S.Amdt. 2587

TEXT OF AMENDMENTS

SA 2558. Mrs. MURRAY (for herself, Ms. Collins, Mrs. Boxer, Ms.
Cantwell, Mrs. Clinton, Mr. Corzine, Mr. Edwards, Mrs. Feinstein, Mr.
Kennedy, Mr. Lautenberg, Ms. Mikulski, Ms. Murkowski, Mr. Schumer, Ms.
Snowe, and Mr. Stevens) submitted an amendment intended to be proposed
to amendment SA 2491 submitted by Mrs. Murray (for herself, Ms.
Collins, Mrs. Boxer, Ms. Cantwell, Mrs. Clinton, Mr. Cochran, Mr.
Corzine, Mr. Edwards, Mrs. Feinstein, Mr. Kennedy, Mr. Lautenberg, Ms.
Mikulski, Ms. Murkowski, Mr. Schumer, Ms. Snowe, and Mr. Stevens) and
intended to be proposed 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:

Beginning on page 38, strike line 22 and all that follows
through page 39, line 7, and insert the following:
(13) Infrastructure performance and maintenance program.--
For carrying out the infrastructure performance and
maintenance program under section 139 of that title
$1,328,000,000 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,
$150,000,001 for each of fiscal years 2004 through 2009.
______

SA 2559. Mrs. MURRAY (for herself, Ms. Collins, Mrs. Boxer, Ms.
Cantwell, Mrs. Clinton, Mr. Corzine, Mr. Edwards, Mrs. Feinstein, Mr.
Kennedy, Mr. Lautenberg, Ms. Mikulski, Ms. Murkowski, Mr. Schumer, Ms.
Snowe, and Mr. Stevens) submitted an amendment intended to be proposed
to amendment SA 2492 submitted by Mrs. Murray (for herself, Ms.
Collins, Mrs. Boxer, Ms. Cantwell, Mrs. Clinton, Mr. Cochran, Mr.
Corzine, Mr. Edwards, Mrs. Feinstein, Mr. Kennedy, Mr. Lautenberg, Ms.
Mikulski, Ms. Murkowski, Mr. Schumer, Ms. Snowe, and Mr. Stevens) and
intended to be proposed 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:

Beginning on page 80, strike line 7 and all that follows
through page 81, line 3, and insert the following:

SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL AND
MAINTENANCE 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
and maintenance facilities

``(a) In General.--The Secretary shall carry out a program
for construction of ferry boats and ferry terminal and
maintenance facilities in accordance with section 129(c).
``(b) Federal Share.--The Federal share of the cost of
construction of ferry boats and ferry terminals and
maintenance facilities under this section shall be 80
percent.
``(c) Allocation of Funds.--The Secretary shall give
priority in the allocation of funds under this section to
those ferry systems, and public entities responsible for
developing ferries, that--
``(1) carry the greatest number of passengers and vehicles;
``(2) carry the greatest number of passengers in passenger-
only service; or
``(3) provide critical access to areas that are not well-
served by other modes of surface transportation.
``(d) Set-Aside.--Of the amounts made available under
section 1101(a)(14) of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2003, $112,000,000 for
each of fiscal years 2004 through 2009 shall be made
available to carry out this section.''.
(b) Conforming Amendments.--
(1) Section 129(c) of title 23, United States Code, is
amended--
(A) in the matter preceding paragraph (1), by inserting
``and maintenance'' after ``terminal''; and
(B) in paragraph (3), by inserting ``or maintenance'' after
``terminal'' each place it appears.
(2) 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 and maintenance
facilities.''.
(3) Section 1064 of the Intermodal Surface Transportation
Efficiency Act of 1991 (105 Stat. 2005) is repealed.
______

SA 2560. Mr. BAUCUS 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 end of the amendment add the following:
(h) Highway Trust Fund Expenditures for Highway Use Tax
Evasion Projects.--Section 9503(c), as amended by this Act,
is amended to add at the end the following new paragraph:
``(5) Highway use tax evasion projects.--From amounts
available in the Highway Trust Fund, there is authorized to
be expended--
``(A) for each fiscal year after 2003 to the Internal
Revenue Service--
``(i) $30,000,000 for enforcement of fuel tax compliance,
including the per-certification of tax-exempt users,
``(ii) $10,000,000 for Xstars, and
``(iii) $10,000,000 for xfirs, and
``(B) for each fiscal year after 2003 to the Federal
Highway Administration, $50,000,000 to be allocated
$1,000,000 to each State to combat fuel tax evasion on the
State level.''.
______

SA 2561. Mr. BAUCUS 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 2, after line 14, insert the following new section:

SEC. 4. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

Section 10101 is amended--
(1) by inserting ``(a) In General.--'' before ``In
regulating''; and
(2) by adding at the end the following:
``(b) Primary Objectives.--The primary objectives of the
rail transportation policy of the United States are as
follows:

[[Page S1314]]

``(1) To promote effective competition among rail carriers
at origins and destinations.
``(2) To maintain reasonable rates in the absence of
effective competition.
``(3) To maintain consistent and efficient rail
transportation service for shippers, including the timely
provision of rail cars requested by shippers.
``(4) To ensure that smaller carload and intermodal
shippers are not precluded from accessing rail systems due to
volume requirements.''.
______

SA 2562. Mr. BAUCUS 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 2, after line 14, insert the following new section:

SEC. 4. RAIL CUSTOMER ADVOCATE IN THE DEPARTMENT OF
TRANSPORTATION.

(a) Participation of Rail Customer Advocate in STB
Proceedings.--
(1) Authority and responsibilities.--Chapter 105 is amended
by adding at the end the following new section:

``Sec. 10503. Participation of Rail Customer Advocate in
Board proceedings

``(a) Authority.--The following persons are authorized to
petition the Board for an exercise of authority of the Board
regarding rail transportation of any agricultural or forestry
commodity or product, and to participate in any proceeding of
the Board regarding rail transportation of such a commodity
or product:
``(1) The Rail Customer Advocate of the Department of
Transportation.
``(2) Any official of the government of a State whose
functions are the same as or similar to the functions of the
Rail Customer Advocate of the Department of Transportation.
``(b) Consideration of Presentations by Advocate.--(1) The
Board shall accord significant persuasive weight to any
material evidence, proposal, or view that is presented by an
official referred to in subsection (a) with respect to rail
transportation of an agricultural or forestry commodity or
product.
``(2) In disposing of any matter before the Board in which
an official referred to in subsection (a) has participated
under the authority of such subsection, the Board shall
present in writing a detailed explanation of any disagreement
of the Board with matters presented to the Board by that
official.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``10503. Participation of Rail Customer Advocate in Board
proceedings.''.
(b) Establishment and Duties.--
(1) In general.--The Department of Transportation
Reorganization Act is amended by adding at the end the
following new section:

``SEC. 286. RAIL CUSTOMER ADVOCATE.

``(a) Establishment of Office.--There is established within
the Department an Office of Rail Customer Advocacy.
``(b) Rail Customer Advocate.--
``(1) Appointment.--The Secretary shall appoint the Rail
Customer Advocate.
``(2) Head of office.--The Rail Customer Advocate is the
head of the Office of Rail Customer Advocacy.
``(c) Functions.--The Rail Customer Advocate has the
following functions:
``(1) Participation in stb proceedings.--To participate as
a party in proceedings of the Surface Transportation Board on
petitions for action by the Board regarding the regulation of
rail transportation of agricultural or forestry commodities
or products, and to initiate any such action.
``(2) Compilation of information.--To collect, compile, and
maintain information regarding the cost and efficiency of
rail transportation of agricultural commodities and products
and forestry commodities and products.
``(3) Studies.--To perform studies regarding rail
transportation of agricultural commodities and products and
forestry commodities and products.
``(d) Access to STB Information.--To carry out the
functions under subsection (b), the Rail Customer Advocate
shall have access to information, including databases, of the
Surface Transportation Board.''.
(B) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(C) by adding at the end the following:
``(6) the establishment of the Office of Rail Consumer
Advocacy of the Department under section 286.''.
______

SA 2563. Mr. BAUCUS 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 2, after line 14, insert the following new section:

SEC. 4. PERIODIC STUDY OF COMPETITION AMONG RAIL CARRIERS.

(a) Requirement for Study.--
(1) Triennial study.--Chapter 101 is amended by adding at
the end the following new section:

``Sec. 10103. Periodic study of rail carrier competition and
processes of the Board

``(a) Requirement for Study.--Every three years, the
Secretary of Transportation shall conduct a comprehensive
study of rail carrier competition and the processes of the
Board. The study shall include an assessment of the
following:
``(1) The availability of effective competitive options
among and between rail carriers.
``(2) The effectiveness of the processes of the Surface
Transportation Board, including the process used for
determining the reasonableness of rates of rail carriers.
``(3) The availability to rail users of effective
regulatory dispute resolution options.
``(b) Study To Include Assessment of Rail-to-Rail
Competition.--In carrying out the study, the Board shall
assess the overall level of rail-to-rail competition in the
rail carrier industry in the United States. In making the
assessment, the Board shall consider the views of users of
the services of rail carriers.
``(c) Report to Congress.--Not later than November 15 of
each year in which a study is conducted under subsection (a),
the Secretary shall submit a report on the results of the
study to Congress. The report shall include the following:
``(1) The Board's assessment of the overall level of rail-
to-rail competition in the rail carrier industry in the
United States.
``(2) The markets that have limited rail-to-rail
competition.
``(3) Any recommendations for enhancing rail-to-rail
competition, particularly in markets identified as having
limited rail-to-rail competition.
``(4) An assessment of the Board's performance of its
purpose to promote and enhance competition among and between
railroads by--
``(A) addressing complaints regarding rates, charges, and
service; and
``(B) promulgating regulations of general applicability or
taking other actions.
``(5) Any recommendations for modification of any of the
decisions of the Board (or decisions of the former Interstate
Commerce Commission continuing in effect) or for modification
of the general authority or jurisdiction of the Board.
``(6) Any other findings, analyses, assessments, and
recommendations that result from the study.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following:

``10103. Periodic study of rail carrier competition and processes of
the Board.''.
(b) Time for First Study.--The first study under section
10103 of title 49, United States Code (as added by subsection
(a)), shall be carried out not later than two years after the
date of the enactment of this Act.
______

SA 2564. Mr. SHELBY 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:

In lieu of the matter proposed, insert the following:

``SEC.  . DELTA REGION TRANSPORTATION DEVELOPMENT 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:

``178. Delta Region Transportation Development Program

``(a) In General.--The Secretary shall carry out a program
to--
``(1) support and encourage multistate transportation
planning and corridor development;
``(2) provide for transportation project development;
``(3) facilitate transportation decisionmaking; and
``(4) support transportation construction.
``(b) Eligible Recipients.--A State transportation
department and metropolitan planning organization may receive
and administer funds provided under the program.
``(c) Eligible Activities.--The Secretary shall make
allocations under the program for multistate highway and
transit planning, development, and construction projects.
``(d) Other Provisions Regarding Eligibility.--All
activities funded under this program shall be consistent with
the continuing, cooperative, and comprehensive planning
processes required by section 134 and 135.
``(e) Selection Criteria.--The Secretary shall select
projects to be carried out under the program based on--
``(1) whether the project is located--
``(A) in an area that is part of the Delta Regional
Authority; and
``(B) on the Federal-aid system;
``(2) endorsement of the project by the State department of
transportation; and
``(3) evidence of the ability to complete the project.
``(f) Program Priorities.--In administering the program,
the Secretary shall--
``(1) encourage State and local officials to work together
to develop plans for multimodal and multijurisdictional
transportation decisionmaking; and
``(2) give priority to projects that emphasize multimodal
planning, including planning for operational improvements
that--

[[Page S1315]]

``(A) increase the mobility of people and goods;
``(B) improve the safety of the transportation system with
respect to catastrophic--
``(i) natural disasters; or
``(ii) disasters caused by human activity; and
``(C) contribute to the economic vitality of the area in
which the project is being carried out.
``(g) Federal Share.--Amounts provided by the Delta
Regional Authority to carry out a project under this section
shall be applied to the non-Federal share required by section
120.
``(h) Availability of Funds.--Amounts made available to
carry out this section shall remain available until
expended.''.
(b) Conforming Amendment.--The analysis for chapter I of
title 23, United States Code (as amended by section 1841(b)),
is amended by adding at the end the following:

``178. Delta Region Transportation Development Program''.

On page 677, line 11, strike ``$2,500,000,000'' and insert
``$1,300,000,000''.
On page 677, line 13, strike ``$2,000,000,000'' and insert
``$1,200,000,000''.
On page 677, line 15, strike ``$500,000,000'' and insert
``$100,000,000''.
On page 678, after line 5, insert the following:
``(16) Delta region transportation development program.--
For the Delta Region transportation development program,
$400,000,000 for each of fiscal years 2004 through 2009.''
______

SA 2565. Mr. SHELBY 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:

In lieu of the matter proposed, insert the following:

``SEC.  . DELTA REGION TRANSPORTATION DEVELOPMENT 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:

``178. Delta Region Transportation Development Program

``(a) In General.--The Secretary shall carry out a program
to--
``(1) support and encourage multistate transportation
planning and corridor development;
``(2) provide for transportation project development;
``(3) facilitate transportation decisionmaking; and
``(4) support transportation construction.
``(b) Eligible Recipients.--A State transportation
department and metropolitan planning organization may receive
and administer funds provided under the program.
``(c) Eligible Activities.--The Secretary shall make
allocations under the program for multistate highway and
transit planning, development, and construction projects.
``(d) Other Provisions Regarding Eligibility.--All
activities funded under this program shall be consistent with
the continuing, cooperative, and comprehensive planning
processes required by section 134 and 135.
``(e) Selection Criteria.--The Secretary shall select
projects to be carried out under the program based on--
``(1) whether the project is located--
``(A) in an area that is part of the Delta Regional
Authority; and
``(B) on the Federal-aid system;
``(2) endorsement of the project by the State department of
transportation; and
``(3) evidence of the ability to complete the project.
``(f) Program Priorities.--In administering the program,
the Secretary shall--
``(1) encourage State and local officials to work together
to develop plans for multimodal and multijurisdictional
transportation decisionmaking; and
``(2) give priority to projects that emphasize multimodal
planning, including planning for operational improvements
that--
``(A) increase the mobility of people and goods;
``(B) improve the safety of the transportation system with
respect to catastrophic--
``(i) natural disasters; or
``(ii) disasters caused by human activity; and
``(C) contribute to the economic vitality of the area in
which the project is being carried out.
``(g) Federal Share.--Amounts provided by the Delta
Regional Authority to carry out a project under this section
shall be applied to the non-Federal share required by section
120.
``(h) Availability of Funds.--Amounts made available to
carry out this section shall remain available until
expended.''.
(b) Conforming Amendment.--The analysis for chapter I of
title 23, United States Code (as amended by section 1841
(b)), is amended by adding at the end the following:

``178. Delta Region Transportation Development Program.''.

On page 678, after line 5, insert the following:
``(16) Delta region transportation development program.--
For the Delta Region transportation development program,
$400,000,000 for each of fiscal years 2004 through 2009.''
______

SA 2566. Mr. GRASSLEY (for himself, and Mr. Baucus) submitted an
amendment intended to be proposed to amendment SA 2549 submitted by Mr.
Grassley (for himself and Mr. Baucus) and intended to be proposed 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 all after ``(g)'' and insert:
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 certain
rail projects.--With respect to rail 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, except for any
rail project involving publicly owned rail facilities or any
rail project yielding a public benefit.''.
____

SA 2567. Mr. BYRD 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 in the amendment, insert:

SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State all counties of which
are located, as of the date of enactment of this section,
within the established 13-State Appalachian region, as
determined by the Appalachian Regional Commission.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $270,000,000 for
the period of fiscal year 2004.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Infrastructure Performance and Maintenance Program.--
Notwithstanding section 1101(13), the amount authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) for the infrastructure performance and
maintenance program under section 139 of title 23, United
States Code, shall be reduced by $270,000,000 for fiscal year
2004.
______

SA 2568. Mr. BYRD 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:

SEC. ___ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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:

[[Page S1316]]

``Sec. 178. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State all counties of which
are located, as of the date of enactment of this section,
within the established 13-State Appalachian region, as
determined by the Appalachian Regional Commission.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $270,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $45,000,000 shall be for fiscal year 2004;
``(B) $45,000,000 shall be for fiscal year 2005;
``(C) $45,000,000 shall be for fiscal year 2006;
``(D) $45,000,000 shall be for fiscal year 2007;
``(E) $45,000,000 shall be for fiscal year 2008; and
``(F) $45,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Emergency Relief.--Notwithstanding any other provisions
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$255,000,000''.
______

SA 2569. Mr. BYRD 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 in the amendment, insert:

SEC. __ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State all counties of which
are located, as of the date of enactment of this section,
within the established 13-State Appalachian region, as
determined by the Appalachian Regional Commission.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $270,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $45,000,000 shall be for fiscal year 2004;
``(B) $45,000,000 shall be for fiscal year 2005;
``(C) $45,000,000 shall be for fiscal year 2006;
``(D) $45,000,000 shall be for fiscal year 2007;
``(E) $45,000,000 shall be for fiscal year 2008; and
``(F) $45,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Transportation Research.--Notwithstanding any other
provision of this Act, each of the amounts authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) under section 2001, and each of the
amounts limiting obligations under section 2002, shall be
reduced by 10.1 percent.
______

SA 2570. Mr. BYRD 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 in the amendment, insert:

SEC. __ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State all counties of which
are located, as of the date of enactment of this section,
within the established 13-State Appalachian region, as
determined by the Appalachian Regional Commission.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $270,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $45,000,000 shall be for fiscal year 2004;
``(B) $45,000,000 shall be for fiscal year 2005;
``(C) $45,000,000 shall be for fiscal year 2006;
``(D) $45,000,000 shall be for fiscal year 2007;
``(E) $45,000,000 shall be for fiscal year 2008; and
``(F) $45,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Emergency Relief.--Notwithstanding any other provision
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$277,000,000''.
(d) Transportation Research.--Notwithstanding any other
provision of this Act, each of the amounts authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) under section 2001, and each of the
amounts limiting obligations under section 2002, shall be
reduced by 5 percent.
______

SA 2571. Mr. BYRD 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 in the amendment, insert:

[[Page S1317]]

SEC. __ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $900,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $150,000,000 shall be for fiscal year 2004;
``(B) $150,000,000 shall be for fiscal year 2005;
``(C) $150,000,000 shall be for fiscal year 2006;
``(D) $150,000,000 shall be for fiscal year 2007;
``(E) $150,000,000 shall be for fiscal year 2008; and
``(F) $150,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Emergency Relief.--Notwithstanding any other provision
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$150,000,000''.
______

SA 2572. Mr. BYRD 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 in the amendment, insert:

SEC. ___ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $780,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $130,000,000 shall be for fiscal year 2004;
``(B) $130,000,000 shall be for fiscal year 2005;
``(C) $130,000,000 shall be for fiscal year 2006;
``(D) $130,000,000 shall be for fiscal year 2007;
``(E) $130,000,000 shall be for fiscal year 2008; and
``(F) $130,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Emergency Relief.--Notwithstanding any other provision
of this Act, section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$170,000,000''.
______

SA 2573. Mr. BYRD 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 in the amendment, insert:

SEC. ___ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $780,000,000 for
the period of fiscal year 2004.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.

(c) Infrastructure Performance and Maintenance Program.--
Notwithstanding

[[Page S1318]]

section 1101(13), the amount authorized to be appropriated
out of the Highway Trust Fund (other than the Mass Transit
Account) for the infrastructure performance and maintenance
program under section 139 of title 23, United States Code, is
hereby reduced by $780,000,000 for fiscal year 2004.
______

SA 2574. Mr. BYRD 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 in the amendment, insert:

SEC. ___ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $780,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $130,000,000 shall be for fiscal year 2004;
``(B) $130,000,000 shall be for fiscal year 2005;
``(C) $130,000,000 shall be for fiscal year 2006;
``(D) $130,000,000 shall be for fiscal year 2007;
``(E) $130,000,000 shall be for fiscal year 2008; and
``(F) $130,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.

(c) Infrastructure Performance and Maintenance Program.--
Notwithstanding section 1101(13), the amount authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) for the infrastructure performance and
maintenance program under section 139 of title 23, United
States Code, is hereby reduced by $330,000,000 for fiscal
year 2004.
(d) Emergency Relief.--Notwithstanding any other provision
of this Act, section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$225,000,000''.
______

SA 2575. Mr. BYRD 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 in the amendment, insert

SEC. . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $780,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $130,000,000 shall be for fiscal year 2004;
``(B) $130,000,000 shall be for fiscal year 2005;
``(C) $130,000,000 shall be for fiscal year 2006;
``(D) $130,000,000 shall be for fiscal year 2007;
``(E) $130,000,000 shall be for fiscal year 2008; and
``(F) $130,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Transportation Infrastructure Finance and Innovation
Act.--Notwithstanding section 188(a) of title 23, United
States Code, the amount authorized to be appropriated out of
the Highway Trust Fund (other than the Mass Transit Account)
to carry out subchapter II of chapter I of that title shall
be $110,000,000 for each of fiscal years 2004 through 2009.
(d) Emergency Relief.--Notwithstanding any other provision
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$210,000,000''.
(e) Transportation Research.--Notwithstanding any other
provision of this Act, each of the amounts authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) under section 2001, and each of the
amounts limiting obligations under section 2002, shall be
reduced by 4.5 percent.
______

SA 2576. Mr. BYRD 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 in the amendment, insert

SEC. . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of

[[Page S1319]]

the Appalachian Regional Commission under section 14501 of
title 40--
``(1) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are in `final design status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $780,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $130,000,000 shall be for fiscal year 2004;
``(B) $130,000,000 shall be for fiscal year 2005;
``(C) $130,000,000 shall be for fiscal year 2006;
``(D) $130,000,000 shall be for fiscal year 2007;
``(E) $130,000,000 shall be for fiscal year 2008; and
``(F) $130,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Emergency Relief.--Notwithstanding any other provision
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$190,000,000''.
(d) Transportation Research.--Notwithstanding any other
provision of this Act, each of the amounts authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) under section 2001, and each of the
amounts limiting obligations under section 2002, shall be
reduced by 4.5 percent.
______

SA 2577. Mr. BYRD 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 in the amendment, insert

TITLE __--SOLID WASTE DISPOSAL

SEC. __01. INCREASED USE OF RECOVERED MINERAL COMPONENT IN
FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT
OF CEMENT OR CONCRETE.

(a) Amendment.--Subtitle F of the Solid Waste Disposal Act
(42 U.S.C. 6961 et seq.) is amended by adding at the end the
following new section:

``increased use of recovered mineral component in federally funded
projects involving procurement of cement or concrete

``Sec. 6005. (a) Definitions.--In this section:
``(1) Agency head.--The term `agency head' means--
``(A) the Secretary of Transportation; and
``(B) the head of each other Federal agency that on a
regular basis procures, or provides Federal funds to pay or
assist in paying the cost of procuring, material for cement
or concrete projects.
``(2) Cement or concrete project.--The term `cement or
concrete project' means a project for the construction or
maintenance of a highway or other transportation facility or
a Federal, State, or local government building or other
public facility that--
``(A) involves the procurement of cement or concrete; and
``(B) is carried out in whole or in part using Federal
funds.
``(3) Recovered mineral component.--The term `recovered
mineral component' means--
``(A) ground granulated blast furnace slag;
``(B) coal combustion fly ash; and
``(C) any other waste material or byproduct recovered or
diverted from solid waste that the Administrator, in
consultation with an agency head, determines should be
treated as recovered mineral component under this section for
use in cement or concrete projects paid for, in whole or in
part, by the agency head.
``(b) Implementation of Requirements.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator and each agency
head shall take such actions as are necessary to implement
fully all procurement requirements and incentives in effect
as of the date of enactment of this section (including
guidelines under section 6002) that provide for the use of
cement and concrete incorporating recovered mineral component
in cement or concrete projects.
``(2) Priority.--In carrying out paragraph (1) an agency
head shall give priority to achieving greater use of
recovered mineral component in cement or concrete projects
for which recovered mineral components historically have not
been used or have been used only minimally.
``(3) Conformance.--The Administrator and each agency head
shall carry out this subsection in accordance with section
6002.
``(c) Full Implementation Study.--
``(1) In general.--The Administrator, in cooperation with
the Secretary of Transportation and the Secretary of Energy,
shall conduct a study to determine the extent to which
current procurement requirements, when fully implemented in
accordance with subsection (b), may realize energy savings
and environmental benefits attainable with substitution of
recovered mineral component in cement used in cement or
concrete projects.
``(2) Matters to be addressed.--The study shall--
``(A) quantify the extent to which recovered mineral
components are being substituted for Portland cement,
particularly as a result of current procurement requirements,
and the energy savings and environmental benefits associated
with that substitution;
``(B) identify all barriers in procurement requirements to
greater realization of energy savings and environmental
benefits, including barriers resulting from exceptions from
current law; and
``(C)(i) identify potential mechanisms to achieve greater
substitution of recovered mineral component in types of
cement or concrete projects for which recovered mineral
components historically have not been used or have been used
only minimally;
``(ii) evaluate the feasibility of establishing guidelines
or standards for optimized substitution rates of recovered
mineral component in those cement or concrete projects; and
``(iii) identify any potential environmental or economic
effects that may result from greater substitution of
recovered mineral component in those cement or concrete
projects.
``(3) Report.--Not later than 30 months after the date of
enactment of this section, the Administrator shall submit to
Congress a report on the study.
``(d) Additional Procurement Requirements.--Unless the
study conducted under subsection (c) identifies any effects
or other problems described in subsection (c)(2)(C)(iii) that
warrant further review or delay, the Administrator and each
agency head shall, not later than 1 year after the release of
the report in accordance with subsection (c)(3), take
additional actions authorized under this Act to establish
procurement requirements and incentives that provide for the
use of cement and concrete with increased substitution of
recovered mineral component in the construction and
maintenance of cement or concrete projects, so as to--
``(1) realize more fully the energy savings and
environmental benefits associated with increased
substitution; and
``(2) eliminate barriers identified under subsection (c).
``(e) Effect of Section.--Nothing in this section affects
the requirements of section 6002 (including the guidelines
and specifications for implementing those requirements).''.
(b) Table of Contents Amendment.--The table of contents of
the Solid Waste Disposal Act is amended by adding after the
item relating to section 6004 the following new item:

``Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or
concrete.''.

SEC. __02. USE OF GRANULAR MINE TAILINGS.

(a) Amendment.--Subtitle F of the Solid Waste Disposal Act
(42 U.S.C. 6961 et seq.) (as amended by section __01(a)) is
amended by adding at the end the following:

``SEC. 6006. USE OF GRANULAR MINE TAILINGS.

``(a) Mine Tailings.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Administrator, in
consultation with the Secretary of Transportation and heads
of other Federal agencies, shall establish criteria
(including an evaluation of whether to establish a numerical
standard for concentration of lead and other hazardous
substances) for the safe and environmentally protective use
of granular mine tailings from the Tar Creek, Oklahoma Mining
District, known as `chat', for--
``(A) cement or concrete projects; and
``(B) transportation construction projects (including
transportation construction projects involving the use of
asphalt) that are carried out, in whole or in part, using
Federal funds.
``(2) Requirements.--In establishing criteria under
paragraph (1), the Administrator shall consider--
``(A) the current and previous uses of granular mine
tailings as an aggregate for asphalt; and
``(B) any environmental and public health risks and
benefits derived from the removal, transportation, and use in
transportation projects of granular mine tailings.

[[Page S1320]]

``(3) Public participation.--In establishing the criteria
under paragraph (1), the Administrator shall solicit and
consider comments from the public.
``(4) Applicability of criteria.--On the establishment of
the criteria under paragraph (1), any use of the granular
mine tailings described in paragraph (1) in a transportation
project that is carried out, in whole or in part, using
Federal funds, shall meet the criteria established under
paragraph (1).
``(b) Effect of Sections.--Nothing in this section or
section 6005 affects any requirement of any law (including a
regulation) in effect on the date of enactment of this
section.''.
(b) Conforming Amendment.--The table of contents of the
Solid Waste Disposal Act (42 U.S.C. prec. 6901) (as amended
by section __01(b)) is amended by adding at the end of the
items relating to subtitle F the following:

``Sec. 6006. Use of granular mine tailings.''.
______

SA 2578. Mr. BYRD 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 in the amendment, insert:

SEC. 1816. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $900,000,000 for
the period of fiscal year 2004.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.

(c) Infrastructure Performance and Maintenance Program.--
Notwithstanding section 1101(13), the amount authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) for the infrastructure performance and
maintenance program under section 139 of title 23, United
States Code, is hereby reduced by $900,000,000 for fiscal
year 2004.
______

SA 2579. Mr. BYRD 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 in the amendment, insert:

SEC. ___ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $900,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $300,000,000 shall be for fiscal year 2004;
``(B) $150,000,000 shall be for fiscal year 2005;
``(C) $150,000,000 shall be for fiscal year 2006;
``(D) $150,000,000 shall be for fiscal year 2007;
``(E) $150,000,000 shall be for fiscal year 2008; and
``(F) $150,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.

(c) Infrastructure Performance and Maintenance Program.--
Notwithstanding section 1101(13), the amount authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) for the infrastructure performance and
maintenance program under section 139 of title 23, United
States Code, is hereby reduced by $300,000,000 for fiscal
year 2004.
(d) Emergency Relief.--Notwithstanding any other provision
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$180,000,000'' for fiscal
years 2005 through 2009.
______

SA 2580. Mr. BYRD 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 in the amendment, insert:

SEC. ___ . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are not in `location

[[Page S1321]]

status' for the Appalachian development highway system
program in the State; bears to
``(2) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $900,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $150,000,000 shall be for fiscal year 2004;
``(B) $150,000,000 shall be for fiscal year 2005;
``(C) $150,000,000 shall be for fiscal year 2006;
``(D) $150,000,000 shall be for fiscal year 2007;
``(E) $150,000,000 shall be for fiscal year 2008; and
``(F) $150,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.

(c) Transportation Infrastructure Finance and Innovation
Act.--Notwithstanding section 188(a) of title 23, United
States Code, the amount authorized to be appropriated out of
the Highway Trust Fund (other than the Mass Transit Account)
to carry out subchapter II of chapter I of that title shall
be $100,000,000 for each of fiscal years 2004 through 2009.
(d) Emergency Relief.--Notwithstanding any other provision
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$200,000,000''.
(e) Transportation Research.--Notwithstanding any other
provision of this Act, each of the amounts authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) under section 2001, and each of the
amounts limiting obligations under section 2002, shall be
reduced by 4.5 percent.
______

SA 2581. Mr. BYRD 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 in the amendment, insert:

SEC.   . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State based on the proportion
that, under the most recent published report of the
Appalachian Regional Commission under section 14501 of title
40--
``(1) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in the State; bears to
``(2) the cost of construction of highways and access roads
that are not in `location status' for the Appalachian
development highway system program in all States.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $900,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $150,000,000 shall be for fiscal year 2004;
``(B) $150,000,000 shall be for fiscal year 2005;
``(C) $150,000,000 shall be for fiscal year 2006;
``(D) $150,000,000 shall be for fiscal year 2007;
``(E) $150,000,000 shall be for fiscal year 2008; and
``(F) $150,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall 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 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.

