[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1072 Public Print (PP)]
February 26, 2004
Ordered to be printed as passed
108th CONGRESS
2d Session
S. 1072
_______________________________________________________________________
AN ACT
To authorize funds for Federal-aid highways, highway safety programs,
and transit programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. General definitions.
Sec. 3. Definitions for title 23.
TITLE I--FEDERAL-AID HIGHWAYS
Subtitle A--Funding
Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Equity bonus programs.
Sec. 1105. Revenue aligned budget authority.
Subtitle B--New Programs
Sec. 1201. Infrastructure performance and maintenance program.
Sec. 1202. Future of surface transportation system.
Sec. 1203. Freight transportation gateways; freight intermodal
connections.
Sec. 1204. Construction of ferry boats and ferry terminal and
maintenance facilities; coordination of
ferry construction and maintenance.
Sec. 1205. Designation of Daniel Patrick Moynihan Interstate Highway.
Sec. 1206. State-by-State comparison of highway construction costs.
Subtitle C--Finance
Sec. 1301. Federal share.
Sec. 1302. Transfer of highway and transit funds.
Sec. 1303. Transportation Infrastructure Finance and Innovation Act
Amendments.
Sec. 1304. Facilitation of international registration plans and
international fuel tax agreements.
Sec. 1305. National Commission on Future Revenue Sources to Support the
Highway Trust Fund and Finance the Needs of
the Surface Transportation System.
Sec. 1306. State infrastructure banks.
Sec. 1307. Public-private partnerships pilot program.
Sec. 1308. Wagering.
Subtitle D--Safety
Sec. 1401. Highway safety improvement program.
Sec. 1402. Operation lifesaver.
Sec. 1403. License suspension.
Sec. 1404. Bus axle weight exemption.
Sec. 1405. Safe routes to schools program.
Sec. 1406. Purchases of equipment.
Sec. 1407. Workzone safety.
Sec. 1408. Worker injury prevention and free flow of vehicular traffic.
Sec. 1409. Identity authentication standards.
Sec. 1410. Open container requirements.
Subtitle E--Environmental Planning and Review
Chapter 1--Transportation Planning
Sec. 1501. Integration of natural resource concerns into State and
metropolitan transportation planning.
Sec. 1502. Consultation between transportation agencies and resource
agencies in transportation planning.
Sec. 1503. Integration of natural resource concerns into transportation
project planning.
Sec. 1504. Public involvement in transportation planning and projects.
Sec. 1505. Project mitigation.
Chapter 2--Transportation Project Development Process
Sec. 1511. Transportation project development process.
Sec. 1512. Assumption of responsibility for categorical exclusions.
Sec. 1513. Surface transportation project delivery pilot program.
Sec. 1514. Parks, recreation areas, wildlife and waterfowl refuges, and
historic sites.
Sec. 1515. Regulations.
Chapter 3--Miscellaneous
Sec. 1521. Critical real property acquisition.
Sec. 1522. Planning capacity building initiative.
Subtitle F--Environment
Sec. 1601. Environmental restoration and pollution abatement; control
of invasive plant species and establishment
of native species.
Sec. 1602. National scenic byways program.
Sec. 1603. Recreational trails program.
Sec. 1604. Exemption of Interstate System.
Sec. 1605. Standards.
Sec. 1606. Use of high occupancy vehicle lanes.
Sec. 1607. Bicycle transportation and pedestrian walkways.
Sec. 1608. Idling reduction facilities in Interstate rights-of-way.
Sec. 1609. Toll programs.
Sec. 1610. Federal reference method.
Sec. 1611. Addition of particulate matter areas to CMAQ.
Sec. 1612. Addition to CMAQ-eligible projects.
Sec. 1613. Improved interagency consultation.
Sec. 1614. Evaluation and assessment of CMAQ projects.
Sec. 1615. Synchronized planning and conformity timelines,
requirements, and horizon.
Sec. 1616. Transition to new air quality standards.
Sec. 1617. Reduced barriers to air quality improvements.
Sec. 1618. Air quality monitoring data influenced by exceptional
events.
Sec. 1619. Conforming amendments.
Sec. 1620. Highway stormwater discharge mitigation program.
Sec. 1621. Exemption from certain hazardous materials transportation
requirements.
Sec. 1622. Funds for rebuilding fish stocks.
Subtitle G--Operations
Sec. 1701. Transportation systems management and operations.
Sec. 1702. Real-time system management information program.
Sec. 1703. Contracting for engineering and design services.
Sec. 1704. Off-duty time for drivers of commercial vehicles.
Sec. 1705. Designation of transportation management areas.
Subtitle H--Federal-Aid Stewardship
Sec. 1801. Future Interstate System routes.
Sec. 1802. Stewardship and oversight.
Sec. 1803. Design-build contracting.
Sec. 1804. Program efficiencies--finance.
Sec. 1805. Set-asides for interstate discretionary projects.
Sec. 1806. Federal lands highways program.
Sec. 1807. Highway bridge program.
Sec. 1808. Appalachian development highway system.
Sec. 1809. Multistate corridor program.
Sec. 1810. Border planning, operations, technology, and capacity
program.
Sec. 1811. Puerto Rico highway program.
Sec. 1812. National historic covered bridge preservation.
Sec. 1813. Transportation and community and system preservation
program.
Sec. 1814. Parking pilot programs.
Sec. 1815. Interstate oasis program.
Sec. 1816. Tribal-State road maintenance agreements.
Sec. 1817. National forest system roads.
Sec. 1818. Territorial highway program.
Sec. 1819. Magnetic levitation transportation technology deployment
program.
Sec. 1820. Donations and credits.
Sec. 1821. Disadvantaged business enterprises.
Sec. 1822. Emergency relief.
Sec. 1823. Priority for pedestrian and bicycle facility enhancement
projects.
Sec. 1824. The Delta Regional Authority.
Sec. 1825. Multistate international corridor development program.
Sec. 1826. Authorization of contract authority for States with Indian
Reservations.
Subtitle I--Technical Corrections
Sec. 1901. Repeal or update of obsolete text.
Sec. 1902. Clarification of date.
Sec. 1903. Inclusion of requirements for signs identifying funding
sources in title 23.
Sec. 1904. Inclusion of Buy America requirements in title 23.
Sec. 1905. Technical amendments to nondiscrimination section.
TITLE II--TRANSPORTATION RESEARCH
Subtitle A--Funding
Sec. 2001. Authorization of appropriations.
Sec. 2002. Obligation ceiling.
Sec. 2003. Notice.
Subtitle B--Research and Technology
Sec. 2101. Research and technology program.
Sec. 2102. Study of data collection and statistical analysis efforts.
Sec. 2103. Centers for surface transportation excellence.
Sec. 2104. Motorcycle crash causation study grants.
Sec. 2105. Transportation technology innovation and demonstration
program
Subtitle C--Intelligent Transportation System Research
Sec. 2201. Intelligent transportation system research and technical
assistance program.
TITLE III--PUBLIC TRANSPORTATION
Sec. 3001. Short title.
Sec. 3002. Amendments to title 49, United States Code; updated
terminology.
Sec. 3003. Policies, findings, and purposes.
Sec. 3004. Definitions.
Sec. 3005. Metropolitan transportation planning.
Sec. 3006. Statewide transportation planning.
Sec. 3007. Transportation management areas.
Sec. 3008. Private enterprise participation.
Sec. 3009. Urbanized area formula grants.
Sec. 3010. Planning programs.
Sec. 3011. Capital investment program.
Sec. 3012. New freedom for elderly persons and persons with
disabilities.
Sec. 3013. Formula grants for other than urbanized areas.
Sec. 3014. Research, development, demonstration, and deployment
projects.
Sec. 3015. Transit cooperative research program.
Sec. 3016. National research programs.
Sec. 3017. National transit institute.
Sec. 3018. Bus testing facility.
Sec. 3019. Bicycle facilities.
Sec. 3020. Suspended light rail technology pilot project.
Sec. 3021. Crime prevention and security.
Sec. 3022. General provisions on assistance.
Sec. 3023. Special provisions for capital projects.
Sec. 3024. Contract requirements.
Sec. 3025. Project management oversight and review.
Sec. 3026. Project review.
Sec. 3027. Investigations of safety and security risk.
Sec. 3028. State safety oversight.
Sec. 3029. Sensitive security information.
Sec. 3030. Terrorist attacks and other acts of violence against public
transportation systems.
Sec. 3031. Controlled substances and alcohol misuse testing.
Sec. 3032. Employee protective arrangements.
Sec. 3033. Administrative procedures.
Sec. 3034. Reports and audits.
Sec. 3035. Apportionments of appropriations for formula grants.
Sec. 3036. Apportionments for fixed guideway modernization.
Sec. 3037. Authorizations.
Sec. 3038. Apportionments based on growing States formula factors.
Sec. 3039. Job access and reverse commute grants.
Sec. 3040. Over-the-road bus accessibility program.
Sec. 3041. Alternative transportation in parks and public lands.
Sec. 3042. Obligation ceiling.
Sec. 3043. Adjustments for the Surface Transportation Extension Act of
2003.
Sec. 3044. Disadvantaged business enterprise.
Sec. 3045. Intermodal passenger facilities.
TITLE IV--SURFACE TRANSPORTATION SAFETY
Sec. 4001. Short title.
Subtitle A--Highway Safety
Part I--Highway Safety Grant Program
Sec. 4101. Short title; amendment of title 23, United States Code.
Sec. 4102. Authorization of appropriations.
Sec. 4103. Highway safety programs.
Sec. 4104. Highway safety research and outreach programs.
Sec. 4105. National Highway Safety Advisory Committee technical
correction.
Sec. 4106. Occupant protection grants.
Sec. 4107. School bus driver training.
Sec. 4108. Emergency medical services.
Sec. 4109. Repeal of authority for alcohol traffic safety programs.
Sec. 4110. Impaired driving program.
Sec. 4111. State traffic safety information system improvements.
Sec. 4112. NHTSA accountability.
Part II--Specific Vehicle Safety-Related Rulings
Sec. 4151. Amendment of title 49, United States Code.
Sec. 4152. Vehicle crash ejection prevention.
Sec. 4153. Vehicle backover avoidance technology study.
Sec. 4154. Vehicle backover data collection.
Sec. 4155. Aggressivity and incompatibility reduction standard.
Sec. 4156. Improved crashworthiness.
Sec. 4157. 15-passenger vans.
Sec. 4158. Additional safety performance criteria for tires.
Sec. 4159. Safety belt use reminders.
Sec. 4160. Missed deadlines reports.
Sec. 4161. Grants for improving child passenger safety programs.
Sec. 4162. Authorization of appropriations.
Part III--Miscellaneous Provisions
Sec. 4171. Driver licensing and education.
Sec. 4172. Amendment of Automobile Information Disclosure Act.
Sec. 4173. Child safety.
Sec. 4174. Safe intersections.
Sec. 4175. Study on increased speed limits.
Subtitle B--Motor Carrier Safety and Unified Carrier Registration
Part I--Administrative Matters
Sec. 4201. Short title; amendment of title 49, United States Code.
Sec. 4202. Required completion of overdue reports, studies, and
rulemakings.
Sec. 4203. Contract authority.
Part II--Motor Carrier Safety
Sec. 4221. Minimum guarantee.
Sec. 4222. Authorization of appropriations.
Sec. 4223. Motor carrier safety grants.
Sec. 4224. CDL working group.
Sec. 4225. CDL learner's permit program.
Sec. 4226. Hobbs Act.
Sec. 4227. Penalty for denial of access to records.
Sec. 4228. Medical program.
Sec. 4229. Operation of commercial motor vehicles by individuals who
use insulin to treat diabetes mellitus.
Sec. 4230. Financial responsibility for private motor carriers.
Sec. 4231. Increased penalties for out-of-service violations and false
records.
Sec. 4232. Elimination of commodity and service exemptions.
Sec. 4233. Intrastate operations of interstate motor carriers.
Sec. 4234. Authority to stop commercial motor vehicles.
Sec. 4235. Revocation of operating authority.
Sec. 4236. Pattern of safety violations by motor carrier management.
Sec. 4237. Motor carrier research and technology program.
Sec. 4238. Review of commercial zone exemption provision.
Sec. 4239. International cooperation.
Sec. 4240. Performance and registration information system management.
Sec. 4241. Commercial vehicle information systems and networks
deployment.
Sec. 4242. Outreach and education.
Sec. 4243. Operation of restricted property-carrying units on national
highway system.
Sec. 4244. Operation of longer combination vehicles on national highway
system.
Sec. 4245. Application of safety standards to certain foreign motor
carriers.
Sec. 4246. Background checks for Mexican and Canadian drivers hauling
hazardous materials.
Sec. 4247. Exemption of drivers of utility service vehicles.
Sec. 4248. Operation of commercial motor vehicles transporting
agricultural commodities and farm supplies.
Sec. 4249. Safety performance history screening.
Sec. 4250. Compliance review audit.
Part III--Unified Carrier Registration
Sec. 4261. Short title.
Sec. 4262. Relationship to other laws.
Sec. 4263. Inclusion of motor private and exempt carriers.
Sec. 4264. Unified carrier registration system.
Sec. 4265. Registration of motor carriers by States.
Sec. 4266. Identification of vehicles.
Sec. 4267. Use of UCR agreement revenues as matching funds.
Sec. 4268. Clerical amendments.
Subtitle C--Household Goods Movers
Sec. 4301. Short title; amendment of title 49, United States Code.
Sec. 4302. Findings; sense of Congress.
Sec. 4303. Definitions.
Sec. 4304. Payment of rates.
Sec. 4305. Household goods carrier operations.
Sec. 4306. Liability of carriers under receipts and bills of lading.
Sec. 4307. Dispute settlement for shipments of household goods.
Sec. 4308. Enforcement of regulations related to transportation of
household goods.
Sec. 4309. Working group for development of practices and procedures to
enhance Federal-State relations.
Sec. 4310. Consumer handbook on DOT website.
Sec. 4311. Information about household goods transportation on
carriers' websites.
Sec. 4312. Consumer complaints.
Sec. 4313. Review of liability of carriers.
Sec. 4314. Civil penalties relating to household goods brokers.
Sec. 4315. Civil and criminal penalty for failing to give up possession
of household goods.
Sec. 4316. Progress report.
Sec. 4317. Additional registration requirements for motor carriers of
household goods.
Subtitle D--Hazardous Materials Transportation Safety and Security
Sec. 4401. Short title.
Sec. 4402. Amendment of title 49, United States Code.
Part I--General Authorities on Transportation of Hazardous Materials
Sec. 4421. Purpose.
Sec. 4422. Definitions.
Sec. 4423. General regulatory authority.
Sec. 4424. Limitation on issuance of hazmat licenses.
Sec. 4425. Representation and tampering.
Sec. 4426. Transporting certain highly radioactive material.
Sec. 4427. Hazmat employee training requirements and grants.
Sec. 4428. Registration.
Sec. 4429. Shipping papers and disclosure.
Sec. 4430. Rail tank cars.
Sec. 4431. Highway routing of hazardous material.
Sec. 4432. Unsatisfactory safety ratings.
Sec. 4433. Air transportation of ionizing radiation material.
Sec. 4434. Training curriculum for the public sector.
Sec. 4435. Planning and training grants; emergency preparedness fund.
Sec. 4436. Special permits and exclusions.
Sec. 4437. Uniform forms and procedures.
Sec. 4438. International uniformity of standards and requirements.
Sec. 4439. Hazardous materials transportation safety and security.
Sec. 4440. Enforcement.
Sec. 4441. Civil penalties.
Sec. 4442. Criminal penalties.
Sec. 4443. Preemption.
Sec. 4444. Relationship to other laws.
Sec. 4445. Judicial review.
Sec. 4446. Authorization of appropriations.
Sec. 4447. Additional civil and criminal penalties.
Part II--Other Matters
Sec. 4461. Administrative authority for research and special programs
administration.
Sec. 4462. Mailability of hazardous materials.
Sec. 4463. Criminal matters.
Sec. 4464. Cargo inspection program.
Sec. 4465. Information on hazmat registrations.
Sec. 4466. Report on applying hazardous materials regulations to
persons who reject hazardous materials.
Part III--Sanitary Food Transportation
Sec. 4481. Short title.
Sec. 4482. Responsibilities of the Secretary of Health and Human
Services.
Sec. 4483. Department of Transportation requirements.
Sec. 4484. Effective date.
Subtitle E--Recreational Boating Safety Programs
Sec. 4501. Short title.
Part I--Federal Aid in Sport Fish Restoration Act Amendments
Sec. 4521. Amendment of Federal aid in Fish Restoration Act.
Sec. 4522. Authorization of appropriations.
Sec. 4523. Division of annual appropriations.
Sec. 4524. Maintenance of projects.
Sec. 4525. Boating infrastructure.
Sec. 4526. Requirements and restrictions concerning use of amounts for
expenses for administration.
Sec. 4527. Payments of funds to and cooperation with Puerto Rico, the
District of Columbia, Guam, American Samoa,
the Commonwealth of the Northern Mariana
Islands, and the Virgin Islands.
Sec. 4528. Multistate conservation grant program.
Part II--Clean Vessel Act Amendments
Sec. 4541. Grant program.
Part III--Recreational Boating Safety Program Amendments
Sec. 4561. State matching funds requirement.
Sec. 4562. Availability of allocations.
Sec. 4563. Authorization of appropriations for State recreational
boating safety programs.
Sec. 4564. Maintenance of effort for State recreational boating safety
programs.
Part IV--Miscellaneous
Sec. 4581. Technical correction to Homeland Security Act.
Subtitle F--Rail Transportation
Part I--Amtrak
Sec. 4601. Authorization of appropriations.
Sec. 4602. Establishment of Build America Corporation.
Sec. 4603. Federal bonds for transportation infrastructure.
Part II--Railroad Track Modernization
Sec. 4631. Short title.
Sec. 4632. Capital grants for railroad track.
Sec. 4633. Regulations.
Sec. 4634. Study of grant-funded projects.
Sec. 4635. Authorization of appropriations.
Part III--Other Rail Transportation-Related Provisions
Sec. 4661. Capital grants for rail line relocation projects.
Sec. 4662. Use of congestion mitigation and air quality improvement
funds for Boston to Portland passenger rail
service.
TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION
Sec. 5000. Short title; amendment of 1986 code.
Subtitle A--Trust Fund Reauthorization
Sec. 5001. Extension of Highway Trust Fund and Aquatic Resources Trust
Fund expenditure authority and related
taxes.
Sec. 5002. Full accounting of funds received by the Highway Trust Fund.
Sec. 5003. Modification of adjustments of apportionments.
Subtitle B--Volumetric Ethanol Excise Tax Credit
Sec. 5101. Short title.
Sec. 5102. Alcohol and biodiesel excise tax credit and extension of
alcohol fuels income tax credit.
Sec. 5103. Biodiesel income tax credit.
Subtitle C--Fuel Fraud Prevention
Sec. 5200. Short title.
Part I--Aviation Jet Fuel
Sec. 5211. Taxation of aviation-grade kerosene.
Sec. 5212. Transfer of certain amounts from the Airport and Airway
Trust Fund to the Highway Trust Fund to
reflect highway use of jet fuel.
Part II--Dyed Fuel
Sec. 5221. Dye injection equipment.
Sec. 5222. Elimination of administrative review for taxable use of dyed
fuel.
Sec. 5223. Penalty on untaxed chemically altered dyed fuel mixtures.
Sec. 5224. Termination of dyed diesel use by intercity buses.
Part III--Modification of Inspection of Records Provisions
Sec. 5231. Authority to inspect on-site records.
Sec. 5232. Assessable penalty for refusal of entry.
Part IV--Registration and Reporting Requirements
Sec. 5241. Registration of pipeline or vessel operators required for
exemption of bulk transfers to registered
terminals or refineries.
Sec. 5242. Display of registration.
Sec. 5243. Registration of persons within foreign trade zones, etc.
Sec. 5244. Penalties for failure to register and failure to report.
Sec. 5245. Information reporting for persons claiming certain tax
benefits.
Sec. 5246. Electronic reporting.
Part V--Imports
Sec. 5251. Tax at point of entry where importer not registered.
Sec. 5252. Reconciliation of on-loaded cargo to entered cargo.
Part VI--Miscellaneous Provisions
Sec. 5261. Tax on sale of diesel fuel whether suitable for use or not
in a diesel-powered vehicle or train.
Sec. 5262. Modification of ultimate vendor refund claims with respect
to farming.
Sec. 5263. Taxable fuel refunds for certain ultimate vendors.
Sec. 5264. Two-party exchanges.
Sec. 5265. Modifications of tax on use of certain vehicles.
Sec. 5266. Dedication of revenues from certain penalties to the Highway
Trust Fund.
Sec. 5267. Nonapplication of export exemption to delivery of fuel to
motor vehicles removed from United States.
Part VII--Total Accountability
Sec. 5271. Total accountability.
Sec. 5272. Excise tax reporting.
Sec. 5273. Information reporting.
Subtitle D--Definition of Highway Vehicle
Sec. 5301. Exemption from certain excise taxes for mobile machinery.
Sec. 5302. Modification of definition of off-highway vehicle.
Subtitle E--Excise Tax Reform and Simplification
Part I--Highway Excise Taxes
Sec. 5401. Dedication of gas guzzler tax to Highway Trust Fund.
Sec. 5402. Repeal certain excise taxes on rail diesel fuel and inland
waterway barge fuels.
Part II--Aquatic Excise Taxes
Sec. 5411. Elimination of Aquatic Resources Trust Fund and
transformation of Sport Fish Restoration
Account.
Sec. 5412. Exemption of LED devices from sonar devices suitable for
finding fish.
Sec. 5413. Repeal of harbor maintenance tax on exports.
Sec. 5414. Cap on excise tax on certain fishing equipment.
Sec. 5415. Reduction in rate of tax on portable aerated bait
containers.
Part III--Aerial Excise Taxes
Sec. 5421. Clarification of excise tax exemptions for agricultural
aerial applicators and exemption for fixed-
wing aircraft engaged in forestry
operations.
Sec. 5422. Modification of rural airport definition.
Sec. 5423. Exemption from ticket taxes for transportation provided by
seaplanes.
Sec. 5424. Certain sightseeing flights exempt from taxes on air
transportation.
Part IV--Alcoholic Beverage Excise Taxes
Sec. 5431. Repeal of special occupational taxes on producers and
marketers of alcoholic beverages.
Sec. 5432. Suspension of limitation on rate of rum excise tax cover
over to Puerto Rico and Virgin Islands.
Part V--Sport Excise Taxes
Sec. 5441. Custom gunsmiths.
Sec. 5442. Modified taxation of imported archery products.
Sec. 5443. Treatment of tribal governments for purposes of Federal
wagering excise and occupational taxes.
Part VI--Other Provisions
Sec. 5451. Income tax credit for distilled spirits wholesalers and for
distilled spirits in control State bailment
warehouses for costs of carrying Federal
excise taxes on bottled distilled spirits.
Sec. 5452. Credit for taxpayers owning commercial power takeoff
vehicles.
Sec. 5453. Credit for auxiliary power units installed on diesel-powered
trucks.
Subtitle F--Miscellaneous Provisions
Sec. 5501. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 5502. National Surface Transportation Infrastructure Financing
Commission.
Sec. 5503. Treasury study of fuel tax compliance and interagency
cooperation.
Sec. 5504. Expansion of Highway Trust Fund expenditure purposes to
include funding for studies of supplemental
or alternative financing for the Highway
Trust Fund.
Sec. 5505. Treasury study of highway fuels used by trucks for non-
transportation purposes.
Sec. 5506. Delta regional transportation plan.
Sec. 5507. Treatment of employer-provided transit and van pooling
benefits.
Sec. 5508. Study of incentives for production of biodiesel.
Subtitle G--Revenue Offsets
Part I--Limitation on Expensing Certain Passengers Automobiles
Sec. 5601. Expansion of limitation on depreciation of certain passenger
automobiles.
Part II--Provisions Designed To Curtail Tax Shelters
Sec. 5611. Clarification of economic substance doctrine.
Sec. 5612. Penalty for failing to disclose reportable transaction.
Sec. 5613. Accuracy-related penalty for listed transactions and other
reportable transactions having a
significant tax avoidance purpose.
Sec. 5614. Penalty for understatements attributable to transactions
lacking economic substance, etc.
Sec. 5615. Modifications of substantial understatement penalty for
nonreportable transactions.
Sec. 5616. Tax shelter exception to confidentiality privileges relating
to taxpayer communications.
Sec. 5617. Disclosure of reportable transactions.
Sec. 5618. Modifications to penalty for failure to register tax
shelters.
Sec. 5619. Modification of penalty for failure to maintain lists of
investors.
Sec. 5620. Modification of actions to enjoin certain conduct related to
tax shelters and reportable transactions.
Sec. 5621. Understatement of taxpayer's liability by income tax return
preparer.
Sec. 5622. Penalty on failure to report interests in foreign financial
accounts.
Sec. 5623. Frivolous tax submissions.
Sec. 5624. Regulation of individuals practicing before the Department
of Treasury.
Sec. 5625. Penalty on promoters of tax shelters.
Sec. 5626. Statute of limitations for taxable years for which required
listed transactions not reported.
Sec. 5627. Denial of deduction for interest on underpayments
attributable to nondisclosed reportable and
noneconomic substance transactions.
Sec. 5628. Authorization of appropriations for tax law enforcement.
Part III--Other Corporate Governance Provisions
Sec. 5631. Affirmation of consolidated return regulation authority.
Sec. 5632. Declaration by chief executive officer relating to Federal
annual corporate income tax return.
Sec. 5633. Denial of deduction for certain fines, penalties, and other
amounts.
Sec. 5634. Disallowance of deduction for punitive damages.
Sec. 5635. Increase in criminal monetary penalty limitation for the
underpayment or overpayment of tax due to
fraud.
Sec. 5636. Doubling of certain penalties, fines, and interest on
underpayments related to certain offshore
financial arrangements.
Part IV--Enron-Related Tax Shelter Provisions
Sec. 5641. Limitation on transfer or importation of built-in losses.
Sec. 5642. No reduction of basis under section 734 in stock held by
partnership in corporate partner.
Sec. 5643. Repeal of special rules for FASITs.
Sec. 5644. Expanded disallowance of deduction for interest on
convertible debt.
Sec. 5645. Expanded authority to disallow tax benefits under section
269.
Sec. 5646. Modification of interaction between subpart F and passive
foreign investment company rules.
Part V--Provisions To Discourage Expatriation
Sec. 5651. Tax treatment of inverted corporate entities.
Sec. 5652. Imposition of mark-to-market tax on individuals who
expatriate.
Sec. 5653. Excise tax on stock compensation of insiders in inverted
corporations.
Sec. 5654. Reinsurance of United States risks in foreign jurisdictions.
Subtitle H--Additional Revenue Provisions
Part I--Administrative Provisions
Sec. 5671. Extension of IRS user fees.
Sec. 5672. Clarification of rules for payment of estimated tax for
certain deemed asset sales.
Sec. 5673. Partial payment of tax liability in installment agreements.
Part II--Financial Instruments
Sec. 5675. Treatment of stripped interests in bond and preferred stock
funds, etc.
Sec. 5676. Application of earnings stripping rules to partnerships and
S corporations.
Sec. 5677. Recognition of cancellation of indebtedness income realized
on satisfaction of debt with partnership
interest.
Sec. 5678. Modification of straddle rules.
Sec. 5679. Denial of installment sale treatment for all readily
tradeable debt.
Part III--Corporations and Partnerships
Sec. 5680. Modification of treatment of transfers to creditors in
divisive reorganizations.
Sec. 5681. Clarification of definition of nonqualified preferred stock.
Sec. 5682. Modification of definition of controlled group of
corporations
Sec. 5683. Mandatory basis adjustments in connection with partnership
distributions and transfers of partnership
interests.
Sec. 5684. Class lives for utility grading costs.
Sec. 5685. Consistent amortization of periods for intangibles.
Subtitle I--Tax-Exempt Financing of Highway Projects and Rail-Truck
Transfer Facilities
Sec. 5691. Tax-exempt financing of highway projects and rail-truck
transfer facilities.
Sec. 5692. Addition of vaccines against hepatitis A to list of taxable
vaccines.
Sec. 5693. Addition of vaccines against influenza to list of taxable
vaccines.
Sec. 5694. Extension of amortization of intangibles to sports
franchises.
TITLE VI--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
OFFSETS
Sec. 6101. Sense of the Senate on overall Federal budget.
Sec. 6102. Discretionary spending categories.
Sec. 6103. Level of obligation limitations.
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.
TITLE VIII--SOLID WASTE DISPOSAL
Sec. 8001. Increased use of recovered mineral component in federally
funded projects involving procurement of
cement or concrete.
Sec. 8002. Use of granular mine tailings.
SEC. 2. GENERAL DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Transportation.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
SEC. 3. DEFINITIONS FOR TITLE 23.
Section 101 of title 23, United States Code, is amended by striking
subsection (a) and inserting the following:
``(a) Definitions.--In this title:
``(1) Apportionment.--The term `apportionment' includes an
unexpended apportionment made under a law enacted before the
date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004.
``(2) Carpool project.--
``(A) In general.--The term `carpool project' means
any project to encourage the use of carpools and
vanpools.
``(B) Inclusions.--The term `carpool project'
includes a project--
``(i) to provide carpooling opportunities
to the elderly and individuals with
disabilities;
``(ii) to develop and implement a system
for locating potential riders and informing the
riders of carpool opportunities;
``(iii) to acquire vehicles for carpool
use;
``(iv) to designate highway lanes as
preferential carpool highway lanes;
``(v) to provide carpool-related traffic
control devices; and
``(vi) to designate facilities for use for
preferential parking for carpools.
``(3) Construction.--
``(A) In general.--The term `construction' means
the supervision, inspection, and actual building of,
and incurring of all costs incidental to the
construction or reconstruction of a highway, including
bond costs and other costs relating to the issuance in
accordance with section 122 of bonds or other debt
financing instruments and costs incurred by the State
in performing Federal-aid project related audits that
directly benefit the Federal-aid highway program.
``(B) Inclusions.--The term `construction'
includes--
``(i) locating, surveying, and mapping
(including the establishment of temporary and
permanent geodetic markers in accordance with
specifications of the National Oceanic and
Atmospheric Administration);
``(ii) resurfacing, restoration, and
rehabilitation;
``(iii) acquisition of rights-of-way;
``(iv) relocation assistance, acquisition
of replacement housing sites, and acquisition
and rehabilitation, relocation, and
construction of replacement housing;
``(v) elimination of hazards of railway
grade crossings;
``(vi) elimination of roadside obstacles;
``(vii) improvements that directly
facilitate and control traffic flow, such as--
``(I) grade separation of
intersections;
``(II) widening of lanes;
``(III) channelization of traffic;
``(IV) traffic control systems; and
``(V) passenger loading and
unloading areas;
``(viii) capital improvements that directly
facilitate an effective vehicle weight
enforcement program, such as--
``(I) scales (fixed and portable);
``(II) scale pits;
``(III) scale installation; and
``(IV) scale houses;
``(ix) improvements directly relating to
securing transportation infrastructures for
detection, preparedness, response, and
recovery;
``(x) operating costs relating to traffic
monitoring, management, and control;
``(xi) operational improvements; and
``(xii) transportation system management
and operations.
``(4) County.--The term `county' includes--
``(A) a corresponding unit of government under any
other name in a State that does not have county
organizations; and
``(B) in those States in which the county
government does not have jurisdiction over highways,
any local government unit vested with jurisdiction over
local highways.
``(5) Federal-aid highway.--
``(A) In general.--The term `Federal-aid highway'
means a highway eligible for assistance under this
chapter.
``(B) Exclusions.--The term `Federal-aid highway'
does not include a highway classified as a local road
or rural minor collector.
``(6) Federal-aid system.--The term `Federal-aid system'
means any of the Federal-aid highway systems described in
section 103.
``(7) Federal lands highway.--The term `Federal lands
highway' means--
``(A) a forest highway;
``(B) a recreation road;
``(C) a public Forest Service road;
``(D) a park road;
``(E) a parkway;
``(F) a refuge road;
``(G) an Indian reservation road; and
``(H) a public lands highway.
``(8) Forest highway.--The term `forest highway' means a
forest road that is--
``(A) under the jurisdiction of, and maintained by,
a public authority; and
``(B) is open to public travel.
``(9) Forest road or trail.--
``(A) In general.--The term `forest road or trail'
means a road or trail wholly or partly within, or
adjacent to, and serving National Forest System land
that is necessary for the protection, administration,
use, and development of the resources of that land.
``(B) Inclusions.--The term `forest road or trail'
includes--
``(i) a classified forest road;
``(ii) an unclassified forest road;
``(iii) a temporary forest road; and
``(iv) a public forest service road.
``(10) Freight transportation gateway.--
``(A) In general.--The term `freight transportation
gateway' means a nationally or regionally significant
transportation port of entry or hub for domestic and
global trade or military mobilization.
``(B) Inclusions.--The term `freight transportation
gateway' includes freight intermodal and Strategic
Highway Network connections that provide access to and
from a port or hub described in subparagraph (A).
``(11) Highway.--The term `highway' includes--
``(A) a road, street, and parkway;
``(B) a right-of-way, bridge, railroad-highway
crossing, tunnel, drainage structure, sign, guardrail,
and protective structure, in connection with a highway;
and
``(C) a portion of any interstate or international
bridge or tunnel (including the approaches to the
interstate or international bridge or tunnel, and such
transportation facilities as may be required by the
United States Customs Service and the Bureau of
Citizenship and Immigration Services in connection with
the operation of an international bridge or tunnel),
the cost of which is assumed by a State transportation
department.
``(12) Highway safety improvement project.--The term
`highway safety improvement project' means a project that meets
the requirements of section 148.
``(13) Indian reservation road.--
``(A) In general.--The term `Indian reservation
road' means a public road that is located within or
provides access to an area described in subparagraph
(B) on which or in which reside Indians or Alaskan
Natives that, as determined by the Secretary of the
Interior, are eligible for services generally available
to Indians under Federal laws specifically applicable
to Indians.
``(B) Areas.--The areas referred to in subparagraph
(A) are--
``(i) an Indian reservation;
``(ii) Indian trust land or restricted
Indian land that is not subject to fee title
alienation without the approval of the Federal
Government; and
``(iii) an Indian or Alaska Native village,
group, or community.
``(14) Interstate system.--The term `Interstate System'
means the Dwight D. Eisenhower National System of Interstate
and Defense Highways described in section 103(c).
``(15) Maintenance.--
``(A) In general.--The term `maintenance' means the
preservation of a highway.
``(B) Inclusions.--The term `maintenance' includes
the preservation of--
``(i) the surface, shoulders, roadsides,
and structures of a highway; and
``(ii) such traffic-control devices as are
necessary for safe, secure, and efficient use
of a highway.
``(16) Maintenance area.--The term `maintenance area' means
an area that was designated as a nonattainment area, but was
later redesignated by the Administrator of the Environmental
Protection Agency as an attainment area, under section 107(d)
of the Clean Air Act (42 U.S.C. 7407(d)).
``(17) National forest system road or trail.--The term
`National Forest System road or trail' means a forest road or
trail that is under the jurisdiction of the Forest Service.
``(18) National highway system.--The term `National Highway
System' means the Federal-aid highway system described in
section 103(b).
``(19) Operating costs for traffic monitoring, management,
and control.--The term `operating costs for traffic monitoring,
management, and control' includes--
``(A) labor costs;
``(B) administrative costs;
``(C) costs of utilities and rent;
``(D) costs incurred by transportation agencies for
technology to monitor critical transportation
infrastructure for security purposes; and
``(E) other costs associated with transportation
systems management and operations and the continuous
operation of traffic control, such as--
``(i) an integrated traffic control system;
``(ii) an incident management program; and
``(iii) a traffic control center.
``(20) Operational improvement.--
``(A) In general.--The term `operational
improvement' means--
``(i) a capital improvement for
installation or implementation of--
``(I) a transportation system
management and operations program;
``(II) traffic and transportation
security surveillance and control
equipment;
``(III) a computerized signal
system;
``(IV) a motorist information
system;
``(V) an integrated traffic control
system;
``(VI) an incident management
program;
``(VII) equipment and programs for
transportation response to manmade and
natural disasters; or
``(VIII) a transportation demand
management facility, strategy, or
program; and
``(ii) such other capital improvements to a
public road as the Secretary may designate by
regulation.
``(B) Exclusions.--The term `operational
improvement' does not include--
``(i) a resurfacing, restorative, or
rehabilitative improvement;
``(ii) construction of an additional lane,
interchange, or grade separation; or
``(iii) construction of a new facility on a
new location.
``(21) Park road.--The term `park road' means a public road
(including a bridge built primarily for pedestrian use, but
with capacity for use by emergency vehicles) that is located
within, or provides access to, an area in the National Park
System with title and maintenance responsibilities vested in
the United States.
``(22) Parkway.--The term `parkway' means a parkway
authorized by an Act of Congress on land to which title is
vested in the United States.
``(23) Project.--The term `project' means--
``(A)(i) an undertaking to construct a particular
portion of a highway; or
``(ii) if the context so implies, a particular
portion of a highway so constructed; and
``(B) any other undertaking eligible for assistance
under this title.
``(24) Project agreement.--The term `project agreement'
means the formal instrument to be executed by the Secretary and
recipient of funds under this title.
``(25) Public authority.--The term `public authority' means
a Federal, State, county, town, or township, Indian tribe,
municipal or other local government or instrumentality with
authority to finance, build, operate, or maintain toll or toll-
free facilities.
``(26) Public forest service road.--The term `public Forest
Service road' means a classified forest road--
``(A) that is open to public travel;
``(B) for which title and maintenance
responsibility is vested in the Federal Government; and
``(C) that has been designated a public road by the
Forest Service.
``(27) Public lands development roads and trails.--The term
`public lands development roads and trails' means roads and
trails that the Secretary of the Interior determines are of
primary importance for the development, protection,
administration, and use of public lands and resources under the
control of the Secretary of the Interior.
``(28) Public lands highway.--The term `public lands
highway' means--
``(A) a forest road that is--
``(i) under the jurisdiction of, and
maintained by, a public authority; and
``(ii) open to public travel; and
``(B) any highway through unappropriated or
unreserved public land, nontaxable Indian land, or any
other Federal reservation (including a main highway
through such land or reservation that is on the
Federal-aid system) that is--
``(i) under the jurisdiction of, and
maintained by, a public authority; and
``(ii) open to public travel.
``(29) Public road.--The term `public road' means any road
or street that is--
``(A) under the jurisdiction of, and maintained by,
a public authority; and
``(B) open to public travel.
``(30) Recreational road.--The term `recreational road'
means a public road--
``(A) that provides access to a museum, lake,
reservoir, visitors center, gateway to a major
wilderness area, public use area, or recreational or
historic site; and
``(B) for which title is vested in the Federal
Government.
``(31) Refuge road.--The term `refuge road' means a public
road--
``(A) that provides access to or within a unit of
the National Wildlife Refuge System or a national fish
hatchery; and
``(B) for which title and maintenance
responsibility is vested in the United States
Government.
``(32) Rural area.--The term `rural area' means an area of
a State that is not included in an urban area.
``(33) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``(34) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia; and
``(C) the Commonwealth of Puerto Rico.
``(35) State funds.--The term `State funds' includes funds
that are--
``(A) raised under the authority of the State (or
any political or other subdivision of a State); and
``(B) made available for expenditure under the
direct control of the State transportation department.
``(36) State transportation department.--The term `State
transportation department' means the department, agency,
commission, board, or official of any State charged by the laws
of the State with the responsibility for highway construction.
``(37) Territorial highway system.--The term `territorial
highway system' means the system of arterial highways,
collector roads, and necessary interisland connectors in
American Samoa, the Commonwealth of the Northern Mariana
Islands, Guam, and the United States Virgin Islands that have
been designated by the appropriate Governor or chief executive
officer of a territory, and approved by the Secretary, in
accordance with section 215.
``(38) Transportation enhancement activity.--The term
`transportation enhancement activity' means, with respect to
any project or the area to be served by the project, any of the
following activities as the activities relate to surface
transportation:
``(A) Provision of facilities for pedestrians and
bicycles.
``(B) Provision of safety and educational
activities for pedestrians and bicyclists.
``(C) Acquisition of scenic easements and scenic or
historic sites (including historic battlefields).
``(D) Scenic or historic highway programs
(including the provision of tourist and welcome center
facilities).
``(E) Landscaping and other scenic beautification.
``(F) Historic preservation.
``(G) Rehabilitation and operation of historic
transportation buildings, structures, or facilities
(including historic railroad facilities and canals).
``(H) Preservation of abandoned railway corridors
(including the conversion and use of the corridors for
pedestrian or bicycle trails).
``(I) Control and removal of outdoor advertising.
``(J) Archaeological planning and research.
``(K) Environmental mitigation--
``(i) to address water pollution due to
highway runoff; or
``(ii) reduce vehicle-caused wildlife
mortality while maintaining habitat
connectivity.
``(L) Establishment of transportation museums.
``(39) Transportation systems management and operations.--
``(A) In general.--The term `transportation systems
management and operations' means an integrated program
to optimize the performance of existing infrastructure
through the implementation of multimodal and
intermodal, cross-jurisdictional systems, services, and
projects designed to preserve capacity and improve
security, safety, and reliability of the transportation
system.
``(B) Inclusions.--The term `transportation systems
management and operations' includes--
``(i) regional operations collaboration and
coordination activities between transportation
and public safety agencies; and
``(ii) improvements to the transportation
system such as traffic detection and
surveillance, arterial management, freeway
management, demand management, work zone
management, emergency management, electronic
toll collection, automated enforcement, traffic
incident management, roadway weather
management, traveler information services,
commercial vehicle operations, traffic control,
freight management, and coordination of
highway, rail, transit, bicycle, and pedestrian
operations.
``(40) Urban area.--The term `urban area' means--
``(A) an urbanized area (or, in the case of an
urbanized area encompassing more than 1 State, the
portion of the urbanized area in each State); and
``(B) an urban place designated by the Bureau of
the Census that--
``(i) has a population of 5,000 or more;
``(ii) is not located within any urbanized
area; and
``(iii) is located within boundaries that--
``(I) are fixed cooperatively by
responsible State and local officials,
subject to approval by the Secretary;
and
``(II) encompass, at a minimum, the
entire urban place designated by the
Bureau of the Census (except in the
case of cities in the State of Maine
and in the State of New Hampshire).
``(41) Urbanized area.--The term `urbanized area' means an
area that--
``(A) has a population of 50,000 or more;
``(B) is designated by the Bureau of the Census;
and
``(C) is located within boundaries that--
``(i) are fixed cooperatively by
responsible State and local officials, subject
to approval by the Secretary; and
``(ii) encompass, at a minimum, the entire
urbanized area within a State as designated by
the Bureau of the Census.''.
TITLE I--FEDERAL-AID HIGHWAYS
Subtitle A--Funding
SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.
The following sums are authorized to be appropriated out of the
Highway Trust Fund (other than the Mass Transit Account):
(1) Interstate maintenance program.--For the Interstate
maintenance program under section 119 of title 23, United
States Code--
(A) $5,442,371,792 for fiscal year 2004;
(B) $6,425,168,342 for fiscal year 2005;
(C) $6,683,176,289 for fiscal year 2006;
(D) $6,702,365,186 for fiscal year 2007;
(E) $7,036,621,314 for fiscal year 2008; and
(F) $7,139,130,081 for fiscal year 2009.
(2) National highway system.--For the National Highway
System under section 103 of that title--
(A) $6,593,922,257 for fiscal year 2004;
(B) $7,815,590,130 for fiscal year 2005;
(C) $8,125,241,450 for fiscal year 2006;
(D) $8,148,531,791 for fiscal year 2007;
(E) $8,554,231,977 for fiscal year 2008; and
(F) $8,678,591,297 for fiscal year 2009.
(3) Bridge program.--For the bridge program under section
144 of that title--
(A) $4,650,754,076 for fiscal year 2004;
(B) $5,507,287,150 for fiscal year 2005;
(C) $5,713,860,644 for fiscal year 2006;
(D) $5,730,266,418 for fiscal year 2007;
(E) $6,016,042,650 for fiscal year 2008; and
(F) $6,103,714,622 for fiscal year 2009.
(4) Surface transportation program.--For the surface
transportation program under section 133 of that title--
(A) $6,877,178,900 for fiscal year 2004;
(B) $8,107,950,527 for fiscal year 2005;
(C) $8,417,741,127 for fiscal year 2006;
(D) $8,441,910,349 for fiscal year 2007;
(E) $8,862,919,976 for fiscal year 2008; and
(F) $8,992,134,975 for fiscal year 2009.
(5) Congestion mitigation and air quality improvement
program.--For the congestion mitigation and air quality
improvement program under section 149 of that title--
(A) $1,880,092,073 for fiscal year 2004;
(B) $2,192,716,180 for fiscal year 2005;
(C) $2,270,239,273 for fiscal year 2006;
(D) $2,276,757,639 for fiscal year 2007;
(E) $2,390,302,660 for fiscal year 2008; and
(F) $2,425,236,569 for fiscal year 2009.
(6) Highway safety improvement program.--For the highway
safety improvement program under section 148 of that title--
(A) $1,187,426,572 for fiscal year 2004;
(B) $1,325,828,388 for fiscal year 2005;
(C) $1,377,448,548 for fiscal year 2006;
(D) $1,381,403,511 for fiscal year 2007;
(E) $1,450,295,996 for fiscal year 2008; and
(F) $1,471,607,029 for fiscal year 2009.
(7) Appalachian development highway system program.--For
the Appalachian development highway system program under
section 170 of that title, $590,000,000 for each of fiscal
years 2004 through 2009.
(8) Recreational trails program.--For the recreational
trails program under section 206 of that title, $60,000,000 for
each of fiscal years 2004 through 2009.
(9) Federal lands highways program.--
(A) Indian reservation roads.--For Indian
reservation roads under section 204 of that title--
(i) $300,000,000 for fiscal year 2004;
(ii) $325,000,000 for fiscal year 2005;
(iii) $350,000,000 for fiscal year 2006;
(iv) $375,000,000 for fiscal year 2007;
(v) $400,000,000 for fiscal year 2008; and
(vi) $425,000,000 for fiscal year 2009.
(B) Recreation roads.--For recreation roads under
section 204 of that title, $50,000,000 for each of
fiscal years 2004 through 2009.
(C) Park roads and parkways.--For park roads and
parkways under section 204 of that title--
(i) $300,000,000 for fiscal year 2004;
(ii) $310,000,000 for fiscal year 2005; and
(iii) $320,000,000 for each of fiscal years
2006 through 2009.
(D) Refuge roads.--For refuge roads under section
204 of that title, $30,000,000 for each of fiscal years
2004 through 2009.
(E) Public lands highways.--For Federal lands
highways under section 204 of that title, $300,000,000
for each of fiscal years 2004 through 2009.
(F) Safety.--For safety under section 204 of that
title, $40,000,000 for each of fiscal years 2004
through 2009.
(10) Multistate corridor program.--For the multistate
corridor program under section 171 of that title--
(A) $112,500,000 for fiscal year 2004;
(B) $135,000,000 for fiscal year 2005;
(C) $157,500,000 for fiscal year 2006;
(D) $180,000,000 for fiscal year 2007;
(E) $202,500,000 for fiscal year 2008; and
(F) $225,000,000 for fiscal year 2009.
(11) Border planning, operations, and technology program.--
For the border planning, operations, and technology program
under section 172 of that title--
(A) $112,500,000 for fiscal year 2004;
(B) $135,000,000 for fiscal year 2005;
(C) $157,500,000 for fiscal year 2006;
(D) $180,000,000 for fiscal year 2007;
(E) $202,500,000 for fiscal year 2008; and
(F) $225,000,000 for fiscal year 2009.
(12) National scenic byways program.--For the national
scenic byways program under section 162 of that title--
(A) $34,000,000 for fiscal year 2004;
(B) $35,000,000 for fiscal year 2005;
(C) $36,000,000 for fiscal year 2006;
(D) $37,000,000 for fiscal year 2007; and
(E) $39,000,000 for each of fiscal years 2008 and
2009.
(13) Infrastructure performance and maintenance program.--
For carrying out the infrastructure performance and maintenance
program under section 139 of that title $2,000,000,000 for
fiscal year 2004.
(14) Construction of ferry boats and ferry terminal
facilities.--For construction of ferry boats and ferry terminal
facilities under section 147 of that title, $50,000,000 for
each of fiscal years 2004 through 2009.
(15) Commonwealth of puerto rico highway program.--For the
Commonwealth of Puerto Rico highway program under section 173
of that title--
(A) $140,000,000 for fiscal year 2004;
(B) $145,000,000 for fiscal year 2005;
(C) $149,000,000 for fiscal year 2006;
(D) $154,000,000 for fiscal year 2007;
(E) $160,000,000 for fiscal year 2008; and
(F) $163,000,000 for fiscal year 2009.
(16) Public-private partnerships pilot program.--For the
public-private partnerships pilot program under section
109(c)(3) of that title, $10,000,000 for each of fiscal years
2004 through 2009.
(17) Denali access system.--For the Denali Access System
under section 309 of the Denali Commission Act of 1998 (42
U.S.C. 3121 note; Public Law 105-277), $30,000,000 for each of
fiscal years 2004 through 2009.
(18) Delta region tranportation development program.--For
planning and construction activities authorized under the Delta
Regional Authority, $80,000,000 for each of fiscal years 2004
through 2009.
SEC. 1102. OBLIGATION CEILING.
(a) General Limitation.--Subject to subsections (g) and (h), and
notwithstanding any other provision of law, the obligations for
Federal-aid highway and highway safety construction programs shall not
exceed--
(1) $33,643,326,300 for fiscal year 2004;
(2) $37,900,000,000 for fiscal year 2005;
(3) $39,100,000,000 for each of fiscal years 2006 and 2007;
(4) $39,400,000,000 for fiscal year 2008; and
(5) $44,400,000,000 for fiscal year 2009.
(b) Exceptions.--The limitations under subsection (a) shall not
apply to obligations under or for--
(1) section 125 of title 23, United States Code;
(2) section 147 of the Surface Transportation Assistance
Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
(3) section 9 of the Federal-Aid Highway Act of 1981
(Public Law 97-134; 95 Stat. 1701);
(4) subsections (b) and (j) of section 131 of the Surface
Transportation Assistance Act of 1982 (Public Law 97-424; 96
Stat. 2119);
(5) subsections (b) and (c) of section 149 of the Surface
Transportation and Uniform Relocation Assistance Act of 1987
(Public Law 100-17; 101 Stat. 198);
(6) sections 1103 through 1108 of the Intermodal Surface
Transportation Efficiency Act of 1991 (Public Law 102-240; 105
Stat. 2027);
(7) section 157 of title 23, United States Code (as in
effect on June 8, 1998);
(8) section 105 of title 23, United States Code (as in
effect for fiscal years 1998 through 2003, but only in an
amount equal to $639,000,000 for each of those fiscal years);
(9) Federal-aid highway programs for which obligation
authority was made available under the Transportation Equity
Act for the 21st Century (Public Law 105-178; 112 Stat. 107) or
subsequent public laws for multiple years or to remain
available until used, but only to the extent that the
obligation authority has not lapsed or been used; and
(10) section 105 of title 23, United States Code (but, for
each of fiscal years 2004 through 2009, only in an amount equal
to $439,000,000 per fiscal year).
(c) Distribution of Obligation Authority.--For each of fiscal years
2004 through 2009, the Secretary--
(1) shall not distribute obligation authority provided by
subsection (a) for the fiscal year for--
(A) amounts authorized for administrative expenses
and programs by section 104(a) of title 23, United
States Code;
(B) programs funded from the administrative
takedown authorized by section 104(a)(1) of title 23,
United States Code; and
(C) amounts authorized for the highway use tax
evasion program and the Bureau of Transportation
Statistics;
(2) shall not distribute an amount of obligation authority
provided by subsection (a) that is equal to the unobligated
balance of amounts made available from the Highway Trust Fund
(other than the Mass Transit Account) for Federal-aid highway
and highway safety programs for previous fiscal years the funds
for which are allocated by the Secretary;
(3) shall determine the ratio that--
(A) the obligation authority provided by subsection
(a) for the fiscal year, less the aggregate of amounts
not distributed under paragraphs (1) and (2); bears to
(B) the total of the sums authorized to be
appropriated for the Federal-aid highway and highway
safety construction programs (other than sums
authorized to be appropriated for provisions of law
described in paragraphs (1) through (9) of subsection
(b) and sums authorized to be appropriated for section
105 of title 23, United States Code, equal to the
amount referred to in subsection (b)(10) for the fiscal
year), less the aggregate of the amounts not
distributed under paragraphs (1) and (2);
(4) shall distribute the obligation authority provided by
subsection (a) less the aggregate amounts not distributed under
paragraphs (1) and (2), for section 14501 of title 40, United
States Code, so that the amount of obligation authority
available for that section is equal to the amount determined by
multiplying--
(A) the ratio determined under paragraph (3); by
(B) the sums authorized to be appropriated for that
section for the fiscal year;
(5) shall distribute among the States the obligation
authority provided by subsection (a), less the aggregate
amounts not distributed under paragraphs (1) and (2), for each
of the programs that are allocated by the Secretary under this
Act and title 23, United States Code (other than to programs to
which paragraph (1) applies), by multiplying--
(A) the ratio determined under paragraph (3); by
(B) the amounts authorized to be appropriated for
each such program for the fiscal year; and
(6) shall distribute the obligation authority provided by
subsection (a), less the aggregate amounts not distributed
under paragraphs (1) and (2) and the amounts distributed under
paragraphs (4) and (5), for Federal-aid highway and highway
safety construction programs (other than the amounts
apportioned for the equity bonus program, but only to the
extent that the amounts apportioned for the equity bonus
program for the fiscal year are greater than $439,000,000, and
the Appalachian development highway system program) that are
apportioned by the Secretary under this Act and title 23,
United States Code, in the ratio that--
(A) amounts authorized to be appropriated for the
programs that are apportioned to each State for the
fiscal year; bear to
(B) the total of the amounts authorized to be
appropriated for the programs that are apportioned to
all States for the fiscal year.
(d) Redistribution of Unused Obligation Authority.--Notwithstanding
subsection (c), the Secretary shall, after August 1 of each of fiscal
years 2004 through 2009--
(1) revise a distribution of the obligation authority made
available under subsection (c) if an amount distributed cannot
be obligated during that fiscal year; and
(2) redistribute sufficient amounts to those States able to
obligate amounts in addition to those previously distributed
during that fiscal year, giving priority to those States having
large unobligated balances of funds apportioned under sections
104 and 144 of title 23, United States Code.
(e) Applicability of Obligation Limitations to Transportation
Research Programs.--
(1) In general.--Except as provided in paragraph (2),
obligation limitations imposed by subsection (a) shall apply to
contract authority for transportation research programs carried
out under--
(A) chapter 5 of title 23, United States Code; and
(B) title II of this Act.
(2) Exception.--Obligation authority made available under
paragraph (1) shall--
(A) remain available for a period of 3 fiscal
years; and
(B) be in addition to the amount of any limitation
imposed on obligations for Federal-aid highway and
highway safety construction programs for future fiscal
years.
(f) Redistribution of Certain Authorized Funds.--
(1) In general.--Not later than 30 days after the date of
distribution of obligation authority under subsection (c) for
each of fiscal years 2004 through 2009, the Secretary shall
distribute to the States any funds that--
(A) are authorized to be appropriated for the
fiscal year for Federal-aid highway programs; and
(B) the Secretary determines will not be allocated
to the States, and will not be available for
obligation, in the fiscal year due to the imposition of
any obligation limitation for the fiscal year.
(2) Ratio.--Funds shall be distributed under paragraph (1)
in the same ratio as the distribution of obligation authority
under subsection (c)(6).
(3) Availability.--Funds distributed under paragraph (1)
shall be available for any purpose described in section 133(b)
of title 23, United States Code.
(g) Special Rule.--Obligation authority distributed for a fiscal
year under subsection (c)(4) for the provision specified in subsection
(c)(4) shall--
(1) remain available until used for obligation of funds for
that provision; and
(2) be in addition to the amount of any limitation imposed
on obligations for Federal-aid highway and highway safety
construction programs for future fiscal years.
(h) Adjustment in Obligation Limit.--
(1) In general.--A limitation on obligations imposed by
subsection (a) for a fiscal year shall be adjusted by an amount
equal to the amount determined in accordance with section
251(b)(1)(B) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) for the fiscal
year.
(2) Distribution.--An adjustment under paragraph (1) shall
be distributed in accordance with this section.
(i) Limitations on Obligations for Administrative Expenses.--
Notwithstanding any other provision of law, the total amount of all
obligations under section 104(a) of title 23, United States Code, shall
not exceed--
(1) $450,000,000 for fiscal year 2004;
(2) $465,000,000 for fiscal year 2005;
(3) $480,000,000 for fiscal year 2006;
(4) $495,000,000 for fiscal year 2007;
(5) $510,000,000 for fiscal year 2008; and
(6) $525,000,000 for fiscal year 2009.
(j) National Highway System Component.--Section 104(b)(1) of title
23, United States Code, is amended by striking ``$36,400,000'' and
insert ``$50,000,000''.
SEC. 1103. APPORTIONMENTS.
(a) Administrative Expenses.--
(1) In general.--Section 104 of title 23, United States
Code, is amended by striking subsection (a) and inserting the
following:
``(a) Administrative Expenses.--
``(1) In general.--There are authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to be made available to the Secretary of
Transportation for administrative expenses of the Federal
Highway Administration--
``(A) $450,000,000 for fiscal year 2004;
``(B) $465,000,000 for fiscal year 2005;
``(C) $480,000,000 for fiscal year 2006;
``(D) $495,000,000 for fiscal year 2007;
``(E) $510,000,000 for fiscal year 2008; and
``(F) $525,000,000 for fiscal year 2009.
``(2) Purposes.--The funds authorized by this subsection
shall be used--
``(A) to administer the provisions of law to be
financed from appropriations for the Federal-aid
highway program and programs authorized under chapter
2; and
``(B) to make transfers of such sums as the
Secretary determines to be appropriate to the
Appalachian Regional Commission for administrative
activities associated with the Appalachian development
highway system.
``(3) Availability.--The funds made available under
paragraph (1) shall remain available until expended.''.
(2) Conforming amendments.--Section 104 of title 23, United
States Code, is amended--
(A) in the matter preceding paragraph (1) of
subsection (b), by striking ``the deduction authorized
by subsection (a) and'';
(B) in the first sentence of subsection (e)(1), by
striking ``, and also'' and all that follows through
``this section''; and
(C) in subsection (i), by striking ``deducted'' and
inserting ``made available''.
(b) Metropolitan Planning.--Section 104(f) of title 23, United
States Code, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Set-aside.--On October 1 of each fiscal year, the
Secretary shall set aside 1.5 percent of the funds authorized
to be appropriated for the Interstate maintenance, national
highway system, surface transportation, congestion mitigation
and air quality improvement, highway safety improvement, and
highway bridge programs authorized under this title to carry
out the requirements of section 134.'';
(2) in paragraph (2), by striking ``per centum'' and
inserting ``percent'';
(3) in paragraph (3)--
(A) by striking ``The funds'' and inserting the
following:
``(A) In general.--The funds''; and
(B) by striking ``These funds'' and all that
follows and inserting the following:
``(B) Unused funds.--Any funds that are not used to
carry out section 134 may be made available by a
metropolitan planning organization to the State to fund
activities under section 135.''; and
(4) by adding at the end the following:
``(6) Federal share.--Funds apportioned to a State under
this subsection shall be matched in accordance with section
120(b) unless the Secretary determines that the interests of
the Federal-aid highway program would be best served without
the match.''.
(c) Alaska Highway.--Section 104(b)(1)(A) of title 23, United
States Code, is amended by striking ``1998 through 2002'' and inserting
``2004 through 2009''.
SEC. 1104. EQUITY BONUS PROGRAM.
(a) In General.--Section 105 of title 23, United States Code, is
amended to read as follows:
``Sec. 105. Equity bonus program
``(a) Program.--
``(1) In general.--Subject to subsections (c) and (d), for
each of fiscal years 2004 through 2009, the Secretary shall
allocate among the States amounts sufficient to ensure that no
State receives a percentage of the total apportionments for the
fiscal year for the programs specified in paragraph (2) that is
less than the percentage calculated under subsection (b).
``(2) Specific programs.--The programs referred to in
subsection (a) are--
``(A) the Interstate maintenance program under
section 119;
``(B) the national highway system program under
section 103;
``(C) the bridge program under section 144;
``(D) the surface transportation program under
section 133;
``(E) the highway safety improvement program under
section 148;
``(F) the congestion mitigation and air quality
improvement program under section 149;
``(G) metropolitan planning programs under section
104(f) (other than planning programs funded by amounts
provided under the equity bonus program under this
section);
``(H) the infrastructure performance and
maintenance program under section 139;
``(I) the equity bonus program under this section;
``(J) the Appalachian development highway system
program under subtitle IV of title 40;
``(K) the recreational trails program under section
206;
``(L) the safe routes to schools program under
section 150; and
``(M) the rail-highway grade crossing program under
section 130.
``(b) State Percentage.--
``(1) In general.--The percentage referred to in subsection
(a) for each State shall be--
``(A) 95 percent of the quotient obtained by
dividing--
``(i) the estimated tax payments
attributable to highway users in the State paid
into the Highway Trust Fund (other than the
Mass Transit Account) in the most recent fiscal
year for which data are available; by
``(ii) the estimated tax payments
attributable to highway users in all States
paid into the Highway Trust Fund (other than
the Mass Transit Account) for the fiscal year;
or
``(B) for a State with a total population density
of less than 20 persons per square mile, as reported in
the decennial census conducted by the Federal
Government in 2000, a total population of less than
1,000,000, as reported in that decennial census, or a
median household income of less than $35,000, as
reported in that decennial census, the greater of--
``(i) the percentage under paragraph (1);
or
``(ii) the average percentage of the
State's share of total apportionments for the
period of fiscal years 1998 through 2003 for
the programs specified in paragraph (2).
``(2) Specific programs.--The programs referred to in
paragraph (1)(B)(ii) are (as in effect on the day before the
date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004)--
``(A) the Interstate maintenance program under
section 119;
``(B) the national highway system program under
section 103;
``(C) the bridge program under section 144;
``(D) the surface transportation program under
section 133;
``(E) the recreational trails program under section
206;
``(F) the high priority projects program under
section 117;
``(G) the minimum guarantee provided under this
section;
``(H) revenue aligned budget authority amounts
provided under section 110;
``(I) the congestion mitigation and air quality
improvement program under section 149;
``(J) the Appalachian development highway system
program under subtitle IV of title 40; and
``(K) metropolitan planning programs under section
104(f).
``(c) Special Rules.--
``(1) Minimum combined allocation.--For each fiscal year,
before making the allocations under subsection (a)(1), the
Secretary shall allocate among the States amounts sufficient to
ensure that no State receives a combined total of amounts
allocated under subsection (a)(1), apportionments for the
programs specified in subsection (a)(2), and amounts allocated
under this subsection, that is less than 110 percent of the
average for fiscal years 1998 through 2003 of the annual
apportionments for the State for all programs specified in
subsection (b)(2).
``(2) No negative adjustment.--Notwithstanding subsection
(d), no negative adjustment shall be made under subsection
(a)(1) to the apportionment of any State.
``(3) Minimum share of tax payments.--Notwithstanding
subsection (d), for each fiscal year, the Secretary shall
allocate among the States amounts sufficient to ensure that no
State receives a percentage of apportionments for the fiscal
year for the programs specified in subsection (a)(2) that is
less than 90.5 percent of the percentage share of the State of
estimated tax payments attributable to highway users in the
State paid into the Highway Trust Fund (other than the Mass
Transit Account) in the most recent fiscal year for which data
are available.
``(d) Limitation on Adjustments.--
``(1) In general.--Except as provided in paragraphs (2) and
(3) of subsection (c), no State shall receive, for any fiscal
year, additional amounts under subsection (a)(1) if--
``(A) the total apportionments of the State for the
fiscal year for the programs specified in subsection
(a)(2); exceed
``(B) the percentage of the average, for the period
of fiscal years 1998 through 2003, of the annual
apportionments of the State for all programs specified
in subsection (b)(2), as specified in paragraph (2).
``(2) Percentages.--The percentages referred to in
paragraph (1)(B) are--
``(A) for fiscal year 2004, 120 percent;
``(B) for fiscal year 2005, 130 percent;
``(C) for fiscal year 2006, 134 percent;
``(D) for fiscal year 2007, 137 percent;
``(E) for fiscal year 2008, 145 percent; and
``(F) for fiscal year 2009, 250 percent.
``(e) Programmatic Distribution of Funds.--The Secretary shall
apportion the amounts made available under this section so that the
amount apportioned to each State under this section for each program
referred to in subparagraphs (A) through (G) of subsection (a)(2) is
equal to the amount determined by multiplying the amount to be
apportioned under this section by the proportion that--
``(1) the amount of funds apportioned to each State for
each program referred to in subparagraphs (A) through (G) of
subsection (a)(2) for a fiscal year; bears to
``(2) the total amount of funds apportioned to each State
for all such programs for the fiscal year.
``(f) Metro Planning Set Aside.--Notwithstanding section 104(f), no
set aside provided for under that section shall apply to funds
allocated under this section.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated from the Highway Trust Fund (other than the Mass Transit
Account) such sums as are necessary to carry out this section for each
of fiscal years 2004 through 2009.''.
(b) Conforming Amendments.--
(1) The analysis for subchapter I of chapter 1 of title 23,
United States Code, is amended by striking the item relating to
section 105 and inserting the following:
``105. Equity bonus program.''
(2) Section 104(a)(1) of title 23, United States Code, is
amended by striking ``minimum guarantee'' and inserting
``equity bonus''.
SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.
Section 110 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraphs (1) and (2), by striking ``2000''
and inserting ``2006'';
(B) in paragraph (1), by inserting ``(as in effect
on September 30, 2002)'' after ``(2 U.S.C.
901(b)(2)(B)(ii)(I)(cc))''; and
(C) in paragraph (2)--
(i) by striking ``If the amount'' and
inserting the following:
``(A) In general.--Except as provided in
subparagraph (B), if the amount'';
(ii) by inserting ``(as in effect on
September 30, 2002)'' after ``(2 U.S.C.
901(b)(1)(B)(ii)(I)(cc)'';
(iii) by striking ``the succeeding'' and
inserting ``that'';
(iv) by striking ``and the motor carrier
safety grant program''; and
(v) by adding at the end the following:
``(B) Limitation.--No reduction under subparagraph
(A) shall be made for a fiscal year if, as of October 1
of the fiscal year, the cash balance in the Highway
Trust Fund (other than the Mass Transit Account)
exceeds $6,000,000,000.'';
(2) in subsection (b)(1), by striking subparagraph (A) and
inserting the following:
``(A) the sums authorized to be appropriated from
the Highway Trust Fund (other than the Mass Transit
Account) for each of the Federal-aid highway and
highway safety construction programs (other than the
equity bonus program) and for which funds are allocated
from the Highway Trust Fund by the Secretary under this
title and the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004; bears
to'';
(3) in subsection (c), by inserting ``the highway safety
improvement program,'' after ``the surface transportation
program,''; and
(4) by striking subsections (e), (f), and (g).
Subtitle B--New Programs
SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE PROGRAM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code, is amended by inserting after section 138 the following:
``Sec. 139. Infrastructure performance and maintenance program
``(a) Establishment.--The Secretary shall establish and implement
an infrastructure performance and maintenance program in accordance
with this section.
``(b) Eligible Projects.--A State may obligate funds allocated to
the State under this section only for projects eligible under the
Interstate maintenance program under section 119, the National Highway
System program under section 103, the surface transportation program
under section 133, the highway safety improvement program under section
148, the highway bridge program under section 144, and the congestion
mitigation and air quality improvement program under section 149 that
will--
``(1) preserve, maintain, or otherwise extend, in a cost-
effective manner, the useful life of existing highway
infrastructure elements; or
``(2) provide operational improvements (including traffic
management and intelligent transportation system strategies and
limited capacity enhancements) at points of recurring highway
congestion.
``(c) Period of Availability.--
``(1) Obligation within 180 days.--
``(A) In general.--Funds allocated to a State under
this section shall be obligated by the State not later
than 180 days after the date of apportionment.
``(B) Unobligated funds.--Any amounts that remain
unobligated at the end of that period shall be
allocated in accordance with subsection (d).
``(2) Obligation by end of fiscal year.--
``(A) In general.--All funds allocated or
reallocated under this section shall remain available
for obligation until the last day of the fiscal year
for which the funds are apportioned.
``(B) Unobligated funds.--Any amounts allocated
that remain unobligated at the end of the fiscal year
shall lapse.
``(d) Redistribution of Allocated Funds and Obligation Authority.--
``(1) In general.--On the date that is 180 days after the
date of allocation, or as soon thereafter as practicable, for
each fiscal year, the Secretary shall--
``(A) withdraw--
``(i) any funds allocated to a State under
this section that remain unobligated; and
``(ii) an equal amount of obligation
authority provided for the use of the funds in
accordance with section 1101(13) of the Safe,
Accountable, Flexible, and Efficient
Transportation Equity Act of 2004; and
``(B) reallocate the funds and redistribute the
obligation authority to those States that--
``(i) have fully obligated all amounts
allocated under this section for the fiscal
year; and
``(ii) demonstrate that the State is able
to obligate additional amounts for projects
eligible under this section before the end of
the fiscal year.
``(2) Equity bonus.--The calculation and distribution of
funds under section 105 shall be adjusted as a result of the
allocation of funds under this subsection.
``(e) Federal Share Payable.--The Federal share payable for a
project funded under this section shall be determined in accordance
with section 120.''.
(b) Conforming Amendment.--The analysis for chapter 1 of title 23,
United States Code, is amended by adding after the item relating to
section 138 the following:
``139. Infrastructure performance and maintenance program.''.
SEC. 1202. FUTURE OF SURFACE TRANSPORTATION SYSTEM.
(a) Declaration of Policy.--Section 101 of title 23, United States
Code, is amended--
(1) by striking ``(b) It is hereby declared to be'' and
inserting the following:
``(b) Declaration of Policy.--
``(1) Acceleration of construction of federal-aid highway
systems.--Congress declares that it is'';
(2) in the second paragraph, by striking ``It is hereby
declared'' and inserting the following:
``(2) Completion of interstate system.--Congress
declares''; and
(3) by striking the last paragraph and inserting the
following:
``(3) Transportation needs of 21st century.--Congress
declares that--
``(A) it is in the national interest to preserve
and enhance the surface transportation system to meet
the needs of the United States for the 21st Century;
``(B) the current urban and long distance personal
travel and freight movement demands have surpassed the
original forecasts and travel demand patterns are
expected to change;
``(C) continued planning for and investment in
surface transportation is critical to ensure the
surface transportation system adequately meets the
changing travel demands of the future;
``(D) among the foremost needs that the surface
transportation system must meet to provide for a strong
and vigorous national economy are safe, efficient, and
reliable--
``(i) national and interregional personal
mobility (including personal mobility in rural
and urban areas) and reduced congestion;
``(ii) flow of interstate and international
commerce and freight transportation; and
``(iii) travel movements essential for
national security;
``(E) special emphasis should be devoted to
providing safe and efficient access for the type and
size of commercial and military vehicles that access
designated National Highway System intermodal freight
terminals;
``(F) it is in the national interest to seek ways
to eliminate barriers to transportation investment
created by the current modal structure of
transportation financing;
``(G) the connection between land use and
infrastructure is significant;
``(H) transportation should play a significant role
in promoting economic growth, improving the
environment, and sustaining the quality of life; and
``(I) the Secretary should take appropriate actions
to preserve and enhance the Interstate System to meet
the needs of the 21st Century.''.
(b) National Surface Transportation System Study.--
(1) In general.--The Secretary shall--
(A) conduct a complete investigation and study of
the current condition and future needs of the surface
transportation system of the United States, including--
(i) the National Highway System;
(ii) the Interstate System;
(iii) the strategic highway network;
(iv) congressional high priority corridors;
(v) intermodal connectors;
(vi) freight facilities;
(vii) navigable waterways;
(viii) mass transportation;
(ix) freight and intercity passenger rail
infrastructure and facilities; and
(x) surface access to airports; and
(B) develop a conceptual plan, with alternative
approaches, for the future to ensure that the surface
transportation system will continue to serve the needs
of the United States, including specific
recommendations regarding design and operational
standards, Federal policies, and legislative changes.
(2) Specific issues.--In conducting the investigation and
study, the Secretary shall specifically address--
(A) the current condition and performance of the
Interstate System (including the physical condition of
bridges and pavements and operational characteristics
and performance), relying primarily on existing data
sources;
(B) the future of the Interstate System, based on a
range of legislative and policy approaches for 15-, 30-
, and 50-year time periods;
(C) the expected demographics and business uses
that impact the surface transportation system;
(D) the expected use of the surface transportation
system, including the effects of changing vehicle
types, modes of transportation, fleet size and weights,
and traffic volumes;
(E) desirable design policies and standards for
future improvements of the surface transportation
system, including additional access points;
(F) the identification of urban, rural, national,
and interregional needs for the surface transportation
system;
(G) the potential for expansion, upgrades, or other
changes to the surface transportation system,
including--
(i) deployment of advanced materials and
intelligent technologies;
(ii) critical multistate, urban, and rural
corridors needing capacity, safety, and
operational enhancements;
(iii) improvements to intermodal linkages;
(iv) security and military deployment
enhancements;
(v) strategies to enhance asset
preservation; and
(vi) implementation strategies;
(H) the improvement of emergency preparedness and
evacuation using the surface transportation system,
including--
(i) examination of the potential use of all
modes of the surface transportation system in
the safe and efficient evacuation of citizens
during times of emergency;
(ii) identification of the location of
critical bottlenecks; and
(iii) development of strategies to improve
system redundancy, especially in areas with a
high potential for terrorist attacks;
(I) alternatives for addressing environmental
concerns associated with the future development of the
surface transportation system;
(J) the evaluation and assessment of the current
and future capabilities for conducting system-wide
real-time performance data collection and analysis,
traffic monitoring, and transportation systems
operations and management; and
(K) a range of policy and legislative alternatives
for addressing future needs for the surface
transportation system, including funding needs and
potential approaches to provide funds.
(3) Technical advisory committee.--The Secretary shall
establish a technical advisory committee, in a manner
consistent with the Federal Advisory Committee Act (5 U.S.C.
App.), to collect and evaluate technical input from--
(A) the Department of Defense;
(B) appropriate Federal, State, and local officials
with responsibility for transportation;
(C) appropriate State and local elected officials;
(D) transportation and trade associations;
(E) emergency management officials;
(F) freight providers;
(G) the general public; and
(H) other entities and persons determined
appropriate by the Secretary to ensure a diverse range
of views.
(4) Report.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Environment and Public Works of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives, and make readily available to the public, a
report on the results of the investigation and study conducted
under this subsection.
SEC. 1203. FREIGHT TRANSPORTATION GATEWAYS; FREIGHT INTERMODAL
CONNECTIONS.
(a) Freight Transportation Gateways.--Chapter 3 of title 23, United
States Code, is amended by adding at the end the following:
``Sec. 325. Freight transportation gateways
``(a) In General.--
``(1) Establishment.--The Secretary shall establish a
freight transportation gateways program to improve
productivity, security, and safety of freight transportation
gateways, while mitigating congestion and community impacts in
the area of the gateways.
``(2) Purposes.--The purposes of the freight transportation
gateways program shall be--
``(A) to facilitate and support multimodal freight
transportation initiatives at the State and local
levels in order to improve freight transportation
gateways and mitigate the impact of congestion on the
environment in the area of the gateways;
``(B) to provide capital funding to address
infrastructure and freight operational needs at freight
transportation gateways;
``(C) to encourage adoption of new financing
strategies to leverage State, local, and private
investment in freight transportation gateways;
``(D) to facilitate access to intermodal freight
transfer facilities; and
``(E) to increase economic efficiency by
facilitating the movement of goods.
``(b) State Responsibilities.--
``(1) Project development process.--Each State, in
coordination with metropolitan planning organizations, shall
ensure that intermodal freight transportation, trade
facilitation, and economic development needs are adequately
considered and fully integrated into the project development
process, including transportation planning through final design
and construction of freight-related transportation projects.
``(2) Freight transportation coordinator.--
``(A) In general.--Each State shall designate a
freight transportation coordinator.
``(B) Duties.--The coordinator shall--
``(i) foster public and private sector
collaboration needed to implement complex
solutions to freight transportation and freight
transportation gateway problems, including--
``(I) coordination of metropolitan
and statewide transportation activities
with trade and economic interests;
``(II) coordination with other
States, agencies, and organizations to
find regional solutions to freight
transportation problems; and
``(III) coordination with local
officials of the Department of Defense
and the Department of Homeland
Security, and with other organizations,
to develop regional solutions to
military and homeland security
transportation needs; and
``(ii) promote programs that build
professional capacity to better plan,
coordinate, integrate, and understand freight
transportation needs for the State.
``(c) Innovative Finance Strategies.--
``(1) In general.--States and localities are encouraged to
adopt innovative financing strategies for freight
transportation gateway improvements, including--
``(A) new user fees;
``(B) modifications to existing user fees,
including trade facilitation charges;
``(C) revenue options that incorporate private
sector investment; and
``(D) a blending of Federal-aid and innovative
finance programs.
``(2) Technical assistance.--The Secretary shall provide
technical assistance to States and localities with respect to
the strategies.
``(d) Intermodal Freight Transportation Projects.--
``(1) Use of surface transportation program funds.--A State
may obligate funds apportioned to the State under section
104(b)(3) for publicly-owned intermodal freight transportation
projects that provide community and highway benefits by
addressing economic, congestion, system reliability, security,
safety, or environmental issues associated with freight
transportation gateways.
``(2) Eligible projects.--A project eligible for funding
under this section--
``(A) may include publicly-owned intermodal freight
transfer facilities, access to the facilities, and
operational improvements for the facilities (including
capital investment for intelligent transportation
systems), except that projects located within the
boundaries of port terminals shall only include the
surface transportation infrastructure modifications
necessary to facilitate direct intermodal interchange,
transfer, and access into and out of the port; and
``(B) may involve the combining of private and
public funds.''.
(b) Eligibility for Surface Transportation Program Funds.--Section
133(b) of title 23, United States Code, is amended by inserting after
paragraph (11) the following:
``(12) Intermodal freight transportation projects in
accordance with section 325(d)(2).''.
(c) Freight Intermodal Connections to NHS.--Section 103(b) of title
23, United States Code, is amended by adding at the end the following:
``(7) Freight intermodal connections to the nhs.--
``(A) Funding set-aside.--Of the funds apportioned
to a State for each fiscal year under section
104(b)(1), an amount determined in accordance with
subparagraph (B) shall only be available to the State
to be obligated for projects on--
``(i) National Highway System routes
connecting to intermodal freight terminals
identified according to criteria specified in
the report to Congress entitled `Pulling
Together: The National Highway System and its
Connections to Major Intermodal Terminals'
dated May 24, 1996, referred to in paragraph
(1), and any modifications to the connections
that are consistent with paragraph (4);
``(ii) strategic highway network connectors
to strategic military deployment ports; and
``(iii) projects to eliminate railroad
crossings or make railroad crossing
improvements.
``(B) Determination of amount.--The amount of funds
for each State for a fiscal year that shall be set
aside under subparagraph (A) shall be equal to the
greater of--
``(i) the product obtained by multiplying--
``(I) the total amount of funds
apportioned to the State under section
104(b)(1); by
``(II) the percentage of miles that
routes specified in subparagraph (A)
constitute of the total miles on the
National Highway System in the State;
or
``(ii) 2 percent of the annual
apportionment to the State of funds under
104(b)(1).
``(C) Exemption from set-aside.--For any fiscal
year, a State may obligate the funds otherwise set
aside by this paragraph for any project that is
eligible under paragraph (6) and is located in the
State on a segment of the National Highway System
specified in paragraph (2), if the State certifies and
the Secretary concurs that--
``(i) the designated National Highway
System intermodal connectors described in
subparagraph (A) are in good condition and
provide an adequate level of service for
military vehicle and civilian commercial
vehicle use; and
``(ii) significant needs on the designated
National Highway System intermodal connectors
are being met or do not exist.''.
(d) Federal Share Payable.--Section 120 of title 23, United States
Code, is amended by adding at the end the following:
``(m) Increased Federal Share for Connectors.--In the case of a
project to support a National Highway System intermodal freight
connection or strategic highway network connector to a strategic
military deployment port described in section 103(b)(7), except as
otherwise provided in section 120, the Federal share of the total cost
of the project shall be 90 percent.''.
(e) Length Limitations.--Section 31111(e) of title 49, United
States Code, is amended--
(1) by striking ``The'' and inserting the following:
``(1) In general.--The''; and
(2) by adding at the end the following:
``(2) Length limitations.--In the interests of economic
competitiveness, security, and intermodal connectivity, not
later than 3 years after the date of enactment of this
paragraph, States shall update the list of those qualifying
highways to include--
``(A) strategic highway network connectors to
strategic military deployment ports; and
``(B) National Highway System intermodal freight
connections serving military and commercial truck
traffic going to major intermodal terminals as
described in section 103(b)(7)(A)(i).''.
(f) Conforming Amendment.--The analysis of chapter 3 of title 23,
United States Code, is amended by adding at the end the following:
``325. Freight transportation gateways.''.
SEC. 1204. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 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.
``(b) Non-Contract Authority Authorization of Appropriations.--
``(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.
SEC. 1205. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE HIGHWAY.
(a) Designation.--Interstate Highway 86 in the State of New York,
extending from the Pennsylvania border near Lake Erie through Orange
County, New York, shall be known and designated as the ``Daniel Patrick
Moynihan Interstate Highway''.
(b) References.--Any reference in a law, map, regulation, document,
paper, or other record of the United States to the highway referred to
in subsection (a) shall be deemed to be a reference to the Daniel
Patrick Moynihan Interstate Highway.
SEC. 1206. STATE-BY-STATE COMPARISON OF HIGHWAY CONSTRUCTION COSTS.
(a) Collection of Data.--
(1) In general.--The Administrator of the Federal Highway
Administration (referred to in this section as the
``Administrator'') shall collect from States any bid price data
that is necessary to make State-by-State comparisons of highway
construction costs.
(2) Data required.--In determining which data to collect
and the procedures for collecting data, the Administrator shall
take into account the data collection deficiencies identified
in the report prepared by the General Accounting Office
numbered GAO-04-113R.
(b) Report.--
(1) In general.--The Administrator shall submit to Congress
an annual report on the bid price data collected under
subsection (a).
(2) Inclusions.--The report shall include--
(A) State-by-State comparisons of highway
construction costs for the previous fiscal year
(including the cost to construct a 1-mile road segment
of a standard design, as determined by the
Administrator); and
(B) a description of the competitive bidding
procedures used in each State; and
(C) a determination by Administrator as to whether
the competitive bidding procedures described under
subparagraph (B) are effective.
Subtitle C--Finance
SEC. 1301. FEDERAL SHARE.
Section 120 of title 23, United States Code, is amended--
(1) in subsection (a), by striking paragraph (1) and
inserting the following:
``(1) In general.--Except as otherwise provided in this
chapter, the Federal share payable on account of any project on
the Interstate System (including a project to add high
occupancy vehicle lanes and a project to add auxiliary lanes
but excluding a project to add any other lanes) shall be 90
percent of the total cost of the project.'';
(2) in subsection (b)--
(A) by striking ``Except as otherwise'' and
inserting the following:
``(1) In general.--Except as otherwise'';
(B) by striking ``shall be--'' and all that follows
and inserting ``shall be 80 percent of the cost of the
project.''; and
(C) by adding at the end the following:
``(2) State-determined lower federal share.--In the case of
any project subject to this subsection, a State may determine a
lower Federal share than the Federal share determined under
paragraph (1).'';
(3) by striking subsection (d) and inserting the following:
``(d) Increased Federal Share.--
``(1) In general.--The Federal share payable under
subsection (a) or (b) may be increased for projects and
activities in each State in which is located--
``(A) nontaxable Indian land;
``(B) public land (reserved or unreserved);
``(C) a national forest; or
``(D) a national park or monument.
``(2) Amount.--
``(A) In general.--The Federal share for States
described in paragraph (1) shall be increased by a
percentage of the remaining cost that--
``(i) is equal to the percentage that--
``(I) the area of all land
described in paragraph (1) in a State;
bears to
``(II) the total area of the State;
but
``(ii) does not exceed 95 percent of the
total cost of the project or activity for which
the Federal share is provided.
``(B) Adjustment.--The Secretary shall adjust the
Federal share for States under subparagraph (A) as the
Secretary determines necessary, on the basis of data
provided by the Federal agencies that are responsible
for maintaining the data.''.
SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.
Section 104 of title 23, United States Code, is amended by striking
subsection (k) and inserting the following:
``(k) Transfer of Highway and Transit Funds.--
``(1) Transfer of highway funds for transit projects.--
``(A) In general.--Subject to subparagraph (B),
funds made available for transit projects or
transportation planning under this title may be
transferred to and administered by the Secretary in
accordance with chapter 53 of title 49.
``(B) Non-federal share.--The provisions of this
title relating to the non-Federal share shall apply to
the transferred funds.
``(2) Transfer of transit funds for highway projects.--
Funds made available for highway projects or transportation
planning under chapter 53 of title 49 may be transferred to and
administered by the Secretary in accordance with this title.
``(3) Transfer of highway funds to other federal
agencies.--
``(A) In general.--Except as provided in clauses
(i) and (ii) and subparagraph (B), funds made available
under this title or any other Act that are derived from
Highway Trust Fund (other than the Mass Transit
account) may be transferred to another Federal agency
if--
``(i)(I) an expenditure is specifically
authorized in Federal-aid highway legislation
or as a line item in an appropriation act; or
``(II) a State transportation department
consents to the transfer of funds;
``(ii) the Secretary determines, after
consultation with the State transportation
department (as appropriate), that the Federal
agency should carry out a project with the
funds; and
``(iii) the other Federal agency agrees to
accept the transfer of funds and to administer
the project.
``(B) Administration.--
``(i) Procedures.--A project carried out
with funds transferred to a Federal agency
under subparagraph (A) shall be administered by
the Federal agency under the procedures of the
Federal agency.
``(ii) Appropriations.--Funds transferred
to a Federal agency under subparagraph (A)
shall not be considered an augmentation of the
appropriations of the Federal agency.
``(iii) Non-federal share.--The provisions
of this title, or an Act described in
subparagraph (A), relating to the non-Federal
share shall apply to a project carried out with
the transferred funds, unless the Secretary
determines that it is in the best interest of
the United States that the non-Federal share be
waived.
``(4) Transfer of funds among states or to federal highway
administration.--
``(A) In general.--Subject to subparagraphs (B)
through (D), the Secretary may, at the request of a
State, transfer funds apportioned or allocated to the
State to another State, or to the Federal Highway
Administration, for the purpose of funding 1 or more
specific projects.
``(B) Administration.--The transferred funds shall
be used for the same purpose and in the same manner for
which the transferred funds were authorized.
``(C) Apportionment.--The transfer shall have no
effect on any apportionment formula used to distribute
funds to States under this section or section 105 or
144.
``(D) Surface transportation program.--Funds that
are apportioned or allocated to a State under
subsection (b)(3) and attributed to an urbanized area
of a State with a population of over 200,000
individuals under section 133(d)(2) may be transferred
under this paragraph only if the metropolitan planning
organization designated for the area concurs, in
writing, with the transfer request.
``(5) Transfer of obligation authority.--Obligation
authority for funds transferred under this subsection shall be
transferred in the same manner and amount as the funds for the
projects are transferred under this subsection.''.
SEC. 1303. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT
AMENDMENTS.
(a) Definitions.--Section 181 of title 23, United States Code, is
amended--
(1) in paragraph (3), by striking ``category'' and
``offered into the capital markets'';
(2) by striking paragraph (7) and redesignating paragraphs
(8) through (15) as paragraphs (7) through (14) respectively;
(3) in paragraph (8) (as redesignated by paragraph (2))--
(A) in subparagraph (B), by striking the period at
the end and inserting a semicolon; and
(B) by striking subparagraph (D) and inserting the
following:
``(D) a project that--
``(i)(I) is a project for--
``(aa) a public freight rail
facility or a private facility
providing public benefit;
``(bb) an intermodal freight
transfer facility;
``(cc) a means of access to a
facility described in item (aa) or
(bb);
``(dd) a service improvement for a
facility described in item (aa) or (bb)
(including a capital investment for an
intelligent transportation system); or
``(II) comprises a series of projects
described in subclause (I) with the common
objective of improving the flow of goods;
``(ii) may involve the combining of private
and public sector funds, including investment
of public funds in private sector facility
improvements; and
``(iii) if located within the boundaries of
a port terminal, includes only such surface
transportation infrastructure modifications as
are necessary to facilitate direct intermodal
interchange, transfer, and access into and out
of the port.''; and
(4) in paragraph (10) (as redesignated by paragraph (2)) by
striking ``bond'' and inserting ``credit''.
(b) Determination of Eligibility and Project Selection.--Section
182 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) by striking paragraphs (1) and (2) and
inserting the following:
``(1) Inclusion in transportation plans and programs.--The
project shall satisfy the applicable planning and programming
requirements of sections 134 and 135 at such time as an
agreement to make available a Federal credit instrument is
entered into under this subchapter.
``(2) Application.--A State, local government, public
authority, public-private partnership, or any other legal
entity undertaking the project and authorized by the Secretary
shall submit a project application to the Secretary.'';
(B) in paragraph (3)(A)--
(i) in clause (i), by striking
``$100,000,000'' and inserting ``$50,000,000'';
and
(ii) in clause (ii), by striking ``50'' and
inserting ``20''; and
(C) in paragraph (4)--
(i) by striking ``Project financing'' and
inserting ``The Federal credit instrument'';
and
(ii) by inserting before the period at the
end the following: ``that also secure the
project obligations''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``criteria'' the
second place it appears and inserting ``requirements'';
and
(B) in paragraph (2)(B), by inserting ``(which may
be the Federal credit instrument)'' after
``obligations''.
(c) Secured Loans.--Section 183 of title 23, United States Code, is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``of any project selected
under section 182.'' at the end;
(ii) in subparagraphs (A) and (B), by
inserting ``of any project selected under
section 182'' after ``costs'' ; and
(iii) in subparagraph (B), by striking the
semicolon at the end and inserting a period;
and
(B) in paragraph (4)--
(i) by striking ``funding'' and inserting
``execution''; and
(ii) by striking ``rating,'' and all that
follows and inserting a period;
(2) in subsection (b)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Maximum amount.--The amount of the secured loan shall
not exceed the lesser of--
``(A) 33 percent of the reasonably anticipated
eligible project costs; or
``(B) the amount of the senior project
obligations.'';
(B) in paragraph (3)(A)(i), by inserting ``that
also secure the senior project obligations'' after
``sources''; and
(C) in paragraph (4), by striking ``marketable'';
and
(3) in subsection (c)--
(A) by striking paragraph (3);
(B) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively; and
(C) in paragraph (3) (as redesignated by
subparagraph (B))--
(i) in subparagraph (A), by striking
``during the 10 years''; and
(ii) in subparagraph (B)(ii), by striking
``loan'' and all that follows and inserting
``loan.''.
(d) Lines of Credit.--Section 184 of title 23, United States Code,
is amended--
(1) in subsection (b)--
(A) in paragraph (3), by striking ``interest, any
debt service reserve fund, and any other available
reserve'' and inserting ``interest (but not including
reasonably required financing reserves)'';
(B) in paragraph (4), by striking ``marketable
United States Treasury securities as of the date on
which the line of credit is obligated'' and inserting
`` United States Treasury securities as of the date of
execution of the line of credit agreement''; and
(C) in paragraph (5)(A)(i), by inserting ``that
also secure the senior project obligations'' after
``sources''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``scheduled'';
(ii) by inserting ``be scheduled to'' after
``shall''; and
(iii) by striking ``be fully repaid, with
interest,'' and inserting ``to conclude, with
full repayment of principal and interest,'';
and
(B) by striking paragraph (3).
(e) Program Administration.--Section 185 of title 23, United States
Code, is amended to read as follows:
``Sec. 185. Program administration
``(a) Requirement.--The Secretary shall establish a uniform system
to service the Federal credit instruments made available under this
subchapter.
``(b) Fees.--The Secretary may establish fees at a level to cover
all or a portion of the costs to the Federal government of servicing
the Federal credit instruments.
``(c) Servicer.--
``(1) In general.--The Secretary may appoint a financial
entity to assist the Secretary in servicing the Federal credit
instruments.
``(2) Duties.--The servicer shall act as the agent for the
Secretary.
``(3) Fee.--The servicer shall receive a servicing fee,
subject to approval by the Secretary.
``(d) Assistance From Expert Firms.--The Secretary may retain the
services of expert firms, including counsel, in the field of municipal
and project finance to assist in the underwriting and servicing of
Federal credit instruments.''.
(f) Funding.--Section 188 of title 23, United States Code, is
amended to read as follows:
``Sec. 188. Funding
``(a) Funding.--
``(1) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this subchapter $130,000,000 for each of
fiscal years 2004 through 2009.
``(2) Administrative costs.--Of amounts made available
under paragraph (1), the Secretary may use for the
administration of this subchapter not more than $2,000,000 for
each of fiscal years 2004 through 2009.
``(3) Collected fees and services.--In addition to funds
provided under paragraph (2)--
``(A) all fees collected under this subchapter
shall be made available without further appropriation
to the Secretary until expended, for use in
administering this subchapter; and
``(B) the Secretary may accept and use payment or
services provided by transaction participants, or third
parties that are paid by participants from transaction
proceeds, for due diligence, legal, financial, or
technical services.
``(4) Availability.--Amounts made available under paragraph
(1) shall remain available until expended.
``(b) Contract Authority.--
``(1) In general.--Notwithstanding any other provision of
law, approval by the Secretary of a Federal credit instrument
that uses funds made available under this subchapter shall be
deemed to be acceptance by the United States of a contractual
obligation to fund the Federal credit investment.
``(2) Availability.--Amounts authorized under this section
for a fiscal year shall be available for obligation on October
1 of the fiscal year.''.
(g) Repeal.--Section 189 of title 23, United States code, is
repealed.
(h) Conforming Amendments.--The analysis for chapter 1 of title 23,
United States Code, is amended--
(1) by striking the item relating to section 185 and
inserting the following:
``185. Program administration.'';
and
(2) by striking the item relating to section 189.
SEC. 1304. FACILITATION OF INTERNATIONAL REGISTRATION PLANS AND
INTERNATIONAL FUEL TAX AGREEMENTS.
(a) In General.--Chapter 317 of title 49, United States Code, is
amended by adding at the end the following:
``Sec. 31708. Facilitation of international registration plans and
international fuel tax agreements
``The Secretary may provide assistance to any State that is
participating in the International Registration Plan and International
Fuel Tax Agreement, as provided in sections 31704 and 31705,
respectively, and that serves as a base jurisdiction for motor carriers
that are domiciled in Mexico, to assist the State with administrative
costs resulting from serving as a base jurisdiction for motor carriers
from Mexico.''.
(b) Conforming Amendment.--The analysis for chapter 317 of title
49, United States Code, is amended by adding at the end the following:
``31708. Facilitation of international registration plans and
international fuel tax agreements.''.
SEC. 1305. NATIONAL COMMISSION ON FUTURE REVENUE SOURCES TO SUPPORT THE
HIGHWAY TRUST FUND AND FINANCE THE NEEDS OF THE SURFACE
TRANSPORTATION SYSTEM.
(a) Establishment.--There is established a commission to be known
as the ``National Commission on Future Revenue Sources to Support the
Highway Trust Fund and Finance the Needs of the Surface Transportation
System'' (referred to in this section as the ``Commission'').
(b) Membership.--
(1) Composition.--The Commission shall be composed of 11
members, of whom--
(A) 3 members shall be appointed by the President;
(B) 2 members shall be appointed by the Speaker of
the House of Representatives;
(C) 2 members shall be appointed by the minority
leader of the House of Representatives;
(D) 2 members shall be appointed by the majority
leader of the Senate; and
(E) 2 members shall be appointed by the minority
leader of the Senate.
(2) Qualifications.--Members appointed under paragraph (1)
shall have experience in or represent the interests of--
(A) public finance, including experience in
developing State and local revenue resources;
(B) surface transportation program administration;
(C) organizations that use surface transportation
facilities;
(D) academic research into related issues; or
(E) other activities that provide unique
perspectives on current and future requirements for
revenue sources to support the Highway Trust Fund.
(3) Date of appointments.--The appointment of a member of
the Commission shall be made not later than 120 days after the
date of establishment of the Commission.
(4) Terms.--A member shall be appointed for the life of the
Commission.
(5) Vacancies.--A vacancy on the Commission--
(A) shall not affect the powers of the Commission;
and
(B) shall be filled in the same manner as the
original appointment was made.
(6) Initial meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed, the
Commission shall hold the initial meeting of the Commission.
(7) Meetings.--The Commission shall meet at the call of the
Chairperson.
(8) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(9) Chairperson and vice chairperson.--The Commission shall
select a Chairperson and Vice Chairperson from among the
members of the Commission.
(c) Duties.--
(1) In general.--The Commission shall--
(A) conduct a comprehensive study of alternatives
to replace or to supplement the fuel tax as the
principal revenue source to support the Highway Trust
Fund and suggest new or alternative sources of revenue
to fund the needs of the surface transportation system
over at least the next 30 years;
(B) conduct the study in a manner that builds on--
(i) findings, conclusions, and
recommendations of the recent study conducted
by the Transportation Research Board on
alternatives to the fuel tax to support highway
program financing; and
(ii) other relevant prior research;
(C) consult with the Secretary and the Secretary of
the Treasury in conducting the study to ensure that the
views of the Secretaries concerning essential
attributes of Highway Trust Fund revenue alternatives
are considered;
(D) consult with representatives of State
Departments of Transportation and metropolitan planning
organizations and other key interested stakeholders in
conducting the study to ensure that--
(i) the views of the stakeholders on
alternative revenue sources to support State
transportation improvement programs are
considered; and
(ii) any recommended Federal financing
strategy takes into account State financial
requirements; and
(E) based on the study, make specific
recommendations regarding--
(i) actions that should be taken to develop
alternative revenue sources to support the
Highway Trust Fund; and
(ii) the time frame for taking those
actions.
(2) Specific matters.--The study shall address
specifically--
(A) the advantages and disadvantages of alternative
revenue sources to meet anticipated Federal surface
transportation financial requirements;
(B) recommendations concerning the most promising
revenue sources to support long-term Federal surface
transportation financing requirements;
(C) development of a broad transition strategy to
move from the current tax base to new funding
mechanisms, including the time frame for various
components of the transition strategy;
(D) recommendations for additional research that
may be needed to implement recommended alternatives;
and
(E) the extent to which revenues should reflect the
relative use of the highway system.
(3) Related work.--To the maximum extent practicable, the
study shall build on related work that has been done by--
(A) the Secretary of Transportation;
(B) the Secretary of Energy;
(C) the Transportation Research Board; and
(D) other entities and persons.
(4) Factors.--In developing recommendations under this
subsection, the Commission shall consider--
(A) the ability to generate sufficient revenues
from all modes to meet anticipated long-term surface
transportation financing needs;
(B) the roles of the various levels of government
and the private sector in meeting future surface
transportation financing needs;
(C) administrative costs (including enforcement
costs) to implement each option;
(D) the expected increase in non-taxed fuels and
the impact of taxing those fuels;
(E) the likely technological advances that could
ease implementation of each option;
(F) the equity and economic efficiency of each
option;
(G) the flexibility of different options to allow
various pricing alternatives to be implemented; and
(H) potential compatibility issues with State and
local tax mechanisms under each alternative.
(5) Report and recommendations.--Not later than September
30, 2007, the Commission shall submit to Congress a final
report that contains--
(A) a detailed statement of the findings and
conclusions of the Commission; and
(B) the recommendations of the Commission for such
legislation and administrative actions as the
Commission considers appropriate.
(d) Powers.--
(1) Hearings.--The Commission may hold such hearings, meet
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable to
carry out this section.
(2) Information from federal agencies.--
(A) In general.--The Commission may secure directly
from a Federal agency such information as the
Commission considers necessary to carry out this
section.
(B) Provision of information.--On request of the
Chairperson of the Commission, the head of the agency
shall provide the information to the Commission.
(3) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other agencies of the Federal Government.
(4) Donations.--The Commission may accept, use, and dispose
of donations of services or property.
(e) Commission Personnel Matters.--
(1) Members.--A member of the Commission shall serve
without pay but shall be allowed travel expenses, including per
diem in lieu of subsistence, at rates authorized for an
employee of an agency under subchapter I of chapter 57 of title
5, United States Code, while away from the home or regular
place of business of the member in the performance of the
duties of the Commission.
(2) Contractor.--The Commission may contract with an
appropriate organization, agency, or entity to conduct the
study required under this section, under the strategic guidance
of the Commission.
(3) Administrative support.--On the request of the
Commission, the Administrator of the Federal Highway
Administration shall provide to the Commission, on a
reimbursable basis, the administrative support and services
necessary for the Commission to carry out the duties of the
Commission under this section.
(4) Detail of department personnel.--
(A) In general.--On the request of the Commission,
the Secretary may detail, on a reimbursable basis, any
of the personnel of the Department to the Commission to
assist the Commission in carrying out the duties of the
Commission under this section.
(B) Civil service status.--The detail of the
employee shall be without interruption or loss of civil
service status or privilege.
(5) Cooperation.--The staff of the Secretary shall
cooperate with the Commission in the study required under this
section, including providing such nonconfidential data and
information as are necessary to conduct the study.
(f) Relationship to Other Laws.--
(1) In general.--Except as provided in paragraphs (2) and
(3), funds made available to carry out this section shall be
available for obligation in the same manner as if the funds
were apportioned under chapter 1 of title 23, United States
Code.
(2) Federal share.--The Federal share of the cost of the
study and the Commission under this section shall be 100
percent.
(3) Availability.--Funds made available to carry out this
section shall remain available until expended.
(g) Authorization of Appropriations.--There is authorized to be
appropriated from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this section $3,000,000 for fiscal year 2004.
(h) Termination.--
(1) In general.--The Commission shall terminate on the date
that is 180 days after the date on which the Commission submits
the report of the Commission under subsection (c)(5).
(2) Records.--Not later than the termination date for the
Commission, all records and papers of the Commission shall be
delivered to the Archivist of the United States for deposit in
the National Archives.
SEC. 1306. STATE INFRASTRUCTURE BANKS.
Section 1511(b)(1)(A) of the Transportation Equity Act for the 21st
Century (23 U.S.C. 181 note; 112 Stat. 251) is amended by striking
``Missouri,'' and all that follows through ``for the establishment''
and inserting ``Missouri, Rhode Island, Texas, and any other State that
seeks such an agreement for the establishment''.
SEC. 1307. PUBLIC-PRIVATE PARTNERSHIPS PILOT PROGRAM.
Section 109(c) of title 23, United States Code, is amended by
adding at the end the following:
``(3) Public-private partnerships pilot program.--
``(A) In general.--The Secretary may undertake a
pilot program to demonstrate the advantages of public-
private partnerships for critical capital development
projects, including highway, bridge, and freight
intermodal connector projects authorized under this
title.
``(B) Projects.--In carrying out the program, the
Secretary shall--
``(i) select not less than 10 qualified
public-private partnership projects that are
authorized under applicable State and local
laws; and
``(ii) use funds made available to carry
out the program to provide to sponsors of the
projects assistance for development phase
activities described in section 181(1)(A), to
enhance project delivery and reduce overall
costs.''.
SEC. 1308. WAGERING.
(a) In General.--Chapter 35 of the Internal Revenue Code of 1986 is
repealed.
(b) Conforming Amendments.--
(1) Section 4901 of the Internal Revenue Code is amended to
read as follows:
``SEC. 4901. PAYMENT OF TAX.
``All special taxes shall be imposed as of on the first day of July
in each year, or on commencing any trade or business on which such tax
is imposed. In the former case the tax shall be reckoned for 1 year,
and in the latter case it shall be reckoned proportionately, from the
first day of the month in which the liability to a special tax
commenced, to and including the 30th day of June following.''.
(2) Section 4903 of such Code is amended by striking ``,
other than the tax imposed by section 4411,''.
(3) Section 4905 of such Code is amended to read as
follows:
``SEC. 4905. LIABILITY IN CASE OF DEATH OR CHANGE OF LOCATION.
``When any person who has paid the special tax for any trade or
business dies, his spouse or child, or executors or administrators or
other legal representatives, may occupy the house or premises, and in
like manner carry on, for the residue of the term for which the tax is
paid, the same trade or business as the deceased before carried on, in
the same house and upon the same premises, without the payment of any
additional tax. When any person removes from the house or premises for
which any trade or business was taxed to any other place, he may carry
on the trade or business specified in the register kept in the office
of the official in charge of the internal revenue district at the place
to which he removes, without the payment of any additional tax:
Provided, That all cases of death, change, or removal, as aforesaid,
with the name of the successor to any person deceased, or of the person
making such change or removal, shall be registered with the Secretary,
under regulations to be prescribed by the Secretary.''.
(4) Section 4907 of such Code is amended by striking ``,
except the tax imposed by section 4411,''.
(5) Section 6103(i)(8)(A) of such Code is amended--
(A) by striking ``, except to the extent authorized
by subsection (f) or (p)(6), disclose to any person,
other than another officer or employee of such office
whose official duties require such disclosure, any
return or return information described in section
4424(a) in a form which can be associated with, or
otherwise identify, directly or indirectly, a
particular taxpayer, nor shall such officer or employee
disclose any other'' and inserting ``disclose any'',
and
(B) by striking ``such other officer'' and
inserting ``such officer''.
(6) Section 6103(o) of such Code is amended to read as
follows:
``(o) Disclosure of Returns and Return Information With Respect to
Taxes Imposed by Subtitle E.--Returns and return information with
respect to taxes imposed by subtitle E (relating to taxes on alcohol,
tobacco, and firearms) shall be open to inspection by or disclosure to
officers and employees of a Federal agency whose official duties
require such inspection or disclosure.''.
(7)(A) Subchapter B of chapter 65 of such Code is amended
by striking section 6419 (relating to excise tax on wagering).
(B) The table of section of subchapter B of chapter 65 of
such Code is amended by striking the item relating to section
6419.
(8) Section 6806 of such Code is amended by striking
``under subchapter B of chapter 35, under subchapter B of
chapter 36,'' and inserting ``under subchapter B of chapter
36''.
(9) Section 7012 of such Code is amended by striking
paragraph (2) and by redesignating paragraphs (3), (4), and (5)
as paragraphs (2), (3), and (4), respectively.
(10)(A) Subchapter B of chapter 75 of such Code is amended
by striking section 7262 (relating to violation of occupational
tax laws relating to wagering-failure to pay special tax).
(B) The table of sections of subchapter B of chapter 75 of
such Code is amended by striking the item relating to section
7262.
(11) Section 7272 of such Code, as amended by section 5244
of this Act, is amended to read as follows:
``SEC. 7272. PENALTY FOR FAILURE TO REGISTER.
``Any person (other than persons required to register under
subtitle E, or persons engaging in a trade or business on which a
special tax is imposed by such subtitle) who fails to register with the
Secretary as required by this title or by regulations issued thereunder
shall be liable to a penalty of $50 ($10,000 in the case of a failure
to register under section 4101).''.
(12) Section 7613(a) is amended by striking ``or other data
in the case of'' and all that follows and inserting ``or other
data in the case of alcohol, tobacco, and firearms taxes, see
subtitle E.''.
(13) The table of chapters of subtitle D of such Code is
amended by striking the item relating to chapter 35.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to wagers placed
after the date of the enactment of this Act.
(2) Special taxes.--In the case of amendments made by this
section relating to special taxes imposed by subchapter B of
chapter 35, the amendments made by this section shall take
effect on July 1, 2004.
Subtitle D--Safety
SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.
(a) Safety Improvement.--
(1) In general.--Section 148 of title 23, United States
Code, is amended to read as follows:
``Sec. 148. Highway safety improvement program
``(a) Definitions.--In this section:
``(1) Highway safety improvement program.--The term
`highway safety improvement program' means the program carried
out under this section.
``(2) Highway safety improvement project.--
``(A) In general.--The term `highway safety
improvement project' means a project described in the
State strategic highway safety plan that--
``(i) corrects or improves a hazardous road
location or feature; or
``(ii) addresses a highway safety problem.
``(B) Inclusions.--The term `highway safety
improvement project' includes a project for--
``(i) an intersection safety improvement;
``(ii) pavement and shoulder widening
(including addition of a passing lane to remedy
an unsafe condition);
``(iii) installation of rumble strips or
another warning device, if the rumble strips or
other warning devices do not adversely affect
the safety or mobility of bicyclists and
pedestrians;
``(iv) installation of a skid-resistant
surface at an intersection or other location
with a high frequency of accidents;
``(v) an improvement for pedestrian or
bicyclist safety;
``(vi)(I) construction of any project for
the elimination of hazards at a railway-highway
crossing that is eligible for funding under
section 130, including the separation or
protection of grades at railway-highway
crossings;
``(II) construction of a railway-highway
crossing safety feature; or
``(III) the conduct of a model traffic
enforcement activity at a railway-highway
crossing;
``(vii) construction of a traffic calming
feature;
``(viii) elimination of a roadside
obstacle;
``(ix) improvement of highway signage and
pavement markings;
``(x) installation of a priority control
system for emergency vehicles at signalized
intersections;
``(xi) installation of a traffic control or
other warning device at a location with high
accident potential;
``(xii) safety-conscious planning;
``(xiii) improvement in the collection and
analysis of crash data;
``(xiv) planning, integrated, interoperable
emergency communications, equipment,
operational activities, or traffic enforcement
activities (including police assistance)
relating to workzone safety;
``(xv) installation of guardrails, barriers
(including barriers between construction work
zones and traffic lanes for the safety of
motorists and workers), and crash attenuators;
``(xvi) the addition or retrofitting of
structures or other measures to eliminate or
reduce accidents involving vehicles and
wildlife; or
``(xvii) installation and maintenance of
signs (including fluorescent, yellow-green
signs) at pedestrian-bicycle crossings and in
school zones.
``(3) Safety project under any other section.--
``(A) In general.--The term `safety project under
any other section' means a project carried out for the
purpose of safety under any other section of this
title.
``(B) Inclusion.--The term `safety project under
any other section' includes a project to--
``(i) promote the awareness of the public
and educate the public concerning highway
safety matters; or
``(ii) enforce highway safety laws.
``(4) State highway safety improvement program.--The term
`State highway safety improvement program' means projects or
strategies included in the State strategic highway safety plan
carried out as part of the State transportation improvement
program under section 135(f).
``(5) State strategic highway safety plan.--The term `State
strategic highway safety plan' means a plan developed by the
State transportation department that--
``(A) is developed after consultation with--
``(i) a highway safety representative of
the Governor of the State;
``(ii) regional transportation planning
organizations and metropolitan planning
organizations, if any;
``(iii) representatives of major modes of
transportation;
``(iv) State and local traffic enforcement
officials;
``(v) persons responsible for administering
section 130 at the State level;
``(vi) representatives conducting Operation
Lifesaver;
``(vii) representatives conducting a motor
carrier safety program under section 31104 or
31107 of title 49;
``(viii) motor vehicle administration
agencies; and
``(ix) other major State and local safety
stakeholders;
``(B) analyzes and makes effective use of State,
regional, or local crash data;
``(C) addresses engineering, management, operation,
education, enforcement, and emergency services elements
(including integrated, interoperable emergency
communications) of highway safety as key factors in
evaluating highway projects;
``(D) considers safety needs of, and high-fatality
segments of, public roads;
``(E) considers the results of State, regional, or
local transportation and highway safety planning
processes;
``(F) describes a program of projects or strategies
to reduce or eliminate safety hazards;
``(G) is approved by the Governor of the State or a
responsible State agency; and
``(H) is consistent with the requirements of
section 135(f).
``(b) Program.--
``(1) In general.--The Secretary shall carry out a highway
safety improvement program.
``(2) Purpose.--The purpose of the highway safety
improvement program shall be to achieve a significant reduction
in traffic fatalities and serious injuries on public roads.
