is filed under
paragraph (5) of this subsection and review of the action is
not completed by the end of the 30-day period beginning on
the date the petition is filed, the waiver under this
subsection shall cease to be effective at

[[Page S912]]

the end of such period unless the Secretary determines, in
writing, that the potential threat providing the basis for
the waiver continues.
``(h) Application of Each Preemption Standard.--Each
standard for preemption in subsection (b), (c)(1), or (d) of
this section, and in section 5119(b) of this title, is
independent in its application to a requirement of a State,
political subdivision of a State, or Indian tribe.
``(i) Non-Federal Enforcement Standards.--This section does
not apply to any procedure, penalty, required mental state,
or other standard utilized by a State, political subdivision
of a State, or Indian tribe to enforce a requirement
applicable to the transportation of hazardous material.''.

SEC. 4444. RELATIONSHIP TO OTHER LAWS.

Section 5126 is amended--
(1) by striking ``or causes to be transported hazardous
material,'' in subsection (a) and inserting ``hazardous
material, or causes hazardous material to be transported,'';
(2) by striking ``manufactures,'' and all that follows
through ``or sells'' in subsection (a) and inserting
``manufactures, designs, inspects, tests, reconditions,
marks, or repairs a packaging or packaging component that is
represented'';
(3) by striking ``must'' in subsection (a) and inserting
``shall'';
(4) by striking ``manufacturing,'' in subsection (a) and
all that follows through ``testing'' and inserting
``manufacturing, designing, inspecting, testing,
reconditioning, marking, or repairing''; and
(5) by striking ``39.'' in subsection (b)(2) and inserting
``39, except in the case of an imminent hazard.''.

SEC. 4445. JUDICIAL REVIEW.

(a) In General.--Chapter 51 is amended--
(1) by redesignating section 5127 as section 5128; and
(2) by inserting after section 5126 the following:

``Sec. 5127. Judicial review

``(a) Filing and Venue.--Except as provided in section
20114(c) of this title, a person suffering legal wrong or
adversely affected or aggrieved by a final action of the
Secretary under this chapter may petition for review of the
final action in the United States Court of Appeals for the
District of Columbia or in the court of appeals of the United
States for the circuit in which the person or resides or has
the principal place of business. The petition shall be filed
not more than 60 days after the action of the Secretary
becomes final.
``(b) Procedures.--When a petition on a final action is
filed under subsection (a) of this section, the clerk of the
court shall immediately send a copy of the petition to the
Secretary. The Secretary shall file with the court a record
of any proceeding in which the final action was issued as
provided in section 2112 of title 28.
``(c) Authority of Court.--The court in which a petition on
a final action is filed under subsection (a) of this section
has exclusive jurisdiction, as provided in subchapter II of
chapter 5 of title 5 to affirm or set aside any part of the
final action and may order the Secretary to conduct further
proceedings. Findings of fact by the Secretary, if supported
by substantial evidence, are conclusive.
``(d) Requirement for Prior Objections.--In reviewing a
final action under this section, the court may consider an
objection to the final action only if--
``(1) the objection was made in the course of a proceeding
or review conducted by the Secretary; or
``(2) there was a reasonable ground for not making the
objection in the proceeding.''.
(b) Clerical Amendment.--The chapter analysis for chapter
51 is amended by striking the item relating to section 5127
and inserting the following:

``5127. Judicial review.
``5128. Authorization of appropriations.''.

SEC. 4446. AUTHORIZATION OF APPROPRIATIONS.

Section 5128, as redesignated by section 4445 of this
title, is amended to read as follows:

``Sec. 5128. Authorization of appropriations

``(a) General.--In order to carry out this chapter (except
sections 5107(e), 5108(g), 5112, 5113, 5115, 5116, and 5119
of this title), the following amounts are authorized to be
appropriated to the Secretary:
``(1) For fiscal year 2004, not more than $24,981,000.
``(2) For fiscal year 2005, not more than $27,000,000.
``(3) For fiscal year 2006, not more than $29,000,000.
``(4) For each of fiscal years 2007 through 2009, not more
than $30,000,000.
``(b) Emergency Preparedness Fund.--There shall be
available from the Emergency Preparedness Fund under section
5116(i) of this title, amounts as follows:
``(1) To carry out section 5107(e) of this title,
$4,000,000 for each of fiscal years 2004 through 2009.
``(2) To carry out section 5115 of this title, $200,000 for
each of fiscal years 2004 through 2009.
``(3) To carry out section 5116(a) of this title,
$8,000,000 for each of fiscal years 2004 through 2009.
``(4) To carry out section 5116(b) of this title,
$13,800,000 for each of fiscal years 2004 through 2009.
``(5) To carry out section 5116(f) of this title, $150,000
for each of fiscal years 2004 through 2009.
``(6) To carry out section 5116(i)(4) of this title,
$150,000 for each of fiscal years 2004 through 2009.
``(7) To carry out section 5116(j) of this title,
$1,000,000 for each of fiscal years 2004 through 2009.
``(8) To publish and distribute an emergency response
guidebook under section 5116(i)(3) of title 49, United States
Code, $500,000 for each of fiscal years 2004 through 2009.
``(c) Section 5121 Reports.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of the Bureau of Transportation Statistics such sums as may
be necessary to carry out section 5121(h) of this title.''.
``(c) Credit to Appropriations.--The Secretary may credit
to any appropriation to carry out this chapter an amount
received from a State, political subdivision of a State,
Indian tribe, or other public authority or private entity for
expenses the Secretary incurs in providing training to the
State, political subdivision, Indian tribe, or other
authority or entity.
``(d) Availability of Amounts.--Amounts available under
subsections (a) and (b) of this section shall remain
available until expended.''.

SEC. 4447. ADDITIONAL CIVIL AND CRIMINAL PENALTIES.

(a) Title 49 Penalties.--Section 46312 is amended--
(1) by striking ``part--'' in subsection (a) and inserting
``part or chapter 51 of this title--''; and
(2) by inserting ``or chapter 51 of this title'' in
subsection (b) after ``under this part''.
(b) Title 18 Penalties.--Section 3663(a)(1)(A) of title 18,
United States Code, is amended by inserting ``5124,'' before
``46312,''.

Part 2--Other Matters

SEC. 4461. ADMINISTRATIVE AUTHORITY FOR RESEARCH AND SPECIAL
PROGRAMS ADMINISTRATION.

Section 112 is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e) Administrative Authorities.--
``(1) Grants, cooperative agreements, and other
transactions.--The Administrator may enter into grants,
cooperative agreements, and other transactions with Federal
agencies, State and local government agencies, other public
entities, private organizations, and other persons--
``(A) to conduct research into transportation service and
infrastructure assurance; and
``(B) to carry out other research activities of the
Administration.
``(2) Limitation on disclosure of certain information.--
``(A) Limitation.--If the Administrator determines that
particular information developed in research sponsored by the
Administration may reveal a systemic vulnerability of
transportation service or infrastructure, such information
may be disclosed only to--
``(i) a person responsible for the security of the
transportation service or infrastructure; or
``(ii) a person responsible for protecting public safety;
or
``(iii) an officer, employee, or agent of the Federal
Government, or a State or local government, who, as
determined by the Administrator, has need for such
information in the performance of official duties.
``(B) Treatment of release.--The release of information
under subparagraph (A) shall not be treated as a release to
the public for purposes of section 552 of title 5.''.

SEC. 4462. MAILABILITY OF HAZARDOUS MATERIALS.

(a) Nonmailability Generally.--Section 3001 of title 39,
United States Code, is amended--
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following:
``(n)(1) Except as otherwise authorized by law or
regulations of the Postal Service under section 3018 of this
title, hazardous material is nonmailable.
``(2) In this subsection, the term `hazardous material'
means a substance or material designated by the Secretary of
Transportation as hazardous material under section 5103(a) of
title 49.''.
(b) Mailability.--
(1) In General.--Chapter 30 of title 39, United States
Code, is amended by adding at the end the following:

``Sec. 3018. Hazardous material

``(a) In General.--The Postal Service shall prescribe
regulations for the safe transportation of hazardous material
in the mails.
``(b) Prohibitions.--No person may--
``(1) mail or cause to be mailed hazardous material that
has been declared by statute or Postal Service regulation to
be nonmailable;
``(2) mail or cause to be mailed hazardous material in
violation of any statute or Postal Service regulation
restricting the time, place, or manner in which hazardous
material may be mailed; or
``(3) manufacture, distribute, or sell any container,
packaging kit, or similar device that--
``(A) is represented, marked, certified, or sold by such
person for use in the mailing of hazardous material; and
``(B) fails to conform with any statute or Postal Service
regulation setting forth

[[Page S913]]

standards for a container, packaging kit, or similar device
used for the mailing of hazardous material.
``(c) Civil Penalty.--
``(1) In general.--A person who knowingly violates this
section or a regulation prescribed under this section shall
be liable to the Postal Service for--
``(A) a civil penalty of at least $250, but not more than
$100,000, for each violation;
``(B) the costs of any clean-up associated with such
violation; and
``(C) damages.
``(2) Knowing action.--A person acts knowingly for purposes
of paragraph (1) when--
``(A) the person has actual knowledge of the facts giving
rise to the violation; or
``(B) a reasonable person acting in the circumstances and
exercising reasonable care would have had that knowledge.
``(3) Knowledge of statute or regulation not element of
offense.--Knowledge of the existence of a statutory provision
or Postal Service regulation is not an element of an offense
under this subsection.
``(4) Separate violations.--
``(A) Violations over time.--A separate violation under
this subsection occurs for each day hazardous material,
mailed or cause to be mailed in noncompliance with this
section, is in the mail.
``(B) Separate items.--A separate violation under this
subsection occurs for each item containing hazardous material
that is mailed or caused to be mailed in noncompliance with
this section.
``(d) Hearings.--The Postal Service may determine that a
person has violated this section or a regulation prescribed
under this section only after notice and an opportunity for a
hearing.
``(e) Penalty Considerations.--In determining the amount of
a civil penalty for a violation of this section, the Postal
Service shall consider--
``(1) the nature, circumstances, extent, and gravity of the
violation;
``(2) with respect to the person who committed the
violation, the degree of culpability, any history of prior
violations, the ability to pay, and any effect on the ability
to continue in business;
``(3) the impact on Postal Service operations; and
``(4) any other matters that justice requires.
``(f) Civil Actions To Collect.--
``(1) In general.--In accordance with section 4409(d) of
this title, a civil action may be commenced in an appropriate
district court of the United States to collect a civil
penalty, clean-up costs, and damages assessed under
subsection (c).
``(2) Limitation.--In a civil action under paragraph (1),
the validity, amount, and appropriateness of the civil
penalty, clean-up costs, and damages covered by the civil
action shall not be subject to review.
``(3) Compromise.--The Postal Service may compromise the
amount a civil penalty, clean-up costs, and damages assessed
under subsection (c) before commencing a civil action with
respect to such civil penalty, clean-up costs, and damages
under paragraph (1).
``(g) Civil Judicial Penalties.--
``(1) In general.--At the request of the Postal Service,
the Attorney General may bring a civil action in an
appropriate district court of the United States to enforce
this section or a regulation prescribed under this section.
``(2) Relief.--The court in a civil action under paragraph
(1) may award appropriate relief, including a temporary or
permanent injunction, civil penalties as determined in
accordance with this section, or punitive damages.
``(3) Construction.--A civil action under this subsection
shall be in lieu of civil penalties for the same violation
under subsection (c)(1)(A).
``(h) Deposit of Amounts Collected.--Amounts collected
under this section shall be deposited into the Postal Service
Fund under section 2003 of this title.''.
(2) Conforming Amendment.--The chapter analysis for chapter
30 of title 39, United States Code, is amended by adding at
the end the following:

``3018. Hazardous material.''.

(c) Conforming Amendment.--Section 2003(b) of title 39,
United States Code, is amended--
(1) by striking ``and'' after the semicolon in paragraph
(7);
(2) by striking ``purposes.'' in paragraph (8) and
inserting ``purposes; and''; and
(3) by adding at the end the following:
``(9) any amounts collected under section 3018 of this
title.''.

SEC. 4463. CRIMINAL MATTERS.

Section 845(a)(1) of title 18, United States Code, is
amended by striking ``which are regulated'' and all that
follows and inserting ``that is subject to the authority of
the Departments of Transportation and Homeland Security;''.

SEC. 4464. CARGO INSPECTION PROGRAM.

(a) In General.--The Secretary of Transportation may
establish a program of random inspections of cargo at points
of entry into the United States for the purpose of
determining the extent to which undeclared hazardous material
is being offered for transportation in commerce through such
points of entry.
(b) Inspections.--Under the program under subsection (a)--
(1) an officer of the Department of Transportation who is
not located at a point of entry into the United States may
select at random cargo shipments at points of entry into the
United States for inspection; and
(2) an officer or employee of the Department may open and
inspect each cargo shipment so selected for the purpose
described in subsection (a).
(c) Coordination.--The Secretary of Transportation shall
coordinate any inspections under the program under subsection
(a) with the Secretary of Homeland Security.
(d) Disposition of Hazardous Materials.--The Secretary of
Transportation shall provide for the appropriate handling and
disposition of any hazardous material discovered pursuant to
inspections under the program under subsection (a).

SEC. 4465. INFORMATION ON HAZMAT REGISTRATIONS.

The Administrator of the Department of Transportation's
Research and Special Programs Administration shall--
(1) transmit current hazardous material registrant
information to the Federal Motor Carrier Safety
Administration to cross reference the registrant's Federal
motor carrier registration number; and
(2) notify the Federal Motor Carrier Safety Administration
immediately, and provide a registrant's United States
Department of Transportation identification number to the
Administration, whenever a new registrant registers to
transport hazardous materials as a motor carrier.

SEC. 4466. REPORT ON APPLYING HAZARDOUS MATERIALS REGULATIONS
TO PERSONS WHO REJECT HAZARDOUS MATERIALS.

Within 6 months after the date of enactment of this Act,
the Secretary of Transportation shall complete an assessment
of the costs and benefits of subjecting persons who reject
hazardous material for transportation in commerce to the
hazardous materials laws and regulations. In completing this
assessment, the Secretary shall--
(1) estimate the number of affected employers and
employees;
(2) determine what actions would be required by them to
comply with such laws and regulations; and
(3) consider whether and to what extent the application of
Federal hazardous materials laws and regulations should be
limited to--
(A) particular modes of transportation;
(B) certain categories of employees; or
(C) certain classes or categories of hazardous materials.

Part 3--Sanitary Food Transportation

SEC. 4481. SHORT TITLE.

This part may be cited as the ``Sanitary Food
Transportation Act of 2004''.

SEC. 4482. RESPONSIBILITIES OF THE SECRETARY OF HEALTH AND
HUMAN SERVICES.

(a) Unsanitary Transport Deemed Adulteration.--Section 402
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342)
is amended by adding at the end the following:
``(i) Noncompliance With Sanitary Transportation
Practices.--If the food is transported under conditions that
are not in compliance with the sanitary transportation
practices prescribed by the Secretary under section 416.''.
(b) Sanitary Transportation Requirements.--Chapter IV of
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341 et
seq.) is amended by adding at the end the following:

``SEC. 416. SANITARY TRANSPORTATION PRACTICES.

``(a) Definitions.--In this section:
``(1) Bulk vehicle.--The term `bulk vehicle' includes a
tank truck, hopper truck, rail tank car, hopper car, cargo
tank, portable tank, freight container, or hopper bin, and
any other vehicle in which food is shipped in bulk, with the
food coming into direct contact with the vehicle.
``(2) Transportation.--The term `transportation' means any
movement in commerce by motor vehicle or rail vehicle.
``(b) Regulations.--The Secretary shall by regulation
require shippers, carriers by motor vehicle or rail vehicle,
receivers, and other persons engaged in the transportation of
food to use sanitary transportation practices prescribed by
the Secretary to ensure that food is not transported under
conditions that may render the food adulterated.
``(c) Contents.--The regulations shall--
``(1) prescribe such practices as the Secretary determines
to be appropriate relating to--
``(A) sanitation;
``(B) packaging, isolation, and other protective measures;
``(C) limitations on the use of vehicles;
``(D) information to be disclosed--
``(i) to a carrier by a person arranging for the transport
of food; and
``(ii) to a manufacturer or other person that--

``(I) arranges for the transportation of food by a carrier;
or
``(II) furnishes a tank vehicle or bulk vehicle for the
transportation of food; and

``(E) recordkeeping; and
``(2) include--
``(A) a list of nonfood products that the Secretary
determines may, if shipped in a bulk vehicle, render
adulterated food that is subsequently transported in the same
vehicle; and
``(B) a list of nonfood products that the Secretary
determines may, if shipped in a motor vehicle or rail vehicle
(other than a tank vehicle or bulk vehicle), render
adulterated food that is simultaneously or subsequently
transported in the same vehicle.

[[Page S914]]

``(d) Waivers.--
``(1) In general.--The Secretary may waive any requirement
under this section, with respect to any class of persons,
vehicles, food, or nonfood products, if the Secretary
determines that the waiver--
``(A) will not result in the transportation of food under
conditions that would be unsafe for human or animal health;
and
``(B) will not be contrary to the public interest.
``(2) Publication.--The Secretary shall publish in the
Federal Register any waiver and the reasons for the waiver.
``(e) Preemption.--
``(1) In general.--No State or political subdivision of a
State may directly or indirectly establish or continue in
effect, as to any food in interstate commerce, any authority
or requirement concerning transportation of food that is not
identical to an authority or requirement under this section.
``(2) Applicability.--This subsection applies to
transportation that occurs on or after the effective date of
the regulations promulgated under subsection (b).
``(f) Assistance of Other Agencies.--The Secretary of
Transportation, the Secretary of Agriculture, the
Administrator of the Environmental Protection Agency, and the
heads of other Federal agencies, as appropriate, shall
provide assistance on request, to the extent resources are
available, to the Secretary for the purposes of carrying out
this section.''.
(c) Inspection of Transportation Records.--
(1) Requirement.--Section 703 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 373) is amended--
(A) by striking the section heading and all that follows
through ``For the purpose'' and inserting the following:

``SEC. 703. RECORDS.

``(a) In General.--For the purpose''; and
(B) by adding at the end the following:
``(b) Food Transportation Records.--A shipper, carrier by
motor vehicle or rail vehicle, receiver, or other person
subject to section 416 shall, on request of an officer or
employee designated by the Secretary, permit the officer or
employee, at reasonable times, to have access to and to copy
all records that the Secretary requires to be kept under
section 416(c)(1)(E).''.
(2) Conforming amendment.--Subsection (a) of section 703 of
the Federal Food, Drug, and Cosmetic Act (as designated by
paragraph (1)(A)) is amended by striking ``carriers.'' and
inserting ``carriers, except as provided in subsection (b)''.
(d) Prohibited Acts.--
(1) Records inspection.--Section 301(e) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 331(e)) is amended by
inserting ``416,'' before ``504,'' each place it appears.
(2) Unsafe food transportation.--Section 301 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amended by
adding at the end the following:
``(hh) Noncompliance With Sanitary Transportation
Practices.--The failure by a shipper, carrier by motor
vehicle or rail vehicle, receiver, or any other person
engaged in the transportation of food to comply with the
sanitary transportation practices prescribed by the Secretary
under section 416.''.

SEC. 4483. DEPARTMENT OF TRANSPORTATION REQUIREMENTS.

Chapter 57 of title 49, United States Code, is amended to
read as follows:

``CHAPTER 57--SANITARY FOOD TRANSPORTATION

``Sec.
``5701. Food transportation safety inspections.

``Sec. 5701. Food transportation safety inspections

``(a) Inspection Procedures.--
``(1) In general.--The Secretary of Transportation, in
consultation with the Secretary of Health and Human Services
and the Secretary of Agriculture, shall--
``(A) establish procedures for transportation safety
inspections for the purpose of identifying suspected
incidents of contamination or adulteration of--
``(i) food in violation of regulations promulgated under
section 416 of the Federal Food, Drug, and Cosmetic Act; and
``(ii) meat subject to detention under section 402 of the
Federal Meat Inspection Act (21 U.S.C. 672); and
``(iii) poultry products subject to detention under section
19 of the Poultry Products Inspection Act (21 U.S.C. 467a);
and
``(B) train personnel of the Department of Transportation
in the appropriate use of the procedures.
``(2) Applicability.--The procedures established under
paragraph (1) of this subsection shall apply, at a minimum,
to Department of Transportation personnel that perform
commercial motor vehicle or railroad safety inspections.
``(b) Notification of Secretary of Health and Human
Services or Secretary of Agriculture.--The Secretary of
Transportation shall promptly notify the Secretary of Health
and Human Services or the Secretary of Agriculture, as
applicable, of any instances of potential food contamination
or adulteration of a food identified during transportation
safety inspections.
``(c) Use of State Employees.--The means by which the
Secretary of Transportation carries out subsection (b) of
this section may include inspections conducted by State
employees using funds authorized to be appropriated under
sections 31102 through 31104 of this title.''.

SEC. 4484. EFFECTIVE DATE.

This part takes effect on October 1, 2003.

Subtitle E--Recreational Boating Safety Programs

SEC. 4501. SHORT TITLE.

This title may be cited as the ``Sport Fishing and
Recreational Boating Safety Act''.

Part 1--Federal Aid in Sport Fish Restoration Act Amendments

SEC. 4521. AMENDMENT OF FEDERAL AID IN FISH RESTORATION ACT.

Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Act entitled ``An Act to provide that
the United States shall aid the States in fish restoration
and management projects, and for other purposes,'' approved
August 9, 1950 (64 Stat. 430; 16 U.S.C. 777 et seq.).

SEC. 4522. AUTHORIZATION OF APPROPRIATIONS.

Section 3 (16 U.S.C. 777b) is amended--
(1) by striking ``the succeeding fiscal year.'' in the
third sentence and inserting ``succeeding fiscal years.'';
and
(2) by striking ``in carrying on the research program of
the Fish and Wildlife Service in respect to fish of material
value for sport and recreation.'' and inserting ``to
supplement the 55.3 percent of each annual appropriation to
be apportioned among the States, as provided for in section
4(b) of this title.''.

SEC. 4523. DIVISION OF ANNUAL APPROPRIATIONS.

Section 4 (16 U.S.C. 777c) is amended--
(1) by striking subsections (a) through (d) and
redesignating subsections (e), (f), and (g) as subsections
(b), (c), and (d);
(2) by inserting before subsection (b), as redesignated,
the following:
``(a) In General.--For fiscal years 2004 through 2009, each
annual appropriation made in accordance with the provisions
of section 3 of this title shall be distributed as follows:
``(1) Coastal wetlands.--18 percent to the Secretary of the
Interior for distribution as provided in the Coastal Wetlands
Planning, Protection, and Restoration Act (16 U.S.C. 3951 et
seq.).
``(2) Boating safety.--18 percent to the Secretary of
Homeland Security for State recreational boating safety
programs under section 13106 of title 46, United States Code.
``(3) Clean vessel act.--1.9 percent to the Secretary of
the Interior for qualified projects under section 5604(c) of
the Clean Vessel Act of 1992 (33 U.S.C. 1322 note).
``(4) Boating infrastructure.--1.9 percent to the Secretary
of the Interior for obligation for qualified projects under
section 7404(d) of the Sportfishing and Boating Safety Act of
1998 (16 U.S.C. 777g-1(d)).
``(5) National outreach and communications.--1.9 percent to
the Secretary of the Interior for the National Outreach and
Communications Program under section 8(d) of this title. Such
amounts shall remain available for 3 fiscal years, after
which any portion thereof that is unobligated by the
Secretary for that program may be expended by the Secretary
under subsection (b) of this section.
``(6) Set-aside for expenses for administration of this
chapter.--
``(A) In general.--2.1 percent to the Secretary of the
Interior for expenses for administration incurred in
implementation of this title, in accordance with this
section, section 9, and section 14 of this title.
``(B) Apportionment of unobligated funds.--If any portion
of the amount made available to the Secretary under
subparagraph (A) remains unexpended and unobligated at the
end of a fiscal year, that portion shall be apportioned among
the States, on the same basis and in the same manner as other
amounts made available under this title are apportioned among
the States under subsection (b) of this section, within 60
days after the end of that fiscal year. Any amount
apportioned among the States under this subparagraph shall be
in addition to any amounts otherwise available for
apportionment among the States under subsection (b) for the
fiscal year.'';
(3) by striking ``of the Interior, after the distribution,
transfer, use, and deduction under subsections (a), (b), (c),
and (d), respectively, and after deducting amounts used for
grants under section 14, shall apportion the remainder'' in
subsection (b), as redesignated, and inserting ``shall
apportion 55.3 percent'';
(4) by striking ``per centum'' each place it appears in
subsection (b), as redesignated, and inserting ``percent'';
(5) by striking ``subsections (a), (b)(3)(A), (b)(3)(B),
and (c)'' in paragraph (1) of subsection (d), as
redesignated, and inserting ``paragraphs (1), (3), (4), and
(5) of subsection (a)''; and
(6) by adding at the end the following:
``(e) Transfer of Certain Funds.--Amounts available under
paragraphs (3) and (4) of subsection (a) that are unobligated
by the Secretary after 3 fiscal years shall be transferred to
the Secretary of Homeland Security and shall be expended for
State recreational boating safety programs under section
13106(a) of title 46, United States Code.''.

SEC. 4524. MAINTENANCE OF PROJECTS.

Section 8 (16 U.S.C. 777g) is amended--
(1) by striking ``in carrying out the research program of
the Fish and Wildlife Service in respect to fish of material
value for sport or recreation.'' in subsection (b)(2)

[[Page S915]]

and inserting ``to supplement the 55.3 percent of each annual
appropriation to be apportioned among the States under
section 4(b) of this title.''; and
(2) by striking ``subsection (c) or (d) of section 4'' in
subsection (d)(3) and inserting ``paragraph (5) or (6) of
section 4(a)''.

SEC. 4525. BOATING INFRASTRUCTURE.

Section 7404(d)(1) of the Sportfishing and Boating Safety
Act of 1998 (16 U.S.C. 777g-1(d)(1)) is amended by striking
``section 4(b)(3)(B)'' and inserting ``section 4(a)(4)''.

SEC. 4526. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF
AMOUNTS FOR EXPENSES FOR ADMINISTRATION.

Section 9 (16 U.S.C. 777h) is amended--
(1) by striking ``section 4(d)(1)'' in subsection (a) and
inserting ``section 4(a)(6)''; and
(2) by striking ``section 4(d)(1)'' in subsection (b)(1)
and inserting ``section 4(a)(6)''.

SEC. 4527. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO
RICO, THE DISTRICT OF COLUMBIA, GUAM, AMERICAN
SAMOA, THE COMMONWEALTH OF THE NORTHERN MARIANA
ISLANDS, AND THE VIRGIN ISLANDS.

Section 12 (16 U.S.C. 777k) is amended by striking ``in
carrying on the research program of the Fish and Wildlife
Service in respect to fish of material value for sport or
recreation.'' and inserting ``to supplement the 55.3 percent
of each annual appropriation to be apportioned among the
States under section 4(b) of this title.''.

SEC. 4528. MULTISTATE CONSERVATION GRANT PROGRAM.

Section 14 (16 U.S.C. 777m) is amended--
(1) by striking so much of subsection (a) as precedes
paragraph (2) and inserting the following:
``(a) In General.--
``(1) Amount for grants.--For each of fiscal years 2004
through 2009, 0.9 percent of each annual appropriation made
in accordance with the provisions of section 3 of this title
shall be distributed to the Secretary of the Interior for
making multistate conservation project grants in accordance
with this section.'';
(2) by striking ``section 4(e)'' each place it appears in
subsection (a)(2)(B) and inserting ``section 4(b)''; and
(3) by striking ``Of the balance of each annual
appropriation made under section 3 remaining after the
distribution and use under subsections (a), (b), and (c) of
section 4 for each fiscal year and after deducting amounts
used for grants under subsection (a)--'' in subsection (e)
and inserting ``Of amounts made available under section
4(a)(6) for each fiscal year--''.

Part 2--Clean Vessel Act Amendments

SEC. 4541. GRANT PROGRAM.

Section 5604(c)(2) of the Clean Vessel Act of 1992 (33
U.S.C. 1322 note) is amended--
(1) by striking subparagraph (A); and
(2) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.

Part 3--Recreational Boating Safety Program Amendments

SEC. 4561. STATE MATCHING FUNDS REQUIREMENT.

Section 13103(b) of title 46, United States Code, is
amended by striking ``one-half'' and inserting ``75
percent''.

SEC. 4562. AVAILABILITY OF ALLOCATIONS.

Section 13104(a) of title 46, United States Code, is
amended--
(1) by striking ``2 years'' in paragraph (1) and inserting
``3 years''; and
(2) by striking ``2-year'' in paragraph (2) and inserting
``3-year''.

SEC. 4563. AUTHORIZATION OF APPROPRIATIONS FOR STATE
RECREATIONAL BOATING SAFETY PROGRAMS.

Section 13106(c) of title 46, United States Code, is
amended--
(1) by striking ``Secretary of Transportation under
paragraphs (2) and (3) of section 4(b)'' and inserting
``Secretary under subsections (a)(2) and (e) of section 4'';
and
(2) by inserting ``a minimum of'' before ``$2,083,333''.

SEC. 4564. MAINTENANCE OF EFFORT FOR STATE RECREATIONAL
BOATING SAFETY PROGRAMS.

(a) In General.--Chapter 131 of title 46, United States
Code, is amended by inserting after section 13106 the
following:

``Sec. 13107. Maintenance of effort for State recreational
boating safety programs

``(a) In General.--The amount payable to a State for a
fiscal year from an allocation under section 13103 of this
chapter shall be reduced if the usual amounts expended by the
State for the State's recreational boating safety program, as
determined under section 13105 of this chapter, for the
previous fiscal year is less than the average of the total of
such expenditures for the 3 fiscal years immediately
preceding that previous fiscal year. The reduction shall be
proportionate, as a percentage, to the amount by which the
level of State expenditures for such previous fiscal year is
less than the average of the total of such expenditures for
the 3 fiscal years immediately preceding that previous fiscal
year.
``(b) Reduction of Threshhold.--If the total amount
available for allocation and distribution under this chapter
in a fiscal year for all participating State recreational
boating safety programs is less than such amount for the
preceding fiscal year, the level of State expenditures
required under subsection (a) of this section for the
preceding fiscal year shall be decreased proportionately.
``(c) Waiver.--
``(1) In general.--Upon the written request of a State, the
Secretary may waive the provisions of subsection (a) of this
section for 1 fiscal year if the Secretary determines that a
reduction in expenditures for the State's recreational
boating safety program is attributable to a non- selective
reduction in expenditures for the programs of all Executive
branch agencies of the State government, or for other reasons
if the State demonstrates to the Secretary's satisfaction
that such waiver is warranted.
``(2) 30-day decision.--The Secretary shall approve or deny
a request for a waiver not later than 30 days after the date
the request is received.''.
(b) Conforming Amendment.--The chapter analysis for chapter
131 of title 46, United States Code, is amended by inserting
after the item relating to section 13106 the following:

``13107. Maintenance of effort for State recreational boating safety
programs.''.

Part 4--MISCELLANEOUS

SEC. 4581. TECHNICAL CORRECTION TO HOMELAND SECURITY ACT.

Section 1511(e)(2) of the Homeland Security Act of 2002
(Pub. L. 107-296) is amended by striking ``and to any funds
provided to the Coast Guard from the Aquatic Resources Trust
Fund of the Highway Trust Fund for boating safety programs.''
and inserting ``and any funds provided to the Coast Guard
from the Highway Trust Fund and transferred into the Sport
Fish Restoration Account of the Aquatic Resources Trust Fund
for boating safety programs.''.

Subtitle F--Rail Transportation

Part 1--AMTRAK

SEC. 4601. AUTHORIZATION OF APPROPRIATIONS.

The text of section 24104 of title 49, United States Code,
is amended to read as follows:
``There are authorized to be appropriated to the Secretary
of Transportation $2,000,000,000 for each of fiscal years
2004, 2005, 2006, 2007, 2008, and 2009 for the benefit of
Amtrak for operating expenses.''.

SEC. 4602. ESTABLISHMENT OF CORPORATION.

There is established a nonprofit corporation, to be known
as the ``Rail Infrastructure Finance Corporation''. The Rail
Infrastructure Finance Corporation is not an agency or
establishment of the United States Government. The purpose of
the Corporation is to support rail transportation capital
projects through the issuance of rail capital infrastructure
bonds. The Corporation shall be subject to the provisions of
this title and, to the extent consistent with this section,
to the laws of the State of Delaware applicable to
corporations not for profit.

Part 2--Railroad Track Modernization

SEC. 4631. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC. 4632. CAPITAL GRANTS FOR RAILROAD TRACK.

(a) Authority.--Chapter 223 of title 49, United States
Code, is amended to read as follows:

``CHAPTER 223--CAPITAL GRANTS FOR RAILROAD TRACK

``Sec.
``22301. Capital grants for railroad track.

``Sec. 22301. Capital grants for railroad track

``(a) Establishment of Program.--
``(1) Establishment.--The Secretary of Transportation shall
establish a program of capital grants for the rehabilitation,
preservation, or improvement of railroad track (including
roadbed, bridges, and related track structures) of class II
and class III railroads. Such grants shall be for
rehabilitating, preserving, or improving track used primarily
for freight transportation to a standard ensuring that the
track can be operated safely and efficiently, including
grants for rehabilitating, preserving, or improving track to
handle 286,000 pound rail cars. Grants may be provided under
this chapter--
``(A) directly to the class II or class III railroad; or
``(B) with the concurrence of the class II or class III
railroad, to a State or local government.
``(2) State cooperation.--Class II and class III railroad
applicants for a grant under this chapter are encouraged to
utilize the expertise and assistance of State transportation
agencies in applying for and administering such grants. State
transportation agencies are encouraged to provide such
expertise and assistance to such railroads.
``(3) Regulations.--
``(A) In general.--The Secretary shall prescribe
regulations to carry out the program under this section.
``(B) Criteria.--In developing the regulations, the
Secretary shall establish criteria that--
``(i) condition the award of a grant to a railroad on
reasonable assurances by the railroad that the facilities to
be rehabilitated and improved will be economically and
efficiently utilized;
``(ii) ensure that the award of a grant is justified by
present and probable future demand for rail services by the
railroad to which the grant is to be awarded;
``(iii) ensure that consideration is given to projects that
are part of a State-sponsored rail plan; and

[[Page S916]]

``(iv) ensure that all such grants are awarded on a
competitive basis.
``(b) Maximum Federal Share.--The maximum Federal share for
carrying out a project under this section shall be 80 percent
of the project cost. The non-Federal share may be provided by
any non-Federal source in cash, equipment, or supplies. Other
in-kind contributions may be approved by the Secretary on a
case by case basis consistent with this chapter.
``(c) Project Eligibility.--For a project to be eligible
for assistance under this section the track must have been
operated or owned by a class II or class III railroad as of
the date of the enactment of the Railroad Track Modernization
Act of 2004.
``(d) Use of Funds.--Grants provided under this section
shall be used to implement track capital projects as soon as
possible. In no event shall grant funds be contractually
obligated for a project later than the end of the third
Federal fiscal year following the year in which the grant was
awarded. Any funds not so obligated by the end of such fiscal
year shall be returned to the Secretary for reallocation.
``(e) Additional Purpose.--In addition to making grants for
projects as provided in subsection (a), the Secretary may
also make grants to supplement direct loans or loan
guarantees made under title V of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)), for
projects described in the last sentence of section 502(d) of
such title. Grants made under this subsection may be used, in
whole or in part, for paying credit risk premiums, lowering
rates of interest, or providing for a holiday on principal
payments.
``(f) Employee Protection.--The Secretary shall require as
a condition of any grant made under this section that the
recipient railroad provide a fair arrangement at least as
protective of the interests of employees who are affected by
the project to be funded with the grant as the terms imposed
under section 11326(a), as in effect on the date of the
enactment of the Railroad Track Modernization Act of 2001.
``(g) Labor Standards.--
``(1) Prevailing wages.--The Secretary shall ensure that
laborers and mechanics employed by contractors and
subcontractors in construction work financed by a grant made
under this section will be paid wages not less than those
prevailing on similar construction in the locality, as
determined by the Secretary of Labor under the Act of March
3, 1931 (known as the Davis-Bacon Act; 40 U.S.C. 276a et
seq.). The Secretary shall make a grant under this section
only after being assured that required labor standards will
be maintained on the construction work.
``(2) Wage rates.--Wage rates in a collective bargaining
agreement negotiated under the Railway Labor Act (45 U.S.C.
151 et seq.) are deemed for purposes of this subsection to
comply with the Act of March 3, 1931 (known as the Davis-
Bacon Act; 40 U.S.C. 276a et seq.).''.
(b) Conforming Amendment.--The item relating to chapter 223
in the table of chapters of subtitle V of title 49, United
States Code, is amended to read as follows:

``223. CAPITAL GRANTS FOR RAILROAD TRACK.......................22301''.

SEC. 4633. REGULATIONS.

(a) Regulations.--The Secretary of Transporation shall
prescribe under subsection (a)(3) of section 22301 of title
49, United States Code (as added by section 4601), interim
and final regulations for the administration of the grant
program under such section as follows:
(1) Interim regulations.--The Secretary shall prescribe the
interim regulations to implement the program not later than
December 31, 2003.
(2) Final regulations.--The Secretary shall prescribe the
final regulations not later than October 1, 2004.
(b) Inapplicability of Rulemaking Procedure to Interim
Regulations.--Subchapter II of chapter 5 of title 5, United
States Code, shall not apply to the issuance of an interim
regulation or to any amendment of such an interim regulation.
(c) Criteria.--The requirement for the establishment of
criteria under subparagraph (B) of section 22301(a)(3) of
title 49, United States Code, applies to the interim
regulations as well as to the final regulations.

SEC. 4634. STUDY OF GRANT-FUNDED PROJECTS.

(a) Requirement for Study.--The Secretary of Transportation
shall conduct a study of the projects carried out with grant
assistance under section 22301 of title 49, United States
Code (as added by section 4601), to determine the public
interest benefits associated with the light density railroad
networks in the States and their contribution to a multimodal
transportation system.
(b) Report.--Not later than March 31, 2004, the Secretary
shall submit to Congress a report on the results of the study
under subsection (a). The report shall include any
recommendations that the Secretary considers appropriate
regarding the eligibility of light density rail networks for
Federal infrastructure financing.

SEC. 4635. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary of
Transportation $350,000,000 for each of fiscal years 2004,
2005, and 2006 for carrying out section 22301 of title 49,
United States Code (as added by section 4601).

Part 3--Other Rail Transportation-related Provisions

SEC. 4661. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS.

(a) Establishment of Program.--
(1) Program requirements.--Chapter 201 of title 49, United
States Code, is amended by adding at the end of subchapter II
the following:

``Sec. 20154. Capital grants for rail line relocation
projects

``(a) Establishment of Program.--The Secretary of
Transportation shall carry out a grant program to provide
financial assistance for local rail line relocation projects.
``(b) Eligibility.--A State is eligible for a grant under
this section for any project for the improvement of the route
or structure of a rail line passing through a municipality of
the State that--
``(1) is carried out for the purpose of mitigating the
adverse effects of rail traffic on safety, motor vehicle
traffic flow, or economic development in the municipality;
``(2) involves a lateral or vertical relocation of any
portion of the rail line within the municipality to avoid a
closing of a grade crossing or the construction of a road
underpass or overpass; and
``(3) meets the costs-benefits requirement set forth in
subsection (c).
``(c) Costs-Benefits Requirement.--A grant may be awarded
under this section for a project for the relocation of a rail
line only if the benefits of the project for the period equal
to the estimated economic life of the relocated rail line
exceed the costs of the project for that period, as
determined by the Secretary considering the following
factors:
``(1) The effects of the rail line and the rail traffic on
motor vehicle and pedestrian traffic, safety, and area
commerce if the rail line were not so relocated.
``(2) The effects of the rail line, relocated as proposed,
on motor vehicle and pedestrian traffic, safety, and area
commerce.
``(3) The effects of the rail line, relocated as proposed,
on the freight and passenger rail operations on the rail
line.
``(d) Considerations for Approval of Grant Applications.--
In addition to considering the relationship of benefits to
costs in determining whether to award a grant to an eligible
State under this section, the Secretary shall consider the
following factors:
``(1) The capability of the State to fund the rail line
relocation project without Federal grant funding.
``(2) The requirement and limitation relating to allocation
of grant funds provided in subsection (e).
``(3) Equitable treatment of the various regions of the
United States.
``(e) Allocation Requirements.--
``(1) Grants not greater than $20,000,000.--At least 50
percent of all grant funds awarded under this section out of
funds appropriated for a fiscal year shall be provided as
grant awards of not more than $20,000,000 each.
``(2) Limitation per project.--Not more than 25 percent of
the total amount available for carrying out this section for
a fiscal year may be provided for any 1 project in that
fiscal year.
``(f) Federal Share.--The total amount of a grant awarded
under this section for a rail line relocation project shall
be 90 percent of the shared costs of the project, as
determined under subsection (g)(4).
``(g) State Share.--
``(1) Percentage.--A State shall pay 10 percent of the
shared costs of a project that is funded in part by a grant
awarded under this section.
``(2) Forms of contributions.--The share required by
paragraph (1) may be paid in cash or in kind.
``(3) In-kind contributions.--The in-kind contributions
that are permitted to be counted under paragraph (2) for a
project for a State are as follows:
``(A) A contribution of real property or tangible personal
property (whether provided by the State or a person for the
State).
``(B) A contribution of the services of employees of the
State, calculated on the basis of costs incurred by the State
for the pay and benefits of the employees, but excluding
overhead and general administrative costs.
``(C) A payment of any costs that were incurred for the
project before the filing of an application for a grant for
the project under this section, and any in-kind contributions
that were made for the project before the filing of the
application, if and to the extent that the costs were
incurred or in-kind contributions were made, as the case may
be, to comply with a provision of a statute required to be
satisfied in order to carry out the project.
``(4) Costs not shared.--
``(A) In general.--For the purposes of subsection (f) and
this subsection, the shared costs of a project in a
municipality do not include any cost that is defrayed with
any funds or in-kind contribution that a source other than
the municipality makes available for the use of the
municipality without imposing at least 1 of the following
conditions:
``(i) The condition that the municipality use the funds or
contribution only for the project.
``(ii) The condition that the availability of the funds or
contribution to the municipality is contingent on the
execution of the project.
``(B) Determinations of the secretary.--The Secretary shall
determine the amount of the costs, if any, that are not
shared costs under this paragraph and the total amount of the
shared costs. A determination of the Secretary shall be
final.