(c) Emergency Relief.--Notwithstanding any other provision
of this Act, Section 125(c)(1) of title 23, United States
Code (as amended by section 1822), is amended by striking
``$300,000,000'' and inserting ``$170,000,000''.
(d) Transportation Research.--Notwithstanding any other
provision of this Act, each of the amounts authorized to be
appropriated out of the Highway Trust Fund (other than the
Mass Transit Account) under section 2001, and each of the
amounts limiting obligations under section 2002, shall be
reduced by 4.5 percent.
______

SA 2582. Mr. BYRD 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:
``(ii) $4,821,335 shall be available to the personal rapid
transit system in Morgantown, West Virginia for improvements
to its passenger operations under section 5307;''
______

SA 2583. Mr. BYRD 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 in the amendment, insert:

SEC.  . APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM COMPLETION
PROGRAM.

(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. Appalachian development highway system completion
program

``(a) In General.--The Secretary shall carry out a program,
to be known as the `Appalachian development highway system
completion program' (referred to in this section as the
`program'), to allocate capital funding to expedite the
completion of `ready-to-go' segments of the Appalachian
development highway system.
``(b) Eligible Activities.--A State that receives an
allocation of funds under this section shall use the funds to
construct highways and access roads in accordance with
chapter 145 of title 40.
``(c) Allocation of Funds.--The Secretary shall allocate
funds under the program to each State all counties of which
are located, as of the date of enactment of this section,
within the established 13-State Appalachian region, as
determined by the Appalachian Regional Commission.
``(d) Federal Share.--The Federal share of the cost of
carrying out any project or activity using funds allocated
under the program shall be 80 percent.
``(e) Funding.--
``(1) In general.--There shall be available to the
Secretary to carry out this section, from the Highway Trust
Fund (other than the Mass Transit Account), $270,000,000 for
the period of fiscal years 2004 through 2009, of which--
``(A) $45,000,000 shall be for fiscal year 2004;
``(B) $45,000,000 shall be for fiscal year 2005;
``(C) $45,000,000 shall be for fiscal year 2006;
``(D) $45,000,000 shall be for fiscal year 2007;
``(E) $45,000,000 shall be for fiscal year 2008; and
``(F) $45,000,000 shall be for fiscal year 2009.
``(2) Obligation, eligibility, and availability.--Funds
authorized to be appropriated under section 1101(16) of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 and made available under paragraph (1) to
carry out this section--
``(A) shall be available for obligation by the Secretary in
the same manner as if the funds were apportioned under this
chapter;
``(B) shall not be considered in determining the
eligibility of any State to receive funds under section 105;
and
``(C) shall remain available until expended.''.

[[Page S1322]]

(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1815(b)), is amended by adding at the end the
following:

``178. Appalachian development highway system completion program.''.
(c) Transportation Infrastructure Finance and Innovation
Act.--Notwithstanding section 188(a) of title 23, United
States Code, the amount authorized to be appropriated out of
the Highway Trust Fund (other than the Mass Transit Account)
to carry out subchapter II of chapter I of that title shall
be $85,000,000 for each of fiscal years 2004 through 2009.
______

SA 2584. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 2315 submitted by Mr. Kyl and intended to be proposed 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 60, line 9, strike ``October 1, 2004'' and insert
``October 2, 2004''.
______

SA 2585. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 2315 submitted by Mr. Kyl and intended to be proposed 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 end, insert the following:
``(i) Reservation of funds.--In addition to any other funds
made available for Indian reservation roads for each fiscal
year, there is authorized to be appropriated from the Highway
Trust Fund (other than the Mass Transit Account) $15,000,000
for each of fiscal years 2004 through 2009 to carry out
planning, design, engineering for bridges located on Native
American Lands''.
______

SA 2586. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 2511 submitted by Mr. Daschle and intended to be proposed
to the 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 line 9 strike ``$15,000,000'' and insert
``$14,000,000''.
______

SA 2587. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 2382 submitted by Mr. McCain (for himself and Mr.
Hollings) and intended to be proposed to the 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:

Strike lines 1 and 2.
______

SA 2588. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 2418 submitted by Mr. Carper and intended to be proposed
to the 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:

Strike lines 1 and 2.
______

SA 2589. Mr. CONRAD submitted an amendment intended to be proposed to
amendment SA 2414 submitted by Mr. Nickles and intended to be proposed
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 all after the first word and insert the following:

H--Additional Revenue Provisions

PART I--ADMINISTRATIVE PROVISIONS

SEC. 5671. EXTENSION OF CUSTOMS USER FEES.

Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended
by striking ``March 31, 2004'' and inserting ``September 30,
2009''.

SEC. 5672. EXTENSION OF IRS USER FEES.

(a) In General.--Section 7528(c) (relating to termination)
is amended by striking ``December 31, 2004'' and inserting
``September 30, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to requests after the date of the enactment of
this Act.

PART II--FINANCIAL INSTRUMENTS

SEC. 5673. TREATMENT OF STRIPPED INTERESTS IN BOND AND
PREFERRED STOCK FUNDS, ETC.

(a) In General.--Section 1286 (relating to tax treatment of
stripped bonds) is amended by redesignating subsection (f) as
subsection (g) and by inserting after subsection (e) the
following new subsection:
``(f) Treatment of Stripped Interests in Bond and Preferred
Stock Funds, Etc.--In the case of an account or entity
substantially all of the assets of which consist of bonds,
preferred stock, or a combination thereof, the Secretary may
by regulations provide that rules similar to the rules of
this section and 305(e), as appropriate, shall apply to
interests in such account or entity to which (but for this
subsection) this section or section 305(e), as the case may
be, would not apply.''.
(b) Cross Reference.--Subsection (e) of section 305 is
amended by adding at the end the following new paragraph:
``(7) Cross reference.--

``For treatment of stripped interests in certain accounts or entities
holding preferred stock, see section 1286(f).''.

(c) Effective Date.--The amendments made by this section
shall apply to purchases and dispositions after the date of
the enactment of this Act.

SEC. 5674. APPLICATION OF EARNINGS STRIPPING RULES TO
PARTNERSHIPS AND S CORPORATIONS.

(a) In General.--Section 168(j) (relating to limitation on
deduction for interest on certain indebtedness) is amended by
redesignating paragraph (8) as paragraph (9) and by inserting
after paragraph (7) the following new paragraph:
``(8) Application to partnerships and s corporations.--
``(A) In general.--This subsection shall apply to
partnerships and S corporations in the same manner as it
applies to C corporations.
``(B) Allocations to certain corporate partners.--If a C
corporation is a partner in a partnership--
``(i) the corporation's allocable share of indebtedness and
interest income of the partnership shall be taken into
account in applying this subsection to the corporation, and
``(ii) if a deduction is not disallowed under this
subsection with respect to any interest expense of the
partnership, this subsection shall be applied separately in
determining whether a deduction is allowable to the
corporation with respect to the corporation's allocable share
of such interest expense.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 5675. RECOGNITION OF CANCELLATION OF INDEBTEDNESS INCOME
REALIZED ON SATISFACTION OF DEBT WITH
PARTNERSHIP INTEREST.

(a) In General.--Paragraph (8) of section 108(e) (relating
to general rules for discharge of indebtedness (including
discharges not in title 11 cases or insolvency)) is amended
to read as follows:
``(8) Indebtedness satisfied by corporate stock or
partnership interest.--For purposes of determining income of
a debtor from discharge of indebtedness, if--
``(A) a debtor corporation transfers stock, or
``(B) a debtor partnership transfers a capital or profits
interest in such partnership,

to a creditor in satisfaction of its recourse or nonrecourse
indebtedness, such corporation or partnership shall be
treated as having satisfied the indebtedness with an amount
of money equal to the fair market value of the stock or
interest. In the case of any partnership, any discharge of
indebtedness income recognized under this paragraph shall be
included in the distributive shares of taxpayers which were
the partners in the partnership immediately before such
discharge.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to cancellations of indebtedness
occurring on or after the date of the enactment of this Act.

SEC. 5676. MODIFICATION OF STRADDLE RULES.

(a) Rules Relating to Identified Straddles.--
(1) In general.--Subparagraph (A) of section 1092(a)(2)
(relating to special rule for identified straddles) is
amended to read as follows:
``(A) In general.--In the case of any straddle which is an
identified straddle--
``(i) paragraph (1) shall not apply with respect to
identified positions comprising the identified straddle,
``(ii) if there is any loss with respect to any identified
position of the identified straddle, the basis of each of the
identified offsetting positions in the identified straddle
shall be increased by an amount which bears the same ratio to
the loss as the unrecognized gain with respect to such
offsetting position bears to the aggregate unrecognized gain
with respect to all such offsetting positions, and
``(iii) any loss described in clause (ii) shall not
otherwise be taken into account for purposes of this
title.''.
(2) Identified straddle.--Section 1092(a)(2)(B) (defining
identified straddle) is amended--
(A) by striking clause (ii) and inserting the following:
``(ii) to the extent provided by regulations, the value of
each position of which (in the hands of the taxpayer
immediately before the creation of the straddle) is not less
than the basis of such position in the hands of the taxpayer
at the time the straddle is created, and'', and

[[Page S1323]]

(B) by adding at the end the following new flush sentence:

``The Secretary shall prescribe regulations which specify the
proper methods for clearly identifying a straddle as an
identified straddle (and the positions comprising such
straddle), which specify the rules for the application of
this section for a taxpayer which fails to properly identify
the positions of an identified straddle, and which specify
the ordering rules in cases where a taxpayer disposes of less
than an entire position which is part of an identified
straddle.''.
(3) Unrecognized gain.--Section 1092(a)(3) (defining
unrecognized gain) is amended by redesignating subparagraph
(B) as subparagraph (C) and by inserting after subparagraph
(A) the following new subparagraph:
``(B) Special rule for identified straddles.--For purposes
of paragraph (2)(A)(ii), the unrecognized gain with respect
to any identified offsetting position shall be the excess of
the fair market value of the position at the time of the
determination over the fair market value of the position at
the time the taxpayer identified the position as a position
in an identified straddle.''
(4) Conforming amendment.--Section 1092(c)(2) is amended by
striking subparagraph (B) and by redesignating subparagraph
(C) as subparagraph (B).
(b) Physically Settled Positions.--Section 1092(d)
(relating to definitions and special rules) is amended by
adding at the end the following new paragraph:
``(8) Special rules for physically settled positions.--For
purposes of subsection (a), if a taxpayer settles a position
which is part of a straddle by delivering property to which
the position relates (and such position, if terminated, would
result in a realization of a loss), then such taxpayer shall
be treated as if such taxpayer--
``(A) terminated the position for its fair market value
immediately before the settlement, and
``(B) sold the property so delivered by the taxpayer at its
fair market value.''.
(c) Repeal of Stock Exception.--
(1) In general.--Section 1092(d)(3) is repealed.
(2) Conforming amendment.--Section 1258(d)(1) is amended by
striking ``; except that the term `personal property' shall
include stock''.
(d) Repeal of Qualified Covered Call Exception.--Section
1092(c)(4) is amended by adding at the end the following new
subparagraph:
``(I) Termination.--This paragraph shall not apply to any
position established on or after the date of the enactment of
this subparagraph.''.
(e) Effective Date.--The amendments made by this section
shall apply to positions established on or after the date of
the enactment of this Act.

SEC. 5677. DENIAL OF INSTALLMENT SALE TREATMENT FOR ALL
READILY TRADEABLE DEBT.

(a) In General.--Section 453(f)(4)(B) (relating to
purchaser evidences of indebtedness payable on demand or
readily tradeable) is amended by striking ``is issued by a
corporation or a government or political subdivision thereof
and''.
(b) Effective Date.--The amendment made by this section
shall apply to sales occurring on or after the date of the
enactment of this Act.

PART III--CORPORATIONS AND PARTNERSHIPS

SEC. 5678. MODIFICATION OF TREATMENT OF TRANSFERS TO
CREDITORS IN DIVISIVE REORGANIZATIONS.

(a) In General.--Section 361(b)(3) (relating to treatment
of transfers to creditors) is amended by adding at the end
the following new sentence: ``In the case of a reorganization
described in section 368(a)(1)(D) with respect to which stock
or securities of the corporation to which the assets are
transferred are distributed in a transaction which qualifies
under section 355, this paragraph shall apply only to the
extent that the sum of the money and the fair market value of
other property transferred to such creditors does not exceed
the adjusted bases of such assets transferred.''.
(b) Liabilities in Excess of Basis.--Section 357(c)(1)(B)
is amended by inserting ``with respect to which stock or
securities of the corporation to which the assets are
transferred are distributed in a transaction which qualifies
under section 355'' after ``section 368(a)(1)(D)''.
(c) Effective Date.--The amendments made by this section
shall apply to transfers of money or other property, or
liabilities assumed, in connection with a reorganization
occurring on or after the date of the enactment of this Act.

SEC. 5679. CLARIFICATION OF DEFINITION OF NONQUALIFIED
PREFERRED STOCK.

(a) In General.--Section 351(g)(3)(A) is amended by adding
at the end the following: ``Stock shall not be treated as
participating in corporate growth to any significant extent
unless there is a real and meaningful likelihood of the
shareholder actually participating in the earnings and growth
of the corporation.''.
(b) Effective Date.--The amendment made by this section
shall apply to transactions after May 14, 2003.

SEC. 5680. MODIFICATION OF DEFINITION OF CONTROLLED GROUP OF
CORPORATIONS.

(a) In General.--Section 1563(a)(2) (relating to brother-
sister controlled group) is amended by striking
``possessing--'' and all that follows through ``(B)'' and
inserting ``possessing''.
(b) Application of Existing Rules to Other Code
Provisions.--Section 1563(f) (relating to other definitions
and rules) is amended by adding at the end the following new
paragraph:
``(5) Brother-sister controlled group definition for
provisions other than this part.--
``(A) In general.--Except as specifically provided in an
applicable provision, subsection (a)(2) shall be applied to
an applicable provision as if it read as follows:
`(2) Brother-sister controlled group.--Two or more
corporations if 5 or fewer persons who are individuals,
estates, or trusts own (within the meaning of subsection
(d)(2) stock possessing--
`(A) at least 80 percent of the total combined voting power
of all classes of stock entitled to vote, or at least 80
percent of the total value of shares of all classes of stock,
of each corporation, and
`(B) more than 50 percent of the total combined voting
power of all classes of stock entitled to vote or more than
50 percent of the total value of shares of all classes of
stock of each corporation, taking into account the stock
ownership of each such person only to the extent such stock
ownership is identical with respect to each such
corporation.'
``(B) Applicable provision.--For purposes of this
paragraph, an applicable provision is any provision of law
(other than this part) which incorporates the definition of
controlled group of corporations under subsection (a).''.
(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. 5681. MANDATORY BASIS ADJUSTMENTS IN CONNECTION WITH
PARTNERSHIP DISTRIBUTIONS AND TRANSFERS OF
PARTNERSHIP INTERESTS.

(a) In General.--Section 754 is repealed.
(b) Adjustment to Basis of Undistributed Partnership
Property.--Section 734 is amended--
(1) by striking ``, with respect to which the election
provided in section 754 is in effect,'' in the matter
preceding paragraph (1) of subsection (b),
(2) by striking ``(as adjusted by section 732(d))'' both
places it appears in subsection (b),
(3) by striking the last sentence of subsection (b),
(4) by striking subsection (a) and by redesignating
subsections (b) and (c) as subsections (a) and (b),
respectively, and
(5) by striking ``optional'' in the heading.
(c) Adjustment to Basis of Partnership Property.--Section
743 is amended--
(1) by striking ``with respect to which the election
provided in section 754 is in effect'' in the matter
preceding paragraph (1) of subsection (b),
(2) by striking subsection (a) and by redesignating
subsections (b) and (c) as subsections (a) and (b),
respectively,
(3) by adding at the end the following new subsection:
``(c) Election to Adjust Basis for Transfers Upon Death of
Partner.--Subsection (a) shall not apply and no adjustments
shall be made in the case of any transfer of an interest in a
partnership upon the death of a partner unless an election to
do so is made by the partnership. Such an election shall
apply with respect to all such transfers of interests in the
partnership. Any election under section 754 in effect on the
date of the enactment of this subsection shall constitute an
election made under this subsection. Such election may be
revoked by the partnership, subject to such limitations as
may be provided by regulations prescribed by the
Secretary.'', and
(4) by striking ``OPTIONAL'' in the heading.
(d) Conforming Amendments.--
(1) Subsection (d) of section 732 is repealed.
(2) Section 755(a) is amended--
(A) by striking ``section 734(b) (relating to the optional
adjustment'' and inserting ``section 734(a) (relating to the
adjustment'', and
(B) by striking ``section 743(b) (relating to the optional
adjustment'' and inserting ``section 743(a) (relating to the
adjustment''.
(3) Section 761(e)(2) is amended by striking ``optional''.
(4) Section 774(a) is amended by striking ``743(b)'' both
places it appears and inserting ``743(a)''.
(5) The item relating to section 734 in the table of
sections for subpart B of part II of subchapter K of chapter
1 is amended by striking ``Optional''.
(6) The item relating to section 743 in the table of
sections for subpart C of part II of subchapter K of chapter
1 is amended by striking ``Optional''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to transfers and
distributions made after the date of the enactment of this
Act.
(2) Repeal of section 732(d).--The amendments made by
subsections (b)(2) and (d)(1) shall apply to--
(A) except as provided in subparagraph (B), transfers made
after the date of the enactment of this Act, and
(B) in the case of any transfer made on or before such date
to which section 732(d) applies, distributions made after the
date which is 2 years after such date of enactment.

[[Page S1324]]

PART IV--DEPRECIATION AND AMORTIZATION

SEC. 5682. EXTENSION OF AMORTIZATION OF INTANGIBLES TO SPORTS
FRANCHISES.

(a) In General.--Section 197(e) (relating to exceptions to
definition of section 197 intangible) is amended by striking
paragraph (6) and by redesignating paragraphs (7) and (8) as
paragraphs (6) and (7), respectively.
(b) Conforming Amendments.--
(1)(A) Section 1056 (relating to basis limitation for
player contracts transferred in connection with the sale of a
franchise) is repealed.
(B) The table of sections for part IV of subchapter O of
chapter 1 is amended by striking the item relating to section
1056.
(2) Section 1245(a) (relating to gain from disposition of
certain depreciable property) is amended by striking
paragraph (4).
(3) Section 1253 (relating to transfers of franchises,
trademarks, and trade names) is amended by striking
subsection (e).
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
acquired after the date of the enactment of this Act.
(2) Section 1245.--The amendment made by subsection (b)(2)
shall apply to franchises acquired after the date of the
enactment of this Act.

SEC. 5683. CLASS LIVES FOR UTILITY GRADING COSTS.

(a) Gas Utility Property.--Section 168(e)(3)(E) (defining
15-year property) 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) initial clearing and grading land improvements with
respect to gas utility property.''.
(b) Electric Utility Property.--Section 168(e)(3) is
amended by adding at the end the following new subparagraph:
``(F) 20-year property.--The term `20-year property' means
initial clearing and grading land improvements with respect
to any electric utility transmission and distribution
plant.''.
(c) Conforming Amendments.--The table contained in section
168(g)(3)(B) is amended--
(1) by inserting ``or (E)(iv)'' after ``(E)(iii)'', and
(2) by adding at the end the following new item:

``(F).......................................................25''.....

(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 5684. CONSISTENT AMORTIZATION OF PERIODS FOR
INTANGIBLES.

(a) Start-Up Expenditures.--
(1) Allowance of deduction.--Paragraph (1) of section
195(b) (relating to start-up expenditures) is amended to read
as follows:
``(1) Allowance of deduction.--If a taxpayer elects the
application of this subsection with respect to any start-up
expenditures--
``(A) the taxpayer shall be allowed a deduction for the
taxable year in which the active trade or business begins in
an amount equal to the lesser of--
``(i) the amount of start-up expenditures with respect to
the active trade or business, or
``(ii) $5,000, reduced (but not below zero) by the amount
by which such start-up expenditures exceed $50,000, and
``(B) the remainder of such start-up expenditures shall be
allowed as a deduction ratably over the 180-month period
beginning with the month in which the active trade or
business begins.''.
(2) Conforming amendment.--Subsection (b) of section 195 is
amended by striking ``Amortize'' and inserting ``Deduct'' in
the heading.
(b) Organizational Expenditures.--Subsection (a) of section
248 (relating to organizational expenditures) is amended to
read as follows:
``(a) Election to Deduct.--If a corporation elects the
application of this subsection (in accordance with
regulations prescribed by the Secretary) with respect to any
organizational expenditures--
``(1) the corporation shall be allowed a deduction for the
taxable year in which the corporation begins business in an
amount equal to the lesser of--
``(A) the amount of organizational expenditures with
respect to the taxpayer, or
``(B) $5,000, reduced (but not below zero) by the amount by
which such organizational expenditures exceed $50,000, and
``(2) the remainder of such organizational expenditures
shall be allowed as a deduction ratably over the 180-month
period beginning with the month in which the corporation
begins business.''.
(c) Treatment of Organizational and Syndication Fees or
Partnerships.--
(1) In general.--Section 709(b) (relating to amortization
of organization fees) is amended by redesignating paragraph
(2) as paragraph (3) and by amending paragraph (1) to read as
follows:
``(1) Allowance of deduction.--If a taxpayer elects the
application of this subsection (in accordance with
regulations prescribed by the Secretary) with respect to any
organizational expenses--
``(A) the taxpayer shall be allowed a deduction for the
taxable year in which the partnership begins business in an
amount equal to the lesser of--
``(i) the amount of organizational expenses with respect to
the partnership, or
``(ii) $5,000, reduced (but not below zero) by the amount
by which such organizational expenses exceed $50,000, and
``(B) the remainder of such organizational expenses shall
be allowed as a deduction ratably over the 180-month period
beginning with the month in which the partnership begins
business.
``(2) Dispositions before close of amortization period.--In
any case in which a partnership is liquidated before the end
of the period to which paragraph (1)(B) applies, any deferred
expenses attributable to the partnership which were not
allowed as a deduction by reason of this section may be
deducted to the extent allowable under section 165.''.
(2) Conforming amendment.--Subsection (b) of section 709 is
amended by striking ``Amortization'' and inserting
``Deduction'' in the heading.
(d) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
______

SA 2590. Mr. ROCKEFELLER (for himself, Mr. Burns, and Mr. Dorgan)
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:
``Title 49 of the United States Code is amended by adding a
new Section 11101, and renumbering all successive sections
accordingly, as follows:

SEC. 11101. DUTY TO PROVIDE A RATE TO SHIPPERS.

Upon the request of a shipper, a rail carrier shall provide
both a rate, in writing, for, and the transportation service
requested by, the shipper between any two points on the
system of that carrier where traffic originates, terminates,
or may reasonably be interchanged.''
______

SA 2591. Mr. INHOFE proposed an amendment SA 2388 proposed by Mrs.
Hutchison (for herself, Mr. Kyl, Mr. Levin, Mr. Graham of Florida, Mr.
McCain, Ms. Stabenow, and Mrs. Feinstein) to the 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:

At the end, add the following:
``Sec.  . This section shall take effect one day after
enactment of this Act.''
______

SA 2592. Mr. DAYTON 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. __ . 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) of the Energy Policy Act of 1992.
``(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 of the Energy Policy Act of 1992.
``(c) Exemption.--This section does not apply to fuel used
in vehicles described in subparagraphs (A) through (H) of
section 301(9) of the Energy Policy Act of 1992.''.

[[Page S1325]]

______

SA 2593. Mr. HOLLINGS (for himself and Mr. Carper) 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 all after the first word and insert the following:

Part   --Amtrak Authorizations

SEC.  1. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM
DEFINED.

(a) In General.--Section 24102 is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively; and
(3) by inserting after paragraph (4) as so redesignated the
following:
``(5) `national rail passenger transportation system'
means--
``(A) the segment of the Northeast Corridor between Boston,
Massachusetts and Washington, D.C.;
``(B) rail corridors that have been designated by the
Secretary of Transportation as highspeed corridors, but only
after they have been improved to permit operation of
highspeed service;
``(C) long-distance routes of more than 750 miles between
endpoints operated by Amtrak as of the date of enactment of
the Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004; and
``(D) short-distance corridors or routes operated by
Amtrak.''.
(b) Amtrak Routes With State Funding.--
(1) In general.--Chapter 247 is amended by inserting after
section 24701 the following:

``Sec. 24702. Transportation requested by States,
authorities, and other persons

``(a) Contracts for Transportation.--Amtrak and a State, a
regional or local authority, or another person may enter into
a contract for Amtrak to operate an intercity rail service or
route not included in the national rail passenger
transportation system upon such terms as the parties thereto
may agree.
``(b) Discontinuance.--Upon termination of a contract
entered into under this section, or the cessation of
financial support under such a contract by either party,
Amtrak may discontinue such service or route, notwithstanding
any other provision of law.''.
(2) Conforming amendment.--The chapter analysis for chapter
247 is amended by inserting after the item relating to
section 24701 the following:
``24702. Transportation requested by States, authorities, and other
persons''.
(c) Amtrak To Continue To Provide Non-High-Speed
Services.--Nothing in this subtitle is intended to preclude
Amtrak from restoring, improving, or developing non-high-
speed intercity passenger rail service.

SEC.  2. GENERAL AMTRAK AUTHORIZATIONS.

(a) Repeal of Self-Sufficiency Requirements.
(1) Title 49 amendments.--Chapter 241 is amended--
(A) by striking the last sentence of section 24101(d); and
(B) by striking the last sentence of section 24104(a).
(2) Amtrak reform and accountability act amendments.--Title
II of the Amtrak Reform and Accountability Act of 1997 (49
U.S.C. 24101 nt) is amended by striking sections 204 and 205.
(3) Common stock redemption date.--Section 415 of the
Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304
nt) is amended by striking subsection (b).
(b) Lease Arrangements.--Amtrak may obtain services from
the Administrator of General Services, and the Administrator
may provide services to Amtrak, under section 201(b) and
211(b) of the Federal Property and Administrative Service Act
of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal
years 2005 through 2009.
(c) Financial Powers.--Section 415(d) of the Amtrak Reform
and Accountability Act of 1997 by adding at the end the
following:
``(3) This section does not affect the applicability of
section 3729 of title 31, United States Code, to claims made
against Amtrak.''.
(d) Amtrak Reports.--Section 24315 is amended--
(1) by striking ``February 15'' in subsection (a) and
inserting ``January 31st'';
(2) by striking subparagraph (B) of subsection (a)(1) and
inserting the following:
``(B) the route profitability survey data, excluding
interest and depreciation costs, or any other route cost
allocation or profitability analysis that Amtrak develops;'';
(3) by striking subparagraph (D) of subsection (a)(1) and
inserting the following:
``(D) the total revenue-to-total cost ratio;'';
(4) by striking subparagraphs (C), (F), and (G) of
subsection (a) (1), and redesignating subparagraphs (D), (E),
and (H) as subparagraphs (C), (D), and (E), respectively; and
(5) by striking ``February 15'' in subsection (b) and
inserting ``January 31st''.

SEC.   3. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER
CORPORATION.

(a) In General.--The Secretary of Transportation may not
collect any payments of principal or interest for the direct
loan made to the National Railroad Passenger Corporation
under section 502 of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 822). There are
authorized to be appropriated to the Secretary for fiscal
year 2005 $100,000,000 for the purpose of repaying that loan
to the Secretary of the Treasury. The Secretary of
Transportation shall waive any conditions imposed under the
loan.
(b) Certain Conditions Waived.--Section 151 of the
Transportation, Treasury, and Independent Agencies
Appropriations Act, 2004, is repealed.
(c) Federal Railroad Administration.--
(1) In general.--Section 11123 is amended--
(A) by striking ``failure of existing commuter rail
passenger transportation operations caused by a cessation of
service by the National Railroad Passenger Corporation,'' in
subsection (a);
(B) by inserting ``or'' after the semicolon in subsection
(a)(3);
(C) by striking ``permits, or'' in subsection (a)(4) and
inserting ``permits.'';
(D) by striking paragraph (5) of subsection (a);
(E) by striking ``(A) Except as provided in subparagraph
(B), when'' in subsection (b)(3) and inserting ``When'';
(F) by striking subparagraph (B) of subsection (b)(3);
(G) by striking paragraph (4) of subsection (c); and
(H) by striking subsections (e) and (f).
(2) Section 24301(c) is amended by striking ``11123,''.

SEC.   4. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

(a) In General.--The Secretary of the Treasury shall work
with the Secretary of Transportation and Amtrak to
restructure Amtrak's indebtedness as of the date of enactment
of this Act.
(b) New Debt Prohibition.--Except as approved by the
Secretary of Transportation, Amtrak may not enter into any
obligation secured by assets of the Corporation after the
date of enactment of this Act. This section does not prohibit
unsecured lines of credit used by Amtrak or any subsidiary
for working capital purposes.
(c) Debt Redemption.--The Secretary of Transportation, in
consultation with the Secretary of the Treasury, shall enter
into negotiations with the holders of Amtrak debt, including
leases, that is outstanding on the date of enactment of this
Act for the purpose of redeeming or restructuring that debt.
The Secretary, in consultation with the Secretary of the
Treasury, shall secure agreements for repayment on such
terms as the Secretary deems favorable to the interests of
the Government. Payments for such redemption may be made
after October 1, 2005, in either a single payment or a
series of payments, but in no case shall the repayment
period extend beyond September 30, 2010.
(d) Criteria.--In redeeming or restructuring Amtrak's
indebtedness, the Secretaries and Amtrak--
(1) shall ensure that the restructuring imposes the least
practicable burden on taxpayers; and
(2) take into consideration repayment costs, the term of
any loan or loans, and market conditions.
(e) Authorization.--There are authorized to be appropriated
to the Secretary such sums as may be necessary for fiscal
years 2005 through 2010 to restructure or redeem Amtrak's
secured debt.
(f) Amtrak Principal and Interest Payments.--
(1) Principal on debt service.--Unless the Secretary of
Transportation and the Secretary of the Treasury redeem the
debt in its entirety, there are authorized to be appropriated
to the Secretary of Transportation for the use of Amtrak for
retirement of principal on loans for capital equipment, or
capital leases, the following amounts:
(A) For fiscal year 2005, $109,500,000.
(B) For fiscal year 2006, $114,700,000.
(C) For fiscal year 2007, $202,900,000.
(D) For fiscal year 2008, $164,300,000.
(E) For fiscal year 2009, $155,800,000.
(F) For fiscal year 2010, $203,500,000.
(2) Interest on debt.--Unless the Secretary of
Transportation and the Secretary of the Treasury restructure
or redeem the debt, there are authorized to be appropriated
to the Secretary of Transportation for the use of Amtrak for
the payment of interest on loans for capital equipment, or
capital leases, the following amounts:
(A) For fiscal year 2005, $151,300,000.
(B) For fiscal year 2006, $146,300,000.
(C) For fiscal year 2007, $137,500,000.
(D) For fiscal year 2008, $125,300,000.
(E) For fiscal year 2009, $117,100,000.
(F) For fiscal year 2010, $107,800,000.
(3) Reductions in authorization levels.--Whenever action
taken by the Secretary of the Treasury under subsection (c)
results in reductions in amounts of principle and interest
that, Amtrak must service on existing debt, Amtrak shall
submit to the Senate Committee on Commerce, Science and
Transportation, the House of Representatives Committee on
Transportation and Infrastructure, the Senate Committee on
Appropriations, and House of Representatives Committee on
Appropriations revised requests for amounts authorized by
paragraphs (1) and (2) that reflect the such reductions.

SEC.   5. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND
STATION IMPROVEMENTS.