``(c) Eligibility.--
``(1) In general.--To obligate funds apportioned under
section 104(b)(5) to carry out this section, a State shall have
in effect a State highway safety improvement program under
which the State--
``(A) develops and implements a State strategic
highway safety plan that identifies and analyzes
highway safety problems and opportunities as provided
in paragraph (2);
``(B) produces a program of projects or strategies
to reduce identified safety problems;
``(C) evaluates the plan on a regular basis to
ensure the accuracy of the data and priority of
proposed improvements; and
``(D) submits to the Secretary an annual report
that--
``(i) describes, in a clearly
understandable fashion, not less than 5 percent
of locations determined by the State, using
criteria established in accordance with
paragraph (2)(B)(ii), as exhibiting the most
severe safety needs; and
``(ii) contains an assessment of--
``(I) potential remedies to
hazardous locations identified;
``(II) estimated costs associated
with those remedies; and
``(III) impediments to
implementation other than cost
associated with those remedies.
``(2) Identification and analysis of highway safety
problems and opportunities.--As part of the State strategic
highway safety plan, a State shall--
``(A) have in place a crash data system with the
ability to perform safety problem identification and
countermeasure analysis;
``(B) based on the analysis required by
subparagraph (A)--
``(i) identify hazardous locations,
sections, and elements (including roadside
obstacles, railway-highway crossing needs, and
unmarked or poorly marked roads) that
constitute a danger to motorists, bicyclists,
pedestrians, and other highway users; and
``(ii) using such criteria as the State
determines to be appropriate, establish the
relative severity of those locations, in terms
of accidents, injuries, deaths, traffic volume
levels, and other relevant data;
``(C) adopt strategic and performance-based goals
that--
``(i) address traffic safety, including
behavioral and infrastructure problems and
opportunities on all public roads;
``(ii) focus resources on areas of greatest
need; and
``(iii) are coordinated with other State
highway safety programs;
``(D) advance the capabilities of the State for
traffic records data collection, analysis, and
integration with other sources of safety data (such as
road inventories) in a manner that--
``(i) complements the State highway safety
program under chapter 4 and the commercial
vehicle safety plan under section 31102 of
title 49;
``(ii) includes all public roads;
``(iii) identifies hazardous locations,
sections, and elements on public roads that
constitute a danger to motorists, bicyclists,
pedestrians, and other highway users; and
``(iv) includes a means of identifying the
relative severity of hazardous locations
described in clause (iii) in terms of
accidents, injuries, deaths, and traffic volume
levels;
``(E)(i) determine priorities for the correction of
hazardous road locations, sections, and elements
(including railway-highway crossing improvements), as
identified through crash data analysis;
``(ii) identify opportunities for preventing the
development of such hazardous conditions; and
``(iii) establish and implement a schedule of
highway safety improvement projects for hazard
correction and hazard prevention; and
``(F)(i) establish an evaluation process to analyze
and assess results achieved by highway safety
improvement projects carried out in accordance with
procedures and criteria established by this section;
and
``(ii) use the information obtained under clause
(i) in setting priorities for highway safety
improvement projects.
``(d) Eligible Projects.--
``(1) In general.--A State may obligate funds apportioned
to the State under section 104(b)(5) to carry out--
``(A) any highway safety improvement project on any
public road or publicly owned bicycle or pedestrian
pathway or trail; or
``(B) as provided in subsection (e), for other
safety projects.
``(2) Use of other funding for safety.--
``(A) Effect of section.--Nothing in this section
prohibits the use of funds made available under other
provisions of this title for highway safety improvement
projects.
``(B) Use of other funds.--States are encouraged to
address the full scope of their safety needs and
opportunities by using funds made available under other
provisions of this title (except a provision that
specifically prohibits that use).
``(e) Flexible Funding for States With a Strategic Highway Safety
Plan.--
``(1) In general.--To further the implementation of a State
strategic highway safety plan, a State may use up to 25 percent
of the amount of funds made available under this section for a
fiscal year to carry out safety projects under any other
section as provided in the State strategic highway safety plan.
``(2) Other transportation and highway safety plans.--
Nothing in this subsection requires a State to revise any State
process, plan, or program in effect on the date of enactment of
this section.
``(f) Reports.--
``(1) In general.--A State shall submit to the Secretary a
report that--
``(A) describes progress being made to implement
highway safety improvement projects under this section;
``(B) assesses the effectiveness of those
improvements; and
``(C) describes the extent to which the
improvements funded under this section contribute to
the goals of--
``(i) reducing the number of fatalities on
roadways;
``(ii) reducing the number of roadway-
related injuries;
``(iii) reducing the occurrences of
roadway-related crashes;
``(iv) mitigating the consequences of
roadway-related crashes; and
``(v) reducing the occurrences of roadway-
railroad grade crossing crashes.
``(2) Contents; schedule.--The Secretary shall establish
the content and schedule for a report under paragraph (1).
``(3) Transparency.--The Secretary shall make reports under
subsection (c)(1)(D) available to the public through--
``(A) the Internet site of the Department; and
``(B) such other means as the Secretary determines
to be appropriate.
``(4) Discovery and admission into evidence of certain
reports, surveys, and information.--Notwithstanding any other
provision of law, 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.
``(g) Federal Share of Highway Safety Improvement Projects.--Except
as provided in sections 120 and 130, the Federal share of the cost of a
highway safety improvement project carried out with funds made
available under this section shall be 90 percent.
``(h) Funds for Bicycle and Pedestrian Safety.--A State shall
allocate for bicycle and pedestrian improvements in the State a
percentage of the funds remaining after implementation of sections
130(e) and 150, in an amount that is equal to or greater than the
percentage of all fatal crashes in the States involving bicyclists and
pedestrians.
``(i) Roadway Safety Improvements for Older Drivers and
Pedestrians.--For each of fiscal years 2004 through 2009, $25,000,000
is authorized to be appropriated out of the Highway Trust Fund (other
than the Mass Transit Account) for projects in all States to improve
traffic signs and pavement markings in a manner consistent with the
recommendations included in the publication of the Federal Highway
Administration entitled `Guidelines and Recommendations to Accommodate
Older Drivers and Pedestrians (FHWA-RD-01-103)' and dated October
2001.''.
(2) Allocations of apportioned funds.--Section 133(d) of
title 23, United States Code, is amended--
(A) by striking paragraph (1);
(B) by redesignating paragraphs (2) through (5) as
paragraphs (1) through (4), respectively;
(C) in paragraph (2) (as redesignated by
subparagraph (B))--
(i) in the first sentence of subparagraph
(A)--
(I) by striking ``subparagraphs (C)
and (D)'' and inserting ``subparagraph
(C)''; and
(II) by striking ``80 percent'' and
inserting ``90 percent'';
(ii) in subparagraph (B), by striking
``tobe'' and inserting ``to be'';
(iii) by striking subparagraph (C);
(iv) by redesignating subparagraphs (D) and
(E) as subparagraphs (C) and (D), respectively;
and
(v) in subparagraph (C) (as redesignated by
clause (iv)), by adding a period at the end;
and
(D) in paragraph (4)(A) (as redesignated by
subparagraph (B)), by striking ``paragraph (2)'' and
inserting ``paragraph (1)''.
(3) Administration.--Section 133(e) of title 23, United
States Code, is amended in each of paragraphs (3)(B)(i),
(5)(A), and (5)(B) of subsection (e), by striking ``(d)(2)''
each place it appears and inserting ``(d)(1)''.
(4) Conforming amendments.--
(A) The analysis for chapter 1 of title 23, United
States Code, is amended by striking the item relating
to section 148 and inserting the following:
``148. Highway safety improvement program.''.
(B) Section 104(g) of title 23, United States Code,
is amended in the first sentence by striking ``sections
130, 144, and 152 of this title'' and inserting
``sections 130 and 144''.
(C) Section 126 of title 23, United States Code, is
amended--
(i) in subsection (a), by inserting
``under'' after ``State's apportionment''; and
(ii) in subsection (b)--
(I) in the first sentence, by
striking ``the last sentence of section
133(d)(1) or to section 104(f) or to
section 133(d)(3)'' and inserting
``section 104(f) or 133(d)(2)''; and
(II) in the second sentence, by
striking ``or 133(d)(2)''.
(D) Sections 154, 164, and 409 of title 23, United
States Code, are amended by striking ``152'' each place
it appears and inserting ``148''.
(b) Apportionment of Highway Safety Improvement Program Funds.--
Section 104(b) of title 23, United States Code, is amended--
(1) in the matter preceding paragraph (1), by inserting
after ``Improvement program,'' the following: ``the highway
safety improvement program,''; and
(2) by adding at the end the following:
``(5) Highway safety improvement program.--
``(A) In general.--For the highway safety
improvement program, in accordance with the following
formula:
``(i) 25 percent of the apportionments in
the ratio that--
``(I) the total lane miles of
Federal-aid highways in each State;
bears to
``(II) the total lane miles of
Federal-aid highways in all States.
``(ii) 40 percent of the apportionments in
the ratio that--
``(I) the total vehicle miles
traveled on lanes on Federal-aid
highways in each State; bears to
``(II) the total vehicle miles
traveled on lanes on Federal-aid
highways in all States.
``(iii) 35 percent of the apportionments in
the ratio that--
``(I) the estimated tax payments
attributable to highway users in each
State paid into the Highway Trust Fund
(other than the Mass Transit Account)
in the latest fiscal year for which
data are available; bears to
``(II) the estimated tax payments
attributable to highway users in all
States paid into the Highway Trust Fund
(other than the Mass Transit Account)
in the latest fiscal year for which
data are available.
``(B) Minimum apportionment.--Notwithstanding
subparagraph (A), each State shall receive a minimum of
\1/2\ of 1 percent of the funds apportioned under this
paragraph.''.
(c) Elimination of Hazards Relating to Railway-Highway Crossings.--
(1) Funds for railway-highway crossings.--Section 130(e) of
title 23, United States Code, is amended by inserting before
``At least'' the following: ``For each fiscal year, at least
$200,000,000 of the funds authorized and expended under section
148 shall be available for the elimination of hazards and the
installation of protective devices at railway-highway
crossings.''.
(2) Biennial reports to congress.--Section 130(g) of title
23, United States Code, is amended in the third sentence--
(A) by inserting ``and the Committee on Commerce,
Science, and Transportation,'' after ``Public Works'';
and
(B) by striking ``not later than April 1 of each
year'' and inserting ``every other year''.
(3) Expenditure of funds.--Section 130 of title 23, United
States Code, is amended by adding at the end the following:
``(k) Expenditure of Funds.--Funds made available to carry out this
section shall be--
``(1) available for expenditure on compilation and analysis
of data in support of activities carried out under subsection
(g); and
``(2) apportioned in accordance with section 104(b)(5).''.
(d) Transition.--
(1) Implementation.--Except as provided in paragraph (2),
the Secretary shall approve obligations of funds apportioned
under section 104(b)(5) of title 23, United States Code (as
added by subsection (b)) to carry out section 148 of that
title, only if, not later than October 1 of the second fiscal
year after the date of enactment of this Act, a State has
developed and implemented a State strategic highway safety plan
as required under section 148(c) of that title.
(2) Interim period.--
(A) In general.--Before October 1 of the second
fiscal year after the date of enactment of this Act and
until the date on which a State develops and implements
a State strategic highway safety plan, the Secretary
shall apportion funds to a State for the highway safety
improvement program and the State may obligate funds
apportioned to the State for the highway safety
improvement program under section 148 for projects that
were eligible for funding under sections 130 and 152 of
that title, as in effect on the day before the date of
enactment of this Act.
(B) No strategic highway safety plan.--If a State
has not developed a strategic highway safety plan by
October 1 of the second fiscal year after the date of
enactment of this Act, but demonstrates to the
satisfaction of the Secretary that progress is being
made toward developing and implementing such a plan,
the Secretary shall continue to apportion funds for 1
additional fiscal year for the highway safety
improvement program under section 148 of title 23,
United States Code, to the State, and the State may
continue to obligate funds apportioned to the State
under this section for projects that were eligible for
funding under sections 130 and 152 of that title, as in
effect on the day before the date of enactment of this
Act.
(C) Penalty.--If a State has not adopted a
strategic highway safety plan by the date that is 2
years after the date of enactment of this Act, funds
made available to the State under section 1101(6) shall
be redistributed to other States in accordance with
section 104(b)(3) of title 23, United States Code.
SEC. 1402. OPERATION LIFESAVER.
Section 104(d)(1) of title 23, United States Code, is amended--
(1) by striking ``subsection (b)(3)'' and inserting
``subsection (b)(5)''; and
(2) by striking ``$500,000'' and inserting ``$600,000''.
SEC. 1403. LICENSE SUSPENSION.
Section 164(a) of title 23, United States Code, is amended by
striking paragraph (3) and inserting the following:
``(3) License suspension.--The term `license suspension'
means--
``(A) the suspension of all driving privileges of
an individual for the duration of the suspension
period; or
``(B) a combination of suspension of all driving
privileges of an individual for the first 90 days of
the suspension period, followed by reinstatement of
limited driving privileges requiring the individual to
operate only motor vehicles equipped with an ignition
interlock system or other device approved by the
Secretary during the remainder of the suspension
period.''.
SEC. 1404. BUS AXLE WEIGHT EXEMPTION.
Section 1023 of the Intermodal Surface Transportation Efficiency
Act of 1991 (23 U.S.C. 127 note; 105 Stat. 1951) is amended by striking
subsection (h) and inserting the following:
``(h) Over-the-Road Bus and Public Transit Vehicle Exemption.--
``(1) In general.--The second sentence of section 127 of
title 23, United States Code (relating to axle weight
limitations for vehicles using the Dwight D. Eisenhower System
of Interstate and Defense Highways), shall not apply to--
``(A) any over-the-road bus (as defined in section
301 of the Americans With Disabilities Act of 1990 (42
U.S.C. 12181)); or
``(B) any vehicle that is regularly and exclusively
used as an intrastate public agency transit passenger
bus.
``(2) State action.--No State or political subdivision of a
State, or any political authority of 2 or more States, shall
impose any axle weight limitation on any vehicle described in
paragraph (1) in any case in which such a vehicle is using the
Dwight D. Eisenhower System of Interstate and Defense
Highways.''.
SEC. 1405. SAFE ROUTES TO SCHOOLS PROGRAM.
(a) In General.--Subchapter I of chapter I of title 23, United
States Code, is amended by inserting after section 149 the following:
``Sec. 150. Safe routes to schools program
``(a) Definitions.--In this section:
``(1) Primary and secondary school.--The term `primary and
secondary school' means a school that provides education to
children in any of grades kindergarten through 12.
``(2) Program.--The term `program' means the safe routes to
schools program established under subsection (b).
``(3) Vicinity of a school.--The term `vicinity of a
school' means the area within 2 miles of a primary or secondary
school.
``(b) Establishment.--The Secretary shall establish and carry out a
safe routes to school program for the benefit of children in primary
and secondary schools in accordance with this section.
``(c) Purposes.--The purposes of the program shall be--
``(1) to enable and to encourage children to walk and
bicycle to school;
``(2) to encourage a healthy and active lifestyle by making
walking and bicycling to school safer and more appealing
transportation alternatives; and
``(3) to facilitate the planning, development, and
implementation of projects and activities that will improve
safety in the vicinity of schools.
``(d) Eligible Recipients.--A State shall use amounts apportioned
under this section to provide financial assistance to State, regional,
and local agencies that demonstrate an ability to meet the requirements
of this section.
``(e) Eligible Projects and Activities.--
``(1) Infrastructure-related projects.--
``(A) In general.--Amounts apportioned to a State
under this section may be used for the planning,
design, and construction of infrastructure-related
projects to encourage walking and bicycling to school,
including--
``(i) sidewalk improvements;
``(ii) traffic calming and speed reduction
improvements;
``(iii) pedestrian and bicycle crossing
improvements;
``(iv) on-street bicycle facilities;
``(v) off-street bicycle and pedestrian
facilities;
``(vi) secure bicycle parking facilities;
``(vii) traffic signal improvements; and
``(viii) pedestrian-railroad grade crossing
improvements.
``(B) Location of projects.--Infrastructure-related
projects under subparagraph (A) may be carried out on--
``(i) any public road in the vicinity of a
school; or
``(ii) any bicycle or pedestrian pathway or
trail in the vicinity of a school.
``(2) Behavioral activities.--
``(A) In general.--In addition to projects
described in paragraph (1), amounts apportioned to a
State under this section may be used for behavioral
activities to encourage walking and bicycling to
school, including--
``(i) public awareness campaigns and
outreach to press and community leaders;
``(ii) traffic education and enforcement in
the vicinity of schools; and
``(iii) student sessions on bicycle and
pedestrian safety, health, and environment.
``(B) Allocation.--Of the amounts apportioned to a
State under this section for a fiscal year, not less
than 10 percent shall be used for behavioral activities
under this paragraph.
``(f) Funding.--
``(1) Set aside.--Before apportioning amounts to carry out
section 148 for a fiscal year, the Secretary shall set aside
and use $70,000,000 to carry out this section.
``(2) Apportionment.--Amounts made available to carry out
this section shall be apportioned to States in accordance with
section 104(b)(5).
``(3) Administration of amounts.--Amounts apportioned to a
State under this section shall be administered by the State
transportation department.
``(4) Federal share.--Except as provided in sections 120
and 130, the Federal share of the cost of a project or activity
funded under this section shall be 90 percent.
``(5) Period of availability.--Notwithstanding section
118(b)(2), amounts apportioned under this section shall remain
available until expended.''.
(b) Conforming Amendments.--The analysis for subchapter I of
chapter 1 of title 23, United States Code is amended by inserting after
the item relating to section 149 the following:
``150. Safe routes to school program.''.
SEC. 1406. PURCHASES OF EQUIPMENT.
(a) In General.--Section 152 of title 23, United States Code is
amended to read as follows:
``Sec. 152. Purchases of equipment
``(a) In General.--Subject to subsection (b), a State carrying out
a project under this chapter shall purchase device, tool or other
equipment needed for the project only after completing and providing a
written analysis demonstrating the cost savings associated with
purchasing the equipment compared with renting the equipment from a
qualified equipment rental provider before the project commences
``(b) Applicability.--This section shall apply to--
``(1) earth moving, road machinery, and material handling
equipment, or any other item, with a purchase price in excess
of $75,000; and
``(2) aerial work platforms with a purchase price in excess
of $25,000.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code, is amended by striking the item
relating to section 152 and inserting the following:
``152. Purchases of equipment.''.
SEC. 1407. WORKZONE SAFETY.
Section 358(b) of the National Highway System Designation Act of
1995 (109 Stat. 625) is amended by adding at the end the following:
``(7) Recommending all federally-assisted projects in
excess of $15,000,000 to enter into contracts only with work
zone safety services contractors, traffic control contractors,
and trench safety and shoring contractors that carry general
liability insurance in an amount not less than $15,000,000.
``(8) Recommending federally-assisted projects the costs of
which exceed $15,000,000 to include work zone intelligent
transportation systems that are--
``(A) provided by a qualified vendor; and
``(B) monitored continuously.
``(9) Recommending federally-assisted projects to fully
fund not less than 5 percent of project costs for work zone
safety and temporary traffic control measures, in addition to
the cost of the project, which measures shall be provided by a
qualified work zone safety or traffic control provider.
``(10) Ensuring that any recommendation made under any of
paragraphs (7) through (9) provides for an exemption for
applicability to a State, with respect to a project or class of
projects, to the extent that a State notifies the Secretary in
writing that safety is not expected to be adversely affected by
nonapplication of the requirement to the project or class of
projects.''.
SEC. 1408. WORKER INJURY PREVENTION AND FREE FLOW OF VEHICULAR TRAFFIC.
Not later than 1 year after the date of enactment of this Act, the
Secretary shall promulgate regulations--
(1) to decrease the probability of worker injury;
(2) to maintain the free flow of vehicular traffic by
requiring workers whose duties place the workers on, or in
close proximity to, a Federal-aid highway (as defined in
section 101 of title 23, United States Code) to wear high-
visibility clothing; and
(3) to require such other worker-safety measures for
workers described in paragraph (2) as the Secretary determines
appropriate.
SEC. 1409. IDENTITY AUTHENTICATION STANDARDS.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1815(a)), is amended by adding at
the end the following:
``Sec. 178. Identity authentication standards
``(a) Definition of Information-Based Identity Authentication.--In
this section, the term `information-based identity authentication'
means the determination of the identity of an individual, through the
comparison of information provided by a person, with other information
pertaining to that individual with a system using scoring models and
algorithms.
``(b) Standards.--Not later than 180 days after the date of
enactment of this section, the Secretary, in consultation with the
Secretary of Homeland Security and the Federal Motor Carrier Safety
Administration, shall promulgate regulations establishing minimum
standards for State departments of motor vehicles regarding the use of
information-based identity authentication to determine the identity of
an applicant for a commercial driver's license, or the renewal,
transfer or upgrading, of a commercial driver's license.
``(c) Minimum Standards.--The regulations shall, at a minimum,
require State departments of motor vehicles to implement, and
applicants for commercial driver's licenses, (or the renewal, transfer,
or upgrading of commercial driver's licenses), to comply with,
reasonable procedures for operating an information-based identity
authentication program before issuing, renewing, transferring, or
upgrading a commercial driver's license.
``(d) Key Factors.--In promulgating regulations under this section,
the Secretary shall require that an information-based identity
authentication program carried out under this section establish
processes that--
``(1) use multiple sources of matching information;
``(2) enable the measurement of the accuracy of the
determination of an applicant's identity;
``(3) support continuous auditing of compliance with
applicable laws, policies, and practices governing the
collection, use, and distribution of information in the
operation of the program; and
``(4) incorporate industry best practices to protect
significant privacy interests in the information used in the
program and the appropriate safeguarding of the storage of the
information.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
I of title 23, United States Code (as amended by section 1815(b)), is
amended by adding at the end the following:
``178. Identity authentication standards.''.
SEC. 1410. OPEN CONTAINER REQUIREMENTS.
Section 154 of title 23, United States Code, is amended by striking
subsection (c) and inserting the following:
``(c) Transfer of Funds.--
``(1) In general.--The Secretary shall withhold the
applicable percentage for the fiscal year of the amount
required to be apportioned for Federal-aid highways to any
State under each of paragraphs (1), (3), and (4) of section
104(b), if a State has not enacted or is not enforcing a
provision described in subsection (b), as follows:
``For: The applicable percentage is:
Fiscal year 2008...............
2 percent.
Fiscal year 2009...............
2 percent.
Fiscal year 2010...............
2 percent.
Fiscal year 2011 and each
subsequent fiscal year.
2 percent.
``(2) Restoration.--If (during the 4-year period beginning
on the date the apportionment for any State is reduced in
accordance with this subsection) the Secretary determines that
the State has enacted and is enforcing a provision described in
subsection (b), the apportionment of the State shall be
increased by an amount equal to the amount of the reduction
made during the 4-year period.''.
Subtitle E--Environmental Planning and Review
CHAPTER 1--TRANSPORTATION PLANNING
SEC. 1501. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO STATE AND
METROPOLITAN TRANSPORTATION PLANNING.
(a) Metropolitan Planning.--Section 134(f) of title 23, United
States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (D)--
(i) by inserting after ``environment'' the
following: ``(including the protection of
habitat, water quality, and agricultural and
forest land, while minimizing invasive
species)''; and
(ii) by inserting before the semicolon the
following: ``(including minimizing adverse
health effects from mobile source air pollution
and promoting the linkage of the transportation
and development goals of the metropolitan
area)''; and
(B) in subparagraph (G), by inserting ``and
efficient use'' after ``preservation'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Selection of factors.--After soliciting and
considering any relevant public comments, the metropolitan
planning organization shall determine which of the factors
described in paragraph (1) are most appropriate for the
metropolitan area to consider.''.
(b) Statewide Planning.--Section 135(c) of title 23, United States
Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (D)--
(i) by inserting after ``environment'' the
following: ``(including the protection of
habitat, water quality, and agricultural and
forest land, while minimizing invasive
species)''; and
(ii) by inserting before the semicolon the
following: ``(including minimizing adverse
health effects from mobile source air pollution
and promoting the linkage of the transportation
and development goals of the State)''; and
(B) in subparagraph (G), by inserting ``and
efficient use'' after ``preservation'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Selection of projects and strategies.--After
soliciting and considering any relevant public comments, the
State shall determine which of the projects and strategies
described in paragraph (1) are most appropriate for the State
to consider.''.
SEC. 1502. CONSULTATION BETWEEN TRANSPORTATION AGENCIES AND RESOURCE
AGENCIES IN TRANSPORTATION PLANNING.
(a) In General.--Section 134(g) of title 23, United States Code, is
amended--
(1) in paragraph (2)--
(A) by redesignating subparagraphs (B) through (D)
as subparagraphs (C) through (E), respectively; and
(B) by inserting after subparagraph (A) the
following:
``(B) Mitigation activities.--
``(i) In general.--A long-range
transportation plan shall include a discussion
of--
``(I) types of potential habitat,
hydrological, and environmental
mitigation activities that may assist
in compensating for loss of habitat,
wetland, and other environmental
functions; and
``(II) potential areas to carry out
these activities, including a
discussion of areas that may have the
greatest potential to restore and
maintain the habitat types and
hydrological or environmental functions
affected by the plan.
``(ii) Consultation.--The discussion shall
be developed in consultation with Federal,
State, and tribal wildlife, land management,
and regulatory agencies.'';
(2) by redesignating paragraphs (4), (5), and (6) as
paragraphs (5), (6), and (7), respectively; and
(3) by inserting after paragraph (3) the following:
``(4) Consultation.--
``(A) In general.--In each metropolitan area, the
metropolitan planning organization shall consult, as
appropriate, with State and local agencies responsible
for land use management, natural resources,
environmental protection, conservation, and historic
preservation concerning the development of a long-range
transportation plan.
``(B) Issues.--The consultation shall involve--
``(i) comparison of transportation plans
with State conservation plans or with maps, if
available;
``(ii) comparison of transportation plans
to inventories of natural or historic
resources, if available; or
``(iii) consideration of areas where
wildlife crossing structures may be needed to
ensure connectivity between wildlife habitat
linkage areas.''.
(b) Improved Consultation During State Transportation Planning.--
(1) In general.--Section 135(e)(2) of title 23, United
States Code, is amended by adding at the end the following:
``(D) Consultation, comparison, and
consideration.--
``(i) In general.--The long-range
transportation plan shall be developed, as
appropriate, in consultation with State and
local agencies responsible for--
``(I) land use management;
``(II) natural resources;
``(III) environmental protection;
``(IV) conservation; and
``(V) historic preservation.
``(ii) Comparison and consideration.--
Consultation under clause (i) shall involve--
``(I) comparison of transportation
plans to State conservation plans or
maps, if available;
``(II) comparison of transportation
plans to inventories of natural or
historic resources, if available; or
``(III) consideration of areas
where wildlife crossing structures may
be needed to ensure connectivity
between wildlife habitat linkage
areas.''.
(2) Additional requirements.--Section 135(e) of title 23,
United States Code, is amended--
(A) by redesignating paragraphs (4) and (5) as
paragraphs (6) and (7), respectively; and
(B) by inserting after paragraph (3) the following:
``(4) Mitigation activities.--
``(A) In general.--A long-range transportation plan
shall include a discussion of--
``(i) types of potential habitat,
hydrological, and environmental mitigation
activities that may assist in compensating for
loss of habitat, wetlands, and other
environmental functions; and
``(ii) potential areas to carry out these
activities, including a discussion of areas
that may have the greatest potential to restore
and maintain the habitat types and hydrological
or environmental functions affected by the
plan.
``(B) Consultation.--The discussion shall be
developed in consultation with Federal, State, and
tribal wildlife, land management, and regulatory
agencies.
``(5) Transportation strategies.--A long-range
transportation plan shall identify transportation strategies
necessary to efficiently serve the mobility needs of people.''.
SEC. 1503. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO TRANSPORTATION
PROJECT PLANNING.
Section 109(c)(2) of title 23, United States Code, is amended--
(1) by striking ``consider the results'' and inserting
``consider--
``(A) the results'';
(2) by striking the period at the end and inserting a
semicolon; and
(3) by adding at the end the following:
``(B) the publication entitled `Flexibility in
Highway Design' of the Federal Highway Administration;
``(C) `Eight Characteristics of Process to Yield
Excellence and the Seven Qualities of Excellence in
Transportation Design' developed by the conference held
during 1998 entitled `Thinking Beyond the Pavement
National Workshop on Integrating Highway Development
with Communities and the Environment while Maintaining
Safety and Performance'; and
``(D) any other material that the Secretary
determines to be appropriate.''.
SEC. 1504. PUBLIC INVOLVEMENT IN TRANSPORTATION PLANNING AND PROJECTS.
(a) Metropolitan Planning.--
(1) Participation by interested parties.--Section 134(g)(5)
of title 23, United States Code (as redesignated by section
1502(a)(1)), is amended--
(A) by striking ``Before approving'' and inserting
the following:
``(A) In general.--Before approving''; and
(B) by adding at the end the following:
``(B) Methods.--In carrying out subparagraph (A),
the metropolitan planning organization shall, to the
maximum extent practicable--
``(i) hold any public meetings at
convenient and accessible locations and times;
``(ii) employ visualization techniques to
describe plans; and
``(iii) make public information available
in electronically accessible format and means,
such as the World Wide Web.''.
(2) Publication of long-range transportation plans.--
Section 134(g)(6)(i) of title 23, United States Code (as
redesignated by section 1502(a)(1)), is amended by inserting
before the semicolon the following: ``, including (to the
maximum extent practicable) in electronically accessible
formats and means such as the World Wide Web''.
(b) Statewide Planning.--
(1) Participation by interested parties.--Section 135(e)(3)
of title 23, United States Code, is amended by striking
subparagraph (B) and inserting the following:
``(B) Methods.--In carrying out subparagraph (A),
the State shall, to the maximum extent practicable--
``(i) hold any public meetings at
convenient and accessible locations and times;
``(ii) employ visualization techniques to
describe plans; and
``(iii) make public information available
in electronically accessible format and means,
such as the World Wide Web.''.
(2) Publication of long-range transportation plans.--
Section 135(e) of title 23, United States Code (as amended by
section 1502(b)(2)), is amended by adding at the end the
following:
``(8) Publication of long-range transportation plans.--Each
long-range transportation plan prepared by a State shall be
published or otherwise made available, including (to the
maximum extent practicable) in electronically accessible
formats and means, such as the World Wide Web.''.
SEC. 1505. PROJECT MITIGATION.
(a) Mitigation for National Highway System Projects.--Section
103(b)(6)(M) of title 23, United States Code, is amended--
(1) by inserting ``(i)'' after ``(M); and
(2) by adding at the end the following:
``(ii) State habitat, streams, and wetlands
mitigation efforts under section 155.''.
(b) Mitigation for Surface Transportation Program Projects.--
Section 133(b)(11) of title 23, United States Code, is amended--
(1) by inserting ``(A)'' after ``(11)''; and
(2) by adding at the end the following:
``(B) State habitat, streams, and wetlands mitigation
efforts under section 155.''.
(c) State Habitat, Streams, and Wetlands Mitigation Funds.--Section
155 of title 23, United States Code, is amended to read as follows:
``Sec. 155. State habitat, streams, and wetlands mitigation funds
``(a) Establishment.--A State should establish a habitat, streams,
and wetlands mitigation fund (referred to in this section as a `State
fund').
``(b) Purpose.--The purpose of a State fund is to encourage efforts
for habitat, streams, and wetlands mitigation in advance of or in
conjunction with highway or transit projects to--
``(1) ensure that the best habitat, streams, and wetland
mitigation sites now available are used; and
``(2) accelerate transportation project delivery by making
high-quality habitat, streams, and wetland mitigation credits
available when needed.
``(c) Funds.--A State may deposit into a State fund part of the
funds apportioned to the State under--
``(1) section 104(b)(1) for the National Highway System;
and
``(2) section 104(b)(3) for the surface transportation
program.
``(d) Use.--
``(1) In general.--Amounts deposited in a State fund shall
be used (in a manner consistent with this section) for habitat,
streams, or wetlands mitigation related to 1 or more projects
funded under this title, including a project under the
transportation improvement program of the State developed under
section 135(f).
``(2) Endangered species.--In carrying out this section, a
State and cooperating agency shall give consideration to
mitigation projects, on-site or off-site, that restore and
preserve the best available sites to conserve biodiversity and
habitat for--
``(A) Federal or State listed threatened or
endangered species of plants and animals; and
``(B) plant or animal species warranting listing as
threatened or endangered, as determined by the
Secretary of the Interior in accordance with section
4(b)(3)(B) of the Endangered Species Act of 1973 (16
U.S.C. 1533(b)(3)(B)).
``(e) Consistency With Applicable Requirements.--Contributions from
the State fund to mitigation efforts may occur in advance of project
construction only if the efforts are consistent with all applicable
requirements of Federal law (including regulations).''.
(d) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code, is amended by striking the item
relating to section 155 and inserting the following:
``155. State habitat, streams, and wetlands mitigation funds.''.
CHAPTER 2--TRANSPORTATION PROJECT DEVELOPMENT PROCESS
SEC. 1511. TRANSPORTATION PROJECT DEVELOPMENT PROCESS.
(a) In General.--Chapter 3 of title 23, United States Code (as
amended by section 1203(a)), is amended by inserting after section 325
the following:
``Sec. 326. Transportation project development process
``(a) Definitions.--In this section:
``(1) Agency.--The term `agency' means any agency,
department, or other unit of Federal, State, local, or
federally recognized tribal government.
``(2) Environmental impact statement.--The term
`environmental impact statement' means a detailed statement of
the environmental impacts of a project required to be prepared
under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
``(3) Environmental review process.--
``(A) In general.--The term `environmental review
process' means the process for preparing, for a
project--
``(i) an environmental impact statement; or
``(ii) any other document or analysis
required to be prepared under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.)
``(B) Inclusions.--The term `environmental review
process' includes the process for and completion of any
environmental permit, approval, review, or study
required for a project under any Federal law other than
the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
``(4) Project.--The term `project' means any highway or
transit project that requires the approval of the Secretary.
``(5) Project sponsor.--The term `project sponsor' means an
agency or other entity (including any private or public-private
entity), that seeks approval of the Secretary for a project.
``(6) State transportation department.--The term `State
transportation department' means any statewide agency of a
State with responsibility for transportation.
``(b) Process.--
``(1) Lead agency.--
``(A) In general.--The Department of Transportation
shall be the lead Federal agency in the environmental
review process for a project.
``(B) Joint lead agencies.--Nothing in this section
precludes another agency from being a joint lead agency
in accordance with regulations under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
``(C) Concurrence of project sponsor.--The lead
agency may carry out the environmental review process
in accordance with this section only with the
concurrence of the project sponsor.
``(2) Request for process.--
``(A) In general.--A project sponsor may request
that the lead agency carry out the environmental review
process for a project or group of projects in
accordance with this section.
``(B) Grant of request; public notice.--The lead
agency shall--
``(i) grant a request under subparagraph
(A); and
``(ii) provide public notice of the
request.
``(3) Effective date.--The environmental review process
described in this section may be applied to a project only
after the date on which public notice is provided under
subparagraph (B)(ii).
``(c) Roles and Responsibility of Lead Agency.--With respect to the
environmental review process for any project, the lead agency shall
have authority and responsibility to--
``(A) identify and invite cooperating agencies in
accordance with subsection (d);
``(B) develop an agency coordination plan with
review, schedule, and timelines in accordance with
subsection (e);
``(C) determine the purpose and need for the
project in accordance with subsection (f);
``(D) determine the range of alternatives to be
considered in accordance with subsection (g);
``(E) convene dispute-avoidance and decision
resolution meetings and related efforts in accordance
with subsection (h);
``(F) take such other actions as are necessary and
proper, within the authority of the lead agency, to
facilitate the expeditious resolution of the
environmental review process for the project; and
``(G) prepare or ensure that any required
environmental impact statement or other document
required to be completed under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) is completed in accordance with this section and
applicable Federal law.
``(d) Roles and Responsibilities of Cooperating Agencies.--
``(1) In general.--With respect to a project, each Federal
agency shall carry out any obligations of the Federal agency in
the environmental review process in accordance with this
section and applicable Federal law.
``(2) Invitation.--
``(A) In general.--The lead agency shall--
``(i) identify, as early as practicable in
the environmental review process for a project,
any other agencies that may have an interest in
the project, including--
``(I) agencies with jurisdiction
over environmentally-related matters
that may affect the project or may be
required by law to conduct an
environmental-related independent
review or analysis of the project or
determine whether to issue an
environmental-related permit, license,
or approval for the project; and
``(II) agencies with special
expertise relevant to the project;
``(ii) invite the agencies identified in
clause (i) to become participating agencies in
the environmental review process for that
project; and
``(iii) grant requests to become
cooperating agencies from agencies not
originally invited.
``(B) Responses.--The deadline for receipt of a
response from an agency that receives an invitation
under subparagraph (A)(ii)--
``(i) shall be 30 days after the date of
receipt by the agency of the invitation; but
``(ii) may be extended by the lead agency
for good cause.
``(3) Declining of invitations.--A Federal agency that is
invited by the lead agency to participate in the environmental
review process for a project shall be designated as a
cooperating agency by the lead agency, unless the invited
agency informs the lead agency in writing, by the deadline
specified in the invitation, that the invited agency--
``(A) has no jurisdiction or authority with respect
to the project;
``(B) has no expertise or information relevant to
the project; and
``(C) does not intend to submit comments on the
project.
``(4) Effect of designation.--Designation as a cooperating
agency under this subsection shall not imply that the
cooperating agency--
``(A) supports a proposed project; or
``(B) has any jurisdiction over, or special
expertise with respect to evaluation of, the project.
``(5) Designations for categories of projects.--
``(A) In general.--The Secretary may invite other
agencies to become cooperating agencies for a category
of projects.
``(B) Designation.--An agency may be designated as
a cooperating agency for a category of projects only
with the consent of the agency.
``(6) Concurrent reviews.--Each Federal agency shall, to
the maximum extent practicable--
``(A) carry out obligations of the Federal agency
under other applicable law concurrently, and in
conjunction, with the review required under the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), unless doing so would impair the ability
of the Federal agency to carry out those obligations;
and
``(B) formulate and implement administrative,
policy, and procedural mechanisms to enable the agency
to ensure completion of the environmental review
process in a timely, coordinated, and environmentally
responsible manner.
``(e) Development of Flexible Process and Timeline.--
``(1) Coordination plan.--
``(A) In general.--The lead agency shall establish
a coordination plan, which may be incorporated into a
memorandum of understanding, to coordinate agency and
public participation in and comment on the
environmental review process for a project or category
of projects.
``(B) Workplan.--
``(i) In general.--The lead agency shall
develop, as part of the coordination plan, a
workplan for completing the collection,
analysis, and evaluation of baseline data and
future impacts modeling necessary to complete
the environmental review process, including any
data, analyses, and modeling necessary for
related permits, approvals, reviews, or studies
required for the project under other laws.
``(ii) Consultation.--In developing the
workplan under clause (i), the lead agency
shall consult with--
``(I) each cooperating agency for
the project;
``(II) the State in which the
project is located; and
``(III) if the State is not the
project sponsor, the project sponsor.
``(C) Schedule.--
``(i) In general.--The lead agency shall
establish as part of the coordination plan,
after consultation with each cooperating agency
for the project and with the State in which the
project is located (and, if the State is not
the project sponsor, with the project sponsor),
a schedule for completion of the environmental
review process for the project.
``(ii) Factors for consideration.--In
establishing the schedule, the lead agency
shall consider factors such as--
``(I) the responsibilities of
cooperating agencies under applicable
laws;
``(II) resources available to the
cooperating agencies;
``(III) overall size and complexity
of a project;
``(IV) the overall schedule for and
cost of a project; and
``(V) the sensitivity of the
natural and historic resources that
could be affected by the project.
``(D) Consistency with other time periods.--A
schedule under subparagraph (C) shall be consistent
with any other relevant time periods established under
Federal law.
``(E) Modification.--The lead agency may--
``(i) lengthen a schedule established under
subparagraph (C) for good cause; and
``(ii) shorten a schedule only with the
concurrence of the affected cooperating
agencies.
``(F) Dissemination.--A copy of a schedule under
subparagraph (C), and of any modifications to the
schedule, shall be--
``(i) provided to all cooperating agencies
and to the State transportation department of
the State in which the project is located (and,
if the State is not the project sponsor, to the
project sponsor); and
``(ii) made available to the public.
``(2) Comments and timelines.--
``(A) In general.--A schedule established under
paragraph (1)(C) shall include--
``(i) opportunities for comment, deadline
for receipt of any comments submitted, deadline
for lead agency response to comments; and
``(ii) except as otherwise provided under
paragraph (1)--
``(I) an opportunity to comment by
agencies and the public on a draft or
final environmental impact statement
for a period of not more than 60 days
longer than the minimum period required
under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.);
and
``(II) for all other comment
periods established by the lead agency
for agency or public comments in the
environmental review process, a period
of not more than the longer of--
``(aa) 30 days after the
final day of the minimum period
required under Federal law
(including regulations), if
available; or
``(bb) if a minimum period
is not required under Federal
law (including regulations), 30
days.
``(B) Extension of comment periods.--The lead
agency may extend a period of comment established under
this paragraph for good cause.
``(C) Late comments.--A comment concerning a
project submitted under this paragraph after the date
of termination of the applicable comment period or
extension of a comment period shall not be eligible for
consideration by the lead agency unless the lead agency
or project sponsor determines there was good cause for
the delay or the lead agency is required to consider
significant new circumstances or information in
accordance with sections 1501.7 and 1502.9 of title 40,
Code of Federal Regulations.
``(D) Deadlines for decisions under other laws.--In
any case in which a decision under any Federal law
relating to a project (including the issuance or denial
of a permit or license) is required to be made by the
later of the date that is 180 days after the date on
which the Secretary made all final decisions of the
lead agency with respect to the project, or 180 days
after the date on which an application was submitted
for the permit or license, the Secretary shall submit
to the Committee on Environment and Public Works of the
Senate and the Committee on Transportation and
Infrastructure of the House of Representatives--
``(i) as soon as practicable after the 180-
day period, an initial notice of the failure of
the Federal agency to make the decision; and
``(ii) every 60 day thereafter until such
date as all decisions of the Federal agency
relating to the project have been made by the
Federal agency, an additional notice that
describes the number of decisions of the
Federal agency that remain outstanding as of
the date of the additional notice.
``(3) Involvement of the public.--Nothing in this
subsection shall reduce any time period provided for public
comment in the environmental review process under existing
Federal law (including a regulation).
``(f) Development of Project Purpose and Need Statement.--
``(1) In general.--With respect to the environmental review
process for a project, the purpose and need for the project
shall be defined in accordance with this subsection.
``(2) Authority.--The lead agency shall define the purpose
and need for a project, including the transportation objectives
and any other objectives intended to be achieved by the
project.
``(3) Involvement of cooperating agencies and the public.--
Before determining the purpose and need for a project, the lead
agency shall solicit for 30 days, and consider, any relevant
comments on the draft statement of purpose and need for a
proposed project received from the public and cooperating
agencies.
``(4) Effect on other reviews.--For the purpose of
compliance with the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) and any other law requiring an agency
that is not the lead agency to determine or consider a project
purpose or project need, such an agency acting, permitting, or
approving under, or otherwise applying, Federal law with
respect to a project shall adopt the determination of purpose
and need for the project made by the lead agency.
``(5) Savings.--Nothing in this subsection preempts or
interferes with any power, jurisdiction, responsibility, or
authority of an agency under applicable law (including
regulations) with respect to a project.
``(6) Contents.--
``(A) In general.--The statement of purpose and
need shall include a clear statement of the objectives
that the proposed project is intended to achieve.
``(B) Effect on existing standards.--Nothing in
this subsection shall alter existing standards for
defining the purpose and need of a project.
``(7) Factors to consider.--The lead agency may determine
that any of the following factors and documents are appropriate
for consideration in determining the purpose of and need for a
project:
``(A) Transportation plans and related planning
documents developed through the statewide and
metropolitan transportation planning process under
sections 134 and 135.
``(B) Land use plans adopted by units of State,
local, or tribal government (or, in the case of Federal
land, by the applicable Federal land management
agencies).
``(C) Economic development plans adopted by--
``(i) units of State, local, or tribal
government; or
``(ii) established economic development
planning organizations or authorities.
``(D) Environmental protection plans, including
plans for the protection or treatment of--
``(i) air quality;
``(ii) water quality and runoff;
``(iii) habitat needs of plants and
animals;
``(iv) threatened and endangered species;
``(v) invasive species;
``(vi) historic properties; and
``(vii) other environmental resources.
``(E) Any publicly available plans or policies
relating to the national defense, national security, or
foreign policy of the United States.
``(g) Development of Project Alternatives.--
``(1) In general.--With respect to the environmental review
process for a project, the alternatives shall be determined in
accordance with this subsection.
``(2) Authority.--The lead agency shall determine the
alternatives to be considered for a project.
``(3) Involvement of cooperating agencies and the public.--
``(A) In general.--Before determining the
alternatives for a project, the lead agency shall
solicit for 30 days and consider any relevant comments
on the proposed alternatives received from the public
and cooperating agencies.
``(B) Alternatives.--The lead agency shall
consider--
``(i) alternatives that meet the purpose
and need of the project; and
``(ii) the alternative of no action.
``(C) Effect on existing standards.--Nothing in
this subsection shall alter the existing standards for
determining the range of alternatives.
``(4) Effect on other reviews.--Any other agency acting
under or applying Federal law with respect to a project shall
consider only the alternatives determined by the lead agency.
``(5) Savings.--Nothing in this subsection preempts or
interferes with any power, jurisdiction, responsibility, or
authority of an agency under applicable law (including
regulations) with respect to a project.
``(6) Factors to consider.--The lead agency may determine
that any of the following factors and documents are appropriate
for consideration in determining the alternatives for a
project:
``(A) The overall size and complexity of the
proposed action.
``(B) The sensitivity of the potentially affected
resources.
``(C) The overall schedule and cost of the project.
``(D) Transportation plans and related planning
documents developed through the statewide and
metropolitan transportation planning process under
sections 134 and 135 of title 23 of the United States
Code.
``(E) Land use plans adopted by units of State,
local, or tribal government (or, in the case of Federal
land, by the applicable Federal land management
agencies).
``(F) Economic development plans adopted by--
``(i) units of State, local, or tribal
government; or
``(ii) established economic development
planning organizations or authorities.
``(G) environmental protection plans, including
plans for the protection or treatment of--
``(i) air quality;
``(ii) water quality and runoff;
``(iii) habitat needs of plants and
animals;
``(iv) threatened and endangered species;
``(v) invasive species;
``(vi) historic properties; and
``(vii) other environmental resources.
``(H) Any publicly available plans or policies
relating to the national defense, national security, or
foreign policy of the United States.
``(h) Prompt Issue Identification and Resolution Process.--
``(1) In general.--The lead agency, the project sponsor,
and the cooperating agencies shall work cooperatively, in
accordance with this section, to identify and resolve issues
that could--
``(A) delay completion of the environmental review
process; or
``(B) result in denial of any approvals required
for the project under applicable laws.
``(2) Lead agency responsibilities.--
``(A) In general.--The lead agency, with the
assistance of the project sponsor, shall make
information available to the cooperating agencies, as
early as practicable in the environmental review
process, regarding--
``(i) the environmental and socioeconomic
resources located within the project area; and
``(ii) the general locations of the
alternatives under consideration.
``(B) Basis for information.--Information about
resources in the project area may be based on existing
data sources, including geographic information systems
mapping.
``(3) Cooperating agency responsibilities.--
``(A) In general.--Based on information received
from the lead agency, cooperating agencies shall
promptly identify to the lead agency any major issues
of concern regarding the potential environmental or
socioeconomic impacts of a project.
``(B) Major issues of concern.--A major issue of
concern referred to in subparagraph (A) may include any
issue that could substantially delay or prevent an
agency from granting a permit or other approval that is
needed for a project, as determined by a cooperating
agency.
``(4) Issue resolution.--On identification of a major issue
of concern under paragraph (3), or at any time upon the request
of a project sponsor or the Governor of a State, the lead
agency shall promptly convene a meeting with representatives of
each of the relevant cooperating agencies, the project sponsor,
and the Governor to address and resolve the issue.
``(5) Notification.--If a resolution of a major issue of
concern under paragraph (4) cannot be achieved by the date that
is 30 days after the date on which a meeting under that
paragraph is convened, the lead agency shall provide
notification of the failure to resolve the major issue of
concern to--
``(A) the heads of all cooperating agencies;
``(B) the project sponsor;
``(C) the Governor involved;
``(D) the Committee on Environment and Public Works
of the Senate; and
``(E) the Committee on Transportation and
Infrastructure of the House of Representatives.
``(i) Performance Measurement.--
``(1) Progress reports.--The Secretary shall establish a
program to measure and report on progress toward improving and
expediting the planning and environmental review process.
``(2) Minimum requirements.--The program shall include, at
a minimum--
``(A) the establishment of criteria for measuring
consideration of--
``(i) State and metropolitan planning,
project planning, and design criteria; and
``(ii) environmental processing times and
costs;
``(B) the collection of data to assess performance
based on the established criteria; and
``(C) the annual reporting of the results of the
performance measurement studies.
``(3) Involvement of the public and cooperating agencies.--
``(A) In general.--The Secretary shall biennially
conduct a survey of agencies participating in the
environmental review process under this section to
assess the expectations and experiences of each
surveyed agency with regard to the planning and
environmental review process for projects reviewed
under this section.
``(B) Public participation.--In conducting the
survey, the Secretary shall solicit comments from the
public.
``(j) Assistance to Affected Federal and State Agencies.--
``(1) In general.--The Secretary may approve a request by a
State or recipient to provide funds made available under this
title for a highway project, or made available under chapter 53
of title 49 for a mass transit project, to agencies
participating in the coordinated environmental review process
established under this section in order to provide the
resources necessary to meet any time limits established under
this section.
``(2) Amounts.--Such requests under paragraph (1) shall be
approved only--
``(A) for such additional amounts as the Secretary
determines are necessary for the affected Federal and
State agencies to meet the time limits for
environmental review; and
``(B) if those time limits are less than the
customary time necessary for that review.
``(k) Judicial Review and Savings Clause.--
``(1) Judicial review.--Nothing in this section shall
affect the reviewability of any final Federal agency action in
any United States district court or State court.
``(2) Savings clause.--Nothing in this section shall
affect--
``(A) the applicability of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) or any other Federal environmental statute; or
``(B) the responsibility of any Federal officer to
comply with or enforce such a statute.''.
(b) Conforming Amendments.--
(1) The analysis for chapter 3 of title 23, United States
Code, is amended by inserting after the item relating to
section 325 (as added by section 1203(f)) the following:
``326. Transportation project development process.''.
(2) Section 1309 of the Transportation Equity Act for the
21st Century (112 Stat. 232) is repealed.
SEC. 1512. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL EXCLUSIONS.
(a) In General.--Chapter 3 of title 23, United States Code (as
amended by section 1511(a)), is amended by inserting after section 326
the following:
``Sec. 327. Assumption of responsibility for categorical exclusions
``(a) Categorical Exclusion Determinations.--
``(1) In general.--The Secretary may assign, and a State
may assume, responsibility for determining whether certain
designated activities are included within classes of action
identified in regulation by the Secretary that are
categorically excluded from requirements for environmental
assessments or environmental impact statements pursuant to
regulations promulgated by the Council on Environmental Quality
under part 1500 of title 40, Code of Federal Regulations (as in
effect on October 1, 2003).
``(2) Scope of authority.--A determination described in
paragraph (1) shall be made by a State in accordance with
criteria established by the Secretary and only for types of
activities specifically designated by the Secretary.
``(3) Criteria.--The criteria under paragraph (2) shall
include provisions for public availability of information
consistent with section 552 of title 5 and the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(b) Other Applicable Federal Laws.--
``(1) In general.--If a State assumes responsibility under
subsection (a), the Secretary may also assign and the State may
assume all or part of the responsibilities of the Secretary for
environmental review, consultation, or other related actions
required under any Federal law applicable to activities that
are classified by the Secretary as categorical exclusions, with
the exception of government-to-government consultation with
Indian tribes, subject to the same procedural and substantive
requirements as would be required if that responsibility were
carried out by the Secretary.
``(2) Sole responsibility.--A State that assumes
responsibility under paragraph (1) with respect to a Federal
law shall be solely responsible and solely liable for complying
with and carrying out that law, and the Secretary shall have no
such responsibility or liability.
``(c) Memoranda of Understanding.--
``(1) In general.--The Secretary and the State, after
providing public notice and opportunity for comment, shall
enter into a memorandum of understanding setting forth the
responsibilities to be assigned under this section and the
terms and conditions under which the assignments are made,
including establishment of the circumstances under which the
Secretary would reassume responsibility for categorical
exclusion determinations.
``(2) Term.--A memorandum of understanding--
``(A) shall have term of not more than 3 years; and
``(B) shall be renewable.
``(3) Acceptance of jurisdiction.--In a memorandum of
understanding, the State shall consent to accept the
jurisdiction of the Federal courts for the compliance,
discharge, and enforcement of any responsibility of the
Secretary that the State assumes.
``(4) Monitoring.--The Secretary shall--
``(A) monitor compliance by the State with the
memorandum of understanding and the provision by the
State of financial resources to carry out the
memorandum of understanding; and
``(B) take into account the performance by the
State when considering renewal of the memorandum of
understanding.
``(d) Termination.--The Secretary may terminate any assumption of
responsibility under a memorandum of understanding on a determination
that the State is not adequately carrying out the responsibilities
assigned to the State.
``(e) State Agency Deemed To Be Federal Agency.--A State agency
that is assigned a responsibility under a memorandum of understanding
shall be deemed to be a Federal agency for the purposes of the Federal
law under which the responsibility is exercised.''.
(b) Conforming Amendment.--The analysis for chapter 3 of title 23,
United States Code (as amended by section 1511(b)), is amended by
inserting after the item relating to section 326 the following:
``327. Assumption of responsibility for categorical exclusions.''.
SEC. 1513. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT PROGRAM.
(a) In General.--Chapter 3 of title 23, United States Code (as
amended by section 1512(a)), is amended by inserting after section 327
the following:
``Sec. 328. Surface transportation project delivery pilot program
``(a) Establishment.--
``(1) In general.--The Secretary shall carry out a surface
transportation project delivery pilot program (referred to in
this section as the `program').
``(2) Assumption of responsibility.--
``(A) In general.--Subject to the other provisions
of this section, with the written agreement of the
Secretary and a State, which may be in the form of a
memorandum of understanding, the Secretary may assign,
and the State may assume, the responsibilities of the
Secretary with respect to 1 or more highway projects
within the State under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(B) Additional responsibility.--If a State
assumes responsibility under subparagraph (A)--
``(i) the Secretary may assign to the
State, and the State may assume, all or part of
the responsibilities of the Secretary for
environmental review, consultation, or other
action required under any Federal environmental
law pertaining to the review or approval of a
specific project; but
``(ii) the Secretary may not assign--
``(I) responsibility for any
conformity determination required under
section 176 of the Clean Air Act (42
U.S.C. 7506); or
``(II) any responsibility imposed
on the Secretary by section 134 or 135.
``(C) Procedural and substantive requirements.--A
State shall assume responsibility under this section
subject to the same procedural and substantive
requirements as would apply if that responsibility were
carried out by the Secretary.
``(D) Federal responsibility.--Any responsibility
of the Secretary not explicitly assumed by the State by
written agreement under this section shall remain the
responsibility of the Secretary.
``(E) No effect on authority.--Nothing in this
section preempts or interferes with any power,
jurisdiction, responsibility, or authority of an
agency, other than the Department of Transportation,
under applicable law (including regulations) with
respect to a project.
``(b) State Participation.--
``(1) Number of participating states.--The Secretary may
permit not more than 5 States (including the State of Oklahoma)
to participate in the program.
``(2) Application.--Not later than 270 days after the date
of enactment of this section, the Secretary shall promulgate
regulations that establish requirements relating to information
required to be contained in any application of a State to
participate in the program, including, at a minimum--
``(A) the projects or classes of projects for which
the State anticipates exercising the authority that may
be granted under the program;
``(B) verification of the financial resources
necessary to carry out the authority that may be
granted under the program; and
``(C) evidence of the notice and solicitation of
public comment by the State relating to participation
of the State in the program, including copies of
comments received from that solicitation.
``(3) Public notice.--
``(A) In general.--Each State that submits an
application under this subsection shall give notice of
the intent of the State to participate in the program
not later than 30 days before the date of submission of
the application.
``(B) Method of notice and solicitation.--The State
shall provide notice and solicit public comment under
this paragraph by publishing the complete application
of the State in accordance with the appropriate public
notice law of the State.
``(4) Selection criteria.--The Secretary may approve the
application of a State under this section only if--
``(A) the regulatory requirements under paragraph
(2) have been met;
``(B) the Secretary determines that the State has
the capability, including financial and personnel, to
assume the responsibility; and
``(C) the head of the State agency having primary
jurisdiction over highway matters enters into a written
agreement with the Secretary described in subsection
(c).
``(5) Other federal agency views.--If a State applies to
assume a responsibility of the Secretary that would have
required the Secretary to consult with another Federal agency,
the Secretary shall solicit the views of the Federal agency
before approving the application.
``(c) Written Agreement.--A written agreement under this section
shall--
``(1) be executed by the Governor or the top-ranking
transportation official in the State who is charged with
responsibility for highway construction;
``(2) be in such form as the Secretary may prescribe;
``(3) provide that the State--
``(A) agrees to assume all or part of the
responsibilities of the Secretary described in
subsection (a);
``(B) expressly consents, on behalf of the State,
to accept the jurisdiction of the Federal courts for
the compliance, discharge, and enforcement of any
responsibility of the Secretary assumed by the State;
``(C) certifies that State laws (including
regulations) are in effect that--
``(i) authorize the State to take the
actions necessary to carry out the
responsibilities being assumed; and
``(ii) are comparable to section 552 of
title 5, including providing that any decision
regarding the public availability of a document
under those State laws is reviewable by a court
of competent jurisdiction; and
``(D) agrees to maintain the financial resources
necessary to carry out the responsibilities being
assumed.
``(d) Jurisdiction.--
``(1) In general.--The United States district courts shall
have exclusive jurisdiction over any civil action against a
State for failure to carry out any responsibility of the State
under this section.
``(2) Legal standards and requirements.--A civil action
under paragraph (1) shall be governed by the legal standards
and requirements that would apply in such a civil action
against the Secretary had the Secretary taken the actions in
question.
``(3) Intervention.--The Secretary shall have the right to
intervene in any action described in paragraph (1).
``(e) Effect of Assumption of Responsibility.--A State that assumes
responsibility under subsection (a)(2) shall be solely responsible and
solely liable for carrying out, in lieu of the Secretary, the
responsibilities assumed under subsection (a)(2), until the program is
terminated as provided in subsection (i).
``(f) Limitations on Agreements.--Nothing in this section permits a
State to assume any rulemaking authority of the Secretary under any
Federal law.
``(g) Audits.--
``(1) In general.--To ensure compliance by a State with any
agreement of the State under subsection (c)(1) (including
compliance by the State with all Federal laws for which
responsibility is assumed under subsection (a)(2)), for each
State participating in the program under this section, the
Secretary shall conduct--
``(A) semiannual audits during each of the first 2
years of State participation; and
``(B) annual audits during each subsequent year of
State participation.
``(2) Public availability and comment.--
``(A) In general.--An audit conducted under
paragraph (1) shall be provided to the public for
comment.
``(B) Response.--Not later than 60 days after the
date on which the period for public comment ends, the
Secretary shall respond to public comments received
under subparagraph (A).
``(h) Report to Congress.--The Secretary shall submit to Congress
an annual report that describes the administration of the program.
``(i) Termination.--
``(1) In general.--Except as provided in paragraph (2), the
program shall terminate on the date that is 6 years after the
date of enactment of this section.
``(2) Termination by secretary.--The Secretary may
terminate the participation of any State in the program if--
``(A) the Secretary determines that the State is
not adequately carrying out the responsibilities
assigned to the State;
``(B) the Secretary provides to the State--
``(i) notification of the determination of
noncompliance; and
``(ii) a period of at least 30 days during
which to take such corrective action as the
Secretary determines is necessary to comply
with the applicable agreement; and
``(C) the State, after the notification and period
provided under subparagraph (B), fails to take
satisfactory corrective action, as determined by
Secretary.''.
(b) Conforming Amendment.--The analysis for chapter 3 of title 23,
United States Code (as amended by section 1512(b)), is amended by
inserting after the item relating to section 327 the following:
``328. Surface transportation project delivery pilot program.''.
SEC. 1514. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL REFUGES, AND
HISTORIC SITES.
(a) Programs and Projects With de Minimis Impacts.--
(1) Title 23.--Section 138 of title 23, United States Code,
is amended--
(A) in the first sentence, by striking ``It is
hereby'' and inserting the following:
``(a) Declaration of Policy.--It is''; and
(B) by adding at the end the following:
``(b) De Minimis Impacts.--
``(1) Requirements.--
``(A) In general.--The requirements of this section
shall be considered to be satisfied with respect to an
area described in paragraph (2) or (3) if the Secretary
determines, in accordance with this subsection, that a
transportation program or project will have a de
minimis impact on the area.
``(B) Criteria.--In making any determination under
this subsection, the Secretary shall consider to be
part of a transportation program or project any
avoidance, minimization, mitigation, or enhancement
measures that are required to be implemented as a
condition of approval of the transportation program or
project.
``(2) Historic sites.--With respect to historic sites, the
Secretary may make a finding of de minimis impact only if--
``(A) the Secretary has determined, in accordance
with the consultation process required under section
106 of the National Historic Preservation Act (16
U.S.C. 470f), that--
``(i) the transportation program or project
will have no adverse effect on the historic
site; or
``(ii) there will be no historic properties
affected by the transportation program or
project;
``(B) the finding of the Secretary has received
written concurrence from the applicable State historic
preservation officer or tribal historic preservation
officer (and from the Advisory Council on Historic
Preservation, if participating in the consultation);
and
``(C) the finding of the Secretary has been
developed in consultation with parties consulting as
part of the process referred to in subparagraph (A).
``(3) Parks, recreation areas, and wildlife and waterfowl
refuges.--With respect to parks, recreation areas, and wildlife
or waterfowl refuges, the Secretary may make a finding of de
minimis impact only if--
``(A) the Secretary has determined, in accordance
with the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) (including public notice and
opportunity for public review and comment), that the
transportation program or project will not adversely
affect the activities, features, and attributes of the
park, recreation area, or wildlife or waterfowl refuge
eligible for protection under this section; and
``(B) the finding of the Secretary has received
concurrence from the officials with jurisdiction over
the park, recreation area, or wildlife or waterfowl
refuge.''.
(2) Title 49.--Section 303 of title 49, United States Code,
is amended--
(A) by striking ``(c) The Secretary'' and inserting
the following:
``(c) Approval of Programs and Projects.--Subject to subsection
(d), the Secretary''; and
(B) by adding at the end the following:
``(d) De Minimis Impacts.--
``(1) Requirements.--
``(A) In general.--The requirements of this section
shall be considered to be satisfied with respect to an
area described in paragraph (2) or (3) if the Secretary
determines, in accordance with this subsection, that a
transportation program or project will have a de
minimis impact on the area.
``(B) Criteria.--In making any determination under
this subsection, the Secretary shall consider to be
part of a transportation program or project any
avoidance, minimization, mitigation, or enhancement
measures that are required to be implemented as a
condition of approval of the transportation program or
project.
``(2) Historic sites.--With respect to historic sites, the
Secretary may make a finding of de minimis impact only if--
``(A) the Secretary has determined, in accordance
with the consultation process required under section
106 of the National Historic Preservation Act (16
U.S.C. 470f), that--
``(i) the transportation program or project
will have no adverse effect on the historic
site; or
``(ii) there will be no historic properties
affected by the transportation program or
project;
``(B) the finding of the Secretary has received
written concurrence from the applicable State historic
preservation officer or tribal historic preservation
officer (and from the Advisory Council on Historic
Preservation, if participating in the consultation);
and
``(C) the finding of the Secretary has been
developed in consultation with parties consulting as
part of the process referred to in subparagraph (A).
``(3) Parks, recreation areas, and wildlife and waterfowl
refuges.--With respect to parks, recreation areas, and wildlife
or waterfowl refuges, the Secretary may make a finding of de
minimis impact only if--
``(A) the Secretary has determined, in accordance
with the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) (including public notice and
opportunity for public review and comment), that the
transportation program or project will not adversely
affect the activities, features, and attributes of the
park, recreation area, or wildlife or waterfowl refuge
eligible for protection under this section; and
``(B) the finding of the Secretary has received
concurrence from the officials with jurisdiction over
the park, recreation area, or wildlife or waterfowl
refuge.''.
(b) Clarification of Existing Standards.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall (in consultation
with affected agencies and interested parties) promulgate
regulations that clarify the factors to be considered and the
standards to be applied in determining the prudence and
feasibility of alternatives under section 138 of title 23 and
section 303 of title 49, United States Code.
(2) Requirements.--The regulations--
(A) shall clarify the application of the legal
standards to a variety of different types of
transportation programs and projects depending on the
circumstances of each case; and
(B) may include, as appropriate, examples to
facilitate clear and consistent interpretation by
agency decisionmakers.
(c) Implementation Study.--
(1) In general.--The Secretary and the Transportation
Research Board of the National Academy of Sciences shall
jointly conduct a study on the implementation of this section
and the amendments made by this section.
(2) Components.--In conducting the study, the Secretary and
the Transportation Research Board shall evaluate--
(A) the processes developed under this section and
the amendments made by this section and the
efficiencies that may result;
(B) the post-construction effectiveness of impact
mitigation and avoidance commitments adopted as part of
projects conducted under this section and the
amendments made by this section; and
(C) the quantity of projects with impacts that are
considered de minimis under this section and the
amendments made by this section, including information
on the location, size, and cost of the projects.
(3) Report requirement.--The Secretary and the
Transportation Research Board shall prepare--
(A) not earlier than the date that is 4 years after
the date of enactment of this Act, a report on the
results of the study conducted under this subsection;
and
(B) not later than September 30, 2009, an update on
the report required under subparagraph (A).
(4) Report recipients.--The Secretary and the
Transportation Research Board shall--
(A) submit the report and update required under
paragraph (3) to--
(i) the appropriate committees of Congress;
(ii) the Secretary of the Interior; and
(iii) the Advisory Council on Historic
Preservation; and
(B) make the report and update available to the
public.
SEC. 1515. REGULATIONS.
Except as provided in section 1513, not later than 1 year after the
date of enactment of this Act, the Secretary shall promulgate
regulations necessary to implement the amendments made by chapter 1 and
this chapter.
CHAPTER 3--MISCELLANEOUS
SEC. 1521. CRITICAL REAL PROPERTY ACQUISITION.
Section 108 of title 23, United States Code, is amended by adding
at the end the following:
``(d) Critical Real Property Acquisition.--
``(1) In general.--Subject to paragraph (2), funds
apportioned to a State under this title may be used to pay the
costs of acquiring any real property that is determined to be
critical under paragraph (2) for a project proposed for funding
under this title.
``(2) Reimbursement.--The Federal share of the costs
referred to in paragraph (1) shall be eligible for
reimbursement out of funds apportioned to a State under this
title if, before the date of acquisition, the Secretary
determines that--
``(A) the property is offered for sale on the open
market;
``(B) in acquiring the property, the State will
comply with the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (42 U.S.C.
4601 et seq.); and
``(C) immediate acquisition of the property is
critical because--
``(i) based on an appraisal of the
property, the value of the property is
increasing significantly;
``(ii) there is an imminent threat of
development or redevelopment of the property;
and
``(iii) the property is necessary for the
implementation of the goals stated in the
proposal for the project.
``(3) Applicable law.--An acquisition of real property
under this section shall be considered to be an exempt project
under section 176 of the Clean Air Act (42 U.S.C. 7506).
``(4) Environmental review.--
``(A) In general.--A project proposed to be
conducted under this title shall not be conducted on
property acquired under paragraph (1) until all
required environmental reviews for the project have
been completed.
``(B) Effect on consideration of project
alternatives.--The number of critical acquisitions of
real property associated with a project shall not
affect the consideration of project alternatives during
the environmental review process.
``(5) Proceeds from the sale or lease of real property.--
Section 156(c) shall not apply to the sale, use, or lease of
any real property acquired under paragraph (1).''.
SEC. 1522. PLANNING CAPACITY BUILDING INITIATIVE.
Section 104 of title 23, United States Code, is amended by adding
at the end the following:
``(m) Planning Capacity Building Initiative.--
``(1) In general.--The Secretary shall carry out a planning
capacity building initiative to support enhancements in
transportation planning to--
``(A) strengthen the processes and products of
metropolitan and statewide transportation planning
under this title;
``(B) enhance tribal capacity to conduct joint
transportation planning under chapter 2;
``(C) participate in the metropolitan and statewide
transportation planning programs under this title; and
``(D) increase the knowledge and skill level of
participants in metropolitan and statewide
transportation.
``(2) Priority.--The Secretary shall give priority to
planning practices and processes that support--
``(A) the transportation elements of homeland
security planning, including--
``(i) training and best practices relating
to emergency evacuation;
``(ii) developing materials to assist areas
in coordinating emergency management and
transportation officials; and
``(iii) developing training on how planning
organizations may examine security issues;
``(B) performance-based planning, including--
``(i) data and data analysis technologies
to be shared with States, metropolitan planning
organizations, local governments, and
nongovernmental organizations that--
``(I) participate in transportation
planning;
``(II) use the data and data
analysis to engage in metropolitan,
tribal, or statewide transportation
planning;
``(III) involve the public in the
development of transportation plans,
projects, and alternative scenarios;
and
``(IV) develop strategies to avoid,
minimize, and mitigate the impacts of
transportation facilities and projects;
and
``(ii) improvement of the quality of
congestion management systems, including the
development of--
``(I) a measure of congestion;
``(II) a measure of transportation
system reliability; and
``(III) a measure of induced
demand;
``(C) safety planning, including--
``(i) development of State strategic safety
plans consistent with section 148;
``(ii) incorporation of work zone safety
into planning; and
``(iii) training in the development of data
systems relating to highway safety;
``(D) operations planning, including--
``(i) developing training of the
integration of transportation system operations
and management into the transportation planning
process; and
``(ii) training and best practices relating
to regional concepts of operations;
``(E) freight planning, including--
``(i) modeling of freight at a regional and
statewide level; and
``(ii) techniques for engaging the freight
community with the planning process;
``(F) air quality planning, including--
``(i) assisting new and existing
nonattainment and maintenance areas in
developing the technical capacity to perform
air quality conformity analysis;
``(ii) providing training on areas such as
modeling and data collection to support air
quality planning and analysis;
``(iii) developing concepts and techniques
to assist areas in meeting air quality
performance timeframes; and
``(iv) developing materials to explain air
quality issues to decisionmakers and the
public; and
``(G) integration of environment and planning.
``(3) Use of funds.--The Secretary shall use amounts made
available under paragraph (4) to make grants to, or enter into
contracts, cooperative agreements, and other transactions with,
a Federal agency, State agency, local agency, federally
recognized Indian tribal government or tribal consortium,
authority, association, nonprofit or for-profit corporation, or
institution of higher education for research, program
development, information collection and dissemination, and
technical assistance.
``(4) Set-aside.--
``(A) In general.--On October 1 of each fiscal
year, of the funds made available under subsection (a),
the Secretary shall set aside $4,000,000 to carry out
this subsection.
``(B) Federal share.--The Federal share of the cost
of an activity carried out using funds made available
under subparagraph (A) shall be 100 percent.
``(C) Availability.--Funds made available under
subparagraph (A) shall remain available until
expended.''.
Subtitle F--Environment
SEC. 1601. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT; CONTROL
OF INVASIVE PLANT SPECIES AND ESTABLISHMENT OF NATIVE
SPECIES.
(a) Modification to NHS/STP for Environmental Restoration,
Pollution Abatement, and Invasive Species.--
(1) Modifications to national highway system.--Section
103(b)(6) of title 23, United States Code, is amended by adding
at the end the following:
``(Q) Environmental restoration and pollution
abatement in accordance with section 165.
``(R) Control of invasive plant species and
establishment of native species in accordance with
section 166.''.
(2) Modifications to surface transportation program.--
Section 133(b) of title 23, is amended by striking paragraph
(14) and inserting the following:
``(14) Environmental restoration and pollution abatement in
accordance with section 165.
``(15) Control of invasive plant species and establishment
of native species in accordance with section 166.''.
(b) Eligible Activities.--Subchapter I of chapter 1 of title 23,
United States Code, is amended by adding at the end the following:
``Sec. 165. Eligibility for environmental restoration and pollution
abatement
``(a) In General.--Subject to subsection (b), environmental
restoration and pollution abatement to minimize or mitigate the impacts
of any transportation project funded under this title (including
retrofitting and construction of storm water treatment systems to meet
Federal and State requirements under sections 401 and 402 of the
Federal Water Pollution Control Act (33 U.S.C. 1341, 1342)) may be
carried out to address water pollution or environmental degradation
caused wholly or partially by a transportation facility.
``(b) Maximum Expenditure.--In a case in which a transportation
facility is undergoing reconstruction, rehabilitation, resurfacing, or
restoration, the expenditure of funds under this section for
environmental restoration or pollution abatement described in
subsection (a) shall not exceed 20 percent of the total cost of the
reconstruction, rehabilitation, resurfacing, or restoration of the
facility.
``Sec. 166. Control of invasive plant species and establishment of
native species
``(a) Definitions.--In this section:
``(1) Invasive plant species--The term `invasive plant
species' means a nonindigenous species the introduction of
which causes or is likely to cause economic or environmental
harm or harm to human health.
``(2) Native plant species.--The term `native plant
species' means, with respect to a particular ecosystem, a
species that, other than as result of an introduction,
historically occurred or currently occurs in that ecosystem.
``(b) Control of Species.--
``(1) In general.--In accordance with all applicable
Federal law (including regulations), funds made available to
carry out this section may be used for--
``(A) participation in the control of invasive
plant species; and
``(B) the establishment of native species.
``(2) Included activities.--The participation and
establishment under paragraph (1) may include--
``(A) participation in statewide inventories of
invasive plant species and desirable plant species;
``(B) regional native plant habitat conservation
and mitigation;
``(C) native revegetation;
``(D) elimination of invasive species to create
fuel breaks for the prevention and control of
wildfires; and
``(E) training.
``(3) Contributions.--
``(A) In general.--Subject to subparagraph (B), an
activity described in paragraph (1) may be carried out
concurrently with, in advance of, or following the
construction of a project funded under this title.
``(B) Condition for activities conducted in advance
of project construction.--An activity described in
paragraph (1) may be carried out in advance of
construction of a project only if the activity is
carried out in accordance with all applicable
requirements of Federal law (including regulations) and
State transportation planning processes.''.
(c) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1406(b)), is
amended by adding at the end the following:
``165. Eligibility for environmental restoration and pollution
abatement.
``166. Control of invasive plant species and establishment of native
species.''.
SEC. 1602. NATIONAL SCENIC BYWAYS PROGRAM.
(a) In General.--Section 162 of title 23, United States Code, is
amended--
(1) in subsection (a)(1), by striking ``the roads as'' and
all that follows and inserting ``the roads as--
``(A) National Scenic Byways;
``(B) All-American Roads; or
``(C) America's Byways.'';
(2) in subsection (b)--
(A) in paragraph (1)(A), by striking ``designated
as'' and all that follows and inserting ``designated
as--
``(i) National Scenic Byways;
``(ii) All-American Roads; or
``(iii) America's Byways; and'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking
``Byway or All-American Road'' and inserting
``Byway, All-American Road, or 1 of America's
Byways''; and
(ii) in subparagraph (B), by striking
``designation as a'' and all that follows and
inserting ``designation as--
``(i) a National Scenic Byway;
``(ii) an All-American Road; or
``(iii) 1 of America's Byways; and''; and
(3) in subsection (c)(4), by striking ``passing lane,''.
(b) Research, Technical Assistance, Marketing, and Promotion.--
Section 162 of title 23, United States Code, is amended--
(1) by redesignating subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively;
(2) by inserting after subsection (c) the following:
``(d) Research, Technical Assistance, Marketing, and Promotion.--
``(1) In general.--The Secretary may carry out technical
assistance, marketing, market research, and promotion with
respect to State Scenic Byways, National Scenic Byways, All-
American Roads, and America's Byways.
``(2) Cooperation, grants, and contracts.--The Secretary
may make grants to, or enter into contracts, cooperative
agreements, and other transactions with, any Federal agency,
State agency, authority, association, institution, for-profit
or nonprofit corporation, organization, or person, to carry out
projects and activities under this subsection.
``(3) Funds.--The Secretary may use not more than
$2,000,000 for each fiscal year of funds made available for the
National Scenic Byways Program to carry out projects and
activities under this subsection.
``(4) Priority.--The Secretary shall give priority under
this subsection to partnerships that leverage Federal funds for
research, technical assistance, marketing and promotion.''; and
(3) in subsection (g) (as redesignated by paragraph (1)),
by striking ``80 percent'' and inserting ``the share applicable
under section 120, as adjusted under subsection (d) of that
section''.
SEC. 1603. RECREATIONAL TRAILS PROGRAM.
(a) Recreational Trails Program Formula.--Section 104(h)(1) of
title 23, United States Code, is amended--
(1) by striking ``Whenever'' and inserting the following:
``(A) In general.--In any case in which'';
(2) by striking ``research and technical assistance under
the recreational trails program and for the administration of
the National Recreational Trails Advisory Committee'' and
inserting ``research, technical assistance, and training under
the recreational trails program''; and
(3) by striking ``The Secretary'' and inserting the
following:
``(B) Contracts and agreements.--The Secretary''.
(b) Recreational Trails Program Administration.--Section 206 of
title 23, United States Code, is amended--
(1) in subsection (d)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Permissible uses.--Permissible uses of funds
apportioned to a State for a fiscal year to carry out this
section include--
``(A) maintenance and restoration of recreational
trails;
``(B) development and rehabilitation of trailside
and trailhead facilities and trail linkages for
recreational trails;
``(C) purchase and lease of recreational trail
construction and maintenance equipment;
``(D) construction of new recreational trails,
except that, in the case of new recreational trails
crossing Federal land, construction of the trails shall
be--
``(i) permissible under other law;
``(ii) necessary and recommended by a
statewide comprehensive outdoor recreation plan
that is--
``(I) required under the Land and
Water Conservation Fund Act of 1965 (16
U.S.C. 460l-4 et seq.); and
``(II) in effect;
``(iii) approved by the administering
agency of the State designated under subsection
(c)(1)(A); and
``(iv) approved by each Federal agency
having jurisdiction over the affected land,
under such terms and conditions as the head of
the Federal agency determines to be
appropriate, except that the approval shall be
contingent on compliance by the Federal agency
with all applicable laws, including--
``(I) the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et
seq.);
``(II) the Forest and Rangeland
Renewable Resources Planning Act of
1974 (16 U.S.C. 1600 et seq.); and
``(III) the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701
et seq.);
``(E) acquisition of easements and fee simple title
to property for recreational trails or recreational
trail corridors;
``(F) assessment of trail conditions for
accessibility and maintenance;
``(G) use of trail crews, youth conservation or
service corps, or other appropriate means to carry out
activities under this section;
``(H) development and dissemination of publications
and operation of educational programs to promote safety
and environmental protection, as those objectives
relate to the use of recreational trails, supporting
non-law enforcement trail safety and trail use
monitoring patrol programs, and providing trail-related
training, but in an amount not to exceed 5 percent of
the apportionment made to the State for the fiscal
year; and
``(I) payment of costs to the State incurred in
administering the program, but in an amount not to
exceed 7 percent of the apportionment made to the State
for the fiscal year to carry out this section.''; and
(B) in paragraph (3)--
(i) in subparagraph (D), by striking
``(2)(F)'' and inserting ``(2)(I)''; and
(ii) by adding at the end the following:
``(E) Use of youth conservation or service corps.--
A State shall make available not less than 10 percent
of the apportionments of the State to provide grants
to, or to enter into cooperative agreements or
contracts with, qualified youth conservation or service
corps to perform recreational trails program
activities.'';
(2) in subsection (f)--
(A) in paragraph (1)--
(i) by inserting ``and the Federal share of
the administrative costs of a State'' after
``project''; and
(ii) by striking ``not exceed 80 percent''
and inserting ``be determined in accordance
with section 120'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``80
percent of'' and inserting ``the amount
determined in accordance with section 120
for''; and
(ii) in subparagraph (B), by inserting
``sponsoring the project'' after ``Federal
agency'';
(C) by striking paragraph (5);
(D) by redesignating paragraph (4) as paragraph
(5);
(E) by inserting after paragraph (3) the following:
``(4) Use of recreational trails program funds to match
other federal program funds.--Notwithstanding any other
provision of law, funds made available under this section may
be used to pay the non-Federal matching share for other Federal
program funds that are--
``(A) expended in accordance with the requirements
of the Federal program relating to activities funded
and populations served; and
``(B) expended on a project that is eligible for
assistance under this section.''; and
(F) in paragraph (5) (as redesignated by
subparagraph (D)), by striking ``80 percent'' and
inserting ``the Federal share as determined in
accordance with section 120''; and
(3) in subsection (h)--
(A) in paragraph (1), by inserting after
subparagraph (B) the following:
``(C) Planning and environmental assessment costs
incurred prior to project approval.--A project funded
under any of subparagraphs (A) through (H) of
subsection (d)(2) may permit preapproval planning and
environmental compliance costs incurred not more than
18 months before project approval to be credited toward
the non-Federal share in accordance with subsection
(f).''; and
(B) by striking paragraph (2) and inserting the
following:
``(2) Waiver of highway program requirements.--A project
funded under this section--
``(A) is intended to enhance recreational
opportunity;
``(B) is not considered to be a highway project;
and
``(C) is not subject to--
``(i) section 112, 114, 116, 134, 135, 138,
217, or 301 of this title; or
``(ii) section 303 of title 49.''.
SEC. 1604. EXEMPTION OF INTERSTATE SYSTEM.
Subsection 103(c) of title 23, United States Code, is amended by
adding at the end the following:
``(5) Exemption of interstate system.--
``(A) In general.--Except as provided in
subparagraph (B), the Interstate System shall not be
considered to be a historic site under section 303 of
title 49 or section 138 of this title, regardless of
whether the Interstate System or portions of the
Interstate System are listed on, or eligible for
listing on, the National Register of Historic Places.
``(B) Individual elements.--A portion of the
Interstate System that possesses an independent feature
of historic significance, such as a historic bridge or
a highly significant engineering feature, that would
qualify independently for listing on the National
Register of Historic Places, shall be considered to be
a historic site under section 303 of title 49 or
section 138 of this title, as applicable.''.
SEC. 1605. STANDARDS.
(a) In General.--Section 109(a) of title 23, United States Code, is
amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) consider the preservation, historic, scenic, natural
environmental, and community values.''.
(b) Context Sensitive Design.--Section 109 of title 23, United
States Code, is amended by striking subsection (p) and inserting the
following:
``(p) Context Sensitive Design.--
``(1) In general.--The Secretary shall encourage States to
design projects funded under this title that--
``(A) allow for the preservation of environmental,
scenic, or historic values;
``(B) ensure the safe use of the facility;
``(C) provide for consideration of the context of
the locality;
``(D) encourage access for other modes of
transportation; and
``(E) comply with subsection (a).
``(2) Approval by secretary.--Notwithstanding subsections
(b) and (c), the Secretary may approve a project described in
paragraph (1) for the National Highway System if the project is
designed to achieve the criteria specified in that
paragraph.''.
SEC. 1606. USE OF HIGH OCCUPANCY VEHICLE LANES.
Section 102 of title 23, United States Code, is amended by striking
subsection (a) and inserting the following:
``(a) High Occupancy Vehicle Lane Passenger Requirements.--
``(1) Definitions.--In this subsection:
``(A) Responsible agency.--The term `responsible
agency' means--
``(i) a State transportation department;
and
``(ii) a local agency in a State that is
responsible for transportation matters.
``(B) Seriously degraded.--The term `seriously
degraded', with respect to a high occupancy vehicle
lane, means, in the case of a high occupancy vehicle
lane, the minimum average operating speed, performance
threshold, and associated time period of the high
occupancy vehicle lane, calculated and determined
jointly by all applicable responsible agencies and
based on conditions unique to the roadway, are
unsatisfactory.
``(2) Requirements.--
``(A) In general.--Subject to subparagraph (B), for
each State, 1 or more responsible agencies shall
establish the occupancy requirements of vehicles
operating on high occupancy vehicle lanes.
``(B) Minimum number of occupants.--Except as
provided in paragraph (3), an occupancy requirement
established under subparagraph (A) shall--
``(i) require at least 2 occupants per
vehicle for a vehicle operating on a high
occupancy vehicle lane; and
``(ii) in the case of a high occupancy
vehicle lane that traverses an adjacent State,
be established in consultation with the
adjacent State.
``(3) Exceptions to hov occupancy requirements.--
``(A) Motorcycles.--For the purpose of this
subsection, a motorcycle--
``(i) shall not be considered to be a
single occupant vehicle; and
``(ii) shall be allowed to use a high
occupancy vehicle lane unless a responsible
agency--
``(I) certifies to the Secretary
the use of a high occupancy vehicle
lane by a motorcycle would create a
safety hazard; and
``(II) restricts that the use of
the high occupancy vehicle lane by
motorcycles.
``(B) Low emission and energy-efficient vehicles.--
``(i) Definition of low emission and
energy-efficient vehicle.--In this
subparagraph, the term `low emission and
energy-efficient vehicle' means a vehicle that
has been certified by the Administrator of the
Environmental Protection Agency--
``(I)(aa) to have a 45-mile per
gallon or greater fuel economy highway
rating; or
``(bb) to qualify as an alternative
fueled vehicle under section 301 of the
Energy Policy Act of 1992 (42 U.S.C.
13211); and
``(II) as meeting Tier II emission
level established in regulations
promulgated by the Administrator of the
Environmental Protection Agency under
section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)) for that make and model
year vehicle.
``(ii) Exemption for low emission and
energy-efficient vehicles.--A responsible
agency may permit qualifying low emission and
energy-efficient vehicles that do not meet
applicable occupancy requirements (as
determined by the responsible agency) to use
high occupancy vehicle lanes if the responsible
agency--
``(I) establishes a program that
addresses how those qualifying low
emission and energy-efficient vehicles
are selected and certified;
``(II) establishes requirements for
labeling qualifying low emission and
energy-efficient vehicles (including
procedures for enforcing those
requirements);
``(III) continuously monitors,
evaluates, and reports to the Secretary
on performance; and
``(IV) imposes such restrictions on
the use on high occupancy vehicle lanes
by vehicles that do not satisfy
established occupancy requirements as
are necessary to ensure that the
performance of individual high
occupancy vehicle lanes, and the entire
high occupancy vehicle lane system,
will not become seriously degraded.
``(C) Tolling of vehicles.--
``(i) In general.--A responsible agency may
permit vehicles, in addition to the vehicles
described in paragraphs (A), (B), and (D) that
do not satisfy established occupancy
requirements, to use a high occupancy vehicle
lane only if the responsible agency charges
those vehicles a toll.
``(ii) Applicable authority.--In imposing a
toll under clause (i), a responsible agency
shall--
``(I) be subject to section 129;
``(II) establish a toll program
that addresses ways in which motorists
may enroll and participate in the
program;
``(III) develop, manage, and
maintain a system that will
automatically collect the tolls from
covered vehicles;
``(IV) continuously monitor,
evaluate, and report on performance of
the system;
``(V) establish such policies and
procedures as are necessary--
``(aa) to vary the toll
charged in order to manage the
demand for use of high
occupancy vehicle lanes; and
``(bb) to enforce
violations; and
``(VI) establish procedures to
impose such restrictions on the use of
high occupancy vehicle lanes by
vehicles that do not satisfy
established occupancy requirements as
are necessary to ensure that the
performance of individual high
occupancy vehicle lanes, and the entire
high occupancy vehicle lane system,
will not become seriously degraded.
``(D) Designated public transportation vehicles.--
``(i) Definition of designated public
transportation vehicle.--In this subparagraph,
the term `designated public transportation
vehicle' means a vehicle that--
``(I) provides designated public
transportation (as defined in section
221 of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12141)); and
``(II)(aa) is owned or operated by
a public entity; or
``(bb) is operated under a contract
with a public entity.
``(ii) Use of high occupancy vehicle
lanes.--A responsible agency may permit
designated public transportation vehicles that
do not satisfy established occupancy
requirements to use high occupancy vehicle
lanes if the responsible agency--
``(I) requires the clear and
identifiable labeling of each
designated public transportation
vehicle operating under a contract with
a public entity with the name of the
public entity on all sides of the
vehicle;
``(II) continuously monitors,
evaluates, and reports on performance
of those designated public
transportation vehicles; and
``(III) imposes such restrictions
on the use of high occupancy vehicle
lanes by designated public
transportation vehicles as are
necessary to ensure that the
performance of individual high
occupancy vehicle lanes, and the entire
high occupancy vehicle lane system,
will not become seriously degraded.
``(E) HOV lane management, operation, and
monitoring.--
``(i) In general.--A responsible agency
that permits any of the exceptions specified in
this paragraph shall comply with clauses (ii)
and (iii).
``(ii) Performance monitoring, evaluation,
and reporting.--A responsible agency described
in clause (i) shall establish, manage, and
support a performance monitoring, evaluation,
and reporting program under which the
responsible agency continuously monitors,
assesses, and reports on the effects that any
vehicle permitted to use a high occupancy
vehicle lane under an exception under this
paragraph may have on the operation of--
``(I) individual high occupancy
vehicle lanes; and
``(II) the entire high occupancy
vehicle lane system.
``(iii) Operation of hov lane or system.--A
responsible agency described in clause (i)
shall limit use of, or cease to use, any of the
exceptions specified in this paragraph if the
presence of any vehicle permitted to use a high
occupancy vehicle lane under an exception under
this paragraph seriously degrades the operation
of--
``(I) individual high occupancy
vehicle lanes; and
``(II) the entire high occupancy
vehicle lane system.''.
SEC. 1607. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.
(a) In General.--Section 217 of title 23, United States Code, is
amended--
(1) in subsection (a), by inserting ``pedestrian and''
after ``safe'';
(2) in subsection (e), by striking ``bicycles'' each place
it appears and inserting ``pedestrians or bicyclists'';
(3) by striking subsection (f) and inserting the following:
``(f) Federal Share.--The Federal share of the construction of
bicycle transportation facilities and pedestrian walkways, and for
carrying out nonconstruction projects relating to safe pedestrian and
bicycle use, shall be determined in accordance with section 120(b).'';
(4) by redesignating subsection (j) as subsection (k);
(5) by inserting after subsection (i) the following:
``(j) Bicycle and Pedestrian Safety Grants.--
``(1) In general.--The Secretary shall select and make
grants to a national, nonprofit organization engaged in
promoting bicycle and pedestrian safety--
``(A) to operate a national bicycle and pedestrian
clearinghouse;
``(B) to develop information and educational
programs regarding walking and bicycling; and
``(C) to disseminate techniques and strategies for
improving bicycle and pedestrian safety.
``(2) Funding.--The Secretary may use funds set aside under
section 104(n) to carry out this subsection.
``(3) Applicability of title 23.--Funds authorized to be
appropriated to carry out this subsection shall be available
for obligation in the same manner as if the funds were
apportioned under section 104, except that the funds shall
remain available until expended.''; and
(6) in subsection (k) (as redesignated by paragraph (4))--
(A) by redesignating paragraph (4) as paragraph
(5); and
(B) by inserting after paragraph (3) the following:
``(4) Shared use path.--The term `shared use path' means a
multiuse trail or other path that is--
``(A) physically separated from motorized vehicular
traffic by an open space or barrier, either within a
highway right-of-way or within an independent right-of-
way; and
``(B) usable for transportation purposes (including
by pedestrians, bicyclists, skaters, equestrians, and
other nonmotorized users).''.
(b) Reservation of Funds.--Section 104 of title 23, United States
Code (as amended by section 1522), is amended by adding at the end the
following:
``(n) Bicycle and Pedestrian Safety Grants.--On October 1 of each
of fiscal years 2004 through 2009, the Secretary, after making the
deductions authorized by subsections (a) and (f), shall set aside
$500,000 of the remaining funds apportioned under subsection (b)(3) for
use in carrying out the bicycle and pedestrian safety grant program
under section 217.''.
SEC. 1608. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY.
Section 111 of title 23, United States Code, is amended by adding
at the end the following:
``(d) Idling Reduction Facilities in Interstate Rights-of-Way.--
``(1) In general.--Notwithstanding subsection (a), a State
may--
``(A) permit electrification or other idling
reduction facilities and equipment, for use by motor
vehicles used for commercial purposes, to be placed in
rest and recreation areas, and in safety rest areas,
constructed or located on rights-of-way of the
Interstate System in the State, so long as those idling
reduction measures do not--
``(i) reduce the existing number of
designated truck parking spaces at any given
rest or recreation area; or
``(ii) preclude the use of those spaces by
trucks employing alternative idle reduction
technologies; and
``(B) charge a fee, or permit the charging of a
fee, for the use of those parking spaces actively
providing power to a truck to reduce idling.
``(2) Purpose.--The exclusive purpose of the facilities
described in paragraph (1) (or similar technologies) shall be
to enable operators of motor vehicles used for commercial
purposes--
``(A) to reduce idling of a truck while parked in
the rest or recreation area; and
``(B) to use installed or other equipment
specifically designed to reduce idling of a truck, or
provide alternative power for supporting driver
comfort, while parked.''.
SEC. 1609. TOLL PROGRAMS.
(a) Interstate System Reconstruction and Rehabilitation Pilot
Program.--Section 1216(b) of the Transportation Equity Act for the 21st
Century (23 U.S.C. 129 note; 112 Stat. 212)--
(1) is amended--
(A) in paragraph (1)--
(i) by striking ``The Secretary'' and
inserting ``Notwithstanding section 301, the
Secretary''; and
(ii) by striking ``that could not otherwise
be adequately maintained or functionally
improved without the collection of tolls'';
(B) in paragraph (3), by striking subparagraph (C)
and inserting the following:
``(C) An analysis demonstrating that financing the
reconstruction or rehabilitation of the facility with
the collection of tolls under this pilot program is the
most efficient, economical, or expeditious way to
advance the project.'';
(C) in paragraph (4)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) the State's analysis showing that financing
the reconstruction or rehabilitation of a facility with
the collection of tolls under the pilot program is the
most efficient, economical, or expeditious way to
advance the project;'';
(ii) by striking subparagraph (B) and
inserting the following:
``(B) the facility needs reconstruction or
rehabilitation, including major work that may require
replacing sections of the existing facility on new
alignment;'';
(iii) by striking subparagraph (C); and
(iv) by redesignating subparagraphs (D) and
(E) as subparagraphs (C) and (D), respectively;
(2) is redesignated as subsection (d) of section 129 of
title 23, United States Code, and moved to appear at the end of
that section; and
(3) by striking ``of title 23, United States Code'' each
place it appears.
(b) Fast and Sensible Toll (FAST) Lanes Program.--Section 129 of
title 23, United States Code (as amended by subsection (a)(2)), is
amended by adding at the end the following:
``(e) Fast and Sensible Toll (FAST) Lanes Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible toll facility.--The term `eligible
toll facility' includes--
``(i) a facility in existence on the date
of enactment of this subsection that collects
tolls;
``(ii) a facility in existence on the date
of enactment of this subsection, including a
facility that serves high occupancy vehicles;
``(iii) a facility modified or constructed
after the date of enactment of this subsection
to create additional tolled capacity (including
a facility constructed by a private entity or
using private funds); and
``(iv) in the case of a new lane added to a
previously non-tolled facility, only the new
lane.
``(B) Nonattainment area.--The term `nonattainment
area' has the meaning given the term in section 171 of
the Clean Air Act (42 U.S.C. 7501).
``(2) Establishment.--Notwithstanding sections 129 and 301,
the Secretary shall permit a State, public authority, or a
public or private entity designated by a State, to collect a
toll from motor vehicles at an eligible toll facility for any
highway, bridge, or tunnel, including facilities on the
Interstate System--
``(A) to manage high levels of congestion;
``(B) to reduce emissions in a nonattainment area
or maintenance area; or
``(C) to finance the expansion of a highway, for
the purpose of reducing traffic congestion, by
constructing 1 or more additional lanes (including
bridge, tunnel, support, and other structures necessary
for that construction) on the Interstate System.
``(3) Limitation on use of revenues.--
``(A) Use.--
``(i) In general.--Toll revenues received
under paragraph (2) shall be used by a State,
public authority, or private entity designated
by a State, for--
``(I) debt service for debt
incurred on 1 or more highway or
transit projects carried out under this
title or title 49;
``(II) a reasonable return on
investment of any private financing;
``(III) the costs necessary for
proper operation and maintenance of any
facilities under paragraph (2)
(including reconstruction, resurfacing,
restoration, and rehabilitation); or
``(IV) if the State, public
authority, or private entity annually
certifies that the tolled facility is
being adequately operated and
maintained, any other purpose relating
to a highway or transit project carried
out under this title or title 49.
``(B) Requirements.--
``(i) Variable price requirement.--A
facility that charges tolls under this
subsection may establish a toll that varies in
price according to time of day or level of
traffic, as appropriate to manage congestion or
improve air quality.
``(ii) HOV variable pricing requirement.--
The Secretary shall require, for each high
occupancy vehicle facility that charges tolls
under this subsection, that the tolls vary in
price according to time of day or level of
traffic, as appropriate to manage congestion or
improve air quality.
``(iii) HOV passenger requirements.--In
addition to the exceptions to the high
occupancy vehicle passenger requirements
established under section 102(a)(2), a State
may permit motor vehicles with fewer than 2
occupants to operate in high occupancy vehicle
lanes as part of a variable toll pricing
program established under this subsection.
``(C) Agreement.--
``(i) In general.--Before the Secretary may
permit a facility to charge tolls under this
subsection, the Secretary and the applicable
State, public authority, or private entity
designated by a State shall enter into an
agreement for each facility incorporating the
conditions described in subparagraphs (A) and
(B).
``(ii) Termination.--An agreement under
clause (i) shall terminate with respect to a
facility upon the decision of the State, public
authority, or private entity designated by a
State to discontinue the variable tolling
program under this subsection for the facility.
``(iii) Debt.--
``(I) In general.--If there is any
debt outstanding on a facility at the
time at which the decision is made to
discontinue the program under this
subsection with respect to the
facility, the facility may continue to
charge tolls in accordance with the
terms of the agreement until such time
as the debt is retired.
``(II) Notice.--On retirement of
the debt of a tolled facility, the
applicable State, public authority, or
private entity designated by a State
shall provide notice to the public of
that retirement.
``(D) Limitation on federal share.--The Federal
share of the cost of a project on a facility tolled
under this subsection, including a project to install
the toll collection facility shall be a percentage, not
to exceed 80 percent, determined by the applicable
State.
``(4) Eligibility.--To be eligible to participate in the
program under this subsection, a State, public authority, or
private entity designated by a State shall provide to the
Secretary--
``(A) a description of the congestion or air
quality problems sought to be addressed under the
program;
``(B) a description of--
``(i) the goals sought to be achieved under
the program; and
``(ii) the performance measures that would
be used to gauge the success made toward
reaching those goals; and
``(C) such other information as the Secretary may
require.
``(5) Automation.--Fees collected from motorists using a
FAST lane shall be collected only through the use of noncash
electronic technology that optimizes the free flow of traffic
on the tolled facility.
``(6) Interoperability.--
``(A) Rule.--
``(i) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Secretary shall promulgate a final rule
specifying requirements, standards, or
performance specifications for automated toll
collection systems implemented under this
section.
``(ii) Development.--In developing that
rule, which shall be designed to maximize the
interoperability of electronic collection
systems, the Secretary shall, to the maximum
extent practicable--
``(I) seek to accelerate progress
toward the national goal of achieving a
nationwide interoperable electronic
toll collection system;
``(II) take into account the use of
noncash electronic technology currently
deployed within an appropriate
geographical area of travel and the
noncash electronic technology likely to
be in use within the next 5 years; and
``(III) seek to minimize additional
costs and maximize convenience to users
of toll facility and to the toll
facility owner or operator.
``(B) Future modifications.--As the state of
technology progresses, the Secretary shall modify the
rule promulgated under subparagraph (A), as
appropriate.
``(7) Reporting.--
``(A) In general.--The Secretary, in cooperation
with State and local agencies and other program
participants and with opportunity for public comment,
shall--
``(i) develop and publish performance goals
for each FAST lane project;
``(ii) establish a program for regular
monitoring and reporting on the achievement of
performance goals, including--
``(I) effects on travel, traffic,
and air quality;
``(II) distribution of benefits and
burdens;
``(III) use of alternative
transportation modes; and
``(IV) use of revenues to meet
transportation or impact mitigation
needs.
``(B) Reports to congress.--The Secretary shall
submit to the Committee on Environment and Public Works
of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives--
``(i) not later than 1 year after the date
of enactment of this subsection, and annually
thereafter, a report that describes in detail
the uses of funds under this subsection in
accordance with paragraph (8)(D); and
``(ii) not later than 3 years after the
date of enactment of this subsection, and every
3 years thereafter, a report that describes any
success of the program under this subsection in
meeting congestion reduction and other
performance goals established for FAST lane
programs.
``(8) Funding.--
``(A) Authorization of appropriations.--There is
authorized to be appropriated from the Highway Trust
Fund (other than the Mass Transit Account) to carry out
pre-implementation studies and post-implementation
evaluations of projects planned or implemented under
this subsection $11,000,000 for each of fiscal years
2004 through 2009.
``(B) Availability.--Funds allocated by the
Secretary to a State under this subsection shall remain
available for obligation by the State for a period of 3
years after the last day of the fiscal year for which
the funds were authorized.
``(C) Contract authority.--Funds authorized to be
appropriated under this paragraph shall be available
for obligation in the same manner as if the funds were
apportioned under this chapter, except that the Federal
share of the cost of any project carried out under this
subsection and the availability of funds authorized by
this paragraph shall be determined in accordance with
this subsection.
``(D) Program promotion.--Notwithstanding any other
provision of this section, the Secretary shall use an
amount not to exceed 2 percent of the funds made
available under subparagraph (A)--
``(i) to make grants to promote the
purposes of the program under this subsection;
``(ii) to provide technical support to
State and local governments or other public or
private entities involved in implementing or
considering FAST lane programs; and
``(iii) to conduct research on variable
pricing that will support State or local
efforts to initiate those pricing requirements.
``(E) Effect on other apportionments and
allocations.--Revenues collected from tolls established
under this subsection shall not be taken into account
in determining the apportionments and allocations that
any State or transportation district within a State
shall be entitled to receive under or in accordance
with this chapter.
``(9) Compliance.--The Secretary shall ensure that any
project or activity carried out under this section complies
with requirements under section 106 of this title and section
307 of title 49.
``(10) Voluntary use.--Nothing in this subsection requires
any highway user to use a FAST lane.
``(11) Environmental requirements.--Nothing in this
subsection affects any environmental requirement applicable to
the construction or operation of an eligible toll facility
under this title or any other provision of law.''.
(c) Conforming Amendments.--
(1) In general.--Section 1012 of the Intermodal Surface
Transportation Efficiency Act (23 U.S.C. 149 note; 105 Stat.
1938; 112 Stat. 211) is amended by striking subsection (b).
(2) Continuation of program.--Notwithstanding the amendment
made by paragraph (1), the Secretary shall monitor and allow
any value pricing program established under a cooperative
agreement in effect on the day before the date of enactment of
this Act to continue.
SEC. 1610. FEDERAL REFERENCE METHOD.
(a) In General.--Section 6102 of the Transportation Equity Act for
the 21st Century (42 U.S.C. 7407 note; 112 Stat. 464) is amended by
striking subsection (e) and inserting the following:
``(e) Field Study.--Not later than 2 years after the date of
enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, the Administrator shall--
``(1) conduct a field study of the ability of the
PM<INF>2.5</INF> Federal Reference Method to differentiate
those particles that are larger than 2.5 micrometers in
diameter;
``(2) develop a Federal reference method to measure
directly particles that are larger than 2.5 micrometers in
diameter without reliance on subtracting from coarse particle
measurements those particles that are equal to or smaller than
2.5 micrometers in diameter;
``(3) develop a method of measuring the composition of
coarse particles; and
``(4) submit a report on the study and responsibilities of
the Administrator under paragraphs (1) through (3) to--
``(A) the Committee on Commerce of the House of
Representatives; and
``(B) the Committee on Environment and Public Works
of the Senate.''.
SEC. 1611. ADDITION OF PARTICULATE MATTER AREAS TO CMAQ.
Section 104(b)(2) of title 23, United States Code, is amended--
(1) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking
``ozone or carbon monoxide'' and inserting ``ozone,
carbon monoxide, or fine particulate matter
(PM<INF>2.5</INF>)'';
(B) by striking clause (i) and inserting the
following:
``(i) 1.0, if at the time of apportionment,
the area is a maintenance area;'';
(C) in clause (vi), by striking ``or'' after the
semicolon; and
(D) in clause (vii)--
(i) by striking ``area as described in
section 149(b) for ozone,'' and inserting
``area for ozone (as described in section
149(b) or for PM-2.5''; and
(ii) by striking the period at the end and
inserting a semicolon;
(2) by adding at the end the following:
``(viii) 1.0 if, at the time of
apportionment, any county that is not
designated as a nonattainment or maintenance
area under the 1-hour ozone standard is
designated as nonattainment under the 8-hour
ozone standard; or
``(ix) 1.2 if, at the time of
apportionment, the area is not a nonattainment
or maintenance area as described in section
149(b) for ozone or carbon monoxide, but is an
area designated nonattainment under the PM-2.5
standard.'';
(3) by striking subparagraph (C) and inserting the
following:
``(C) Additional adjustment for carbon monoxide
areas.--If, in addition to being designated as a
nonattainment or maintenance area for ozone as
described in section 149(b), any county within the area
was also classified under subpart 3 of part D of title
I of the Clean Air Act (42 U.S.C. 7512 et seq.) as a
nonattainment or maintenance area described in section
149(b) for carbon monoxide, the weighted nonattainment
or maintenance area population of the county, as
determined under clauses (i) through (vi) or clause
(viii) of subparagraph (B), shall be further multiplied
by a factor of 1.2.'';
(4) by redesignating subparagraph (D) and (E) as
subparagraphs (E) and (F) respectively; and
(5) by inserting after subparagraph (C) the following:
``(D) Additional adjustment for pm 2.5 areas.--If,
in addition to being designated as a nonattainment or
maintenance area for ozone or carbon monoxide, or both
as described in section 149(b), any county within the
area was also designated under the PM-2.5 standard as a
nonattainment or maintenance area, the weighted
nonattainment or maintenance area population of those
counties shall be further multiplied by a factor of
1.2.''.
SEC. 1612. ADDITION TO CMAQ-ELIGIBLE PROJECTS.
(a) Eligible Projects.--Section 149(b) of title 23, United States
Code, is amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting 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.''.
(b) States Receiving Minimum Apportionment.--Section 149(c) of
title 23, United States Code, is amended--
(1) in paragraph (1), by striking ``for any project
eligible under the surface transportation program under section
133.'' and inserting the following: ``for any project in the
State that--
``(A) would otherwise be eligible under this
section as if the project were carried out in a
nonattainment or maintenance area; or
``(B) is eligible under the surface transportation
program under section 133.''; and
(2) in paragraph (2), by striking ``for any project in the
State eligible under section 133.'' and inserting the
following: ``for any project in the State that--
``(A) would otherwise be eligible under this
section as if the project were carried out in a
nonattainment or maintenance area; or
``(B) is eligible under the surface transportation
program under section 133.''.
(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).
SEC. 1613. IMPROVED INTERAGENCY CONSULTATION.
Section 149 of title 23, United States Code, is amended by adding
at the end the following:
``(g) Interagency Consultation.--The Secretary shall encourage
States and metropolitan planning organizations to consult with State
and local air quality agencies in nonattainment and maintenance areas
on the estimated emission reductions from proposed congestion
mitigation and air quality improvement programs and projects.''.
SEC. 1614. EVALUATION AND ASSESSMENT OF CMAQ PROJECTS.
Section 149 of title 23, United States Code, is amended by adding
at the end the following:
``(h) Evaluation and Assessment of Projects.--
``(1) In general.--The Secretary, in consultation with the
Administrator of the Environmental Protection Agency, shall
evaluate and assess a representative sample of projects funded
under the congestion mitigation and air quality program to--
``(A) determine the direct and indirect impact of
the projects on air quality and congestion levels; and
``(B) ensure the effective implementation of the
program.
``(2) Database.--Using appropriate assessments of projects
funded under the congestion mitigation and air quality program
and results from other research, the Secretary shall maintain
and disseminate a cumulative database describing the impacts of
the projects.
``(3) Consideration.--The Secretary, in consultation with
the Administrator of the Environmental Protection Agency, shall
consider the recommendations and findings of the report
submitted to Congress under section 1110(e) of the
Transportation Equity Act for the 21st Century (112 Stat. 144),
including recommendations and findings that would improve the
operation and evaluation of the congestion mitigation and air
quality improvement program under section 149.''.
SEC. 1615. SYNCHRONIZED PLANNING AND CONFORMITY TIMELINES,
REQUIREMENTS, AND HORIZON.
(a) Metropolitan Planning.--
(1) Development of long-range transportation plan.--Section
134(g)(1) of title 23, United States Code, is amended by
striking ``periodically, according to a schedule that the
Secretary determines to be appropriate,'' and inserting ``every
4 years (or more frequently, in a case in which the
metropolitan planning organization elects to update a
transportation plan more frequently) in areas designated as
nonattainment, as defined in section 107(d) of the Clean Air
Act (42 U.S.C. 7407(d)), and in areas that were nonattainment
that have been redesignated to attainment in accordance with
section 107(d)(3) of that Act (42 U.S.C. 7407(d)(3)), with a
maintenance plan under section 175A of that Act (42 U.S.C.
7505a), or every 5 years (or more frequently, in a case in
which the metropolitan planning organization elects to update a
transportation plan more frequently) in areas designated as
attainment (as defined in section 107(d) of that Act (42 U.S.C.
7407(d))),''.
(2) Metropolitan transportation improvement program.--
Section 134(h) of title 23, United States Code, is amended--
(A) in paragraph (1)(D), by striking ``2 years''
and inserting ``4 years''; and
(B) in paragraph (2)(A), by striking ``3-year'' and
inserting ``4-year''.
(3) Statewide transportation improvement program.--Section
135(f)(1)(A) of title 23, United States Code, is amended by
inserting after ``program'' the following: ``(which program
shall cover a period of 4 years and be updated every 4
years)''.
(4) Final regulations.--Not later than 18 months after the
date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004, the Secretary
shall promulgate regulations that are consistent with the
amendments made by this subsection.
(b) Synchronized Conformity Determination.--Section 176(c) of the
Clean Air Act (42 U.S.C. 7506(c)) is amended--
(1) in paragraph (2)--
(A) by striking ``(2) Any transportation plan'' and
inserting the following:
``(2) Transportation plans and programs.--Any
transportation plan'';
(B) in subparagraph (C)(iii), by striking the
period at the end and inserting a semicolon;
(C) in subparagraph (D)--
(i) by striking ``Any project'' and
inserting ``any transportation project''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(E) the appropriate metropolitan planning
organization shall redetermine conformity of existing
transportation plans and programs not later than 2
years after the date on which the Administrator--
``(i) finds a motor vehicle emissions
budget to be adequate in accordance with
section 93.118(e)(4) of title 40, Code of
Federal Regulations (as in effect on October 1,
2003);
``(ii) approves an implementation plan that
establishes a motor vehicle emissions budget,
if that budget has not yet been used in a
conformity determination prior to approval; or
``(iii) promulgates an implementation plan
that establishes or revises a motor vehicle
emissions budget.'';
(2) in paragraph (4)(B)(ii), by striking ``but in no case
shall such determinations for transportation plans and programs
be less frequent than every 3 years; and'' and inserting ``but
the frequency for making conformity determinations on updated
transportation plans and programs shall be every 4 years,
except in a case in which--
``(I) the metropolitan planning
organization elects to update a
transportation plan or program more
frequently; or
``(II) the metropolitan planning
organization is required to determine
conformity in accordance with paragraph
(2)(E); and'';
(3) in paragraph (4)(B)--
(A) in clause (ii), by striking ``and'' at the end;
(B) in clause (iii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(iv) address the effects of the most
recent population, economic, employment,
travel, transit ridership, congestion, and
induced travel demand information in the
development and application of the latest
travel and emissions models.'';
(4) by adding at the end the following:
``(7) Conformity horizon for transportation plans.--
``(A) In general.--For the purposes of this
section, a transportation plan in a nonattainment or
maintenance area shall be considered to be a
transportation plan or a portion of a transportation
plan that extends for the longest of the following
periods:
``(i) The first 10-year period of any such
transportation plan.