[[Page S917]]

``(h) Multistate Agreements To Combine Amounts.--Two or
more States (not including political subdivisions of States)
may, pursuant to an agreement entered into by the States,
combine any part of the amounts provided through grants for a
project under this section if--
``(1) the project will benefit each of the States entering
into the agreement; and
``(2) the agreement is not a violation of a law of any such
State.
``(i) Regulations.--The Secretary shall prescribe
regulations for carrying out this section.
``(j) State Defined.--In this section, the term `State'
includes, except as otherwise specifically provided, a
political subdivision of a State.
``(k) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary for use in
carrying out this section $350,000,000 for each of the fiscal
years 2004 through 2008.''.
(2) Clerical amendment.--The chapter analysis for such
chapter is amended by adding at the end the following:

``20154. Capital grants for rail line relocation projects.''.

(b) Regulations.--
(1) Interim regulations.--Not later than October 1, 2003,
the Secretary of Transportation shall issue temporary
regulations to implement the grant program under section
20154 of title 49, United States Code, as added by subsection
(a). Subchapter II of chapter 5 of title 5, United States
Code, shall not apply to the issuance of a temporary
regulation under this subsection or of any amendment of such
a temporary regulation.
(2) Final regulations.--Not later than April 1, 2004, the
Secretary shall issue final regulations implementing the
program.

SEC. 4662. FEDERAL BONDS FOR TRANSPORTATION INFRASTRUCTURE.

(a) Use of Bond Proceeds.--The proceeds from the sale of
any bonds authorized, issued, or guaranteed by the Federal
Government that are available to fund passenger rail projects
pursuant to any Federal law (enacted before, on, or after the
date of the enactment of this Act) may be used to fund a
qualified project if the Secretary of Transportation
determines that the qualified project is a more cost-
effective alternative for efficiently maximizing mobility of
individuals and goods than a passenger rail project.
(b) Compliance of Beneficiaries With Certain Standards.--A
recipient of proceeds of a grant, loan, Federal tax-credit
bonds, or any other form of financial assistance provided
under this title shall comply with the standards described in
section 24312 of title 49, United States Code, as in effect
on June 25, 2003, with respect to any qualified project in
the same manner that the National Passenger Railroad
Corporation is required to comply with such standards for
construction work financed under an agreement entered into
under section 24308(a) of such title.
(c) Qualified Project Defined.--In this section, the term
``qualified project'' means any transportation infrastructure
project of any governmental unit or other person that is
proposed by a State, including a highway project, a transit
system project, a railroad project, an airport project, a
port project, and an inland waterways project.

TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

SEC. 5000. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This title may be cited as the ``Highway
Reauthorization and Excise Tax Simplification Act of 2004''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.

Subtitle A--Trust Fund Reauthorization

SEC. 5001. EXTENSION OF HIGHWAY TRUST FUND AND AQUATIC
RESOURCES TRUST FUND EXPENDITURE AUTHORITY AND
RELATED TAXES.

(a) Highway Trust Fund Expenditure Authority.--
(1) Highway account.--Paragraph (1) of section 9503(c)
(relating to transfers from Highway Trust Fund for certain
repayments and credits) is amended--
(A) in the matter before subparagraph (A), by striking
``March 1, 2004'' and inserting ``October 1, 2009'',
(B) by striking ``or'' at the end of subparagraph (E),
(C) by striking the period at the end of subparagraph (F)
and inserting ``, or'',
(D) by inserting after subparagraph (F), the following new
subparagraph:
``(G) authorized to be paid out of the Highway Trust Fund
under the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004.'', and
(E) in the matter after subparagraph (G), as added by
subparagraph (D), by striking ``Surface Transportation
Extension Act of 2003'' and inserting ``Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004''.
(2) Mass transit account.--Paragraph (3) of section 9503(e)
(relating to establishment of Mass Transit Account) is
amended--
(A) in the matter before subparagraph (A), by striking
``March 1, 2004'' and inserting ``October 1, 2009'',
(B) by striking ``or'' at the end of subparagraph (C),
(C) by striking the period at the end of subparagraph (D)
and inserting ``, or'',
(D) by inserting after subparagraph (D), the following new
subparagraph:
``(E) the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004,'', and
(E) in the matter after subparagraph (E), as added by
subparagraph (D), by striking ``Surface Transportation
Extension Act of 2003'' and inserting ``Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004''.
(3) Exception to limitation on transfers.--Subparagraph (B)
of section 9503(b)(5) (relating to limitation on transfers to
Highway Trust Fund) is amended by striking ``March 1, 2004''
and inserting ``October 1, 2009''.
(b) Aquatic Resources Trust Fund Expenditure Authority.--
(1) Sport fish restoration account.--Paragraph (2) of
section 9504(b) (relating to Sport Fish Restoration Account)
is amended by striking ``Surface Transportation Extension Act
of 2003'' each place it appears and inserting ``Safe,
Accountable, Flexible, and Efficient Transportation Equity
Act of 2004''.
(2) Boat safety account.--Section 9504(c) (relating to
expenditures from Boat Safety Account) is amended--
(A) by striking ``March 1, 2004'' and inserting ``October
1, 2009'', and
(B) by striking ``Surface Transportation Extension Act of
2003'' and inserting ``Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004''.
(3) Exception to limitation on transfers.--Paragraph (2) of
section 9504(d) (relating to limitation on transfers to
Aquatic Resources Trust Fund) is amended by striking ``March
1, 2004'' and inserting ``October 1, 2009''.
(4) Technical correction.--The last sentence of paragraph
(2) of section 9504(b) is amended by striking ``subparagraph
(B)'', and inserting ``subparagraph (C)''.
(c) Extension of Taxes.--
(1) In general.--The following provisions are each amended
by striking ``2005'' each place it appears and inserting
``2009'':
(A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax
on certain buses).
(B) Section 4041(a)(2)(B) (relating to rate of tax on
special motor fuels).
(C) Section 4041(m)(1)(A) (relating to certain alcohol
fuels produced from natural gas).
(D) Section 4051(c) (relating to termination of tax on
heavy trucks and trailers).
(E) Section 4071(d) (relating to termination of tax on
tires).
(F) Section 4081(d)(1) (relating to termination of tax on
gasoline, diesel fuel, and kerosene).
(G) Section 4481(e) (relating to period tax in effect).
(H) Section 4482(c)(4) (relating to taxable period).
(I) Section 4482(d) (relating to special rule for taxable
period in which termination date occurs).
(2) Floor stocks refunds.--Section 6412(a)(1) (relating to
floor stocks refunds) is amended--
(A) by striking ``2005'' each place it appears and
inserting ``2009'', and
(B) by striking ``2006'' each place it appears and
inserting ``2010''.
(d) Extension of Certain Exemptions.--The following
provisions are each amended by striking ``2005'' and
inserting ``2009'':
(1) Section 4221(a) (relating to certain tax-free sales).
(2) Section 4483(g) (relating to termination of exemptions
for highway use tax).
(e) Extension of Deposits Into, and Certain Transfers From,
Trust Fund.--
(1) In general.--Subsections (b), (c)(2), (c)(3),
(c)(4)(A)(i), and (c)(5)(A) of section 9503 (relating to the
Highway Trust Fund) are amended--
(A) by striking ``2005'' each place it appears and
inserting ``2009'', and
(B) by striking ``2006'' each place it appears and
inserting ``2010''.
(2) Conforming amendments to land and water conservation
fund.--Section 201(b) of the Land and Water Conservation Fund
Act of 1965 (16 U.S.C. 460l-11(b)) is amended--
(A) by striking ``2003'' and inserting ``2007'', and
(B) by striking ``2004'' each place it appears and
inserting ``2008''.
(f) Extension of Tax Benefits for Qualified Methanol and
Ethanol Fuel Produced From Coal.--Section 4041(b)(2)
(relating to qualified methanol and ethanol fuel) is
amended--
(1) by striking ``2007'' in subparagraph (C)(ii) and
inserting ``2010'', and
(2) by striking ``October 1, 2007'' in subparagraph (D) and
inserting ``January 1, 2011''.
(g) Prohibition on Use of Highway Account for Rail
Projects.--Section 9503(c) (relating to transfers from
Highway Trust Fund for certain repayments and credits) is
amended by adding at the end the following new paragraph:
``(6) Prohibition on use of highway account for rail
projects.--With respect to projects beginning after the date
of the enactment of this paragraph, no amount shall be
available from the Highway Account (as defined in subsection
(e)(5)(B)) for any rail project.''.
(h) Highway Trust Fund Expenditures for Highway Use Tax
Evasion Projects.--From amounts available in the Highway

[[Page S918]]

Trust Fund, there is authorized to be expended such sums as
are necessary for highway use tax evasion projects.
(i) Effective Date.--The amendments made by and provisions
of this section shall take effect on the date of the
enactment of this Act.

SEC. 5002. FULL ACCOUNTING OF FUNDS RECEIVED BY THE HIGHWAY
TRUST FUND.

(a) In General.--Section 9503(c) (relating to transfers
from Highway Trust Fund for certain repayments and credits),
as amended by section 5001 of this Act, is amended by
striking paragraph (2) and redesignating paragraphs (3), (4),
(5), and (6) as paragraphs (2), (3), (4), and (5),
respectively.
(b) Interest on Unexpended Balances Credited to Trust
Fund.--Section 9503 (relating to the Highway Trust Fund) is
amended by striking subsection (f).
(c) Conforming Amendments.--
(1) Section 9503(b)(4)(D) is amended by striking
``paragraph (4)(D) or (5)(B)'' and inserting ``paragraph
(3)(D) or (4)(B)''.
(2) Paragraph (2) of section 9503(c) (as redesignated by
subsection (a)) is amended by adding at the end the following
new sentence: ``The amounts payable from the Highway Trust
Fund under this paragraph shall be determined by taking into
account only the portion of the taxes which are deposited
into the Highway Trust Fund.''.
(3) Section 9504(a)(2) is amended by striking ``section
9503(c)(4), section 9503(c)(5)'' and inserting ``section
9503(c)(3), section 9503(c)(4)''.
(4) Paragraph (2) of section 9504(b), as amended by section
5001 of this Act, is amended by striking ``section
9503(c)(5)'' and inserting ``section 9503(c)(4)''.
(5) Section 9504(e) is amended by striking ``section
9503(c)(4)'' and inserting ``section 9503(c)(3)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to amounts paid
for which no transfer from the Highway Trust Fund has been
made before April 1, 2004.
(2) Interest credited.--The amendment made by subsection
(b) shall take effect on the date of the enactment of this
Act.

SEC. 5003. MODIFICATION OF ADJUSTMENTS OF APPORTIONMENTS.

(a) In General.--Section 9503(d) (relating to adjustments
for apportionments) is amended--
(1) by striking ``24-month'' in paragraph (1)(B) and
inserting ``48-month'', and
(2) by striking ``2 years''' in the heading for paragraph
(3) and inserting ``4 years'''.
(b) Measurement of Net Highway Receipts.--Section 9503(d)
is amended by redesignating paragraph (6) as paragraph (7)
and by inserting after paragraph (5) the following new
paragraph:
``(6) Measurement of net highway receipts.--For purposes of
making any estimate under paragraph (1) of net highway
receipts for periods ending after the date specified in
subsection (b)(1), the Secretary shall treat--
``(A) each expiring provision of subsection (b) which is
related to appropriations or transfers to the Highway Trust
Fund to have been extended through the end of the 48-month
period referred to in paragraph (1)(B), and
``(B) with respect to each tax imposed under the sections
referred to in subsection (b)(1), the rate of such tax during
the 48-month period referred to in paragraph (1)(B) to be the
same as the rate of such tax as in effect on the date of such
estimate.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

Subtitle B--Volumetric Ethanol Excise Tax Credit

SEC. 5101. SHORT TITLE.

This subtitle may be cited as the ``Volumetric Ethanol
Excise Tax Credit (VEETC) Act of 2004''.

SEC. 5102. ALCOHOL AND BIODIESEL EXCISE TAX CREDIT AND
EXTENSION OF ALCOHOL FUELS INCOME TAX CREDIT.

(a) In General.--Subchapter B of chapter 65 (relating to
rules of special application) is amended by inserting after
section 6425 the following new section:

``SEC. 6426. CREDIT FOR ALCOHOL FUEL AND BIODIESEL MIXTURES.

``(a) Allowance of Credits.--There shall be allowed as a
credit against the tax imposed by section 4081 an amount
equal to the sum of--
``(1) the alcohol fuel mixture credit, plus
``(2) the biodiesel mixture credit.
``(b) Alcohol Fuel Mixture Credit.--
``(1) In general.--For purposes of this section, the
alcohol fuel mixture credit is the product of the applicable
amount and the number of gallons of alcohol used by the
taxpayer in producing any alcohol fuel mixture for sale or
use in a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in subparagraph (B),
the applicable amount is 52 cents (51 cents in the case of
any sale or use after 2004).
``(B) Mixtures not containing ethanol.--In the case of an
alcohol fuel mixture in which none of the alcohol consists of
ethanol, the applicable amount is 60 cents.
``(3) Alcohol fuel mixture.--For purposes of this
subsection, the term `alcohol fuel mixture' means a mixture
of alcohol and a taxable fuel which--
``(A) is sold by the taxpayer producing such mixture to any
person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing such
mixture, or
``(C) is removed from the refinery by a person producing
such mixture.
``(4) Other definitions.--For purposes of this subsection--
``(A) Alcohol.--The term `alcohol' includes methanol and
ethanol but does not include--
``(i) alcohol produced from petroleum, natural gas, or coal
(including peat), or
``(ii) alcohol with a proof of less than 190 (determined
without regard to any added denaturants).

Such term also includes an alcohol gallon equivalent of ethyl
tertiary butyl ether or other ethers produced from such
alcohol.
``(B) Taxable fuel.--The term `taxable fuel' has the
meaning given such term by section 4083(a)(1).
``(5) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2010.
``(c) Biodiesel Mixture Credit.--
``(1) In general.--For purposes of this section, the
biodiesel mixture credit is the product of the applicable
amount and the number of gallons of biodiesel used by the
taxpayer in producing any biodiesel mixture for sale or use
in a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in subparagraph (B),
the applicable amount is 50 cents.
``(B) Amount for agri-biodiesel.--In the case of any
biodiesel which is agri-biodiesel, the applicable amount is
$1.00.
``(3) Biodiesel mixture.--For purposes of this section, the
term `biodiesel mixture' means a mixture of biodiesel and
diesel fuel (as defined in section 4083(a)(3)), determined
without regard to any use of kerosene, which--
``(A) is sold by the taxpayer producing such mixture to any
person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing such
mixture, or
``(C) is removed from the refinery by a person producing
such mixture.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer of the biodiesel which
identifies the product produced and the percentage of
biodiesel and agri-biodiesel in the product.
``(5) Other definitions.--Any term used in this subsection
which is also used in section 40A shall have the meaning
given such term by section 40A.
``(6) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2006.
``(d) Mixture not used as a fuel, etc.--
``(1) Imposition of tax.--If--
``(A) any credit was determined under this section with
respect to alcohol or biodiesel used in the production of any
alcohol fuel mixture or biodiesel mixture, respectively, and
``(B) any person--
``(i) separates the alcohol or biodiesel from the mixture,
or
``(ii) without separation, uses the mixture other than as a
fuel,

then there is hereby imposed on such person a tax equal to
the product of the applicable amount and the number of
gallons of such alcohol or biodiesel.
``(2) Applicable laws.--All provisions of law, including
penalties, shall, insofar as applicable and not inconsistent
with this section, apply in respect of any tax imposed under
paragraph (1) as if such tax were imposed by section 4081 and
not by this section.
``(e) Coordination With Exemption From Excise Tax.--Rules
similar to the rules under section 40(c) shall apply for
purposes of this section.''.
(b) Registration Requirement.--Section 4101(a)(1) (relating
to registration), as amended by sections 5211 and 5242 of
this Act, is amended by inserting ``and every person
producing or importing biodiesel (as defined in section
40A(d)(1)) or alcohol (as defined in section 6426(b)(4)(A))''
after ``4081''.
(c) Additional Amendments.--
(1) Section 40(c) is amended by striking ``subsection
(b)(2), (k), or (m) of section 4041, section 4081(c), or
section 4091(c)'' and inserting ``section 4041(b)(2), section
6426, or section 6427(e)''.
(2) Paragraph (4) of section 40(d) is amended to read as
follows:
``(4) Volume of alcohol.--For purposes of determining under
subsection (a) the number of gallons of alcohol with respect
to which a credit is allowable under subsection (a), the
volume of alcohol shall include the volume of any denaturant
(including gasoline) which is added under any formulas
approved by the Secretary to the extent that such denaturants
do not exceed 5 percent of the volume of such alcohol
(including denaturants).''.
(3) Section 40(e)(1) is amended--
(A) by striking ``2007'' in subparagraph (A) and inserting
``2010'', and
(B) by striking ``2008'' in subparagraph (B) and inserting
``2011''.
(4) Section 40(h) is amended--
(A) by striking ``2007'' in paragraph (1) and inserting
``2010'', and
(B) by striking ``, 2006, or 2007'' in the table contained
in paragraph (2) and inserting ``through 2010''.
(5) Section 4041(b)(2)(B) is amended by striking ``a
substance other than petroleum or natural gas'' and inserting
``coal (including peat)''.

[[Page S919]]

(6) Section 4041 is amended by striking subsection (k).
(7) Section 4081 is amended by striking subsection (c).
(8) Paragraph (2) of section 4083(a) is amended to read as
follows:
``(2) Gasoline.--The term `gasoline'--
``(A) includes any gasoline blend, other than qualified
methanol or ethanol fuel (as defined in section
4041(b)(2)(B)), partially exempt methanol or ethanol fuel (as
defined in section 4041(m)(2)), or a denatured alcohol, and
``(B) includes, to the extent prescribed in regulations--
``(i) any gasoline blend stock, and
``(ii) any product commonly used as an additive in gasoline
(other than alcohol).

For purposes of subparagraph (B)(i), the term `gasoline blend
stock' means any petroleum product component of gasoline.''.
(9) Section 6427 is amended by inserting after subsection
(d) the following new subsection:
``(e) Alcohol or Biodiesel Used To Produce Alcohol Fuel and
Biodiesel Mixtures or Used as Fuels.--Except as provided in
subsection (k)--
``(1) Used to produce a mixture.--If any person produces a
mixture described in section 6426 in such person's trade or
business, the Secretary shall pay (without interest) to such
person an amount equal to the alcohol fuel mixture credit or
the biodiesel mixture credit with respect to such mixture.
``(2) Used as fuel.--If alcohol (as defined in section
40(d)(1)) or biodiesel (as defined in section 40A(d)(1)) or
agri-biodiesel (as defined in section 40A(d)(2)) which is not
in a mixture described in section 6426--
``(A) is used by any person as a fuel in a trade or
business, or
``(B) is sold by any person at retail to another person and
placed in the fuel tank of such person's vehicle,

the Secretary shall pay (without interest) to such person an
amount equal to the alcohol credit (as determined under
section 40(b)(2)) or the biodiesel credit (as determined
under section 40A(b)(2)) with respect to such fuel.
``(3) Coordination with other repayment provisions.--No
amount shall be payable under paragraph (1) with respect to
any mixture with respect to which an amount is allowed as a
credit under section 6426.
``(4) Termination.--This subsection shall not apply with
respect to--
``(A) any alcohol fuel mixture (as defined in section
6426(b)(3)) or alcohol (as so defined) sold or used after
December 31, 2010, and
``(B) any biodiesel mixture (as defined in section
6426(c)(3)) or biodiesel (as so defined) or agri-biodiesel
(as so defined) sold or used after December 31, 2006.''.
(10) Section 6427(i)(3) is amended--
(A) by striking ``subsection (f)'' both places it appears
in subparagraph (A) and inserting ``subsection (e)(1)'',
(B) by striking ``gasoline, diesel fuel, or kerosene used
to produce a qualified alcohol mixture (as defined in section
4081(c)(3))'' in subparagraph (A) and inserting ``a mixture
described in section 6426'',
(C) by adding at the end of subparagraph (A) the following
new flush sentence:
``In the case of an electronic claim, this subparagraph shall
be applied without regard to clause (i).'',
(D) by striking ``subsection (f)(1)'' in subparagraph (B)
and inserting ``subsection (e)(1)'',
(E) by striking ``20 days of the date of the filing of such
claim'' in subparagraph (B) and inserting ``45 days of the
date of the filing of such claim (20 days in the case of an
electronic claim)'', and
(F) by striking ``alcohol mixture'' in the heading and
inserting ``alcohol fuel and biodiesel mixture''.
(11) Section 9503(b)(1) is amended by adding at the end the
following new flush sentence:
``For purposes of this paragraph, taxes received under
sections 4041 and 4081 shall be determined without reduction
for credits under section 6426.''.
(12) Section 9503(b)(4), as amended by section 5101 of this
Act, is amended--
(A) by adding ``or'' at the end of subparagraph (C),
(B) by striking the comma at the end of subparagraph
(D)(iii) and inserting a period, and
(C) by striking subparagraphs (E) and (F).
(13) The table of sections for subchapter B of chapter 65
is amended by inserting after the item relating to section
6425 the following new item:

``Sec. 6426. Credit for alcohol fuel and biodiesel mixtures.''.

(14) Tariff schedule.--Headings 9901.00.50 and 9901.00.52
of the Harmonized Tariff Schedule of the United States (19
U.S.C. 3007) are each amended in the effective period column
by striking ``10/1/2007'' each place it appears and inserting
``1/1/2011''.
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to fuel sold or used after September 30, 2004.
(2) Registration requirement.--The amendment made by
subsection (b) shall take effect on April 1, 2005.
(3) Extension of alcohol fuels credit.--The amendments made
by paragraphs (3), (4), and (14) of subsection (c) shall take
effect on the date of the enactment of this Act.
(4) Repeal of general fund retention of certain alcohol
fuels taxes.--The amendments made by subsection (c)(12) shall
apply to fuel sold or used after September 30, 2003.
(e) Format for Filing.--The Secretary of the Treasury shall
describe the electronic format for filing claims described in
section 6427(i)(3)(B) of the Internal Revenue Code of 1986
(as amended by subsection (c)(10)(C)) not later than
September 30, 2004.

SEC. 5103. BIODIESEL INCOME TAX CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by inserting after section 40 the following new section:

``SEC. 40A. BIODIESEL USED AS FUEL.

``(a) General Rule.--For purposes of section 38, the
biodiesel fuels credit determined under this section for the
taxable year is an amount equal to the sum of--
``(1) the biodiesel mixture credit, plus
``(2) the biodiesel credit.
``(b) Definition of Biodiesel Mixture Credit and Biodiesel
Credit.--For purposes of this section--
``(1) Biodiesel mixture credit.--
``(A) In general.--The biodiesel mixture credit of any
taxpayer for any taxable year is 50 cents for each gallon of
biodiesel used by the taxpayer in the production of a
qualified biodiesel mixture.
``(B) Qualified biodiesel mixture.--The term `qualified
biodiesel mixture' means a mixture of biodiesel and diesel
fuel (as defined in section 4083(a)(3)), determined without
regard to any use of kerosene, which--
``(i) is sold by the taxpayer producing such mixture to any
person for use as a fuel, or
``(ii) is used as a fuel by the taxpayer producing such
mixture.
``(C) Sale or use must be in trade or business, etc.--
Biodiesel used in the production of a qualified biodiesel
mixture shall be taken into account--
``(i) only if the sale or use described in subparagraph (B)
is in a trade or business of the taxpayer, and
``(ii) for the taxable year in which such sale or use
occurs.
``(D) Casual off-farm production not eligible.--No credit
shall be allowed under this section with respect to any
casual off-farm production of a qualified biodiesel mixture.
``(2) Biodiesel credit.--
``(A) In general.--The biodiesel credit of any taxpayer for
any taxable year is 50 cents for each gallon of biodiesel
which is not in a mixture with diesel fuel and which during
the taxable year--
``(i) is used by the taxpayer as a fuel in a trade or
business, or
``(ii) is sold by the taxpayer at retail to a person and
placed in the fuel tank of such person's vehicle.
``(B) User credit not to apply to biodiesel sold at
retail.--No credit shall be allowed under subparagraph (A)(i)
with respect to any biodiesel which was sold in a retail sale
described in subparagraph (A)(ii).
``(3) Credit for agri-biodiesel.--In the case of any
biodiesel which is agri-biodiesel, paragraphs (1)(A) and
(2)(A) shall be applied by substituting `$1.00' for `50
cents'.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer or importer of the biodiesel
which identifies the product produced and the percentage of
biodiesel and agri-biodiesel in the product.
``(c) Coordination With Credit Against Excise Tax.--The
amount of the credit determined under this section with
respect to any biodiesel shall be properly reduced to take
into account any benefit provided with respect to such
biodiesel solely by reason of the application of section 6426
or 6427(e).
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Biodiesel.--The term `biodiesel' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter which meet--
``(A) the registration requirements for fuels and fuel
additives established by the Environmental Protection Agency
under section 211 of the Clean Air Act (42 U.S.C. 7545), and
``(B) the requirements of the American Society of Testing
and Materials D6751.
``(2) Agri-biodiesel.--The term `agri-biodiesel' means
biodiesel derived solely from virgin oils, including esters
derived from virgin vegetable oils from corn, soybeans,
sunflower seeds, cottonseeds, canola, crambe, rapeseeds,
safflowers, flaxseeds, rice bran, and mustard seeds, and from
animal fats.
``(3) Mixture or biodiesel not used as a fuel, etc.--
``(A) Mixtures.--If--
``(i) any credit was determined under this section with
respect to biodiesel used in the production of any qualified
biodiesel mixture, and
``(ii) any person--

``(I) separates the biodiesel from the mixture, or

``(II) without separation, uses the mixture other than as a
fuel,

then there is hereby imposed on such person a tax equal to
the product of the rate applicable under subsection (b)(1)(A)
and the number of gallons of such biodiesel in such mixture.
``(B) Biodiesel.--If--
``(i) any credit was determined under this section with
respect to the retail sale of any biodiesel, and
``(ii) any person mixes such biodiesel or uses such
biodiesel other than as a fuel,
then there is hereby imposed on such person a tax equal to
the product of the rate applicable under subsection (b)(2)(A)
and the number of gallons of such biodiesel.

[[Page S920]]

``(C) Applicable laws.--All provisions of law, including
penalties, shall, insofar as applicable and not inconsistent
with this section, apply in respect of any tax imposed under
subparagraph (A) or (B) as if such tax were imposed by
section 4081 and not by this chapter.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(e) Termination.--This section shall not apply to any
sale or use after December 31, 2006.''.
(b) Credit Treated as Part of General Business Credit.--
Section 38(b) (relating to current year business credit) is
amended by striking ``plus'' at the end of paragraph (14), by
striking the period at the end of paragraph (15) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(16) the biodiesel fuels credit determined under section
40A(a).''.
(c) Conforming Amendments.--
(1) Section 39(d) is amended by adding at the end the
following new paragraph:
``(11) No carryback of biodiesel fuels credit before
effective date.--No portion of the unused business credit for
any taxable year which is attributable to the biodiesel fuels
credit determined under section 40A may be carried back to a
taxable year ending on or before September 30, 2004.''.
(2)(A) Section 87 is amended to read as follows:

``SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS.

``Gross income includes--
``(1) the amount of the alcohol fuels credit determined
with respect to the taxpayer for the taxable year under
section 40(a), and
``(2) the biodiesel fuels credit determined with respect to
the taxpayer for the taxable year under section 40A(a).''.
(B) The item relating to section 87 in the table of
sections for part II of subchapter B of chapter 1 is amended
by striking ``fuel credit'' and inserting ``and biodiesel
fuels credits''.
(3) Section 196(c) is amended by striking ``and'' at the
end of paragraph (9), by striking the period at the end of
paragraph (10) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(11) the biodiesel fuels credit determined under section
40A(a).''.
(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding after the item
relating to section 40 the following new item:

``Sec. 40A. Biodiesel used as fuel.''.

(d) Effective Date.--The amendments made by this section
shall apply to fuel produced, and sold or used, after
September 30, 2004, in taxable years ending after such date.

Subtitle C--Fuel Fraud Prevention

SEC. 5200. SHORT TITLE.

This subtitle may be cited as the ``Fuel Fraud Prevention
Act of 2004''.

PART I--AVIATION JET FUEL

SEC. 5211. TAXATION OF AVIATION-GRADE KEROSENE.

(a) Rate of Tax.--
(1) In general.--Subparagraph (A) of section 4081(a)(2) is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following new clause:
``(iv) in the case of aviation-grade kerosene, 21.8 cents
per gallon.''.
(2) Commercial aviation.--Paragraph (2) of section 4081(a)
is amended by adding at the end the following new
subparagraph:
``(C) Taxes imposed on fuel used in commercial aviation.--
In the case of aviation-grade kerosene which is removed from
any refinery or terminal directly into the fuel tank of an
aircraft for use in commercial aviation, the rate of tax
under subparagraph (A)(iv) shall be 4.3 cents per gallon.''.
(3) Nontaxable uses.--
(A) In general.--Section 4082 is amended by redesignating
subsections (e) and (f) as subsections (f) and (g),
respectively, and by inserting after subsection (d) the
following new subsection:
``(e) Aviation-Grade Kerosene.--In the case of aviation-
grade kerosene which is exempt from the tax imposed by
section 4041(c) (other than by reason of a prior imposition
of tax) and which is removed from any refinery or terminal
directly into the fuel tank of an aircraft, the rate of tax
under section 4081(a)(2)(A)(iv) shall be zero.''.
(B) Conforming amendments.--
(i) Subsection (b) of section 4082 is amended by adding at
the end the following new flush sentence: ``The term
`nontaxable use' does not include the use of aviation-grade
kerosene in an aircraft.''.
(ii) Section 4082(d) is amended by striking paragraph (1)
and by redesignating paragraphs (2) and (3) as paragraphs (1)
and (2), respectively.
(4) Nonaircraft use of aviation-grade kerosene.--
(A) In general.--Subparagraph (B) of section 4041(a)(1) is
amended by adding at the end the following new sentence:
``This subparagraph shall not apply to aviation-grade
kerosene.''.
(B) Conforming amendment.--The heading for paragraph (1) of
section 4041(a) is amended by inserting ``and kerosene''
after ``diesel fuel''.
(b) Commercial Aviation.--Section 4083 is amended
redesignating subsections (b) and (c) as subsections (c) and
(d), respectively, and by inserting after subsection (a) the
following new subsection:
``(b) Commercial Aviation.--For purposes of this subpart,
the term `commercial aviation' means any use of an aircraft
in a business of transporting persons or property for
compensation or hire by air, unless properly allocable to any
transportation exempt from the taxes imposed by section 4261
and 4271 by reason of section 4281 or 4282 or by reason of
section 4261(h).''.
(c) Refunds.--
(1) In general.--Paragraph (4) of section 6427(l) is
amended to read as follows:
``(4) Refunds for aviation-grade kerosene.--
``(A) No refund of certain taxes on fuel used in commercial
aviation.--In the case of aviation-grade kerosene used in
commercial aviation (as defined in section 4083(b)) (other
than supplies for vessels or aircraft within the meaning of
section 4221(d)(3)), paragraph (1) shall not apply to so much
of the tax imposed by section 4081 as is attributable to--
``(i) the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section, and
``(ii) so much of the rate of tax specified in section
4081(a)(2)(A)(iv) as does not exceed 4.3 cents per gallon.
``(B) Payment to ultimate, registered vendor.--With respect
to aviation-grade kerosene, if the ultimate purchaser of such
kerosene waives (at such time and in such form and manner as
the Secretary shall prescribe) the right to payment under
paragraph (1) and assigns such right to the ultimate vendor,
then the Secretary shall pay the amount which would be paid
under paragraph (1) to such ultimate vendor, but only if such
ultimate vendor--
``(i) is registered under section 4101, and
``(ii) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).''.
(2) Time for filing claims.--Paragraph (4) of section
6427(i) is amended by striking ``subsection (l)(5)'' and
inserting ``paragraph (4)(B) or (5) of subsection (l)''.
(3) Conforming amendment.--Subparagraph (B) of section
6427(l)(2) is amended to read as follows:
``(B) in the case of aviation-grade kerosene--
``(i) any use which is exempt from the tax imposed by
section 4041(c) other than by reason of a prior imposition of
tax, or
``(ii) any use in commercial aviation (within the meaning
of section 4083(b)).''.
(d) Repeal of Prior Taxation of Aviation Fuel.--
(1) In general.--Part III of subchapter A of chapter 32 is
amended by striking subpart B and by redesignating subpart C
as subpart B.
(2) Conforming amendments.--
(A) Section 4041(c) is amended to read as follows:
``(c) Aviation-Grade Kerosene.--
``(1) In general.--There is hereby imposed a tax upon
aviation-grade kerosene--
``(A) sold by any person to an owner, lessee, or other
operator of an aircraft for use in such aircraft, or
``(B) used by any person in an aircraft unless there was a
taxable sale of such fuel under subparagraph (A).
``(2) Exemption for previously taxed fuel.--No tax shall be
imposed by this subsection on the sale or use of any
aviation-grade kerosene if tax was imposed on such liquid
under section 4081 and the tax thereon was not credited or
refunded.
``(3) Rate of tax.--The rate of tax imposed by this
subsection shall be the rate of tax specified in section
4081(a)(2)(A)(iv) which is in effect at the time of such sale
or use.''.
(B) Section 4041(d)(2) is amended by striking ``section
4091'' and inserting ``section 4081''.
(C) Section 4041 is amended by striking subsection (e).
(D) Section 4041 is amended by striking subsection (i).
(E) Section 4041(m)(1) is amended to read as follows:
``(1) In general.--In the case of the sale or use of any
partially exempt methanol or ethanol fuel, the rate of the
tax imposed by subsection (a)(2) shall be--
``(A) after September 30, 1997, and before September 30,
2009--
``(i) in the case of fuel none of the alcohol in which
consists of ethanol, 9.15 cents per gallon, and
``(ii) in any other case, 11.3 cents per gallon, and
``(B) after September 30, 2009--
``(i) in the case of fuel none of the alcohol in which
consists of ethanol, 2.15 cents per gallon, and
``(ii) in any other case, 4.3 cents per gallon.''.
(F) Sections 4101(a), 4103, 4221(a), and 6206 are each
amended by striking ``, 4081, or 4091'' and inserting ``or
4081''.
(G) Section 6416(b)(2) is amended by striking ``4091 or''.
(H) Section 6416(b)(3) is amended by striking ``or 4091''
each place it appears.
(I) Section 6416(d) is amended by striking ``or to the tax
imposed by section 4091 in the case of refunds described in
section 4091(d)''.
(J) Section 6427 is amended by striking subsection (f).
(K) Section 6427(j)(1) is amended by striking ``, 4081, and
4091'' and inserting ``and 4081''.
(L)(i) Section 6427(l)(1) is amended to read as follows:
``(1) In general.--Except as otherwise provided in this
subsection and in subsection (k), if any diesel fuel or
kerosene on which tax has been imposed by section 4041 or
4081

[[Page S921]]

is used by any person in a nontaxable use, the Secretary
shall pay (without interest) to the ultimate purchaser of
such fuel an amount equal to the aggregate amount of tax
imposed on such fuel under section 4041 or 4081, as the case
may be, reduced by any refund paid to the ultimate vendor
under paragraph (4)(B).''.
(ii) Paragraph (5)(B) of section 6427(l) is amended by
striking ``Paragraph (1)(A) shall not apply to kerosene'' and
inserting ``Paragraph (1) shall not apply to kerosene (other
than aviation-grade kerosene)''.
(M) Subparagraph (B) of section 6724(d)(1) is amended by
striking clause (xv) and by redesignating the succeeding
clauses accordingly.
(N) Paragraph (2) of section 6724(d) is amended by striking
subparagraph (W) and by redesignating the succeeding
subparagraphs accordingly.
(O) Paragraph (1) of section 9502(b) is amended by adding
``and'' at the end of subparagraph (B) and by striking
subparagraphs (C) and (D) and inserting the following new
subparagraph:
``(C) section 4081 with respect to aviation gasoline and
aviation-grade kerosene, and''.
(P) The last sentence of section 9502(b) is amended to read
as follows:

``There shall not be taken into account under paragraph (1)
so much of the taxes imposed by section 4081 as are
determined at the rate specified in section 4081(a)(2)(B).''.
(Q) Subsection (b) of section 9508 is amended by striking
paragraph (3) and by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(R) Section 9508(c)(2)(A) is amended by striking ``sections
4081 and 4091'' and inserting ``section 4081''.
(S) The table of subparts for part III of subchapter A of
chapter 32 is amended to read as follows:

``Subpart A. Motor and aviation fuels.
``Subpart B. Special provisions applicable to fuels tax.''.

(T) The heading for subpart A of part III of subchapter A
of chapter 32 is amended to read as follows:

``Subpart A--Motor and Aviation Fuels''.

(U) The heading for subpart B of part III of subchapter A
of chapter 32 is amended to read as follows:

``Subpart B--Special Provisions Applicable to Fuels Tax''.

(e) Effective Date.--The amendments made by this section
shall apply to aviation-grade kerosene removed, entered, or
sold after September 30, 2004.
(f) Floor Stocks Tax.--
(1) In general.--There is hereby imposed on aviation-grade
kerosene held on October 1, 2004, by any person a tax equal
to--
(A) the tax which would have been imposed before such date
on such kerosene had the amendments made by this section been
in effect at all times before such date, reduced by
(B) the tax imposed before such date under section 4091 of
the Internal Revenue Code of 1986, as in effect on the day
before the date of the enactment of this Act.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--The person holding the kerosene on
October 1, 2004, to which the tax imposed by paragraph (1)
applies shall be liable for such tax.
(B) Method and time for payment.--The tax imposed by
paragraph (1) shall be paid at such time and in such manner
as the Secretary of the Treasury shall prescribe, including
the nonapplication of such tax on de minimis amounts of
kerosene.
(3) Transfer of floor stock tax revenues to trust funds.--
For purposes of determining the amount transferred to any
trust fund, the tax imposed by this subsection shall be
treated as imposed by section 4081 of the Internal Revenue
Code of 1986--
(A) at the Leaking Underground Storage Tank Trust Fund
financing rate under such section to the extent of 0.1 cents
per gallon, and
(B) at the rate under section 4081(a)(2)(A)(iv) to the
extent of the remainder.
(4) Held by a person.--For purposes of this section,
kerosene shall be considered as held by a person if title
thereto has passed to such person (whether or not delivery to
the person has been made).
(5) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the tax
imposed by section 4081 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply with respect to the floor stock tax imposed
by paragraph (1) to the same extent as if such tax were
imposed by such section.

SEC. 5212. TRANSFER OF CERTAIN AMOUNTS FROM THE AIRPORT AND
AIRWAY TRUST FUND TO THE HIGHWAY TRUST FUND TO
REFLECT HIGHWAY USE OF JET FUEL.

(a) In General.--Section 9502(d) is amended by adding at
the end the following new paragraph:
``(7) Transfers from the trust fund to the highway trust
fund to reflect highway use of jet fuel.--
``(A) In general.--The Secretary shall pay from the Airport
and Airway Trust Fund into the Highway Trust Fund--
``(i) $395,000,000 in fiscal year 2005,
``(ii) $425,000,000 in fiscal year 2006,
``(iii) $429,000,000 in fiscal year 2007,
``(iv) $432,000,000 in fiscal year 2008, and
``(v) $435,000,000 in fiscal year 2009.
``(B) Amounts transferred to mass transit account.--The
Secretary shall transfer 11 percent of the amounts paid into
the Highway Trust Fund under subparagraph (A) to the Mass
Transit Account established under section 9503(e).''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 9503 is amended--
(A) by striking ``appropriated or credited'' and inserting
``paid, appropriated, or credited'', and
(B) by striking ``or section 9602(b)'' and inserting ``,
section 9502(d)(7), or section 9602(b)''.
(2) Subsection (e)(1) of section 9503 is amended by
striking ``or section 9602(b)'' and inserting ``, section
9502(d)(7), or section 9602(b)''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

PART II--DYED FUEL

SEC. 5221. DYE INJECTION EQUIPMENT.