(a) Environmental Compliance.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak in order to comply with environmental regulations
the following amounts:

[[Page S1326]]

(A) For fiscal year 2005, $18,800,000.
(B) For fiscal year 2006, $21,700,000.
(C) For fiscal year 2007, $22,300,000.
(D) For fiscal year 2005, $15,100,000.
(E) For fiscal year 2009, $15,900,000.
(F) For fiscal year 2010, $16,000,000.
(b) Capital Improvements to Stations.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Transportation for the use of Amtrak for
capital improvements to stations, including an initial
assessment of the full set of accessibility needs across the
national rail passenger transportation system and improved
accessibility for the elderly and people with disabilities
and in Amtrak facilities and stations, the following amounts:
(A) For fiscal year 2005, $17,100,000.
(B) For fiscal year 2006, $19,800,000.
(C) For fiscal year 2007, $19,800,000.
(D) For fiscal year 2008, $19,000,000.
(E) For fiscal year 2009, $19,000,000.
(F) For fiscal year 2010, $19,000,000.
(2) Study of compliance requirements at existing intercity
rail stations.--Amtrak shall evaluate the improvements
necessary to make all existing stations it serves readily
accessible to and usable by individuals with disabilities, as
required by section 242(e)(2) of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The
evaluation shall include the estimated cost of the
improvements necessary, the identification of the responsible
person (as defined in section 241(5) of that Act (42 U.S.C.
12161(5))), and the earliest practicable date when such
improvements can be made. Amtrak shall submit the survey to
the Senate Committee on Commerce, Science, and
Transportation, the House of Representatives Committee on
Transportation and Infrastructure, and the National
Council on Disability by September 30, 2005, along with
recommendations for funding the necessary improvements.

SEC.  6. TUNNEL LIFE SAFETY.

(a) Life Safety Needs.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak for fiscal year 2005:
(1) $677,000,000 for the 6 New York tunnels built in 1910
to provide ventilation, electrical, and fire safety
technology upgrades, emergency communication and lighting
systems, and emergency access and egress for passengers.
(2) $57,000,000 for the Baltimore & Potomac tunnel built in
1872 to provide adequate drainage, ventilation,
communication, lighting, and passenger egress upgrades.
(3) $40,000,000 for the Washington, D.C., Union Station
tunnels built in 1904 under the Supreme Court and House and
Senate Office Buildings to improve ventilation,
communication, lighting, and passenger egress upgrades.
(b) Infrastructure Upgrades.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak in consultation with the State of Maryland
$3,000,000 for fiscal year 2005 for the preliminary design of
options for a new tunnel on a different alignment to augment
the capacity of the existing Baltimore tunnels.
(d) Financial Contribution From Other Tunnel Users.--The
Secretary shall, taking into account the need for the timely
completion of all life safety portions of the tunnel projects
described in subsection (a)--
(1) consider the extent to which rail carriers other than
Amtrak use the tunnels;
(2) consider the feasibility of seeking a financial
contribution from those other rail carriers toward the costs
of the projects; and
(3) obtain financial contributions or commitments from such
other rail carriers if feasible.
(e) Availability of Funds.--Amounts appropriated pursuant
to this section shall remain available until expended.

SEC.  7. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

(a) Operating Expenses.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak for operating costs the following amounts:
(1) For fiscal year 2005, $581,400,000.
(2) For fiscal year 2006, $566,700,000.
(3) For fiscal year 2007, $557,700,000.
(4) For fiscal year 2008, $528,500,000.
(5) For fiscal year 2009, $522,000,000.
(6) For fiscal year 2010, $522,000,000.
(b) Capital Backlog and Upgrades.--There are authorized to
be appropriated to the Secretary of Transportation for the
use of Amtrak for capital expenses, the following amounts:
(1) For fiscal year 2005, $741,500,000.
(2) For fiscal year 2006, $835,200,000.
(3) For fiscal year 2007, $760,800,000.
(4) For fiscal year 2008, $733,600,000.
(5) For fiscal year 2009, $774,300,000.
(6) For fiscal year 2010, $874,300,000.
(c) Replacement Equipment.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak for the purchase of replacement passenger rail
equipment the following amounts:
(1) For fiscal year 2006, $250,000,000.
(2) For fiscal year 2007, $250,000,000.
(3) For fiscal year 2008, $350,000,000.
(4) For fiscal year 2009, $350,000,000.
(5) For fiscal year 2010, $350,000,000.

SEC.   8. GRANTS NOT CONSIDERED TO REPLACE FEDERAL OPERATING
OR CAPITAL SUPPORT.

Grants or assistance provided directly to a State or group
of States by the Secretary under this title for rail
infrastructure investments shall not be considered to reduce
or replace the authorizations or the need for annual Federal
appropriations for the National Railroad Passenger
Corporation.

SEC.   9. ESTABLISHMENT OF GRANT PROCESS.

(a) Grant Requests.--Amtrak shall submit grant requests to
the Secretary of Transportation for funds authorized to be
appropriated to the Secretary for the use of Amtrak under
sections ___ 6, ___ 7, and ___ 8.
(b) Procedures For Grant Requests.--The Secretary shall
establish substantive and procedural requirements, including
schedules, for grant requests under this section not later
than 30 days after the date of enactment of this Act and
shall transmit copies to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives
Committee on Transportation and Infrastructure.
(c) Review and Approval.--
(1) 30-day process.--The Secretary shall complete the
review of a grant request and approve or disapprove the
request within 30 days after the date on which Amtrak
submits the grant request.
(2) Incomplete or deficient requests.--If the Secretary
disapproves the request or determines that the request is
incomplete or deficient, the Secretary shall immediately
notify Amtrak of the reason for disapproval or the incomplete
items or deficiencies. Within 15 days after receiving
notification from the Secretary under the preceding sentence,
Amtrak shall submit a modified request for the Secretary's
review.
(3) Revised requests.--Within 15 days after receiving a
modified request from Amtrak, the Secretary shall either
approve the modified request, or, if the Secretary finds that
the request, is still incomplete or deficient, the Secretary
shall identify in writing to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and
Infrastructure the remaining deficiencies and recommend a
process for resolving the outstanding portions of the
request.

SEC.   10. STATE-SUPPORTED ROUTES.

The Board of Directors of Amtrak, in consultation with the
Secretary of Transportation and the chief executive officer
of each State and the District of Columbia, shall develop a
formula for funding the operating costs of trains operating
on routes not in excess of 750 miles in length that--
(1) is equitable and fair; and
(2) ensures, within 5 years after the date of enactment of
this Act, equal treatment of all States (and the District of
Columbia) and groups of States (including the District of
Columbia).

SEC.   11. REESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY
COMMITTEE.

(a) Re-establishment of Northeast Corridor Safety
Committee.--The Secretary of Transportation shall reestablish
the Northeast Corridor Safety Committee authorized by section
24905(b) of title 49, United States Code.
(b) Termination Date.--Section 24905(b)(4) is amended by
striking ``January 1, 1999,'' and inserting ``January 1,
2009,''.

SEC.   12. AMTRAK BOARD OF DIRECTORS.

Section 24302 is amended to read as follows: ``24302.
Board of directors
``(a) Composition and Terms.--
``(1) The board of directors of Amtrak is composed of the
following 9 directors, each of whom must be a citizen of the
United States:
``(A) The President of Amtrak.
``(B) The Secretary of Transportation.
``(C) 7 individuals appointed by the President of the
United States, by and with the advice and consent of the
Senate, with experience and qualifications in or directly
related to rail transportation, including representatives of
freight and passenger rail transportation, travel,
hospitality, cruise line, and passenger air, transportation
businesses, consumers of passenger rail transportation, and
State government.
``(2) In selecting individuals described in paragraph (1)
for nominations for appointments to the Board, the President
shall consult with the Speaker of the House of
Representatives, the Minority Leader of the House of
Representatives, the Majority Leader of the Senate, and the
Minority Leader of the Senate and should ensure adequate and
balanced representation of the major geographic regions of
the United States.
``(3) Each member shall be appointed for a term of 5 years
and until the individual's successor is appointed and
qualified. Not more than 4 individuals appointed under
paragraph (1)(C) may be members of the same political party.
``(4) The board shall elect a chairman and a vice chairman
from among its membership. The vice chairman shall serve as
chairman in the absence of the chairman.
``(5) The Secretary may be represented at board meetings by
the Secretary's designee.
``(b) Pay and Expenses.--Each director not employed by the
United States Government is entitled to $300 a day when
performing board duties and powers. Each director is entitled
to reimbursement for necessary travel, reasonable secretarial
and professional staff support, and subsistence expenses
incurred in attending board meetings.
``(c) Vacancies.--A vacancy on the board is filled in the
same way as the original selection, except that an individual
appointed by the President of the United States under
subsection (a)(1)(C) of this section to fill a vacancy
occurring before the end of the term for which the
predecessor of that individual was appointed is appointed for
the remainder of that term. A vacancy required to be
filled by appointment under subsection (a)(1)(C) must be
filled not later than 120 days after the vacancy occurs.

[[Page S1327]]

``(d) Bylaws.--The board may adopt and amend bylaws
governing the operation of Amtrak. The bylaws shall be
consistent with this part and the articles of
incorporation.''.

SEC.   13. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR
AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

(a) In General.--The Inspector General of the Department of
Transportation shall employ an independent financial
consultant with experience in railroad accounting--
(1) to assess Amtrak's financial accounting and reporting
system and practices;
(2) to design and assist Amtrak in implementing a modern
financial accounting and reporting system, on the basis of
the assessment, that will produce accurate and timely
financial information in sufficient detail--
(A) to enable Amtrak to assign revenues and expenses
appropriately to each of its lines of business and to each
major activity within each line of business activity,
including train operations, equipment maintenance, ticketing,
and reservations;
(B) to aggregate expenses and revenues related to
infrastructure and distinguish them from expenses and
revenues related to rail operations; and
(C) to provide ticketing and reservation information on a
real-time basis.
(b) Verification of System; Report.--The Inspector General
of the Department of Transportation shall review the
accounting system designed and implemented under subsection
(a) to ensure that it accomplishes the purposes for which it
is intended. The Inspector General shall report his findings
and conclusions, together with any recommendations, to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Transportation and
Infrastructure.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Transportation
$2,500,000 for fiscal year 2005 to carry out subsection (a),
such sums to remain available until expended.

SEC.  14. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

(a) Development of 5-Year Financial Plan.--The Amtrak board
of directors shall submit an annual budget for Amtrak, and a
5-year financial plan for the fiscal year to which that
budget relates and the subsequent 4 years, prepared in
accordance with this section, to the Secretary of
Transportation and the Inspector General of the Department of
Transportation no later than--
(1) the first day of each fiscal year beginning after the
date of enactment of this Act; or
(2) the date that is 60 days after the date of enactment of
an appropriation Act for the fiscal year, if later.
(b) Contents of 5-Year Financial Plan.--The 5-year
financial plan for Amtrak shall include, at a minimum--
(1) all projected revenues and expenditures for Amtrak,
including governmental funding sources;
(2) projected ridership levels for all Amtrak passenger
operations;
(3) revenue and expenditure forecasts for non-passenger
operations;
(4) capital funding requirements and expenditures necessary
to maintain passenger service which will accommodate
predicted ridership levels and predicted sources of capital
funding;
(5) operational funding needs, if any, to maintain current
and projected levels of passenger service, including state-
supported routes and predicted funding sources;
(6) projected capital and operating requirements,
ridership, and revenue for any new passenger service
operations or service expansions;
(7) an assessment of the continuing financial stability of
Amtrak, as indicated by factors such as: the ability of the
federal government to adequately meet capital and operating
requirements, Amtrak's access to long-term and short-term
capital markets, Amtrak's ability to efficiently manage its
workforce, and Amtrak's ability to effectively provide
passenger train service;
(8) lump sum expenditures of $10,000,000 or more and
sources of funding;
(9) estimates of long-term and short-term debt and
associated principle and interest payments (both current and
anticipated);
(10) annual cash flow forecasts; and
(11) a statement describing methods of estimation and
significant assumptions.
(c) Standards To Promote Financial Stability.--In meeting
the requirements of subsection (b) with respect to a 5-year
financial plan, Amtrak shall--
(1) apply sound budgetary practices, including reducing
costs and other expenditures, improving productivity,
increasing revenues, or combinations of such practices; and
(2) use the categories specified in the financial
accounting and reporting system developed under section 4652
when preparing its 5-year financial plan.
(d) Assessment by DOT Inspector General.--
(1) In General.--The Inspector General of the Department of
Transportation shall assess the 5-year financial plans
prepared by Amtrak under this section to determine whether
they meet the requirements of subsection (b), and may suggest
revisions to any components thereof that do not meet those
requirements.
(2) Assessment to be furnished to the congress.--The
Inspector General shall furnish to the House of
Representatives Committee on Appropriations, the Senate
Committee on Appropriations, the House of Representatives
Committee on Transportation and Infrastructure, and the
Senate Committee on Commerce, Science, and Transportation--
(A) an assessment of the annual budget within 90 days after
receiving it from Amtrak; and
(B) an assessment of the remaining 4 years of the 5-year
financial plan within 180 days after receiving it from
Amtrak.

SEC.  15. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR
AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

(a) Review.--The Secretary of Transportation shall, in
consultation with the Federal Railroad Administration,
execute a contract to obtain the services of an independent
auditor or consultant to research and define Amtrak's past
and current methodologies for determining intercity passenger
rail routes and services.
(b) Recommendations.--The independent auditor or consultant
shall recommend objective methodologies for determining such
routes and services, including the establishment of new
routes, the elimination of existing routes, and the
contraction or expansion of services or frequencies over such
routes.
(e) Submittal to Congress.--The Secretary shall submit
recommendations received under subsection (b) to Amtrak, the
House of Representatives Committee on Transportation and
Infrastructure, and the Senate Committee on Commerce,
Science, and Transportation
(d) Authorization of Appropriations.--There are authorized
to be made available to the Secretary of Transportation, out
of any amounts authorized by this title to be appropriated
for the benefit of Amtrak and not otherwise obligated or
expended, such sums as may be necessary to carry out this
section.

SEC.  16. METRICS AND STANDARDS.

The Administrator of the Federal Railroad Administration
shall, in consultation with Amtrak and host railroads,
develop new or improve existing metrics and minimum standards
for measuring the service quality of intercity train
operations, including on-time performance, onboard services,
stations, facilities, equipment, and other services.

SEC.  17. ON-TIME PERFORMANCE.

Section 24308 is amended by adding at the end the
following:
``(f) On-Time Performance and Other Standards.--If the on-
time performance of any intercity passenger train averages
less than 80 percent for any consecutive 6-month period, or
the service quality of intercity train operations for which
minimum standards are established under section ___17 of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 Act fails to meet those standards, Amtrak
may petition the Surface Transportation Board to investigate
whether, and to what extent, delays or failure to achieve
minimum standards are due to causes that could reasonably be
addressed by a rail carrier over the tracks of which the
intercity passenger train operates, or by a regional
authority providing commuter service, if any. In carrying out
such an investigation, the Surface Transportation Board shall
obtain information from all parties involved and make
recommendations regarding reasonable measures to improve the
service, quality, and on-time performance of the train.''.
______

SA 2594. Mr. HOLLINGS (for himself and Mr. Carper) 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:

Part   --Amtrak Authorizations

SEC.  1. NATIONAL RAILROAD PASSENGER TRANSPORTATION SYSTEM
DEFINED.

(a) In General.--Section 24102 is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively; and
(3) by inserting after paragraph (4) as so redesignated the
following:
``(5) `national rail passenger transportation system'
means--
``(A) the segment of the Northeast Corridor between Boston,
Massachusetts and Washington, D.C.;
``(B) rail corridors that have been designated by the
Secretary of Transportation as high-speed corridors, but only
after they have been improved to permit operation of
highspeed service;
``(C) long-distance routes of more than 750 miles between
endpoints operated by Amtrak as of the elate of enactment of
the Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004; and
``(D) short-distance corridors or routes operated by
Amtrak.''.
(b) Amtrak Routes with State Funding.--
(1) In general.--Chapter 247 is amended by inserting after
section 24701 the following:

``Sec. 24702. Transportation requested by States,
authorities, and other persons

``(a) Contracts for Transportation.--Amtrak and a State, a
regional or local authority, or another person may enter into
a

[[Page S1328]]

contract for Amtrak to operate an intercity rail service or
route not included in the national rail passenger
transportation system upon such terms as the parties thereto
may agree.
``(b) Discontinuance.---Upon termination of a contract
entered into under this section, or the cessation of
financial support under such a contract by either party,
Amtrak may discontinue such service or route, notwithstanding
any other provision of law.''.
(2) Conforming amendment.--The chapter analysis for chapter
247 is amended by inserting after the item relating to
section 24701 the following:

``24702. Transportation requested by States, authorities, and other
persons''.

(c) Amtrak To Continue To Provide Non-Highspeed Services.--
Nothing in this subtitle is intended to preclude Amtrak from
restoring, improving, or developing non-high-speed intercity
passenger rail service.

SEC.   2. GENERAL AMTRAK AUTHORIZATIONS.

(a) Repeal of Self-sufficient Requirements.--
(1) Title 49 amendments.--Chapter 241 is amended--
(A) by striking the last sentence of section 24101(4); and
(B) by striking the last sentence of section 24104(a).
(2) Amtrak reform and accountability act amendments.--Title
II of the Amtrak Reform and Accountability Act of 1997 (49
U.S.C. 24101 nt) is amended by striking sections 204 and 205.
(3) Common stock redemption date.---Section 415 of the
Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24304
nt) is amended by striking subsection (b).
(b) Lease Arrangements.--Amtrak may obtain services from
the Administrator of General Services, and the Administrator
may provide services to Amtrak, under section 201(b) and
211(b) of the Federal Property and Administrative Service Act
of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal
years 2005 through 2009.
(c) Financiasl Powers.--Section 415(4) of the Amtrak Reform
and Accountability Act of 1997 by adding at the end the
following:
``(3) This section does not affect the applicability of
section 3729 of title 31, United States Code, to claims made
against Amtrak.''.
(d) Amtrak Reports.--Section 24315 is amended--
(1) by striking ``February 15'' in subsection (a) and
inserting ``January 31st'';
(2) by striking subparagraph (B) of subsection (a)(1) and
inserting the following:
``(B) the route profitability survey data, excluding
interest and depreciation costs, or any other route cost
allocation or profitability analysis that Amtrak develops;'';
(3) by striking subparagraph (D) of subsection (a)(1) and
inserting the following:
``(D) the total revenue-to-total cost ratio;'';
(4) by striking subparagraphs (C), (F), and (G) of
subsection (a)(1), and redesignating subparagraphs (D), (E),
and (H) as subparagraphs (C), (D), and (E), respectively; and
(5) by striking ``February 15'' in subsection (b) and
inserting ``January 31st''.

SEC.   3. REPAYMENT OF LOAN TO NATIONAL RAILROAD PASSENGER
CORPORATION.

(a) In General.--The Secretary of Transportation may not
collect any payments of principal or interest for the direct
loan made to the National Railroad Passenger Corporation
under section 502 of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 822). There are
authorized to be appropriated to the Secretary for fiscal
year 2005 $100,000,000 for the purpose of repaying that loan
to the Secretary of the Treasury. The Secretary of
Transportation shall waive any conditions imposed under the
loan.
(b) Certain Conditions Waived.--Section 151 of the
Transportation, Treasury, and Independent Agencies
Appropriations Act, 2004, is repealed.
(c) Federal Railroad Administration.--
(1) In general.--Section 11123 is amended--
(A) by striking ``failure of existing commuter rail
passenger transportation operations caused by a cessation of
service by the National Railroad Passenger Corporation,'' in
subsection (a);
(B) by inserting ``or'' after the semicolon in subsection
(a)(3);
(C) by striking ``permits; or'' in subsection (a)(4) and
inserting ``permits.'';
(D) by striking paragraph (5) of subsection (a);
(E) by striking ``(A) Except as provided in subparagraph
(B), when'' in sub-section (b)(3) and inserting ``When'';
(F) by striking subparagraph (B) of subsection (b)(3);
(G) by striking paragraph (4) of subsection (c); and
(H) by striking subsections (e) and (f).
(2) Section 24301(c) is amended by striking ``11123,''.

SEC.   4. RESTRUCTURING OF LONG-TERM DEBT AND CAPITAL LEASES.

(a) In General.---The Secretary of the Treasury shall work
with the Secretary of Transportation and Amtrak to
restructure Amtrak's indebtedness as of the date of enactment
of this Act.
(b) New Debt Prohibition.--Except as approved by the
Secretary of Transportation, Amtrak may not enter into any
obligation secured by assets of the Corporation after the
date of enactment of this Act. This section does not prohibit
unsecured lines of credit used by Amtrak or any subsidiary
for working capital purposes.
(c) Debt Redemption.--The Secretary of Transportation, in
consultation with the Secretary of the Treasury, shall enter
into negotiations with the holders of Amtrak debt, including
leases, that is outstanding on the (date of enactment of this
Act for the purpose of redeeming or restructuring that debt.
The Secretary, in consultation with the Secretary of the
Treasury, shall secure agreements for repayment on such
terms as the Secretary deems favorable to the interests of
the Government. Payments for such redemption may be made
after October 1, 2005, in either a single payment or a
series of payments, but in no case shall the repayment
period extend beyond September 30, 2010.
(d) Criteria.--In redeeming or restructuring Amtrak's
indebtedness, the Secretaries and Amtrak--
(1) shall ensure that the restructuring imposes the least
practicable burden on taxpayers; and
(2) take into consideration repayment costs, the term of
any loan or loans, and market conditions.
(e) Authorization.--There are authorized to be appropriated
to the Secretary such sums as may be necessary for fiscal
years 2005 through 2010 to restructure or redeem Amtrak's
secured debt.
(f) Amtrak Principal and Interest Payments.--
(1) Principal on debt service.--Unless the Secretary of
Transportation and the Secretary of the Treasury redeem the
debt in its entirety, there are authorized to be appropriated
to the Secretary of Transportation for the use of Amtrak for
retirement of principal on loans for capital equipment, or
capital leases, the following amounts:
(A) For fiscal year 2005, $109,500,000.
(B) For fiscal year 2006, $114,700,000.
(C) For fiscal year 2007, $202,900,000,
(D) For fiscal year 2008, $164,300,000.
(E) For fiscal year 2009, $155,800,000.
(F) For fiscal year 2010, $203,500,000.
(2) Interest on debt.--Unless the Secretary of
Transportation and the Secretary of the Treasury restructure
or redeem the debt, there are authorized to be appropriated
to the Secretary of Transportation for the use of Amtrak for
the payment of interest on loans for capital equipment, or
capital leases, the following amounts:
(A) For fiscal year 2005, $151,300,000.
(B) For fiscal year 2006, $146,300,000.
(C) For fiscal year 2007, $137,500,000.
(D) For fiscal year 2008, $125,300,000.
(E) For fiscal year 2009, $117,100,000.
(F) For fiscal year 2010, $107,800,000.
(3) Reductions in authorization levels.--Whenever action
taken by the Secretary of the Treasury under subsection (c)
results in reductions in amounts of principal and interest
that Amtrak must service on existing debt, Amtrak shall
submit to the Senate Committee on Commerce, Science, and
Transportation, the House of Representatives Committee on
Transportation and Infrastructure, the Senate Committee on
Appropriations, and House of Representatives Committee on
Appropriations revised requests for amounts authorized by
paragraphs (1) and (2) that reflect the such reductions.

SEC.  5. AUTHORIZATIONS FOR ENVIRONMENTAL COMPLIANCE AND
STATION IMPROVEMENTS.

(a) Environmental Compliance.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak in order to comply with environmental regulations
the following amounts:
(A) For fiscal year 2005, $18,800,000.
(B) For fiscal year 2006, $21,700,000.
(C) For fiscal year 2007, $22,300,000.
(D) For fiscal year 2008, $15,100,000.
(E) For fiscal year 2009, $15,900,000.
(F) h or fiscal year 2010, $16,000,000.
(b) Capital Improvements to Stations.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Transportation for the use of Amtrak for
capital improvements to stations, including an initial
assessment of the full set of accessibility needs across the
national rail passenger transportation system and improved
accessibility for the elderly and people with disabilities
and in Amtrak facilities and stations, the following amounts:
(A) For fiscal year 2005, $17,100,000.
(B) For fiscal year 2006, $19,800,000.
(C) For fiscal year 2007, $19,800,000.
(D) For fiscal year 2008, $19,000,000.
(E) For fiscal year 2009, $19,000,000.
(F) For fiscal year 2010, $19,000,000.
(2) Study of compliance requirements at existing intercity
rail stations.--Amtrak shall evaluate the improvements
necessary to make all existing stations it serves readily
accessible to and usable by individuals with disabilities, as
required by section 242(e)(2) of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12162(e)(2)). The
evaluation shall include the estimated cost of the
improvements necessary, the identification of the responsible
person (as defined in section 241(5) of that Act (42 U.S.C.
12161(5))), and the earliest practicable date when such
improvements can be made. Amtrak shall submit the survey to
the Senate Committee on Commerce, Science, and
Transportation, the House of Representatives Committee on
Transportation and Infrastructure, and the, National
Council on Disability by September 30, 2005, along with
recommendations for funding the necessary improvements.

SEC.  6. TUNNEL LIFE SAFETY.

(a) Life Safety Needs.--There are authorized to be
appropriated to the Secretary of

[[Page S1329]]

Transportation for the use of Amtrak for fiscal year 2005:
(1) $677,000,000 for the 6 New York tunnels built in 1910
to provide ventilation, electrical, and fire safety
technology upgrades, emergency communication and lighting
systems, and emergency access and egress for passengers.
(2) $57,000,000 for the Baltimore & Potomac tunnel built in
1872 to provide adequate drainage, ventilation,
communication, lighting, and passenger egress upgrades.
(3) $40,000,000 for the Washington, DC, Union Station
tunnels built in 1904 under the Supreme Court and House and
Senate Office Buildings to improve ventilation,
communication, lighting, and passenger egress upgrades.
(b) Infrastructure Upgrades.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak in consultation with the State of Maryland
$3,000,000 for fiscal year 2005 for the preliminary design of
options for a new tunnel on a different alignment to augment
the capacity of the existing Baltimore tunnels.
(d) Financial Contribution From Other Tunnel Users.--The
Secretary shall, taking into account the need for the timely
completion of all life safety portions of the tunnel projects
described in subsection (a)--
(1) consider the extent to which rail carriers other than
Amtrak use the tunnels;
(2) consider the feasibility of seeking a financial
contribution from those other rail carriers toward the costs
of the projects, and
(3) obtain financial contributions or commitments from such
other rail carriers if feasible.
(e) Availability of Funds.--Amounts appropriated pursuant
to this section shall remain available until expended.

SEC.  7. AUTHORIZATION FOR CAPITAL AND OPERATING EXPENSES.

(a) Operating Expenses.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak for operating costs the following amounts:
(1) For fiscal year 2005, $581,400,000.
(2) For fiscal year 2006, $566,700,000.
(3) For fiscal year 2007, $557,700,000.
(4) For fiscal year 2008, $528,500,000.
(5) For fiscal year 2009, $522,000,000.
(6) For fiscal year 2010, $522,000,000.
(b) Capital Backlog and Upgrades.--There are authorized to
be appropriated to the Secretary, of Transportation for the
use of Amtrak for capital expenses, the following amounts:
(1) For fiscal year 2005, $741,500,000.
(2) For fiscal year 2006, $835,200,000.
(3) For fiscal year 2007, $760,800,000.
(4) For fiscal year 2008, $733,600,000.
(5) For fiscal year 2009, $774,300,000.
(6) For fiscal year 2010, $874,300,000.
(c) Replacement Equipment.--There are authorized to be
appropriated to the Secretary of Transportation for the use
of Amtrak for the purchase of replacement passenger rail
equipment the following amounts:
(1) For fiscal year 2006, $250,000,000.
(2) For fiscal year 2007, $250,000,000.
(3) For fiscal year 2008, $350,000,000.
(4) For fiscal year 2009, $350,000,000.
(5) For fiscal year 2010, $350,000,000.

SEC.  8. GRANTS NOT CONSIDERED TO REPLACE FEDERAL OPERATING
OR CAPITAL SUPPORT.

Grants or assistance provided directly to a State or group
of States by the Secretary under this title for rail
infrastructure investments shall not be considered to reduce
or replace the authorizations or the need for annual Federal
appropriations for the National Railroad Passenger
Corporation.

SEC.  9. ESTABLISHMENT OF GRANT PROCESS.

(a) Grant Requests.--Amtrak shall submit grant requests to
the Secretary of Transportation for funds authorized to be
appropriated to the Secretary for the use of Amtrak under
sections ___6, ___7, and ___8.
(b) Procedures for Grant Request.--The Secretary shall
establish substantive and procedural requirements, including
schedules, for grant requests under this section not late
than 30 days after the date of enactment of this Act and
shall transmit copies to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives
Committee on Transportation and Infrastructure.
(c) Review and Approval.--
(1) 30-day process.--The Secretary shall complete the
review of a grant request and approve or disapprove the
request within 30 days after the date on which Amtrak
submits the grant request.
(2) Incomplete or deficient requests.--If the Secretary
disapproves the request or determines that the request is
incomplete or deficient, the Secretary shall immediately
notify Amtrak of the reason for disapproval or the incomplete
items or deficiencies. Within 15 days after receiving
notification from the Secretary under the preceding sentence,
Amtrak shall submit a modified request for the Secretary's
review.
(3) Revised requests.--Within 15 days after receiving a
modified request from Amtrak, the Secretary shall either
approve the modified request, or, if the Secretary finds that
the request is still incomplete or deficient, the Secretary
shall identify in writing to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and
Infrastructure the remaining deficiencies and recommend a
process for resolving the outstanding portions of the
request.

SEC.  10. STATE-SUPPORTED ROUTES.

The Board of Directors of Amtrak, in consultation with the
Secretary of Transportation and the chief executive officer
of each State and the District of Columbia, shall develop a
formula for funding the operating costs of trains operating
on routes not in excess of 750 miles in length that--
(1) is equitable and fair; and
(2) ensures, within 5 years after the date of enactment of
this Act, equal treatment of all States (and the District of
Columbia) and groups of States (including the District of
Columbia).

SEC.  11. RE-ESTABLISHMENT OF NORTHEAST CORRIDOR SAFETY
COMMITTEE.

(a) Re-establishment of Northeast Corridor Safety
Committee.--The Secretary of Transportation shall re-
establish the Northeast Corridor Safety Committee authorized
by section 24905(b) of title 49, United States Code.
(b) Termination Date.--Section 24905(b)(4) is amended by
striking ``January 1, 1999,'' and inserting ``January 1,
2009,''.

SEC.  12. AMTRAK BOARD OF DIRECTORS.