``(ii) The latest year in the
implementation plan applicable to the area that
contains a motor vehicle emission budget.
``(iii) The year after the completion date
of a regionally significant project, if the
project requires approval before the subsequent
conformity determination.
``(B) Exception.--In a case in which an area has a
revision to an implementation plan under section
175A(b) and the Administrator has found the motor
vehicle emissions budgets from that revision to be
adequate in accordance with section 93.118(e)(4) of
title 40, Code of Federal Regulations (as in effect on
October 1, 2003), or has approved the revision, the
transportation plan shall be considered to be a
transportation plan or portion of a transportation plan
that extends through the last year of the
implementation plan required under section 175A(b).
``(8) Definitions.--In this subsection:
``(A) Regionally significant project.--
``(i) In general.--The term `regionally
significant project' means a transportation
project that is on a facility that serves a
regional transportation need, including--
``(I) access to and from the area
outside of the region;
``(II) access to and from major
planned developments, including new
retail malls, sports complexes, or
transportation terminals; and
``(III) most transportation
terminals.
``(ii) Principal arterials and fixed
guideways.--The term `regionally significant
project' includes, at a minimum--
``(I) all principal arterial
highways; and
``(II) all fixed guideway transit
facilities that offer an alternative to
regional highway travel.
``(iii) Additional projects.--The
interagency consultation process and procedures
described in section 93.105(c) of title 40,
Code of Federal Regulations (as in effect on
October 1, 2003), shall be used to make
determinations as to whether minor arterial
highways and other transportation projects
should be considered `regionally significant
projects'.
``(iv) Exclusions.--The term `regionally
significant project' does not include any
project of a type listed in sections 93.126 or
127 of title 40, Code of Federal Regulations
(as in effect on October 1, 2003).
``(B) Significant revision.--The term `significant
revision' means--
``(i) with respect to a regionally
significant project, a significant change in
design concept or scope to the project; and
``(ii) with respect to any other kind of
project, a change that converts a project that
is not a regionally significant project into a
regionally significant project.
``(C) Transportation project.--The term
`transportation project' includes only a project that
is--
``(i) a regionally significant project; or
``(ii) a project that makes a significant
revision to an existing project.''; and
(5) in the matter following paragraph (3)(B), by inserting
``transportation'' before ``project'' each place it appears.
SEC. 1616. TRANSITION TO NEW AIR QUALITY STANDARDS.
Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) is amended
by striking paragraph (3) and inserting the following:
``(3) Methods of conformity determination before budget is
available.--
``(A) In general.--Until such time as a motor
vehicle emission budget from an implementation plan
submitted for a national ambient air quality standard
is determined to be adequate in accordance with section
93.118(e)(4) of title 40, Code of Federal Regulations
(as in effect on October 1, 2003), or the submitted
implementation plan is approved, conformity of such a
plan, program, or project shall be demonstrated, in
accordance with clauses (i) and (ii) and as selected
through the consultation process required under
paragraph (4)(D)(i), with--
``(i) a motor vehicle emission budget that
has been found adequate in accordance with
section 93.118(e)(4) of title 40, Code of
Federal Regulations (as in effect on October 1,
2003), or that has been approved, from an
implementation plan for the most recent prior
applicable national ambient air quality
standard addressing the same pollutant; or
``(ii) other such tests as the
Administrator shall determine to ensure that--
``(I) the transportation plan or
program--
``(aa) is consistent with
the most recent estimates of
mobile source emissions;
``(bb) provides for the
expeditious implementation of
transportation control measures
in the applicable
implementation plan; and
``(cc) with respect to an
ozone or carbon monoxide
nonattainment area, contributes
to annual emissions reductions
consistent with sections
182(b)(1) and 187(a)(7); and
``(II) the transportation project--
``(aa) comes from a
conforming transportation plan
and program described in this
subparagraph; and
``(bb) in a carbon monoxide
nonattainment area, eliminates
or reduces the severity and
number of violations of the
carbon monoxide standards in
the area substantially affected
by the project.
``(B) Determination for a transportation project in
a carbon monoxide nonattainment area.--A determination
under subparagraph (A)(ii)(II)(bb) may be made as part
of either the conformity determination for the
transportation program or for the individual project
taken as a whole during the environmental review phase
of project development.''.
SEC. 1617. REDUCED BARRIERS TO AIR QUALITY IMPROVEMENTS.
Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (as amended
by section 1615(b)(4)) is amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) Substitution for transportation control measures.--
``(A) In general.--Transportation control measures
that are specified in an implementation plan may be
replaced or added to the implementation plan with
alternate or additional transportation control measures
if--
``(i) the substitute measures achieve
equivalent or greater emissions reductions than
the control measure to be replaced, as
demonstrated with an analysis that is
consistent with the current methodology used
for evaluating the replaced control measure in
the implementation plan;
``(ii) the substitute control measures are
implemented--
``(I) in accordance with a schedule
that is consistent with the schedule
provided for control measures in the
implementation plan; or
``(II) if the implementation plan
date for implementation of the control
measure to be replaced has passed, as
soon as practicable after the
implementation plan date but not later
than the date on which emission
reductions are necessary to achieve the
purpose of the implementation plan;
``(iii) the substitute and additional
control measures are accompanied with evidence
of adequate personnel, funding, and authority
under State or local law to implement, monitor,
and enforce the control measures;
``(iv) the substitute and additional
control measures were developed through a
collaborative process that included--
``(I) participation by
representatives of all affected
jurisdictions (including local air
pollution control agencies, the State
air pollution control agency, and State
and local transportation agencies);
``(II) consultation with the
Administrator; and
``(III) reasonable public notice
and opportunity for comment; and
``(v) the metropolitan planning
organization, State air pollution control
agency, and the Administrator concur with the
equivalency of the substitute or additional
control measures.
``(B) Adoption.--After carrying out subparagraph
(A), a State shall adopt the substitute or additional
transportation control measure in the applicable
implementation plan.
``(C) No requirement for express permission.--The
substitution or addition of a transportation control
measure in accordance with this paragraph shall not be
contingent on there being any provision in the
implementation plan that expressly permits such a
substitution or addition.
``(D) No requirement for new conformity
determination.--The substitution or addition of a
transportation control measure in accordance with this
paragraph shall not require--
``(i) a new conformity determination for
the transportation plan; or
``(ii) a revision of the implementation
plan.
``(E) Continuation of control measure being
replaced.--A control measure that is being replaced by
a substitute control measure under this paragraph shall
remain in effect until the substitute control measure
is adopted by the State pursuant to subparagraph (B).
``(F) Effect of adoption.--Adoption of a substitute
control measure shall constitute rescission of the
previously applicable control measure.''.
SEC. 1618. AIR QUALITY MONITORING DATA INFLUENCED BY EXCEPTIONAL
EVENTS.
(a) In General.--Section 319 of the Clean Air Act (42 U.S.C. 7619)
is amended--
(1) by striking the section heading and all that follows
through ``after notice and opportunity for public hearing'' and
inserting the following:
``SEC. 319. AIR QUALITY MONITORING.
``(a) In General.--After notice and opportunity for public
hearing''; and
(2) by adding at the end the following:
``(b) Air Quality Monitoring Data Influenced by Exceptional
Events.--
``(1) Definition of exceptional event.--In this section:
``(A) In general.--The term `exceptional event'
means an event that--
``(i) affects air quality;
``(ii) is not reasonably controllable or
preventable;
``(iii) is--
``(I) a natural event; or
``(II) an event caused by human
activity that is unlikely to recur at a
particular location; and
``(iv) is determined by the Administrator
through the process established in the
regulations promulgated under paragraph (2) to
be an exceptional event.
``(B) Exclusions.--The term `exceptional event'
does not include--
``(i) stagnation of air masses or
meteorological inversions;
``(ii) a meteorological event involving
high temperatures or lack of precipitation; or
``(iii) air pollution relating to source
noncompliance.
``(2) Regulations.--
``(A) Proposed regulations.--Not later than March
1, 2005, after consultation with Federal land managers
and State air pollution control agencies, the
Administrator shall publish in the Federal Register
proposed regulations governing the review and handling
of air quality monitoring data influenced by
exceptional events.
``(B) Final regulations.--Not later than 1 year
after the date on which the Administrator publishes
proposed regulations under subparagraph (A), and after
providing an opportunity for interested persons to make
oral presentations of views, data, and arguments
regarding the proposed regulations, the Administrator
shall promulgate final regulations governing the review
and handling or air quality monitoring data influenced
by an exceptional event that are consistent with
paragraph (3).
``(3) Principles and requirements.--
``(A) Principles.--In promulgating regulations
under this section, the Administrator shall follow--
``(i) the principle that protection of
public health is the highest priority;
``(ii) the principle that timely
information should be provided to the public in
any case in which the air quality is unhealthy;
``(iii) the principle that all ambient air
quality data should be included in a timely
manner, an appropriate Federal air quality
database that is accessible to the public;
``(iv) the principle that each State must
take necessary measures to safeguard public
health regardless of the source of the air
pollution; and
``(v) the principle that air quality data
should be carefully screened to ensure that
events not likely to recur are represented
accurately in all monitoring data and analyses.
``(B) Requirements.--Regulations promulgated under
this section shall, at a minimum, provide that--
``(i) the occurrence of an exceptional
event must be demonstrated by reliable,
accurate data that is promptly produced and
provided by Federal, State, or local government
agencies;
``(ii) a clear causal relationship must
exist between the measured exceedances of a
national ambient air quality standard and the
exceptional event to demonstrate that the
exceptional event caused a specific air
pollution concentration at a particular air
quality monitoring location;
``(iii) there is a public process for
determining whether an event is exceptional;
and
``(iv) there are criteria and procedures
for the Governor of a State to petition the
Administrator to exclude air quality monitoring
data that is directly due to exceptional events
from use in determinations by the Environmental
Protection Agency with respect to exceedances
or violations of the national ambient air
quality standards.
``(4) Interim provision.--Until the effective date of a
regulation promulgated under paragraph (2), the following
guidance issued by the Administrator shall continue to apply:
``(A) Guidance on the identification and use of air
quality data affected by exceptional events (July
1986).
``(B) Areas affected by PM-10 natural events, May
30, 1996.
``(C) Appendices I, K, and N to part 50 of title
40, Code of Federal Regulations.''.
SEC. 1619. CONFORMING AMENDMENTS.
Section 176(c)(4) of the Clean Air Act (42 U.S.C. 7506(c)(4) is
amended--
(1) by redesignating subparagraphs (B) through (D) as
subparagraphs (D) through (F), respectively;
(2) by striking ``(4)(A) No later than one year after the
date of enactment of the Clean Air Act Amendments of 1990, the
Administrator shall promulgate'' and inserting the following:
``(4) Criteria and procedures for determining conformity.--
``(A) In general.--The Administrator shall
promulgate, and periodically update,'';
(3) in subparagraph (A)--
(A) in the second sentence, by striking ``No later
than one year after such date of enactment, the
Administrator, with the concurrence of the Secretary of
Transportation, shall promulgate'' and inserting the
following:
``(B) Transportation plans, programs, and
projects.--The Administrator, with the concurrence of
the Secretary of Transportation, shall promulgate, and
periodically update,''; and
(B) in the third sentence, by striking ``A suit''
and inserting the following:
``(C) Civil action to compel promulgation.--A civil
action''; and
(4) by striking subparagraph (E) (as redesignated by
paragraph (1)) and inserting the following:
``(E) Inclusion of criteria and procedures in
sip.--Not later than 2 years after the date of
enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004, the
procedures under subparagraph (A) shall include a
requirement that each State include in the State
implementation plan criteria and procedures for
consultation in accordance with the Administrator's
criteria and procedures for consultation required by
subparagraph (D)(i).''.
SEC. 1620. HIGHWAY STORMWATER DISCHARGE MITIGATION PROGRAM.
(a) Highway Stormwater Mitigation Projects.--Section 133(d) of
title 23, United States Code (as amended by section 1401(a)(2)(B)), is
amended by adding at the end the following:
``(5) Highway stormwater discharge mitigation projects.--Of
the amount apportioned to a State under section 104(b)(3) for a
fiscal year, 2 percent shall be available only for projects and
activities carried out under section 167.''.
(b) Highway Stormwater Discharge Mitigation Program.--Subchapter I
of chapter 1 of title 23, United States Code (as amended by section
1601(a)), is amended by adding at the end the following:
``Sec. 167. Highway stormwater discharge mitigation program
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Eligible mitigation project.--The term `eligible
mitigation project' means a practice or technique that--
``(A) improves stormwater discharge water quality;
``(B) attains preconstruction hydrology;
``(C) promotes infiltration of stormwater into
groundwater;
``(D) recharges groundwater;
``(E) minimizes stream bank erosion;
``(F) promotes natural filters;
``(G) otherwise mitigates water quality impacts of
highway stormwater discharges, improves surface water
quality, or enhances groundwater recharge; or
``(H) reduces flooding caused by highway stormwater
discharge.
``(3) Federal-aid highway and associated facility.--The
term `Federal-aid highway and associated facility' means--
``(A) a Federal-aid highway; or
``(B) a facility or land owned by a State (or
political subdivision of a State) that is directly
associated with the Federal-aid highway.
``(4) Highway stormwater discharge.--The term `highway
stormwater discharge' means stormwater discharge from a
Federal-aid highway, or a Federal-aid highway and associated
facility, that was constructed before the date of enactment of
this section.
``(5) Highway stormwater discharge mitigation.--The term
`highway stormwater discharge mitigation' means--
``(A) the reduction of water quality impacts of
stormwater discharges from Federal-aid highways or
Federal-aid highways and associated facilities; or
``(B) the enhancement of groundwater recharge from
stormwater discharges from Federal-aid highways or
Federal-aid highways and associated facilities.
``(6) Program.--The term `program' means the highway
stormwater discharge mitigation program established under
subsection (b).
``(b) Establishment.--The Secretary shall establish a highway
stormwater discharge mitigation program--
``(1) to improve the quality of stormwater discharge from
Federal-aid highways or Federal-aid highways and associated
facilities; and
``(2) to enhance groundwater recharge.
``(c) Priority of Projects.--For projects funded from the
allocation under section 133(d)(6), a State shall give priority to
projects sponsored by a State or local government that assist the State
or local government in complying with the Federal Water Pollution
Control Act (33 U.S.C. 1251 et seq.).
``(d) Guidance.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, in consultation
with the Administrator, shall issue guidance to assist States
in carrying out this section.
``(2) Requirements for guidance.--The guidance issued under
paragraph (1) shall include information concerning innovative
technologies and nonstructural best management practices to
mitigate highway stormwater discharges.''.
(c) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1601(b), is
amended by inserting after the item relating to section 166 the
following:
``167. Highway stormwater discharge mitigation program.''.
SEC. 1621. EXEMPTION FROM CERTAIN HAZARDOUS MATERIALS TRANSPORTATION
REQUIREMENTS.
(a) Definition of Eligible Person.--In this section, the term
``eligible person'' means an agricultural producer that has gross
agricultural commodity sales that do not exceed $500,000.
(b) Exemption.--Subject to subsection (c), part 172 of title 49,
Code of Federal Regulations, shall not apply to an eligible person that
transports a fertilizer, pesticide, propane, gasoline, or diesel fuel
for agricultural purposes, to the extent determined by the Secretary.
(c) Applicability.--Subsection (b) applies to security plan
requirements under subpart I of part 172 of title 49, Code of Federal
Regulations (or a successor regulation).
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.
Subtitle G--Operations
SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.
(a) Surface Transportation Program Eligibility.--Section 133(b) of
title 23, United States Code (as amended by section 1601(a)(2)), is
amended by adding at the end the following:
``(16) Regional transportation operations collaboration and
coordination activities that are associated with regional
improvements, such as traffic incident management, technology
deployment, emergency management and response, traveler
information, and regional congestion relief.
``(17) Rush hour congestion relief.--
``(A) In general.--Subject to subparagraph (B), a
State may spend the funds apportioned under this
section to reduce traffic delays caused by motor
vehicle accidents and breakdowns on highways during
peak driving times.
``(B) Use of funds.--A State, metropolitan planning
organization, or local government may use the funds
under subparagraph (A)--
``(i) to develop a region-wide coordinated
plan to mitigate traffic delays caused by motor
vehicle accidents and breakdowns;
``(ii) to purchase or lease
telecommunications equipment for first
responders;
``(iii) to purchase or lease towing and
recovery services;
``(iv) to pay contractors for towing and
recovery;
``(v) to rent vehicle storage areas
adjacent to roadways;
``(vi) to fund service patrols, equipment,
and operations;
``(vii) to purchase incident detection
equipment;
``(viii) to carry out training.''.
(b) Congestion Mitigation and Air Quality Improvement Program
Eligibility.--Section 149(b)(5) of title 23, United States Code, is
amended by inserting ``improve transportation systems management and
operations,'' after ``intersections,''.
(c) Transportation Systems Management and Operations.--
(1) In general.--Subchapter I of chapter 1 of title 23,
United States Code (as amended by section 1620(b)), is amended
by adding at the end the following:
``Sec. 168. Transportation systems management and operations
``(a) In General.--The Secretary shall carry out a transportation
systems management and operations program to--
``(1) ensure efficient and effective transportation systems
management and operations on Federal-aid highways through
collaboration, coordination, and real-time information sharing
at a regional and Statewide level among--
``(A) managers and operators of major modes of
transportation;
``(B) public safety officials; and
``(C) the general public; and
``(2) manage and operate Federal-aid highways in a
coordinated manner to preserve the capacity and maximize the
performance of highway and transit facilities for travelers and
carriers.
``(b) Authorized Activities.--
``(1) In general.--In carrying out the program under
subsection (a), the Secretary may carry out activities to--
``(A) encourage managers and operators of major
modes of transportation, public safety officials, and
transportation planners in urbanized areas that are
responsible for conducting the day-to-day management,
operations, public safety, and planning of
transportation facilities and services to collaborate
on and coordinate, on a regional level and in a
continuous and sustained manner, improved
transportation systems management and operations; and
``(B) encourage States to--
``(i) establish a system of basic real-time
monitoring for the surface transportation
system; and
``(ii) provide the means to share the data
gathered under clause (i) among--
``(I) highway, transit, and public
safety agencies;
``(II) jurisdictions (including
States, cities, counties, and
metropolitan planning organizations);
``(III) private-sector entities;
and
``(IV) the general public.
``(2) Activities.--Activities to be carried out under
paragraph (1) include--
``(A) developing a regional concept of operations
that defines a regional strategy shared by all
transportation and public safety participants with
respect to the manner in which the transportation
systems of the region should be managed, operated, and
measured;
``(B) the sharing of information among operators,
service providers, public safety officials, and the
general public; and
``(C) guiding, in a regionally-coordinated manner
and in a manner consistent with and integrated into the
metropolitan and statewide transportation planning
processes and regional intelligent transportation
system architecture, the implementation of regional
transportation system management and operations
initiatives, including--
``(i) emergency evacuation and response;
``(ii) traffic incident management;
``(iii) technology deployment; and
``(iv) traveler information systems
delivery.
``(c) Cooperation.--In carrying out the program under subsection
(a), the Secretary may assist and cooperate with other Federal
agencies, State and local governments, metropolitan planning
organizations, private industry, and other interested parties to
improve regional collaboration and real-time information sharing
between managers and operators of major modes of transportation, public
safety officials, emergency managers, and the general public to
increase the security, safety, and reliability of Federal-aid highways.
``(d) Guidance; Regulations.--
``(1) In general.--In carrying out the program under
subsection (a), the Secretary may issue guidance or promulgate
regulations for the procurement of transportation system
management and operations facilities, equipment, and services,
including--
``(A) equipment procured in preparation for natural
disasters, disasters caused by human activity, and
emergencies;
``(B) system hardware;
``(C) software; and
``(D) software integration services.
``(2) Considerations.--In developing the guidance or
regulations under paragraph (1), the Secretary may consider
innovative procurement methods that support the timely and
streamlined execution of transportation system management and
operations programs and projects.
``(3) Financial assistance.--The Secretary may authorize
the use of funds made available under section 104(b)(3) to
provide assistance for regional operations collaboration and
coordination activities that are associated with regional
improvements, such as--
``(A) traffic incident management;
``(B) technology deployment;
``(C) emergency management and response;
``(D) traveler information; and
``(E) congestion relief.''.
(2) Conforming amendment.--The analysis for subchapter I of
chapter 1 of title 23, United States Code (as amended by
section 1620(c)), is amended by adding at the end:
``168. Transportation systems management and operations.''.
SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1701(c)(1)), is amended by adding at
the end the following:
``Sec. 169. Real-time system management information program
``(a) In General.--The Secretary shall carry out a real-time system
management information program to--
``(1) provide a nationwide system of basic real-time
information for managing and operating the surface
transportation system;
``(2)(A) identify long-range real-time highway and transit
monitoring needs; and
``(B) develop plans and strategies for meeting those needs;
``(3) provide the capability and means to share the basic
real-time information with State and local governments and the
traveling public; and
``(4) provide the nationwide capability to monitor, in
real-time, the traffic and travel conditions of major highways
in the United States, and to share that information with State
and local governments and the traveling public, to--
``(A) improve the security of the surface
transportation system;
``(B) address congestion problems;
``(C) support improved response to weather events;
and
``(D) facilitate the distribution of national and
regional traveler information.
``(b) Data Exchange Formats.--Not later than 1 year after the date
of enactment of this section, the Secretary shall establish data
exchange formats to ensure that the data provided by highway and
transit monitoring systems (including statewide incident reporting
systems) can readily be exchanged between jurisdictions to facilitate
the nationwide availability of information on traffic and travel
conditions.
``(c) Statewide Incident Reporting System.--Not later than 2 years
after the date of enactment of this section, or not later than 5 years
after the date of enactment of this section if the Secretary determines
that adequate real-time communications capability will not be available
within 2 years after the date of enactment of this section, each State
shall establish a statewide incident reporting system to facilitate the
real-time electronic reporting of highway and transit incidents to a
central location for use in--
``(1) monitoring an incident;
``(2) providing accurate traveler information on the
incident; and
``(3) responding to the incident as appropriate.
``(d) Regional ITS Architecture.--
``(1) In general.--In developing or updating regional
intelligent transportation system architectures under section
940.9 of title 23, Code of Federal Regulations (or any
successor regulation), States and local governments shall
address--
``(A) the real-time highway and transit information
needs of the State or local government, including
coverage, monitoring systems, data fusion and
archiving, and methods of exchanging or sharing
information; and
``(B) the systems needed to meet those needs.
``(2) Data exchange formats.--In developing or updating
regional intelligent transportation system architectures,
States and local governments are encouraged to incorporate the
data exchange formats developed by the Secretary under
subsection (b) to ensure that the data provided by highway and
transit monitoring systems can readily be--
``(A) exchanged between jurisdictions; and
``(B) shared with the traveling public.
``(e) Eligible Funding.--Subject to project approval by the
Secretary, a State may--
``(1) use funds available to the State under section 505(a)
to carry out activities relating to the planning of real-time
monitoring elements; and
``(2) use funds apportioned to the State under paragraphs
(1) and (3) of section 104(b) to carry out activities relating
to the planning and deployment of real-time monitoring
elements.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1701(c)(2)),
is amended adding at the end the following:
``169. Real-time system management information program.''.
SEC. 1703. CONTRACTING FOR ENGINEERING AND DESIGN SERVICES.
Section 112(b)(2) of title 23, United States Code, is amended--
(1) in subparagraph (A), by striking ``title 40'' and all
that follows through the period and inserting ``title 40.'';
(2) by striking subparagraph (B);
(3) by redesignating subparagraphs (C) through (F) as
subparagraphs (B) through (E), respectively; and
(4) by striking subparagraph (G).
SEC. 1704. OFF-DUTY TIME FOR DRIVERS OF COMMERCIAL VEHICLES.
Section 345(a)(2) of the National Highway System Designation Act of
1995 (49 U.S.C. 31136 note; 109 Stat. 613) is amended by adding at the
end the following: ``No additional off-duty time for a driver of such a
vehicle shall be required in order for the driver to operate the
vehicle.''.
SEC. 1705. DESIGNATION OF TRANSPORTATION MANAGEMENT AREAS.
(a) Funding.--Section 134(d)(3)(C)(ii) of title 23, United States
Code, is amended by striking subclause (II) and inserting the
following:
``(II) Funding.--In addition to
funds made available to the
metropolitan planning organization for
the Lake Tahoe Region under this title
and chapter 53 of title 49, 1 percent
of all funds distributed under section
202 shall be used to carry out the
transportation planning process for the
Lake Tahoe region under this
subparagraph.''.
(b) Special Designation.--Section 134(i)(1) of title 23, United
States Code, is amended by adding at the end the following:
``(C) Special designation.--
``(i) In general.--The urbanized areas of
Oklahoma City, Oklahoma, and Norman, Oklahoma,
shall be designated as a single transportation
management area.
``(ii) Allocation.--The allocation of funds
to the Oklahoma City-Norman Transportation
Management Area designated under clause (i)
shall be based on the aggregate population of
the 2 urbanized areas referred to in that
clause, as determined by the Bureau of the
Census.''.
Subtitle H--Federal-Aid Stewardship
SEC. 1801. FUTURE INTERSTATE SYSTEM ROUTES.
Section 103(c)(4)(B) of title 23, United States Code, is amended--
(1) in clause (ii), by striking ``12'' and inserting
``25''; and
(2) in clause (iii)--
(A) in subclause (I), by striking ``in the
agreement between the Secretary and the State or
States''; and
(B) by adding at the end the following:
``(III) Existing agreements.--An
agreement described in clause (ii) that
is entered into before the date of
enactment of this subparagraph shall be
deemed to include the 25-year time
limitation described in that clause,
regardless of any earlier construction
completion date in the agreement.''.
SEC. 1802. STEWARDSHIP AND OVERSIGHT.
(a) In General.--Section 106 of title 23, United States Code, is
amended--
(1) by striking subsection (e) and inserting the following:
``(e) Value Engineering Analysis.--
``(1) Definition of value engineering analysis.--
``(A) In general.--In this subsection, the term
`value engineering analysis' means a systematic process
of review and analysis of a project, during the concept
and design phases, by a multidisciplined team of
persons not involved in the project, that is conducted
to provide recommendations such as those described in
subparagraph (B) for--
``(i) providing the needed functions
safely, reliably, and at the lowest overall
cost; and
``(ii) improving the value and quality of
the project.
``(B) Inclusions.--The recommendations referred to
in subparagraph (A) include, with respect to a
project--
``(i) combining or eliminating otherwise
inefficient use of costly parts of the original
proposed design for the project; and
``(ii) completely redesigning the project
using different technologies, materials, or
methods so as to accomplish the original
purpose of the project.
``(2) Analysis.--The State shall provide a value
engineering analysis or other cost-reduction analysis for--
``(A) each project on the Federal-Aid System with
an estimated total cost of $25,000,000 or more;
``(B) a bridge project with an estimated total cost
of $20,000,000 or more; and
``(C) any other project the Secretary determines to
be appropriate.
``(3) Major projects.--The Secretary may require more than
1 analysis described in paragraph (2) for a major project
described in subsection (h).
``(4) Requirements.--Analyses described in paragraph (1)
for a bridge project shall--
``(A) include bridge substructure requirements
based on construction material; and
``(B) be evaluated--
``(i) on engineering and economic bases,
taking into consideration acceptable designs
for bridges; and
``(ii) using an analysis of life-cycle
costs and duration of project construction.'';
and
(2) by striking subsections (g) and (h) and inserting the
following:
``(g) Oversight Program.--
``(1) Program.--
``(A) In general.--The Secretary shall establish an
oversight program to monitor the effective and
efficient use of funds made available under this title.
``(B) Minimum requirements.--At a minimum, the
program shall monitor and respond to all areas relating
to financial integrity and project delivery.
``(2) Financial integrity.--
``(A) Financial management systems.--
``(i) In general.--The Secretary shall
perform annual reviews of the financial
management systems of State transportation
departments that affect projects approved under
subsection (a).
``(ii) Review areas.--In carrying out
clause (i), the Secretary shall use risk
assessment procedures to identify areas to be
reviewed.
``(B) Project costs.--The Secretary shall--
``(i) develop minimum standards for
estimating project costs; and
``(ii) periodically evaluate practices of
the States for--
``(I) estimating project costs;
``(II) awarding contracts; and
``(III) reducing project costs.
``(C) Responsibility of the states.--
``(i) In general.--Each State shall be
responsible for ensuring that subrecipients of
Federal funds within the State under this
section have--
``(I) sufficient accounting
controls to properly manage the Federal
funds; and
``(II) adequate project delivery
systems for projects approved under
this section.
``(ii) Review by secretary.--The Secretary
shall periodically review monitoring by the
States of those subrecipients.
``(3) Project delivery.--The Secretary shall--
``(A) perform annual reviews of the project
delivery system of each State, including analysis of 1
or more activities that are involved in the life cycle
of a project; and
``(B) employ risk assessment procedures to identify
areas to be reviewed.
``(4) Specific oversight responsibilities.--Nothing in this
section discharges or otherwise affects any oversight
responsibility of the Secretary--
``(A) specifically provided for under this title or
other Federal law; or
``(B) for the design and construction of all
Appalachian development highways under section 14501 of
title 40 or section 170 of this title.
``(h) Major Projects.--
``(1) In general.--Notwithstanding any other provision of
this section, a recipient of Federal financial assistance for a
project under this title with an estimated total cost of
$1,000,000,000 or more, and recipients for such other projects
as may be identified by the Secretary, shall submit to the
Secretary for each project--
``(A) a project management plan; and
``(B) an annual financial plan.
``(2) Project management plan.--A project management plan
shall document--
``(A) the procedures and processes that are in
effect to provide timely information to the project
decisionmakers to effectively manage the scope, costs,
schedules, and quality of, and the Federal requirements
applicable to, the project; and
``(B) the role of the agency leadership and
management team in the delivery of the project.
``(3) Financial plan.--A financial plan shall--
``(A) be based on detailed estimates of the cost to
complete the project; and
``(B) provide for the annual submission of updates
to the Secretary that are based on reasonable
assumptions, as determined by the Secretary, of future
increases in the cost to complete the project.
``(i) Other Projects.--A recipient of Federal financial assistance
for a project under this title that receives $100,000,000 or more in
Federal assistance for the project, and that is not covered by
subsection (h), shall prepare, and make available to the Secretary at
the request of the Secretary, an annual financial plan for the
project.''.
(b) Conforming Amendments.--
(1) Section 114(a) of title 23, United States Code, is
amended--
(A) in the first sentence by striking ``highways or
portions of highways located on a Federal-aid system''
and inserting ``Federal-aid highway or a portion of a
Federal-aid highway''; and
(B) by striking the second sentence and inserting
``The Secretary shall have the right to conduct such
inspections and take such corrective action as the
Secretary determines to be appropriate.''.
(2) Section 117 of title 23, United States Code, is
amended--
(A) by striking subsection (d); and
(B) by redesignating subsections (e) through (h) as
subsections (d) through (g), respectively.
(c) Contractor Suspension and Debarment Policy; Sharing Fraud
Monetary Recoveries.--
(1) In general.--Section 307 of title 49, United States
Code, is amended to read as follows:
``Sec. 307. Contractor suspension and debarment policy; sharing fraud
monetary recoveries
``(a) Mandatory Enforcement Policy.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary--
``(A) shall debar any contractor or subcontractor
convicted of a criminal or civil offense involving
fraud relating to a project receiving Federal highway
or transit funds for such period as the Secretary
determines to be appropriate; and
``(B) subject to approval by the Attorney General--
``(i) except as provided in paragraph (2),
shall suspend any contractor or subcontractor
upon indictment for criminal or civil offenses
involving fraud; and
``(ii) may exclude nonaffiliated
subsidiaries of a debarred business entity.
``(2) National security exception.--If the Secretary finds
that mandatory debarment or suspension of a contractor or
subcontractor under paragraph (1) would be contrary to the
national security of the United States, the Secretary--
``(A) may waive the debarment or suspension; and
``(B) in the instance of each waiver, shall provide
notification to Congress of the waiver with appropriate
details.
``(b) Sharing of Monetary Recoveries.--
``(1) In general.--Notwithstanding any other provision of
law--
``(A) monetary judgments accruing to the Federal
Government from judgments in Federal criminal
prosecutions and civil judgments pertaining to fraud in
highway and transit programs shall be shared with the
State or local transit agency involved; and
``(B) the State or local transit agency shall use
the funds for transportation infrastructure and
oversight activities relating to programs authorized
under title 23 and this title.
``(2) Amount.--The amount of recovered funds to be shared
with an affected State or local transit agency shall be--
``(A) determined by the Attorney General, in
consultation with the Secretary; and
``(B) considered to be Federal funds to be used in
compliance with other relevant Federal transportation
laws (including regulations).
``(3) Fraudulent activity.--Paragraph (1) shall not apply
in any case in which a State or local transit agency is found
by the Attorney General, in consultation with the Secretary, to
have been involved or negligent with respect to the fraudulent
activities.''.
(2) Conforming amendment.--The analysis for chapter 3 of
title 49, United States Code, is amended by striking the item
relating to section 307 and inserting the following:
``307. Contractor suspension and debarment policy; sharing fraud
monetary recoveries.''.
SEC. 1803. DESIGN-BUILD CONTRACTING.
Section 112(b)(3) of title 23, United States Code, is amended by
striking subparagraph (C) and inserting the following:
``(C) Qualified projects.--A qualified project
referred to in subparagraph (A) is a project under this
chapter (including intermodal projects) for which the
Secretary has approved the use of design-build
contracting under criteria specified in regulations
promulgated by the Secretary.''.
SEC. 1804. PROGRAM EFFICIENCIES--FINANCE.
(a) Advance Construction.--Section 115 of title 23, United States
Code, is amended--
(1) by redesignating subsection (c) as subsection (d);
(2) by redesignating subsections (a)(2), (a)(2)(A), and
(a)(2)(B) as subsections (c), (c)(1), and (c)(2), respectively,
and indenting appropriately;
(3) by striking ``(a) Congestion'' and all that follows
through subsection (a)(1)(B);
(4) by striking subsection (b); and
(5) by inserting after the section heading the following:
``(a) In General.--The Secretary may authorize a State to proceed
with a project authorized under this title--
``(1) without the use of Federal funds; and
``(2) in accordance with all procedures and requirements
applicable to the project other than those procedures and
requirements that limit the State to implementation of a
project--
``(A) with the aid of Federal funds previously
apportioned or allocated to the State; or
``(B) with obligation authority previously
allocated to the State.
``(b) Obligation of Federal Share.--The Secretary, on the request
of a State and execution of a project agreement, may obligate all or a
portion of the Federal share of the project authorized under this
section from any category of funds for which the project is
eligible.''.
(b) Obligation and Release of Funds.--Section 118 of title 23,
United States Code, is amended by striking subsection (d) and inserting
the following:
``(d) Obligation and Release of Funds.--
``(1) In general.--Funds apportioned or allocated to a
State for a particular purpose for any fiscal year shall be
considered to be obligated if a sum equal to the total of the
funds apportioned or allocated to the State for that purpose
for that fiscal year and previous fiscal years is obligated.
``(2) Released funds.--Any funds released by the final
payment for a project, or by modifying the project agreement
for a project, shall be--
``(A) credited to the same class of funds
previously apportioned or allocated to the State; and
``(B) immediately available for obligation.
``(3) Net obligations.--Notwithstanding any other provision
of law (including a regulation), obligations recorded against
funds made available under this section shall be recorded and
reported as net obligations.''.
SEC. 1805. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS.
Section 118(c)(1) of title 23, United States Code, is amended--
(1) by striking ``$50,000,000'' and all that
follows through ``2003'' and inserting ``$100,000,000
for each of fiscal years 2004 through 2009''; and
(2) by striking ``Transportation Equity Act for the
21st Century'' and inserting ``Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of
2004''.
SEC. 1806. FEDERAL LANDS HIGHWAYS PROGRAM.
(a) Federal Share Payable.--
(1) In general.--Section 120(k) of title 23, United States
Code, is amended--
(A) by striking ``Federal-aid highway''; and
(B) by striking ``section 104'' and inserting
``this title or chapter 53 of title 49''.
(2) Technical references.--Section 120(l) of title 23,
United States Code, is amended by striking ``section 104'' and
inserting ``this title or chapter 53 of title 49''.
(b) Payments to Federal Agencies for Federal-Aid Projects.--Section
132 of title 23, United States Code, is amended--
(1) by striking the first 2 sentences and inserting the
following:
``(a) In General.--In a case in which a proposed Federal-aid
project is to be undertaken by a Federal agency in accordance with an
agreement between a State and the Federal agency, the State may--
``(1) direct the Secretary to transfer the funds for the
Federal share of the project directly to the Federal agency; or
``(2) make such deposit with, or payment to, the Federal
agency as is required to meet the obligation of the State under
the agreement for the work undertaken or to be undertaken by
the Federal agency.
``(b) Reimbursement.--On execution of a project agreement with a
State described in subsection (a), the Secretary may reimburse the
State, using any available funds, for the estimated Federal share under
this title of the obligation of the State deposited or paid under
subsection (a)(2).''; and
(2) in the last sentence, by striking ``Any sums'' and
inserting the following:
``(c) Recovery and Crediting of Funds.--Any sums''.
(c) Allocations.--Section 202 of title 23, United States Code, is
amended--
(1) in subsection (a), by striking ``(a) On October 1'' and
all that follows through ``Such allocation'' and inserting the
following:
``(a) Allocation Based on Need.--
``(1) In general.--On October 1 of each fiscal year, the
Secretary shall allocate sums authorized to be appropriated for
the fiscal year for forest development roads and trails
according to the relative needs of the various national forests
and grasslands.
``(2) Planning.--The allocation under paragraph (1)'';
(2) by striking subsection (b) and inserting the following:
``(b) Allocation for Public Lands Highways.--
``(1) Public lands highways.--
``(A) In general.--On October 1 of each fiscal
year, the Secretary shall allocate 33\1/3\ percent of
the sums authorized to be appropriated for that fiscal
year for public lands highways among those States
having unappropriated or unreserved public lands, or
nontaxable Indian lands or other Federal reservations,
on the basis of need in the States, respectively, as
determined by the Secretary, on application of the
State transportation departments of the respective
States.
``(B) Preference.--In making the allocation under
subparagraph (A), the Secretary shall give preference
to those projects that are significantly impacted by
Federal land and resource management activities that
are proposed by a State that contains at least 3
percent of the total public land in the United States.
``(2) Forest highways.--
``(A) In general.--On October 1 of each fiscal
year, the Secretary shall allocate 66\2/3\ percent of
the funds authorized to be appropriated for public
lands highways for forest highways in accordance with
section 134 of the Federal-Aid Highway Act of 1987 (23
U.S.C. 202 note; 101 Stat. 173).
``(B) Public access to and within national forest
system.--In making the allocation under subparagraph
(A), the Secretary shall give equal consideration to
projects that provide access to and within the National
Forest System, as identified by the Secretary of
Agriculture through--
``(i) renewable resource and land use
planning; and
``(ii) assessments of the impact of that
planning on transportation facilities.'';
(3) in subsection (c)--
(A) by striking ``(c) On'' and inserting the
following:
``(c) Park Roads and Parkways.--
``(1) In general.--On''; and
(B) by adding at the end the following:
``(2) Priority.--
``(A) Definition of qualifying national park.--In
this paragraph, the term ``qualifying national park''
means a National Park that is used more than 1,000,000
recreational visitor days per year, based on an average
of the 3 most recent years of available data from the
National Park Service.
``(B) Priority.--Notwithstanding any other
provision of law, with respect to funds authorized for
park roads and parkways, the Secretary shall give
priority in the allocation of funds to projects for
highways that--
``(i) are located in, or provide access to,
a qualifying National Park; and
``(ii) were initially constructed before
1940.
``(C) Priority conflicts.--If there is a conflict
between projects described in subparagraph (B), the
Secretary shall give highest priority to projects
that--
``(i) are in, or that provide access to,
parks that are adjacent to a National Park of a
foreign country; or
``(ii) are located in more than 1 State;'';
(4) in subsection (d)--
(A) in paragraph (1)--
(i) in the paragraph heading, by striking
``1999'' and inserting ``2005''; and
(ii) by striking ``1999'' and inserting
``2005'';
(B) in paragraph (2)--
(i) in the paragraph heading, by striking
``2000'' and inserting ``2005'';
(ii) in subparagraphs (A), (B), and (D), by
striking ``2000'' each place it appears and
inserting ``2005'';
(iii) in subparagraph (B), by striking
``1999'' each place it appears and inserting
``2004''; and
(iv) by adding at the end the following:
``(E) Transferred funds.--
``(i) In general.--Not later than 30 days
after the date on which funds are made
available to the Secretary of the Interior
under this paragraph, the funds shall be
distributed to, and available for immediate use
by, the eligible Indian tribes, in accordance
with the formula applicable for each fiscal
year.
``(ii) Formula.--If the Secretary of the
Interior has not promulgated final regulations
for the distribution of funds under clause (i)
for a fiscal year by the date on which the
funds for the fiscal year are required to be
distributed under that clause, the Secretary of
the Interior shall distribute the funds under
clause (i) in accordance with the applicable
funding formula for the preceding year.
``(iii) Use of funds.--Notwithstanding any
other provision of this section, funds
available to Indian tribes for Indian
reservation roads shall be expended on projects
identified in a transportation improvement
program approved by the Secretary.'';
(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 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.''.
(e) Safety.--
(1) Allocations.--Section 202 of title 23, United States
Code (as amended by subsection (c)(5)), is amended by adding at
the end the following:
``(g) Safety.--Subject to paragraph (2), on October 1 of each
fiscal year, the Secretary shall allocate the sums authorized to be
appropriated for the fiscal year for safety as follows:
``(1) 12 percent to the Bureau of Reclamation.
``(2) 18 percent to the Bureau of Indian Affairs.
``(3) 17 percent to the Bureau of Land Management.
``(4) 17 percent to the Forest Service.
``(5) 7 percent to the United States Fish and Wildlife
Service.
``(6) 17 percent to the National Park Service.
``(7) 12 percent to the Corps of Engineers.''.
(2) Availability of funds.--Section 203 of title 23, United
States Code, is amended by inserting ``safety projects or
activities,'' after ``refuge roads,'' each place it appears.
(3) Use of funding.--Section 204 of title 23, United States
Code, is amended by adding at the end the following:
``(l) Safety Activities.--
``(1) In general.--Notwithstanding any other provision of
this title, funds made available for safety under this title
shall be used by the Secretary and the head of the appropriate
Federal land management agency only to pay the costs of
carrying out--
``(A) transportation safety improvement activities;
``(B) activities to eliminate high-accident
locations;
``(C) projects to implement protective measures at,
or eliminate, at-grade railway-highway crossings;
``(D) collection of safety information;
``(E) transportation planning projects or
activities;
``(F) bridge inspection;
``(G) development and operation of safety
management systems;
``(H) highway safety education programs; and
``(I) other eligible safety projects and activities
authorized under chapter 4.
``(2) Contracts.--In carrying out paragraph (1), the
Secretary and the Secretary of the appropriate Federal land
management agency may enter into contracts or agreements with--
``(A) a State;
``(B) a political subdivision of a State; or
``(C) an Indian tribe.
``(3) Exception.--The cost sharing requirements under the
Federal Water Project Recreation Act (16 U.S.C. 460l-12 et
seq.) shall not apply to funds made available to the Bureau of
Reclamation under this subsection.''.
(f) Recreation Roads.--
(1) Authorizations.--Section 201 of title 23, United States
Code, is amended in the first sentence by inserting
``recreation roads,'' after ``public lands highways,''.
(2) Allocations.--Section 202 of title 23, United States
Code (as amended by subsection (e)(1)), is amended by adding at
the end the following:
``(h) Recreation Roads.--
``(1) In general.--Subject to paragraphs (2) and (3), on
October 1 of each fiscal year, the Secretary, after completing
the transfer under subsection 204(i), shall allocate the sums
authorized to be appropriated for the fiscal year for
recreation roads as follows:
``(A) 8 percent to the Bureau of Reclamation.
``(B) 9 percent to the Corps of Engineers.
``(C) 13 percent to the Bureau of Land Management.
``(D) 70 percent to the Forest Service.
``(2) Allocation within agencies.--Recreation road funds
allocated to a Federal agency under paragraph (1) shall be
allocated for projects and activities of the Federal agency
according to the relative needs of each area served by
recreation roads under the jurisdiction of the Federal agency,
as indicated in the approved transportation improvement program
for each Federal agency.''.
(3) Availability of funds.--Section 203 of title 23, United
States Code, is amended--
(A) in the first sentence, by inserting
``recreation roads,'' after ``Indian reservation
roads,''; and
(B) in the fourth sentence, by inserting ``,
recreation roads,'' after ``Indian roads''.
(4) Use of funding.--Section 204 of title 23, United States
Code (as amended by subsection (e)(3)), is amended by adding at
the end the following:
``(m) Recreation Roads.--
``(1) In general.--Notwithstanding any other provision of
this title, funds made available for recreation roads under
this title shall be used by the Secretary and the Secretary of
the appropriate Federal land management agency only to pay the
cost of--
``(A) maintenance or improvements of existing
recreation roads;
``(B) maintenance and improvements of eligible
projects described in paragraph (1), (2), (3), (5), or
(6) of subsection (h) that are located in or adjacent
to Federal land under the jurisdiction of--
``(i) the Department of Agriculture; or
``(ii) the Department of the Interior;
``(C) transportation planning and administrative
activities associated with those maintenance and
improvements; and
``(D) the non-Federal share of the cost of any
project funded under this title or chapter 53 of title
49 that provides access to or within Federal land
described in subparagraph (B).
``(2) Contracts.--In carrying out paragraph (1), the
Secretary and the Secretary of the appropriate Federal land
management agency may enter into contracts or agreements with--
``(A) a State;
``(B) a political subdivision of a State; or
``(C) an Indian tribe.
``(3) New roads.--No funds made available under this
section shall be used to pay the cost of the design or
construction of new recreation roads.
``(4) Compliance with other environmental laws.--A
maintenance or improvement project that is funded under this
subsection, and that is consistent with or has been identified
in a land use plan for an area under the jurisdiction of a
Federal agency, shall not require any additional environmental
reviews or assessments under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) if--
``(A) the Federal agency that promulgated the land
use plan analyzed the specific proposal for the
maintenance or improvement project under that Act; and
``(B) as of the date on which the funds are to be
expended, there are--
``(i) no significant changes to the
proposal bearing on environmental concerns; and
``(ii) no significant new information.
``(5) Exception.--The cost sharing requirements under the
Federal Water Project Recreation Act (16 U.S.C. 460l-12 et
seq.) shall not apply to funds made available to the Bureau of
Reclamation under this subsection.''.
(g) Conforming Amendments.--
(1) Sections 120(e) and 125(e) of title 23, United States
Code, are amended by striking ``public lands highways,'' each
place it appears and inserting ``public lands highways,
recreation roads,''.
(2) Sections 120(e), 125(e), 201, 202(a), and 203 of title
23, United States Code, are amended by striking ``forest
development roads'' each place it appears and inserting
``National Forest System roads''.
(3) Section 202(e) of title 23, United States Code, is
amended by striking ``Refuge System,'' and inserting ``Refuge
System and the various national fish hatcheries,''.
(4) Section 204 of title 23, United States Code, is
amended--
(A) in subsection (a)(1), by striking ``public
lands highways,'' and inserting ``public lands
highways, recreation roads, forest highways,''; and
(B) in subsection (i), by striking ``public lands
highways'' each place it appears and inserting ``public
lands highways, recreation roads, and forest
highways''.
(5) Section 205 of title 23, United States Code, is
amended--
(A) by striking the section heading and inserting
the following:
``Sec. 205. National Forest System roads and trails'';
and
(B) in subsections (a) and (d), by striking
``forest development roads'' each place it appears and
inserting ``National Forest System roads''.
(6) The analysis for chapter 2 of title 23, United States
Code, is amended by striking the item relating to section 205
and inserting the following:
``205. National Forest System roads and trails.''.
(7) Section 217(c) of title 23, United States Code, is
amended by inserting ``refuge roads,'' after ``Indian
reservation roads,''.
SEC. 1807. HIGHWAY BRIDGE PROGRAM.
(a) In General.--Section 144 of title 23, United States Code, is
amended--
(1) by striking the section heading and all that follows
through subsection (a) and inserting the following:
``Sec. 144. Highway bridge program
``(a) Congressional Statement.--Congress finds and declares that it
is in the vital interest of the United States that a highway bridge
program be established to enable States to improve the condition of
their bridges through replacement, rehabilitation, and systematic
preventative maintenance on highway bridges over waterways, other
topographical barriers, other highways, or railroads at any time at
which the States and the Secretary determine that a bridge is unsafe
because of structural deficiencies, physical deterioration, or
functional obsolescence.'';
(2) by striking subsection (d) and inserting the following:
``(d) Participation in Program.--
``(1) In general.--On application by a State to the
Secretary for assistance in replacing or rehabilitating a
highway bridge that has been determined to be eligible for
replacement or rehabilitation under subsection (b) or (c), the
Secretary may approve Federal participation in--
``(A) replacing the bridge with a comparable
bridge; or
``(B) rehabilitating the bridge.
``(2) Specific kinds of rehabilitation.--On application by
a State to the Secretary for assistance in painting, seismic
retrofit, or preventative maintenance of, or installation of
scour countermeasures or applying calcium magnesium acetate,
sodium acetate/formate, or other environmentally acceptable,
minimally corrosive anti-icing and de-icing compositions to,
the structure of a highway bridge, the Secretary may approve
Federal participation in the painting, seismic retrofit, or
preventative maintenance of, or installation of scour
countermeasures or application of acetate or sodium acetate/
formate or such anti-icing or de-icing composition to, the
structure.
``(3) Eligibility.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall determine the
eligibility of highway bridges for replacement or
rehabilitation for each State based on the number of
unsafe highway bridges in the State.
``(B) Preventative maintenance.--A State may carry
out a project for preventative maintenance on a bridge,
seismic retrofit of a bridge, or installation of scour
countermeasures to a bridge under this section without
regard to whether the bridge is eligible for
replacement or rehabilitation under this section.'';
(3) in subsection (e)--
(A) in the third sentence, by striking ``square
footage'' and inserting ``area'';
(B) in the fourth sentence--
(i) by striking ``by the total cost of any
highway bridges constructed under subsection
(m) in such State, relating to replacement of
destroyed bridges and ferryboat services,
and,''; and
(ii) by striking ``1997'' and inserting
``2003''; and
(C) in the seventh sentence, by striking ``the
Federal-aid primary system'' and inserting ``Federal-
aid highways'';
(4) by striking subsections (f) and (g) and inserting the
following:
``(f) Set Asides.--
``(1) Discretionary bridge program.--
``(A) In general.--Of the amounts authorized to be
appropriated to carry out the bridge program under this
section for each of fiscal years 2004 through 2009, all
but $150,000,000 shall be apportioned as provided in
subsection (e).
``(B) Availability.--The $150,000,000 referred to
in subparagraph (A) shall be available at the
discretion of the Secretary, except that not to exceed
$25,000,000 of that amount shall be available only for
projects for the seismic retrofit of bridges.
``(C) Set asides.--For fiscal year 2004, the
Secretary shall provide--
``(i) $50,000,000 to the State of Nevada
for construction of a replacement of the
federally-owned bridge over the Hoover Dam in
the Lake Mead National Recreation Area; and
``(ii) $50,000,000 to the State of Missouri
for construction of a structure over the
Mississippi River to connect the city of St.
Louis, Missouri, to the State of Illinois.
``(2) Off-system bridges.--
``(A) In general.--Not less than 15 percent of the
amount apportioned to each State in each of fiscal
years 2004 through 2009 shall be expended for projects
to replace, rehabilitate, perform systematic
preventative maintenance or seismic retrofit, or apply
calcium magnesium acetate, sodium acetate/formate, or
other environmentally acceptable, minimally corrosive
anti-icing and de-icing compositions or install scour
countermeasures to highway bridges located on public
roads, other than those on a Federal-aid highway, or to
complete the Warwick Intermodal Station (including the
construction of a people mover between the Station and
the T.F. Green Airport).
``(B) Reduction of expenditures.--The Secretary,
after consultation with State and local officials, may,
with respect to the State, reduce the requirement for
expenditure for bridges not on a Federal-aid highway if
the Secretary determines that the State has inadequate
needs to justify the expenditure.'';
(5) in subsection (i)--
(A) in paragraph (3), by striking ``and'';
(B) in paragraph (4), by striking the period at the
end and inserting ``; and'';
(C) by striking ``Such reports'' and all that
follows through ``to Congress.''; and
(D) by adding at the end the following:
``(5) biennially submit such reports as are required under
this subsection to the appropriate committees of Congress
simultaneously with the report required by section 502(g).'';
(6) in the first sentence of subsection (n), by striking
``all standards'' and inserting ``all general engineering
standards'';
(7) in subsection (o)--
(A) in paragraph (3)--
(i) by striking ``title (including this
section)'' and inserting ``section''; and
(ii) by inserting ``200 percent of'' after
``shall not exceed''; and
(B) in paragraph (4)(B)--
(i) in the second sentence, by inserting
``200 percent of'' after ``not to exceed''; and
(ii) in the last sentence, by striking
``title'' and inserting ``section'';
(8) by redesignating subsections (h) through (q) as
subsections (g) through (p), respectively; and
(9) by adding at the end the following:
``(q) Continuation of Annual Materials Report on New Bridge
Construction and Bridge Rehabilitation.--Not later than 1 year after
the date of enactment of this subsection, and annually thereafter, the
Secretary shall publish in the Federal Register a report describing
construction materials used in new Federal-aid bridge construction and
bridge rehabilitation projects.
``(r) Federal Share.--The Federal share of the cost of a project
payable from funds made available to carry out this section shall be
the share applicable under section 120(b), as adjusted under subsection
(d) of that section.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code, is amended by striking the item
relating to section 144 and inserting the following:
``144. Highway bridge program.''.
SEC. 1808. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1702(a)), is amended by adding at
the end the following:
``Sec. 170. Appalachian development highway system
``(a) Apportionment.--
``(1) In general.--The Secretary shall apportion funds made
available under section 1101(7) of the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004 for
fiscal years 2004 through 2009 among States based on the latest
available estimate of the cost to construct highways and access
roads for the Appalachian development highway system program
prepared by the Appalachian Regional Commission under section
14501 of title 40.
``(2) Availability.--Funds described in paragraph (1) shall
be available to construct highways and access roads under
chapter 145 of title 40.
``(b) Applicability of Title.--Funds made available under section
1101(7) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 for the Appalachian development
highway system shall be available for obligation in the same manner as
if the funds were apportioned under this chapter, except that--
``(1) the Federal share of the cost of any project under
this section shall be determined in accordance with subtitle IV
of title 40; and
``(2) the funds shall remain available until expended.''.
(b) Conforming Amendments.--
(1) Use of toll credits.--Section 120(j)(1) of title 23,
United States Code is amended by inserting ``and the
Appalachian development highway system program under subtitle
IV of title 40'' after ``(other than the emergency relief
program authorized by section 125''.
(2) Analysis.--The analysis of chapter 1 of title 23,
United States Code (as amended by section 1702(b)), is amended
by adding at the end the following:
``170. Appalachian development highway system.''.
SEC. 1809. MULTISTATE CORRIDOR PROGRAM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by 1808(a)), is amended by adding at the end
the following:
``Sec. 171. Multistate corridor program
``(a) Establishment and Purpose.--The Secretary shall carry out a
program to--
``(1) support and encourage multistate transportation
planning and development; and
``(2) facilitate transportation decisionmaking and
coordinate project delivery involving multistate corridors.
``(b) Eligible Recipients.--A State transportation department and a
metropolitan planning organization may receive and administer funds
provided under this section.
``(c) Eligible Activities.--The Secretary shall make allocations
under this program for multistate highway and multimodal planning
studies and construction.
``(d) Other Provisions Regarding Eligibility.--
``(1) Studies.--All studies funded under this program shall
be consistent with the continuing, cooperative, and
comprehensive planning processes required by sections 134 and
135.
``(2) Construction.--All construction funded under this
program shall be consistent with section 133(b)(1).
``(e) Selection Criteria.--The Secretary shall select studies and
projects to be carried out under the program based on--
``(1) the existence and significance of signed and binding
multijurisdictional agreements;
``(2) endorsement of the study or project by applicable
elected State and local representatives;
``(3) prospects for early completion of the study or
project; or
``(4) whether the projects to be studied or constructed are
located on corridors identified by section 1105(c) of the
Intermodal Surface Transportation Efficiency Act of 1991
(Public Law 102-240; 105 Stat. 2032).
``(f) Program Priorities.--In administering the program, the
Secretary shall--
``(1) encourage and enable States and other jurisdictions
to work together to develop plans for multimodal and
multijurisdictional transportation decisionmaking; and
``(2) give priority to studies or projects that emphasize
multimodal planning, including planning for operational
improvements that--
``(A) increase--
``(i) mobility;
``(ii) freight productivity;
``(iii) access to marine or inland ports;
``(iv) safety and security; and
``(v) reliability; and
``(B) enhance the environment.
``(g) Federal Share.--Except as provided in section 120, the
Federal share of the cost of a study or project carried out under the
program, using funds from all Federal sources, shall be 80 percent.
``(h) Applicability.--Funds authorized to be appropriated under
section 1101(10) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 to carry out this section shall be
available for obligation in the same manner as if the funds were
apportioned under this chapter.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1809(b)) is
amended by adding at the end the following:
``171. Multistate corridor program.''.
SEC. 1810. BORDER PLANNING, OPERATIONS, TECHNOLOGY, AND CAPACITY
PROGRAM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1809(a)), is amended by adding at
the end the following:
``Sec. 172. Border planning, operations, technology, and capacity
program
``(a) Definitions.--In this section:
``(1) Border state.--The term `border State' means any of
the States of Alaska, Arizona, California, Idaho, Maine,
Michigan, Minnesota, Montana, New Hampshire, New Mexico, New
York, North Dakota, Texas, Vermont, and Washington.
``(2) Program.--The term `program' means the border
planning, operations, technology, and capacity program
established under subsection (b).
``(b) Establishment and Purpose.--The Secretary shall establish and
carry out a border planning, operations, technology, and capacity
improvement program to support coordination and improvement in bi-
national transportation planning, operations, efficiency, information
exchange, safety, and security at the international borders of the
United States with Canada and Mexico.
``(c) Eligible Activities.--
``(1) In general.--The Secretary shall make allocations
under the program for projects to carry out eligible activities
described in paragraph (2) at or near international land
borders in border States.
``(2) Eligible activities.--A border State may obligate
funds apportioned to the border State under this section for--
``(A) highway and multimodal planning or
environmental studies;
``(B) cross-border port of entry and safety
inspection improvements, including operational
enhancements and technology applications;
``(C) technology and information exchange
activities; and
``(D) right-of-way acquisition, design, and
construction, as needed--
``(i) to implement the enhancements or
applications described in subparagraphs (B) and
(C);
``(ii) to decrease air pollution emissions
from vehicles or inspection facilities at
border crossings; or
``(iii) to increase highway capacity at or
near international borders.
``(d) Other Provisions Regarding Eligibility.--
``(1) In general.--Each project funded under the program
shall be carried out in accordance with the continuing,
cooperative, and comprehensive planning processes required by
sections 134 and 135.
``(2) Regionally significant projects.--To be funded under
the program, a regionally significant project shall be included
on the applicable transportation plan and program required by
sections 134 and 135.
``(e) Program Priorities.--Border States shall give priority to
projects that emphasize--
``(1) multimodal planning;
``(2) improvements in infrastructure; and
``(3) operational improvements that--
``(A) increase safety, security, freight capacity,
or highway access to rail, marine, and air services;
and
``(B) enhance the environment.
``(f) Mandatory Program.--
``(1) In general.--For each fiscal year, the Secretary
shall allocate among border States, in accordance with the
formula described in paragraph (2), funds to be used in
accordance with subsection (d).
``(2) Formula.--Subject to paragraph (3), the amount
allocated to a border State under this paragraph shall be
determined by the Secretary, as follows:
``(A) 25 percent in the ratio that--
``(i) the average annual weight of all
cargo entering the border State by commercial
vehicle across the international border with
Canada or Mexico, as the case may be; bears to
``(ii) the average annual weight of all
cargo entering all border States by commercial
vehicle across the international borders with
Canada and Mexico.
``(B) 25 percent in the ratio that--
``(i) the average trade value of all cargo
imported into the border State and all cargo
exported from the border State by commercial
vehicle across the international border with
Canada or Mexico, as the case may be; bears to
``(ii) the average trade value of all cargo
imported into all border States and all cargo
exported from all border States by commercial
vehicle across the international borders with
Canada and Mexico.
``(C) 25 percent in the ratio that--
``(i) the number of commercial vehicles
annually entering the border State across the
international border with Canada or Mexico, as
the case may be; bears to
``(ii) the number of all commercial
vehicles annually entering all border States
across the international borders with Canada
and Mexico.
``(D) 25 percent in the ratio that--
``(i) the number of passenger vehicles
annually entering the border State across the
international border with Canada or Mexico, as
the case may be; bears to
``(ii) the number of all passenger vehicles
annually entering all border States across the
international borders with Canada and Mexico.
``(3) Data source.--
``(A) In general.--The data used by the Secretary
in making allocations under this subsection shall be
based on the Bureau of Transportation Statistics
Transborder Surface Freight Dataset (or other similar
database).
``(B) Basis of calculation.--All formula
calculations shall be made using the average values for
the most recent 5-year period for which data are
available.
``(4) Minimum allocation.--Notwithstanding paragraph (2),
for each fiscal year, each border State shall receive at least
\1/2\ of 1 percent of the funds made available for allocation
under this paragraph for the fiscal year.
``(g) Federal Share.--Except as provided in section 120, the
Federal share of the cost of a project carried out under the program
shall be 80 percent.
``(h) Obligation.--Funds made available under section 1101(11) of
the Safe, Accountable, Flexible, and Efficient Transportation Equity
Act of 2004 to carry out the program shall be available for obligation
in the same manner as if the funds were apportioned under this chapter.
``(i) Information Exchange.--No individual project the scope of
work of which is limited to information exchange shall receive an
allocation under the program in an amount that exceeds $500,000 for any
fiscal year.
``(j) Projects in Canada or Mexico.--A project in Canada or Mexico,
proposed by a border State to directly and predominantly facilitate
cross-border vehicle and commercial cargo movements at an international
gateway or port of entry into the border region of the State, may be
constructed using funds made available under the program if, before
obligation of those funds, Canada or Mexico, or the political
subdivision of Canada or Mexico that is responsible for the operation
of the facility to be constructed, provides assurances satisfactory to
the Secretary that any facility constructed under this subsection will
be--
``(1) constructed in accordance with standards equivalent
to applicable standards in the United States; and
``(2) properly maintained and used over the useful life of
the facility for the purpose for which the Secretary allocated
funds to the project.
``(k) Transfer of Funds to the General Services Administration.--
``(1) State funds.--At the request of a border State, funds
made available under the program may be transferred to the
General Services Administration for the purpose of funding 1 or
more specific projects if--
``(A) the Secretary determines, after consultation
with the State transportation department of the border
State, that the General Services Administration should
carry out the project; and
``(B) the General Services Administration agrees to
accept the transfer of, and to administer, those funds.
``(2) Non-federal share.--
``(A) In general.--A border State that makes a
request under paragraph (1) shall provide directly to
the General Services Administration, for each project
covered by the request, the non-Federal share of the
cost of each project described in subsection (f).
``(B) No augmentation of appropriations.--Funds
provided by a border State under subparagraph (A)--
``(i) shall not be considered to be an
augmentation of the appropriations made
available to the General Services
Administration; and
``(ii) shall be--
``(I) administered in accordance
with the procedures of the General
Services Administration; but
``(II) available for obligation in
the same manner as if the funds were
apportioned under this chapter.
``(C) Obligation authority.--Obligation authority
shall be transferred to the General Services
Administration in the same manner and amount as the
funds provided for projects under subparagraph (A).
``(3) Direct transfer of authorized funds.--
``(A) In general.--In addition to allocations to
States and metropolitan planning organizations under
subsection (c), the Secretary may transfer funds made
available to carry out this section to the General
Services Administration for construction of
transportation infrastructure projects at or near the
border in border States, if--
``(i) the Secretary determines that the
transfer is necessary to effectively carry out
the purposes of this program; and
``(ii) the General Services Administration
agrees to accept the transfer of, and to
administer, those funds.
``(B) No augmentation of appropriations.--Funds
transferred by the Secretary under subparagraph (A)--
``(i) shall not be considered to be an
augmentation of the appropriations made
available to the General Services
Administration; and
``(ii) shall be--
``(I) administered in accordance
with the procedures of the General
Services Administration; but
``(II) available for obligation in
the same manner as if the funds were
apportioned under this chapter.
``(C) Obligation authority.--Obligation authority
shall be transferred to the General Services
Administration in the same manner and amount as the
funds transferred under subparagraph (A).''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1809(b)), is
amended by adding at the end the following:
``172. Border planning, operations, and technology program.''.
SEC. 1811. PUERTO RICO HIGHWAY PROGRAM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1810(a)), is amended by adding at
the end the following:
``Sec. 173. Puerto Rico highway program
``(a) In General.--The Secretary shall allocate funds authorized by
section 1101(15) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 for each of fiscal years 2004 through
2009 to the Commonwealth of Puerto Rico to carry out a highway program
in the Commonwealth.
``(b) Applicability of Title.--
``(1) In general.--Amounts made available by section
1101(15) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 shall be available for
obligation in the same manner as if such funds were apportioned
under this chapter.
``(2) Limitation on obligations.--The amounts shall be
subject to any limitation on obligations for Federal-aid
highway and highway safety construction programs.
``(c) Treatment of Funds.--Amounts made available to carry out this
section for a fiscal year shall be administered as follows:
``(1) Apportionment.--For the purpose of imposing any
penalty under this title or title 49, the amounts shall be
treated as being apportioned to Puerto Rico under sections
104(b) and 144, for each program funded under those sections in
an amount determined by multiplying--
``(A) the aggregate of the amounts for the fiscal
year; by
``(B) the ratio that--
``(i) the amount of funds apportioned to
Puerto Rico for each such program for fiscal
year 1997; bears to
``(ii) the total amount of funds
apportioned to Puerto Rico for all such
programs for fiscal year 1997.
``(2) Penalty.--The amounts treated as being apportioned to
Puerto Rico under each section referred to in paragraph (1)
shall be deemed to be required to be apportioned to Puerto Rico
under that section for purposes of the imposition of any
penalty under this title and title 49.
``(3) Effect on allocations and apportionments.--Subject to
paragraph (2), nothing in this section affects any allocation
under section 105 and any apportionment under sections 104 and
144.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1810(b)), is
amended by adding at the end the following:
``173. Puerto Rico highway program.''.
SEC. 1812. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1811(a)), is amended by adding at
the end the following:
``Sec. 174. National historic covered bridge preservation
``(a) Definition of Historic Covered Bridge.--In this section, the
term `historic covered bridge' means a covered bridge that is listed or
eligible for listing on the National Register of Historic Places.
``(b) Historic Covered Bridge Preservation.--Subject to the
availability of appropriations, the Secretary shall--
``(1) collect and disseminate information on historic
covered bridges;
``(2) conduct educational programs relating to the history
and construction techniques of historic covered bridges;
``(3) conduct research on the history of historic covered
bridges; and
``(4) conduct research on, and study techniques for,
protecting historic covered bridges from rot, fire, natural
disasters, or weight-related damage.
``(c) Grants.--
``(1) In general.--Subject to the availability of
appropriations, the Secretary shall make a grant to a State
that submits an application to the Secretary that demonstrates
a need for assistance in carrying out 1 or more historic
covered bridge projects described in paragraph (2).
``(2) Eligible projects.--A grant under paragraph (1) may
be made for a project--
``(A) to rehabilitate or repair a historic covered
bridge; or
``(B) to preserve a historic covered bridge,
including through--
``(i) installation of a fire protection
system, including a fireproofing or fire
detection system and sprinklers;
``(ii) installation of a system to prevent
vandalism and arson; or
``(iii) relocation of a bridge to a
preservation site.
``(3) Authenticity requirements.--A grant under paragraph
(1) may be made for a project only if--
``(A) to the maximum extent practicable, the
project--
``(i) is carried out in the most
historically appropriate manner; and
``(ii) preserves the existing structure of
the historic covered bridge; and
``(B) the project provides for the replacement of
wooden components with wooden components, unless the
use of wood is impracticable for safety reasons.
``(4) Federal share.--Except as provided in section 120,
the Federal share of the cost of a project carried out with a
grant under this subsection shall be 80 percent.
``(d) Funding.--There is authorized to be appropriated to carry out
this section $14,000,000 for each of fiscal years 2004 through 2009, to
remain available until expended.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1811(b)), is
amended by adding at the end the following:
``174. National historic covered bridge preservation.''.
SEC. 1813. TRANSPORTATION AND COMMUNITY AND SYSTEM PRESERVATION
PROGRAM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1812(a)), is amended by adding at
the end the following:
``Sec. 175. Transportation and community and system preservation
program
``(a) Establishment.--The Secretary shall establish a comprehensive
program to facilitate the planning, development, and implementation of
strategies by States, metropolitan planning organizations, federally-
recognized Indian tribes, and local governments to integrate
transportation, community, and system preservation plans and practices
that address the goals described in subsection (b).
``(b) Goals.--The goals of the program are to--
``(1) improve the efficiency of the transportation system
in the United States;
``(2) reduce the impacts of transportation on the
environment;
``(3) reduce the need for costly future investments in
public infrastructure;
``(4) provide efficient access to jobs, services, and
centers of trade; and
``(5) examine development patterns, and to identify
strategies, to encourage private sector development patterns
that achieve the goals identified in paragraphs (1) through
(4).
``(c) Allocation of Funds for Implementation.--
``(1) In general.--The Secretary shall allocate funds made
available to carry out this subsection to States, metropolitan
planning organizations, and local governments to carry out
projects to address transportation efficiency and community and
system preservation.
``(2) Criteria.--In allocating funds made available to
carry out this subsection, the Secretary shall give priority to
applicants that--
``(A) have instituted preservation or development
plans and programs that--
``(i) meet the requirements of this title
and chapter 53 of title 49, United States Code;
and
``(ii)(I) are coordinated with State and
local adopted preservation or development
plans;
``(II) are intended to promote cost-
effective and strategic investments in
transportation infrastructure that minimize
adverse impacts on the environment; or
``(III) are intended to promote innovative
private sector strategies.
``(B) have instituted other policies to integrate
transportation and community and system preservation
practices, such as--
``(i) spending policies that direct funds
to high-growth areas;
``(ii) urban growth boundaries to guide
metropolitan expansion;
``(iii) `green corridors' programs that
provide access to major highway corridors for
areas targeted for efficient and compact
development; or
``(iv) other similar programs or policies
as determined by the Secretary;
``(C) have preservation or development policies
that include a mechanism for reducing potential impacts
of transportation activities on the environment;
``(D) examine ways to encourage private sector
investments that address the purposes of this section;
and
``(E) propose projects for funding that address the
purposes described in subsection (b)(2).
``(3) Equitable distribution.--In allocating funds to carry
out this subsection, the Secretary shall ensure the equitable
distribution of funds to a diversity of populations and
geographic regions.
``(4) Use of allocated funds.--
``(A) In general.--An allocation of funds made
available to carry out this subsection shall be used by
the recipient to implement the projects proposed in the
application to the Secretary.
``(B) Types of projects.--The allocation of funds
shall be available for obligation for--
``(i) any project eligible for funding
under this title or chapter 53 of title 49,
United States Code; or
``(ii) any other activity relating to
transportation and community and system
preservation that the Secretary determines to
be appropriate, including corridor preservation
activities that are necessary to implement--
``(I) transit-oriented development
plans;
``(II) traffic calming measures; or
``(III) other coordinated
transportation and community and system
preservation practices.
``(d) Funding.--
``(1) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) to carry out this section $50,000,000 for each of
fiscal years 2004 through 2009.
``(2) Contract authority.--Funds authorized under this
subsection shall be available for obligation in the same manner
as if the funds were apportioned under this chapter.''.
(b) Eligible Projects.--Section 133(b) of title 23, United States
Code (as amended by section 1701(a)), is amended by adding at the end
the following:
``(18) Transportation and community system preservation to
facilitate the planning, development, and implementation of
strategies of metropolitan planning organizations and local
governments to integrate transportation, community, and system
preservation plans and practices that address the following:
``(A) Improvement of the efficiency of the
transportation system in the United States.
``(B) Reduction of the impacts of transportation on
the environment.
``(C) Reduction of the need for costly future
investments in public infrastructure.
``(D) Provision of efficient access to jobs,
services, and centers of trade.
``(E) Examination of development patterns, and
identification of strategies to encourage private
sector development patterns, that achieve the goals
identified in subparagraphs (A) through (D).
``(19) Projects relating to intersections, including
intersections--
``(A) that--
``(i) have disproportionately high accident
rates;
``(ii) have high levels of congestion, as
evidenced by--
``(I) interrupted traffic flow at
the intersection; and
``(II) a level of service rating,
issued by the Transportation Research
Board of the National Academy of
Sciences in accordance with the Highway
Capacity Manual, that is not better
than `F' during peak travel hours; and
``(iii) are directly connected to or
located on a Federal-aid highway; and
``(B) improvements that are approved in the
regional plan of the appropriate local metropolitan
planning organization.''.
(c) Conforming Amendment.--The analysis for subchapter I of chapter
1 of title 23, United States Code (as amended by section 1812(b)), is
amended by adding at the end the following:
``175. Transportation and community and system preservation pilot
program.''.
SEC. 1814. PARKING PILOT PROGRAMS.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1813(a)), is amended by adding at
the end the following:
``Sec. 176. Parking pilot programs
``(a) Commercial Truck Parking Pilot Program.--
``(1) Establishment.--In cooperation with appropriate
State, regional, and local governments, the Secretary shall
establish a pilot program to address the shortage of long-term
parking for drivers of commercial motor vehicles on the
National Highway System.
``(2) Allocation of funds.--
``(A) In general.--The Secretary shall allocate
funds made available under this subsection to States,
metropolitan planning organizations, and local
governments.
``(B) Criteria.--In allocating funds under this
subsection, the Secretary shall give priority to an
applicant that--
``(i) demonstrates a severe shortage of
commercial vehicle parking capacity on the
corridor to be addressed;
``(ii) consults with affected State and
local governments, community groups, private
providers of commercial vehicle parking, and
motorist and trucking organizations; and
``(iii) demonstrates that the project
proposed by the applicant is likely to have a
positive effect on highway safety, traffic
congestion, or air quality.
``(3) Use of allocated funds.--
``(A) In general.--A recipient of funds allocated
under this subsection shall use the funds to carry out
the project proposed in the application submitted by
the recipient to the Secretary.
``(B) Types of projects.--Funds under this
subsection shall be available for obligation for
projects that serve the National Highway System,
including--
``(i) construction of safety rest areas
that include parking for commercial motor
vehicles;
``(ii) construction of commercial motor
vehicle parking facilities that are adjacent to
commercial truck stops and travel plazas;
``(iii) costs associated with the opening
of facilities (including inspection and weigh
stations and park-and-ride facilities) to
provide commercial motor vehicle parking;
``(iv) projects that promote awareness of
the availability of public or private
commercial motor vehicle parking on the
National Highway System, including parking in
connection with intelligent transportation
systems and other systems;
``(v) construction of turnouts along the
National Highway System for commercial motor
vehicles;
``(vi) capital improvements to public
commercial motor vehicle truck parking
facilities closed on a seasonal basis in order
to allow the facilities to remain open year-
around; and
``(vii) improvements to the geometric
design at interchanges on the National Highway
System to improve access to commercial motor
vehicle parking facilities.
``(4) Report.--Not later than 5 years after the date of
enactment of this section, the Secretary shall submit to
Congress a report on the results of the pilot program carried
out under this subsection.
``(5) Federal share.--The Federal share of the cost of a
project carried out under this subsection shall be consistent
with section 120.
``(6) Funding.--
``(A) In general.--There is authorized to be
appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to carry out this subsection
$10,000,000 for each of fiscal years 2005 through 2009.
``(B) Contract authority.--Funds authorized under
this paragraph shall be available for obligation in the
same manner as if the funds were apportioned under this
chapter.
``(b) Corridor and Fringe Parking Pilot Program.--
``(1) Establishment.--
``(A) In general.--In cooperation with appropriate
State, regional, and local governments, the Secretary
shall carry out a pilot program to provide corridor and
fringe parking facilities.
``(B) Primary function.--The primary function of a
corridor and fringe parking facility funded under this
subsection shall be to provide parking capacity to
support car pooling, van pooling, ride sharing,
commuting, and high occupancy vehicle travel.
``(C) Overnight parking.--A State may permit a
facility described in subparagraph (B) to be used for
the overnight parking of commercial vehicles if the use
does not foreclose or unduly limit the primary function
of the facility described in subparagraph (B).
``(2) Allocation of funds.--
``(A) In general.--The Secretary shall allocate
funds made available to carry out this subsection to
States.
``(B) Criteria.--In allocating funds under this
subsection, the Secretary shall give priority to a
State that--
``(i) demonstrates demand for corridor and
fringe parking on the corridor to be addressed;
``(ii) consults with affected metropolitan
planning organizations, local governments,
community groups, and providers of corridor and
fringe parking; and
``(iii) demonstrates that the project
proposed by the State is likely to have a
positive effect on ride sharing, traffic
congestion, or air quality.
``(3) Use of allocated funds.--
``(A) In general.--A recipient of funds allocated
under this subsection shall use the funds to carry out
the project proposed in the application submitted by
the recipient to the Secretary.
``(B) Types of projects.--Funds under this
subsection shall be available for obligation for
projects that serve the Federal-aid system, including--
``(i) construction of corridor and fringe
parking facilities;
``(ii) costs associated with the opening of
facilities;
``(iii) projects that promote awareness of
the availability of corridor and fringe parking
through the use of signage and other means;
``(iv) capital improvements to corridor and
fringe parking facilities closed on a seasonal
basis in order to allow the facilities to
remain open year-around; and
``(v) improvements to the geometric design
on adjoining roadways to facilitate access to,
and egress from, corridor and fringe parking
facilities.
``(4) Report.--Not later than 5 years after the date of
enactment of this section, the Secretary shall submit to
Congress a report on the results of the pilot program carried
out under this subsection.
``(5) Federal share.--The Federal share of the cost of a
project carried out under this subsection shall be consistent
with section 120.
``(6) Funding.--
``(A) In general.--There is authorized to be
appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to carry out this subsection
$10,000,000 for each of fiscal years 2005 through 2009.
``(B) Contract authority.--Funds authorized under
this paragraph shall be available for obligation in the
same manner as if the funds were apportioned under this
chapter.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
I of title 23, United States Code (as amended by section 1813(c)), is
amended by adding at the end the following:
``176. Parking pilot programs.''.
SEC. 1815. INTERSTATE OASIS PROGRAM.
(a) In General.--Subchapter I of chapter 1 of title 23, United
States Code (as amended by section 1814(a)), is amended by adding at
the end the following:
``Sec. 177. Interstate oasis program
``(a) In General.--Not later than 180 days after the date of
enactment of this section, in consultation with the States and other
interested parties, the Secretary shall--
``(1) establish an Interstate oasis program; and
``(2) develop standards for designating, as an Interstate
oasis, a facility that--
``(A) offers--
``(i) products and services to the public;
``(ii) 24-hour access to restrooms; and
``(iii) parking for automobiles and heavy
trucks; and
``(B) meets other standards established by the
Secretary.
``(b) Standards for Designation.--The standards for designation
under subsection (a) shall include standards relating to--
``(1) the appearance of a facility; and
``(2) the proximity of the facility to the Interstate
System.
``(c) Eligibility for Designation.--If a State elects to
participate in the interstate oasis program, any facility meeting the
standards established by the Secretary shall be eligible for
designation under this section.
``(d) Logo.--The Secretary shall design a logo to be displayed by a
facility designated under this section.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
I of title 23, United States Code (as amended by section 1814(b)), is
amended by adding at the end the following:
``177. Interstate oasis program.''.
SEC. 1816. TRIBAL-STATE ROAD MAINTENANCE AGREEMENTS.
Section 204 of title 23, United States Code (as amended by section
1806(f)(4)), is amended by adding at the end the following:
``(n) Tribal-State Road Maintenance Agreements.--
``(1) In general.--Notwithstanding any other provision of
law, regulation, policy, or guideline, an Indian tribe and a
State may enter into a road maintenance agreement under which
an Indian tribe assumes the responsibilities of the State for--
``(A) Indian reservation roads; and
``(B) roads providing access to Indian reservation
roads.
``(2) Tribal-state agreements.--Agreements entered into
under paragraph (1)--
``(A) shall be negotiated between the State and the
Indian tribe; and
``(B) shall not require the approval of the
Secretary.
``(3) Annual report.--Effective beginning with fiscal year
2004, the Secretary shall prepare and submit to Congress an
annual report that identifies--
``(A) the Indian tribes and States that have
entered into agreements under paragraph (1);
``(B) the number of miles of roads for which Indian
tribes have assumed maintenance responsibilities; and
``(C) the amount of funding transferred to Indian
tribes for the fiscal year under agreements entered
into under paragraph (1).''.
SEC. 1817. NATIONAL FOREST SYSTEM ROADS.
Section 205 of title 23, United States Code, is amended by adding
at the end the following:
``(e) Of the amounts made available for National Forest System
roads, $15,000,000 for each fiscal year shall be used by the Secretary
of Agriculture to pay the costs of facilitating the passage of aquatic
species beneath roads in the National Forest System, including the
costs of constructing, maintaining, replacing, or removing culverts and
bridges, as appropriate.''.
SEC. 1818. TERRITORIAL HIGHWAY PROGRAM.
(a) In General.--Chapter 2 of title 23, United States Code, is
amended by striking section 215 and inserting the following:
``Sec. 215. Territorial highway program
``(a) Definitions.--In this section:
``(1) Program.--The term `program' means the territorial
highway program established under subsection (b).
``(2) Territory.--The term `territory' means the any of the
following territories of the United States:
``(A) American Samoa.
``(B) The Commonwealth of the Northern Mariana
Islands.
``(C) Guam.
``(D) The United States Virgin Islands.
``(b) Program.--
``(1) In general.--Recognizing the mutual benefits that
will accrue to the territories and the United States from the
improvement of highways in the territories, the Secretary may
carry out a program to assist each territorial government in
the construction and improvement of a system of arterial and
collector highways, and necessary inter-island connectors, that
is--
``(A) designated by the Governor or chief executive
officer of each territory; and
``(B) approved by the Secretary.
``(2) Federal share.--The Secretary shall provide Federal
financial assistance to territories under this section in
accordance with section 120(h).
``(c) Technical Assistance.--
``(1) In general.--To continue a long-range highway
development program, the Secretary may provide technical
assistance to the governments of the territories to enable the
territories to, on a continuing basis--
``(A) engage in highway planning;
``(B) conduct environmental evaluations;
``(C) administer right-of-way acquisition and
relocation assistance programs; and
``(D) design, construct, operate, and maintain a
system of arterial and collector highways, including
necessary inter-island connectors.
``(2) Form and terms of assistance.--Technical assistance
provided under paragraph (1), and the terms for the sharing of
information among territories receiving the technical
assistance, shall be included in the agreement required by
subsection (e).
``(d) Nonapplicability of Certain Provisions.--
``(1) In general.--Except to the extent that provisions of
chapter 1 are determined by the Secretary to be inconsistent
with the needs of the territories and the intent of the
program, chapter 1 (other than provisions of chapter 1 relating
to the apportionment and allocation of funds) shall apply to
funds authorized to be appropriated for the program.
``(2) Applicable provisions.--The specific sections of
chapter 1 that are applicable to each territory, and the extent
of the applicability of those section, shall be identified in
the agreement required by subsection (e).
``(e) Agreement.--
``(1) In general.--Except as provided in paragraph (3),
none of the funds made available for the program shall be
available for obligation or expenditure with respect to any
territory until the Governor or chief executive officer of the
territory enters into a new agreement with the Secretary (which
new agreement shall be entered into not later than 1 year after
the date of enactment of the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004), providing that
the government of the territory shall--
``(A) implement the program in accordance with
applicable provisions of chapter 1 and subsection (d);
``(B) design and construct a system of arterial and
collector highways, including necessary inter-island
connectors, in accordance with standards that are--
``(i) appropriate for each territory; and
``(ii) approved by the Secretary;
``(C) provide for the maintenance of facilities
constructed or operated under this section in a
condition to adequately serve the needs of present and
future traffic; and
``(D) implement standards for traffic operations
and uniform traffic control devices that are approved
by the Secretary.
``(2) Technical assistance.--The new agreement required by
paragraph (1) shall--
``(A) specify the kind of technical assistance to
be provided under the program;
``(B) include appropriate provisions regarding
information sharing among the territories; and
``(C) delineate the oversight role and
responsibilities of the territories and the Secretary.
``(3) Review and revision of agreement.--The new agreement
entered into under paragraph (1) shall be reevaluated and, as
necessary, revised, at least every 2 years.
``(4) Existing agreements.--With respect to an agreement
between the Secretary and the Governor or chief executive
officer of a territory that is in effect as of the date of
enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004--
``(A) the agreement shall continue in force until
replaced by a new agreement in accordance with
paragraph (1); and
``(B) amounts made available for the program under
the agreement shall be available for obligation or
expenditure so long as the agreement, or a new
agreement under paragraph (1), is in effect.
``(f) Permissible Uses of Funds.--
``(1) In general.--Funds made available for the program may
be used only for the following projects and activities carried
out in a territory:
``(A) Eligible surface transportation program
projects described in section 133(b).
``(B) Cost-effective, preventive maintenance
consistent with section 116.
``(C) Ferry boats, terminal facilities, and
approaches, in accordance with subsections (b) and (c)
of section 129.
``(D) Engineering and economic surveys and
investigations for the planning, and the financing, of
future highway programs.
``(E) Studies of the economy, safety, and
convenience of highway use.
``(F) The regulation and equitable taxation of
highway use.
``(G) Such research and development as are
necessary in connection with the planning, design, and
maintenance of the highway system.
``(2) Prohibition on use of funds for routine
maintenance.--None of the funds made available for the program
shall be obligated or expended for routine maintenance.
``(g) Location of Projects.--Territorial highway projects (other
than those described in paragraphs (1), (3), and (4) of section 133(b))
may not be undertaken on roads functionally classified as local.''.
(b) Conforming Amendments.--
(1) Eligible projects.--Section 103(b)(6) of title 23,
United States Code, is amended by striking subparagraph (P) and
inserting the following:
``(P) Projects eligible for assistance under the
territorial highway program under section 215.''.
(2) Funding.--Section 104(b)(1)(A) of title 23, United
States Code, is amended by striking ``to the Virgin Islands,
Guam, American Samoa, and the Commonwealth of Northern Mariana
Islands'' and inserting ``for the territorial highway program
authorized under section 215''.
(3) Analysis.--The analysis for chapter 2 of title 23,
United States Code, is amended by striking the item relating to
section 215 and inserting the following:
``215. Territorial highway program.''.
SEC. 1819. MAGNETIC LEVITATION TRANSPORTATION TECHNOLOGY DEPLOYMENT
PROGRAM.
Section 322 of title 23, United States Code, is amended--
(1) in subsection (c)--
(A) by striking ``Not later than'' and inserting
the following:
``(1) Initial solicitation.--Not later than''; and
(B) by adding at the end the following:
``(2) Additional solicitation.--Not later than 1 year after
the date of enactment of this paragraph, the Secretary may
solicit additional applications from States, or authorities
designated by 1 or more States, for financial assistance
authorized by subsection (b) for planning, design, and
construction of eligible MAGLEV projects.'';
(2) in subsection (e), by striking ``Prior to soliciting
applications, the Secretary'' and inserting ``The Secretary'';
(3) in subsection (h)--
(A) in subparagraph (A), by striking clause (i) and
inserting the following:
``(i) In general.--There is authorized to
be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) to carry
out this section $15,000,000 for each of fiscal
years 2004 through 2009.''; and
(B) in subparagraph (B), by striking clause (i) and
inserting the following:
``(i) In general.--There are authorized to
be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) to carry
out this section--
``(I) $375,000,000 for fiscal year
2004;
``(II) $400,000,000 for fiscal year
2005;
``(III) $415,000,000 for fiscal
year 2006;
``(IV) $425,000,000 for fiscal year
2007;
``(V) $435,000,000 for fiscal year
2008; and
``(VI) $450,000,000 for fiscal year
2009.''; and
(4) by striking subsection (i).
SEC. 1820. DONATIONS AND CREDITS.
Section 323 of title 23, United States Code, is amended--
(1) in the first sentence of subsection (c), by inserting
``, or a local government from offering to donate funds,
materials, or services performed by local government
employees,'' after ``services''; and
(2) striking subsection (e).
SEC. 1821. DISADVANTAGED BUSINESS ENTERPRISES.
(a) General Rule.--Except to the extent that the Secretary
determines otherwise, not less than 10 percent of the amounts made
available for any program under titles I, II, and III of this Act shall
be expended with small business concerns owned and controlled by
socially and economically disadvantaged individuals.
(b) Definitions.--In this section:
(1) Small business concern.--
(A) In general.--The term ``small business
concern'' has the meaning given the term under section
3 of the Small Business Act (15 U.S.C. 632).
(B) Exclusion.--The term ``small business concern''
does not include any concern or group of concerns
controlled by the same socially and economically
disadvantaged individual or individuals that has
average annual gross receipts over the preceding 3
fiscal years in excess of $17,420,000, as adjusted by
the Secretary for inflation.
(2) Socially and economically disadvantaged individuals.--
The term ``socially and economically disadvantaged
individuals'' has the meaning given the term under section 8(d)
of the Small Business Act (15 U.S.C. 637(d)) and relevant
subcontracting regulations promulgated under that section,
except that women shall be presumed to be socially and
economically disadvantaged individuals for the purposes of this
section.
(c) Annual Listing of Disadvantaged Business Enterprises.--Each
State shall annually survey and compile a list of the small business
concerns referred to in subsection (a) and the location of such
concerns in the State and notify the Secretary, in writing, of the
percentage of such concerns which are controlled by women, by socially
and economically disadvantaged individuals (other than women), and by
individuals who are women and are otherwise socially and economically
disadvantaged individuals.
(d) Uniform Certification.--The Secretary shall establish minimum
uniform criteria for State governments to use in certifying whether a
concern qualifies for purposes of this section. Such minimum uniform
criteria shall include on-site visits, personal interviews, licenses,
analysis of stock ownership, listing of equipment, analysis of bonding
capacity, listing of work completed, resume of principal owners,
financial capacity, and type of work preferred.
(e) Compliance With Court Orders.--Nothing in this section limits
the eligibility of an entity or person to receive funds made available
under titles I, III, and V of this Act, if the entity or person is
prevented, in whole or in part, from complying with subsection (a)
because a Federal court issues a final order in which the court finds
that the requirement of subsection (a), or the program established
under subsection (a), is unconstitutional.
SEC. 1822. EMERGENCY RELIEF.
Section 125(c)(1) of title 23, United States Code, is amended by
striking $100,000,000'' and inserting ``$300,000,000''.
SEC. 1823. 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 for pedestrian and bicycle facility
enhancement projects.--The Secretary shall encourage
States to give priority to pedestrian and bicycle
facility enhancement projects that include a
coordinated physical activity or healthy lifestyles
program.''.
SEC. 1824. THE DELTA REGIONAL AUTHORITY.
(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 or
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 1 of title 23,
United States Code (as amended by section 1814(b)), is amended by
adding at the end the following:
``178. Delta Region transportation development program.''.
SEC. 1825. 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 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. 1826. 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''.
Subtitle I--Technical Corrections
SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT.
(a) Letting of Contracts.--Section 112 of title 23, United States
Code, is amended--
(1) by striking subsection (f); and
(2) by redesignating subsection (g) as subsection (f).
(b) Fringe and Corridor Parking Facilities.--Section 137(a) of
title 23, United States Code, is amended in the first sentence by
striking ``on the Federal-aid urban system'' and inserting ``on a
Federal-aid highway''.
SEC. 1902. CLARIFICATION OF DATE.
Section 109(g) of title 23, United States Code, is amended in the
first sentence by striking ``The Secretary'' and all that follows
through ``of 1970'' and inserting ``Not later than January 30, 1971,
the Secretary shall issue''.
SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING FUNDING
SOURCES IN TITLE 23.
(a) In General.--Section 154 of the Federal-Aid Highway Act of 1987
(23 U.S.C. 101 note; 101 Stat. 209) is--
(1) transferred to title 23, United States Code;
(2) redesignated as section 321;
(3) moved to appear after section 320 of that title; and
(4) amended by striking the section heading and inserting
the following:
``Sec. 321. Signs identifying funding sources''.
(b) Conforming Amendment.--The analysis for chapter 3 of title 23,
United States Code, is amended by inserting after the item relating to
section 320 the following:
``321. Signs identifying funding sources.''.
SEC. 1904. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23.
(a) In General.--Section 165 of the Highway Improvement Act of 1982
(23 U.S.C. 101 note; 96 Stat. 2136) is--
(1) transferred to title 23, United States Code;
(2) redesignated as section 313;
(3) moved to appear after section 312 of that title; and
(4) amended by striking the section heading and inserting
the following:
``Sec. 313. Buy America''.
(b) Conforming Amendments.--
(1) The analysis for chapter 3 of title 23, United States
Code, is amended by inserting after the item relating to
section 312 the following:
``313. Buy America.''.
(2) Section 313 of title 23, United States Code (as added
by subsection (a)), is amended--
(A) in subsection (a), by striking ``by this Act''
the first place it appears and all that follows through
``of 1978'' and inserting ``to carry out the Surface
Transportation Assistance Act of 1982 (96 Stat. 2097)
or this title'';
(B) in subsection (b), by redesignating paragraph
(4) as paragraph (3);
(C) in subsection (d), by striking ``this Act,''
and all that follows through ``Code, which'' and
inserting ``the Surface Transportation Assistance Act
of 1982 (96 Stat. 2097) or this title that'';
(D) by striking subsection (e); and
(E) by redesignating subsections (f) and (g) as
subsections (e) and (f), respectively.
SEC. 1905. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION.
Section 140 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in the first sentence, by striking ``subsection
(a) of section 105 of this title'' and inserting
``section 135'';
(B) in the second sentence, by striking ``He'' and
inserting ``The Secretary'';
(C) in the third sentence, by striking ``where he
considers it necessary to assure'' and inserting ``if
necessary to ensure''; and
(D) in the last sentence--
(i) by striking ``him'' and inserting ``the
Secretary'' and
(ii) by striking ``he'' and inserting ``the
Secretary'';
(2) in subsection (b)--
(A) in the first sentence, by striking ``highway
construction'' and inserting ``surface
transportation''; and
(B) in the second sentence--
(i) by striking ``as he may deem
necessary'' and inserting ``as necessary''; and
(ii) by striking ``not to exceed $2,500,000
for the transition quarter ending September 30,
1976, and'';
(3) in the second sentence of subsection (c)--
(A) by striking ``subsection 104(b)(3) of this
title'' and inserting ``section 104(b)(3)''; and
(B) by striking ``he may deem''; and
(4) in the heading of subsection (d), by striking ``and
contracting''.
TITLE II--TRANSPORTATION RESEARCH
Subtitle A--Funding
SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass Transit
Account):
(1) Surface transportation research.--
(A) In general.--For carrying out sections 502,
503, 506, 507, 508, and 511 of title 23, United States
Code--
(i) $211,000,000 for each of fiscal years
2004 and 2005;
(ii) $215,000,000 for fiscal year 2006;
(iii) $218,000,000 for fiscal year 2007;
(iv) $220,000,000 for fiscal year 2008; and
(v) $223,000,000 for fiscal year 2009.
(B) Surface transportation-environmental
cooperative research program.--For each of fiscal years
2004 through 2009, the Secretary shall set aside
$20,000,000 of the funds authorized under subparagraph
(A) to carry out the surface transportation-
environmental cooperative research program under
section 507 of title 23, United States Code.
(2) Training and education.--For carrying out section 504
of title 23, United States Code--
(A) $27,000,000 for fiscal year 2004;
(B) $28,000,000 for fiscal year 2005;
(C) $29,000,000 for fiscal year 2006;
(D) $30,000,000 for fiscal year 2007;
(E) $31,000,000 for fiscal year 2008; and
(F) $32,000,000 for fiscal year 2009.
(3) Bureau of transportation statistics.--For the Bureau of
Transportation Statistics to carry out section 111 of title 49,
United States Code, $28,000,000 for each of fiscal years 2004
through 2009.
(4) ITS standards, research, operational tests, and
development.--For carrying out sections 524, 525, 526, 527,
528, and 529 of title 23, United States Code--
(A) $120,000,000 for fiscal year 2004;
(B) $123,000,000 for fiscal year 2005;
(C) $126,000,000 for fiscal year 2006;
(D) $129,000,000 for fiscal year 2007;
(E) $132,000,000 for fiscal year 2008; and
(F) $135,000,000 for fiscal year 2009.
(5) University transportation centers.--For carrying out
section 510 of title 23, United States Code--
(A) $40,000,000 for fiscal year 2004; and
(B) $45,000,000 for each of fiscal years 2005
through 2009.
(b) Applicability of Title 23, United States Code.--Funds
authorized to be appropriated by subsection (a)--
(1) shall be available for obligation in the same manner as
if the funds were apportioned under chapter 1 of title 23,
United States Code, except that the Federal share of the cost
of a project or activity carried out using the funds shall be
the share applicable under section 120(b) of title 23, United
States Code, as adjusted under subsection (d) of that section
(unless otherwise specified or otherwise determined by the
Secretary); and
(2) shall remain available until expended.
(c) Allocations.--
(1) Surface transportation research.--Of the amounts made
available under subsection (a)(1)--
(A) $27,000,000 for each of fiscal years 2004
through 2009 shall be available to carry out advanced,
high-risk, long-term research under section 502(d) of
title 23, United States Code;
(B) $18,000,000 for fiscal years 2004 and 2005,
$17,000,000 for fiscal year 2006, $15,000,000 for
fiscal year 2007, $12,000,000 for fiscal year 2008, and
$10,00,000 for fiscal year 2009 shall be available to
carry out the long-term pavement performance program
under section 502(e) of that title;
(C) $6,000,000 for each of fiscal years 2004
through 2009 shall be available to carry out the high-
performance concrete bridge research and technology
transfer program under section 502(i) of that title;
(D) $6,000,000 for each of fiscal years 2004
through 2009 shall be made available to carry out
research on asphalt used in highway pavements;
(E) $6,000,000 for each of fiscal years 2004
through 2009 shall be made available to carry out
research on concrete pavements;
(F) $3,000,000 for each of fiscal years 2004
through 2009 shall be made available to carry out
research on aggregates used in highway pavements;
(G) $4,750,000 for each of fiscal years 2004
through 2009 shall be made available for further
development and deployment of techniques to prevent and
mitigate alkali silica reactivity;
(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.
(2) Technology application program.--Of the amounts made
available under subsection (a)(1), $60,000,000 for each of
fiscal years 2004 through 2009 shall be available to carry out
section 503 of title 23, United States Code.
(3) Training and education.--Of the amounts made available
under subsection (a)(2)--
(A) $12,000,000 for fiscal year 2004, $12,500,000
for fiscal year 2005, $13,000,000 for fiscal year 2006,
$13,500,000 for fiscal year 2007, $14,000,000 for
fiscal year 2008, and $14,500,000 for fiscal year 2009
shall be available to carry out section 504(a) of title
23, United States Code (relating to the National
Highway Institute);
(B) $15,000,000 for each of fiscal years 2004
through 2009 shall be available to carry out section
504(b) of that title (relating to local technical
assistance); and
(C) $3,000,000 for each of fiscal years 2004
through 2009 shall be available to carry out section
504(c)(2) of that title (relating to the Eisenhower
Transportation Fellowship Program).
(4) International highway transportation outreach
program.--Of the amounts made available under subsection
(a)(1), $500,000 for each of fiscal years 2004 through 2009
shall be available to carry out section 506 of title 23, United
States Code.
(5) New strategic highway research program.--For each of
fiscal years 2004 through 2009, to carry out section 509 of
title 23, United States Code, the Secretary shall set aside--
(A) $15,000,000 of the amounts made available to
carry out the interstate maintenance program under
section 119 of title 23, United States Code, for the
fiscal year;
(B) $19,000,000 of the amounts made available for
the National Highway System under section 101 of title
23, United States Code, for the fiscal year;
(C) $13,000,000 of the amounts made available to
carry out the bridge program under section 144 of title
23, United States Code, for the fiscal year;
(D) $20,000,000 of the amounts made available to
carry out the surface transportation program under
section 133 of title 23, United States Code, for the
fiscal year;
(E) $5,000,000 of the amounts made available to
carry out the congestion mitigation and air quality
improvement program under section 149 of title 23,
United States Code, for the fiscal year; and
(F) $3,000,000 of the amounts made available to
carry out the highway safety improvement program under
section 148 of title 23, United States Code, for the
fiscal year.
(6) Commercial vehicle intelligent transportation system
infrastructure program.--Of the amounts made available under
subsection (a)(4), not less than $30,000,000 for each of fiscal
years 2004 through 2009 shall be available to carry out section
527 of title 23, United States Code.
(d) Transfers of Funds.--The Secretary may transfer--
(1) to an amount made available under paragraphs (1), (2),
or (4) of subsection (c), not to exceed 10 percent of the
amount allocated for a fiscal year under any other of those
paragraphs; and
(2) to an amount made available under subparagraphs (A),
(B), or (C) of subsection (c)(3), not to exceed 10 percent of
the amount allocated for a fiscal year under any other of those
subparagraphs.
SEC. 2002. OBLIGATION CEILING.
Notwithstanding any other provision of law, the total of all
obligations from amounts made available from the Highway Trust Fund
(other than the Mass Transit Account) by section 2001(a) shall not
exceed--
(1) $426,200,000 for fiscal year 2004;
(2) $435,200,000 for fiscal year 2005;
(3) $443,200,000 for fiscal year 2006;
(4) $450,200,000 for fiscal year 2007;
(5) $456,200,000 for fiscal year 2008; and
(6) $463,200,000 for fiscal year 2009.
SEC. 2003. NOTICE.
(a) Notice of Reprogramming.--If any funds authorized for carrying
out this title or the amendments made by this title are subject to a
reprogramming action that requires notice to be provided to the
Committee on Appropriations of the House of Representatives and the
Committee on Appropriations of the Senate, notice of that action shall
be concurrently provided to the Committee on Transportation and
Infrastructure and the Committee on Science of the House of
Representatives and the Committee on Environment and Public Works of
the Senate.
(b) Notice of Reorganization.--On or before the 15th day preceding
the date of any major reorganization of a program, project, or activity
of the Department of Transportation for which funds are authorized by
this title or the amendments made by this title, the Secretary shall
provide notice of the reorganization to the Committee on Transportation
and Infrastructure and the Committee on Science of the House of
Representatives and the Committee on Environment and Public Works of
the Senate.
Subtitle B--Research and Technology
SEC. 2101. RESEARCH AND TECHNOLOGY PROGRAM.
(a) In General.--Chapter 5 of title 23, United States Code, is
amended to read as follows:
``CHAPTER 5--RESEARCH AND TECHNOLOGY
``SUBCHAPTER I--SURFACE TRANSPORTATION
``Sec.
``501. Definitions.
``502. Surface transportation research.
``503. Technology application program.
``504. Training and education.
``505. State planning and research.
``506. International highway transportation outreach program.
``507. Surface transportation-environmental cooperative research
program.
``508. Surface transportation research technology deployment and
strategic planning.
``509. New strategic highway research program.
``510. University transportation centers.
``511. Multistate corridor operations and management.
``512. Transportation analysis simulation system.
``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND
TECHNICAL ASSISTANCE PROGRAM
``521. Finding.
``522. Goals and purposes.
``523. Definitions.
``524. General authorities and requirements.
``525. National ITS Program Plan.
``526. National ITS architecture and standards.
``527. Commercial vehicle intelligent transportation system
infrastructure program.
``528. Research and development.
``529. Use of funds.
``SUBCHAPTER I--SURFACE TRANSPORTATION
``Sec. 501. Definitions
``In this subchapter:
``(1) Federal laboratory.--The term `Federal laboratory'
includes--
``(A) a Government-owned, Government-operated
laboratory; and
``(B) a Government-owned, contractor-operated
laboratory.
``(2) Safety.--The term `safety' includes highway and
traffic safety systems, research, and development relating to--
``(A) vehicle, highway, driver, passenger,
bicyclist, and pedestrian characteristics;
``(B) accident investigations;
``(C) integrated, interoperable emergency
communications;
``(D) emergency medical care; and
``(E) transportation of the injured.
``Sec. 502. Surface transportation research
``(a) In General.--
``(1) Research, development, and technology transfer
activities.--The Secretary may carry out research, development,
and technology transfer activities with respect to--
``(A) all phases of transportation planning and
development (including new technologies, construction,
transportation systems management and operations
development, design, maintenance, safety, security,
financing, data collection and analysis, demand
forecasting, multimodal assessment, and traffic
conditions); and
``(B) the effect of State laws on the activities
described in subparagraph (A).
``(2) Tests and development.--The Secretary may test,
develop, or assist in testing and developing, any material,
invention, patented article, or process.
``(3) Cooperation, grants, and contracts.--
``(A) In general.--The Secretary may carry out this
section--
``(i) independently;
``(ii) in cooperation with--
``(I) any other Federal agency or
instrumentality; and
``(II) any Federal laboratory; or
``(iii) by making grants to, or entering
into contracts, cooperative agreements, and
other transactions with--
``(I) the National Academy of
Sciences;
``(II) the American Association of
State Highway and Transportation
Officials;
``(III) planning organizations;
``(IV) a Federal laboratory;
``(V) a State agency;
``(VI) an authority, association,
institution, or organization;
``(VII) a for-profit or nonprofit
corporation;
``(VIII) a foreign country; or
``(IX) any other person.
``(B) Competition; review.--All parties entering
into contracts, cooperative agreements or other
transactions with the Secretary, or receiving grants,
to perform research or provide technical assistance
under this section shall be selected, to the maximum
extent practicable and appropriate--
``(i) on a competitive basis; and
``(ii) on the basis of the results of peer
review of proposals submitted to the Secretary.
``(4) Technological innovation.--The programs and
activities carried out under this section shall be consistent
with the surface transportation research and technology
development strategic plan developed under section 508(c).
``(5) Funds.--
``(A) Special account.--In addition to other funds
made available to carry out this section, the Secretary
shall use such funds as may be deposited by any
cooperating organization or person in a special account
of the Treasury established for this purpose.
``(B) Use of funds.--The Secretary shall use funds
made available to carry out this section to develop,
administer, communicate, and promote the use of
products of research, development, and technology
transfer programs under this section.
``(b) Collaborative Research and Development.--
``(1) In general.--To encourage innovative solutions to
surface transportation problems and stimulate the deployment of
new technology, the Secretary may carry out, on a cost-shared
basis, collaborative research and development with--
``(A) non-Federal entities (including State and
local governments, foreign governments, colleges and
universities, corporations, institutions, partnerships,
sole proprietorships, and trade associations that are
incorporated or established under the laws of any
State); and
``(B) Federal laboratories.
``(2) Agreements.--In carrying out this subsection, the
Secretary may enter into cooperative research and development
agreements (as defined in section 12 of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710a)).
``(3) Federal share.--
``(A) In general.--The Federal share of the cost of
activities carried out under a cooperative research and
development agreement entered into under this
subsection shall not exceed 50 percent, except that if
there is substantial public interest or benefit, the
Secretary may approve a greater Federal share.
``(B) Non-federal share.--All costs directly
incurred by the non-Federal partners, including
personnel, travel, and hardware development costs,
shall be credited toward the non-Federal share of the
cost of the activities described in subparagraph (A).
``(4) Use of technology.--The research, development, or use
of a technology under a cooperative research and development
agreement entered into under this subsection, including the
terms under which the technology may be licensed and the
resulting royalties may be distributed, shall be subject to the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3701 et seq.).
``(5) Waiver of advertising requirements.--Section 3709 of
the Revised Statutes (41 U.S.C. 5) shall not apply to a
contract or agreement entered into under this chapter.
``(c) Contents of Research Program.--The Secretary shall include as
priority areas of effort within the surface transportation research
program--
``(1) the development of new technologies and methods in
materials, pavements, structures, design, and construction,
with the objectives of--
``(A)(i) increasing to 50 years the expected life
of pavements;
``(ii) increasing to 100 years the expected life of
bridges; and
``(iii) significantly increasing the durability of
other infrastructure;
``(B) lowering the life-cycle costs, including--
``(i) construction costs;
``(ii) maintenance costs;
``(iii) operations costs; and
``(vi) user costs.
``(2) the development, and testing for effectiveness, of
nondestructive evaluation technologies for civil infrastructure
using existing and new technologies;
``(3) the investigation of--
``(A) the application of current natural hazard
mitigation techniques to manmade hazards; and
``(B) the continuation of hazard mitigation
research combining manmade and natural hazards;
``(4) the improvement of safety--
``(A) at intersections;
``(B) with respect to accidents involving vehicles
run off the road; and
``(C) on rural roads;
``(5) the reduction of work zone incursions and improvement
of work zone safety;
``(6) the improvement of geometric design of roads for the
purpose of safety;
``(7) the examination of data collected through the
national bridge inventory conducted under section 144 using the
national bridge inspection standards established under section
151, with the objectives of determining whether--
``(A) the most useful types of data are being
collected; and
``(B) any improvement could be made in the types of
data collected and the manner in which the data is
collected, with respect to bridges in the United
States;
``(8) the improvement of the infrastructure investment
needs report described in subsection (g) through--
``(A) the study and implementation of new methods
of collecting better quality data, particularly with
respect to performance, congestion, and infrastructure
conditions;
``(B) monitoring of the surface transportation
system in a system-wide manner, through the use of--
``(i) intelligent transportation system
technologies of traffic operations centers; and
``(ii) other new data collection
technologies as sources of better quality
performance data;
``(C) the determination of the critical metrics
that should be used to determine the condition and
performance of the surface transportation system; and
``(D) the study and implementation of new methods
of statistical analysis and computer models to improve
the prediction of future infrastructure investment
requirements;
``(9) the development of methods to improve the
determination of benefits from infrastructure improvements,
including--
``(A) more accurate calculations of benefit-to-cost
ratios, considering benefits and impacts throughout
local and regional transportation systems;
``(B) improvements in calculating life-cycle costs;
and
``(C) valuation of assets;
``(10) the improvement of planning processes to better
predict outcomes of transportation projects, including the
application of computer simulations in the planning process to
predict outcomes of planning decisions;
``(11) the multimodal applications of Geographic
Information Systems and remote sensing, including such areas of
application as--
``(A) planning;
``(B) environmental decisionmaking and project
delivery; and
``(C) freight movement;
``(12) the development and application of methods of
providing revenues to the Highway Trust Fund with the objective
of offsetting potential reductions in fuel tax receipts;
``(13) the development of tests and methods to determine
the benefits and costs to communities of major transportation
investments and projects;
``(14) the conduct of extreme weather research, including
research to--
``(A) reduce contraction and expansion damage;
``(B) reduce or repair road damage caused by
freezing and thawing;
``(C) improve deicing or snow removal techniques;
``(D) develop better methods to reduce the risk of
thermal collapse, including collapse from changes in
underlying permafrost;
``(E) improve concrete and asphalt installation in
extreme weather conditions; and
``(F) make other improvements to protect highway
infrastructure or enhance highway safety or
performance;
``(15) the improvement of surface transportation planning;
``(16) environmental research;
``(17) transportation system management and operations; and
``(18) any other surface transportation research topics
that the Secretary determines, in accordance with the strategic
planning process under section 508, to be critical.