(a) In General.--Section 4082(a)(2) (relating to exemptions
for diesel fuel and kerosene) is amended by inserting ``by
mechanical injection'' after ``indelibly dyed''.
(b) Dye Injector Security.--Not later than June 30, 2004,
the Secretary of the Treasury shall issue regulations
regarding mechanical dye injection systems described in the
amendment made by subsection (a), and such regulations shall
include standards for making such systems tamper resistant.
(c) Penalty for Tampering With or Failing To Maintain
Security Requirements for Mechanical Dye Injection Systems.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties) is amended by adding after
section 6715 the following new section:

``SEC. 6715A. TAMPERING WITH OR FAILING TO MAINTAIN SECURITY
REQUIREMENTS FOR MECHANICAL DYE INJECTION
SYSTEMS.

``(a) Imposition of Penalty--
``(1) Tampering.--If any person tampers with a mechanical
dye injection system used to indelibly dye fuel for purposes
of section 4082, then such person shall pay a penalty in
addition to the tax (if any).
``(2) Failure to maintain security requirements.--If any
operator of a mechanical dye injection system used to
indelibly dye fuel for purposes of section 4082 fails to
maintain the security standards for such system as
established by the Secretary, then such operator shall pay a
penalty.
``(b) Amount of Penalty.--The amount of the penalty under
subsection (a) shall be--
``(1) for each violation described in paragraph (1), the
greater of--
``(A) $25,000, or
``(B) $10 for each gallon of fuel involved, and
``(2) for each--
``(A) failure to maintain security standards described in
paragraph (2), $1,000, and
``(B) failure to correct a violation described in paragraph
(2), $1,000 per day for each day after which such violation
was discovered or such person should have reasonably known of
such violation.
``(c) Joint and Several Liability.--
``(1) In general.--If a penalty is imposed under this
section on any business entity, each officer, employee, or
agent of such entity or other contracting party who willfully
participated in any act giving rise to such penalty shall be
jointly and severally liable with such entity for such
penalty.
``(2) Affiliated groups.--If a business entity described in
paragraph (1) is part of an affiliated group (as defined in
section 1504(a)), the parent corporation of such entity shall
be jointly and severally liable with such entity for the
penalty imposed under this section.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by adding after the
item related to section 6715 the following new item:

``Sec. 6715A. Tampering with or failing to maintain security
requirements for mechanical dye injection systems.''.

(d) Effective Date.--The amendments made by subsections (a)
and (c) shall take effect 180 days after the date on which
the Secretary issues the regulations described in subsection
(b).

SEC. 5222. ELIMINATION OF ADMINISTRATIVE REVIEW FOR TAXABLE
USE OF DYED FUEL.

(a) In General.--Section 6715 is amended by inserting at
the end the following new subsection:
``(e) No Administrative Appeal for Third and Subsequent
Violations.--In the case of any person who is found to be
subject to the penalty under this section after a chemical
analysis of such fuel and who has been penalized under this
section at least twice after the date of the enactment of
this subsection, no administrative appeal or review shall be
allowed with respect to such finding except in the case of a
claim regarding--
``(1) fraud or mistake in the chemical analysis, or
``(2) mathematical calculation of the amount of the
penalty.''.
(b) Effective Date.--The amendment made by this section
shall apply to penalties assessed after the date of the
enactment of this Act.

SEC. 5223. PENALTY ON UNTAXED CHEMICALLY ALTERED DYED FUEL
MIXTURES.

(a) In General.--Section 6715(a) (relating to dyed fuel
sold for use or used in taxable

[[Page S922]]

use, etc.) is amended by striking ``or'' in paragraph (2), by
inserting ``or'' at the end of paragraph (3), and by
inserting after paragraph (3) the following new paragraph:
``(4) any person who has knowledge that a dyed fuel which
has been altered as described in paragraph (3) sells or holds
for sale such fuel for any use which the person knows or has
reason to know is not a nontaxable use of such fuel,''.
(b) Conforming Amendment.--Section 6715(a)(3) is amended by
striking ``alters, or attempts to alter,'' and inserting
``alters, chemically or otherwise, or attempts to so
alter,''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5224. TERMINATION OF DYED DIESEL USE BY INTERCITY BUSES.

(a) In General.--Paragraph (3) of section 4082(b) (relating
to nontaxable use) is amended to read as follows:
``(3) any use described in section
4041(a)(1)(C)(iii)(II).''.
(b) Ultimate Vendor Refund.--Subsection (b) of section 6427
is amended by adding at the end the following new paragraph:
``(4) Refunds for use of diesel fuel in certain intercity
buses.--
``(A) In general.--With respect to any fuel to which
paragraph (2)(A) applies, if the ultimate purchaser of such
fuel waives (at such time and in such form and manner as the
Secretary shall prescribe) the right to payment under
paragraph (1) and assigns such right to the ultimate vendor,
then the Secretary shall pay the amount which would be paid
under paragraph (1) to such ultimate vendor, but only if such
ultimate vendor--
``(i) is registered under section 4101, and
``(ii) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).
``(B) Credit cards.--For purposes of this paragraph, if the
sale of such fuel is made by means of a credit card, the
person extending credit to the ultimate purchaser shall be
deemed to be the ultimate vendor.''.
(c) Payment of Refunds.--Subparagraph (A) of section
6427(i)(4), as amended by section 5211 of this Act, is
amended by inserting ``subsections (b)(4) and'' after ``filed
under''.
(b) Effective Date.--The amendments made by this section
shall apply to fuel sold after September 30, 2004.

PART III--MODIFICATION OF INSPECTION OF RECORDS PROVISIONS

SEC. 5231. AUTHORITY TO INSPECT ON-SITE RECORDS.

(a) In General.--Section 4083(d)(1)(A) (relating to
administrative authority), as amended by section 5211 of this
Act, is amended by striking ``and'' at the end of clause (i)
and by inserting after clause (ii) the following new clause:
``(iii) inspecting any books and records and any shipping
papers pertaining to such fuel, and''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5232. ASSESSABLE PENALTY FOR REFUSAL OF ENTRY.

(a) In General.--Part I of subchapter B of chapter 68
(relating to assessable penalties), as amended by section
5221 of this Act, is amended by adding at the end the
following new section:

``SEC. 6717. REFUSAL OF ENTRY.

``(a) In General.--In addition to any other penalty
provided by law, any person who refuses to admit entry or
refuses to permit any other action by the Secretary
authorized by section 4083(d)(1) shall pay a penalty of
$1,000 for such refusal.
``(b) Joint and Several Liability.--
``(1) In general.--If a penalty is imposed under this
section on any business entity, each officer, employee, or
agent of such entity or other contracting party who willfully
participated in any act giving rise to such penalty shall be
jointly and severally liable with such entity for such
penalty.
``(2) Affiliated groups.--If a business entity described in
paragraph (1) is part of an affiliated group (as defined in
section 1504(a)), the parent corporation of such entity shall
be jointly and severally liable with such entity for the
penalty imposed under this section.
``(c) Reasonable Cause Exception.--No penalty shall be
imposed under this section with respect to any failure if it
is shown that such failure is due to reasonable cause.''.
(b) Conforming Amendments.--
(1) Section 4083(d)(3), as amended by section 5211 of this
Act, is amended--
(A) by striking ``entry.--The penalty'' and inserting:
``entry.--
``(A) Forfeiture.--The penalty'', and
(B) by adding at the end the following new subparagraph:
``(B) Assessable penalty.--For additional assessable
penalty for the refusal to admit entry or other refusal to
permit an action by the Secretary authorized by paragraph
(1), see section 6717.''.
(2) The table of sections for part I of subchapter B of
chapter 68, as amended by section 5221 of this Act, is
amended by adding at the end the following new item:

``Sec. 6717. Refusal of entry.''.

(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

PART IV--REGISTRATION AND REPORTING REQUIREMENTS

SEC. 5241. REGISTRATION OF PIPELINE OR VESSEL OPERATORS
REQUIRED FOR EXEMPTION OF BULK TRANSFERS TO
REGISTERED TERMINALS OR REFINERIES.

(a) In General.--Section 4081(a)(1)(B) (relating to
exemption for bulk transfers to registered terminals or
refineries) is amended--
(1) by inserting ``by pipeline or vessel'' after
``transferred in bulk'', and
(2) by inserting ``, the operator of such pipeline or
vessel,'' after ``the taxable fuel''.
(b) Civil Penalty for Carrying Taxable Fuels by
Nonregistered Pipelines or Vessels.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties), as amended by section
5232 of this Act, is amended by adding at the end the
following new section:

``SEC. 6718. CARRYING TAXABLE FUELS BY NONREGISTERED
PIPELINES OR VESSELS.

``(a) Imposition of Penalty.--If any person knowingly
transfers any taxable fuel (as defined in section 4083(a)(1))
in bulk pursuant to section 4081(a)(1)(B) to an unregistered,
such person shall pay a penalty in addition to the tax (if
any).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraph (2), the
amount of the penalty under subsection (a) on each act shall
be an amount equal to the greater of--
``(A) $10,000, or
``(B) $1 per gallon.
``(2) Multiple violations.--In determining the penalty
under subsection (a) on any person, paragraph (1) shall be
applied by increasing the amount in paragraph (1) by the
product of such amount and the number of prior penalties (if
any) imposed by this section on such person (or a related
person or any predecessor of such person or related person).
``(c) Joint and Several Liability.--
``(1) In general.--If a penalty is imposed under this
section on any business entity, each officer, employee, or
agent of such entity or other contracting party who willfully
participated in any act giving rise to such penalty shall be
jointly and severally liable with such entity for such
penalty.
``(2) Affiliated groups.--If a business entity described in
paragraph (1) is part of an affiliated group (as defined in
section 1504(a)), the parent corporation of such entity shall
be jointly and severally liable with such entity for the
penalty imposed under this section.
``(d) Reasonable Cause Exception.--No penalty shall be
imposed under this section with respect to any failure if it
is shown that such failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68, as amended by section 5232 of
this Act, is amended by adding at the end the following new
item:

``Sec. 6718. Carrying taxable fuels by nonregistered pipelines or
vessels.''.
(c) Publication of Registered Persons.--Not later than June
30, 2004, the Secretary of the Treasury shall publish a list
of persons required to be registered under section 4101 of
the Internal Revenue Code of 1986.
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on October 1, 2004.

SEC. 5242. DISPLAY OF REGISTRATION.

(a) In General.--Subsection (a) of section 4101 (relating
to registration) is amended--
(1) by striking ``Every'' and inserting the following:
``(1) In general.--Every'', and
(2) by adding at the end the following new paragraph:
``(2) Display of registration.--Every operator of a vessel
required by the Secretary to register under this section
shall display proof of registration through an electronic
identification device prescribed by the Secretary on each
vessel used by such operator to transport any taxable
fuel.''.
(b) Civil Penalty for Failure to Display Registration.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties), as amended by section
5241 of this Act, is amended by adding at the end the
following new section:

``SEC. 6719. FAILURE TO DISPLAY REGISTRATION OF VESSEL.

``(a) Failure to Display Registration.--Every operator of a
vessel who fails to display proof of registration pursuant to
section 4101(a)(2) shall pay a penalty of $500 for each such
failure. With respect to any vessel, only one penalty shall
be imposed by this section during any calendar month.
``(b) Multiple Violations.--In determining the penalty
under subsection (a) on any person, subsection (a) shall be
applied by increasing the amount in subsection (a) by the
product of such amount and the number of prior penalties (if
any) imposed by this section on such person (or a related
person or any predecessor of such person or related person).
``(c) Reasonable Cause Exception.--No penalty shall be
imposed under this section with respect to any failure if it
is shown that such failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68, as amended by section 5241 of
this Act, is amended by adding at the end the following new
item:

``Sec. 6719. Failure to display registration of vessel.''.

(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

[[Page S923]]

SEC. 5243. REGISTRATION OF PERSONS WITHIN FOREIGN TRADE
ZONES, ETC..

(a) In General.--Section 4101(a), as amended by section
5242 of this Act, is amended by redesignating paragraph (2)
as paragraph (3), and by inserting after paragraph (1) the
following new paragraph:
``(2) Registration of persons within foreign trade zones,
etc..--The Secretary shall require registration by any person
which--
``(A) operates a terminal or refinery within a foreign
trade zone or within a customs bonded storage facility, or
``(B) holds an inventory position with respect to a taxable
fuel in such a terminal.''.
(b) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

SEC. 5244. PENALTIES FOR FAILURE TO REGISTER AND FAILURE TO
REPORT.

(a) Increased Penalty.--Subsection (a) of section 7272
(relating to penalty for failure to register) is amended by
inserting ``($10,000 in the case of a failure to register
under section 4101)'' after ``$50''.
(b) Increased Criminal Penalty.--Section 7232 (relating to
failure to register under section 4101, false representations
of registration status, etc.) is amended by striking
``$5,000'' and inserting ``$10,000''.
(c) Assessable Penalty for Failure to Register.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties), as amended by section
5242 of this Act, is amended by adding at the end the
following new section:

``SEC. 6720. FAILURE TO REGISTER.

``(a) Failure to Register.--Every person who is required to
register under section 4101 and fails to do so shall pay a
penalty in addition to the tax (if any).
``(b) Amount of Penalty.--The amount of the penalty under
subsection (a) shall be--
``(1) $10,000 for each initial failure to register, and
``(2) $1,000 for each day thereafter such person fails to
register.
``(c) Reasonable Cause Exception.--No penalty shall be
imposed under this section with respect to any failure if it
is shown that such failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68, as amended by section 5242 of
this Act, is amended by adding at the end the following new
item:

``Sec. 6720. Failure to register.''.

(d) Assessable Penalty for Failure to Report.--
(1) In general.--Part II of subchapter B of chapter 68
(relating to assessable penalties) is amended by adding at
the end the following new section:

``SEC. 6725. FAILURE TO REPORT INFORMATION UNDER SECTION
4101.

``(a) In General.--In the case of each failure described in
subsection (b) by any person with respect to a vessel or
facility, such person shall pay a penalty of $10,000 in
addition to the tax (if any).
``(b) Failures Subject to Penalty.--For purposes of
subsection (a), the failures described in this subsection
are--
``(1) any failure to make a report under section 4101(d) on
or before the date prescribed therefor, and
``(2) any failure to include all of the information
required to be shown on such report or the inclusion of
incorrect information.
``(c) Reasonable Cause Exception.--No penalty shall be
imposed under this section with respect to any failure if it
is shown that such failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part II
of subchapter B of chapter 68 is amended by adding at the end
the following new item:

``Sec. 6725. Failure to report information under section 4101.''.

(e) Effective Date.--The amendments made by this section
shall apply to failures pending or occurring after September
30, 2004.

SEC. 5245. INFORMATION REPORTING FOR PERSONS CLAIMING CERTAIN
TAX BENEFITS.

(a) In General.--Subpart C of part III of subchapter A of
chapter 32 is amended by adding at the end the following new
section:

``SEC. 4104. INFORMATION REPORTING FOR PERSONS CLAIMING
CERTAIN TAX BENEFITS.

``(a) In General.--The Secretary shall require any person
claiming tax benefits--
``(1) under the provisions of section 34, 40, and 40A to
file a return at the time such person claims such benefits
(in such manner as the Secretary may prescribe), and
``(2) under the provisions of section 4041(b)(2), 6426, or
6427(e) to file a monthly return (in such manner as the
Secretary may prescribe).
``(b) Contents of Return.--Any return filed under this
section shall provide such information relating to such
benefits and the coordination of such benefits as the
Secretary may require to ensure the proper administration and
use of such benefits.
``(c) Enforcement.--With respect to any person described in
subsection (a) and subject to registration requirements under
this title, rules similar to rules of section 4222(c) shall
apply with respect to any requirement under this section.''.
(b) Conforming Amendment.--The table of sections for
subpart C of part III of subchapter A of chapter 32 is
amended by adding at the end the following new item:

``Sec. 4104. Information reporting for persons claiming certain tax
benefits.''.

(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

PART V--IMPORTS

SEC. 5251. TAX AT POINT OF ENTRY WHERE IMPORTER NOT
REGISTERED.

(a) Tax at Point of Entry Where Importer Not Registered.--
(1) In general.--Subpart C of part III of subchapter A of
chapter 31, as amended by section 5245 of this Act, is
amended by adding at the end the following new section:

``SEC. 4105. TAX AT ENTRY WHERE IMPORTER NOT REGISTERED.

``(a) In General.--Any tax imposed under this part on any
person not registered under section 4101 for the entry of a
fuel into the United States shall be imposed at the time and
point of entry.
``(b) Enforcement of Assessment.--If any person liable for
any tax described under subsection (a) has not paid the tax
or posted a bond, the Secretary may--
``(1) seize the fuel on which the tax is due, or
``(2) detain any vehicle transporting such fuel,
until such tax is paid or such bond is filed.
``(c) Levy of Fuel.--If no tax has been paid or no bond has
been filed within 5 days from the date the Secretary seized
fuel pursuant to subsection (b), the Secretary may sell such
fuel as provided under section 6336.''.
(2) Conforming amendment.--The table of sections for
subpart C of part III of subchapter A of chapter 31 of the
Internal Revenue Code of 1986, as amended by section 5245 of
this Act, is amended by adding after the last item the
following new item:

``Sec. 4105. Tax at entry where importer not registered.''.

(b) Denial of Entry Where Tax Not Paid.--The Secretary of
Homeland Security is authorized to deny entry into the United
States of any shipment of a fuel which is taxable under
section 4081 of the Internal Revenue Code of 1986 if the
person entering such shipment fails to pay the tax imposed
under such section or post a bond in accordance with the
provisions of section 4105 of such Code.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5252. RECONCILIATION OF ON-LOADED CARGO TO ENTERED
CARGO.

(a) In General.--Subsection (a) of section 343 of the Trade
Act of 2002 is amended by inserting at the end the following
new paragraph:
``(4) In General.--Subject to paragraphs (2) and (3), not
later than 1 year after the enactment of this paragraph, the
Secretary of Homeland Security, together with the Secretary
of the Treasury, shall promulgate regulations providing for
the transmission to the Internal Revenue Service, through an
electronic data interchange system, of information pertaining
to cargo of taxable fuels (as defined in section 4083 of the
Internal Revenue Code of 1986) destined for importation into
the United States prior to such importation.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

PART VI--MISCELLANEOUS PROVISIONS

SEC. 5261. TAX ON SALE OF DIESEL FUEL WHETHER SUITABLE FOR
USE OR NOT IN A DIESEL-POWERED VEHICLE OR
TRAIN.

(a) In General.--Section 4083(a)(3) is amended--
(1) by striking ``The term'' and inserting the following:
``(A) In general.--The term'', and
(2) by inserting at the end the following new subparagraph:
``(B) Liquid sold as diesel fuel.--The term `diesel fuel'
includes any liquid which is sold as or offered for sale as a
fuel in a diesel-powered highway vehicle or a diesel-powered
train.''.
(b) Conforming Amendments.--
(1) Section 40A(b)(1)(B), as amended by section 5103 of
this Act, is amended by striking ``4083(a)(3)'' and inserting
``4083(a)(3)(A)''.
(2) Section 6426(c)(3), as added by section 5102 of this
Act, is amended by striking ``4083(a)(3)'' and inserting
``4083(a)(3)(A)''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5262. MODIFICATION OF ULTIMATE VENDOR REFUND CLAIMS WITH
RESPECT TO FARMING.

(a) In General.--
(1) Refunds.--Section 6427(l) is amended by adding at the
end the following new paragraph:
``(6) Registered vendors permitted to administer certain
claims for refund of diesel fuel and kerosene sold to
farmers.--
``(A) In general.--In the case of diesel fuel or kerosene
used on a farm for farming purposes (within the meaning of
section 6420(c)), paragraph (1) shall not apply to the
aggregate amount of such diesel fuel or kerosene if such
amount does not exceed 500 gallons (as determined under
subsection (i)(5)(A)(iii)).
``(B) Payment to ultimate vendor.--The amount which would
(but for subparagraph (A)) have been paid under paragraph (1)
with respect to any fuel shall be paid to the ultimate vendor
of such fuel, if such vendor--
``(i) is registered under section 4101, and
``(ii) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).''.

[[Page S924]]

(2) Filing of claims.--Section 6427(i) is amended by
inserting at the end the following new paragraph:
``(5) Special rule for vendor refunds with respect to
farmers.--
``(A) In general.--A claim may be filed under subsection
(l)(6) by any person with respect to fuel sold by such person
for any period--
``(i) for which $200 or more ($100 or more in the case of
kerosene) is payable under subsection (l)(6),
``(ii) which is not less than 1 week, and
``(iii) which is for not more than 500 gallons for each
farmer for which there is a claim.
Notwithstanding subsection (l)(1), paragraph (3)(B) shall
apply to claims filed under the preceding sentence.
``(B) Time for filing claim.--No claim filed under this
paragraph shall be allowed unless filed on or before the last
day of the first quarter following the earliest quarter
included in the claim.''.
(3) Conforming amendments.--
(A) Section 6427(l)(5)(A) is amended to read as follows:
``(A) In general.--Paragraph (1) shall not apply to diesel
fuel or kerosene used by a State or local government.''.
(B) The heading for section 6427(l)(5) is amended by
striking ``farmers and''.
(b) Effective Date.--The amendment made by this section
shall apply to fuels sold for nontaxable use after the date
of the enactment of this Act.

SEC. 5263. TAXABLE FUEL REFUNDS FOR CERTAIN ULTIMATE VENDORS.

(a) In General.--Paragraph (4) of section 6416(a) (relating
to abatements, credits, and refunds) is amended to read as
follows:
``(4) Registered ultimate vendor to administer credits and
refunds of gasoline tax.--
``(A) In general.--For purposes of this subsection, if an
ultimate vendor purchases any gasoline on which tax imposed
by section 4081 has been paid and sells such gasoline to an
ultimate purchaser described in subparagraph (C) or (D) of
subsection (b)(2) (and such gasoline is for a use described
in such subparagraph), such ultimate vendor shall be treated
as the person (and the only person) who paid such tax, but
only if such ultimate vendor is registered under section
4101. For purposes of this subparagraph, if the sale of
gasoline is made by means of a credit card, the person
extending the credit to the ultimate purchaser shall be
deemed to be the ultimate vendor.
``(B) Timing of claims.--The procedure and timing of any
claim under subparagraph (A) shall be the same as for claims
under section 6427(i)(4), except that the rules of section
6427(i)(3)(B) regarding electronic claims shall not apply
unless the ultimate vendor has certified to the Secretary for
the most recent quarter of the taxable year that all ultimate
purchasers of the vendor are certified and entitled to a
refund under subparagraph (C) or (D) of subsection (b)(2).''.
(b) Credit Card Purchases of Diesel Fuel or Kerosene by
State and Local Governments.--Section 6427(l)(5)(C) (relating
to nontaxable uses of diesel fuel, kerosene, and aviation
fuel), as amended by section 5252 of this Act, is amended by
adding at the end the following new sentence: ``For purposes
of this subparagraph, if the sale of diesel fuel or kerosene
is made by means of a credit card, the person extending the
credit to the ultimate purchaser shall be deemed to be the
ultimate vendor.''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

SEC. 5264. TWO-PARTY EXCHANGES.

(a) In General.--Subpart C of part III of subchapter A of
chapter 32, as amended by section 5251 of this Act, is
amended by adding at the end the following new section:

``SEC. 4106. TWO-PARTY EXCHANGES.

``(a) In General.--In a two-party exchange, the delivering
person shall not be liable for the tax imposed under of
section 4081(a)(1)(A)(ii).
``(b) Two-Party Exchange.--The term `two-party exchange'
means a transaction, other than a sale, in which taxable fuel
is transferred from a delivering person registered under
section 4101 as a taxable fuel registrant to a receiving
person who is so registered where all of the following occur:
``(1) The transaction includes a transfer from the
delivering person, who holds the inventory position for
taxable fuel in the terminal as reflected in the records of
the terminal operator.
``(2) The exchange transaction occurs before or
contemporaneous with completion of removal across the rack
from the terminal by the receiving person.
``(3) The terminal operator in its books and records treats
the receiving person as the person that removes the product
across the terminal rack for purposes of reporting the
transaction to the Secretary.
``(4) The transaction is the subject of a written
contract.''.
(b) Conforming Amendment.--The table of sections for
subpart C of part III of subchapter A of chapter 32, as
amended by section 5251 of this Act, is amended by adding
after the last item the following new item:

``Sec. 4106. Two-party exchanges.''.

(c) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5265. MODIFICATIONS OF TAX ON USE OF CERTAIN VEHICLES.

(a) No Proration of Tax Unless Vehicle Is Destroyed or
Stolen.--
(1) In general.--Section 4481(c) (relating to proration of
tax) is amended to read as follows:
``(c) Proration of Tax Where Vehicle Sold, Destroyed, or
Stolen.--
``(1) In general.--If in any taxable period a highway motor
vehicle is sold, destroyed, or stolen before the first day of
the last month in such period and not subsequently used
during such taxable period, the tax shall be reckoned
proportionately from the first day of the month in such
period in which the first use of such highway motor vehicle
occurs to and including the last day of the month in which
such highway motor vehicle was sold, destroyed, or stolen.
``(2) Destroyed.--For purposes of paragraph (1), a highway
motor vehicle is destroyed if such vehicle is damaged by
reason of an accident or other casualty to such an extent
that it is not economic to rebuild.''.
(2) Conforming amendments.--
(A) Section 6156 (relating to installment payment of tax on
use of highway motor vehicles) is repealed.
(B) The table of sections for subchapter A of chapter 62 is
amended by striking the item relating to section 6156.
(b) Display of Tax Certificate.--Paragraph (2) of section
4481(d) (relating to one tax liability for period) is amended
to read as follows:
``(2) Display of tax certificate.--Every taxpayer which
pays the tax imposed under this section with respect to a
highway motor vehicle shall, not later than 1 month after the
due date of the return of tax with respect to each taxable
period, receive and display on such vehicle an electronic
identification device prescribed by the Secretary.''.
(c) Electronic filing.--Section 4481, as amended by section
5001 of this Act, is amended by redesignating subsection (e)
as subsection (f) and by inserting after subsection (d) the
following new subsection:
``(e) Electronic filing.--Any taxpayer who files a return
under this section with respect to 25 or more vehicles for
any taxable period shall file such return electronically.''.
(d) Repeal of reduction in tax for certain trucks.--Section
4483 of the Internal Revenue Code of 1986 is amended by
striking subsection (f).
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable
periods beginning after the date of the enactment of this
Act.
(2) Subsection (b).--The amendment made by subsection (b)
shall take effect on October 1, 2005.

SEC. 5266. DEDICATION OF REVENUES FROM CERTAIN PENALTIES TO
THE HIGHWAY TRUST FUND.

(a) In General.--Subsection (b) of section 9503 (relating
to transfer to Highway Trust Fund of amounts equivalent to
certain taxes), as amended by section 5001 of this Act, is
amended by redesignating paragraph (5) as paragraph (6) and
inserting after paragraph (4) the following new paragraph:
``(5) Certain penalties.--There are hereby appropriated to
the Highway Trust Fund amounts equivalent to the penalties
assessed under sections 6715, 6715A, 6717, 6718, 6719, 6720,
6725, 7232, and 7272 (but only with regard to penalties under
such section related to failure to register under section
4101).''.
(b) Conforming Amendments.--
(1) The heading of subsection (b) of section 9503 is
amended by inserting ``and Penalties'' after ``Taxes''.
(2) The heading of paragraph (1) of section 9503(b) is
amended by striking ``In general'' and inserting ``Certain
taxes''.
(c) Effective Date.--The amendments made by this section
shall apply to penalties assessed after October 1, 2004.

SEC. 5267. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF
FUEL TO MOTOR VEHICLES REMOVED FROM UNITED
STATES.

(a) In General.--Section 4221(d)(2) (defining export) is
amended by adding at the end the following new sentence:
``Such term does not include the delivery of a taxable fuel
(as defined in section 4083(a)(1)) into a fuel tank of a
motor vehicle which is shipped or driven out of the United
States.''.
(b) Conforming Amendments.--
(1) Section 4041(g) (relating to other exemptions) is
amended by adding at the end the following new sentence:
``Paragraph (3) shall not apply to the sale for delivery of a
liquid into a fuel tank of a motor vehicle which is shipped
or driven out of the United States.''.
(2) Clause (iv) of section 4081(a)(1)(A) (relating to tax
on removal, entry, or sale) is amended by inserting ``or at a
duty-free sales enterprise (as defined in section 555(b)(8)
of the Tariff Act of 1930)'' after ``section 4101''.
(c) Effective Date.--The amendments made by this section
shall apply to sales or deliveries made after the date of the
enactment of this Act.

PART VII--TOTAL ACCOUNTABILITY

SEC. 5271. TOTAL ACCOUNTABILITY.

(a) Taxation of Reportable Liquids.--
(1) In general.--Section 4081(a), as amended by this Act,
is amended--
(A) by inserting ``or reportable liquid'' after ``taxable
fuel'' each place it appears, and
(B) by inserting ``such liquid'' after ``such fuel'' in
paragraph (1)(A)(iv).

[[Page S925]]

(2) Rate of tax.--Subparagraph (A) of section 4081(a)(2),
as amended by section 5211 of this Act, is amended by
striking ``and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, and'', and
by adding at the end the following new clause:
``(v) in the case of reportable liquids, the rate
determined under section 4083(c)(2).''.
(3) Exemption.--Section 4081(a)(1) is amended by adding at
the end the following new subparagraph:
``(C) Exemption for registered transfers of reportable
liquids.--The tax imposed by this paragraph shall not apply
to any removal, entry, or sale of a reportable liquid if--
``(i) such removal, entry, or sale is to a registered
person who certifies that such liquid will not be used as a
fuel or in the production of a fuel, or
``(ii) the sale is to the ultimate purchaser of such
liquid.''.
(4) Reportable liquids.--Section 4083, as amended by this
Act, is amended by redesignating subsections (c) and (d) (as
redesignated by section 5211 of this Act) as subsections (d)
and (e), respectively, and by inserting after subsection (b)
the following new section:
``(c) Reportable liquid.--For purposes of this subpart--
``(1) In general.--The term `reportable liquid' means any
petroleum-based liquid other than a taxable fuel.
``(2) Taxation.--
``(A) Gasoline blend stocks and additives.--Gasoline blend
stocks and additives which are reportable liquids (as defined
in paragraph (1)) shall be subject to the rate of tax under
clause (i) of section 4081(a)(2)(A).
``(B) Other reportable liquids.--Any reportable liquid (as
defined in paragraph (1)) not described in subparagraph (A)
shall be subject to the rate of tax under clause (iii) of
section 4081(a)(2)(A).''.
(5) Conforming amendments.--
(A) Section 4081(e) is amended by inserting ``or reportable
liquid'' after ``taxable fuel''.
(B) Section 4083(d) (relating to certain use defined as
removal), as redesignated by paragraph (4), is amended by
inserting ``or reportable liquid'' after ``taxable fuel''.
(C) Section 4083(e)(1) (relating to administrative
authority), as redesignated by paragraph (4), is amended--
(i) in subparagraph (A)--

(I) by inserting ``or reportable liquid'' after ``taxable
fuel'', and
(II) by inserting ``or such liquid'' after ``such fuel''
each place it appears, and

(ii) in subparagraph (B), by inserting ``or any reportable
liquid'' after ``any taxable fuel''.
(D) Section 4101(a)(2), as added by section 5243 of this
Act, is amended by inserting ``or a reportable liquid'' after
``taxable fuel''.
(E) Section 4101(a)(3), as added by section 5242 of this
Act and redesignated by section 5243 of this Act, is amended
by inserting ``or any reportable liquid'' before the period
at the end.
(F) Section 4102 is amended by inserting ``or any
reportable liquid'' before the period at the end.
(G)(i) Section 6718, as added by section 5241 of this Act,
is amended--
(I) in subsection (a), by inserting ``or any reportable
liquid (as defined in section 4083(c)(1))'' after `` section
4083(a)(1))'', and
(II) in the heading, by inserting ``or reportable liquids''
after ``taxable fuel''.
(ii) The item relating to section 6718 in table of sections
for part I of subchapter B of chapter 68, as added by section
5241 of this Act, is amended by inserting ``or reportable
liquids'' after ``taxable fuels''.
(H) Section 6427(h) is amended to read as follows:
``(h) Gasoline Blend Stocks or Additives and Reportable
Liquids.--Except as provided in subsection (k)--
``(1) if any gasoline blend stock or additive (within the
meaning of section 4083(a)(2)) is not used by any person to
produce gasoline and such person establishes that the
ultimate use of such gasoline blend stock or additive is not
to produce gasoline, or
``(2) if any reportable liquid (within the meaning of
section 4083(c)(1)) is not used by any person to produce a
taxable fuel and such person establishes that the ultimate
use of such reportable liquid is not to produce a taxable
fuel,
then the Secretary shall pay (without interest) to such
person an amount equal to the aggregate amount of the tax
imposed on such person with respect to such gasoline blend
stock or additive or such reportable fuel.''.
(I) Section 7232, as amended by this Act, is amended by
inserting ``or reportable liquid (within the meaning of
section 4083(c)(1))'' after ``section 4083)''.
(J) Section 343 of the Trade Act of 2002, as amended by
section 5252 of this Act, is amended by inserting ``and
reportable liquids (as defined in section 4083(c)(1) of such
Code)'' after ``Internal Revenue Code of 1986)''.
(b) Dyed Diesel.--Section 4082(a) is amended by striking
``and'' at the end of paragraph (2), by striking the period
at the end of paragraph (3) and inserting ``and'', and by
inserting after paragraph (3) the following new paragraph:
``(4) which is removed, entered, or sold by a person
registered under section 4101.''.
(c) Effective Date.--The amendments made by this section
shall apply to reportable liquids (as defined in section
4083(c) of the Internal Revenue Code) and fuel sold or used
after September 30, 2004.

SEC. 5272. EXCISE TAX REPORTING.

(a) In General.--Part II of subchapter A of chapter 61 is
amended by adding at the end the following new subpart:

``Subpart E--Excise Tax Reporting

``SEC. 6025. RETURNS RELATING TO FUEL TAXES.

``(a) In General.--The Secretary shall require any person
liable for the tax imposed under Part III of subchapter A of
chapter 32 to file a return of such tax on a monthly basis.
``(b) Information Included with Return.--The Secretary
shall require any person filing a return under subsection (a)
to provide information regarding any refined product (whether
or not such product is taxable under this title) removed from
a terminal during the period for which such return
applies.''.
(b) Conforming Amendment.--The table of parts for
subchapter A of chapter 61 is amended by adding at the end
the following new item:

``Subpart E--Excise Tax Reporting''.

(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after September 30, 2004.

SEC. 5273. INFORMATION REPORTING.

(a) In General.--Section 4101(d) is amended by adding at
the end the following new flush sentence:
``The Secretary shall require reporting under the previous
sentence with respect to taxable fuels removed, entered, or
transferred from any refinery, pipeline, or vessel which is
registered under this section.''.
(b) Effective Date.--The amendment made by this section
shall apply on October 1, 2004.

Subtitle D--Definition of Highway Vehicle

SEC. 5301. EXEMPTION FROM CERTAIN EXCISE TAXES FOR MOBILE
MACHINERY.

(a) Exemption From Tax on Heavy Trucks and Trailers Sold at
Retail.--
(1) In general.--Section 4053 (relating to exemptions) is
amended by adding at the end the following new paragraph:
``(8) Mobile machinery.--Any vehicle which consists of a
chassis--
``(A) to which there has been permanently mounted (by
welding, bolting, riveting, or other means) machinery or
equipment to perform a construction, manufacturing,
processing, farming, mining, drilling, timbering, or similar
operation if the operation of the machinery or equipment is
unrelated to transportation on or off the public highways,
``(B) which has been specially designed to serve only as a
mobile carriage and mount (and a power source, where
applicable) for the particular machinery or equipment
involved, whether or not such machinery or equipment is in
operation, and
``(C) which, by reason of such special design, could not,
without substantial structural modification, be used as a
component of a vehicle designed to perform a function of
transporting any load other than that particular machinery or
equipment or similar machinery or equipment requiring such a
specially designed chassis.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the day after the date of the enactment
of this Act.
(b) Exemption From Tax on Use of Certain Vehicles.--
(1) In general.--Section 4483 (relating to exemptions) is
amended by redesignating subsection (g) as subsection (h) and
by inserting after subsection (f) the following new
subsection:
``(g) Exemption for Mobile Machinery.--No tax shall be
imposed by section 4481 on the use of any vehicle described
in section 4053(8).''.
(2) Effective date.--The amendments made by this subsection
shall take effect on the day after the date of the enactment
of this Act.
(d) Exemption From Fuel Taxes.--
(1) In general.--Section 6421(e)(2) (defining off-highway
business use) is amended by adding at the end the following
new subparagraph:
``(C) Uses in mobile machinery.--
``(i) In general.--The term `off-highway business use'
shall include any use in a vehicle which meets the
requirements described in clause (ii).
``(ii) Requirements for mobile machinery.--The requirements
described in this clause are--

``(I) the design-based test, and
``(II) the use-based test.

``(iii) Design-based test.--For purposes of clause (ii)(I),
the design-based test is met if the vehicle consists of a
chassis--

``(I) to which there has been permanently mounted (by
welding, bolting, riveting, or other means) machinery or
equipment to perform a construction, manufacturing,
processing, farming, mining, drilling, timbering, or similar
operation if the operation of the machinery or equipment is
unrelated to transportation on or off the public highways,
``(II) which has been specially designed to serve only as a
mobile carriage and mount (and a power source, where
applicable) for the particular machinery or equipment
involved, whether or not such machinery or equipment is in
operation, and
``(III) which, by reason of such special design, could not,
without substantial structural modification, be used as a
component

[[Page S926]]

of a vehicle designed to perform a function of transporting
any load other than that particular machinery or equipment or
similar machinery or equipment requiring such a specially
designed chassis.

``(iv) Use-based test.--For purposes of clause (ii)(II),
the use-based test is met if the use of the vehicle on public
highways was less than 5,000 miles during the taxpayer's
taxable year.
``(v) Special rule for use by certain tax-exempt
organizations.--In the case of any use in a vehicle by an
organization which is described in section 501(c) and exempt
from tax under section 501(a), clause (ii) shall be applied
without regard to subclause (II) thereof.''.
(2) Annual refund of tax paid.--Section 6427(i)(2)
(relating to exceptions) is amended by adding at the end the
following new subparagraph:
``(C) Nonapplication of paragraph.--This paragraph shall
not apply to any fuel used in any off-highway business use
described in section 6421(e)(2)(C).''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 5302. MODIFICATION OF DEFINITION OF OFF-HIGHWAY VEHICLE.

(a) In General.--Section 7701(a) (relating to definitions)
is amended by adding at the end the following new paragraph:
``(48) Off-highway vehicles.--
``(A) Off-highway transportation vehicles.--
``(i) In general.--A vehicle shall not be treated as a
highway vehicle if such vehicle is specially designed for the
primary function of transporting a particular type of load
other than over the public highway and because of this
special design such vehicle's capability to transport a load
over the public highway is substantially limited or impaired.
``(ii) Determination of vehicle's design.--For purposes of
clause (i), a vehicle's design is determined solely on the
basis of its physical characteristics.
``(iii) Determination of substantial limitation or
impairment.--For purposes of clause (i), in determining
whether substantial limitation or impairment exists, account
may be taken of factors such as the size of the vehicle,
whether such vehicle is subject to the licensing, safety, and
other requirements applicable to highway vehicles, and
whether such vehicle can transport a load at a sustained
speed of at least 25 miles per hour. It is immaterial that a
vehicle can transport a greater load off the public highway
than such vehicle is permitted to transport over the public
highway.
``(B) Nontransportation trailers and semitrailers.--A
trailer or semitrailer shall not be treated as a highway
vehicle if it is specially designed to function only as an
enclosed stationary shelter for the carrying on of an off-
highway function at an off-highway site.''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall take effect on the date
of the enactment of this Act.
(2) Fuel taxes.--With respect to taxes imposed under
subchapter B of chapter 31 and part III of subchapter A of
chapter 32, the amendment made by this section shall apply to
taxable periods beginning after the date of the enactment of
this Act.

Subtitle E--Excise Tax Reform and Simplification

PART I--HIGHWAY EXCISE TAXES

SEC. 5401. DEDICATION OF GAS GUZZLER TAX TO HIGHWAY TRUST
FUND.

(a) In General.--Section 9503(b)(1) (relating to transfer
to Highway Trust Fund of amounts equivalent to certain
taxes), as amended by section 5101 of this Act, is amended by
redesignating subparagraphs (C), (D), and (E) as
subparagraphs (D), (E), and (F), respectively, and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) section 4064 (relating to gas guzzler tax),''.
(b) Uniform Application of Tax.--Subparagraph (A) of
section 4064(b)(1) (defining automobile) is amended by
striking the second sentence.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.

SEC. 5402. REPEAL CERTAIN EXCISE TAXES ON RAIL DIESEL FUEL
AND INLAND WATERWAY BARGE FUELS.