Section 24302 is amended to read as follows:

``Sec. 24302. Board of directors

``(a) Composition and Terms.--
``(1) The board of directors of Amtrak is composed of the
following 9 directors, each of whom must be a citizen of the
United States:
``(A) The President of Amtrak.
``(B) The Secretary of Transportation.
``(C) 7 individuals appointed by the President of the
United States, by and with the advice and consent of the
Senate, with experience and qualifications in or directly
related to rail transportation, including representatives of
freight and passenger rail transportation, travel,
hospitality, cruise line, and passenger air transportation
businesses, consumers of passenger rail transportation, and
State government.
``(2) In selecting individuals described in paragraph (1)
for nominations for appointments to the Board, the President
shall consult with the Speaker of the House of
Representatives, the Minority Leader of the House of
Representatives, the Majority Leader of the Senate, and the
Minority Leader of the Senate and should ensure adequate and
balanced representation of the major geographic regions of
the United States.
``(3) Each member shall be appointed for a term of 5 years
and until the individual's successor is appointed and
qualified. Not more than 4 individuals appointed under
paragraph (1)(C) may be members of the same political party.
``(4) The board shall elect a chairman and a vice chairman
from among its membership. The vice chairman shall serve as
chairman in the absence of the chairman.
``(5) The Secretary may be represented at board meetings by
the Secretary's designee.
``(b) Pay and Expenses.--Each director not employed by the
United States Government is entitled to $300 a day when
performing board duties and powers. Each director is entitled
to reimbursement for necessary travel, reasonable secretarial
and professional staff support, and subsistence expenses
incurred in attending board meetings.
``(e) Vacancies.--A vacancy on the board is filled in the
same way as the original selection, except that an individual
appointed by the President of the United States under
subsection (a)(1)(C) of this section to fill a vacancy
occurring before the end of the terror for which the
predecessor of that individual was appointed is appointed for
the remainder of that term. A vacancy required to be
filled by appointment under subsection (a)(1)(C) must be
filled not later than 120 days after the vacancy occurs.
``(d) Bylaws.--The board may adopt and amend bylaws
governing the operation of Amtrak. The bylaws shall be
consistent with this part and the articles of
incorporation.''.

SEC. 13. ESTABLISHMENT OF FINANCIAL ACCOUNTING SYSTEM FOR
AMTRAK OPERATIONS BY INDEPENDENT AUDITOR.

(a) In General.--The Inspector General of the Department of
Transportation shall employ an independent financial
consultant with experience in railroad accounting--
(1) to assess Amtrak's financial accounting and reporting
system and practices;
(2) to design and assist Amtrak in implementing a modern
financial accounting and reporting system, on the basis of
the assessment, that will produce accurate and timely
financial information in sufficient detail--
(A) to enable Amtrak to assign revenues and expenses
appropriately to each of its lines of business and to each
major activity within each line of business activity,
including train operations, equipment maintenance, ticketing,
and reservations;
(B) to aggregate expenses and revenues related to
infrastructure and distinguish them from expenses and
revenues related to rail operations; and
(C) to provide ticketing and reservation information on a
real-time basis.
(b) Verification of System; Report.--The Inspector General
of the Department of Transportation shall review the
accounting system designed and implemented under subsection
(a) to ensure that it accomplishes the purposes for which it
is intended. The Inspector General shall report his findings
and conclusions, together with any recommendations, to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Transportation and
Infrastructure.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Transportation
$2,500,000 for

[[Page S1330]]

fiscal year 2005 to carry out subsection (a), such sums to
remain available until expended.

SEC. 14. DEVELOPMENT OF 5-YEAR FINANCIAL PLAN.

(a) Development of 5-year Financial Plan.--The Amtrak board
of directors shall submit an annual budget for Amtrak, and a
5-year financial plan for the fiscal year to which that
budget relates and the subsequent 4 years, prepared in
accordance with this section, to the Secretary of
Transportation and the Inspector General of the Department of
Transportation no later than--
(1) the first day of each fiscal year beginning after the
date of enactment of this Act; or
(2) the date that is 60 days after the date of enactment of
an appropriation Act for the fiscal year, if later.
(b) Contents of 5-year Financial Plan.--The 5-year
financial plan for Amtrak shall include, at a minimum--
(1) all projected revenues and expenditures for Amtrak,
including governmental funding sources;
(2) projected ridership levels for all Amtrak passenger
operations;
(3) revenue and expenditure forecasts for nonpassenger
operations,
(4) capital funding requirements and expenditures necessary
to maintain passenger service which will accommodate
predicted ridership levels and predicted sources of capital
funding;
(5) operational funding needs, if any, to maintain current
and projected levels of passenger service, including state-
supported routes and predicted funding sources;
(6) projected capital and operating requirements,
ridership, and revenue for any new passenger service
operations or service expansions;
(7) an assessment of the continuing financial stability of
Amtrak, as indicated by factors such as: the ability of the
federal government to adequately meet capital and operating
requirements, Amtrak's access to long-term and short-term
capital markets, Amtrak's ability to efficiently manage its
workforce, and Amtrak's ability to effectively provide
passenger train service.
(8) lump sum expenditures of $10,000,000 or more and
sources of funding.
(9) estimates of long-term and short-term debt and
associated principle and interest payments (both current and
anticipated);
(10) annual cash flow forecasts; and
(11) a statement describing methods of estimation and
significant assumptions.
(c) Standards To Promote Financial Stability.--In meeting
the requirements of subsection (b) with respect to a 5-year
financial plan, Amtrak shall--
(1) apply sound budgetary practices, including reducing
costs and other expenditures, improving productivity,
increasing revenues, or combinations of such practices; and
(2) use the categories specified in the financial
accounting and reporting system developed under section 4652
when preparing its 5-year financial plan.
(d) Assessment by DOT Inspector General.--
(1) In General.--The Inspector General of the Department of
Transportation shall assess the 5-year financial plans
prepared by Amtrak under this section to determine whether
they meet the requirements of subsection (b), and may suggest
revisions to any components thereof that do not meet those
requirements.
(2) Assessment to be furnished to the congress.--Tbe
Inspector General shall furnish to the House of
Representatives Committee on Appropriations, the Senate
Committee on Appropriations, the House of Representatives
Committee on Transportation and Infrastructure, and the
Senate Committee on Commerce, Science, and Transportation--
(A) an assessment of the annual budget within 90 days after
receiving it from Amtrak; and
(B) an assessment of the remaining 4 years of the 5-year
financial plan within 180 days after receiving it from
Amtrak.

SEC.   15. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR
AMTRAK ROUTE AND SERVICE PLANNING DECISIONS.

(a) Review.--The Secretary of Transportation shall, in
consultation with the Federal Railroad Administration,
execute a contract to obtain the services of an independent
auditor or consultant to research and define Amtrak's past
and current methodologies for determining intercity passenger
rail routes and services.
(b) Recommendations.--The independent auditor or consultant
shall recommend objective methodologies for determining such
routes and services, including the establishment of new
routes, the elimination of existing routes, and the
contraction or expansion of services or frequencies over such
routes.
(c) Submittal to Congress.--The Secretary shall submit
recommendations received under subsection (b) to Amtrak, the
House of Representatives Committee on Transportation and
Infrastructure, and the Senate Committee on Commerce,
Science, and Transportation.
(d) Authorization of Appropriations.--There are authorized
to be made available to the Secretary of Transportation, out
of any amounts authorized by this title to be appropriated
for the benefit of Amtrak and not otherwise obligated or
expended, such sums as may be necessary to carry out this
section.

SEC.   16. METRICS AND STANDARDS.

The Administrator of the Federal Railroad Administration
shall, in consultation with Amtrak and host railroads,
develop new or improve existing metrics and minimum standards
for measuring the service quality of intercity train
operations, including on-time performance, onboard services,
stations, facilities, equipment, and other services.

SEC.   17. ON-TIME PERFORMANCE.

Section 24308 is amended by adding at the end the
following:
(f) On-time Performance and Other Standards.--If the on-
time performance of any intercity passenger train averages
less than 80 percent for any consecutive 6-month period, or
the service quality of intercity train operations for which
minimum standards are established under section ___ 17 of the
Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 Act fails to meet those standards, Amtrak
may petition the Surface Transportation Board to investigate
whether, and to what extent, delays or failure to achieve
minimum standards are due to causes that could reasonably be
addressed by a rail carrier over the tracks of which the
intercity passenger train operates, or by a regional
authority providing commuter service, if any. In carrying out
such an investigation, the Surface Transportation Board shall
obtain information from all parties involved and make
recommendations regarding reasonable measures to improve the
service, quality, and on-time performance of the train.''.
______

SA 2595. Mr. HOLLINGS 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:

Part  --Railroad Track Modernization

SEC. __1. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC. __ 2. 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
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

``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 railroads. Such grants shall
be for rail transportation and ensuring that track can be
operated safely and efficiently, including grants for
rehabilitating, preserving, or improving track. Grants may be
provided under this chapter to a State or a group of States
for, or in connection with, 1 or more rail capital projects
that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
``(2) 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 on reasonable
assurances 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; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant allocations.--Of the total amount made
available for the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula prescribed
by the Secretary to weigh equally for each State--
``(i) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the States;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the State.
``(b) Federal Share.--The 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.

[[Page S1331]]

``(c) Authorization of Appropriations.--Notwithstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.

``Sec. 22303. Purposes

``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its State
rail plan.

``Sec. 22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service.
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(4) A long-range rail investment program for current and
future freight and passenger infrastructure in the State that
meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
sake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(8) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-range Service and Investment Program.--
``(1) Program content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for inter-city passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made by non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime capacity,
congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the
Secretary determines appropriate.

``Sec. 22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan-
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``Sec. 22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided
in whole or in part in a grant made under section 22301--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
(2) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).

``Sec. 22307. Definitions

In this chapter:
``(1) Private benefit.--The term `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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. __ 3. GRANT PROGRAM FUNDING.

(a) In General.--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 adding at the end the following:
``(D) Rail infrastructure category.--The term `rail
infrastructure category' means discretionary appropriations
to the Secretary of Transportation for the provision of
grants to States for railroad infrastructure investment
activities subject to the obligation limitations on contract
authority provided under chapter 223 of title 49, United
States Code, or for which appropriations are provided in
accordance with authorizations contained in that division.''.
(b) Budget Authority Outlays.--For purposes of section
251(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 901(b)):
(1) Budget authority.--The budget authority for the rail
infrastructure category shall be--
(A) $300,000,000 for fiscal year 2005;
(B) $600,000,000 for fiscal year 2006;
(C) $900,000,000 for fiscal year 2007;
(D) $1,200,000,000 for fiscal year 2008;
(E) $1,500,000,000 for fiscal year 2009; and
(F) $1,500,000,000 for fiscal year 2010.
(2) Outlays.--The level of outlays for the rail
infrastructure category is--
(A) $60,000,000 for fiscal year 2005;
(B) $180,000,000 for fiscal year 2006;
(C) $360,000,000 for fiscal year 2007;
(D) $480,000,000 for fiscal year 2008;
(E) $900,000,000 for fiscal year 2009; and
(F) $1,140,000,000 for fiscal year 2010.

SEC.  171. EXTENSION OF CUSTOMS USER FEES.

Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended
by striking ``March 31, 2004,'' and inserting ``March 31,
2014''.
______

SA 2596. Mr. HOLLINGS 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 all after the first word and insert the following:

Part  --Rail Modernization

SEC.  1. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC.  2. CAPITAL GRANTS FOR RAILROAD TRACK.

(a) Authority.--Chapter 223 of title 49, United States
Code, is amended to read as follows:

[[Page S1332]]

chapter 223--capital grants for railroad track

``Sec.
``22301. Capital grants for railroad track
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

``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 railroads. Such grants shall
be for rail transportation and ensuring that track can be
operated safely and efficiently, including grants for
rehabilitating, preserving, or improving track. Grants may be
provided under this chapter to a State or a group of States
for, or in connection with, 1 or more rail capital projects
that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
``(2) 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--
``(1) condition the award of a grant on reasonable
assurances 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; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant Allocations.--Of the total amount made
available for the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula prescribed
by the Secretary to weigh equally for each State--
``(i) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the State;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the. State.
``(b) Federal Share.--The 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) Authorization of Appropriations.--Notwithstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation 2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.

``Sec. 22303. Purposes

``(a) Purpose.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its State
rail plan.

``Sec. 22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service,
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(4) A long-range rail investment program for current and
future freight and passenger infrastructure in the State that
meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
stake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(8) A statement that the State is in compliance with the
requirements of section 22102.''
``(b) Long-Range Service and Investment Program.--
``(1) Program Content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for intercity passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made bar non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation; and maritime capacity,
congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the
Secretary determines appropriate.

``Sec. 22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``Sec. 22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or unproved with funding provided
in whole or in part in a grant made under section 22301--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
(2) shall he considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).

``Sec. 22307. Definitions

In this chapter:
``(1) Private benefit.--The terra `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary; and

[[Page S1333]]

``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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.  3. GRANT PROGRAM FUNDING.

(a) In General.--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 adding at the end the following:
``(D) Rail infrastructure category.--The term `rail
infrastructure category' means discretionary appropriations
to the Secretary of Transportation for the provision of
grants to States for railroad infrastructure investment
activities subject to the obligation limitations on contract
authority provided under chapter 223 of title 49, United
States Code, or for which appropriations are provided in
accordance with authorizations contained in that division.''.
(b) Budget Authority; Outlays;--For purposes of section
251(c) of the Balanced budget and emergency Deficit Control
Act of 1985 (2 U.S.C. 901(b)):
(1) Budget authority.--The budget authority for the rail
infrastructure category shall be--
(A) $300,000,000 for fiscal year 2005;
(B) $600,000,000 for fiscal year 2006;
(C) $900,000,000 for fiscal year 2007;
(D) $1,200,000,000 for fiscal year 2008;
(E) $1,500,000,000 for fiscal year 2009; and
(F) $1,500,000,000 for fiscal year 2010.
(2) Outlays.--The level of outlays for the rail
infrastructure category is--
(A) $60,000,000 for fiscal year 2005;
(B) $180,000,000 for fiscal year 2006;
(C) $360,000,000 for fiscal year 2007;
(D) $480,000,000 for fiscal year 2008;
(E) $900,000,000 for fiscal year 2009; and
(F) $1,140,000,000 for fiscal year 2010.

SEC.  171. EXTENSION OF CUSTOMS USER FEES.

Section 130310)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended
by striking ``March 31, 2004,'' and inserting ``March 31,
2014''.
______

SA 2597. Mr. HOLLINGS 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 all after the first word and insert the following:

Part  --Rail Modernization

SEC.  --1. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC.  --2. 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
``22302.  State rail plans
``22303.  Purposes
``22304.  Content
``22305.  Approval
``22306.  Standards and conditions
``22307.  Definitions

``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 railroads.
Such grants shall be for rail transportation and ensuring
that track can be operated safely and efficiently, including
grants for rehabilitating, preserving, or improving track.
Grants may be provided under this chapter to a State or a
group of States for, or in connection with, 1 or more rail
capital projects that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
``(2) 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 on reasonable
assurances 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; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant allocations.--Of the total amount made
available for-the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula.
prescribed by the Secretary to weigh equally for each State--
``(i) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the State;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the State.
``(b) Federal Share.--The 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) Authorization of Appropriations.--Not-withstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.

``Sec. 22303. Purposes

``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its State
rail plan.

``Sec. 22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service.
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(4) A long-range rail investment program for current and
future freight and passenger infrastructure in the State that
meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
stake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(8) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-Range Service and Investment Program.--
``(1) Program content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for intercity passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the projects, and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made by non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime capacity,
congestion, or safety.

[[Page S1334]]

``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the
Secretary determines appropriate.

``Sec. 22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``Sec. 22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided
in whole or in part in a grant made under section 22301--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and

(2) shall he considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).

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.).

``Sec. 22307. Definitions

In this chapter:
``(1) Private benefit.--The term `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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.  3. GRANT PROGRAM FUNDING.

(a) In General.--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 adding at the end the following:
``(D) Rail Infrastructure Category.--The term `rail
infrastructure category' means discretionary appropriations
to the Secretary of Transportation for the provision of
grants to States for railroad infrastructure investment
activities subject to the obligation limitations on contract
authority provided under chapter 223 of title 49, United
States Code, or for which appropriations are provided in
accordance with authorizations contained in that division.''.
(b) Budget Authority; Outlays;--For purposes of section
251(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 901(b)):
(1) Budget Authority.--The budget authority for the rail
infrastructure category shall be--
(A) $300,000,000 for fiscal year 2005;
(B) $600,000,000 for fiscal year 2006;
(C) $900,000,000 for fiscal year 2007;
(D) $1,200,000,000 for fiscal year 2008;
(E) $1,500,000,000 for fiscal year 2009; and
(F) $1,500,000,000 for fiscal year 2010.
(2) Outlays.--Thc level of outlays for the rail
infrastructure category is--
(A) $60,000,000 for fiscal year 2005;
(B) $180,000,000 for fiscal year 2006;
(C) $360,000,000 for fiscal year 2007;
(D) $480,000,000 for fiscal year 2008,
(E) $900,000,000 for fiscal year 2009; and
(F) $1,140,000,000 for fiscal year 2010.
______

SA 2598. Mr. HOLLINGS 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:

Part   --. Railroad Track Modernization

SEC.  1. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC.  2. 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
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

``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 railroads. Such grants shall
be for rail transportation and ensuring that track can be
operated safely and efficiently, including grants for
rehabilitating, preserving, or improving track. Grants may be
provided under this chapter to a State or a group of States
for, or in connection with, 1 or more rail capital projects
that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
(2) 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 on reasonable
assurances 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; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant allocations.--Of the total amount made
available for the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula prescribed
by the Secretary to weigh equally for each State--
``(i) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the State;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the State.
``(b) Federal Share.--The 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) Authorization of Appropriations.--Notwithstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;

[[Page S1335]]

``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.

``Sec. 22303. Purposes

``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its State
rail plan.

``Sec. 22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service.
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and commnunity impacts.
``(4) A long-range rail investment program for current and
future freight and passenger infrastructure in the State that
meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
stake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(8) A statement that the State is in compliance, with the
requirements of section 22102.
``(b) Long-range Service and Investment program.--
''(1) ``Program content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for intercity passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made by non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime capacity,
congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that, the
Secretary determines appropriate.

``Sec. 22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``Sec. 22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided
in whole or in part in a grant made under section 22301--
``(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
``(2) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).

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.).

``Sec. 22307. Definitions

In this chapter:
``(1) Private benefit.--The term `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary, and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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 GRAFTS FOR RAILROAD TRACK...................22301''.....

SEC. __3. GRANT PROGRAM FUNDING.

(a) In General.--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 adding at the end the following:
``(D) Rail infrastructure category.--The term `rail
infrastructure category' means discretionary appropriations
to the Secretary of Transportation for the provision of
grants to States for railroad infrastructure investment
activities subject to the obligation limitations on contract
authority provided under chapter: 223 of title 49, United
States Code, or for which appropriations are provided in
accordance with authorizations contained in that division.''.
(b) Budget Authority; Outlays.--For purposes of section
251(c) of the Balanced budget and emergency Deficit Control
Act of 1985 (2 U.S.C. 901(b)):
(1) Budget authority.--The budget authority for the rail
infrastructure category shall be--
(A) $300,000,000 for fiscal year 2005;
(B) $600,000,000 for fiscal year 2006;
(C) $900,000,000 for fiscal year 2007;
(D) $1,200,000,000 for fiscal year 2008;
(E) $1,500,000,000 for fiscal year 2009; and
(F) $1,500,000,000 for fiscal year 2010.
(2) Outlays.--The level of outlays for the rail
infrastructure category is--
(A) $60,000,000 for fiscal year 2005;
(B) $180,000,000 for fiscal year 2006;
(C) $360,000,000 for fiscal year 2007;
(D) $480,000,000 for fiscal year 2008;
(E) $900,000,000 for fiscal year 2009; and
(F) $1,140,000,000 for fiscal year 2010.

SEC. __171. EXTENSION OF CUSTOMS USER FEES.

Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 5Fc(j)(3)) is amended
by striking ``March 31, 2004,'' and inserting ``March 31,
2014''.
______

SA 2599. Mr. HOLLINGS 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

[[Page S1336]]

was ordered to lie on the table; as follows:

Strike all after the first word and insert the following:

Part   --Rail Modernization

SEC.  1. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC.  2. 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
``32303. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

``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 railroads. Such grants shall
be for rail transportation and ensuring that track can be
operated safely and efficiently, including grants for
rehabilitating, preserving, or improving track. Grants may be
provided under this chapter to a State or a group of States
for, or in connection with, 1 or more rail capital projects
that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
``(2) 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 on reasonable
assurances 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; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant Allocations.--Of the total amount made
available for the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula prescribed
by the Secretary to weigh equally for each State--
``(1) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the State;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the State.
``(b) Federal Share.--The 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) Authorization of Appropriations.--Notwithstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.

``Sec. 22303. Purposes

``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its State
rail plan.

``Sec. 22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service.
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(4) A long-range rail investment program for current and
future freight and passenger infrastructure in the State that
meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
stake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(g) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-Range Service and Investment Program.--
``(1) Program content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for intercity passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made, by non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime capacity,
congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the
Secretary determines appropriate.

``22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided
in whole or in part in a grant made under section 22301--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
(2) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).

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

[[Page S1337]]

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.).

``22307. Definitions

In this chapter:
``(1) Private benefit.--The term `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall he determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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''.....

______

SA 2600. Mr. HOLLINGS 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:

Part  --Railroad Track Modernization

SEC.  1. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC.  2. 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
``22302.  State rail plans
``22303.  Purposes
``22304.  Content
``22305.  Approval
``22306.  Standards and conditions
``22307.  Definitions

``Sec. 122301. 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 railroads. Such grants shall
be for rail transportation and ensuring that track can be
operated safely and efficiently, including grants for
rehabilitating, preserving, or improving track. Grants may be
provided under this chapter to a State or a group of States
for, or in connection with, 1 or more rail capital projects
that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
``(2) 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 on reasonable
assurances 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; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant allocations.--Of the total amount made
available for the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula prescribed
by the Secretary to weigh equally for each State--
``(i) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the State;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the State.
``(b) Federal Share.--The 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) Authorization of Appropriations.--Notwithstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for re-approval by the
Secretary.

``Sec. 22303. Purposes

``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice, and opportunity for commitment and other
input to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its State
rail plan.

``Sec. 22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service.
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(4) A long-range rail investment program for current and
future freight, and passenger infrastructure in the State
that meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
stake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(8) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-Range Service and Investment Program.--
`` (1) Program content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for intercity passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such in project; and
``(B) a statement of the correlation between--
``(1) public funding contributions for the projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:

[[Page S1338]]

``(A) Contributions made by non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime capacity,
congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the
Secretary determines appropriate.

``Sec. 22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``Sec. 22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided
in whole or in part in a grant made under section 22301--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
(2) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).

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.).

``Sec. 22307. Definitions

In this chapter:
``(1) Private benefit.--The term `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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''.....

______

SA 2601. Mr. HOLLINGS 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:

Part   --Railroad Track Modernization

SEC. __1. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC. __2. 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
``22302. State rail plans
``22303. Purposes
``22304. Content
``22305. Approval
``22306. Standards and conditions
``22307. Definitions

``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 railroads. Such grants shall
be for rail transportation and ensuring that track can be
operated safely and efficiently, including grants for
rehabilitating, preserving, or improving track. Grants may be
provided under this chapter to a State or a group of States
for, or in connection with, 1 or more rail capital projects
that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
``(2) 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 on reasonable
assurances 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 fixture demand for rail services; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant allocations.--Of the total amount made
available for the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula prescribed
by the Secretary to weigh equally for each State--
``(i) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the State;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the State.
``(b) Federal Share.--The 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) Authorization of Appropriations.--Notwithstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.

``22303. Purposes

``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice and opportunity for comment and other input
to the public, rail carriers, commuter and transit
authorities operating in, or affected by

[[Page S1339]]

rail operations within the State, units of local government,
and other interested parties in the preparation and review of
its State rail plan.

``22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service.
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(4) A long-range rail investment program for current and
future freight and passenger infrastructure in the State that
meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
stake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(8) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-range Service and Investment Program.--
`` (1) Program content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for intercity passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made by non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime capacity,
congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the
Secretary determines appropriate.

``Sec. 22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``Sec. 22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided
in whole or in part in a grant made under section 22301--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
(2) shall be considered a carrier for purposes of the
Railway Labor Act. (43 U.S.C. 151 et seq.).

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.).

``Sec. 22307. Definitions

In this chapter:
``(1) Private benefit.--The term `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a, benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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''.....

______

SA 2602. Mr. HOLLINGS 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 1005, beginning with line 13, strike through line 9
on page 1020 and insert the following:

SUBTITLE F--AMTRAK REAUTHORIZATION

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 and capital expenses.''.
______

SA 2603. Mr. HOLLINGS 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:

Part  --Rail Modernization

SEC.  I. SHORT TITLE.

This part may be cited as the ``Railroad Track
Modernization Act of 2004''.

SEC.  2. 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
``22302  State rail plans
``22303  Purposes
``22304  Content
``22305  Approval
``22306  Standards and conditions
``22307  Definitions

``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 railroads.
Such grants shall be for rail transportation and ensuring
that track can be operated safely and efficiently, including
grants for rehabilitating, preserving, or improving track.
Grants may be provided under this chapter to a State or a
group of States for, or in connection with, 1 or more rail
capital projects that--
``(A) are listed in a State rail plan approved for such
State under chapter 225 of this title; and
``(B) as determined by the Secretary, would primarily
benefit intercity passenger rail infrastructure or services
or freight rail transportation infrastructure or services and
provide significant public benefits.
``(2) Regulations.--

[[Page S1340]]

``(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 on reasonable
assurances 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; and
``(iii) ensure that projects are part of a State rail plan.
``(C) Grant Allocations.--Of the total amount made
available for the program, 50 percent shall be awarded on a
discretionary basis for passenger rail projects, and the
remaining 50 percent shall be apportioned to States to fund
freight rail projects in accordance with a formula prescribed
by the Secretary to weigh equally for each State--
``(i) the number of rail miles in active use in the State;
``(ii) the number of rail cars loaded in the State;
``(iii) the number of rail cars unloaded in the State; and
``(iv) the number of railroad and public road grade
crossings in the State.
``(b) Federal Share.--The 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) Authorization of Appropriations.--Notwithstanding
section 4635 of the Railroad Track Modernization Act of 2004,
there are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of the fiscal years
2005, 2006, 2007, 2008, 2009, 2010 to carry out this section.

``Sec. 22302. State rail plans

``(a) In General.--Each State may prepare and maintain a
State rail plan in accordance with the provisions of this
chapter.
``(b) Requirements.--For the preparation and periodic
revision of a State rail plan, a State shall--
``(1) establish or designate a State rail transportation
authority to prepare, maintain, coordinate, and administer
the plan;
``(2) establish or designate a State rail plan approval
authority to approve the plan;
``(3) submit the State's approved plan to the Secretary of
Transportation for review; and
``(4) revise and resubmit a State-approved plan no less
frequently than once every 5 years for reapproval by the
Secretary.

``Sec. 22303. Purposes

``(a) Purposes.--The purposes of a State rail plan are as
follows:
``(1) To set forth State policy involving freight and
passenger rail transportation, including commuter rail
operations, in the State.
``(2) To establish the period covered by the State rail
plan.
``(3) To present priorities and strategies to enhance rail
service in the State that benefits the public.
``(4) To serve as the basis for Federal and State rail
investments within the State.
``(b) Coordination.--A State rail plan shall be coordinated
with other State transportation planning goals and programs
and set forth rail transportation's role within the State
transportation system. A State shall provide adequate and
reasonable notice and opportunity for comment and other
input to the public, rail carriers, commuter and transit
authorities operating in, or affected by rail operations
within the State, units of local government, and other
interested parties in the preparation and review of its
State rail plan.

``Sec. 22304. Content

``(a) In General.--Each State rail plan shall contain the
following:
``(1) An inventory of the existing overall rail
transportation system and rail services and facilities within
the State and an analysis of the role of rail transportation
within the State's surface transportation system.
``(2) A comprehensive review of all rail lines within the
State, including proposed high speed rail corridors and
significant rail line segments not currently in service.
``(3) A general analysis of rail's transportation,
economic, and environmental impacts in the State, including
congestion mitigation, trade and economic development, air
quality, land-use, energy-use, and community impacts.
``(4) A long-range rail investment program for current and
future freight and passenger infrastructure in the State that
meets the requirements of subsection (b).
``(5) A statement of public financing issues for rail
projects in the State.
``(6) An identification of rail infrastructure issues
within the State that reflects consultation with all relevant
stake holders.
``(7) A review of major passenger and freight intermodal
rail connections and facilities within the State, including
seaports.
``(8) A statement that the State is in compliance with the
requirements of section 22102.
``(b) Long-Range Service and Investment Program.--
``(1) Program content.--A long-range rail investment
program included in a State rail plan under subsection (a)(4)
shall include the following matters:
``(A) Two lists for rail capital projects, 1 for freight
rail capital projects and 1 for intercity passenger rail
capital projects.
``(B) A detailed funding plan for the projects.
``(2) Project list content.--The list of freight and
intercity passenger rail capital projects shall contain--
``(A) a description of the anticipated public and private
benefits of each such project; and
``(B) a statement of the correlation between--
``(i) public funding contributions for the projects; and
``(ii) the public benefits.
``(3) Considerations for project list.--In preparing the
list of freight and intercity passenger rail capital
projects, a State rail transportation authority shall take
into consideration the following matters:
``(A) Contributions made by non-Federal and non-State
sources through user fees, matching funds, or other private
capital involvement.
``(B) Rail capacity and congestion effects.
``(C) Effects to highway, aviation, and maritime capacity,
congestion, or safety.
``(D) Regional balance.
``(E) Environmental impact.
``(F) Economic and employment impacts.
``(G) Projected ridership and other service measures for
passenger rail projects.
``(c) Waiver.--The Secretary may waive any requirement of
subsection (a) upon application under circumstances that the
Secretary determines appropriate.

``Sec. 22305. Approval

``(a) Criteria.--The Secretary may approve a State rail
plan for the purposes of this chapter if--
``(1) the plan meets all of the requirements applicable to
State plans under this chapter;
``(2) for each ready-to-commence project listed on the
ranked list of freight and intercity passenger rail capital
projects under the plan--
``(A) the project meets all safety and environmental
requirements including those prescribed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.)
that are applicable to the project under law; and
``(B) the State has entered into an agreement with any
owner of rail infrastructure or right of way directly
affected by the project that provides for the State to
proceed with the project; and
``(3) the content of the plan is coordinated with State
transportation plans developed pursuant to the requirements
of section 135 of title 23.

``Sec. 22306. Standards and conditions

``A person that conducts rail operations over rail
infrastructure constructed or improved with funding provided
in whole or in part in a grant made under section 22301--
(1) shall be considered an employer for purposes of the
Railroad Retirement Act of 1974 (45 U.S.C. 231 et seq.); and
(2) shall be considered a carrier for purposes of the
Railway Labor Act (43 U.S.C. 151 et seq.).

``Sec. 22307. Definitions

In this chapter:
``(1) Private benefit.--The term `private benefit'--
``(A) means a benefit accrued to a person or private
entity, other than the National Railroad Passenger
Corporation, that directly improves the economic and
competitive condition of that person or entity through
improved assets, cost reductions, service improvements, or
any other means as defined by the Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.
``(2) Public benefit.--The term `public benefit'--
``(A) means a benefit accrued to the public in the form of
enhanced mobility of people or goods, environmental
protection or enhancement, congestion mitigation, enhanced
trade and economic development, improved air quality or land
use, more efficient energy use, enhanced public safety or
security, reduction of public expenditures due to improved
transportation efficiency or infrastructure preservation, and
any other positive community effects as defined by the
Secretary; and
``(B) shall be determined on a project-by-project basis,
based upon an agreement between the parties.''.
(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''.....

______

SA 2604. Mr. FEINGOLD 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. 1106. FUNDING FORMULA.