``(d) Advanced, High-Risk Research.--
``(1) In general.--The Secretary shall establish and carry
out, in accordance with the surface transportation research and
technology development strategic plan developed under section
508(c) and research priority areas described in subsection (c),
an advanced research program that addresses longer-term,
higher-risk research with potentially dramatic breakthroughs
for improving the durability, efficiency, environmental impact,
productivity, and safety (including bicycle and pedestrian
safety) aspects of highway and intermodal transportation
systems.
``(2) Partnerships.--In carrying out the program, the
Secretary shall seek to develop partnerships with the public
and private sectors.
``(3) Report.--The Secretary shall include in the strategic
plan required under section 508(c) a description of each of the
projects, and the amount of funds expended for each project,
carried out under this subsection during the fiscal year.
``(e) Long-Term Pavement Performance Program.--
``(1) Authority.--The Secretary shall continue, through
September 30, 2009, the long-term pavement performance program
tests, monitoring, and data analysis.
``(2) Grants, cooperative agreements, and contracts.--Under
the program, the Secretary shall make grants and enter into
cooperative agreements and contracts to--
``(A) monitor, material-test, and evaluate highway
test sections in existence as of the date of the grant,
agreement, or contract;
``(B) analyze the data obtained in carrying out
subparagraph (A); and
``(C) prepare products to fulfill program
objectives and meet future pavement technology needs.
``(3) Conclusion of program.--
``(A) Summary report.--The Secretary shall include
in the strategic plan required under section 508(c) a
report on the initial conclusions of the long-term
pavement performance program that includes--
``(i) an analysis of any research
objectives that remain to be achieved under the
program;
``(ii) an analysis of other associated
longer-term expenditures under the program that
are in the public interest;
``(iii) a detailed plan regarding the
storage, maintenance, and user support of the
database, information management system, and
materials reference library of the program;
``(iv) a schedule for continued
implementation of the necessary data collection
and analysis and project plan under the
program; and
``(v) an estimate of the costs of carrying
out each of the activities described in clauses
(i) through (iv) for each fiscal year during
which the program is carried out.
``(B) Deadline; usefulness of advances.--The
Secretary shall, to the maximum extent practicable--
``(i) ensure that the long-term pavement
performance program is concluded not later than
September 30, 2009; and
``(ii) make such allowances as are
necessary to ensure the usefulness of the
technological advances resulting from the
program.
``(f) Seismic Research.--The Secretary shall--
``(1) in consultation and cooperation with Federal agencies
participating in the National Earthquake Hazards Reduction
Program established by section 5 of the Earthquake Hazards
Reduction Act of 1977 (42 U.S.C. 7704), coordinate the conduct
of seismic research;
``(2) take such actions as are necessary to ensure that the
coordination of the research is consistent with--
``(A) planning and coordination activities of the
Director of the Federal Emergency Management Agency
under section 5(b)(1) of that Act (42 U.S.C.
7704(b)(1)); and
``(B) the plan developed by the Director of the
Federal Emergency Management Agency under section 8(b)
of that Act (42 U.S.C. 7705b(b)); and
``(3) in cooperation with the Center for Civil Engineering
Research at the University of Nevada, Reno, carry out a seismic
research program--
``(A) to study the vulnerability of the Federal-aid
highway system and other surface transportation systems
to seismic activity;
``(B) to develop and implement cost-effective
methods to reduce the vulnerability; and
``(C) to conduct seismic research and upgrade
earthquake simulation facilities as necessary to carry
out the program.
``(g) Infrastructure Investment Needs Report.--
``(1) In general.--Not later than July 31, 2004, and July
31 of every second year thereafter, the Secretary shall submit
to the Committee on Environment and Public Works of the Senate
and the Committee on Transportation and Infrastructure of the
House of Representatives a report that describes--
``(A) estimates of the future highway and bridge
needs of the United States; and
``(B) the backlog of current highway and bridge
needs.
``(2) Comparison with prior reports.--Each report under
paragraph (1) shall provide the means, including all necessary
information, to relate and compare the conditions and service
measures used in the previous biennial reports.
``(h) Security Related Research and Technology Transfer
Activities.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, the Secretary, in
consultation with the Secretary of Homeland Security, with key
stakeholder input (including State transportation departments)
shall develop a 5-year strategic plan for research and
technology transfer and deployment activities pertaining to the
security aspects of highway infrastructure and operations.
``(2) Components of plan.--The plan shall include--
``(A) an identification of which agencies are
responsible for the conduct of various research and
technology transfer activities;
``(B) a description of the manner in which those
activities will be coordinated; and
``(C) a description of the process to be used to
ensure that the advances derived from relevant
activities supported by the Federal Highway
Administration are consistent with the operational
guidelines, policies, recommendations, and regulations
of the Department of Homeland Security; and
``(D) a systematic evaluation of the research that
should be conducted to address, at a minimum--
``(i) vulnerabilities of, and measures that
may be taken to improve, emergency response
capabilities and evacuations;
``(ii) recommended upgrades of traffic
management during crises;
``(iii) integrated, interoperable emergency
communications among the public, the military,
law enforcement, fire and emergency medical
services, and transportation agencies;
``(iv) protection of critical, security-
related infrastructure; and
``(v) structural reinforcement of key
facilities.
``(3) Submission.--On completion of the plan under this
subsection, the Secretary shall submit to the Committee on
Environment and Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives--
``(A) a copy of the plan developed under paragraph
(1); and
``(B) a copy of a memorandum of understanding
specifying coordination strategies and assignment of
responsibilities covered by the plan that is signed by
the Secretary and the Secretary of Homeland Security.
``(i) High-Performance Concrete Bridge Research and Technology
Transfer Program.--In accordance with the objectives described in
subsection (c)(1) and the requirements under sections 503(b)(4) and
504(b), the Secretary shall carry out a program to demonstrate the
application of high-performance concrete in the construction and
rehabilitation of bridges.
``(j) Biobased Transportation Research.--There shall be available
from the Highway Trust Fund (other than the Mass Transit Account)
$18,000,000 for each of fiscal years 2004 through 2009 equally divided
and available to carry out biobased research of national importance at
the National Biodiesel Board and at research centers identified in
section 9011 of Public Law 107-171.
``Sec. 503. Technology application program
``(a) Technology Application Initiatives and Partnerships
Program.--
``(1) Establishment.--The Secretary, in consultation with
interested stakeholders, shall develop and administer a
national technology and innovation application initiatives and
partnerships program.
``(2) Purpose.--The purpose of the program shall be to
significantly accelerate the adoption of technology and
innovation by the surface transportation community.
``(3) Application goals.--
``(A) Establishment.--Not later than 180 days after
the date of enactment of the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of
2004, the Secretary, in consultation with the Surface
Transportation Research Technology Advisory Committee,
State transportation departments, and other interested
stakeholders, shall establish, as part of the surface
transportation research and technology development
strategic plan under section 508(c), goals to carry out
paragraph (1).
``(B) Design.--Each of the goals and the program
developed to achieve the goals shall be designed to
provide tangible benefits, with respect to
transportation systems, in the areas of efficiency,
safety, reliability, service life, environmental
protection, and sustainability.
``(C) Strategies for achievement.--For each goal,
the Secretary, in cooperation with representatives of
the transportation community, such as States, local
governments, the private sector, and academia, shall
use domestic and international technology to develop
strategies and initiatives to achieve the goal,
including technical assistance in deploying technology
and mechanisms for sharing information among program
participants.
``(4) Integration with other programs.--The Secretary shall
integrate activities carried out under this subsection with the
efforts of the Secretary to--
``(A) disseminate the results of research sponsored
by the Secretary; and
``(B) facilitate technology transfer.
``(5) Leveraging of federal resources.--In selecting
projects to be carried out under this subsection, the Secretary
shall give preference to projects that leverage Federal funds
with other significant public or private resources.
``(6) Grants, cooperative agreements, and contracts.--Under
the program, the Secretary may make grants and enter into
cooperative agreements and contracts to foster alliances and
support efforts to stimulate advances in transportation
technology.
``(7) Reports.--The results and progress of activities
carried out under this section shall be published as part of
the annual transportation research report prepared by the
Secretary under section 508(c)(5).
``(8) Allocation.--To the extent appropriate to achieve the
goals established under paragraph (3), the Secretary may
further allocate funds made available to carry out this section
to States for use by those States.
``(b) Innovative Surface Transportation Infrastructure Research and
Construction Program.--
``(1) In general.--The Secretary shall establish and carry
out a program for the application of innovative material,
design, and construction technologies in the construction,
preservation, and rehabilitation of elements of surface
transportation infrastructure.
``(2) Goals.--The goals of the program shall include--
``(A) the development of new, cost-effective, and
innovative materials;
``(B) the reduction of maintenance costs and life-
cycle costs of elements of infrastructure, including
the costs of new construction, replacement, and
rehabilitation;
``(C) the development of construction techniques to
increase safety and reduce construction time and
traffic congestion;
``(D) the development of engineering design
criteria for innovative products and materials for use
in surface transportation infrastructure;
``(E) the development of highway bridges and
structures that will withstand natural disasters and
disasters caused by human activity; and
``(F) the development of new, nondestructive
technologies and techniques for the evaluation of
elements of transportation infrastructure.
``(3) Grants, cooperative agreements, and contracts.--
``(A) In general.--Under the program, the Secretary
shall make grants to, and enter into cooperative
agreements and contracts with--
``(i) States, other Federal agencies,
universities and colleges, private sector
entities, and nonprofit organizations, to pay
the Federal share of the cost of research,
development, and technology transfer concerning
innovative materials and methods; and
``(ii) States, to pay the Federal share of
the cost of repair, rehabilitation,
replacement, and new construction of elements
of surface transportation infrastructure that
demonstrate the application of innovative
materials and methods.
``(B) Applications.--
``(i) In general.--To receive a grant under
this subsection, an entity described in
subparagraph (A) shall submit to the Secretary
an application in such form and containing such
information as the Secretary may require.
``(ii) Approval.--The Secretary shall
select and approve an application based on
whether the proposed project that is the
subject of the application would meet the goals
described in paragraph (2).
``(4) Technology and information transfer.--The Secretary
shall take such action as is necessary to--
``(A) ensure that the information and technology
resulting from research conducted under paragraph (3)
is made available to State and local transportation
departments and other interested parties, as specified
by the Secretary; and
``(B) encourage the use of the information and
technology.
``(5) Federal share.--The Federal share of the cost of a
project under this section shall be determined by the
Secretary.
``Sec. 504. Training and education
``(a) National Highway Institute.--
``(1) In general.--The Secretary shall--
``(A) operate, in the Federal Highway
Administration, a National Highway Institute (referred
to in this subsection as the `Institute'); and
``(B) administer, through the Institute, the
authority vested in the Secretary by this title or by
any other law for the development and conduct of
education and training programs relating to highways.
``(2) Duties of the institute.--In cooperation with State
transportation departments, industries in the United States,
and national or international entities, the Institute shall
develop and administer education and training programs of
instruction for--
``(A) Federal Highway Administration, State, and
local transportation agency employees;
``(B) regional, State, and metropolitan planning
organizations;
``(C) State and local police, public safety, and
motor vehicle employees; and
``(D) United States citizens and foreign nationals
engaged or to be engaged in surface transportation work
of interest to the United States.
``(3) Courses.--
``(A) In general.--The Institute shall--
``(i) develop or update existing courses in
asset management, including courses that
include such components as--
``(I) the determination of life-
cycle costs;
``(II) the valuation of assets;
``(III) benefit-to-cost ratio
calculations; and
``(IV) objective decisionmaking
processes for project selection; and
``(ii) continually develop courses relating
to the application of emerging technologies
for--
``(I) transportation infrastructure
applications and asset management;
``(II) intelligent transportation
systems;
``(III) operations (including
security operations);
``(IV) the collection and archiving
of data;
``(V) expediting the planning and
development of transportation projects;
and
``(VI) the intermodal movement of
individuals and freight.
``(B) Additional courses.--In addition to the
courses developed under subparagraph (A), the
Institute, in consultation with State transportation
departments, metropolitan planning organizations, and
the American Association of State Highway and
Transportation Officials, may develop courses relating
to technology, methods, techniques, engineering,
construction, safety, maintenance, environmental
mitigation and compliance, regulations, management,
inspection, and finance.
``(C) Revision of courses offered.--The Institute
shall periodically--
``(i) review the course inventory of the
Institute; and
``(ii) revise or cease to offer courses
based on course content, applicability, and
need.
``(4) Eligibility; federal share.--The funds apportioned to
a State under section 104(b)(3) for the surface transportation
program shall be available for expenditure by the State
transportation department for the payment of not to exceed 80
percent of the cost of tuition and direct educational expenses
(excluding salaries) in connection with the education and
training of employees of State and local transportation
agencies in accordance with this subsection.
``(5) Federal responsibility.--
``(A) In general.--Except as provided in
subparagraph (B), education and training of employees
of Federal, State, and local transportation (including
highway) agencies authorized under this subsection may
be provided--
``(i) by the Secretary, at no cost to the
States and local governments, if the Secretary
determines that provision at no cost is in the
public interest; or
``(ii) by the State, through grants,
cooperative agreements, and contracts with
public and private agencies, institutions,
individuals, and the Institute.
``(B) Payment of full cost by private persons.--
Private agencies, international or foreign entities,
and individuals shall pay the full cost of any
education and training (including the cost of course
development) received by the agencies, entities, and
individuals, unless the Secretary determines that
payment of a lesser amount of the cost is of critical
importance to the public interest.
``(6) Training fellowships; cooperation.--The Institute
may--
``(A) engage in training activities authorized
under this subsection, including the granting of
training fellowships; and
``(B) exercise the authority of the Institute
independently or in cooperation with any--
``(i) other Federal or State agency;
``(ii) association, authority, institution,
or organization;
``(iii) for-profit or nonprofit
corporation;
``(iv) national or international entity;
``(v) foreign country; or
``(vi) person.
``(7) Collection of fees.--
``(A) In general.--In accordance with this
subsection, the Institute may assess and collect fees
to defray the costs of the Institute in developing or
administering education and training programs under
this subsection.
``(B) Persons subject to fees.--Fees may be
assessed and collected under this subsection only with
respect to--
``(i) persons and entities for whom
education or training programs are developed or
administered under this subsection; and
``(ii) persons and entities to whom
education or training is provided under this
subsection.
``(C) Amount of fees.--The fees assessed and
collected under this subsection shall be established in
a manner that ensures that the liability of any person
or entity for a fee is reasonably based on the
proportion of the costs referred to in subparagraph (A)
that relate to the person or entity.
``(D) Use.--All fees collected under this
subsection shall be used, without further
appropriation, to defray costs associated with the
development or administration of education and training
programs authorized under this subsection.
``(8) Relation to fees.--The funds made available to carry
out this subsection may be combined with or held separate from
the fees collected under--
``(A) paragraph (7);
``(B) memoranda of understanding;
``(C) regional compacts; and
``(D) other similar agreements.
``(b) Local Technical Assistance Program.--
``(1) Authority.--The Secretary shall carry out a local
technical assistance program that will provide access to
surface transportation technology to--
``(A) highway and transportation agencies in
urbanized areas;
``(B) highway and transportation agencies in rural
areas;
``(C) contractors that perform work for the
agencies; and
``(D) infrastructure security.
``(2) Grants, cooperative agreements, and contracts.--The
Secretary may make grants and enter into cooperative agreements
and contracts to provide education and training, technical
assistance, and related support services to--
``(A) assist rural, local transportation agencies
and tribal governments, and the consultants and
construction personnel working for the agencies and
governments, to--
``(i) develop and expand expertise in road
and transportation areas (including pavement,
bridge, concrete structures, intermodal
connections, safety management systems,
intelligent transportation systems, incident
response, operations, and traffic safety
countermeasures);
``(ii) improve roads and bridges;
``(iii) enhance--
``(I) programs for the movement of
passengers and freight; and
``(II) intergovernmental
transportation planning and project
selection; and
``(iv) deal effectively with special
transportation-related problems by preparing
and providing training packages, manuals,
guidelines, and technical resource materials;
``(B) develop technical assistance for tourism and
recreational travel;
``(C) identify, package, and deliver transportation
technology and traffic safety information to local
jurisdictions to assist urban transportation agencies
in developing and expanding their ability to deal
effectively with transportation-related problems
(particularly the promotion of regional cooperation);
``(D) operate, in cooperation with State
transportation departments and universities--
``(i) local technical assistance program
centers designated to provide transportation
technology transfer services to rural areas and
to urbanized areas; and
``(ii) local technical assistance program
centers designated to provide transportation
technical assistance to tribal governments; and
``(E) allow local transportation agencies and
tribal governments, in cooperation with the private
sector, to enhance new technology implementation.
``(c) Research Fellowships.--
``(1) General authority.--The Secretary, acting
independently or in cooperation with other Federal agencies and
instrumentalities, may make grants for research fellowships for
any purpose for which research is authorized by this chapter.
``(2) Dwight david eisenhower transportation fellowship
program.--The Secretary shall establish and implement a
transportation research fellowship program, to be known as the
`Dwight David Eisenhower Transportation Fellowship Program',
for the purpose of attracting qualified students to the field
of transportation.
``Sec. 505. State planning and research
``(a) In General.--Two percent of the sums apportioned to a State
for fiscal year 2004 and each fiscal year thereafter under sections 104
(other than subsections (f) and (h)) and 144 shall be available for
expenditure by the State, in consultation with the Secretary, only
for--
``(1) the conduct of engineering and economic surveys and
investigations;
``(2) the planning of--
``(A) future highway programs and local public
transportation systems; and
``(B) the financing of those programs and systems,
including metropolitan and statewide planning under
sections 134 and 135;
``(3) the development and implementation of management
systems under section 303;
``(4) the conduct of studies on--
``(A) the economy, safety, and convenience of
surface transportation systems; and
``(B) the desirable regulation and equitable
taxation of those systems;
``(5) research, development, and technology transfer
activities necessary in connection with the planning, design,
construction, management, and maintenance of highway, public
transportation, and intermodal transportation systems;
``(6) the conduct of studies, research, and training
relating to the engineering standards and construction
materials for surface transportation systems described in
paragraph (5) (including the evaluation and accreditation of
inspection and testing and the regulation of and charging for
the use of the standards and materials); and
``(7) the conduct of activities relating to the planning of
real-time monitoring elements.
``(b) Minimum Expenditures on Research, Development, and Technology
Transfer Activities.--
``(1) In general.--Subject to paragraph (2), not less than
25 percent of the funds subject to subsection (a) that are
apportioned to a State for a fiscal year shall be expended by
the State for research, development, and technology transfer
activities that--
``(A) are described in subsection (a); and
``(B) relate to highway, public transportation, and
intermodal transportation systems.
``(2) Waivers.--The Secretary may waive the application of
paragraph (1) with respect to a State for a fiscal year if--
``(A) the State certifies to the Secretary for the
fiscal year that total expenditures by the State for
transportation planning under sections 134 and 135 will
exceed 75 percent of the funds described in paragraph
(1); and
``(B) the Secretary accepts the certification of
the State.
``(3) Nonapplicability of assessment.--Funds expended under
paragraph (1) shall not be considered to be part of the
extramural budget of the agency for the purpose of section 9 of
the Small Business Act (15 U.S.C. 638).
``(c) Federal Share.--The Federal share of the cost of a project
carried out using funds subject to subsection (a) shall be the share
applicable under section 120(b), as adjusted under subsection (d) of
that section.
``(d) Administration of Sums.--Funds subject to subsection (a)
shall be--
``(1) combined and administered by the Secretary as a
single fund; and
``(2) available for obligation for the period described in
section 118(b)(2).
``(e) Eligible Use of State Planning and Research Funds.--A State,
in coordination with the Secretary, may obligate funds made available
to carry out this section for any purpose authorized under section
506(a).
``Sec. 506. International highway transportation outreach program
``(a) Establishment.--The Secretary may establish an international
highway transportation outreach program--
``(1) to inform the United States highway community of
technological innovations in foreign countries that could
significantly improve highway transportation in the United
States;
``(2) to promote United States highway transportation
expertise, goods, and services in foreign countries; and
``(3) to increase transfers of United States highway
transportation technology to foreign countries.
``(b) Activities.--Activities carried out under the program may
include--
``(1) the development, monitoring, assessment, and
dissemination in the United States of information about highway
transportation innovations in foreign countries that could
significantly improve highway transportation in the United
States;
``(2) research, development, demonstration, training, and
other forms of technology transfer and exchange;
``(3) the provision to foreign countries, through
participation in trade shows, seminars, expositions, and other
similar activities, of information relating to the technical
quality of United States highway transportation goods and
services;
``(4) the offering of technical services of the Federal
Highway Administration that cannot be readily obtained from
private sector firms in the United States for incorporation
into the proposals of those firms undertaking highway
transportation projects outside the United States, if the costs
of the technical services will be recovered under the terms of
the project;
``(5) the conduct of studies to assess the need for, or
feasibility of, highway transportation improvements in foreign
countries; and
``(6) the gathering and dissemination of information on
foreign transportation markets and industries.
``(c) Cooperation.--The Secretary may carry out this section in
cooperation with any appropriate--
``(1) Federal, State, or local agency;
``(2) authority, association, institution, or organization;
``(3) for-profit or nonprofit corporation;
``(4) national or international entity;
``(5) foreign country; or
``(6) person.
``(d) Funds.--
``(1) Contributions.--Funds available to carry out this
section shall include funds deposited by any cooperating
organization or person into a special account of the Treasury
established for this purpose.
``(2) Eligible uses of funds.--The funds deposited into the
account, and other funds available to carry out this section,
shall be available to cover the cost of any activity eligible
under this section, including the cost of--
``(A) promotional materials;
``(B) travel;
``(C) reception and representation expenses; and
``(D) salaries and benefits.
``(3) Reimbursements for salaries and benefits.--
Reimbursements for salaries and benefits of Department of
Transportation employees providing services under this section
shall be credited to the account.
``(e) Report--For each fiscal year, the Secretary shall submit to
the Committee on Environment and Public Works of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives a report that describes the destinations and individual
trip costs of international travel conducted in carrying out activities
described in this section.
``Sec. 507. Surface transportation-environmental cooperative research
program
``(a) In General.--The Secretary shall establish and carry out a
surface transportation-environmental cooperative research program.
``(b) Contents.--The program carried out under this section may
include research--
``(1) to develop more accurate models for evaluating
transportation control measures and transportation system
designs that are appropriate for use by State and local
governments (including metropolitan planning organizations) in
designing implementation plans to meet Federal, State, and
local environmental requirements;
``(2) to improve understanding of the factors that
contribute to the demand for transportation;
``(3) to develop indicators of economic, social, and
environmental performance of transportation systems to
facilitate analysis of potential alternatives;
``(4) to meet additional priorities as determined by the
Secretary in the strategic planning process under section 508;
and
``(5) to refine, through the conduct of workshops,
symposia, and panels, and in consultation with stakeholders
(including the Department of Energy, the Environmental
Protection Agency, and other appropriate Federal and State
agencies and associations) the scope and research emphases of
the program.
``(c) Program Administration.--The Secretary shall--
``(1) administer the program established under this
section; and
``(2) ensure, to the maximum extent practicable, that--
``(A) the best projects and researchers are
selected to conduct research in the priority areas
described in subsection (b)--
``(i) on the basis of merit of each
submitted proposal; and
``(ii) through the use of open
solicitations and selection by a panel of
appropriate experts;
``(B) a qualified, permanent core staff with the
ability and expertise to manage a large multiyear
budget is used;
``(C) the stakeholders are involved in the
governance of the program, at the executive, overall
program, and technical levels, through the use of
expert panels and committees; and
``(D) there is no duplication of research effort
between the program established under this section and
the new strategic highway research program established
under section 509.
``(d) National Academy of Sciences.--The Secretary may make grants
to, and enter into cooperative agreements with, the National Academy of
Sciences to carry out such activities relating to the research,
technology, and technology transfer activities described in subsections
(b) and (c) as the Secretary determines to be appropriate.
``Sec. 508. Surface transportation research technology deployment and
strategic planning
``(a) Planning.--
``(1) Establishment.--The Secretary shall--
``(A) establish, in accordance with section 306 of
title 5, a strategic planning process that--
``(i) enhances effective implementation of
this section through the establishment in
accordance with paragraph (2) of the Surface
Transportation Research Technology Advisory
Committee; and
``(ii) focuses on surface transportation
research funded through paragraphs (1), (2),
(4), and (5) of section 2001(a) of the Safe,
Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, taking into
consideration national surface transportation
system needs and intermodality requirements;
``(B) coordinate Federal surface transportation
research, technology development, and deployment
activities;
``(C) at such intervals as are appropriate and
practicable, measure the results of those activities
and the ways in which the activities affect the
performance of the surface transportation systems of
the United States; and
``(D) ensure, to the maximum extent practicable,
that planning and reporting activities carried out
under this section are coordinated with all other
surface transportation planning and reporting
requirements.
``(2) Surface transportation research technology advisory
committee.--
``(A) Establishment.--Not later than 90 days after
the date of enactment of the Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of
2004, the Secretary shall establish a committee to be
known as the `Surface Transportation Research
Technology Advisory Committee' (referred to in this
section as the `Committee').
``(B) Membership.--The Committee shall be composed
of 12 members appointed by the Secretary--
``(i) each of which shall have expertise in
a particular area relating to Federal surface
transportation programs, including--
``(I) safety;
``(II) operations;
``(III) infrastructure (including
pavements and structures);
``(IV) planning and environment;
``(V) policy; and
``(VI) asset management; and
``(ii) of which--
``(I) 3 members shall be
individuals representing the Federal
Government;
``(II) 3 members--
``(aa) shall be
exceptionally qualified to
serve on the Committee, as
determined by the Secretary,
based on education, training,
and experience; and
``(bb) shall not be
officers or employees of the
United States;
``(III) 3 members--
``(aa) shall represent the
transportation industry
(including the pavement
industry); and
``(bb) shall not be
officers or employees of the
United States; and
``(IV) 3 members shall represent
State transportation departments from 3
different geographical regions of the
United States.
``(C) Meetings.--The advisory subcommittees shall
meet on a regular basis, but not less than twice each
year.
``(D) Duties.--The Committee shall provide to the
Secretary, on a continuous basis, advice and guidance
relating to--
``(i) the determination of surface
transportation research priorities;
``(ii) the improvement of the research
planning and implementation process;
``(iii) the design and selection of
research projects;
``(iv) the review of research results;
``(v) the planning and implementation of
technology transfer activities and
``(vi) the formulation of the surface
transportation research and technology
deployment and deployment strategic plan
required under subsection (c).
``(E) Authorization of appropriations.--There is
authorized to be appropriated from the Highway Trust
Fund (other than the Mass Transit Account) to carry out
this paragraph $200,000 for each fiscal year.
``(b) Implementation.--The Secretary shall--
``(1) provide for the integrated planning, coordination,
and consultation among the operating administrations of the
Department of Transportation, all other Federal agencies with
responsibility for surface transportation research and
technology development, State and local governments,
institutions of higher education, industry, and other private
and public sector organizations engaged in surface
transportation-related research and development activities; and
``(2) ensure that the surface transportation research and
technology development programs of the Department do not
duplicate other Federal, State, or private sector research and
development programs.
``(c) Surface Transportation Research and Technology Deployment
Strategic Plan.--
``(1) In general.--After receiving, and based on, extensive
consultation and input from stakeholders representing the
transportation community and the Surface Transportation
Research Advisory Committee, the Secretary shall, not later
than 1 year after the date of enactment of the Safe,
Accountable, Flexible, and Efficient Transportation Equity Act
of 2004, complete, and shall periodically update thereafter, a
strategic plan for each of the core surface transportation
research areas, including--
``(A) safety;
``(B) operations;
``(C) infrastructure (including pavements and
structures);
``(D) planning and environment;
``(E) policy; and
``(F) asset management.
``(2) Components.--The strategic plan shall specify--
``(A) surface transportation research objectives
and priorities;
``(B) specific surface transportation research
projects to be conducted;
``(C) recommended technology transfer activities to
promote the deployment of advances resulting from the
surface transportation research conducted; and
``(D) short- and long-term technology development
and deployment activities.
``(3) Review and submission of findings.--The Secretary
shall enter into a contract with the Transportation Research
Board of the National Academy of Sciences, on behalf of the
Research and Technology Coordinating Committee of the National
Research Council, under which--
``(A) the Transportation Research Board shall--
``(i) review the research and technology
planning and implementation process used by
Federal Highway Administration; and
``(ii) evaluate each of the strategic plans
prepared under this subsection--
``(I) to ensure that sufficient
stakeholder input is being solicited
and considered throughout the
preparation process; and
``(II) to offer recommendations
relevant to research priorities,
project selection, and deployment
strategies; and
``(B) the Secretary shall ensure that the Research
and Technology Coordinating Committee, in a timely
manner, informs the Committee on Environment and Public
Works of the Senate and the Committee on Transportation
and Infrastructure of the House of Representatives of
the findings of the review and evaluation under
subparagraph (A).
``(4) Responses of secretary.--Not later than 60 days after
the date of completion of the strategic plan under this
subsection, the Secretary shall submit to the Committee on
Environment and Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives written responses to each of the
recommendations of the Research and Technology Coordinating
Committee under paragraph (3)(A)(ii)(II).
``(d) Consistency With Government Performance and Results Act of
1993.--The plans and reports developed under this section shall be
consistent with and incorporated as part of the plans developed under
section 306 of title 5 and sections 1115 and 1116 of title 31.
``Sec. 509. New strategic highway research program
``(a) In General.--The National Research Council shall establish
and carry out, through fiscal year 2009, a new strategic highway
research program.
``(b) Basis; Priorities.--With respect to the program established
under subsection (a)--
``(1) the program shall be based on--
``(A) National Research Council Special Report No.
260, entitled `Strategic Highway Research'; and
``(B) the results of the detailed planning work
subsequently carried out to scope the research areas
through National Cooperative Research Program Project
20-58.
``(2) the scope and research priorities of the program
shall--
``(A) be refined through stakeholder input in the
form of workshops, symposia, and panels; and
``(B) include an examination of--
``(i) the roles of highway infrastructure,
drivers, and vehicles in fatalities on public
roads;
``(ii) high-risk areas and activities
associated with the greatest numbers of highway
fatalities;
``(iii) the roles of various levels of
government agencies and non-governmental
organizations in reducing highway fatalities
(including recommendations for methods of
strengthening highway safety partnerships);
``(iv) measures that may save the greatest
number of lives in the short- and long-term;
``(v) renewal of aging infrastructure with
minimum impact on users of facilities;
``(vi) driving behavior and likely crash
causal factors to support improved
countermeasures;
``(vii) reduction in congestion due to
nonrecurring congestion;
``(viii) planning and designing of new road
capacity to meet mobility, economic,
environmental, and community needs;
``(3) the program shall consider, at a minimum, the results
of studies relating to the implementation of the Strategic
Highway Safety Plan prepared by the American Association of
State Highway and Transportation Officials; and
``(4) the research results of the program, expressed in
terms of technologies, methodologies, and other appropriate
categorizations, shall be disseminated to practicing engineers
as soon as practicable for their use.
``(c) Program Administration.--In carrying out the program under
this section, the National Research Council shall ensure, to the
maximum extent practicable, that--
``(1) the best projects and researchers are selected to
conduct research for the program and priorities described in
subsection (b)--
``(A) on the basis of the merit of each submitted
proposal; and
``(B) through the use of open solicitations and
selection by a panel of appropriate experts;
``(2) the National Research Council acquires a qualified,
permanent core staff with the ability and expertise to manage a
large research program and multiyear budget;
``(3) the stakeholders are involved in the governance of
the program, at the executive, overall program, and technical
levels, through the use of expert panels and committees; and
``(4) there is no duplication of research effort between
the program established under this section and the surface
transportation-environment cooperative research program
established under section 507 or any other research effort of
the Department.
``(d) National Academy of Sciences.--The Secretary may make grants
to, and enter into cooperative agreements with, the National Academy of
Sciences to carry out such activities relating to research, technology,
and technology transfer described in subsections (b) and (c) as the
Secretary determines to be appropriate.
``(e) Report on Implementation of Results.--
``(1) In general.--Not later than October 1, 2007, the
Secretary shall enter into a contract with the Transportation
Research Board of the National Academy of Sciences under which
the Transportation Research Board shall complete a report on
the strategies and administrative structure to be used for
implementation of the results of new strategic highway research
program.
``(2) Components.--The report under paragraph (1) shall
include, with respect to the new strategic highway research
program--
``(A) an identification of the most promising
results of research under the program (including the
persons most likely to use the results);
``(B) a discussion of potential incentives for,
impediments to, and methods of, implementing those
results;
``(C) an estimate of costs that would be incurred
in expediting implementation of those results; and
``(D) recommendations for the way in which
implementation of the results of the program under this
section should be conducted, coordinated, and supported
in future years, including a discussion of the
administrative structure and organization best suited
to carry out those responsibilities.
``(3) Consultation.--In developing the report, the
Transportation Research Board shall consult with a wide variety
of stakeholders, including--
``(A) the American Association of State highway
Officials;
``(B) the Federal Highway Administration; and
``(C) the Surface Transportation Research
Technology Advisory Committee.
``(4) Submission.--Not later than February 1, 2009, the
Secretary shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Transportation
and Infrastructure of the House of Representatives the report
under this subsection.
``Sec. 510. University transportation centers
``(a) Centers.--
``(1) In general.--During fiscal year 2004, the Secretary
shall provide grants to 40 nonprofit institutions of higher
learning (or consortia of institutions of higher learning) to
establish centers to address transportation design, management,
research, development, and technology matters, especially the
education and training of greater numbers of individuals to
enter into the professional field of transportation.
``(2) Distribution of centers.--Not more than 1 university
transportation center (or lead university in a consortia of
institutions of higher learning), other than a center or
university selected through a competitive process, may be
located in any State.
``(3) Identification of centers.--The university
transportation centers established under this section shall--
``(A) comply with applicable requirements under
subsection (c); and
``(B) be located at the institutions of higher
learning specified in paragraph (4).
``(4) Identification of groups.--For the purpose of making
grants under this subsection, the following grants are
identified:
``(A) Group a.--Group A shall consist of the 10
regional centers selected under subsection (b).
``(B) Group b.--Group B shall consist of the
following:
``(i) [_________].
``(ii) [_________].
``(iii) [_________].
``(iv) [_________].
``(v) [_________].
``(vi) [_________].
``(vii) [_________].
``(viii) [_________]
``(ix) [_________].
``(x) [_________].
``(xi) [_________].
``(C) Group c.--Group C shall consist of the
following:
``(i) [_________].
``(ii) [_________].
``(iii) [_________].
``(iv) [_________].
``(v) [_________].
``(vi) [_________].
``(vii) [_________].
``(viii) [_________].
``(ix) [_________].
``(x) [_________].
``(xi) [_________].
``(D) Group d.--Group D shall consist of the
following:
``(i) [_________].
``(ii) [_________].
``(iii) [_________].
``(iv) [_________].
``(v) [_________].
``(vi) [_________].
``(vii) [_________].
``(viii) [_________].
``(b) Regional Centers.--
``(1) In general.--Not later than September 30, 2004, the
Secretary shall provide to nonprofit institutions of higher
learning (or consortia of institutions of higher learning)
grants to be used during the period of fiscal years 2005
through 2009 to establish and operate 1 university
transportation center in each of the 10 Federal regions that
comprise the Standard Federal Regional Boundary System.
``(2) Selection of regional centers.--
``(A) Proposals.--In order to be eligible to
receive a grant under this subsection, an institution
described in paragraph (1) shall submit to the
Secretary a proposal, in response to any request for
proposals that shall be made by the Secretary, that is
in such form and contains such information as the
Secretary shall prescribe.
``(B) Request schedule.--The Secretary shall
request proposals once for the period of fiscal years
2004 through 2006 and once for the period of fiscal
years 2007 through 2009.
``(C) Eligibility.--Any institution of higher
learning (or consortium of institutions of higher
learning) that meets the criteria described in
subsection (c) (including any institution identified in
subsection (a)(4)) may apply for a grant under this
subsection.
``(D) Selection criteria.--The Secretary shall
select each recipient of a grant under this subsection
through a competitive process on the basis of--
``(i) the location of the center within the
Federal region to be served;
``(ii) the demonstrated research
capabilities and extension resources available
to the recipient to carry out this section;
``(iii) the capability of the recipient to
provide leadership in making national and
regional contributions to the solution of
immediate and long-range transportation
problems;
``(iv) the demonstrated ability of the
recipient to disseminate results of
transportation research and education programs
through a statewide or regionwide continuing
education program; and
``(v) the strategic plan that the recipient
proposes to carry out using funds from the
grant.
``(E) Selection process.--In selecting the
recipients of grants under this subsection, the
Secretary shall consult with, and consider the advice
of--
``(i) the Research and Special Programs
Administration;
``(ii) the Federal Highway Administration;
and
``(iii) the Federal Transit Administration.
``(c) Center Requirements.--
``(1) In general.--With respect to a university
transportation center established under subsection (a) or (b),
the institution or consortium that receives a grant to
establish the center--
``(A) shall annually contribute at least $250,000
to the operation and maintenance of the center, except
that payment by the institution or consortium of the
salary required for transportation-related faculty and
staff for a period greater than 90 days may not be
counted against that contribution;
``(B) shall have established, as of the date of
receipt of the grant, undergraduate or graduate
programs in--
``(i) civil engineering;
``(ii) transportation engineering;
``(iii) transportation systems management
and operations; or
``(iv) any other field significantly
related to surface transportation systems, as
determined by the Secretary; and
``(C) not later than 120 days after the date on
which the institution or consortium receives notice of
selection as a site for the establishment of a
university transportation center under this section,
shall submit to the Secretary a 6-year program plan for
the university transportation center that includes,
with respect to the center--
``(i) a description of the purposes of
programs to be conducted by the center;
``(ii) a description of the undergraduate
and graduate transportation education efforts
to be carried out by the center;
``(iii) a description of the nature and
scope of research to be conducted by the
center;
``(iv) a list of personnel, including the
roles and responsibilities of those personnel
within the center; and
``(v) a detailed budget, including the
amount of contributions by the institution or
consortium to the center; and
``(D) shall establish an advisory committee that--
``(i) is composed of a representative from
each of the State transportation department of
the State in which the institution or
consortium is located, the Department of
Transportation, and the institution or
consortia, as appointed by those respective
entities;
``(ii) in accordance with paragraph (2),
shall review and approve or disapprove the plan
of the institution or consortium under
subparagraph (C); and
``(iii) shall, to the maximum extent
practicable, ensure that the proposed research
to be carried out by the university
transportation center will contribute to the
national highway research and technology
agenda, as periodically updated by the
Secretary, in consultation with stakeholders
representing the highway community.
``(2) Peer review.--
``(A) In general.--The Secretary shall require peer
review for each report on research carried out using
funds made available for this section.
``(B) Purposes of peer review.--Peer review of a
report under this section shall be carried out to
evaluate--
``(i) the relevance of the research
described in the report with respect to the
strategic plan under, and the goals of, this
section;
``(ii) the research covered by the report,
and to recommend modifications to individual
project plans;
``(iii) the results of the research before
publication of those results; and
``(iv) the overall outcomes of the
research.
``(C) Internet availability.--Each report under
this section that is received by the Secretary shall be
published--
``(i) by the Secretary, on the Internet
website of the Department of Transportation;
and
``(ii) by the University Transportation
Center.
``(3) Approval of plans--A plan of an institution or
consortium described in paragraph (1)(C) shall not be submitted
to the Secretary until such time as the advisory committee
established under paragraph (1)(D) reviews and approves the
plan.
``(4) Failure to comply.--If a recipient of a grant under
this subsection fails to submit a program plan acceptable to
the Secretary and in accordance with paragraph (1)(C)--
``(A) the recipient shall forfeit the grant and the
selection of the recipient as a site for the
establishment of a university transportation center;
and
``(B) the Secretary shall select a replacement
recipient for the forfeited grant.
``(5) Applicability.--This subsection does not apply to any
research funds received in accordance with a competitive
contract offered and entered into by the Federal Highway
Administration.
``(d) Objectives.--Each university transportation center
established under subsection (a) or (b) shall carry out--
``(1) undergraduate or graduate education programs that
include--
``(A) multidisciplinary coursework; and
``(B) opportunities for students to participate in
research;
``(2) basic and applied research, the results and products
of which shall be judged by peers or other experts in the field
so as to advance the body of knowledge in transportation; and
``(3) an ongoing program of technology transfer that makes
research results available to potential users in such form as
will enable the results to be implemented, used, or otherwise
applied.
``(e) Maintenance of Effort.--To be eligible to receive a grant
under this section, an applicant shall--
``(1) enter into an agreement with the Secretary to ensure
that the applicant will maintain total expenditures from all
other sources to establish and operate a university
transportation center and related educational and research
activities at a level that is at least equal to the average
level of those expenditures during the 2 fiscal years before
the date on which the grant is provided;
``(2) provide the annual institutional contribution
required under subsection (c)(1); and
``(3) submit to the Secretary, in a timely manner, for use
by the Secretary in the preparation of the annual research
report under section 508(c)(5) of title 23, an annual report on
the projects and activities of the university transportation
center for which funds are made available under section 2001 of
the Safe, Accountable, Flexible, and Efficient Transportation
Equity Act of 2004 that contains, at a minimum, for the fiscal
year covered by the report, a description of--
``(A) the goals of the center;
``(B) the educational activities carried out by the
center (including a detailed summary of the budget for
those educational activities);
``(C) teaching activities of faculty at the center;
``(D) each research project carried out by the
center, including--
``(i) the identity and location of each
investigator working on a research project;
``(ii) the overall funding amount for each
research project (including the amounts
expended for the project as of the date of the
report);
``(iii) the current schedule for each
research project; and
``(iv) the results of each research project
through the date of submission of the report,
with particular emphasis on results for the
fiscal year covered by the report; and
``(E) overall technology transfer and
implementation efforts of the center.
``(f) Program Coordination.--The Secretary shall--
``(1) coordinate the research, education, training, and
technology transfer activities carried out by recipients of
grants under this section; and
``(2) establish and operate a clearinghouse for, and
disseminate, the results of those activities.
``(g) Funding.--
``(1) Number and amount of grants.--The Secretary shall
make the following grants under this subsection:
``(A) Group a.--For each of fiscal years 2004
through 2009, the Secretary shall make a grant in the
amount of $20,000,000 to each of the institutions in
group A (as described in subsection (a)(4)(A)).
``(B) Group b.--The Secretary shall make a grant to
each of the institutions in group B (as described in
subsection (a)(4)(B)) in the amount of--
``(i) $4,000,000 for each of fiscal years
2004 and 2005; and
``(ii) $6,000,000 for each of fiscal years
2006 and 2007.
``(C) Group c.--For each of fiscal years 2004
through 2007, the Secretary shall make a grant in the
amount of $10,000,000 to each of the institutions in
group C (as described in subsection (a)(4)(C)).
``(D) Group d.--For each of fiscal years 2004
through 2009, the Secretary shall make a grant in the
amount of $25,000,000 to each of the institutions in
group D (as described in subsection (a)(4)(D)).
``(E) Limited grants for groups b and c.--For each
of fiscal years 2008 and 2009, of the institutions
classified in groups B and C (as described in
subsection (a)(4)(B)), the Secretary shall select and
make a grant in the amount of $10,000,000 to each of
not more than 15 institutions.
``(2) Use of funds--
``(A) In general.--Of the funds made available for
a fiscal year to a university transportation center
established under subsection (a) or (b)--
``(i) not less than $250,000 shall be used
to establish and maintain new faculty positions
for the teaching of undergraduate,
transportation-related courses;
``(ii) not more than $500,000 for the
fiscal year, or $1,000,000 in the aggregate,
may be used to construct or improve
transportation-related laboratory facilities;
and
``(iii) not more than $300,000 for the
fiscal year may be used for student internships
of not more than 180 days in duration to enable
students to gain experience by working on
transportation projects as interns with design
or construction firms.
``(B) Facilities and administration fee.--Not more
than 10 percent of any grant made available to a
university transportation center (or any institution or
consortium that establishes such a center) for a fiscal
year may be used to pay to the appropriate nonprofit
institution of higher learning any administration and
facilities fee (or any similar overhead fee) for the
fiscal year.
``(3) Limitation on availability of funds.--Funds made
available under this subsection shall remain available for
obligation for a period of 2 years after September 30 of the
fiscal year for which the funds are authorized.
``Sec. 511. Multistate corridor operations and management
``(a) In General.--The Secretary shall encourage multistate
cooperative agreements, coalitions, or other arrangements to promote
regional cooperation, planning, and shared project implementation for
programs and projects to improve transportation system management and
operations.
``(b) Interstate Route I-95 Corridor Coalition Transportation
Systems Management and Operations.--
``(1) In general.--The Secretary shall make grants under
this subsection to States to continue intelligent
transportation system management and operations in the
Interstate Route I-95 corridor coalition region initiated under
the Intermodal Surface Transportation Efficiency Act of 1991
(Public Law 102-240).
``(2) Funding.--Of the amounts made available under section
2001(a)(4) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, the Secretary shall use to
carry out this subsection--
``(A) $8,000,000 for fiscal year 2004;
``(B) $10,000,000 for fiscal year 2005;
``(C) $12,000,000 for fiscal year 2006;
``(D) $12,000,000 for fiscal year 2007;
``(E) $12,000,000 for fiscal year 2008; and
``(F) $12,000,000 for fiscal year 2009.
``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.''.
(b) Other University Funding.--No university (other than university
transportation centers specified in section 510 of title 23, United
States Code (as added by subsection (a)) shall receive funds made
available under section 2001 to carry out research unless the
university is selected to receive the funds--
(1) through a competitive process that incorporates merit-
based peer review; and
(2) based on a proposal submitted to the Secretary by the
university in response to a request for proposals issued by the
Secretary.
(c) Conforming Amendment.--Section 5505 of title 49, United States
Code, is repealed.
SEC. 2102. STUDY OF DATA COLLECTION AND STATISTICAL ANALYSIS EFFORTS.
(a) Definitions.--In this section:
(1) Administration.--The term ``Administration'' means the
Federal Highway Administration.
(2) Board.--The term ``Board'' means the Transportation
Research Board of the National Academy of Sciences.
(3) Bureau.--The term ``Bureau'' means the Bureau of
Transportation Statistics.
(4) Department.--The term ``Department'' means the
Department of Transportation.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(b) Priority Areas of Effort.--
(1) Statistical standards.--The Secretary shall direct the
Bureau to assume the role of the lead agency in working with
other agencies of the Department to establish, by not later the
date that is 1 year after the date of enactment of this Act,
statistical standards for the Department.
(2) Statistical analysis effort.--
(A) In general.--The Bureau shall provide to the
Secretary, on an annual basis, an overview of the level
of effort expended on statistical analyses by each
agency within the Department.
(B) Duty of agencies.--Each agency of the
Department shall provide to the Bureau such information
as the Bureau may require in carrying out subparagraph
(A).
(3) National security.--The Bureau shall--
(A) conduct a study of the ways in which
transportation statistics are and may be used for the
purpose of national security; and
(B) submit to the Transportation Security
Administration recommendations for means by which the
use of transportation statistics for the purpose of
national security may be improved.
(4) Modernization.--The Bureau shall develop new protocols
for adapting data collection and delivery efforts in existence
as of the date of enactment of this Act to deliver information
in a more timely and frequent fashion.
(c) Study.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall provide a grant to,
or enter into a cooperative agreement or contract with, the
Board for the conduct of a study of the data collection and
statistical analysis efforts of the Department with respect to
the modes of surface transportation for which funds are made
available under this Act.
(2) Purpose.--The purpose of the study shall be to provide
to the Department information for use by agencies of the
Department in providing to surface transportation agencies and
individuals engaged in the surface transportation field higher
quality, and more relevant and timely, data, statistical
analyses, and products.
(3) Content.--The study shall include--
(A) an examination and analysis of the efforts,
analyses, and products (with respect to usefulness and
policy relevance) of the Bureau as of the date of the
study, as compared with the duties of the Bureau
specified in subsections (c) through (f) of section 111
of title 49, United States Code;
(B) an examination and analysis of data collected
by, methods of data collection of, and analyses
performed by, agencies within the Department; and
(C) recommendations relating to--
(i) the future efforts of the Department in
the area of surface transportation with respect
to--
(I) types of data collected;
(II) methods of data collection;
(III) types of analyses performed;
and
(IV) products made available by the
Secretary to the transportation
community and Congress;
(ii) the means by which the Department may
cooperate with State transportation departments
to provide technical assistance in the use of
data collected by traffic operations centers;
and
(iii) duplication of efforts within the
Department, including ways in which--
(I) the duplication may be reduced
or eliminated; and
(II) each agency of the Department
may cooperate with, and complement the
efforts of, the others.
(4) Consultation.--In conducting the study, the Board shall
consult with such stakeholders, agencies, and other entities as
the Board considers to be appropriate.
(5) Report.--Not later than 1 year after the date on which
a grant is provided, or a cooperative agreement or contract is
entered into, for a study under paragraph (1)--
(A) the Board shall submit to the Secretary, the
Committee on Environment and Public Works of the
Senate, and the Committee on Transportation and
Infrastructure of the House of Representatives a final
report on the results of the study; and
(B) the results of the study shall be published--
(i) by the Secretary, on the Internet
website of the Department; and
(ii) by the Board, on the Internet website
of the Board.
(6) Implementation of results.--The Bureau shall, to the
maximum extent practicable, implement any recommendations made
with respect to the results of the study under this subsection.
(7) Compliance.--
(A) In general.--The Comptroller General of the
United States shall conduct a review of the study under
this subsection.
(B) Noncompliance.--If the Comptroller General of
the United States determines that the Bureau failed to
conduct the study under this subsection, the Bureau
shall be ineligible to receive funds from the Highway
Trust Fund until such time as the Bureau conducts the
study under this subsection.
(d) Conforming Amendments.--
(1) Section 111 of title 49, United States Code, is
amended--
(A) by redesignating subsection (k) as subsection
(m);
(B) by inserting after subsection (j) the
following:
``(k) Annual Report.--
``(1) In general.--For fiscal year 2005 and each fiscal
year thereafter, the Bureau shall prepare and submit to the
Secretary an annual report that--
``(A) describes progress made in responding to
study recommendations for the fiscal year; and
``(B) summarizes the activities and expenditure of
funds by the Bureau for the fiscal year.
``(2) Availability.--The Bureau shall--
``(A) make the report described in paragraph (1)
available to the public; and
``(B) publish the report on the Internet website of
the Bureau.
``(3) Combination of reports.--The report required under
paragraph (1) may be included in or combined with the
Transportation Statistics Annual Report required by subsection
(j).
``(l) Expenditure of Funds.--Funds from the Highway Trust Fund
(other than the Mass Transit Account) that are authorized to be
appropriated, and made available, in accordance with section 2001(a)(3)
of the Safe, Accountable, Flexible, and Efficient Transportation Equity
Act of 2004 shall be used only for the collection and statistical
analysis of information relating to surface transportation systems.'';
and
(C) in subsection (m) (as redesignated by
subparagraph (A)), by inserting ``surface
transportation'' after ``sale of''.
(2) The analysis for chapter 55 of title 49, United States
Code, is amended by striking the item relating to section 5505
and inserting the following:
``5505. University transportation centers.''.
SEC. 2103. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.
(a) Establishment.--The Secretary shall establish the centers for
surface transportation excellence described in subsection (b) to
promote high-quality outcomes in support of strategic national programs
and activities, including--
(1) the environment;
(2) operations;
(3) surface transportation safety;
(4) project finance; and
(5) asset management.
(b) Centers.--The centers for surface transportation excellence
referred to in subsection (a) are--
(1) a Center for Environmental Excellence to provide
technical assistance, information sharing of best practices,
and training in the use of tools and decision-making processes
to assist States in planning and delivering environmentally-
sound surface transportation projects;
(2) a Center for Operations Excellence to provide support
for an integrated and coordinated national program for
implementing operations in planning and management (including
standards development) for the transportation system in the
United States;
(3) a Center for Excellence in Surface Transportation
Safety to implement a program of support for State
transportation departments, including--
(A) the maintenance of an Internet site to provide
critical information on safety programs;
(B) the provision of technical assistance to
support a lead State transportation department for each
of the safety emphasis areas (as identified by the
Secretary); and
(C) the provision of training and education to
enhance knowledge of personnel of State transportation
departments in support of safety highway goals;
(4) a Center for Excellence in Project Finance--
(A) to provide support to State transportation
departments in the development of finance plans and
project oversight tools; and
(B) to develop and offer training in state-of-the-
art financing methods to advance projects and leverage
funds; and
(5) a Center for Excellence in Asset Management to develop
and conduct research, provide training and education, and
disseminate information on the benefits and tools for asset
management.
(c) Program Administration.--
(1) In general.--Before funds authorized under this section
for fiscal years 2005 through 2009 are obligated, the Secretary
shall review and approve a multiyear strategic plan to be
submitted by each of the centers.
(2) Timing.--The plan shall be submitted before the
beginning of fiscal year 2005 and, subsequently, shall be
annually updated.
(3) Content.--The plan shall include--
(A) a list of research and technical assistance
projects and objectives; and
(B) a description of any other technology transfer
activities, including a summary of training efforts.
(4) Cooperation and competition.--
(A) In general.--The Secretary shall carry out this
section by making grants to, or entering into
contracts, cooperative agreements, and other
transactions with--
(i) the National Academy of Sciences;
(ii) the American Association of State
Highway and Transportation Officials;
(iii) planning organizations;
(iv) a Federal laboratory;
(v) a State agency;
(vi) an authority, association,
institution, or organization; or
(vii) a for-profit or nonprofit
corporation.
(B) Competition; review.--All parties entering into
contracts, cooperative agreements, or other
transactions with the Secretary, or receiving grants,
to perform research or provide technical assistance
under this section shall be selected, to the maximum
extent practicable--
(i) on a competitive basis; and
(ii) on the basis of the results of peer
review of proposals submitted to the Secretary.
(5) Nonduplication.--The Secretary shall ensure that
activities conducted by each of the centers do not duplicate,
and to the maximum extent practicable, are integrated and
coordinated with similar activities conducted by the Federal
Highway Administration, the local technical assistance program,
university transportation centers, and other research efforts
supported with funds authorized by this title.
(d) Allocations.--
(1) In general.--For each of fiscal years 2004 through
2009, of the funds made available under section 2001(a)(1)(A),
the Secretary shall set aside $10,000,000 to carry out this
section.
(2) Allocation of funds.--Of the funds made available under
paragraph (1)--
(A) 20 percent shall be allocated to the Center for
Environmental Excellence established under subsection
(b)(1);
(B) 30 percent shall be allocated to the Center for
Operations Excellence established under subsection
(b)(2);
(C) 20 percent shall be allocated to the Center for
Excellence in Surface Transportation Safety established
under subsection (b)(3);
(D) 10 percent shall be allocated to the Center for
Excellence in Project Finance established under
subsection (b)(4); and
(E) 20 percent shall be allocated to the Center for
Excellence in Asset Management established under
subsection (b)(5).
(3) Applicability of title 23.--Funds made available under
this section shall be available for obligation in the same
manner as if the funds were apportioned under chapter 1 of
title 23, United States Code, except that the Federal share
shall be 100 percent.
SEC. 2104. MOTORCYCLE CRASH CAUSATION STUDY GRANTS.
(a) Grants.--The Secretary shall provide grants for the purpose of
conducting a comprehensive, in-depth motorcycle crash causation study
that employs the common international methodology for in-depth
motorcycle accident investigation of the Organization for Economic
Cooperation and Development.
(b) Funding.--Of the amounts made available under section
2001(a)(3), $1,500,000 for each of fiscal years 2004 and 2005 shall be
available to carry out this section.
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).
Subtitle C--Intelligent Transportation System Research
SEC. 2201. INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND TECHNICAL
ASSISTANCE PROGRAM.
(a) In General.--Chapter 5 of title 23, United States Code (as
amended by section 2101), is amended by adding at the end the
following:
``SUBCHAPTER II--INTELLIGENT TRANSPORTATION SYSTEM RESEARCH AND
TECHNICAL ASSISTANCE PROGRAM
``Sec. 521. Finding
``Congress finds that continued investment in architecture and
standards development, research, technical assistance for State and
local governments, and systems integration is needed to accelerate the
rate at which intelligent transportation systems--
``(1) are incorporated into the national surface
transportation network; and
``(2) as a result of that incorporation, improve
transportation safety and efficiency and reduce costs and
negative impacts on communities and the environment.
``Sec. 522. Goals and purposes
``(a) Goals.--The goals of the intelligent transportation system
research and technical assistance program include--
``(1) enhancement of surface transportation efficiency and
facilitation of intermodalism and international trade--
``(A) to meet a significant portion of future
transportation needs, including public access to
employment, goods, and services; and
``(B) to reduce regulatory, financial, and other
transaction costs to public agencies and system users;
``(2) the acceleration of the use of intelligent
transportation systems to assist in the achievement of national
transportation safety goals, including the enhancement of safe
operation of motor vehicles and nonmotorized vehicles, with
particular emphasis on decreasing the number and severity of
collisions;
``(3) protection and enhancement of the natural environment
and communities affected by surface transportation, with
particular emphasis on assisting State and local governments in
achieving national environmental goals;
``(4) accommodation of the needs of all users of surface
transportation systems, including--
``(A) operators of commercial vehicles, passenger
vehicles, and motorcycles;
``(B) users of public transportation users (with
respect to intelligent transportation system user
services); and
``(C) individuals with disabilities; and
``(5)(A) improvement of the ability of the United States to
respond to emergencies and natural disasters; and
``(B) enhancement of national security and defense
mobility.
``(b) Purposes.--The Secretary shall carry out activities under the
intelligent transportation system research and technical assistance
program to, at a minimum--
``(1) assist in the development of intelligent
transportation system technologies;
``(2) ensure that Federal, State, and local transportation
officials have adequate knowledge of intelligent transportation
systems for full consideration in the transportation planning
process;
``(3) improve regional cooperation, interoperability, and
operations for effective intelligent transportation system
performance;
``(4) promote the innovative use of private resources;
``(5) assist State transportation departments in developing
a workforce capable of developing, operating, and maintaining
intelligent transportation systems;
``(6) maintain an updated national ITS architecture and
consensus-based standards while ensuring an effective Federal
presence in the formulation of domestic and international ITS
standards;
``(7) advance commercial vehicle operations components of
intelligent transportation systems--
``(A) to improve the safety and productivity of
commercial vehicles and drivers; and
``(B) to reduce costs associated with commercial
vehicle operations and Federal and State commercial
vehicle regulatory requirements;
``(8) evaluate costs and benefits of intelligent
transportation systems projects;
``(9) improve, as part of the Archived Data User Service
and in cooperation with the Bureau of Transportation
Statistics, the collection of surface transportation system
condition and performance data through the use of intelligent
transportation system technologies; and
``(10) ensure access to transportation information and
services by travelers of all ages.
``Sec. 523. Definitions
``In this subchapter:
``(1) Commercial vehicle information systems and
networks.--The term `commercial vehicle information systems and
networks' means the information systems and communications
networks that support commercial vehicle operations.
``(2) Commercial vehicle operations.--
``(A) In general.--The term `commercial vehicle
operations' means motor carrier operations and motor
vehicle regulatory activities associated with the
commercial movement of goods (including hazardous
materials) and passengers.
``(B) Inclusions.--The term `commercial vehicle
operations', with respect to the public sector,
includes--
``(i) the issuance of operating
credentials;
``(ii) the administration of motor vehicle
and fuel taxes; and
``(iii) roadside safety and border crossing
inspection and regulatory compliance
operations.
``(3) Intelligent transportation infrastructure.--The term
`intelligent transportation infrastructure' means fully
integrated public sector intelligent transportation system
components, as defined by the Secretary.
``(4) Intelligent transportation system.--The term
`intelligent transportation system' means electronics,
communications, or information processing used singly or in
combination to improve the efficiency or safety of a surface
transportation system.
``(5) National its architecture.--The term `national ITS
architecture' means the common framework for interoperability
adopted by the Secretary that defines--
``(A) the functions associated with intelligent
transportation system user services;
``(B) the physical entities or subsystems within
which the functions reside;
``(C) the data interfaces and information flows
between physical subsystems; and
``(D) the communications requirements associated
with the information flows.
``(6) Standard.--The term `standard' means a document
that--
``(A) contains technical specifications or other
precise criteria for intelligent transportation systems
that are to be used consistently as rules, guidelines,
or definitions of characteristics so as to ensure that
materials, products, processes, and services are fit
for their purposes; and
``(B) may--
``(i) support the national ITS
architecture; and
``(ii) promote--
``(I) the widespread use and
adoption of intelligent transportation
system technology as a component of the
surface transportation systems of the
United States; and
``(II) interoperability among
intelligent transportation system
technologies implemented throughout the
States.
``Sec. 524. General authorities and requirements
``(a) Scope.--Subject to this subchapter, the Secretary shall carry
out an ongoing intelligent transportation system research program--
``(1) to research, develop, and operationally test
intelligent transportation systems; and
``(2) to provide technical assistance in the nationwide
application of those systems as a component of the surface
transportation systems of the United States.
``(b) Policy.--Intelligent transportation system operational tests
and projects funded under this subchapter shall encourage, but not
displace, public-private partnerships or private sector investment in
those tests and projects.
``(c) Cooperation With Governmental, Private, and Educational
Entities.--The Secretary shall carry out the intelligent transportation
system research and technical assistance program in cooperation with--
``(1) State and local governments and other public
entities;
``(2) the private sector;
``(3) Federal laboratories (as defined in section 501); and
``(4) colleges and universities, including historically
black colleges and universities and other minority institutions
of higher education.
``(d) Consultation With Federal Officials.--In carrying out the
intelligent transportation system research program, the Secretary, as
appropriate, shall consult with--
``(1) the Secretary of Commerce;
``(2) the Secretary of the Treasury;
``(3) the Administrator of the Environmental Protection
Agency;
``(4) the Director of the National Science Foundation; and
``(5) the Secretary of Homeland Security.
``(e) Technical Assistance, Training, and Information.--The
Secretary may provide technical assistance, training, and information
to State and local governments seeking to implement, operate, maintain,
or evaluate intelligent transportation system technologies and
services.
``(f) Transportation Planning.--The Secretary may provide funding
to support adequate consideration of transportation system management
and operations (including intelligent transportation systems) within
metropolitan and statewide transportation planning processes.
``(g) Information Clearinghouse.--The Secretary shall--
``(1) maintain a repository for technical and safety data
collected as a result of federally sponsored projects carried
out under this subchapter; and
``(2) on request, make that information (except for
proprietary information and data) readily available to all
users of the repository at an appropriate cost.
``(h) Advisory Committees.--
``(1) In general.--In carrying out this subchapter, the
Secretary--
``(A) may use 1 or more advisory committees; and
``(B) shall designate a public-private
organization, the members of which participate in on-
going research, planning, standards development,
deployment, and marketing of ITS programs, products,
and services, and coordinate the development and
deployment of intelligent transportation systems in the
United States, as the Federal advisory committee
authorized by section 5204(h) of the Transportation
Equity Act for the 21st Century (112 Stat. 454).
``(2) Funding.--Of the amount made available to carry out
this subchapter, the Secretary may use $1,500,000 for each
fiscal year for advisory committees described in paragraph (1).
``(3) Applicability of federal advisory committee act.--Any
advisory committee described in paragraph (1) shall be subject
to the Federal Advisory Committee Act (5 U.S.C. App.).
``(i) Procurement Methods.--The Secretary shall develop and provide
appropriate technical assistance and guidance to assist State and local
agencies in evaluating and selecting appropriate methods of deployment
and procurement for intelligent transportation system projects carried
out using funds made available from the Highway Trust Fund, including
innovative and nontraditional methods such as Information Technology
Omnibus Procurement (as developed by the Secretary).
``(j) Evaluations.--
``(1) Guidelines and requirements.--
``(A) In general.--The Secretary shall issue
revised guidelines and requirements for the evaluation
of operational tests and other intelligent
transportation system projects carried out under this
subchapter.
``(B) Objectivity and independence.--The guidelines
and requirements issued under subparagraph (A) shall
include provisions to ensure the objectivity and
independence of the evaluator so as to avoid any real
or apparent conflict of interest or potential influence
on the outcome by--
``(i) parties to any such test; or
``(ii) any other formal evaluation carried
out under this subchapter.
``(C) Funding.--The guidelines and requirements
issued under subparagraph (A) shall establish
evaluation funding levels based on the size and scope
of each test that ensure adequate evaluation of the
results of the test or project.
``(2) Special rule.--Any survey, questionnaire, or
interview that the Secretary considers necessary to carry out
the evaluation of any test or program assessment activity under
this subchapter shall not be subject to chapter 35 of title 44.
``Sec. 525. National ITS Program Plan
``(a) In General.--
``(1) Updates.--Not later than 1 year after the date of
enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004, the Secretary, in
consultation with interested stakeholders (including State
transportation departments) shall develop a 5-year National ITS
Program Plan.
``(2) Scope.--The National ITS Program Plan shall--
``(A) specify the goals, objectives, and milestones
for the research and deployment of intelligent
transportation systems in the contexts of--
``(i) major metropolitan areas;
``(ii) smaller metropolitan and rural
areas; and
``(iii) commercial vehicle operations;
``(B) specify the manner in which specific programs
and projects will achieve the goals, objectives, and
milestones referred to in subparagraph (A), including
consideration of a 5-year timeframe for the goals and
objectives;
``(C) identify activities that provide for the
dynamic development, testing, and necessary revision of
standards and protocols to promote and ensure
interoperability in the implementation of intelligent
transportation system technologies, including actions
taken to establish standards; and
``(D) establish a cooperative process with State
and local governments for--
``(i) determining desired surface
transportation system performance levels; and
``(ii) developing plans for accelerating
the incorporation of specific intelligent
transportation system capabilities into surface
transportation systems.
``(b) Reporting.--The National ITS Program Plan shall be
transmitted and biennially updated as part of the surface
transportation research and technology development strategic plan
developed under section 508(c).
``Sec. 526. National ITS architecture and standards
``(a) In General.--
``(1) Development, implementation, and maintenance.--In
accordance with section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110
Stat. 783), the Secretary shall develop, implement, and
maintain a national ITS architecture and supporting standards
and protocols to promote the widespread use and evaluation of
intelligent transportation system technology as a component of
the surface transportation systems of the United States.
``(2) Interoperability and efficiency.--To the maximum
extent practicable, the national ITS architecture shall promote
interoperability among, and efficiency of, intelligent
transportation system technologies implemented throughout the
United States.
``(3) Use of standards development organizations.--In
carrying out this section, the Secretary shall use the services
of such standards development organizations as the Secretary
determines to be appropriate.
``(b) Provisional Standards.--
``(1) In general.--If the Secretary finds that the
development or selection of an intelligent transportation
system standard jeopardizes the timely achievement of the
objectives identified in subsection (a), the Secretary may
establish a provisional standard--
``(A) after consultation with affected parties; and
``(B) by using, to the maximum extent practicable,
the work product of appropriate standards development
organizations.
``(2) Critical standards.--If a standard identified by the
Secretary as critical has not been adopted and published by the
appropriate standards development organization by the date of
enactment of this subchapter, the Secretary shall establish a
provisional standard--
``(A) after consultation with affected parties; and
``(B) by using, to the maximum extent practicable,
the work product of appropriate standards development
organizations.
``(3) Period of effectiveness.--A provisional standard
established under paragraph (1) or (2) shall--
``(A) be published in the Federal Register; and
``(B) remain in effect until such time as the
appropriate standards development organization adopts
and publishes a standard.
``(c) Waiver of Requirement To Establish Provisional Critical
Standard.--
``(1) In general.--The Secretary may waive the requirement
under subsection (b)(2) to establish a provisional standard if
the Secretary determines that additional time would be
productive in, or that establishment of a provisional standard
would be counterproductive to, the timely achievement of the
objectives identified in subsection (a).
``(2) Notice.--The Secretary shall publish in the Federal
Register a notice that describes--
``(A) each standard for which a waiver of the
provisional standard requirement is granted under
paragraph (1);
``(B) the reasons for and effects of granting the
waiver; and
``(C) an estimate as to the date on which the
standard is expected to be adopted through a process
consistent with section 12(d) of the National
Technology Transfer and Advancement Act of 1995 (15
U.S.C. 272 note; 110 Stat. 783).
``(3) Withdrawal of waiver.--
``(A) In general.--The Secretary may withdraw a
waiver granted under paragraph (1) at any time.
``(B) Notice.--On withdrawal of a waiver, the
Secretary shall publish in the Federal Register a
notice that describes--
``(i) each standard for which the waiver
has been withdrawn; and
``(ii) the reasons for withdrawing the
waiver.
``(d) Conformity With National ITS Architecture.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the Secretary shall ensure that intelligent transportation
system projects carried out using funds made available from the
Highway Trust Fund conform to the national ITS architecture,
applicable standards or provisional standards, and protocols
developed under subsection (a).
``(2) Discretion of secretary.--The Secretary may authorize
exceptions to paragraph (1) for projects designed to achieve
specific research objectives outlined in--
``(A) the National ITS Program Plan under section
525; or
``(B) the surface transportation research and
technology development strategic plan developed under
section 508(c).
``(3) Exceptions.--Paragraph (1) shall not apply to funds
used for operation or maintenance of an intelligent
transportation system in existence on the date of enactment of
this subchapter.
``Sec. 527. Commercial vehicle information systems and networks
deployment
``(a) Definitions.--In this section:
``(1) Commercial vehicle information systems and
networks.--The term `commercial vehicle information systems and
networks' means the information systems and communications
networks that provide the capability to--
``(A) improve the safety of commercial vehicle
operations;
``(B) increase the efficiency of regulatory
inspection processes to reduce administrative burdens
by advancing technology to facilitate inspections and
increase the effectiveness of enforcement efforts;
``(C) advance electronic processing of registration
information, driver licensing information, fuel tax
information, inspection and crash data, and other
safety information;
``(D) enhance the safe passage of commercial
vehicles across the United States and across
international borders; and
``(E) promote the communication of information
among the States and encourage multistate cooperation
and corridor development.
``(2) Commercial vehicle operations.--
``(A) In general.--The term `commercial vehicle
operations' means motor carrier operations and motor
vehicle regulatory activities associated with the
commercial movement of goods (including hazardous
materials) and passengers.
``(B) Inclusions.--The term `commercial vehicle
operations', with respect to the public sector,
includes--
``(i) the issuance of operating
credentials;
``(ii) the administration of motor vehicle
and fuel taxes; and
``(iii) the administration of roadside
safety and border crossing inspection and
regulatory compliance operations.
``(3) Core deployment.--The term `core deployment' means
the deployment of systems in a State necessary to provide the
State with--
``(A) safety information exchange to--
``(i) electronically collect and transmit
commercial vehicle and driver inspection data
at a majority of inspection sites;
``(ii) connect to the Safety and Fitness
Electronic Records system for access to--
``(I) interstate carrier and
commercial vehicle data;
``(II) summaries of past safety
performance; and
``(III) commercial vehicle
credentials information; and
``(iii) exchange carrier data and
commercial vehicle safety and credentials
information within the State and connect to
Safety and Fitness Electronic Records system
for access to interstate carrier and commercial
vehicle data;
``(B) interstate credentials administration to--
``(i)(I) perform end-to-end (including
carrier application) jurisdiction application
processing, and credential issuance, of at
least the International Registration Plan and
International Fuel Tax Agreement credentials;
and
``(II) extend the processing to other
credentials, including intrastate, titling,
oversize or overweight requirements, carrier
registration, and hazardous materials;
``(ii) connect to the International
Registration Plan and International Fuel Tax
Agreement clearinghouses; and
``(iii)(I) have at least 10 percent of the
transaction volume handled electronically; and
``(II) have the capability to add more
carriers and to extend to branch offices where
applicable; and
``(C) roadside electronic screening to
electronically screen transponder-equipped commercial
vehicles at a minimum of 1 fixed or mobile inspection
site and to replicate the screening at other sites.
``(4) Expanded deployment.--The term `expanded deployment'
means the deployment of systems in a State that--
``(A) exceed the requirements of a core deployment
of commercial vehicle information systems and networks;
``(B) improve safety and the productivity of
commercial vehicle operations; and
``(C) enhance transportation security.
``(b) Program.--The Secretary shall carry out a commercial vehicle
information systems and networks program to--
``(1) improve the safety and productivity of commercial
vehicles and drivers; and
``(2) reduce costs associated with commercial vehicle
operations and Federal and State commercial vehicle regulatory
requirements.
``(c) Purpose.--It is the purpose of the program to advance the
technological capability and promote the deployment of intelligent
transportation system applications for commercial vehicle operations,
including commercial vehicle, commercial driver, and carrier-specific
information systems and networks.
``(d) Core Deployment Grants.--
``(1) In general.--The Secretary shall make grants to
eligible States for the core deployment of commercial vehicle
information systems and networks.
``(2) Eligibility.--To be eligible for a core deployment
grant under this subsection, a State shall--
``(A) have a commercial vehicle information systems
and networks program plan and a top level system design
approved by the Secretary;
``(B) certify to the Secretary that the commercial
vehicle information systems and networks deployment
activities of the State (including hardware
procurement, software and system development, and
infrastructure modifications)--
``(i) are consistent with the national
intelligent transportation systems and
commercial vehicle information systems and
networks architectures and available standards;
and
``(ii) promote interoperability and
efficiency, to the maximum extent practicable;
and
``(C) agree to execute interoperability tests
developed by the Federal Motor Carrier Safety
Administration to verify that the systems of the State
conform with the national intelligent transportation
systems architecture, applicable standards, and
protocols for commercial vehicle information systems
and networks.
``(3) Amount of grants.--The maximum aggregate amount a
State may receive under this subsection for the core deployment
of commercial vehicle information systems and networks may not
exceed $2,500,000, including funds received under section
2001(a) of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 for the core deployment of
commercial vehicle information systems and networks.
``(4) Use of funds.--
``(A) In general.--Subject to subparagraph (B),
funds from a grant under this subsection may only be
used for the core deployment of commercial vehicle
information systems and networks.
``(B) Remaining funds.--An eligible State that has
completed the core deployment of commercial vehicle
information systems and networks, or completed the
deployment before core deployment grant funds are
expended, may use the remaining core deployment grant
funds for the expanded deployment of commercial vehicle
information systems and networks in the State.
``(e) Expanded Deployment Grants.--
``(1) In general.--For each fiscal year, from the funds
remaining after the Secretary has made core deployment grants
under subsection (d), the Secretary may make grants to each
eligible State, on request, for the expanded deployment of
commercial vehicle information systems and networks.
``(2) Eligibility.--Each State that has completed the core
deployment of commercial vehicle information systems and
networks shall be eligible for an expanded deployment grant.
``(3) Amount of grants.--Each fiscal year, the Secretary
may distribute funds available for expanded deployment grants
equally among the eligible States in an amount that does not
exceed $1,000,000 for each State.
``(4) Use of funds.--A State may use funds from a grant
under this subsection only for the expanded deployment of
commercial vehicle information systems and networks.
``(f) Federal Share.--The Federal share of the cost of a project
payable from funds made available to carry out this section shall be
the share applicable under section 120(b), as adjusted under subsection
(d) of that section.
``(g) Funding.--Funds authorized to be appropriated to carry out
this section shall be available for obligation in the same manner and
to the same extent as if the funds were apportioned under chapter 1,
except that the funds shall remain available until expended.
``Sec. 528. Research and development
``(a) In General.--The Secretary shall carry out a comprehensive
program of intelligent transportation system research, development, and
operational tests of intelligent vehicles and intelligent
infrastructure systems, and other similar activities that are necessary
to carry out this subchapter.
``(b) Priority Areas.--Under the program, the Secretary shall give
priority to funding projects that--
``(1) assist in the development of an interconnected
national intelligent transportation system network that--
``(A) improves the reliability of the surface
transportation system;
``(B) supports national security;
``(C) reduces, by at least 20 percent, the cost of
manufacturing, deploying, and operating intelligent
transportation systems network components;
``(D) could assist in deployment of the Armed
Forces in response to a crisis; and
``(E) improves response to, and evacuation of the
public during, an emergency situation;
``(2) address traffic management, incident management,
transit management, toll collection traveler information, or
highway operations systems with goals of--
``(A) reducing metropolitan congestion by 5 percent
by 2010;
``(B) ensuring that a national, interoperable 511
system, along with a national traffic information
system that includes a user-friendly, comprehensive
website, is fully implemented for use by travelers
throughout the United States by September 30, 2010; and
``(C)(i) improving incident management response,
particularly in rural areas, so that rural emergency
response times are reduced by an average of 10 minutes;
and
``(ii) subject to subsection (d), improving
communication between emergency care providers and
trauma centers;
``(3) address traffic management, incident management,
transit management, toll collection, traveler information, or
highway operations systems;
``(4) conduct operational tests of the integration of at
least 3 crash-avoidance technologies in passenger vehicles;
``(5) incorporate human factors research, including the
science of the driving process;
``(6) facilitate the integration of intelligent
infrastructure, vehicle, and control technologies;
``(7) incorporate research on the impact of environmental,
weather, and natural conditions on intelligent transportation
systems, including the effects of cold climates;
``(8) as determined by the Secretary, will improve the
overall safety performance of vehicles and roadways, including
the use of real-time setting of speed limits through the use of
speed management technology;
``(9) examine--
``(A) the application to intelligent transportation
systems of appropriately modified existing technologies
from other industries; and
``(B) the development of new, more robust
intelligent transportation systems technologies and
instrumentation;
``(10) develop and test communication technologies that--
``(A) are based on an assessment of the needs of
officers participating in a motor carrier safety
program funded under section 31104 of title 49;
``(B) take into account the effectiveness and
adequacy of available technology;
``(C) address systems integration, connectivity,
and interoperability challenges; and
``(D) provide the means for officers participating
in a motor carrier safety program funded under section
31104 of title 49 to directly assess, without an
intermediary, current and accurate safety and
regulatory information on motor carriers, commercial
motor vehicles and drivers at roadside or mobile
inspection facilities;
``(11) enhance intermodal use of intelligent transportation
systems for diverse groups, including for emergency and health-
related services;
``(12) improve sensing and wireless communications that
provide real-time information regarding congestion and
incidents;
``(13) develop and test high-accuracy, lane-level, real-
time accessible digital map architectures that can be used by
intelligent vehicles and intelligent infrastructure elements to
facilitate safety and crash avoidance (including establishment
of national standards for an open-architecture digital map of
all public roads that is compatible with electronic 9-1-1
services);
``(14) encourage the dual-use of intelligent transportation
system technologies (such as wireless communications) for--
``(A) emergency services;
``(B) road pricing; and
``(C) local economic development; and
``(15) advance the use of intelligent transportation
systems to facilitate high-performance transportation systems,
such as through--
``(A) congestion-pricing;
``(B) real-time facility management;
``(C) rapid-emergency response; and
``(D) just-in-time transit.
``(c) Operational Tests.--Operational tests conducted under this
section shall be designed for--
``(1) the collection of data to permit objective evaluation
of the results of the tests;
``(2) the derivation of cost-benefit information that is
useful to others contemplating deployment of similar systems;
and
``(3) the development and implementation of standards.
``(d) Federal Share.--The Federal share of the costs of operational
tests under subsection (a) shall not exceed 80 percent.
``Sec. 529. Use of funds
``(a) In General.--For each fiscal year, not more than $5,000,000
of the funds made available to carry out this subchapter shall be used
for intelligent transportation system outreach, public relations,
displays, tours, and brochures.
``(b) Applicability.--Subsection (a) shall not apply to intelligent
transportation system training, scholarships, or the publication or
distribution of research findings, technical guidance, or similar
documents.''.
(b) Conforming Amendment.--Title V of the Transportation Equity Act
for the 21st Century is amended by striking subtitle C (23 U.S.C. 502
note; 112 Stat. 452).
TITLE III--PUBLIC TRANSPORTATION
SEC. 3001. SHORT TITLE.
This title may be cited as the ``Federal Public Transportation Act
of 2004''.
SEC. 3002. AMENDMENTS TO TITLE 49, UNITED STATES CODE; UPDATED
TERMINOLOGY.
(a) Amendments to Title 49.--Except as otherwise specifically
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision of
law, the reference shall be considered to be made to a section or other
provision of title 49, United States Code.
(b) Updated Terminology.--Except for sections 5301(f), 5302(a)(7),
and 5315, chapter 53, including the chapter analysis, is amended by
striking ``mass transportation'' each place it appears and inserting
``public transportation''.
SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.
(a) Development and Revitalization of Public Transportation
Systems.--Section 5301(a) is amended to read as follows:
``(a) Development and Revitalization of Public Transportation
Systems.--It is in the economic interest of the United States to foster
the development and revitalization of public transportation systems,
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 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 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.
``(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 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.
``(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 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 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;
``(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--
``(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
``(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 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 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, 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.
``(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.''.
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--
(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)''.
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 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;
``(ii) $3,900,000 in fiscal year 2006;
``(iii) $4,200,000 in fiscal year 2007;
``(iv) $4,600,000 in fiscal year 2008; and
``(v) $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 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 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 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.
``5573. Assurance of access to intermodal facilities.
``5574. Intercity bus intermodal facility grants.
``5575. Funding.''.
TITLE IV--SURFACE TRANSPORTATION SAFETY
SEC. 4001. SHORT TITLE.
This title may be cited as the ``Surface Transportation Safety
Reauthorization Act of 2004''.
Subtitle A--Highway Safety
PART I--HIGHWAY SAFETY GRANT PROGRAM
SEC. 4101. SHORT TITLE; AMENDMENT OF TITLE 23, UNITED STATES CODE.
(a) Short Title.--This subpart may be cited as the ``Highway Safety
Grant Program Reauthorization Act of 2004''.
(b) Amendment of Title 23, United States Code.--Except as otherwise
expressly provided, whenever in this subpart an amendment or repeal is
expressed in terms of an amendment to, or a repeal of, a section or
other provision, the reference shall be considered to be made to a
section or other provision of title 23, United States Code.
SEC. 4102. AUTHORIZATION OF APPROPRIATIONS.
(a) Amounts for Fiscal Years 2004 Through 2009.--There are
authorized to be appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to the Secretary of Transportation for the
National Highway Traffic Safety Administration the following:
(1) To carry out the Highway Safety Programs under section
402 of title 23, United States Code, $170,000,000 in fiscal
year 2004, $174,000,000 in fiscal year 2005, $179,000,000 in
fiscal year 2006, $185,000,000 in fiscal year 2007,
$204,000,000 in fiscal year 2008, and $207,000,000 in fiscal
year 2009.
(2) To carry out the Highway Safety Research and Outreach
Programs under section 403 of title 23, United States Code,
$110,000,000 in fiscal year 2004, $112,000,000 in fiscal year
2005, $114,000,000 in fiscal year 2006, $116,000,000 in fiscal
year 2007, $118,000,000 in fiscal year 2008, and $120,000,000
in fiscal year 2009.
(3) To carry out the Occupant Protection Programs under
section 405 of title 23, United States Code, $120,000,000 in
fiscal year 2004, $122,000,000 in fiscal year 2005,
$124,000,000 in fiscal year 2006, $126,000,000 in fiscal year
2007, $128,000,000 in fiscal year 2008, and $130,000,000 in
fiscal year 2009.
(4) To carry out the Emergency Medical Services Program
under section 407A of title 23, United States Code, $5,000,000
in each of fiscal years 2004 through 2009.
(5) To carry out the Impaired Driving Program under section
410 of title 23, United States Code, $85,000,000 in fiscal year
2004, $89,000,000 in fiscal year 2005, $93,000,000 in fiscal
year 2006, $110,000,000 in fiscal year 2007, $126,000,000 in
fiscal year 2008, and $130,000,000 in fiscal year 2009.
(6) To carry out the State Traffic Safety Information
System Improvements under section 412 of title 23, United
States Code, $45,000,000 in each of fiscal years 2004 through
2009.
(7) To carry out chapter 303 of title 49, United States
Code, $4,000,000 for each of fiscal years 2004 through 2009.
(b) Prohibition on Other Uses.--Except as otherwise provided in
this subtitle, the amounts allocated from the Highway Trust Fund for
programs provided for in chapter 4 of title 23, United States Code,
shall only be used for such programs and may not be used by States or
local governments for construction purposes.
(c) Effect of Revenue Deficiency.--If revenue to the Highway Trust
Fund for a given fiscal year is lower than the amounts authorized by
this subpart, any subsequent reductions in the overall funding for
highway and transit programs shall not affect the highway safety
programs provided for in chapter 4 of title 23, United States Code.
(d) Proportional Increases.--For each fiscal year from 2004 through
2009, if revenue to the Highway Trust Fund increases above the amounts
for each such fiscal year set forth in the fiscal year 2004 joint
budget resolution, then the amounts made available in such year for the
programs in sections 402, 405, and 410 shall increase by the same
percentage.
SEC. 4103. HIGHWAY SAFETY PROGRAMS.
(a) Programs To Be Included.--
(1) Motor vehicle airbags public awareness.--Section
402(a)(2) is amended by striking`` vehicles and to increase
public awareness of the benefit of motor vehicles equipped with
airbags'' and inserting ``vehicles,''.
(2) Agressive driving.--Section 402(a) is further amended--
(A) by redesignating clause (6) as clause (8);
(B) by inserting after ``involving school buses,''
at the end of clause (5) the following: ``(6) to reduce
aggressive driving and to educate drivers about
defensive driving, (7) to reduce accidents resulting
from fatigued and distracted drivers, including
distractions arising from the use of electronic devices
in vehicles,''; and
(C) by inserting ``aggressive driving, distracted
driving,'' after ``school bus accidents,''.
(b) Apportionment.--
(1) Tribal government programs.--Section 402(c) is amended
by striking ``three-fourths of 1 percent'' and inserting ``2
percent''.
(c) Extra Funding for Occupant Protection and Impaired Driving
Programs.--Section 402 is amended by inserting after subsection (g) the
following:
``(h) Grants.--Funds available to States under this section may be
used for making grants of financial assistance for programs and
initiatives authorized by sections 405 and 410 of this title.''.
(d) Law Enforcement Chase Training.--Section 402 is amended by
adding at the end the following:
``(l) Limitation Relating to Law Enforcement Vehicular Pursuit
Training.--No State may receive any funds available for fiscal years
after fiscal year 2004 for programs under this chapter until the State
submits to the Secretary a written statement that the State actively
encourages all relevant law enforcement agencies in that State to
follow the guidelines established for police chases issued by the
International Association of Chiefs of Police that are in effect on the
date of enactment of the Highway Safety Grant Program Reauthorization
Act of 2004, or as revised and in effect after that date as determined
by the Secretary.
``(m) Consolidation of Grant Applications.--The Secretary shall
establish an approval process by which a State may apply for all grants
included under this chapter through a single application with a single
annual deadline. The Bureau of Indian Affairs shall establish a
similarly simplified process for applications from Indian tribes.
``(n) Administrative Expenses.--Funds authorized to be appropriated
to carry out this section shall be subject to a deduction of not to
exceed 5 percent for the necessary costs of administering the
provisions of this section, section 405, section 407A, section 410, and
413 of this chapter.''.
SEC. 4104. HIGHWAY SAFETY RESEARCH AND OUTREACH PROGRAMS.
(a) Revised Authority and Requirements.--Section 403 is amended to
read as follows:
``Sec. 403. Highway safety research and development
``(a) Authority of the Secretary.--The Secretary is authorized to
use funds appropriated to carry out this section to--
``(1) conduct research on all phases of highway safety and
traffic conditions, including accident causation, highway or
driver characteristics, communications, and emergency care;
``(2) conduct ongoing research into driver behavior and its
effect on traffic safety;
``(3) conduct research on, and launch initiatives to
counter, fatigued driving by drivers of motor vehicles and
distracted driving in such vehicles, including the effect that
the use of electronic devices and other factors deemed relevant
by the Secretary have on driving;
``(4) conduct training or education programs in cooperation
with other Federal departments and agencies, States, private
sector persons, highway safety personnel, and law enforcement
personnel;
``(5) conduct research on, and evaluate the effectiveness
of, traffic safety countermeasures, including seat belts and
impaired driving initiatives; and
``(6) conduct demonstration projects.
``(b) Specific Research Programs.--
``(1) Required programs.--The Secretary shall conduct
research on the following:
``(A) Effects of use of controlled substances.--A
study on the effects of the use of controlled
substances on driver behavior to determine--
``(i) methodologies for measuring driver
impairment resulting from use of the most
common controlled substances (including the use
of such substances in combination with
alcohol); and
``(ii) effective and efficient methods for
training law enforcement personnel to detect or
measure the level of impairment of a driver who
is under the influence of a controlled
substance by the use of technology or
otherwise.
``(B) On-scene motor vehicle collision causation.--
A nationally representative study to collect on-scene
motor vehicle collision data, and to determine crash
causation, for which the Secretary shall enter into a
contract with the National Academy of Sciences to
conduct a review of the research, design, methodology,
and implementation of the study.
``(C) Toll facilities workplace safety.--A study on
the safety of highway toll collection facilities,
including toll booths, conducted in cooperation with
State and local highway safety organizations to
determine the safety of highway toll collection
facilities for the toll collectors who work in and
around such facilities and to develop best practices
that would be of benefit to State and local highway
safety organizations. The study shall consider--
``(i) any problems resulting from design or
construction of facilities that contribute to
the occurrence of vehicle collisions with the
facilities;
``(ii) the safety of crosswalks used by
toll collectors in transit to and from toll
booths;
``(iii) the extent of the enforcement of
speed limits at and in the vicinity of toll
facilities;
``(iv) the use of warning devices, such as
vibration and rumble strips, to alert drivers
approaching toll facilities;
``(v) the use of cameras to record traffic
violations in the vicinity of toll facilities;
``(vi) the use of traffic control arms in
the vicinity of toll facilities;
``(vii) law enforcement practices and
jurisdictional issues that affect safety at and
in the vicinity of toll facilities; and
``(viii) data (which shall be collected in
conducting the research) regarding the
incidence of accidents and injuries at and
around toll booth facilities.
``(2) Time for completion of studies.--The studies
conducted in subparagraphs (A), (B), and (C) of paragraph (1)
may be conducted in concert with other Federal departments and
agencies with relevant expertise. The Secretary shall submit an
annual report to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure on the progress of each study
conducted under this subsection.
``(3) Ongoing studies.--The studies under subparagraphs (A)
and (B) of paragraph (1) shall be conducted on an ongoing
basis.
``(4) Reports.--
``(A) One-time study.--Not later than 2 years after
the date of enactment of the Highway Safety Grant
Program Reauthorization Act of 2004, the Secretary
shall submit a final report on the study referred to in
paragraph (1)(C) to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
``(B) Ongoing studies.--The Secretary shall submit
a report on the studies referred to in paragraph (3) to
the Committees of Congress referred to in subparagraph
(A) not later than December 31, 2005, and shall submit
additional reports on such studies to such committees
every 2 years. Such additional reports shall contain
the findings, progress, remaining challenges, research
objectives, and other relevant data relating to the
ongoing studies.
``(5) Research on distracted, inattentive, and fatigued
drivers.--In conducting research under subsection (a)(3), the
Secretary shall carry out not less than 5 demonstration
projects to evaluate new and innovative means of combatting
traffic system problems caused by distracted, inattentive, or
fatigued drivers. The demonstration projects shall be in
addition to any other research carried out under this
subsection.
``(c) Nationwide Traffic Safety Campaigns.--
``(1) Requirement for campaigns.--The Administrator of the
National Highway Traffic Safety Administration shall establish
and administer a program under which 3 high-visibility traffic
safety law enforcement campaigns will be carried out for the
purposes specified in paragraph (2) in each of years 2004
through 2009.
``(2) Purpose.--The purpose of each law enforcement
campaign is to achieve either or both of the following
objectives:
``(A) Reduce alcohol-impaired or drug-impaired
operation of motor vehicles.
``(B) Increase use of seat belts by occupants of
motor vehicles.
``(3) Advertising.--The Administrator may use, or authorize
the use of, funds available under this section to pay for the
development, production, and use of broadcast and print media
advertising in carrying out traffic safety law enforcement
campaigns under this subsection. Consideration shall be given
to advertising directed at non-English speaking populations,
including those who listen, read, or watch nontraditional
media.
``(4) Coordination with states.--The Administrator shall
coordinate with the States in carrying out the traffic safety
law enforcement campaigns under this subsection, including
advertising funded under paragraph (3), with a view to--
``(A) relying on States to provide the law
enforcement resources for the campaigns out of funding
available under this section and sections 402, 405, and
410 of this title; and
``(B) providing out of National Highway Traffic
Safety Administration resources most of the means
necessary for national advertising and education
efforts associated with the law enforcement campaigns.
``(5) Annual evaluation.--The Secretary shall conduct an
annual evaluation of the effectiveness of such initiatives.
``(6) Funding.--The Secretary shall use $24,000,000 in each
of fiscal years 2004 through 2009 for advertising and
educational initiatives to be carried out nationwide in support
of the campaigns under this section.
``(d) Improving Older Driver Safety.--
``(1) In general.--Of the funds made available under this
section, the Secretary shall allocate $2,000,000 in each of
fiscal years 2004 through 2009 to conduct a comprehensive
research and demonstration program to improve traffic safety
pertaining to older drivers. The program shall--
``(A) provide information and guidelines to assist
physicians and other related medical personnel,
families, licensing agencies, enforcement officers, and
various public and transit agencies in enhancing the
safety and mobility of older drivers;
``(B) improve the scientific basis of medical
standards and screenings strategies used in the
licensing of all drivers in a non-discriminatory
manner;
``(C) conduct field tests to assess the safety
benefits and mobility impacts of different driver
licensing strategies and driver assessment and
rehabilitation methods;
``(D) assess the value and improve the safety
potential of driver retraining courses of particular
benefit to older drivers; and
``(E) conduct other activities to accomplish the
objectives of this action.
``(2) Formulation of plan.--After consultation with
affected parties, the Secretary shall formulate an older driver
traffic safety plan to guide the design and implementation of
this program. The plan shall be submitted to the House of
Representatives Committee on Transportation and Infrastructure
and the Senate Committee on Commerce, Science, and
Transportation within 180 days after the date of enactment of
the Highway Safety Grant Program Reauthorization Act of 2004.
``(e) Law Enforcement Training.--
``(1) Requirement for program.--The Administrator of the
National Highway Traffic Safety Administration shall carry out
a program to train law enforcement personnel of each State and
political subdivision thereof in police chase techniques that
are consistent with the police chase guidelines issued by the
International Association of Chiefs of Police.
``(2) Amount for program.--Of the amount available for a
fiscal year to carry out this section, $200,000 shall be
available for carrying out this subsection.
``(f) International Cooperation.--
``(1) Authority.--The Administrator of the National Highway
Traffic Safety Administration may participate and cooperate in
international activities to enhance highway safety.
``(2) Amount for program.--Of the amount available for a
fiscal year to carry out this section, $200,000 may be used for
activities authorized under paragraph (1).''.
(b) Study on Refusal of Intoxication Testing.--
(1) Requirement for study.--In addition to studies under
section 403 of title 23, United States Code, the Secretary of
Transportation shall carry out a study of the frequency with
which persons arrested for the offense of operating a motor
vehicle under the influence of alcohol and persons arrested for
the offense of operating a motor vehicle while intoxicated
refuse to take a test to determine blood alcohol concentration
levels and the effect such refusals have on the ability of
States to prosecute such persons for those offenses.
(2) Consultation.--In carrying out the study under this
section, the Secretary shall consult with the Governors of the
States, the States' Attorneys General, and the United States
Sentencing Commission.
(3) Report.--
(A) requirement for report.--Not later than 1 year
after the date of the enactment of this Act, the
Secretary shall submit a report on the results of the
study to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
(B) Content.--The report shall include any
recommendation for legislation, including any
recommended model State legislation, and any other
recommendations that the Secretary considers
appropriate for implementing a program designed to
decrease the occurrence refusals by arrested persons to
submit to a test to determine blood alcohol
concentration levels.
SEC. 4105. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE TECHNICAL
CORRECTION.
Section 404(d) is amended by striking ``Commerce'' and inserting
``Transportation''.
SEC. 4106. OCCUPANT PROTECTION GRANTS.
Section 405 is amended--
(1) by striking the second sentence of subsection (a)(1);
(2) by striking ``Transportation Equity Act for the 21st
Century.'' in subsection (a)(2) and inserting ``Highway Safety
Grant Program Reauthorization Act of 2004.'';
(3) by striking subsections (a)(3) and (4), (b), (c), and
(d) and redesignating subsections (e) and (f) as subsections
(d) and (e), respectively; and
(4) by inserting after subsection (a) the following:
``(b) Occupant Protection Grants.--
``(1) In general.--In addition to the grants authorized by
subsection (a), the Secretary shall make grants in accordance
with this subsection.
``(2) Safety belt performance grants.--
``(A) Primary safety belt use law.--
``(i) For fiscal years 2004 and 2005, the
Secretary shall make a grant to each State that
enacted, and is enforcing, a primary safety
belt use law for all passenger motor vehicles
that became effective by December 31, 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 a primary safety belt
use law for all passenger motor vehicles, or,
in the case of a State that does not have such
a primary safety belt use law, has a State
safety belt use rate in the preceding fiscal
year of at least 90 percent, as measured under
criteria determined by the Secretary.
``(iii) Of the funds authorized for grants
under this subsection, $100,000,000 in each of
fiscal years 2004 through 2009 shall be
available for grants under this paragraph. The
amount of a grant available to a State in each
of fiscal years 2004 and 2005 under clause (i)
of this subparagraph shall be equal to \1/2\ of
the amount of funds apportioned to the State
under section 402(c) for fiscal year 2003. The
amount of a grant available to a State in
fiscal year 2004 or in a subsequent fiscal year
under clause (ii) of this subparagraph shall be
equal to 5 times the amount apportioned to the
State for fiscal year 2003 under section
402(c). A State that receives a grant under
clause (ii) of this subparagraph is ineligible
to receive funding under subparagraph (B) for
that fiscal year and the following fiscal year.
The Federal share payable for grants under this
subparagraph shall be 100 percent. If the total
amount of grants under clause (ii) of this
subparagraph for a fiscal year exceeds the
amount of funds available in the fiscal year,
grants shall be made to each eligible State, in
the order in which its primary safety belt use
law became effective or its safety belt use
rate reached 90 percent, until the funds for
the fiscal year are exhausted. A State that
does not receive a grant for which it is
eligible in a fiscal year shall receive the
grant in the succeeding fiscal year so long as
its law remains in effect or its safety belt
use rate remains at or above 90 percent. If the
total amount of grants under this subparagraph
for a fiscal year is less than the amount
available in the fiscal year, the Secretary
shall use any funds that exceed the total
amount for grants under subparagraph (B) of
this paragraph.
``(B) Safety belt use rate.--
``(i) For each fiscal year, from 2004
through 2009, the funds authorized for a grant
under this subparagraph shall be awarded to
States that increase their measured safety belt
use rate, as determined by the Secretary, by
decreasing the proportion of non-users of
safety belts by 10 percent, as compared to the
proportion of non-users, in the preceding
fiscal year.
``(ii) Each State that meets the
requirement of clause (i) of this subparagraph
shall be apportioned an amount of funds that is
equal to the amount available under this
subparagraph for the relevant fiscal year
multiplied by the ratio that the funds
apportioned to the State under section 402 for
such fiscal year bear to the funds apportioned
under section 402 for such fiscal year to all
states that qualify for a grant for such fiscal
year.
``(iii) Of the funds authorized for grants
under this subsection, $20,000,000 for fiscal
year 2004, $22,000,000 for fiscal year 2005,
$24,000,000 for fiscal year 2006, $26,000,000
for fiscal year 2007, $28,000,000 for fiscal
year 2008, and $30,000,000 for fiscal year 2009
shall be available for safety belt use rate
grants under this subparagraph.
``(iv) The Federal share payable for grants
under this subparagraph shall be 100 percent.
``(c) Use of Grants.--A State allocated an amount for a grant under
subparagraph (A) or (B) of subsection (b)(2) may use the amount for
activities eligible for assistance under sections 402, 405, and 410 of
this title.''.
SEC. 4107. SCHOOL BUS DRIVER TRAINING.
Section 406(c) is amended by striking the first, second, and third
sentences.
SEC. 4108. EMERGENCY MEDICAL SERVICES.
(a) Federal Coordination and Enhanced Support of Emergency Medical
Services.--Chapter 4 is amended by inserting after section 407 the
following:
``Sec. 407A. Federal coordination and enhanced support of emergency
medical services
``(a) Federal Interagency Committee on Emergency Medical
Services.--
``(1) Establishment.--The Secretary of Transportation and
the Secretary of Homeland Security, through the Under Secretary
for Emergency Preparedness and Response, shall establish a
Federal Interagency Committee on Emergency Medical Services. In
establishing the Interagency Committee, the Secretary of
Transportation and the Secretary of Homeland Security through
the Under Secretary for Emergency Preparedness and Response
shall consult with the Secretary of Health and Human Services.
``(2) Membership.--The Interagency Committee shall consist
of the following officials, or their designees:
``(A) The Administrator, National Highway Traffic
Safety Administration.
``(B) The Director, Preparedness Division,
Emergency Preparedness and Response Directorate,
Department of Homeland Security.
``(C) The Administrator, Health Resources and
Services Administration, Department of Health and Human
Services.
``(D) The Director, Centers for Disease Control and
Prevention, Department of Health and Human Services.
``(E) The Administrator, United States Fire
Administration, Emergency Preparedness and Response
Directorate, Department of Homeland Security.
``(F) The Director, Center for Medicare and
Medicaid Services, Department of Health and Human
Services.
``(G) The Undersecretary of Defense for Personnel
and Readiness.
``(H) The Director, Indian Health Service,
Department of Health and Human Services.
``(I) The Chief, Wireless Telecom Bureau, Federal
Communications Commission.
``(J) A representative of any other Federal agency
identified by the Secretary of Transportation or the
Secretary of Homeland Security through the Under
Secretary for Emergency Preparedness and Response, in
consultation with the Secretary of Health and Human
Services, as having a significant role in relation to
the purposes of the Interagency Committee.
``(3) Purposes.--The purposes of the Interagency Committee
are as follows:
``(A) To ensure coordination among the Federal
agencies involved with State, local, tribal, or
regional emergency medical services and 9-1-1 systems.
``(B) To identify State, local, tribal, or regional
emergency medical services and 9-1-1 needs.
``(C) To recommend new or expanded programs,
including grant programs, for improving State, local,
tribal, or regional emergency medical services and
implementing improved emergency medical services
communications technologies, including wireless 9-1-1.
``(D) To identify ways to streamline the process
through which Federal agencies support State, local,
tribal or regional emergency medical services.
``(E) To assist State, local, tribal or regional
emergency medical services in setting priorities based
on identified needs.
``(F) To advise, consult, and make recommendations
on matters relating to the implementation of the
coordinated State emergency medical services programs.
``(4) Administration.--The Administrator of the National
Highway Traffic Safety Administration, in cooperation with the
Director, Preparedness Division, Emergency Preparedness and
Response Directorate, Department of Homeland Security, shall
provide administrative support to the Interagency Committee,
including scheduling meetings, setting agendas, keeping minutes
and records, and producing reports.
``(5) Leadership.--The members of the Interagency Committee
shall select a chairperson of the Committee annually.
``(6) Meetings.--The Interagency Committee shall meet as
frequently as is determined necessary by the chairperson of the
Committee.
``(7) Annual reports.--The Interagency Committee shall
prepare an annual report to Congress on the Committee's
activities, actions, and recommendations.
``(b) Coordinated Nationwide Emergency Medical Services Program.--
``(1) Program requirement.--The Secretary of
Transportation, acting through the Administrator of the
National Highway Traffic Safety Administration, shall
coordinate with officials of other Federal departments and
agencies, and may assist State and local governments and
emergency medical services organizations (whether or not a
firefighter organization), private industry, and other
interested parties, to ensure the development and
implementation of a coordinated nationwide emergency medical
services program that is designed to strengthen transportation
safety and public health and to implement improved emergency
medical services communication systems, including 9-1-1.
``(2) Coordinated state emergency medical services
program.--Each State shall establish a program, to be approved
by the Secretary, to coordinate the emergency medical services
and resources deployed throughout the State, so as to ensure--
``(A) improved emergency medical services
communication systems, including 9-1-1;
``(B) utilization of established best practices in
system design and operations;
``(C) implementation of quality assurance programs;
and
``(D) incorporation of data collection and analysis
programs that facilitate system development and data
linkages with other systems and programs useful to
emergency medical services.
``(3) Administration of state programs.--The Secretary may
not approve a coordinated State emergency medical services
program under this subsection unless the program--
``(A) provides that the Governor of the State is
responsible for its administration through a State
office of emergency medical services that has adequate
powers and is suitably equipped and organized to carry
out such program and coordinates such program with the
highway safety office of the State; and
``(B) authorizes political subdivisions of the
State to participate in and receive funds under such
program, consistent with a goal of achieving statewide
coordination of emergency medical services and 9-1-1
activities.
``(4) Funding.--
``(A) Use of funds.--Funds authorized to be
appropriated to carry out this subsection shall be used
to aid the States in conducting coordinated emergency
medical services and 9-1-1 programs as described in
paragraph (2).
``(B) Apportionment.--
``(i) Apportionment formula.--The funds
shall be apportioned as follows: 75 percent in
the ratio that the population of each State
bears to the total population of all the
States, as shown by the latest available
Federal census, and 25 percent in the ratio
that the public road mileage in each State
bears to the total public road mileage in all
States. For the purpose of this subparagraph, a
`public road' means any road under the
jurisdiction of and maintained by a public
authority and open to public travel. Public
road mileage as used in this subsection shall
be determined as of the end of the calendar
year prior to the year in which the funds are
apportioned and shall be certified by the
Governor of the State and subject to approval
by the Secretary.
``(ii) Minimum apportionment.--The annual
apportionment to each State shall not be less
than \1/2\ of 1 percent of the total
apportionment, except that the apportionment to
the Secretary of the Interior on behalf of
Indian tribes shall not be less than \3/4\ of 1
percent of the total apportionment, and the
apportionments to the Virgin Islands, Guam,
American Samoa, and the Commonwealth of the
Northern Mariana Islands shall not be less than
\1/4\ of 1 percent of the total apportionment.
``(5) Applicability of chapter 1.--Section 402(d) of this
title shall apply in the administration of this subsection.
``(6) Federal share.--The Federal share of the cost of a
project or program funded under this subsection shall be 80
percent.
``(7) Application in indian country.--
``(A) Use of terms.--For the purpose of application
of this subsection in Indian country, the terms `State'
and `Governor of the State' include the Secretary of
the Interior and the term `political subdivisions of
the State' includes an Indian tribe.
``(B) Indian country defined.--In this subsection,
the term `Indian country' means--
``(i) all land within the limits of any
Indian reservation under the jurisdiction of
the United States, notwithstanding the issuance
of any patent and including rights-of-way
running through the reservation;
``(ii) all dependent Indian communities
within the borders of the United States,
whether within the original or subsequently
acquired territory thereof and whether within
or without the limits of a State; and
``(iii) all Indian allotments, the Indian
titles to which have not been extinguished,
including rights-of-way running through such
allotments.
``(c) State Defined.--In this section, the term `State' means each
of the 50 States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, and the Secretary of the Interior on behalf of Indian tribes.
``(d) Construction With Respect to District of Columbia.--In the
administration of this section with respect to the District of
Columbia, a reference in this section to the Governor of a State shall
refer to the Mayor of the District of Columbia.''.
(b) Clerical Amendment.--The chapter analysis for chapter 4 is
amended by inserting after the item relating to section 407 the
following:
``407A. Federal coordination and enhanced support of emergency medical
services.''.
SEC. 4109. REPEAL OF AUTHORITY FOR ALCOHOL TRAFFIC SAFETY PROGRAMS.
(a) Repeal.--Section 408 is repealed.
(b) Clerical Amendment.--The chapter analysis for chapter 4 is
amended by striking the item relating to section 408.
SEC. 4110. IMPAIRED DRIVING PROGRAM.
(a) Maintenance of Effort.--Section 410(a)(2) is amended by
striking ``the Transportation Equity Act for the 21st Century'' and
inserting ``the Highway Safety Grant Program Reauthorization Act of
2004''.
(b) Revised Grant Authority.--Section 410 is amended--
(1) by striking paragraph (3) of subsection (a) and
redesignating paragraph (4) as paragraph (3); and
(2) by striking subsections (b) through (f) and inserting
the following:
``(b) Program-Related Eligibility Requirements.--To be eligible for
a grant under this section, a State shall--
``(1) carry out each of the programs and activities
required under subsection (c);
``(2) comply with the additional requirements set forth in
subsection (d) with respect to such programs and activities;
and
``(3) comply with any additional requirements of the
Secretary.
``(c) Required State Programs and Activities.--For the purpose of
subsection (b)(1), a State must meet the requirements of 4 of the
following 6 criteria in order to receive a grant under this section:
``(1) Check-point, saturation patrol program.--
``(A) A State program to conduct of a series of
high-visibility, Statewide law enforcement campaigns in
which law enforcement personnel monitor for impaired
driving, either through use of check-points or
saturation patrols, on a nondiscriminatory, lawful
basis for the purpose of determining whether the
operators of the motor vehicles are driving while under
the influence of alcohol or controlled substances that
meets the requirements of subparagraphs (B) and (C).
``(B) A program meets the requirements of this
subparagraph only if a State organizes the campaigns in
cooperation with related national campaigns organized
by the National Highway Traffic Safety Administration,
but this subparagraph does not preclude a State from
initiating high-visibility, Statewide law enforcement
campaigns independently of the cooperative efforts.
``(C) A program meets the requirements of this
subparagraph only if, for each fiscal year, a State
demonstrates to the Secretary that the State and the
political subdivisions of the State that receive funds
under this section have increased, in the aggregate,
the total number of impaired driving law enforcement
activities, as described in subparagraph (A) (or any
other similar activity approved by the Secretary),
initiated in such State during the preceding fiscal
year by a factor that the Secretary determines
meaningful for the State over the number of such
activities initiated in such State during the preceding
fiscal year, which shall not be less than 5 percent.
``(2) Prosecution and adjudication program.--For grants
made during fiscal years after fiscal year 2004, a State
prosecution and adjudication program under which--
``(A) judges and prosecutors are actively
encouraged to prosecute and adjudicate cases of
defendants who repeatedly commit impaired driving
offenses by reducing the use of State diversion
programs, or other means that have the effect of
avoiding or expunging a permanent record of impaired
driving in such cases;
``(B) the courts in a majority of the judicial
jurisdictions of the State are monitored on the courts'
adjudication of cases of impaired driving offenses; or
``(C) annual Statewide outreach is provided for
judges and prosecutors on innovative approaches to the
prosecution and adjudication of cases of impaired
driving offenses that have the potential for
significantly improving the prosecution and
adjudication of such cases.
``(3) Impaired operator information system.--
``(A) A State impaired operator information system
that--
``(i) tracks drivers who are arrested or
convicted for violation of laws prohibiting
impaired operation of motor vehicles;
``(ii) includes information about each case
of an impaired driver beginning at the time of
arrest through case disposition, including
information about any trial, plea, plea
agreement, conviction or other disposition,
sentencing or other imposition of sanctions,
and substance abuse treatment;
``(iii) provides--
``(I) accessibility to the
information for law enforcement
personnel Statewide and for United
States law enforcement personnel; and
``(II) linkage for the sharing of
the information and of the information
in State traffic record systems among
jurisdictions and appropriate agencies,
court systems and offices of the
States;
``(iv) shares information with the National
Highway Traffic Safety Administration for
compilation and use for the tracking of
impaired operators of motor vehicles who move
from State to State; and
``(v) meets the requirements of
subparagraphs (B), (C), and (D) of this
paragraph, as applicable.
``(B) A program meets the requirements of this
subparagraph only if, during fiscal years 2004 and
2005, a State--
``(i) assesses the system used by the State
for tracking drivers who are arrested or
convicted for violation of laws prohibiting
impaired operation of motor vehicles;
``(ii) identifies ways to improve the
system, as well as to enhance the capability of
the system to provide information in
coordination with impaired operator information
systems of other States; and
``(iii) develops a strategic plan that sets
forth the actions to be taken and the resources
necessary to achieve the identified
improvements and to enhance the capability for
coordination with the systems of other States.
``(C) A program meets the requirements of this
subparagraph only if, in each of fiscal years 2006,
2007, and 2008, a State demonstrates to the Secretary
that the State has made substantial and meaningful
progress in improving the State's impaired operator
information system, and makes public a report on the
progress of the information system.