(a) Taxes on Trains.--
(1) In general.--Subparagraph (A) of section 4041(a)(1) is
amended by striking ``or a diesel-powered train'' each place
it appears and by striking ``or train''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 4041(a)(1), as amended by
section 5001 of this Act, is amended by striking clause (ii)
and by redesignating clause (iii) as clause (ii).
(B) Subparagraph (C) of section 4041(b)(1) is amended by
striking all that follows ``section 6421(e)(2)'' and
inserting a period.
(C) Subsection (d) of section 4041 is amended by
redesignating paragraph (3) as paragraph (4) and by inserting
after paragraph (2) the following new paragraph:
``(3) Diesel fuel used in trains.--There is hereby imposed
a tax of 0.1 cent per gallon on any liquid other than
gasoline (as defined in section 4083)--
``(A) sold by any person to an owner, lessee, or other
operator of a diesel-powered train for use as a fuel in such
train, or
``(B) used by any person as a fuel in a diesel-powered
train unless there was a taxable sale of such fuel under
subparagraph (A).
No tax shall be imposed by this paragraph on the sale or use
of any liquid if tax was imposed on such liquid under section
4081.''.
(D) Subsection (f) of section 4082 is amended by striking
``section 4041(a)(1)'' and inserting ``subsections (d)(3) and
(a)(1) of section 4041, respectively''.
(E) Subparagraphs (A) and (B) of section 4083(a)(3), as
amended by section 5261 of this Act, are amended by striking
``or a diesel-powered train''.
(F) Paragraph (3) of section 6421(f) is amended to read as
follows:
``(3) Gasoline used in trains.--In the case of gasoline
used as a fuel in a train, this section shall not apply with
respect to the Leaking Underground Storage Tank Trust Fund
financing rate under section 4081.''.
(G) Paragraph (3) of section 6427(l) is amended to read as
follows:
``(3) Refund of certain taxes on fuel used in diesel-
powered trains.--For purposes of this subsection, the term
`nontaxable use' includes fuel used in a diesel-powered
train. The preceding sentence shall not apply to the tax
imposed by section 4041(d) and the Leaking Underground
Storage Tank Trust Fund financing rate under section 4081
except with respect to fuel sold for exclusive use by a State
or any political subdivision thereof.''.
(b) Fuel Used on Inland Waterways.--
(1) In general.--Paragraph (1) of section 4042(b) is
amended by adding ``and'' at the end of subparagraph (A), by
striking ``, and'' at the end of subparagraph (B) and
inserting a period, and by striking subparagraph (C).
(2) Conforming amendment.--Paragraph (2) of section 4042(b)
is amended by striking subparagraph (C).
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

PART II--AQUATIC EXCISE TAXES

SEC. 5411. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND
TRANSFORMATION OF SPORT FISH RESTORATION
ACCOUNT.

(a) Simplification of Funding for Boat Safety Account.--
(1) In general.--Section 9503(c)(3) (relating to transfers
from Trust Fund for motorboat fuel taxes), as redesignated by
section 5002 of this Act, is amended--
(A) by striking ``Fund--'' and all that follows through
``shall be transferred'' in subparagraph (B) and inserting
``Fund which is attributable to motorboat fuel taxes shall be
transferred'', and
(B) by striking subparagraph (A), and
(C) by redesignating subparagraphs (B) through (E) as
subparagraphs (A) through (D), respectively.
(2) Conforming amendments.--
(A) Section 9503(b)(4), as amended by section 5102 of this
Act, is amended--
(i) by adding ``or'' at the end of subparagraph (B),
(ii) by striking the comma at the end of subparagraph (C)
and inserting a period, and
(iii) by striking subparagraph (D).
(B) Subparagraph (B) of section 9503(c)(3), as redesignated
by section 5002 of this Act and subsection (a)(3), is
amended--
(i) by striking ``account'' in the heading and inserting
``trust fund'',
(ii) by striking ``or (B)'' in clause (ii), and
(iii) by striking ``Account in the Aquatic Resources''.
(C) Subparagraph (C) of section 9503(c)(3), as redesignated
by section 5002 of this Act and subsection (a)(3), is amended
by striking ``, but only to the extent such taxes are
deposited into the Highway Trust Fund''.
(D) Paragraph (4) of section 9503(c), as redesignated by
section 5002 of this Act, is amended--
(i) by striking ``Account in the Aquatic Resources'' in
subparagraph (A), and
(ii) by striking ``, but only to the extent such taxes are
deposited into the Highway Trust Fund'' in subparagraph (B).
(b) Merging of Accounts.--
(1) In general.--Subsection (a) of section 9504 is amended
to read as follows:
``(a) Creation of Trust Fund.--There is hereby established
in the Treasury of the United States a trust fund to be known
as the `Sport Fish Restoration Trust Fund'. Such Trust Fund
shall consist of such amounts as may be appropriated,
credited, or paid to it as provided in this section, section
9503(c)(3), section 9503(c)(4), or section 9602(b).''.
(2) Conforming amendments.--
(A) Subsection (b) of section 9504 is amended--
(i) by striking ``Account'' in the heading and inserting
``Trust Fund'',
(ii) by striking ``Account'' both places it appears in
paragraphs (1) and (2) and inserting ``Trust Fund'', and
(iii) by striking ``account'' both places it appears in the
headings for paragraphs (1) and (2) and inserting ``trust
fund''.
(B) Subsection (d) of section 9504, as amended by section
5001 of this Act, is amended--
(i) by striking ``Aquatic Resources'' in the heading,

[[Page S927]]

(ii) by striking ``any Account in the Aquatic Resources''
in paragraph (1) and inserting ``the Sports Fish
Restoration'', and
(iii) by striking ``any such Account'' in paragraph (1) and
inserting ``such Trust Fund''.
(C) Subsection (e) of section 9504, as amended by section
5002 of this Act, is amended by striking ``Boat Safety
Account and Sport Fish Restoration Account'' and inserting
``Sport Fish Restoration Trust Fund''.
(D) Section 9504 is amended by striking ``aquatic
resources'' in the heading and inserting ``sport fish
restoration''.
(E) The item relating to section 9504 in the table of
sections for subchapter A of chapter 98 is amended by
striking ``aquatic resources'' and inserting ``sport fish
restoration''.
(c) Phaseout of Boat Safety Account.--Subsection (c) of
section 9504 is amended to read as follows:
``(c) Expenditures From Boat Safety Account.--Amounts
remaining in the Boat Safety Account on October 1, 2004, and
amounts thereafter credited to the Account under section
9602(b), shall be available, as provided by appropriation
Acts, for making expenditures before October 1, 2009, to
carry out the purposes of section 13106 of title 46, United
States Code (as in effect on the date of the enactment of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004).''.
(d) Effective Date.--The amendments made by this section
shall take effect on October 1, 2004.

SEC. 5412. EXEMPTION OF LED DEVICES FROM SONAR DEVICES
SUITABLE FOR FINDING FISH.

(a) In General.--Section 4162(b) (defining sonar device
suitable for finding fish) is amended by striking ``or'' at
the end of paragraph (3), by striking the period at the end
of paragraph (4) and inserting ``, or'', and by adding at the
end the following new paragraph:
``(5) an LED display.''.
(b) Effective Date.--The amendments made by this section
shall apply to articles sold by the manufacturer, producer,
or importer after September 30, 2004.

SEC. 5413. REPEAL OF HARBOR MAINTENANCE TAX ON EXPORTS.

(a) In General.--Subsection (d) of section 4462 (relating
to definitions and special rules) is amended to read as
follows:
``(d) Nonapplicability of Tax to Exports.--The tax imposed
by section 4461(a) shall not apply to any port use with
respect to any commercial cargo to be exported from the
United States.''.
(b) Conforming Amendments.--
(1) Section 4461(c)(1) is amended by adding ``or'' at the
end of subparagraph (A), by striking subparagraph (B), and by
redesignating subparagraph (C) as subparagraph (B).
(2) Section 4461(c)(2) is amended by striking ``imposed--''
and all that follows through ``in any other case,'' and
inserting ``imposed''.
(c) Effective Date.--The amendments made by this section
shall take effect before, on, and after the date of the
enactment of this Act.

SEC. 5414. CAP ON EXCISE TAX ON CERTAIN FISHING EQUIPMENT.

(a) In General.--Paragraph (1) of section 4161(a) (relating
to sport fishing equipment) is amended to read as follows:
``(1) Imposition of tax.--
``(A) In general.--There is hereby imposed on the sale of
any article of sport fishing equipment by the manufacturer,
producer, or importer a tax equal to 10 percent of the price
for which so sold.
``(B) Limitation on tax imposed on fishing rods and
poles.--The tax imposed by subparagraph (A) on any fishing
rod or pole shall not exceed $10.''.
(b) Conforming Amendments.--Section 4161(a)(2) is amended
by striking ``paragraph (1)'' both places it appears and
inserting ``paragraph (1)(A)''.
(c) Effective Date.--The amendments made by this section
shall apply to articles sold by the manufacturer, producer,
or importer after September 30, 2004.

SEC. 5415. REDUCTION IN RATE OF TAX ON PORTABLE AERATED BAIT
CONTAINERS.

(a) In General.--Section 4161(a)(2)(A) (relating to 3
percent rate of tax for electric outboard motors and sonar
devices suitable for finding fish) is amended by inserting
``or a portable aerated bait container'' after ``fish''.
(b) Conforming Amendment.--The heading of section
4161(a)(2) is amended by striking ``electric outboard motors
and sonar devices suitable for finding fish'' and inserting
``certain sport fishing equipment''.
(c) Effective Date.--The amendments made by this section
shall apply to articles sold by the manufacturer, producer,
or importer after September 30, 2004.

PART III--AERIAL EXCISE TAXES

SEC. 5421. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR
AGRICULTURAL AERIAL APPLICATORS AND EXEMPTION
FOR FIXED-WING AIRCRAFT ENGAGED IN FORESTRY
OPERATIONS.

(a) No Waiver by Farm Owner, Tenant, or Operator
Necessary.--Subparagraph (B) of section 6420(c)(4) (relating
to certain farming use other than by owner, etc.) is amended
to read as follows:
``(B) if the person so using the gasoline is an aerial or
other applicator of fertilizers or other substances and is
the ultimate purchaser of the gasoline, then subparagraph (A)
of this paragraph shall not apply and the aerial or other
applicator shall be treated as having used such gasoline on a
farm for farming purposes.''.
(b) Exemption Includes Fuel Used Between Airfield and
Farm.--Section 6420(c)(4), as amended by subsection (a), is
amended by adding at the end the following new flush
sentence:
``For purposes of this paragraph, in the case of an aerial
applicator, gasoline shall be treated as used on a farm for
farming purposes if the gasoline is used for the direct
flight between the airfield and 1 or more farms.''.
(c) Exemption from Tax on Air Transportation of Persons for
Forestry Purposes Extended to Fixed-Wing Aircraft.--
Subsection (f) of section 4261 (relating to tax on air
transportation of persons) is amended to read as follows:
``(f) Exemption for Certain Uses.--No tax shall be imposed
under subsection (a) or (b) on air transportation--
``(1) by helicopter for the purpose of transporting
individuals, equipment, or supplies in the exploration for,
or the development or removal of, hard minerals, oil, or gas,
or
``(2) by helicopter or by fixed-wing aircraft for the
purpose of the planting, cultivation, cutting, or
transportation of, or caring for, trees (including logging
operations),
but only if the helicopter or fixed-wing aircraft does not
take off from, or land at, a facility eligible for assistance
under the Airport and Airway Development Act of 1970, or
otherwise use services provided pursuant to section 44509 or
44913(b) or subchapter I of chapter 471 of title 49, United
States Code, during such use. In the case of helicopter
transportation described in paragraph (1), this subsection
shall be applied by treating each flight segment as a
distinct flight.''.
(d) Effective Date.--The amendments made by this section
shall apply to fuel use or air transportation after the date
of the enactment of this Act.

SEC. 5422. MODIFICATION OF RURAL AIRPORT DEFINITION.

(a) In General.--Section 4261(e)(1)(B) (defining rural
airport) is amended--
(1) by inserting ``(in the case of any airport described in
clause (ii)(III), on flight segments of at least 100 miles)''
after ``by air'' in clause (i), and
(2) by striking the period at the end of subclause (II) of
clause (ii) and inserting ``, or'', and by adding at the end
of clause (ii) the following new subclause:

``(III) is not connected by paved roads to another
airport.''.

(b) Effective Date.--The amendments made by this section
shall take effect on April 1, 2004.

SEC. 5423. EXEMPTION FROM TICKET TAXES FOR TRANSPORTATION
PROVIDED BY SEAPLANES.

(a) In General.--Section 4261 (relating to imposition of
tax) is amended by redesignating subsection (i) as subsection
(j) and by inserting after subsection (h) the following new
subsection:
``(i) Exemption for Seaplanes.--No tax shall be imposed by
this section or section 4271 on any air transportation by a
seaplane with respect to any segment consisting of a takeoff
from, and a landing on, water, but only if the places at
which such takeoff and landing occur have not received and
are not receiving financial assistance from the Airport and
Airways Trust Fund.''.
(b) Effective Date.--The amendments made by this section
shall apply to transportation beginning after March 31, 2004.

SEC. 5424. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES ON
AIR TRANSPORTATION.

(a) In General.--Section 4281 (relating to small aircraft
on nonestablished lines) is amended by adding at the end the
following new sentence: ``For purposes of this section, an
aircraft shall not be considered as operated on an
established line if such aircraft is operated on a flight the
sole purpose of which is sightseeing.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to transportation beginning on or
after the date of the enactment of this Act, but shall not
apply to any amount paid before such date for such
transportation.

PART IV--ALCOHOLIC BEVERAGE EXCISE TAXES

SEC. 5431. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON PRODUCERS
AND MARKETERS OF ALCOHOLIC BEVERAGES.

(a) Repeal of Occupational Taxes.--
(1) In general.--The following provisions of part II of
subchapter A of chapter 51 (relating to occupational taxes)
are hereby repealed:
(A) Subpart A (relating to proprietors of distilled spirits
plants, bonded wine cellars, etc.).
(B) Subpart B (relating to brewer).
(C) Subpart D (relating to wholesale dealers) (other than
sections 5114 and 5116).
(D) Subpart E (relating to retail dealers) (other than
section 5124).
(E) Subpart G (relating to general provisions) (other than
sections 5142, 5143, 5145, and 5146).
(2) Nonbeverage domestic drawback.--Section 5131 is amended
by striking ``, on payment of a special tax per annum,''.
(3) Industrial use of distilled spirits.--Section 5276 is
hereby repealed.
(b) Conforming Amendments.--
(1)(A) The heading for part II of subchapter A of chapter
51 and the table of subparts for such part are amended to
read as follows:

[[Page S928]]

``PART II--MISCELLANEOUS PROVISIONS

``Subpart A. Manufacturers of stills.
``Subpart B. Nonbeverage domestic drawback claimants.
``Subpart C. Recordkeeping by dealers.
``Subpart D. Other provisions.''.

(B) The table of parts for such subchapter A is amended by
striking the item relating to part II and inserting the
following new item:

``Part II. Miscellaneous provisions.''.

(2) Subpart C of part II of such subchapter (relating to
manufacturers of stills) is redesignated as subpart A.
(3)(A) Subpart F of such part II (relating to nonbeverage
domestic drawback claimants) is redesignated as subpart B and
sections 5131 through 5134 are redesignated as sections 5111
through 5114, respectively.
(B) The table of sections for such subpart B, as so
redesignated, is amended--
(i) by redesignating the items relating to sections 5131
through 5134 as relating to sections 5111 through 5114,
respectively, and
(ii) by striking ``and rate of tax'' in the item relating
to section 5111, as so redesignated.
(C) Section 5111, as redesignated by subparagraph (A), is
amended--
(i) by striking ``and rate of tax'' in the section heading,
(ii) by striking the subsection heading for subsection (a),
and
(iii) by striking subsection (b).
(4) Part II of subchapter A of chapter 51 is amended by
adding after subpart B, as redesignated by paragraph (3), the
following new subpart:

``Subpart C--Recordkeeping by Dealers

``Sec. 5121. Recordkeeping by wholesale dealers.
``Sec. 5122. Recordkeeping by retail dealers.
``Sec. 5123. Preservation and inspection of records, and entry of
premises for inspection.''.

(5)(A) Section 5114 (relating to records) is moved to
subpart C of such part II and inserted after the table of
sections for such subpart.
(B) Section 5114 is amended--
(i) by striking the section heading and inserting the
following new heading:

``SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.'',

and
(ii) by redesignating subsection (c) as subsection (d) and
by inserting after subsection (b) the following new
subsection:
``(c) Wholesale Dealers.--For purposes of this part--
``(1) Wholesale dealer in liquors.--The term `wholesale
dealer in liquors' means any dealer (other than a wholesale
dealer in beer) who sells, or offers for sale, distilled
spirits, wines, or beer, to another dealer.
``(2) Wholesale dealer in beer.--The term `wholesale dealer
in beer' means any dealer who sells, or offers for sale,
beer, but not distilled spirits or wines, to another dealer.
``(3) Dealer.--The term `dealer' means any person who
sells, or offers for sale, any distilled spirits, wines, or
beer.
``(4) Presumption in case of sale of 20 wine gallons or
more.--The sale, or offer for sale, of distilled spirits,
wines, or beer, in quantities of 20 wine gallons or more to
the same person at the same time, shall be presumptive
evidence that the person making such sale, or offer for sale,
is engaged in or carrying on the business of a wholesale
dealer in liquors or a wholesale dealer in beer, as the case
may be. Such presumption may be overcome by evidence
satisfactorily showing that such sale, or offer for sale, was
made to a person other than a dealer.''.
(C) Paragraph (3) of section 5121(d), as so redesignated,
is amended by striking ``section 5146'' and inserting
``section 5123''.
(6)(A) Section 5124 (relating to records) is moved to
subpart C of part II of subchapter A of chapter 51 and
inserted after section 5121.
(B) Section 5124 is amended--
(i) by striking the section heading and inserting the
following new heading:

``SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.'',

(ii) by striking ``section 5146'' in subsection (c) and
inserting ``section 5123'', and
(iii) by redesignating subsection (c) as subsection (d) and
inserting after subsection (b) the following new subsection:
``(c) Retail Dealers.--For purposes of this section--
``(1) Retail dealer in liquors.--The term `retail dealer in
liquors' means any dealer (other than a retail dealer in beer
or a limited retail dealer) who sells, or offers for sale,
distilled spirits, wines, or beer, to any person other than a
dealer.
``(2) Retail dealer in beer.--The term `retail dealer in
beer' means any dealer (other than a limited retail dealer)
who sells, or offers for sale, beer, but not distilled
spirits or wines, to any person other than a dealer.
``(3) Limited retail dealer.--The term `limited retail
dealer' means any fraternal, civic, church, labor,
charitable, benevolent, or ex-servicemen's organization
making sales of distilled spirits, wine or beer on the
occasion of any kind of entertainment, dance, picnic, bazaar,
or festival held by it, or any person making sales of
distilled spirits, wine or beer to the members, guests, or
patrons of bona fide fairs, reunions, picnics, carnivals, or
other similar outings, if such organization or person is not
otherwise engaged in business as a dealer.
``(4) Dealer.--The term `dealer' has the meaning given such
term by section 5121(c)(3).''.
(7) Section 5146 is moved to subpart C of part II of
subchapter A of chapter 51, inserted after section 5122, and
redesignated as section 5123.
(8) Part II of subchapter A of chapter 51 is amended by
inserting after subpart C the following new subpart:

``Subpart D--Other Provisions

``Sec. 5131. Packaging distilled spirits for industrial uses.
``Sec. 5132. Prohibited purchases by dealers.''.

(9) Section 5116 is moved to subpart D of part II of
subchapter A of chapter 51, inserted after the table of
sections, redesignated as section 5131, and amended by
inserting ``(as defined in section 5121(c))'' after
``dealer'' in subsection (a).
(10) Subpart D of part II of subchapter A of chapter 51 is
amended by adding at the end thereof the following new
section:

``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.

``(a) In General.--Except as provided in regulations
prescribed by the Secretary, it shall be unlawful for a
dealer to purchase distilled spirits for resale from any
person other than a wholesale dealer in liquors who is
required to keep the records prescribed by section 5121.
``(b) Limited Retail Dealers.--A limited retail dealer may
lawfully purchase distilled spirits for resale from a retail
dealer in liquors.
``(c) Penalty and Forfeiture.--

``For penalty and forfeiture provisions applicable to violations of
subsection (a), see sections 5687 and 7302.''.

(11) Subsection (b) of section 5002 is amended--
(A) by striking ``section 5112(a)'' and inserting ``section
5121(c)(3)'',
(B) by striking ``section 5112'' and inserting ``section
5121(c)'',
(C) by striking ``section 5122'' and inserting ``section
5122(c)''.
(12) Subparagraph (A) of section 5010(c)(2) is amended by
striking ``section 5134'' and inserting ``section 5114''.
(13) Subsection (d) of section 5052 is amended to read as
follows:
``(d) Brewer.--For purposes of this chapter, the term
`brewer' means any person who brews beer or produces beer for
sale. Such term shall not include any person who produces
only beer exempt from tax under section 5053(e).''.
(14) The text of section 5182 is amended to read as
follows:
``For provisions requiring recordkeeping by wholesale
liquor dealers, see section 5121, and by retail liquor
dealers, see section 5122.''.
(15) Subsection (b) of section 5402 is amended by striking
``section 5092'' and inserting ``section 5052(d)''.
(16) Section 5671 is amended by striking ``or 5091''.
(17)(A) Part V of subchapter J of chapter 51 is hereby
repealed.
(B) The table of parts for such subchapter J is amended by
striking the item relating to part V.
(18)(A) Sections 5142, 5143, and 5145 are moved to
subchapter D of chapter 52, inserted after section 5731,
redesignated as sections 5732, 5733, and 5734, respectively,
and amended by striking ``this part'' each place it appears
and inserting ``this subchapter''.
(B) Section 5732, as redesignated by subparagraph (A), is
amended by striking ``(except the tax imposed by section
5131)'' each place it appears.
(C) Paragraph (2) of section 5733(c), as redesignated by
subparagraph (A), is amended by striking ``liquors'' both
places it appears and inserting ``tobacco products and
cigarette papers and tubes''.
(D) The table of sections for subchapter D of chapter 52 is
amended by adding at the end thereof the following:

``Sec. 5732. Payment of tax.
``Sec. 5733. Provisions relating to liability for occupational taxes.
``Sec. 5734. Application of State laws.''.

(E) Section 5731 is amended by striking subsection (c) and
by redesignating subsection (d) as subsection (c).
(19) Subsection (c) of section 6071 is amended by striking
``section 5142'' and inserting ``section 5732''.
(20) Paragraph (1) of section 7652(g) is amended--
(A) by striking ``subpart F'' and inserting ``subpart B'',
and
(B) by striking ``section 5131(a)'' and inserting ``section
5111''.
(c) Effective Date.--The amendments made by this section
shall take effect on July 1, 2004, but shall not apply to
taxes imposed for periods before such date.

SEC. 5432. SUSPENSION OF LIMITATION ON RATE OF RUM EXCISE TAX
COVER OVER TO PUERTO RICO AND VIRGIN ISLANDS.

(a) In General.--Section 7652(f)(1) (relating to limitation
on cover over of tax on distilled spirits) is amended by
striking ``January 1, 2004'' and inserting ``October 1, 2004,
and $13.50 in the case of distilled spirits brought into the
United States after September 30, 2004, and before January 1,
2006''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to articles containing distilled spirits brought into
the United States after December 31, 2003.

[[Page S929]]

(2) Special rule.--
(A) In general.--After September 30, 2004, the treasury of
Puerto Rico shall make a Conservation Trust Fund transfer
within 30 days from the date of each cover over payment to
such treasury under section 7652(e) of the Internal Revenue
Code of 1986.
(B) Conservation trust fund transfer.--
(i) In general.--For purposes of this paragraph, the term
``Conservation Trust Fund transfer'' means a transfer to the
Puerto Rico Conservation Trust Fund of an amount equal to 50
cents per proof gallon of the taxes imposed under section
5001 or section 7652 of such Code on distilled spirits that
are covered over to the treasury of Puerto Rico under section
7652(e) of such Code.
(ii) Treatment of transfer.--Each Conservation Trust Fund
transfer shall be treated as principal for an endowment, the
income from which to be available for use by the Puerto Rico
Conservation Trust Fund for the purposes for which the Trust
Fund was established.
(iii) Result of nontransfer.--

(I) In general.--Upon notification by the Secretary of the
Interior that a Conservation Trust Fund transfer has not been
made by the treasury of Puerto Rico, the Secretary of the
Treasury shall, except as provided in subclause (II), deduct
and withhold from the next cover over payment to be made to
the treasury of Puerto Rico under section 7652(e) of such
Code an amount equal to the appropriate Conservation Trust
Fund transfer and interest thereon at the underpayment rate
established under section 6621 of such Code as of the due
date of such transfer. The Secretary of the Treasury shall
transfer such amount deducted and withheld, and the interest
thereon, directly to the Puerto Rico Conservation Trust Fund.
(II) Good cause exception.--If the Secretary of the
Interior finds, after consultation with the Governor of
Puerto Rico, that the failure by the treasury of Puerto Rico
to make a required transfer was for good cause, and notifies
the Secretary of the Treasury of the finding of such good
cause before the due date of the next cover over payment
following the notification of nontransfer, then the Secretary
of the Treasury shall not deduct the amount of such
nontransfer from any cover over payment.

(C) Puerto rico conservation trust fund.--For purposes of
this paragraph, the term ``Puerto Rico Conservation Trust
Fund'' means the fund established pursuant to a Memorandum of
Understanding between the United States Department of the
Interior and the Commonwealth of Puerto Rico, dated December
24, 1968.

PART V--SPORT EXCISE TAXES

SEC. 5441. CUSTOM GUNSMITHS.

(a) Small Manufacturers Exempt From Firearms Excise Tax.--
Section 4182 (relating to exemptions) is amended by
redesignating subsection (c) as subsection (d) and by
inserting after subsection (b) the following new subsection:
``(c) Small Manufacturers, Etc.--
``(1) In general.--The tax imposed by section 4181 shall
not apply to any article described in such section if
manufactured, produced, or imported by a person who
manufactures, produces, and imports less than 50 of such
articles during the calendar year.
``(2) Controlled groups.--All persons treated as a single
employer for purposes of subsection (a) or (b) of section 52
shall be treated as one person for purposes of paragraph
(1).''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to articles sold by the manufacturer, producer, or
importer on or after the date which is the first day of the
month beginning at least 2 weeks after the date of the
enactment of this Act.
(2) No inference.--Nothing in the amendments made by this
section shall be construed to create any inference with
respect to the proper tax treatment of any sales before the
effective date of such amendments.

SEC. 5442. MODIFIED TAXATION OF IMPORTED ARCHERY PRODUCTS.

(a) Bows.--Paragraph (1) of section 4161(b) (relating to
bows) is amended to read as follows:
``(1) Bows.--
``(A) In general.--There is hereby imposed on the sale by
the manufacturer, producer, or importer of any bow which has
a peak draw weight of 30 pounds or more, a tax equal to 11
percent of the price for which so sold.
``(B) Archery equipment.--There is hereby imposed on the
sale by the manufacturer, producer, or importer--
``(i) of any part or accessory suitable for inclusion in or
attachment to a bow described in subparagraph (A), and
``(ii) of any quiver or broadhead suitable for use with an
arrow described in paragraph (2),
a tax equal to 11 percent of the price for which so sold.''.
(b) Arrows.--Subsection (b) of section 4161 (relating to
bows and arrows, etc.) is amended by redesignating paragraph
(3) as paragraph (4) and inserting after paragraph (2) the
following:
``(3) Arrows.--
``(A) In general.--There is hereby imposed on the sale by
the manufacturer, producer, or importer of any arrow, a tax
equal to 12 percent of the price for which so sold.
``(B) Exception.--In the case of any arrow of which the
shaft or any other component has been previously taxed under
paragraph (1) or (2)--
``(i) section 6416(b)(3) shall not apply, and
``(ii) the tax imposed by subparagraph (A) shall be an
amount equal to the excess (if any) of--

``(I) the amount of tax imposed by this paragraph
(determined without regard to this subparagraph), over
``(II) the amount of tax paid with respect to the tax
imposed under paragraph (1) or (2) on such shaft or
component.

``(C) Arrow.--For purposes of this paragraph, the term
`arrow' means any shaft described in paragraph (2) to which
additional components are attached.''.
(c) Conforming Amendments.--Section 4161(b)(2) is amended--
(1) by inserting ``(other than broadheads)'' after
``point'', and
(2) by striking ``Arrows.--'' in the heading and inserting
``Arrow components.--''.
(d) Effective Date.--The amendments made by this section
shall apply to articles sold by the manufacturer, producer,
or importer after the date of the enactment of this Act.

SEC. 5443. TREATMENT OF TRIBAL GOVERNMENTS FOR PURPOSES OF
FEDERAL WAGERING EXCISE AND OCCUPATIONAL TAXES.

(a) In General.--Subsection (a) of section 7871 (relating
to Indian tribal governments treated as States for certain
purposes) is amended by striking ``and'' at the end of
paragraph (6), by striking the period at the end of paragraph
(7) and inserting ``; and'', and by adding at the end the
following new paragraph:
``(8) for purposes of chapter 35 (relating to taxes on
wagering).''.
(b) Effective Date.--The amendments made by this section
shall take effect on July 1, 2004, but shall not apply to
taxes imposed for periods before such date.

PART VI--OTHER PROVISIONS

SEC. 5451. INCOME TAX CREDIT FOR DISTILLED SPIRITS
WHOLESALERS AND FOR DISTILLED SPIRITS IN
CONTROL STATE BAILMENT WAREHOUSES FOR COSTS OF
CARRYING FEDERAL EXCISE TAXES ON BOTTLED
DISTILLED SPIRITS.

(a) In General.--Subpart A of part I of subchapter A of
chapter 51 (relating to gallonage and occupational taxes) is
amended by adding at the end the following new section:

``SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF CARRYING
EXCISE TAX.

``(a) In General.--For purposes of section 38, the amount
of the distilled spirits credit for any taxable year is the
amount equal to the product of--
``(1) in the case of--
``(A) any eligible wholesaler--
``(i) the number of cases of bottled distilled spirits--

``(I) which were bottled in the United States, and
``(II) which are purchased by such wholesaler during the
taxable year directly from the bottler of such spirits, or

``(B) any person which is subject to section 5005 and which
is not an eligible wholesaler, the number of cases of bottled
distilled spirits which are stored in a warehouse operated
by, or on behalf of, a State, or agency or political
subdivision thereof, on which title has not passed on an
unconditional sale basis, and
``(2) the average tax-financing cost per case for the most
recent calendar year ending before the beginning of such
taxable year.
``(b) Eligible Wholesaler.--For purposes of this section,
the term `eligible wholesaler' means any person which holds a
permit under the Federal Alcohol Administration Act as a
wholesaler of distilled spirits which is not a State, or
agency or political subdivision thereof.
``(c) Average Tax-Financing Cost.--
``(1) In general.--For purposes of this section, the
average tax-financing cost per case for any calendar year is
the amount of interest which would accrue at the deemed
financing rate during a 60-day period on an amount equal to
the deemed Federal excise tax per case.
``(2) Deemed financing rate.--For purposes of paragraph
(1), the deemed financing rate for any calendar year is the
average of the corporate overpayment rates under paragraph
(1) of section 6621(a) (determined without regard to the last
sentence of such paragraph) for calendar quarters of such
year.
``(3) Deemed federal excise tax per case.--For purposes of
paragraph (1), the deemed Federal excise tax per case is
$25.68.
``(d) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Case.--The term `case' means 12 80-proof 750
milliliter bottles.
``(2) Number of cases in lot.--The number of cases in any
lot of distilled spirits shall be determined by dividing the
number of liters in such lot by 9.''.
(b) Credit Treated as Part of General Business Credit.--
Section 38(b) (relating to current year business credit), as
amended by section 5103 of this Act, is amended by striking
``plus'' at the end of paragraph (15), by striking the period
at the end of paragraph (16) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(17) the distilled spirits credit determined under
section 5011(a).''.
(c) Conforming Amendments.--
(1) Section 39(d), as amended by section 5103 of this Act,
is amended by adding at the end the following new paragraph:
``(12) No carryback of section 5011 credit before effective
date.--No portion of the

[[Page S930]]

unused business credit for any taxable year which is
attributable to the credit determined under section 5011(a)
may be carried back to a taxable year beginning before the
date of the enactment of section 5011.''.
(2) The table of sections for subpart A of part I of
subchapter A of chapter 51 is amended by adding at the end
the following new item:

``Sec. 5011. Income tax credit for average cost of carrying excise
tax.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 5452. CREDIT FOR TAXPAYERS OWNING COMMERCIAL POWER
TAKEOFF VEHICLES.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits) is amended
by adding at the end the following new section:

``SEC. 45G. COMMERCIAL POWER TAKEOFF VEHICLES CREDIT.

``(a) General Rule.--For purposes of section 38, the amount
of the commercial power takeoff vehicles credit determined
under this section for the taxable year is $250 for each
qualified commercial power takeoff vehicle owned by the
taxpayer as of the close of the calendar year in which or
with which the taxable year of the taxpayer ends.
``(b) Definitions.--For purposes of this section--
``(1) Qualified commercial power takeoff vehicle.--The term
`qualified commercial power takeoff vehicle' means any
highway vehicle described in paragraph (2) which is propelled
by any fuel subject to tax under section 4041 or 4081 if such
vehicle is used in a trade or business or for the production
of income (and is licensed and insured for such use).
``(2) Highway vehicle described.--A highway vehicle is
described in this paragraph if such vehicle is--
``(A) designed to engage in the daily collection of refuse
or recyclables from homes or businesses and is equipped with
a mechanism under which the vehicle's propulsion engine
provides the power to operate a load compactor, or
``(B) designed to deliver ready mixed concrete on a daily
basis and is equipped with a mechanism under which the
vehicle's propulsion engine provides the power to operate a
mixer drum to agitate and mix the product en route to the
delivery site.
``(c) Exception for Vehicles Used by Governments, Etc.--No
credit shall be allowed under this section for any vehicle
owned by any person at the close of a calendar year if such
vehicle is used at any time during such year by--
``(1) the United States or an agency or instrumentality
thereof, a State, a political subdivision of a State, or an
agency or instrumentality of one or more States or political
subdivisions, or
``(2) an organization exempt from tax under section 501(a).
``(d) Termination.--This section shall not apply with
respect to any calendar year after 2006.''.
(b) Credit Treated as Part of General Business Credit.--
Section 38(b) (relating to current year business credit), as
amended by section 5451 of this Act, is amended by striking
``plus'' at the end of paragraph (16), by striking the period
at the end of paragraph (17) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(18) the commercial power takeoff vehicles credit under
section 45G(a).''.
(c) Conforming Amendments.--
(1) Section 39(d), as amended by section 5451 of this Act,
is amended by adding at the end the following new paragraph:
``(13) No carryback of section 45g credit before effective
date.--No portion of the unused business credit for any
taxable year which is attributable to the credit determined
under section 45G(a) may be carried back to a taxable year
beginning on or before the date of the enactment of section
45G.''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:

``Sec. 45G. Commercial power takeoff vehicles credit.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 5453. CREDIT FOR AUXILIARY POWER UNITS INSTALLED ON
DIESEL-POWERED TRUCKS.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits), as amended
by section 5452 of this Act, is amended by adding at the end
the following new section:

``SEC. 45H. AUXILIARY POWER UNIT CREDIT.

``(a) General Rule.--For purposes of section 38, the amount
of the auxiliary power unit credit determined under this
section for the taxable year is $250 for each qualified
auxiliary power unit--
``(1) purchased by the taxpayer, and
``(2) installed or caused to be installed by the taxpayer
on a qualified heavy-duty highway vehicle during such taxable
year.
``(b) Definitions.--For purposes of this section--
``(1) Qualified auxiliary power unit.--The term `qualified
auxiliary power unit' means any integrated system which--
``(A) provides heat, air conditioning, engine warming, and
electricity to the factory installed components on a
qualified heavy-duty highway vehicle as if the main drive
engine of such vehicle was in operation,
``(B) is employed to reduce long-term idling of the diesel
engine on such a vehicle, and
``(C) is certified by the Environmental Protection Agency
as meeting emission standards in regulations in effect on the
date of the enactment of this section.
``(2) Qualified heavy-duty highway vehicle.--The term
`qualified heavy-duty highway vehicle' means any highway
vehicle weighing more than 12,500 pounds and powered by a
diesel engine.
``(c) Termination.--This section shall not apply with
respect to any installation occurring after December 31,
2006.''.
(b) Credit Treated as Part of General Business Credit.--
Section 38(b) (relating to current year business credit), as
amended by section 5452 of this Act, is amended by striking
``plus'' at the end of paragraph (17), by striking the period
at the end of paragraph (18) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(19) the auxiliary power unit credit under section
45H(a).''.
(c) Conforming Amendments.--
(1) Section 39(d), as amended by section 5452 of this Act,
is amended by adding at the end the following new paragraph:
``(14) No carryback of section 45h credit before effective
date.--No portion of the unused business credit for any
taxable year which is attributable to the credit determined
under section 45H(a) may be carried back to a taxable year
beginning on or before the date of the enactment of section
45H.''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by section 5452 of this
Act, is amended by adding at the end the following new item:

``Sec. 45H. Auxiliary power unit credit.''.
(d) Effective Date.--The amendments made by this section
shall apply to auxiliary power units purchased and installed
for taxable years beginning after the date of the enactment
of this Act.

Subtitle F--Miscellaneous Provisions

SEC. 5501. MOTOR FUEL TAX ENFORCEMENT ADVISORY COMMISSION.

(a) Establishment.--There is established a Motor Fuel Tax
Enforcement Advisory Commission (in this section referred to
as the ``Commission'').
(b) Function.--The Commission shall--
(1) review motor fuel revenue collections, historical and
current;
(2) review the progress of investigations;
(3) develop and review legislative proposals with respect
to motor fuel taxes;
(4) monitor the progress of administrative regulation
projects relating to motor fuel taxes;
(5) review the results of Federal and State agency
cooperative efforts regarding motor fuel taxes;
(6) review the results of Federal interagency cooperative
efforts regarding motor fuel taxes; and
(7) evaluate and make recommendations regarding--
(A) the effectiveness of existing Federal enforcement
programs regarding motor fuel taxes,
(B) enforcement personnel allocation, and
(C) proposals for regulatory projects, legislation, and
funding.
(c) Membership.--
(1) Appointment.--The Commission shall be composed of the
following representatives appointed by the Chairmen and the
Ranking Members of the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives:
(A) At least 1 representative from each of the following
Federal entities: the Department of Homeland Security, the
Department of Transportation - Office of Inspector General,
the Federal Highway Administration, the Department of
Defense, and the Department of Justice.
(B) At least 1 representative from the Federation of State
Tax Administrators.
(C) At least 1 representative from any State department of
transportation.
(D) 2 representatives from the highway construction
industry.
(E) 5 representatives from industries relating to fuel
distribution -- refiners (2 representatives), distributors (1
representative), pipelines (1 representative), and terminal
operators (2 representatives).
(F) 1 representative from the retail fuel industry.
(G) 2 representatives from the staff of the Committee on
Finance of the Senate and 2 representatives from the staff of
the Committee on Ways and Means of the House of
Representatives.
(2) Terms.--Members shall be appointed for the life of the
Commission.
(3) Vacancies.--A vacancy in the Commission shall be filled
in the manner in which the original appointment was made.
(4) Travel expenses.--Members shall serve without pay but
shall receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of
title 5, United States Code.
(5) Chairman.--The Chairman of the Commission shall be
elected by the members.
(d) Funding.--Such sums as are necessary shall be available
from the Highway Trust fund for the expenses of the
Commission.
(e) Consultation.--Upon request of the Commission,
representatives of the Department of the Treasury and the
Internal Revenue Service shall be available for consultation
to assist the Commission in carrying out its duties under
this section.

[[Page S931]]

(f) Obtaining Data.--The Commission may secure directly
from any department or agency of the United States,
information (other than information required by any law to be
kept confidential by such department or agency) necessary for
the Commission to carry out its duties under this section.
Upon request of the Commission, the head of that department
or agency shall furnish such nonconfidential information to
the Commission. The Commission shall also gather evidence
through such means as it may deem appropriate, including
through holding hearings and soliciting comments by means of
Federal Register notices.
(g) Termination.--The Commission shall terminate after
September 30, 2009.

SEC. 5502. NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE
FINANCING COMMISSION.