Notwithstanding any other provision of this Act, all
transportation funding shall be determined using the formula
under the Transportation Equity Act for the 21st Century
(Public Law 105-178) as in effect before the date of
enactment of this Act.
______

SA 2605. Mr. McCAIN submitted an amendment intended to be proposed to

[[Page S1341]]

amendment SA 2388 proposed by Mrs. Hutchison (for herself, Mr. Kyl, Mr.
Levin, Mr. Graham of Florida, Mr. McCain, Ms. Stabenow, and Mrs.
Feinstein) to the 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 end of the amendment add the following:
``(e) Funding Cap From Highway Trust Fund.--Prior to making
any apportionments or allocations under Chapter 1 of U.S.C.
23 for fiscal year 2009, the Secretary shall compare the sum
of all apportionments and allocations for fiscal years 2004
through 2008 plus the projected apportionments and
allocations for fiscal year 2009 to the funding cap of
$255,000,000,000. If the total sum of such apportionments and
allocations exceeds the funding cap of $255,000,000,000, the
Secretary shall proportionally reduce all apportionments and
allocations for fiscal year 2009 so the total sum equals
$255,000,000,000.
______

SA 2606. Mr. BURNS 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 end of the amendment, add the following:

SEC. __. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

Section 10101 of title 49, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before ``In
regulating''; and
(2) by adding at the end the following:
``(b) Primary Objectives.--The primary objectives of the
rail transportation policy of the United States are as
follows:
``(1) To promote effective competition among rail carriers
at origins and destinations.
``(2) To maintain reasonable rates in the absence of
effective competition.
``(3) To maintain consistent and efficient rail
transportation service for shippers, including the timely
provision of rail cars requested by shippers.
``(4) To ensure that smaller carload and intermodal
shippers are not precluded from accessing rail systems due to
volume requirements.''.
______

SA 2607. Mr. BURNS 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 end of the amendment, add the following:

SEC. __. ARBITRATION OF CERTAIN RAIL RATE, SERVICE, AND OTHER
DISPUTES.

(a) In General.--
(1) Authority.--Chapter 117 of title 49, United States
Code, is amended by adding after section 11707 the following
new section:

``Sec. 11708. Arbitration of certain rail rate, service, and
other disputes

``(a) Election of Arbitration.--A dispute described in
subsection (b) shall be submitted for resolution by
arbitration upon the election of any party to the dispute
that is not a rail carrier.
``(b) Covered Disputes.--(1) Except as provided in
paragraph (2), subsection (a) applies to any dispute between
a party described in subsection (a) and a rail carrier that--
``(A) arises under section 10701(c), 10701(d), 10702,
10704(a)(1), 10707, 10741, 10745, 10746, 11101(a), 11102,
11121, 11122, or 11706 of this title; and
``(B) involves--
``(i) the payment of money;
``(ii) a rate or charge imposed by the rail carrier; or
``(iii) transportation or other service by the rail
carrier.
``(2) Subsection (a) does not apply to a dispute if the
resolution of the dispute would necessarily involve the
promulgation of regulations generally applicable to all rail
carriers.
``(c) Arbitration Procedures.--The Secretary of
Transportation shall prescribe in regulations the procedures
for the resolution of disputes submitted for arbitration
under subsection (a). The regulations shall include the
following:
``(1) Procedures, including time limits, for the selection
of an arbitrator or panel of arbitrators for a dispute from
among arbitrators listed on the roster of arbitrators
established and maintained by the Secretary under subsection
(d)(1).
``(2) Policies, requirements, and procedures for the
compensation of each arbitrator for a dispute to be paid by
the parties to the dispute.
``(3) Procedures for expedited arbitration of a dispute,
including procedures for discovery authorized in the exercise
of discretion by the arbitrator or panel of arbitrators.
``(d) Selection of Arbitrators.--(1) The Secretary of
Transportation shall establish, maintain, and revise as
necessary a roster of arbitrators who--
``(A) are experienced in transportation or economic issues
within the jurisdiction of the Board or issues similar to
those issues;
``(B) satisfy requirements for neutrality and other
qualification requirements prescribed by the Secretary;
``(C) consent to serve as arbitrators under this section;
and
``(D) are not officers or employees of the United States.
``(2) For a dispute involving an amount not in excess of
$1,000,000, the regulations under subsection (c) shall
provide for arbitration by a single arbitrator who--
``(A) is selected by the parties to the dispute; or
``(B) if the parties cannot agree, is selected by the
Secretary from among the arbitrators listed on the roster of
arbitrators under paragraph (1).
``(3)(A) For a dispute involving an amount in excess of
$1,000,000, the regulations under subsection (c) shall
provide for arbitration by a panel of three arbitrators
selected as follows:
``(i) One arbitrator selected by the party electing the
arbitration.
``(ii) One arbitrator selected by the rail carrier or all
of the rail carriers who are parties to the dispute, as the
case may be.
``(iii) One arbitrator selected by the two arbitrators
selected under clauses (i) and (ii).
``(B) If a selection of an arbitrator is not made under
clause (ii) or (iii) of subparagraph (A) within the time
limits prescribed in the regulations, then the Secretary
shall select the arbitrator from among the arbitrators listed
on the roster of arbitrators under paragraph (1).
``(e) Disputes Over Rates or Charges.--(1) The requirements
of this subsection apply to a dispute submitted under this
section concerning a rate or charge imposed by a rail
carrier.
``(2)(A) Subject to subparagraph (B), the decision of an
arbitrator or panel of arbitrators in a dispute on an issue
described in paragraph (1) shall be the final offer of one of
the parties to the dispute.
``(B) A decision under subparagraph (A) may not provide for
a rate for transportation by a rail carrier that would result
in a revenue-variable cost percentage for such transportation
that is less than 180 percent, as determined under standards
applied in the administration of section 10707(d) of this
title.
``(3) If the party electing arbitration of a dispute
described in paragraph (1) seeks compensation for damages
incurred by the party as a result of a specific rate or
charge imposed by a rail carrier for the transportation of
items for the party and the party alleges an amount of
damages that does not exceed $500,000 for any year as a
result of the imposition of the specific rate or charge, the
arbitrator, in making a decision on the dispute, shall
consider the rates or charges, respectively, that are imposed
by rail carriers for the transportation of similar items
under similar circumstances in rail transportation markets
where there is effective competition, as determined under
standards applied by the Board in the administration of
section 10707 of this title.
``(f) Time for Issuance of Arbitration Decision.--
Notwithstanding any other provision of this subtitle limiting
the time for the taking of an action under this subtitle, the
arbitrator or panel of arbitrators for a dispute submitted
for resolution under this section shall issue a final
decision on the dispute within the maximum period after the
date on which the arbitrator or panel is selected to resolve
the dispute under this section, as follows:
``(1) In the case of a dispute involving $1,000,000 or
less, 120 days.
``(2) In the case of a dispute involving more than
$1,000,000, 180 days.
``(g) Authorized Relief.--A decision of an arbitrator or
panel of arbitrators under this section shall grant relief in
either or both of the following forms:
``(1) Monetary damages, to the extent authorized to be
provided by the Board in such a dispute under this subtitle.
``(2) An order that requires specific performance under any
applicable law, including any law limiting rates to
reasonable rates, for any period not in excess of two years
beginning on the date of the decision.
``(h) Judicial Confirmation and Review.--The following
provisions of title 9 shall apply to an arbitration decision
issued in a dispute under this section:
``(1) Section 9 (relating to confirmation of an award in an
arbitration decision), which shall be applied as if the
parties had entered into an agreement under title 9 to submit
the dispute to the arbitration and had provided in that
agreement for a judgment of an unspecified court to be
entered on the award made pursuant to the arbitration.
``(2) Section 10 (relating to judicial vacation of an award
in an arbitration decision).''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 11707 the following:

``11708. Arbitration of certain rail rate, service, and other
disputes.''.
(b) Time for Implementing Certain Requirements.--Not later
than 180 days after the date of the enactment of this Act,
the Secretary shall promulgate regulations, prescribe a
roster of arbitrators, and complete any other action that is
necessary for the implementation of section 11708 of title
49, United States Code (as added by subsection (a)).

[[Page S1342]]

______

SA 2608. Mr. BURNS (for himself, Mr. Dorgan, and Mr. Rockefeller)
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 end of the amendment, add the following:

SEC. __. AREAS OF INADEQUATE RAIL COMPETITION.

(a) Designation and Remedies.--
(1) In general.--Chapter 105 of title 49, United States
Code, is amended by adding at the end the following new
section:

``Sec. 10503. Areas of inadequate rail competition

``(a) Designation.--The Board shall designate any State or
part of a State as an area of inadequate rail competition
after finding either of the grounds set forth in subsection
(b). An area of inadequate rail competition may be limited to
be composed of the facilities of a group of shippers or
receivers of one or more specific commodities within a
geographic area.
``(b) Grounds for Designation.--The grounds for designating
a State or part of a State as an area of inadequate rail
competition are as follows:
``(1) The State or part of a State encompasses a
significant number of rail shipping origins and destinations
that are served exclusively by only one Class I railroad.
``(2) A significant number of the persons that ship by rail
or receive rail shipments in the State or part of a State--
``(A) usually find it necessary to pay rates for the rail
shipments that exceed the rates necessary to yield recovery
by the rail carrier of 180 percent of revenue-variable costs,
as determined under standards applied in the administration
of section 10707(d) of this title; or
``(B) have experienced competitive disadvantage in the
marketplace or other economic adversity because of high cost
or poor quality of rail service in the State or part of a
State, as the case may be.
``(c) Authorized Petitioners.--The following persons are
authorized to petition the Board for a designation of a State
or part of a State as an area of inadequate rail competition:
``(1) The chief executive of the State or another official
of the State who is designated to do so by the chief
executive or is authorized to do so under the laws of that
State.
``(2) A Member of Congress from the State.
``(3) As provided in section 10504 of this title, the Rail
Customer Advocate of the Department of Agriculture and any
State official referred to in subsection (a)(2) of such
section.
``(4) A person that ships by rail or receives rail
shipments in that State or part of a State.
``(d) Actions.--Upon designating a State or a part of a
State as an area of inadequate rail competition, the Board
shall attempt to resolve, within 60 days after the date of
the designation, the conditions described in subsection (b)
that justify the designation. In addition to providing other
remedies authorized by law, the Board may, when requested in
a petition, order any of the following actions:
``(1) Provision of reciprocal switching and access to
tracks of another rail carrier beyond the limits specified in
section 11102(a) of this title.
``(2) Haulage transportation of railroad cars by a rail
carrier to or from facilities that such carrier alone
physically serves on behalf of another rail carrier, for a
fee prescribed by the Board.
``(3) Regarding rates on any rail segments within or
connected to the area of inadequate rail competition on which
rail service is susceptible to delay or interruption due to
traffic congestion--
``(A) expedited review of the reasonableness of the rates
under section 10701(d)(3) of this title; or
``(B) expedited final offer arbitration of the
reasonableness of the rates under section 11708(e) of this
title.
``(4) Expedited review, under section 10701(d)(3) of this
title, of the reasonableness of--
``(A) increases in rates or other charges; and
``(B) new transportation service tariffs.
``(5) Expedited review of whether a rate violates the
prohibition against discriminatory rates contained in section
10741 of this title, without regard to subsection (b)(2) of
such section.
``(e) Limitations and Conditions Applicable to Specific
Remedies.--(1) In the case of a petition for an order for
reciprocal switching or access to tracks of another rail
carrier under subsection (d)(1), the Board may not require
that there be evidence of anticompetitive conduct by a rail
carrier as a prerequisite for ordering such action.
``(2) In the case of a petition for expedited review of
rates or final offer arbitration of rates under subsection
(d)(3)--
``(A) the Board or arbitrator or panel of arbitrators, as
the case may be, shall accord, with respect to rail
transportation of a specific commodity, significant
persuasive weight to evidence comparing--
``(i) rates charged for rail transportation of various
quantities of that commodity within the area of inadequate
rail competition; and
``(ii) rates charged for rail transportation of similar
quantities of that commodity or any similar commodity or
commodities in areas where there is competition among rail
carriers for shipments of such commodity or commodities; and
``(B) the Board or arbitrator or panel of arbitrators, as
the case may be, shall not apply the stand-alone cost test or
any other test that the Board applies in determining the
reasonableness of rates reviewed in cases not involving rail
service in an area of inadequate rail competition.
``(3) In the case of a petition for expedited review, under
subsection (d)(4), of an increase of a rate or other charge
or the imposition of a new service tariff by a rail carrier--
``(A) the rail carrier shall have the burden of proving the
reasonableness of the increase or tariff charge; and
``(B) the Board shall consider any evidence comparing--
``(i) the increased rate or other charge, or the tariff
charge, as the case may be; and
``(ii) corresponding rates, other charges, or new service
tariff charges, respectively, imposed for rail transportation
in areas where there is a significant level of competition
among the rail carriers.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

10503. Areas of inadequate rail competition.''.
(b) Study and Report on Areas of Inadequate Rail
Competition.--
(1) Study required.--The Rail Customer Advocate of the
Department of Agriculture shall carry out a study of the
process provided under section 10503 of title 49, United
States Code (as added by subsection (a)), for challenging and
remedying conditions described in subsection (b) of such
section in States and parts of States designated under such
section as areas of inadequate rail competition insofar as
such conditions adversely affect rail shippers of
agricultural or forestry commodities and products.
(2) Findings on effectiveness of process.--The Rail
Customer Advocate shall make findings, on the basis of the
study under paragraph (1), regarding the effectiveness of the
process for remedying the conditions studied, particularly in
the case of customers that ship agricultural or forestry
commodities and products by rail in annual volumes of 1,500
rail cars or less.
(3) Report.--Not later than 3 years after the date of the
enactment of this Act, the Rail Customer Advocate shall
submit to Congress a report on the results of the study under
paragraph (1), including the findings required under
paragraph (2).
______

SA 2609. Mr. BURNS (for himself, Mr. Dorgan, and Mr. Rockefeller)
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 end of the amendment, add the following:

SEC. ____. PERIODIC STUDY OF COMPETITION AMONG RAIL CARRIERS.

(a) Requirement for Study.--
(1) Triennial study.--Chapter 101 of title 49, United
States Code, is amended by adding at the end the following
new section:

``Sec. 10103. Periodic study of rail carrier competition and
processes of the Board

``(a) Requirement for Study.--Every three years, the
Secretary of Transportation shall conduct a comprehensive
study of rail carrier competition and the processes of the
Board. The study shall include an assessment of the
following:
``(1) The availability of effective competitive options
among and between rail carriers.
``(2) The effectiveness of the processes of the Surface
Transportation Board, including the process used for
determining the reasonableness of rates of rail carriers.
``(3) The availability to rail users of effective
regulatory dispute resolution options.
``(b) Study To Include Assessment of Rail-to-Rail
Competition.--In carrying out the study, the Board shall
assess the overall level of rail-to-rail competition in the
rail carrier industry in the United States. In making the
assessment, the Board shall consider the views of users of
the services of rail carriers.
``(c) Report to Congress.--Not later than November 15 of
each year in which a study is conducted under subsection (a),
the Secretary shall submit a report on the results of the
study to Congress. The report shall include the following:
``(1) The Board's assessment of the overall level of rail-
to-rail competition in the rail carrier industry in the
United States.
``(2) The markets that have limited rail-to-rail
competition.
``(3) Any recommendations for enhancing rail-to-rail
competition, particularly in markets identified as having
limited rail-to-rail competition.
``(4) An assessment of the Board's performance of its
purpose to promote and enhance competition among and between
railroads by--
``(A) addressing complaints regarding rates, charges, and
service; and
``(B) promulgating regulations of general applicability or
taking other actions.
``(5) Any recommendations for modification of any of the
decisions of the Board (or

[[Page S1343]]

decisions of the former Interstate Commerce Commission
continuing in effect) or for modification of the general
authority or jurisdiction of the Board.
``(6) Any other findings, analyses, assessments, and
recommendations that result from the study.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following:

``10103. Periodic study of rail carrier competition and processes of
the Board.''.
(b) Time for First Study.--The first study under section
10103 of title 49, United States Code (as added by subsection
(a)), shall be carried out not later than two years after the
date of the enactment of this Act.
______

SA 2610. Mr. SHELBY 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. __. DELTA REGION TRANSPORTATION DEVELOPMENT 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. 178. Delta Region Transportation Development Program

``(a) In General.--The Secretary shall carry out a program
to--
``(1) support and encourage multistate transportation
planning and corridor development;
``(2) provide for transportation project development;
``(3) facilitate transportation decisionmaking; and
``(4) support transportation construction.
``(b) Eligible Recipients.--A State transportation
department and metropolitan planning organization may receive
and administer funds provided under the program.
``(c) Eligible Activities.--The Secretary shall make
allocations under the program for multistate highway and
transit planning, development, and construction projects.
``(d) Other Provisions Regarding Eligibility.--All
activities funded under this program shall be consistent with
the continuing, cooperative, and comprehensive planning
processes required by section 134 and 135.
``(e) Selection Criteria.--The Secretary shall select
projects to be carried out under the program based on--
``(1) whether the project is located--
``(A) in an area that is part of the Delta Regional
Authority; and
``(B) on the Federal-aid system;
``(2) endorsement of the project by the State department of
transportation; and
``(3) evidence of the ability to complete the project.
``(f) Program Priorities.--In administering the program,
the Secretary shall--
``(1) encourage State and local officials to work together
to develop plans for multimodal and multijurisdictional
transportation decisionmaking; and
``(2) give priority to projects that emphasize multimodal
planning, including planning for operational improvements
that--
``(A) increase the mobility of people and goods;
``(B) improve the safety of the transportation system with
respect to catastrophic--
``(i) natural disasters; or
``(ii) disasters caused by human activity; and
``(C) contribute to the economic vitality of the area in
which the project is being carried out.
``(g) Federal Share.--Amounts provided by the Delta
Regional Authority to carry out a project under this section
shall be applied to the non-Federal share required by section
120.
``(h) Availability of Funds.--Amounts made available to
carry out this section shall remain available until
expended.''.
(b) Conforming Amendment.--The analysis for chapter I of
title 23, United States Code (as amended by section 1841(b)),
is amended by adding at the end the following:

``178. Delta Regional Transportation Development Program.''.''

On page 678, after line 5, insert the following:
``(16) Delta Regional Transportation Development Program.--
For the Delta Region transportation development program,
$400,000,000 for each of fiscal years 2004 through 2009.''
______

SA 2611. Mr. SHELBY 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.   . DELTA REGION TRANSPORTATION DEVELOPMENT 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. 178. Delta Region Transportation Development Program

``(a) In General.--The Secretary shall carry out a program
to--
``(1) support and encourage multistate transportation
planning and corridor development;
``(2) provide for transportation project development;
``(3) facilitate transportation decisionmaking; and
``(4) support transportation construction.
``(b) Eligible Recipients.--A State transportation
department and metropolitan planning organization may receive
and administer funds provided under the program.
``(c) Eligible Activities.--The Secretary shall make
allocations under the program for multistate highway and
transit planning, development, and construction projects.
``(d) Other Provisions Regarding Eligibility.--All
activities funded under this program shall be consistent with
the continuing, cooperative, and comprehensive planning
processes required by section 134 and 135.
``(e) Selection Criteria.--The Secretary shall select
projects to be carried out under the program based on--
``(1) whether the project is located--
``(A) in an area that is part of the Delta Regional
Authority; and
``(B) on the Federal-aid system;
``(2) endorsement of the project by the State department of
transportation; and
``(3) evidence of the ability to complete the project.
``(f) Program Priorities.--In administering the program,
the Secretary shall--
``(1) encourage State and local officials to work together
to develop plans for multimodal and multijurisdictional
transportation decisionmaking; and
``(2) give priority to projects that emphasize multimodal
planning, including planning for operational improvements
that--
``(A) increase the mobility of people and goods;
``(B) improve the safety of the transportation system with
respect to catastrophic--
``(i) natural disasters; or
``(ii) disasters caused by human activity; and
``(C) contribute to the economic vitality of the area in
which the project is being carried out.
``(g) Federal Share.--Amounts provided by the Delta
Regional Authority to carry out a project under this section
shall be applied to the non-Federal share required by section
120.
``(h) Availability of Funds.--Amounts made available to
carry out this section shall remain available until
expended.''.
(b) Conforming Amendment.--The analysis for chapter I of
title 23, United States Code (as amended by section 1841
(b)), is amended by adding at the end the following:

``178. Delta Region Transportation Development Program.''.''

On page 677, line 11, strike ``$2,500,000,000'' and insert
``$1,300,000,000''.
On page 677, line 13, strike ``$2,000,000,000'' and insert
``$1,200,000,000''.
On page 677, line 15, strike ``$500,000,000'' and insert
``100,000,000''.
On page 678, after line 5, insert the following:
``(16) Delta Region Transportation Development Program.--
For the Delta Region transportation development program,
$400,000,000 for each of fiscal years 2004 through 2009.''
______

SA 2612. Mr. SHELBY 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:
``(3) Cost To Complete Study.--The Appalachian Regional
Commission shall prepare an estimate of the cost to construct
highways and access roads for the Appalachian development
highway system every 24 months.''
______

SA 2613. Mr. SHELBY 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:
On page 521, strike line 18 and all that follows through
the matter following line 18 on page 720, and insert the
following:

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,

[[Page S1344]]

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, which are
coordinated with other modes of transportation, 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 and intercity rail 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;
``(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 bus or 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 and programs.--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 and programs for metropolitan planning areas of the
State in which it is located.
``(2) Contents.--The plans and programs 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 and programs 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

[[Page S1345]]

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 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 (including
the protection of habitat, water quality, and agricultural
and forest land, while minimizing invasive species),
promoting energy conservation, and promoting consistency
between transportation improvements and State and local land
use planning and economic development patterns (including
minimizing adverse health effects from mobile source air
pollution and promoting the linkage of the transportation and
development goals of the metropolitan area);
``(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 and efficient use of the
existing transportation system, including services provided
by public and private operators.
``(2) Selection of factors.--After soliciting and
considering any relevant public

[[Page S1346]]

comments, the metropolitan planning organization shall
determine which of the factors described in paragraph (1) are
most appropriate to consider.
``(3) 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 a transportation plan for its metropolitan
planning area in accordance with this subsection, and update
such plan--
``(i) not less frequently than once every 4 years 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 as attainment, in
accordance with paragraph (3) of such section, with a
maintenance plan under section 175A of the Clean Air Act (42
U.S.C. 7505a); or
``(ii) not less frequently than once every 5 years in areas
designated as attainment, as defined in section 107(d) of the
Clean Air Act.
``(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) Mitigation activities.--
``(A) In general.--A transportation plan under this
subsection 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.
``(B) Consultation.--The discussion described in
subparagraph (A) shall be developed in consultation with
Federal and State tribal wildlife, land management, and
regulatory agencies.
``(3) 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, transit, multimodal and intermodal
facilities, intermodal connectors, and other relevant
facilities identified by the metropolitan planning
organization, which 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.
``(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;
``(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.
``(5) 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.
``(6) Approval of the transportation plan.--Each
transportation plan prepared by a metropolitan planning
organization shall be--
``(A) approved by the metropolitan planning organization;
and
``(B) submitted to the Governor for information purposes at
such time and in such manner as the Secretary may reasonably
require.
``(i) Participation by Interested Parties.--
``(1) Development of participation plan.--Not less
frequently than every 4 years, each metropolitan planning
organization shall develop and adopt a plan for participation
in the process for developing the metropolitan transportation
plan and programs by--
``(A) citizens;
``(B) affected public agencies;
``(C) representatives of public transportation employees;
``(D) freight shippers;
``(E) providers of freight transportation services;
``(F) private providers of transportation;
``(G) representatives of users of public transit;
``(H) representatives of users of pedestrian walkways and
bicycle transportation facilities; and
``(I) other interested parties.
``(2) Contents of participation plan.--The participation
plan--
``(A) shall be developed in a manner the Secretary
determines to be appropriate;
``(B) shall be developed in consultation with all
interested parties; and
``(C) 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.
``(3) Methods.--The participation plan shall provide that
the metropolitan planning organization shall, to the maximum
extent practicable--
``(A) hold any public meetings at convenient and accessible
locations and times;
``(B) employ visualization techniques to describe plans;
and
``(C) make public information available in electronically
accessible format and means, such as the World Wide Web.
``(4) Certification.--Before the metropolitan planning
organizations approve a transportation plan or program, each
metropolitan planning organization shall certify that it has
complied with the requirements of the participation plan it
has adopted.
``(j) Transportation Improvement Program.--
``(1) Development and update.--
``(A) In general.--In cooperation with the State and
affected operators of public transportation, a metropolitan
planning organization designated for a metropolitan planning
area shall develop a transportation improvement program for
the area.
``(B) Participation.--In developing the transportation
improvement program, the metropolitan planning organization,
in cooperation with the Governor and any affected operator of
public transportation, shall provide an opportunity for
participation by interested parties in the development of the
program, in accordance with subsection (i).
``(C) Updates.--The transportation improvement program
shall be updated not less than once every 4 years and shall
be approved by the metropolitan planning organization and the
Governor.
``(D) Funding estimate.--In developing the transportation
improvement program, the metropolitan planning organization,
operators of public transportation, and the State shall
cooperatively develop estimates of funds that are reasonably
expected to be available to support program implementation.
``(E) Project advancement.--Projects listed in the
transportation improvement program may be selected for
advancement consistent with the project selection
requirements.
``(F) Major amendments.--Major amendments to the list
described in subparagraph (E), 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.
``(2) Included projects.--
``(A) Projects under chapter 1 of title 23 and this
chapter.--A transportation improvement program 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 improvement program.

[[Page S1347]]

``(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 improvement program.
``(3) Selection of projects.--
``(A) In general.--Except as otherwise provided under
subsection (k)(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, a project may be advanced from
the transportation improvement program in place of another
project in the same transportation improvement program
without the approval of the Secretary.
``(4) Publication requirements.--
``(A) Publication of transportation improvement program.--A
transportation improvement program involving Federal
participation shall be published or otherwise made readily
available by the metropolitan planning organization for
public review, including, to the maximum extent practicable,
in electronically accessible formats and means, such as the
World Wide Web.
``(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
4 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 transportation improvement program.
``(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.
``(k) 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 and programs.--Transportation
plans and programs 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 improvement program 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 improvement
program 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 4 years in nonattainment and
maintenance areas (as defined under the Clean Air Act) and
not less frequently than once every 5 years in attainment
areas (as defined under such Act), 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 and a transportation
improvement program for the metropolitan planning area have
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.
``(l) 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 and
transportation improvement program 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.).
``(m) 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).
``(n) 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.
``(o) 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.
``(p) Continuation of Current Review Practice.--Any
decision by the Secretary concerning a plan or program
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.--
``(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

[[Page S1348]]

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 (including the
protection of habitat, water quality, and agricultural and
forest land, while minimizing invasive species), 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 (including minimizing adverse health effects
from mobile source air pollution and promoting the linkage of
the transportation and development goals of the State);
``(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 and efficient use of the
existing transportation system.
``(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.
``(3) Mitigation activities.--
``(A) In general.--A transportation plan under this
subsection 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.
``(B) Consultation.--The discussion described in
subparagraph (A) shall be developed in consultation with
Federal and State tribal wildlife, land management, and
regulatory agencies.
``(4) Failure to consider factors.--The failure to consider
any factor described 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.
``(D) Consultation, comparison, and consideration.--
``(i) In general.--The 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.

``(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) 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.
``(4) Mitigation activities.--
``(A) In general.--A 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 described in
subparagraph (A) shall be developed in consultation with
Federal and State tribal wildlife, land management, and
regulatory agencies.
``(5) Transportation strategies.--A Plan shall identify
transportation strategies necessary to efficiently serve the
mobility needs of people.
``(6) 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.
``(7) 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 (6)(D).
``(8) 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.
``(9) Publication of long-range transportation plans.--Each
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.
``(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.

[[Page S1349]]

``(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 4
years, identify projects by year, be fiscally constrained by
year, and be updated not less than once every 4 years.
``(ii) Publication.--An annual listing of projects for
which funds have been obligated in the preceding 4 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 each
metropolitan transportation improvement program.
``(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 approved metropolitan
transportation improvement program; 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
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 4 years.
``(7) Planning finding.--Not less frequently than once
every 4 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

[[Page S1350]]

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 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

[[Page S1351]]

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--
``(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 or subrecipient 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 or subrecipient 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.
``(D) Statewide transit provider grantees.--A statewide
transit provider that receives a grant under this section
shall be subject to the terms, conditions, requirements, and
provisions of this section or section 5311, consistent with
the scope and purpose of the grant and the location of the
project.''; 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 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 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 and positive impacts on
the capacity, utilization, or longevity of other surface
transportation assets and facilities;

[[Page S1352]]

``(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 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--

[[Page S1353]]

``(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.
``(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

[[Page S1354]]

``(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).
``(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.''.
(l) Restrictions on Use of Bus Category Funds for Fixed
Guideway Projects.--
(1) In general.--Funds provided to grantees under the bus
and bus facility category for fixed guideway ferry and
gondola projects in the Department of Transportation and
Related Agencies Appropriations Acts for any of fiscal years
1998 through 2004, or accompanying committee reports, that
remain available and unobligated may be used for fixed
guideway projects under section 5309 of title 49, United
States Code.
(2) New funds.--Grantees who received funds under paragraph
(1) may use new Federal transit assistance provided under the
bus and bus facility category for fixed guideway projects
under such section 5309.

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

[[Page S1355]]

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 or
Indian tribe 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 or intercity bus
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; and
``(ii) the program provides the maximum feasible
coordination of public transportation service assisted under
this section with transportation service assisted by other
Federal sources.'';
(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;
``(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) Public transportation on indian reservations.--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, the following amounts shall be apportioned for grants
to Indian tribes for any purpose eligible under this section,
under such terms and conditions as may be established by the
Secretary:
``(A) $6,000,000 for fiscal year 2005.
``(B) $8,000,000 for fiscal year 2006.
``(C) $10,000,000 for fiscal year 2007.
``(D) $12,000,000 for fiscal year 2008.
``(E) $15,000,000 for fiscal year 2009.
``(2) Remaining amounts.--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 that are not
apportioned under paragraph (1)--
``(A) 20 percent shall be apportioned to the States in
accordance with paragraph (3); and
``(B) 80 percent shall be apportioned to the States in
accordance with paragraph (4).
``(3) 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 (2)(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.
``(4) Apportionments based on population in nonurbanized
areas.--Each State shall receive an amount equal to the
amount apportioned under paragraph (2)(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.''.
(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--

[[Page S1356]]

(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.'';
(D) in paragraph (4)--
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraph (C) as subparagraph (B);
and
(E) by adding at the end the following:
``(6) Medical transportation demonstration grants.--
``(A) Grants authorized.--The Secretary may award
demonstration grants, from funds made available under
paragraph (1), to eligible entities to provide transportation
services to individuals to access dialysis treatments and
other medical treatments for renal disease.
``(B) Eligible entities.--An entity shall be eligible to
receive a grant under this paragraph if the entity--
``(i) meets the conditions described in section 501(c)(3)
of the Internal Revenue Code of 1986; or
``(ii) is an agency of a State or unit of local government.
``(C) Use of funds.--Grant funds received under this
paragraph may be used to provide transportation services to
individuals to access dialysis treatments and other medical
treatments for renal disease.
``(D) Application.--
``(i) In general.--Each eligible entity desiring a grant
under this paragraph shall submit an application to the
Secretary at such time, at such place, and containing such
information as the Secretary may reasonably require.
``(ii) Selection of grantees.--In awarding grants under
this paragraph, the Secretary shall give preference to
eligible entities from communities with--

``(I) high incidence of renal disease; and
``(II) limited access to dialysis facilities.