``(D) A program meets the requirements of this
subparagraph only if, in fiscal year 2009, a State
demonstrates to the Secretary that the State's impaired
operator information system meets the basic standards
for such systems as determined by the Secretary.
``(4) Impaired driving performance.--The percentage of
fatally-injured drivers with 0.08 percent or greater blood
alcohol concentration in the State has decreased in each of the
2 most recent calendar years.
``(5) Impaired driving task force.--(A) Establishment of an
impaired driving task force that involves all relevant State,
tribal, and local agencies responsible for reducing alcohol
impairment and impaired driving and meets the requirements of
subparagraphs (B), (C), and (D). The purpose of the task force
is to oversee efforts to reduce impaired driving by
strengthening applicable laws, regulations, programs, and
policies, and to coordinate impaired driving resources and
programs among different jurisdictions. The impaired driving
task force shall include State, Tribal, and local law
enforcement, motor carrier safety agencies, and State alcohol
and drug abuse prevention agencies, State and local court
systems, State drivers licensing agencies, the State highway
safety office, and State parole and probation agencies.
``(B) In fiscal year 2004 and fiscal year 2005, the State
shall establish a statewide impaired driving task force to
assess the State's impaired driving system, identify the
opportunities for improvements in the system, and develop a
strategic plan that outlines the steps and resources necessary
to improve the system and enhance coordination among State and
local agencies responsible for reducing impaired driving.
``(C) In each subsequent fiscal year, the State
demonstrates progress in the implementation of top priorities
of the strategic plan.
``(D) The State provides the Secretary a copy of the
strategic plan developed under subparagraph and in subsequent
years, a report detailing the progress of the strategic plan.
The Secretary shall make available for public viewing each
strategic plan and progress report.
``(6) Impaired driving courts.--
``(A) In general.--A program to consolidate and
coordinate impaired driving cases into courts that
specialize in impaired driving cases, with the emphasis
on tracking and processing offenders of impaired
driving laws, (hereinafter referred to as DWI courts)
that meets the requirements of this paragraph.
``(B) Characteristics.--A DWI Court is a distinct
function performed by a court system for the purpose of
changing the behavior of alcohol or drug dependent
offenders arrested for driving while impaired. A DWI
Court can be a dedicated court with dedicated
personnel, including judges, prosecutors and probation
officers. A DWI court may be an existing court system
that serves the following essential DWI Court
functions:
``(i) A DWI Court performs an assessment of
high-risk offenders utilizing a team headed by
the judge and including all criminal justice
stakeholders (prosecutors, defense attorneys,
probations officers, law enforcement personnel
and others) along with alcohol/drug treatment
professionals.
``(ii) The DWI Court team recommends a
specific plea agreement or contract for each
offender that can include incarceration,
treatment, and close community supervision. The
agreement maximizes the probability of
rehabilitation and minimizes the likelihood of
recidivism.
``(iii) Compliance with the agreement is
verified with thorough monitoring and frequent
alcohol testing. Periodic status hearings
assess offender progress and allow an
opportunity for modifying the sentence if
necessary.
``(C) Assessment.--In the first year of operation,
the States shall assess the number of court systems in
its jurisdiction that are consistently performing the
DWI Court functions.
``(D) Plan.--In the second year of operation, the
State shall develop a strategic plan for increasing the
number of courts performing the DWI function.
``(E) Progress.--In subsequent years of operation,
the State shall demonstrate progress in increasing the
number of DWI Courts and in increasing the number of
high-risk offenders participating in and successfully
completing DWI Court agreements.
``(d) Uses of Grants.--Grants made under this section may be used
for programs and activities described in subsection (c) and to defray
the following costs:
``(1) Labor costs, management costs, and equipment
procurement costs for the high-visibility, Statewide law
enforcement campaigns under subsection (c)(1).
``(2) The costs of the training of law enforcement
personnel and the procurement of technology and equipment, such
as and including video equipment and passive alcohol sensors,
to counter directly impaired operation of motor vehicles.
``(3) The costs of public awareness, advertising, and
educational campaigns that publicize use of sobriety check
points or increased law enforcement efforts to counter impaired
operation of motor vehicles.
``(4) The costs of public awareness, advertising, and
educational campaigns that target impaired operation of motor
vehicles by persons under 34 years of age.
``(5) The costs of the development and implementation of a
State impaired operator information system described in
subsection (c)(3).
``(6) The costs of operating programs that impound the
vehicle of an individual arrested as an impaired operator of a
motor vehicle for not less than 12 hours after the operator is
arrested.
``(e) Additional Authorities for Certain Authorized Uses.--
``(1) Combination of grant proceeds.--Grant funds used for
a campaign under subsection (d)(3) may be combined, or expended
in coordination, with proceeds of grants under section 402 of
this title.
``(2) Coordination of uses.--Grant funds used for a
campaign under paragraph (3) or (4) of subsection (d) may be
expended--
``(A) in coordination with employers, schools,
entities in the hospitality industry, and nonprofit
traffic safety groups; and
``(B) in coordination with sporting events and
concerts and other entertainment events.
``(f) Funding.--
``(1) In general.--Except as provided in paragraph (2),
grant funding under this section shall be allocated among
eligible States on the basis of the apportionment formula that
applies for apportionments under section 402(c) of this title.
``(2) High fatality-rate states.--The amount of the grant
funds allocated under this subsection to each of the 10 States
with the highest impaired driving-related fatality rate for the
most recent fiscal year for which the data is available
preceding the fiscal year of the allocation shall be twice the
amount that, except for this subparagraph, would otherwise be
allocated to the State under paragraph (1).
``(g) Use of Funds by High Fatality-Rate States.--
``(1) Required uses.--At least \1/2\ of the amounts
allocated to States under subsection (f)(2) shall be used for
the program described in subsection (c)(1).
``(2) Requirement for plan.--A State receiving an
allocation of grant funds under subsection (f)(2) shall expend
those funds only after consulting with the Administrator of the
National Highway Traffic Safety Administration regarding such
expenditures.
``(h) Definitions.--In this section:
``(1) Impaired operator.--The term `impaired operator'
means a person who, while operating a motor vehicle--
``(A) has a blood alcohol content of 0.08 percent
or higher; or
``(B) is under the influence of a controlled
substance.
``(2) Impaired driving-related fatality rate.--The term
`impaired driving-related fatality rate' means the rate of the
fatal accidents that involve impaired drivers while operating
motor vehicles, as calculated in accordance with regulations
which the Administrator of the National Highway Traffic Safety
Administration shall prescribe.''.
(c) NHTSA To Issue Regulations.--Not later than 12 months after the
date of enactment of the Highway Safety Grant Program Reauthorization
Act of 2004, the National Highway Traffic Safety Administration shall
issue guidelines to the States specifying the types and formats of data
that States should collect relating to drivers who are arrested or
convicted for violation of laws prohibiting the impaired operation of
motor vehicles.
SEC. 4111. STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.
(a) Grant Program Authority.--Chapter 4 is amended by adding at the
end the following:
``Sec. 412. State traffic safety information system improvements
``(a) Grant Authority.--Subject to the requirements of this
section, the Secretary shall make grants of financial assistance to
eligible States to support the development and implementation of
effective programs by such States to--
``(1) improve the timeliness, accuracy, completeness,
uniformity, integration, and accessibility of the safety data
of the State that is needed to identify priorities for
national, State, and local highway and traffic safety programs;
``(2) evaluate the effectiveness of efforts to make such
improvements;
``(3) link the State data systems, including traffic
records, with other data systems within the State, such as
systems that contain medical, roadway, and economic data; and
``(4) improve the compatibility and interoperability of the
data systems of the State with national data systems and data
systems of other States and enhance the ability of the
Secretary to observe and analyze national trends in crash
occurrences, rates, outcomes, and circumstances.
``(b) First-Year Grants.--
``(1) Eligibility.--To be eligible for a first-year grant
under this section in a fiscal year, a State shall demonstrate
to the satisfaction of the Secretary that the State has--
``(A) established a highway safety data and traffic
records coordinating committee with a multidisciplinary
membership that includes, among others, managers,
collectors, and users of traffic records and public
health and injury control data systems; and
``(B) developed a multiyear highway safety data and
traffic records system strategic plan that addresses
existing deficiencies in the State's highway safety
data and traffic records system, is approved by the
highway safety data and traffic records coordinating
committee, and--
``(i) specifies how existing deficiencies
in the State's highway safety data and traffic
records system were identified;
``(ii) prioritizes, on the basis of the
identified highway safety data and traffic
records system deficiencies, the highway safety
data and traffic records system needs and goals
of the State, including the activities under
subsection (a);
``(iii) identifies performance-based
measures by which progress toward those goals
will be determined; and
``(iv) specifies how the grant funds and
any other funds of the State are to be used to
address needs and goals identified in the
multiyear plan.
``(2) Grant amount.--Subject to subsection (d)(3), the
amount of a first-year grant to a State for a fiscal year shall
the higher of--
``(A) the amount determined by multiplying--
``(i) the amount appropriated to carry out
this section for such fiscal year, by
``(ii) the ratio that the funds apportioned
to the State under section 402 of this title
for fiscal year 2003 bears to the funds
apportioned to all States under such section
for fiscal year 2003; or
``(B) $300,000.
``(c) Successive Year Grants.--
``(1) Eligibility.--A State shall be eligible for a grant
under this subsection in a fiscal year succeeding the first
fiscal year in which the State receives a grant under
subsection (b) if the State, to the satisfaction of the
Secretary--
``(A) submits an updated multiyear plan that meets
the requirements of subsection (b)(1)(B);
``(B) certifies that its highway safety data and
traffic records coordinating committee continues to
operate and supports the multiyear plan;
``(C) specifies how the grant funds and any other
funds of the State are to be used to address needs and
goals identified in the multiyear plan;
``(D) demonstrates measurable progress toward
achieving the goals and objectives identified in the
multiyear plan; and
``(E) includes a current report on the progress in
implementing the multiyear plan.
``(2) Grant amount.--Subject to subsection (d)(3), the
amount of a year grant made to a State for a fiscal year under
this subsection shall equal the higher of--
``(A) the amount determined by multiplying--
``(i) the amount appropriated to carry out
this section for such fiscal year, by
``(ii) the ratio that the funds apportioned
to the State under section 402 of this title
for fiscal year 2003 bears to the funds
apportioned to all States under such section
for fiscal year 2003; or
``(B) $500,000.
``(d) Additional Requirements and Limitations.--
``(1) Model data elements.--The Secretary, in consultation
with States and other appropriate parties, shall determine the
model data elements that are useful for the observation and
analysis of State and national trends in occurrences, rates,
outcomes, and circumstances of motor vehicle traffic accidents.
In order to be eligible for a grant under this section, a State
shall submit to the Secretary a certification that the State
has adopted and uses such model data elements, or a
certification that the State will use grant funds provided
under this section toward adopting and using the maximum number
of such model data elements as soon as practicable.
``(2) Data on use of electronic devices.--The model data
elements required under paragraph (1) shall include data
elements, as determined appropriate by the Secretary in
consultation with the States and with appropriate elements of
the law enforcement community, on the impact on traffic safety
of the use of electronic devices while driving.
``(3) Maintenance of effort.--No grant may be made to a
State under this section in any fiscal year unless the State
enters into such agreements with the Secretary as the Secretary
may require to ensure that the State will maintain its
aggregate expenditures from all other sources for highway
safety data programs at or above the average level of such
expenditures maintained by such State in the 2 fiscal years
preceding the date of enactment of the Highway Safety Grant
Program Reauthorization Act of 2003.
``(4) Federal share.--The Federal share of the cost of
adopting and implementing in a fiscal year a State program
described in subsection (a) may not exceed 80 percent.
``(5) Limitation on use of grant proceeds.--A State may use
the proceeds of a grant received under this section only to
implement the program described in subsection (a) for which the
grant is made.
``(e) Applicability of Chapter 1.--Section 402(d) of this title
shall apply in the administration of this section.''.
(b) Clerical Amendment.--The chapter analysis for chapter 4 is
amended by adding at the end the following:
``412. State traffic safety information system improvements.''.
SEC. 4112. NHTSA ACCOUNTABILITY.
(a) In General.--Chapter 4, as amended by section 4111, is amended
by adding at the end the following:
``Sec. 413. Agency accountability
``(a) Triennial State Management Reviews.--At least once every 3
years the National Highway Traffic Safety Administration shall conduct
a review of each State highway safety program. The review shall include
a management evaluation of all grant programs partially or fully funded
under this title. The Administrator shall provide review-based
recommendations on how each State may improve the management and
oversight of its grant activities and may provide a management and
oversight plan.
``(b) Recommendations Before Submission.--In order to provide
guidance to State highway safety agencies on matters that should be
addressed in the State highway safety program goals and initiatives as
part of its highway safety plan before the plan is submitted for
review, the Administrator shall provide non-binding data-based
recommendations to each State at least 90 days before the date on which
the plan is to be submitted for approval.
``(c) State Program Review.--The Administrator shall--
``(1) conduct a program improvement review of any State
that does not make substantial progress over a 3-year period in
meeting its priority program goals; and
``(2) provide technical assistance and safety program
recommendations to the State for any goal not achieved.
``(d) Regional Harmonization.--The Administration and the Inspector
General of the Department of Transportation shall undertake a State
grant administrative review of the practices and procedures of the
management reviews and program reviews conducted by Administration
regional offices and formulate a report of best practices to be
completed within 180 days after the date of enactment of the Highway
Safety Grant Program Reauthorization Act of 2004.
``(e) Best Practices Guidelines.--
``(1) Uniform guidelines.--The Administration shall issue
uniform management review and program review guidelines based
on the report under subsection (d). Each regional office shall
use the guidelines in executing its State administrative review
duties.
``(2) Publication.--The Administration shall make the
following documents available via the Internet upon their
completion:
``(A) The Administration's management review and
program review guidelines.
``(B) State highway safety plans.
``(C) State annual accomplishment reports.
``(D) The Administration's State management
reviews.
``(E) The Administration's State program
improvement plans.
``(3) Reports to state highway safety agencies.--The
Administrator may not make a plan, report, or review available
under paragraph (2) that is directed to a State highway safety
agency until after it has been submitted to that agency.
``(f) General Accounting Office Review.--The General Accounting
Office shall analyze the effectiveness of the National Highway Traffic
Safety Administration's oversight of traffic safety grants by seeking
to determine the usefulness of the Administration's advice to the
States regarding grants administration and State activities, the extent
to which the States incorporate the Administration's recommendation
into their highway safety plans and programs, and improvements that
result in a State's highway safety program that may be attributable to
the Administration's recommendations. Based on this analysis, the
General Accounting Office shall submit a report by not later than the
end of fiscal year 2008 to the House of Representatives Committee on
Transportation and Infrastructure and the Senate Committee on Commerce,
Science, and Transportation.''.
(b) Conforming Amendment.--The chapter analysis for chapter 4, as
amended by section 4111, is amended by inserting after the item
relating to section 412 the following:
``413. Agency accountability.''.
PART II--SPECIFIC VEHICLE SAFETY-RELATED RULINGS
SEC. 4151. AMENDMENT OF TITLE 49, UNITED STATES CODE.
Except as otherwise specifically provided, whenever in this subpart
an amendment is expressed in terms of an amendment to a section or
other provision of law, the reference shall be considered to be made to
a section or other provision of title 49, United States Code.
SEC. 4152. VEHICLE CRASH EJECTION PREVENTION.
(a) In General.--Subchapter II of chapter 301 is amended by adding
at the end the following:
``Sec. 30128. Vehicle accident ejection protection
``(a) In General.--The Secretary of Transportation shall prescribe
a safety standard under this chapter or upgrade existing Federal motor
vehicle safety standards to reduce complete and partial occupant
ejection from motor vehicles with a gross vehicle weight rating of not
more than 10,000 pounds that are involved in accidents that present a
risk of occupant ejection. In formulating the safety standard, the
Secretary shall consider the ejection-mitigation capabilities of safety
technologies, such as advanced side glazing, side curtains, and side
impact air bags.
``(b) Door Lock and Retention Standard.--The Secretary shall
upgrade Federal Motor Vehicle Safety Standard No. 206 to require
manufacturers of new motor vehicles with a gross vehicle weight rating
of not more than 10,000 pounds that are distributed in commerce for
sale in the United States to make such modifications to door locks,
door latches, and retention components of doors in such vehicles as the
Secretary determines to be necessary to reduce occupant ejection from
such vehicles in motor vehicle accidents.''.
(b) Rulemaking Deadlines.--
(1) Rulemaking.--The Secretary of Transportation shall
issue--
(A) a notice of a proposed rulemaking under section
30128 of title 49, United States Code, not later than
June 30, 2006; and
(B) a final rule under that section not later than
18 months after the publication of the notice of
proposed rulemaking.
(2) Effective date of requirements.--In the final rule, the
Secretary shall set forth effective dates for the requirements
contained in the rule.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation $500,000 for each of
fiscal years 2004 and 2005 to promulgate rules under section 30128 of
title 49, United States Code.
(d) Conforming Amendment.--The chapter analysis for chapter 301 is
amended by inserting after the item relating to section 30127 the
following:
``30128. Vehicle accident ejection protection.''.
SEC. 4153. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY.
(a) In General.--The Administrator of the National Highway Traffic
Safety Administration shall conduct a study of effective methods for
reducing the incidence of injury and death outside of parked passenger
motor vehicles with a gross vehicle weight rating of not more than
10,000 pounds attributable to movement of such vehicles. The
Administrator shall complete the study within 1 year after the date of
enactment of this Act and report its findings to the Senate Committee
on Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce not later than 5
months after the date of enactment of this Act.
(b) Specific Issues To Be Covered.--The study required by
subsection (a) shall--
(1) include an analysis of backover prevention technology;
(2) identify, evaluate, and compare the available
technologies for detecting people or objects behind a motor
vehicle with a gross vehicle weight rating of not more than
10,000 pounds for their accuracy, effectiveness, cost, and
feasibility for installation; and
(3) provide an estimate of cost savings that would result
from widespread use of backover prevention devices and
technologies in motor vehicles with a gross vehicle weight
rating of not more than 10,000 pounds, including savings
attributable to the prevention of--
(A) injuries and fatalities; and
(B) damage to bumpers and other motor vehicle parts
and damage to other objects.
SEC. 4154. VEHICLE BACKOVER DATA COLLECTION.
In conjunction with the study required in section 4153, the
National Highway Traffic Safety Administration may establish a method
to collect and maintain data on the number and types of injuries and
deaths involving motor vehicles with a gross vehicle weight rating of
not more than 10,000 pounds in non-traffic, non-accident incidents to
assist in the analysis required in section 4153 of this Act regarding
the inclusion of backover prevention technologies in motor vehicles
with a gross vehicle weight rating of not more than 10,000 pounds.
SEC. 4155. AGGRESSIVITY AND INCOMPATIBILITY REDUCTION STANDARD.
(a) In General.--Subchapter II of chapter 301, as amended by
section 4152, is amended by adding at the end the following:
``Sec. 30129. Vehicle incompatibility and aggressivity reduction
standard
``(a) In General.--The Secretary of Transportation shall issue
motor vehicle safety standards to reduce vehicle incompatibility and
aggressivity for motor vehicles with a gross vehicle weight rating of
not more than 10,000 pounds. In formulating the standards, the
Secretary shall consider factors such as bumper height, weight, and any
other design characteristics necessary to ensure better management of
crash forces in frontal and side impact crashes among different types,
sizes, and weights of motor vehicles with a gross vehicle weight rating
of not more than 10,000 pounds in order to reduce occupant deaths and
injuries.
``(b) Standards.--The Secretary shall develop a standard rating
metric to evaluate compatibility and aggressivity among motor vehicles
with a gross vehicle weight rating of not more than 10,000 pounds.
``(c) Public Information.--The Secretary shall create a public
information program that includes vehicle ratings based on risks posed
by vehicle incompatibility and aggressivity to occupants, risks posed
by vehicle incompatibility and agressivity to other motorists, and
combined risks posed by vehicle incompatibility and agressivity by
vehicle make and model.''.
(b) Rulemaking Deadlines.--
(1) Rulemaking.--The Secretary of Transportation shall
issue--
(A) a notice of a proposed rulemaking under section
30129 of title 49, United States Code, not later than
January 31, 2007; and
(B) a final rule under that section not later than
18 months after the publication of the notice of
proposed rulemaking.
(2) Effective date of requirements.--In the final rule, the
Secretary shall set forth effective dates for the requirements
contained in the rule.
(c) Conforming Amendment.--The chapter analysis for chapter 301 is
amended by inserting after the item relating to section 30128 the
following:
``30129. Vehicle incompatibility and aggressivity reduction
standard.''.
SEC. 4156. IMPROVED CRASHWORTHINESS.
(a) Improved Crashworthiness.--Subchapter II of chapter 301, as
amended by section 4155, is amended by adding at the end the following:
``Sec. 30130. Improved crashworthiness of motor vehicles
``(a) Rollovers.--
``(1) In general.--The Secretary of Transportation shall
prescribe a motor vehicle safety standard under this chapter
for rollover crashworthiness standards for motor vehicles with
a gross weight rating of not more than 10,000 pounds. In
formulating the safety standard, the Secretary shall consider
the prescription of a roof strength standard based on dynamic
tests that realistically duplicate the actual forces
transmitted to a passenger motor vehicle during an on-roof
rollover crash, and shall consider safety technologies and
design improvements such as--
``(A) improved seat structure and safety belt
design, including seat belt pretensioners;
``(B) side impact head protection airbags; and
``(C) roof injury protection measures.
``(2) Rollover resistance standard.--The Secretary shall
prescribe a motor vehicle safety standard under this chapter to
improve on the basic design characteristics of motor vehicles
with a gross vehicle weight rating of not more than 10,000
pounds to increase their resistance to rollover. The Secretary
shall also consider additional technologies to improve the
handling of motor vehicles with a gross vehicle weight rating
of not more than 10,000 pounds and thereby reduce the
likelihood of vehicle instability and rollovers.
``(3) Study.--The Secretary shall conduct a study on
electronic stability control systems and other technologies
designed to improve the handling of motor vehicles with a gross
vehicle weight rating of not more than 10,000 pounds and shall
report the results of that study to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and Infrastructure
by December 31, 2005.
``(b) Frontal Impact Standards and Crash Tests.--
``(1) In general.--The Secretary shall prescribe a motor
vehicle safety standard under this chapter or upgrade existing
Federal motor vehicle safety standards to improve the
protection of occupants in frontal impact crashes involving
motor vehicles with a gross vehicle weight rating of not more
than 10,000 pounds.
``(2) Test methodology.--In determining the standard under
paragraph (1), the Secretary shall--
``(A) evaluate additional test barriers and
measurements of occupant head impact and neck injuries;
and
``(B) review frontal impact criteria, including
consideration of criteria established by the Insurance
Institute for Highway Safety.
``(c) Side Impact Standards and Crash Tests.--
``(1) In general.--The Secretary shall prescribe a motor
vehicle safety standard under this chapter or upgrade existing
Federal motor vehicle safety standards to improve the
protection afforded to occupants in side impact crashes
involving motor vehicles with a gross vehicle weight rating of
not more than 10,000 pounds.
``(2) Test methodology.--In prescribing the standard under
paragraph (1), the Secretary shall--
``(A) evaluate additional test barriers and
measurements of occupant head impact and neck injuries;
``(C) consider the need for additional and new
crash test dummies that represent the full range of
occupant sizes and weights; and
``(D) review side impact criteria, including
consideration of criteria established by the Insurance
Institute for Highway Safety.''.
(b) Rulemaking Deadlines.--
(1) Rulemaking.--The Secretary of Transportation shall--
(A) issue a notice of a proposed rulemaking under
section 30130 of title 49, United States Code, not
later than June 30, 2006; and
(B) issue a final rule not later than 18 months
after publication of the notice of proposed rulemaking.
(2) Effective date of requirements.--In the final rule, the
Secretary shall set forth effective dates for the requirements
contained in this rule.
(c) Conforming Amendment.--The chapter analysis for chapter 301 is
amended by inserting after the item relating to section 30129 the
following:
``30130. Improved crashworthiness of passenger motor vehicles.''.
SEC. 4157. 15-PASSENGER VANS.
(a) In General.--The Secretary of Transportation shall initiate a
rulemaking and issue a final regulation not later than September 31,
2005, to include all 15-passenger vans with a gross vehicle weight
rating of not more than 10,000 pounds in the National Highway Traffic
Safety Administration's dynamic rollover testing program and require
such vans to comply with all existing and prospective Federal Motor
Vehicle Safety Standards for occupant protection and vehicle crash
avoidance that are relevant to such vehicles.
(b) New Car Assessment Program.--The Secretary shall initiate a
rulemaking and issue a final regulation not later than September 31,
2005, to include all 15-passenger vans with a gross vehicle weight of
not more than 10,000 pounds in the Administration's New Car Assessment
Program rollover resistance program.
(c) Vehicle Control Technology for 15-Passenger Vans.--The National
Highway Traffic Safety Administration shall evaluate and test the
potential of technological systems, particularly electronic stability
control systems and rollover warning systems, to assist drivers in
maintaining control of 15-passenger vans with a gross vehicle weight
rating of not more than 10,000 pounds.
(d) Certain Specialized Vehicles Excluded.--In this section, the
term ``15-passenger van'' does not include an ambulance, tow truck, or
other vehicle designed primarily for the transportation of property or
special purpose equipment.
SEC. 4158. ADDITIONAL SAFETY PERFORMANCE CRITERIA FOR TIRES.
(a) Strength and Road Hazard Protection.--The Secretary of
Transportation shall issue a final rule to upgrade Federal Motor
Vehicle Safety Standard No. 139 to include strength and road hazard
protection safety performance criteria for light vehicle tires, which
are criteria that were not addressed in the June 2003 final rule
mandated by the Transportation Recall Enhancement, Accountability, and
Documentation Act of 2000.
(b) Resistance to Bead Unseating and Aging.--The Secretary of
Transportation shall issue a final rule to upgrade Federal Motor
Vehicle Safety Standard No. 139 to include resistance to bead unseating
and aging safety performance criteria for passenger motor vehicle
tires, which are criteria that were not addressed in the June, 2003,
final rule mandated by the Transportation Recall Enhancement,
Accountability, and Documentation Act of 2000.
(c) Rulemaking Deadlines.--The Secretary of Transportation shall--
(1) issue a notice of proposed rulemaking under subsection
(a) not later than June 30, 2005, and under subsection(b) not
later than December 31, 2005; and
(2) issue a final rule relating to subsection (a) not later
than 18 months after June 30, 2005, and a final rule under
subsection (b) not later than 18 months after December 31,
2005.
(d) Technology Use and Report.--The Secretary shall reconsider the
use of shearography analysis, on a sampling basis, for regulatory
compliance and the Administrator of the National Highway Traffic Safety
Administration shall report to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Transportation and Infrastructure on the most cost effective methods
of using such technology within 2 years after the date of enactment of
the Highway Safety Grant Program Reauthorization Act of 2004.
SEC. 4159. SAFETY BELT USE REMINDERS.
(a) Notice of Proposed Rules To Encourage More Seat Belt Use.--Not
later than 12 months after the date of enactment of this Act, the
Secretary of Transportation shall issue a Notice of Proposed Rulemaking
to amend the Federal Motor Vehicle Safety Standard No. 208 for motor
vehicles with a gross vehicle weight rating of not more than 10,000
pounds to encourage increased seat belt usage by drivers and
passengers. The proposed rulemaking shall take into account the
potential safety benefits and public acceptability of alternative means
to encourage increased seat belt usage, including intermittent or
continuous audible or visual reminders when a driver or passenger is
not wearing a seat belt, features to prevent operation of convenience
or entertainment features of the vehicle when a driver or passenger is
not wearing a seat belt, and shall consider technology, including but
not limited to technology identified by the National Academy of
Sciences in its study of the potential benefits of seat belt usage
reminder technologies.
(b) Final Rule.--Not later than 24 months after the date of
enactment of this Act, the Secretary shall issue the final rule
required by subsection (a).
(c) Buzzer Law.--
(1) In general.--Section 30124 is amended--
(A) by striking ``not'' the first place it appears;
and
(B) by striking ``except'' and inserting
``including''.
(2) Conforming amendment.--Section 30122 is amended by
striking subsection (d).
SEC. 4160. MISSED DEADLINES REPORTS.
(a) In General.--If the Secretary of Transportation fails to meet
any rulemaking deadline established in this subtitle, the Secretary
shall transmit a report to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee on
Transportation and Infrastructure within 90 days after missing the
deadline--
(1) explaining why the Secretary failed to meet the
deadline; and
(2) setting forth a date by which the Secretary anticipates
that the rulemaking will be made.
(b) Consideration of Effects.--The Secretary of Transportation
shall consider and report the potential consequences, in terms of the
number of deaths and the number and severity of injuries, that may
result from not meeting any such deadline.
SEC. 4161. GRANTS FOR IMPROVING CHILD PASSENGER SAFETY PROGRAMS.
(a) In General.--Chapter 4 of title 23, United States Code, as
amended by section 4112 of this Act, is amended by adding at the end
the following:
``Sec. 414. Booster seat incentive grants
``(a) In General.--The Secretary of Transportation shall make a
grant under this section to any eligible State.
``(b) Eligibility Requirements.--
``(1) In general.--The Secretary shall make a grant to each
State that, as determined by the Secretary, enacts or has
enacted, and is enforcing a law requiring that children riding
in passenger motor vehicles (as defined in section 405(d)(4))
who are too large to be secured in a child safety seat be
secured in a child restraint (as defined in section 7(1) of
Anton's Law (49 U.S.C. 30127 note)) that meets requirements
prescribed by the Secretary under section 3 of Anton's Law.
``(2) Year in which first eligible.--
``(A) Early qualification.--A State that has
enacted a law described in paragraph (1) that is in
effect before October 1, 2005, is first eligible to
receive a grant under subsection (a) in fiscal year
2006.
``(B) Subsequent qualification.--A State that
enacts a law described in paragraph (1) that takes
effect after September 30, 2005, is first eligible to
receive a grant under subsection (a) in the first
fiscal year beginning after the date on which the law
is enacted.
``(3) Continuing eligibility.--A State that is eligible
under paragraph (1) to receive a grant may receive a grant
during each fiscal year listed in subsection (f) in which it is
eligible.
``(4) Maximum number of grants.--A State may not receive
more than 4 grants under this section.
``(c) Grant Amount.--Amounts available for grants under this
section in any fiscal year shall be apportioned among the eligible
States on the basis of population.
``(d) Use of Grant Amounts.--
``(1) In general.--Of the amounts received by a State under
this section for any fiscal year--
``(A) 50 percent shall be used for the enforcement
of, and education to promote public awareness of, State
child passenger protection laws; and
``(B) 50 percent shall be used to fund programs
that purchase and distribute child booster seats, child
safety seats, and other appropriate passenger motor
vehicle child restraints to indigent families without
charge.
``(2) Report.--Within 60 days after the State fiscal year
in which a State receives a grant under this section, the State
shall transmit to the Secretary a report documenting the manner
in which grant amounts were obligated or expended and
identifying the specific programs supports by grant funds. The
report shall be in a form prescribed by the Secretary and may
be combined with other State grant reporting requirements under
this chapter.
``(e) Definition of Child Safety Seat.--The term `child safety
seat' means any device (except safety belts (as such term is defined in
section 405(d)(5)), designed for use in a motor vehicle (as such term
is defined in section 405(d)(1)) to restrain, seat, or position a child
who weighs 50 pounds or less.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Transportation, out of the Highway
Trust Fund--
``(1) $18,000,000 for fiscal year 2006;
``(2) $20,000,000 for fiscal year 2007;
``(3) $25,000,000 for fiscal year 2008; and
``(4) $30,000,000 for fiscal year 2009.''.
(b) Clerical Amendment.--The chapter analysis for chapter 4 of
title 23, United States Code, is amended by inserting after the item
relating to section 411 the following:
``414. Booster seat incentive grants.''.
SEC. 4162. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary of
Transportation to carry out this subtitle and chapter 301 of title 49,
United States Code--
(1) $130,500,000 for fiscal year 2004;
(2) $133,500,000 for fiscal year 2005;
(3) $133,600,000 for fiscal year 2006;
(4) $134,500,000 for fiscal year 2007;
(5) $138,000,000 for fiscal year 2008; and
(6) $141,000,000 for fiscal year 2009.
PART III--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 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 http://
www.nhtsa.dot.gov'; 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.
Subtitle B--Motor Carrier Safety and Unified Carrier Registration
PART I--ADMINISTRATIVE MATTERS
SEC. 4201. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES CODE.
(a) Short Title.--This subtitle may be cited as the ``Motor Carrier
Safety Reauthorization Act of 2004''.
(b) Amendment of Title 49, United States Code.--Except as otherwise
specifically provided, whenever in this subtitle an amendment is
expressed in terms of an amendment to a section or other provision of
law, the reference shall be considered to be made to a section or other
provision of title 49, United States Code.
SEC. 4202. REQUIRED COMPLETION OF OVERDUE REPORTS, STUDIES, AND
RULEMAKINGS.
(a) Requirement for Completion.--By no later than 36 months after
the date of enactment of this Act, the Secretary of Transportation
shall complete all reports, studies, and rulemaking proceedings to
issue regulations which Congress directed the Secretary to complete in
previous laws and which are not yet completed, including the following:
(1) Commercial Vehicle Driver Biometric Identifier,
section 9105, Truck and Bus Safety and Regulatory Reform Act of
1988.
(2) General Transportation of HAZMAT, section 8(b),
Hazardous Materials Transportation Uniform Safety Act of 1990.
(3) Nationally Uniform System of Permits for Interstate
Motor Carrier Transport of HAZMAT, section 22, Hazardous
Materials Transportation Uniform Safety Act of 1990.
(4) Training for Entry-Level Drivers of Commercial Motor
Vehicles, section 4007 (a), Intermodal Surface Transportation
Efficiency Act of 1991.
(5) Minimum Training Requirements for Operators and for
Training Instructors of Multiple Trailer Combination Vehicles,
section 4007(b)(2), Intermodal Surface Transportation
Efficiency Act of 1991.
(6) Railroad-Highway Grade Crossing Safety, section 112,
Hazardous Materials Transportation Authorization Act of 1994.
(7) Safety Performance History of New Drivers, section
114, Hazardous Materials Transportation Authorization Act of
1994.
(8) Motor Carrier Replacement Information and Registration
System, section 103, ICC Termination Act of 1995.
(9) General Jurisdiction Over Freight Forwarder Service,
section 13531, ICC Termination Act of 1995.
(10) Waivers, Exemptions, and Pilot Programs, section
4007, Transportation Equity Act for the Twenty-First Century.
(11) Safety Performance History of New Drivers, section
4014, Transportation Equity Act for the Twenty-First Century.
(12) Performance-based CDL Testing, section 4019,
Transportation Equity Act for the Twenty-First Century.
(13) Improved Flow of Driver History Pilot Program,
section 4022, Transportation Equity Act for the Twenty-First
Century.
(14) Employee Protections, section 4023, Transportation
Equity Act for the Twenty-First Century.
(15) Improved Interstate School Bus Safety, section 4024,
Transportation Equity Act for the Twenty-First Century.
(16) Federal Motor Carrier Safety Administration 2010
Strategy, section 104, Motor Carrier Safety Improvement Act of
1999.
(17) New Motor Carrier Entrant Requirements, section 210,
Motor Carrier Safety Improvement Act of 1999.
(18) Certified Motor Carrier Safety Auditors, section 211,
Motor Carrier Safety Improvement Act of 1999.
(19) Medical Certificate, section 215, Motor Carrier
Safety Improvement Act of 1999.
(20) Report on Any Pilots Undertaken to Develop Innovative
Methods of Improving Motor Carrier Compliance with Traffic
Laws, section 220, Motor Carrier Safety Improvement Act of
1999.
(21) Status Report on the Implementation of Electronic
Transmission of Data State-to-State on Convictions for All
Motor Vehicle Control Law Violations for CDL Holders, section
221, Motor Carrier Safety Improvement Act of 1999.
(22) Assessment of Civil Penalties, section 222, Motor
Carrier Safety Improvement Act of 1999.
(23) Truck Crash Causation Study, section 224, Motor
Carrier Safety Improvement Act of 1999.
(24) Drug Test Results Study, section 226, Motor Carrier
Safety Improvement Act of 1999.
(b) Final Rule Required.--Unless specifically permitted by law,
rulemaking proceedings shall be considered completed for purposes of
this section only when the Secretary has issued a final rule and the
docket for the rulemaking proceeding is closed.
(c) Schedule for Completion.--No fewer than one-third of the
reports, studies, and rulemaking proceedings in subsection (a) shall be
completed every 12 months after the date of enactment of this Act. The
Inspector General of the Department of Transportation shall make an
annual determination as to whether this schedule has been met.
(d) Failure To Comply.--If the Secretary fails to complete the
required number of reports, studies, and rulemaking proceedings
according to the schedule set forth in subsection (c) during any fiscal
year, the Secretary shall allocate to the States $3,000,000 from the
amount authorized by section 31104(i)(1) of title 49, United States
Code, for administrative expenses of the Federal Motor Carrier Safety
Administration to conduct additional compliance reviews under section
31102 of that title instead of obligating or expending such amount for
those administrative expenses.
(e) Amendments to the Listed Reports, Studies, and Rulemaking
Proceedings.--In addition to completing the reports, studies and
rulemaking proceedings listed in subsection (c), the Secretary shall--
(1) amend the Interim Final Rule addressing New Motor
Carrier Entrant Requirements to require that a safety audit be
immediately converted to a compliance review and appropriate
enforcement actions be taken if the safety audit discloses
acute safety violations by the new entrant; and
(2) eliminate a proposed provision in the rulemaking
proceeding addressing Commercial Van Operations Transporting
Nine to Fifteen Passengers which exempts commercial van
operations that operate within a 75-mile radius.
(f) Completion of New Rulemaking Proceedings.--Nothing in this
section delays or changes the deadlines specified for new reports,
studies, or rulemaking mandates contained in this title.
(g) Report of Other Agency Actions.--Within 12 months after the
date of enactment of this Act, the Secretary shall submit to the Senate
Committee on Commerce, Science, and Transportation and to the House
Committee on Transportation and Infrastructure a report on the status
of the following projects:
(1) Rescinding the current regulation which prohibits truck
and bus drivers from viewing television and monitor screens
while operating commercial vehicles.
(2) Incorporating Out-Of-Service Criteria regulations
enforced by the Federal Motor Carrier Safety Administration.
(3) Revision of the safety fitness rating system of motor
carriers.
(4) Amendment of Federal Motor Carrier Safety
Administration rules of practice for conducting motor carrier
administrative proceedings, investigations, disqualifications,
and for issuing penalties.
(5) Requiring commercial drivers to have a sufficient
functional speaking and reading comprehension of the English
language.
(6) Inspection, repair and maintenance of intermodal
container chassis and trailers.
SEC. 4203. CONTRACT AUTHORITY.
Authorizations from the Highway Trust Fund (other than the Mass
Transit Account) to carry out this subtitle shall be available for
obligation on the date of their apportionment or allocation or on
October 1 of the fiscal year for which they are authorized, whichever
occurs first. Approval by the Secretary of a grant with funds made
available under this title imposes upon the United States Government a
contractual obligation for payment of the Government's share of costs
incurred in carrying out the objectives of the grant.
PART II--MOTOR CARRIER SAFETY
SEC. 4221. MINIMUM GUARANTEE.
There are authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account) not less than 1.21 percent of the
total amounts made available in any fiscal year from the Highway Trust
Fund for purposes of this part.
SEC. 4222. AUTHORIZATION OF APPROPRIATIONS.
(a) Administrative Expenses.--Section 31104 is amended by adding at
the end the following:
``(i) Administrative expenses.--
``(1) There are authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit Account) for
the Secretary of Transportation to pay administrative expenses
of the Federal Motor Carrier Safety Administration--
``(A) $202,900,000 for fiscal year 2004;
``(B) $206,200,000 for fiscal year 2005;
``(C) $211,400,000 for fiscal year 2006;
``(D) $217,500,000 for fiscal year 2007;
``(E) $222,600,000 for fiscal year 2008; and
``(F) $228,500,000 for fiscal year 2009.
``(2) The funds authorized by this subsection shall be used
for personnel costs; administrative infrastructure; rent;
information technology; programs for research and technology,
information management, regulatory development (including a
medical review board and rules for medical examiners),
performance and registration information system management, and
outreach and education; other operating expenses and similar
matters; and such other expenses as may from time to time
become necessary to implement statutory mandates not funded
from other sources.
``(3) From the funds authorized by this section, the
Secretary shall ensure that compliance reviews are completed on
the motor carriers that have demonstrated through performance
data that they pose the highest safety risk. At a minimum,
compliance reviews shall be conducted within 6 months after
whenever a carrier is rated as category A or B.
``(4) The amounts made available under this section shall
remain available until expended.
``(5) Of the funds authorized by paragraph (1), $6,750,000
in each of fiscal years 2004 through 2009 shall be used to
carry out the medical program under section 31149.''.
(b) Amendment to Apportionment Provision of Title 23.--Section
104(a) of title 23, United States Code, is amended--
(1) by striking ``exceed--'' and so much of subparagraph
(A) as precedes clause (i) and inserting ``exceed 1\1/6\
percent of all sums so made available, as the Secretary
determines necessary--'';
(2) by redesignating clause (i) and (ii) of subparagraph
(A) as subparagraphs (A) and (B), and indenting such clauses,
as so redesignated, 2 em spaces; and
(3) by striking ``system; and'' in subparagraph (B) as so
redesignated, and all that follows through ``research.'' and
inserting ``system.''.
(c) Grant Programs.--There are authorized to be appropriated from
the Highway Trust Fund (other than the Mass Transit Account) for the
following Federal Motor Carrier Safety Administration programs:
(1) Border enforcement grants under section 31107 of title
49, United States Code--
(A) $32,000,000 for fiscal year 2004;
(B) $33,000,000 for fiscal year 2005;
(C) $33,000,000 for fiscal year 2006;
(D) $34,000,000 for fiscal year 2007;
(E) $35,000,000 for fiscal year 2008; and
(F) $36,000,000 for fiscal year 2009.
(2) Performance and registration information system
management grant program under 31109 of title 49, United States
Code--
(A) $4,000,000 for fiscal year 2004;
(B) $4,000,000 for fiscal year 2005;
(C) $4,000,000 for fiscal year 2006;
(D) $4,000,000 for fiscal year 2007;
(E) $4,000,000 for fiscal year 2008; and
(F) $4,000,000 for fiscal year 2009.
(3) Commercial driver's license and driver improvement
program grants under section 31318 of title 49, United States
Code--
(A) $22,000,000 for fiscal year 2004;
(B) $22,000,000 for fiscal year 2005;
(C) $23,000,000 for fiscal year 2006;
(D) $23,000,000 for fiscal year 2007;
(E) $24,000,000 for fiscal year 2008; and
(F) $25,000,000 for fiscal year 2009.
(4) Deployment of the Commercial Vehicle Informations
Systems and Networks established under section 4241 of this
title, $25,000,000 for each of fiscal years 2004 through 2009.
(d) Motor Carrier Safety Account.--Funds made available under
subsection (c) shall be administered in the account established in the
Treasury entitled ``Motor Carrier Safety 69-8055-0-7-401''.
(e) Period of Availability.--The amounts made available under
subsection (c) of this section shall remain available until expended.
SEC. 4223. MOTOR CARRIER SAFETY GRANTS.
(a) Motor Carrier Safety Assistance Program.--
(1) Section 31102 is amended--
(A) by striking ``activities by fiscal year 2000;''
in subsection (b)(1)(A) and inserting ``activities for
commercial motor vehicles of passengers and freight;'';
(B) by striking ``years before December 18, 1991;''
in subsection (b)(1)(E) and inserting ``years'';
(C) by striking ``and'' after the semicolon in
subsection (b)(1)(S);
(D) by striking ``personnel.'' in subsection
(b)(1)(T) and inserting ``personnel;'';
(E) adding at the end of subsection (b)(1) the
following:
``(U) ensures that inspections of motor carriers of
passengers are conducted at stations, terminals, border
crossings, or maintenance facilities, except in the case of an
imminent or obvious safety hazard;
``(V) provides that the State will include in the training
manual for the licensing examination to drive a non-commercial
motor vehicle and a commercial motor vehicle, information on
best practices for driving safely in the vicinity of commercial
motor vehicles and in the vicinity of non-commercial vehicles,
respectively; and
``(W) provides that the State will enforce the registration
requirements of section 13902 by suspending the operation of
any vehicle discovered to be operating without registration or
beyond the scope of its registration.''; and
(F) by striking subsection (c) and inserting the
following:
``(c) Use of Grants To Enforce Other Laws.--A State may use amounts
received under a grant under subsection (a) of this section for the
following activities:
``(1) If the activities are carried out in conjunction with
an appropriate inspection of the commercial motor vehicle to
enforce Government or State commercial motor vehicle safety
regulations--
``(A) enforcement of commercial motor vehicle size
and weight limitations at locations other than fixed
weight facilities, at specific locations such as steep
grades or mountainous terrains where the weight of a
commercial motor vehicle can significantly affect the
safe operation of the vehicle, or at ports where
intermodal shipping containers enter and leave the
United States; and
``(B) detection of the unlawful presence of a
controlled substance (as defined under section 102 of
the Comprehensive Drug Abuse Prevention and Control Act
of 1970 (21 U.S.C. 802)) in a commercial motor vehicle
or on the person of any occupant (including the
operator) of the vehicle.
``(2) Documented enforcement of State traffic laws and
regulations designed to promote the safe operation of
commercial motor vehicles, including documented enforcement of
such laws and regulations against non-commercial motor vehicles
when necessary to promote the safe operation of commercial
motor vehicles.''.
(2) Section 31103(b) is amended--
(A) by inserting ``(1)'' after ``activities.--'';
and
(B) by adding at the end the following:
``(2) New entrant motor carrier audit funds.--From the
amounts designated under section 31104(f)(4), the Secretary may
allocate new entrant motor carrier audit funds to States and
local governments without requiring a matching contribution
from such States or local governments.''.
(3) Section 31104(a) is amended to read as follows:
``(a) In General.--There are authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit Account) to carry out
section 31102:
``(1) Not more than $186,100,000 for fiscal year 2004.
``(2) Not more than $189,800,000 for fiscal year 2005.
``(3) Not more than $193,600,000 for fiscal year 2006.
``(4) Not more than $197,500,000 for fiscal year 2007.
``(5) Not more than $201,400,000 for fiscal year 2008.
``(6) Not more than $205,500,000 for fiscal year 2009.''.
(4) Section 31104(f) is amended by striking paragraph (2)
and inserting the following:
``(2) High-priority activities.--The Secretary may
designate up to 5 percent of amounts available for allocation
under paragraph (1) for States, local governments, and
organizations representing government agencies or officials for
carrying out high priority activities and projects that improve
commercial motor vehicle safety and compliance with commercial
motor vehicle safety regulations, including activities and
projects that are national in scope, increase public awareness
and education, or demonstrate new technologies. The amounts
designated under this paragraph shall be allocated by the
Secretary to State agencies, local governments, and
organizations representing government agencies or officials
that use and train qualified officers and employees in
coordination with State motor vehicle safety agencies. At least
80 percent of the amounts designated under this paragraph shall
be awarded to State agencies and local government agencies.
``(3) Safety-performance incentive programs.--The Secretary
may designate up to 10 percent of the amounts available for
allocation under paragraph (1) for safety performance incentive
programs for States. The Secretary shall establish safety
performance criteria to be used to distribute incentive program
funds. Such criteria shall include, at a minimum, reduction in
the number and rate of fatal accidents involving commercial
motor vehicles. Allocations under this paragraph do not require
a matching contribution from a State.
``(4) New entrant audits.--The Secretary shall designate up
to $29,000,000 of the amounts available for allocation under
paragraph (1) for audits of new entrant motor carriers
conducted pursuant to 31144(f). The Secretary may withhold such
funds from a State or local government that is unable to use
government employees to conduct new entrant motor carrier
audits, and may instead utilize the funds to conduct audits in
those jurisdictions.''.
(b) Grants to States for Border Enforcement.--Section 31107 is
amended to read as follows:
``Sec. 31107. Border enforcement grants
``(a) General Authority.--From the funds authorized by section
4222(c)(1) of the Motor Carrier Safety Reauthorization Act of 2004, the
Secretary may make a grant in a fiscal year to a State that shares a
border with another country for carrying out border commercial motor
vehicle safety programs and related enforcement activities and
projects.
``(b) Maintenance of Expenditures.--The Secretary may make a grant
to a State under this section only if the State agrees that the total
expenditure of amounts of the State and political subdivisions of the
State, exclusive of United States Government amounts, for carrying out
border commercial motor vehicle safety programs and related enforcement
activities and projects will be maintained at a level at least equal to
the average level of that expenditure by the State and political
subdivisions of the State for the last 2 State or Federal fiscal years
before October 1, 2003.''.
(c) Grants to States for Commercial Driver's License
Improvements.--Chapter 313 is amended by adding at the end the
following:
``Sec. 31318. Grants for commercial driver's license program
improvements
``(a) General Authority.--From the funds authorized by section
4222(c)(3) of the Motor Carrier Safety Reauthorization Act of 2004, the
Secretary may make a grant to a State, except as otherwise provided in
subsection (e), in a fiscal year to improve its implementation of the
commercial driver's license program, providing the State is in
substantial compliance with the requirements of section 31311 and this
section. The Secretary shall establish criteria for the distribution of
grants and notify the States annually of such criteria.
``(b) Conditions.--Except as otherwise provided in subsection (e),
a State may use a grant under this section only for expenses directly
related to its commercial driver's license program, including, but not
limited to, computer hardware and software, publications, testing,
personnel, training, and quality control. The grant may not be used to
rent, lease, or buy land or buildings. The Secretary shall give
priority to grants that will be used to achieve compliance with the
requirements of the Motor Carrier Safety Improvement Act of 1999. The
Secretary may allocate the funds appropriated for such grants in a
fiscal year among the eligible States whose applications for grants
have been approved, under criteria established by the Secretary.
``(c) Maintenance of Expenditures.--Except as otherwise provided in
subsection (e), the Secretary may make a grant to a State under this
section only if the State agrees that the total expenditure of amounts
of the State and political subdivisions of the State, exclusive of
United States Government amounts, for the operation of the commercial
driver's license program will be maintained at a level at least equal
to the average level of that expenditure by the State and political
subdivisions of the State for the last 2 fiscal years before October 1,
2003.
``(d) Government Share.--Except as otherwise provided in subsection
(e), the Secretary shall reimburse a State, from a grant made under
this section, an amount that is not more than 80 percent of the costs
incurred by the State in a fiscal year in implementing the commercial
driver's license improvements described in subsection (b). In
determining those costs, the Secretary shall include in-kind
contributions by the State.
``(e) High-Priority Activities.--
``(1) The Secretary may make a grant to a State agency,
local government, or organization representing government
agencies or officials for the full cost of research,
development, demonstration projects, public education, or other
special activities and projects relating to commercial driver
licensing and motor vehicle safety that are of benefit to all
jurisdictions or designed to address national safety concerns
and circumstances.
``(2) The Secretary may designate up to 10 percent of the
amounts made available under section 4222(c)(3) of the Motor
Carrier Safety Reauthorization Act of 2004 in a fiscal year for
high-priority activities under subsection (e)(1).
``(f) Emerging Issues.--The Secretary may designate up to 10
percent of the amounts made available under section 4222(c)(3) of the
Motor Carrier Safety Reauthorization Act of 2004 in a fiscal year for
allocation to a State agency, local government, or other person at the
discretion of the Secretary to address emerging issues relating to
commercial driver's license improvements.
``(g) Apportionment.--Except as otherwise provided in subsections
(e) and (f), all amounts available in a fiscal year to carry out this
section shall be apportioned to States according to a formula
prescribed by the Secretary.
``(h) Deduction for Administrative Expenses.--On October 1 of each
fiscal year or as soon after that date as practicable, the Secretary
may deduct, from amounts made available under section 4222(c)(3) of the
Motor Carrier Safety Reauthorization Act of 2004 for that fiscal year,
up to 0.75 percent of those amounts for administrative expenses
incurred in carrying out this section in that fiscal year.''.
(d) Noncompliance With CDL Requirements.--Section 31314 is amended
by striking subsections (a) and (b) and inserting the following:
``(a) First Fiscal Year.--The Secretary of Transportation shall
withhold up to 5 percent of the amount required to be apportioned to a
State under section 104(b)(1), (3), and (4) of title 23 on the first
day of the fiscal year after the first fiscal year beginning after
September 30, 1992, throughout which the State does not comply
substantially with a requirement of section 31311(a) of this title.
``(b) Second Fiscal Year.--The Secretary shall withhold up to 10
percent of the amount required to be apportioned to a State under
section 104(b)(1), (3), and (4) of title 23 on the first day of each
fiscal year after the second fiscal year beginning after September 30,
1992, throughout which the State does not comply substantially with a
requirement of section 31311(a) of this title.''.
(e) Conforming Amendments.--(1) The chapter analysis for chapter
311 is amended--
(A) by striking the item relating to Subchapter I, and
inserting the following:
``SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS'';
and
(B) by striking the item relating to section 31107, and
inserting the following:
``31107. Border enforcement grants.''.
(2) Subchapter I of chapter 311 is amended by striking the
subchapter heading and inserting the following:
``SUBCHAPTER I--GENERAL AUTHORITY AND STATE GRANTS''
(3) The chapter analysis for chapter 313 is amended by inserting
the following after the item relating to section 31317:
``31318. Grants for commercial driver's license program
improvements.''.
SEC. 4224. CDL WORKING GROUP.
(a) In General.--The Secretary of Transportation shall convene a
working group to study and address current impediments and foreseeable
challenges to the commercial driver's license program's effectiveness
and measures needed to realize the full safety potential of the
commercial driver's license program. The working group shall address
such issues as State enforcement practices, operational procedures to
detect and deter fraud, needed improvements for seamless information
sharing between States, effective methods for accurately sharing
electronic data between States, updated technology, and timely
notification from judicial bodies concerning traffic and criminal
convictions of commercial driver's license holders.
(b) Membership.--Members of the working group should include State
motor vehicle administrators, organizations representing government
agencies or officials, members of the Judicial Conference,
representatives of the trucking industry, representatives of labor
organizations, safety advocates, and other significant stakeholders.
(c) Report.--Within 2 years after the date of enactment of this
Act, the Secretary, on behalf of the working group, shall complete a
report of the working group's findings and recommendations for
legislative, regulatory, and enforcement changes to improve the
commercial driver's license program. The Secretary shall promptly
transmit the report to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure.
(d) Funding.--From the funds authorized by section 4222(c)(3) of
this title, $200,000 shall be made available for each of fiscal years
2004 and 2005 to carry out this section.
SEC. 4225. CDL LEARNER'S PERMIT PROGRAM.
(a) In General.--Chapter 313 is amended--
(1) by striking ``time.'' in section 31302 and inserting
``license, and may have only 1 learner's permit at any time.'';
(2) by inserting ``and learners' permits'' after
``licenses'' the first place it appears in section 31308;
(3) by striking ``licenses.'' in section 31308 and
inserting ``licenses and permits.'';
(4) by redesignating paragraphs (2) and (3) of section
31308 as paragraphs (3) and (4), respectively, and inserting
after paragraph (1) the following:
``(2) before a commercial driver's license learner's permit
can be issued to an individual, the individual must pass a
written test on the operation of a commercial motor vehicle
that complies with the minimum standards prescribed by the
Secretary under section 31305(a) of this title;'';
(5) by inserting ``or learner's permit'' after ``license''
each place it appears in paragraphs (3) and (4), as
redesignated, of section 31308; and
(6) by inserting ``or learner's permit'' after ``license''
each place it appears in section 31309(b).
(b) Conforming Amendments.--
(1) Section 31302 is amended by inserting ``and learner's
permits'' in the section caption.
(2) Sections 31308 and 31309 are each amended by inserting
``and learner's permit'' after ``license'' in the section
captions.
(3) The chapter analysis for chapter 313 is amended by
striking the item relating to section 31302 and inserting the
following:
``31302. Limitation on the number of driver's licenses and learner's
permits.''.
(4) The chapter analysis for chapter 313 is amended by
striking the items relating to sections 31308 and 31309 and
inserting the following:
``31308. Commercial driver's license and learner's permit.
``31309. Commercial driver's license and learner's permit information
system.''.
SEC. 4226. HOBBS ACT.
(a) Section 2342(3)(A) of title 28, United States Code, is amended
to read as follows:
``(A) the Secretary of Transportation issued
pursuant to section 2, 9, 37, or 41 of the Shipping
Act, 1916 (46 U.S.C. App. 802, 803, 808, 835, 839, and
841a) or pursuant to Part B or C of subtitle IV of
title 49 or pursuant to subchapter III of chapter 311,
chapter 313, and chapter 315 of Part B of subtitle VI
of title 49; and''.
(b) Section 351(a) is amended to read as follows:
``(a) Judicial Review.--An action of the Secretary of
Transportation in carrying out a duty or power transferred under the
Department of Transportation Act (Public Law 89-670; 80 Stat. 931), or
an action of the Administrator of the Federal Railroad Administration,
Federal Motor Carrier Safety Administration, or the Federal Aviation
Administration in carrying out a duty or power specifically assigned to
the Administrator by that Act, may be reviewed judicially to the same
extent and in the same way as if the action had been an action by the
department, agency, or instrumentality of the United States Government
carrying out the duty or power immediately before the transfer or
assignment.''.
(c) Section 352 is amended to read as follows:
``Sec. 352. Authority to carry out certain transferred duties and
powers
``In carrying out a duty or power transferred under the Department
of Transportation Act (Public Law 89-670; 80 Stat. 931), the Secretary
of Transportation and the Administrators of the Federal Railroad
Administration, the Federal Motor Carrier Safety Administration, and
the Federal Aviation Administration have the same authority that was
vested in the department, agency, or instrumentality of the United
States Government carrying out the duty or power immediately before the
transfer. An action of the Secretary or Administrator in carrying out
the duty or power has the same effect as when carried out by the
department, agency, or instrumentality.''.
SEC. 4227. PENALTY FOR DENIAL OF ACCESS TO RECORDS.
Section 521(b)(2) is amended by adding at the end the following:
``(E) Copying of records and access to equipment, lands, and
buildings.--A motor carrier subject to chapter 51 of subtitle III, a
motor carrier, broker, or freight forwarder subject to part B of
subtitle IV, or the owner or operator of a commercial motor vehicle
subject to part B of subtitle VI of this title who fails to allow the
Secretary, or an employee designated by the Secretary, promptly upon
demand to inspect and copy any record or inspect and examine equipment,
lands, buildings and other property in accordance with sections 504(c),
5121(c), and 14122(b) of this title shall be liable to the United
States for a civil penalty not to exceed $500 for each offense, and
each day the Secretary is denied the right to inspect and copy any
record or inspect and examine equipment, lands, buildings and other
property shall constitute a separate offense, except that the total of
all civil penalties against any violator for all offenses related to a
single violation shall not exceed $5,000. It shall be a defense to such
penalty that the records did not exist at the time of the Secretary's
request or could not be timely produced without unreasonable expense or
effort. Nothing herein amends or supersedes any remedy available to the
Secretary under sections 502(d), 507(c), or other provision of this
title.''.
SEC. 4228. MEDICAL PROGRAM.
(a) In General.--Subchapter III of chapter 311 is amended by adding
at the end the following:
``Sec. 31149. Medical program
``(a) Medical Review Board.--
``(1) Establishment and function.--The Secretary of
Transportation shall establish a Medical Review Board to serve
as an advisory committee to provide the Federal Motor Carrier
Safety Administration with medical advice and recommendations
on driver qualification medical standards and guidelines,
medical examiner education, and medical research.
``(2) Composition.--The Medical Review Board shall be
appointed by the Secretary and shall consist of 5 members
selected from medical institutions and private practice. The
membership shall reflect expertise in a variety of specialties
relevant to the functions of the Federal Motor Carrier Safety
Administration.
``(b) Chief Medical Examiner.--The Secretary shall appoint a chief
medical examiner for the Federal Motor Carrier Safety Administration.
``(c) Medical Standards and Requirements.--The Secretary, with the
advice of the Medical Review Board and the chief medical examiner,
shall--
``(1) establish, review, and revise--
``(A) medical standards for applicants for and
holders of commercial driver's licenses that will
ensure that the physical condition of operators of
commercial motor vehicles is adequate to enable them to
operate the vehicles safely;
``(B) requirements for periodic physical
examinations of such operators performed by medical
examiners who have received training in physical and
medical examination standards and are listed on a
national registry maintained by the Department of
Transportation; and
``(C) requirements for notification of the chief
medical examiner if such an applicant or holder--
``(i) fails to meet the applicable
standards; or
``(ii) is found to have a physical or
mental disability or impairment that would
interfere with the individual's ability to
operate a commercial motor vehicle safely;
``(2) require each holder of a commercial driver's license
or learner's permit to have a current valid medical
certificate;
``(3) issue such certificates to such holders and
applicants who are found, upon examination, to be physically
qualified to operate a commercial motor vehicle and to meet
applicable medical standards; and
``(4) develop, as appropriate, specific courses and
materials for medical examiners listed in the national registry
established under this section, and require those medical
examiners to complete specific training, including refresher
courses, to be listed in the registry.
``(d) National Registry of Medical Examiners.--The Secretary,
through the Federal Motor Carrier Safety Administration--
``(1) shall establish and maintain a current national
registry of medical examiners who are qualified to perform
examination, testing, inspection, and issuance of a medical
certificate;
``(2) shall delegate to those examiners the authority to
issue such certificates if the Medical Review Board develops a
system to identify the medical examination forms uniquely and
track them; and
``(3) shall remove from the registry the name of any
medical examiner that fails to meet the qualifications
established by the Secretary for being listed in the registry.
``(e) Consultation and Cooperation with FAA.--
``(1) In general.--The Administrator of the Federal Motor
Carrier Safety Administration shall consult the Administrator
of the Federal Aviation Administration with respect to
examinations, the issuance of certificates, standards, and
procedures under this section in order to take advantage of
such aspects of the Federal Aviation Administration's airman
certificate program under chapter 447 of this title as the
Administrator deems appropriate for carrying out this section.
``(2) Use of FAA-qualified examiners.--The Administrator of
the Federal Motor Carrier Safety Administration and the
Administrator of the Federal Aviation Administration are
authorized and encouraged to execute a memorandum of
understanding under which individuals holding or applying for a
commercial driver's license or learner's permit may be
examined, for purposes of this section, by medical examiners
who are qualified to administer medical examinations for airman
certificates under chapter 447 of this title and the
regulations thereunder--
``(A) until the national registry required by
subsection (d) is fully established; and
``(B) to the extent that the Administrators
determine appropriate, after that registry is
established.
``(f) Regulations.--The Secretary is authorized to promulgate such
regulations as may be necessary to carry out this section.''.
(b) Medical Examiners.--Section 31136(a)(3) is amended to read as
follows:
``(3) the physical condition of operators of commercial
motor vehicles is adequate to enable them to operate the
vehicles safely, and the periodic physical examinations
required of such operators are performed by medical examiners
who have received training in physical and medical examination
standards and are listed on a national registry maintained by
the Department of Transportation; and''.
(c) Definition of Medical Examiner.--Section 31132 is amended--
(1) by redesignating paragraphs (6) through (10) as
paragraphs (7) through (11), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) `medical examiner' means an individual licensed,
certified, or registered in accordance with regulations issued
by the Federal Motor Carrier Safety Administration as a medical
examiner.''.
(d) Conforming Amendment.--The chapter analysis for chapter 311 is
amended by inserting after the item relating to section 31148 the
following:
``31149. Medical program.''.
(e) Effective Date.--The amendment made by subsection (a) shall
take effect 1 year after the date of enactment of this Act.
SEC. 4229. OPERATION OF COMMERCIAL MOTOR VEHICLES BY INDIVIDUALS WHO
USE INSULIN TO TREAT DIABETES MELLITUS.
(a) Revision of Final Rule.--Not later than 90 days after the date
of the enactment of this Act, the Secretary shall revise the final rule
to allow individuals who use insulin to treat their diabetes to operate
commercial motor vehicles in interstate commerce. The revised final
rule shall provide for the individual assessment of applicants who use
insulin to treat their diabetes and who are, except for their use of
insulin, otherwise qualified under the Federal Motor Carrier Safety
Regulations. The revised final rule shall be consistent with the
criteria described in section 4018 of the Transportation Equity Act for
the 21st Century (49 U.S.C. 31305 note) and shall conclude the
rulemaking process in the Federal Motor Carrier Safety Administration
docket relating to qualifications of drivers with diabetes.
(b) No History of Driving While Using Insulin Required for
Qualification.--The Secretary may not require individuals to have
experience operating commercial motor vehicles while using insulin in
order to qualify to operate a commercial motor vehicle in interstate
commerce.
(c) History of Diabetes Control.--The Secretary may require an
individual to have used insulin for a minimum period of time and
demonstrated stable control of diabetes in order to qualify to operate
a commercial motor vehicle in interstate commerce. Any such
requirement, including any requirement with respect to the duration of
such insulin use, shall be consistent with the findings of the expert
medical panel reported in July 2000 in ``A Report to Congress on the
Feasibility of a Program to Qualify Individuals with Insulin-Treated
Diabetes Mellitus to Operate Commercial Motor Vehicles in Interstate
Commerce as Directed by the Transportation Equity Act for the 21st
Century''.
(d) Applicable Standard.--The Secretary shall ensure that
individuals who use insulin to treat their diabetes are not held to a
higher standard than other qualified commercial drivers, except to the
extent that limited operating, monitoring, or medical requirements are
deemed medically necessary by experts in the field of diabetes
medicine.
SEC. 4230. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR CARRIERS.
(a) Transportation of Passengers.--
(1) Section 31138(a) is amended to read as follows:
``(a) General Requirement.--The Secretary of Transportation shall
prescribe regulations to require minimum levels of financial
responsibility sufficient to satisfy liability amounts established by
the Secretary covering public liability and property damage for the
transportation of passengers by motor vehicle in the United States
between a place in a State and--
``(1) a place in another State;
``(2) another place in the same State through a place
outside of that State; or
``(3) a place outside the United States.''.
(2) Section 31138(c) is amended by adding at the end the
following:
``(4) The Secretary may require a person, other than a
motor carrier as defined in section 13102(12) of this title,
transporting passengers by motor vehicle to file with the
Secretary the evidence of financial responsibility specified in
subsection (c)(1) of this section in an amount not less than
that required by this section, and the laws of the State or
States in which the person is operating, to the extent
applicable. The extent of the financial responsibility must be
sufficient to pay, not more than the amount of the financial
responsibility, for each final judgment against the person for
bodily injury to, or death of, an individual resulting from the
negligent operation, maintenance, or use of motor vehicles, or
for loss or damage to property, or both.''.
(b) Transportation of Property.--Section 31139 is amended--
(1) by striking so much of subsection (b) as precedes
paragraph (2) and inserting the following:
``(b) General Requirements and Minimum Amount.--
``(1) The Secretary of Transportation shall prescribe
regulations to require minimum levels of financial
responsibility sufficient to satisfy liability amounts
established by the Secretary covering public liability,
property damage, and environmental restoration for the
transportation of property by motor vehicle in the United
States between a place in a State and--
``(A) a place in another State;
``(B) another place in the same State through a
place outside of that State; or
``(C) a place outside the United States.'';
(2) by aligning the left margin of paragraph (2) of
subsection (b) with the left margin of paragraph (1) of that
subsection (as amended by paragraph (1) of this subsection);
and
(3) by redesignating subsection (c) through (g) as
subsections (d) through (h), respectively, and inserting after
subsection (b) the following:
``(c) Filing of Evidence of Financial Responsibility.--The
Secretary may require a motor private carrier, as defined in section
13102 of this title, to file with the Secretary the evidence of
financial responsibility specified in subsection (b) of this section in
an amount not less than that required by this section, and the laws of
the State or States in which the motor private carrier is operating, to
the extent applicable. The amount of the financial responsibility must
be sufficient to pay, not more than the amount of the financial
responsibility, for each final judgment against the motor private
carrier for bodily injury to, or death of, an individual resulting from
negligent operation, maintenance, or use of motor vehicles, or for loss
or damage to property, or both.''.
SEC. 4231. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS AND FALSE
RECORDS.
(a) Section 521(b)(2)(B) is amended to read as follows:
``(B) Recordkeeping and reporting violations.--A person
required to make a report to the Secretary, answer a question,
or make, prepare, or preserve a record under section 504 of
this title or under any regulation issued by the Secretary
pursuant to subchapter III of chapter 311 (except sections
31138 and 31139) or section 31502 of this title about
transportation by motor carrier, motor carrier of migrant
workers, or motor private carrier, or an officer, agent, or
employee of that person--
``(i) who does not make that report, does not
specifically, completely, and truthfully answer that
question in 30 days from the date the Secretary
requires the question to be answered, or does not make,
prepare, or preserve that record in the form and manner
prescribed by the Secretary, shall be liable to the
United States for a civil penalty in an amount not to
exceed $1,000 for each offense, and each day of the
violation shall constitute a separate offense, except
that the total of all civil penalties assessed against
any violator for all offenses related to any single
violation shall not exceed $10,000; or
``(ii) who knowingly falsifies, destroys,
mutilates, or changes a required report or record,
knowingly files a false report with the Secretary,
knowingly makes or causes or permits to be made a false
or incomplete entry in that record about an operation
or business fact or transaction, or knowingly makes,
prepares, or preserves a record in violation of a
regulation or order of the Secretary, shall be liable
to the United States for a civil penalty in an amount
not to exceed $10,000 for each violation, if any such
action can be shown to have misrepresented a fact that
constitutes a violation other than a reporting or
recordkeeping violation.''.
(b) Section 31310(i)(2) is amended to read as follows:
``(2) The Secretary shall prescribe regulations
establishing sanctions and penalties related to violations of
out-of-service orders by individuals operating commercial motor
vehicles. The regulations shall require at least that--
``(A) an operator of a commercial motor vehicle
found to have committed a first violation of an out-of-
service order shall be disqualified from operating such
a vehicle for at least 180 days and liable for a civil
penalty of at least $2,500;
``(B) an operator of a commercial motor vehicle
found to have committed a second violation of an out-
of-service order shall be disqualified from operating
such a vehicle for at least 2 years and not more than 5
years and liable for a civil penalty of at least
$5,000;
``(C) an employer that knowingly allows or requires
an employee to operate a commercial motor vehicle in
violation of an out-of-service order shall be liable
for a civil penalty of not more than $25,000; and
``(D) an employer that knowingly and willfully
allows or requires an employee to operate a commercial
motor vehicle in violation of an out-of-service order
shall, upon conviction, be subject for each offense to
imprisonment for a term not to exceed 1 year or a fine
under title 18, United States Code, or both.''.
SEC. 4232. ELIMINATION OF COMMODITY AND SERVICE EXEMPTIONS.
(a) Section 13506(a) is amended--
(1) by striking paragraphs (6), (11), (12), (13), and (15);
(2) by redesignating paragraphs (7), (8), (9), (10), and
(14) as paragraphs (6), (7), (8), (9) and (10), respectively;
(3) by inserting ``or'' after the semicolon in paragraph
(9), as redesignated; and
(4) striking ``13904(d); or'' in paragraph (1), as
redesignated, and inserting ``14904(d).''.
(b) Section 13507 is amended by striking ``(6), (8), (11), (12), or
(13)'' and inserting ``(6)''.
SEC. 4233. INTRASTATE OPERATIONS OF INTERSTATE MOTOR CARRIERS.
(a) Subsection (a) of section 31144 is amended to read as follows:
``(a) In General.--The Secretary shall--
``(1) determine whether an owner or operator is fit to
operate safely commercial motor vehicles, utilizing among other
things the accident record of an owner or operator operating in
interstate commerce and the accident record and safety
inspection record of such owner or operator in operations that
affect interstate commerce;
``(2) periodically update such safety fitness
determinations;
``(3) make such final safety fitness determinations readily
available to the public; and
``(4) prescribe by regulation penalties for violations of
this section consistent with section 521.''.
(b) Subsection (c) of section 31144 is amended by adding at the end
the following:
``(5) Transportation affecting interstate commerce.--Owners
or operators of commercial motor vehicles prohibited from
operating in interstate commerce pursuant to paragraphs (1)
through (3) of this section may not operate any commercial
motor vehicle that affects interstate commerce until the
Secretary determines that such owner or operator is fit.''.
(c) Section 31144 is amended by redesignating subsections (d), (e),
and the second subsection (c) as subsections (e), (f), and (g),
respectively, and inserting after subsection (c) the following:
``(d) Determination of Unfitness by a State.--If a State that
receives Motor Carrier Safety Assistance Program funds pursuant to
section 31102 of this title determines, by applying the standards
prescribed by the Secretary under subsection (b) of this section, that
an owner or operator of commercial motor vehicles that has its
principal place of business in that State and operates in intrastate
commerce is unfit under such standards and prohibits the owner or
operator from operating such vehicles in the State, the Secretary shall
prohibit the owner or operator from operating such vehicles in
interstate commerce until the State determines that the owner or
operator is fit.''.
SEC. 4234. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.
(a) In General.--Chapter 2 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 38. Commercial motor vehicles required to stop for inspections
``(a) A driver of a commercial motor vehicle, as defined in section
31132(1) of title 49, shall stop and submit to inspection of the
vehicle, driver, cargo, and required records when directed to do so by
an authorized employee of the Federal Motor Carrier Safety
Administration, Department of Transportation, at or in the vicinity of
an inspection site. The driver shall not leave the inspection site
until authorized to do so by an authorized employee.
``(b) A driver of a commercial motor vehicle, as defined in
subsection (a), who knowingly fails to stop for inspection when
directed to do so by an authorized employee of the Federal Motor
Carrier Safety Administration at or in the vicinity of an inspection
site, or leaves the inspection site without authorization, shall be
fined under this title or imprisoned not more than 1 year, or both.''.
(b) Authority of FMCSA.--Chapter 203 of title 18, United States
Code, is amended by adding at the end the following:
``Sec. 3064. Powers of Federal Motor Carrier Safety Administration
``Authorized employees of the Federal Motor Carrier Safety
Administration may direct a driver of a commercial motor vehicle, as
defined in 49 U.S.C. 31132(1), to stop for inspection of the vehicle,
driver, cargo, and required records at or in the vicinity of an
inspection site.''.
(c) Conforming Amendments.--
(1) The chapter analysis for chapter 2 of title 18, United
States Code, is amended by inserting after the item relating to
section 37 the following:
``38. Commercial motor vehicles required to stop for inspections.''.
(2) The chapter analysis for chapter 203 of title 18,
United States Code, is amended by inserting after the item
relating to section 3063 the following:
``3064. Powers of Federal Motor Carrier Safety Administration.''.
SEC. 4235. REVOCATION OF OPERATING AUTHORITY.
Section 13905(e) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Protection of safety.--Notwithstanding subchapter II
of chapter 5 of title 5, the Secretary--
``(A) may suspend the registration of a motor
carrier, a freight forwarder, or a broker for failure
to comply with requirements of the Secretary pursuant
to section 13904(c) or 13906 of this title, or an order
or regulation of the Secretary prescribed under those
sections; and
``(B) shall revoke the registration of a motor
carrier that has been prohibited from operating in
interstate commerce for failure to comply with the
safety fitness requirements of section 31144 of this
title.'';
(2) by striking ``may suspend a registration''in paragraph
(2) and inserting ``shall revoke the registration''; and
(3) by striking paragraph (3) and inserting the following:
``(3) Notice; period of suspension.--The Secretary may
suspend or revoke under this subsection the registration only
after giving notice of the suspension or revocation to the
registrant. A suspension remains in effect until the registrant
complies with the applicable sections or, in the case of a
suspension under paragraph (2), until the Secretary revokes the
suspension.''.
SEC. 4236. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER MANAGEMENT.
(a) In General.--Section 31135 is amended--
(1) by inserting ``(a) In General.--'' before ``Each''; and
(2) by adding at the end the following:
``(b) Pattern of Non-Compliance.--If an officer of a motor carrier
engages in a pattern or practice of avoiding compliance, or masking or
otherwise concealing non-compliance, with regulations on commercial
motor vehicle safety prescribed under this subchapter, the Secretary
may suspend, amend, or revoke any part of the motor carrier's
registration under section 13905 of this title.
``(c) List of Proposed Officers.--Each person seeking registration
as a motor carrier under section 13902 of this title shall submit a
list of the proposed officers of the motor carrier. If the Secretary
determines that any of the proposed officers has previously engaged in
a pattern or practice of avoiding compliance, or masking or otherwise
concealing non-compliance, with regulations on commercial motor vehicle
safety prescribed under this chapter, the Secretary may deny the
person's application for registration as a motor carrier under section
13902(a)(3).
``(d) Regulations.--The Secretary shall by regulation establish
standards to implement subsections (b) and (c).
``(e) Definitions.--In this section:
``(1) Motor carrier.--The term motor carrier has the
meaning given the term in section 13102(12) of this title; and
``(2) Officer.--The term officer means an owner, chief
executive officer, chief operating officer, chief financial
officer, safety director, vehicle maintenance supervisor and
driver supervisor of a motor carrier, regardless of the title
attached to those functions.''.
(b) Registration of Carriers.--Section 13902(a)(1)(B) is amended to
read as follows:
``(B) any safety regulations imposed by the Secretary, the
duties of employers and employees established by the Secretary
under section 31135, and the safety fitness requirements
established by the Secretary under section 31144; and''.
SEC. 4237. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.
(a) In General.--Section 31108 is amended to read as follows:
``Sec. 31108. Motor carrier research and technology program
``(a) Research, Technology, and Technology Transfer Activities.--
``(1) The Secretary of Transportation shall establish and
carry out a motor carrier and motor coach research and
technology program. The Secretary may carry out research,
development, technology, and technology transfer activities
with respect to--
``(A) the causes of accidents, injuries and
fatalities involving commercial motor vehicles; and
``(B) means of reducing the number and severity of
accidents, injuries and fatalities involving commercial
motor vehicles.
``(2) The Secretary may test, develop, or assist in testing
and developing any material, invention, patented article, or
process related to the research and technology program.
``(3) The Secretary may use the funds appropriated to carry
out this section for training or education of commercial motor
vehicle safety personnel, including, but not limited to,
training in accident reconstruction and detection of controlled
substances or other contraband, and stolen cargo or vehicles.
``(4) The Secretary may carry out this section--
``(A) independently;
``(B) in cooperation with other Federal
departments, agencies, and instrumentalities and
Federal laboratories; or
``(C) by making grants to, or entering into
contracts, cooperative agreements, and other
transactions with, any Federal laboratory, State
agency, authority, association, institution, for-profit
or non-profit corporation, organization, foreign
country, or person.
``(5) The Secretary shall use funds made available to carry
out this section to develop, administer, communicate, and
promote the use of products of research, technology, and
technology transfer programs under this section.
``(b) Collaborative Research and Development.--
``(1) To advance innovative solutions to problems involving
commercial motor vehicle and motor carrier safety, security,
and efficiency, and to stimulate the deployment of emerging
technology, the Secretary may carry out, on a cost-shared
basis, collaborative research and development with--
``(A) non-Federal entities, including State and
local governments, foreign governments, colleges and
universities, corporations, institutions, partnerships,
and sole proprietorships that are incorporated or
established under the laws of any State; and
``(B) Federal laboratories.
``(2) In carrying out this subsection, the Secretary may
enter into cooperative research and development agreements (as
defined in section 12 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3710a)).
``(3)(A) The Federal share of the cost of activities
carried out under a cooperative research and development
agreement entered into under this subsection shall not exceed
50 percent, except that if there is substantial public interest
or benefit, the Secretary may approve a greater Federal share.
``(B) All costs directly incurred by the non-Federal
partners, including personnel, travel, and hardware or software
development costs, shall be credited toward the non-Federal
share of the cost of the activities described in subparagraph
(A).
``(4) The research, development, or use of a technology
under a cooperative research and development agreement entered
into under this subsection, including the terms under which the
technology may be licensed and the resulting royalties may be
distributed, shall be subject to the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.).
``(5) Section 5 of title 41, United States Code, shall not
apply to a contract or agreement entered into under this
section.
``(c) Availability of Amounts.--The amounts made available under
section 4222(a) of the Motor Carrier Safety Reauthorization Act of 2004
to carry out this section shall remain available until expended.
``(d) Contract Authority.--Approval by the Secretary of a grant
with funds made available under section 4222(a) of the Motor Carrier
Safety Reauthorization Act of 2004 to carry out this section imposes
upon the United States Government a contractual obligation for payment
of the Government's share of costs incurred in carrying out the
objectives of the grant.''.
(b) Conforming Amendment.--The chapter analysis for chapter 311 is
amended by striking the item relating to section 31108, and inserting
the following:
``31108. Motor carrier research and technology program.''.
SEC. 4238. REVIEW OF COMMERCIAL ZONE EXEMPTION PROVISION.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of Transportation shall complete a review of
part 372 of title 49, Code of Federal Regulations, as it pertains to
commercial zone exemptions (excluding border commercial zones) from
Department of Transportation and Surface Transportation Board
regulations governing interstate commerce. The Secretary shall
determine whether such exemptions should continue to apply as written,
should undergo revision, or should be revoked. The Secretary shall
submit to the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation and
Infrastructure a report of the review not later than 14 months after
such date of enactment.
(b) Notice.--The Secretary shall publish notice of the review
required by subsection (a) and provide and opportunity for the public
to submit comments on the effect of continuing, revising, or revoking
the commercial zone exemptions in part 372 of title 49, Code of Federal
Regulations.
SEC. 4239. INTERNATIONAL COOPERATION.
(a) In General.--Chapter 311 is amended by inserting at the end the
following:
``Subchapter IV--Miscellaneous
``Sec. 31161. International cooperation
``The Secretary is authorized to use funds appropriated under
section 31104(i) of this title to participate and cooperate in
international activities to enhance motor carrier, commercial motor
vehicle, driver, and highway safety by such means as exchanging
information, conducting research, and examining needs, best practices,
and new technology.''.
(b) Clerical Amendment.--The chapter analysis for chapter 311 is
amended by adding at the end the following:
``SUBCHAPTER IV--MISCELLANEOUS
``31161. International cooperation.''.
SEC. 4240. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM MANAGEMENT.
(a) In General.--Section 31106(b) is amended--
(1) by striking paragraphs (2) and (3) and inserting the
following:
``(2) Design.--The program shall link Federal motor carrier
safety information systems with State commercial vehicle
registration and licensing systems and shall be designed to
enable a State to--
``(A) determine the safety fitness of a motor
carrier or registrant when licensing or registering the
registrant or motor carrier or while the license or
registration is in effect; and
``(B) deny, suspend, or revoke the commercial motor
vehicle registrations of a motor carrier or registrant
that has been issued an operations out-of-service order
by the Secretary.
``(3) Conditions for participation.--The Secretary shall
require States, as a condition of participation in the program,
to--
``(A) comply with the uniform policies, procedures,
and technical and operational standards prescribed by
the Secretary under subsection (a)(4);
``(B) possess the authority to impose sanctions
relating to commercial motor vehicle registration on
the basis of a Federal safety fitness determination;
and
``(C) cancel the motor vehicle registration and
seize the registration plates of an employer found
liable under section 31310(i)(2)(C) of this title for
knowingly allowing or requiring an employee to operate
a commercial motor vehicle in violation of an out-of-
service order.''; and
(2) by striking paragraph (4).
(b) Performance and Registration Information System Management
Grants.--
(1) Subchapter I of chapter 311, as amended by this title,
is further amended by adding at the end the following:
``Sec. 31109. Performance and Registration Information System
Management
``(a) In General.--From the funds authorized by section 4222(c)(2)
of the Motor Carrier Safety Reauthorization Act of 2004, the Secretary
may make a grant in a fiscal year to a State to implement the
performance and registration information system management requirements
of section 31106(b).
``(b) Availability of Amounts.--Amounts made available to a State
under section 4222(c)(2) of the Motor Carrier Safety Reauthorization
Act of 2004 to carry out this section shall remain available until
expended.
``(c) Secretary's Approval.--Approval by the Secretary of a grant
to a State under section 4222(c)(2) of the Motor Carrier Safety
Reauthorization Act of 2004 to carry out this section is a contractual
obligation of the Government for payment of the amount of the grant.''.
(2) Conforming amendment.--The chapter analysis for chapter
311 is amended by inserting after the item relating to section
31108 the following:
``31109. Performance and Registration Information System Management.''.
SEC. 4241. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS
DEPLOYMENT.
(a) In General.--The Secretary shall carry out a commercial vehicle
information systems and networks program to--
(1) improve the safety and productivity of commercial
vehicles; and
(2) reduce costs associated with commercial vehicle
operations and Federal and State commercial vehicle regulatory
requirements.
(b) Purpose.--The program shall advance the technological
capability and promote the deployment of intelligent transportation
system applications for commercial vehicle operations, including
commercial vehicle, commercial driver, and carrier-specific information
systems and networks.
(c) Core Deployment Grants.--
(1) In general.--The Secretary shall make grants to
eligible States for the core deployment of commercial vehicle
information systems and networks.
(2) Eligibility.--To be eligible for a core deployment
grant under this section, a State--
(A) shall have a commercial vehicle information
systems and networks program plan and a top level
system design approved by the Secretary;
(B) shall certify to the Secretary that its
commercial vehicle information systems and networks
deployment activities, including hardware procurement,
software and system development, and infrastructure
modifications, are consistent with the national
intelligent transportation systems and commercial
vehicle information systems and networks architectures
and available standards, and promote interoperability
and efficiency to the extent practicable; and
(C) shall agree to execute interoperability tests
developed by the Federal Motor Carrier Safety
Administration to verify that its systems conform with
the national intelligent transportation systems
architecture, applicable standards, and protocols for
commercial vehicle information systems and networks.
(3) Amount of grants.--The maximum aggregate amount a State
may receive under this section for the core deployment of
commercial vehicle information systems and networks may not
exceed $2,500,000.
(4) Use of funds.--Funds from a grant under this subsection
may only be used for the core deployment of commercial vehicle
information systems and networks. Eligible States that have
either completed the core deployment of commercial vehicle
information systems and networks or completed such deployment
before core deployment grant funds are expended may use the
remaining core deployment grant funds for the expanded
deployment of commercial vehicle information systems and
networks in their State.
(d) Expanded Deployment Grants.--
(1) In general.--For each fiscal year, from the funds
remaining after the Secretary has made core deployment grants
under subsection (c) of this section, the Secretary may make
grants to each eligible State, upon request, for the expanded
deployment of commercial vehicle information systems and
networks.
(2) Eligibility.--Each State that has completed the core
deployment of commercial vehicle information systems and
networks is eligible for an expanded deployment grant.
(3) Amount of grants.--Each fiscal year, the Secretary may
distribute funds available for expanded deployment grants
equally among the eligible States, but not to exceed $1,000,000
per State.
(4) Use of funds.--A State may use funds from a grant under
this subsection only for the expanded deployment of commercial
vehicle information systems and networks.
(e) Federal Share.--The Federal share of the cost of a project
payable from funds made available to carry out this section shall not
exceed 50 percent. The total Federal share of the cost of a project
payable from all eligible sources shall not exceed 80 percent.
(f) Applicability of Title 23, United States Code.--Funds
authorized to be appropriated under section 4222(c)(4) shall be
available for obligation in the same manner and to the same extent as
if such funds were apportioned under chapter 1 of title 23, United
States Code, except that such funds shall remain available until
expended.
(g) Definitions.--In this section:
(1) Commercial vehicle information systems and networks.--
The term ``commercial vehicle information systems and
networks'' means the information systems and communications
networks that provide the capability to--
(A) improve the safety of commercial vehicle
operations;
(B) increase the efficiency of regulatory
inspection processes to reduce administrative burdens
by advancing technology to facilitate inspections and
increase the effectiveness of enforcement efforts;
(C) advance electronic processing of registration
information, driver licensing information, fuel tax
information, inspection and crash data, and other
safety information;
(D) enhance the safe passage of commercial vehicles
across the United States and across international
borders; and
(E) promote the communication of information among
the States and encourage multistate cooperation and
corridor development.
(2) Commercial vehicle operations.--The term ``commercial
vehicle operations''--
(A) means motor carrier operations and motor
vehicle regulatory activities associated with the
commercial movement of goods, including hazardous
materials, and passengers; and
(B) with respect to the public sector, includes the
issuance of operating credentials, the administration
of motor vehicle and fuel taxes, and roadside safety
and border crossing inspection and regulatory
compliance operations.
(3) Core deployment.--The term ``core deployment'' means
the deployment of systems in a State necessary to provide the
State with the following capabilities:
(A) Safety information exchange.--Safety
information exchange to--
(i) electronically collect and transmit
commercial vehicle and driver inspection data
at a majority of inspection sites;
(ii) connect to the Safety and Fitness
Electronic Records system for access to
interstate carrier and commercial vehicle data,
summaries of past safety performance, and
commercial vehicle credentials information; and
(iii) exchange carrier data and commercial
vehicle safety and credentials information
within the State and connect to Safety and
Fitness Electronic Records for access to
interstate carrier and commercial vehicle data.
(B) Interstate credentials administration.--
Interstate credentials administration to--
(i) perform end-to-end processing,
including carrier application, jurisdiction
application processing, and credential
issuance, of at least the International
Registration Plan and International Fuel Tax
Agreement credentials and extend this
processing to other credentials, including
intrastate, titling, oversize/overweight,
carrier registration, and hazardous materials;
(ii) connect to the International
Registration Plan and International Fuel Tax
Agreement clearinghouses; and
(iii) have at least 10 percent of the
transaction volume handled electronically, and
have the capability to add more carriers and to
extend to branch offices where applicable.
(C) Roadside screening.--Roadside electronic
screening to electronically screen transponder-equipped
commercial vehicles at a minimum of 1 fixed or mobile
inspection sites and to replicate this screening at
other sites.
(4) Expanded deployment.--The term ``expanded deployment''
means the deployment of systems in a State that exceed the
requirements of an core deployment of commercial vehicle
information systems and networks, improve safety and the
productivity of commercial vehicle operations, and enhance
transportation security.
SEC. 4242. OUTREACH AND EDUCATION.
(a) In General.--The Secretary of Transportation, through the
National Highway Traffic Safety Administration and the Federal Motor
Carrier Safety Administration, may undertake outreach and education
initiatives, including the ``Share the Road Safely'' program, that may
reduce the number of highway accidents, injuries, and fatalities
involving commercial motor vehicles. The Secretary may not use funds
authorized by this part for the ``Safety Is Good Business'' program.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for fiscal year 2004 to carry out this
section--
(1) $250,000 for the Federal Motor Carrier Safety
Administration; and
(2) $750,000 for the National Highway Traffic Safety
Administration.
SEC. 4243. OPERATION OF RESTRICTED PROPERTY-CARRYING UNITS ON NATIONAL
HIGHWAY SYSTEM.
(a) Restricted Property-Carrying Unit Defined.--Section 31111(a) is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Restricted property-carrying unit.--The term
`restricted property-carrying unit' means any trailer, semi-
trailer, container, or other property-carrying unit that is
longer than 53 feet.''.
(b) Prohibition on Operation of Restricted Property-Carrying
Units.--
(1) In general.--Section 31111(b)(1)(C) is amended to read
as follows:
``(C) allows operation on any segment of the National
Highway System, including the Interstate System, of a
restricted property-carrying unit unless the operation is
specified on the list published under subsection (h);''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect 270 days after the date of enactment of this
subsection.
(c) Limitations.--Section 31111 is amended by adding at the end the
following:
``(h) Restricted Property-Carrying Units.--
``(1) Applicability of prohibition.--
``(A) In general.--Notwithstanding subsection
(b)(1)(C), a restricted property-carrying unit may
continue to operate on a segment of the National
Highway System if the operation of such unit is
specified on the list published under paragraph (2).
``(B) Applicability of state laws and
regulations.--All operations specified on the list
published under paragraph (2) shall continue to be
subject to all State statutes, regulations, limitations
and conditions, including routing-specific, commodity-
specific, and configuration-specific designations and
all other restrictions, in force on June 1, 2003.
``(C) Fire-fighting units.--Subsection (b)(1)(C)
shall not apply to the operation of a restricted
property-carrying unit that is used exclusively for
fire-fighting.
``(2) Listing of restricted property-carrying units.--
``(A) In general.--Not later than 60 days after the
date of enactment of the Motor Carrier Safety
Reauthorization Act of 2004, the Secretary shall
initiate a proceeding to determine and publish a list
of restricted property-carrying units that were
authorized by State officials pursuant to State statute
or regulation on June 1, 2003, and in actual and lawful
operation on a regular or periodic basis (including
seasonal operations) on or before June 1, 2003.
``(B) Limitation.--A restricted property-carrying
unit may not be included on the list published under
subparagraph (A) on the basis that a State law or
regulation could have authorized the operation of the
unit at some prior date by permit or otherwise.
``(C) Publication of final list.--Not later than
270 days after the date of enactment of this
subsection, the Secretary shall publish a final list of
restricted property-carrying units described in
subparagraph (A).
``(D) Updates.--The Secretary shall update the list
published under subparagraph (C) as necessary to
reflect new designations made to the National Highway
System.
``(3) Applicability of prohibition.--The prohibition
established by subsection (b)(1)(C) shall apply to any new
designation made to the National Highway System and remain in
effect on those portions of the National Highway System that
cease to be designated as part of the National Highway System.
``(4) Limitation on statutory construction.--This
subsection does not prevent a State from further restricting in
any manner or prohibiting the operation of a restricted
property-carrying unit; except that such restrictions or
prohibitions shall be consistent with the requirements of this
section and sections 31112 through 31114.''.
(d) Enforcement.--The second sentence of section 141(a) of title
23, United States Code, is amended by striking ``section 31112'' and
inserting ``sections 31111 and 31112''.
SEC. 4244. OPERATION OF LONGER COMBINATION VEHICLES ON NATIONAL HIGHWAY
SYSTEM.
(a) In General.--Section 31112 is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f) National Highway System.--
``(1) General rule.--A State may not allow, on a segment of
the National Highway System that is not covered under
subsection (b) or (c), the operation of a commercial motor
vehicle combination (except a vehicle or load that cannot be
dismantled easily or divided easily and that has been issued a
special permit under applicable State law) with more than 1
property-carrying unit (not including the truck tractor) whose
property-carrying units are more than--
``(A) the maximum combination trailer, semitrailer,
or other type of length limitation allowed by law or
regulation of that State on June 1, 2003; or
``(B) the length of the property-carrying units of
those commercial motor vehicle combinations, by
specific configuration, in actual and lawful operation
on a regular or periodic basis (including continuing
seasonal operation) in that State on or before June 1,
2003.
``(2) Additional limitations.--
``(A) Applicability of state restrictions.--A
commercial motor vehicle combination whose operation in
a State is not prohibited under paragraph (1) may
continue to operate in the State on highways described
in paragraph (1) only in compliance with all State
laws, regulations, limitations, and conditions,
including routing-specific and configuration-specific
designations and all other restrictions in force in the
State on June 1, 2003. Subject to regulations
prescribed by the Secretary under subsection (h), the
State may make minor adjustments of a temporary and
emergency nature to route designations and vehicle
operating restrictions in effect on June 1, 2003, for
specific safety purposes and road construction.
``(B) Additional state restrictions.--This
subsection does not prevent a State from further
restricting in any manner or prohibiting the operation
of a commercial motor vehicle combination subject to
this section, except that such restrictions or
prohibitions shall be consistent with this section and
sections 31113(a), 31113(b), and 31114.
``(C) Minor adjustments.--A State making a minor
adjustment of a temporary and emergency nature as
authorized by subparagraph (A) or further restricting
or prohibiting the operation of a commercial motor
vehicle combination as authorized by subparagraph (B)
shall advise the Secretary not later than 30 days after
the action. The Secretary shall publish a notice of the
action in the Federal Register.
``(3) List of state length limitations.--
``(A) State submissions.--Not later than 60 days
after the date of enactment of the Motor Carrier Safety
Reauthorization Act of 2004, each State shall submit to
the Secretary for publication a complete list of State
length limitations applicable to commercial motor
vehicle combinations operating in the State on the
highways described in paragraph (1). The list shall
indicate the applicable State laws and regulations
associated with the length limitations. If a State does
not submit the information as required, the Secretary
shall complete and file the information for the State.
``(B) Publication of interim list.--Not later than
90 days after the date of enactment of the Motor
Carrier Safety Reauthorization Act of 2004, the
Secretary shall publish an interim list in the Federal
Register consisting of all information submitted under
subparagraph (A). The Secretary shall review for
accuracy all information submitted by a State under
subparagraph (A) and shall solicit and consider public
comment on the accuracy of the information.
``(C) Limitation.--A law or regulation may not be
included on the list submitted by a State or published
by the Secretary merely because it authorized, or could
have authorized, by permit or otherwise, the operation
of commercial motor vehicle combinations not in actual
operation on a regular or periodic basis on or before
June 1, 2003.
``(D) Publication of final list.--Except as revised
under this subparagraph or subparagraph (E), the list
shall be published as final in the Federal Register not
later than 270 days after the date of enactment of the
Motor Carrier Safety Reauthorization Act of 2004. In
publishing the final list, the Secretary shall make any
revisions necessary to correct inaccuracies identified
under subparagraph (B). After publication of the final
list, commercial motor vehicle combinations prohibited
under paragraph (1) may not operate on a highway
described in paragraph (1) except as published on the
list.
``(E) Inaccuracies.--On the Secretary's own motion
or on request by any person (including a State), the
Secretary shall review the list published under
subparagraph (D). If the Secretary decides there is
reason to believe a mistake was made in the accuracy of
the list, the Secretary shall begin a proceeding to
decide whether a mistake was made. If the Secretary
decides there was a mistake, the Secretary shall
publish the correction.''.
(b) Conforming Amendments.--Section 31112 is amended--
(1) by inserting ``126(e) or'' before ``127(d)'' in
subsection (g)(1) (as redesignated by subsection (a) of this
section);
(2) by inserting ``(or June 1, 2003, with respect to
highways described in subsection (f)(1))'' after ``June 2,
1991'' in subsection (g)(3) (as redesignated by subsection (a)
of this section); and
(3) by striking ``Not later than June 15, 1992, the
Secretary'' in subsection (h)(2) (as redesignated by subsection
(a) of this section) and inserting ``The Secretary''; and
(4) by inserting ``or (f)'' in subsection (h)(2) (as
redesignated by subsection (a) of this section) after
``subsection (d)''.
SEC. 4245. APPLICATION OF SAFETY STANDARDS TO CERTAIN FOREIGN MOTOR
CARRIERS.
(a) Application of Safety Standards.--Section 30112 is amended--
(1) by striking ``person'' in subsection (a) and inserting
``person, including a foreign motor carrier,''; and
(2) by adding at the end the following:
``(c) Definitions.--In this section:
``(1) Foreign motor carrier.--The term `foreign motor
carrier' has the meaning given that term in section 13102 of
this title.
``(2) Import.--The term `import' means transport by any
means into the United States, on a permanent or temporary
basis, including the transportation of a motor vehicle into the
United States for the purpose of providing the transportation
of cargo or passengers.''.
(b) Requirement for Certificate of Compliance.--Section 30115 is
amended by adding at the end the following:
``(c) Application to Foreign Motor Carriers.--
``(1) In general.--The requirement for certification
described in subsection (a) shall apply to a foreign motor
carrier that imports a motor vehicle or motor vehicle equipment
into the United States. Such certification shall be made to the
Secretary of Transportation prior to the import of the vehicle
or equipment.
``(2) Definitions.--In this subsection:
``(A) Foreign motor carrier.--The term `foreign
motor carrier' has the meaning given that term in
section 13102 of this title.
``(B) Import.--The term `import' has the meaning
given that term in section 30112 of this title.''.
(c) Time for Compliance.--The amendments made by sections (a) and
(b) shall take effect on September 1, 2004.
SEC. 4246. BACKGROUND CHECKS FOR MEXICAN AND CANADIAN DRIVERS HAULING
HAZARDOUS MATERIALS.
(a) In General.--No commercial motor vehicle operator registered to
operate in Mexico or Canada may operate a commercial motor vehicle
transporting a hazardous material in commerce in the United States
until the operator has undergone a background records check similar to
the background records check required for commercial motor vehicle
operators licensed in the United States to transport hazardous
materials in commerce.
(b) Definitions.--In this section:
(1) Hazardous materials.--The term ``hazardous material''
means any material determined by the Secretary of
Transportation to be a hazardous material for purposes of this
section.
(2) Commercial motor vehicle.--The term ``commercial motor
vehicle'' has the meaning given that term by section 31101 of
title 49, United States Code.
(c) Effective Date.--This section takes effect on April 1, 2004.
SEC. 4247. EXEMPTION OF DRIVERS OF UTILITY SERVICE VEHICLES.
Section 345 of the National Highway System Designation Act of 1995
(49 U.S.C. 31136 note) is amended--
(1) by striking paragraph (4) of subsection (a) and
inserting the following:
``(4) Drivers of utility service vehicles.--
``(A) Inapplicability of federal regulations.--Such
regulations may not apply to a driver of a utility
service vehicle.
``(B) Prohibition on state regulations.--A State, a
political subdivision of a State, an interstate agency,
or other entity consisting of 2 or more States, may not
enact or enforce any law, rule, regulation, or standard
that imposes requirements on a driver of a utility
service vehicle that are similar to the requirements
contained in such regulations.'';
(2) by striking ``Nothing'' in subsection (b) and inserting
``Except as provided in subsection (a)(4), nothing''; and
(3) by striking ``paragraph (2)'' in the first sentence of
subsection (c) and inserting ``an exemption under paragraph (2)
or (4)''.
SEC. 4248. OPERATION OF COMMERCIAL MOTOR VEHICLES TRANSPORTING
AGRICULTURAL COMMODITIES AND FARM SUPPLIES.
(a) Exemption From Hours-of-Service Requirements.--
(1) In general.--Section 345(c) of the National Highway
System Designation Act of 1995 (49 U.S.C. 31136 note), as
amended by section 4247(3) of this title, is amended by
striking ``paragraph (2) or (4)'' and inserting ``paragraph
(1), (2), or (4) of that subsection)''.
(2) Applicability.--The exemption provided by section
345(a)(1) of the National Highway System Designation Act of
1995 (49 U.S.C. 31136 note) shall apply to a person
transporting agricultural commodities or farm supplies for
agricultural purposes under that section on and after the date
of enactment of this Act regardless of any action taken by the
Secretary of Transportation under section 345(c) of that Act
before the date of enactment of this Act.
(b) Definition of Agricultural Commodity.--Section 345(e) of the
National Highway System Designation Act of 1995 (49 U.S.C. 31136 note)
is amended--
(1) by redesignating paragraphs (3), (4), (5), and (6) as
paragraphs (5), (6), (4), and (7), respectively, and moving the
paragraphs so as to appear in numerical order; and
(2) by inserting after paragraph (2) the following:
``(3) Agricultural commodity.--The term `agricultural
commodity' has the meaning given the term in section 102 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5602).''.
SEC. 4249. SAFETY PERFORMANCE HISTORY SCREENING.
(a) In General.--Subchapter III of chapter 311, as amended by
section 4228, is amended by adding at the end the following:
``Sec. 31150. Safety performance history screening
``(a) In General.--The Secretary of Transportation shall provide
companies conducting pre-employment screening services for the motor
carrier industry electronic access to--
``(1) commercial motor vehicle accident reports,
``(2) inspection reports that contain no driver-related
safety violations, and
``(3) serious driver-related safety violation inspection
reports that are contained in the Motor Carrier Management
Information System.
``(b) Establishment.--Prior to making information available to such
companies under subsection (a), the Secretary shall--
``(1) ensure that any information released is done in
accordance with the Fair Credit Reporting Act (15 U.S.C. 1681
et seq.) and all applicable Federal laws;
``(2) require the driver applicant's written consent as a
condition of releasing the information;
``(3) ensure that the information made available to
companies providing pre-employment screening services is not
released to any other unauthorized company or individual,
unless expressly authorized or required by law; and
``(4) provide a procedure for drivers to remedy incorrect
information in a timely manner.
``(c) Design.--To be eligible to have access to information under
subsection (a), a company conducting pre-employment screening services
for the motor carrier industry shall utilize a screening process--
``(1) that is designed to assist the motor carrier industry
in assessing an individual driver's crash and serious safety
violation inspection history as a pre-employment condition;
``(2) the use of which is not mandatory; and
``(3) which is used only during the pre-employment
assessment of a driver-applicant.
``(d) Serious Driver-Related Safety Violations.--In this section,
the term `serious driver-related safety violation' means a violation
listed in the North American Standard Driver Out-of-service Criteria
that prohibits the continued operation of a commercial motor
vehicle.''.
(b) Conforming Amendment.--The chapter analysis for chapter 311, as
amended by section 4228, is amended by inserting after the item
relating to section 31149 the following:
``31150. Safety performance history screening.''.
SEC. 4250. COMPLIANCE REVIEW AUDIT.
Within 1 year after the date of enactment of this Act, the
Inspector General for the Department of Transportation shall audit the
compliance reviews performed by the Federal Motor Carrier Safety
Administration in fiscal year 2003 and submit a report to the Senate
Committee on Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and Infrastructure on--
(1) the enforcement actions taken as a result of the
compliance reviews, including fines, suspension or revocation
of operating authority, unsatisfactory ratings, and follow-up
actions to ensure compliance with Federal motor carrier safety
regulations;
(2) whether compliance reviews are or should be performed
on a corporate-wide basis for all affiliates of the motor
carrier selected for a compliance review as a result of its
Safety Status Measurement System ranking or the submission of a
complaint;
(3) whether the enforcement actions taken by the Federal
Motor Carrier Safety Administration are adequate to assure
future compliance of the motor carrier with Federal safety
regulations and what deterrent effect those enforcement actions
may have industry-wide;
(4) whether the methodology for calculating the crash rate
of commercial motor vehicles in the Safety Status Measurement
System would be more appropriately based on the number of
vehicle miles driven by a motor carrier rather than the number
of trucks operated by the carrier;
(5) whether the public access information in the Safety
Status Measurement System meets the agency's requirements under
the Data Quality Act; and
(6) the existing information Selection System Indicators
criteria and weighting and whether the safety evaluation area
containing data on accidents should receive higher priority for
complaince reviews and inspection selection.
PART III--UNIFIED CARRIER REGISTRATION
SEC. 4261. SHORT TITLE.
This part may be cited as the ``Unified Carrier Registration Act of
2004''.
SEC. 4262. RELATIONSHIP TO OTHER LAWS.
Except as provided in section 14504 of title 49, United States
Code, and sections 14504a and 14506 of title 49, United States Code, as
added by this part, this part is not intended to prohibit any State or
any political subdivision of any State from enacting, imposing, or
enforcing any law or regulation with respect to a motor carrier, motor
private carrier, broker, freight forwarder, or leasing company that is
not otherwise prohibited by law.
SEC. 4263. INCLUSION OF MOTOR PRIVATE AND EXEMPT CARRIERS.
(a) Persons Registered To Provide Transportation or Service as a
Motor Carrier or Motor Private Carrier.--Section 13905 is amended by--
(1) redesignating subsections (b), (c), (d), and (e) as
subsections (c), (d), (e), and (f), respectively; and
(2) inserting after subsection (a) the following:
``(b) Person Registered With Secretary.--Any person having
registered with the Secretary to provide transportation or service as a
motor carrier or motor private carrier under this title, as in effect
on January 1, 2002, but not having registered pursuant to section
13902(a) of this title, shall be deemed, for purposes of this part, to
be registered to provide such transportation or service for purposes of
sections 13908 and 14504a of this title.''.
(b) Security Requirement.--Section 13906(a) is amended by--
(1) redesignating paragraphs (2) and (3) as paragraphs (3)
and (4), respectively; and
(2) inserting the following:
``(2) Security Requirement.--Not later than 120 days after
the date of enactment of the Unified Carrier Registration Act
of 2004, any person, other than a motor private carrier,
registered with the Secretary to provide transportation or
service as a motor carrier under section 13905(b) of this title
shall file with the Secretary a bond, insurance policy, or
other type of security approved by the Secretary, in an amount
not less than required by sections 31138 and 31139 of this
title.''.
SEC. 4264. UNIFIED CARRIER REGISTRATION SYSTEM.
(a) Section 13908 is amended to read as follows:
``Sec. 13908. Registration and other reforms
``(a) Establishment of Unified Carrier Registration System.--The
Secretary, in cooperation with the States, representatives of the motor
carrier, motor private carrier, freight forwarder and broker
industries, and after notice and opportunity for public comment, shall
issue within 1 year after the date of enactment of the Unified Carrier
Registration Act of 2004 regulations to establish, an online, Federal
registration system to be named the Unified Carrier Registration System
to replace--
``(1) the current Department of Transportation
identification number system, the Single State Registration
System under section 14504 of this title;
``(2) the registration system contained in this chapter and
the financial responsibility information system under section
13906; and
``(3) the service of process agent systems under sections
503 and 13304 of this title.
``(b) Role as Clearinghouse and Depository of Information.--The
Unified Carrier Registration System shall serve as a clearinghouse and
depository of information on, and identification of, all foreign and
domestic motor carriers, motor private carriers, brokers, and freight
forwarders, and others required to register with the Department,
including information with respect to a carrier's safety rating,
compliance with required levels of financial responsibility, and
compliance with the provisions of section 14504a of this title. The
Secretary shall ensure that Federal agencies, States, representatives
of the motor carrier industry, and the public have access to the
Unified Carrier Registration System, including the records and
information contained in the System.
``(c) Procedures for Correcting Information.--Not later than 60
days after the effective date of this section, the Secretary shall
prescribe regulations establishing procedures that enable a motor
carrier to correct erroneous information contained in any part of the
Unified Carrier Registration System.
``(d) Fee System.--The Secretary shall establish, under section
9701 of title 31, a fee system for the Unified Carrier Registration
System according to the following guidelines:
``(1) Registration and filing evidence of financial
responsibility.--The fee for new registrants shall as nearly as
possible cover the costs of processing the registration and
conducting the safety audit or examination, if required, but
shall not exceed $300.
``(2) Evidence of financial responsibility.--The fee for
filing evidence of financial responsibility pursuant to this
section shall not exceed $10 per filing. No fee shall be
charged for a filing for purposes of designating an agent for
service of process or the filing of other information relating
to financial responsibility.
``(3) Access and retrieval fees.--
``(A) In general.--Except as provided in
subparagraph (B), the fee system shall include a
nominal fee for the access to or retrieval of
information from the Unified Carrier Registration
System to cover the costs of operating and upgrading
the System, including the personnel costs incurred by
the Department and the costs of administration of the
Unified Carrier Registration Agreement.
``(B) Exceptions.--There shall be no fee charged--
``(i) to any agency of the Federal
Government or a State government or any
political subdivision of any such government
for the access to or retrieval of information
and data from the Unified Carrier Registration
System for its own use; or
``(ii) to any representative of a motor
carrier, motor private carrier, leasing
company, broker, or freight forwarder (as each
is defined in section 14504a of this title) for
the access to or retrieval of the individual
information related to such entity from the
Unified Carrier Registration System for the
individual use of such entity.''.
SEC. 4265. REGISTRATION OF MOTOR CARRIERS BY STATES.
(a) Termination of Registration Provisions.--Section 14504 is
amended by adding at the end the following:
``(d) Termination of Provisions.--Subsections (b) and (c) shall
cease to be effective on the first January 1st occurring more than 12
months after the date of enactment of the Unified Carrier Registration
Act of 2004.''.
(b) Unified Carrier Registration System Plan and Agreement.--
Chapter 145 is amended by inserting after section 14504 the following:
``Sec. 14504a. Unified carrier registration system plan and agreement
``(a) Definitions.--In this section and section 14506 of this
title:
``(1) Commercial motor vehicle.--
``(A) In general.--Except as provided in
subparagraph (B), the term `commercial motor vehicle'
has the meaning given the term in section 31101 of this
title.
``(B) Exception.--With respect to motor carriers
required to make any filing or pay any fee to a State
with respect to the motor carrier's authority or
insurance related to operation within such State, the
term `commercial motor vehicle' means any self-
propelled vehicle used on the highway in commerce to
transport passengers or property for compensation
regardless of the gross vehicle weight rating of the
vehicle or the number of passengers transported by such
vehicle.