(a) Establishment.--There is established a National Surface
Transportation Infrastructure Financing Commission (in this
section referred to as the ``Commission''). The Commission
shall hold its first meeting within 90 days of the
appointment of the eighth individual to be named to the
Commission.
(b) Function.--
(1) In general.--The Commission shall--
(A) make a thorough investigation and study of revenues
flowing into the Highway Trust Fund under current law,
including the individual components of the overall flow of
such revenues;
(B) consider whether the amount of such revenues is likely
to increase, decline, or remain unchanged, absent changes in
the law, particularly by taking into account the impact of
possible changes in public vehicular choice, fuel use, or
travel alternatives that could be expected to reduce or
increase revenues into the Highway Trust Fund;
(C) consider alternative approaches to generating revenues
for the Highway Trust Fund, and the level of revenues that
such alternatives would yield;
(D) consider highway and transit needs and whether
additional revenues into the Highway Trust Fund, or other
Federal revenues dedicated to highway and transit
infrastructure, would be required in order to meet such
needs; and
(E) study such other matters closely related to the
subjects described in the preceding subparagraphs as it may
deem appropriate.
(2) Time frame of investigation and study.--The time frame
to be considered by the Commission shall extend through the
year 2015.
(3) Preparation of report.--Based on such investigation and
study, the Commission shall develop a final report, with
recommendations and the bases for those recommendations,
indicating policies that should be adopted, or not adopted,
to achieve various levels of annual revenue for the Highway
Trust Fund and to enable the Highway Trust Fund to receive
revenues sufficient to meet highway and transit needs. Such
recommendations shall address, among other matters as the
Commission may deem appropriate--
(A) what levels of revenue are required by the Federal
Highway Trust Fund in order for it to meet needs to--
(i) maintain, and
(ii) improve the condition and performance of the Nation's
highway and transit systems;
(B) what levels of revenue are required by the Federal
Highway Trust Fund in order to ensure that Federal levels of
investment in highways and transit do not decline in real
terms; and
(C) the extent, if any, to which the Highway Trust Fund
should be augmented by other mechanisms or funds as a Federal
means of financing highway and transit infrastructure
investments.
(c) Membership.--
(1) Appointment.--The Commission shall be composed of 15
members, appointed as follows:
(A) 7 members appointed by the Secretary of Transportation,
in consultation with the Secretary of the Treasury.
(B) 2 members appointed by the Chairman of the Committee on
Ways and Means of the House of Representatives.
(C) 2 members appointed by the Ranking Minority Member of
the Committee on Ways and Means of the House of
Representatives.
(D) 2 members appointed by the Chairman of the Committee on
Finance of the Senate.
(E) 2 members appointed by the Ranking Minority Member of
the Committee on Finance of the Senate.
(2) Qualifications.--Members appointed pursuant to
paragraph (1) shall be appointed from among individuals
knowledgeable in the fields of public transportation finance
or highway and transit programs, policy, and needs, and may
include representatives of interested parties, such as State
and local governments or other public transportation
authorities or agencies, representatives of the
transportation construction industry (including suppliers of
technology, machinery and materials), transportation labor
(including construction and providers), transportation
providers, the financial community, and users of highway and
transit systems.
(3) Terms.--Members shall be appointed for the life of the
Commission.
(4) Vacancies.--A vacancy in the Commission shall be filled
in the manner in which the original appointment was made.
(5) Travel expenses.--Members shall serve without pay but
shall receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of
title 5, United States Code.
(6) Chairman.--The Chairman of the Commission shall be
elected by the members.
(d) Staff.--The Commission may appoint and fix the pay of
such personnel as it considers appropriate.
(e) Funding.--Funding for the Commission shall be provided
by the Secretary of the Treasury and by the Secretary of
Transportation, out of funds available to those agencies for
administrative and policy functions.
(f) Staff of Federal Agencies.--Upon request of the
Commission, the head of any department or agency of the
United States may detail any of the personnel of that
department or agency to the Commission to assist in carrying
out its duties under this section.
(g) Obtaining Data.--The Commission may secure directly
from any department or agency of the United States,
information (other than information required by any law to be
kept confidential by such department or agency) necessary for
the Commission to carry out its duties under this section.
Upon request of the Commission, the head of that department
or agency shall furnish such nonconfidential information to
the Commission. The Commission shall also gather evidence
through such means as it may deem appropriate, including
through holding hearings and soliciting comments by means of
Federal Register notices.
(h) Report.--Not later than 2 years after the date of its
first meeting, the Commission shall transmit its final
report, including recommendations, to the Secretary of
Transportation, the Secretary of the Treasury, and the
Committee on Ways and Means of the House of Representatives,
the Committee on Finance of the Senate, the Committee on
Transportation and Infrastructure of the House of
Representatives, the Committee on Environment and Public
Works of the Senate, and the Committee on Banking, Housing,
and Urban Affairs of the Senate.
(i) Termination.--The Commission shall terminate on the
180th day following the date of transmittal of the report
under subsection (h). All records and papers of the
Commission shall thereupon be delivered to the Administrator
of General Services for deposit in the National Archives.

SEC. 5503. TREASURY STUDY OF FUEL TAX COMPLIANCE AND
INTERAGENCY COOPERATION.

(a) In General.--Not later than January 31, 2006, the
Secretary of the Treasury shall submit to the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives a report regarding fuel tax
enforcement which shall include the information and analysis
specified in subsections (b) and (c) and any other
information and recommendations the Secretary of the Treasury
may deem appropriate.
(b) Audits.--With respect to audits conducted by the
Internal Revenue Service, the report required under
subsection (a) shall include--
(1) the number and geographic distribution of audits
conducted annually, by fiscal year, between October 1, 2001,
and September 30, 2005;
(2) the total volume involved for each of the taxable fuels
covered by such audits and a comparison to the annual
production of such fuels;
(3) the staff hours and number of personnel devoted to the
audits per year; and
(4) the results of such audits by year, including total tax
collected, total penalties collected, and number of referrals
for criminal prosecution.
(c) Enforcement Activities.--With respect to enforcement
activities, the report required under subsection (a) shall
include--
(1) the number and geographic distribution of criminal
investigations and prosecutions annually, by fiscal year,
between October 1, 2001, and September 30, 2005, and the
results of such investigations and prosecutions;
(2) to the extent such investigations and prosecutions
involved other agencies, State or Federal, a breakdown by
agency of the number of joint investigations involved;
(3) an assessment of the effectiveness of joint action and
cooperation between the Department of the Treasury and other
Federal and State agencies, including a discussion of the
ability and need to share information across agencies for
both civil and criminal Federal tax enforcement and
enforcement of State or Federal laws relating to fuels;
(4) the staff hours and number of personnel devoted to
criminal investigations and prosecutions per year;
(5) the staff hours and number of personnel devoted to
administrative collection of fuel taxes; and
(6) the results of administrative collection efforts
annually, by fiscal year, between October 1, 2001, and
September 30, 2005.

SEC. 5504. EXPANSION OF HIGHWAY TRUST FUND EXPENDITURE
PURPOSES TO INCLUDE FUNDING FOR STUDIES OF
SUPPLEMENTAL OR ALTERNATIVE FINANCING FOR THE
HIGHWAY TRUST FUND.

(a) In General.--From amounts available in the Highway
Trust Fund, there is authorized to be expended for 2
comprehensive studies of supplemental or alternative funding
sources for the Highway Trust Fund--
(1) $1,000,000 to the Western Transportation Institute of
the College of Engineering at Montana State University for
the study and report described in subsection (b), and
(2) $16,500,000 to the Public Policy Center of the
University of Iowa for the study and report described in
subsection (c).

[[Page S932]]

(b) Study of Funding Mechanisms.--Not later than December
31, 2006, the Western Transportation Institute of the College
of Engineering at Montana State University shall report to
the Secretary of the Treasury and the Secretary of
Transportation on a study of highway funding mechanisms of
other industrialized nations, an examination of the viability
of alternative funding proposals, including congestion
pricing, greater reliance on tolls, privatization of
facilities, and bonding for construction of added capacity,
and an examination of increasing the rates of motor fuels
taxes in effect on the date of the enactment of this Act,
including the indexation of such rates.
(c) Study on Field Test of On-Board Computer Assessment of
Highway Use Taxes.--Not later than December 31, 2011, the
Public Policy Center of the University of Iowa shall direct,
analyze, and report to the Secretary of the Treasury and the
Secretary of Transportation on a long-term field test of an
approach to assessing highway use taxes based upon actual
mileage driven by a specific vehicle on specific types of
highways by use of an on-board computer--
(1) which is linked to satellites to calculate highway
mileage traversed,
(2) which computes the appropriate highway use tax for each
of the Federal, State, and local governments as the vehicle
makes use of the highways, and
(3) the data from which is periodically downloaded by the
vehicle owner to a collection center for an assessment of
highway use taxes due in each jurisdiction traversed.The
components of the field test shall include 2 years for
preparation, including selection of vendors and test
participants, and 3-year testing period.

SEC. 5505. TREASURY STUDY OF HIGHWAY FUELS USED BY TRUCKS FOR
NON-TRANSPORTATION PURPOSES.

(a) Study.--The Secretary of the Treasury shall conduct a
study regarding the use of highway motor fuel by trucks that
is not used for the propulsion of the vehicle. As part of
such study--
(1) in the case of vehicles carrying equipment that is
unrelated to the transportation function of the vehicle--
(A) the Secretary of the Treasury, in consultation with the
Secretary of Transportation, and with public notice and
comment, shall determine the average annual amount of tax
paid fuel consumed per vehicle, by type of vehicle, used by
the propulsion engine to provide the power to operate the
equipment attached to the highway vehicle, and
(B) the Secretary of the Treasury shall review the
technical and administrative feasibility of exempting such
nonpropulsive use of highway fuels for the highway motor
fuels excise taxes,
(2) in the case where non-transportation equipment is run
by a separate motor--
(A) the Secretary of the Treasury shall determine the
annual average amount of fuel exempted from tax in the use of
such equipment by equipment type, and
(B) the Secretary of the Treasury shall review issues of
administration and compliance related to the present-law
exemption provided for such fuel use, and
(3) the Secretary of the Treasury shall--
(A) estimate the amount of taxable fuel consumed by trucks
and the emissions of various pollutants due to the long-term
idling of diesel engines, and
(B) determine the cost of reducing such long-term idling
through the use of plug-ins at truck stops, auxiliary power
units, or other technologies.
(b) Report.--Not later than January 1, 2006, the Secretary
of the Treasury shall report the findings of the study
required under subsection (a) to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives.

SEC. 5506. DELTA REGIONAL TRANSPORTATION PLAN.

(a) Study.--The Delta Regional Authority shall conduct a
study of the transportation assets and needs in the States of
Alabama, Arkansas, Illinois, Kentucky, Louisiana,
Mississippi, Missouri, and Tennessee which comprise the Delta
region.
(b) Regional Strategic Transportation Plan.--Upon
completion of the study required under subsection (a), the
Delta Regional Authority shall establish a regional strategic
transportation plan to achieve efficient transportation
systems in the Delta region. In developing the regional
strategic transportation plan, the Delta Regional Authority
shall consult with local planning and development districts,
local and regional governments, metropolitan planning
organizations, State transportation entities, and Federal
transportation agencies.
(c) Elements of Study and Plan.--The study and plan under
this section shall include the following transportation modes
and systems: transit, rail, highway, interstate, bridges,
air, airports, waterways and ports.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Delta Regional Authority $1,000,000
to carry out the purposes of this section, to remain
available until expended.

SEC. 5507. TREATMENT OF EMPLOYER-PROVIDED TRANSIT AND VAN
POOLING BENEFITS.

(a) In General.--Subparagraph (A) of section 132(f)(2)
(relating to limitation on exclusion) is amended by striking
``$100'' and inserting ``$120''.
(b) Inflation Adjustment Conforming Amendments.--The last
sentence of section 132(f)(6)(A) (relating to inflation
adjustment) is amended--
(1) by striking ``2002'' and inserting ``2005'', and
(2) by striking ``2001'' and inserting ``2004''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2004.

SEC. 5508. STUDY OF INCENTIVES FOR PRODUCTION OF BIODIESEL.

(a) Study.--The General Comptroller of the United States
shall conduct a study related to biodiesel fuels and the tax
credit for biodiesel fuels established under this Act. Such
study shall include--
(1) an assessment on whether such credit provides
sufficient assistance to the producers of biodiesel fuel to
establish the fuel as a viable energy alternative in the
current market place,
(2) an assessment on how long such credit or similar
subsidy would have to remain in effect before biodiesel fuel
can compete in the market place without such assistance,
(3) a cost-benefit analysis of such credit, comparing the
cost of the credit in forgone revenue to the benefits of
lower fuel costs for consumers, increased profitability for
the biodiesel industry, increased farm income, reduced
program outlays from the Department of Agriculture, and the
improved environmental conditions through the use of
biodiesel fuel, and
(4) an assessment on whether such credit results in any
unintended consequences for unrelated industries, including
the impact, if any, on the glycerin market.
(b) Report.--Not later than 2 years after the date of the
enactment of this Act, the Comptroller General of the United
States shall report the findings of the study required under
subsection (a) to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives.

Subtitle G--Revenue Offsets

PART I--LIMITATION ON EXPENSING CERTAIN PASSENGER AUTOMOBILES

SEC. 5601. EXPANSION OF LIMITATION ON DEPRECIATION OF CERTAIN
PASSENGER AUTOMOBILES.

(a) In General.--Section 179(b) (relating to limitations)
is amended by adding at the end the following new paragraph:
``(6) Limitation on cost taken into account for certain
passenger vehicles.--
``(A) In general.--The cost of any sport utility vehicle
for any taxable year which may be taken into account under
this section shall not exceed $25,000.
``(B) Sport utility vehicle.--For purposes of subparagraph
(A)--
``(i) In general.--The term `sport utility vehicle' means
any 4-wheeled vehicle which--

``(I) is manufactured primarily for use on public streets,
roads, and highways,
``(II) is not subject to section 280F, and
``(III) is rated at not more than 14,000 pounds gross
vehicle weight.

``(ii) Certain vehicles excluded.--Such term does not
include any vehicle which--

``(I) does not have the primary load carrying device or
container attached,
``(II) has a seating capacity of more than 12 individuals,
``(III) is designed for more than 9 individuals in seating
rearward of the driver's seat,
``(IV) is equipped with an open cargo area, or a covered
box not readily accessible from the passenger compartment, of
at least 72.0 inches in interior length, or
``(V) has an integral enclosure, fully enclosing the driver
compartment and load carrying device, does not have seating
rearward of the driver's seat, and has no body section
protruding more than 30 inches ahead of the leading edge of
the windshield.''.

(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after February 2,
2004.

PART II--PROVISIONS DESIGNED TO CURTAIL TAX SHELTERS

SEC. 5611. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

(a) In General.--Section 7701 is amended by redesignating
subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:
``(n) Clarification of Economic Substance Doctrine; Etc.--
``(1) General rules.--
``(A) In general.--In any case in which a court determines
that the economic substance doctrine is relevant for purposes
of this title to a transaction (or series of transactions),
such transaction (or series of transactions) shall have
economic substance only if the requirements of this paragraph
are met.
``(B) Definition of economic substance.--For purposes of
subparagraph (A)--
``(i) In general.--A transaction has economic substance
only if--

``(I) the transaction changes in a meaningful way (apart
from Federal tax effects) the taxpayer's economic position,
and
``(II) the taxpayer has a substantial nontax purpose for
entering into such transaction and the transaction is a
reasonable means of accomplishing such purpose.

In applying subclause (II), a purpose of achieving a
financial accounting benefit shall not be taken into account
in determining whether a transaction has a substantial nontax
purpose if the origin of such financial accounting benefit is
a reduction of income tax.
``(ii) Special rule where taxpayer relies on profit
potential.--A transaction shall

[[Page S933]]

not be treated as having economic substance by reason of
having a potential for profit unless--

``(I) the present value of the reasonably expected pre-tax
profit from the transaction is substantial in relation to the
present value of the expected net tax benefits that would be
allowed if the transaction were respected, and
``(II) the reasonably expected pre-tax profit from the
transaction exceeds a risk-free rate of return.

``(C) Treatment of fees and foreign taxes.--Fees and other
transaction expenses and foreign taxes shall be taken into
account as expenses in determining pre-tax profit under
subparagraph (B)(ii).
``(2) Special rules for transactions with tax-indifferent
parties.--
``(A) Special rules for financing transactions.--The form
of a transaction which is in substance the borrowing of money
or the acquisition of financial capital directly or
indirectly from a tax-indifferent party shall not be
respected if the present value of the deductions to be
claimed with respect to the transaction is substantially in
excess of the present value of the anticipated economic
returns of the person lending the money or providing the
financial capital. A public offering shall be treated as a
borrowing, or an acquisition of financial capital, from a
tax-indifferent party if it is reasonably expected that at
least 50 percent of the offering will be placed with tax-
indifferent parties.
``(B) Artificial income shifting and basis adjustments.--
The form of a transaction with a tax-indifferent party shall
not be respected if--
``(i) it results in an allocation of income or gain to the
tax-indifferent party in excess of such party's economic
income or gain, or
``(ii) it results in a basis adjustment or shifting of
basis on account of overstating the income or gain of the
tax-indifferent party.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Economic substance doctrine.--The term `economic
substance doctrine' means the common law doctrine under which
tax benefits under subtitle A with respect to a transaction
are not allowable if the transaction does not have economic
substance or lacks a business purpose.
``(B) Tax-indifferent party.--The term `tax-indifferent
party' means any person or entity not subject to tax imposed
by subtitle A. A person shall be treated as a tax-indifferent
party with respect to a transaction if the items taken into
account with respect to the transaction have no substantial
impact on such person's liability under subtitle A.
``(C) Exception for personal transactions of individuals.--
In the case of an individual, this subsection shall apply
only to transactions entered into in connection with a trade
or business or an activity engaged in for the production of
income.
``(D) Treatment of lessors.--In applying paragraph
(1)(B)(ii) to the lessor of tangible property subject to a
lease--
``(i) the expected net tax benefits with respect to the
leased property shall not include the benefits of--

``(I) depreciation,
``(II) any tax credit, or
``(III) any other deduction as provided in guidance by the
Secretary, and

``(ii) subclause (II) of paragraph (1)(B)(ii) shall be
disregarded in determining whether any of such benefits are
allowable.
``(4) Other common law doctrines not affected.--Except as
specifically provided in this subsection, the provisions of
this subsection shall not be construed as altering or
supplanting any other rule of law, and the requirements of
this subsection shall be construed as being in addition to
any such other rule of law.
``(5) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this subsection. Such regulations may include
exemptions from the application of this subsection.''.
(b) Effective Date.--The amendments made by this section
shall apply to transactions entered into after February 2,
2004.

SEC. 5612. PENALTY FOR FAILING TO DISCLOSE REPORTABLE
TRANSACTION.

(a) In General.--Part I of subchapter B of chapter 68
(relating to assessable penalties) is amended by inserting
after section 6707 the following new section:

``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE REPORTABLE
TRANSACTION INFORMATION WITH RETURN OR
STATEMENT.

``(a) Imposition of Penalty.--Any person who fails to
include on any return or statement any information with
respect to a reportable transaction which is required under
section 6011 to be included with such return or statement
shall pay a penalty in the amount determined under subsection
(b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the amount of the penalty under subsection (a) shall be
$50,000.
``(2) Listed transaction.--The amount of the penalty under
subsection (a) with respect to a listed transaction shall be
$100,000.
``(3) Increase in penalty for large entities and high net
worth individuals.--
``(A) In general.--In the case of a failure under
subsection (a) by--
``(i) a large entity, or
``(ii) a high net worth individual,
the penalty under paragraph (1) or (2) shall be twice the
amount determined without regard to this paragraph.
``(B) Large entity.--For purposes of subparagraph (A), the
term `large entity' means, with respect to any taxable year,
a person (other than a natural person) with gross receipts in
excess of $10,000,000 for the taxable year in which the
reportable transaction occurs or the preceding taxable year.
Rules similar to the rules of paragraph (2) and subparagraphs
(B), (C), and (D) of paragraph (3) of section 448(c) shall
apply for purposes of this subparagraph.
``(C) High net worth individual.--For purposes of
subparagraph (A), the term `high net worth individual' means,
with respect to a reportable transaction, a natural person
whose net worth exceeds $2,000,000 immediately before the
transaction.
``(c) Definitions.--For purposes of this section--
``(1) Reportable transaction.--The term `reportable
transaction' means any transaction with respect to which
information is required to be included with a return or
statement because, as determined under regulations prescribed
under section 6011, such transaction is of a type which the
Secretary determines as having a potential for tax avoidance
or evasion.
``(2) Listed transaction.--Except as provided in
regulations, the term `listed transaction' means a reportable
transaction which is the same as, or substantially similar
to, a transaction specifically identified by the Secretary as
a tax avoidance transaction for purposes of section 6011.
``(d) Authority To Rescind Penalty.--
``(1) In general.--The Commissioner of Internal Revenue may
rescind all or any portion of any penalty imposed by this
section with respect to any violation if--
``(A) the violation is with respect to a reportable
transaction other than a listed transaction,
``(B) the person on whom the penalty is imposed has a
history of complying with the requirements of this title,
``(C) it is shown that the violation is due to an
unintentional mistake of fact;
``(D) imposing the penalty would be against equity and good
conscience, and
``(E) rescinding the penalty would promote compliance with
the requirements of this title and effective tax
administration.
``(2) Discretion.--The exercise of authority under
paragraph (1) shall be at the sole discretion of the
Commissioner and may be delegated only to the head of the
Office of Tax Shelter Analysis. The Commissioner, in the
Commissioner's sole discretion, may establish a procedure to
determine if a penalty should be referred to the Commissioner
or the head of such Office for a determination under
paragraph (1).
``(3) No appeal.--Notwithstanding any other provision of
law, any determination under this subsection may not be
reviewed in any administrative or judicial proceeding.
``(4) Records.--If a penalty is rescinded under paragraph
(1), the Commissioner shall place in the file in the Office
of the Commissioner the opinion of the Commissioner or the
head of the Office of Tax Shelter Analysis with respect to
the determination, including--
``(A) the facts and circumstances of the transaction,
``(B) the reasons for the rescission, and
``(C) the amount of the penalty rescinded.
``(5) Report.--The Commissioner shall each year report to
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate--
``(A) a summary of the total number and aggregate amount of
penalties imposed, and rescinded, under this section, and
``(B) a description of each penalty rescinded under this
subsection and the reasons therefor.
``(e) Penalty Reported to SEC.--In the case of a person--
``(1) which is required to file periodic reports under
section 13 or 15(d) of the Securities Exchange Act of 1934 or
is required to be consolidated with another person for
purposes of such reports, and
``(2) which--
``(A) is required to pay a penalty under this section with
respect to a listed transaction,
``(B) is required to pay a penalty under section 6662A with
respect to any reportable transaction at a rate prescribed
under section 6662A(c), or
``(C) is required to pay a penalty under section 6662B with
respect to any noneconomic substance transaction,
the requirement to pay such penalty shall be disclosed in
such reports filed by such person for such periods as the
Secretary shall specify. Failure to make a disclosure in
accordance with the preceding sentence shall be treated as a
failure to which the penalty under subsection (b)(2) applies.
``(f) Coordination With Other Penalties.--The penalty
imposed by this section is in addition to any penalty imposed
under this title.''.
(b) Conforming Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by inserting after
the item relating to section 6707 the following:

``Sec. 6707A. Penalty for failure to include reportable transaction
information with return or statement.''.
(c) Effective Date.--The amendments made by this section
shall apply to returns and statements the due date for which
is after the date of the enactment of this Act.

[[Page S934]]

SEC. 5613. ACCURACY-RELATED PENALTY FOR LISTED TRANSACTIONS
AND OTHER REPORTABLE TRANSACTIONS HAVING A
SIGNIFICANT TAX AVOIDANCE PURPOSE.

(a) In General.--Subchapter A of chapter 68 is amended by
inserting after section 6662 the following new section:

``SEC. 6662A. IMPOSITION OF ACCURACY-RELATED PENALTY ON
UNDERSTATEMENTS WITH RESPECT TO REPORTABLE
TRANSACTIONS.

``(a) Imposition of Penalty.--If a taxpayer has a
reportable transaction understatement for any taxable year,
there shall be added to the tax an amount equal to 20 percent
of the amount of such understatement.
``(b) Reportable Transaction Understatement.--For purposes
of this section--
``(1) In general.--The term `reportable transaction
understatement' means the sum of--
``(A) the product of--
``(i) the amount of the increase (if any) in taxable income
which results from a difference between the proper tax
treatment of an item to which this section applies and the
taxpayer's treatment of such item (as shown on the taxpayer's
return of tax), and
``(ii) the highest rate of tax imposed by section 1
(section 11 in the case of a taxpayer which is a
corporation), and
``(B) the amount of the decrease (if any) in the aggregate
amount of credits determined under subtitle A which results
from a difference between the taxpayer's treatment of an item
to which this section applies (as shown on the taxpayer's
return of tax) and the proper tax treatment of such item.
For purposes of subparagraph (A), any reduction of the excess
of deductions allowed for the taxable year over gross income
for such year, and any reduction in the amount of capital
losses which would (without regard to section 1211) be
allowed for such year, shall be treated as an increase in
taxable income.
``(2) Items to which section applies.--This section shall
apply to any item which is attributable to--
``(A) any listed transaction, and
``(B) any reportable transaction (other than a listed
transaction) if a significant purpose of such transaction is
the avoidance or evasion of Federal income tax.
``(c) Higher Penalty for Nondisclosed Listed and Other
Avoidance Transactions.--
``(1) In general.--Subsection (a) shall be applied by
substituting `30 percent' for `20 percent' with respect to
the portion of any reportable transaction understatement with
respect to which the requirement of section 6664(d)(2)(A) is
not met.
``(2) Rules applicable to assertion and compromise of
penalty.--
``(A) In general.--Only upon the approval by the Chief
Counsel for the Internal Revenue Service or the Chief
Counsel's delegate at the national office of the Internal
Revenue Service may a penalty to which paragraph (1) applies
be included in a 1st letter of proposed deficiency which
allows the taxpayer an opportunity for administrative review
in the Internal Revenue Service Office of Appeals. If such a
letter is provided to the taxpayer, only the Commissioner of
Internal Revenue may compromise all or any portion of such
penalty.
``(B) Applicable rules.--The rules of paragraphs (2), (3),
(4), and (5) of section 6707A(d) shall apply for purposes of
subparagraph (A).
``(d) Definitions of Reportable and Listed Transactions.--
For purposes of this section, the terms `reportable
transaction' and `listed transaction' have the respective
meanings given to such terms by section 6707A(c).
``(e) Special Rules.--
``(1) Coordination with penalties, etc., on other
understatements.--In the case of an understatement (as
defined in section 6662(d)(2))--
``(A) the amount of such understatement (determined without
regard to this paragraph) shall be increased by the aggregate
amount of reportable transaction understatements and
noneconomic substance transaction understatements for
purposes of determining whether such understatement is a
substantial understatement under section 6662(d)(1), and
``(B) the addition to tax under section 6662(a) shall apply
only to the excess of the amount of the substantial
understatement (if any) after the application of subparagraph
(A) over the aggregate amount of reportable transaction
understatements and noneconomic substance transaction
understatements.
``(2) Coordination with other penalties.--
``(A) Application of fraud penalty.--References to an
underpayment in section 6663 shall be treated as including
references to a reportable transaction understatement and a
noneconomic substance transaction understatement.
``(B) No double penalty.--This section shall not apply to
any portion of an understatement on which a penalty is
imposed under section 6662B or 6663.
``(3) Special rule for amended returns.--Except as provided
in regulations, in no event shall any tax treatment included
with an amendment or supplement to a return of tax be taken
into account in determining the amount of any reportable
transaction understatement or noneconomic substance
transaction understatement if the amendment or supplement is
filed after the earlier of the date the taxpayer is first
contacted by the Secretary regarding the examination of the
return or such other date as is specified by the Secretary.
``(4) Noneconomic substance transaction understatement.--
For purposes of this subsection, the term `noneconomic
substance transaction understatement' has the meaning given
such term by section 6662B(c).
``(5) Cross reference.--

``For reporting of section 6662A(c) penalty to the Securities and
Exchange Commission, see section 6707A(e).''.
(b) Determination of Other Understatements.--Subparagraph
(A) of section 6662(d)(2) is amended by adding at the end the
following flush sentence:
``The excess under the preceding sentence shall be determined
without regard to items to which section 6662A applies and
without regard to items with respect to which a penalty is
imposed by section 6662B.''.
(c) Reasonable Cause Exception.--
(1) In general.--Section 6664 is amended by adding at the
end the following new subsection:
``(d) Reasonable Cause Exception for Reportable Transaction
Understatements.--
``(1) In general.--No penalty shall be imposed under
section 6662A with respect to any portion of a reportable
transaction understatement if it is shown that there was a
reasonable cause for such portion and that the taxpayer acted
in good faith with respect to such portion.
``(2) Special rules.--Paragraph (1) shall not apply to any
reportable transaction understatement unless--
``(A) the relevant facts affecting the tax treatment of the
item are adequately disclosed in accordance with the
regulations prescribed under section 6011,
``(B) there is or was substantial authority for such
treatment, and
``(C) the taxpayer reasonably believed that such treatment
was more likely than not the proper treatment.
A taxpayer failing to adequately disclose in accordance with
section 6011 shall be treated as meeting the requirements of
subparagraph (A) if the penalty for such failure was
rescinded under section 6707A(d).
``(3) Rules relating to reasonable belief.--For purposes of
paragraph (2)(C)--
``(A) In general.--A taxpayer shall be treated as having a
reasonable belief with respect to the tax treatment of an
item only if such belief--
``(i) is based on the facts and law that exist at the time
the return of tax which includes such tax treatment is filed,
and
``(ii) relates solely to the taxpayer's chances of success
on the merits of such treatment and does not take into
account the possibility that a return will not be audited,
such treatment will not be raised on audit, or such treatment
will be resolved through settlement if it is raised.
``(B) Certain opinions may not be relied upon.--
``(i) In general.--An opinion of a tax advisor may not be
relied upon to establish the reasonable belief of a taxpayer
if--

``(I) the tax advisor is described in clause (ii), or
``(II) the opinion is described in clause (iii).

``(ii) Disqualified tax advisors.--A tax advisor is
described in this clause if the tax advisor--

``(I) is a material advisor (within the meaning of section
6111(b)(1)) who participates in the organization, management,
promotion, or sale of the transaction or who is related
(within the meaning of section 267(b) or 707(b)(1)) to any
person who so participates,
``(II) is compensated directly or indirectly by a material
advisor with respect to the transaction,
``(III) has a fee arrangement with respect to the
transaction which is contingent on all or part of the
intended tax benefits from the transaction being sustained,
or
``(IV) as determined under regulations prescribed by the
Secretary, has a disqualifying financial interest with
respect to the transaction.

``(iii) Disqualified opinions.--For purposes of clause (i),
an opinion is disqualified if the opinion--

``(I) is based on unreasonable factual or legal assumptions
(including assumptions as to future events),
``(II) unreasonably relies on representations, statements,
findings, or agreements of the taxpayer or any other person,
``(III) does not identify and consider all relevant facts,
or
``(IV) fails to meet any other requirement as the Secretary
may prescribe.''.

(2) Conforming amendment.--The heading for subsection (c)
of section 6664 is amended by inserting ``for Underpayments''
after ``Exception''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 461(i)(3) is amended by
striking ``section 6662(d)(2)(C)(iii)'' and inserting
``section 1274(b)(3)(C)''.
(2) Paragraph (3) of section 1274(b) is amended--
(A) by striking ``(as defined in section
6662(d)(2)(C)(iii))'' in subparagraph (B)(i), and
(B) by adding at the end the following new subparagraph:
``(C) Tax shelter.--For purposes of subparagraph (B), the
term `tax shelter' means--
``(i) a partnership or other entity,
``(ii) any investment plan or arrangement, or
``(iii) any other plan or arrangement,

[[Page S935]]

if a significant purpose of such partnership, entity, plan,
or arrangement is the avoidance or evasion of Federal income
tax.''.
(3) Section 6662(d)(2) is amended by striking subparagraphs
(C) and (D).
(4) Section 6664(c)(1) is amended by striking ``this part''
and inserting ``section 6662 or 6663''.
(5) Subsection (b) of section 7525 is amended by striking
``section 6662(d)(2)(C)(iii)'' and inserting ``section
1274(b)(3)(C)''.
(6)(A) The heading for section 6662 is amended to read as
follows:

``SEC. 6662. IMPOSITION OF ACCURACY-RELATED PENALTY ON
UNDERPAYMENTS.''.

(B) The table of sections for part II of subchapter A of
chapter 68 is amended by striking the item relating to
section 6662 and inserting the following new items:

``Sec. 6662. Imposition of accuracy-related penalty on underpayments.
``Sec. 6662A. Imposition of accuracy-related penalty on understatements
with respect to reportable transactions.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.

SEC. 5614. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO
TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

(a) In General.--Subchapter A of chapter 68 is amended by
inserting after section 6662A the following new section:

``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO
TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

``(a) Imposition of Penalty.--If a taxpayer has an
noneconomic substance transaction understatement for any
taxable year, there shall be added to the tax an amount equal
to 40 percent of the amount of such understatement.
``(b) Reduction of Penalty for Disclosed Transactions.--
Subsection (a) shall be applied by substituting `20 percent'
for `40 percent' with respect to the portion of any
noneconomic substance transaction understatement with respect
to which the relevant facts affecting the tax treatment of
the item are adequately disclosed in the return or a
statement attached to the return.
``(c) Noneconomic Substance Transaction Understatement.--
For purposes of this section--
``(1) In general.--The term `noneconomic substance
transaction understatement' means any amount which would be
an understatement under section 6662A(b)(1) if section 6662A
were applied by taking into account items attributable to
noneconomic substance transactions rather than items to which
section 6662A would apply without regard to this paragraph.
``(2) Noneconomic substance transaction.--The term
`noneconomic substance transaction' means any transaction
if--
``(A) there is a lack of economic substance (within the
meaning of section 7701(n)(1)) for the transaction giving
rise to the claimed benefit or the transaction was not
respected under section 7701(n)(2), or
``(B) the transaction fails to meet the requirements of any
similar rule of law.
``(d) Rules Applicable To Compromise of Penalty.--
``(1) In general.--If the 1st letter of proposed deficiency
which allows the taxpayer an opportunity for administrative
review in the Internal Revenue Service Office of Appeals has
been sent with respect to a penalty to which this section
applies, only the Commissioner of Internal Revenue may
compromise all or any portion of such penalty.
``(2) Applicable rules.--The rules of paragraphs (2), (3),
(4), and (5) of section 6707A(d) shall apply for purposes of
paragraph (1).
``(e) Coordination With Other Penalties.--Except as
otherwise provided in this part, the penalty imposed by this
section shall be in addition to any other penalty imposed by
this title.
``(f) Cross References.--

``(1) For coordination of penalty with understatements under section
6662 and other special rules, see section 6662A(e).
``(2) For reporting of penalty imposed under this section to the
Securities and Exchange Commission, see section 6707A(e).''.
(b) Clerical Amendment.--The table of sections for part II
of subchapter A of chapter 68 is amended by inserting after
the item relating to section 6662A the following new item:

``Sec. 6662B. Penalty for understatements attributable to transactions
lacking economic substance, etc.''.
(c) Effective Date.--The amendments made by this section
shall apply to transactions entered into after February 2,
2004.

SEC. 5615. MODIFICATIONS OF SUBSTANTIAL UNDERSTATEMENT
PENALTY FOR NONREPORTABLE TRANSACTIONS.

(a) Substantial Understatement of Corporations.--Section
6662(d)(1)(B) (relating to special rule for corporations) is
amended to read as follows:
``(B) Special rule for corporations.--In the case of a
corporation other than an S corporation or a personal holding
company (as defined in section 542), there is a substantial
understatement of income tax for any taxable year if the
amount of the understatement for the taxable year exceeds the
lesser of--
``(i) 10 percent of the tax required to be shown on the
return for the taxable year (or, if greater, $10,000), or
``(ii) $10,000,000.''.
(b) Reduction for Understatement of Taxpayer Due to
Position of Taxpayer or Disclosed Item.--
(1) In general.--Section 6662(d)(2)(B)(i) (relating to
substantial authority) is amended to read as follows:
``(i) the tax treatment of any item by the taxpayer if the
taxpayer had reasonable belief that the tax treatment was
more likely than not the proper treatment, or''.
(2) Conforming amendment.--Section 6662(d) is amended by
adding at the end the following new paragraph:
``(3) Secretarial list.--For purposes of this subsection,
section 6664(d)(2), and section 6694(a)(1), the Secretary may
prescribe a list of positions for which the Secretary
believes there is not substantial authority or there is no
reasonable belief that the tax treatment is more likely than
not the proper tax treatment. Such list (and any revisions
thereof) shall be published in the Federal Register or the
Internal Revenue Bulletin.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 5616. TAX SHELTER EXCEPTION TO CONFIDENTIALITY
PRIVILEGES RELATING TO TAXPAYER COMMUNICATIONS.

(a) In General.--Section 7525(b) (relating to section not
to apply to communications regarding corporate tax shelters)
is amended to read as follows:
``(b) Section Not To Apply to Communications Regarding Tax
Shelters.--The privilege under subsection (a) shall not apply
to any written communication which is--
``(1) between a federally authorized tax practitioner and--
``(A) any person,
``(B) any director, officer, employee, agent, or
representative of the person, or
``(C) any other person holding a capital or profits
interest in the person, and
``(2) in connection with the promotion of the direct or
indirect participation of the person in any tax shelter (as
defined in section 1274(b)(3)(C)).''.
(b) Effective Date.--The amendment made by this section
shall apply to communications made on or after the date of
the enactment of this Act.

SEC. 5617. DISCLOSURE OF REPORTABLE TRANSACTIONS.

(a) In General.--Section 6111 (relating to registration of
tax shelters) is amended to read as follows:

``SEC. 6111. DISCLOSURE OF REPORTABLE TRANSACTIONS.

``(a) In General.--Each material advisor with respect to
any reportable transaction shall make a return (in such form
as the Secretary may prescribe) setting forth--
``(1) information identifying and describing the
transaction,
``(2) information describing any potential tax benefits
expected to result from the transaction, and
``(3) such other information as the Secretary may
prescribe.
Such return shall be filed not later than the date specified
by the Secretary.
``(b) Definitions.--For purposes of this section--
``(1) Material advisor.--
``(A) In general.--The term `material advisor' means any
person--
``(i) who provides any material aid, assistance, or advice
with respect to organizing, managing, promoting, selling,
implementing, or carrying out any reportable transaction, and
``(ii) who directly or indirectly derives gross income in
excess of the threshold amount for such aid, assistance, or
advice.
``(B) Threshold amount.--For purposes of subparagraph (A),
the threshold amount is--
``(i) $50,000 in the case of a reportable transaction
substantially all of the tax benefits from which are provided
to natural persons, and
``(ii) $250,000 in any other case.
``(2) Reportable transaction.--The term `reportable
transaction' has the meaning given to such term by section
6707A(c).
``(c) Regulations.--The Secretary may prescribe regulations
which provide--
``(1) that only 1 person shall be required to meet the
requirements of subsection (a) in cases in which 2 or more
persons would otherwise be required to meet such
requirements,
``(2) exemptions from the requirements of this section, and
``(3) such rules as may be necessary or appropriate to
carry out the purposes of this section.''.
(b) Conforming Amendments.--
(1) The item relating to section 6111 in the table of
sections for subchapter B of chapter 61 is amended to read as
follows:

``Sec. 6111. Disclosure of reportable transactions.''.
(2)(A) So much of section 6112 as precedes subsection (c)
thereof is amended to read as follows:

``SEC. 6112. MATERIAL ADVISORS OF REPORTABLE TRANSACTIONS
MUST KEEP LISTS OF ADVISEES.

``(a) In General.--Each material advisor (as defined in
section 6111) with respect to any reportable transaction (as
defined in section 6707A(c)) shall maintain, in such manner
as the Secretary may by regulations prescribe, a list--
``(1) identifying each person with respect to whom such
advisor acted as such a material advisor with respect to such
transaction, and

[[Page S936]]

``(2) containing such other information as the Secretary
may by regulations require.
This section shall apply without regard to whether a material
advisor is required to file a return under section 6111 with
respect to such transaction.''.
(B) Section 6112 is amended by redesignating subsection (c)
as subsection (b).
(C) Section 6112(b), as redesignated by subparagraph (B),
is amended--
(i) by inserting ``written'' before ``request'' in
paragraph (1)(A), and
(ii) by striking ``shall prescribe'' in paragraph (2) and
inserting ``may prescribe''.
(D) The item relating to section 6112 in the table of
sections for subchapter B of chapter 61 is amended to read as
follows:

``Sec. 6112. Material advisors of reportable transactions must keep
lists of advisees.''.
(3)(A) The heading for section 6708 is amended to read as
follows:

``SEC. 6708. FAILURE TO MAINTAIN LISTS OF ADVISEES WITH
RESPECT TO REPORTABLE TRANSACTIONS.''.

(B) The item relating to section 6708 in the table of
sections for part I of subchapter B of chapter 68 is amended
to read as follows:

``Sec. 6708. Failure to maintain lists of advisees with respect to
reportable transactions.''.
(c) Required Disclosure Not Subject to Claim of
Confidentiality.--Subparagraph (A) of section 6112(b)(1), as
redesignated by subsection (b)(2)(B), is amended by adding at
the end the following new flush sentence:
``For purposes of this section, the identity of any person on
such list shall not be privileged.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to transactions
with respect to which material aid, assistance, or advice
referred to in section 6111(b)(1)(A)(i) of the Internal
Revenue Code of 1986 (as added by this section) is provided
after the date of the enactment of this Act.
(2) No claim of confidentiality against disclosure.--The
amendment made by subsection (c) shall take effect as if
included in the amendments made by section 142 of the Deficit
Reduction Act of 1984.