``(E) Rulemaking.--The Secretary shall issue regulations to
implement and administer the grant program established under
this paragraph.
``(F) Report.--The Secretary shall submit a report on the
results of the demonstration projects funded under this
paragraph to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives.''; 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 under
subsection (a) or section 5312, 5313, 5315, or 5322, the
Secretary shall establish a Federal share consistent with
such benefit.''.
(c) National Technical Assistance Center for Senior
Transportation; Alternative Fuels Study.--Section 5314 is
amended by adding at the end the following:
``(c) National Technical Assistance Center for Senior
Transportation.--
``(1) Establishment.--The Secretary shall award grants to a
national not-for-profit organization for the establishment
and maintenance of a national technical assistance center.
``(2) Eligibility.--An organization shall be eligible to
receive the grant under paragraph (1) if the organization--
``(A) focuses significantly on serving the needs of the
elderly;
``(B) has demonstrated knowledge and expertise in senior
transportation policy and planning issues;
``(C) has affiliates in a majority of the States;
``(D) has the capacity to convene local groups to consult
on operation and development of senior transportation
programs; and
``(E) has established close working relationships with the
Federal Transit Administration and the Administration on
Aging.
``(3) Use of funds.--The national technical assistance
center established under this section shall--
``(A) gather best practices from throughout the country and
provide such practices to local communities that are
implementing senior transportation programs;
``(B) work with teams from local communities to identify
how they are successfully meeting the transportation needs of
senior and any gaps in services in order to create a plan for
an integrated senior transportation program;
``(C) provide resources on ways to pay for senior
transportation services;
``(D) create a web site to publicize and circulate
information on senior transportation programs;
``(E) establish a clearinghouse for print, video, and audio
resources on senior mobility; and
``(F) administer the demonstration grant program
established under paragraph (4).
``(4) Grants authorized.--
``(A) In general.--The national technical assistance center
established under this section, in consultation with the
Federal Transit Administration, shall award senior
transportation demonstration grants to--
``(i) local transportation organizations;
``(ii) State agencies;
``(iii) units of local government; and
``(iv) nonprofit organizations.
``(B) Use of funds.--Grant funds received under this
paragraph may be used to--
``(i) evaluate the state of transportation services for
senior citizens;
``(ii) recognize barriers to mobility that senior citizens
encounter in their communities;
``(iii) establish partnerships and promote coordination
among community stakeholders, including public, not-for-
profit, and for-profit providers of transportation services
for senior citizens;
``(iv) identify future transportation needs of senior
citizens within local communities; and
``(v) establish strategies to meet the unique needs of
healthy and frail senior citizens.
``(C) Selection of grantees.--The Secretary shall select
grantees under this subsection based on a fair representation
of various geographical locations throughout the United
States.
``(5) Allocations.--From the funds made available for each
fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv)
of section 5338, $3,000,000 shall be allocated to carry out
this subsection.
``(d) Alternative Fuels Study.--
``(1) Study.--The Secretary shall conduct a study of the
actions necessary to facilitate the purchase of increased
volumes of alternative fuels (as defined in section 301 of
the Energy Policy Act of 1992 (42 U.S.C. 13211)) for use in
public transit vehicles
``(2) Scope of study.--The study conducted under this
subsection shall focus on the incentives necessary to
increase the use of alternative fuels in public transit
vehicles, including buses, fixed guideway vehicles, and
ferries.
``(3) Contents.--The study shall consider--
``(A) the environmental benefits of increased use of
alternative fuels in transit vehicles;
``(B) existing opportunities available to transit system
operators that encourage the purchase of alternative fuels
for transit vehicle operation;
``(C) existing barriers to transit system operators that
discourage the purchase of alternative fuels for transit
vehicle operation, including situations where alternative
fuels that do not require capital improvements to transit
vehicles are disadvantaged over fuels that do require such
improvements; and
``(D) the necessary levels and type of support necessary to
encourage additional use of alternative fuels for transit
vehicle operation.

[[Page S1357]]

``(4) Recommendations.--The study shall recommend
regulatory and legislative alternatives that will result in
the increased use of alternative fuels in transit vehicles.
``(5) Report.--Not later than 1 year after the date of
enactment of the Federal Public Transportation Act of 2004,
the Secretary shall submit the study completed under this
subsection to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives''.
(c) 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

[[Page S1358]]

``(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
``(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

[[Page S1359]]

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 (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.
``(d) Public Transportation Security.--
``(1) In general.--Not later than 90 days after the date of
enactment of the Federal Public Transportation Act of 2004,
the Secretary shall enter into a memorandum of understanding
with the Secretary of Homeland Security to define and clarify
the respective roles and responsibilities of the Department
of Transportation and the Department of Homeland Security
relating to public transportation security.
``(2) Contents.--The memorandum of understanding described
in paragraph (1) shall--
``(A) establish national security standards for public
transportation agencies;
``(B) establish funding priorities for grants from the
Department of Homeland Security to public transportation
agencies;
``(C) create a method of coordination with public
transportation agencies on security matters; and
``(D) address any other issues determined to be appropriate
by the Secretary and the Secretary of Homeland Security.''.
(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--

[[Page S1360]]

``(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 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 ``, provided that--
``(A) the protective period shall not exceed 4 years; and
``(B) the separation allowance shall 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.
``(6) Nothing in this subsection shall affect the level of
protection provided to freight railroad employees.''.

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;

[[Page S1361]]

``(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).
``(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;

[[Page S1362]]

``(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;
``(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. Such forecast shall be based on the population trend
for each State between the most recent decennial census and
the most recent estimate of population made by the Secretary
of Commerce.
``(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

[[Page S1363]]

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:
``(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

[[Page S1364]]

``(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, 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. DISADVANTAGED BUSINESS ENTERPRISE.

Section 1101(b) of the Transportation Equity Act of the
21st Century shall apply to all funds authorized or otherwise
made available under this title.

SEC. 3045. 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--

[[Page S1365]]

``(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 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.''.
______

SA 2614. Mr. BUNNING 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:

Insert in the appropriate place

SECTION 1. TEMPORARY SPECIAL RULES FOR REFUND OF THE COAL
EXCISE TAX TO CERTAIN COAL EXPORTERS.

(a) In General.--Notwithstanding sections 6416(a)(1) and
(c) and 6511 of the Internal Revenue Code of 1986, the amount
of any tax imposed on exported coal under section 4121 of
such Code shall be refunded to the exporter of such coal and
consistent with the requirements of this section and
otherwise applicable provisions of such Code.
(b) Limitations.--
(1) Time of filing.--Subsection (a) shall apply only with
respect to amounts of tax for which a return was filed on or
after December 28, 1992, and before April 1, 2003.
(2) Exporters related to producers excluded.--Subsection
(a) shall not apply with respect to the amount of tax on any
coal if the exporter of such coal is also the producer of
such coal--
(A) is related (within the meaning of section 144(a)(3) of
such Code) to the producers or seller of such coal, or
(B) has a contract, fee arrangement, or any other agreement
with the producer or seller of such coal to sell such coal to
a third party on behalf of the producer or seller of such
coal.
(c) Requirements.--No refund shall be made under this
section unless the exporter establishes, through statements,
documentation or other evidence--
(1) the amount of the tax imposed under section 4121 of
such Code on such coal;
(2) the quarter and year that such tax was required to be
remitted or paid by the producer or seller of the coal to the
Secretary;
(3) that the amount of such tax was included in the price
paid by the exporter for such coal;
(4) that such coal was exported; and
(5) that the exporter--
(A) has not included the tax in the price of such coal and
has not collected the amount of such tax from the person who
purchased such coal;
(B) has repaid the amount of the tax to the ultimate
purchaser of the coal to the making of the refund; or
(C) has filed with the Secretary the written consent of the
ultimate purchaser of the coal to the making of the refund.
(d) Presumption of Payment.--If the requirements of
Subsection (c) are met, it is presumed that the tax was paid
or remitted by the exporter to the government, and the
exporter shall be treated as the person (and the only person)
who paid the tax.
(e) Sunset.--This section shall not apply to any claim for
refund filed after the date which is 1 year after the date of
the enactment of this Act.
______

SA 2615. Ms. LANDRIEU (for herself, Mr. Breaux, Mrs. Lincoln, and Mr.
Pryor) 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; as follows:

On page 39, between lines 22 and 23, insert the following:
(17) FINISH program.--For the FINISH program under section
178 of that title, for each of fiscal years 2004 through
2009, an amount equal to 6.4 percent of the amounts received
in the Highway Trust Fund (other than the Mass Transit
Account) for the fiscal year under section 9503(b) of the
Internal Revenue Code of 1986.
On page 389, between lines 15 and 16, insert the following:

SEC. 18__. FINISH PROGRAM.

(a) In General.--Subtitle 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. FINISH program

``(a) In General.--The Secretary shall establish and carry
out a program, to be known as the `FINISH program', under
which the Secretary shall apportion funds to States for use
in the acceleration and completion of coordinated planning,
design, and construction of internationally significant
highway projects, as determined by the Secretary.

[[Page S1366]]

``(b) Eligible Projects.--The Secretary shall apportion
funds under this section for highway projects described in
subsection (a) that are located on any of the high priority
corridors described in paragraphs (1) and (37), (18) and
(20), (23), (26), (38), or (44) of section 1105(c) of the
Intermodal Surface Transportation Efficiency Act of 1991 (105
Stat. 2032), as determined by the applicable State and
approved by the Secretary.
``(c) Apportionment.--For each of fiscal years 2004 through
2009, the Secretary shall apportion funds made available
under this section for the fiscal year to each State in the
proportion that, as determined by the applicable State and
approved by the Secretary--
``(1) the estimated amount that may be obligated in the
fiscal year for the completion of the eligible projects
described in subsection (b) in the State; bears to
``(2) the total estimated amount that may be obligated in
the fiscal year for the completion of eligible projects
described in subsection (b) in all States.
``(d) Authorization of Appropriations.--For each of fiscal
years 2004 through 2009, there is authorized to be
appropriated from the Highway Trust Fund (other than the Mass
Transit Account) to carry out this section an amount equal to
6.4 percent of the amounts received in the Highway Trust Fund
(other than the Mass Transit Account) for the fiscal year
under section 9503(b) of the Internal Revenue Code of
1986.''.
(b) Conforming Amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1815(b)), is amended by adding at the end the
following:

``178. FINISH program.''.
______

SA 2616. Mr. INHOFE 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:

On page 39, line 6, strike ``$38,000,000'' and insert
``$50,000,000''.
On page 58, line 21, add a period after the closing
quotation marks.
Beginning on page 80, strike line 7 and all that follows
through page 81, line 3, and insert the following:

SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL AND
MAINTENANCE FACILITIES; COORDINATION OF FERRY
CONSTRUCTION AND MAINTENANCE.

(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
and maintenance facilities; coordination of ferry
construction and maintenance

``(a) Construction of Ferry Boats and Ferry Terminal
Facilities.--
``(1) In general.--The Secretary shall carry out a program
for construction of ferry boats and ferry terminal facilities
in accordance with section 129(c).
``(2) Federal share.--The Federal share of the cost of
construction of ferry boats and ferry terminals and
maintenance facilities under this subsection shall be 80
percent.
``(3) Allocation of funds.--The Secretary shall give
priority in the allocation of funds under this subsection to
those ferry systems, and public entities responsible for
developing ferries, that--
``(A) carry the greatest number of passengers and vehicles;
``(B) carry the greatest number of passengers in passenger-
only service; or
``(C) provide critical access to areas that are not well-
served by other modes of surface transportation.
``(1) In general.--There are authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) $50,000,000 for each fiscal year to carry out this
section.
``(2) Availability.--Notwithstanding section 118(a), funds
made available under paragraph (1) shall be available in
advance of an annual appropriation.
(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 and maintenance
facilities.''.

(2) Section 1064 of the Intermodal Surface Transportation
Efficiency Act of 1991 (105 Stat. 2005) is repealed.
On page 82, line 16, insert ``and'' after the semicolon.
On page 82, line 18, strike ``; and'' and insert a period.
On page 82, strike lines 19 through 21.
On page 83, strike line 3.
On page 118, line 3, before ``equipment,'' insert
``integrated, interoperable emergency communications,''.
On page 120, line 18, after ``elements'', insert
``(including integrated, interoperable emergency
communications)''.
On page 127, line 23, strike ``paragraph (1)'' and insert
``subsection (c)(1)(D)''.
On page 128, strike lines 5 through 20 and insert the
following:
``(4) Discovery and admission into evidence of certain
reports, surveys, and information.--Notwithstanding any other
provision of law, reports, surveys, schedules, lists, or 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 not be
subject to discovery or admitted into evidence in a Federal
or State court proceeding or considered for other purposes in
any action for damages arising from any occurrence at a
location identified or addressed in such reports, surveys,
schedules, lists, or other data.
On page 134, line 25, strike ``be available'' and insert
the following: ``be--
``(1) available''.
On page 135, line 2, strike the first period, the closing
quotation marks, and the following period and insert ``;
and''.
On page 135, between lines 2 and 3, insert the following:
``(2) apportioned in accordance with section 104(b)(5).''.
On page 147, after the matter following line 24, add the
following:
On page 224, line 23, strike ``and''.
On page 226, line 10, strike ``(4)'' and insert ``(3)''.
On page 257, line 12, strike ``B'' and insert ``(B)''.
On page 260, strike lines 3 through 9 and insert the
following:
(2) in paragraph (5), by striking the period at the end and
inserting a semicolon; 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; or
``(7) if the project or program involves the purchase of
integrated, interoperable emergency communications
equipment.''.
On page 261, between lines 5 and 6, insert the following:
(c) Responsibility of States.--
(1) In general.--Each State shall be responsible for
ensuring that subrecipients of Federal funds within the State
under section 149 of title 23, United States Code, have
emission reduction strategies for fleets that are--
(A) used in construction projects located in nonattainment
and maintenance areas; and
(B) funded under title 23, United States Code.
(2) Emission reduction strategies.--The Administrator of
the Environmental Protection Agency, in consultation with the
Secretary, shall develop a nonbinding list of emission
reduction strategies and supporting technical information for
each strategy, including--
(A) contract preferences;
(B) requirements for the use of anti-idling equipment;
(C) diesel retrofits; and
(D) such other matters as the Administrator of the
Environmental Protection Agency, in consultation with the
Secretary, determine to be appropriate.
(3) Use of cmaq funds.--A State may use funds made
available under this title and title 23, United States Code,
for the congestion mitigation and air quality program under
section 149 of title 23, United States Code, to ensure the
deployment of the emission reduction strategies described in
paragraph (1).
On page 288, between lines 2 and 3, insert the following:

SEC. 1622. 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.
Beginning on page 321, strike line 7 and all that follows
through page 326, line 12 and insert the following:
Secretary.'';
(C) in paragraph (3)--
(i) in subparagraph (A), by striking ``under this title''
and inserting ``under this chapter and section 125(e)''; and
(ii) by adding at the end the following:
``(C) Federal lands highway program demonstration
project.--
``(i) In general.--The Secretary shall establish a
demonstration project under which all funds made available
under this chapter for Indian reservation roads and for
highway bridges located on Indian reservation roads as
provided for in subparagraph (A) shall be made available, on
the request of an affected Indian tribal government, to the
Indian tribal government for use in carrying out, in
accordance with the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b et seq.), contracts and
agreements for the planning, research, engineering, and
construction described in that subparagraph.
``(ii) Exclusion of agency participation.--In accordance
with subparagraph (B), all funds for Indian reservation roads
and for highway bridges located on Indian reservation roads
to which clause (i) applies shall be paid without regard to
the organizational level at which the Federal lands highway
program has previously carried out the programs, functions,
services, or activities involved.
``(iii) Selection of participating tribes.--

``(I) Participants.--

``(aa) In general.--In addition to Indian tribes or tribal
organizations that, as of the date of enactment of this
subparagraph, are contracting or compacting for any Indian
reservation road function or program, for each fiscal year,
the Secretary may select up to 15 Indian tribes from the
applicant pool described in subclause (II) to participate in
the demonstration project carried out under clause (i).
``(bb) Consortia.--Two or more Indian tribes that are
otherwise eligible to participate in a program or activity to
which this

[[Page S1367]]

title applies may form a consortium to be considered as a
single Indian tribe for the purpose of becoming part of the
applicant pool under subclause (II).
``(cc) Funding.--An Indian tribe participating in the pilot
program under this subparagraph shall receive funding in an
amount equal to the sum of the funding that the Indian tribe
would otherwise receive in accordance with the funding
formula established under the other provisions of this
subsection, and an additional percentage of that amount equal
to the percentage of funds withheld during the applicable
fiscal year for the road program management costs of the
Bureau of Indian Affairs under subsection (f)(1).

``(II) Applicant pool.--The applicant pool described in
this subclause shall consist of each Indian tribe (or
consortium) that--

``(aa) has successfully completed the planning phase
described in subclause (IV);
``(bb) has requested participation in the demonstration
project under this subparagraph through the adoption of a
resolution or other official action by the tribal governing
body; and
``(cc) has demonstrated financial stability and financial
management capability in accordance with subclause (III)
during the 3-fiscal-year period immediately preceding the
fiscal year for which participation under this subparagraph
is being requested.

``(III) Criteria for determining financial stability and
financial management capacity.--For the purpose of subclause
(II), evidence that, during the 3-year period referred to in
subclause (II)(cc), an Indian tribe had no uncorrected
significant and material audit exceptions in the required
annual audit of the Indian tribe's self-determination
contracts or self-governance funding agreements with any
Federal agency shall be conclusive evidence of the required
stability and capability.
``(IV) Planning phase.--

``(aa) In general.--An Indian tribe (or consortium)
requesting participation in the demonstration project under
this subparagraph shall complete a planning phase that shall
include legal and budgetary research and internal tribal
government and organization preparation.
``(bb) Eligibility.--An Indian tribe (or consortium)
described in item (aa) shall be eligible to receive a grant
under this subclause to plan and negotiate participation in a
project described in that item.

``(V) Report to congress.--Not later than September 30,
2006, the Secretary shall submit to Congress a report
describing the implementation of the demonstration project
and any recommendations for improving the project.''; and

(D) 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) Authorization of appropriations.--In addition to any
other funds made available for Indian reservation roads for
each fiscal year, there is authorized to be appropriated from
the Highway Trust Fund (other than the Mass Transit Account)
$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.--
``(1) Contract authority.--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).
``(2) Health and safety assurances.--Notwithstanding any
other provision of law, an Indian tribe or tribal
organization may commence road and bridge construction under
the Transportation Equity Act for the 21st Century (Public
Law 105-178) or the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004 that is funded
through a contract or agreement under the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b et
seq.) if the Indian tribe or tribal organization--
``(A) provides assurances in the contract or agreement that
the construction will meet or exceed applicable health and
safety standards;
``(B) obtains the advance review of the plans and
specifications from a licensed professional that has
certified that the plans and specifications meet or exceed
the applicable health and safety standards; and
``(C) provides a copy of the certification under
subparagraph (B) to the Assistant Secretary for Indian
Affairs.''.
(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) Maintenance of Indian Reservation Roads.--Section
204(c) of title 23, United States Code, is amended by
striking the second and third sentences and inserting the
following: ``Notwithstanding any other provision of this
title, of the amount of funds apportioned for Indian
reservation roads from the Highway Trust Fund, an Indian
tribe may expend for the purpose of maintenance not more than
the greater of $250,000 or 25 percent of the apportioned
amount. The Bureau of Indian Affairs shall continue to retain
primary responsibility, including annual funding request
responsibility, for road maintenance programs on Indian
reservations. The Secretary shall ensure that funding made
available under this subsection for maintenance of Indian
reservation roads for each fiscal year is supplementary to
and not in lieu of any obligation of funds by the Bureau of
Indian Affairs for road maintenance programs on Indian
reservations.''.
On page 387, line 8, strike ``I and II'' and insert ``I,
II, and III''.
On page 389, between lines 15 and 16, insert the following:

SEC. 1823. MULTISTATE INTERNATIONAL CORRIDOR DEVELOPMENT
PROGRAM.

(a) Establishment.--The Secretary shall establish a program
to develop international trade corridors to facilitate the
movement of freight from international ports of entry and
inland ports through and to the interior of the United
States.
(b) Eligible Recipients.--State transportation departments
and metropolitan planning organizations shall be eligible to
receive and administer funds provided under the program.
(c) Eligible Activities.--The Secretary shall make
allocations under this program

[[Page S1368]]

for any activity eligible for funding under title 23, United
States Code, including multistate highway and multistate
multimodal planning and project construction.
(d) Other Provisions Regarding Eligibility.--All activities
funded under this program shall be consistent with the
continuing, cooperative, and comprehensive planning processes
required by sections 134 and 135 of title 23, United States
Code.
(e) Selection Criteria.--The Secretary shall only select
projects for corridors--
(1) that have significant levels or increases in truck and
traffic volume relating to international freight movement;
(2) connect to at least 1 international terminus or inland
port;
(3) traverse at least 3 States; and
(4) are identified by section 115(c) of the Intermodal
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 that emphasize multimodal
planning, including planning for operational improvements
that increase mobility, freight productivity, access to
marine ports, safety, and security while enhancing the
environment.
(g) Federal Share.--The Federal share required for any
study carried out under this section shall be available for
obligation in the same manner as if the funds were
apportioned under chapter I of title 23, United States Code.

SEC. 1824. AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES
WITH INDIAN RESERVATIONS.

Section 1214(d) of the Transportation Equity Act for the
21st Century (23 U.S.C. 202 note; 112 Stat. 206) is amended--
(1) in paragraph (1), by inserting ``(except Arizona)''
after ``each State''; and
(2) in paragraph (5)(A), by striking ``$1,500,000 for each
of fiscal years 1998 through 2003'' and inserting
``$1,800,000 for each of fiscal years 2004 through 2009''.
On page 398, strike lines 5 through 11 and insert the
following:
further development and deployment of techniques to prevent
and mitigate alkali silica reactivity;
(H) $2,000,000 for fiscal year 2005 shall be remain
available until expended for asphalt and asphalt-related
reclamation research at the South Dakota School of Mines; and
(I) $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.
On page 403, in the matter following line 2, strike the
item relating to section 511 and insert the following:

``511. Multistate corridor operations and management.
``512. Transportation analysis simulation system.''.

On page 404, line 7, before ``communications'' insert
``integrated, interoperable emergency''.
On page 420, line 23, strike ``enhanced'' and insert
``integrated, interoperable emergency''.
On page 476, line 18, strike the period and closing
quotation marks.
On page 476, between lines 18 and 19, insert the following:

``Sec. 512. Transportation analysis simulation system

``(a) Continuation of Transims Development.--
``(1) In general.--The Secretary shall continue the
deployment of the advanced transportation model known as the
`Transportation Analysis Simulation System' (referred to in
this section as `TRANSIMS') developed by the Los Alamos
National Laboratory.
``(2) Requirements and considerations.--In carrying out
paragraph(1), the Secretary shall--
``(A) further improve TRANSIMS to reduce the cost and
complexity of using the TRANSIMS;
``(B) continue development of TRANSIMS for applications to
facilitate transportation planning, regulatory compliance,
and response to natural disasters and other transportation
disruptions; and
``(C) assist State transportation departments and
metropolitan planning organizations, especially smaller
metropolitan planning organizations, in the implementation of
TRANSIMS by providing training and technical assistance.
``(b) Eligible Activities.--The Secretary shall use funds
made available to carry out this section--
``(1) to further develop TRANSIMS for additional
applications, including--
``(A) congestion analyses;
``(B) major investment studies;
``(C) economic impact analyses;
``(D) alternative analyses;
``(E) freight movement studies;
``(F) emergency evacuation studies;
``(G) port studies; and
``(H) airport access studies;
``(2) provide training and technical assistance with
respect to the implementation and application of TRANSIMS to
States, local governments, and metropolitan planning
organizations with responsibility for travel modeling;
``(3) develop methods to simulate the national
transportation infrastructure as a single, integrated system
for the movement of individuals and goods;
``(4) provide funding to State transportation departments
and metropolitan planning organizations for implementation of
TRANSIMS.
``(c) Allocation of Funds.--Of the funds made available to
carry out this section for each fiscal year, not less than 15
percent shall be allocated for activities described in
subsection (b)(3).
``(d) Funding.--Of the amounts made available under section
2001(a) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 for each of fiscal years
2004 through 2009, the Secretary shall use $1,000,000 to
carry out this section.
``(e) Availability of Funds.--Funds made available under
this section shall be available to the Secretary through the
Transportation Planning, Research, and Development Account of
the Office of the Secretary.''.
On page 489, after line 23, add the following:

SEC. 2105. TRANSPORTATION TECHNOLOGY INNOVATION AND
DEMONSTRATION PROGRAM.

(a) In General.--Section 5117(b)(3) of the Transportation
Equity Act for the 21st Century (112 Stat. 449; 112 Stat.
864; 115 Stat. 2330) is amended--
(1) in subparagraph (B)--
(A) in clause (i)--
(i) in the first sentence--

(I) by striking ``Build an'' and inserting ``Build or
integrate an''; and
(II) by striking ``$2,000,000'' and inserting
``$2,500,000''; and

(ii) in the second sentence--

(I) by striking ``300,000 and that'' and inserting
``300,000,''; and
(II) by inserting before the period at the end the
following: ``, and includes major transportation corridors
serving that metropolitan area'';

(B) in clause (ii), by striking all that follows ``will
be'' and inserting ``reinvested in the intelligent
transportation infrastructure system.'';
(C) by striking clause (iii); and
(D) by redesignating clauses (iv) and (v) as clauses (iii)
and (iv), respectively;
(2) in subparagraph (C)(ii), by striking ``July 1, 2002''
and inserting ``the date that is 180 days after the date of
enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2003'';
(3) in subparagraph (E), by striking clause (ii) and
inserting the following:
``(ii) The term ``follow-on deployment areas'' means the
metropolitan areas of Albany, Atlanta, Austin, Baltimore,
Birmingham, Boston, Burlington Vermont, Charlotte, Chicago,
Cleveland, Columbus, Dallas/Ft. Worth, Denver, Detroit,
Greensboro, Hartford, Houston, Indianapolis, Jacksonville,
Kansas City, Las Vegas, Los Angeles, Louisville, Miami,
Milwaukee, Minneapolis-St. Paul, Nashville, New Orleans, New
York/Northern New Jersey, Norfolk, Northern Kentucky/
Cincinnati, Oklahoma City, Orlando, Philadelphia, Phoenix,
Pittsburgh, Portland, Providence, Raleigh, Richmond,
Sacramento, Salt Lake, San Diego, San Francisco, San Jose,
St. Louis, Seattle, Tampa, Tucson, Tulsa, and Washington,
District of Columbia.'';
(4) in subparagraph (F)--
(A) by striking ``Of the amounts'' and inserting the
following:
``(i) This act.--Of the amounts''; and
(B) by adding at the end the following:
``(ii) SAFETEA.--There are authorized to be appropriated
out of the Highway Trust Fund (other than the Mass Transit
Account) $5,000,000 for each fiscal year to carry out this
paragraph.
``(iii) Availability; no reduction or setaside.--Amounts
made available by this subparagraph--

``(I) shall remain available until expended; and
``(II) shall not be subject to any reduction or
setaside.''; and

(5) by adding at the end the following:
``(H) Use of rights-of-way.--
``(i) In general.--An intelligent transportation system
project described in paragraph (3) or (6) that involves
privately owned intelligent transportation system components
and is carried out using funds made available from the
Highway Trust Fund shall not be subject to any law (including
a regulation) of a State or political subdivision of a State
prohibiting or regulating commercial activities in the
rights-of-way of a highway for which Federal-aid highway
funds have been used for planning, design, construction, or
maintenance, if the Secretary determines that such use is in
the public interest.
``(ii) Effect of subparagraph.--Nothing in this
subparagraph affects the authority of a State or political
subdivision of a State to regulate highway safety.''.
(b) Conforming Amendment.--Section 5204 of the
Transportation Equity Act for the 21st Century (112 Stat.
453) is amended by striking subsection (k) (112 Stat. 2681-
478).
On page 874, line 22, strike ``and''.
On page 875, strike lines 3 through 5.
On page 995, line 20, insert ``(a) In General.--'' before
``Section''.
On page 996, between lines 5 and 6, insert the following:
(b) Conforming Amendments.--
(1) In general.--Section 3 of the Dingell-Johnson Sport
Fish Restoration Act (16 U.S.C. 777b) is amended in the first
sentence--

[[Page S1369]]

(A) by striking ``Sport Fish Restoration Account'' and
inserting ``Sport Fish Restoration Trust Fund''; and
(B) by striking ``that Account'' and inserting ``that Trust
Fund, except as provided in section 9504(c) of the Internal
Revenue Code of 1986''.
(2) Effective date.--The amendments made by paragraph (1)
take effect on October 1, 2004.
On page 1020, between lines 9 and 10, insert the following:

SEC. 4663. USE OF CONGESTION MITIGATION AND AIR QUALITY
IMPROVEMENT FUNDS FOR BOSTON TO PORTLAND
PASSENGER RAIL SERVICE.

Notwithstanding any other provision of law, funds
authorized to be appropriated under section 1101(5) that are
made available to the State of Maine may be used to support,
through December 15, 2006, the operation of passenger rail
service between Boston, Massachusetts, and Portland, Maine.
On page 1310, after line 4, add the following:

TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 7001. REIMBURSEMENT OF CERTAIN TRANSPORTATION COSTS
INCURRED BY MEMBERS OF THE UNITED STATES ARMED
FORCES ON REST AND RECUPERATION LEAVE.

The Secretary of Defense shall reimburse a member of the
United States Armed Forces (out of funds available for the
Armed Forces for operation and maintenance for the relevant
fiscal year) for transportation expenses incurred by such
member for 1 round trip by such member between 2 locations
within the United States in connection with leave taken under
the Central Command Rest and Recuperation Leave Program
during the period beginning on September 25, 2003, and ending
on December 18, 2003.

TITLE VIII--SOLID WASTE DISPOSAL

SEC. 8001. INCREASED USE OF RECOVERED MINERAL COMPONENT IN
FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT
OF CEMENT OR CONCRETE.

(a) In General.--Subtitle F of the Solid Waste Disposal Act
(42 U.S.C. 6961 et seq.) is amended by adding at the end the
following:

``SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN
FEDERALLY FUNDED PROJECTS INVOLVING PROCUREMENT
OF CEMENT OR CONCRETE.