``(2) Base-state.--
``(A) In general.--The term `Base-State' means,
with respect to the Unified Carrier Registration
Agreement, a State--
``(i) that is in compliance with the
requirements of subsection (e); and
``(ii) in which the motor carrier, motor
private carrier, broker, freight forwarder or
leasing company maintains its principal place
of business.
``(B) Designation of base-state.--A motor carrier,
motor private carrier, broker, freight forwarder or
leasing company may designate another State in which it
maintains an office or operating facility as its Base-
State in the event that--
``(i) the State in which the motor carrier,
motor private carrier, broker, freight
forwarder or leasing company maintains its
principal place of business is not in
compliance with the requirements of subsection
(e); or
``(ii) the motor carrier, motor private
carrier, broker, freight forwarder or leasing
company does not have a principal place of
business in the United States.
``(3) Intrastate fee.--The term `intrastate fee' means any
fee, tax, or other type of assessment, including per vehicle
fees and gross receipts taxes, imposed on a motor carrier or
motor private carrier for the renewal of the intrastate
authority or insurance filings of such carrier with a State.
``(4) Leasing company.--The term `leasing company' means a
lessor that is engaged in the business of leasing or renting
for compensation motor vehicles without drivers to a motor
carrier, motor private carrier, or freight forwarder.
``(5) Motor carrier.--The term `motor carrier' has the
meaning given the term in section 13102(12) of this title, but
shall include all carriers that are otherwise exempt from the
provisions of part B of this title pursuant to the provisions
of chapter 135 of this title or exemption actions by the former
Interstate Commerce Commission under this title.
``(6) Participating state.--The term `participating state'
means a State that has complied with the requirements of
subsection (e) of this section.
``(7) SSRS.--The term `SSRS' means the Single State
Registration System in effect on the date of enactment of the
Unified Carrier Registration Act of 2004.
``(8) Unified carrier registration agreement.--The terms
`Unified Carrier Registration Agreement' and `UCR Agreement'
mean the interstate agreement developed under the Unified
Carrier Registration Plan governing the collection and
distribution of registration and financial responsibility
information provided and fees paid by motor carriers, motor
private carriers, brokers, freight forwarders and leasing
companies pursuant to this section.
``(9) Unified carrier registration plan.--The terms
`Unified Carrier Registration Plan' and `UCR Plan' mean the
organization of State, Federal and industry representatives
responsible for developing, implementing and administering the
Unified Carrier Registration Agreement.
``(10) Vehicle registration.--The term `vehicle
registration' means the registration of any commercial motor
vehicle under the International Registration Plan or any other
registration law or regulation of a jurisdiction.
``(b) Applicability of Provisions to Freight Forwarders.--A Freight
forwarder that operates commercial motor vehicles and is not required
to register as a carrier pursuant to section 13903(b) of this title
shall be subject to the provisions of this section as if a motor
carrier.
``(c) Unreasonable Burden.--For purposes of this section, it shall
be considered an unreasonable burden upon interstate commerce for any
State or any political subdivision of a State, or any political
authority of 2 or more States--
``(1) to enact, impose, or enforce any requirement or
standards, or levy any fee or charge on any interstate motor
carrier or interstate motor private carrier in connection
with--
``(A) the registration with the State of the
interstate operations of a motor carrier or motor
private carrier;
``(B) the filing with the State of information
relating to the financial responsibility of a motor
carrier or motor private carrier pursuant to sections
31138 or 31139 of this title;
``(C) the filing with the State of the name of the
local agent for service of process of a motor carrier
or motor private carrier pursuant to sections 503 or
13304 of this title; or
``(D) the annual renewal of the intrastate
authority, or the insurance filings, of a motor carrier
or motor private carrier, or other intrastate filing
requirement necessary to operate within the State, if
the motor carrier or motor private carrier is--
``(i) registered in compliance with section
13902 or section 13905(b) of this title; and
``(ii) in compliance with the laws and
regulations of the State authorizing the
carrier to operate in the State pursuant to
section 14501(c)(2)(A) of this title
except with respect to--
``(I) intrastate service provided
by motor carriers of passengers that is
not subject to the preemptive
provisions of section 14501(a) of this
title,
``(II) motor carriers of property,
motor private carriers, brokers, or
freight forwarders, or their services
or operations, that are described in
subparagraphs (B) and (C) of section
14501(c)(2) and section 14506(c)(3) or
permitted pursuant to section 14506(b)
of this title, and
``(III) the intrastate
transportation of waste or recycables
by any carrier); or
``(2) to require any interstate motor carrier or motor
private carrier to pay any fee or tax, not proscribed by
paragraph (1)(D) of this subsection, that a motor carrier or
motor private carrier that pays a fee which is proscribed by
that paragraph is not required to pay.
``(d) Unified Carrier Registration Plan.--
``(1) Board of directors.--
``(A) Governance of plan.--The Unified Carrier
Registration Plan shall be governed by a Board of
Directors consisting of representatives of the
Department of Transportation, Participating States, and
the motor carrier industry.
``(B) Number.--The Board shall consist of 15
directors.
``(C) Composition.--The Board shall be composed of
directors appointed as follows:
``(i) Federal motor carrier safety
administration.--The Secretary shall appoint 1
director from each of the Federal Motor Carrier
Safety Administration's 4 Service Areas (as
those areas were defined by the Federal Motor
Carrier Safety Administration on January 1,
2003), from among the chief administrative
officers of the State agencies responsible for
overseeing the administration of the UCR
Agreement.
``(ii) State agencies.--The Secretary shall
appoint 5 directors from the professional
staffs of State agencies responsible for
overseeing the administration of the UCR
Agreement in their respective States. Nominees
for these 5 directorships shall be submitted to
the Secretary by the national association of
professional employees of the State agencies
responsible for overseeing the administration
of the UCR Agreement in their respective
States.
``(iii) Motor carrier industry.--The
Secretary shall appoint 5 directors from the
motor carrier industry. At least 1 of the
appointees shall be an employee of the national
trade association representing the general
motor carrier of property industry.
``(iv) Department of transportation.--The
Secretary shall appoint the Deputy
Administrator of the Federal Motor Carrier
Safety Administration, or such other
presidential appointee from the United States
Department of Transportation, as the Secretary
may designate, to serve as a director.
``(D) Chairperson and vice-chairperson.--The
Secretary shall designate 1 director as Chairperson and
1 director as Vice-Chairperson of the Board. The
Chairperson and Vice-Chairperson shall serve in such
capacity for the term of their appointment as
directors.
``(E) Term.--In appointing the initial Board, the
Secretary shall designate 5 of the appointed directors
for initial terms of 3 years, 5 of the appointed
directors for initial terms of 2 years, and 5 of the
appointed directors for initial terms of 1 year.
Thereafter, all directors shall be appointed for terms
of 3 years, except that the term of the Deputy
Administrator or other individual designated by the
Secretary under subparagraph (C)(iv) shall be at the
discretion of the Secretary. A director may be
appointed to succeed himself or herself. A director may
continue to serve on the Board until his or her
successor is appointed.
``(2) Rules and regulations governing the ucr agreement.--
The Board of Directors shall develop the rules and regulations
to govern the UCR Agreement and submit such rules and
regulations to the Secretary for approval and adoption. The
rules and regulations shall--
``(A) prescribe uniform forms and formats, for--
``(i) the annual submission of the
information required by a Base-State of a motor
carrier, motor private carrier, leasing
company, broker, or freight forwarder;
``(ii) the transmission of information by a
Participating State to the Unified Carrier
Registration System;
``(iii) the payment of excess fees by a
State to the designated depository and the
distribution of fees by the depository to those
States so entitled; and
``(iv) the providing of notice by a motor
carrier, motor private carrier, broker, freight
forwarder, or leasing company to the Board of
the intent of such entity to change its Base-
State, and the procedures for a State to object
to such a change under subparagraph (C) of this
paragraph;
``(B) provide for the administration of the Unified
Carrier Registration Agreement, including procedures
for amending the Agreement and obtaining clarification
of any provision of the Agreement;
``(C) provide procedures for dispute resolution
that provide due process for all involved parties; and
``(D) designate a depository.
``(3) Compensation and expenses.--Except for the
representative of the Department of Transportation appointed
pursuant to paragraph 1(D), no director shall receive any
compensation or other benefits from the Federal Government for
serving on the Board or be considered a Federal employee as a
result of such service. All Directors shall be reimbursed for
expenses they incur attending duly called meetings of the
Board. In addition, the Board may approve the reimbursement of
expenses incurred by members of any subcommittee or task force
appointed pursuant to paragraph (5). The reimbursement of
expenses to directors and subcommittee and task force members
shall be based on the then applicable rules of the General
Service Administration governing reimbursement of expenses for
travel by Federal employees.
``(4) Meetings.--
``(A) In general.--The Board shall meet at least
once per year. Additional meetings may be called, as
needed, by the Chairperson of the Board, a majority of
the directors, or the Secretary.
``(B) Quorum.--A majority of directors shall
constitute a quorum.
``(C) Voting.--Approval of any matter before the
Board shall require the approval of a majority of all
directors present at the meeting.
``(D) Open meetings.--Meetings of the Board and any
subcommittees or task forces appointed pursuant to
paragraph (5) of this section shall be subject to the
provisions of section 552b of title 5.
``(5) Subcommittees.--
``(A) Industry advisory subcommittee.--The
Chairperson shall appoint an Industry Advisory
Subcommittee. The Industry Advisory Subcommittee shall
consider any matter before the Board and make
recommendations to the Board.
``(B) Other subcommittees.--The Chairperson shall
appoint an Audit Subcommittee, a Dispute Resolution
Subcommittee, and any additional subcommittees and task
forces that the Board determines to be necessary.
``(C) Membership.--The chairperson of each
subcommittee shall be a director. The other members of
subcommittees and task forces may be directors or non-
directors.
``(D) Representation on subcommittees.--Except for
the Industry Advisory Subcommittee (the membership of
which shall consist solely of representatives of
entities subject to the fee requirements of subsection
(f) of this section), each subcommittee and task force
shall include representatives of the Federal Motor
Carrier Safety Administration, the Participating
States, and the motor carrier industry.
``(6) Delegation of authority.--The Board may contract with
any private commercial or non-profit entity or any agency of a
State to perform administrative functions required under the
Unified Carrier Registration Agreement, but may not delegate
its decision or policy-making responsibilities.
``(7) Determination of fees.--The Board shall determine the
annual fees to be assessed carriers, leasing companies,
brokers, and freight forwarders pursuant to the Unified Carrier
Registration Agreement. In determining the level of fees to be
assessed in the next Agreement year, the Board shall consider--
``(A) the administrative costs associated with the
Unified Carrier Registration Plan and the Agreement;
``(B) whether the revenues generated in the
previous year and any surplus or shortage from that or
prior years enable the Participating States to achieve
the revenue levels set by the Board; and
``(C) the parameters for fees set forth in
subsection (f)(1).
``(8) Liability protections for directors.--No individual
appointed to serve on the Board shall be liable to any other
director or to any other party for harm, either economic or
non-economic, caused by an act or omission of the individual
arising from the individual's service on the Board if--
``(A) the individual was acting within the scope of
his or her responsibilities as a director; and
``(B) the harm was not caused by willful or
criminal misconduct, gross negligence, reckless
misconduct, or a conscious, flagrant indifference to
the right or safety of the party harmed by the
individual.
``(9) Inapplicability of federal advisory committee act.--
The Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Unified Carrier Registration Plan or its
committees.
``(10) Certain fees not affected.--This section does not
limit the amount of money a State may charge for vehicle
registration or the amount of any fuel use tax a State may
impose pursuant to the International Fuel Tax Agreement.
``(e) State Participation.--
``(1) State plan.--No State shall be eligible to
participate in the Unified Carrier Registration Plan or to
receive any revenues derived under the Agreement, unless the
State submits to the Secretary, not later than 3 years after
the date of enactment of the Unified Carrier Registration Act
of 2004, a plan--
``(A) identifying the State agency that has or will
have the legal authority, resources, and qualified
personnel necessary to administer the Unified Carrier
Registration Agreement in accordance with the rules and
regulations promulgated by the Board of Directors of
the Unified Carrier Registration Plan; and
``(B) containing assurances that an amount at least
equal to the revenue derived by the State from the
Unified Carrier Registration Agreement shall be used
for motor carrier safety programs, enforcement, and
financial responsibility, or the administration of the
UCR Plan and UCR Agreement.
``(2) Amended plans.--A State may change the agency
designated in the plan submitted under this subsection by
filing an amended plan with the Secretary and the Chairperson
of the Unified Carrier Registration Plan.
``(3) Withdrawal of plan.--In the event a State withdraws,
or notifies the Secretary that it is withdrawing, the plan
submitted under this subsection, the State may no longer
participate in the Unified Carrier Registration Agreement or
receive any portion of the revenues derived under the
Agreement.
``(4) Termination of eligibility.--If a State fails to
submit a plan to the Secretary as required by paragraph (1) or
withdraws its plan under paragraph (3), the State shall be
prohibited from subsequently submitting or resubmitting a plan
or participating in the Agreement.
``(5) Provision of plan to chairperson.--The Secretary
shall provide a copy of each plan submitted under this
subsection to the initial Chairperson of the Board of Directors
of the Unified Carrier Registration Plan not later than 90 days
of appointing the Chairperson.
``(f) Contents of Unified Carrier Registration Agreement.--The
Unified Carrier Registration Agreement shall provide the following:
``(1) Determination of fees.--
``(A) Fees charged motor carriers, motor private
carriers, or freight forwarders in connection with the
filing of proof of financial responsibility under the
UCR Agreement shall be based on the number of
commercial motor vehicles owned or operated by the
motor carrier, motor private carrier, or freight
forwarder. Brokers and leasing companies shall pay the
same fees as the smallest bracket of motor carriers,
motor private carriers, and freight forwarders.
``(B) The fees shall be determined by the Board
with the approval of the Secretary.
``(C) The Board shall develop no more than 6 and no
less than 4 ranges of carriers by size of fleet.
``(D) The fee scale shall be progressive and use
different vehicle ratios for different ranges of
carrier fleet size.
``(E) The Board may adjust the fees within a
reasonable range on an annual basis if the revenues
derived from the fees--
``(i) are insufficient to provide the
revenues to which the States are entitled under
this section; or
``(ii) exceed those revenues.
``(2) Determination of ownership or operation.--Commercial
motor vehicles owned or operated by a motor carrier, motor
private carrier, or freight forwarder shall mean those
commercial motor vehicles registered in the name of the motor
carrier, motor private carrier, or freight forwarder or
controlled by the motor carrier, motor private carrier, or
freight forwarder under a long term lease during a vehicle
registration year.
``(3) Calculation of number of commercial motor vehicles
owned or operated.--The number of commercial motor vehicles
owned or operated by a motor carrier, motor private carrier, or
freight forwarder for purposes of subsection (e)(1) shall be
based either on the number of commercial motor vehicles the
motor carrier, motor private carrier, or freight forwarder has
indicated it operates on its most recently filed MCS-150 or the
total number of such vehicles it owned or operated for the 12-
month period ending on June 30 of the year immediately prior to
the each registration year of the Unified Carrier Registration
System.
``(4) Payment of fees.--Motor carriers, motor private
carriers, leasing companies, brokers, and freight forwarders
shall pay all fees required under this section to their Base-
State pursuant to the UCR Agreement.
``(g) Payment of Fees.--Revenues derived under the UCR Agreement
shall be allocated to Participating States as follows:
``(1) A State that participated in the Single State
Registration System in the last calendar year ending before the
date of enactment of the Unified Carrier Registration Act of
2004 and complies with the requirements of subsection (e) of
this section is entitled to receive a portion of the UCR
Agreement revenues generated under the Agreement equivalent to
the revenues it received under the SSRS in the last calendar
year ending before the date of enactment of the Unified Carrier
Registration Act of 2004, as long as the State continues to
comply with the provisions of subsection (e).
``(2) A State that collected intrastate registration fees
from interstate motor carriers, interstate motor private
carriers, or interstate exempt carriers and complies with the
requirements of subsection (e) of this section is entitled to
receive an additional portion of the UCR Agreement revenues
generated under the Agreement equivalent to the revenues it
received from such interstate carriers in the last calendar
year ending before the date of enactment of the Unified Carrier
Registration Act of 2004, as long as the State continues to
comply with the provisions of subsection (e).
``(3) States that comply with the requirements of
subsection (e) of this section but did not participate in SSRS
during the last calendar year ending before the date of
enactment of the Unified Carrier Registration Act of 2004 shall
be entitled to an annual allotment not to exceed $500,000 from
the UCR Agreement revenues generated under the Agreement as
long as the State continues to comply with the provisions of
subsection (e).
``(4) The amount of UCR Agreement revenues to which a State
is entitled under this section shall be calculated by the Board
and approved by the Secretary.
``(h) Distribution of UCR Agreement Revenues.--
``(1) Eligibility.--Each State that is in compliance with
the provisions of subsection (e) shall be entitled to a portion
of the revenues derived from the UCR Agreement in accordance
with subsection (g).
``(2) Entitlement to revenues.--A State that is in
compliance with the provisions of subsection (e) may retain an
amount of the gross revenues it collects from motor carriers,
motor private carriers, brokers, freight forwarders and leasing
companies under the UCR Agreement equivalent to the portion of
revenues to which the State is entitled under subsection (g).
All revenues a Participating State collects in excess of the
amount to which the State is so entitled shall be forwarded to
the depository designated by the Board under subsection
(d)(2)(D).
``(3) Distribution of funds from depository.--The excess
funds collected in the depository shall be distributed as
follows:
``(A) Excess funds shall be distributed on a pro
rata basis to each Participating State that did not
collect revenues under the UCR Agreement equivalent to
the amount such State is entitled under subsection (g),
except that the sum of the gross UCR Agreement revenues
collected by a Participating State and the amount
distributed to it from the depository shall not exceed
the amount to which the State is entitled under
subsection (g).
``(B) Any excess funds held by the depository after
all distributions under subparagraph (A) have been made
shall be used to pay the administrative costs of the
UCR Plan and the UCR Agreement.
``(C) Any excess funds held by the depository after
distributions and payments under subparagraphs (A) and
(B) shall be retained in the depository, and the UCR
Agreement fees for motor carriers, motor private
carriers, leasing companies, freight forwarders, and
brokers for the next fee year shall be reduced by the
Board accordingly.
``(i) Enforcement.--
``(1) Civil actions.--Upon request by the Secretary of
Transportation, the Attorney General may bring a civil action
in a court of competent jurisdiction to enforce compliance with
this section and with the terms of the Unified Carrier
Registration Agreement.
``(2) Venue.--An action under this section may be brought
only in the Federal court sitting in the State in which an
order is required to enforce such compliance.
``(3) Relief.--Subject to section 1341 of title 28, the
court, on a proper showing--
``(A) shall issue a temporary restraining order or
a preliminary or permanent injunction; and
``(B) may issue an injunction requiring that the
State or any person comply with this section.
``(4) Enforcement by states.--Nothing in this section--
``(A) prohibits a Participating State from issuing
citations and imposing reasonable fines and penalties
pursuant to applicable State laws and regulations on
any motor carrier, motor private carrier, freight
forwarder, broker, or leasing company for failure to--
``(i) submit documents as required under
subsection (d)(2); or
``(ii) pay the fees required under
subsection (f); or
``(B) authorizes a State to require a motor
carrier, motor private carrier, or freight forwarder to
display as evidence of compliance any form of
identification in excess of those permitted under
section 14506 of this title on or in a commercial motor
vehicle.
``(j) Application to Intrastate Carriers.--Notwithstanding any
other provision of this section, a State may elect to apply the
provisions of the UCR Agreement to motor carriers and motor private
carriers subject to its jurisdiction that operate solely in intrastate
commerce within the borders of the State.''.
SEC. 4266. IDENTIFICATION OF VEHICLES.
Chapter 145 is amended by adding at the end the following:
``Sec. 14506. Identification of vehicles
``(a) Restriction on Requirements.--No State, political subdivision
of a State, interstate agency, or other political agency of 2 or more
States may enact or enforce any law, rule, regulation standard, or
other provision having the force and effect of law that requires a
motor carrier, motor private carrier, freight forwarder, or leasing
company to display any form of identification on or in a commercial
motor vehicle, other than forms of identification required by the
Secretary of Transportation under section 390.21 of title 49, Code of
Federal Regulations.
``(b) Exception.--Notwithstanding paragraph (a), a State may
continue to require display of credentials that are required--
``(1) under the International Registration Plan under
section 31704 of this title;
``(2) under the International Fuel Tax Agreement under
section 31705 of this title;
``(3) in connection with Federal requirements for hazardous
materials transportation under section 5103 of this title; or
``(4) in connection with the Federal vehicle inspection
standards under section 31136 of this title.''.
SEC. 4267. USE OF UCR AGREEMENT REVENUES AS MATCHING FUNDS.
Section 31103(a) is amended by inserting ``Amounts generated by the
Unified Carrier Registration Agreement, under section 14504a of this
title and received by a State and used for motor carrier safety
purposes may be included as part of the State's share not provided by
the United States.'' after ``United States Government.''.
SEC. 4268. CLERICAL AMENDMENTS.
(a) Section 13906 Caption.--The section caption for section 13906
is amended by inserting ``motor private carriers,'' after ``motor
carriers,''.
(b) Table of Contents.--The chapter analysis for chapter 139 is
amended by striking the item relating to section 13906 and inserting
the following:
``13906. Security of motor carriers, motor private carriers, brokers,
and freight forwarders.''.
Subtitle C--Household Goods Movers
SEC. 4301. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES CODE.
(a) Short Title.--This subtitle may be cited as the ``Household
Goods Mover Oversight Enforcement and Reform Act of 2004''.
(b) Amendment of Title 49, United States Code.--Except as otherwise
specifically provided, whenever in this subtitle an amendment is
expressed in terms of an amendment to a section or other provision of
law, the reference shall be considered to be made to a section or other
provision of title 49, United States Code.
SEC. 4302. FINDINGS; SENSE OF CONGRESS.
The Congress finds the following:
(1) There are approximately 1,500,000 interstate household
moves every year. While the vast majority of these interstate
moves are completed successfully, consumer complaints have been
increasing since the Interstate Commerce Commission was
abolished in 1996 and oversight of the household goods industry
was transferred to the Department of Transportation.
(2) While the overwhelming majority of household goods
carriers are honest and operate within the law, there appears
to be a growing criminal element that is exploiting a perceived
void in Federal and State enforcement efforts. The growing
criminal element tends to prey upon consumers.
(3) The movement of an individual's household goods is
unique and differs from the movement of a commercial shipment.
A consumer may utilize a moving company once or twice in the
consumer's lifetime and entrust virtually all of the consumer's
worldly goods to a mover.
(4) Federal resources are inadequate to properly police or
deter, on a nationwide basis, those movers who willfully
violate Federal regulations governing the household goods
industry and knowingly prey on consumers who are in a
vulnerable position. It is appropriate that a Federal-State
partnership be created to enhance enforcement against
fraudulent moving companies.
SEC. 4303. DEFINITIONS.
In this title, the terms ``carrier'', ``household goods'', ``motor
carrier'', ``Secretary'', and ``transportation'' have the meaning given
such terms in section 13102 of title 49, United States Code.
SEC. 4304. PAYMENT OF RATES.
Section 13707(b) is amended by adding at the end the following:
``(3) Shipments of household goods.--
``(A) In general.--A carrier providing
transportation for a shipment of household goods shall
give up possession of the household goods transported
at the destination upon payment of--
``(i) 100 percent of the charges contained
in a binding estimate provided by the carrier;
``(ii) not more than 110 percent of the
charges contained in a nonbinding estimate
provided by the carrier; or
``(iii) in the case of a partial delivery
of the shipment, the prorated percentage of the
charges calculated in accordance with
subparagraph (B).
``(B) Calculation of prorated charges.--For
purposes of subparagraph (A)(iii), the prorated
percentage of the charges shall be the percentage of
the total charges due to the carrier as described in
clause (i) or (ii) of subparagraph (A) that is equal to
the percentage of the weight of that portion of the
shipment delivered to the total weight of the shipment.
``(C) Post-contract services.--Subparagraph (A)
does not apply to additional services requested by a
shipper after the contract of service is executed that
were not included in the estimate.
``(D) Impracticable operations.--Subparagraph (A)
does apply to impracticable operations, as defined by
the applicable carrier tariff, if the shipper agrees to
pay the charges for such operations within 30 days
after the goods are delivered.''.
SEC. 4305. HOUSEHOLD GOODS CARRIER OPERATIONS.
Section 14104 is amended--
(1) by striking paragraph (1) of subsection (b) and
inserting the following:
``(1) Requirement for written estimate.--A motor carrier
providing transportation of household goods subject to
jurisdiction under subchapter I of chapter 135 shall provide to
a prospective shipper a written estimate of all charges related
to the transportation of the household goods, including charges
for--
``(A) packing;
``(B) unpacking;
``(C) loading;
``(D) unloading; and
``(E) handling of the shipment from the point of
origin to the final destination (whether that
destination is storage or transit).'';
(2) by redesignating paragraph (2) of such subsection as
paragraph (4); and
(3) by inserting after paragraph (1), as amended by
paragraph (1), the following:
``(2) Other information.--At the time that a motor carrier
provides the written estimate required by paragraph (1), the
motor carrier shall provide the shipper a copy of the
Department of Transportation publication FMCSA-ESA-03-005 (or
its successor edition or publication) entitled `Ready to
Move?'. Before the execution of a contract for service, a motor
carrier shall provide the shipper a copy of the Department of
Transportation publication OCE 100, entitled `Your Rights and
Responsibilities When You Move' required by section 375.2 of
title 49, Code of Federal Regulations (or any corresponding
similar regulation).
``(3) Binding and nonbinding estimates.--The written
estimate required by paragraph (1) may be either binding or
nonbinding. The written estimate shall be based on a visual
inspection of the household goods if the household goods are
located within a 50-mile radius of the location of the
carrier's household goods agent preparing the estimate. The
Secretary may not prohibit any such carrier from charging a
prospective shipper for providing a written, binding estimate
for the transportation and related services.'';
(4) by redesignating subsection (c) as subsection (e); and
(5) by inserting after subsection (b), as amended by
paragraphs (1) and (2), the following:
``(c) Notification of Final Charges.--If the final charges for a
shipment of household goods exceed 100 percent of a binding estimate or
110 percent of a nonbinding estimate, the motor carrier shall provide
the shipper an itemized statement of the charges. The statement shall
be provided to the shipper within 24 hours prior to the delivery of the
shipment unless the shipper waives this requirement or the shipper
cannot be reached by fax, regular mail, or electronic mail. Such
notification shall--
``(1) be delivered in writing at the motor carrier's
expense; and
``(2) disclose the requirements of section 13707(b)(3) of
this title regarding payment for delivery of a shipment of
household goods.
``(d) Requirement for Inventory.--A motor carrier providing
transportation of a shipment of household goods, as defined in section
13102(10), that is subject to jurisdiction under subchapter I of
chapter 135 of this title shall, before or at the time of loading the
shipment, prepare a written inventory of all articles tendered and
accepted by the motor carrier for transportation. Such inventory
shall--
``(1) list or otherwise reasonably identify each item
tendered for transportation;
``(2) be signed by the shipper and the motor carrier, or
the agent of the shipper or carrier, at the time the shipment
is loaded and at the time the shipment is unloaded at the final
destination;
``(3) be attached to, and considered part of, the bill of
lading; and
``(4) be subject to the same requirements of the Secretary
for record inspection and preservation that apply to bills of
lading.''.
SEC. 4306. LIABILITY OF CARRIERS UNDER RECEIPTS AND BILLS OF LADING.
Section 14706(f) is amended--
(1) by resetting the text as a paragraph indented 2 ems
from the left margin and inserting ``(1) In general.--'' before
``A carrier''; and
(2) by adding at the end, the following:
``(2) Full value protection obligation.--Unless the carrier
receives a waiver in writing under paragraph (3), a carrier's
maximum liability for household goods that are lost, damaged,
destroyed, or otherwise not delivered to the final destination
is an amount equal to the replacement value of such goods,
subject to a maximum amount equal to the declared value of the
shipment, subject to rules issued by the Surface Transportation
Board and applicable tariffs.
``(3) Application of rates.--The released rates established
by the Board under paragraph (1) (commonly known as `released
rates') shall not apply to the transportation of household
goods by a carrier unless the liability of the carrier for the
full value of such household goods under paragraph (2) is
waived in writing by the shipper.''.
SEC. 4307. DISPUTE SETTLEMENT FOR SHIPMENTS OF HOUSEHOLD GOODS.
(a) In General.--Section 14708(a) is amended--
(1) by resetting the text as a paragraph indented 2 ems
from the left margin and inserting ``(1) Requirement to
offer.--'' before ``As a condition''; and
(2) by striking ``shippers of household goods concerning
damage or loss to the household goods transported.'' and
inserting ``shippers. The carrier may not require the shipper
to agree to use arbitration as a means to settle such a
dispute.''; and
(3) by inserting at the end, the following:
``(2) Requirements for carriers.--If a dispute with a
carrier providing transportation of household goods involves a
claim that is--
``(A) not more than $10,000 and the shipper
requests arbitration, such arbitration shall be binding
on the parties; or
``(B) for more than $10,000 and the shipper
requests arbitration, such arbitration shall be binding
on the parties only if the carrier agrees to
arbitration.''.
(b) Arbitration Requirements.--
(1) In general.--Section 14708(b) is amended--
(A) by striking paragraph (4) and inserting the
following:
``(4) Independence of arbitrator.--The Secretary shall
establish a system for the certification of persons authorized
to arbitrate or otherwise settle a dispute between a shipper of
household goods and a carrier. The Secretary shall ensure that
each person so certified is--
``(A) independent of the parties to the dispute;
``(B) capable, as determined under such regulations
as the Secretary may issue, to resolve such disputes
fairly and expeditiously; and
``(C) authorized and able to obtain from the
shipper or carrier any material and relevant
information to the extent necessary to carry out a fair
and expeditious decisionmaking process.'';
(B) by striking paragraph (6); and
(C) by redesignating paragraphs (7) and (8) as
paragraphs (6) and (7), respectively.
(2) Conforming amendment.--Section 14708(d)(3)(A) is
amended by striking ``(b)(8)'' and inserting ``(b)(7)''.
(c) Attorney's Fees to Carriers.--Section 14708(e) is further
amended by striking ``only if'' and all that follows through the period
at the end and inserting ``if--
``(1) the court proceeding is to enforce a decision
rendered in favor of the carrier through arbitration under this
section and is instituted after the shipper has a reasonable
opportunity to pay any charges required by such decision; or
``(2) the shipper brought such action in bad faith--
``(A) after resolution of such dispute through
arbitration under this section; or
``(B) after institution of an arbitration
proceeding by the shipper to resolve such dispute under
this section but before--
``(i) the period provided under subsection
(b)(7) for resolution of such dispute
(including, if applicable, an extension of such
period under such subsection) ends; and
``(ii) a decision resolving such dispute is
rendered.''.
(d) Review and Report on Dispute Settlement Programs.--
(1) Review and report.--Not later than 18 months after the
date of enactment of this Act, the Secretary of Transportation
shall complete a review of the outcomes and the effectiveness
of the programs carried out under title 49, United States Code,
to settle disputes between motor carriers and shippers and
submit a report on the review to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and Infrastructure.
The report shall describe--
(A) the subject of, and amounts at issue is, the
disputes;
(B) patterns in disputes or settlements;
(C) the prevailing party in disputes, if
identifiable; and
(D) any other matters the Secretary considers
appropriate.
(2) Requirement for public comment.--The Secretary shall
publish notice of the review required by paragraph (1) and
provide an opportunity for the public to submit comments on the
effectiveness of such programs. Notwithstanding any
confidentiality or non-disclosure provision in a settlement
agreement between a motor carrier and a shipper, it shall not
be a violation of that provision for a motor carrier or shipper
to submit a copy of the settlement agreement, or to provide
information included in the agreement, to the Secretary for use
in evaluating dispute settlement programs under this
subsection. Notwithstanding anything to the contrary in section
552 of title 5, United States Code, the Secretary may not post
on the Department of Transportation's electronic docket system,
or make available to any requester in paper or electronic
format, any information submitted to the Secretary by a motor
carrier or shipper under the preceding sentence. The Secretary
shall use the settlement agreements or other information
submitted by a motor carrier or shipper solely to evaluate the
effectiveness of dispute settlement programs and shall not
include in the report required by this subsection the names or,
or other identifying information concerning, motor carriers or
shippers that submitted comments or information under this
subsection.
SEC. 4308. ENFORCEMENT OF REGULATIONS RELATED TO TRANSPORTATION OF
HOUSEHOLD GOODS.
(a) Nonpreemption of Intrastate Transportation of Household
Goods.--Section 14501(c)(2)(B) is amended by inserting ``intrastate''
before ``transportation''.
(b) Enforcement of Federal Law With Respect to Interstate Household
Goods Carriers.--
(1) In general.--Chapter 147 is amended by adding at the
end the following:
``Sec. 14710. Enforcement of Federal laws and regulations with respect
to transportation of household goods
``(a) Enforcement by States.--Notwithstanding any other provision
of this title, a State authority may enforce the consumer protection
provisions, as determined by the Secretary of Transportation, of this
title that are related to the transportation of household goods in
interstate commerce. Any fine or penalty imposed on a carrier in a
proceeding under this subsection shall, notwithstanding any provision
of law to the contrary, be paid to and retained by the State.
``(b) State Authority Defined.--The term `State authority' means an
agency of a State that has authority under the laws of the State to
regulate the intrastate movement of household goods.
``Sec. 14711. Enforcement by State attorneys general
``(a) In General.--A State, as parens patriae, may bring a civil
action on behalf of its residents in an appropriate district court of
the United States to enforce the consumer protection provisions, as
determined by the Secretary of Transportation, of this title that are
related to the transportation of household goods in interstate
commerce, or regulations or orders of the Secretary or the Board
thereunder, or to impose the civil penalties authorized by this part or
such regulation or order, whenever the attorney general of the State
has reason to believe that the interests of the residents of the State
have been or are being threatened or adversely affected by a carrier or
broker providing transportation subject to jurisdiction under
subchapter I or III of chapter 135 of this title, or a foreign motor
carrier providing transportation registered under section 13902 of this
title, that is engaged in household goods transportation that violates
this part or a regulation or order of the Secretary or Board, as
applicable, promulgated under this part.
``(b) Notice.--The State shall serve written notice to the
Secretary or the Board, as the case may be, of any civil action under
subsection (a) prior to initiating such civil action. The notice shall
include a copy of the complaint to be filed to initiate such civil
action, except that if it is not feasible for the State to provide such
prior notice, the State shall provide such notice immediately upon
instituting such civil action.
``(c) Authority To Intervene.--Upon receiving the notice required
by subsection (b), the Secretary or Board may intervene in such civil
action and upon intervening--
``(1) be heard on all matters arising in such civil action;
and
``(2) file petitions for appeal of a decision in such civil
action.
``(d) Construction.--For purposes of bringing any civil action
under subsection (a), nothing in this section shall prevent the
attorney general of a State from exercising the powers conferred on the
attorney general by the laws of such State to conduct investigations or
to administer oaths or affirmations or to compel the attendance of
witnesses or the production of documentary and other evidence.
``(e) Venue; Service of Process.--In a civil action brought under
subsection (a)--
``(1) the venue shall be a judicial district in which--
``(A) the carrier, foreign motor carrier, or broker
operates;
``(B) the carrier, foreign motor carrier, or broker
was authorized to provide transportation at the time
the complaint arose; or
``(C) where the defendant in the civil action is
found;
``(2) process may be served without regard to the
territorial limits of the district or of the State in which the
civil action is instituted; and
``(3) a person who participated with a carrier or broker in
an alleged violation that is being litigated in the civil
action may be joined in the civil action without regard to the
residence of the person.
``(f) Enforcement of State Law.--Nothing contained in this section
shall prohibit an authorized State official from proceeding in State
court to enforce a criminal statute of such State.''.
(2) Conforming amendment.--The analysis for chapter 147 is
amended by inserting after the item relating to section 14709
the following:
``14710. Enforcement of Federal laws and regulations with respect to
transportation of household goods.
``14711. Enforcement by State attorneys general.''.
SEC. 4309. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND PROCEDURES TO
ENHANCE FEDERAL-STATE RELATIONS.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary shall establish a working group of State
attorneys general, State authorities that regulate the movement of
household goods, and Federal and local law enforcement officials for
the purpose of developing practices and procedures to enhance the
Federal-State partnership in enforcement efforts, exchange of
information, and coordination of enforcement efforts with respect to
interstate transportation of household goods and making legislative and
regulatory recommendations to the Secretary concerning such enforcement
efforts.
(b) Consultation.--In carrying out subsection (a), the working
group shall consult with industries involved in the transportation of
household goods, the public, and other interested parties.
SEC. 4310. CONSUMER HANDBOOK ON DOT WEBSITE.
Within 6 months after the date of enactment of this Act, the
Secretary shall take such action as may be necessary to ensure that the
Department of Transportation publication OCE 100, entitled ``Your
Rights and Responsibilities When You Move'' required by section 375.2
of title 49, Code of Federal Regulations (or any corresponding similar
regulation), is prominently displayed, and available in language that
is readily understandable by the general public, on the website of the
Department of Transportation.
SEC. 4311. INFORMATION ABOUT HOUSEHOLD GOODS TRANSPORTATION ON
CARRIERS' WEBSITES.
Not later than 1 year after the date of enactment of this Act, the
Secretary shall modify the regulations contained in part 375 of title
49, Code of Federal Regulations, to require a motor carrier or broker
that is subject to such regulations and that establishes and maintains
a website to prominently display on the website--
(1) the number assigned to the motor carrier or broker by
the Department of Transportation;
(2) the OCE 100 publication referred to in section 4310;
and
(3) in the case of a broker, a list of all motor carriers
providing transportation of household goods used by the broker
and a statement that the broker is not a motor carrier
providing transportation of household goods.
SEC. 4312. CONSUMER COMPLAINTS.
(a) Requirement for Database.--Subchapter II of chapter 141 is
amended by adding at the end the following:
``Sec. 14124. Consumer complaints
``(a) Establishment of System and Database.--The Secretary of
Transportation shall--
``(1) establish a system to--
``(A) file and log a complaint made by a shipper
that relates to motor carrier transportation of
household goods; and
``(B) to solicit information gathered by a State
regarding the number and type of complaints involving
the interstate transportation of household goods;
``(2) establish a database of such complaints; and
``(3) develop a procedure--
``(A) to provide the public access to the database;
``(B) to forward a complaint, including the motor
carrier bill of lading number related to the complaint
to a motor carrier named in such complaint and to an
appropriate State authority (as defined in section
14710(c) in the State in which the complainant resides;
and
``(C) to permit a motor carrier to challenge
information in the database.
``(b) Requirement for Annual Reports.--The Secretary shall issue
regulations requiring a motor carrier that provides transportation of
household goods to submit to the Secretary, not later than March 31st
of each year, an annual report covering the 12-month period ending on
the preceding March 31st that includes--
``(1) the number of interstate shipments of household goods
that the motor carrier received from shippers and that were
delivered to a final destination during the preceding calendar
year;
``(2) the number and general category of complaints lodged
against the motor carrier during the preceding calendar year;
``(3) the number of shipments described in paragraph (1)
that resulted in the filing of a claim against the motor
carrier for loss or damage to the shipment for an amount in
excess of $500 during the preceding calendar year; and
``(4) the number of shipments described in paragraph (3)
that were--
``(A) resolved during the preceding calendar year;
or
``(B) pending on the last day of the preceding
calendar year.
``(c) Summary to Congress.--The Secretary shall transmit a summary
each year of the complaints filed and logged under subsection (a) for
the preceding calendar year to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Transportation and Infrastructure.''.
(b) Conforming Amendment.--The analysis for chapter 141 is amended
by inserting after the item relating to section 14123 the following:
``14124. Consumer complaints.''.
SEC. 4313. REVIEW OF LIABILITY OF CARRIERS.
(a) Review.--Not later than 1 year after the date of enactment of
this Act, the Surface Transportation Board shall complete a review of
the current Federal regulations regarding the level of liability
protection provided by motor carriers that provide transportation of
household goods and revise such regulations, if necessary, to provide
enhanced protection in the case of loss or damage.
(b) Determinations.--The review required by subsection (a) shall
include a determination of--
(1) whether the current regulations provide adequate
protection;
(2) the benefits of purchase by a shipper of insurance to
supplement the carrier's limitations on liability;
(3) whether there are abuses of the current regulations
that leave the shipper unprotected in the event of loss and
damage to a shipment of household goods; and
(4) whether the section 14706 of title 49, United States
Code, should be modified or repealed.
SEC. 4314. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS BROKERS.
Section 14901(d) is amended--
(1) by resetting the text as a paragraph indented 2 ems
from the left margin and inserting ``(1) In general.--'' before
``If a carrier''; and
(2) by adding at the end the following:
``(2) Estimate of broker without carrier agreement.--If a
broker for transportation of household goods subject to
jurisdiction under subchapter I of chapter 135 of this title
makes an estimate of the cost of transporting any such goods
before entering into an agreement with a carrier to provide
transportation of household goods subject to such jurisdiction,
the broker is liable to the United States for a civil penalty
of not less than $10,000 for each violation.
``(3) Unauthorized transportation.--If a person provides
transportation of household goods subject to jurisdiction under
subchapter I of chapter 135 this title or provides broker
services for such transportation without being registered under
chapter 139 of this title to provide such transportation or
services as a motor carrier or broker, as the case may be, such
person is liable to the United States for a civil penalty of
not less than $25,000 for each violation.''.
SEC. 4315. CIVIL AND CRIMINAL PENALTY FOR FAILING TO GIVE UP POSSESSION
OF HOUSEHOLD GOODS.
(a) In General.--Chapter 149 is amended by adding at the end the
following:
``Sec. 14915. Penalties for failure to give up possession of household
goods
``(a) Civil Penalty.--Whoever is found to have failed to give up
possession of household goods is liable to the United States for a
civil penalty of not less than $10,000. Each day a carrier is found to
have failed to give up possession of household goods may constitute a
separate violation. If such person is a carrier or broker, the
Secretary may suspend for a period of not less than 6 months the
registration of such carrier or broker under chapter 139 of this title.
``(b) Criminal Penalty.--Whoever has been convicted of having
failed to give up possession of household goods shall be fined under
title 18 or imprisoned for not more than 2 years, or both.
``(c) Failure To Give Up Possession of Household Goods Defined.--
For purposes of this section, the term `failed to give up possession of
household goods' means the knowing and willful failure of a motor
carrier to deliver to, or unload at, the destination of a shipment of
household goods that is subject to jurisdiction under subchapter I or
III of chapter 135 of this title, for which charges have been estimated
by the motor carrier providing transportation of such goods, and for
which the shipper has tendered a payment described in clause (i), (ii),
or (iii) of section 13707(b)(3)(A) of this title.''.
(b) Conforming Amendment.--The analysis for such chapter is amended
by adding at the end the following:
``14915. Penalties for failure to give up possession of household
goods.''.
SEC. 4316. PROGRESS REPORT.
Not later than 1 year after the date of enactment of this Act, the
Secretary shall transmit to Congress a report on the progress being
made in implementing the provisions of this title.
SEC. 4317. ADDITIONAL REGISTRATION REQUIREMENTS FOR MOTOR CARRIERS OF
HOUSEHOLD GOODS.
Section 13902(a) is amended--
(1) by striking paragraphs (2) and (3);
(2) by redesignating paragraph (4) as paragraph (5) and
inserting after paragraph (1) the following:
``(2) Additional registration requirements for household goods
transportation.--Notwithstanding paragraph (1), the Secretary may
register a person to provide transportation of household goods (as
defined in section 13102(10) of this title) only after that person--
``(A) provides evidence of participation in an
arbitration program and provides a copy of the notice
of that program as required by section 14708(b)(2) of
this title;
``(B) identifies its tariff and provides a copy of
the notice of the availability of that tariff for
inspection as required by section 13702(c) of this
title;
``(C) provides evidence that it has access to, has
read, is familiar with, and will observe all laws
relating to consumer protection, estimating, consumers'
rights and responsibilities, and options for
limitations of liability for loss and damage; and
``(D) discloses any relationship involving common
stock, common ownership, common management, or common
familial relationships between that person and any
other motor carrier, freight forwarder, or broker of
household goods within the past 3 years.
``(3) Consideration of evidence; findings.--The Secretary
shall consider, and, to the extent applicable, make findings on
any evidence demonstrating that the registrant is unable to
comply with any applicable requirement of paragraph (1) or, in
the case of a registrant to which paragraph (2) applies,
paragraph (1) or (2).
``(4) Withholding.--If the Secretary determines that a
registrant under this section does not meet, or is not able to
meet, any requirement of paragraph (1) or, in the case of a
registrant to which paragraph (2) applies, paragraph (1) or
(2), the Secretary shall withhold registration.''; and
(3) by adding at the end of paragraph (5), as redesignated,
``In the case of a registration for the transportation of
household goods (as defined in section 13102(10 of this title),
the Secretary may also hear a complaint on the ground that the
registrant fails or will fail to comply with the requirements
of paragraph (2) of this subsection.''.
Subtitle D--Hazardous Materials Transportation Safety and Security
SEC. 4401. SHORT TITLE.
This subtitle may be cited as the ``Hazardous Material
Transportation Safety and Security Reauthorization Act of 2004''.
SEC. 4402. AMENDMENT OF TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of title 49,
United States Code.
PART I--GENERAL AUTHORITIES ON TRANSPORTATION OF HAZARDOUS MATERIALS
SEC. 4421. PURPOSE.
The text of section 5101 is amended to read as follows:
``The purpose of this chapter is to protect against the risks to
life, property, and the environment that are inherent in the
transportation of hazardous material in intrastate, interstate, and
foreign commerce.''.
SEC. 4422. DEFINITIONS.
Section 5102 is amended as follows:
(1) Commerce.--Paragraph (1) is amended--
(A) by striking ``or'' after the semicolon in
subparagraph (A);
(B) by striking the ``State.'' in subparagraph (B)
and inserting ``State; or''; and
(C) by adding at the end the following:
``(C) on a United States-registered aircraft.''.
(2) Hazmat employee.--Paragraph (3) is amended to read as
follows:
``(3) `hazmat employee' means an individual--
``(A) who--
``(i) is employed or used by a hazmat
employer; or
``(ii) is self-employed, including an
owner-operator of a motor vehicle, vessel, or
aircraft, transporting hazardous material in
commerce; and
``(B) who performs a function regulated by the
Secretary under section 5103(b)(1) of this title.''.
(3) Hazmat employer.--Paragraph (4) is amended to read as
follows:
``(4) `hazmat employer' means a person--
``(A) who--
``(i) employs or uses at least 1 hazmat
employee; or
``(ii) is self-employed, including an
owner-operator of a motor vehicle, vessel, or
aircraft, transporting hazardous material in
commerce; and
``(B) who performs, or employs or uses at least 1
hazmat employee to perform, a function regulated by the
Secretary under section 5103(b)(1) of this title.''.
(4) Imminent hazard.--Paragraph (5) is amended by inserting
``relating to hazardous material'' after ``of a condition''.
(5) Motor carrier.--Paragraph (7) is amended to read as
follows:
``(7) `motor carrier'--
``(A) means a motor carrier, motor private carrier,
and freight forwarder as those terms are defined in
section 13102 of this title; but
``(B) does not include a freight forwarder, as so
defined, if the freight forwarder is not performing a
function relating to highway transportation.''.
(6) National response team.--Paragraph (8) is amended--
(A) by striking ``national response team'' both
places it appears and inserting ``National Response
Team''; and
(B) by striking ``national contingency plan'' and
inserting ``National Contingency Plan''.
(7) Person.--Paragraph (9)(A) is amended by striking
``offering'' and all that follows and inserting ``that--
``(i) offers hazardous material for
transportation in commerce;
``(ii) transports hazardous material to
further a commercial enterprise; or
``(iii) manufactures, designs, inspects,
tests, reconditions, marks, or repairs a
packaging or packaging component that is
represented as qualified for use in
transporting hazardous material in commerce;
but''.
(8) Secretary of transportation.--Section 5101 is further
amended--
(A) by redesignating paragraphs (11), (12), and
(13), as paragraphs (12), (13), and (14), respectively;
and
(B) by inserting after paragraph (10) the
following:
``(11) `Secretary' means the Secretary of Transportation
except as otherwise provided.''.
SEC. 4423. GENERAL REGULATORY AUTHORITY.
(a) Reference to Secretary of Transportation.--Section 5103(a) is
amended by striking ``of Transportation''.
(b) Designating Material as Hazardous.--Section 5103(a) is further
amended--
(1) by striking ``etiologic agent'' and all that follows
through ``corrosive material,'' and inserting ``infectious
substance, flammable or combustible liquid, solid, or gas,
toxic, oxidizing, or corrosive material,''; and
(2) by striking ``decides'' and inserting ``determines''.
(c) Regulations for Safe Transportation.--Section 5103(b)(1)(A) is
amended to read as follows:
``(A) apply to a person who--
``(i) transports hazardous material in
commerce;
``(ii) causes hazardous material to be
transported in commerce;
``(iii) manufactures, designs, inspects,
tests, reconditions, marks, or repairs a
packaging or packaging component that is
represented as qualified for use in
transporting hazardous material in commerce;
``(iv) prepares or accepts hazardous
material for transportation in commerce;
``(v) is responsible for the safety of
transporting hazardous material in commerce;
``(vi) certifies compliance with any
requirement under this chapter;
``(vii) misrepresents whether such person
is engaged in any activity under clause (i)
through (vi) of this subparagraph; or
``(viii) performs any other act or function
relating to the transportation of hazardous
material in commerce; and''.
(d) Technical Amendment Regarding Consultation.--Section 5103 is
amended--
(1) by striking subsection (b)(1)(C); and
(2) by adding at the end the following:
``(c) Consultation.--When prescribing a security regulation or
issuing a security order that affects the safety of the transportation
of hazardous material, the Secretary of Homeland Security shall consult
with the Secretary of Transportation.''.
SEC. 4424. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.
(a) Reference to Secretary of Transportation.--Section 5103a is
amended by striking ``of Transportation'' each place it appears in
subsections (a)(1), (c)(1)(B), and (d) and inserting ``of Homeland
Security''.
(b) Covered Hazardous Materials.--Section 5103a(b) is amended by
striking ``with respect to--'' and all that follows and inserting
``with respect to any material defined as hazardous material by the
Secretary for which the Secretary requires placarding of a commercial
motor vehicle transporting that material in commerce.''.
(c) Recommendations on Chemical or Biological Materials.--Section
5103a is further amended--
(1) by redesignating subsections (c), (d), and (e) as
subsections (d), (e), and (f), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Recommendations on Chemical and Biological Materials.--The
Secretary of Health and Human Services shall recommend to the Secretary
any chemical or biological material or agent for regulation as a
hazardous material under section 5103(a) of this title if the Secretary
of Health and Human Services determines that such material or agent is
a threat to the national security of the United States.''.
(d) Conforming Amendment.--Section 5103a(a)(1) is amended by
striking ``subsection (c)(1)(B),'' and inserting ``subsection
(d)(1)(B),''.
SEC. 4425. REPRESENTATION AND TAMPERING.
(a) Representation.--Section 5104(a) is amended--
(1) by striking ``a container,'' and all that follows
through ``packaging) for'' and inserting ``a package, component
of a package, or packaging for''; and
(2) by striking ``the container'' and all that follows
through ``packaging) meets'' and inserting ``the package,
component of a package, or packaging meets''.
(b) Tampering.--Section 5104(b) is amended--
(1) by inserting ``, without authorization from the owner
or custodian,'' after ``may not'';
(2) by striking ``unlawfully''; and
(3) by inserting ``component of a package, or packaging,''
after ``package,'' in paragraph (2).
SEC. 4426. TRANSPORTING CERTAIN HIGHLY RADIOACTIVE MATERIAL.
(a) Repeal of Routes and Modes Study.--Section 5105 is amended by
striking subsection (d).
(b) Repeal of Requirement for Inspections of Certain Motor
Vehicles.--Section 5105 is amended by striking subsection (e).
SEC. 4427. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND GRANTS.
(a) Reference to Secretary of Transportation.--Section 5107 is
amended by striking ``of Transportation'' each place it appears in
subsections (a), (b), (c) (other than in paragraph (1)), (d), and (f).
(b) Training Grants.--Section 5107(e) is amended--
(1) by striking ``section 5127(c)(3)'' and inserting
``section 5128(b)(1) of this title'';
(2) by inserting ``and, to the extent determined
appropriate by the Secretary, grants for such instructors to
train hazmat employees'' after ``employees'' in the first
sentence thereof.
SEC. 4428. REGISTRATION.
(a) Reference to Secretary of Transportation.--Section 5108 is
amended by striking ``of Transportation'' each place it appears in
subsections (a), (b) (other than following ``Department''), (d), (e),
(f), (g), (h), and (i).
(b) Persons Required To File.--
(1) Requirement to file.--Section 5108(a)(1)(B) is amended
by striking ``class A or B explosive'' and inserting ``Division
1.1, 1.2, or 1.3 explosive material''.
(2) Authority to require to file.--Section 5108(a)(2)(B) is
amended to read as follows:
``(B) a person manufacturing, designing, inspecting,
testing, reconditioning, marking, or repairing a package or
packaging component that is represented as qualified for use in
transporting hazardous material in commerce.''.
(3) No transportation without filing.--Section 5108(a)(3)
is amended by striking ``fabricate,'' and all that follows
through ``package or'' and inserting ``design, inspect, test,
recondition, mark, or repair a package, packaging component,
or''.
(c) Form and Content of Filings.--Section 5108(b)(1)(C) by striking
``the activity.'' and inserting ``any of the activities.''.
(d) Filing.--Section 5108(c) is amended to read as follows:
``(c) Filing.--Each person required to file a registration
statement under subsection (a) of this section shall file the statement
in accordance with regulations prescribed by the Secretary.''.
(e) Fees.--Section 5108(g)(1) is amended by striking ``may
establish,'' and inserting ``shall establish,''.
(f) Relationship to Other Laws.--Section 5108(i)(2)(B) is amended
by inserting ``an Indian tribe,'' after ``subdivision of a State,''.
(g) Registration and Annual Fees.--
(1) Reduction in cap.--Section 5108(g)(2)(A) is amended by
striking ``$5,000'' and inserting ``$2,000''.
(2) Rulemaking.--Any rule, regulation, or order issued by
the Secretary of Transportation under which the assessment,
payment, or collection of fees under section 5108(g) of title
49, United States Code, was suspended or terminated before the
date of enactment of this Act is declared null and void
effective 30 days after such date of enactment. Beginning on
the 31st day after such date of enactment, the fee schedule
established by the Secretary and set forth at 65 Federal
Register 7297 (as modified by the rule set forth at 67 Federal
Register 58343) shall take effect and apply until such time as
it may be modified by a rulemaking proceeding.
(3) Planning and training grants.--Notwithstanding any
other provision of law to the contrary, including any
limitation on the amount of grants authorized by section 5116
of title 49, United States Code, not contained in that section,
the Secretary shall make grants under that section from the
account established under section 5116(i) to reduce the balance
in that account over the 6 fiscal year period beginning with
fiscal year 2004, but in no fiscal year shall the grants
distributed exceed the level authorized by section 5116 of
title 49, United States Code.
SEC. 4429. SHIPPING PAPERS AND DISCLOSURE.
(a) Reference to Secretary of Transportation.--Section 5110(a) is
amended by striking ``of Transportation''.
(b) Disclosure Considerations and Requirements.--Section 5110 is
amended--
(1) by striking ``under subsection (b) of this section.''
in subsection (a) and inserting ``in regulations.'';
(2) by striking subsection (b); and
(3) by redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively.
(c) Retention of Papers.--The first sentence of section 5110(d), as
redesignated by subsection (b)(3) of this section, is amended to read
as follows: ``The person who provides the shipping paper, and the
carrier required to keep it, under this section shall retain the paper,
or an electronic format of it, for a period of 3 years after the date
the shipping paper is provided to the carrier, with the paper and
format to be accessible through their respective principal places of
business.''.
SEC. 4430. RAIL TANK CARS.
(a) Repeal of Requirements.--Section 5111 is repealed.
(b) Clerical Amendment.--The chapter analysis for chapter 51 is
amended by striking the item relating to section 5111.
SEC. 4431. HIGHWAY ROUTING OF HAZARDOUS MATERIAL.
The second sentence of section 5112(a)(1) is amended by striking
``However, the Secretary of Transportation'' and inserting ``The
Secretary''.
SEC. 4432. UNSATISFACTORY SAFETY RATINGS.
(a) In General.--The text of section 5113 is amended to read as
follows:
``A violation of section 31144(c)(3) of this title shall be
considered a violation of this chapter, and shall be subject to the
penalties in sections 5123 and 5124 of this title.''.
(b) Conforming Amendments.--The first subsection (c) of section
31144 is amended--
(1) by striking ``sections 521(b)(5)(A) and 5113'' in
paragraph (1) and inserting ``section 521(b)(5)(A) of this
title''; and
(2) by adding at the end of paragraph (3) ``A violation of
this paragraph by an owner or operator transporting hazardous
material shall be considered a violation of chapter 51 of this
title, and shall be subject to the penalties in sections 5123
and 5124 of this title.''.
SEC. 4433. AIR TRANSPORTATION OF IONIZING RADIATION MATERIAL.
Section 5114(b) is amended by striking ``of Transportation''.
SEC. 4434. TRAINING CURRICULUM FOR THE PUBLIC SECTOR.
(a) In General.--Section 5115(a) is amended to read as follows:
``(a) In General.--In coordination with the Director of the Federal
Emergency Management Agency, the Chairman of the Nuclear Regulatory
Commission, the Administrator of the Environmental Protection Agency,
the Secretaries of Labor, Energy, and Health and Human Services, and
the Director of the National Institute of Environmental Health
Sciences, and using existing coordinating mechanisms of the National
Response Team and, for radioactive material, the Federal Radiological
Preparedness Coordinating Committee, the Secretary shall maintain a
current curriculum of lists of courses necessary to train public sector
emergency response and preparedness teams in matters relating to the
transportation of hazardous material.''.
(b) Requirements.--Section 5115(b) is amended--
(1) by striking ``developed'' in the matter preceding
paragraph (1) and inserting ``maintained''; and
(2) by striking ``under other United States Government
grant programs'' in paragraph (1)(C) and all that follows and
inserting ``with Federal assistance; and''.
(c) Training on Compliance With Legal Requirements.--Section
5115(c)(3) is amended by striking ``Association.'' and inserting
``Association or by any other voluntary organization establishing
consensus-based standards that the Secretary considers appropriate.''.
(d) Distribution and Publication.--Section 5115(d) is amended--
(1) by striking ``national response team--'' and inserting
``National Response Team--''; and
(2) by striking ``publish a list'' in paragraph (2) and all
that follows and inserting ``publish and distribute the list of
courses maintained under this section, and of any programs
utilizing such courses.''.
SEC. 4435. PLANNING AND TRAINING GRANTS; EMERGENCY PREPAREDNESS FUND.
(a) Reference to Secretary of Transportation.--Section 5116 is
amended by striking ``of Transportation'' each place it appears in
subsections (a), (b), (c), (d), (g), and (i).
(b) Government Share of Costs.--Section 5116(e) is amended by
striking the second sentence.
(c) Monitoring and Technical Assistance.--Section 5116(f) is
amended by striking ``national response team'' and inserting ``National
Response Team''.
(d) Delegation of Authority.--Section 5116(g) is amended by
striking ``Government grant programs'' and inserting ``Federal
financial assistance programs''.
(e) Emergency Preparedness Fund.--
(1) Name of fund.--Section 5116(i) is amended by inserting
after ``an account'' the following: ``(to be known as the
`Emergency Preparedness Fund')''.
(2) Publication of emergency response guide.--Section
5116(i) is further amended--
(A) by striking ``collects under section
5108(g)(2)(A) of this title and'';
(B) by striking ``and'' after the semicolon in
paragraph (2);
(C) by redesignating paragraph (3) as paragraph
(4); and
(D) by inserting after paragraph (2) the following:
``(3) to publish and distribute an emergency response
guide; and''.
(3) Conforming amendment.--Section 5108(g)(2)(C) is amended
by striking ``the account the Secretary of the Treasury
establishes'' and inserting ``the Emergency Response Fund
established''.
(f) Reports.--Section 5116(k) is amended--
(1) by striking the first sentence and inserting ``The
Secretary shall make available to the public annually
information on the allocation and uses of planning grants under
subsection (a), training grants under subsection (b), and
grants under subsection (j) of this section and under section
5107 of this title.''; and
(2) by striking ``Such report'' in the second sentence and
inserting ``The information''.
SEC. 4436. SPECIAL PERMITS AND EXCLUSIONS.
(a) Special Permits and Exclusions.--
(1) In general.--Section 5117(a)(1) is amended by striking
``the Secretary of Transportation may issue'' and all that
follows through ``in a way'' and inserting ``the Secretary may
issue, modify, or terminate a special permit authorizing
variances from this chapter, or a regulation prescribed under
section 5103(b), 5104, 5110, or 5112 of this title, to a person
performing a function regulated by the Secretary under section
5103(b)(1) of this title in a way''.
(2) Duration.--Section 5117(a)(2) is amended to read as
follows:
``(2) A special permit under this subsection--
``(A) shall be effective when first issued for not
more than 2 years; and
``(B) may be renewed for successive periods of not
more than 4 years each.''.
(b) References to Special Permits.--Section 5117 is further
amended--
(1) by striking ``an exemption'' each place it appears and
inserting ``a special permit''; and
(2) by striking ``the exemption'' each place it appears and
inserting ``the special permit''.
(c) Conforming and Clerical Amendments.--
(1) Conforming amendment.--The heading of section 5117 is
amended to read as follows:
``Sec. 5117. Special permits and exclusions''
(2) Clerical amendment.--The chapter analysis for chapter
51 is amended by striking the item relating to section 5117 and
inserting the following:
``5117. Special permits and exclusions.''.
(d) Repeal of Section 5118.--
(1) Section 5118 is repealed.
(2) The chapter analysis for chapter 51 is amended by
striking the item relating to section 5118 and inserting the
following:
``5118. Repealed.''.
SEC. 4437. UNIFORM FORMS AND PROCEDURES.
The text of section 5119 is amended to read as follows:
``(a) In General.--The Secretary may prescribe regulations to
establish uniform forms and regulations for States on the following:
``(1) To register and issue permits to persons that
transport or cause to be transported hazardous material by
motor vehicles in a State.
``(2) To permit the transportation of hazardous material in
a State.
``(b) Uniformity in Forms and Procedures.--In prescribing
regulations under subsection (a) of this section, the Secretary shall
develop procedures to eliminate discrepancies among the States in
carrying out the activities covered by the regulations.
``(c) Limitation.--The regulations prescribed under subsection (a)
of this section may not define or limit the amount of any fees imposed
or collected by a State for any activities covered by the regulations.
``(d) Effective Date.--
``(1) In general.--Except as provided in paragraph (2) of
this subsection, the regulations prescribed under subsection
(a) of this section shall take effect 1 year after the date on
which prescribed.
``(2) Extension.--The Secretary may extend the 1-year
period in subsection (a) for an additional year for good cause.
``(e) State Regulations.--After the regulations prescribed under
subsection (a) of this section take effect under subsection (d) of this
section, a State may establish, maintain, or enforce a requirement
relating to the same subject matter only if the requirement is
consistent with applicable requirements with respect to such activity
in the regulations.
``(f) Interim State Programs.--Pending the prescription of
regulations under subsection (a) of this section, States may
participate in the program of uniform forms and procedures recommended
by the Alliance for Uniform Hazmat Transportation Procedures.''.
SEC. 4438. INTERNATIONAL UNIFORMITY OF STANDARDS AND REQUIREMENTS.
Section 5120 is amended by striking ``of Transportation'' each
place it appears in subsections (a), (b), and (c)(1).
SEC. 4439. HAZARDOUS MATERIALS TRANSPORTATION SAFETY AND SECURITY.
The text of section 5121 is amended to read as follows:
``(a) General Authority.--
``(1) To carry out this chapter, the Secretary may
investigate, conduct tests, make reports, issue subpoenas,
conduct hearings, require the production of records and
property, take depositions, and conduct research, development,
demonstration, and training activities.
``(2) Except as provided in subsections (c) and (d) of this
section, the Secretary shall provide notice and an opportunity
for a hearing before issuing an order directing compliance with
this chapter, a regulation prescribed under this chapter, or an
order, special permit, or approval issued under this chapter.
``(b) Records, Reports, Property, and Information.--A person
subject to this chapter shall--
``(1) maintain records, make reports, and provide property
and information that the Secretary by regulation or order
requires; and
``(2) make the records, reports, property, and information
available for inspection when the Secretary undertakes an
inspection or investigation.
``(c) Inspections and Investigations.--
``(1) A designated officer or employee of the Secretary
may--
``(A) inspect and investigate, at a reasonable time
and in a reasonable way, records and property relating
to a function described in section 5103(b)(1) of this
title;
``(B) except for packaging immediately adjacent to
the hazardous material contents, gain access to, open,
and examine a package offered for or in transportation
when the officer or employees has an objectively
reasonable and articulable belief that the package may
contain hazardous material;
``(C) remove from transportation a package or
related packages in a shipment offered for or in
transportation for which--
``(i) such officer or employee has an
objectively reasonable and articulable belief
that the package may pose an imminent hazard;
and
``(ii) such officer or employee
contemporaneously documents such belief in
accordance with procedures set forth in
regulations prescribed under subsection (e) of
this section;
``(D) gather information from the offeror, carrier,
packaging manufacturer or retester, or other person
responsible for a package or packages to ascertain the
nature and hazards of the contents of the package or
packages;
``(E) as necessary under terms and conditions
prescribed by the Secretary, order the offeror,
carrier, or other person responsible for a package or
packages to have the package or packages transported to
an appropriate facility, opened, examined, and
analyzed; and
``(F) when safety might otherwise be compromised,
authorize properly qualified personnel to assist in
activities carried out under this paragraph.
``(2) An officer or employee acting under the authority of
the Secretary under this subsection shall display proper
credentials when requested.
``(3) In instances when, as a result of an inspection or
investigation under this subsection, an imminent hazards is not
found to exist, the Secretary shall, in accordance with
procedures set forth in regulations prescribed under subsection
(e) of this section, assist the safe resumption of
transportation of the package, packages, or transport unit
concerned.
``(d) Emergency Orders.--
``(1) If, upon inspection, investigation, testing, or
research, the Secretary determines that a violation of a
provision of this chapter, or a regulation prescribed under
this chapter, or an unsafe condition or practice, constitutes
or is causing an imminent hazard, the Secretary may issue or
impose emergency restrictions, prohibitions, recalls, or out-
of-service orders, without notice or an opportunity for a
hearing, but only to the extent necessary to abate the imminent
hazard.
``(2) The action of the Secretary under paragraph (1) of
this subsection shall be in a written emergency order that--
``(A) describes the violation, condition, or
practice that constitutes or is causing the imminent
hazard;
``(B) states the restrictions, prohibitions,
recalls, or out-of-service orders issued or imposed;
and
``(C) describe the standards and procedures for
obtaining relief from the order.
``(3) After taking action under paragraph (1) of this
subsection, the Secretary shall provide for review of the
action under section 554 of title 5 if a petition for review is
filed within 20 calendar days of the issuance of the order for
the action.
``(4) If a petition for review of an action is filed under
paragraph (3) of this subsection and the review under that
paragraph is not completed by the end of the 30-day period
beginning on the date the petition is filed, the action shall
cease to be effective at the end of such period unless the
Secretary determines, in writing, that the imminent hazard
providing a basis for the action continues to exist.
``(5) In this subsection, the term `out-of-service order'
means a requirement that an aircraft, vessel, motor vehicle,
train, railcar, locomotive, other vehicle, transport unit,
transport vehicle, freight container, potable tank, or other
package not be moved until specified conditions have been met.
``(e) Regulations.--The Secretary shall prescribe in accordance
with section 553 of title 5 regulations to carry out the authority in
subsections (c) and (d) of this section.
``(f) Facility, Staff, and Reporting System on Risks, Emergencies,
and Actions.--
``(1) The Secretary shall--
``(A) maintain a facility and technical staff
sufficient to provide, within the United States
Government, the capability of evaluating a risk
relating to the transportation of hazardous material
and material alleged to be hazardous;
``(B) maintain a central reporting system and
information center capable of providing information and
advice to law enforcement and firefighting personnel,
and other interested individuals, and officers and
employees of the United States Government and State and
local governments on meeting an emergency relating to
the transportation of hazardous material; and
``(C) conduct a continuous review on all aspects of
transporting hazardous material to decide on and take
appropriate actions to ensure safe transportation of
hazardous material.
``(2) Paragraph (1) of this subsection shall not prevent
the Secretary from making a contract with a private entity for
use of a supplemental reporting system and information center
operated and maintained by the contractor.
``(g) Grants, Cooperative Agreements, and Other Transactions.--The
Secretary may enter into grants, cooperative agreements, and other
transactions with a person, agency, or instrumentality of the United
States, a unit of State or local government, an Indian tribe, a foreign
government (in coordination with the Department of State), an
educational institution, or other appropriate entity--
``(1) to expand risk assessment and emergency response
capabilities with respect to the security of transportation of
hazardous material;
``(2) to conduct research, development, demonstration, risk
assessment and emergency response planning and training
activities; or
``(3) to otherwise carry out this chapter.
``(h) Reports.--
``(1) The Secretary shall, once every 2 years, submit to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure a comprehensive report on the transportation
of hazardous material during the preceding 2 calendar years.
Each report shall include, for the period covered by such
report--
``(A) a statistical compilation of the accidents,
incidents, and casualties related to the transportation
of hazardous material during such period;
``(B) a list and summary of applicable Government
regulations, criteria, orders, and special permits;
``(C) a summary of the basis for each special
permit issued;
``(D) an evaluation of the effectiveness of
enforcement activities relating to the transportation
of hazardous material during such period, and of the
degree of voluntary compliance with regulations;
``(E) a summary of outstanding problems in carrying
out this chapter, set forth in order of priority; and
``(F) any recommendations for legislative or
administrative action that the Secretary considers
appropriate.
``(2) Before December 31, 2005, and every 3 years
thereafter, the Secretary, through the Bureau of Transportation
Statistics and in consultation with other Federal departments
and agencies, shall submit a report to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and Infrastructure
on the transportation of hazardous material in all modes of
transportation during the preceding 3 calendar years. Each
report shall include, for the period covered by such report--
``(A) a summary of the hazardous material
shipments, deliveries, and movements during such
period, set forth by hazardous materials type, by
tonnage and ton-miles, and by mode, both domestically
and across United States borders; and
``(B) a summary of shipment estimates during such
period as a proxy for risk.
``(i) Security Sensitive Information.--
``(1) If the Secretary determines that particular
information may reveal a vulnerability of a hazardous material
to attack during transportation in commerce, or may facilitate
the diversion of hazardous material during transportation in
commerce for use in an attack on people or property, the
Secretary may disclose such information only--
``(A) to the owner, custodian, offeror, or carrier
of such hazardous material;
``(B) to an officer, employee, or agent of the
United States Government, or a State or local
government, including volunteer fire departments,
concerned with carrying out transportation safety laws,
protecting hazardous material in the course of
transportation in commerce, protecting public safety or
national security, or enforcing Federal law designed to
protect public health or the environment; or
``(C) in an administrative or judicial proceeding
brought under this chapter, under other Federal law
intended to protect public health or the environment,
or under other Federal law intended to address
terrorist actions or threats of terrorist actions.
``(2) The Secretary may make determinations under paragraph
(1) of this subsection with respect categories of information
in accordance with regulations prescribed by the Secretary.
``(3) A release of information pursuant to a determination
under paragraph (1) of this subsection shall not be treated as
a release of such information to the public for purposes of
section 552 of title 5.''.
SEC. 4440. ENFORCEMENT.
(a) Reference to Secretary of Transportation.--Section 5122(a) is
amended by striking ``of Transportation''.
(b) General.--Section 5122(a) is further amended--
(1) by striking ``chapter or a regulation prescribed or
order''in the first sentence and inserting ``chapter, a
regulation prescribed under this chapter, or an order, special
permit, or approval''; and
(2) by striking the second sentence and inserting ``In an
action under this subsection, the court may award appropriate
relief, including a temporary or permanent injunction, civil
penalties under section 5123 of this title, and punitive
damages.''.
(c) Imminent Hazards.--Section 5122(b)(1)(B) is amended by striking
``ameliorate'' and inserting ``mitigate''.
SEC. 4441. CIVIL PENALTIES.
(a) Reference to Secretary of Transportation.--Section 5123(b) is
amended by striking ``of Transportation''.
(b) Penalty.--Section 5123(a)(1) is amended--
(1) by striking ``chapter or a regulation prescribed or
order'' and inserting ``chapter, a regulation prescribed under
this chapter, or an order, special permit, or approval''; and
(2) by striking ``$25,000'' and inserting ``$100,000''.
(c) Hearing Requirement.--Section 5123(b) is amended by striking
``chapter or a regulation prescribed'' and inserting ``chapter, a
regulation prescribed under this chapter, or an order, special permit,
or approval issued''.
(d) Civil Actions To Collect.--Section 5123(d) is amended by
striking ``section.'' and inserting ``section and any accrued interest
on the civil penalty as calculated in accordance with section 1005 of
the Oil Pollution Act of 1990 (33 U.S.C. 2705). In the civil action,
the amount and appropriateness of the civil penalty shall not be
subject to review.''.
(e) Effective Date.--(1) The amendments made by subsections (b) and
(c) of this section shall take effect on the date of the enactment of
this Act, and shall apply with respect to violations described in
section 5123(a) of title 49, United States Code (as amended by this
section), that occur on or after that date.
(2) The amendment made by subsection (d) of this section shall
apply with respect to civil penalties imposed on violations described
in section 5123(a) of title 49, United States Code (as amended by this
section), which violations occur on or after the date of the enactment
of this Act.
SEC. 4442. CRIMINAL PENALTIES.
(a) In General.--Section 5124 is amended--
(1) by inserting ``(a) In General.--'' before ``A person'';
and
(2) by striking ``chapter or a regulation prescribed or
order'' and inserting ``chapter, a regulation prescribed under
this chapter, or an order, special permit, or approval''.
(b) Additional Matters.--That section is further amended by adding
at the end the following:
``(b) Aggravated Violations.--A person knowingly violating section
5104(b) of this title or willfully violating this chapter or a
regulation prescribed, or an order, special permit, or approval issued,
under this chapter, who thereby causes the release of hazardous
material shall be fined under title 18, imprisoned for not more than 20
years, or both.
``(c) Separate Violations.--A separate violation occurs for each
day the violation, committed by a person who transports or causes to be
transported hazardous material, continues.''.
SEC. 4443. PREEMPTION.
(a) Reference to Secretary of Transportation.--Section 5125(b)(2)
is amended by striking ``of Transportation''.
(b) Purposes.--Section 5125 is amended--
(1) by redesignating subsections (a), (b), (c), (d), (e),
(f), and (g) as subsections (b), (c), (d), (e), (f), (g), and
(h), respectively;
(2) by inserting before subsection (b), as so redesignated,
the following:
``(a) Purposes.--The Secretary shall exercise the authority in this
section--
``(1) to achieve uniform regulation of the transportation
of hazardous material;
``(2) to eliminate rules that are inconsistent with the
regulations prescribed under this chapter; and
``(3) to otherwise promote the safe and efficient movement
of hazardous material in commerce.'';
(3) by striking subsection (g), as redesignated; and
(4) by redesignating subsection (h), as redesignated, as
subsection (g).
(c) General Preemption.--Section 5125(b), as redesignated by
subsection (b)(1) of this section, is further amended by striking
``General.--Except as provided in subsection (b), (c), and (e)'' and
inserting ``Preemption Generally.--Except as provided in subsections
(c), (d), and (f)''.
(d) Substantive Differences.--Section 5125(c), as so redesignated,
is further amended--
(1) in the matter preceding subparagraph (A) of paragraph
(1), by striking ``subsection (c)'' and inserting ``subsection
(d)'';
(2) by striking subparagraph (E) of paragraph (1) and
inserting the following:
``(E) the manufacturing, designing, inspecting, testing,
reconditioning, or repairing of a packaging or packaging
component that is represented as qualified for use in
transporting hazardous material in commerce.''; and
(3) by striking ``prescribes after November 16, 1990.
However, the'' in paragraph (2) and inserting ``prescribes.
The''.
(e) Decisions on Preemption.--Section 5125(e), as so redesignated,
is further amended by striking ``subsection (a), (b)(1), or (c) of this
section.'' in the first sentence and inserting ``subsection (b),
(c)(1), or (d) of this section or section 5119(b) of this title.''.
(f) Waiver of Preemption.--Section 5125(f), as so redesignated, is
further amended by striking ``subsection (a), (b)(1), or (c) of this
section.'' and inserting ``subsection (b), (c)(1), or (d) of this
section or section 5119(b) of this title.''.
(g) Emergency Waiver of Preemption; Additional Matters.--Section
5125 is further amended--
(1) by redesignating subsection (g), as redesignated by
subsection (b)(4) of this section, as subsection (j); and
(2) by inserting after subsection (f), as redesignated by
subsection (b)(1) of this section, the following:
``(g) Emergency Waiver of Preemption.--
``(1) The Secretary may, upon a finding of good cause,
waive the preemption of a requirement of a State, political
subdivision of a State, or Indian tribe under this section
without prior notice or an opportunity for public comment
thereon.
``(2) For purposes of paragraph (1) of this subsection,
good cause exists when--
``(A) there is a potential threat that hazardous
material being transported in commerce may be used in
an attack on people or property; and
``(B) notice and an opportunity for public comment
thereon are impracticable or contrary to the public
interest.
``(3)(A) A waiver of preemption under paragraph (1) of this
subsection shall be in effect for a period specified by the
Secretary, but not more than 6 months.
``(B) If the Secretary determines before the expiration of
a waiver of preemption under subparagraph (A) of this paragraph
that the potential threat providing the basis for the waiver
continues to exist, the Secretary may, after providing notice
and an opportunity for public comment thereon, extend the
duration of the waiver for such period after the expiration of
the waiver under that subparagraph as the Secretary considers
appropriate.
``(4) An action of the Secretary under paragraph (1) or (3)
of this subsection shall be in writing and shall set forth the
standards and procedures for seeking reconsideration of the
action.
``(5) After taking action under paragraph (1) or (3) of
this subsection, the Secretary shall provide for review of the
action if a petition for review of the action is filed within
20 calendar days after the date of the action.
``(6) If a petition for review of an action is filed under
paragraph (5) of this subsection and review of the action is
not completed by the end of the 30-day period beginning on the
date the petition is filed, the waiver under this subsection
shall cease to be effective at the end of such period unless
the Secretary determines, in writing, that the potential threat
providing the basis for the waiver continues.
``(h) Application of Each Preemption Standard.--Each standard for
preemption in subsection (b), (c)(1), or (d) of this section, and in
section 5119(b) of this title, is independent in its application to a
requirement of a State, political subdivision of a State, or Indian
tribe.
``(i) Non-Federal Enforcement Standards.--This section does not
apply to any procedure, penalty, required mental state, or other
standard utilized by a State, political subdivision of a State, or
Indian tribe to enforce a requirement applicable to the transportation
of hazardous material.''.
SEC. 4444. RELATIONSHIP TO OTHER LAWS.
Section 5126 is amended--
(1) by striking ``or causes to be transported hazardous
material,'' in subsection (a) and inserting ``hazardous
material, or causes hazardous material to be transported,'';
(2) by striking ``manufactures,'' and all that follows
through ``or sells'' in subsection (a) and inserting
``manufactures, designs, inspects, tests, reconditions, marks,
or repairs a packaging or packaging component that is
represented'';
(3) by striking ``must'' in subsection (a) and inserting
``shall'';
(4) by striking ``manufacturing,'' in subsection (a) and
all that follows through ``testing'' and inserting
``manufacturing, designing, inspecting, testing,
reconditioning, marking, or repairing''; and
(5) by striking ``39.'' in subsection (b)(2) and inserting
``39, except in the case of an imminent hazard.''.
SEC. 4445. JUDICIAL REVIEW.
(a) In General.--Chapter 51 is amended--
(1) by redesignating section 5127 as section 5128; and
(2) by inserting after section 5126 the following:
``Sec. 5127. Judicial review
``(a) Filing and Venue.--Except as provided in section 20114(c) of
this title, a person suffering legal wrong or adversely affected or
aggrieved by a final action of the Secretary under this chapter may
petition for review of the final action in the United States Court of
Appeals for the District of Columbia or in the court of appeals of the
United States for the circuit in which the person or resides or has the
principal place of business. The petition shall be filed not more than
60 days after the action of the Secretary becomes final.
``(b) Procedures.--When a petition on a final action is filed under
subsection (a) of this section, the clerk of the court shall
immediately send a copy of the petition to the Secretary. The Secretary
shall file with the court a record of any proceeding in which the final
action was issued as provided in section 2112 of title 28.
``(c) Authority of Court.--The court in which a petition on a final
action is filed under subsection (a) of this section has exclusive
jurisdiction, as provided in subchapter II of chapter 5 of title 5 to
affirm or set aside any part of the final action and may order the
Secretary to conduct further proceedings. Findings of fact by the
Secretary, if supported by substantial evidence, are conclusive.
``(d) Requirement for Prior Objections.--In reviewing a final
action under this section, the court may consider an objection to the
final action only if--
``(1) the objection was made in the course of a proceeding
or review conducted by the Secretary; or
``(2) there was a reasonable ground for not making the
objection in the proceeding.''.
(b) Clerical Amendment.--The chapter analysis for chapter 51 is
amended by striking the item relating to section 5127 and inserting the
following:
``5127. Judicial review.
``5128. Authorization of appropriations.''.
SEC. 4446. AUTHORIZATION OF APPROPRIATIONS.
Section 5128, as redesignated by section 4445 of this title, is
amended to read as follows:
``Sec. 5128. Authorization of appropriations
``(a) General.--In order to carry out this chapter (except sections
5107(e), 5108(g), 5112, 5113, 5115, 5116, and 5119 of this title), the
following amounts are authorized to be appropriated to the Secretary:
``(1) For fiscal year 2004, not more than $24,981,000.
``(2) For fiscal year 2005, not more than $27,000,000.
``(3) For fiscal year 2006, not more than $29,000,000.
``(4) For each of fiscal years 2007 through 2009, not more
than $30,000,000.
``(b) Emergency Preparedness Fund.--There shall be available from
the Emergency Preparedness Fund under section 5116(i) of this title,
amounts as follows:
``(1) To carry out section 5107(e) of this title,
$4,000,000 for each of fiscal years 2004 through 2009.
``(2) To carry out section 5115 of this title, $200,000 for
each of fiscal years 2004 through 2009.
``(3) To carry out section 5116(a) of this title,
$8,000,000 for each of fiscal years 2004 through 2009.
``(4) To carry out section 5116(b) of this title,
$13,800,000 for each of fiscal years 2004 through 2009.
``(5) To carry out section 5116(f) of this title, $150,000
for each of fiscal years 2004 through 2009.
``(6) To carry out section 5116(i)(4) of this title,
$150,000 for each of fiscal years 2004 through 2009.
``(7) To carry out section 5116(j) of this title,
$1,000,000 for each of fiscal years 2004 through 2009.
``(8) To publish and distribute an emergency response
guidebook under section 5116(i)(3) of title 49, United States
Code, $500,000 for each of fiscal years 2004 through 2009.
``(c) Section 5121 Reports.--There are authorized to be
appropriated to the Secretary of Transportation for the use of the
Bureau of Transportation Statistics such sums as may be necessary to
carry out section 5121(h) of this title.''.
``(d) Credit to Appropriations.--The Secretary may credit to any
appropriation to carry out this chapter an amount received from a
State, political subdivision of a State, Indian tribe, or other public
authority or private entity for expenses the Secretary incurs in
providing training to the State, political subdivision, Indian tribe,
or other authority or entity.
``(e) Availability of Amounts.--Amounts available under subsections
(a) and (b) of this section shall remain available until expended.''.
SEC. 4447. ADDITIONAL CIVIL AND CRIMINAL PENALTIES.
(a) Title 49 Penalties.--Section 46312 is amended--
(1) by striking ``part--'' in subsection (a) and inserting
``part or chapter 51 of this title--''; and
(2) by inserting ``or chapter 51 of this title'' in
subsection (b) after ``under this part''.
(b) Title 18 Penalties.--Section 3663(a)(1)(A) of title 18, United
States Code, is amended by inserting ``5124,'' before ``46312,''.
PART II--OTHER MATTERS
SEC. 4461. ADMINISTRATIVE AUTHORITY FOR RESEARCH AND SPECIAL PROGRAMS
ADMINISTRATION.
Section 112 is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e) Administrative Authorities.--
``(1) Grants, cooperative agreements, and other
transactions.--The Administrator may enter into grants,
cooperative agreements, and other transactions with Federal
agencies, State and local government agencies, other public
entities, private organizations, and other persons--
``(A) to conduct research into transportation
service and infrastructure assurance; and
``(B) to carry out other research activities of the
Administration.
``(2) Limitation on disclosure of certain information.--
``(A) Limitation.--If the Administrator determines
that particular information developed in research
sponsored by the Administration may reveal a systemic
vulnerability of transportation service or
infrastructure, such information may be disclosed only
to--
``(i) a person responsible for the security
of the transportation service or
infrastructure; or
``(ii) a person responsible for protecting
public safety; or
``(iii) an officer, employee, or agent of
the Federal Government, or a State or local
government, who, as determined by the
Administrator, has need for such information in
the performance of official duties.
``(B) Treatment of release.--The release of
information under subparagraph (A) shall not be treated
as a release to the public for purposes of section 552
of title 5.''.
SEC. 4462. MAILABILITY OF HAZARDOUS MATERIALS.
(a) Nonmailability Generally.--Section 3001 of title 39, United
States Code, is amended--
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following:
``(n)(1) Except as otherwise authorized by law or regulations of
the Postal Service under section 3018 of this title, hazardous material
is nonmailable.
``(2) In this subsection, the term `hazardous material' means a
substance or material designated by the Secretary of Transportation as
hazardous material under section 5103(a) of title 49.''.
(b) Mailability.--
(1) In General.--Chapter 30 of title 39, United States
Code, is amended by adding at the end the following:
``Sec. 3018. Hazardous material
``(a) In General.--The Postal Service shall prescribe regulations
for the safe transportation of hazardous material in the mails.
``(b) Prohibitions.--No person may--
``(1) mail or cause to be mailed hazardous material that
has been declared by statute or Postal Service regulation to be
nonmailable;
``(2) mail or cause to be mailed hazardous material in
violation of any statute or Postal Service regulation
restricting the time, place, or manner in which hazardous
material may be mailed; or
``(3) manufacture, distribute, or sell any container,
packaging kit, or similar device that--
``(A) is represented, marked, certified, or sold by
such person for use in the mailing of hazardous
material; and
``(B) fails to conform with any statute or Postal
Service regulation setting forth standards for a
container, packaging kit, or similar device used for
the mailing of hazardous material.
``(c) Civil Penalty.--
``(1) In general.--A person who knowingly violates this
section or a regulation prescribed under this section shall be
liable to the Postal Service for--
``(A) a civil penalty of at least $250, but not
more than $100,000, for each violation;
``(B) the costs of any clean-up associated with
such violation; and
``(C) damages.
``(2) Knowing action.--A person acts knowingly for purposes
of paragraph (1) when--
``(A) the person has actual knowledge of the facts
giving rise to the violation; or
``(B) a reasonable person acting in the
circumstances and exercising reasonable care would have
had that knowledge.
``(3) Knowledge of statute or regulation not element of
offense.--Knowledge of the existence of a statutory provision
or Postal Service regulation is not an element of an offense
under this subsection.
``(4) Separate violations.--
``(A) Violations over time.--A separate violation
under this subsection occurs for each day hazardous
material, mailed or cause to be mailed in noncompliance
with this section, is in the mail.
``(B) Separate items.--A separate violation under
this subsection occurs for each item containing
hazardous material that is mailed or caused to be
mailed in noncompliance with this section.
``(d) Hearings.--The Postal Service may determine that a person has
violated this section or a regulation prescribed under this section
only after notice and an opportunity for a hearing.
``(e) Penalty Considerations.--In determining the amount of a civil
penalty for a violation of this section, the Postal Service shall
consider--
``(1) the nature, circumstances, extent, and gravity of the
violation;
``(2) with respect to the person who committed the
violation, the degree of culpability, any history of prior
violations, the ability to pay, and any effect on the ability
to continue in business;
``(3) the impact on Postal Service operations; and
``(4) any other matters that justice requires.
``(f) Civil Actions To Collect.--
``(1) In general.--In accordance with section 4409(d) of
this title, a civil action may be commenced in an appropriate
district court of the United States to collect a civil penalty,
clean-up costs, and damages assessed under subsection (c).
``(2) Limitation.--In a civil action under paragraph (1),
the validity, amount, and appropriateness of the civil penalty,
clean-up costs, and damages covered by the civil action shall
not be subject to review.
``(3) Compromise.--The Postal Service may compromise the
amount a civil penalty, clean-up costs, and damages assessed
under subsection (c) before commencing a civil action with
respect to such civil penalty, clean-up costs, and damages
under paragraph (1).
``(g) Civil Judicial Penalties.--
``(1) In general.--At the request of the Postal Service,
the Attorney General may bring a civil action in an appropriate
district court of the United States to enforce this section or
a regulation prescribed under this section.
``(2) Relief.--The court in a civil action under paragraph
(1) may award appropriate relief, including a temporary or
permanent injunction, civil penalties as determined in
accordance with this section, or punitive damages.
``(3) Construction.--A civil action under this subsection
shall be in lieu of civil penalties for the same violation
under subsection (c)(1)(A).
``(h) Deposit of Amounts Collected.--Amounts collected under this
section shall be deposited into the Postal Service Fund under section
2003 of this title.''.
(2) Conforming amendment.--The chapter analysis for chapter
30 of title 39, United States Code, is amended by adding at the
end the following:
``3018. Hazardous material.''.
(c) Conforming Amendment.--Section 2003(b) of title 39, United
States Code, is amended--
(1) by striking ``and'' after the semicolon in paragraph
(7);
(2) by striking ``purposes.'' in paragraph (8) and
inserting ``purposes; and''; and
(3) by adding at the end the following:
``(9) any amounts collected under section 3018 of this
title.''.
SEC. 4463. CRIMINAL MATTERS.
Section 845(a)(1) of title 18, United States Code, is amended by
striking ``which are regulated'' and all that follows and inserting
``that is subject to the authority of the Departments of Transportation
and Homeland Security;''.
SEC. 4464. CARGO INSPECTION PROGRAM.
(a) In General.--The Secretary of Transportation may establish a
program of random inspections of cargo at points of entry into the
United States for the purpose of determining the extent to which
undeclared hazardous material is being offered for transportation in
commerce through such points of entry.
(b) Inspections.--Under the program under subsection (a)--
(1) an officer of the Department of Transportation who is
not located at a point of entry into the United States may
select at random cargo shipments at points of entry into the
United States for inspection; and
(2) an officer or employee of the Department may open and
inspect each cargo shipment so selected for the purpose
described in subsection (a).
(c) Coordination.--The Secretary of Transportation shall coordinate
any inspections under the program under subsection (a) with the
Secretary of Homeland Security.
(d) Disposition of Hazardous Materials.--The Secretary of
Transportation shall provide for the appropriate handling and
disposition of any hazardous material discovered pursuant to
inspections under the program under subsection (a).
SEC. 4465. INFORMATION ON HAZMAT REGISTRATIONS.
The Administrator of the Department of Transportation's Research
and Special Programs Administration shall--
(1) transmit current hazardous material registrant
information to the Federal Motor Carrier Safety Administration
to cross reference the registrant's Federal motor carrier
registration number; and
(2) notify the Federal Motor Carrier Safety Administration
immediately, and provide a registrant's United States
Department of Transportation identification number to the
Administration, whenever a new registrant registers to
transport hazardous materials as a motor carrier.
SEC. 4466. REPORT ON APPLYING HAZARDOUS MATERIALS REGULATIONS TO
PERSONS WHO REJECT HAZARDOUS MATERIALS.
Within 6 months after the date of enactment of this Act, the
Secretary of Transportation shall complete an assessment of the costs
and benefits of subjecting persons who reject hazardous material for
transportation in commerce to the hazardous materials laws and
regulations. In completing this assessment, the Secretary shall--
(1) estimate the number of affected employers and
employees;
(2) determine what actions would be required by them to
comply with such laws and regulations; and
(3) consider whether and to what extent the application of
Federal hazardous materials laws and regulations should be
limited to--
(A) particular modes of transportation;
(B) certain categories of employees; or
(C) certain classes or categories of hazardous
materials.
PART III--SANITARY FOOD TRANSPORTATION
SEC. 4481. SHORT TITLE.
This part may be cited as the ``Sanitary Food Transportation Act of
2004''.
SEC. 4482. RESPONSIBILITIES OF THE SECRETARY OF HEALTH AND HUMAN
SERVICES.
(a) Unsanitary Transport Deemed Adulteration.--Section 402 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342) is amended by
adding at the end the following:
``(i) Noncompliance With Sanitary Transportation Practices.--If the
food is transported under conditions that are not in compliance with
the sanitary transportation practices prescribed by the Secretary under
section 416.''.
(b) Sanitary Transportation Requirements.--Chapter IV of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341 et seq.) is amended
by adding at the end the following:
``SEC. 416. SANITARY TRANSPORTATION PRACTICES.
``(a) Definitions.--In this section:
``(1) Bulk vehicle.--The term `bulk vehicle' includes a
tank truck, hopper truck, rail tank car, hopper car, cargo
tank, portable tank, freight container, or hopper bin, and any
other vehicle in which food is shipped in bulk, with the food
coming into direct contact with the vehicle.
``(2) Transportation.--The term `transportation' means any
movement in commerce by motor vehicle or rail vehicle.
``(b) Regulations.--The Secretary shall by regulation require
shippers, carriers by motor vehicle or rail vehicle, receivers, and
other persons engaged in the transportation of food to use sanitary
transportation practices prescribed by the Secretary to ensure that
food is not transported under conditions that may render the food
adulterated.
``(c) Contents.--The regulations shall--
``(1) prescribe such practices as the Secretary determines
to be appropriate relating to--
``(A) sanitation;
``(B) packaging, isolation, and other protective
measures;
``(C) limitations on the use of vehicles;
``(D) information to be disclosed--
``(i) to a carrier by a person arranging
for the transport of food; and
``(ii) to a manufacturer or other person
that--
``(I) arranges for the
transportation of food by a carrier; or
``(II) furnishes a tank vehicle or
bulk vehicle for the transportation of
food; and
``(E) recordkeeping; and
``(2) include--
``(A) a list of nonfood products that the Secretary
determines may, if shipped in a bulk vehicle, render
adulterated food that is subsequently transported in
the same vehicle; and
``(B) a list of nonfood products that the Secretary
determines may, if shipped in a motor vehicle or rail
vehicle (other than a tank vehicle or bulk vehicle),
render adulterated food that is simultaneously or
subsequently transported in the same vehicle.
``(d) Waivers.--
``(1) In general.--The Secretary may waive any requirement
under this section, with respect to any class of persons,
vehicles, food, or nonfood products, if the Secretary
determines that the waiver--
``(A) will not result in the transportation of food
under conditions that would be unsafe for human or
animal health; and
``(B) will not be contrary to the public interest.
``(2) Publication.--The Secretary shall publish in the
Federal Register any waiver and the reasons for the waiver.
``(e) Preemption.--
``(1) In general.--No State or political subdivision of a
State may directly or indirectly establish or continue in
effect, as to any food in interstate commerce, any authority or
requirement concerning transportation of food that is not
identical to an authority or requirement under this section.
``(2) Applicability.--This subsection applies to
transportation that occurs on or after the effective date of
the regulations promulgated under subsection (b).
``(f) Assistance of Other Agencies.--The Secretary of
Transportation, the Secretary of Agriculture, the Administrator of the
Environmental Protection Agency, and the heads of other Federal
agencies, as appropriate, shall provide assistance on request, to the
extent resources are available, to the Secretary for the purposes of
carrying out this section.''.
(c) Inspection of Transportation Records.--
(1) Requirement.--Section 703 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 373) is amended--
(A) by striking the section heading and all that
follows through ``For the purpose'' and inserting the
following:
``SEC. 703. RECORDS.
``(a) In General.--For the purpose''; and
(B) by adding at the end the following:
``(b) Food Transportation Records.--A shipper, carrier by motor
vehicle or rail vehicle, receiver, or other person subject to section
416 shall, on request of an officer or employee designated by the
Secretary, permit the officer or employee, at reasonable times, to have
access to and to copy all records that the Secretary requires to be
kept under section 416(c)(1)(E).''.
(2) Conforming amendment.--Subsection (a) of section 703 of
the Federal Food, Drug, and Cosmetic Act (as designated by
paragraph (1)(A)) is amended by striking ``carriers.'' and
inserting ``carriers, except as provided in subsection (b)''.
(d) Prohibited Acts.--
(1) Records inspection.--Section 301(e) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 331(e)) is amended by
inserting ``416,'' before ``504,'' each place it appears.
(2) Unsafe food transportation.--Section 301 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amended by
adding at the end the following:
``(hh) Noncompliance With Sanitary Transportation Practices.--The
failure by a shipper, carrier by motor vehicle or rail vehicle,
receiver, or any other person engaged in the transportation of food to
comply with the sanitary transportation practices prescribed by the
Secretary under section 416.''.
SEC. 4483. DEPARTMENT OF TRANSPORTATION REQUIREMENTS.
Chapter 57, is amended to read as follows:
``CHAPTER 57--SANITARY FOOD TRANSPORTATION
``Sec.
``5701. Food transportation safety inspections.
``Sec. 5701. Food transportation safety inspections
``(a) Inspection Procedures.--
``(1) In general.--The Secretary of Transportation, in
consultation with the Secretary of Health and Human Services
and the Secretary of Agriculture, shall--
``(A) establish procedures for transportation
safety inspections for the purpose of identifying
suspected incidents of contamination or adulteration
of--
``(i) food in violation of regulations
promulgated under section 416 of the Federal
Food, Drug, and Cosmetic Act; and
``(ii) meat subject to detention under
section 402 of the Federal Meat Inspection Act
(21 U.S.C. 672); and
``(iii) poultry products subject to
detention under section 19 of the Poultry
Products Inspection Act (21 U.S.C. 467a); and
``(B) train personnel of the Department of
Transportation in the appropriate use of the
procedures.
``(2) Applicability.--The procedures established under
paragraph (1) of this subsection shall apply, at a minimum, to
Department of Transportation personnel that perform commercial
motor vehicle or railroad safety inspections.
``(b) Notification of Secretary of Health and Human Services or
Secretary of Agriculture.--The Secretary of Transportation shall
promptly notify the Secretary of Health and Human Services or the
Secretary of Agriculture, as applicable, of any instances of potential
food contamination or adulteration of a food identified during
transportation safety inspections.
``(c) Use of State Employees.--The means by which the Secretary of
Transportation carries out subsection (b) of this section may include
inspections conducted by State employees using funds authorized to be
appropriated under sections 31102 through 31104 of this title.''.
SEC. 4484. EFFECTIVE DATE.
This part takes effect on October 1, 2003.
Subtitle E--Recreational Boating Safety Programs
SEC. 4501. SHORT TITLE.
This subtitle may be cited as the ``Sport Fishing and Recreational
Boating Safety Act''.
PART I--FEDERAL AID IN SPORT FISH RESTORATION ACT AMENDMENTS
SEC. 4521. AMENDMENT OF FEDERAL AID IN FISH RESTORATION ACT.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Act
entitled ``An Act to provide that the United States shall aid the
States in fish restoration and management projects, and for other
purposes,'' approved August 9, 1950 (64 Stat. 430; 16 U.S.C. 777 et
seq.).
SEC. 4522. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 3 (16 U.S.C. 777b) is amended--
(1) by striking ``the succeeding fiscal year.'' in the
third sentence and inserting ``succeeding fiscal years.''; and
(2) by striking ``in carrying on the research program of
the Fish and Wildlife Service in respect to fish of material
value for sport and recreation.'' and inserting ``to supplement
the 55.3 percent of each annual appropriation to be apportioned
among the States, as provided for in section 4(b) of this
title.''.
(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--
(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.
SEC. 4523. DIVISION OF ANNUAL APPROPRIATIONS.
Section 4 (16 U.S.C. 777c) is amended--
(1) by striking subsections (a) through (d) and
redesignating subsections (e), (f), and (g) as subsections (b),
(c), and (d);
(2) by inserting before subsection (b), as redesignated,
the following:
``(a) In General.--For fiscal years 2004 through 2009, each annual
appropriation made in accordance with the provisions of section 3 of
this title shall be distributed as follows:
``(1) Coastal wetlands.--18 percent to the Secretary of the
Interior for distribution as provided in the Coastal Wetlands
Planning, Protection, and Restoration Act (16 U.S.C. 3951 et
seq.).
``(2) Boating safety.--18 percent to the Secretary of
Homeland Security for State recreational boating safety
programs under section 13106 of title 46, United States Code.
``(3) Clean vessel act.--1.9 percent to the Secretary of
the Interior for qualified projects under section 5604(c) of
the Clean Vessel Act of 1992 (33 U.S.C. 1322 note).
``(4) Boating infrastructure.--1.9 percent to the Secretary
of the Interior for obligation for qualified projects under
section 7404(d) of the Sportfishing and Boating Safety Act of
1998 (16 U.S.C. 777g-1(d)).
``(5) National outreach and communications.--1.9 percent to
the Secretary of the Interior for the National Outreach and
Communications Program under section 8(d) of this title. Such
amounts shall remain available for 3 fiscal years, after which
any portion thereof that is unobligated by the Secretary for
that program may be expended by the Secretary under subsection
(b) of this section.
``(6) Set-aside for expenses for administration of this
chapter.--
``(A) In general.--2.1 percent to the Secretary of
the Interior for expenses for administration incurred
in implementation of this title, in accordance with
this section, section 9, and section 14 of this title.
``(B) Apportionment of unobligated funds.--If any
portion of the amount made available to the Secretary
under subparagraph (A) remains unexpended and
unobligated at the end of a fiscal year, that portion
shall be apportioned among the States, on the same
basis and in the same manner as other amounts made
available under this title are apportioned among the
States under subsection (b) of this section, within 60
days after the end of that fiscal year. Any amount
apportioned among the States under this subparagraph
shall be in addition to any amounts otherwise available
for apportionment among the States under subsection (b)
for the fiscal year.'';
(3) by striking ``of the Interior, after the distribution,
transfer, use, and deduction under subsections (a), (b), (c),
and (d), respectively, and after deducting amounts used for
grants under section 14, shall apportion the remainder'' in
subsection (b), as redesignated, and inserting ``shall
apportion 55.3 percent'';
(4) by striking ``per centum'' each place it appears in
subsection (b), as redesignated, and inserting ``percent'';
(5) by striking ``subsections (a), (b)(3)(A), (b)(3)(B),
and (c)'' in paragraph (1) of subsection (d), as redesignated,
and inserting ``paragraphs (1), (3), (4), and (5) of subsection
(a)''; and
(6) by adding at the end the following:
``(e) Transfer of Certain Funds.--Amounts available under
paragraphs (3) and (4) of subsection (a) that are unobligated by the
Secretary after 3 fiscal years shall be transferred to the Secretary of
Homeland Security and shall be expended for State recreational boating
safety programs under section 13106(a) of title 46, United States
Code.''.
SEC. 4524. MAINTENANCE OF PROJECTS.
Section 8 (16 U.S.C. 777g) is amended--
(1) by striking ``in carrying out the research program of
the Fish and Wildlife Service in respect to fish of material
value for sport or recreation.'' in subsection (b)(2) and
inserting ``to supplement the 55.3 percent of each annual
appropriation to be apportioned among the States under section
4(b) of this title.''; and
(2) by striking ``subsection (c) or (d) of section 4'' in
subsection (d)(3) and inserting ``paragraph (5) or (6) of
section 4(a)''.
SEC. 4525. BOATING INFRASTRUCTURE.
Section 7404(d)(1) of the Sportfishing and Boating Safety Act of
1998 (16 U.S.C. 777g-1(d)(1)) is amended by striking ``section
4(b)(3)(B)'' and inserting ``section 4(a)(4)''.
SEC. 4526. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF AMOUNTS FOR
EXPENSES FOR ADMINISTRATION.
Section 9 (16 U.S.C. 777h) is amended--
(1) by striking ``section 4(d)(1)'' in subsection (a) and
inserting ``section 4(a)(6)''; and
(2) by striking ``section 4(d)(1)'' in subsection (b)(1)
and inserting ``section 4(a)(6)''.
SEC. 4527. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO RICO, THE
DISTRICT OF COLUMBIA, GUAM, AMERICAN SAMOA, THE
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS, AND THE
VIRGIN ISLANDS.
Section 12 (16 U.S.C. 777k) is amended by striking ``in carrying on
the research program of the Fish and Wildlife Service in respect to
fish of material value for sport or recreation.'' and inserting ``to
supplement the 55.3 percent of each annual appropriation to be
apportioned among the States under section 4(b) of this title.''.
SEC. 4528. MULTISTATE CONSERVATION GRANT PROGRAM.
Section 14 (16 U.S.C. 777m) is amended--
(1) by striking so much of subsection (a) as precedes
paragraph (2) and inserting the following:
``(a) In General.--
``(1) Amount for grants.--For each of fiscal years 2004
through 2009, 0.9 percent of each annual appropriation made in
accordance with the provisions of section 3 of this title shall
be distributed to the Secretary of the Interior for making
multistate conservation project grants in accordance with this
section.'';
(2) by striking ``section 4(e)'' each place it appears in
subsection (a)(2)(B) and inserting ``section 4(b)''; and
(3) by striking ``Of the balance of each annual
appropriation made under section 3 remaining after the
distribution and use under subsections (a), (b), and (c) of
section 4 for each fiscal year and after deducting amounts used
for grants under subsection (a)--'' in subsection (e) and
inserting ``Of amounts made available under section 4(a)(6) for
each fiscal year--''.
PART II--CLEAN VESSEL ACT AMENDMENTS
SEC. 4541. GRANT PROGRAM.
Section 5604(c)(2) of the Clean Vessel Act of 1992 (33 U.S.C. 1322
note) is amended--
(1) by striking subparagraph (A); and
(2) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
PART III--RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS
SEC. 4561. STATE MATCHING FUNDS REQUIREMENT.
Section 13103(b) of title 46, United States Code, is amended by
striking ``one-half'' and inserting ``75 percent''.
SEC. 4562. AVAILABILITY OF ALLOCATIONS.
Section 13104(a) of title 46, United States Code, is amended--
(1) by striking ``2 years'' in paragraph (1) and inserting
``3 years''; and
(2) by striking ``2-year'' in paragraph (2) and inserting
``3-year''.
SEC. 4563. AUTHORIZATION OF APPROPRIATIONS FOR STATE RECREATIONAL
BOATING SAFETY PROGRAMS.
Section 13106(c) of title 46, United States Code, is amended--
(1) by striking ``Secretary of Transportation under
paragraphs (2) and (3) of section 4(b)'' and inserting
``Secretary under subsections (a)(2) and (e) of section 4'';
and
(2) by inserting ``a minimum of'' before ``$2,083,333''.
SEC. 4564. MAINTENANCE OF EFFORT FOR STATE RECREATIONAL BOATING SAFETY
PROGRAMS.
(a) In General.--Chapter 131 of title 46, United States Code, is
amended by inserting after section 13106 the following:
``Sec. 13107. Maintenance of effort for State recreational boating
safety programs
``(a) In General.--The amount payable to a State for a fiscal year
from an allocation under section 13103 of this chapter shall be reduced
if the usual amounts expended by the State for the State's recreational
boating safety program, as determined under section 13105 of this
chapter, for the previous fiscal year is less than the average of the
total of such expenditures for the 3 fiscal years immediately preceding
that previous fiscal year. The reduction shall be proportionate, as a
percentage, to the amount by which the level of State expenditures for
such previous fiscal year is less than the average of the total of such
expenditures for the 3 fiscal years immediately preceding that previous
fiscal year.
``(b) Reduction of Threshhold.--If the total amount available for
allocation and distribution under this chapter in a fiscal year for all
participating State recreational boating safety programs is less than
such amount for the preceding fiscal year, the level of State
expenditures required under subsection (a) of this section for the
preceding fiscal year shall be decreased proportionately.
``(c) Waiver.--
``(1) In general.--Upon the written request of a State, the
Secretary may waive the provisions of subsection (a) of this
section for 1 fiscal year if the Secretary determines that a
reduction in expenditures for the State's recreational boating
safety program is attributable to a non- selective reduction in
expenditures for the programs of all Executive branch agencies
of the State government, or for other reasons if the State
demonstrates to the Secretary's satisfaction that such waiver
is warranted.
``(2) 30-day decision.--The Secretary shall approve or deny
a request for a waiver not later than 30 days after the date
the request is received.''.
(b) Conforming Amendment.--The chapter analysis for chapter 131 of
title 46, United States Code, is amended by inserting after the item
relating to section 13106 the following:
``13107. Maintenance of effort for State recreational boating safety
programs.''.
PART IV--MISCELLANEOUS
SEC. 4581. TECHNICAL CORRECTION TO HOMELAND SECURITY ACT.
Section 1511(e)(2) of the Homeland Security Act of 2002 (Pub. L.
107-296) is amended by striking ``and to any funds provided to the
Coast Guard from the Aquatic Resources Trust Fund of the Highway Trust
Fund for boating safety programs.'' and inserting ``and any funds
provided to the Coast Guard from the Highway Trust Fund and transferred
into the Sport Fish Restoration Account of the Aquatic Resources Trust
Fund for boating safety programs.''.
Subtitle F--Rail Transportation
PART I--AMTRAK
SEC. 4601. AUTHORIZATION OF APPROPRIATIONS.
The text of section 24104 of title 49, United States Code, is
amended to read as follows:
``There are authorized to be appropriated to the Secretary of
Transportation $2,000,000,000 for each of fiscal years 2004, 2005,
2006, 2007, 2008, and 2009 for the benefit of Amtrak for operating
expenses.''.
SEC. 4602. ESTABLISHMENT OF 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 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 II--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 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 III--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.
SEC. 4662. 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.
TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION
SEC. 5000. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This title may be cited as the ``Highway
Reauthorization and Excise Tax Simplification Act of 2004''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
Subtitle A--Trust Fund Reauthorization
SEC. 5001. EXTENSION OF HIGHWAY TRUST FUND AND AQUATIC RESOURCES TRUST
FUND EXPENDITURE AUTHORITY AND RELATED TAXES.
(a) Highway Trust Fund Expenditure Authority.--
(1) Highway account.--Paragraph (1) of section 9503(c)
(relating to transfers from Highway Trust Fund for certain
repayments and credits) is amended--
(A) in the matter before subparagraph (A), by
striking ``March 1, 2004'' and inserting ``October 1,
2009'',
(B) by striking ``or'' at the end of subparagraph
(E),
(C) by striking the period at the end of
subparagraph (F) and inserting ``, or'',
(D) by inserting after subparagraph (F), the
following new subparagraph:
``(G) authorized to be paid out of the Highway
Trust Fund under the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004.'', and
(E) in the matter after subparagraph (G), as added
by subparagraph (D), by striking ``Surface
Transportation Extension Act of 2003'' and inserting
``Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004''.
(2) Mass transit account.--Paragraph (3) of section 9503(e)
(relating to establishment of Mass Transit Account) is
amended--
(A) in the matter before subparagraph (A), by
striking ``March 1, 2004'' and inserting ``October 1,
2009'',
(B) by striking ``or'' at the end of subparagraph
(C),
(C) by striking the period at the end of
subparagraph (D) and inserting ``, or'',
(D) by inserting after subparagraph (D), the
following new subparagraph:
``(E) the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2004,'', and
(E) in the matter after subparagraph (E), as added
by subparagraph (D), by striking ``Surface
Transportation Extension Act of 2003'' and inserting
``Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004''.
(3) Exception to limitation on transfers.--Subparagraph (B)
of section 9503(b)(5) (relating to limitation on transfers to
Highway Trust Fund) is amended by striking ``March 1, 2004''
and inserting ``October 1, 2009''.