SEC. 5618. MODIFICATIONS TO PENALTY FOR FAILURE TO REGISTER
TAX SHELTERS.

(a) In General.--Section 6707 (relating to failure to
furnish information regarding tax shelters) is amended to
read as follows:

``SEC. 6707. FAILURE TO FURNISH INFORMATION REGARDING
REPORTABLE TRANSACTIONS.

``(a) In General.--If a person who is required to file a
return under section 6111(a) with respect to any reportable
transaction--
``(1) fails to file such return on or before the date
prescribed therefor, or
``(2) files false or incomplete information with the
Secretary with respect to such transaction,
such person shall pay a penalty with respect to such return
in the amount determined under subsection (b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraph (2), the
penalty imposed under subsection (a) with respect to any
failure shall be $50,000.
``(2) Listed transactions.--The penalty imposed under
subsection (a) with respect to any listed transaction shall
be an amount equal to the greater of--
``(A) $200,000, or
``(B) 50 percent of the gross income derived by such person
with respect to aid, assistance, or advice which is provided
with respect to the listed transaction before the date the
return including the transaction is filed under section 6111.
Subparagraph (B) shall be applied by substituting `75
percent' for `50 percent' in the case of an intentional
failure or act described in subsection (a).
``(c) Certain Rules To Apply.--The provisions of section
6707A(d) shall apply to any penalty imposed under this
section.
``(d) Reportable and Listed Transactions.--The terms
`reportable transaction' and `listed transaction' have the
respective meanings given to such terms by section
6707A(c).''.
(b) Clerical Amendment.--The item relating to section 6707
in the table of sections for part I of subchapter B of
chapter 68 is amended by striking ``tax shelters'' and
inserting ``reportable transactions''.
(c) Effective Date.--The amendments made by this section
shall apply to returns the due date for which is after the
date of the enactment of this Act.

SEC. 5619. MODIFICATION OF PENALTY FOR FAILURE TO MAINTAIN
LISTS OF INVESTORS.

(a) In General.--Subsection (a) of section 6708 is amended
to read as follows:
``(a) Imposition of Penalty.--
``(1) In general.--If any person who is required to
maintain a list under section 6112(a) fails to make such list
available upon written request to the Secretary in accordance
with section 6112(b)(1)(A) within 20 business days after the
date of the Secretary's request, such person shall pay a
penalty of $10,000 for each day of such failure after such
20th day.
``(2) Reasonable cause exception.--No penalty shall be
imposed by paragraph (1) with respect to the failure on any
day if such failure is due to reasonable cause.''.
(b) Effective Date.--The amendment made by this section
shall apply to requests made after the date of the enactment
of this Act.

SEC. 5620. MODIFICATION OF ACTIONS TO ENJOIN CERTAIN CONDUCT
RELATED TO TAX SHELTERS AND REPORTABLE
TRANSACTIONS.

(a) In General.--Section 7408 (relating to action to enjoin
promoters of abusive tax shelters, etc.) is amended by
redesignating subsection (c) as subsection (d) and by
striking subsections (a) and (b) and inserting the following
new subsections:
``(a) Authority To Seek Injunction.--A civil action in the
name of the United States to enjoin any person from further
engaging in specified conduct may be commenced at the request
of the Secretary. Any action under this section shall be
brought in the district court of the United States for the
district in which such person resides, has his principal
place of business, or has engaged in specified conduct. The
court may exercise its jurisdiction over such action (as
provided in section 7402(a)) separate and apart from any
other action brought by the United States against such
person.
``(b) Adjudication and Decree.--In any action under
subsection (a), if the court finds--
``(1) that the person has engaged in any specified conduct,
and
``(2) that injunctive relief is appropriate to prevent
recurrence of such conduct,
the court may enjoin such person from engaging in such
conduct or in any other activity subject to penalty under
this title.
``(c) Specified Conduct.--For purposes of this section, the
term `specified conduct' means any action, or failure to take
action, subject to penalty under section 6700, 6701, 6707, or
6708.''.
(b) Conforming Amendments.--
(1) The heading for section 7408 is amended to read as
follows:

``SEC. 7408. ACTIONS TO ENJOIN SPECIFIED CONDUCT RELATED TO
TAX SHELTERS AND REPORTABLE TRANSACTIONS.''.

(2) The table of sections for subchapter A of chapter 67 is
amended by striking the item relating to section 7408 and
inserting the following new item:

``Sec. 7408. Actions to enjoin specified conduct related to tax
shelters and reportable transactions.''.
(c) Effective Date.--The amendment made by this section
shall take effect on the day after the date of the enactment
of this Act.

SEC. 5621. UNDERSTATEMENT OF TAXPAYER'S LIABILITY BY INCOME
TAX RETURN PREPARER.

(a) Standards Conformed to Taxpayer Standards.--Section
6694(a) (relating to understatements due to unrealistic
positions) is amended--
(1) by striking ``realistic possibility of being sustained
on its merits'' in paragraph (1) and inserting ``reasonable
belief that the tax treatment in such position was more
likely than not the proper treatment'',
(2) by striking ``or was frivolous'' in paragraph (3) and
inserting ``or there was no reasonable basis for the tax
treatment of such position'', and
(3) by striking ``Unrealistic'' in the heading and
inserting ``Improper''.
(b) Amount of Penalty.--Section 6694 is amended--
(1) by striking ``$250'' in subsection (a) and inserting
``$1,000'', and
(2) by striking ``$1,000'' in subsection (b) and inserting
``$5,000''.
(c) Effective Date.--The amendments made by this section
shall apply to documents prepared after the date of the
enactment of this Act.

SEC. 5622. PENALTY ON FAILURE TO REPORT INTERESTS IN FOREIGN
FINANCIAL ACCOUNTS.

(a) In General.--Section 5321(a)(5) of title 31, United
States Code, is amended to read as follows:
``(5) Foreign financial agency transaction violation.--
``(A) Penalty authorized.--The Secretary of the Treasury
may impose a civil money penalty on any person who violates,
or causes any violation of, any provision of section 5314.
``(B) Amount of penalty.--
``(i) In general.--Except as provided in subparagraph (C),
the amount of any civil penalty imposed under subparagraph
(A) shall not exceed $5,000.
``(ii) Reasonable cause exception.--No penalty shall be
imposed under subparagraph (A) with respect to any violation
if--

``(I) such violation was due to reasonable cause, and
``(II) the amount of the transaction or the balance in the
account at the time of the transaction was properly reported.

``(C) Willful violations.--In the case of any person
willfully violating, or willfully causing any violation of,
any provision of section 5314--
``(i) the maximum penalty under subparagraph (B)(i) shall
be increased to the greater of--

``(I) $25,000, or
``(II) the amount (not exceeding $100,000) determined under
subparagraph (D), and

``(ii) subparagraph (B)(ii) shall not apply.
``(D) Amount.--The amount determined under this
subparagraph is--
``(i) in the case of a violation involving a transaction,
the amount of the transaction, or
``(ii) in the case of a violation involving a failure to
report the existence of an account or any identifying
information required to be

[[Page S937]]

provided with respect to an account, the balance in the
account at the time of the violation.''.
(b) Effective Date.--The amendment made by this section
shall apply to violations occurring after the date of the
enactment of this Act.

SEC. 5623. FRIVOLOUS TAX SUBMISSIONS.

(a) Civil Penalties.--Section 6702 is amended to read as
follows:

``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

``(a) Civil Penalty for Frivolous Tax Returns.--A person
shall pay a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the substantial
correctness of the self-assessment may be judged, or
``(B) contains information that on its face indicates that
the self-assessment is substantially incorrect; and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term `specified
frivolous submission' means a specified submission if any
portion of such submission--
``(i) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(ii) reflects a desire to delay or impede the
administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--

``(I) section 6320 (relating to notice and opportunity for
hearing upon filing of notice of lien), or
``(II) section 6330 (relating to notice and opportunity for
hearing before levy), and

``(ii) an application under--

``(I) section 6159 (relating to agreements for payment of
tax liability in installments),
``(II) section 7122 (relating to compromises), or
``(III) section 7811 (relating to taxpayer assistance
orders).

``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a
specified frivolous submission and such person withdraws such
submission within 30 days after such notice, the penalty
imposed under paragraph (1) shall not apply with respect to
such submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically revise) a list of positions which
the Secretary has identified as being frivolous for purposes
of this subsection. The Secretary shall not include in such
list any position that the Secretary determines meets the
requirement of section 6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the
amount of any penalty imposed under this section if the
Secretary determines that such reduction would promote
compliance with and administration of the Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The
penalties imposed by this section shall be in addition to any
other penalty provided by law.''.
(b) Treatment of Frivolous Requests for Hearings Before
Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding
any other provision of this section, if the Secretary
determines that any portion of a request for a hearing under
this section or section 6320 meets the requirement of clause
(i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such
portion shall not be subject to any further administrative or
judicial review.''.
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first sentence
and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i) or (ii)
of section 6702(b)(2)(A).''.
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon
Filing of Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-
Compromise and Installment Agreements.--Section 7122 is
amended by adding at the end the following new subsection:
``(e) Frivolous Submissions, Etc.--Notwithstanding any
other provision of this section, if the Secretary determines
that any portion of an application for an offer-in-compromise
or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of
section 6702(b)(2)(A), then the Secretary may treat such
portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial
review.''.
(e) Clerical Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by striking the item
relating to section 6702 and inserting the following new
item:

``Sec. 6702. Frivolous tax submissions.''.
(f) Effective Date.--The amendments made by this section
shall apply to submissions made and issues raised after the
date on which the Secretary first prescribes a list under
section 6702(c) of the Internal Revenue Code of 1986, as
amended by subsection (a).

SEC. 5624. REGULATION OF INDIVIDUALS PRACTICING BEFORE THE
DEPARTMENT OF TREASURY.

(a) Censure; Imposition of Penalty.--
(1) In general.--Section 330(b) of title 31, United States
Code, is amended--
(A) by inserting ``, or censure,'' after ``Department'',
and
(B) by adding at the end the following new flush sentence:
``The Secretary may impose a monetary penalty on any
representative described in the preceding sentence. If the
representative was acting on behalf of an employer or any
firm or other entity in connection with the conduct giving
rise to such penalty, the Secretary may impose a monetary
penalty on such employer, firm, or entity if it knew, or
reasonably should have known, of such conduct. Such penalty
shall not exceed the gross income derived (or to be derived)
from the conduct giving rise to the penalty and may be in
addition to, or in lieu of, any suspension, disbarment, or
censure of the representative.''.
(2) Effective date.--The amendments made by this subsection
shall apply to actions taken after the date of the enactment
of this Act.
(b) Tax Shelter Opinions, Etc.--Section 330 of such title
31 is amended by adding at the end the following new
subsection:
``(d) Nothing in this section or in any other provision of
law shall be construed to limit the authority of the
Secretary of the Treasury to impose standards applicable to
the rendering of written advice with respect to any entity,
transaction plan or arrangement, or other plan or
arrangement, which is of a type which the Secretary
determines as having a potential for tax avoidance or
evasion.''.

SEC. 5625. PENALTY ON PROMOTERS OF TAX SHELTERS.

(a) Penalty on Promoting Abusive Tax Shelters.--Section
6700(a) is amended by adding at the end the following new
sentence: ``Notwithstanding the first sentence, if an
activity with respect to which a penalty imposed under this
subsection involves a statement described in paragraph
(2)(A), the amount of the penalty shall be equal to 50
percent of the gross income derived (or to be derived) from
such activity by the person on which the penalty is
imposed.''.
(b) Effective Date.--The amendment made by this section
shall apply to activities after the date of the enactment of
this Act.

SEC. 5626. STATUTE OF LIMITATIONS FOR TAXABLE YEARS FOR WHICH
REQUIRED LISTED TRANSACTIONS NOT REPORTED.

(a) In General.--Section 6501(c) (relating to exceptions)
is amended by adding at the end the following new paragraph:
``(10) Listed transactions.--If a taxpayer fails to include
on any return or statement for any taxable year any
information with respect to a listed transaction (as defined
in section 6707A(c)(2)) which is required under section 6011
to be included with such return or statement, the time for
assessment of any tax imposed by this title with respect to
such transaction shall not expire before the date which is 1
year after the earlier of--
``(A) the date on which the Secretary is furnished the
information so required; or
``(B) the date that a material advisor (as defined in
section 6111) meets the requirements of section 6112 with
respect to a request by the Secretary under section 6112(b)
relating to such transaction with respect to such
taxpayer.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years with respect to which the period
for assessing a deficiency did not expire before the date of
the enactment of this Act.

SEC. 5627. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS
ATTRIBUTABLE TO NONDISCLOSED REPORTABLE AND
NONECONOMIC SUBSTANCE TRANSACTIONS.

(a) In General.--Section 163 (relating to deduction for
interest) is amended by redesignating subsection (m) as
subsection (n) and by inserting after subsection (l) the
following new subsection:
``(m) Interest on Unpaid Taxes Attributable To Nondisclosed
Reportable Transactions and Noneconomic Substance
Transactions.--No deduction shall be allowed under this
chapter for any interest paid or accrued under section 6601
on any underpayment of tax which is attributable to--

[[Page S938]]

``(1) the portion of any reportable transaction
understatement (as defined in section 6662A(b)) with respect
to which the requirement of section 6664(d)(2)(A) is not met,
or
``(2) any noneconomic substance transaction understatement
(as defined in section 6662B(c)).''.
(b) Effective Date.--The amendments made by this section
shall apply to transactions in taxable years beginning after
the date of the enactment of this Act.

SEC. 5628. AUTHORIZATION OF APPROPRIATIONS FOR TAX LAW
ENFORCEMENT.

There is authorized to be appropriated $300,000,000 for
each fiscal year beginning after September 30, 2003, for the
purpose of carrying out tax law enforcement to combat tax
avoidance transactions and other tax shelters, including the
use of offshore financial accounts to conceal taxable income.

PART III--OTHER CORPORATE GOVERNANCE PROVISIONS

SEC. 5631. AFFIRMATION OF CONSOLIDATED RETURN REGULATION
AUTHORITY.

(a) In General.--Section 1502 (relating to consolidated
return regulations) is amended by adding at the end the
following new sentence: ``In prescribing such regulations,
the Secretary may prescribe rules applicable to corporations
filing consolidated returns under section 1501 that are
different from other provisions of this title that would
apply if such corporations filed separate returns.''.
(b) Result Not Overturned.--Notwithstanding subsection (a),
the Internal Revenue Code of 1986 shall be construed by
treating Treasury regulation Sec. 1.1502-20(c)(1)(iii) (as in
effect on January 1, 2001) as being inapplicable to the type
of factual situation in 255 F.3d 1357 (Fed. Cir. 2001).
(c) Effective Date.--The provisions of this section shall
apply to taxable years beginning before, on, or after the
date of the enactment of this Act.

SEC. 5632. DECLARATION BY CHIEF EXECUTIVE OFFICER RELATING TO
FEDERAL ANNUAL CORPORATE INCOME TAX RETURN.

(a) In General.--The Federal tax return of a corporation
with respect to income shall also include a declaration
signed by the chief executive officer of such corporation (or
other such officer of the corporation as the Secretary of the
Treasury may designate if the corporation does not have a
chief executive officer), under penalties of perjury, that
the chief executive officer has established processes and
procedures that ensure that such return complies with the
Internal Revenue Code of 1986 and that the chief executive
officer was provided reasonable assurance of the accuracy of
all material aspects of such return. The preceding sentence
shall not apply to any return of a regulated investment
company (within the meaning of section 851 of such Code).
(b) Effective Date.--This section shall apply to Federal
tax returns filed after the date of the enactment of this
Act.

SEC. 5633. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES,
AND OTHER AMOUNTS.

(a) In General.--Subsection (f) of section 162 (relating to
trade or business expenses) is amended to read as follows:
``(f) Fines, Penalties, and Other Amounts.--
``(1) In general.--Except as provided in paragraph (2), no
deduction otherwise allowable shall be allowed under this
chapter for any amount paid or incurred (whether by suit,
agreement, or otherwise) to, or at the direction of, a
government or entity described in paragraph (4) in relation
to the violation of any law or the investigation or inquiry
by such government or entity into the potential violation of
any law.
``(2) Exception for amounts constituting restitution.--
Paragraph (1) shall not apply to any amount which the
taxpayer establishes constitutes restitution for damage or
harm caused by the violation of any law or the potential
violation of any law. This paragraph shall not apply to any
amount paid or incurred as reimbursement to the government or
entity for the costs of any investigation or litigation.
``(3) Exception for amounts paid or incurred as the result
of certain court orders.--Paragraph (1) shall not apply to
any amount paid or incurred by order of a court in a suit in
which no government or entity described in paragraph (4) is a
party.
``(4) Certain nongovernmental regulatory entities.--An
entity is described in this paragraph if it is--
``(A) a nongovernmental entity which exercises self-
regulatory powers (including imposing sanctions) in
connection with a qualified board or exchange (as defined in
section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory powers
(including imposing sanctions) as part of performing an
essential governmental function.''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after April 27, 2003,
except that such amendment shall not apply to amounts paid or
incurred under any binding order or agreement entered into on
or before April 27, 2003. Such exception shall not apply to
an order or agreement requiring court approval unless the
approval was obtained on or before April 27, 2003.

SEC. 5634. DISALLOWANCE OF DEDUCTION FOR PUNITIVE DAMAGES.

(a) Disallowance of Deduction.--
(1) In general.--Section 162(g) (relating to treble damage
payments under the antitrust laws) is amended by adding at
the end the following new paragraph:
``(2) Punitive damages.--No deduction shall be allowed
under this chapter for any amount paid or incurred for
punitive damages in connection with any judgment in, or
settlement of, any action. This paragraph shall not apply to
punitive damages described in section 104(c).''.
(2) Conforming amendments.--
(A) Section 162(g) is amended--
(i) by striking ``If'' and inserting:
``(1) Treble damages.--If'', and
(ii) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively.
(B) The heading for section 162(g) is amended by inserting
``or Punitive Damages'' after ``Laws''.
(b) Inclusion in Income of Punitive Damages Paid by Insurer
or Otherwise.--
(1) In general.--Part II of subchapter B of chapter 1
(relating to items specifically included in gross income) is
amended by adding at the end the following new section:

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR
OTHERWISE.

``Gross income shall include any amount paid to or on
behalf of a taxpayer as insurance or otherwise by reason of
the taxpayer's liability (or agreement) to pay punitive
damages.''.
(2) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(f) Section To Apply to Punitive Damages Compensation.--
This section shall apply to payments by a person to or on
behalf of another person as insurance or otherwise by reason
of the other person's liability (or agreement) to pay
punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the
end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
(c) Effective Date.--The amendments made by this section
shall apply to damages paid or incurred on or after the date
of the enactment of this Act.

SEC. 5635. INCREASE IN CRIMINAL MONETARY PENALTY LIMITATION
FOR THE UNDERPAYMENT OR OVERPAYMENT OF TAX DUE
TO FRAUD.

(a) In General.--Section 7206 (relating to fraud and false
statements) is amended--
(1) by striking ``Any person who--'' and inserting ``(a) In
General.--Any person who--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due To Fraud.--If any portion of any
underpayment (as defined in section 6664(a)) or overpayment
(as defined in section 6401(a)) of tax required to be shown
on a return is attributable to fraudulent action described in
subsection (a), the applicable dollar amount under subsection
(a) shall in no event be less than an amount equal to such
portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so
attributable.''.
(b) Increase in Penalties.--
(1) Attempt to evade or defeat tax.--Section 7201 is
amended--
(A) by striking ``$100,000'' and inserting ``$250,000'',
(B) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(C) by striking ``5 years'' and inserting ``10 years''.
(2) Willful failure to file return, supply information, or
pay tax.--Section 7203 is amended--
(A) in the first sentence--
(i) by striking ``misdemeanor'' and inserting ``felony'',
and
(ii) by striking ``1 year'' and inserting ``10 years'', and
(B) by striking the third sentence.
(3) Fraud and false statements.--Section 7206(a) (as
redesignated by subsection (a)) is amended--
(A) by striking ``$100,000'' and inserting ``$250,000'',
(B) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(C) by striking ``3 years'' and inserting ``5 years''.
(c) Effective Date.--The amendments made by this section
shall apply to underpayments and overpayments attributable to
actions occurring after the date of the enactment of this
Act.

SEC. 5636. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST
ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE
FINANCIAL ARRANGEMENTS.

(a) General Rule.--If--
(1) a taxpayer eligible to participate in--
(A) the Department of the Treasury's Offshore Voluntary
Compliance Initiative, or
(B) the Department of the Treasury's voluntary disclosure
initiative which applies to the taxpayer by reason of the
taxpayer's underreporting of United States income tax
liability through financial arrangements which rely on the
use of offshore arrangements which were the subject of the
initiative described in subparagraph (A), and
(2) any interest or applicable penalty is imposed with
respect to any arrangement to which any initiative described
in paragraph (1) applied or to any underpayment of Federal
income tax attributable to items arising in connection with
any arrangement described in paragraph (1),

[[Page S939]]

then, notwithstanding any other provision of law, the amount
of such interest or penalty shall be equal to twice that
determined without regard to this section.
(b) Definitions and Rules.--For purposes of this section--
(1) Applicable penalty.--The term ``applicable penalty''
means any penalty, addition to tax, or fine imposed under
chapter 68 of the Internal Revenue Code of 1986.
(2) Voluntary offshore compliance initiative.--The term
``Voluntary Offshore Compliance Initiative'' means the
program established by the Department of the Treasury in
January of 2003 under which any taxpayer was eligible to
voluntarily disclose previously undisclosed income on assets
placed in offshore accounts and accessed through credit card
and other financial arrangements.
(3) Participation.--A taxpayer shall be treated as having
participated in the Voluntary Offshore Compliance Initiative
if the taxpayer submitted the request in a timely manner and
all information requested by the Secretary of the Treasury or
his delegate within a reasonable period of time following the
request.
(c) Effective Date.--The provisions of this section shall
apply to interest, penalties, additions to tax, and fines
with respect to any taxable year if as of the date of the
enactment of this Act, the assessment of any tax, penalty, or
interest with respect to such taxable year is not prevented
by the operation of any law or rule of law.

PART IV--ENRON-RELATED TAX SHELTER PROVISIONS

SEC. 5641. LIMITATION ON TRANSFER OR IMPORTATION OF BUILT-IN
LOSSES.

(a) In General.--Section 362 (relating to basis to
corporations) is amended by adding at the end the following
new subsection:
``(e) Limitations on Built-In Losses.--
``(1) Limitation on importation of built-in losses.--
``(A) In general.--If in any transaction described in
subsection (a) or (b) there would (but for this subsection)
be an importation of a net built-in loss, the basis of each
property described in subparagraph (B) which is acquired in
such transaction shall (notwithstanding subsections (a) and
(b)) be its fair market value immediately after such
transaction.
``(B) Property described.--For purposes of subparagraph
(A), property is described in this subparagraph if--
``(i) gain or loss with respect to such property is not
subject to tax under this subtitle in the hands of the
transferor immediately before the transfer, and
``(ii) gain or loss with respect to such property is
subject to such tax in the hands of the transferee
immediately after such transfer.
In any case in which the transferor is a partnership, the
preceding sentence shall be applied by treating each partner
in such partnership as holding such partner's proportionate
share of the property of such partnership.
``(C) Importation of net built-in loss.--For purposes of
subparagraph (A), there is an importation of a net built-in
loss in a transaction if the transferee's aggregate adjusted
bases of property described in subparagraph (B) which is
transferred in such transaction would (but for this
paragraph) exceed the fair market value of such property
immediately after such transaction.''.
``(2) Limitation on transfer of built-in losses in section
351 transactions.--
``(A) In general.--If--
``(i) property is transferred by a transferor in any
transaction which is described in subsection (a) and which is
not described in paragraph (1) of this subsection, and
``(ii) the transferee's aggregate adjusted bases of such
property so transferred would (but for this paragraph) exceed
the fair market value of such property immediately after such
transaction,
then, notwithstanding subsection (a), the transferee's
aggregate adjusted bases of the property so transferred shall
not exceed the fair market value of such property immediately
after such transaction.
``(B) Allocation of basis reduction.--The aggregate
reduction in basis by reason of subparagraph (A) shall be
allocated among the property so transferred in proportion to
their respective built-in losses immediately before the
transaction.
``(C) Exception for transfers within affiliated group.--
Subparagraph (A) shall not apply to any transaction if the
transferor owns stock in the transferee meeting the
requirements of section 1504(a)(2). In the case of property
to which subparagraph (A) does not apply by reason of the
preceding sentence, the transferor's basis in the stock
received for such property shall not exceed its fair market
value immediately after the transfer.''.
(b) Comparable Treatment Where Liquidation.--Paragraph (1)
of section 334(b) (relating to liquidation of subsidiary) is
amended to read as follows:
``(1) In general.--If property is received by a corporate
distributee in a distribution in a complete liquidation to
which section 332 applies (or in a transfer described in
section 337(b)(1)), the basis of such property in the hands
of such distributee shall be the same as it would be in the
hands of the transferor; except that the basis of such
property in the hands of such distributee shall be the fair
market value of the property at the time of the
distribution--
``(A) in any case in which gain or loss is recognized by
the liquidating corporation with respect to such property, or
``(B) in any case in which the liquidating corporation is a
foreign corporation, the corporate distributee is a domestic
corporation, and the corporate distributee's aggregate
adjusted bases of property described in section 362(e)(1)(B)
which is distributed in such liquidation would (but for this
subparagraph) exceed the fair market value of such property
immediately after such liquidation.''.
(c) Effective Date.--The amendments made by this section
shall apply to transactions after February 13, 2003.

SEC. 5642. NO REDUCTION OF BASIS UNDER SECTION 734 IN STOCK
HELD BY PARTNERSHIP IN CORPORATE PARTNER.

(a) In General.--Section 755 is amended by adding at the
end the following new subsection:
``(c) No Allocation of Basis Decrease to Stock of Corporate
Partner.--In making an allocation under subsection (a) of any
decrease in the adjusted basis of partnership property under
section 734(b)--
``(1) no allocation may be made to stock in a corporation
(or any person which is related (within the meaning of
section 267(b) or 707(b)(1)) to such corporation) which is a
partner in the partnership, and
``(2) any amount not allocable to stock by reason of
paragraph (1) shall be allocated under subsection (a) to
other partnership property in such manner as the Secretary
may prescribe.
Gain shall be recognized to the partnership to the extent
that the amount required to be allocated under paragraph (2)
to other partnership property exceeds the aggregate adjusted
basis of such other property immediately before the
allocation required by paragraph (2).''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions after February 13, 2003.

SEC. 5643. REPEAL OF SPECIAL RULES FOR FASITS.

(a) In General.--Part V of subchapter M of chapter 1
(relating to financial asset securitization investment
trusts) is hereby repealed.
(b) Conforming Amendments.--
(1) Paragraph (6) of section 56(g) is amended by striking
``REMIC, or FASIT'' and inserting ``or REMIC''.
(2) Clause (ii) of section 382(l)(4)(B) is amended by
striking ``a REMIC to which part IV of subchapter M applies,
or a FASIT to which part V of subchapter M applies,'' and
inserting ``or a REMIC to which part IV of subchapter M
applies,''.
(3) Paragraph (1) of section 582(c) is amended by striking
``, and any regular interest in a FASIT,''.
(4) Subparagraph (E) of section 856(c)(5) is amended by
striking the last sentence.
(5)(A) Section 860G(a)(1) is amended by adding at the end
the following new sentence: ``An interest shall not fail to
qualify as a regular interest solely because the specified
principal amount of the regular interest (or the amount of
interest accrued on the regular interest) can be reduced as a
result of the nonoccurrence of 1 or more contingent payments
with respect to any reverse mortgage loan held by the REMIC
if, on the startup day for the REMIC, the sponsor reasonably
believes that all principal and interest due under the
regular interest will be paid at or prior to the liquidation
of the REMIC.''.
(B) The last sentence of section 860G(a)(3) is amended by
inserting ``, and any reverse mortgage loan (and each balance
increase on such loan meeting the requirements of
subparagraph (A)(iii)) shall be treated as an obligation
secured by an interest in real property'' before the period
at the end.
(6) Paragraph (3) of section 860G(a) is amended by adding
``and'' at the end of subparagraph (B), by striking ``, and''
at the end of subparagraph (C) and inserting a period, and by
striking subparagraph (D).
(7) Section 860G(a)(3), as amended by paragraph (6), is
amended by adding at the end the following new sentence:
``For purposes of subparagraph (A), if more than 50 percent
of the obligations transferred to, or purchased by, the REMIC
are originated by the United States or any State (or any
political subdivision, agency, or instrumentality of the
United States or any State) and are principally secured by an
interest in real property, then each obligation transferred
to, or purchased by, the REMIC shall be treated as secured by
an interest in real property.''.
(8)(A) Section 860G(a)(3)(A) is amended by striking ``or''
at the end of clause (i), by inserting ``or'' at the end of
clause (ii), and by inserting after clause (ii) the following
new clause:
``(iii) represents an increase in the principal amount
under the original terms of an obligation described in clause
(i) or (ii) if such increase--

``(I) is attributable to an advance made to the obligor
pursuant to the original terms of the obligation,
``(II) occurs after the startup day, and
``(III) is purchased by the REMIC pursuant to a fixed price
contract in effect on the startup day.''.

(B) Section 860G(a)(7)(B) is amended to read as follows:
``(B) Qualified reserve fund.--For purposes of subparagraph
(A), the term `qualified reserve fund' means any reasonably
required reserve to--
``(i) provide for full payment of expenses of the REMIC or
amounts due on regular interests in the event of defaults on
qualified mortgages or lower than expected returns on cash
flow investments, or

[[Page S940]]

``(ii) provide a source of funds for the purchase of
obligations described in clause (ii) or (iii) of paragraph
(3)(A).
The aggregate fair market value of the assets held in any
such reserve shall not exceed 50 percent of the aggregate
fair market value of all of the assets of the REMIC on the
startup day, and the amount of any such reserve shall be
promptly and appropriately reduced to the extent the amount
held in such reserve is no longer reasonably required for
purposes specified in clause (i) or (ii) of paragraph
(3)(A).''.
(9) Subparagraph (C) of section 1202(e)(4) is amended by
striking ``REMIC, or FASIT'' and inserting ``or REMIC''.
(10) Clause (xi) of section 7701(a)(19)(C) is amended--
(A) by striking ``and any regular interest in a FASIT,'',
and
(B) by striking ``or FASIT'' each place it appears.
(11) The table of parts for subchapter M of chapter 1 is
amended by striking the item relating to part V.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on February
14, 2003.
(2) Exception for existing fasits.--Paragraph (1) shall not
apply to any FASIT in existence on the date of the enactment
of this Act to the extent that regular interests issued by
the FASIT before such date continue to remain outstanding in
accordance with the original terms of issuance.

SEC. 5644. EXPANDED DISALLOWANCE OF DEDUCTION FOR INTEREST ON
CONVERTIBLE DEBT.

(a) In General.--Paragraph (2) of section 163(l) is amended
by striking ``or a related party'' and inserting ``or equity
held by the issuer (or any related party) in any other
person''.
(b) Capitalization Allowed With Respect to Equity of
Persons Other Than Issuer and Related Parties.--Section
163(l) is amended by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6) and by inserting after paragraph (3)
the following new paragraph:
``(4) Capitalization allowed with respect to equity of
persons other than issuer and related parties.--If the
disqualified debt instrument of a corporation is payable in
equity held by the issuer (or any related party) in any other
person (other than a related party), the basis of such equity
shall be increased by the amount not allowed as a deduction
by reason of paragraph (1) with respect to the instrument.''.
(c) Exception for Certain Instruments Issued By Dealers In
Securities.--Section 163(l), as amended by subsection (b), is
amended by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7) and by inserting after paragraph (4) the
following new paragraph:
``(5) Exception for certain instruments issued by dealers
in securities.--For purposes of this subsection, the term
`disqualified debt instrument' does not include indebtedness
issued by a dealer in securities (or a related party) which
is payable in, or by reference to, equity (other than equity
of the issuer or a related party) held by such dealer in its
capacity as a dealer in securities. For purposes of this
paragraph, the term `dealer in securities' has the meaning
given such term by section 475.''.
(c) Conforming Amendments.--Paragraph (3) of section 163(l)
is amended--
(1) by striking ``or a related party'' in the material
preceding subparagraph (A) and inserting ``or any other
person'', and
(2) by striking ``or interest'' each place it appears.
(d) Effective Date.--The amendments made by this section
shall apply to debt instruments issued after February 13,
2003.

SEC. 5645. EXPANDED AUTHORITY TO DISALLOW TAX BENEFITS UNDER
SECTION 269.

(a) In General.--Subsection (a) of section 269 (relating to
acquisitions made to evade or avoid income tax) is amended to
read as follows:
``(a) In General.--If--
``(1)(A) any person or persons acquire, directly or
indirectly, control of a corporation, or
``(B) any corporation acquires, directly or indirectly,
property of another corporation and the basis of such
property, in the hands of the acquiring corporation, is
determined by reference to the basis in the hands of the
transferor corporation, and
``(2) the principal purpose for which such acquisition was
made is evasion or avoidance of Federal income tax,
then the Secretary may disallow such deduction, credit, or
other allowance. For purposes of paragraph (1)(A), control
means the ownership of stock possessing at least 50 percent
of the total combined voting power of all classes of stock
entitled to vote or at least 50 percent of the total value of
all shares of all classes of stock of the corporation.''.
(b) Effective Date.--The amendment made by this section
shall apply to stock and property acquired after February 13,
2003.

SEC. 5646. MODIFICATION OF INTERACTION BETWEEN SUBPART F AND
PASSIVE FOREIGN INVESTMENT COMPANY RULES.

(a) Limitation on Exception From PFIC Rules for United
States Shareholders of Controlled Foreign Corporations.--
Paragraph (2) of section 1297(e) (relating to passive foreign
investment company) is amended by adding at the end the
following flush sentence:
``Such term shall not include any period if the earning of
subpart F income by such corporation during such period would
result in only a remote likelihood of an inclusion in gross
income under section 951(a)(1)(A)(i).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of controlled foreign
corporations beginning after February 13, 2003, and to
taxable years of United States shareholders with or within
which such taxable years of controlled foreign corporations
end.

PART V--PROVISIONS TO DISCOURAGE EXPATRIATION

SEC. 5651. TAX TREATMENT OF INVERTED CORPORATE ENTITIES

(a) In General.--Subchapter C of chapter 80 (relating to
provisions affecting more than one subtitle) is amended by
adding at the end the following new section:

``SEC. 7874. RULES RELATING TO INVERTED CORPORATE ENTITIES

``(a) Inverted Corporations Treated as Domestic
Corporations.--
``(1) In general.--If a foreign incorporated entity is
treated as an inverted domestic corporation, then,
notwithstanding section 7701(a)(4), such entity shall be
treated for purposes of this title as a domestic corporation.
``(2) Inverted domestic corporation.--For purposes of this
section, a foreign incorporated entity shall be treated as an
inverted domestic corporation if, pursuant to a plan (or a
series of related transactions)--
``(A) the entity completes after March 20, 2002, the direct
or indirect acquisition of substantially all of the
properties held directly or indirectly by a domestic
corporation or substantially all of the properties
constituting a trade or business of a domestic partnership,
``(B) after the acquisition at least 80 percent of the
stock (by vote or value) of the entity is held--
``(i) in the case of an acquisition with respect to a
domestic corporation, by former shareholders of the domestic
corporation by reason of holding stock in the domestic
corporation, or
``(ii) in the case of an acquisition with respect to a
domestic partnership, by former partners of the domestic
partnership by reason of holding a capital or profits
interest in the domestic partnership, and
``(C) the expanded affiliated group which after the
acquisition includes the entity does not have substantial
business activities in the foreign country in which or under
the law of which the entity is created or organized when
compared to the total business activities of such expanded
affiliated group.
Except as provided in regulations, an acquisition of
properties of a domestic corporation shall not be treated as
described in subparagraph (A) if none of the corporation's
stock was readily tradeable on an established securities
market at any time during the 4-year period ending on the
date of the acquisition.
``(b) Preservation of Domestic Tax Base in Certain
Inversion Transactions to Which Subsection (a) Does Not
Apply.--
``(1) In general.--If a foreign incorporated entity would
be treated as an inverted domestic corporation with respect
to an acquired entity if either--
``(A) subsection (a)(2)(A) were applied by substituting
`after December 31, 1996, and on or before March 20, 2002'
for `after March 20, 2002' and subsection (a)(2)(B) were
applied by substituting `more than 50 percent' for `at least
80 percent', or
``(B) subsection (a)(2)(B) were applied by substituting
`more than 50 percent' for `at least 80 percent',
then the rules of subsection (c) shall apply to any inversion
gain of the acquired entity during the applicable period and
the rules of subsection (d) shall apply to any related party
transaction of the acquired entity during the applicable
period. This subsection shall not apply for any taxable year
if subsection (a) applies to such foreign incorporated entity
for such taxable year.
``(2) Acquired entity.--For purposes of this section--
``(A) In general.--The term `acquired entity' means the
domestic corporation or partnership substantially all of the
properties of which are directly or indirectly acquired in an
acquisition described in subsection (a)(2)(A) to which this
subsection applies.
``(B) Aggregation rules.--Any domestic person bearing a
relationship described in section 267(b) or 707(b) to an
acquired entity shall be treated as an acquired entity with
respect to the acquisition described in subparagraph (A).
``(3) Applicable period.--For purposes of this section--
``(A) In general.--The term `applicable period' means the
period--
``(i) beginning on the first date properties are acquired
as part of the acquisition described in subsection (a)(2)(A)
to which this subsection applies, and
``(ii) ending on the date which is 10 years after the last
date properties are acquired as part of such acquisition.
``(B) Special rule for inversions occurring before march
21, 2002.--In the case of any acquired entity to which
paragraph (1)(A) applies, the applicable period shall be the
10-year period beginning on January 1, 2003.
``(c) Tax on Inversion Gains May Not Be Offset.--If
subsection (b) applies--
``(1) In general.--The taxable income of an acquired entity
(or any expanded affiliated group which includes such entity)
for any taxable year which includes any portion of the
applicable period shall in no event be

[[Page S941]]

less than the inversion gain of the entity for the taxable
year.
``(2) Credits not allowed against tax on inversion gain.--
Credits shall be allowed against the tax imposed by this
chapter on an acquired entity for any taxable year described
in paragraph (1) only to the extent such tax exceeds the
product of--
``(A) the amount of the inversion gain for the taxable
year, and
``(B) the highest rate of tax specified in section
11(b)(1).
For purposes of determining the credit allowed by section 901
inversion gain shall be treated as from sources within the
United States.
``(3) Special rules for partnerships.--In the case of an
acquired entity which is a partnership--
``(A) the limitations of this subsection shall apply at the
partner rather than the partnership level,
``(B) the inversion gain of any partner for any taxable
year shall be equal to the sum of--
``(i) the partner's distributive share of inversion gain of
the partnership for such taxable year, plus
``(ii) income or gain required to be recognized for the
taxable year by the partner under section 367(a), 741, or
1001, or under any other provision of chapter 1, by reason of
the transfer during the applicable period of any partnership
interest of the partner in such partnership to the foreign
incorporated entity, and
``(C) the highest rate of tax specified in the rate
schedule applicable to the partner under chapter 1 shall be
substituted for the rate of tax under paragraph (2)(B).
``(4) Inversion gain.--For purposes of this section, the
term `inversion gain' means any income or gain required to be
recognized under section 304, 311(b), 367, 1001, or 1248, or
under any other provision of chapter 1, by reason of the
transfer during the applicable period of stock or other
properties by an acquired entity--
``(A) as part of the acquisition described in subsection
(a)(2)(A) to which subsection (b) applies, or
``(B) after such acquisition to a foreign related person.
The Secretary may provide that income or gain from the sale
of inventories or other transactions in the ordinary course
of a trade or business shall not be treated as inversion gain
under subparagraph (B) to the extent the Secretary determines
such treatment would not be inconsistent with the purposes of
this section.
``(5) Coordination with section 172 and minimum tax.--Rules
similar to the rules of paragraphs (3) and (4) of section
860E(a) shall apply for purposes of this section.
``(6) Statute of limitations.--
``(A) In general.--The statutory period for the assessment
of any deficiency attributable to the inversion gain of any
taxpayer for any pre-inversion year shall not expire before
the expiration of 3 years from the date the Secretary is
notified by the taxpayer (in such manner as the Secretary may
prescribe) of the acquisition described in subsection
(a)(2)(A) to which such gain relates and such deficiency may
be assessed before the expiration of such 3-year period
notwithstanding the provisions of any other law or rule of
law which would otherwise prevent such assessment.
``(B) Pre-inversion year.--For purposes of subparagraph
(A), the term `pre-inversion year' means any taxable year
if--
``(i) any portion of the applicable period is included in
such taxable year, and
``(ii) such year ends before the taxable year in which the
acquisition described in subsection (a)(2)(A) is completed.
``(d) Special Rules Applicable to Acquired Entities to
Which Subsection (b) Applies.--
``(1) Increases in accuracy-related penalties.--In the case
of any underpayment of tax of an acquired entity to which
subsection (b) applies--
``(A) section 6662(a) shall be applied with respect to such
underpayment by substituting `30 percent' for `20 percent',
and
``(B) if such underpayment is attributable to one or more
gross valuation understatements, the increase in the rate of
penalty under section 6662(h) shall be to 50 percent rather
than 40 percent.
``(2) Modifications of limitation on interest deduction.--
In the case of an acquired entity to which subsection (b)
applies, section 163(j) shall be applied--
``(A) without regard to paragraph (2)(A)(ii) thereof, and
``(B) by substituting `25 percent' for `50 percent' each
place it appears in paragraph (2)(B) thereof.
``(e) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Rules for application of subsection (a)(2).--In
applying subsection (a)(2) for purposes of subsections (a)
and (b), the following rules shall apply:
``(A) Certain stock disregarded.--There shall not be taken
into account in determining ownership for purposes of
subsection (a)(2)(B)--
``(i) stock held by members of the expanded affiliated
group which includes the foreign incorporated entity, or
``(ii) stock of such entity which is sold in a public
offering or private placement related to the acquisition
described in subsection (a)(2)(A).
``(B) Plan deemed in certain cases.--If a foreign
incorporated entity acquires directly or indirectly
substantially all of the properties of a domestic corporation
or partnership during the 4-year period beginning on the date
which is 2 years before the ownership requirements of
subsection (a)(2)(B) are met with respect to such domestic
corporation or partnership, such actions shall be treated as
pursuant to a plan.
``(C) Certain transfers disregarded.--The transfer of
properties or liabilities (including by contribution or
distribution) shall be disregarded if such transfers are part
of a plan a principal purpose of which is to avoid the
purposes of this section.
``(D) Special rule for related partnerships.--For purposes
of applying subsection (a)(2) to the acquisition of a
domestic partnership, except as provided in regulations, all
partnerships which are under common control (within the
meaning of section 482) shall be treated as 1 partnership.
``(E) Treatment of certain rights.--The Secretary shall
prescribe such regulations as may be necessary--
``(i) to treat warrants, options, contracts to acquire
stock, convertible debt instruments, and other similar
interests as stock, and
``(ii) to treat stock as not stock.
``(2) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group as defined in
section 1504(a) but without regard to section 1504(b)(3),
except that section 1504(a) shall be applied by substituting
`more than 50 percent' for `at least 80 percent' each place
it appears.
``(3) Foreign incorporated entity.--The term `foreign
incorporated entity' means any entity which is, or but for
subsection (a)(1) would be, treated as a foreign corporation
for purposes of this title.
``(4) Foreign related person.--The term `foreign related
person' means, with respect to any acquired entity, a foreign
person which--
``(A) bears a relationship to such entity described in
section 267(b) or 707(b), or
``(B) is under the same common control (within the meaning
of section 482) as such entity.
``(5) Subsequent acquisitions by unrelated domestic
corporations.--
``(A) In general.--Subject to such conditions, limitations,
and exceptions as the Secretary may prescribe, if, after an
acquisition described in subsection (a)(2)(A) to which
subsection (b) applies, a domestic corporation stock of which
is traded on an established securities market acquires
directly or indirectly any properties of one or more acquired
entities in a transaction with respect to which the
requirements of subparagraph (B) are met, this section shall
cease to apply to any such acquired entity with respect to
which such requirements are met.
``(B) Requirements.--The requirements of the subparagraph
are met with respect to a transaction involving any
acquisition described in subparagraph (A) if--
``(i) before such transaction the domestic corporation did
not have a relationship described in section 267(b) or
707(b), and was not under common control (within the meaning
of section 482), with the acquired entity, or any member of
an expanded affiliated group including such entity, and
``(ii) after such transaction, such acquired entity--

``(I) is a member of the same expanded affiliated group
which includes the domestic corporation or has such a
relationship or is under such common control with any member
of such group, and
``(II) is not a member of, and does not have such a
relationship and is not under such common control with any
member of, the expanded affiliated group which before such
acquisition included such entity.