``(a) Definitions.--In this section:
``(1) Agency head.--The term `agency head' means--
``(A) the Secretary of Transportation; and
``(B) the head of each other Federal agency that on a
regular basis procures, or provides Federal funds to pay or
assist in paying the cost of procuring, material for cement
or concrete projects.
``(2) Cement or concrete project.--The term `cement or
concrete project' means a project for the construction or
maintenance of a highway or other transportation facility or
a Federal, State, or local government building or other
public facility that--
``(A) involves the procurement of cement or concrete; and
``(B) is carried out in whole or in part using Federal
funds.
``(3) Recovered mineral component.--The term `recovered
mineral component' means--
``(A) ground granulated blast furnace slag;
``(B) coal combustion fly ash; and
``(C) any other waste material or byproduct recovered or
diverted from solid waste that the Administrator, in
consultation with an agency head, determines should be
treated as recovered mineral component under this section for
use in cement or concrete projects paid for, in whole or in
part, by the agency head.
``(b) Implementation of Requirements.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator and each agency
head shall take such actions as are necessary to implement
fully all procurement requirements and incentives in effect
as of the date of enactment of this section (including
guidelines under section 6002) that provide for the use of
cement and concrete incorporating recovered mineral component
in cement or concrete projects.
``(2) Priority.--In carrying out paragraph (1) an agency
head shall give priority to achieving greater use of
recovered mineral component in cement or concrete projects
for which recovered mineral components historically have not
been used or have been used only minimally.
``(3) Conformance.--The Administrator and each agency head
shall carry out this subsection in accordance with section
6002.
``(c) Full Implementation Study.--
``(1) In general.--The Administrator, in cooperation with
the Secretary of Transportation and the Secretary of Energy,
shall conduct a study to determine the extent to which
current procurement requirements, when fully implemented in
accordance with subsection (b), may realize energy savings
and environmental benefits attainable with substitution of
recovered mineral component in cement used in cement or
concrete projects.
``(2) Matters to be addressed.--The study shall--
``(A) quantify the extent to which recovered mineral
components are being substituted for Portland cement,
particularly as a result of current procurement requirements,
and the energy savings and environmental benefits associated
with that substitution;
``(B) identify all barriers in procurement requirements to
greater realization of energy savings and environmental
benefits, including barriers resulting from exceptions from
current law; and
``(C)(i) identify potential mechanisms to achieve greater
substitution of recovered mineral component in types of
cement or concrete projects for which recovered mineral
components historically have not been used or have been used
only minimally;
``(ii) evaluate the feasibility of establishing guidelines
or standards for optimized substitution rates of recovered
mineral component in those cement or concrete projects; and
``(iii) identify any potential environmental or economic
effects that may result from greater substitution of
recovered mineral component in those cement or concrete
projects.
``(3) Report.--Not later than 30 months after the date of
enactment of this section, the Administrator shall submit to
Congress a report on the study.
``(d) Additional Procurement Requirements.--Unless the
study conducted under subsection (c) identifies any effects
or other problems described in subsection (c)(2)(C)(iii) that
warrant further review or delay, the Administrator and each
agency head shall, not later than 1 year after the release of
the report in accordance with subsection (c)(3), take
additional actions authorized under this Act to establish
procurement requirements and incentives that provide for the
use of cement and concrete with increased substitution of
recovered mineral component in the construction and
maintenance of cement or concrete projects, so as to--
``(1) realize more fully the energy savings and
environmental benefits associated with increased
substitution; and
``(2) eliminate barriers identified under subsection (c).
``(e) Effect of Section.--Nothing in this section affects
the requirements of section 6002 (including the guidelines
and specifications for implementing those requirements).''.
(b) Table of Contents Amendment.--The table of contents in
section 1001 of the Solid Waste Disposal Act (42 U.S.C. prec.
6901) is amended by adding after the item relating to section
6004 the following:

``Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or
concrete.''.

SEC. 8002. USE OF GRANULAR MINE TAILINGS.

(a) In General.--Subtitle F of the Solid Waste Disposal Act
(42 U.S.C. 6961 et seq.) (as amended by section 8001(a)) is
amended by adding at the end the following:

``SEC. 6006. USE OF GRANULAR MINE TAILINGS.

``(a) Mine Tailings.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Administrator, in
consultation with the Secretary of Transportation and heads
of other Federal agencies, shall establish criteria
(including an evaluation of whether to establish a numerical
standard for concentration of lead and other hazardous
substances) for the safe and environmentally protective use
of granular mine tailings from the Tar Creek, Oklahoma Mining
District, known as `chat', for--
``(A) cement or concrete projects; and
``(B) transportation construction projects (including
transportation construction projects involving the use of
asphalt) that are carried out, in whole or in part, using
Federal funds.
``(2) Requirements.--In establishing criteria under
paragraph (1), the Administrator shall consider--
``(A) the current and previous uses of granular mine
tailings as an aggregate for asphalt; and
``(B) any environmental and public health risks and
benefits derived from the removal, transportation, and use in
transportation projects of granular mine tailings.
``(3) Public participation.--In establishing the criteria
under paragraph (1), the Administrator shall solicit and
consider comments from the public.
``(4) Applicability of criteria.--On the establishment of
the criteria under paragraph (1), any use of the granular
mine tailings described in paragraph (1) in a transportation
project that is carried out, in whole or in part, using
Federal funds, shall meet the criteria established under
paragraph (1).
``(b) Effect of Sections.--Nothing in this section or
section 6005 affects any requirement of any law (including a
regulation) in effect on the date of enactment of this
section.''.
(b) Conforming Amendment.--The table of contents in section
1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 6901)
(as amended by section 8001(b)) is amended by adding after
the item relating to section 6005 the following:

``Sec. 6006. Use of granular mine tailings.''.
On page 738, strike lines 5 through 12 and insert the
following:

motor vehicles that became effective by December 31, 2002.
``(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, 2002, and has in
effect
On page 792, between lines 15 and 16, insert the following:

[[Page S1370]]

Part 3--Miscellaneous Provisions

SEC. 4171. DRIVER LICENSING AND EDUCATION.

(a) National Office of Driver Licensing and Education.--
Section 105 of title 49, United States Code, is amended by
adding at the end the following new subsection:
``(f)(1) There is a National Office of Driver Licensing and
Education in the National Highway Traffic Safety
Administration.
``(2) The head of the National Office of Driver Licensing
and Education is the Director.
``(3) The functions of the National Office of Driver
Licensing and Education are as follows:
``(A) To provide States with services for coordinating the
motor vehicle driver training and licensing programs of the
States.
``(B) To develop and make available to the States a
recommended comprehensive model for motor vehicle driver
education and graduated licensing that incorporates the best
practices in driver education and graduated licensing,
including best practices with respect to--
``(i) vehicle handling and crash avoidance;
``(ii) driver behavior and risk reduction;
``(iii) roadway features and associated safety
implications;
``(iv) roadway interactions involving all types of vehicles
and road users, such as car-truck and pedestrian-car
interactions;
``(v) parent education; and
``(vi) other issues identified by the Director.
``(C) To carry out such research (pursuant to cooperative
agreements or otherwise) and undertake such other activities
as the Director determines appropriate to develop and, on an
ongoing basis, improve the recommended comprehensive model.
``(D) To provide States with technical assistance for the
implementation and deployment of the motor vehicle driver
education and licensing comprehensive model recommended under
subparagraph (B).
``(E) To develop and recommend to the States methods for
harmonizing the presentation of motor vehicle driver
education and licensing with the requirements of multistage
graduated licensing systems, including systems described in
section 410(c)(4) of title 23, and to demonstrate and
evaluate the effectiveness of those methods in selected
States.
``(F) To assist States with the development and
implementation of programs to certify driver education
instructors, including the development and implementation of
proposed uniform certification standards.
``(G) To provide States with financial assistance under
section 412 of title 23 for--
``(i) the implementation of the motor vehicle driver
education and licensing comprehensive model recommended under
subparagraph (B);
``(ii) the establishment or improved administration of
multistage graduated licensing systems; and
``(iii) the support of other improvements in motor vehicle
driver education and licensing programs.
``(H) To evaluate the effectiveness of the comprehensive
model recommended under subparagraph (B).
``(I) To examine different options for delivering driver
education in the States.
``(J) To perform such other functions relating to motor
vehicle driver education or licensing as the Secretary may
require.
``(4) Not later than 42 months after the date of the
enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, the Director shall submit
to Congress a report on the progress made by the National
Office of Driver Licensing and Education with respect to the
functions under paragraph (3).''.
(b) Grant Program for Improvement of Driver Education and
Licensing.--
(1) Authority.--
(A) In general.--Chapter 4 of title 23, United States Code,
is amended by adding at the end the following new section:

``SEC. 412. DRIVER EDUCATION AND LICENSING.

``(a) Authority.--
``(1) In general.--The Secretary shall carry out a program
to provide States, by grant, with financial assistance to
support the improvement of motor vehicle driver education
programs and the establishment and improved administration of
graduated licensing systems, including systems described in
section 410(c)(4) of this title.
``(2) Administrative office.--The Secretary shall
administer the program under this section through the
Director of the National Office of Driver Licensing and
Education.
``(b) Eligibility Requirements.--
``(1) Regulations.--The Secretary shall prescribe in
regulations the eligibility requirements, application and
approval procedures and standards, and authorized uses of
grant proceeds for the grant program under this section. The
regulations shall, at a minimum, authorize use of grant
proceeds for the following activities:
``(A) Quality assurance testing, including follow-up
testing to monitor the effectiveness of--
``(i) driver licensing and education programs;
``(ii) instructor certification testing; and
``(iii) other statistical research designed to evaluate the
performance of driver education and licensing programs.
``(B) Improvement of motor vehicle driver education
curricula.
``(C) Training of instructors for motor vehicle driver
education programs.
``(D) Testing and evaluation of motor vehicle driver
performance.
``(E) Public education and outreach regarding motor vehicle
driver education and licensing.
``(F) Improvements with respect to State graduated
licensing programs, as well as related enforcement
activities.
``(2) Consultation requirement.--In prescribing the
regulations, the Secretary shall consult with the following:
``(A) The Administrator of the National Highway Traffic
Safety Administration.
``(B) The heads of such other departments and agencies of
the United States as the Secretary considers appropriate on
the basis of relevant interests or expertise.
``(C) Appropriate officials of the governments of States
and political subdivisions of States.
``(D) Other relevant experts.
``(c) Maximum Amount of Grant.--The maximum amount of a
grant of financial assistance for a program, project, or
activity under this section may not exceed 75 percent of the
total cost of such program, project, or activity.''.
(B) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``412. Driver education and licensing.''.
(2) Time for promulgation of regulations.--The Secretary of
Transportation shall promulgate the regulations under section
412(b) of title 23, United States Code (as added by paragraph
(1)), not later than October 1, 2005.
(c) Grant Program for Public Awareness of Organ Donation
Through Driver Licensing Programs.--
(1) Authority.--
(A) In general.--Chapter 4 of title 23, United States Code
(as amended by subsection (b)), is further amended by adding
at the end the following new section:

``SEC. 413. ORGAN DONATION THROUGH DRIVER LICENSING.

``(a) Authority.--
``(1) In general.--The Secretary shall carry out a program
to provide eligible recipients, by grant, with financial
assistance to carry out campaigns to increase public
awareness of, and training on, authority and procedures under
State law to provide for the donation of organs through a
declaration recorded on a motor vehicle driver license.
``(2) Administrative office.--The Secretary shall
administer the program under this section through the
Director of the National Office of Driver Licensing and
Education.
``(b) Eligibility Requirements.--
``(1) Regulations.--The Secretary shall prescribe in
regulations the eligibility requirements, application and
approval procedures and standards, and authorized uses of
grant proceeds for the grant program under this section.
``(2) Consultation requirement.--In prescribing the
regulations, the Secretary shall consult with the following:
``(A) The Administrator of the National Highway Traffic
Safety Administration.
``(B) The heads of such other departments and agencies of
the United States as the Secretary considers appropriate on
the basis of relevant interests or expertise.
``(C) Appropriate officials of the governments of States
and political subdivisions of States.
``(D) Representatives of private sector organizations
recognized for relevant expertise.''.
(B) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``413. Organ donation through driver licensing.''.
(2) Time for promulgation of regulations.--The Secretary of
Transportation shall promulgate the regulations under section
413(b) of title 23, United States Code (as added by paragraph
(1)), not later than October 1, 2005.
(d) Study of National Driver Education Standards.--
(1) Requirement for study.--The Secretary of Transportation
shall carry out a study to determine whether the
establishment and imposition of nationwide minimum standards
of motor vehicle driver education would improve national
highway traffic safety or the performance and legal
compliance of novice drivers.
(2) Time for completion of study.--The Secretary shall
complete the study not later than 2 years after the date of
the enactment of this Act.
(3) Report.--The Secretary shall publish a report on the
results of the study under this section not later than 2
years after the study is completed.
(e) Authorization of Appropriations.--Of the amounts
available to carry out section 403 of title 23, United States
Code, for each of the fiscal years 2005 through 2010,
$5,000,000 may be made available for each such fiscal year to
carry out sections 412 and 413 of title 23, United States
Code (as added by subsections (b) and (c), respectively).

SEC. 4172. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE
ACT.

(a) Safety Labeling Requirement.--Section 3 of the
Automobile Information Disclosure Act (15 U.S.C. 1232) is
amended by adding at the end the following:
``(g) if one or more safety ratings for such automobile
have been assigned and formally published or released by the
National Highway Traffic Safety Administration under the

[[Page S1371]]

New Car Assessment Program, information about safety ratings
that--
``(1) includes a graphic depiction of the number of stars
that corresponds to each such assigned safety rating
displayed in a clearly differentiated fashion from stars
indicating the unattained safety rating;
``(2) refers to frontal impact crash tests, side impact
crash tests, and rollover resistance tests (whether or not
such automobile has been assigned a safety rating for such
tests), including statements that--
``(A) frontal impact crash test ratings are based on risk
of head and chest injury;
``(B) side impact crash test ratings are based on risk of
chest injury; and
``(C) rollover resistance ratings are based on risk of
rollover in the event of a single automobile crash;
``(3) is presented in a legible, visible, and prominent
fashion and covers at least--
``(A) 8 percent of the total area of the label; or
``(B) an area with a minimum length of 4 \1/2\ inches and a
minimum height of 3 \1/2\ inches; and
``(4) contains a heading titled `Government Safety
Information' and a disclaimer including the following text:
`Star ratings for frontal impact crash tests can only be
compared to other vehicles in the same weight class and those
plus or minus 250 pounds. Side impact and rollover ratings
can be compared across all vehicle weights and classes. For
more information on safety and testing, please visit <a href='http://
www.nhtsa.dot.gov'>http://
www.nhtsa.dot.gov</a>'; and
``(h) if an automobile has not been tested by the National
Highway Traffic Safety Administration under the New Car
Assessment Program, or safety ratings for such automobile
have not been assigned in one or more rating categories, a
statement to that effect.''.
(b) Regulations.--Not later than January 1, 2005, the
Secretary of Transportation shall prescribe regulations to
implement the labeling requirements under subsections (g) and
(h) of section 3 of such Act (as added by subsection (a)).
(c) Conforming and Technical Amendments.--Section 3 of such
Act is further amended--
(1) in subsection (e), by striking ``and'' after the
semicolon; and
(2) in subsection (f)--
(A) by adding ``and'' at the end of paragraph (3); and
(B) by striking the period at the end and inserting a
semicolon.
(d) Applicability.--The labeling requirements under
subsections (g) and (h) of section 3 of such Act (as added by
subsection (a)), and the regulations prescribed under
subsection (b), shall apply to new automobiles delivered on
or after--
(1) September 1, 2005, if the regulations under subsection
(b) are prescribed not later than August 31, 2004; or
(2) September 1, 2006, if the regulations under subsection
(b) are prescribed after August 31, 2004.

SEC. 4173. CHILD SAFETY.

(a) Incorporation of Child Dummies in Safety Tests.--
(1) Rulemaking required.--Not later than 2 years after the
date of the enactment of this Act, the Administrator of the
National Highway Traffic Safety Administration shall conduct
a rulemaking to increase utilization of child dummies,
including Hybrid-III child dummies, in motor vehicle safety
tests, including crash tests, conducted by the
Administration.
(2) Criteria.--In conducting the rulemaking under
subsection (a), the Administrator shall select motor vehicle
safety tests in which the inclusion of child dummies will
lead to--
(A) increased understanding of crash dynamics with respect
to children; and
(B) measurably improved child safety.
(3) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Transportation shall
publish a report regarding the implementation of this
section.
(b) Child Safety in Rollover Crashes.--
(1) Consumer information program.--Not later than 2 years
after the date of the enactment of this Act, the Secretary of
Transportation shall implement a consumer information program
relating to child safety in rollover crashes. The Secretary
shall make information related to the program available to
the public following completion of the program.
(2) Child dummy development.--
(A) In general.--The Administrator of the National Highway
Traffic Safety Administration shall initiate the development
of a biofidelic child crash test dummy capable of measuring
injury forces in a simulated rollover crash.
(B) Reports.--The Secretary shall submit to Congress a
report on progress related to such development--
(i) not later than 1 year after the date of the enactment
of this Act; and
(ii) not later than 3 years after the date of the enactment
of this Act.
(c) Report on Enhanced Vehicle Safety Technologies.--Not
later than 2 years after the date of the enactment of this
Act, the Secretary of Transportation shall submit to Congress
a report that describes, evaluates, and determines the
relative effectiveness of--
(1) currently available and emerging technologies,
including auto-reverse functions and child-safe window
switches, that are designed to prevent and reduce the number
of injuries and deaths to children left unattended inside
parked motor vehicles, including injuries and deaths that
result from hyperthermia or are related to power windows or
power sunroofs; and
(2) currently available and emerging technologies that are
designed to improve the performance of safety belts with
respect to the safety of occupants aged between 4 and 8 years
old.
(d) Completion of Rulemaking Regarding Power Windows.--Not
later than 180 days after the date of the enactment of this
Act, the Secretary of Transportation shall--
(1) complete the rulemaking initiated by the National
Highway Traffic Safety Administration that is ongoing on the
date of the enactment of this Act and relates to a
requirement that window switches be designed to reduce the
accidental closing by children of power windows; and
(2) issue performance-based regulations to take effect not
later than September 1, 2006, requiring that window switches
or related technologies be designed to prevent the accidental
closing by children of power windows.
(e) Database on Injuries and Deaths in Nontraffic, Noncrash
Events.--
(1) In general.--The Secretary of Transportation shall
establish a new database of, and collect data regarding,
injuries and deaths in nontraffic, noncrash events involving
motor vehicles. The database shall include information
regarding--
(A) the number, types, and proximate causes of injuries and
deaths resulting from such events;
(B) the characteristics of motor vehicles involved in such
events;
(C) the characteristics of the motor vehicle operators and
victims involved in such events; and
(D) the presence or absence in motor vehicles involved in
such events of advanced technologies designed to prevent such
injuries and deaths.
(2) Rulemaking.--The Secretary shall conduct a rulemaking
regarding how to structure and compile the database.
(3) Availability.--The Secretary shall make the database
available to the public.

SEC. 4174. SAFE INTERSECTIONS.

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

``Sec. 39. Traffic signal preemption transmitters

``(a) Offenses.--
``(1) Sale.--A person who provides for sale to unauthorized
users a traffic signal preemption transmitter in or affecting
interstate or foreign commerce shall be fined not more than
$10,000, imprisoned not more than 1 year, or both.
``(2) Possession.--A person who is an unauthorized user in
possession of a traffic signal preemption transmitter in or
affecting interstate or foreign commerce shall be fined not
more than $10,000, imprisoned not more than 6 months, or
both.
``(b) Definitions.--In this section, the following
definitions apply:
``(1) Traffic signal preemption transmitter.--The term
`traffic signal preemption transmitter' means any device or
mechanism that can change a traffic signal's phase.
``(2) Unauthorized user.--The term `unauthorized user'
means a user of a traffic signal preemption transmitter who
is not a government approved user.''.
(b) Chapter Analysis.--The chapter analysis for chapter 2
of title 18, United States Code, is amended by adding at the
end the following:

``39. Traffic signal preemption transmitters.''.

SEC. 4175. 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.
Beginning on page 1005, line 22, strike all through page
1020, line 9, and insert the following:

SEC. 4602. ESTABLISHMENT OF BUILD AMERICA CORPORATION.

There is established a nonprofit corporation, to be known
as the ``Build America Corporation''. The Build America
Corporation is not an agency or establishment of the United
States Government. The purpose of the Corporation is to
support qualified projects described in section 4603(c)(2)
through the issuance of Build America bonds. The Corporation
shall be subject, to the extent consistent with this section,
to the laws of the State of Delaware applicable to
corporations not for profit.

SEC. 4603. FEDERAL BONDS FOR TRANSPORTATION INFRASTRUCTURE.

(a) Use of Bond Proceeds.--The proceeds from the sale of--

[[Page S1372]]

(1) 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), and
(2) any Build America bonds issued by the Build America
Corporation as authorized by section 4602,

may be used to fund a qualified project if the Secretary of
Transportation determines that the qualified project is a
cost-effective alternative for efficiently maximizing
mobility of individuals and goods.
(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
described in subsection (c)(1) 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--
(1) In general.--Except as provided in paragraph (2), 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.
(2) Build america corporation projects.--
(A) In general.--With respect to any Build America bonds
issued by the Build America Corporation as authorized by
section 4602, the term ``qualified project'' means any--
(i) qualified highway project,
(ii) qualified public transportation project, and
(iii) congestion relief project,

proposed by 1 or more States and approved by the Build
America Corporation, which meets the requirements under
clauses (i), (ii), and (iii) of subparagraph (D).
(B) Qualified highway project.--The term ``qualified
highway project'' means a project for highway facilities or
other facilities which are eligible for assistance under
title 23, United States Code.
(C) Qualified public transportation project.--The term
``qualified public transportation project'' means a project
for public transportation facilities or other facilities
which are eligible for assistance under chapter 53 of title
49, United States Code.
(D) Congestion relief project.--The term ``congestion
relief project'' means an intermodal freight transfer
facility, freight rail facility, freight movement corridor,
intercity passenger rail or facility, intercity bus vehicle
or facility, border crossing facility, or other public or
private facility approved as a congestion relief project by
the Secretary of Transportation. In making such approvals,
the Secretary of Transportation shall--
(i) consider the economic, environmental, mobility, and
national security improvements to be realized through the
project, and
(ii) give preference to projects with national or regional
significance, including any projects sponsored by a coalition
of States or a combination of States and private sector
entities, in terms of generating economic benefits,
supporting international commerce, or otherwise enhancing the
national transportation system.
(D) Additional requirements for qualified projects.--For
purposes of subparagraph (A)--
(i) Costs of qualified projects.--The requirement of this
clause is met if the costs of the qualified project funded by
Build America bonds only relate to capital investments in
depreciable assets and do not include any costs relating to
operations, maintenance, or rolling stock.
(ii) Applicability of federal law.--The requirement of this
clause is met if the requirements of any Federal law,
including titles 23, 40, and 49 of the United States Code,
which would otherwise apply to projects to which the United
States is a party or to funds made available under such law
and projects assisted with those funds are applied to--

(I) funds made available under Build America bonds for
similar qualified projects, and
(II) similar qualified projects assisted by the Build
America Corporation through the use of such funds.

(iii) Utilization of updated construction technology for
qualified projects.--The requirement of this clause is met if
the appropriate State agency relating to the qualified
project has updated its accepted construction technologies to
match a list prescribed by the Secretary of Transportation
and in effect on the date of the approval of the project as a
qualified project.

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
``(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

[[Page S1373]]

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.
``(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.
On page 738, strike lines 5 through 12 and insert the
following:

motor vehicles that became effective by December 31, 2002.
``(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, 2002, and has in
effect
Beginning on page 1005, line 22, strike all through page
1020, line 9, and insert the following:

SEC. 4602. ESTABLISHMENT OF BUILD AMERICA CORPORATION.

There is established a nonprofit corporation, to be known
as the ``Build America Corporation''. The Build America
Corporation is not an agency or establishment of the United
States Government. The purpose of the Corporation is to
support qualified projects described in section 4603(c)(2)
through the issuance of Build America bonds. The Corporation
shall be subject, to the extent consistent with this section,
to the laws of the State of Delaware applicable to
corporations not for profit.

SEC. 4603. FEDERAL BONDS FOR TRANSPORTATION INFRASTRUCTURE.

(a) Use of Bond Proceeds.--The proceeds from the sale of--
(1) 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), and
(2) any Build America bonds issued by the Build America
Corporation as authorized by section 4602,
may be used to fund a qualified project if the Secretary of
Transportation determines that

[[Page S1374]]

the qualified project is a cost-effective alternative for
efficiently maximizing mobility of individuals and goods.
(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
described in subsection (c)(1) 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--
(1) In general.--Except as provided in paragraph (2), 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.
(2) Build america corporation projects.--
(A) In general.--With respect to any Build America bonds
issued by the Build America Corporation as authorized by
section 4602, the term ``qualified project'' means any--
(i) qualified highway project,
(ii) qualified public transportation project, and
(iii) congestion relief project,
proposed by 1 or more States and approved by the Build
America Corporation, which meets the requirements under
clauses (i), (ii), and (iii) of subparagraph (D).
(B) Qualified highway project.--The term ``qualified
highway project'' means a project for highway facilities or
other facilities which are eligible for assistance under
title 23, United States Code.
(C) Qualified public transportation project.--The term
``qualified public transportation project'' means a project
for public transportation facilities or other facilities
which are eligible for assistance under chapter 53 of title
49, United States Code.
(D) Congestion relief project.--The term ``congestion
relief project'' means an intermodal freight transfer
facility, freight rail facility, freight movement corridor,
intercity passenger rail or facility, intercity bus vehicle
or facility, border crossing facility, or other public or
private facility approved as a congestion relief project by
the Secretary of Transportation. In making such approvals,
the Secretary of Transportation shall--
(i) consider the economic, environmental, mobility, and
national security improvements to be realized through the
project, and
(ii) give preference to projects with national or regional
significance, including any projects sponsored by a coalition
of States or a combination of States and private sector
entities, in terms of generating economic benefits,
supporting international commerce, or otherwise enhancing the
national transportation system.
(D) Additional requirements for qualified projects.--For
purposes of subparagraph (A)--
(i) Costs of qualified projects.--The requirement of this
clause is met if the costs of the qualified project funded by
Build America bonds only relate to capital investments in
depreciable assets and do not include any costs relating to
operations, maintenance, or rolling stock.
(ii) Applicability of federal law.--The requirement of this
clause is met if the requirements of any Federal law,
including titles 23, 40, and 49 of the United States Code,
which would otherwise apply to projects to which the United
States is a party or to funds made available under such law
and projects assisted with those funds are applied to--

(I) funds made available under Build America bonds for
similar qualified projects, and
(II) similar qualified projects assisted by the Build
America Corporation through the use of such funds.

(iii) Utilization of updated construction technology for
qualified projects.--The requirement of this clause is met if
the appropriate State agency relating to the qualified
project has updated its accepted construction technologies to
match a list prescribed by the Secretary of Transportation
and in effect on the date of the approval of the project as a
qualified project.

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
``(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

[[Page S1375]]

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.
``(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.
On page 389, between lines 15 and 16, insert the following:

SEC. 18__. PRIORITY FOR PEDESTRIAN AND BICYCLE FACILITY
ENHANCEMENT PROJECTS.

Section 133(e)(5) of title 23, United States Code, is
amended by adding at the end the following:
``(D) Priority pedestrian and bicycle facility enhancement
projects.--Among the pedestrian and bicycle facility
enhancement projects under consideration, the Secretary shall
urge that a priority be given to those pedestrian and bicycle
facility projects that include a coordinated physical or
healthy lifestyle program''.
On page 1027, strike lines 3 through 18, and insert the
following:
(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 certain
rail projects.--With respect to rail 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, except for any
rail project involving publicly owned rail facilities or any
rail project yielding a public benefit.''.
(h) Highway Trust Fund Expenditures for Highway Use Tax
Evasion Projects.--Section 9503(c), as amended by subsection
(g), is amended to add at the end the following new
paragraph:
``(7) Highway use tax evasion projects.--From amounts
available in the Highway Trust Fund, there is authorized to
be expended--
``(A) for each fiscal year after 2003 to the Internal
Revenue Service--
``(i) $30,000,000 for enforcement of fuel tax compliance,
including the per-certification of tax-exempt users,
``(ii) $10,000,000 for Xstars, and
``(iii) $10,000,000 for xfirs, and
``(B) for each fiscal year after 2003 to the Federal
Highway Administration, $50,000,000

[[Page S1376]]

to be allocated $1,000,000 to each State to combat fuel tax
evasion on the State level.''.
On page 1028, lines 3 and 4, strike ``paragraphs (3), (4),
(5), and (6) as paragraphs (2), (3), (4), and (5),
respectively.'' and insert ``paragraphs (3), (4), (5), (6),
and (7) as paragraphs (2), (3), (4), (5), and (6),
respectively.''
Beginning on page 1062, line 11, strike all through page
1064, line 2, and insert the following:

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.--
``(A) In general.--The Secretary shall pay annually from
the Airport and Airway Trust Fund into the Highway Trust Fund
an amount (as determined by him) equivalent to amounts
received in the Airport and Airway Trust Fund which are
attributable to fuel that is used primarily for highway
transportation purposes.
``(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.
On page 1081, between lines 19 and 20, insert the
following:

SEC. 5246. ELECTRONIC REPORTING.

(a) In General.--Section 4101(d), as amended by section
5273 of this Act, is amended by adding at the end the
following new sentence: ``Any person who is required to
report under this subsection and who has 25 or more
reportable transactions in a month shall file such report in
electronic format.''.
(b) Effective Date.--The amendments made by this section
shall apply on October 1, 2004.
On page 1298, strike lines 16 through 24 and insert the
following:

Subtitle H--Additional Revenue Provisions

PART I--ADMINISTRATIVE PROVISIONS

SEC. 5672. EXTENSION OF IRS USER FEES.

(a) In General.--Section 7528(c) (relating to termination)
is amended by striking ``December 31, 2004'' and inserting
``September 30, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to requests after the date of the enactment of
this Act.

SEC. 5673. CLARIFICATION OF RULES FOR PAYMENT OF ESTIMATED
TAX FOR CERTAIN DEEMED ASSET SALES.

(a) In General.--Paragraph (13) of section 338(h) (relating
to tax on deemed sale not taken into account for estimated
tax purposes) is amended by adding at the end the following:
``The preceding sentence shall not apply with respect to a
qualified stock purchase for which an election is made under
paragraph (10).''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to transactions occurring after the date of the
enactment of this Act.

SEC. 5674. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT
AGREEMENTS.

(a) In General.--
(1) Section 6159(a) (relating to authorization of
agreements) is amended--
(A) by striking ``satisfy liability for payment of'' and
inserting ``make payment on'', and
(B) by inserting ``full or partial'' after ``facilitate''.
(2) Section 6159(c) (relating to Secretary required to
enter into installment agreements in certain cases) is
amended in the matter preceding paragraph (1) by inserting
``full'' before ``payment''.
(b) Requirement To Review Partial Payment Agreements Every
Two Years.--Section 6159, as amended by this Act, is amended
by redesignating subsections (d), (e), and (f) as subsections
(e), (f), and (g), respectively, and inserting after
subsection (c) the following new subsection:
``(d) Secretary Required To Review Installment Agreements
for Partial Collection Every Two Years.--In the case of an
agreement entered into by the Secretary under subsection (a)
for partial collection of a tax liability, the Secretary
shall review the agreement at least once every 2 years.''.
(c) Effective Date.--The amendments made by this section
shall apply to agreements entered into on or after the date
of the enactment of this Act.

PART II--FINANCIAL INSTRUMENTS

SEC. 5675. TREATMENT OF STRIPPED INTERESTS IN BOND AND
PREFERRED STOCK FUNDS, ETC.

(a) In General.--Section 1286 (relating to tax treatment of
stripped bonds) is amended by redesignating subsection (f) as
subsection (g) and by inserting after subsection (e) the
following new subsection:
``(f) Treatment of Stripped Interests in Bond and Preferred
Stock Funds, Etc.--In the case of an account or entity
substantially all of the assets of which consist of bonds,
preferred stock, or a combination thereof, the Secretary may
by regulations provide that rules similar to the rules of
this section and 305(e), as appropriate, shall apply to
interests in such account or entity to which (but for this
subsection) this section or section 305(e), as the case may
be, would not apply.''.
(b) Cross Reference.--Subsection (e) of section 305 is
amended by adding at the end the following new paragraph:
``(7) Cross reference.--

``For treatment of stripped interests in certain accounts or entities
holding preferred stock, see section 1286(f).''.

(c) Effective Date.--The amendments made by this section
shall apply to purchases and dispositions after the date of
the enactment of this Act.