(b) Aquatic Resources Trust Fund Expenditure Authority.--
(1) Sport fish restoration account.--Paragraph (2) of
section 9504(b) (relating to Sport Fish Restoration Account) is
amended by striking ``Surface Transportation Extension Act of
2003'' each place it appears and inserting ``Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of 2004''.
(2) Boat safety account.--Section 9504(c) (relating to
expenditures from Boat Safety Account) is amended--
(A) by striking ``March 1, 2004'' and inserting
``October 1, 2009'', and
(B) by striking ``Surface Transportation Extension
Act of 2003'' and inserting ``Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of
2004''.
(3) Exception to limitation on transfers.--Paragraph (2) of
section 9504(d) (relating to limitation on transfers to Aquatic
Resources Trust Fund) is amended by striking ``March 1, 2004''
and inserting ``October 1, 2009''.
(4) Technical correction.--The last sentence of paragraph
(2) of section 9504(b) is amended by striking ``subparagraph
(B)'', and inserting ``subparagraph (C)''.
(c) Extension of Taxes.--
(1) In general.--The following provisions are each amended
by striking ``2005'' each place it appears and inserting
``2009'':
(A) Section 4041(a)(1)(C)(iii)(I) (relating to rate
of tax on certain buses).
(B) Section 4041(a)(2)(B) (relating to rate of tax
on special motor fuels).
(C) Section 4041(m)(1)(A) (relating to certain
alcohol fuels produced from natural gas).
(D) Section 4051(c) (relating to termination of tax
on heavy trucks and trailers).
(E) Section 4071(d) (relating to termination of tax
on tires).
(F) Section 4081(d)(1) (relating to termination of
tax on gasoline, diesel fuel, and kerosene).
(G) Section 4481(e) (relating to period tax in
effect).
(H) Section 4482(c)(4) (relating to taxable
period).
(I) Section 4482(d) (relating to special rule for
taxable period in which termination date occurs).
(2) Floor stocks refunds.--Section 6412(a)(1) (relating to
floor stocks refunds) is amended--
(A) by striking ``2005'' each place it appears and
inserting ``2009'', and
(B) by striking ``2006'' each place it appears and
inserting ``2010''.
(d) Extension of Certain Exemptions.--The following provisions are
each amended by striking ``2005'' and inserting ``2009'':
(1) Section 4221(a) (relating to certain tax-free sales).
(2) Section 4483(g) (relating to termination of exemptions
for highway use tax).
(e) Extension of Deposits Into, and Certain Transfers From, Trust
Fund.--
(1) In general.--Subsections (b), (c)(2), (c)(3),
(c)(4)(A)(i), and (c)(5)(A) of section 9503 (relating to the
Highway Trust Fund) are amended--
(A) by striking ``2005'' each place it appears and
inserting ``2009'', and
(B) by striking ``2006'' each place it appears and
inserting ``2010''.
(2) Conforming amendments to land and water conservation
fund.--Section 201(b) of the Land and Water Conservation Fund
Act of 1965 (16 U.S.C. 460l-11(b)) is amended--
(A) by striking ``2003'' and inserting ``2007'',
and
(B) by striking ``2004'' each place it appears and
inserting ``2008''.
(f) Extension of Tax Benefits for Qualified Methanol and Ethanol
Fuel Produced From Coal.--Section 4041(b)(2) (relating to qualified
methanol and ethanol fuel) is amended--
(1) by striking ``2007'' in subparagraph (C)(ii) and
inserting ``2010'', and
(2) by striking ``October 1, 2007'' in subparagraph (D) and
inserting ``January 1, 2011''.
(g) Prohibition on Use of Highway Account for Rail Projects.--
Section 9503(c) (relating to transfers from Highway Trust Fund for
certain repayments and credits) is amended by adding at the end the
following new paragraph:
``(6) Prohibition on use of highway account for 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 to be
allocated $1,000,000 to each State to combat fuel tax
evasion on the State level.''.
(i) Effective Date.--The amendments made by and provisions of this
section shall take effect on the date of the enactment of this Act.
SEC. 5002. FULL ACCOUNTING OF FUNDS RECEIVED BY THE HIGHWAY TRUST FUND.
(a) In General.--Section 9503(c) (relating to transfers from
Highway Trust Fund for certain repayments and credits), as amended by
section 5001 of this Act, is amended by striking paragraph (2) and
redesignating paragraphs (3), (4), (5), (6), and (7) as paragraphs (2),
(3), (4), (5), and (6), respectively.
(b) Interest on Unexpended Balances Credited to Trust Fund.--
Section 9503 (relating to the Highway Trust Fund) is amended by
striking subsection (f).
(c) Conforming Amendments.--
(1) Section 9503(b)(4)(D) is amended by striking
``paragraph (4)(D) or (5)(B)'' and inserting ``paragraph (3)(D)
or (4)(B)''.
(2) Paragraph (2) of section 9503(c) (as redesignated by
subsection (a)) is amended by adding at the end the following
new sentence: ``The amounts payable from the Highway Trust Fund
under this paragraph shall be determined by taking into account
only the portion of the taxes which are deposited into the
Highway Trust Fund.''.
(3) Section 9504(a)(2) is amended by striking ``section
9503(c)(4), section 9503(c)(5)'' and inserting ``section
9503(c)(3), section 9503(c)(4)''.
(4) Paragraph (2) of section 9504(b), as amended by section
5001 of this Act, is amended by striking ``section 9503(c)(5)''
and inserting ``section 9503(c)(4)''.
(5) Section 9504(e) is amended by striking ``section
9503(c)(4)'' and inserting ``section 9503(c)(3)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to amounts paid for
which no transfer from the Highway Trust Fund has been made
before April 1, 2004.
(2) Interest credited.--The amendment made by subsection
(b) shall take effect on the date of the enactment of this Act.
SEC. 5003. MODIFICATION OF ADJUSTMENTS OF APPORTIONMENTS.
(a) In General.--Section 9503(d) (relating to adjustments for
apportionments) is amended--
(1) by striking ``24-month'' in paragraph (1)(B) and
inserting ``48-month'', and
(2) by striking ``2 years''' in the heading for paragraph
(3) and inserting ``4 years'''.
(b) Measurement of Net Highway Receipts.--Section 9503(d) is
amended by redesignating paragraph (6) as paragraph (7) and by
inserting after paragraph (5) the following new paragraph:
``(6) Measurement of net highway receipts.--For purposes of
making any estimate under paragraph (1) of net highway receipts
for periods ending after the date specified in subsection
(b)(1), the Secretary shall treat--
``(A) each expiring provision of subsection (b)
which is related to appropriations or transfers to the
Highway Trust Fund to have been extended through the
end of the 48-month period referred to in paragraph
(1)(B), and
``(B) with respect to each tax imposed under the
sections referred to in subsection (b)(1), the rate of
such tax during the 48-month period referred to in
paragraph (1)(B) to be the same as the rate of such tax
as in effect on the date of such estimate.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
Subtitle B--Volumetric Ethanol Excise Tax Credit
SEC. 5101. SHORT TITLE.
This subtitle may be cited as the ``Volumetric Ethanol Excise Tax
Credit (VEETC) Act of 2004''.
SEC. 5102. ALCOHOL AND BIODIESEL EXCISE TAX CREDIT AND EXTENSION OF
ALCOHOL FUELS INCOME TAX CREDIT.
(a) In General.--Subchapter B of chapter 65 (relating to rules of
special application) is amended by inserting after section 6425 the
following new section:
``SEC. 6426. CREDIT FOR ALCOHOL FUEL AND BIODIESEL MIXTURES.
``(a) Allowance of Credits.--There shall be allowed as a credit
against the tax imposed by section 4081 an amount equal to the sum of--
``(1) the alcohol fuel mixture credit, plus
``(2) the biodiesel mixture credit.
``(b) Alcohol Fuel Mixture Credit.--
``(1) In general.--For purposes of this section, the
alcohol fuel mixture credit is the product of the applicable
amount and the number of gallons of alcohol used by the
taxpayer in producing any alcohol fuel mixture for sale or use
in a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in
subparagraph (B), the applicable amount is 52 cents (51
cents in the case of any sale or use after 2004).
``(B) Mixtures not containing ethanol.--In the case
of an alcohol fuel mixture in which none of the alcohol
consists of ethanol, the applicable amount is 60 cents.
``(3) Alcohol fuel mixture.--For purposes of this
subsection, the term `alcohol fuel mixture' means a mixture of
alcohol and a taxable fuel which--
``(A) is sold by the taxpayer producing such
mixture to any person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing
such mixture, or
``(C) is removed from the refinery by a person
producing such mixture.
``(4) Other definitions.--For purposes of this subsection--
``(A) Alcohol.--The term `alcohol' includes
methanol and ethanol but does not include--
``(i) alcohol produced from petroleum,
natural gas, or coal (including peat), or
``(ii) alcohol with a proof of less than
190 (determined without regard to any added
denaturants).
Such term also includes an alcohol gallon equivalent of
ethyl tertiary butyl ether or other ethers produced
from such alcohol.
``(B) Taxable fuel.--The term `taxable fuel' has
the meaning given such term by section 4083(a)(1).
``(5) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2010.
``(c) Biodiesel Mixture Credit.--
``(1) In general.--For purposes of this section, the
biodiesel mixture credit is the product of the applicable
amount and the number of gallons of biodiesel used by the
taxpayer in producing any biodiesel mixture for sale or use in
a trade or business of the taxpayer.
``(2) Applicable amount.--For purposes of this subsection--
``(A) In general.--Except as provided in
subparagraph (B), the applicable amount is 50 cents.
``(B) Amount for agri-biodiesel.--In the case of
any biodiesel which is agri-biodiesel, the applicable
amount is $1.00.
``(3) Biodiesel mixture.--For purposes of this section, the
term `biodiesel mixture' means a mixture of biodiesel and
diesel fuel (as defined in section 4083(a)(3)), determined
without regard to any use of kerosene, which--
``(A) is sold by the taxpayer producing such
mixture to any person for use as a fuel,
``(B) is used as a fuel by the taxpayer producing
such mixture, or
``(C) is removed from the refinery by a person
producing such mixture.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer of the biodiesel which identifies
the product produced and the percentage of biodiesel and agri-
biodiesel in the product.
``(5) Other definitions.--Any term used in this subsection
which is also used in section 40A shall have the meaning given
such term by section 40A.
``(6) Termination.--This subsection shall not apply to any
sale, use, or removal for any period after December 31, 2006.
``(d) Mixture not used as a fuel, etc.--
``(1) Imposition of tax.--If--
``(A) any credit was determined under this section
with respect to alcohol or biodiesel used in the
production of any alcohol fuel mixture or biodiesel
mixture, respectively, and
``(B) any person--
``(i) separates the alcohol or biodiesel
from the mixture, or
``(ii) without separation, uses the mixture
other than as a fuel,
then there is hereby imposed on such person a tax equal
to the product of the applicable amount and the number
of gallons of such alcohol or biodiesel.
``(2) Applicable laws.--All provisions of law, including
penalties, shall, insofar as applicable and not inconsistent
with this section, apply in respect of any tax imposed under
paragraph (1) as if such tax were imposed by section 4081 and
not by this section.
``(e) Coordination With Exemption From Excise Tax.--Rules similar
to the rules under section 40(c) shall apply for purposes of this
section.''.
(b) Registration Requirement.--Section 4101(a)(1) (relating to
registration), as amended by sections 5211 and 5242 of this Act, is
amended by inserting ``and every person producing or importing
biodiesel (as defined in section 40A(d)(1)) or alcohol (as defined in
section 6426(b)(4)(A))'' after ``4081''.
(c) Additional Amendments.--
(1) Section 40(c) is amended by striking ``subsection
(b)(2), (k), or (m) of section 4041, section 4081(c), or
section 4091(c)'' and inserting ``section 4041(b)(2), section
6426, or section 6427(e)''.
(2) Paragraph (4) of section 40(d) is amended to read as
follows:
``(4) Volume of alcohol.--For purposes of determining under
subsection (a) the number of gallons of alcohol with respect to
which a credit is allowable under subsection (a), the volume of
alcohol shall include the volume of any denaturant (including
gasoline) which is added under any formulas approved by the
Secretary to the extent that such denaturants do not exceed 5
percent of the volume of such alcohol (including
denaturants).''.
(3) Section 40(e)(1) is amended--
(A) by striking ``2007'' in subparagraph (A) and
inserting ``2010'', and
(B) by striking ``2008'' in subparagraph (B) and
inserting ``2011''.
(4) Section 40(h) is amended--
(A) by striking ``2007'' in paragraph (1) and
inserting ``2010'', and
(B) by striking ``, 2006, or 2007'' in the table
contained in paragraph (2) and inserting ``through
2010''.
(5) Section 4041(b)(2)(B) is amended by striking ``a
substance other than petroleum or natural gas'' and inserting
``coal (including peat)''.
(6) Section 4041 is amended by striking subsection (k).
(7) Section 4081 is amended by striking subsection (c).
(8) Paragraph (2) of section 4083(a) is amended to read as
follows:
``(2) Gasoline.--The term `gasoline'--
``(A) includes any gasoline blend, other than
qualified methanol or ethanol fuel (as defined in
section 4041(b)(2)(B)), partially exempt methanol or
ethanol fuel (as defined in section 4041(m)(2)), or a
denatured alcohol, and
``(B) includes, to the extent prescribed in
regulations--
``(i) any gasoline blend stock, and
``(ii) any product commonly used as an
additive in gasoline (other than alcohol).
For purposes of subparagraph (B)(i), the term `gasoline blend
stock' means any petroleum product component of gasoline.''.
(9) Section 6427 is amended by inserting after subsection
(d) the following new subsection:
``(e) Alcohol or Biodiesel Used To Produce Alcohol Fuel and
Biodiesel Mixtures or Used as Fuels.--Except as provided in subsection
(k)--
``(1) Used to produce a mixture.--If any person produces a
mixture described in section 6426 in such person's trade or
business, the Secretary shall pay (without interest) to such
person an amount equal to the alcohol fuel mixture credit or
the biodiesel mixture credit with respect to such mixture.
``(2) Used as fuel.--If alcohol (as defined in section
40(d)(1)) or biodiesel (as defined in section 40A(d)(1)) or
agri-biodiesel (as defined in section 40A(d)(2)) which is not
in a mixture described in section 6426--
``(A) is used by any person as a fuel in a trade or
business, or
``(B) is sold by any person at retail to another
person and placed in the fuel tank of such person's
vehicle,
the Secretary shall pay (without interest) to such person an
amount equal to the alcohol credit (as determined under section
40(b)(2)) or the biodiesel credit (as determined under section
40A(b)(2)) with respect to such fuel.
``(3) Coordination with other repayment provisions.--No
amount shall be payable under paragraph (1) with respect to any
mixture with respect to which an amount is allowed as a credit
under section 6426.
``(4) Termination.--This subsection shall not apply with
respect to--
``(A) any alcohol fuel mixture (as defined in
section 6426(b)(3)) or alcohol (as so defined) sold or
used after December 31, 2010, and
``(B) any biodiesel mixture (as defined in section
6426(c)(3)) or biodiesel (as so defined) or agri-
biodiesel (as so defined) sold or used after December
31, 2006.''.
(10) Section 6427(i)(3) is amended--
(A) by striking ``subsection (f)'' both places it
appears in subparagraph (A) and inserting ``subsection
(e)(1)'',
(B) by striking ``gasoline, diesel fuel, or
kerosene used to produce a qualified alcohol mixture
(as defined in section 4081(c)(3))'' in subparagraph
(A) and inserting ``a mixture described in section
6426'',
(C) by adding at the end of subparagraph (A) the
following new flush sentence:
``In the case of an electronic claim, this subparagraph
shall be applied without regard to clause (i).'',
(D) by striking ``subsection (f)(1)'' in
subparagraph (B) and inserting ``subsection (e)(1)'',
(E) by striking ``20 days of the date of the filing
of such claim'' in subparagraph (B) and inserting ``45
days of the date of the filing of such claim (20 days
in the case of an electronic claim)'', and
(F) by striking ``alcohol mixture'' in the heading
and inserting ``alcohol fuel and biodiesel mixture''.
(11) Section 9503(b)(1) is amended by adding at the end the
following new flush sentence:
``For purposes of this paragraph, taxes received under sections
4041 and 4081 shall be determined without reduction for credits
under section 6426.''.
(12) Section 9503(b)(4), as amended by section 5101 of this
Act, is amended--
(A) by adding ``or'' at the end of subparagraph
(C),
(B) by striking the comma at the end of
subparagraph (D)(iii) and inserting a period, and
(C) by striking subparagraphs (E) and (F).
(13) The table of sections for subchapter B of chapter 65
is amended by inserting after the item relating to section 6425
the following new item:
``Sec. 6426. Credit for alcohol fuel and biodiesel mixtures.''.
(14) Tariff schedule.--Headings 9901.00.50 and 9901.00.52
of the Harmonized Tariff Schedule of the United States (19
U.S.C. 3007) are each amended in the effective period column by
striking ``10/1/2007'' each place it appears and inserting ``1/
1/2011''.
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
fuel sold or used after September 30, 2004.
(2) Registration requirement.--The amendment made by
subsection (b) shall take effect on April 1, 2005.
(3) Extension of alcohol fuels credit.--The amendments made
by paragraphs (3), (4), and (14) of subsection (c) shall take
effect on the date of the enactment of this Act.
(4) Repeal of general fund retention of certain alcohol
fuels taxes.--The amendments made by subsection (c)(12) shall
apply to fuel sold or used after September 30, 2003.
(e) Format for Filing.--The Secretary of the Treasury shall
describe the electronic format for filing claims described in section
6427(i)(3)(B) of the Internal Revenue Code of 1986 (as amended by
subsection (c)(10)(C)) not later than September 30, 2004.
SEC. 5103. BIODIESEL INCOME TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by inserting after
section 40 the following new section:
``SEC. 40A. BIODIESEL USED AS FUEL.
``(a) General Rule.--For purposes of section 38, the biodiesel
fuels credit determined under this section for the taxable year is an
amount equal to the sum of--
``(1) the biodiesel mixture credit, plus
``(2) the biodiesel credit.
``(b) Definition of Biodiesel Mixture Credit and Biodiesel
Credit.--For purposes of this section--
``(1) Biodiesel mixture credit.--
``(A) In general.--The biodiesel mixture credit of
any taxpayer for any taxable year is 50 cents for each
gallon of biodiesel used by the taxpayer in the
production of a qualified biodiesel mixture.
``(B) Qualified biodiesel mixture.--The term
`qualified biodiesel mixture' means a mixture of
biodiesel and diesel fuel (as defined in section
4083(a)(3)), determined without regard to any use of
kerosene, which--
``(i) is sold by the taxpayer producing
such mixture to any person for use as a fuel,
or
``(ii) is used as a fuel by the taxpayer
producing such mixture.
``(C) Sale or use must be in trade or business,
etc.--Biodiesel used in the production of a qualified
biodiesel mixture shall be taken into account--
``(i) only if the sale or use described in
subparagraph (B) is in a trade or business of
the taxpayer, and
``(ii) for the taxable year in which such
sale or use occurs.
``(D) Casual off-farm production not eligible.--No
credit shall be allowed under this section with respect
to any casual off-farm production of a qualified
biodiesel mixture.
``(2) Biodiesel credit.--
``(A) In general.--The biodiesel credit of any
taxpayer for any taxable year is 50 cents for each
gallon of biodiesel which is not in a mixture with
diesel fuel and which during the taxable year--
``(i) is used by the taxpayer as a fuel in
a trade or business, or
``(ii) is sold by the taxpayer at retail to
a person and placed in the fuel tank of such
person's vehicle.
``(B) User credit not to apply to biodiesel sold at
retail.--No credit shall be allowed under subparagraph
(A)(i) with respect to any biodiesel which was sold in
a retail sale described in subparagraph (A)(ii).
``(3) Credit for agri-biodiesel.--In the case of any
biodiesel which is agri-biodiesel, paragraphs (1)(A) and (2)(A)
shall be applied by substituting `$1.00' for `50 cents'.
``(4) Certification for biodiesel.--No credit shall be
allowed under this section unless the taxpayer obtains a
certification (in such form and manner as prescribed by the
Secretary) from the producer or importer of the biodiesel which
identifies the product produced and the percentage of biodiesel
and agri-biodiesel in the product.
``(c) Coordination With Credit Against Excise Tax.--The amount of
the credit determined under this section with respect to any biodiesel
shall be properly reduced to take into account any benefit provided
with respect to such biodiesel solely by reason of the application of
section 6426 or 6427(e).
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Biodiesel.--The term `biodiesel' means the monoalkyl
esters of long chain fatty acids derived from plant or animal
matter which meet--
``(A) the registration requirements for fuels and
fuel additives established by the Environmental
Protection Agency under section 211 of the Clean Air
Act (42 U.S.C. 7545), and
``(B) the requirements of the American Society of
Testing and Materials D6751.
``(2) Agri-biodiesel.--The term `agri-biodiesel' means
biodiesel derived solely from virgin oils, including esters
derived from virgin vegetable oils from corn, soybeans,
sunflower seeds, cottonseeds, canola, crambe, rapeseeds,
safflowers, flaxseeds, rice bran, and mustard seeds, and from
animal fats.
``(3) Mixture or biodiesel not used as a fuel, etc.--
``(A) Mixtures.--If--
``(i) any credit was determined under this
section with respect to biodiesel used in the
production of any qualified biodiesel mixture,
and
``(ii) any person--
``(I) separates the biodiesel from
the mixture, or
``(II) without separation, uses the
mixture other than as a fuel,
then there is hereby imposed on such person a tax equal
to the product of the rate applicable under subsection
(b)(1)(A) and the number of gallons of such biodiesel
in such mixture.
``(B) Biodiesel.--If--
``(i) any credit was determined under this
section with respect to the retail sale of any
biodiesel, and
``(ii) any person mixes such biodiesel or
uses such biodiesel other than as a fuel,
then there is hereby imposed on such person a tax equal
to the product of the rate applicable under subsection
(b)(2)(A) and the number of gallons of such biodiesel.
``(C) Applicable laws.--All provisions of law,
including penalties, shall, insofar as applicable and
not inconsistent with this section, apply in respect of
any tax imposed under subparagraph (A) or (B) as if
such tax were imposed by section 4081 and not by this
chapter.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(e) Termination.--This section shall not apply to any sale or use
after December 31, 2006.''.
(b) Credit Treated as Part of General Business Credit.--Section
38(b) (relating to current year business credit) is amended by striking
``plus'' at the end of paragraph (14), by striking the period at the
end of paragraph (15) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(16) the biodiesel fuels credit determined under section
40A(a).''.
(c) Conforming Amendments.--
(1) Section 39(d) is amended by adding at the end the
following new paragraph:
``(11) No carryback of biodiesel fuels credit before
effective date.--No portion of the unused business credit for
any taxable year which is attributable to the biodiesel fuels
credit determined under section 40A may be carried back to a
taxable year ending on or before September 30, 2004.''.
(2)(A) Section 87 is amended to read as follows:
``SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS.
``Gross income includes--
``(1) the amount of the alcohol fuels credit determined
with respect to the taxpayer for the taxable year under section
40(a), and
``(2) the biodiesel fuels credit determined with respect to
the taxpayer for the taxable year under section 40A(a).''.
(B) The item relating to section 87 in the table of
sections for part II of subchapter B of chapter 1 is amended by
striking ``fuel credit'' and inserting ``and biodiesel fuels
credits''.
(3) Section 196(c) is amended by striking ``and'' at the
end of paragraph (9), by striking the period at the end of
paragraph (10) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(11) the biodiesel fuels credit determined under section
40A(a).''.
(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding after the item
relating to section 40 the following new item:
``Sec. 40A. Biodiesel used as fuel.''.
(d) Effective Date.--The amendments made by this section shall
apply to fuel produced, and sold or used, after September 30, 2004, in
taxable years ending after such date.
Subtitle C--Fuel Fraud Prevention
SEC. 5200. SHORT TITLE.
This subtitle may be cited as the ``Fuel Fraud Prevention Act of
2004''.
PART I--AVIATION JET FUEL
SEC. 5211. TAXATION OF AVIATION-GRADE KEROSENE.
(a) Rate of Tax.--
(1) In general.--Subparagraph (A) of section 4081(a)(2) is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following new clause:
``(iv) in the case of aviation-grade
kerosene, 21.8 cents per gallon.''.
(2) Commercial aviation.--Paragraph (2) of section 4081(a)
is amended by adding at the end the following new subparagraph:
``(C) Taxes imposed on fuel used in commercial
aviation.--In the case of aviation-grade kerosene which
is removed from any refinery or terminal directly into
the fuel tank of an aircraft for use in commercial
aviation, the rate of tax under subparagraph (A)(iv)
shall be 4.3 cents per gallon.''.
(3) Nontaxable uses.--
(A) In general.--Section 4082 is amended by
redesignating subsections (e) and (f) as subsections
(f) and (g), respectively, and by inserting after
subsection (d) the following new subsection:
``(e) Aviation-Grade Kerosene.--In the case of aviation-grade
kerosene which is exempt from the tax imposed by section 4041(c) (other
than by reason of a prior imposition of tax) and which is removed from
any refinery or terminal directly into the fuel tank of an aircraft,
the rate of tax under section 4081(a)(2)(A)(iv) shall be zero.''.
(B) Conforming amendments.--
(i) Subsection (b) of section 4082 is
amended by adding at the end the following new
flush sentence: ``The term `nontaxable use'
does not include the use of aviation-grade
kerosene in an aircraft.''.
(ii) Section 4082(d) is amended by striking
paragraph (1) and by redesignating paragraphs
(2) and (3) as paragraphs (1) and (2),
respectively.
(4) Nonaircraft use of aviation-grade kerosene.--
(A) In general.--Subparagraph (B) of section
4041(a)(1) is amended by adding at the end the
following new sentence: ``This subparagraph shall not
apply to aviation-grade kerosene.''.
(B) Conforming amendment.--The heading for
paragraph (1) of section 4041(a) is amended by
inserting ``and kerosene'' after ``diesel fuel''.
(b) Commercial Aviation.--Section 4083 is amended redesignating
subsections (b) and (c) as subsections (c) and (d), respectively, and
by inserting after subsection (a) the following new subsection:
``(b) Commercial Aviation.--For purposes of this subpart, the term
`commercial aviation' means any use of an aircraft in a business of
transporting persons or property for compensation or hire by air,
unless properly allocable to any transportation exempt from the taxes
imposed by section 4261 and 4271 by reason of section 4281 or 4282 or
by reason of section 4261(h).''.
(c) Refunds.--
(1) In general.--Paragraph (4) of section 6427(l) is
amended to read as follows:
``(4) Refunds for aviation-grade kerosene.--
``(A) No refund of certain taxes on fuel used in
commercial aviation.--In the case of aviation-grade
kerosene used in commercial aviation (as defined in
section 4083(b)) (other than supplies for vessels or
aircraft within the meaning of section 4221(d)(3)),
paragraph (1) shall not apply to so much of the tax
imposed by section 4081 as is attributable to--
``(i) the Leaking Underground Storage Tank
Trust Fund financing rate imposed by such
section, and
``(ii) so much of the rate of tax specified
in section 4081(a)(2)(A)(iv) as does not exceed
4.3 cents per gallon.
``(B) Payment to ultimate, registered vendor.--With
respect to aviation-grade kerosene, if the ultimate
purchaser of such kerosene waives (at such time and in
such form and manner as the Secretary shall prescribe)
the right to payment under paragraph (1) and assigns
such right to the ultimate vendor, then the Secretary
shall pay the amount which would be paid under
paragraph (1) to such ultimate vendor, but only if such
ultimate vendor--
``(i) is registered under section 4101, and
``(ii) meets the requirements of
subparagraph (A), (B), or (D) of section
6416(a)(1).''.
(2) Time for filing claims.--Paragraph (4) of section
6427(i) is amended by striking ``subsection (l)(5)'' and
inserting ``paragraph (4)(B) or (5) of subsection (l)''.
(3) Conforming amendment.--Subparagraph (B) of section
6427(l)(2) is amended to read as follows:
``(B) in the case of aviation-grade kerosene--
``(i) any use which is exempt from the tax
imposed by section 4041(c) other than by reason
of a prior imposition of tax, or
``(ii) any use in commercial aviation
(within the meaning of section 4083(b)).''.
(d) Repeal of Prior Taxation of Aviation Fuel.--
(1) In general.--Part III of subchapter A of chapter 32 is
amended by striking subpart B and by redesignating subpart C as
subpart B.
(2) Conforming amendments.--
(A) Section 4041(c) is amended to read as follows:
``(c) Aviation-Grade Kerosene.--
``(1) In general.--There is hereby imposed a tax upon
aviation-grade kerosene--
``(A) sold by any person to an owner, lessee, or
other operator of an aircraft for use in such aircraft,
or
``(B) used by any person in an aircraft unless
there was a taxable sale of such fuel under
subparagraph (A).
``(2) Exemption for previously taxed fuel.--No tax shall be
imposed by this subsection on the sale or use of any aviation-
grade kerosene if tax was imposed on such liquid under section
4081 and the tax thereon was not credited or refunded.
``(3) Rate of tax.--The rate of tax imposed by this
subsection shall be the rate of tax specified in section
4081(a)(2)(A)(iv) which is in effect at the time of such sale
or use.''.
(B) Section 4041(d)(2) is amended by striking
``section 4091'' and inserting ``section 4081''.
(C) Section 4041 is amended by striking subsection
(e).
(D) Section 4041 is amended by striking subsection
(i).
(E) Section 4041(m)(1) is amended to read as
follows:
``(1) In general.--In the case of the sale or use of any
partially exempt methanol or ethanol fuel, the rate of the tax
imposed by subsection (a)(2) shall be--
``(A) after September 30, 1997, and before
September 30, 2009--
``(i) in the case of fuel none of the
alcohol in which consists of ethanol, 9.15
cents per gallon, and
``(ii) in any other case, 11.3 cents per
gallon, and
``(B) after September 30, 2009--
``(i) in the case of fuel none of the
alcohol in which consists of ethanol, 2.15
cents per gallon, and
``(ii) in any other case, 4.3 cents per
gallon.''.
(F) Sections 4101(a), 4103, 4221(a), and 6206 are
each amended by striking ``, 4081, or 4091'' and
inserting ``or 4081''.
(G) Section 6416(b)(2) is amended by striking
``4091 or''.
(H) Section 6416(b)(3) is amended by striking ``or
4091'' each place it appears.
(I) Section 6416(d) is amended by striking ``or to
the tax imposed by section 4091 in the case of refunds
described in section 4091(d)''.
(J) Section 6427 is amended by striking subsection
(f).
(K) Section 6427(j)(1) is amended by striking ``,
4081, and 4091'' and inserting ``and 4081''.
(L)(i) Section 6427(l)(1) is amended to read as
follows:
``(1) In general.--Except as otherwise provided in this
subsection and in subsection (k), if any diesel fuel or
kerosene on which tax has been imposed by section 4041 or 4081
is used by any person in a nontaxable use, the Secretary shall
pay (without interest) to the ultimate purchaser of such fuel
an amount equal to the aggregate amount of tax imposed on such
fuel under section 4041 or 4081, as the case may be, reduced by
any refund paid to the ultimate vendor under paragraph
(4)(B).''.
(ii) Paragraph (5)(B) of section 6427(l) is amended
by striking ``Paragraph (1)(A) shall not apply to
kerosene'' and inserting ``Paragraph (1) shall not
apply to kerosene (other than aviation-grade
kerosene)''.
(M) Subparagraph (B) of section 6724(d)(1) is
amended by striking clause (xv) and by redesignating
the succeeding clauses accordingly.
(N) Paragraph (2) of section 6724(d) is amended by
striking subparagraph (W) and by redesignating the
succeeding subparagraphs accordingly.
(O) Paragraph (1) of section 9502(b) is amended by
adding ``and'' at the end of subparagraph (B) and by
striking subparagraphs (C) and (D) and inserting the
following new subparagraph:
``(C) section 4081 with respect to aviation
gasoline and aviation-grade kerosene, and''.
(P) The last sentence of section 9502(b) is amended
to read as follows:
``There shall not be taken into account under paragraph (1) so much of
the taxes imposed by section 4081 as are determined at the rate
specified in section 4081(a)(2)(B).''.
(Q) Subsection (b) of section 9508 is amended by
striking paragraph (3) and by redesignating paragraphs
(4) and (5) as paragraphs (3) and (4), respectively.
(R) Section 9508(c)(2)(A) is amended by striking
``sections 4081 and 4091'' and inserting ``section
4081''.
(S) The table of subparts for part III of
subchapter A of chapter 32 is amended to read as
follows:
``Subpart A. Motor and aviation fuels.
``Subpart B. Special provisions applicable to fuels tax.''.
(T) The heading for subpart A of part III of
subchapter A of chapter 32 is amended to read as
follows:
``Subpart A--Motor and Aviation Fuels''.
(U) The heading for subpart B of part III of
subchapter A of chapter 32 is amended to read as
follows:
``Subpart B--Special Provisions Applicable to Fuels Tax''.
(e) Effective Date.--The amendments made by this section shall
apply to aviation-grade kerosene removed, entered, or sold after
September 30, 2004.
(f) Floor Stocks Tax.--
(1) In general.--There is hereby imposed on aviation-grade
kerosene held on October 1, 2004, by any person a tax equal
to--
(A) the tax which would have been imposed before
such date on such kerosene had the amendments made by
this section been in effect at all times before such
date, reduced by
(B) the tax imposed before such date under section
4091 of the Internal Revenue Code of 1986, as in effect
on the day before the date of the enactment of this
Act.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--The person holding the
kerosene on October 1, 2004, to which the tax imposed
by paragraph (1) applies shall be liable for such tax.
(B) Method and time for payment.--The tax imposed
by paragraph (1) shall be paid at such time and in such
manner as the Secretary of the Treasury shall
prescribe, including the nonapplication of such tax on
de minimis amounts of kerosene.
(3) Transfer of floor stock tax revenues to trust funds.--
For purposes of determining the amount transferred to any trust
fund, the tax imposed by this subsection shall be treated as
imposed by section 4081 of the Internal Revenue Code of 1986--
(A) at the Leaking Underground Storage Tank Trust
Fund financing rate under such section to the extent of
0.1 cents per gallon, and
(B) at the rate under section 4081(a)(2)(A)(iv) to
the extent of the remainder.
(4) Held by a person.--For purposes of this section,
kerosene shall be considered as held by a person if title
thereto has passed to such person (whether or not delivery to
the person has been made).
(5) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the tax imposed
by section 4081 of such Code shall, insofar as applicable and
not inconsistent with the provisions of this subsection, apply
with respect to the floor stock tax imposed by paragraph (1) to
the same extent as if such tax were imposed by such section.
SEC. 5212. TRANSFER OF CERTAIN AMOUNTS FROM THE AIRPORT AND AIRWAY
TRUST FUND TO THE HIGHWAY TRUST FUND TO REFLECT HIGHWAY
USE OF JET FUEL.
(a) In General.--Section 9502(d) is amended by adding at the end
the following new paragraph:
``(7) Transfers from the trust fund to the highway trust
fund.--
``(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.
PART II--DYED FUEL
SEC. 5221. DYE INJECTION EQUIPMENT.
(a) In General.--Section 4082(a)(2) (relating to exemptions for
diesel fuel and kerosene) is amended by inserting ``by mechanical
injection'' after ``indelibly dyed''.
(b) Dye Injector Security.--Not later than June 30, 2004, the
Secretary of the Treasury shall issue regulations regarding mechanical
dye injection systems described in the amendment made by subsection
(a), and such regulations shall include standards for making such
systems tamper resistant.
(c) Penalty for Tampering With or Failing To Maintain Security
Requirements for Mechanical Dye Injection Systems.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties) is amended by adding after
section 6715 the following new section:
``SEC. 6715A. TAMPERING WITH OR FAILING TO MAINTAIN SECURITY
REQUIREMENTS FOR MECHANICAL DYE INJECTION SYSTEMS.
``(a) Imposition of Penalty--
``(1) Tampering.--If any person tampers with a mechanical
dye injection system used to indelibly dye fuel for purposes of
section 4082, then such person shall pay a penalty in addition
to the tax (if any).
``(2) Failure to maintain security requirements.--If any
operator of a mechanical dye injection system used to indelibly
dye fuel for purposes of section 4082 fails to maintain the
security standards for such system as established by the
Secretary, then such operator shall pay a penalty.
``(b) Amount of Penalty.--The amount of the penalty under
subsection (a) shall be--
``(1) for each violation described in paragraph (1), the
greater of--
``(A) $25,000, or
``(B) $10 for each gallon of fuel involved, and
``(2) for each--
``(A) failure to maintain security standards
described in paragraph (2), $1,000, and
``(B) failure to correct a violation described in
paragraph (2), $1,000 per day for each day after which
such violation was discovered or such person should
have reasonably known of such violation.
``(c) Joint and Several Liability.--
``(1) In general.--If a penalty is imposed under this
section on any business entity, each officer, employee, or
agent of such entity or other contracting party who willfully
participated in any act giving rise to such penalty shall be
jointly and severally liable with such entity for such penalty.
``(2) Affiliated groups.--If a business entity described in
paragraph (1) is part of an affiliated group (as defined in
section 1504(a)), the parent corporation of such entity shall
be jointly and severally liable with such entity for the
penalty imposed under this section.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by adding after the
item related to section 6715 the following new item:
``Sec. 6715A. Tampering with or failing to maintain security
requirements for mechanical dye injection
systems.''.
(d) Effective Date.--The amendments made by subsections (a) and (c)
shall take effect 180 days after the date on which the Secretary issues
the regulations described in subsection (b).
SEC. 5222. ELIMINATION OF ADMINISTRATIVE REVIEW FOR TAXABLE USE OF DYED
FUEL.
(a) In General.--Section 6715 is amended by inserting at the end
the following new subsection:
``(e) No Administrative Appeal for Third and Subsequent
Violations.--In the case of any person who is found to be subject to
the penalty under this section after a chemical analysis of such fuel
and who has been penalized under this section at least twice after the
date of the enactment of this subsection, no administrative appeal or
review shall be allowed with respect to such finding except in the case
of a claim regarding--
``(1) fraud or mistake in the chemical analysis, or
``(2) mathematical calculation of the amount of the
penalty.''.
(b) Effective Date.--The amendment made by this section shall apply
to penalties assessed after the date of the enactment of this Act.
SEC. 5223. PENALTY ON UNTAXED CHEMICALLY ALTERED DYED FUEL MIXTURES.
(a) In General.--Section 6715(a) (relating to dyed fuel sold for
use or used in taxable use, etc.) is amended by striking ``or'' in
paragraph (2), by inserting ``or'' at the end of paragraph (3), and by
inserting after paragraph (3) the following new paragraph:
``(4) any person who has knowledge that a dyed fuel which
has been altered as described in paragraph (3) sells or holds
for sale such fuel for any use which the person knows or has
reason to know is not a nontaxable use of such fuel,''.
(b) Conforming Amendment.--Section 6715(a)(3) is amended by
striking ``alters, or attempts to alter,'' and inserting ``alters,
chemically or otherwise, or attempts to so alter,''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 5224. TERMINATION OF DYED DIESEL USE BY INTERCITY BUSES.
(a) In General.--Paragraph (3) of section 4082(b) (relating to
nontaxable use) is amended to read as follows:
``(3) any use described in section
4041(a)(1)(C)(iii)(II).''.
(b) Ultimate Vendor Refund.--Subsection (b) of section 6427 is
amended by adding at the end the following new paragraph:
``(4) Refunds for use of diesel fuel in certain intercity
buses.--
``(A) In general.--With respect to any fuel to
which paragraph (2)(A) applies, if the ultimate
purchaser of such fuel waives (at such time and in such
form and manner as the Secretary shall prescribe) the
right to payment under paragraph (1) and assigns such
right to the ultimate vendor, then the Secretary shall
pay the amount which would be paid under paragraph (1)
to such ultimate vendor, but only if such ultimate
vendor--
``(i) is registered under section 4101, and
``(ii) meets the requirements of
subparagraph (A), (B), or (D) of section
6416(a)(1).
``(B) Credit cards.--For purposes of this
paragraph, if the sale of such fuel is made by means of
a credit card, the person extending credit to the
ultimate purchaser shall be deemed to be the ultimate
vendor.''.
(c) Payment of Refunds.--Subparagraph (A) of section 6427(i)(4), as
amended by section 5211 of this Act, is amended by inserting
``subsections (b)(4) and'' after ``filed under''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel sold after September 30, 2004.
PART III--MODIFICATION OF INSPECTION OF RECORDS PROVISIONS
SEC. 5231. AUTHORITY TO INSPECT ON-SITE RECORDS.
(a) In General.--Section 4083(d)(1)(A) (relating to administrative
authority), as amended by section 5211 of this Act, is amended by
striking ``and'' at the end of clause (i) and by inserting after clause
(ii) the following new clause:
``(iii) inspecting any books and records
and any shipping papers pertaining to such
fuel, and''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 5232. ASSESSABLE PENALTY FOR REFUSAL OF ENTRY.
(a) In General.--Part I of subchapter B of chapter 68 (relating to
assessable penalties), as amended by section 5221 of this Act, is
amended by adding at the end the following new section:
``SEC. 6717. REFUSAL OF ENTRY.
``(a) In General.--In addition to any other penalty provided by
law, any person who refuses to admit entry or refuses to permit any
other action by the Secretary authorized by section 4083(d)(1) shall
pay a penalty of $1,000 for such refusal.
``(b) Joint and Several Liability.--
``(1) In general.--If a penalty is imposed under this
section on any business entity, each officer, employee, or
agent of such entity or other contracting party who willfully
participated in any act giving rise to such penalty shall be
jointly and severally liable with such entity for such penalty.
``(2) Affiliated groups.--If a business entity described in
paragraph (1) is part of an affiliated group (as defined in
section 1504(a)), the parent corporation of such entity shall
be jointly and severally liable with such entity for the
penalty imposed under this section.
``(c) Reasonable Cause Exception.--No penalty shall be imposed
under this section with respect to any failure if it is shown that such
failure is due to reasonable cause.''.
(b) Conforming Amendments.--
(1) Section 4083(d)(3), as amended by section 5211 of this
Act, is amended--
(A) by striking ``entry.--The penalty'' and
inserting: ``entry.--
``(A) Forfeiture.--The penalty'', and
(B) by adding at the end the following new
subparagraph:
``(B) Assessable penalty.--For additional
assessable penalty for the refusal to admit entry or
other refusal to permit an action by the Secretary
authorized by paragraph (1), see section 6717.''.
(2) The table of sections for part I of subchapter B of
chapter 68, as amended by section 5221 of this Act, is amended
by adding at the end the following new item:
``Sec. 6717. Refusal of entry.''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2004.
PART IV--REGISTRATION AND REPORTING REQUIREMENTS
SEC. 5241. REGISTRATION OF PIPELINE OR VESSEL OPERATORS REQUIRED FOR
EXEMPTION OF BULK TRANSFERS TO REGISTERED TERMINALS OR
REFINERIES.
(a) In General.--Section 4081(a)(1)(B) (relating to exemption for
bulk transfers to registered terminals or refineries) is amended--
(1) by inserting ``by pipeline or vessel'' after
``transferred in bulk'', and
(2) by inserting ``, the operator of such pipeline or
vessel,'' after ``the taxable fuel''.
(b) Civil Penalty for Carrying Taxable Fuels by Nonregistered
Pipelines or Vessels.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties), as amended by section 5232
of this Act, is amended by adding at the end the following new
section:
``SEC. 6718. CARRYING TAXABLE FUELS BY NONREGISTERED PIPELINES OR
VESSELS.
``(a) Imposition of Penalty.--If any person knowingly transfers any
taxable fuel (as defined in section 4083(a)(1)) in bulk pursuant to
section 4081(a)(1)(B) to an unregistered, such person shall pay a
penalty in addition to the tax (if any).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraph (2), the
amount of the penalty under subsection (a) on each act shall be
an amount equal to the greater of--
``(A) $10,000, or
``(B) $1 per gallon.
``(2) Multiple violations.--In determining the penalty
under subsection (a) on any person, paragraph (1) shall be
applied by increasing the amount in paragraph (1) by the
product of such amount and the number of prior penalties (if
any) imposed by this section on such person (or a related
person or any predecessor of such person or related person).
``(c) Joint and Several Liability.--
``(1) In general.--If a penalty is imposed under this
section on any business entity, each officer, employee, or
agent of such entity or other contracting party who willfully
participated in any act giving rise to such penalty shall be
jointly and severally liable with such entity for such penalty.
``(2) Affiliated groups.--If a business entity described in
paragraph (1) is part of an affiliated group (as defined in
section 1504(a)), the parent corporation of such entity shall
be jointly and severally liable with such entity for the
penalty imposed under this section.
``(d) Reasonable Cause Exception.--No penalty shall be imposed
under this section with respect to any failure if it is shown that such
failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68, as amended by section 5232 of
this Act, is amended by adding at the end the following new
item:
``Sec. 6718. Carrying taxable fuels by nonregistered pipelines or
vessels.''.
(c) Publication of Registered Persons.--Not later than June 30,
2004, the Secretary of the Treasury shall publish a list of persons
required to be registered under section 4101 of the Internal Revenue
Code of 1986.
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on October 1, 2004.
SEC. 5242. DISPLAY OF REGISTRATION.
(a) In General.--Subsection (a) of section 4101 (relating to
registration) is amended--
(1) by striking ``Every'' and inserting the following:
``(1) In general.--Every'', and
(2) by adding at the end the following new paragraph:
``(2) Display of registration.--Every operator of a vessel
required by the Secretary to register under this section shall
display proof of registration through an electronic
identification device prescribed by the Secretary on each
vessel used by such operator to transport any taxable fuel.''.
(b) Civil Penalty for Failure to Display Registration.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties), as amended by section 5241
of this Act, is amended by adding at the end the following new
section:
``SEC. 6719. FAILURE TO DISPLAY REGISTRATION OF VESSEL.
``(a) Failure to Display Registration.--Every operator of a vessel
who fails to display proof of registration pursuant to section
4101(a)(2) shall pay a penalty of $500 for each such failure. With
respect to any vessel, only one penalty shall be imposed by this
section during any calendar month.
``(b) Multiple Violations.--In determining the penalty under
subsection (a) on any person, subsection (a) shall be applied by
increasing the amount in subsection (a) by the product of such amount
and the number of prior penalties (if any) imposed by this section on
such person (or a related person or any predecessor of such person or
related person).
``(c) Reasonable Cause Exception.--No penalty shall be imposed
under this section with respect to any failure if it is shown that such
failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68, as amended by section 5241 of
this Act, is amended by adding at the end the following new
item:
``Sec. 6719. Failure to display registration of vessel.''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2004.
SEC. 5243. REGISTRATION OF PERSONS WITHIN FOREIGN TRADE ZONES, ETC.
(a) In General.--Section 4101(a), as amended by section 5242 of
this Act, is amended by redesignating paragraph (2) as paragraph (3),
and by inserting after paragraph (1) the following new paragraph:
``(2) Registration of persons within foreign trade zones,
etc..--The Secretary shall require registration by any person
which--
``(A) operates a terminal or refinery within a
foreign trade zone or within a customs bonded storage
facility, or
``(B) holds an inventory position with respect to a
taxable fuel in such a terminal.''.
(b) Effective Date.--The amendments made by this section shall take
effect on October 1, 2004.
SEC. 5244. PENALTIES FOR FAILURE TO REGISTER AND FAILURE TO REPORT.
(a) Increased Penalty.--Subsection (a) of section 7272 (relating to
penalty for failure to register) is amended by inserting ``($10,000 in
the case of a failure to register under section 4101)'' after ``$50''.
(b) Increased Criminal Penalty.--Section 7232 (relating to failure
to register under section 4101, false representations of registration
status, etc.) is amended by striking ``$5,000'' and inserting
``$10,000''.
(c) Assessable Penalty for Failure to Register.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties), as amended by section 5242
of this Act, is amended by adding at the end the following new
section:
``SEC. 6720. FAILURE TO REGISTER.
``(a) Failure to Register.--Every person who is required to
register under section 4101 and fails to do so shall pay a penalty in
addition to the tax (if any).
``(b) Amount of Penalty.--The amount of the penalty under
subsection (a) shall be--
``(1) $10,000 for each initial failure to register, and
``(2) $1,000 for each day thereafter such person fails to
register.
``(c) Reasonable Cause Exception.--No penalty shall be imposed
under this section with respect to any failure if it is shown that such
failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part I
of subchapter B of chapter 68, as amended by section 5242 of
this Act, is amended by adding at the end the following new
item:
``Sec. 6720. Failure to register.''.
(d) Assessable Penalty for Failure to Report.--
(1) In general.--Part II of subchapter B of chapter 68
(relating to assessable penalties) is amended by adding at the
end the following new section:
``SEC. 6725. FAILURE TO REPORT INFORMATION UNDER SECTION 4101.
``(a) In General.--In the case of each failure described in
subsection (b) by any person with respect to a vessel or facility, such
person shall pay a penalty of $10,000 in addition to the tax (if any).
``(b) Failures Subject to Penalty.--For purposes of subsection (a),
the failures described in this subsection are--
``(1) any failure to make a report under section 4101(d) on
or before the date prescribed therefor, and
``(2) any failure to include all of the information
required to be shown on such report or the inclusion of
incorrect information.
``(c) Reasonable Cause Exception.--No penalty shall be imposed
under this section with respect to any failure if it is shown that such
failure is due to reasonable cause.''.
(2) Clerical amendment.--The table of sections for part II
of subchapter B of chapter 68 is amended by adding at the end
the following new item:
``Sec. 6725. Failure to report information under section 4101.''.
(e) Effective Date.--The amendments made by this section shall
apply to failures pending or occurring after September 30, 2004.
SEC. 5245. INFORMATION REPORTING FOR PERSONS CLAIMING CERTAIN TAX
BENEFITS.
(a) In General.--Subpart C of part III of subchapter A of chapter
32 is amended by adding at the end the following new section:
``SEC. 4104. INFORMATION REPORTING FOR PERSONS CLAIMING CERTAIN TAX
BENEFITS.
``(a) In General.--The Secretary shall require any person claiming
tax benefits--
``(1) under the provisions of section 34, 40, and 40A to
file a return at the time such person claims such benefits (in
such manner as the Secretary may prescribe), and
``(2) under the provisions of section 4041(b)(2), 6426, or
6427(e) to file a monthly return (in such manner as the
Secretary may prescribe).
``(b) Contents of Return.--Any return filed under this section
shall provide such information relating to such benefits and the
coordination of such benefits as the Secretary may require to ensure
the proper administration and use of such benefits.
``(c) Enforcement.--With respect to any person described in
subsection (a) and subject to registration requirements under this
title, rules similar to rules of section 4222(c) shall apply with
respect to any requirement under this section.''.
(b) Conforming Amendment.--The table of sections for subpart C of
part III of subchapter A of chapter 32 is amended by adding at the end
the following new item:
``Sec. 4104. Information reporting for persons claiming certain tax
benefits.''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2004.
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.
PART V--IMPORTS
SEC. 5251. TAX AT POINT OF ENTRY WHERE IMPORTER NOT REGISTERED.
(a) Tax at Point of Entry Where Importer Not Registered.--
(1) In general.--Subpart C of part III of subchapter A of
chapter 31, as amended by section 5245 of this Act, is amended
by adding at the end the following new section:
``SEC. 4105. TAX AT ENTRY WHERE IMPORTER NOT REGISTERED.
``(a) In General.--Any tax imposed under this part on any person
not registered under section 4101 for the entry of a fuel into the
United States shall be imposed at the time and point of entry.
``(b) Enforcement of Assessment.--If any person liable for any tax
described under subsection (a) has not paid the tax or posted a bond,
the Secretary may--
``(1) seize the fuel on which the tax is due, or
``(2) detain any vehicle transporting such fuel,
until such tax is paid or such bond is filed.
``(c) Levy of Fuel.--If no tax has been paid or no bond has been
filed within 5 days from the date the Secretary seized fuel pursuant to
subsection (b), the Secretary may sell such fuel as provided under
section 6336.''.
(2) Conforming amendment.--The table of sections for
subpart C of part III of subchapter A of chapter 31 of the
Internal Revenue Code of 1986, as amended by section 5245 of
this Act, is amended by adding after the last item the
following new item:
``Sec. 4105. Tax at entry where importer not registered.''.
(b) Denial of Entry Where Tax Not Paid.--The Secretary of Homeland
Security is authorized to deny entry into the United States of any
shipment of a fuel which is taxable under section 4081 of the Internal
Revenue Code of 1986 if the person entering such shipment fails to pay
the tax imposed under such section or post a bond in accordance with
the provisions of section 4105 of such Code.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 5252. RECONCILIATION OF ON-LOADED CARGO TO ENTERED CARGO.
(a) In General.--Subsection (a) of section 343 of the Trade Act of
2002 is amended by inserting at the end the following new paragraph:
``(4) In General.--Subject to paragraphs (2) and (3), not
later than 1 year after the enactment of this paragraph, the
Secretary of Homeland Security, together with the Secretary of
the Treasury, shall promulgate regulations providing for the
transmission to the Internal Revenue Service, through an
electronic data interchange system, of information pertaining
to cargo of taxable fuels (as defined in section 4083 of the
Internal Revenue Code of 1986) destined for importation into
the United States prior to such importation.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
PART VI--MISCELLANEOUS PROVISIONS
SEC. 5261. TAX ON SALE OF DIESEL FUEL WHETHER SUITABLE FOR USE OR NOT
IN A DIESEL-POWERED VEHICLE OR TRAIN.
(a) In General.--Section 4083(a)(3) is amended--
(1) by striking ``The term'' and inserting the following:
``(A) In general.--The term'', and
(2) by inserting at the end the following new subparagraph:
``(B) Liquid sold as diesel fuel.--The term `diesel
fuel' includes any liquid which is sold as or offered
for sale as a fuel in a diesel-powered highway vehicle
or a diesel-powered train.''.
(b) Conforming Amendments.--
(1) Section 40A(b)(1)(B), as amended by section 5103 of
this Act, is amended by striking ``4083(a)(3)'' and inserting
``4083(a)(3)(A)''.
(2) Section 6426(c)(3), as added by section 5102 of this
Act, is amended by striking ``4083(a)(3)'' and inserting
``4083(a)(3)(A)''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 5262. MODIFICATION OF ULTIMATE VENDOR REFUND CLAIMS WITH RESPECT
TO FARMING.
(a) In General.--
(1) Refunds.--Section 6427(l) is amended by adding at the
end the following new paragraph:
``(6) Registered vendors permitted to administer certain
claims for refund of diesel fuel and kerosene sold to
farmers.--
``(A) In general.--In the case of diesel fuel or
kerosene used on a farm for farming purposes (within
the meaning of section 6420(c)), paragraph (1) shall
not apply to the aggregate amount of such diesel fuel
or kerosene if such amount does not exceed 500 gallons
(as determined under subsection (i)(5)(A)(iii)).
``(B) Payment to ultimate vendor.--The amount which
would (but for subparagraph (A)) have been paid under
paragraph (1) with respect to any fuel shall be paid to
the ultimate vendor of such fuel, if such vendor--
``(i) is registered under section 4101, and
``(ii) meets the requirements of
subparagraph (A), (B), or (D) of section
6416(a)(1).''.
(2) Filing of claims.--Section 6427(i) is amended by
inserting at the end the following new paragraph:
``(5) Special rule for vendor refunds with respect to
farmers.--
``(A) In general.--A claim may be filed under
subsection (l)(6) by any person with respect to fuel
sold by such person for any period--
``(i) for which $200 or more ($100 or more
in the case of kerosene) is payable under
subsection (l)(6),
``(ii) which is not less than 1 week, and
``(iii) which is for not more than 500
gallons for each farmer for which there is a
claim.
Notwithstanding subsection (l)(1), paragraph (3)(B)
shall apply to claims filed under the preceding
sentence.
``(B) Time for filing claim.--No claim filed under
this paragraph shall be allowed unless filed on or
before the last day of the first quarter following the
earliest quarter included in the claim.''.
(3) Conforming amendments.--
(A) Section 6427(l)(5)(A) is amended to read as
follows:
``(A) In general.--Paragraph (1) shall not apply to
diesel fuel or kerosene used by a State or local
government.''.
(B) The heading for section 6427(l)(5) is amended
by striking ``farmers and''.
(b) Effective Date.--The amendment made by this section shall apply
to fuels sold for nontaxable use after the date of the enactment of
this Act.
SEC. 5263. TAXABLE FUEL REFUNDS FOR CERTAIN ULTIMATE VENDORS.
(a) In General.--Paragraph (4) of section 6416(a) (relating to
abatements, credits, and refunds) is amended to read as follows:
``(4) Registered ultimate vendor to administer credits and
refunds of gasoline tax.--
``(A) In general.--For purposes of this subsection,
if an ultimate vendor purchases any gasoline on which
tax imposed by section 4081 has been paid and sells
such gasoline to an ultimate purchaser described in
subparagraph (C) or (D) of subsection (b)(2) (and such
gasoline is for a use described in such subparagraph),
such ultimate vendor shall be treated as the person
(and the only person) who paid such tax, but only if
such ultimate vendor is registered under section 4101.
For purposes of this subparagraph, if the sale of
gasoline is made by means of a credit card, the person
extending the credit to the ultimate purchaser shall be
deemed to be the ultimate vendor.
``(B) Timing of claims.--The procedure and timing
of any claim under subparagraph (A) shall be the same
as for claims under section 6427(i)(4), except that the
rules of section 6427(i)(3)(B) regarding electronic
claims shall not apply unless the ultimate vendor has
certified to the Secretary for the most recent quarter
of the taxable year that all ultimate purchasers of the
vendor are certified and entitled to a refund under
subparagraph (C) or (D) of subsection (b)(2).''.
(b) Credit Card Purchases of Diesel Fuel or Kerosene by State and
Local Governments.--Section 6427(l)(5)(C) (relating to nontaxable uses
of diesel fuel, kerosene, and aviation fuel), as amended by section
5252 of this Act, is amended by adding at the end the following new
sentence: ``For purposes of this subparagraph, if the sale of diesel
fuel or kerosene is made by means of a credit card, the person
extending the credit to the ultimate purchaser shall be deemed to be
the ultimate vendor.''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2004.
SEC. 5264. TWO-PARTY EXCHANGES.
(a) In General.--Subpart C of part III of subchapter A of chapter
32, as amended by section 5251 of this Act, is amended by adding at the
end the following new section:
``SEC. 4106. TWO-PARTY EXCHANGES.
``(a) In General.--In a two-party exchange, the delivering person
shall not be liable for the tax imposed under of section
4081(a)(1)(A)(ii).
``(b) Two-Party Exchange.--The term `two-party exchange' means a
transaction, other than a sale, in which taxable fuel is transferred
from a delivering person registered under section 4101 as a taxable
fuel registrant to a receiving person who is so registered where all of
the following occur:
``(1) The transaction includes a transfer from the
delivering person, who holds the inventory position for taxable
fuel in the terminal as reflected in the records of the
terminal operator.
``(2) The exchange transaction occurs before or
contemporaneous with completion of removal across the rack from
the terminal by the receiving person.
``(3) The terminal operator in its books and records treats
the receiving person as the person that removes the product
across the terminal rack for purposes of reporting the
transaction to the Secretary.
``(4) The transaction is the subject of a written
contract.''.
(b) Conforming Amendment.--The table of sections for subpart C of
part III of subchapter A of chapter 32, as amended by section 5251 of
this Act, is amended by adding after the last item the following new
item:
``Sec. 4106. Two-party exchanges.''.
(c) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 5265. MODIFICATIONS OF TAX ON USE OF CERTAIN VEHICLES.
(a) No Proration of Tax Unless Vehicle Is Destroyed or Stolen.--
(1) In general.--Section 4481(c) (relating to proration of
tax) is amended to read as follows:
``(c) Proration of Tax Where Vehicle Sold, Destroyed, or Stolen.--
``(1) In general.--If in any taxable period a highway motor
vehicle is sold, destroyed, or stolen before the first day of
the last month in such period and not subsequently used during
such taxable period, the tax shall be reckoned proportionately
from the first day of the month in such period in which the
first use of such highway motor vehicle occurs to and including
the last day of the month in which such highway motor vehicle
was sold, destroyed, or stolen.
``(2) Destroyed.--For purposes of paragraph (1), a highway
motor vehicle is destroyed if such vehicle is damaged by reason
of an accident or other casualty to such an extent that it is
not economic to rebuild.''.
(2) Conforming amendments.--
(A) Section 6156 (relating to installment payment
of tax on use of highway motor vehicles) is repealed.
(B) The table of sections for subchapter A of
chapter 62 is amended by striking the item relating to
section 6156.
(b) Display of Tax Certificate.--Paragraph (2) of section 4481(d)
(relating to one tax liability for period) is amended to read as
follows:
``(2) Display of tax certificate.--Every taxpayer which
pays the tax imposed under this section with respect to a
highway motor vehicle shall, not later than 1 month after the
due date of the return of tax with respect to each taxable
period, receive and display on such vehicle an electronic
identification device prescribed by the Secretary.''.
(c) Electronic filing.--Section 4481, as amended by section 5001 of
this Act, is amended by redesignating subsection (e) as subsection (f)
and by inserting after subsection (d) the following new subsection:
``(e) Electronic filing.--Any taxpayer who files a return under
this section with respect to 25 or more vehicles for any taxable period
shall file such return electronically.''.
(d) Repeal of reduction in tax for certain trucks.--Section 4483 of
the Internal Revenue Code of 1986 is amended by striking subsection
(f).
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable periods
beginning after the date of the enactment of this Act.
(2) Subsection (b).--The amendment made by subsection (b)
shall take effect on October 1, 2005.
SEC. 5266. DEDICATION OF REVENUES FROM CERTAIN PENALTIES TO THE HIGHWAY
TRUST FUND.
(a) In General.--Subsection (b) of section 9503 (relating to
transfer to Highway Trust Fund of amounts equivalent to certain taxes),
as amended by section 5001 of this Act, is amended by redesignating
paragraph (5) as paragraph (6) and inserting after paragraph (4) the
following new paragraph:
``(5) Certain penalties.--There are hereby appropriated to
the Highway Trust Fund amounts equivalent to the penalties
assessed under sections 6715, 6715A, 6717, 6718, 6719, 6720,
6725, 7232, and 7272 (but only with regard to penalties under
such section related to failure to register under section
4101).''.
(b) Conforming Amendments.--
(1) The heading of subsection (b) of section 9503 is
amended by inserting ``and Penalties'' after ``Taxes''.
(2) The heading of paragraph (1) of section 9503(b) is
amended by striking ``In general'' and inserting ``Certain
taxes''.
(c) Effective Date.--The amendments made by this section shall
apply to penalties assessed after October 1, 2004.
SEC. 5267. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF FUEL TO
MOTOR VEHICLES REMOVED FROM UNITED STATES.
(a) In General.--Section 4221(d)(2) (defining export) is amended by
adding at the end the following new sentence: ``Such term does not
include the delivery of a taxable fuel (as defined in section
4083(a)(1)) into a fuel tank of a motor vehicle which is shipped or
driven out of the United States.''.
(b) Conforming Amendments.--
(1) Section 4041(g) (relating to other exemptions) is
amended by adding at the end the following new sentence:
``Paragraph (3) shall not apply to the sale for delivery of a
liquid into a fuel tank of a motor vehicle which is shipped or
driven out of the United States.''.
(2) Clause (iv) of section 4081(a)(1)(A) (relating to tax
on removal, entry, or sale) is amended by inserting ``or at a
duty-free sales enterprise (as defined in section 555(b)(8) of
the Tariff Act of 1930)'' after ``section 4101''.
(c) Effective Date.--The amendments made by this section shall
apply to sales or deliveries made after the date of the enactment of
this Act.
PART VII--TOTAL ACCOUNTABILITY
SEC. 5271. TOTAL ACCOUNTABILITY.
(a) Taxation of Reportable Liquids.--
(1) In general.--Section 4081(a), as amended by this Act,
is amended--
(A) by inserting ``or reportable liquid'' after
``taxable fuel'' each place it appears, and
(B) by inserting ``such liquid'' after ``such
fuel'' in paragraph (1)(A)(iv).
(2) Rate of tax.--Subparagraph (A) of section 4081(a)(2),
as amended by section 5211 of this Act, is amended by striking
``and'' at the end of clause (iii), by striking the period at
the end of clause (iv) and inserting ``, and'', and by adding
at the end the following new clause:
``(v) in the case of reportable liquids,
the rate determined under section
4083(c)(2).''.
(3) Exemption.--Section 4081(a)(1) is amended by adding at
the end the following new subparagraph:
``(C) Exemption for registered transfers of
reportable liquids.--The tax imposed by this paragraph
shall not apply to any removal, entry, or sale of a
reportable liquid if--
``(i) such removal, entry, or sale is to a
registered person who certifies that such
liquid will not be used as a fuel or in the
production of a fuel, or
``(ii) the sale is to the ultimate
purchaser of such liquid.''.
(4) Reportable liquids.--Section 4083, as amended by this
Act, is amended by redesignating subsections (c) and (d) (as
redesignated by section 5211 of this Act) as subsections (d)
and (e), respectively, and by inserting after subsection (b)
the following new section:
``(c) Reportable liquid.--For purposes of this subpart--
``(1) In general.--The term `reportable liquid' means any
petroleum-based liquid other than a taxable fuel.
``(2) Taxation.--
``(A) Gasoline blend stocks and additives.--
Gasoline blend stocks and additives which are
reportable liquids (as defined in paragraph (1)) shall
be subject to the rate of tax under clause (i) of
section 4081(a)(2)(A).
``(B) Other reportable liquids.--Any reportable
liquid (as defined in paragraph (1)) not described in
subparagraph (A) shall be subject to the rate of tax
under clause (iii) of section 4081(a)(2)(A).''.
(5) Conforming amendments.--
(A) Section 4081(e) is amended by inserting ``or
reportable liquid'' after ``taxable fuel''.
(B) Section 4083(d) (relating to certain use
defined as removal), as redesignated by paragraph (4),
is amended by inserting ``or reportable liquid'' after
``taxable fuel''.
(C) Section 4083(e)(1) (relating to administrative
authority), as redesignated by paragraph (4), is
amended--
(i) in subparagraph (A)--
(I) by inserting ``or reportable
liquid'' after ``taxable fuel'', and
(II) by inserting ``or such
liquid'' after ``such fuel'' each place
it appears, and
(ii) in subparagraph (B), by inserting ``or
any reportable liquid'' after ``any taxable
fuel''.
(D) Section 4101(a)(2), as added by section 5243 of
this Act, is amended by inserting ``or a reportable
liquid'' after ``taxable fuel''.
(E) Section 4101(a)(3), as added by section 5242 of
this Act and redesignated by section 5243 of this Act,
is amended by inserting ``or any reportable liquid''
before the period at the end.
(F) Section 4102 is amended by inserting ``or any
reportable liquid'' before the period at the end.
(G)(i) Section 6718, as added by section 5241 of
this Act, is amended--
(I) in subsection (a), by inserting ``or
any reportable liquid (as defined in section
4083(c)(1))'' after `` section 4083(a)(1))'',
and
(II) in the heading, by inserting ``or
reportable liquids'' after ``taxable fuel''.
(ii) The item relating to section 6718 in table of
sections for part I of subchapter B of chapter 68, as
added by section 5241 of this Act, is amended by
inserting ``or reportable liquids'' after ``taxable
fuels''.
(H) Section 6427(h) is amended to read as follows:
``(h) Gasoline Blend Stocks or Additives and Reportable Liquids.--
Except as provided in subsection (k)--
``(1) if any gasoline blend stock or additive (within the
meaning of section 4083(a)(2)) is not used by any person to
produce gasoline and such person establishes that the ultimate
use of such gasoline blend stock or additive is not to produce
gasoline, or
``(2) if any reportable liquid (within the meaning of
section 4083(c)(1)) is not used by any person to produce a
taxable fuel and such person establishes that the ultimate use
of such reportable liquid is not to produce a taxable fuel,
then the Secretary shall pay (without interest) to such person an
amount equal to the aggregate amount of the tax imposed on such person
with respect to such gasoline blend stock or additive or such
reportable fuel.''.
(I) Section 7232, as amended by this Act, is
amended by inserting ``or reportable liquid (within the
meaning of section 4083(c)(1))'' after ``section
4083)''.
(J) Section 343 of the Trade Act of 2002, as
amended by section 5252 of this Act, is amended by
inserting ``and reportable liquids (as defined in
section 4083(c)(1) of such Code)'' after ``Internal
Revenue Code of 1986)''.
(b) Dyed Diesel.--Section 4082(a) is amended by striking ``and'' at
the end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``and'', and by inserting after paragraph
(3) the following new paragraph:
``(4) which is removed, entered, or sold by a person
registered under section 4101.''.
(c) Effective Date.--The amendments made by this section shall
apply to reportable liquids (as defined in section 4083(c) of the
Internal Revenue Code) and fuel sold or used after September 30, 2004.
SEC. 5272. EXCISE TAX REPORTING.
(a) In General.--Part II of subchapter A of chapter 61 is amended
by adding at the end the following new subpart:
``Subpart E--Excise Tax Reporting
``SEC. 6025. RETURNS RELATING TO FUEL TAXES.
``(a) In General.--The Secretary shall require any person liable
for the tax imposed under Part III of subchapter A of chapter 32 to
file a return of such tax on a monthly basis.
``(b) Information Included with Return.--The Secretary shall
require any person filing a return under subsection (a) to provide
information regarding any refined product (whether or not such product
is taxable under this title) removed from a terminal during the period
for which such return applies.''.
(b) Conforming Amendment.--The table of parts for subchapter A of
chapter 61 is amended by adding at the end the following new item:
``Subpart E--Excise Tax Reporting''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after September 30, 2004.
SEC. 5273. INFORMATION REPORTING.
(a) In General.--Section 4101(d) is amended by adding at the end
the following new flush sentence:
``The Secretary shall require reporting under the previous sentence
with respect to taxable fuels removed, entered, or transferred from any
refinery, pipeline, or vessel which is registered under this
section.''.
(b) Effective Date.--The amendment made by this section shall apply
on October 1, 2004.
Subtitle D--Definition of Highway Vehicle
SEC. 5301. EXEMPTION FROM CERTAIN EXCISE TAXES FOR MOBILE MACHINERY.
(a) Exemption From Tax on Heavy Trucks and Trailers Sold at
Retail.--
(1) In general.--Section 4053 (relating to exemptions) is
amended by adding at the end the following new paragraph:
``(8) Mobile machinery.--Any vehicle which consists of a
chassis--
``(A) to which there has been permanently mounted
(by welding, bolting, riveting, or other means)
machinery or equipment to perform a construction,
manufacturing, processing, farming, mining, drilling,
timbering, or similar operation if the operation of the
machinery or equipment is unrelated to transportation
on or off the public highways,
``(B) which has been specially designed to serve
only as a mobile carriage and mount (and a power
source, where applicable) for the particular machinery
or equipment involved, whether or not such machinery or
equipment is in operation, and
``(C) which, by reason of such special design,
could not, without substantial structural modification,
be used as a component of a vehicle designed to perform
a function of transporting any load other than that
particular machinery or equipment or similar machinery
or equipment requiring such a specially designed
chassis.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the day after the date of the enactment of
this Act.
(b) Exemption From Tax on Use of Certain Vehicles.--
(1) In general.--Section 4483 (relating to exemptions) is
amended by redesignating subsection (g) as subsection (h) and
by inserting after subsection (f) the following new subsection:
``(g) Exemption for Mobile Machinery.--No tax shall be imposed by
section 4481 on the use of any vehicle described in section 4053(8).''.
(2) Effective date.--The amendments made by this subsection
shall take effect on the day after the date of the enactment of
this Act.
(d) Exemption From Fuel Taxes.--
(1) In general.--Section 6421(e)(2) (defining off-highway
business use) is amended by adding at the end the following new
subparagraph:
``(C) Uses in mobile machinery.--
``(i) In general.--The term `off-highway
business use' shall include any use in a
vehicle which meets the requirements described
in clause (ii).
``(ii) Requirements for mobile machinery.--
The requirements described in this clause are--
``(I) the design-based test, and
``(II) the use-based test.
``(iii) Design-based test.--For purposes of
clause (ii)(I), the design-based test is met if
the vehicle consists of a chassis--
``(I) to which there has been
permanently mounted (by welding,
bolting, riveting, or other means)
machinery or equipment to perform a
construction, manufacturing,
processing, farming, mining, drilling,
timbering, or similar operation if the
operation of the machinery or equipment
is unrelated to transportation on or
off the public highways,
``(II) which has been specially
designed to serve only as a mobile
carriage and mount (and a power source,
where applicable) for the particular
machinery or equipment involved,
whether or not such machinery or
equipment is in operation, and
``(III) which, by reason of such
special design, could not, without
substantial structural modification, be
used as a component of a vehicle
designed to perform a function of
transporting any load other than that
particular machinery or equipment or
similar machinery or equipment
requiring such a specially designed
chassis.
``(iv) Use-based test.--For purposes of
clause (ii)(II), the use-based test is met if
the use of the vehicle on public highways was
less than 5,000 miles during the taxpayer's
taxable year.
``(v) Special rule for use by certain tax-
exempt organizations.--In the case of any use
in a vehicle by an organization which is
described in section 501(c) and exempt from tax
under section 501(a), clause (ii) shall be
applied without regard to subclause (II)
thereof.''.
(2) Annual refund of tax paid.--Section 6427(i)(2)
(relating to exceptions) is amended by adding at the end the
following new subparagraph:
``(C) Nonapplication of paragraph.--This paragraph
shall not apply to any fuel used in any off-highway
business use described in section 6421(e)(2)(C).''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 5302. MODIFICATION OF DEFINITION OF OFF-HIGHWAY VEHICLE.
(a) In General.--Section 7701(a) (relating to definitions) is
amended by adding at the end the following new paragraph:
``(48) Off-highway vehicles.--
``(A) Off-highway transportation vehicles.--
``(i) In general.--A vehicle shall not be
treated as a highway vehicle if such vehicle is
specially designed for the primary function of
transporting a particular type of load other
than over the public highway and because of
this special design such vehicle's capability
to transport a load over the public highway is
substantially limited or impaired.
``(ii) Determination of vehicle's design.--
For purposes of clause (i), a vehicle's design
is determined solely on the basis of its
physical characteristics.
``(iii) Determination of substantial
limitation or impairment.--For purposes of
clause (i), in determining whether substantial
limitation or impairment exists, account may be
taken of factors such as the size of the
vehicle, whether such vehicle is subject to the
licensing, safety, and other requirements
applicable to highway vehicles, and whether
such vehicle can transport a load at a
sustained speed of at least 25 miles per hour.
It is immaterial that a vehicle can transport a
greater load off the public highway than such
vehicle is permitted to transport over the
public highway.
``(B) Nontransportation trailers and
semitrailers.--A trailer or semitrailer shall not be
treated as a highway vehicle if it is specially
designed to function only as an enclosed stationary
shelter for the carrying on of an off-highway function
at an off-highway site.''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall take effect on the date of
the enactment of this Act.
(2) Fuel taxes.--With respect to taxes imposed under
subchapter B of chapter 31 and part III of subchapter A of
chapter 32, the amendment made by this section shall apply to
taxable periods beginning after the date of the enactment of
this Act.
Subtitle E--Excise Tax Reform and Simplification
PART I--HIGHWAY EXCISE TAXES
SEC. 5401. DEDICATION OF GAS GUZZLER TAX TO HIGHWAY TRUST FUND.
(a) In General.--Section 9503(b)(1) (relating to transfer to
Highway Trust Fund of amounts equivalent to certain taxes), as amended
by section 5101 of this Act, is amended by redesignating subparagraphs
(C), (D), and (E) as subparagraphs (D), (E), and (F), respectively, and
by inserting after subparagraph (B) the following new subparagraph:
``(C) section 4064 (relating to gas guzzler
tax),''.
(b) Uniform Application of Tax.--Subparagraph (A) of section
4064(b)(1) (defining automobile) is amended by striking the second
sentence.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 5402. REPEAL CERTAIN EXCISE TAXES ON RAIL DIESEL FUEL AND INLAND
WATERWAY BARGE FUELS.
(a) Taxes on Trains.--
(1) In general.--Subparagraph (A) of section 4041(a)(1) is
amended by striking ``or a diesel-powered train'' each place it
appears and by striking ``or train''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 4041(a)(1), as
amended by section 5001 of this Act, is amended by
striking clause (ii) and by redesignating clause (iii)
as clause (ii).
(B) Subparagraph (C) of section 4041(b)(1) is
amended by striking all that follows ``section
6421(e)(2)'' and inserting a period.
(C) Subsection (d) of section 4041 is amended by
redesignating paragraph (3) as paragraph (4) and by
inserting after paragraph (2) the following new
paragraph:
``(3) Diesel fuel used in trains.--There is hereby imposed
a tax of 0.1 cent per gallon on any liquid other than gasoline
(as defined in section 4083)--
``(A) sold by any person to an owner, lessee, or
other operator of a diesel-powered train for use as a
fuel in such train, or
``(B) used by any person as a fuel in a diesel-
powered train unless there was a taxable sale of such
fuel under subparagraph (A).
No tax shall be imposed by this paragraph on the sale or use of
any liquid if tax was imposed on such liquid under section
4081.''.
(D) Subsection (f) of section 4082 is amended by
striking ``section 4041(a)(1)'' and inserting
``subsections (d)(3) and (a)(1) of section 4041,
respectively''.
(E) Subparagraphs (A) and (B) of section
4083(a)(3), as amended by section 5261 of this Act, are
amended by striking ``or a diesel-powered train''.
(F) Paragraph (3) of section 6421(f) is amended to
read as follows:
``(3) Gasoline used in trains.--In the case of gasoline
used as a fuel in a train, this section shall not apply with
respect to the Leaking Underground Storage Tank Trust Fund
financing rate under section 4081.''.
(G) Paragraph (3) of section 6427(l) is amended to
read as follows:
``(3) Refund of certain taxes on fuel used in diesel-
powered trains.--For purposes of this subsection, the term
`nontaxable use' includes fuel used in a diesel-powered train.
The preceding sentence shall not apply to the tax imposed by
section 4041(d) and the Leaking Underground Storage Tank Trust
Fund financing rate under section 4081 except with respect to
fuel sold for exclusive use by a State or any political
subdivision thereof.''.
(b) Fuel Used on Inland Waterways.--
(1) In general.--Paragraph (1) of section 4042(b) is
amended by adding ``and'' at the end of subparagraph (A), by
striking ``, and'' at the end of subparagraph (B) and inserting
a period, and by striking subparagraph (C).
(2) Conforming amendment.--Paragraph (2) of section 4042(b)
is amended by striking subparagraph (C).
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2004.
PART II--AQUATIC EXCISE TAXES
SEC. 5411. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND
TRANSFORMATION OF SPORT FISH RESTORATION ACCOUNT.
(a) Simplification of Funding for Boat Safety Account.--
(1) In general.--Section 9503(c)(3) (relating to transfers
from Trust Fund for motorboat fuel taxes), as redesignated by
section 5002 of this Act, is amended--
(A) by striking ``Fund--'' and all that follows
through ``shall be transferred'' in subparagraph (B)
and inserting ``Fund which is attributable to motorboat
fuel taxes shall be transferred'', and
(B) by striking subparagraph (A), and
(C) by redesignating subparagraphs (B) through (E)
as subparagraphs (A) through (D), respectively.
(2) Conforming amendments.--
(A) Section 9503(b)(4), as amended by section 5102
of this Act, is amended--
(i) by adding ``or'' at the end of
subparagraph (B),
(ii) by striking the comma at the end of
subparagraph (C) and inserting a period, and
(iii) by striking subparagraph (D).
(B) Subparagraph (B) of section 9503(c)(3), as
redesignated by section 5002 of this Act and subsection
(a)(3), is amended--
(i) by striking ``account'' in the heading
and inserting ``trust fund'',
(ii) by striking ``or (B)'' in clause (ii),
and
(iii) by striking ``Account in the Aquatic
Resources''.
(C) Subparagraph (C) of section 9503(c)(3), as
redesignated by section 5002 of this Act and subsection
(a)(3), is amended by striking ``, but only to the
extent such taxes are deposited into the Highway Trust
Fund''.
(D) Paragraph (4) of section 9503(c), as
redesignated by section 5002 of this Act, is amended--
(i) by striking ``Account in the Aquatic
Resources'' in subparagraph (A), and
(ii) by striking ``, but only to the extent
such taxes are deposited into the Highway Trust
Fund'' in subparagraph (B).
(b) Merging of Accounts.--
(1) In general.--Subsection (a) of section 9504 is amended
to read as follows:
``(a) Creation of Trust Fund.--There is hereby established in the
Treasury of the United States a trust fund to be known as the `Sport
Fish Restoration Trust Fund'. Such Trust Fund shall consist of such
amounts as may be appropriated, credited, or paid to it as provided in
this section, section 9503(c)(3), section 9503(c)(4), or section
9602(b).''.
(2) Conforming amendments.--
(A) Subsection (b) of section 9504 is amended--
(i) by striking ``Account'' in the heading
and inserting ``Trust Fund'',
(ii) by striking ``Account'' both places it
appears in paragraphs (1) and (2) and inserting
``Trust Fund'', and
(iii) by striking ``account'' both places
it appears in the headings for paragraphs (1)
and (2) and inserting ``trust fund''.
(B) Subsection (d) of section 9504, as amended by
section 5001 of this Act, is amended--
(i) by striking ``Aquatic Resources'' in
the heading,
(ii) by striking ``any Account in the
Aquatic Resources'' in paragraph (1) and
inserting ``the Sports Fish Restoration'', and
(iii) by striking ``any such Account'' in
paragraph (1) and inserting ``such Trust
Fund''.
(C) Subsection (e) of section 9504, as amended by
section 5002 of this Act, is amended by striking ``Boat
Safety Account and Sport Fish Restoration Account'' and
inserting ``Sport Fish Restoration Trust Fund''.
(D) Section 9504 is amended by striking ``aquatic
resources'' in the heading and inserting ``sport fish
restoration''.
(E) The item relating to section 9504 in the table
of sections for subchapter A of chapter 98 is amended
by striking ``aquatic resources'' and inserting ``sport
fish restoration''.
(c) Phaseout of Boat Safety Account.--Subsection (c) of section
9504 is amended to read as follows:
``(c) Expenditures From Boat Safety Account.--Amounts remaining in
the Boat Safety Account on October 1, 2004, and amounts thereafter
credited to the Account under section 9602(b), shall be available, as
provided by appropriation Acts, for making expenditures before October
1, 2009, to carry out the purposes of section 13106 of title 46, United
States Code (as in effect on the date of the enactment of the Safe,
Accountable, Flexible, and Efficient Transportation Equity Act of
2004).''.
(d) Effective Date.--The amendments made by this section shall take
effect on October 1, 2004.
SEC. 5412. EXEMPTION OF LED DEVICES FROM SONAR DEVICES SUITABLE FOR
FINDING FISH.
(a) In General.--Section 4162(b) (defining sonar device suitable
for finding fish) is amended by striking ``or'' at the end of paragraph
(3), by striking the period at the end of paragraph (4) and inserting
``, or'', and by adding at the end the following new paragraph:
``(5) an LED display.''.
(b) Effective Date.--The amendments made by this section shall
apply to articles sold by the manufacturer, producer, or importer after
September 30, 2004.
SEC. 5413. REPEAL OF HARBOR MAINTENANCE TAX ON EXPORTS.
(a) In General.--Subsection (d) of section 4462 (relating to
definitions and special rules) is amended to read as follows:
``(d) Nonapplicability of Tax to Exports.--The tax imposed by
section 4461(a) shall not apply to any port use with respect to any
commercial cargo to be exported from the United States.''.
(b) Conforming Amendments.--
(1) Section 4461(c)(1) is amended by adding ``or'' at the
end of subparagraph (A), by striking subparagraph (B), and by
redesignating subparagraph (C) as subparagraph (B).
(2) Section 4461(c)(2) is amended by striking ``imposed--''
and all that follows through ``in any other case,'' and
inserting ``imposed''.
(c) Effective Date.--The amendments made by this section shall take
effect before, on, and after the date of the enactment of this Act.
SEC. 5414. CAP ON EXCISE TAX ON CERTAIN FISHING EQUIPMENT.
(a) In General.--Paragraph (1) of section 4161(a) (relating to
sport fishing equipment) is amended to read as follows:
``(1) Imposition of tax.--
``(A) In general.--There is hereby imposed on the
sale of any article of sport fishing equipment by the
manufacturer, producer, or importer a tax equal to 10
percent of the price for which so sold.
``(B) Limitation on tax imposed on fishing rods and
poles.--The tax imposed by subparagraph (A) on any
fishing rod or pole shall not exceed $10.''.
(b) Conforming Amendments.--Section 4161(a)(2) is amended by
striking ``paragraph (1)'' both places it appears and inserting
``paragraph (1)(A)''.
(c) Effective Date.--The amendments made by this section shall
apply to articles sold by the manufacturer, producer, or importer after
September 30, 2004.
SEC. 5415. REDUCTION IN RATE OF TAX ON PORTABLE AERATED BAIT
CONTAINERS.
(a) In General.--Section 4161(a)(2)(A) (relating to 3 percent rate
of tax for electric outboard motors and sonar devices suitable for
finding fish) is amended by inserting ``or a portable aerated bait
container'' after ``fish''.
(b) Conforming Amendment.--The heading of section 4161(a)(2) is
amended by striking ``electric outboard motors and sonar devices
suitable for finding fish'' and inserting ``certain sport fishing
equipment''.
(c) Effective Date.--The amendments made by this section shall
apply to articles sold by the manufacturer, producer, or importer after
September 30, 2004.
PART III--AERIAL EXCISE TAXES
SEC. 5421. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR AGRICULTURAL
AERIAL APPLICATORS AND EXEMPTION FOR FIXED-WING AIRCRAFT
ENGAGED IN FORESTRY OPERATIONS.
(a) No Waiver by Farm Owner, Tenant, or Operator Necessary.--
Subparagraph (B) of section 6420(c)(4) (relating to certain farming use
other than by owner, etc.) is amended to read as follows:
``(B) if the person so using the gasoline is an
aerial or other applicator of fertilizers or other
substances and is the ultimate purchaser of the
gasoline, then subparagraph (A) of this paragraph shall
not apply and the aerial or other applicator shall be
treated as having used such gasoline on a farm for
farming purposes.''.
(b) Exemption Includes Fuel Used Between Airfield and Farm.--
Section 6420(c)(4), as amended by subsection (a), is amended by adding
at the end the following new flush sentence:
``For purposes of this paragraph, in the case of an aerial
applicator, gasoline shall be treated as used on a farm for
farming purposes if the gasoline is used for the direct flight
between the airfield and 1 or more farms.''.
(c) Exemption from Tax on Air Transportation of Persons for
Forestry Purposes Extended to Fixed-Wing Aircraft.--Subsection (f) of
section 4261 (relating to tax on air transportation of persons) is
amended to read as follows:
``(f) Exemption for Certain Uses.--No tax shall be imposed under
subsection (a) or (b) on air transportation--
``(1) by helicopter for the purpose of transporting
individuals, equipment, or supplies in the exploration for, or
the development or removal of, hard minerals, oil, or gas, or
``(2) by helicopter or by fixed-wing aircraft for the
purpose of the planting, cultivation, cutting, or
transportation of, or caring for, trees (including logging
operations),
but only if the helicopter or fixed-wing aircraft does not take off
from, or land at, a facility eligible for assistance under the Airport
and Airway Development Act of 1970, or otherwise use services provided
pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of
title 49, United States Code, during such use. In the case of
helicopter transportation described in paragraph (1), this subsection
shall be applied by treating each flight segment as a distinct
flight.''.
(d) Effective Date.--The amendments made by this section shall
apply to fuel use or air transportation after the date of the enactment
of this Act.
SEC. 5422. MODIFICATION OF RURAL AIRPORT DEFINITION.
(a) In General.--Section 4261(e)(1)(B) (defining rural airport) is
amended--
(1) by inserting ``(in the case of any airport described in
clause (ii)(III), on flight segments of at least 100 miles)''
after ``by air'' in clause (i), and
(2) by striking the period at the end of subclause (II) of
clause (ii) and inserting ``, or'', and by adding at the end of
clause (ii) the following new subclause:
``(III) is not connected by paved
roads to another airport.''.
(b) Effective Date.--The amendments made by this section shall take
effect on April 1, 2004.
SEC. 5423. EXEMPTION FROM TICKET TAXES FOR TRANSPORTATION PROVIDED BY
SEAPLANES.
(a) In General.--Section 4261 (relating to imposition of tax) is
amended by redesignating subsection (i) as subsection (j) and by
inserting after subsection (h) the following new subsection:
``(i) Exemption for Seaplanes.--No tax shall be imposed by this
section or section 4271 on any air transportation by a seaplane with
respect to any segment consisting of a takeoff from, and a landing on,
water, but only if the places at which such takeoff and landing occur
have not received and are not receiving financial assistance from the
Airport and Airways Trust Fund.''.
(b) Effective Date.--The amendments made by this section shall
apply to transportation beginning after March 31, 2004.
SEC. 5424. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES ON AIR
TRANSPORTATION.
(a) In General.--Section 4281 (relating to small aircraft on
nonestablished lines) is amended by adding at the end the following new
sentence: ``For purposes of this section, an aircraft shall not be
considered as operated on an established line if such aircraft is
operated on a flight the sole purpose of which is sightseeing.''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to transportation beginning on or after the date of the
enactment of this Act, but shall not apply to any amount paid before
such date for such transportation.
PART IV--ALCOHOLIC BEVERAGE EXCISE TAXES
SEC. 5431. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON PRODUCERS AND
MARKETERS OF ALCOHOLIC BEVERAGES.
(a) Repeal of Occupational Taxes.--
(1) In general.--The following provisions of part II of
subchapter A of chapter 51 (relating to occupational taxes) are
hereby repealed:
(A) Subpart A (relating to proprietors of distilled
spirits plants, bonded wine cellars, etc.).
(B) Subpart B (relating to brewer).
(C) Subpart D (relating to wholesale dealers)
(other than sections 5114 and 5116).
(D) Subpart E (relating to retail dealers) (other
than section 5124).
(E) Subpart G (relating to general provisions)
(other than sections 5142, 5143, 5145, and 5146).
(2) Nonbeverage domestic drawback.--Section 5131 is amended
by striking ``, on payment of a special tax per annum,''.
(3) Industrial use of distilled spirits.--Section 5276 is
hereby repealed.
(b) Conforming Amendments.--
(1)(A) The heading for part II of subchapter A of chapter
51 and the table of subparts for such part are amended to read
as follows:
``PART II--MISCELLANEOUS PROVISIONS
``Subpart A. Manufacturers of stills.
``Subpart B. Nonbeverage domestic drawback claimants.
``Subpart C. Recordkeeping by dealers.
``Subpart D. Other provisions.''.
(B) The table of parts for such subchapter A is amended by
striking the item relating to part II and inserting the
following new item:
``Part II. Miscellaneous provisions.''.
(2) Subpart C of part II of such subchapter (relating to
manufacturers of stills) is redesignated as subpart A.
(3)(A) Subpart F of such part II (relating to nonbeverage
domestic drawback claimants) is redesignated as subpart B and
sections 5131 through 5134 are redesignated as sections 5111
through 5114, respectively.
(B) The table of sections for such subpart B, as so
redesignated, is amended--
(i) by redesignating the items relating to sections
5131 through 5134 as relating to sections 5111 through
5114, respectively, and
(ii) by striking ``and rate of tax'' in the item
relating to section 5111, as so redesignated.
(C) Section 5111, as redesignated by subparagraph (A), is
amended--
(i) by striking ``and rate of tax'' in the section
heading,
(ii) by striking the subsection heading for
subsection (a), and
(iii) by striking subsection (b).
(4) Part II of subchapter A of chapter 51 is amended by
adding after subpart B, as redesignated by paragraph (3), the
following new subpart:
``Subpart C--Recordkeeping by Dealers
``Sec. 5121. Recordkeeping by wholesale dealers.
``Sec. 5122. Recordkeeping by retail dealers.
``Sec. 5123. Preservation and inspection of records, and entry of
premises for inspection.''.
(5)(A) Section 5114 (relating to records) is moved to
subpart C of such part II and inserted after the table of
sections for such subpart.
(B) Section 5114 is amended--
(i) by striking the section heading and inserting
the following new heading:
``SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.'',
and
(ii) by redesignating subsection (c) as subsection
(d) and by inserting after subsection (b) the following
new subsection:
``(c) Wholesale Dealers.--For purposes of this part--
``(1) Wholesale dealer in liquors.--The term `wholesale
dealer in liquors' means any dealer (other than a wholesale
dealer in beer) who sells, or offers for sale, distilled
spirits, wines, or beer, to another dealer.
``(2) Wholesale dealer in beer.--The term `wholesale dealer
in beer' means any dealer who sells, or offers for sale, beer,
but not distilled spirits or wines, to another dealer.
``(3) Dealer.--The term `dealer' means any person who
sells, or offers for sale, any distilled spirits, wines, or
beer.
``(4) Presumption in case of sale of 20 wine gallons or
more.--The sale, or offer for sale, of distilled spirits,
wines, or beer, in quantities of 20 wine gallons or more to the
same person at the same time, shall be presumptive evidence
that the person making such sale, or offer for sale, is engaged
in or carrying on the business of a wholesale dealer in liquors
or a wholesale dealer in beer, as the case may be. Such
presumption may be overcome by evidence satisfactorily showing
that such sale, or offer for sale, was made to a person other
than a dealer.''.
(C) Paragraph (3) of section 5121(d), as so redesignated,
is amended by striking ``section 5146'' and inserting ``section
5123''.
(6)(A) Section 5124 (relating to records) is moved to
subpart C of part II of subchapter A of chapter 51 and inserted
after section 5121.
(B) Section 5124 is amended--
(i) by striking the section heading and inserting
the following new heading:
``SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.'',
(ii) by striking ``section 5146'' in subsection (c)
and inserting ``section 5123'', and
(iii) by redesignating subsection (c) as subsection
(d) and inserting after subsection (b) the following
new subsection:
``(c) Retail Dealers.--For purposes of this section--
``(1) Retail dealer in liquors.--The term `retail dealer in
liquors' means any dealer (other than a retail dealer in beer
or a limited retail dealer) who sells, or offers for sale,
distilled spirits, wines, or beer, to any person other than a
dealer.
``(2) Retail dealer in beer.--The term `retail dealer in
beer' means any dealer (other than a limited retail dealer) who
sells, or offers for sale, beer, but not distilled spirits or
wines, to any person other than a dealer.
``(3) Limited retail dealer.--The term `limited retail
dealer' means any fraternal, civic, church, labor, charitable,
benevolent, or ex-servicemen's organization making sales of
distilled spirits, wine or beer on the occasion of any kind of
entertainment, dance, picnic, bazaar, or festival held by it,
or any person making sales of distilled spirits, wine or beer
to the members, guests, or patrons of bona fide fairs,
reunions, picnics, carnivals, or other similar outings, if such
organization or person is not otherwise engaged in business as
a dealer.
``(4) Dealer.--The term `dealer' has the meaning given such
term by section 5121(c)(3).''.
(7) Section 5146 is moved to subpart C of part II of
subchapter A of chapter 51, inserted after section 5122, and
redesignated as section 5123.
(8) Part II of subchapter A of chapter 51 is amended by
inserting after subpart C the following new subpart:
``Subpart D--Other Provisions
``Sec. 5131. Packaging distilled spirits for industrial uses.
``Sec. 5132. Prohibited purchases by dealers.''.
(9) Section 5116 is moved to subpart D of part II of
subchapter A of chapter 51, inserted after the table of
sections, redesignated as section 5131, and amended by
inserting ``(as defined in section 5121(c))'' after ``dealer''
in subsection (a).
(10) Subpart D of part II of subchapter A of chapter 51 is
amended by adding at the end thereof the following new section:
``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.
``(a) In General.--Except as provided in regulations prescribed by
the Secretary, it shall be unlawful for a dealer to purchase distilled
spirits for resale from any person other than a wholesale dealer in
liquors who is required to keep the records prescribed by section 5121.
``(b) Limited Retail Dealers.--A limited retail dealer may lawfully
purchase distilled spirits for resale from a retail dealer in liquors.
``(c) Penalty and Forfeiture.--
``For penalty and forfeiture provisions
applicable to violations of subsection (a), see sections 5687 and
7302.''.
(11) Subsection (b) of section 5002 is amended--
(A) by striking ``section 5112(a)'' and inserting
``section 5121(c)(3)'',
(B) by striking ``section 5112'' and inserting
``section 5121(c)'',
(C) by striking ``section 5122'' and inserting
``section 5122(c)''.
(12) Subparagraph (A) of section 5010(c)(2) is amended by
striking ``section 5134'' and inserting ``section 5114''.
(13) Subsection (d) of section 5052 is amended to read as
follows:
``(d) Brewer.--For purposes of this chapter, the term `brewer'
means any person who brews beer or produces beer for sale. Such term
shall not include any person who produces only beer exempt from tax
under section 5053(e).''.
(14) The text of section 5182 is amended to read as
follows:
``For provisions requiring recordkeeping by wholesale
liquor dealers, see section 5121, and by retail liquor dealers,
see section 5122.''.
(15) Subsection (b) of section 5402 is amended by striking
``section 5092'' and inserting ``section 5052(d)''.
(16) Section 5671 is amended by striking ``or 5091''.
(17)(A) Part V of subchapter J of chapter 51 is hereby
repealed.
(B) The table of parts for such subchapter J is amended by
striking the item relating to part V.
(18)(A) Sections 5142, 5143, and 5145 are moved to
subchapter D of chapter 52, inserted after section 5731,
redesignated as sections 5732, 5733, and 5734, respectively,
and amended by striking ``this part'' each place it appears and
inserting ``this subchapter''.
(B) Section 5732, as redesignated by subparagraph (A), is
amended by striking ``(except the tax imposed by section
5131)'' each place it appears.
(C) Paragraph (2) of section 5733(c), as redesignated by
subparagraph (A), is amended by striking ``liquors'' both
places it appears and inserting ``tobacco products and
cigarette papers and tubes''.
(D) The table of sections for subchapter D of chapter 52 is
amended by adding at the end thereof the following:
``Sec. 5732. Payment of tax.
``Sec. 5733. Provisions relating to liability for occupational taxes.
``Sec. 5734. Application of State laws.''.
(E) Section 5731 is amended by striking subsection (c) and
by redesignating subsection (d) as subsection (c).
(19) Subsection (c) of section 6071 is amended by striking
``section 5142'' and inserting ``section 5732''.
(20) Paragraph (1) of section 7652(g) is amended--
(A) by striking ``subpart F'' and inserting
``subpart B'', and
(B) by striking ``section 5131(a)'' and inserting
``section 5111''.
(c) Effective Date.--The amendments made by this section shall take
effect on July 1, 2004, but shall not apply to taxes imposed for
periods before such date.
SEC. 5432. SUSPENSION OF LIMITATION ON RATE OF RUM EXCISE TAX COVER
OVER TO PUERTO RICO AND VIRGIN ISLANDS.
(a) In General.--Section 7652(f)(1) (relating to limitation on
cover over of tax on distilled spirits) is amended by striking
``January 1, 2004'' and inserting ``October 1, 2004, and $13.50 in the
case of distilled spirits brought into the United States after
September 30, 2004, and before January 1, 2006''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to articles containing distilled spirits brought into the
United States after December 31, 2003.
(2) Special rule.--
(A) In general.--After September 30, 2004, the
treasury of Puerto Rico shall make a Conservation Trust
Fund transfer within 30 days from the date of each
cover over payment to such treasury under section
7652(e) of the Internal Revenue Code of 1986.
(B) Conservation trust fund transfer.--
(i) In general.--For purposes of this
paragraph, the term ``Conservation Trust Fund
transfer'' means a transfer to the Puerto Rico
Conservation Trust Fund of an amount equal to
50 cents per proof gallon of the taxes imposed
under section 5001 or section 7652 of such Code
on distilled spirits that are covered over to
the treasury of Puerto Rico under section
7652(e) of such Code.
(ii) Treatment of transfer.--Each
Conservation Trust Fund transfer shall be
treated as principal for an endowment, the
income from which to be available for use by
the Puerto Rico Conservation Trust Fund for the
purposes for which the Trust Fund was
established.
(iii) Result of nontransfer.--
(I) In general.--Upon notification
by the Secretary of the Interior that a
Conservation Trust Fund transfer has
not been made by the treasury of Puerto
Rico, the Secretary of the Treasury
shall, except as provided in subclause
(II), deduct and withhold from the next
cover over payment to be made to the
treasury of Puerto Rico under section
7652(e) of such Code an amount equal to
the appropriate Conservation Trust Fund
transfer and interest thereon at the
underpayment rate established under
section 6621 of such Code as of the due
date of such transfer. The Secretary of
the Treasury shall transfer such amount
deducted and withheld, and the interest
thereon, directly to the Puerto Rico
Conservation Trust Fund.
(II) Good cause exception.--If the
Secretary of the Interior finds, after
consultation with the Governor of
Puerto Rico, that the failure by the
treasury of Puerto Rico to make a
required transfer was for good cause,
and notifies the Secretary of the
Treasury of the finding of such good
cause before the due date of the next
cover over payment following the
notification of nontransfer, then the
Secretary of the Treasury shall not
deduct the amount of such nontransfer
from any cover over payment.
(C) Puerto rico conservation trust fund.--For
purposes of this paragraph, the term ``Puerto Rico
Conservation Trust Fund'' means the fund established
pursuant to a Memorandum of Understanding between the
United States Department of the Interior and the
Commonwealth of Puerto Rico, dated December 24, 1968.
PART V--SPORT EXCISE TAXES
SEC. 5441. CUSTOM GUNSMITHS.
(a) Small Manufacturers Exempt From Firearms Excise Tax.--Section
4182 (relating to exemptions) is amended by redesignating subsection
(c) as subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Small Manufacturers, Etc.--
``(1) In general.--The tax imposed by section 4181 shall
not apply to any article described in such section if
manufactured, produced, or imported by a person who
manufactures, produces, and imports less than 50 of such
articles during the calendar year.
``(2) Controlled groups.--All persons treated as a single
employer for purposes of subsection (a) or (b) of section 52
shall be treated as one person for purposes of paragraph
(1).''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to articles sold by the manufacturer, producer, or
importer on or after the date which is the first day of the
month beginning at least 2 weeks after the date of the
enactment of this Act.
(2) No inference.--Nothing in the amendments made by this
section shall be construed to create any inference with respect
to the proper tax treatment of any sales before the effective
date of such amendments.
SEC. 5442. MODIFIED TAXATION OF IMPORTED ARCHERY PRODUCTS.
(a) Bows.--Paragraph (1) of section 4161(b) (relating to bows) is
amended to read as follows:
``(1) Bows.--
``(A) In general.--There is hereby imposed on the
sale by the manufacturer, producer, or importer of any
bow which has a peak draw weight of 30 pounds or more,
a tax equal to 11 percent of the price for which so
sold.
``(B) Archery equipment.--There is hereby imposed
on the sale by the manufacturer, producer, or
importer--
``(i) of any part or accessory suitable for
inclusion in or attachment to a bow described
in subparagraph (A), and
``(ii) of any quiver or broadhead suitable
for use with an arrow described in paragraph
(2),
a tax equal to 11 percent of the price for which so
sold.''.
(b) Arrows.--Subsection (b) of section 4161 (relating to bows and
arrows, etc.) is amended by redesignating paragraph (3) as paragraph
(4) and inserting after paragraph (2) the following:
``(3) Arrows.--
``(A) In general.--There is hereby imposed on the
sale by the manufacturer, producer, or importer of any
arrow, a tax equal to 12 percent of the price for which
so sold.
``(B) Exception.--In the case of any arrow of which
the shaft or any other component has been previously
taxed under paragraph (1) or (2)--
``(i) section 6416(b)(3) shall not apply,
and
``(ii) the tax imposed by subparagraph (A)
shall be an amount equal to the excess (if any)
of--
``(I) the amount of tax imposed by
this paragraph (determined without
regard to this subparagraph), over
``(II) the amount of tax paid with
respect to the tax imposed under
paragraph (1) or (2) on such shaft or
component.
``(C) Arrow.--For purposes of this paragraph, the
term `arrow' means any shaft described in paragraph (2)
to which additional components are attached.''.
(c) Conforming Amendments.--Section 4161(b)(2) is amended--
(1) by inserting ``(other than broadheads)'' after
``point'', and
(2) by striking ``Arrows.--'' in the heading and inserting
``Arrow components.--''.
(d) Effective Date.--The amendments made by this section shall
apply to articles sold by the manufacturer, producer, or importer after
the date of the enactment of this Act.
SEC. 5443. TREATMENT OF TRIBAL GOVERNMENTS FOR PURPOSES OF FEDERAL
WAGERING EXCISE AND OCCUPATIONAL TAXES.
(a) In General.--Subsection (a) of section 7871 (relating to Indian
tribal governments treated as States for certain purposes) is amended
by striking ``and'' at the end of paragraph (6), by striking the period
at the end of paragraph (7) and inserting ``; and'', and by adding at
the end the following new paragraph:
``(8) for purposes of chapter 35 (relating to taxes on
wagering).''.
(b) Effective Date.--The amendments made by this section shall take
effect on July 1, 2004, but shall not apply to taxes imposed for
periods before such date.
PART VI--OTHER PROVISIONS
SEC. 5451. INCOME TAX CREDIT FOR DISTILLED SPIRITS WHOLESALERS AND FOR
DISTILLED SPIRITS IN CONTROL STATE BAILMENT WAREHOUSES
FOR COSTS OF CARRYING FEDERAL EXCISE TAXES ON BOTTLED
DISTILLED SPIRITS.
(a) In General.--Subpart A of part I of subchapter A of chapter 51
(relating to gallonage and occupational taxes) is amended by adding at
the end the following new section:
``SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF CARRYING EXCISE TAX.
``(a) In General.--For purposes of section 38, the amount of the
distilled spirits credit for any taxable year is the amount equal to
the product of--
``(1) in the case of--
``(A) any eligible wholesaler--
``(i) the number of cases of bottled
distilled spirits--
``(I) which were bottled in the
United States, and
``(II) which are purchased by such
wholesaler during the taxable year
directly from the bottler of such
spirits, or
``(B) any person which is subject to section 5005
and which is not an eligible wholesaler, the number of
cases of bottled distilled spirits which are stored in
a warehouse operated by, or on behalf of, a State, or
agency or political subdivision thereof, on which title
has not passed on an unconditional sale basis, and
``(2) the average tax-financing cost per case for the most
recent calendar year ending before the beginning of such
taxable year.
``(b) Eligible Wholesaler.--For purposes of this section, the term
`eligible wholesaler' means any person which holds a permit under the
Federal Alcohol Administration Act as a wholesaler of distilled spirits
which is not a State, or agency or political subdivision thereof.
``(c) Average Tax-Financing Cost.--
``(1) In general.--For purposes of this section, the
average tax-financing cost per case for any calendar year is
the amount of interest which would accrue at the deemed
financing rate during a 60-day period on an amount equal to the
deemed Federal excise tax per case.
``(2) Deemed financing rate.--For purposes of paragraph
(1), the deemed financing rate for any calendar year is the
average of the corporate overpayment rates under paragraph (1)
of section 6621(a) (determined without regard to the last
sentence of such paragraph) for calendar quarters of such year.
``(3) Deemed federal excise tax per case.--For purposes of
paragraph (1), the deemed Federal excise tax per case is
$25.68.
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Case.--The term `case' means 12 80-proof 750
milliliter bottles.
``(2) Number of cases in lot.--The number of cases in any
lot of distilled spirits shall be determined by dividing the
number of liters in such lot by 9.''.
(b) Credit Treated as Part of General Business Credit.--Section
38(b) (relating to current year business credit), as amended by section
5103 of this Act, is amended by striking ``plus'' at the end of
paragraph (15), by striking the period at the end of paragraph (16) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(17) the distilled spirits credit determined under
section 5011(a).''.
(c) Conforming Amendments.--
(1) Section 39(d), as amended by section 5103 of this Act,
is amended by adding at the end the following new paragraph:
``(12) No carryback of section 5011 credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the credit determined under
section 5011(a) may be carried back to a taxable year beginning
before the date of the enactment of section 5011.''.
(2) The table of sections for subpart A of part I of
subchapter A of chapter 51 is amended by adding at the end the
following new item:
``Sec. 5011. Income tax credit for average cost of carrying excise
tax.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5452. CREDIT FOR TAXPAYERS OWNING COMMERCIAL POWER TAKEOFF
VEHICLES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits) is amended by adding at the end
the following new section:
``SEC. 45G. COMMERCIAL POWER TAKEOFF VEHICLES CREDIT.
``(a) General Rule.--For purposes of section 38, the amount of the
commercial power takeoff vehicles credit determined under this section
for the taxable year is $250 for each qualified commercial power
takeoff vehicle owned by the taxpayer as of the close of the calendar
year in which or with which the taxable year of the taxpayer ends.
``(b) Definitions.--For purposes of this section--
``(1) Qualified commercial power takeoff vehicle.--The term
`qualified commercial power takeoff vehicle' means any highway
vehicle described in paragraph (2) which is propelled by any
fuel subject to tax under section 4041 or 4081 if such vehicle
is used in a trade or business or for the production of income
(and is licensed and insured for such use).
``(2) Highway vehicle described.--A highway vehicle is
described in this paragraph if such vehicle is--
``(A) designed to engage in the daily collection of
refuse or recyclables from homes or businesses and is
equipped with a mechanism under which the vehicle's
propulsion engine provides the power to operate a load
compactor, or
``(B) designed to deliver ready mixed concrete on a
daily basis and is equipped with a mechanism under
which the vehicle's propulsion engine provides the
power to operate a mixer drum to agitate and mix the
product en route to the delivery site.
``(c) Exception for Vehicles Used by Governments, Etc.--No credit
shall be allowed under this section for any vehicle owned by any person
at the close of a calendar year if such vehicle is used at any time
during such year by--
``(1) the United States or an agency or instrumentality
thereof, a State, a political subdivision of a State, or an
agency or instrumentality of one or more States or political
subdivisions, or
``(2) an organization exempt from tax under section 501(a).
``(d) Termination.--This section shall not apply with respect to
any calendar year after 2006.''.
(b) Credit Treated as Part of General Business Credit.--Section
38(b) (relating to current year business credit), as amended by section
5451 of this Act, is amended by striking ``plus'' at the end of
paragraph (16), by striking the period at the end of paragraph (17) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(18) the commercial power takeoff vehicles credit under
section 45G(a).''.
(c) Conforming Amendments.--
(1) Section 39(d), as amended by section 5451 of this Act,
is amended by adding at the end the following new paragraph:
``(13) No carryback of section 45g credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the credit determined under
section 45G(a) may be carried back to a taxable year beginning
on or before the date of the enactment of section 45G.''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 45G. Commercial power takeoff vehicles credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5453. CREDIT FOR AUXILIARY POWER UNITS INSTALLED ON DIESEL-POWERED
TRUCKS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits), as amended by section 5452 of
this Act, is amended by adding at the end the following new section:
``SEC. 45H. AUXILIARY POWER UNIT CREDIT.
``(a) General Rule.--For purposes of section 38, the amount of the
auxiliary power unit credit determined under this section for the
taxable year is $250 for each qualified auxiliary power unit--
``(1) purchased by the taxpayer, and
``(2) installed or caused to be installed by the taxpayer
on a qualified heavy-duty highway vehicle during such taxable
year.
``(b) Definitions.--For purposes of this section--
``(1) Qualified auxiliary power unit.--The term `qualified
auxiliary power unit' means any integrated system which--
``(A) provides heat, air conditioning, engine
warming, and electricity to the factory installed
components on a qualified heavy-duty highway vehicle as
if the main drive engine of such vehicle was in
operation,
``(B) is employed to reduce long-term idling of the
diesel engine on such a vehicle, and
``(C) is certified by the Environmental Protection
Agency as meeting emission standards in regulations in
effect on the date of the enactment of this section.
``(2) Qualified heavy-duty highway vehicle.--The term
`qualified heavy-duty highway vehicle' means any highway
vehicle weighing more than 12,500 pounds and powered by a
diesel engine.
``(c) Termination.--This section shall not apply with respect to
any installation occurring after December 31, 2006.''.
(b) Credit Treated as Part of General Business Credit.--Section
38(b) (relating to current year business credit), as amended by section
5452 of this Act, is amended by striking ``plus'' at the end of
paragraph (17), by striking the period at the end of paragraph (18) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(19) the auxiliary power unit credit under section
45H(a).''.