``(f) Regulations.--The Secretary shall provide such
regulations as are necessary to carry out this section,
including regulations providing for such adjustments to the
application of this section as are necessary to prevent the
avoidance of the purposes of this section, including the
avoidance of such purposes through--
``(1) the use of related persons, pass-thru or other
noncorporate entities, or other intermediaries, or
``(2) transactions designed to have persons cease to be (or
not become) members of expanded affiliated groups or related
persons.''.
(b) Information Reporting.--The Secretary of the Treasury
shall exercise the Secretary's authority under the Internal
Revenue Code of 1986 to require entities involved in
transactions to which section 7874 of such Code (as added by
subsection (a)) applies to report to the Secretary,
shareholders, partners, and such other persons as the
Secretary may prescribe such information as is necessary to
ensure the proper tax treatment of such transactions.
(c) Conforming Amendment.--The table of sections for
subchapter C of chapter 80 is amended by adding at the end
the following new item:

``Sec. 7874. Rules relating to inverted corporate entities.''.

(d) Transition Rule for Certain Regulated Investment
Companies and Unit Investment Trusts.--Notwithstanding
section 7874 of the Internal Revenue Code of 1986 (as added
by subsection (a)), a regulated investment company, or other
pooled fund or trust specified by the Secretary of the
Treasury, may elect to recognize gain by reason of section
367(a) of such Code with respect to a transaction under which
a foreign incorporated entity is treated as an inverted
domestic corporation under section 7874(a) of

[[Page S942]]

such Code by reason of an acquisition completed after March
20, 2002, and before January 1, 2004.

SEC. 5652. IMPOSITION OF MARK-TO-MARKET TAX ON INDIVIDUALS
WHO EXPATRIATE.

(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:

``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--Except as provided in subsections
(d) and (f), all property of a covered expatriate to whom
this section applies shall be treated as sold on the day
before the expatriation date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this title,
any gain arising from such sale shall be taken into account
for the taxable year of the sale, and
``(B) any loss arising from such sale shall be taken into
account for the taxable year of the sale to the extent
otherwise provided by this title, except that section 1091
shall not apply to any such loss.

Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into
account under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of any
individual by reason of this section shall be reduced (but
not below zero) by $600,000. For purposes of this paragraph,
allocable expatriation gain taken into account under
subsection (f)(2) shall be treated in the same manner as an
amount required to be includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an expatriation date
occurring in any calendar year after 2004, the $600,000
amount under subparagraph (A) shall be increased by an amount
equal to--

``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year, determined by
substituting `calendar year 2003' for `calendar year 1992' in
subparagraph (B) thereof.

``(ii) Rounding rules.--If any amount after adjustment
under clause (i) is not a multiple of $1,000, such amount
shall be rounded to the next lower multiple of $1,000.
``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects the
application of this paragraph--
``(i) this section (other than this paragraph and
subsection (i)) shall not apply to the expatriate, but
``(ii) in the case of property to which this section would
apply but for such election, the expatriate shall be subject
to tax under this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not apply to an
individual unless the individual--
``(i) provides security for payment of tax in such form and
manner, and in such amount, as the Secretary may require,
``(ii) consents to the waiver of any right of the
individual under any treaty of the United States which would
preclude assessment or collection of any tax which may be
imposed by reason of this paragraph, and
``(iii) complies with such other requirements as the
Secretary may prescribe.
``(C) Election.--An election under subparagraph (A) shall
apply to all property to which this section would apply but
for the election and, once made, shall be irrevocable. Such
election shall also apply to property the basis of which is
determined in whole or in part by reference to the property
with respect to which the election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the payment of the
additional tax attributable to such property shall be
postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided to the Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of

[[Page S943]]

a tax treaty between the United States and the foreign
country and who does not waive the benefits of such treaty
applicable to residents of the foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.

Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests
in Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and
``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.

Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for
liabilities of the trust allocable to an individual's share
in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described in
paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a) shall not apply, and
``(ii) in addition to any other tax imposed by this title,
there is hereby imposed on each distribution with respect to
such interest a tax in the amount determined under
subparagraph (B).
``(B) Amount of tax.--The amount of tax under subparagraph
(A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by section 1(e) for
the taxable year which includes the day before the
expatriation date, multiplied by the amount of the
distribution, or
``(ii) the balance in the deferred tax account immediately
before the distribution determined without regard to any
increases under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of subparagraph
(B)(ii)--
``(i) Opening balance.--The opening balance in a deferred
tax account with respect to any trust interest is an amount
equal to the tax which would have been imposed on the
allocable expatriation gain with respect to the trust
interest if such gain had been included in gross income under
subsection (a).
``(ii) Increase for interest.--The balance in the deferred
tax account shall be increased by the amount of interest
determined (on the balance in the account at the time the
interest accrues), for periods after the 90th day after the
expatriation date, by using the rates and method applicable
under section 6621 for underpayments of tax for such periods,
except that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage points'
in subparagraph (B) thereof.
``(iii) Decrease for taxes previously paid.--The balance in
the tax deferred account shall be reduced--

``(I) by the amount of taxes imposed by subparagraph (A) on
any distribution to the person holding the trust interest,
and
``(II) in the case of a person holding a nonvested
interest, to the extent provided in regulations, by the
amount of taxes imposed by subparagraph (A) on distributions
from the trust with respect to nonvested interests not held
by such person.

``(D) Allocable expatriation gain.--For purposes of this
paragraph, the allocable expatriation gain with respect to
any beneficiary's interest in a trust is the amount of gain
which would be allocable to such beneficiary's vested and
nonvested interests in the trust if the beneficiary held
directly all assets allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by subparagraph (A)(ii)
shall be deducted and withheld by the trustees from the
distribution to which it relates.
``(ii) Exception where failure to waive treaty rights.--If
an amount may not be deducted and withheld under clause (i)
by reason of the distributee failing to waive any treaty
right with respect to such distribution--

``(I) the tax imposed by subparagraph (A)(ii) shall be
imposed on the trust and each trustee shall be personally
liable for the amount of such tax, and
``(II) any other beneficiary of the trust shall be entitled
to recover from the distributee the amount of such tax
imposed on the other beneficiary.

``(F) Disposition.--If a trust ceases to be a qualified
trust at any time, a covered expatriate disposes of an
interest in a qualified trust, or a covered expatriate
holding an interest in a qualified trust dies, then, in lieu
of the tax imposed by subparagraph (A)(ii), there is hereby
imposed a tax equal to the lesser of--
``(i) the tax determined under paragraph (1) as if the day
before the expatriation date were the date of such cessation,
disposition, or death, whichever is applicable, or
``(ii) the balance in the tax deferred account immediately
before such date.
Such tax shall be imposed on the trust and each trustee shall
be personally liable for the amount of such tax and any other
beneficiary of the trust shall be entitled to recover from
the covered expatriate or the estate the amount of such tax
imposed on the other beneficiary.
``(G) Definitions and special rules.--For purposes of this
paragraph--
``(i) Qualified trust.--The term `qualified trust' means a
trust which is described in section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested interest' means
any interest which, as of the day before the expatriation
date, is vested in the beneficiary.
``(iii) Nonvested interest.--The term `nonvested interest'
means, with respect to any beneficiary, any interest in a
trust which is not a vested interest. Such interest shall be
determined by assuming the maximum exercise of discretion in
favor of the beneficiary and the occurrence of all
contingencies in favor of the beneficiary.
``(iv) Adjustments.--The Secretary may provide for such
adjustments to the bases of assets in a trust or a deferred
tax account, and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan rules.--This
subsection shall not apply to an interest in a trust which is
part of a retirement plan to which subsection (d)(2) applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For purposes of
paragraph (1), a beneficiary's interest in a trust shall be
based upon all relevant facts and circumstances, including
the terms of the trust instrument and any letter of wishes or
similar document, historical patterns of trust distributions,
and the existence of and functions performed by a trust
protector or any similar adviser.
``(B) Other determinations.--For purposes of this section--
``(i) Constructive ownership.--If a beneficiary of a trust
is a corporation, partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall be deemed to
be the trust beneficiaries for purposes of this section.
``(ii) Taxpayer return position.--A taxpayer shall clearly
indicate on its income tax return--

``(I) the methodology used to determine that taxpayer's
trust interest under this section, and
``(II) if the taxpayer knows (or has reason to know) that
any other beneficiary of such trust is using a different
methodology to determine such beneficiary's trust interest
under this section.

``(g) Termination of Deferrals, etc.--In the case of any
covered expatriate, notwithstanding any other provision of
this title--
``(1) any period during which recognition of income or gain
is deferred shall terminate on the day before the
expatriation date, and
``(2) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the
unpaid portion of such tax shall be due and payable at the
time and in the manner prescribed by the Secretary.
``(h) Imposition of Tentative Tax.--
``(1) In general.--If an individual is required to include
any amount in gross income under subsection (a) for any
taxable year, there is hereby imposed, immediately before the
expatriation date, a tax in an amount equal to the amount of
tax which would be imposed if the taxable year were a short
taxable year ending on the expatriation date.
``(2) Due date.--The due date for any tax imposed by
paragraph (1) shall be the 90th day after the expatriation
date.

[[Page S944]]

``(3) Treatment of tax.--Any tax paid under paragraph (1)
shall be treated as a payment of the tax imposed by this
chapter for the taxable year to which subsection (a) applies.
``(4) Deferral of tax.--The provisions of subsection (b)
shall apply to the tax imposed by this subsection to the
extent attributable to gain includible in gross income by
reason of this section.
``(i) Special Liens for Deferred Tax Amounts.--
``(1) Imposition of lien.--
``(A) In general.--If a covered expatriate makes an
election under subsection (a)(4) or (b) which results in the
deferral of any tax imposed by reason of subsection (a), the
deferred amount (including any interest, additional amount,
addition to tax, assessable penalty, and costs attributable
to the deferred amount) shall be a lien in favor of the
United States on all property of the expatriate located in
the United States (without regard to whether this section
applies to the property).
``(B) Deferred amount.--For purposes of this subsection,
the deferred amount is the amount of the increase in the
covered expatriate's income tax which, but for the election
under subsection (a)(4) or (b), would have occurred by reason
of this section for the taxable year including the
expatriation date.
``(2) Period of lien.--The lien imposed by this subsection
shall arise on the expatriation date and continue until--
``(A) the liability for tax by reason of this section is
satisfied or has become unenforceable by reason of lapse of
time, or
``(B) it is established to the satisfaction of the
Secretary that no further tax liability may arise by reason
of this section.
``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Inclusion in Income of Gifts and Bequests Received by
United States Citizens and Residents From Expatriates.--
Section 102 (relating to gifts, etc. not included in gross
income) is amended by adding at the end the following new
subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate
after the expatriation date. For purposes of this subsection,
any term used in this subsection which is also used in
section 877A shall have the same meaning as when used in
section 877A.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property
if either--
``(A) the gift, bequest, devise, or inheritance is--
``(i) shown on a timely filed return of tax imposed by
chapter 12 as a taxable gift by the covered expatriate, or
``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(48) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of section 877A(e)(3) of the Internal
Revenue Code of 1986) and who is not in compliance with
section 877A of such Code (relating to expatriation).''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(19) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--
(i) Technical amendments.--Paragraph (4) of section 6103(p)
of the Internal Revenue Code of 1986, as amended by section
202(b)(2)(B) of the Trade Act of 2002 (Public Law 107-210;
116 Stat. 961), is amended by striking ``or (17)'' after
``any other person described in subsection (l)(16)'' each
place it appears and inserting ``or (18)''.
(ii) Conforming amendments.--Section 6103(p)(4) (relating
to safeguards), as amended by clause (i), is amended by
striking ``or (18)'' after ``any other person described in
subsection (l)(16)'' each place it appears and inserting
``(18), or (19)''.
(3) Effective dates.--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by this subsection shall apply to
individuals who relinquish United States citizenship on or
after the date of the enactment of this Act.
(B) Technical amendments.--The amendments made by paragraph
(2)(B)(i) shall take effect as if included in the amendments
made by section 202(b)(2)(B) of the Trade Act of 2002 (Public
Law 107-210; 116 Stat. 961).
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(g) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after February 2, 2004.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(F) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4)(A) Paragraph (1) of section 6039G(d) is amended by
inserting ``or 877A'' after ``section 877''.
(B) The second sentence of section 6039G(e) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after
``877(a))''.
(C) Section 6039G(f) is amended by inserting ``or
877A(e)(2)(B)'' after ``877(e)(1)''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.

(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal
Revenue Code of 1986, as added by this section) whose
expatriation date (as so defined) occurs on or after February
2, 2004.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after February 2, 2004,
from an individual or the estate of an individual whose
expatriation date (as so defined) occurs after such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day
after the date of the enactment of this Act.

SEC. 5653. EXCISE TAX ON STOCK COMPENSATION OF INSIDERS IN
INVERTED CORPORATIONS.

(a) In General.--Subtitle D is amended by adding at the end
the following new chapter:

``CHAPTER 48--STOCK COMPENSATION OF INSIDERS IN INVERTED CORPORATIONS

``Sec. 5000A. Stock compensation of insiders in inverted corporations
entities.

``SEC. 5000A. STOCK COMPENSATION OF INSIDERS IN INVERTED
CORPORATIONS.

``(a) Imposition of Tax.--In the case of an individual who
is a disqualified individual with respect to any inverted
corporation, there is hereby imposed on such person a tax
equal to 20 percent of the value (determined under subsection
(b)) of the specified stock compensation held (directly or
indirectly) by or for the benefit of such individual or a
member of such individual's family (as defined in section
267) at any time during the 12-month period beginning on the
date which is 6 months before the inversion date.
``(b) Value.--For purposes of subsection (a)--
``(1) In general.--The value of specified stock
compensation shall be--
``(A) in the case of a stock option (or other similar
right) or any stock appreciation right, the fair value of
such option or right, and
``(B) in any other case, the fair market value of such
compensation.
``(2) Date for determining value.--The determination of
value shall be made--
``(A) in the case of specified stock compensation held on
the inversion date, on such date,
``(B) in the case of such compensation which is canceled
during the 6 months before the inversion date, on the day
before such cancellation, and
``(C) in the case of such compensation which is granted
after the inversion date, on the date such compensation is
granted.

[[Page S945]]

``(c) Tax To Apply Only if Shareholder Gain Recognized.--
Subsection (a) shall apply to any disqualified individual
with respect to an inverted corporation only if gain (if any)
on any stock in such corporation is recognized in whole or
part by any shareholder by reason of the acquisition referred
to in section 7874(a)(2)(A) (determined by substituting `July
10, 2002' for `March 20, 2002') with respect to such
corporation.
``(d) Exception Where Gain Recognized on Compensation.--
Subsection (a) shall not apply to--
``(1) any stock option which is exercised on the inversion
date or during the 6-month period before such date and to the
stock acquired in such exercise, if income is recognized
under section 83 on or before the inversion date with respect
to the stock acquired pursuant to such exercise, and
``(2) any specified stock compensation which is exercised,
sold, exchanged, distributed, cashed out, or otherwise paid
during such period in a transaction in which gain or loss is
recognized in full.
``(e) Definitions.--For purposes of this section--
``(1) Disqualified individual.--The term `disqualified
individual' means, with respect to a corporation, any
individual who, at any time during the 12-month period
beginning on the date which is 6 months before the inversion
date--
``(A) is subject to the requirements of section 16(a) of
the Securities Exchange Act of 1934 with respect to such
corporation, or
``(B) would be subject to such requirements if such
corporation were an issuer of equity securities referred to
in such section.
``(2) Inverted corporation; inversion date.--
``(A) Inverted corporation.--The term `inverted
corporation' means any corporation to which subsection (a) or
(b) of section 7874 applies determined--
``(i) by substituting `July 10, 2002' for `March 20, 2002'
in section 7874(a)(2)(A), and
``(ii) without regard to subsection (b)(1)(A).

Such term includes any predecessor or successor of such a
corporation.
``(B) Inversion date.--The term `inversion date' means,
with respect to a corporation, the date on which the
corporation first becomes an inverted corporation.
``(3) Specified stock compensation.--
``(A) In general.--The term `specified stock compensation'
means payment (or right to payment) granted by the inverted
corporation (or by any member of the expanded affiliated
group which includes such corporation) to any person in
connection with the performance of services by a disqualified
individual for such corporation or member if the value of
such payment or right is based on (or determined by reference
to) the value (or change in value) of stock in such
corporation (or any such member).
``(B) Exceptions.--Such term shall not include--
``(i) any option to which part II of subchapter D of
chapter 1 applies, or
``(ii) any payment or right to payment from a plan referred
to in section 280G(b)(6).
``(4) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group (as defined in
section 1504(a) without regard to section 1504(b)(3)); except
that section 1504(a) shall be applied by substituting `more
than 50 percent' for `at least 80 percent' each place it
appears.
``(f) Special Rules.--For purposes of this section--
``(1) Cancellation of restriction.--The cancellation of a
restriction which by its terms will never lapse shall be
treated as a grant.
``(2) Payment or reimbursement of tax by corporation
treated as specified stock compensation.--Any payment of the
tax imposed by this section directly or indirectly by the
inverted corporation or by any member of the expanded
affiliated group which includes such corporation--
``(A) shall be treated as specified stock compensation, and
``(B) shall not be allowed as a deduction under any
provision of chapter 1.
``(3) Certain restrictions ignored.--Whether there is
specified stock compensation, and the value thereof, shall be
determined without regard to any restriction other than a
restriction which by its terms will never lapse.
``(4) Property transfers.--Any transfer of property shall
be treated as a payment and any right to a transfer of
property shall be treated as a right to a payment.
``(5) Other administrative provisions.--For purposes of
subtitle F, any tax imposed by this section shall be treated
as a tax imposed by subtitle A.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Denial of Deduction.--
(1) In general.--Paragraph (6) of section 275(a) is amended
by inserting ``48,'' after ``46,''.
(2) $1,000,000 limit on deductible compensation reduced by
payment of excise tax on specified stock compensation.--
Paragraph (4) of section 162(m) is amended by adding at the
end the following new subparagraph:
``(G) Coordination with excise tax on specified stock
compensation.--The dollar limitation contained in paragraph
(1) with respect to any covered employee shall be reduced
(but not below zero) by the amount of any payment (with
respect to such employee) of the tax imposed by section 5000A
directly or indirectly by the inverted corporation (as
defined in such section) or by any member of the expanded
affiliated group (as defined in such section) which includes
such corporation.''.
(c) Conforming Amendments.--
(1) The last sentence of section 3121(v)(2)(A) is amended
by inserting before the period ``or to any specified stock
compensation (as defined in section 5000A) on which tax is
imposed by section 5000A''.
(2) The table of chapters for subtitle D is amended by
adding at the end the following new item:

``Chapter 48. Stock compensation of insiders in inverted
corporations.''.

(d) Effective Date.--The amendments made by this section
shall take effect on July 11, 2002; except that periods
before such date shall not be taken into account in applying
the periods in subsections (a) and (e)(1) of section 5000A of
the Internal Revenue Code of 1986, as added by this section.

SEC. 5654. REINSURANCE OF UNITED STATES RISKS IN FOREIGN
JURISDICTIONS.

(a) In General.--Section 845(a) (relating to allocation in
case of reinsurance agreement involving tax avoidance or
evasion) is amended by striking ``source and character'' and
inserting ``amount, source, or character''.
(b) Effective Date.--The amendments made by this section
shall apply to any risk reinsured after April 11, 2002.

PART V--PROVISION TO REPLENISH THE GENERAL FUND

SEC. 5661. MODIFICATION TO CORPORATE ESTIMATED TAX
REQUIREMENTS.

The amount of any required installment of corporate
estimated income tax which is otherwise due under section
6655 of the Internal Revenue Code of 1986 after June 30,
2009, and before October 1, 2009, shall be 119 percent of
such amount.

TITLE VI--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
OFFSETS

SEC. 6101. SENSE OF THE SENATE ON OVERALL FEDERAL BUDGET.

It is the sense of the Senate that--
(1) comprehensive statutory budget enforcement measures,
the jurisdiction of which lies with the Senate Budget
Committee and Senate Governmental Affairs Committee, should--
(A) be enacted this year; and
(B) address all areas of the Federal budget, including
discretionary spending, direct spending, and revenues; and
(2) special allocations for transportation or any other
categories of spending should be considered in that context
and be consistent with the rest of the Federal budget.

SEC. 6102. DISCRETIONARY SPENDING CATEGORIES.

(a) Definitions.--
(1) Highway category.--Section 250(c)(4)(B) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
900(c)(4)(B)) is amended--
(A) by striking ``Transportation Equity Act for the 21st
Century'' and inserting ``Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004''; and
(B) by adding at the end the following:
``(v) 69-8158-0-7-401 (Motor Carrier Safety Grants).
``(vi) 69-8159-0-7-401 (Motor Carrier Safety Operations and
Programs).''.
(2) Mass transit category.--Section 250(c)(4) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 900(c)(4)) is amended by striking subparagraph (C) and
inserting the following:
``(C) Mass transit category.--The term `mass transit
category' means the following budget accounts, or portions of
the accounts, that are subject to the obligation limitations
on contract authority provided in the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004 or
for which appropriations are provided in accordance with
authorizations contained in that Act:
``(i) 69-1120-0-1-401 (Administrative Expenses).
``(ii) 69-1134-0-1-401 (Capital Investment Grants).
``(iii) 69-8191-0-7-401 (Discretionary Grants).
``(iv) 69-1129-0-1-401 (Formula Grants).
``(v) 69-8303-0-7-401 (Formula Grants and Research).
``(vi) 69-1127-0-1-401 (Interstate Transfer Grants--
Transit).
``(vii) 69-1125-0-1-401 (Job Access and Reverse Commute).
``(viii) 69-1122-0-1-401 (Miscellaneous Expired Accounts).
``(ix) 69-1139-0-1-401 (Major Capital Investment Grants).
``(x) 69-1121-0-1-401 (Research, Training and Human
Resources).
``(xi) 69-8350-0-7-401 (Trust Fund Share of Expenses).
``(xii) 69-1137-0-1-401 (Transit Planning and Research).
``(xiii) 69-1136-0-1-401 (University Transportation
Research).
``(xiv) 69-1128-0-1-401 (Washington Metropolitan Area
Transit Authority).''.
(b) Highway Funding Revenue Alignment.--Section
251(b)(1)(B) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) is amended--
(1) in clause (i)--
(A) by inserting ``for each of fiscal years 2006 through
2009'' after ``submits the budget'';

[[Page S946]]

(B) by inserting ``the obligation limitation and outlay
limit for'' after ``adjustments to''; and
(C) by striking ``provided in clause (ii)(I)(cc).'' and
inserting the following: ``follows:

``(I) OMB shall take the actual level of highway receipts
for the year before the current year and subtract the sum of
the estimated level of highway receipts in clause (iii), plus
any amount previously calculated under clauses (i)(II) and
(ii) for that year.
``(II) OMB shall take the current estimate of highway
receipts for the current year and subtract the estimated
level of highway receipts in clause (iii) for that year.
``(III) OMB shall--

``(aa) take the sum of the amounts calculated under
subclauses (I) and (II) and add that amount to the obligation
limitation set forth in section 6103 of the Safe,
Accountable, Flexible, and Efficient Transportation Equity
Act of 2004 for the highway category for the budget year, and
calculate the outlay change resulting from that change in
obligations relative to that amount for the budget year and
each outyear using current estimates; and
``(bb) after making the calculation under item (aa), adjust
the obligation limitation set forth in section 6103 of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 for the budget year by adding the amount
calculated under subclauses (I) and (II).'';
(2) by striking clause (ii) and inserting the following:
``(ii) When the President submits the supplementary budget
estimates for each of fiscal years 2006 through 2009 under
section 1106 of title 31, United States Code, OMB's Mid-
Session Review shall include adjustments to the obligation
limitation and outlay limit for the highway category for the
budget year and each outyear as follows:

``(I) OMB shall take the most recent estimate of highway
receipts for the current year (based on OMB's Mid-Session
Review) and subtract the estimated level of highway receipts
in clause (iii) plus any amount previously calculated and
included in the President's Budget under clause (i)(II) for
that year.
``(II) OMB shall--

``(aa) take the amount calculated under subclause (I) and
add that amount to the amount of obligations set forth in
section 6103 of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004 for the highway
category for the budget year, and calculate the outlay change
resulting from that change in obligations relative to that
amount for the budget year and each outyear using current
estimates; and
``(bb) after making the calculation under item (aa), adjust
the amount of obligations set forth in section 6103 of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 for the budget year by adding the amount
calculated under subclause (I).''; and
(3) by adding at the end the following:
``(iii) The estimated level of highway receipts for the
purpose of this subparagraph are--

``(I) for fiscal year 2004, $29,945,938,902;
``(II) for fiscal year 2005, $36,294,778,392;
``(III) for fiscal year 2006, $37,766,517,123;
``(IV) for fiscal year 2007, $38,795,061,111;
``(V) for fiscal year 2008, $39,832,795,606; and
``(VI) for fiscal year 2009, $40,964,722,457.

``(iv) In this subparagraph, the term ``highway receipts''
means the governmental receipts and interest credited to the
highway account of the Highway Trust Fund.''.
(c) Continuation of Separate Spending Categories.--For the
purpose of section 251(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 901(c)), the
discretionary spending limits for the highway category and
the mass transit category shall be--
(1) for fiscal year 2004--
(A) $28,876,732,956 for the highway category; and
(B) $6,262,000,000 for the mass transit category;
(2) for fiscal year 2005--
(A) $31,991,246,160 for the highway category; and
(B) $6,903,000,000 for the mass transit category;
(3) for fiscal year 2006--
(A) $35,598,640,776 for the highway category; and
(B) $7,974,000,000 for the mass transit category;
(4) for fiscal year 2007--
(A) $37,871,760,938 for the highway category; and
(B) $8,658,000,000 for the mass transit category;
(5) for fiscal year 2008--
(A) $38,722,907,474 for the highway category; and
(B) $9,222,000,000 for the mass transit category; and
(6) for fiscal year 2009--
(A) $40,537,563,667 for the highway category; and
(B) $9,897,000,000 for the mass transit category.
(d) Additional Adjustments.--Section 251(b)(1) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 901(b)(1)) is amended--
(1) in subparagraph (C)--
(A) in clause (i), by striking ``fiscal years 2000, 2001,
2002, or 2003,'' and inserting ``each of fiscal years 2006,
2007, 2008, and 2009,''; and
(B) in clause (ii), by striking ``2002 and 2003'' and
inserting ``2008 and 2009''; and
(2) in subparagraph (D)--
(A) in clause (i)--
(i) by striking ``1999'' and inserting ``2005'';
(ii) by striking ``2000 through 2003'' and inserting ``2006
through 2009''; and
(iii) by striking ``section 8103 of the Transportation
Equity Act for the 21st Century'' and inserting ``section
6102 of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004''; and
(B) in clause (ii), by striking ``2000, 2001, 2002, or
2003'' and inserting ``2006, 2007, 2008, and 2009''.

SEC. 6103. LEVEL OF OBLIGATION LIMITATIONS.

(a) Highway Category.--For the purpose of section 251(b) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 901(b)), the level of obligation limitations for
the highway category is--
(1) for fiscal year 2004, $34,651,000,000;
(2) for fiscal year 2005, $38,927,000,000;
(3) for fiscal year 2006, $40,186,000,000;
(4) for fiscal year 2007, $40,229,000,000;
(5) for fiscal year 2008, $40,563,000,000; and
(6) for fiscal year 2009, $45,622,000,000.
(b) Mass Transit Category.--For the purpose of section
251(b) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 901(b)), the level of obligation
limitations for the mass transit category is--
(1) for fiscal year 2004, $7,265,877;
(2) for fiscal year 2005, $8,650,000;
(3) for fiscal year 2006, $9,085,123;
(4) for fiscal year 2007, $9,600,000;
(5) for fiscal year 2008, $10,490,000; and
(6) for fiscal year 2009, $11,430,000.

For the purpose of this subsection, the term ``obligation
limitations'' means the sum of budget authority and
obligation limitations.
______

SA 2286. Mr. WARNER (for himself, Mrs. Clinton, Mr. DeWine, and Mrs.
Murray) proposed an amendment to amendment SA 2285 proposed by Mr.
Inhofe to the bill S. 1072, to authorize funds for Federal-aid
highways, highway safety programs, and transit programs, and for other
purposes; as follows:

Beginning on page 118, strike line 20 and all that follows
through page 129, line 18, and insert the following:
``(3) Primary safety belt law.--The term `primary safety
belt law' means a law that authorizes a law enforcement
officer to issue a citation for the failure of the operator
of, or any passenger in, a motor vehicle to wear a safety
belt as required by State law, based solely on that failure
and without regard to whether there is any other violation of
law.
``(4) Safety project under any other section.--
``(A) In general.--The term `safety project under any other
section' means a project carried out for the purpose of
safety under any other section of this title.
``(B) Inclusion.--The term `safety project under any other
section' includes a project to--
``(i) promote the awareness of the public and educate the
public concerning highway safety matters; or
``(ii) enforce highway safety laws.
``(5) State highway safety improvement program.--The term
`State highway safety improvement program' means projects or
strategies included in the State strategic highway safety
plan carried out as part of the State transportation
improvement program under section 135(f).
``(6) State strategic highway safety plan.--The term `State
strategic highway safety plan' means a plan developed by the
State transportation department that--
``(A) is developed after consultation with--
``(i) a highway safety representative of the Governor of
the State;
``(ii) regional transportation planning organizations and
metropolitan planning organizations, if any;
``(iii) representatives of major modes of transportation;
``(iv) State and local traffic enforcement officials;
``(v) persons responsible for administering section 130 at
the State level;
``(vi) representatives conducting Operation Lifesaver;
``(vii) representatives conducting a motor carrier safety
program under section 31104 or 31107 of title 49;
``(viii) motor vehicle administration agencies; and
``(ix) other major State and local safety stakeholders;
``(B) analyzes and makes effective use of State, regional,
or local crash data;
``(C) addresses engineering, management, operation,
education, enforcement, and emergency services elements of
highway safety as key factors in evaluating highway projects;
``(D) considers safety needs of, and high-fatality segments
of, public roads;
``(E) considers the results of State, regional, or local
transportation and highway safety planning processes;
``(F) describes a program of projects or strategies to
reduce or eliminate safety hazards;
``(G) is approved by the Governor of the State or a
responsible State agency; and
``(H) is consistent with the requirements of section
135(f).
``(b) Program.--
``(1) In general.--The Secretary shall carry out a highway
safety improvement program.
``(2) Purpose.--The purpose of the highway safety
improvement program shall be to

[[Page S947]]

achieve a significant reduction in traffic fatalities and
serious injuries on public roads.
``(c) Eligibility.--
``(1) In general.--To obligate funds apportioned under
section 104(b)(5) to carry out this section, a State shall
have in effect a State highway safety improvement program
under which the State--
``(A) develops and implements a State strategic highway
safety plan that identifies and analyzes highway safety
problems and opportunities as provided in paragraph (2);
``(B) produces a program of projects or strategies to
reduce identified safety problems;
``(C) evaluates the plan on a regular basis to ensure the
accuracy of the data and priority of proposed improvements;
and
``(D) submits to the Secretary an annual report that--
``(i) describes, in a clearly understandable fashion, not
less than 5 percent of locations determined by the State,
using criteria established in accordance with paragraph
(2)(B)(ii), as exhibiting the most severe safety needs; and
``(ii) contains an assessment of--

``(I) potential remedies to hazardous locations identified;
``(II) estimated costs associated with those remedies; and
``(III) impediments to implementation other than cost
associated with those remedies.

``(2) Identification and analysis of highway safety
problems and opportunities.--As part of the State strategic
highway safety plan, a State shall--
``(A) have in place a crash data system with the ability to
perform safety problem identification and countermeasure
analysis;
``(B) based on the analysis required by subparagraph (A)--
``(i) identify hazardous locations, sections, and elements
(including roadside obstacles, railway-highway crossing
needs, and unmarked or poorly marked roads) that constitute a
danger to motorists, bicyclists, pedestrians, and other
highway users; and
``(ii) using such criteria as the State determines to be
appropriate, establish the relative severity of those
locations, in terms of accidents, injuries, deaths, traffic
volume levels, and other relevant data;
``(C) adopt strategic and performance-based goals that--
``(i) address traffic safety, including behavioral and
infrastructure problems and opportunities on all public
roads;
``(ii) focus resources on areas of greatest need; and
``(iii) are coordinated with other State highway safety
programs;
``(D) advance the capabilities of the State for traffic
records data collection, analysis, and integration with other
sources of safety data (such as road inventories) in a manner
that--
``(i) complements the State highway safety program under
chapter 4 and the commercial vehicle safety plan under
section 31102 of title 49;
``(ii) includes all public roads;
``(iii) identifies hazardous locations, sections, and
elements on public roads that constitute a danger to
motorists, bicyclists, pedestrians, and other highway users;
and
``(iv) includes a means of identifying the relative
severity of hazardous locations described in clause (iii) in
terms of accidents, injuries, deaths, and traffic volume
levels;
``(E)(i) determine priorities for the correction of
hazardous road locations, sections, and elements (including
railway-highway crossing improvements), as identified through
crash data analysis;
``(ii) identify opportunities for preventing the
development of such hazardous conditions; and
``(iii) establish and implement a schedule of highway
safety improvement projects for hazard correction and hazard
prevention; and
``(F)(i) establish an evaluation process to analyze and
assess results achieved by highway safety improvement
projects carried out in accordance with procedures and
criteria established by this section; and
``(ii) use the information obtained under clause (i) in
setting priorities for highway safety improvement projects.
``(d) Eligible Projects.--
``(1) In general.--A State may obligate funds apportioned
to the State under section 104(b)(5) to carry out--
``(A) any highway safety improvement project on any public
road or publicly owned bicycle or pedestrian pathway or
trail; or
``(B) as provided in subsection (e), for other safety
projects.
``(2) Use of other funding for safety.--
``(A) Effect of section.--Nothing in this section prohibits
the use of funds made available under other provisions of
this title for highway safety improvement projects.
``(B) Use of other funds.--States are encouraged to address
the full scope of their safety needs and opportunities by
using funds made available under other provisions of this
title (except a provision that specifically prohibits that
use).
``(e) Flexible Funding for States With a Strategic Highway
Safety Plan.--
``(1) In general.--To further the implementation of a State
strategic highway safety plan, a State may use up to 25
percent of the amount of funds made available under this
section for a fiscal year to carry out safety projects under
any other section as provided in the State strategic highway
safety plan.
``(2) Other transportation and highway safety plans.--
Nothing in this subsection requires a State to revise any
State process, plan, or program in effect on the date of
enactment of this section.
``(f) Reports.--
``(1) In general.--A State shall submit to the Secretary a
report that--
``(A) describes progress being made to implement highway
safety improvement projects under this section;
``(B) assesses the effectiveness of those improvements; and
``(C) describes the extent to which the improvements funded
under this section contribute to the goals of--
``(i) reducing the number of fatalities on roadways;
``(ii) reducing the number of roadway-related injuries;
``(iii) reducing the occurrences of roadway-related
crashes;
``(iv) mitigating the consequences of roadway-related
crashes; and
``(v) reducing the occurrences of roadway-railroad grade
crossing crashes.
``(2) Contents; schedule.--The Secretary shall establish
the content and schedule for a report under paragraph (1).
``(3) Transparency.--The Secretary shall make reports under
paragraph (1) available to the public through--
``(A) the Internet site of the Department; and
``(B) such other means as the Secretary determines to be
appropriate.
``(4) Discovery and admission into evidence of certain
reports, surveys, and information.--Notwithstanding any other
provision of law, no report, survey, schedule, list, or other
data compiled or collected for any purpose directly relating
to paragraph (1) or subsection (c)(1)(D), or published by the
Secretary in accordance with paragraph (3), shall be--
``(A) subject to discovery or admitted into evidence in any
Federal or State judicial proceeding; or
``(B) considered for any other purpose in any action for
damages arising from an occurrence at a location identified
or addressed in the report, survey, schedule, list, or other
collection of data.
``(g) Federal Share of Highway Safety Improvement
Projects.--Except as provided in sections 120 and 130, the
Federal share of the cost of a highway safety improvement
project carried out with funds made available under this
section shall be 90 percent.
``(h) Funds for Bicycle and Pedestrian Safety.--A State
shall allocate for bicycle and pedestrian improvements in the
State a percentage of the funds remaining after
implementation of sections 130(e) and 150, in an amount that
is equal to or greater than the percentage of all fatal
crashes in the States involving bicyclists and pedestrians.
``(i) Roadway Safety Improvements for Older Drivers and
Pedestrians.--For each of fiscal years 2004 through 2009,
$25,000,000 is authorized to be appropriated out of the
Highway Trust Fund (other than the Mass Transit Account) for
projects in all States to improve traffic signs and pavement
markings in a manner consistent with the recommendations
included in the publication of the Federal Highway
Administration entitled `Guidelines and Recommendations to
Accommodate Older Drivers and Pedestrians (FHWA-RD-01-103)'
and dated October 2001.
``(j) Use of Funds.--
``(1) Projects under section 402.--For fiscal year 2005 and
each fiscal year thereafter, 10 percent of the funds made
available to a State under this section shall be obligated
for projects under section 402, unless by October 1 of the
fiscal year, the State--
``(A) has in effect a primary safety belt law; or
``(B) demonstrates that the safety belt use rate in the
State is at least 90 percent.
``(2) Withholding.--
``(A) In general.--For fiscal year 2007, the Secretary
shall withhold 2 percent, and for each fiscal year
thereafter, the Secretary shall withhold 4 percent, of the
funds apportioned to a State under paragraphs (1), (3), and
(4) of section 104(b) and section 144 if, by October 1 of
that fiscal year, the State does not--
``(i) have in effect a primary safety belt law; or
``(ii) demonstrate that the safety belt use rate in the
State is at least 90 percent.
``(B) Restoration.--If, by the date that is 3 years after
the date on which funds are withheld from a State under
subparagraph (A), the State has in effect a primary safety
belt law or has demonstrated that the safety belt use rate in
the State is at least 90 percent, the apportionment of the
State shall be increased by the amount withheld.
``(C) Lapse.--If, by the date that is 3 years after the
date on which funds are withheld from a State under
subparagraph (A), the State does not have in effect a primary
safety belt law or has not demonstrated that the safety belt
use rate in the State is at least 90 percent, the amount
withheld shall lapse.''.
______

SA 2287. Mr. FEINGOLD (for himself and Mr. Corzine) submitted an
amendment intended to be proposed to amendment SA 2285 proposed by Mr.
Inhofe to the bill S. 1072, to authorize funds for Federal-aid
highways, highway safety programs, and transit programs, and for other
purposes; which was ordered to lie on the table; as follows:

[[Page S948]]

On page 1104, after line 25, insert the following:

TITLE__WARTIME TREATMENT STUDY ACT

SEC. __01. SHORT TITLE.