SEC. 5676. APPLICATION OF EARNINGS STRIPPING RULES TO
PARTNERSHIPS AND S CORPORATIONS.

(a) In General.--Section 168(j) (relating to limitation on
deduction for interest on certain indebtedness) is amended by
redesignating paragraph (8) as paragraph (9) and by inserting
after paragraph (7) the following new paragraph:
``(8) Application to partnerships and s corporations.--
``(A) In general.--This subsection shall apply to
partnerships and S corporations in the same manner as it
applies to C corporations.
``(B) Allocations to certain corporate partners.--If a C
corporation is a partner in a partnership--
``(i) the corporation's allocable share of indebtedness and
interest income of the partnership shall be taken into
account in applying this subsection to the corporation, and
``(ii) if a deduction is not disallowed under this
subsection with respect to any interest expense of the
partnership, this subsection shall be applied separately in
determining whether a deduction is allowable to the
corporation with respect to the corporation's allocable share
of such interest expense.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 5677. RECOGNITION OF CANCELLATION OF INDEBTEDNESS INCOME
REALIZED ON SATISFACTION OF DEBT WITH
PARTNERSHIP INTEREST.

(a) In General.--Paragraph (8) of section 108(e) (relating
to general rules for discharge of indebtedness (including
discharges not in title 11 cases or insolvency)) is amended
to read as follows:
``(8) Indebtedness satisfied by corporate stock or
partnership interest.--For purposes of determining income of
a debtor from discharge of indebtedness, if--
``(A) a debtor corporation transfers stock, or
``(B) a debtor partnership transfers a capital or profits
interest in such partnership,
to a creditor in satisfaction of its recourse or nonrecourse
indebtedness, such corporation or partnership shall be
treated as having satisfied the indebtedness with an amount
of money equal to the fair market value of the stock or
interest. In the case of any partnership, any discharge of
indebtedness income recognized under this paragraph shall be
included in the distributive shares of taxpayers which were
the partners in the partnership immediately before such
discharge.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to cancellations of indebtedness
occurring on or after the date of the enactment of this Act.

SEC. 5678. MODIFICATION OF STRADDLE RULES.

(a) Rules Relating to Identified Straddles.--
(1) In general.--Subparagraph (A) of section 1092(a)(2)
(relating to special rule for identified straddles) is
amended to read as follows:
``(A) In general.--In the case of any straddle which is an
identified straddle--
``(i) paragraph (1) shall not apply with respect to
identified positions comprising the identified straddle,
``(ii) if there is any loss with respect to any identified
position of the identified straddle, the basis of each of the
identified offsetting positions in the identified straddle
shall be increased by an amount which bears the same ratio to
the loss as the unrecognized gain with respect to such
offsetting position bears to the aggregate unrecognized gain
with respect to all such offsetting positions, and
``(iii) any loss described in clause (ii) shall not
otherwise be taken into account for purposes of this
title.''.
(2) Identified straddle.--Section 1092(a)(2)(B) (defining
identified straddle) is amended--
(A) by striking clause (ii) and inserting the following:
``(ii) to the extent provided by regulations, the value of
each position of which (in the hands of the taxpayer
immediately before the creation of the straddle) is not less
than the basis of such position in the hands of the taxpayer
at the time the straddle is created, and'', and
(B) by adding at the end the following new flush sentence:
``The Secretary shall prescribe regulations which specify the
proper methods for clearly

[[Page S1377]]

identifying a straddle as an identified straddle (and the
positions comprising such straddle), which specify the rules
for the application of this section for a taxpayer which
fails to properly identify the positions of an identified
straddle, and which specify the ordering rules in cases where
a taxpayer disposes of less than an entire position which is
part of an identified straddle.''.
(3) Unrecognized gain.--Section 1092(a)(3) (defining
unrecognized gain) is amended by redesignating subparagraph
(B) as subparagraph (C) and by inserting after subparagraph
(A) the following new subparagraph:
``(B) Special rule for identified straddles.--For purposes
of paragraph (2)(A)(ii), the unrecognized gain with respect
to any identified offsetting position shall be the excess of
the fair market value of the position at the time of the
determination over the fair market value of the position at
the time the taxpayer identified the position as a position
in an identified straddle.''
(4) Conforming amendment.--Section 1092(c)(2) is amended by
striking subparagraph (B) and by redesignating subparagraph
(C) as subparagraph (B).
(b) Physically Settled Positions.--Section 1092(d)
(relating to definitions and special rules) is amended by
adding at the end the following new paragraph:
``(8) Special rules for physically settled positions.--For
purposes of subsection (a), if a taxpayer settles a position
which is part of a straddle by delivering property to which
the position relates (and such position, if terminated, would
result in a realization of a loss), then such taxpayer shall
be treated as if such taxpayer--
``(A) terminated the position for its fair market value
immediately before the settlement, and
``(B) sold the property so delivered by the taxpayer at its
fair market value.''.
(c) Repeal of Stock Exception.--
(1) In general.--Section 1092(d)(3) is repealed.
(2) Conforming amendment.--Section 1258(d)(1) is amended by
striking ``; except that the term `personal property' shall
include stock''.
(d) Repeal of Qualified Covered Call Exception.--Section
1092(c)(4) is amended by adding at the end the following new
subparagraph:
``(I) Termination.--This paragraph shall not apply to any
position established on or after the date of the enactment of
this subparagraph.''.
(e) Effective Date.--The amendments made by this section
shall apply to positions established on or after the date of
the enactment of this Act.

SEC. 5679. DENIAL OF INSTALLMENT SALE TREATMENT FOR ALL
READILY TRADEABLE DEBT.

(a) In General.--Section 453(f)(4)(B) (relating to
purchaser evidences of indebtedness payable on demand or
readily tradeable) is amended by striking ``is issued by a
corporation or a government or political subdivision thereof
and''.
(b) Effective Date.--The amendment made by this section
shall apply to sales occurring on or after the date of the
enactment of this Act.

PART III--CORPORATIONS AND PARTNERSHIPS

SEC. 5680. MODIFICATION OF TREATMENT OF TRANSFERS TO
CREDITORS IN DIVISIVE REORGANIZATIONS.

(a) In General.--Section 361(b)(3) (relating to treatment
of transfers to creditors) is amended by adding at the end
the following new sentence: ``In the case of a reorganization
described in section 368(a)(1)(D) with respect to which stock
or securities of the corporation to which the assets are
transferred are distributed in a transaction which qualifies
under section 355, this paragraph shall apply only to the
extent that the sum of the money and the fair market value of
other property transferred to such creditors does not exceed
the adjusted bases of such assets transferred.''.
(b) Liabilities in Excess of Basis.--Section 357(c)(1)(B)
is amended by inserting ``with respect to which stock or
securities of the corporation to which the assets are
transferred are distributed in a transaction which qualifies
under section 355'' after ``section 368(a)(1)(D)''.
(c) Effective Date.--The amendments made by this section
shall apply to transfers of money or other property, or
liabilities assumed, in connection with a reorganization
occurring on or after the date of the enactment of this Act.

SEC. 5681. CLARIFICATION OF DEFINITION OF NONQUALIFIED
PREFERRED STOCK.

(a) In General.--Section 351(g)(3)(A) is amended by adding
at the end the following: ``Stock shall not be treated as
participating in corporate growth to any significant extent
unless there is a real and meaningful likelihood of the
shareholder actually participating in the earnings and growth
of the corporation.''.
(b) Effective Date.--The amendment made by this section
shall apply to transactions after May 14, 2003.

SEC. 5682. MODIFICATION OF DEFINITION OF CONTROLLED GROUP OF
CORPORATIONS.

(a) In General.--Section 1563(a)(2) (relating to brother-
sister controlled group) is amended by striking
``possessing--'' and all that follows through ``(B)'' and
inserting ``possessing''.
(b) Application of Existing Rules to Other Code
Provisions.--Section 1563(f) (relating to other definitions
and rules) is amended by adding at the end the following new
paragraph:
``(5) Brother-sister controlled group definition for
provisions other than this part.--
``(A) In general.--Except as specifically provided in an
applicable provision, subsection (a)(2) shall be applied to
an applicable provision as if it read as follows:
`(2) Brother-sister controlled group.--Two or more
corporations if 5 or fewer persons who are individuals,
estates, or trusts own (within the meaning of subsection
(d)(2) stock possessing--
`(A) at least 80 percent of the total combined voting power
of all classes of stock entitled to vote, or at least 80
percent of the total value of shares of all classes of stock,
of each corporation, and
`(B) more than 50 percent of the total combined voting
power of all classes of stock entitled to vote or more than
50 percent of the total value of shares of all classes of
stock of each corporation, taking into account the stock
ownership of each such person only to the extent such stock
ownership is identical with respect to each such
corporation.'
``(B) Applicable provision.--For purposes of this
paragraph, an applicable provision is any provision of law
(other than this part) which incorporates the definition of
controlled group of corporations under subsection (a).''.
(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. 5683. MANDATORY BASIS ADJUSTMENTS IN CONNECTION WITH
PARTNERSHIP DISTRIBUTIONS AND TRANSFERS OF
PARTNERSHIP INTERESTS.

(a) In General.--Section 754 is repealed.
(b) Adjustment to Basis of Undistributed Partnership
Property.--Section 734 is amended--
(1) by striking ``, with respect to which the election
provided in section 754 is in effect,'' in the matter
preceding paragraph (1) of subsection (b),
(2) by striking ``(as adjusted by section 732(d))'' both
places it appears in subsection (b),
(3) by striking the last sentence of subsection (b),
(4) by striking subsection (a) and by redesignating
subsections (b) and (c) as subsections (a) and (b),
respectively, and
(5) by striking ``optional'' in the heading.
(c) Adjustment to Basis of Partnership Property.--Section
743 is amended--
(1) by striking ``with respect to which the election
provided in section 754 is in effect'' in the matter
preceding paragraph (1) of subsection (b),
(2) by striking subsection (a) and by redesignating
subsections (b) and (c) as subsections (a) and (b),
respectively,
(3) by adding at the end the following new subsection:
``(c) Election to Adjust Basis for Transfers Upon Death of
Partner.--Subsection (a) shall not apply and no adjustments
shall be made in the case of any transfer of an interest in a
partnership upon the death of a partner unless an election to
do so is made by the partnership. Such an election shall
apply with respect to all such transfers of interests in the
partnership. Any election under section 754 in effect on the
date of the enactment of this subsection shall constitute an
election made under this subsection. Such election may be
revoked by the partnership, subject to such limitations as
may be provided by regulations prescribed by the
Secretary.'', and
(4) by striking ``optional'' in the heading.
(d) Conforming Amendments.--
(1) Subsection (d) of section 732 is repealed.
(2) Section 755(a) is amended--
(A) by striking ``section 734(b) (relating to the optional
adjustment'' and inserting ``section 734(a) (relating to the
adjustment'', and
(B) by striking ``section 743(b) (relating to the optional
adjustment'' and inserting ``section 743(a) (relating to the
adjustment''.
(3) Section 761(e)(2) is amended by striking ``optional''.
(4) Section 774(a) is amended by striking ``743(b)'' both
places it appears and inserting ``743(a)''.
(5) The item relating to section 734 in the table of
sections for subpart B of part II of subchapter K of chapter
1 is amended by striking ``Optional''.
(6) The item relating to section 743 in the table of
sections for subpart C of part II of subchapter K of chapter
1 is amended by striking ``Optional''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to transfers and
distributions made after the date of the enactment of this
Act.
(2) Repeal of section 732(d).--The amendments made by
subsections (b)(2) and (d)(1) shall apply to--
(A) except as provided in subparagraph (B), transfers made
after the date of the enactment of this Act, and
(B) in the case of any transfer made on or before such date
to which section 732(d) applies, distributions made after the
date which is 2 years after such date of enactment.

SEC. 5685. CLASS LIVES FOR UTILITY GRADING COSTS.

(a) Gas Utility Property.--Section 168(e)(3)(E) (defining
15-year property) is amended by striking ``and'' at the end
of

[[Page S1378]]

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) initial clearing and grading land improvements with
respect to gas utility property.''.
(b) Electric Utility Property.--Section 168(e)(3) is
amended by adding at the end the following new subparagraph:
``(F) 20-year property.--The term `20-year property' means
initial clearing and grading land improvements with respect
to any electric utility transmission and distribution
plant.''.
(c) Conforming Amendments.--The table contained in section
168(g)(3)(B) is amended--
(1) by inserting ``or (E)(iv)'' after ``(E)(iii)'', and
(2) by adding at the end the following new item:

``(F).......................................................25''.....

(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 5686. CONSISTENT AMORTIZATION OF PERIODS FOR
INTANGIBLES.

(a) Start-Up Expenditures.--
(1) Allowance of deduction.--Paragraph (1) of section
195(b) (relating to start-up expenditures) is amended to read
as follows:
``(1) Allowance of deduction.--If a taxpayer elects the
application of this subsection with respect to any start-up
expenditures--
``(A) the taxpayer shall be allowed a deduction for the
taxable year in which the active trade or business begins in
an amount equal to the lesser of--
``(i) the amount of start-up expenditures with respect to
the active trade or business, or
``(ii) $5,000, reduced (but not below zero) by the amount
by which such start-up expenditures exceed $50,000, and
``(B) the remainder of such start-up expenditures shall be
allowed as a deduction ratably over the 180-month period
beginning with the month in which the active trade or
business begins.''.
(2) Conforming amendment.--Subsection (b) of section 195 is
amended by striking ``Amortize'' and inserting ``Deduct'' in
the heading.
(b) Organizational Expenditures.--Subsection (a) of section
248 (relating to organizational expenditures) is amended to
read as follows:
``(a) Election To Deduct.--If a corporation elects the
application of this subsection (in accordance with
regulations prescribed by the Secretary) with respect to any
organizational expenditures--
``(1) the corporation shall be allowed a deduction for the
taxable year in which the corporation begins business in an
amount equal to the lesser of--
``(A) the amount of organizational expenditures with
respect to the taxpayer, or
``(B) $5,000, reduced (but not below zero) by the amount by
which such organizational expenditures exceed $50,000, and
``(2) the remainder of such organizational expenditures
shall be allowed as a deduction ratably over the 180-month
period beginning with the month in which the corporation
begins business.''.
(c) Treatment of Organizational and Syndication Fees or
Partnerships.--
(1) In general.--Section 709(b) (relating to amortization
of organization fees) is amended by redesignating paragraph
(2) as paragraph (3) and by amending paragraph (1) to read as
follows:
``(1) Allowance of deduction.--If a taxpayer elects the
application of this subsection (in accordance with
regulations prescribed by the Secretary) with respect to any
organizational expenses--
``(A) the taxpayer shall be allowed a deduction for the
taxable year in which the partnership begins business in an
amount equal to the lesser of--
``(i) the amount of organizational expenses with respect to
the partnership, or
``(ii) $5,000, reduced (but not below zero) by the amount
by which such organizational expenses exceed $50,000, and
``(B) the remainder of such organizational expenses shall
be allowed as a deduction ratably over the 180-month period
beginning with the month in which the partnership begins
business.
``(2) Dispositions before close of amortization period.--In
any case in which a partnership is liquidated before the end
of the period to which paragraph (1)(B) applies, any deferred
expenses attributable to the partnership which were not
allowed as a deduction by reason of this section may be
deducted to the extent allowable under section 165.''.
(2) Conforming amendment.--Subsection (b) of section 709 is
amended by striking ``Amortization'' and inserting
``Deduction'' in the heading.
(d) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
On page 521, strike line 18 and all that follows through
the matter following line 18 on page 720, and insert the
following:

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, which are
coordinated with other modes of transportation, 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 and intercity rail 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;
``(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

[[Page S1379]]

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 bus or 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 and programs.--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 and programs for metropolitan planning areas of the
State in which it is located.
``(2) Contents.--The plans and programs 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 and programs 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 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

[[Page S1380]]

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 (including
the protection of habitat, water quality, and agricultural
and forest land, while minimizing invasive species),
promoting energy conservation, and promoting consistency
between transportation improvements and State and local land
use planning and economic development patterns (including
minimizing adverse health effects from mobile source air
pollution and promoting the linkage of the transportation and
development goals of the metropolitan area);
``(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 and efficient use of the
existing transportation system, including services provided
by public and private operators.
``(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 to consider.
``(3) 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 a transportation plan for its metropolitan
planning area in accordance with this subsection, and update
such plan--
``(i) not less frequently than once every 4 years 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 as attainment, in
accordance with paragraph (3) of such section, with a
maintenance plan under section 175A of the Clean Air Act (42
U.S.C. 7505a); or
``(ii) not less frequently than once every 5 years in areas
designated as attainment, as defined in section 107(d) of the
Clean Air Act.
``(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) Mitigation activities.--
``(A) In general.--A transportation plan under this
subsection 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.
``(B) Consultation.--The discussion described in
subparagraph (A) shall be developed in consultation with
Federal and State tribal wildlife, land management, and
regulatory agencies.
``(3) 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, transit, multimodal and intermodal
facilities, intermodal connectors, and other relevant
facilities identified by the metropolitan planning
organization, which 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.
``(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;
``(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.

[[Page S1381]]

``(5) 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.
``(6) Approval of the transportation plan.--Each
transportation plan prepared by a metropolitan planning
organization shall be--
``(A) approved by the metropolitan planning organization;
and
``(B) submitted to the Governor for information purposes at
such time and in such manner as the Secretary may reasonably
require.
``(i) Participation by Interested Parties.--
``(1) Development of participation plan.--Not less
frequently than every 4 years, each metropolitan planning
organization shall develop and adopt a plan for participation
in the process for developing the metropolitan transportation
plan and programs by--
``(A) citizens;
``(B) affected public agencies;
``(C) representatives of public transportation employees;
``(D) freight shippers;
``(E) providers of freight transportation services;
``(F) private providers of transportation;
``(G) representatives of users of public transit;
``(H) representatives of users of pedestrian walkways and
bicycle transportation facilities; and
``(I) other interested parties.
``(2) Contents of participation plan.--The participation
plan--
``(A) shall be developed in a manner the Secretary
determines to be appropriate;
``(B) shall be developed in consultation with all
interested parties; and
``(C) 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.
``(3) Methods.--The participation plan shall provide that
the metropolitan planning organization shall, to the maximum
extent practicable--
``(A) hold any public meetings at convenient and accessible
locations and times;
``(B) employ visualization techniques to describe plans;
and
``(C) make public information available in electronically
accessible format and means, such as the World Wide Web.
``(4) Certification.--Before the metropolitan planning
organizations approve a transportation plan or program, each
metropolitan planning organization shall certify that it has
complied with the requirements of the participation plan it
has adopted.
``(j) Transportation Improvement Program.--
``(1) Development and update.--
``(A) In general.--In cooperation with the State and
affected operators of public transportation, a metropolitan
planning organization designated for a metropolitan planning
area shall develop a transportation improvement program for
the area.
``(B) Participation.--In developing the transportation
improvement program, the metropolitan planning organization,
in cooperation with the Governor and any affected operator of
public transportation, shall provide an opportunity for
participation by interested parties in the development of the
program, in accordance with subsection (i).
``(C) Updates.--The transportation improvement program
shall be updated not less than once every 4 years and shall
be approved by the metropolitan planning organization and the
Governor.
``(D) Funding estimate.--In developing the transportation
improvement program, the metropolitan planning organization,
operators of public transportation, and the State shall
cooperatively develop estimates of funds that are reasonably
expected to be available to support program implementation.
``(E) Project advancement.--Projects listed in the
transportation improvement program may be selected for
advancement consistent with the project selection
requirements.
``(F) Major amendments.--Major amendments to the list
described in subparagraph (E), 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.
``(2) Included projects.--
``(A) Projects under chapter 1 of title 23 and this
chapter.--A transportation improvement program 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 improvement program.
``(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 improvement program.
``(3) Selection of projects.--
``(A) In general.--Except as otherwise provided under
subsection (k)(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, a project may be advanced from
the transportation improvement program in place of another
project in the same transportation improvement program
without the approval of the Secretary.
``(4) Publication requirements.--
``(A) Publication of transportation improvement program.--A
transportation improvement program involving Federal
participation shall be published or otherwise made readily
available by the metropolitan planning organization for
public review, including, to the maximum extent practicable,
in electronically accessible formats and means, such as the
World Wide Web.
``(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
4 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 transportation improvement program.
``(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.
``(k) 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 and programs.--Transportation
plans and programs 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 improvement program 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

[[Page S1382]]

selected for implementation from the approved transportation
improvement program 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 4 years in nonattainment and
maintenance areas (as defined under the Clean Air Act) and
not less frequently than once every 5 years in attainment
areas (as defined under such Act), 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 and a transportation
improvement program for the metropolitan planning area have
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.
``(l) 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 and
transportation improvement program 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.).
``(m) 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).
``(n) 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.
``(o) 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.
``(p) Continuation of Current Review Practice.--Any
decision by the Secretary concerning a plan or program
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.--
``(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 (including the
protection of habitat, water quality, and agricultural and
forest land, while minimizing invasive species), 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 (including minimizing adverse health effects
from mobile source air pollution and promoting the linkage of
the transportation and development goals of the State);
``(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 and efficient use of the
existing transportation system.
``(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.
``(3) Mitigation activities.--
``(A) In general.--A transportation plan under this
subsection 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.
``(B) Consultation.--The discussion described in
subparagraph (A) shall be developed in consultation with
Federal and State tribal wildlife, land management, and
regulatory agencies.
``(4) Failure to consider factors.--The failure to consider
any factor described 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.--

[[Page S1383]]

``(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.
``(D) Consultation, comparison, and consideration.--
``(i) In general.--The 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.

``(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) 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.
``(4) Mitigation activities.--
``(A) In general.--A 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 described in
subparagraph (A) shall be developed in consultation with
Federal and State tribal wildlife, land management, and
regulatory agencies.
``(5) Transportation strategies.--A Plan shall identify
transportation strategies necessary to efficiently serve the
mobility needs of people.
``(6) 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.
``(7) 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 (6)(D).
``(8) 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.
``(9) Publication of long-range transportation plans.--Each
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.
``(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 4
years, identify projects by year, be fiscally constrained by
year, and be updated not less than once every 4 years.
``(ii) Publication.--An annual listing of projects for
which funds have been obligated in the preceding 4 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 each
metropolitan transportation improvement program.
``(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 approved metropolitan
transportation improvement program; 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
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).

[[Page S1384]]

``(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 4 years.
``(7) Planning finding.--Not less frequently than once
every 4 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 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:

[[Page S1385]]

``(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--
``(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 or

[[Page S1386]]

subrecipient 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 or subrecipient 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.
``(D) Statewide transit provider grantees.--A statewide
transit provider that receives a grant under this section
shall be subject to the terms, conditions, requirements, and
provisions of this section or section 5311, consistent with
the scope and purpose of the grant and the location of the
project.''; 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 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 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 and positive impacts on
the capacity, utilization, or longevity of other surface
transportation assets and facilities;
``(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 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).''.

[[Page S1387]]

(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.
``(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

[[Page S1388]]

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).
``(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

[[Page S1389]]

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 or
Indian tribe 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 or intercity bus
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; and
``(ii) the program provides the maximum feasible
coordination of public transportation service assisted under
this section with transportation service assisted by other
Federal sources.'';
(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;
``(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) Public transportation on indian reservations.--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, the following amounts shall be apportioned for grants
to Indian tribes for any purpose eligible under this section,
under such terms and conditions as may be established by the
Secretary:
``(A) $6,000,000 for fiscal year 2005.
``(B) $8,000,000 for fiscal year 2006.
``(C) $10,000,000 for fiscal year 2007.
``(D) $12,000,000 for fiscal year 2008.
``(E) $15,000,000 for fiscal year 2009.
``(2) Remaining amounts.--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 that are not
apportioned under paragraph (1)--
``(A) 20 percent shall be apportioned to the States in
accordance with paragraph (3); and
``(B) 80 percent shall be apportioned to the States in
accordance with paragraph (4).
``(3) 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 (2)(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.
``(4) Apportionments based on population in nonurbanized
areas.--Each State shall receive an amount equal to the
amount apportioned under paragraph (2)(B) multiplied

[[Page S1390]]

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.''.
(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.'';
(D) in paragraph (4)--
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraph (C) as subparagraph (B);
and
(E) by adding at the end the following:
``(6) Medical transportation demonstration grants.--
``(A) Grants authorized.--The Secretary may award
demonstration grants, from funds made available under
paragraph (1), to eligible entities to provide transportation
services to individuals to access dialysis treatments and
other medical treatments for renal disease.
``(B) Eligible entities.--An entity shall be eligible to
receive a grant under this paragraph if the entity--
``(i) meets the conditions described in section 501(c)(3)
of the Internal Revenue Code of 1986; or
``(ii) is an agency of a State or unit of local government.
``(C) Use of funds.--Grant funds received under this
paragraph may be used to provide transportation services to
individuals to access dialysis treatments and other medical
treatments for renal disease.
``(D) Application.--
``(i) In general.--Each eligible entity desiring a grant
under this paragraph shall submit an application to the
Secretary at such time, at such place, and containing such
information as the Secretary may reasonably require.
``(ii) Selection of grantees.--In awarding grants under
this paragraph, the Secretary shall give preference to
eligible entities from communities with--

``(I) high incidence of renal disease; and
``(II) limited access to dialysis facilities.

``(E) Rulemaking.--The Secretary shall issue regulations to
implement and administer the grant program established under
this paragraph.
``(F) Report.--The Secretary shall submit a report on the
results of the demonstration projects funded under this
paragraph to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives.''; 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 under
subsection (a) or section 5312, 5313,

[[Page S1391]]

5315, or 5322, the Secretary shall establish a Federal share
consistent with such benefit.''.
(c) National Technical Assistance Center for Senior
Transportation; Alternative Fuels Study.--Section 5314 is
amended by adding at the end the following:
``(c) National Technical Assistance Center for Senior
Transportation.--
``(1) Establishment.--The Secretary shall award grants to a
national not-for-profit organization for the establishment
and maintenance of a national technical assistance center.
``(2) Eligibility.--An organization shall be eligible to
receive the grant under paragraph (1) if the organization--
``(A) focuses significantly on serving the needs of the
elderly;
``(B) has demonstrated knowledge and expertise in senior
transportation policy and planning issues;
``(C) has affiliates in a majority of the States;
``(D) has the capacity to convene local groups to consult
on operation and development of senior transportation
programs; and
``(E) has established close working relationships with the
Federal Transit Administration and the Administration on
Aging.
``(3) Use of funds.--The national technical assistance
center established under this section shall--
``(A) gather best practices from throughout the country and
provide such practices to local communities that are
implementing senior transportation programs;
``(B) work with teams from local communities to identify
how they are successfully meeting the transportation needs of
senior and any gaps in services in order to create a plan for
an integrated senior transportation program;
``(C) provide resources on ways to pay for senior
transportation services;
``(D) create a web site to publicize and circulate
information on senior transportation programs;
``(E) establish a clearinghouse for print, video, and audio
resources on senior mobility; and
``(F) administer the demonstration grant program
established under paragraph (4).
``(4) Grants authorized.--
``(A) In general.--The national technical assistance center
established under this section, in consultation with the
Federal Transit Administration, shall award senior
transportation demonstration grants to--
``(i) local transportation organizations;
``(ii) State agencies;
``(iii) units of local government; and
``(iv) nonprofit organizations.
``(B) Use of funds.--Grant funds received under this
paragraph may be used to--
``(i) evaluate the state of transportation services for
senior citizens;
``(ii) recognize barriers to mobility that senior citizens
encounter in their communities;
``(iii) establish partnerships and promote coordination
among community stakeholders, including public, not-for-
profit, and for-profit providers of transportation services
for senior citizens;
``(iv) identify future transportation needs of senior
citizens within local communities; and
``(v) establish strategies to meet the unique needs of
healthy and frail senior citizens.
``(C) Selection of grantees.--The Secretary shall select
grantees under this subsection based on a fair representation
of various geographical locations throughout the United
States.
``(5) Allocations.--From the funds made available for each
fiscal year under subsections (a)(5)(C)(iv) and (b)(2)(G)(iv)
of section 5338, $3,000,000 shall be allocated to carry out
this subsection.
``(d) Alternative Fuels Study.--
``(1) Study.--The Secretary shall conduct a study of the
actions necessary to facilitate the purchase of increased
volumes of alternative fuels (as defined in section 301 of
the Energy Policy Act of 1992 (42 U.S.C. 13211)) for use in
public transit vehicles
``(2) Scope of study.--The study conducted under this
subsection shall focus on the incentives necessary to
increase the use of alternative fuels in public transit
vehicles, including buses, fixed guideway vehicles, and
ferries.
``(3) Contents.--The study shall consider--
``(A) the environmental benefits of increased use of
alternative fuels in transit vehicles;
``(B) existing opportunities available to transit system
operators that encourage the purchase of alternative fuels
for transit vehicle operation;
``(C) existing barriers to transit system operators that
discourage the purchase of alternative fuels for transit
vehicle operation, including situations where alternative
fuels that do not require capital improvements to transit
vehicles are disadvantaged over fuels that do require such
improvements; and
``(D) the necessary levels and type of support necessary to
encourage additional use of alternative fuels for transit
vehicle operation.
``(4) Recommendations.--The study shall recommend
regulatory and legislative alternatives that will result in
the increased use of alternative fuels in transit vehicles.
``(5) Report.--Not later than 1 year after the date of
enactment of the Federal Public Transportation Act of 2004,
the Secretary shall submit the study completed under this
subsection to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives''.
(c) 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.

[[Page S1392]]

``(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
``(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.''.

[[Page S1393]]

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 (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--

[[Page S1394]]

(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.
``(d) Public Transportation Security.--
``(1) In general.--Not later than 90 days after the date of
enactment of the Federal Public Transportation Act of 2004,
the Secretary shall enter into a memorandum of understanding
with the Secretary of Homeland Security to define and clarify
the respective roles and responsibilities of the Department
of Transportation and the Department of Homeland Security
relating to public transportation security.
``(2) Contents.--The memorandum of understanding described
in paragraph (1) shall--
``(A) establish national security standards for public
transportation agencies;
``(B) establish funding priorities for grants from the
Department of Homeland Security to public transportation
agencies;
``(C) create a method of coordination with public
transportation agencies on security matters; and
``(D) address any other issues determined to be appropriate
by the Secretary and the Secretary of Homeland Security.''.
(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 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 ``, provided that--
``(A) the protective period shall not exceed 4 years; and
``(B) the separation allowance shall 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.
``(6) Nothing in this subsection shall affect the level of
protection provided to freight railroad employees.''.

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)''.

[[Page S1395]]

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).
``(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

[[Page S1396]]

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;
``(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. Such forecast shall be based on the population trend
for each State between the most recent decennial census and
the most recent estimate of population made by the Secretary
of Commerce.
``(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

[[Page S1397]]

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:
``(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

[[Page S1398]]

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, 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

[[Page S1399]]

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. DISADVANTAGED BUSINESS ENTERPRISE.

Section 1101(b) of the Transportation Equity Act of the
21st Century shall apply to all funds authorized or otherwise
made available under this title.

SEC. 3045. 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 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.

[[Page S1400]]

``5573. Assurance of access to intermodal facilities.
``5574. Intercity bus intermodal facility grants.
``5575. Funding.''.
Beginning on page 1309 strike lines 17 thru page 1310 line
1 and insert the following:
(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, $7,265,877,000;
(2) for fiscal year 2005, $8,650,000,000;
(3) for fiscal year 2006, $9,085,123,000;
(4) for fiscal year 2007, $9,600,000,000;
(5) for fiscal year 2008, $10,490,000,000 and
(6) for fiscal year 2009, $11,430,000,000.

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