This title may be cited as the ``Wartime Treatment Study
Act''.

SEC. __02. FINDINGS.

Congress makes the following findings:
(1) During World War II, the United States successfully
fought the spread of Nazism and fascism by Germany, Italy,
and Japan.
(2) Nazi Germany persecuted and engaged in genocide against
Jews and certain other groups. By the end of the war,
6,000,000 Jews had perished at the hands of Nazi Germany.
United States Government policies, however, restricted entry
to the United States to Jewish and other refugees who sought
safety from Nazi persecution.
(3) While we were at war, the United States treated the
Japanese American, German American, and Italian American
communities as suspect.
(4) The United States Government should conduct an
independent review to assess fully and acknowledge these
actions. Congress has previously reviewed the United States
Government's wartime treatment of Japanese Americans through
the Commission on Wartime Relocation and Internment of
Civilians. An independent review of the treatment of German
Americans and Italian Americans and of Jewish refugees
fleeing persecution and genocide has not yet been undertaken.
(5) During World War II, the United States Government
branded as ``enemy aliens'' more than 600,000 Italian-born
and 300,000 German-born United States resident aliens and
their families and required them to carry Certificates of
Identification, limited their travel, and seized their
personal property. At that time, these groups were the two
largest foreign-born groups in the United States.
(6) During World War II, the United States Government
arrested, interned or otherwise detained thousands of
European Americans, some remaining in custody for years after
cessation of World War II hostilities, and repatriated,
exchanged, or deported European Americans, including
American-born children, to hostile, war-torn European Axis
nations, many to be exchanged for Americans held in those
nations.
(7) Pursuant to a policy coordinated by the United States
with Latin American countries, many European Latin Americans,
including German and Austrian Jews, were captured, shipped to
the United States and interned. Many were later expatriated,
repatriated or deported to hostile, war-torn European Axis
nations during World War II, most to be exchanged for
Americans and Latin Americans held in those nations.
(8) Millions of European Americans served in the armed
forces and thousands sacrificed their lives in defense of the
United States.
(9) The wartime policies of the United States Government
were devastating to the Italian Americans and German American
communities, individuals and their families. The detrimental
effects are still being experienced.
(10) Prior to and during World War II, the United States
restricted the entry of Jewish refugees who were fleeing
persecution and sought safety in the United States. During
the 1930's and 1940's, the quota system, immigration
regulations, visa requirements, and the time required to
process visa applications affected the number of Jewish
refugees, particularly those from Germany and Austria, who
could gain admittance to the United States.
(11) Time is of the essence for the establishment of
commissions, because of the increasing danger of destruction
and loss of relevant documents, the advanced age of potential
witnesses and, most importantly, the advanced age of those
affected by the United States Government's policies. Many who
suffered have already passed away and will never know of this
effort.

SEC. __03. DEFINITIONS.

In this title:
(1) During world war ii.--The term ``during World War II''
refers to the period between September 1, 1939, through
December 31, 1948.
(2) European americans.--
(A) In general.--The term ``European Americans'' refers to
United States citizens and permanent resident aliens of
European ancestry, including Italian Americans, German
Americans, Hungarian Americans, Romanian Americans, and
Bulgarian Americans.
(B) Italian americans.--The term ``Italian Americans''
refers to United States citizens and permanent resident
aliens of Italian ancestry.
(C) German americans.--The term ``German Americans'' refers
to United States citizens and permanent resident aliens of
German ancestry.
(3) European latin americans.--The term ``European Latin
Americans'' refers to persons of European ancestry, including
Italian or German ancestry, residing in a Latin American
nation during World War II.

Subtitle A--Commission on Wartime Treatment of European Americans

SEC. __101. ESTABLISHMENT OF COMMISSION ON WARTIME TREATMENT
OF EUROPEAN AMERICANS.

(a) In General.--There is established the Commission on
Wartime Treatment of European Americans (referred to in this
subtitle as the ``European American Commission'').
(b) Membership.--The European American Commission shall be
composed of 7 members, who shall be appointed not later than
90 days after the date of enactment of this Act as follows:
(1) Three members shall be appointed by the President.
(2) Two members shall be appointed by the Speaker of the
House of Representatives, in consultation with the minority
leader.
(3) Two members shall be appointed by the majority leader
of the Senate, in consultation with the minority leader.
(c) Terms.--The term of office for members shall be for the
life of the European American Commission. A vacancy in the
European American Commission shall not affect its powers, and
shall be filled in the same manner in which the original
appointment was made.
(d) Representation.--The European American Commission shall
include 2 members representing the interests of Italian
Americans and 2 members representing the interests of German
Americans.
(e) Meetings.--The President shall call the first meeting
of the European American Commission not later than 120 days
after the date of enactment of this Act.
(f) Quorum.--Four members of the European American
Commission shall constitute a quorum, but a lesser number may
hold hearings.
(g) Chairman.--The European American Commission shall elect
a Chairman and Vice Chairman from among its members. The term
of office of each shall be for the life of the European
American Commission.
(h) Compensation.--
(1) In general.--Members of the European American
Commission shall serve without pay.
(2) Reimbursement of expenses.--All members of the European
American Commission shall be reimbursed for reasonable travel
and subsistence, and other reasonable and necessary expenses
incurred by them in the performance of their duties.

SEC. __102. DUTIES OF THE EUROPEAN AMERICAN COMMISSION.

(a) In General.--It shall be the duty of the European
American Commission to review the United States Government's
wartime treatment of European Americans and European Latin
Americans as provided in subsection (b).
(b) Scope of Review.--The European American Commission's
review shall include the following:
(1) A comprehensive review of the facts and circumstances
surrounding United States Government actions during World War
II that violated the civil liberties of European Americans
and European Latin Americans pursuant to the Alien Enemies
Acts (50 U.S.C. 21-24), Presidential Proclamations 2526,
2527, 2655, 2662, Executive Orders 9066 and 9095, and any
directive of the United States Government pursuant to such
law, proclamations, or executive orders respecting the
registration, arrest, exclusion, internment, exchange, or
deportment of European Americans and European Latin
Americans. This review shall include an assessment of the
underlying rationale of the United States Government's
decision to develop related programs and policies, the
information the United States Government received or acquired
suggesting the related programs and policies were necessary,
the perceived benefit of enacting such programs and policies,
and the immediate and long-term impact of such programs and
policies on European Americans and European Latin Americans
and their communities.
(2) A review of United States Government action with
respect to European Americans pursuant to the Alien Enemies
Acts (50 U.S.C. 21-24) and Executive Order 9066 during World
War II, including registration requirements, travel and
property restrictions, establishment of restricted areas,
raids, arrests, internment, exclusion, policies relating to
the families and property that excludees and internees were
forced to abandon, internee employment by American companies
(including a list of such companies and the terms and type of
employment), exchange, repatriation, and deportment, and the
immediate and long-term effect of such actions, particularly
internment, on the lives of those affected. This review shall
include a list of all temporary detention and long-term
internment facilities.
(3) A brief review of the participation by European
Americans in the United States Armed Forces including the
participation of European Americans whose families were
excluded, interned, repatriated, or exchanged.
(4) A recommendation of appropriate remedies, including how
civil liberties can be better protected during war, or an
actual, attempted, or threatened invasion or incursion, an
assessment of the continued viability of the Alien Enemies
Acts (50 U.S.C. 21-24), and public education programs related
to the United States Government's wartime treatment of
European Americans and European Latin Americans during World
War II.
(c) Field Hearings.--The European American Commission shall
hold public hearings in such cities of the United States as
it deems appropriate.
(d) Report.--The European American Commission shall submit
a written report of its findings and recommendations to
Congress not later than 18 months after the date of the first
meeting called pursuant to section __101(e).

[[Page S949]]

SEC. __103. POWERS OF THE EUROPEAN AMERICAN COMMISSION.

(a) In General.--The European American Commission or, on
the authorization of the Commission, any subcommittee or
member thereof, may, for the purpose of carrying out the
provisions of this subtitle, hold such hearings and sit and
act at such times and places, and request the attendance
and testimony of such witnesses and the production of such
books, records, correspondence, memorandum, papers, and
documents as the Commission or such subcommittee or member
may deem advisable. The European American Commission may
request the Attorney General to invoke the aid of an
appropriate United States district court to require, by
subpoena or otherwise, such attendance, testimony, or
production.
(b) Government Information and Cooperation.--The European
American Commission may acquire directly from the head of any
department, agency, independent instrumentality, or other
authority of the executive branch of the Government,
available information that the European American Commission
considers useful in the discharge of its duties. All
departments, agencies, and independent instrumentalities, or
other authorities of the executive branch of the Government
shall cooperate with the European American Commission and
furnish all information requested by the European American
Commission to the extent permitted by law, including
information collected as a result of Public Law 96-317 and
Public Law 106-451. For purposes of the Privacy Act (5 U.S.C.
552a(b)(9)), the European American Commission shall be deemed
to be a committee of jurisdiction.

SEC. __104. ADMINISTRATIVE PROVISIONS.

The European American Commission is authorized to--
(1) appoint and fix the compensation of such personnel as
may be necessary, without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such subtitle
relating to classification and General Schedule pay rates,
except that the compensation of any employee of the
Commission may not exceed a rate equivalent to the rate
payable under GS-15 of the General Schedule under section
5332 of such subtitle;
(2) obtain the services of experts and consultants in
accordance with the provisions of section 3109 of such title;
(3) obtain the detail of any Federal Government employee,
and such detail shall be without reimbursement or
interruption or loss of civil service status or privilege;
(4) enter into agreements with the Administrator of General
Services for procurement of necessary financial and
administrative services, for which payment shall be made by
reimbursement from funds of the Commission in such amounts as
may be agreed upon by the Chairman of the Commission and the
Administrator;
(5) procure supplies, services, and property by contract in
accordance with applicable laws and regulations and to the
extent or in such amounts as are provided in appropriation
Acts; and
(6) enter into contracts with Federal or State agencies,
private firms, institutions, and agencies for the conduct of
research or surveys, the preparation of reports, and other
activities necessary to the discharge of the duties of the
Commission, to the extent or in such amounts as are provided
in appropriation Acts.

SEC. __105. AUTHORIZATION OF APPROPRIATIONS.

From funds currently authorized to the Department of
Justice, there are authorized to be appropriated not to
exceed $500,000 to carry out the purposes of this subtitle.

SEC. __106. SUNSET.

The European American Commission shall terminate 60 days
after it submits its report to Congress.

Subtitle B--Commission on Wartime Treatment of Jewish Refugees

SEC. __201. ESTABLISHMENT OF COMMISSION ON WARTIME TREATMENT
OF JEWISH REFUGEES.

(a) In General.--There is established the Commission on
Wartime Treatment of Jewish Refugees (referred to in this
subtitle as the ``Jewish Refugee Commission'').
(b) Membership.--The Jewish Refugee Commission shall be
composed of 7 members, who shall be appointed not later than
90 days after the date of enactment of this Act as follows:
(1) Three members shall be appointed by the President.
(2) Two members shall be appointed by the Speaker of the
House of Representatives, in consultation with the Minority
Leader.
(3) Two members shall be appointed by the Majority Leader
of the Senate, in consultation with the minority leader.
(c) Terms.--The term of office for members shall be for the
life of the Jewish Refugee Commission. A vacancy in the
Jewish Refugee Commission shall not affect its powers, and
shall be filled in the same manner in which the original
appointment was made.
(d) Representation.--The Jewish Refugee Commission shall
include 2 members representing the interests of Jewish
refugees.
(e) Meetings.--The President shall call the first meeting
of the Jewish Refugee Commission not later than 120 days
after the date of enactment of this Act.
(f) Quorum.--Four members of the Jewish Refugee Commission
shall constitute a quorum, but a lesser number may hold
hearings.
(g) Chairman.--The Jewish Refugee Commission shall elect a
Chairman and Vice Chairman from among its members. The term
of office of each shall be for the life of the Jewish Refugee
Commission.
(h) Compensation.--
(1) In general.--Members of the Jewish Refugee Commission
shall serve without pay.
(2) Reimbursement of expenses.--All members of the Jewish
Refugee Commission shall be reimbursed for reasonable travel
and subsistence, and other reasonable and necessary expenses
incurred by them in the performance of their duties.

SEC. __202. DUTIES OF THE JEWISH REFUGEE COMMISSION.

(a) In General.--It shall be the duty of the Jewish Refugee
Commission to review the United States Government's refusal
to allow Jewish and other refugees fleeing persecution in
Europe entry to the United States as provided in
subsection (b).
(b) Scope of Review.--The Jewish Refugee Commission's
review shall cover the period between January 1, 1933,
through December 31, 1945, and shall include, to the greatest
extent practicable, the following:
(1) A review of the United States Government's refusal to
allow Jewish and other refugees fleeing persecution and
genocide entry to the United States, including a review of
the underlying rationale of the United States Government's
decision to refuse the Jewish and other refugees entry, the
information the United States Government received or acquired
suggesting such refusal was necessary, the perceived benefit
of such refusal, and the impact of such refusal on the
refugees.
(2) A review of Federal refugee policy relating to those
fleeing persecution or genocide, including recommendations
for making it easier for future victims of persecution or
genocide to obtain refuge in the United States.
(c) Field Hearings.--The Jewish Refugee Commission shall
hold public hearings in such cities of the United States as
it deems appropriate.
(d) Report.--The Jewish Refugee Commission shall submit a
written report of its findings and recommendations to
Congress not later than 18 months after the date of the first
meeting called pursuant to section __201(e).

SEC. __203. POWERS OF THE JEWISH REFUGEE COMMISSION.

(a) In General.--The Jewish Refugee Commission or, on the
authorization of the Commission, any subcommittee or member
thereof, may, for the purpose of carrying out the provisions
of this subtitle, hold such hearings and sit and act at such
times and places, and request the attendance and testimony of
such witnesses and the production of such books, records,
correspondence, memorandum, papers, and documents as the
Commission or such subcommittee or member may deem advisable.
The Jewish Refugee Commission may request the Attorney
General to invoke the aid of an appropriate United States
district court to require, by subpoena or otherwise, such
attendance, testimony, or production.
(b) Government Information and Cooperation.--The Jewish
Refugee Commission may acquire directly from the head of any
department, agency, independent instrumentality, or other
authority of the executive branch of the Government,
available information that the Jewish Refugee Commission
considers useful in the discharge of its duties. All
departments, agencies, and independent instrumentalities, or
other authorities of the executive branch of the Government
shall cooperate with the Jewish Refugee Commission and
furnish all information requested by the Jewish Refugee
Commission to the extent permitted by law, including
information collected as a result of Public Law 96-317 and
Public Law 106-451. For purposes of the Privacy Act (5 U.S.C.
552a(b)(9)), the Jewish Refugee Commission shall be deemed to
be a committee of jurisdiction.

SEC. __204. ADMINISTRATIVE PROVISIONS.

The Jewish Refugee Commission is authorized to--
(1) appoint and fix the compensation of such personnel as
may be necessary, without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates,
except that the compensation of any employee of the
Commission may not exceed a rate equivalent to the rate
payable under GS-15 of the General Schedule under section
5332 of such title;
(2) obtain the services of experts and consultants in
accordance with the provisions of section 3109 of such title;
(3) obtain the detail of any Federal Government employee,
and such detail shall be without reimbursement or
interruption or loss of civil service status or privilege;
(4) enter into agreements with the Administrator of General
Services for procurement of necessary financial and
administrative services, for which payment shall be made by
reimbursement from funds of the Commission in such amounts as
may be agreed upon by the Chairman of the Commission and the
Administrator;
(5) procure supplies, services, and property by contract in
accordance with applicable laws and regulations and to the
extent or in such amounts as are provided in appropriation
Acts; and

[[Page S950]]

(6) enter into contracts with Federal or State agencies,
private firms, institutions, and agencies for the conduct of
research or surveys, the preparation of reports, and other
activities necessary to the discharge of the duties of the
Commission, to the extent or in such amounts as are provided
in appropriation Acts.

SEC. __205. AUTHORIZATION OF APPROPRIATIONS.

From funds currently authorized to the Department of
Justice, there are authorized to be appropriated not to
exceed $500,000 to carry out the purposes of this subtitle.

SEC. __206. SUNSET.

The Jewish Refugee Commission shall terminate 60 days after
it submits its report to Congress.
______

SA 2288. Mr. FEINGOLD submitted an amendment intended to be proposed
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was ordered to lie on
the table; as follows:

On page 1104, after line 25, add the following:

TITLE V--BUY AMERICAN ACT IMPROVEMENTS

SEC. 5001. SHORT TITLE.

This title may be cited as the ``Buy American Improvement
Act of 2003''.

SEC. 5002. REQUIREMENTS FOR WAIVERS.

(a) In General.--Section 2 of the Buy American Act (41
U.S.C. 10a) is amended--
(1) by striking ``Notwithstanding'' and inserting the
following:
``(a) In General.--Notwithstanding''; and
(2) by adding at the end the following:
``(b) Special Rules.--The following rules shall apply in
carrying out the provisions of subsection (a):
``(1) Public interest waiver.--A determination that it is
not in the public interest to enter into a contract in
accordance with this Act may not be made after a notice of
solicitation of offers for the contract is published in
accordance with section 18 of the Office of Federal
Procurement Policy Act (41 U.S.C. 416) and section 8(e) of
the Small Business Act (15 U.S.C. 637(e)).
``(2) Domestic bidder.--A Federal agency entering into a
contract shall give preference to a company submitting an
offer on the contract that manufactures in the United States
the article, material, or supply for which the offer is
solicited, if--
``(A) that company's offer is substantially the same as an
offer made by a company that does not manufacture the
article, material, or supply in the United States; or
``(B) that company is the only company that manufactures in
the United States the article, material, or supply for which
the offer is solicited.
``(3) Use outside the united states.--
``(A) In general.--Subsection (a) shall apply without
regard to whether the articles, materials, or supplies to be
acquired are for use outside the United States if the
articles, materials, or supplies are not needed on an urgent
basis or if they are acquired on a regular basis.
``(B) Cost analysis.--In any case where the articles,
materials, or supplies are to be acquired for use outside the
United States and are not needed on an urgent basis, before
entering into a contract an analysis shall be made of the
difference in the cost for acquiring the articles, materials,
or supplies from a company manufacturing the articles,
materials, or supplies in the United States (including the
cost of shipping) and the cost for acquiring the articles,
materials, or supplies from a company manufacturing the
articles, materials, or supplies outside the United States
(including the cost of shipping).
``(4) Domestic availability.--The head of a Federal agency
may not make a determination under subsection (a) that an
article, material, or supply is not mined, produced, or
manufactured, as the case may be, in the United States in
sufficient and reasonably available commercial quantities and
of satisfactory quality, unless the head of the agency has
conducted a study and, on the basis of such study, determined
that--
``(A) domestic production cannot be initiated to meet the
procurement needs; and
``(B) a comparable article, material, or supply is not
available from a company in the United States.
``(c) Reports.--
``(1) In general.--Not later than 60 days after the end of
each fiscal year, the head of each Federal agency shall
submit to Congress a report on the acquisitions that were
made of articles, materials, or supplies by the agency in
that fiscal year from entities that manufacture the articles,
materials, or supplies outside the United States.
``(2) Content of report.--The report for a fiscal year
under paragraph (1) shall separately indicate the following
information:
``(A) The dollar value of any articles, materials, or
supplies that were manufactured outside the United States.
``(B) An itemized list of all waivers granted with respect
to such articles, materials, or supplies under this Act.
``(C) A summary of--
``(i) the total procurement funds expended on articles,
materials, and supplies manufactured inside the United
States; and
``(ii) the total procurement funds expended on articles,
materials, and supplies manufactured outside the United
States.
``(3) Public availability.--The head of each Federal agency
submitting a report under paragraph (1) shall make the report
publicly available by posting on an Internet website.''.
(b) Definitions.--Section 1 of the Buy American Act (41
U.S.C. 10c) is amended by striking subsection (c) and
inserting the following:
``(c) Federal Agency.--The term `Federal agency' means any
executive agency (as defined in section 4(1) of the Federal
Procurement Policy Act (41 U.S.C. 403(1))) or any
establishment in the legislative or judicial branch of the
Government.''.
(c) Conforming Amendments.--
(1) Section 2 of the Buy American Act (41 U.S.C. 10a) is
amended by striking ``department or independent
establishment'' and inserting ``Federal agency''.
(2) Section 3 of such Act (41 U.S.C. 10b) is amended--
(A) by striking ``department or independent establishment''
in subsection (a), and inserting ``Federal agency''; and
(B) by striking ``department, bureau, agency, or
independent establishment'' in subsection (b) and inserting
``Federal agency''.
(3) Section 633 of the National Military Establishment
Appropriations Act, 1950 (41 U.S.C. 10d) is amended by
striking ``department or independent establishment'' and
inserting ``Federal agency''.

SEC. 5003. GAO REPORT AND RECOMMENDATIONS.

(a) Requirement for Report.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Comptroller General of the United
States shall report to Congress recommendations for
determining, for purposes of applying the waiver provision of
section 2(a) of the Buy American Act--
(A) unreasonable cost; and
(B) inconsistent with the public interest.
(2) Report to include recommended definitions.--The report
shall include recommendations for a statutory definition of
unreasonable cost and standards for determining inconsistency
with the public interest.
(b) Waiver Procedures.--The report described in subsection
(a) shall also include recommendations for establishing
procedures for applying the waiver provisions of the Buy
American Act that can be consistently applied.

SEC. 5004. DUAL-USE TECHNOLOGIES.

The head of a Federal agency (as defined in section 1(c) of
the Buy American Act (as amended by section 5002) may not
enter into a contract, nor permit a subcontract under a
contract of the Federal agency, with a foreign entity that
involves giving the foreign entity plans, manuals, or other
information that would facilitate the manufacture of a dual-
use item on the Commerce Control List unless approval for
providing such plans, manuals, or information has been
obtained in accordance with the provisions of the Export
Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) and
the Export Administration Regulations (15 C.F.R. part 730 et
seq.).
______

SA 2289. Mr. DAYTON submitted an amendment intended to be proposed to
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was ordered to lie on
the table; as follows:

On page 953, between the matter following line 11 and line
12, insert the following:

SEC. 1815. RURAL ROAD SAFETY PROGRAM.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1814(a)), is
amended by adding at the end the following:

``Sec. 176. Rural road safety program

``(a) Findings.--Congress finds that it is in the vital
interest of the Nation that a rural road safety program be
established to ensure that the safety of the traveling public
is enhanced on rural two-lane highways.
``(b) Establishment.--The Secretary shall establish and
implement a rural road safety program in accordance with this
section.
``(c) Apportionments.--
``(1) In general.--On October 1 of each fiscal year, the
Secretary shall apportion to each State to carry out this
section an amount in the ratio of the percentage of the
centerline mileage of two-lane roads in rural areas
functionally classified as minor and major collectors and
arterials in each State bears to the total centerline mileage
of two-lane roads in rural areas functionally classified as
minor and major collectors and arterials in all the States.
``(2) Allocation of apportioned funds.--Within each State,
funds for the rural road safety program for each fiscal year
shall be allocated among State, county, city, and other
levels of government commensurate with each entity's
ownership ratio of eligible two-lane road mileage of two-lane
roads in rural areas functionally classified as minor and
major collectors and arterials.
``(d) Location of Projects.--Funds authorized to carry out
this section shall be available for expenditure only for
activities described in subsection (g).
``(e) Obligation of Funds.--Funds authorized to be
appropriated to carry out this section shall be available for
obligation in the same manner and the same extent as if such

[[Page S951]]

funds were apportioned under section 104(b) of title 23,
United States Code, except that the Secretary is authorized
to waive provisions that the Secretary considers inconsistent
with the purposes of this section.
``(f) Cost Sharing.--The Federal share of a project under
this section shall be 80 percent of the total cost for such
project.
``(g) Transferability.--Notwithstanding any other provision
of law no portion of a State's apportionment allocated for
the rural road safety program may be transferred to any other
apportionment of the State for such fiscal year.
``(h) Use of Funds.--A State that receives an apportionment
under this section may use funds--
``(1) to improve horizontal and vertical alignment;
``(2) to eliminate wheel lane rutting, increase skid
resistance, and smooth roadways;
``(3) to improve sight distances;
``(4) to widen lanes and shoulders;
``(5) to install dedicated turn lanes;
``(6) to install and upgrade guardrails, traffic barriers,
crash cushions, protective devices, and rumblestrips;
``(7) to install traffic and safety lights, improve signage
and pavement markings; and
``(8) to implement other safety activities designated by
the Secretary.
``(i) Program.--Not later than 180 days after the date of
enactment of this Act, each State that receives an
apportionment under this section shall conduct and
systematically maintain an engineering survey of all two-lane
rural roads classified as minor and major collectors and
minor arterials--
``(1) to identify dangerous locations, sections, and
elements, including roadside obstacles and unmarked or poorly
marked roads, which may constitute a danger to motorists,
bicyclists, pedestrians, impaired, and ``older'' drivers;
``(2) to assign priorities for the correction of such
locations, sections, and elements; and
``(3) establish and implement a schedule of projects for
improvement of such roads.
``(j) Evaluation.--
``(1) In general.--Each State shall establish an evaluation
process approved by the Secretary to analyze and assess
results achieved by safety improvement projects carried out
in accordance with the procedures and criteria established by
this section.
``(2) Priorities.--Such evaluation process shall develop
cost-benefit data for various types of corrections and
treatments, which shall be used in setting priorities for
safety improvement projects.
``(k) Reporting.--
``(1) In general.--Each State shall report to the Secretary
not later than December 30 of each year, regarding the
progress of implementing safety improvement projects for
danger elimination and the effectiveness of such
improvements.
``(2) State assessment.--Each State report shall contain an
assessment of the cost of, and safety benefits derived from,
the various means and methods used to mitigate or eliminate
dangers and the previous and subsequent accident experience
at dangerous locations.
``(3) Secretary's report.--The Secretary shall submit a
report to the Committee on Environment and Public Works of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives not later than
April 1 of each year regarding the progress of the States in
implementing the rural road safety program. The report
shall--
``(A) include the number of projects undertaken, their
distribution by cost range, road system, means and methods
used, the previous and subsequent accident experience at
improved locations and a cost-benefit analysis; and
``(B) analyze and evaluate each State's program, identify
any State found not to be in compliance with the schedule of
improvements required by subsection (a), and include
recommendations for future implementation of the rural road
safety program.
``(l) Definition of Rural Road.--In this section, the term
``rural road'' means all roads in rural areas.
``(m) Authorization of Appropriations Rural Road Safety
Program.--To carry out the rural road safety program under
this section there are authorized to be appropriated
$1,000,000,000 for each of fiscal years 2004 through 2009.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter I of title 23, United States Code (as amended by
section 1814(c)), is amended by adding at the end the
following:

``176. Rural road safety program.''.
______

SA 2290. Mr. LAUTENBERG submitted an amendment intended to be
proposed to amendment SA 2285 proposed by Mr. Inhofe to the bill S.
1072, to authorize funds for Federal-aid highways, highway safety
programs, and transit programs, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place in subtitle A of title IV, insert
the following:

SEC. 4  . MULTI-STATE INTELLIGENT TRANSPORTATION SYSTEM
OPERATIONS.

(a) In General.--The Secretary of Transportation shall
encourage regional operating organizations, in multistate
metropolitan areas having multiple metropolitan planning
organizations--
(1) to promote regional coordination and cooperation in the
efficient, safe, and secure operation of regional
transportation systems; and
(2) to implement these regional programs in a manner
consistent with the needs of the public safety community.
(b) TRANSCOM's Intelligent Transportation System
Projects.--
(1) Grants.--The Secretary shall make grants to TRANSCOM
for funding capital costs, annual operating costs, and
maintenance costs of intelligent transportation system
projects in the New Jersey--New York--Connecticut
metropolitan region.
(2) Project requirements.--A project shall not be eligible
unless TRANSCOM demonstrates to the satisfaction of the
Secretary that the project will assist the public safety
community by--
(A) providing comprehensive transportation for responding
to major regional incidents; and
(B) supporting evacuation planning for natural and manmade
emergencies.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Transportation
$9,000,000 for fiscal year 2005 and each fiscal year
thereafter to carry out the provisions of this section.
______

SA 2291. Mr. DAYTON submitted an amendment intended to be proposed to
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was ordered to lie on
the table; as follows:

On page 880, before line 7, insert the following:

SEC. 16__. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND
BIODIESEL PURCHASING REQUIREMENT.

Title III of the Energy Policy Act of 1992 is amended by
striking section 306 (42 U.S.C. 13215) and inserting the
following:

``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND
BIODIESEL PURCHASING REQUIREMENT.

``(a) Ethanol-Blended Gasoline.--The head of each Federal
agency shall ensure that, in areas in which ethanol-blended
gasoline is readily available at a generally competitive
price, the Federal agency purchases ethanol-blended gasoline
containing at least 10 percent ethanol rather than
nonethanol-blended gasoline, for use in vehicles used by the
agency.
``(b) Biodiesel.--
``(1) Definition of biodiesel.--In this subsection, the
term `biodiesel' has the meaning given the term in section
312(f).
``(2) Requirement.--The head of each Federal agency shall
ensure that the Federal agency purchases, for use in fueling
fleet vehicles that use diesel fuel used by the Federal
agency at the location at which fleet vehicles of the Federal
agency are centrally fueled, in areas in which the biodiesel-
blended diesel fuel described in subparagraphs (A) and (B) is
available at a generally competitive price--
``(A) as of the date that is 5 years after the date of
enactment of this section, biodiesel-blended diesel fuel that
contains at least 2 percent biodiesel, rather than
nonbiodiesel-blended diesel fuel; and
``(B) as of the date that is 10 years after the date of
enactment of this section, biodiesel-blended diesel fuel that
contains at least 20 percent biodiesel, rather than
nonbiodiesel-blended diesel fuel, for use in vehicles used by
the agency.
``(3) Requirement of federal law.--This subsection does not
constitute a requirement of Federal law for the purposes of
section 312.
``(c) Exemption.--This section does not apply to fuel used
in vehicles described in subparagraphs (A) through (H) of
section 301(9).''.
______

SA 2292. Ms. COLLINS submitted an amendment intended to be proposed
to amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following new section:

SEC. __. FUNDS FOR REBUILDING FISH STOCKS.

Section 105 of the Miscellaneous Appropriations and Offsets
Act, 2004 (division H of the Consolidated Appropriations Act,
2004 (Public Law 108-199)) is repealed.
______

SA 2293. Mr. BURNS submitted an amendment intended to be proposed to
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was ordered to lie on
the table; as follows:

On page 48, between lines 2 and 3, insert the fol lowing;
``(i) Minimum apportionment and criteria.--
``(1) Minimum apportionment.--Notwithstanding any other
provision of this section, the Secretary shall grant to any
State that qualifies under paragraph (2) and has not
received, as a result of other provisions of this

[[Page S952]]

section, at least \1/2\ of 1 percent of the total funds
authorized for a fiscal year for grants under this section,
such additional funds as are necessary to result in such
State receiving \1/2\ of 1 percent of the total funds
authorized for grants under this section for that fiscal
year. Funds for grants under this subsection shall be derived
from pro-rata reduction of grant amounts that otherwise would
be awarded pursuant to other subsections of this section.
``(2) Criteria.--To qualify for a grant under this
subsection, a State--
(A) shall meet the requirements of subsection (a)(2) of
this section; and
(B) shall--
``(i) meet 4 of the 7 criteria for qualifying for grants
under subsection (b)(1) of this section (as that subsection
was as in effect for fiscal year 2003 funding);
``(ii) for the most recent year for which data is
available, have an alcohol-related fatality rate per 100
million vehicle miles traveled that is either lower than the
national average for that year or lower than the rate in that
State in the second most recent year for which data is
available; or
``(iii) for the most recent 3 years for which data is
available, have an average alcohol-related fatality rate per
100 million vehicle miles traveled that is either lower than
the average of the national rate for those 3 years or lower
than the average of such rate in that State for the fourth,
fifth, and sixth most recent years for which data is
available.
``(3) Uses of funds.--Grants under this subsection may be
used for--
``(A) any activity that was an eligible use of grants
under this section for fiscal year 2003;
``(B) any activity otherwise eligible under this section;
and
``(C) any other activity undertaken by the State for the
purpose of reducing impaired driving unless disapproved by
the Secretary on the basis that it bears no relation to that
objective.
______

SA 2294. Ms. COLLINS submitted an amendment intended to be
proposed by her to the bill S. 1072, to authorize funds
for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

INDEPENDENT TRANSPORTATION NETWORK GRANT PROGRAM.

(a) In General.--Chapter 53, as amended by this Act, is
further amended by adding at the end the following:

``Sec. 5341. Independent transportation network grant program

``(a) Grants Authorized.--
``(1) In general.--The Secretary is authorized to award
grants to eligible entities to plan and implement community-
based, non-profit transportation services (referred to in
this section as a `service') to provide affordable
transportation for elderly individuals and individuals with
visual impairments.
``(2) Maximum amounts.--
``(A) Planning grants.--The Secretary shall not award a
planning grant under subsection (b) in an amount which
exceeds $25,000.
``(B) Implementation grants.--The Secretary shall not award
an implementation grant under subsection (c) in an amount
which exceeds $500,000.
``(3) Eligible entities.--States, units of local
government, and non-profit organizations are eligible for
grants under this section.
``(b) Planning Grants.--
``(1) Application.--
``(A) In general.--Each eligible entity desiring a planning
grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
``(B) Selection criteria.--The Secretary, in consultation
with the Federal Transit Administrator, shall authorize
ITNAmerica to periodically convene a diverse panel of experts
who are familiar with the ITN business model, which shall
select successful grantees based on--
``(i) the economic sustainability of the proposed service;
``(ii) community participation in the development of the
service; and
``(iii) need for transportation services within the
geographic area of the service.
``(2) Use of funds.--Planning grants awarded under this
section shall be used to--
``(A) assess the transportation needs of elderly
individuals and individuals with visual impairments within
the geographic area of the service;
``(B) identify the resources available within the community
to meet the needs described in subparagraph (A); and
``(C) develop a detailed business plan for the
implementation of a service.
``(c) Implementation Grants.--
``(1) Application.--
``(A) In general.--Each planning grant recipient shall
submit an application for an implementation grant to the
Secretary that contains a detailed business plan for the
implementation of a service.
``(B) Selection criteria.--The Secretary, in consultation
with the Federal Transit Administrator, shall authorize
ITNAmerica to periodically convene a diverse panel of experts
who are familiar with the ITN business model, which shall
select successful grantees based on--
``(i) the economic sustainability of the proposed service;
``(ii) community participation in the development of the
service; and
``(iii) need for transportation services within the
geographic area of the service.
``(2) Use of funds.--Implementation grants awarded under
this section may be used to--
``(A) recruit transportation volunteers;
``(B) acquire and repair used automobiles; and
``(C) provide transportation services for elderly
individuals and individuals with visual impairments within
the geographic area of the service.
``(d) Matching Requirement.--Not more than 50 percent of
the amount expended on any activity funded through a planning
grant or implementation grant under this section may be
derived from government funds.
``(e) ITNAmerica.--
``(1) Administrative and technical support.--The Secretary
shall award a grant to ITNAmerica to provide administrative
and technical support to the other grantees under this
section.
``(2) Annual conference.--ITNAmerica shall convene a
conference during each of the fiscal years 2007, 2008, and
2009 to provide an opportunity for service directors to share
ideas and strategies.
``(3) Reporting requirements.--Not later than 60 days after
the end of each fiscal year for which it received financial
assistance under this subsection, ITNAmerica shall submit a
report to the Secretary regarding any activities funded under
this subsection.
``(f) Authorization of Appropriations.--
``(1) Planning grants.--There are authorized to be
appropriated to the Secretary for planning grants under
subsection (b)--
``(A) $2,500,000 for fiscal year 2005;
``(B) $1,350,000 for fiscal year 2006;
``(C) $1,100,000 for fiscal year 2007;
``(D) $1,000,000 for fiscal year 2008; and
``(E) $800,000 for fiscal year 2009.
``(2) Implementation grants.--There are authorized to be
appropriated to the Secretary for implementation grants under
subsection (c)--
``(A) $1,000,000 for fiscal year 2005;
``(B) $2,350,000 for fiscal year 2006;
``(C) $2,800,000 for fiscal year 2007;
``(D) $3,200,000 for fiscal year 2008; and
``(E) $3,600,000 for fiscal year 2009.
``(3) Administrative and technical support.--There are
authorized to be appropriated to the Secretary for the
administrative and technical support grant under subsection
(e)--
``(A) $1,500,000 for fiscal year 2005;
``(B) $1,300,000 for fiscal year 2006;
``(C) $1,100,000 for fiscal year 2007;
``(D) $700,000 for fiscal year 2008; and
``(E) $600,000 for fiscal year 2009.''.
(b) Conforming Amendment.--The table of sections for
chapter 53 is amended by adding at the end the following:

``5341. Independent transportation network grant program.''.
______

SA 2295. Mr. BURNS submitted an amendment intended to be proposed to
amendment SA 2285 proposed by Mr. Inhofe to the bill S. 1072, to
authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes; which was ordered to lie on
the table; as follows:

On page 28, line 11, strike ``and''.
On page 28, line 15, strike ``(3).'' and insert ``(3);
and''.
On page 28, between lines 15 and 16, insert the following;
(7) by inserting after subsection (d), as redesignated, the
following:
``(e) Minimum Apportionment and Criteria.--
``(1) Minimum apportionment.--Notwithstanding any other
provision of this section, the Secretary shall grant to any
State that qualifies under paragraph (2) and has not
received, as a result of other provisions of this section, at
least \1/2\ of 1 percent of the total funds authorized for a
fiscal year for grants under this section, such additional
funds as are necessary to result in such State receiving \1/
2\ of 1 percent of the total funds authorized for grants
under this section for that fiscal year. Funds for grants
under this subsection shall be derived from pro-rata
reduction of grant amounts that otherwise would be awarded
pursuant to other subsections of this section.
``(2) Criteria.--To qualify for a grant under this
subsection, a State--
``(A) shall meet the requirements of subsection (a)(2) of
this section; and
``(B) shall--
``(i) meet 3 of the 6 criteria for qualifying for grants
under this section (as this section was in effect for fiscal
year 2003 funding); or
``(ii) for the most recent year for which data is
available, have a seat belt utilization rate that is either
higher than the national average for that year or higher than
the utilization rate in that State in the second most recent
year for which data is available.
``(3) Uses of funds.--Grants under this subsection may be
used for--
``(A) any activity that was an eligible use of grants under
this section for fiscal year 2003;
``(B) any activity otherwise eligible under this section,
other than activities that are made eligible only for those
States that

[[Page S953]]

meet the criteria set forth in subparagraph (b)(2)(A) of this
section; and
``(C) any other activity undertaken by the State for the
purpose of increasing seat belt utilization unless
disapproved by the Secretary on the basis that it bears no
relation to that objective.''.
______

SA 2296. Mr. FITZGERALD submitted an amendment intended to be
proposed by him to the bill S. 1072, to authorize funds for Federal-aid
highways, highway safety programs, and transit programs, and for other
purposes; which was ordered to lie on the table; as follows:

On page 705, between lines 12 and 13, insert the following:

SEC. __. STATE-BY-STATE COMPARISON OF HIGHWAY CONSTRUCTION
COSTS.

(a) Collection of Data.--
(1) In general.--The Administrator of the Federal Highway
Administration (referred to in this section as the
``Administrator'') shall collect from States any bid price
data that is necessary to make State-by-State comparisons of
highway construction costs.
(2) Data required.--In determining which data to collect
and the procedures for collecting data, the Administrator
shall take into account the data collection deficiencies
identified in the report prepared by the General Accounting
Office numbered GAO-04-113R.
(b) Report.--
(1) In general.--The Administrator shall submit to Congress
an annual report on the bid price data collected under
subsection (a).
(2) Inclusions.--The report shall include--
(A) State-by-State comparisons of highway construction
costs for the previous fiscal year (including the cost to
construct a 1-mile road segment of a standard design, as
determined by the Administrator); and
(B) a description of the competitive bidding procedures
used in each State.

____________________