(c) Conforming Amendments.--
(1) Section 39(d), as amended by section 5452 of this Act,
is amended by adding at the end the following new paragraph:
``(14) No carryback of section 45h credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the credit determined under
section 45H(a) may be carried back to a taxable year beginning
on or before the date of the enactment of section 45H.''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by section 5452 of this
Act, is amended by adding at the end the following new item:
``Sec. 45H. Auxiliary power unit credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to auxiliary power units purchased and installed for taxable
years beginning after the date of the enactment of this Act.
Subtitle F--Miscellaneous Provisions
SEC. 5501. MOTOR FUEL TAX ENFORCEMENT ADVISORY COMMISSION.
(a) Establishment.--There is established a Motor Fuel Tax
Enforcement Advisory Commission (in this section referred to as the
``Commission'').
(b) Function.--The Commission shall--
(1) review motor fuel revenue collections, historical and
current;
(2) review the progress of investigations;
(3) develop and review legislative proposals with respect
to motor fuel taxes;
(4) monitor the progress of administrative regulation
projects relating to motor fuel taxes;
(5) review the results of Federal and State agency
cooperative efforts regarding motor fuel taxes;
(6) review the results of Federal interagency cooperative
efforts regarding motor fuel taxes; and
(7) evaluate and make recommendations regarding--
(A) the effectiveness of existing Federal
enforcement programs regarding motor fuel taxes,
(B) enforcement personnel allocation, and
(C) proposals for regulatory projects, legislation,
and funding.
(c) Membership.--
(1) Appointment.--The Commission shall be composed of the
following representatives appointed by the Chairmen and the
Ranking Members of the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives:
(A) At least 1 representative from each of the
following Federal entities: the Department of Homeland
Security, the Department of Transportation--Office of
Inspector General, the Federal Highway Administration,
the Department of Defense, and the Department of
Justice.
(B) At least 1 representative from the Federation
of State Tax Administrators.
(C) At least 1 representative from any State
department of transportation.
(D) 2 representatives from the highway construction
industry.
(E) 5 representatives from industries relating to
fuel distribution -- refiners (2 representatives),
distributors (1 representative), pipelines (1
representative), and terminal operators (2
representatives).
(F) 1 representative from the retail fuel industry.
(G) 2 representatives from the staff of the
Committee on Finance of the Senate and 2
representatives from the staff of the Committee on Ways
and Means of the House of Representatives.
(2) Terms.--Members shall be appointed for the life of the
Commission.
(3) Vacancies.--A vacancy in the Commission shall be filled
in the manner in which the original appointment was made.
(4) Travel expenses.--Members shall serve without pay but
shall receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of title
5, United States Code.
(5) Chairman.--The Chairman of the Commission shall be
elected by the members.
(d) Funding.--Such sums as are necessary shall be available from
the Highway Trust fund for the expenses of the Commission.
(e) Consultation.--Upon request of the Commission, representatives
of the Department of the Treasury and the Internal Revenue Service
shall be available for consultation to assist the Commission in
carrying out its duties under this section.
(f) Obtaining Data.--The Commission may secure directly from any
department or agency of the United States, information (other than
information required by any law to be kept confidential by such
department or agency) necessary for the Commission to carry out its
duties under this section. Upon request of the Commission, the head of
that department or agency shall furnish such nonconfidential
information to the Commission. The Commission shall also gather
evidence through such means as it may deem appropriate, including
through holding hearings and soliciting comments by means of Federal
Register notices.
(g) Termination.--The Commission shall terminate after September
30, 2009.
SEC. 5502. NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE FINANCING
COMMISSION.
(a) Establishment.--There is established a National Surface
Transportation Infrastructure Financing Commission (in this section
referred to as the ``Commission''). The Commission shall hold its first
meeting within 90 days of the appointment of the eighth individual to
be named to the Commission.
(b) Function.--
(1) In general.--The Commission shall--
(A) make a thorough investigation and study of
revenues flowing into the Highway Trust Fund under
current law, including the individual components of the
overall flow of such revenues;
(B) consider whether the amount of such revenues is
likely to increase, decline, or remain unchanged,
absent changes in the law, particularly by taking into
account the impact of possible changes in public
vehicular choice, fuel use, or travel alternatives that
could be expected to reduce or increase revenues into
the Highway Trust Fund;
(C) consider alternative approaches to generating
revenues for the Highway Trust Fund, and the level of
revenues that such alternatives would yield;
(D) consider highway and transit needs and whether
additional revenues into the Highway Trust Fund, or
other Federal revenues dedicated to highway and transit
infrastructure, would be required in order to meet such
needs; and
(E) study such other matters closely related to the
subjects described in the preceding subparagraphs as it
may deem appropriate.
(2) Time frame of investigation and study.--The time frame
to be considered by the Commission shall extend through the
year 2015.
(3) Preparation of report.--Based on such investigation and
study, the Commission shall develop a final report, with
recommendations and the bases for those recommendations,
indicating policies that should be adopted, or not adopted, to
achieve various levels of annual revenue for the Highway Trust
Fund and to enable the Highway Trust Fund to receive revenues
sufficient to meet highway and transit needs. Such
recommendations shall address, among other matters as the
Commission may deem appropriate--
(A) what levels of revenue are required by the
Federal Highway Trust Fund in order for it to meet
needs to--
(i) maintain, and
(ii) improve the condition and performance
of the Nation's highway and transit systems;
(B) what levels of revenue are required by the
Federal Highway Trust Fund in order to ensure that
Federal levels of investment in highways and transit do
not decline in real terms; and
(C) the extent, if any, to which the Highway Trust
Fund should be augmented by other mechanisms or funds
as a Federal means of financing highway and transit
infrastructure investments.
(c) Membership.--
(1) Appointment.--The Commission shall be composed of 15
members, appointed as follows:
(A) 7 members appointed by the Secretary of
Transportation, in consultation with the Secretary of
the Treasury.
(B) 2 members appointed by the Chairman of the
Committee on Ways and Means of the House of
Representatives.
(C) 2 members appointed by the Ranking Minority
Member of the Committee on Ways and Means of the House
of Representatives.
(D) 2 members appointed by the Chairman of the
Committee on Finance of the Senate.
(E) 2 members appointed by the Ranking Minority
Member of the Committee on Finance of the Senate.
(2) Qualifications.--Members appointed pursuant to
paragraph (1) shall be appointed from among individuals
knowledgeable in the fields of public transportation finance or
highway and transit programs, policy, and needs, and may
include representatives of interested parties, such as State
and local governments or other public transportation
authorities or agencies, representatives of the transportation
construction industry (including suppliers of technology,
machinery and materials), transportation labor (including
construction and providers), transportation providers, the
financial community, and users of highway and transit systems.
(3) Terms.--Members shall be appointed for the life of the
Commission.
(4) Vacancies.--A vacancy in the Commission shall be filled
in the manner in which the original appointment was made.
(5) Travel expenses.--Members shall serve without pay but
shall receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of title
5, United States Code.
(6) Chairman.--The Chairman of the Commission shall be
elected by the members.
(d) Staff.--The Commission may appoint and fix the pay of such
personnel as it considers appropriate.
(e) Funding.--Funding for the Commission shall be provided by the
Secretary of the Treasury and by the Secretary of Transportation, out
of funds available to those agencies for administrative and policy
functions.
(f) Staff of Federal Agencies.--Upon request of the Commission, the
head of any department or agency of the United States may detail any of
the personnel of that department or agency to the Commission to assist
in carrying out its duties under this section.
(g) Obtaining Data.--The Commission may secure directly from any
department or agency of the United States, information (other than
information required by any law to be kept confidential by such
department or agency) necessary for the Commission to carry out its
duties under this section. Upon request of the Commission, the head of
that department or agency shall furnish such nonconfidential
information to the Commission. The Commission shall also gather
evidence through such means as it may deem appropriate, including
through holding hearings and soliciting comments by means of Federal
Register notices.
(h) Report.--Not later than 2 years after the date of its first
meeting, the Commission shall transmit its final report, including
recommendations, to the Secretary of Transportation, the Secretary of
the Treasury, and the Committee on Ways and Means of the House of
Representatives, the Committee on Finance of the Senate, the Committee
on Transportation and Infrastructure of the House of Representatives,
the Committee on Environment and Public Works of the Senate, and the
Committee on Banking, Housing, and Urban Affairs of the Senate.
(i) Termination.--The Commission shall terminate on the 180th day
following the date of transmittal of the report under subsection (h).
All records and papers of the Commission shall thereupon be delivered
to the Administrator of General Services for deposit in the National
Archives.
SEC. 5503. TREASURY STUDY OF FUEL TAX COMPLIANCE AND INTERAGENCY
COOPERATION.
(a) In General.--Not later than January 31, 2006, the Secretary of
the Treasury shall submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives a
report regarding fuel tax enforcement which shall include the
information and analysis specified in subsections (b) and (c) and any
other information and recommendations the Secretary of the Treasury may
deem appropriate.
(b) Audits.--With respect to audits conducted by the Internal
Revenue Service, the report required under subsection (a) shall
include--
(1) the number and geographic distribution of audits
conducted annually, by fiscal year, between October 1, 2001,
and September 30, 2005;
(2) the total volume involved for each of the taxable fuels
covered by such audits and a comparison to the annual
production of such fuels;
(3) the staff hours and number of personnel devoted to the
audits per year; and
(4) the results of such audits by year, including total tax
collected, total penalties collected, and number of referrals
for criminal prosecution.
(c) Enforcement Activities.--With respect to enforcement
activities, the report required under subsection (a) shall include--
(1) the number and geographic distribution of criminal
investigations and prosecutions annually, by fiscal year,
between October 1, 2001, and September 30, 2005, and the
results of such investigations and prosecutions;
(2) to the extent such investigations and prosecutions
involved other agencies, State or Federal, a breakdown by
agency of the number of joint investigations involved;
(3) an assessment of the effectiveness of joint action and
cooperation between the Department of the Treasury and other
Federal and State agencies, including a discussion of the
ability and need to share information across agencies for both
civil and criminal Federal tax enforcement and enforcement of
State or Federal laws relating to fuels;
(4) the staff hours and number of personnel devoted to
criminal investigations and prosecutions per year;
(5) the staff hours and number of personnel devoted to
administrative collection of fuel taxes; and
(6) the results of administrative collection efforts
annually, by fiscal year, between October 1, 2001, and
September 30, 2005.
SEC. 5504. EXPANSION OF HIGHWAY TRUST FUND EXPENDITURE PURPOSES TO
INCLUDE FUNDING FOR STUDIES OF SUPPLEMENTAL OR
ALTERNATIVE FINANCING FOR THE HIGHWAY TRUST FUND.
(a) In General.--From amounts available in the Highway Trust Fund,
there is authorized to be expended for 2 comprehensive studies of
supplemental or alternative funding sources for the Highway Trust
Fund--
(1) $1,000,000 to the Western Transportation Institute of
the College of Engineering at Montana State University for the
study and report described in subsection (b), and
(2) $16,500,000 to the Public Policy Center of the
University of Iowa for the study and report described in
subsection (c).
(b) Study of Funding Mechanisms.--Not later than December 31, 2006,
the Western Transportation Institute of the College of Engineering at
Montana State University shall report to the Secretary of the Treasury
and the Secretary of Transportation on a study of highway funding
mechanisms of other industrialized nations, an examination of the
viability of alternative funding proposals, including congestion
pricing, greater reliance on tolls, privatization of facilities, and
bonding for construction of added capacity, and an examination of
increasing the rates of motor fuels taxes in effect on the date of the
enactment of this Act, including the indexation of such rates.
(c) Study on Field Test of On-Board Computer Assessment of Highway
Use Taxes.--Not later than December 31, 2011, the Public Policy Center
of the University of Iowa shall direct, analyze, and report to the
Secretary of the Treasury and the Secretary of Transportation on a
long-term field test of an approach to assessing highway use taxes
based upon actual mileage driven by a specific vehicle on specific
types of highways by use of an on-board computer--
(1) which is linked to satellites to calculate highway
mileage traversed,
(2) which computes the appropriate highway use tax for each
of the Federal, State, and local governments as the vehicle
makes use of the highways, and
(3) the data from which is periodically downloaded by the
vehicle owner to a collection center for an assessment of
highway use taxes due in each jurisdiction traversed.The
components of the field test shall include 2 years for
preparation, including selection of vendors and test
participants, and 3-year testing period.
SEC. 5505. TREASURY STUDY OF HIGHWAY FUELS USED BY TRUCKS FOR NON-
TRANSPORTATION PURPOSES.
(a) Study.--The Secretary of the Treasury shall conduct a study
regarding the use of highway motor fuel by trucks that is not used for
the propulsion of the vehicle. As part of such study--
(1) in the case of vehicles carrying equipment that is
unrelated to the transportation function of the vehicle--
(A) the Secretary of the Treasury, in consultation
with the Secretary of Transportation, and with public
notice and comment, shall determine the average annual
amount of tax paid fuel consumed per vehicle, by type
of vehicle, used by the propulsion engine to provide
the power to operate the equipment attached to the
highway vehicle, and
(B) the Secretary of the Treasury shall review the
technical and administrative feasibility of exempting
such nonpropulsive use of highway fuels for the highway
motor fuels excise taxes,
(2) in the case where non-transportation equipment is run
by a separate motor--
(A) the Secretary of the Treasury shall determine
the annual average amount of fuel exempted from tax in
the use of such equipment by equipment type, and
(B) the Secretary of the Treasury shall review
issues of administration and compliance related to the
present-law exemption provided for such fuel use, and
(3) the Secretary of the Treasury shall--
(A) estimate the amount of taxable fuel consumed by
trucks and the emissions of various pollutants due to
the long-term idling of diesel engines, and
(B) determine the cost of reducing such long-term
idling through the use of plug-ins at truck stops,
auxiliary power units, or other technologies.
(b) Report.--Not later than January 1, 2006, the Secretary of the
Treasury shall report the findings of the study required under
subsection (a) to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives.
SEC. 5506. DELTA REGIONAL TRANSPORTATION PLAN.
(a) Study.--The Delta Regional Authority shall conduct a study of
the transportation assets and needs in the States of Alabama, Arkansas,
Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee
which comprise the Delta region.
(b) Regional Strategic Transportation Plan.--Upon completion of the
study required under subsection (a), the Delta Regional Authority shall
establish a regional strategic transportation plan to achieve efficient
transportation systems in the Delta region. In developing the regional
strategic transportation plan, the Delta Regional Authority shall
consult with local planning and development districts, local and
regional governments, metropolitan planning organizations, State
transportation entities, and Federal transportation agencies.
(c) Elements of Study and Plan.--The study and plan under this
section shall include the following transportation modes and systems:
transit, rail, highway, interstate, bridges, air, airports, waterways
and ports.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Delta Regional Authority $1,000,000 to carry out
the purposes of this section, to remain available until expended.
SEC. 5507. TREATMENT OF EMPLOYER-PROVIDED TRANSIT AND VAN POOLING
BENEFITS.
(a) In General.--Subparagraph (A) of section 132(f)(2) (relating to
limitation on exclusion) is amended by striking ``$100'' and inserting
``$120''.
(b) Inflation Adjustment Conforming Amendments.--The last sentence
of section 132(f)(6)(A) (relating to inflation adjustment) is amended--
(1) by striking ``2002'' and inserting ``2005'', and
(2) by striking ``2001'' and inserting ``2004''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 5508. STUDY OF INCENTIVES FOR PRODUCTION OF BIODIESEL.
(a) Study.--The General Comptroller of the United States shall
conduct a study related to biodiesel fuels and the tax credit for
biodiesel fuels established under this Act. Such study shall include--
(1) an assessment on whether such credit provides
sufficient assistance to the producers of biodiesel fuel to
establish the fuel as a viable energy alternative in the
current market place,
(2) an assessment on how long such credit or similar
subsidy would have to remain in effect before biodiesel fuel
can compete in the market place without such assistance,
(3) a cost-benefit analysis of such credit, comparing the
cost of the credit in forgone revenue to the benefits of lower
fuel costs for consumers, increased profitability for the
biodiesel industry, increased farm income, reduced program
outlays from the Department of Agriculture, and the improved
environmental conditions through the use of biodiesel fuel, and
(4) an assessment on whether such credit results in any
unintended consequences for unrelated industries, including the
impact, if any, on the glycerin market.
(b) Report.--Not later than 2 years after the date of the enactment
of this Act, the Comptroller General of the United States shall report
the findings of the study required under subsection (a) to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives.
Subtitle G--Revenue Offsets
PART I--LIMITATION ON EXPENSING CERTAIN PASSENGER AUTOMOBILES
SEC. 5601. EXPANSION OF LIMITATION ON DEPRECIATION OF CERTAIN PASSENGER
AUTOMOBILES.
(a) In General.--Section 179(b) (relating to limitations) is
amended by adding at the end the following new paragraph:
``(6) Limitation on cost taken into account for certain
passenger vehicles.--
``(A) In general.--The cost of any sport utility
vehicle for any taxable year which may be taken into
account under this section shall not exceed $25,000.
``(B) Sport utility vehicle.--For purposes of
subparagraph (A)--
``(i) In general.--The term `sport utility
vehicle' means any 4-wheeled vehicle which--
``(I) is manufactured primarily for
use on public streets, roads, and
highways,
``(II) is not subject to section
280F, and
``(III) is rated at not more than
14,000 pounds gross vehicle weight.
``(ii) Certain vehicles excluded.--Such
term does not include any vehicle which--
``(I) does not have the primary
load carrying device or container
attached,
``(II) has a seating capacity of
more than 12 individuals,
``(III) is designed for more than 9
individuals in seating rearward of the
driver's seat,
``(IV) is equipped with an open
cargo area, or a covered box not
readily accessible from the passenger
compartment, of at least 72.0 inches in
interior length, or
``(V) has an integral enclosure,
fully enclosing the driver compartment
and load carrying device, does not have
seating rearward of the driver's seat,
and has no body section protruding more
than 30 inches ahead of the leading
edge of the windshield.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after February 2, 2004.
PART II--PROVISIONS DESIGNED TO CURTAIL TAX SHELTERS
SEC. 5611. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.
(a) In General.--Section 7701 is amended by redesignating
subsection (n) as subsection (o) and by inserting after subsection (m)
the following new subsection:
``(n) Clarification of Economic Substance Doctrine; Etc.--
``(1) General rules.--
``(A) In general.--In any case in which a court
determines that the economic substance doctrine is
relevant for purposes of this title to a transaction
(or series of transactions), such transaction (or
series of transactions) shall have economic substance
only if the requirements of this paragraph are met.
``(B) Definition of economic substance.--For
purposes of subparagraph (A)--
``(i) In general.--A transaction has
economic substance only if--
``(I) the transaction changes in a
meaningful way (apart from Federal tax
effects) the taxpayer's economic
position, and
``(II) the taxpayer has a
substantial nontax purpose for entering
into such transaction and the
transaction is a reasonable means of
accomplishing such purpose.
In applying subclause (II), a purpose of
achieving a financial accounting benefit shall
not be taken into account in determining
whether a transaction has a substantial nontax
purpose if the origin of such financial
accounting benefit is a reduction of income
tax.
``(ii) Special rule where taxpayer relies
on profit potential.--A transaction shall not
be treated as having economic substance by
reason of having a potential for profit
unless--
``(I) the present value of the
reasonably expected pre-tax profit from
the transaction is substantial in
relation to the present value of the
expected net tax benefits that would be
allowed if the transaction were
respected, and
``(II) the reasonably expected pre-
tax profit from the transaction exceeds
a risk-free rate of return.
``(C) Treatment of fees and foreign taxes.--Fees
and other transaction expenses and foreign taxes shall
be taken into account as expenses in determining pre-
tax profit under subparagraph (B)(ii).
``(2) Special rules for transactions with tax-indifferent
parties.--
``(A) Special rules for financing transactions.--
The form of a transaction which is in substance the
borrowing of money or the acquisition of financial
capital directly or indirectly from a tax-indifferent
party shall not be respected if the present value of
the deductions to be claimed with respect to the
transaction is substantially in excess of the present
value of the anticipated economic returns of the person
lending the money or providing the financial capital. A
public offering shall be treated as a borrowing, or an
acquisition of financial capital, from a tax-
indifferent party if it is reasonably expected that at
least 50 percent of the offering will be placed with
tax-indifferent parties.
``(B) Artificial income shifting and basis
adjustments.--The form of a transaction with a tax-
indifferent party shall not be respected if--
``(i) it results in an allocation of income
or gain to the tax-indifferent party in excess
of such party's economic income or gain, or
``(ii) it results in a basis adjustment or
shifting of basis on account of overstating the
income or gain of the tax-indifferent party.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Economic substance doctrine.--The term
`economic substance doctrine' means the common law
doctrine under which tax benefits under subtitle A with
respect to a transaction are not allowable if the
transaction does not have economic substance or lacks a
business purpose.
``(B) Tax-indifferent party.--The term `tax-
indifferent party' means any person or entity not
subject to tax imposed by subtitle A. A person shall be
treated as a tax-indifferent party with respect to a
transaction if the items taken into account with
respect to the transaction have no substantial impact
on such person's liability under subtitle A.
``(C) Exception for personal transactions of
individuals.--In the case of an individual, this
subsection shall apply only to transactions entered
into in connection with a trade or business or an
activity engaged in for the production of income.
``(D) Treatment of lessors.--In applying paragraph
(1)(B)(ii) to the lessor of tangible property subject
to a lease--
``(i) the expected net tax benefits with
respect to the leased property shall not
include the benefits of--
``(I) depreciation,
``(II) any tax credit, or
``(III) any other deduction as
provided in guidance by the Secretary,
and
``(ii) subclause (II) of paragraph
(1)(B)(ii) shall be disregarded in determining
whether any of such benefits are allowable.
``(4) Other common law doctrines not affected.--Except as
specifically provided in this subsection, the provisions of
this subsection shall not be construed as altering or
supplanting any other rule of law, and the requirements of this
subsection shall be construed as being in addition to any such
other rule of law.
``(5) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this subsection. Such regulations may include
exemptions from the application of this subsection.''.
(b) Effective Date.--The amendments made by this section shall
apply to transactions entered into after February 2, 2004.
SEC. 5612. PENALTY FOR FAILING TO DISCLOSE REPORTABLE TRANSACTION.
(a) In General.--Part I of subchapter B of chapter 68 (relating to
assessable penalties) is amended by inserting after section 6707 the
following new section:
``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE REPORTABLE TRANSACTION
INFORMATION WITH RETURN OR STATEMENT.
``(a) Imposition of Penalty.--Any person who fails to include on
any return or statement any information with respect to a reportable
transaction which is required under section 6011 to be included with
such return or statement shall pay a penalty in the amount determined
under subsection (b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the amount of the penalty under subsection (a) shall be
$50,000.
``(2) Listed transaction.--The amount of the penalty under
subsection (a) with respect to a listed transaction shall be
$100,000.
``(3) Increase in penalty for large entities and high net
worth individuals.--
``(A) In general.--In the case of a failure under
subsection (a) by--
``(i) a large entity, or
``(ii) a high net worth individual,
the penalty under paragraph (1) or (2) shall be twice
the amount determined without regard to this paragraph.
``(B) Large entity.--For purposes of subparagraph
(A), the term `large entity' means, with respect to any
taxable year, a person (other than a natural person)
with gross receipts in excess of $10,000,000 for the
taxable year in which the reportable transaction occurs
or the preceding taxable year. Rules similar to the
rules of paragraph (2) and subparagraphs (B), (C), and
(D) of paragraph (3) of section 448(c) shall apply for
purposes of this subparagraph.
``(C) High net worth individual.--For purposes of
subparagraph (A), the term `high net worth individual'
means, with respect to a reportable transaction, a
natural person whose net worth exceeds $2,000,000
immediately before the transaction.
``(c) Definitions.--For purposes of this section--
``(1) Reportable transaction.--The term `reportable
transaction' means any transaction with respect to which
information is required to be included with a return or
statement because, as determined under regulations prescribed
under section 6011, such transaction is of a type which the
Secretary determines as having a potential for tax avoidance or
evasion.
``(2) Listed transaction.--Except as provided in
regulations, the term `listed transaction' means a reportable
transaction which is the same as, or substantially similar to,
a transaction specifically identified by the Secretary as a tax
avoidance transaction for purposes of section 6011.
``(d) Authority To Rescind Penalty.--
``(1) In general.--The Commissioner of Internal Revenue may
rescind all or any portion of any penalty imposed by this
section with respect to any violation if--
``(A) the violation is with respect to a reportable
transaction other than a listed transaction,
``(B) the person on whom the penalty is imposed has
a history of complying with the requirements of this
title,
``(C) it is shown that the violation is due to an
unintentional mistake of fact;
``(D) imposing the penalty would be against equity
and good conscience, and
``(E) rescinding the penalty would promote
compliance with the requirements of this title and
effective tax administration.
``(2) Discretion.--The exercise of authority under
paragraph (1) shall be at the sole discretion of the
Commissioner and may be delegated only to the head of the
Office of Tax Shelter Analysis. The Commissioner, in the
Commissioner's sole discretion, may establish a procedure to
determine if a penalty should be referred to the Commissioner
or the head of such Office for a determination under paragraph
(1).
``(3) No appeal.--Notwithstanding any other provision of
law, any determination under this subsection may not be
reviewed in any administrative or judicial proceeding.
``(4) Records.--If a penalty is rescinded under paragraph
(1), the Commissioner shall place in the file in the Office of
the Commissioner the opinion of the Commissioner or the head of
the Office of Tax Shelter Analysis with respect to the
determination, including--
``(A) the facts and circumstances of the
transaction,
``(B) the reasons for the rescission, and
``(C) the amount of the penalty rescinded.
``(5) Report.--The Commissioner shall each year report to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate--
``(A) a summary of the total number and aggregate
amount of penalties imposed, and rescinded, under this
section, and
``(B) a description of each penalty rescinded under
this subsection and the reasons therefor.
``(e) Penalty Reported to SEC.--In the case of a person--
``(1) which is required to file periodic reports under
section 13 or 15(d) of the Securities Exchange Act of 1934 or
is required to be consolidated with another person for purposes
of such reports, and
``(2) which--
``(A) is required to pay a penalty under this
section with respect to a listed transaction,
``(B) is required to pay a penalty under section
6662A with respect to any reportable transaction at a
rate prescribed under section 6662A(c), or
``(C) is required to pay a penalty under section
6662B with respect to any noneconomic substance
transaction,
the requirement to pay such penalty shall be disclosed in such reports
filed by such person for such periods as the Secretary shall specify.
Failure to make a disclosure in accordance with the preceding sentence
shall be treated as a failure to which the penalty under subsection
(b)(2) applies.
``(f) Coordination With Other Penalties.--The penalty imposed by
this section is in addition to any penalty imposed under this title.''.
(b) Conforming Amendment.--The table of sections for part I of
subchapter B of chapter 68 is amended by inserting after the item
relating to section 6707 the following:
``Sec. 6707A. Penalty for failure to include reportable transaction
information with return or statement.''.
(c) Effective Date.--The amendments made by this section shall
apply to returns and statements the due date for which is after the
date of the enactment of this Act.
SEC. 5613. ACCURACY-RELATED PENALTY FOR LISTED TRANSACTIONS AND OTHER
REPORTABLE TRANSACTIONS HAVING A SIGNIFICANT TAX
AVOIDANCE PURPOSE.
(a) In General.--Subchapter A of chapter 68 is amended by inserting
after section 6662 the following new section:
``SEC. 6662A. IMPOSITION OF ACCURACY-RELATED PENALTY ON UNDERSTATEMENTS
WITH RESPECT TO REPORTABLE TRANSACTIONS.
``(a) Imposition of Penalty.--If a taxpayer has a reportable
transaction understatement for any taxable year, there shall be added
to the tax an amount equal to 20 percent of the amount of such
understatement.
``(b) Reportable Transaction Understatement.--For purposes of this
section--
``(1) In general.--The term `reportable transaction
understatement' means the sum of--
``(A) the product of--
``(i) the amount of the increase (if any)
in taxable income which results from a
difference between the proper tax treatment of
an item to which this section applies and the
taxpayer's treatment of such item (as shown on
the taxpayer's return of tax), and
``(ii) the highest rate of tax imposed by
section 1 (section 11 in the case of a taxpayer
which is a corporation), and
``(B) the amount of the decrease (if any) in the
aggregate amount of credits determined under subtitle A
which results from a difference between the taxpayer's
treatment of an item to which this section applies (as
shown on the taxpayer's return of tax) and the proper
tax treatment of such item.
For purposes of subparagraph (A), any reduction of the excess
of deductions allowed for the taxable year over gross income
for such year, and any reduction in the amount of capital
losses which would (without regard to section 1211) be allowed
for such year, shall be treated as an increase in taxable
income.
``(2) Items to which section applies.--This section shall
apply to any item which is attributable to--
``(A) any listed transaction, and
``(B) any reportable transaction (other than a
listed transaction) if a significant purpose of such
transaction is the avoidance or evasion of Federal
income tax.
``(c) Higher Penalty for Nondisclosed Listed and Other Avoidance
Transactions.--
``(1) In general.--Subsection (a) shall be applied by
substituting `30 percent' for `20 percent' with respect to the
portion of any reportable transaction understatement with
respect to which the requirement of section 6664(d)(2)(A) is
not met.
``(2) Rules applicable to assertion and compromise of
penalty.--
``(A) In general.--Only upon the approval by the
Chief Counsel for the Internal Revenue Service or the
Chief Counsel's delegate at the national office of the
Internal Revenue Service may a penalty to which
paragraph (1) applies be included in a 1st letter of
proposed deficiency which allows the taxpayer an
opportunity for administrative review in the Internal
Revenue Service Office of Appeals. If such a letter is
provided to the taxpayer, only the Commissioner of
Internal Revenue may compromise all or any portion of
such penalty.
``(B) Applicable rules.--The rules of paragraphs
(2), (3), (4), and (5) of section 6707A(d) shall apply
for purposes of subparagraph (A).
``(d) Definitions of Reportable and Listed Transactions.--For
purposes of this section, the terms `reportable transaction' and
`listed transaction' have the respective meanings given to such terms
by section 6707A(c).
``(e) Special Rules.--
``(1) Coordination with penalties, etc., on other
understatements.--In the case of an understatement (as defined
in section 6662(d)(2))--
``(A) the amount of such understatement (determined
without regard to this paragraph) shall be increased by
the aggregate amount of reportable transaction
understatements and noneconomic substance transaction
understatements for purposes of determining whether
such understatement is a substantial understatement
under section 6662(d)(1), and
``(B) the addition to tax under section 6662(a)
shall apply only to the excess of the amount of the
substantial understatement (if any) after the
application of subparagraph (A) over the aggregate
amount of reportable transaction understatements and
noneconomic substance transaction understatements.
``(2) Coordination with other penalties.--
``(A) Application of fraud penalty.--References to
an underpayment in section 6663 shall be treated as
including references to a reportable transaction
understatement and a noneconomic substance transaction
understatement.
``(B) No double penalty.--This section shall not
apply to any portion of an understatement on which a
penalty is imposed under section 6662B or 6663.
``(3) Special rule for amended returns.--Except as provided
in regulations, in no event shall any tax treatment included
with an amendment or supplement to a return of tax be taken
into account in determining the amount of any reportable
transaction understatement or noneconomic substance transaction
understatement if the amendment or supplement is filed after
the earlier of the date the taxpayer is first contacted by the
Secretary regarding the examination of the return or such other
date as is specified by the Secretary.
``(4) Noneconomic substance transaction
understatement.--For purposes of this subsection, the
term `noneconomic substance transaction understatement'
has the meaning given such term by section 6662B(c).
``(5) Cross reference.--
``For reporting of section 6662A(c)
penalty to the Securities and Exchange Commission, see section
6707A(e).''.
(b) Determination of Other Understatements.--Subparagraph (A) of
section 6662(d)(2) is amended by adding at the end the following flush
sentence:
``The excess under the preceding sentence shall be
determined without regard to items to which section
6662A applies and without regard to items with respect
to which a penalty is imposed by section 6662B.''.
(c) Reasonable Cause Exception.--
(1) In general.--Section 6664 is amended by adding at the
end the following new subsection:
``(d) Reasonable Cause Exception for Reportable Transaction
Understatements.--
``(1) In general.--No penalty shall be imposed under
section 6662A with respect to any portion of a reportable
transaction understatement if it is shown that there was a
reasonable cause for such portion and that the taxpayer acted
in good faith with respect to such portion.
``(2) Special rules.--Paragraph (1) shall not apply to any
reportable transaction understatement unless--
``(A) the relevant facts affecting the tax
treatment of the item are adequately disclosed in
accordance with the regulations prescribed under
section 6011,
``(B) there is or was substantial authority for
such treatment, and
``(C) the taxpayer reasonably believed that such
treatment was more likely than not the proper
treatment.
A taxpayer failing to adequately disclose in accordance with
section 6011 shall be treated as meeting the requirements of
subparagraph (A) if the penalty for such failure was rescinded
under section 6707A(d).
``(3) Rules relating to reasonable belief.--For purposes of
paragraph (2)(C)--
``(A) In general.--A taxpayer shall be treated as
having a reasonable belief with respect to the tax
treatment of an item only if such belief--
``(i) is based on the facts and law that
exist at the time the return of tax which
includes such tax treatment is filed, and
``(ii) relates solely to the taxpayer's
chances of success on the merits of such
treatment and does not take into account the
possibility that a return will not be audited,
such treatment will not be raised on audit, or
such treatment will be resolved through
settlement if it is raised.
``(B) Certain opinions may not be relied upon.--
``(i) In general.--An opinion of a tax
advisor may not be relied upon to establish the
reasonable belief of a taxpayer if--
``(I) the tax advisor is described
in clause (ii), or
``(II) the opinion is described in
clause (iii).
``(ii) Disqualified tax advisors.--A tax
advisor is described in this clause if the tax
advisor--
``(I) is a material advisor (within
the meaning of section 6111(b)(1)) who
participates in the organization,
management, promotion, or sale of the
transaction or who is related (within
the meaning of section 267(b) or
707(b)(1)) to any person who so
participates,
``(II) is compensated directly or
indirectly by a material advisor with
respect to the transaction,
``(III) has a fee arrangement with
respect to the transaction which is
contingent on all or part of the
intended tax benefits from the
transaction being sustained, or
``(IV) as determined under
regulations prescribed by the
Secretary, has a disqualifying
financial interest with respect to the
transaction.
``(iii) Disqualified opinions.--For
purposes of clause (i), an opinion is
disqualified if the opinion--
``(I) is based on unreasonable
factual or legal assumptions (including
assumptions as to future events),
``(II) unreasonably relies on
representations, statements, findings,
or agreements of the taxpayer or any
other person,
``(III) does not identify and
consider all relevant facts, or
``(IV) fails to meet any other
requirement as the Secretary may
prescribe.''.
(2) Conforming amendment.--The heading for subsection (c)
of section 6664 is amended by inserting ``for Underpayments''
after ``Exception''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 461(i)(3) is amended by
striking ``section 6662(d)(2)(C)(iii)'' and inserting ``section
1274(b)(3)(C)''.
(2) Paragraph (3) of section 1274(b) is amended--
(A) by striking ``(as defined in section
6662(d)(2)(C)(iii))'' in subparagraph (B)(i), and
(B) by adding at the end the following new
subparagraph:
``(C) Tax shelter.--For purposes of subparagraph
(B), the term `tax shelter' means--
``(i) a partnership or other entity,
``(ii) any investment plan or arrangement,
or
``(iii) any other plan or arrangement,
if a significant purpose of such partnership, entity,
plan, or arrangement is the avoidance or evasion of
Federal income tax.''.
(3) Section 6662(d)(2) is amended by striking subparagraphs
(C) and (D).
(4) Section 6664(c)(1) is amended by striking ``this part''
and inserting ``section 6662 or 6663''.
(5) Subsection (b) of section 7525 is amended by striking
``section 6662(d)(2)(C)(iii)'' and inserting ``section
1274(b)(3)(C)''.
(6)(A) The heading for section 6662 is amended to read as
follows:
``SEC. 6662. IMPOSITION OF ACCURACY-RELATED PENALTY ON
UNDERPAYMENTS.''.
(B) The table of sections for part II of subchapter A of
chapter 68 is amended by striking the item relating to section
6662 and inserting the following new items:
``Sec. 6662. Imposition of accuracy-related penalty on underpayments.
``Sec. 6662A. Imposition of accuracy-related penalty on understatements
with respect to reportable transactions.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 5614. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO TRANSACTIONS
LACKING ECONOMIC SUBSTANCE, ETC.
(a) In General.--Subchapter A of chapter 68 is amended by inserting
after section 6662A the following new section:
``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO TRANSACTIONS
LACKING ECONOMIC SUBSTANCE, ETC.
``(a) Imposition of Penalty.--If a taxpayer has an noneconomic
substance transaction understatement for any taxable year, there shall
be added to the tax an amount equal to 40 percent of the amount of such
understatement.
``(b) Reduction of Penalty for Disclosed Transactions.--Subsection
(a) shall be applied by substituting `20 percent' for `40 percent' with
respect to the portion of any noneconomic substance transaction
understatement with respect to which the relevant facts affecting the
tax treatment of the item are adequately disclosed in the return or a
statement attached to the return.
``(c) Noneconomic Substance Transaction Understatement.--For
purposes of this section--
``(1) In general.--The term `noneconomic substance
transaction understatement' means any amount which would be an
understatement under section 6662A(b)(1) if section 6662A were
applied by taking into account items attributable to
noneconomic substance transactions rather than items to which
section 6662A would apply without regard to this paragraph.
``(2) Noneconomic substance transaction.--The term
`noneconomic substance transaction' means any transaction if--
``(A) there is a lack of economic substance (within
the meaning of section 7701(n)(1)) for the transaction
giving rise to the claimed benefit or the transaction
was not respected under section 7701(n)(2), or
``(B) the transaction fails to meet the
requirements of any similar rule of law.
``(d) Rules Applicable To Compromise of Penalty.--
``(1) In general.--If the 1st letter of proposed deficiency
which allows the taxpayer an opportunity for administrative
review in the Internal Revenue Service Office of Appeals has
been sent with respect to a penalty to which this section
applies, only the Commissioner of Internal Revenue may
compromise all or any portion of such penalty.
``(2) Applicable rules.--The rules of paragraphs (2), (3),
(4), and (5) of section 6707A(d) shall apply for purposes of
paragraph (1).
``(e) Coordination With Other Penalties.--Except as otherwise
provided in this part, the penalty imposed by this section shall be in
addition to any other penalty imposed by this title.
``(f) Cross References.--
``(1) For coordination of penalty with
understatements under section 6662 and other special rules, see section
6662A(e).
``(2) For reporting of penalty imposed
under this section to the Securities and Exchange Commission, see
section 6707A(e).''.
(b) Clerical Amendment.--The table of sections for part II of
subchapter A of chapter 68 is amended by inserting after the item
relating to section 6662A the following new item:
``Sec. 6662B. Penalty for understatements attributable to transactions
lacking economic substance, etc.''.
(c) Effective Date.--The amendments made by this section shall
apply to transactions entered into after February 2, 2004.
SEC. 5615. MODIFICATIONS OF SUBSTANTIAL UNDERSTATEMENT PENALTY FOR
NONREPORTABLE TRANSACTIONS.
(a) Substantial Understatement of Corporations.--Section
6662(d)(1)(B) (relating to special rule for corporations) is amended to
read as follows:
``(B) Special rule for corporations.--In the case
of a corporation other than an S corporation or a
personal holding company (as defined in section 542),
there is a substantial understatement of income tax for
any taxable year if the amount of the understatement
for the taxable year exceeds the lesser of--
``(i) 10 percent of the tax required to be
shown on the return for the taxable year (or,
if greater, $10,000), or
``(ii) $10,000,000.''.
(b) Reduction for Understatement of Taxpayer Due to Position of
Taxpayer or Disclosed Item.--
(1) In general.--Section 6662(d)(2)(B)(i) (relating to
substantial authority) is amended to read as follows:
``(i) the tax treatment of any item by the
taxpayer if the taxpayer had reasonable belief
that the tax treatment was more likely than not
the proper treatment, or''.
(2) Conforming amendment.--Section 6662(d) is amended by
adding at the end the following new paragraph:
``(3) Secretarial list.--For purposes of this subsection,
section 6664(d)(2), and section 6694(a)(1), the Secretary may
prescribe a list of positions for which the Secretary believes
there is not substantial authority or there is no reasonable
belief that the tax treatment is more likely than not the
proper tax treatment. Such list (and any revisions thereof)
shall be published in the Federal Register or the Internal
Revenue Bulletin.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5616. TAX SHELTER EXCEPTION TO CONFIDENTIALITY PRIVILEGES RELATING
TO TAXPAYER COMMUNICATIONS.
(a) In General.--Section 7525(b) (relating to section not to apply
to communications regarding corporate tax shelters) is amended to read
as follows:
``(b) Section Not To Apply to Communications Regarding Tax
Shelters.--The privilege under subsection (a) shall not apply to any
written communication which is--
``(1) between a federally authorized tax practitioner and--
``(A) any person,
``(B) any director, officer, employee, agent, or
representative of the person, or
``(C) any other person holding a capital or profits
interest in the person, and
``(2) in connection with the promotion of the direct or
indirect participation of the person in any tax shelter (as
defined in section 1274(b)(3)(C)).''.
(b) Effective Date.--The amendment made by this section shall apply
to communications made on or after the date of the enactment of this
Act.
SEC. 5617. DISCLOSURE OF REPORTABLE TRANSACTIONS.
(a) In General.--Section 6111 (relating to registration of tax
shelters) is amended to read as follows:
``SEC. 6111. DISCLOSURE OF REPORTABLE TRANSACTIONS.
``(a) In General.--Each material advisor with respect to any
reportable transaction shall make a return (in such form as the
Secretary may prescribe) setting forth--
``(1) information identifying and describing the
transaction,
``(2) information describing any potential tax benefits
expected to result from the transaction, and
``(3) such other information as the Secretary may
prescribe.
Such return shall be filed not later than the date specified by the
Secretary.
``(b) Definitions.--For purposes of this section--
``(1) Material advisor.--
``(A) In general.--The term `material advisor'
means any person--
``(i) who provides any material aid,
assistance, or advice with respect to
organizing, managing, promoting, selling,
implementing, or carrying out any reportable
transaction, and
``(ii) who directly or indirectly derives
gross income in excess of the threshold amount
for such aid, assistance, or advice.
``(B) Threshold amount.--For purposes of
subparagraph (A), the threshold amount is--
``(i) $50,000 in the case of a reportable
transaction substantially all of the tax
benefits from which are provided to natural
persons, and
``(ii) $250,000 in any other case.
``(2) Reportable transaction.--The term `reportable
transaction' has the meaning given to such term by section
6707A(c).
``(c) Regulations.--The Secretary may prescribe regulations which
provide--
``(1) that only 1 person shall be required to meet the
requirements of subsection (a) in cases in which 2 or more
persons would otherwise be required to meet such requirements,
``(2) exemptions from the requirements of this section, and
``(3) such rules as may be necessary or appropriate to
carry out the purposes of this section.''.
(b) Conforming Amendments.--
(1) The item relating to section 6111 in the table of
sections for subchapter B of chapter 61 is amended to read as
follows:
``Sec. 6111. Disclosure of reportable transactions.''.
(2)(A) So much of section 6112 as precedes subsection (c)
thereof is amended to read as follows:
``SEC. 6112. MATERIAL ADVISORS OF REPORTABLE TRANSACTIONS MUST KEEP
LISTS OF ADVISEES.
``(a) In General.--Each material advisor (as defined in section
6111) with respect to any reportable transaction (as defined in section
6707A(c)) shall maintain, in such manner as the Secretary may by
regulations prescribe, a list--
``(1) identifying each person with respect to whom such
advisor acted as such a material advisor with respect to such
transaction, and
``(2) containing such other information as the Secretary
may by regulations require.
This section shall apply without regard to whether a material advisor
is required to file a return under section 6111 with respect to such
transaction.''.
(B) Section 6112 is amended by redesignating subsection (c)
as subsection (b).
(C) Section 6112(b), as redesignated by subparagraph (B),
is amended--
(i) by inserting ``written'' before ``request'' in
paragraph (1)(A), and
(ii) by striking ``shall prescribe'' in paragraph
(2) and inserting ``may prescribe''.
(D) The item relating to section 6112 in the table of
sections for subchapter B of chapter 61 is amended to read as
follows:
``Sec. 6112. Material advisors of reportable transactions must keep
lists of advisees.''.
(3)(A) The heading for section 6708 is amended to read as
follows:
``SEC. 6708. FAILURE TO MAINTAIN LISTS OF ADVISEES WITH RESPECT TO
REPORTABLE TRANSACTIONS.''.
(B) The item relating to section 6708 in the table of
sections for part I of subchapter B of chapter 68 is amended to
read as follows:
``Sec. 6708. Failure to maintain lists of advisees with respect to
reportable transactions.''.
(c) Required Disclosure Not Subject to Claim of Confidentiality.--
Subparagraph (A) of section 6112(b)(1), as redesignated by subsection
(b)(2)(B), is amended by adding at the end the following new flush
sentence:
``For purposes of this section, the identity of any person on
such list shall not be privileged.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to transactions
with respect to which material aid, assistance, or advice
referred to in section 6111(b)(1)(A)(i) of the Internal Revenue
Code of 1986 (as added by this section) is provided after the
date of the enactment of this Act.
(2) No claim of confidentiality against disclosure.--The
amendment made by subsection (c) shall take effect as if
included in the amendments made by section 142 of the Deficit
Reduction Act of 1984.
SEC. 5618. MODIFICATIONS TO PENALTY FOR FAILURE TO REGISTER TAX
SHELTERS.
(a) In General.--Section 6707 (relating to failure to furnish
information regarding tax shelters) is amended to read as follows:
``SEC. 6707. FAILURE TO FURNISH INFORMATION REGARDING REPORTABLE
TRANSACTIONS.
``(a) In General.--If a person who is required to file a return
under section 6111(a) with respect to any reportable transaction--
``(1) fails to file such return on or before the date
prescribed therefor, or
``(2) files false or incomplete information with the
Secretary with respect to such transaction,
such person shall pay a penalty with respect to such return in the
amount determined under subsection (b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraph (2), the
penalty imposed under subsection (a) with respect to any
failure shall be $50,000.
``(2) Listed transactions.--The penalty imposed under
subsection (a) with respect to any listed transaction shall be
an amount equal to the greater of--
``(A) $200,000, or
``(B) 50 percent of the gross income derived by
such person with respect to aid, assistance, or advice
which is provided with respect to the listed
transaction before the date the return including the
transaction is filed under section 6111.
Subparagraph (B) shall be applied by substituting `75 percent'
for `50 percent' in the case of an intentional failure or act
described in subsection (a).
``(c) Certain Rules To Apply.--The provisions of section 6707A(d)
shall apply to any penalty imposed under this section.
``(d) Reportable and Listed Transactions.--The terms `reportable
transaction' and `listed transaction' have the respective meanings
given to such terms by section 6707A(c).''.
(b) Clerical Amendment.--The item relating to section 6707 in the
table of sections for part I of subchapter B of chapter 68 is amended
by striking ``tax shelters'' and inserting ``reportable transactions''.
(c) Effective Date.--The amendments made by this section shall
apply to returns the due date for which is after the date of the
enactment of this Act.
SEC. 5619. MODIFICATION OF PENALTY FOR FAILURE TO MAINTAIN LISTS OF
INVESTORS.
(a) In General.--Subsection (a) of section 6708 is amended to read
as follows:
``(a) Imposition of Penalty.--
``(1) In general.--If any person who is required to
maintain a list under section 6112(a) fails to make such list
available upon written request to the Secretary in accordance
with section 6112(b)(1)(A) within 20 business days after the
date of the Secretary's request, such person shall pay a
penalty of $10,000 for each day of such failure after such 20th
day.
``(2) Reasonable cause exception.--No penalty shall be
imposed by paragraph (1) with respect to the failure on any day
if such failure is due to reasonable cause.''.
(b) Effective Date.--The amendment made by this section shall apply
to requests made after the date of the enactment of this Act.
SEC. 5620. MODIFICATION OF ACTIONS TO ENJOIN CERTAIN CONDUCT RELATED TO
TAX SHELTERS AND REPORTABLE TRANSACTIONS.
(a) In General.--Section 7408 (relating to action to enjoin
promoters of abusive tax shelters, etc.) is amended by redesignating
subsection (c) as subsection (d) and by striking subsections (a) and
(b) and inserting the following new subsections:
``(a) Authority To Seek Injunction.--A civil action in the name of
the United States to enjoin any person from further engaging in
specified conduct may be commenced at the request of the Secretary. Any
action under this section shall be brought in the district court of the
United States for the district in which such person resides, has his
principal place of business, or has engaged in specified conduct. The
court may exercise its jurisdiction over such action (as provided in
section 7402(a)) separate and apart from any other action brought by
the United States against such person.
``(b) Adjudication and Decree.--In any action under subsection (a),
if the court finds--
``(1) that the person has engaged in any specified conduct,
and
``(2) that injunctive relief is appropriate to prevent
recurrence of such conduct,
the court may enjoin such person from engaging in such conduct or in
any other activity subject to penalty under this title.
``(c) Specified Conduct.--For purposes of this section, the term
`specified conduct' means any action, or failure to take action,
subject to penalty under section 6700, 6701, 6707, or 6708.''.
(b) Conforming Amendments.--
(1) The heading for section 7408 is amended to read as
follows:
``SEC. 7408. ACTIONS TO ENJOIN SPECIFIED CONDUCT RELATED TO TAX
SHELTERS AND REPORTABLE TRANSACTIONS.''.
(2) The table of sections for subchapter A of chapter 67 is
amended by striking the item relating to section 7408 and
inserting the following new item:
``Sec. 7408. Actions to enjoin specified conduct related to tax
shelters and reportable transactions.''.
(c) Effective Date.--The amendment made by this section shall take
effect on the day after the date of the enactment of this Act.
SEC. 5621. UNDERSTATEMENT OF TAXPAYER'S LIABILITY BY INCOME TAX RETURN
PREPARER.
(a) Standards Conformed to Taxpayer Standards.--Section 6694(a)
(relating to understatements due to unrealistic positions) is amended--
(1) by striking ``realistic possibility of being sustained
on its merits'' in paragraph (1) and inserting ``reasonable
belief that the tax treatment in such position was more likely
than not the proper treatment'',
(2) by striking ``or was frivolous'' in paragraph (3) and
inserting ``or there was no reasonable basis for the tax
treatment of such position'', and
(3) by striking ``Unrealistic'' in the heading and
inserting ``Improper''.
(b) Amount of Penalty.--Section 6694 is amended--
(1) by striking ``$250'' in subsection (a) and inserting
``$1,000'', and
(2) by striking ``$1,000'' in subsection (b) and inserting
``$5,000''.
(c) Effective Date.--The amendments made by this section shall
apply to documents prepared after the date of the enactment of this
Act.
SEC. 5622. PENALTY ON FAILURE TO REPORT INTERESTS IN FOREIGN FINANCIAL
ACCOUNTS.
(a) In General.--Section 5321(a)(5) of title 31, United States
Code, is amended to read as follows:
``(5) Foreign financial agency transaction violation.--
``(A) Penalty authorized.--The Secretary of the
Treasury may impose a civil money penalty on any person
who violates, or causes any violation of, any provision
of section 5314.
``(B) Amount of penalty.--
``(i) In general.--Except as provided in
subparagraph (C), the amount of any civil
penalty imposed under subparagraph (A) shall
not exceed $5,000.
``(ii) Reasonable cause exception.--No
penalty shall be imposed under subparagraph (A)
with respect to any violation if--
``(I) such violation was due to
reasonable cause, and
``(II) the amount of the
transaction or the balance in the
account at the time of the transaction
was properly reported.
``(C) Willful violations.--In the case of any
person willfully violating, or willfully causing any
violation of, any provision of section 5314--
``(i) the maximum penalty under
subparagraph (B)(i) shall be increased to the
greater of--
``(I) $25,000, or
``(II) the amount (not exceeding
$100,000) determined under subparagraph
(D), and
``(ii) subparagraph (B)(ii) shall not
apply.
``(D) Amount.--The amount determined under this
subparagraph is--
``(i) in the case of a violation involving
a transaction, the amount of the transaction,
or
``(ii) in the case of a violation involving
a failure to report the existence of an account
or any identifying information required to be
provided with respect to an account, the
balance in the account at the time of the
violation.''.
(b) Effective Date.--The amendment made by this section shall apply
to violations occurring after the date of the enactment of this Act.
SEC. 5623. FRIVOLOUS TAX SUBMISSIONS.
(a) Civil Penalties.--Section 6702 is amended to read as follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
``(a) Civil Penalty for Frivolous Tax Returns.--A person shall pay
a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the
substantial correctness of the self-assessment may be
judged, or
``(B) contains information that on its face
indicates that the self-assessment is substantially
incorrect; and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary
has identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term
`specified frivolous submission' means a specified
submission if any portion of such submission--
``(i) is based on a position which the
Secretary has identified as frivolous under
subsection (c), or
``(ii) reflects a desire to delay or impede
the administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--
``(I) section 6320 (relating to
notice and opportunity for hearing upon
filing of notice of lien), or
``(II) section 6330 (relating to
notice and opportunity for hearing
before levy), and
``(ii) an application under--
``(I) section 6159 (relating to
agreements for payment of tax liability
in installments),
``(II) section 7122 (relating to
compromises), or
``(III) section 7811 (relating to
taxpayer assistance orders).
``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a specified
frivolous submission and such person withdraws such submission
within 30 days after such notice, the penalty imposed under
paragraph (1) shall not apply with respect to such submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically revise) a list of positions which the
Secretary has identified as being frivolous for purposes of this
subsection. The Secretary shall not include in such list any position
that the Secretary determines meets the requirement of section
6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the amount of
any penalty imposed under this section if the Secretary determines that
such reduction would promote compliance with and administration of the
Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The penalties
imposed by this section shall be in addition to any other penalty
provided by law.''.
(b) Treatment of Frivolous Requests for Hearings Before Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding any
other provision of this section, if the Secretary determines that any
portion of a request for a hearing under this section or section 6320
meets the requirement of clause (i) or (ii) of section 6702(b)(2)(A),
then the Secretary may treat such portion as if it were never submitted
and such portion shall not be subject to any further administrative or
judicial review.''.
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first
sentence and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i)
or (ii) of section 6702(b)(2)(A).''.
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon Filing of
Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-Compromise
and Installment Agreements.--Section 7122 is amended by adding at the
end the following new subsection:
``(e) Frivolous Submissions, Etc.--Notwithstanding any other
provision of this section, if the Secretary determines that any portion
of an application for an offer-in-compromise or installment agreement
submitted under this section or section 6159 meets the requirement of
clause (i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial review.''.
(e) Clerical Amendment.--The table of sections for part I of
subchapter B of chapter 68 is amended by striking the item relating to
section 6702 and inserting the following new item:
``Sec. 6702. Frivolous tax submissions.''.
(f) Effective Date.--The amendments made by this section shall
apply to submissions made and issues raised after the date on which the
Secretary first prescribes a list under section 6702(c) of the Internal
Revenue Code of 1986, as amended by subsection (a).
SEC. 5624. REGULATION OF INDIVIDUALS PRACTICING BEFORE THE DEPARTMENT
OF TREASURY.
(a) Censure; Imposition of Penalty.--
(1) In general.--Section 330(b) of title 31, United States
Code, is amended--
(A) by inserting ``, or censure,'' after
``Department'', and
(B) by adding at the end the following new flush
sentence:
``The Secretary may impose a monetary penalty on any representative
described in the preceding sentence. If the representative was acting
on behalf of an employer or any firm or other entity in connection with
the conduct giving rise to such penalty, the Secretary may impose a
monetary penalty on such employer, firm, or entity if it knew, or
reasonably should have known, of such conduct. Such penalty shall not
exceed the gross income derived (or to be derived) from the conduct
giving rise to the penalty and may be in addition to, or in lieu of,
any suspension, disbarment, or censure of the representative.''.
(2) Effective date.--The amendments made by this subsection
shall apply to actions taken after the date of the enactment of
this Act.
(b) Tax Shelter Opinions, Etc.--Section 330 of such title 31 is
amended by adding at the end the following new subsection:
``(d) Nothing in this section or in any other provision of law
shall be construed to limit the authority of the Secretary of the
Treasury to impose standards applicable to the rendering of written
advice with respect to any entity, transaction plan or arrangement, or
other plan or arrangement, which is of a type which the Secretary
determines as having a potential for tax avoidance or evasion.''.
SEC. 5625. PENALTY ON PROMOTERS OF TAX SHELTERS.
(a) Penalty on Promoting Abusive Tax Shelters.--Section 6700(a) is
amended by adding at the end the following new sentence:
``Notwithstanding the first sentence, if an activity with respect to
which a penalty imposed under this subsection involves a statement
described in paragraph (2)(A), the amount of the penalty shall be equal
to 50 percent of the gross income derived (or to be derived) from such
activity by the person on which the penalty is imposed.''.
(b) Effective Date.--The amendment made by this section shall apply
to activities after the date of the enactment of this Act.
SEC. 5626. STATUTE OF LIMITATIONS FOR TAXABLE YEARS FOR WHICH REQUIRED
LISTED TRANSACTIONS NOT REPORTED.
(a) In General.--Section 6501(c) (relating to exceptions) is
amended by adding at the end the following new paragraph:
``(10) Listed transactions.--If a taxpayer fails to include
on any return or statement for any taxable year any information
with respect to a listed transaction (as defined in section
6707A(c)(2)) which is required under section 6011 to be
included with such return or statement, the time for assessment
of any tax imposed by this title with respect to such
transaction shall not expire before the date which is 1 year
after the earlier of--
``(A) the date on which the Secretary is furnished
the information so required; or
``(B) the date that a material advisor (as defined
in section 6111) meets the requirements of section 6112
with respect to a request by the Secretary under
section 6112(b) relating to such transaction with
respect to such taxpayer.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years with respect to which the period for assessing a
deficiency did not expire before the date of the enactment of this Act.
SEC. 5627. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS
ATTRIBUTABLE TO NONDISCLOSED REPORTABLE AND NONECONOMIC
SUBSTANCE TRANSACTIONS.
(a) In General.--Section 163 (relating to deduction for interest)
is amended by redesignating subsection (m) as subsection (n) and by
inserting after subsection (l) the following new subsection:
``(m) Interest on Unpaid Taxes Attributable To Nondisclosed
Reportable Transactions and Noneconomic Substance Transactions.--No
deduction shall be allowed under this chapter for any interest paid or
accrued under section 6601 on any underpayment of tax which is
attributable to--
``(1) the portion of any reportable transaction
understatement (as defined in section 6662A(b)) with respect to
which the requirement of section 6664(d)(2)(A) is not met, or
``(2) any noneconomic substance transaction understatement
(as defined in section 6662B(c)).''.
(b) Effective Date.--The amendments made by this section shall
apply to transactions in taxable years beginning after the date of the
enactment of this Act.
SEC. 5628. AUTHORIZATION OF APPROPRIATIONS FOR TAX LAW ENFORCEMENT.
There is authorized to be appropriated $300,000,000 for each fiscal
year beginning after September 30, 2003, for the purpose of carrying
out tax law enforcement to combat tax avoidance transactions and other
tax shelters, including the use of offshore financial accounts to
conceal taxable income.
PART III--OTHER CORPORATE GOVERNANCE PROVISIONS
SEC. 5631. AFFIRMATION OF CONSOLIDATED RETURN REGULATION AUTHORITY.
(a) In General.--Section 1502 (relating to consolidated return
regulations) is amended by adding at the end the following new
sentence: ``In prescribing such regulations, the Secretary may
prescribe rules applicable to corporations filing consolidated returns
under section 1501 that are different from other provisions of this
title that would apply if such corporations filed separate returns.''.
(b) Result Not Overturned.--Notwithstanding subsection (a), the
Internal Revenue Code of 1986 shall be construed by treating Treasury
regulation Sec. 1.1502-20(c)(1)(iii) (as in effect on January 1, 2001)
as being inapplicable to the type of factual situation in 255 F.3d 1357
(Fed. Cir. 2001).
(c) Effective Date.--The provisions of this section shall apply to
taxable years beginning before, on, or after the date of the enactment
of this Act.
SEC. 5632. DECLARATION BY CHIEF EXECUTIVE OFFICER RELATING TO FEDERAL
ANNUAL CORPORATE INCOME TAX RETURN.
(a) In General.--The Federal tax return of a corporation with
respect to income shall also include a declaration signed by the chief
executive officer of such corporation (or other such officer of the
corporation as the Secretary of the Treasury may designate if the
corporation does not have a chief executive officer), under penalties
of perjury, that the chief executive officer has established processes
and procedures that ensure that such return complies with the Internal
Revenue Code of 1986 and that the chief executive officer was provided
reasonable assurance of the accuracy of all material aspects of such
return. The preceding sentence shall not apply to any return of a
regulated investment company (within the meaning of section 851 of such
Code).
(b) Effective Date.--This section shall apply to Federal tax
returns filed after the date of the enactment of this Act.
SEC. 5633. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES, AND OTHER
AMOUNTS.
(a) In General.--Subsection (f) of section 162 (relating to trade
or business expenses) is amended to read as follows:
``(f) Fines, Penalties, and Other Amounts.--
``(1) In general.--Except as provided in paragraph (2), no
deduction otherwise allowable shall be allowed under this
chapter for any amount paid or incurred (whether by suit,
agreement, or otherwise) to, or at the direction of, a
government or entity described in paragraph (4) in relation to
the violation of any law or the investigation or inquiry by
such government or entity into the potential violation of any
law.
``(2) Exception for amounts constituting restitution.--
Paragraph (1) shall not apply to any amount which the taxpayer
establishes constitutes restitution for damage or harm caused
by the violation of any law or the potential violation of any
law. This paragraph shall not apply to any amount paid or
incurred as reimbursement to the government or entity for the
costs of any investigation or litigation.
``(3) Exception for amounts paid or incurred as the result
of certain court orders.--Paragraph (1) shall not apply to any
amount paid or incurred by order of a court in a suit in which
no government or entity described in paragraph (4) is a party.
``(4) Certain nongovernmental regulatory entities.--An
entity is described in this paragraph if it is--
``(A) a nongovernmental entity which exercises
self-regulatory powers (including imposing sanctions)
in connection with a qualified board or exchange (as
defined in section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory
powers (including imposing sanctions) as part of
performing an essential governmental function.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after April 27, 2003, except that such
amendment shall not apply to amounts paid or incurred under any binding
order or agreement entered into on or before April 27, 2003. Such
exception shall not apply to an order or agreement requiring court
approval unless the approval was obtained on or before April 27, 2003.
SEC. 5634. DISALLOWANCE OF DEDUCTION FOR PUNITIVE DAMAGES.
(a) Disallowance of Deduction.--
(1) In general.--Section 162(g) (relating to treble damage
payments under the antitrust laws) is amended by adding at the
end the following new paragraph:
``(2) Punitive damages.--No deduction shall be allowed
under this chapter for any amount paid or incurred for punitive
damages in connection with any judgment in, or settlement of,
any action. This paragraph shall not apply to punitive damages
described in section 104(c).''.
(2) Conforming amendments.--
(A) Section 162(g) is amended--
(i) by striking ``If'' and inserting:
``(1) Treble damages.--If'', and
(ii) by redesignating paragraphs (1) and
(2) as subparagraphs (A) and (B), respectively.
(B) The heading for section 162(g) is amended by
inserting ``or Punitive Damages'' after ``Laws''.
(b) Inclusion in Income of Punitive Damages Paid by Insurer or
Otherwise.--
(1) In general.--Part II of subchapter B of chapter 1
(relating to items specifically included in gross income) is
amended by adding at the end the following new section:
``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR OTHERWISE.
``Gross income shall include any amount paid to or on behalf of a
taxpayer as insurance or otherwise by reason of the taxpayer's
liability (or agreement) to pay punitive damages.''.
(2) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(f) Section To Apply to Punitive Damages Compensation.--This
section shall apply to payments by a person to or on behalf of another
person as insurance or otherwise by reason of the other person's
liability (or agreement) to pay punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the end
the following new item:
``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
(c) Effective Date.--The amendments made by this section shall
apply to damages paid or incurred on or after the date of the enactment
of this Act.
SEC. 5635. INCREASE IN CRIMINAL MONETARY PENALTY LIMITATION FOR THE
UNDERPAYMENT OR OVERPAYMENT OF TAX DUE TO FRAUD.
(a) In General.--Section 7206 (relating to fraud and false
statements) is amended--
(1) by striking ``Any person who--'' and inserting ``(a) In
General.--Any person who--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due To Fraud.--If any portion of any underpayment
(as defined in section 6664(a)) or overpayment (as defined in section
6401(a)) of tax required to be shown on a return is attributable to
fraudulent action described in subsection (a), the applicable dollar
amount under subsection (a) shall in no event be less than an amount
equal to such portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so attributable.''.
(b) Increase in Penalties.--
(1) Attempt to evade or defeat tax.--Section 7201 is
amended--
(A) by striking ``$100,000'' and inserting
``$250,000'',
(B) by striking ``$500,000'' and inserting
``$1,000,000'', and
(C) by striking ``5 years'' and inserting ``10
years''.
(2) Willful failure to file return, supply information, or
pay tax.--Section 7203 is amended--
(A) in the first sentence--
(i) by striking ``misdemeanor'' and
inserting ``felony'', and
(ii) by striking ``1 year'' and inserting
``10 years'', and
(B) by striking the third sentence.
(3) Fraud and false statements.--Section 7206(a) (as
redesignated by subsection (a)) is amended--
(A) by striking ``$100,000'' and inserting
``$250,000'',
(B) by striking ``$500,000'' and inserting
``$1,000,000'', and
(C) by striking ``3 years'' and inserting ``5
years''.
(c) Effective Date.--The amendments made by this section shall
apply to underpayments and overpayments attributable to actions
occurring after the date of the enactment of this Act.
SEC. 5636. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST ON
UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE FINANCIAL
ARRANGEMENTS.
(a) General Rule.--If--
(1) a taxpayer eligible to participate in--
(A) the Department of the Treasury's Offshore
Voluntary Compliance Initiative, or
(B) the Department of the Treasury's voluntary
disclosure initiative which applies to the taxpayer by
reason of the taxpayer's underreporting of United
States income tax liability through financial
arrangements which rely on the use of offshore
arrangements which were the subject of the initiative
described in subparagraph (A), and
(2) any interest or applicable penalty is imposed with
respect to any arrangement to which any initiative described in
paragraph (1) applied or to any underpayment of Federal income
tax attributable to items arising in connection with any
arrangement described in paragraph (1),
then, notwithstanding any other provision of law, the amount of such
interest or penalty shall be equal to twice that determined without
regard to this section.
(b) Definitions and Rules.--For purposes of this section--
(1) Applicable penalty.--The term ``applicable penalty''
means any penalty, addition to tax, or fine imposed under
chapter 68 of the Internal Revenue Code of 1986.
(2) Voluntary offshore compliance initiative.--The term
``Voluntary Offshore Compliance Initiative'' means the program
established by the Department of the Treasury in January of
2003 under which any taxpayer was eligible to voluntarily
disclose previously undisclosed income on assets placed in
offshore accounts and accessed through credit card and other
financial arrangements.
(3) Participation.--A taxpayer shall be treated as having
participated in the Voluntary Offshore Compliance Initiative if
the taxpayer submitted the request in a timely manner and all
information requested by the Secretary of the Treasury or his
delegate within a reasonable period of time following the
request.
(c) Effective Date.--The provisions of this section shall apply to
interest, penalties, additions to tax, and fines with respect to any
taxable year if as of the date of the enactment of this Act, the
assessment of any tax, penalty, or interest with respect to such
taxable year is not prevented by the operation of any law or rule of
law.
PART IV--ENRON-RELATED TAX SHELTER PROVISIONS
SEC. 5641. LIMITATION ON TRANSFER OR IMPORTATION OF BUILT-IN LOSSES.
(a) In General.--Section 362 (relating to basis to corporations) is
amended by adding at the end the following new subsection:
``(e) Limitations on Built-In Losses.--
``(1) Limitation on importation of built-in losses.--
``(A) In general.--If in any transaction described
in subsection (a) or (b) there would (but for this
subsection) be an importation of a net built-in loss,
the basis of each property described in subparagraph
(B) which is acquired in such transaction shall
(notwithstanding subsections (a) and (b)) be its fair
market value immediately after such transaction.
``(B) Property described.--For purposes of
subparagraph (A), property is described in this
subparagraph if--
``(i) gain or loss with respect to such
property is not subject to tax under this
subtitle in the hands of the transferor
immediately before the transfer, and
``(ii) gain or loss with respect to such
property is subject to such tax in the hands of
the transferee immediately after such transfer.
In any case in which the transferor is a partnership,
the preceding sentence shall be applied by treating
each partner in such partnership as holding such
partner's proportionate share of the property of such
partnership.
``(C) Importation of net built-in loss.--For
purposes of subparagraph (A), there is an importation
of a net built-in loss in a transaction if the
transferee's aggregate adjusted bases of property
described in subparagraph (B) which is transferred in
such transaction would (but for this paragraph) exceed
the fair market value of such property immediately
after such transaction.''.
``(2) Limitation on transfer of built-in losses in section
351 transactions.--
``(A) In general.--If--
``(i) property is transferred by a
transferor in any transaction which is
described in subsection (a) and which is not
described in paragraph (1) of this subsection,
and
``(ii) the transferee's aggregate adjusted
bases of such property so transferred would
(but for this paragraph) exceed the fair market
value of such property immediately after such
transaction,
then, notwithstanding subsection (a), the transferee's
aggregate adjusted bases of the property so transferred
shall not exceed the fair market value of such property
immediately after such transaction.
``(B) Allocation of basis reduction.--The aggregate
reduction in basis by reason of subparagraph (A) shall
be allocated among the property so transferred in
proportion to their respective built-in losses
immediately before the transaction.
``(C) Exception for transfers within affiliated
group.--Subparagraph (A) shall not apply to any
transaction if the transferor owns stock in the
transferee meeting the requirements of section
1504(a)(2). In the case of property to which
subparagraph (A) does not apply by reason of the
preceding sentence, the transferor's basis in the stock
received for such property shall not exceed its fair
market value immediately after the transfer.''.
(b) Comparable Treatment Where Liquidation.--Paragraph (1) of
section 334(b) (relating to liquidation of subsidiary) is amended to
read as follows:
``(1) In general.--If property is received by a corporate
distributee in a distribution in a complete liquidation to
which section 332 applies (or in a transfer described in
section 337(b)(1)), the basis of such property in the hands of
such distributee shall be the same as it would be in the hands
of the transferor; except that the basis of such property in
the hands of such distributee shall be the fair market value of
the property at the time of the distribution--
``(A) in any case in which gain or loss is
recognized by the liquidating corporation with respect
to such property, or
``(B) in any case in which the liquidating
corporation is a foreign corporation, the corporate
distributee is a domestic corporation, and the
corporate distributee's aggregate adjusted bases of
property described in section 362(e)(1)(B) which is
distributed in such liquidation would (but for this
subparagraph) exceed the fair market value of such
property immediately after such liquidation.''.
(c) Effective Date.--The amendments made by this section shall
apply to transactions after February 13, 2003.
SEC. 5642. NO REDUCTION OF BASIS UNDER SECTION 734 IN STOCK HELD BY
PARTNERSHIP IN CORPORATE PARTNER.
(a) In General.--Section 755 is amended by adding at the end the
following new subsection:
``(c) No Allocation of Basis Decrease to Stock of Corporate
Partner.--In making an allocation under subsection (a) of any decrease
in the adjusted basis of partnership property under section 734(b)--
``(1) no allocation may be made to stock in a corporation
(or any person which is related (within the meaning of section
267(b) or 707(b)(1)) to such corporation) which is a partner in
the partnership, and
``(2) any amount not allocable to stock by reason of
paragraph (1) shall be allocated under subsection (a) to other
partnership property in such manner as the Secretary may
prescribe.
Gain shall be recognized to the partnership to the extent that the
amount required to be allocated under paragraph (2) to other
partnership property exceeds the aggregate adjusted basis of such other
property immediately before the allocation required by paragraph
(2).''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions after February 13, 2003.
SEC. 5643. REPEAL OF SPECIAL RULES FOR FASITS.
(a) In General.--Part V of subchapter M of chapter 1 (relating to
financial asset securitization investment trusts) is hereby repealed.
(b) Conforming Amendments.--
(1) Paragraph (6) of section 56(g) is amended by striking
``REMIC, or FASIT'' and inserting ``or REMIC''.
(2) Clause (ii) of section 382(l)(4)(B) is amended by
striking ``a REMIC to which part IV of subchapter M applies, or
a FASIT to which part V of subchapter M applies,'' and
inserting ``or a REMIC to which part IV of subchapter M
applies,''.
(3) Paragraph (1) of section 582(c) is amended by striking
``, and any regular interest in a FASIT,''.
(4) Subparagraph (E) of section 856(c)(5) is amended by
striking the last sentence.
(5)(A) Section 860G(a)(1) is amended by adding at the end
the following new sentence: ``An interest shall not fail to
qualify as a regular interest solely because the specified
principal amount of the regular interest (or the amount of
interest accrued on the regular interest) can be reduced as a
result of the nonoccurrence of 1 or more contingent payments
with respect to any reverse mortgage loan held by the REMIC if,
on the startup day for the REMIC, the sponsor reasonably
believes that all principal and interest due under the regular
interest will be paid at or prior to the liquidation of the
REMIC.''.
(B) The last sentence of section 860G(a)(3) is amended by
inserting ``, and any reverse mortgage loan (and each balance
increase on such loan meeting the requirements of subparagraph
(A)(iii)) shall be treated as an obligation secured by an
interest in real property'' before the period at the end.
(6) Paragraph (3) of section 860G(a) is amended by adding
``and'' at the end of subparagraph (B), by striking ``, and''
at the end of subparagraph (C) and inserting a period, and by
striking subparagraph (D).
(7) Section 860G(a)(3), as amended by paragraph (6), is
amended by adding at the end the following new sentence: ``For
purposes of subparagraph (A), if more than 50 percent of the
obligations transferred to, or purchased by, the REMIC are
originated by the United States or any State (or any political
subdivision, agency, or instrumentality of the United States or
any State) and are principally secured by an interest in real
property, then each obligation transferred to, or purchased by,
the REMIC shall be treated as secured by an interest in real
property.''.
(8)(A) Section 860G(a)(3)(A) is amended by striking ``or''
at the end of clause (i), by inserting ``or'' at the end of
clause (ii), and by inserting after clause (ii) the following
new clause:
``(iii) represents an increase in the
principal amount under the original terms of an
obligation described in clause (i) or (ii) if
such increase--
``(I) is attributable to an advance
made to the obligor pursuant to the
original terms of the obligation,
``(II) occurs after the startup
day, and
``(III) is purchased by the REMIC
pursuant to a fixed price contract in
effect on the startup day.''.
(B) Section 860G(a)(7)(B) is amended to read as follows:
``(B) Qualified reserve fund.--For purposes of
subparagraph (A), the term `qualified reserve fund'
means any reasonably required reserve to--
``(i) provide for full payment of expenses
of the REMIC or amounts due on regular
interests in the event of defaults on qualified
mortgages or lower than expected returns on
cash flow investments, or
``(ii) provide a source of funds for the
purchase of obligations described in clause
(ii) or (iii) of paragraph (3)(A).
The aggregate fair market value of the assets held in
any such reserve shall not exceed 50 percent of the
aggregate fair market value of all of the assets of the
REMIC on the startup day, and the amount of any such
reserve shall be promptly and appropriately reduced to
the extent the amount held in such reserve is no longer
reasonably required for purposes specified in clause
(i) or (ii) of paragraph (3)(A).''.
(9) Subparagraph (C) of section 1202(e)(4) is amended by
striking ``REMIC, or FASIT'' and inserting ``or REMIC''.
(10) Clause (xi) of section 7701(a)(19)(C) is amended--
(A) by striking ``and any regular interest in a
FASIT,'', and
(B) by striking ``or FASIT'' each place it appears.
(11) The table of parts for subchapter M of chapter 1 is
amended by striking the item relating to part V.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on February
14, 2003.
(2) Exception for existing fasits.--Paragraph (1) shall not
apply to any FASIT in existence on the date of the enactment of
this Act to the extent that regular interests issued by the
FASIT before such date continue to remain outstanding in
accordance with the original terms of issuance.
SEC. 5644. EXPANDED DISALLOWANCE OF DEDUCTION FOR INTEREST ON
CONVERTIBLE DEBT.
(a) In General.--Paragraph (2) of section 163(l) is amended by
striking ``or a related party'' and inserting ``or equity held by the
issuer (or any related party) in any other person''.
(b) Capitalization Allowed With Respect to Equity of Persons Other
Than Issuer and Related Parties.--Section 163(l) is amended by
redesignating paragraphs (4) and (5) as paragraphs (5) and (6) and by
inserting after paragraph (3) the following new paragraph:
``(4) Capitalization allowed with respect to equity of
persons other than issuer and related parties.--If the
disqualified debt instrument of a corporation is payable in
equity held by the issuer (or any related party) in any other
person (other than a related party), the basis of such equity
shall be increased by the amount not allowed as a deduction by
reason of paragraph (1) with respect to the instrument.''.
(c) Exception for Certain Instruments Issued By Dealers In
Securities.--Section 163(l), as amended by subsection (b), is amended
by redesignating paragraphs (5) and (6) as paragraphs (6) and (7) and
by inserting after paragraph (4) the following new paragraph:
``(5) Exception for certain instruments issued by dealers
in securities.--For purposes of this subsection, the term
`disqualified debt instrument' does not include indebtedness
issued by a dealer in securities (or a related party) which is
payable in, or by reference to, equity (other than equity of
the issuer or a related party) held by such dealer in its
capacity as a dealer in securities. For purposes of this
paragraph, the term `dealer in securities' has the meaning
given such term by section 475.''.
(c) Conforming Amendments.--Paragraph (3) of section 163(l) is
amended--
(1) by striking ``or a related party'' in the material
preceding subparagraph (A) and inserting ``or any other
person'', and
(2) by striking ``or interest'' each place it appears.
(d) Effective Date.--The amendments made by this section shall
apply to debt instruments issued after February 13, 2003.
SEC. 5645. EXPANDED AUTHORITY TO DISALLOW TAX BENEFITS UNDER SECTION
269.
(a) In General.--Subsection (a) of section 269 (relating to
acquisitions made to evade or avoid income tax) is amended to read as
follows:
``(a) In General.--If--
``(1)(A) any person or persons acquire, directly or
indirectly, control of a corporation, or
``(B) any corporation acquires, directly or indirectly,
property of another corporation and the basis of such property,
in the hands of the acquiring corporation, is determined by
reference to the basis in the hands of the transferor
corporation, and
``(2) the principal purpose for which such acquisition was
made is evasion or avoidance of Federal income tax,
then the Secretary may disallow such deduction, credit, or other
allowance. For purposes of paragraph (1)(A), control means the
ownership of stock possessing at least 50 percent of the total combined
voting power of all classes of stock entitled to vote or at least 50
percent of the total value of all shares of all classes of stock of the
corporation.''.
(b) Effective Date.--The amendment made by this section shall apply
to stock and property acquired after February 13, 2003.
SEC. 5646. MODIFICATION OF INTERACTION BETWEEN SUBPART F AND PASSIVE
FOREIGN INVESTMENT COMPANY RULES.
(a) Limitation on Exception From PFIC Rules for United States
Shareholders of Controlled Foreign Corporations.--Paragraph (2) of
section 1297(e) (relating to passive foreign investment company) is
amended by adding at the end the following flush sentence:
``Such term shall not include any period if the earning
of subpart F income by such corporation during such
period would result in only a remote likelihood of an
inclusion in gross income under section
951(a)(1)(A)(i).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years of controlled foreign corporations beginning after
February 13, 2003, and to taxable years of United States shareholders
with or within which such taxable years of controlled foreign
corporations end.
PART V--PROVISIONS TO DISCOURAGE EXPATRIATION
SEC. 5651. TAX TREATMENT OF INVERTED CORPORATE ENTITIES.
(a) In General.--Subchapter C of chapter 80 (relating to provisions
affecting more than one subtitle) is amended by adding at the end the
following new section:
``SEC. 7874. RULES RELATING TO INVERTED CORPORATE ENTITIES.
``(a) Inverted Corporations Treated as Domestic Corporations.--
``(1) In general.--If a foreign incorporated entity is
treated as an inverted domestic corporation, then,
notwithstanding section 7701(a)(4), such entity shall be
treated for purposes of this title as a domestic corporation.
``(2) Inverted domestic corporation.--For purposes of this
section, a foreign incorporated entity shall be treated as an
inverted domestic corporation if, pursuant to a plan (or a
series of related transactions)--
``(A) the entity completes after March 20, 2002,
the direct or indirect acquisition of substantially all
of the properties held directly or indirectly by a
domestic corporation or substantially all of the
properties constituting a trade or business of a
domestic partnership,
``(B) after the acquisition at least 80 percent of
the stock (by vote or value) of the entity is held--
``(i) in the case of an acquisition with
respect to a domestic corporation, by former
shareholders of the domestic corporation by
reason of holding stock in the domestic
corporation, or
``(ii) in the case of an acquisition with
respect to a domestic partnership, by former
partners of the domestic partnership by reason
of holding a capital or profits interest in the
domestic partnership, and
``(C) the expanded affiliated group which after the
acquisition includes the entity does not have
substantial business activities in the foreign country
in which or under the law of which the entity is
created or organized when compared to the total
business activities of such expanded affiliated group.
Except as provided in regulations, an acquisition of properties
of a domestic corporation shall not be treated as described in
subparagraph (A) if none of the corporation's stock was readily
tradeable on an established securities market at any time
during the 4-year period ending on the date of the acquisition.
``(b) Preservation of Domestic Tax Base in Certain Inversion
Transactions to Which Subsection (a) Does Not Apply.--
``(1) In general.--If a foreign incorporated entity would
be treated as an inverted domestic corporation with respect to
an acquired entity if either--
``(A) subsection (a)(2)(A) were applied by
substituting `after December 31, 1996, and on or before
March 20, 2002' for `after March 20, 2002' and
subsection (a)(2)(B) were applied by substituting `more
than 50 percent' for `at least 80 percent', or
``(B) subsection (a)(2)(B) were applied by
substituting `more than 50 percent' for `at least 80
percent',
then the rules of subsection (c) shall apply to any inversion
gain of the acquired entity during the applicable period and
the rules of subsection (d) shall apply to any related party
transaction of the acquired entity during the applicable
period. This subsection shall not apply for any taxable year if
subsection (a) applies to such foreign incorporated entity for
such taxable year.
``(2) Acquired entity.--For purposes of this section--
``(A) In general.--The term `acquired entity' means
the domestic corporation or partnership substantially
all of the properties of which are directly or
indirectly acquired in an acquisition described in
subsection (a)(2)(A) to which this subsection applies.
``(B) Aggregation rules.--Any domestic person
bearing a relationship described in section 267(b) or
707(b) to an acquired entity shall be treated as an
acquired entity with respect to the acquisition
described in subparagraph (A).
``(3) Applicable period.--For purposes of this section--
``(A) In general.--The term `applicable period'
means the period--
``(i) beginning on the first date
properties are acquired as part of the
acquisition described in subsection (a)(2)(A)
to which this subsection applies, and
``(ii) ending on the date which is 10 years
after the last date properties are acquired as
part of such acquisition.
``(B) Special rule for inversions occurring before
march 21, 2002.--In the case of any acquired entity to
which paragraph (1)(A) applies, the applicable period
shall be the 10-year period beginning on January 1,
2003.
``(c) Tax on Inversion Gains May Not Be Offset.--If subsection (b)
applies--
``(1) In general.--The taxable income of an acquired entity
(or any expanded affiliated group which includes such entity)
for any taxable year which includes any portion of the
applicable period shall in no event be less than the inversion
gain of the entity for the taxable year.
``(2) Credits not allowed against tax on inversion gain.--
Credits shall be allowed against the tax imposed by this
chapter on an acquired entity for any taxable year described in
paragraph (1) only to the extent such tax exceeds the product
of--
``(A) the amount of the inversion gain for the
taxable year, and
``(B) the highest rate of tax specified in section
11(b)(1).
For purposes of determining the credit allowed by section 901
inversion gain shall be treated as from sources within the
United States.
``(3) Special rules for partnerships.--In the case of an
acquired entity which is a partnership--
``(A) the limitations of this subsection shall
apply at the partner rather than the partnership level,
``(B) the inversion gain of any partner for any
taxable year shall be equal to the sum of--
``(i) the partner's distributive share of
inversion gain of the partnership for such
taxable year, plus
``(ii) income or gain required to be
recognized for the taxable year by the partner
under section 367(a), 741, or 1001, or under
any other provision of chapter 1, by reason of
the transfer during the applicable period of
any partnership interest of the partner in such
partnership to the foreign incorporated entity,
and
``(C) the highest rate of tax specified in the rate
schedule applicable to the partner under chapter 1
shall be substituted for the rate of tax under
paragraph (2)(B).
``(4) Inversion gain.--For purposes of this section, the
term `inversion gain' means any income or gain required to be
recognized under section 304, 311(b), 367, 1001, or 1248, or
under any other provision of chapter 1, by reason of the
transfer during the applicable period of stock or other
properties by an acquired entity--
``(A) as part of the acquisition described in
subsection (a)(2)(A) to which subsection (b) applies,
or
``(B) after such acquisition to a foreign related
person.
The Secretary may provide that income or gain from the sale of
inventories or other transactions in the ordinary course of a
trade or business shall not be treated as inversion gain under
subparagraph (B) to the extent the Secretary determines such
treatment would not be inconsistent with the purposes of this
section.
``(5) Coordination with section 172 and minimum tax.--Rules
similar to the rules of paragraphs (3) and (4) of section
860E(a) shall apply for purposes of this section.
``(6) Statute of limitations.--
``(A) In general.--The statutory period for the
assessment of any deficiency attributable to the
inversion gain of any taxpayer for any pre-inversion
year shall not expire before the expiration of 3 years
from the date the Secretary is notified by the taxpayer
(in such manner as the Secretary may prescribe) of the
acquisition described in subsection (a)(2)(A) to which
such gain relates and such deficiency may be assessed
before the expiration of such 3-year period
notwithstanding the provisions of any other law or rule
of law which would otherwise prevent such assessment.
``(B) Pre-inversion year.--For purposes of
subparagraph (A), the term `pre-inversion year' means
any taxable year if--
``(i) any portion of the applicable period
is included in such taxable year, and
``(ii) such year ends before the taxable
year in which the acquisition described in
subsection (a)(2)(A) is completed.
``(d) Special Rules Applicable to Acquired Entities to Which
Subsection (b) Applies.--
``(1) Increases in accuracy-related penalties.--In the case
of any underpayment of tax of an acquired entity to which
subsection (b) applies--
``(A) section 6662(a) shall be applied with respect
to such underpayment by substituting `30 percent' for
`20 percent', and
``(B) if such underpayment is attributable to one
or more gross valuation understatements, the increase
in the rate of penalty under section 6662(h) shall be
to 50 percent rather than 40 percent.
``(2) Modifications of limitation on interest deduction.--
In the case of an acquired entity to which subsection (b)
applies, section 163(j) shall be applied--
``(A) without regard to paragraph (2)(A)(ii)
thereof, and
``(B) by substituting `25 percent' for `50 percent'
each place it appears in paragraph (2)(B) thereof.
``(e) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Rules for application of subsection (a)(2).--In
applying subsection (a)(2) for purposes of subsections (a) and
(b), the following rules shall apply:
``(A) Certain stock disregarded.--There shall not
be taken into account in determining ownership for
purposes of subsection (a)(2)(B)--
``(i) stock held by members of the expanded
affiliated group which includes the foreign
incorporated entity, or
``(ii) stock of such entity which is sold
in a public offering or private placement
related to the acquisition described in
subsection (a)(2)(A).
``(B) Plan deemed in certain cases.--If a foreign
incorporated entity acquires directly or indirectly
substantially all of the properties of a domestic
corporation or partnership during the 4-year period
beginning on the date which is 2 years before the
ownership requirements of subsection (a)(2)(B) are met
with respect to such domestic corporation or
partnership, such actions shall be treated as pursuant
to a plan.
``(C) Certain transfers disregarded.--The transfer
of properties or liabilities (including by contribution
or distribution) shall be disregarded if such transfers
are part of a plan a principal purpose of which is to
avoid the purposes of this section.
``(D) Special rule for related partnerships.--For
purposes of applying subsection (a)(2) to the
acquisition of a domestic partnership, except as
provided in regulations, all partnerships which are
under common control (within the meaning of section
482) shall be treated as 1 partnership.
``(E) Treatment of certain rights.--The Secretary
shall prescribe such regulations as may be necessary--
``(i) to treat warrants, options, contracts
to acquire stock, convertible debt instruments,
and other similar interests as stock, and
``(ii) to treat stock as not stock.
``(2) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group as defined in
section 1504(a) but without regard to section 1504(b)(3),
except that section 1504(a) shall be applied by substituting
`more than 50 percent' for `at least 80 percent' each place it
appears.
``(3) Foreign incorporated entity.--The term `foreign
incorporated entity' means any entity which is, or but for
subsection (a)(1) would be, treated as a foreign corporation
for purposes of this title.
``(4) Foreign related person.--The term `foreign related
person' means, with respect to any acquired entity, a foreign
person which--
``(A) bears a relationship to such entity described
in section 267(b) or 707(b), or
``(B) is under the same common control (within the
meaning of section 482) as such entity.
``(5) Subsequent acquisitions by unrelated domestic
corporations.--
``(A) In general.--Subject to such conditions,
limitations, and exceptions as the Secretary may
prescribe, if, after an acquisition described in
subsection (a)(2)(A) to which subsection (b) applies, a
domestic corporation stock of which is traded on an
established securities market acquires directly or
indirectly any properties of one or more acquired
entities in a transaction with respect to which the
requirements of subparagraph (B) are met, this section
shall cease to apply to any such acquired entity with
respect to which such requirements are met.
``(B) Requirements.--The requirements of the
subparagraph are met with respect to a transaction
involving any acquisition described in subparagraph (A)
if--
``(i) before such transaction the domestic
corporation did not have a relationship
described in section 267(b) or 707(b), and was
not under common control (within the meaning of
section 482), with the acquired entity, or any
member of an expanded affiliated group
including such entity, and
``(ii) after such transaction, such
acquired entity--
``(I) is a member of the same
expanded affiliated group which
includes the domestic corporation or
has such a relationship or is under
such common control with any member of
such group, and
``(II) is not a member of, and does
not have such a relationship and is not
under such common control with any
member of, the expanded affiliated
group which before such acquisition
included such entity.
``(f) Regulations.--The Secretary shall provide such regulations as
are necessary to carry out this section, including regulations
providing for such adjustments to the application of this section as
are necessary to prevent the avoidance of the purposes of this section,
including the avoidance of such purposes through--
``(1) the use of related persons, pass-thru or other
noncorporate entities, or other intermediaries, or
``(2) transactions designed to have persons cease to be (or
not become) members of expanded affiliated groups or related
persons.''.
(b) Information Reporting.--The Secretary of the Treasury shall
exercise the Secretary's authority under the Internal Revenue Code of
1986 to require entities involved in transactions to which section 7874
of such Code (as added by subsection (a)) applies to report to the
Secretary, shareholders, partners, and such other persons as the
Secretary may prescribe such information as is necessary to ensure the
proper tax treatment of such transactions.
(c) Conforming Amendment.--The table of sections for subchapter C
of chapter 80 is amended by adding at the end the following new item:
``Sec. 7874. Rules relating to inverted corporate entities.''.
(d) Transition Rule for Certain Regulated Investment Companies and
Unit Investment Trusts.--Notwithstanding section 7874 of the Internal
Revenue Code of 1986 (as added by subsection (a)), a regulated
investment company, or other pooled fund or trust specified by the
Secretary of the Treasury, may elect to recognize gain by reason of
section 367(a) of such Code with respect to a transaction under which a
foreign incorporated entity is treated as an inverted domestic
corporation under section 7874(a) of such Code by reason of an
acquisition completed after March 20, 2002, and before January 1, 2004.
SEC. 5652. IMPOSITION OF MARK-TO-MARKET TAX ON INDIVIDUALS WHO
EXPATRIATE.
(a) In General.--Subpart A of part II of subchapter N of chapter 1
is amended by inserting after section 877 the following new section:
``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.
``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--Except as provided in subsections
(d) and (f), all property of a covered expatriate to whom this
section applies shall be treated as sold on the day before the
expatriation date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this
title, any gain arising from such sale shall be taken
into account for the taxable year of the sale, and
``(B) any loss arising from such sale shall be
taken into account for the taxable year of the sale to
the extent otherwise provided by this title, except
that section 1091 shall not apply to any such loss.
Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into account
under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of
any individual by reason of this section shall be
reduced (but not below zero) by $600,000. For purposes
of this paragraph, allocable expatriation gain taken
into account under subsection (f)(2) shall be treated
in the same manner as an amount required to be
includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an
expatriation date occurring in any calendar
year after 2004, the $600,000 amount under
subparagraph (A) shall be increased by an
amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year,
determined by substituting `calendar
year 2003' for `calendar year 1992' in
subparagraph (B) thereof.
``(ii) Rounding rules.--If any amount after
adjustment under clause (i) is not a multiple
of $1,000, such amount shall be rounded to the
next lower multiple of $1,000.
``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects
the application of this paragraph--
``(i) this section (other than this
paragraph and subsection (i)) shall not apply
to the expatriate, but
``(ii) in the case of property to which
this section would apply but for such election,
the expatriate shall be subject to tax under
this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not
apply to an individual unless the individual--
``(i) provides security for payment of tax
in such form and manner, and in such amount, as
the Secretary may require,
``(ii) consents to the waiver of any right
of the individual under any treaty of the
United States which would preclude assessment
or collection of any tax which may be imposed
by reason of this paragraph, and
``(iii) complies with such other
requirements as the Secretary may prescribe.
``(C) Election.--An election under subparagraph (A)
shall apply to all property to which this section would
apply but for the election and, once made, shall be
irrevocable. Such election shall also apply to property
the basis of which is determined in whole or in part by
reference to the property with respect to which the
election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as sold
by reason of subsection (a), the payment of the additional tax
attributable to such property shall be postponed until the due
date of the return for the taxable year in which such property
is disposed of (or, in the case of property disposed of in a
transaction in which gain is not recognized in whole or in
part, until such other date as the Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection (a)
with respect to all property to which subsection (a) applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return of
tax imposed by this chapter for the taxable year which includes
the date of death of the expatriate (or, if earlier, the time
that the security provided with respect to the property fails
to meet the requirements of paragraph (4), unless the taxpayer
corrects such failure within the time specified by the
Secretary).
``(4) Security.--
``(A) In general.--No election may be made under
paragraph (1) with respect to any property unless
adequate security is provided to the Secretary with
respect to such property.
``(B) Adequate security.--For purposes of
subparagraph (A), security with respect to any property
shall be treated as adequate security if--
``(i) it is a bond in an amount equal to
the deferred tax amount under paragraph (2) for
the property, or
``(ii) the taxpayer otherwise establishes
to the satisfaction of the Secretary that the
security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the waiver
of any right under any treaty of the United States which would
preclude assessment or collection of any tax imposed by reason
of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage
points' in subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the
United States and a citizen of another country
and, as of the expatriation date, continues to
be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the
United States (as defined in section
7701(b)(1)(A)(ii)) during the 5 taxable years
ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United
States citizenship occurs before such individual
attains age 18\1/2\, and
``(ii) the individual has been a resident of the
United States (as so defined) for not more than 5
taxable years before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any
United States real property interest (as defined in
section 897(c)(1)), other than stock of a United States
real property holding corporation which does not, on
the day before the expatriation date, meet the
requirements of section 897(c)(2).
``(B) Specified property.--Any property or interest
in property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on
the day before the expatriation date any interest in a
retirement plan to which this paragraph applies--
``(i) such interest shall not be treated as
sold for purposes of subsection (a)(1), but
``(ii) an amount equal to the present value
of the expatriate's nonforfeitable accrued
benefit shall be treated as having been
received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In
the case of any distribution on or after the
expatriation date to or on behalf of the covered
expatriate from a plan from which the expatriate was
treated as receiving a distribution under subparagraph
(A), the amount otherwise includible in gross income by
reason of the subsequent distribution shall be reduced
by the excess of the amount includible in gross income
under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by
plan.--For purposes of this title, a retirement plan to
which this paragraph applies, and any person acting on
the plan's behalf, shall treat any subsequent
distribution described in subparagraph (B) in the same
manner as such distribution would be treated without
regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply
to--
``(i) any qualified retirement plan (as
defined in section 4974(c)),
``(ii) an eligible deferred compensation
plan (as defined in section 457(b)) of an
eligible employer described in section
457(e)(1)(A), and
``(iii) to the extent provided in
regulations, any foreign pension plan or
similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States
who--
``(i) ceases to be a lawful permanent
resident of the United States (within the
meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a
resident of a foreign country under the
provisions of a tax treaty between the United
States and the foreign country and who does not
waive the benefits of such treaty applicable to
residents of the foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United
States citizenship, or
``(B) in the case of a long-term resident of the
United States, the date of the event described in
clause (i) or (ii) of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such
individual's United States nationality before a
diplomatic or consular officer of the United States
pursuant to paragraph (5) of section 349(a) of the
Immigration and Nationality Act (8 U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the
United States Department of State a signed statement of
voluntary relinquishment of United States nationality
confirming the performance of an act of expatriation
specified in paragraph (1), (2), (3), or (4) of section
349(a) of the Immigration and Nationality Act (8 U.S.C.
1481(a)(1)-(4)),
``(C) the date the United States Department of
State issues to the individual a certificate of loss of
nationality, or
``(D) the date a court of the United States cancels
a naturalized citizen's certificate of naturalization.
Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests in
Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having
sold such interest,
``(B) such interest shall be treated as a separate
share in the trust, and
``(C)(i) such separate share shall be treated as a
separate trust consisting of the assets allocable to
such share,
``(ii) the separate trust shall be treated as
having sold its assets on the day before the
expatriation date for their fair market value and as
having distributed all of its assets to the individual
as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.
Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for liabilities
of the trust allocable to an individual's share in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described
in paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a)
shall not apply, and
``(ii) in addition to any other tax imposed
by this title, there is hereby imposed on each
distribution with respect to such interest a
tax in the amount determined under subparagraph
(B).
``(B) Amount of tax.--The amount of tax under
subparagraph (A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by
section 1(e) for the taxable year which
includes the day before the expatriation date,
multiplied by the amount of the distribution,
or
``(ii) the balance in the deferred tax
account immediately before the distribution
determined without regard to any increases
under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of
subparagraph (B)(ii)--
``(i) Opening balance.--The opening balance
in a deferred tax account with respect to any
trust interest is an amount equal to the tax
which would have been imposed on the allocable
expatriation gain with respect to the trust
interest if such gain had been included in
gross income under subsection (a).
``(ii) Increase for interest.--The balance
in the deferred tax account shall be increased
by the amount of interest determined (on the
balance in the account at the time the interest
accrues), for periods after the 90th day after
the expatriation date, by using the rates and
method applicable under section 6621 for
underpayments of tax for such periods, except
that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3
percentage points' in subparagraph (B) thereof.
``(iii) Decrease for taxes previously
paid.--The balance in the tax deferred account
shall be reduced--
``(I) by the amount of taxes
imposed by subparagraph (A) on any
distribution to the person holding the
trust interest, and
``(II) in the case of a person
holding a nonvested interest, to the
extent provided in regulations, by the
amount of taxes imposed by subparagraph
(A) on distributions from the trust
with respect to nonvested interests not
held by such person.
``(D) Allocable expatriation gain.--For purposes of
this paragraph, the allocable expatriation gain with
respect to any beneficiary's interest in a trust is the
amount of gain which would be allocable to such
beneficiary's vested and nonvested interests in the
trust if the beneficiary held directly all assets
allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by
subparagraph (A)(ii) shall be deducted and
withheld by the trustees from the distribution
to which it relates.
``(ii) Exception where failure to waive
treaty rights.--If an amount may not be
deducted and withheld under clause (i) by
reason of the distributee failing to waive any
treaty right with respect to such
distribution--
``(I) the tax imposed by
subparagraph (A)(ii) shall be imposed
on the trust and each trustee shall be
personally liable for the amount of
such tax, and
``(II) any other beneficiary of the
trust shall be entitled to recover from
the distributee the amount of such tax
imposed on the other beneficiary.
``(F) Disposition.--If a trust ceases to be a
qualified trust at any time, a covered expatriate
disposes of an interest in a qualified trust, or a
covered expatriate holding an interest in a qualified
trust dies, then, in lieu of the tax imposed by
subparagraph (A)(ii), there is hereby imposed a tax
equal to the lesser of--
``(i) the tax determined under paragraph
(1) as if the day before the expatriation date
were the date of such cessation, disposition,
or death, whichever is applicable, or
``(ii) the balance in the tax deferred
account immediately before such date.
Such tax shall be imposed on the trust and each trustee
shall be personally liable for the amount of such tax
and any other beneficiary of the trust shall be
entitled to recover from the covered expatriate or the
estate the amount of such tax imposed on the other
beneficiary.
``(G) Definitions and special rules.--For purposes
of this paragraph--
``(i) Qualified trust.--The term `qualified
trust' means a trust which is described in
section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested
interest' means any interest which, as of the
day before the expatriation date, is vested in
the beneficiary.
``(iii) Nonvested interest.--The term
`nonvested interest' means, with respect to any
beneficiary, any interest in a trust which is
not a vested interest. Such interest shall be
determined by assuming the maximum exercise of
discretion in favor of the beneficiary and the
occurrence of all contingencies in favor of the
beneficiary.
``(iv) Adjustments.--The Secretary may
provide for such adjustments to the bases of
assets in a trust or a deferred tax account,
and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan
rules.--This subsection shall not apply to an
interest in a trust which is part of a
retirement plan to which subsection (d)(2)
applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For
purposes of paragraph (1), a beneficiary's interest in
a trust shall be based upon all relevant facts and
circumstances, including the terms of the trust
instrument and any letter of wishes or similar
document, historical patterns of trust distributions,
and the existence of and functions performed by a trust
protector or any similar adviser.
``(B) Other determinations.--For purposes of this
section--
``(i) Constructive ownership.--If a
beneficiary of a trust is a corporation,
partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall
be deemed to be the trust beneficiaries for
purposes of this section.
``(ii) Taxpayer return position.--A
taxpayer shall clearly indicate on its income
tax return--
``(I) the methodology used to
determine that taxpayer's trust
interest under this section, and
``(II) if the taxpayer knows (or
has reason to know) that any other
beneficiary of such trust is using a
different methodology to determine such
beneficiary's trust interest under this
section.
``(g) Termination of Deferrals, etc.--In the case of any covered
expatriate, notwithstanding any other provision of this title--
``(1) any period during which recognition of income or gain
is deferred shall terminate on the day before the expatriation
date, and
``(2) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the unpaid
portion of such tax shall be due and payable at the time and in
the manner prescribed by the Secretary.
``(h) Imposition of Tentative Tax.--
``(1) In general.--If an individual is required to include
any amount in gross income under subsection (a) for any taxable
year, there is hereby imposed, immediately before the
expatriation date, a tax in an amount equal to the amount of
tax which would be imposed if the taxable year were a short
taxable year ending on the expatriation date.
``(2) Due date.--The due date for any tax imposed by
paragraph (1) shall be the 90th day after the expatriation
date.
``(3) Treatment of tax.--Any tax paid under paragraph (1)
shall be treated as a payment of the tax imposed by this
chapter for the taxable year to which subsection (a) applies.
``(4) Deferral of tax.--The provisions of subsection (b)
shall apply to the tax imposed by this subsection to the extent
attributable to gain includible in gross income by reason of
this section.
``(i) Special Liens for Deferred Tax Amounts.--
``(1) Imposition of lien.--
``(A) In general.--If a covered expatriate makes an
election under subsection (a)(4) or (b) which results
in the deferral of any tax imposed by reason of
subsection (a), the deferred amount (including any
interest, additional amount, addition to tax,
assessable penalty, and costs attributable to the
deferred amount) shall be a lien in favor of the United
States on all property of the expatriate located in the
United States (without regard to whether this section
applies to the property).
``(B) Deferred amount.--For purposes of this
subsection, the deferred amount is the amount of the
increase in the covered expatriate's income tax which,
but for the election under subsection (a)(4) or (b),
would have occurred by reason of this section for the
taxable year including the expatriation date.
``(2) Period of lien.--The lien imposed by this subsection
shall arise on the expatriation date and continue until--
``(A) the liability for tax by reason of this
section is satisfied or has become unenforceable by
reason of lapse of time, or
``(B) it is established to the satisfaction of the
Secretary that no further tax liability may arise by
reason of this section.
``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''.
(b) Inclusion in Income of Gifts and Bequests Received by United
States Citizens and Residents From Expatriates.--Section 102 (relating
to gifts, etc. not included in gross income) is amended by adding at
the end the following new subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate after
the expatriation date. For purposes of this subsection, any
term used in this subsection which is also used in section 877A
shall have the same meaning as when used in section 877A.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property if
either--
``(A) the gift, bequest, devise, or inheritance
is--
``(i) shown on a timely filed return of tax
imposed by chapter 12 as a taxable gift by the
covered expatriate, or
``(ii) included in the gross estate of the
covered expatriate for purposes of chapter 11
and shown on a timely filed return of tax
imposed by chapter 11 of the estate of the
covered expatriate, or
``(B) no such return was timely filed but no such
return would have been required to be filed even if the
covered expatriate were a citizen or long-term resident
of the United States.''.
(c) Definition of Termination of United States Citizenship.--
Section 7701(a) is amended by adding at the end the following new
paragraph:
``(48) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to
be treated as a United States citizen before the date
on which the individual's citizenship is treated as
relinquished under section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed
by the Secretary, subparagraph (A) shall not apply to
an individual who became at birth a citizen of the
United States and a citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with
expatriation revenue provisions.--Any alien who is a
former citizen of the United States who relinquishes
United States citizenship (within the meaning of
section 877A(e)(3) of the Internal Revenue Code of
1986) and who is not in compliance with section 877A of
such Code (relating to expatriation).''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to
disclosure of returns and return information for
purposes other than tax administration) is amended by
adding at the end the following new paragraph:
``(19) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--
(i) Technical amendments.--Paragraph (4) of
section 6103(p) of the Internal Revenue Code of
1986, as amended by section 202(b)(2)(B) of the
Trade Act of 2002 (Public Law 107-210; 116
Stat. 961), is amended by striking ``or (17)''
after ``any other person described in
subsection (l)(16)'' each place it appears and
inserting ``or (18)''.
(ii) Conforming amendments.--Section
6103(p)(4) (relating to safeguards), as amended
by clause (i), is amended by striking ``or
(18)'' after ``any other person described in
subsection (l)(16)'' each place it appears and
inserting ``(18), or (19)''.
(3) Effective dates.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by this subsection shall apply
to individuals who relinquish United States citizenship
on or after the date of the enactment of this Act.
(B) Technical amendments.--The amendments made by
paragraph (2)(B)(i) shall take effect as if included in
the amendments made by section 202(b)(2)(B) of the
Trade Act of 2002 (Public Law 107-210; 116 Stat. 961).
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(g) Application.--This section shall not apply to an expatriate
(as defined in section 877A(e)) whose expatriation date (as so defined)
occurs on or after February 2, 2004.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any expatriate
subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(F) Application.--This paragraph shall not apply
to any expatriate subject to section 877A.''.
(4)(A) Paragraph (1) of section 6039G(d) is amended by
inserting ``or 877A'' after ``section 877''.
(B) The second sentence of section 6039G(e) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``877(a))''.
(C) Section 6039G(f) is amended by inserting ``or
877A(e)(2)(B)'' after ``877(e)(1)''.
(f) Clerical Amendment.--The table of sections for subpart A of
part II of subchapter N of chapter 1 is amended by inserting after the
item relating to section 877 the following new item:
``Sec. 877A. Tax responsibilities of expatriation.''.
(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal Revenue
Code of 1986, as added by this section) whose expatriation date
(as so defined) occurs on or after February 2, 2004.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after February 2, 2004,
from an individual or the estate of an individual whose
expatriation date (as so defined) occurs after such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day after
the date of the enactment of this Act.
SEC. 5653. EXCISE TAX ON STOCK COMPENSATION OF INSIDERS IN INVERTED
CORPORATIONS.
(a) In General.--Subtitle D is amended by adding at the end the
following new chapter:
``CHAPTER 48--STOCK COMPENSATION OF INSIDERS IN INVERTED CORPORATIONS
``Sec. 5000A. Stock compensation of insiders in inverted corporations
entities.
``SEC. 5000A. STOCK COMPENSATION OF INSIDERS IN INVERTED CORPORATIONS.
``(a) Imposition of Tax.--In the case of an individual who is a
disqualified individual with respect to any inverted corporation, there
is hereby imposed on such person a tax equal to 20 percent of the value
(determined under subsection (b)) of the specified stock compensation
held (directly or indirectly) by or for the benefit of such individual
or a member of such individual's family (as defined in section 267) at
any time during the 12-month period beginning on the date which is 6
months before the inversion date.
``(b) Value.--For purposes of subsection (a)--
``(1) In general.--The value of specified stock
compensation shall be--
``(A) in the case of a stock option (or other
similar right) or any stock appreciation right, the
fair value of such option or right, and
``(B) in any other case, the fair market value of
such compensation.
``(2) Date for determining value.--The determination of
value shall be made--
``(A) in the case of specified stock compensation
held on the inversion date, on such date,
``(B) in the case of such compensation which is
canceled during the 6 months before the inversion date,
on the day before such cancellation, and
``(C) in the case of such compensation which is
granted after the inversion date, on the date such
compensation is granted.
``(c) Tax To Apply Only If Shareholder Gain Recognized.--Subsection
(a) shall apply to any disqualified individual with respect to an
inverted corporation only if gain (if any) on any stock in such
corporation is recognized in whole or part by any shareholder by reason
of the acquisition referred to in section 7874(a)(2)(A) (determined by
substituting `July 10, 2002' for `March 20, 2002') with respect to such
corporation.
``(d) Exception Where Gain Recognized on Compensation.--Subsection
(a) shall not apply to--
``(1) any stock option which is exercised on the inversion
date or during the 6-month period before such date and to the
stock acquired in such exercise, if income is recognized under
section 83 on or before the inversion date with respect to the
stock acquired pursuant to such exercise, and
``(2) any specified stock compensation which is exercised,
sold, exchanged, distributed, cashed out, or otherwise paid
during such period in a transaction in which gain or loss is
recognized in full.
``(e) Definitions.--For purposes of this section--
``(1) Disqualified individual.--The term `disqualified
individual' means, with respect to a corporation, any
individual who, at any time during the 12-month period
beginning on the date which is 6 months before the inversion
date--
``(A) is subject to the requirements of section
16(a) of the Securities Exchange Act of 1934 with
respect to such corporation, or
``(B) would be subject to such requirements if such
corporation were an issuer of equity securities
referred to in such section.
``(2) Inverted corporation; inversion date.--
``(A) Inverted corporation.--The term `inverted
corporation' means any corporation to which subsection
(a) or (b) of section 7874 applies determined--
``(i) by substituting `July 10, 2002' for
`March 20, 2002' in section 7874(a)(2)(A), and
``(ii) without regard to subsection
(b)(1)(A).
Such term includes any predecessor or successor of such
a corporation.
``(B) Inversion date.--The term `inversion date'
means, with respect to a corporation, the date on which
the corporation first becomes an inverted corporation.
``(3) Specified stock compensation.--
``(A) In general.--The term `specified stock
compensation' means payment (or right to payment)
granted by the inverted corporation (or by any member
of the expanded affiliated group which includes such
corporation) to any person in connection with the
performance of services by a disqualified individual
for such corporation or member if the value of such
payment or right is based on (or determined by
reference to) the value (or change in value) of stock
in such corporation (or any such member).
``(B) Exceptions.--Such term shall not include--
``(i) any option to which part II of
subchapter D of chapter 1 applies, or
``(ii) any payment or right to payment from
a plan referred to in section 280G(b)(6).
``(4) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group (as defined in
section 1504(a) without regard to section 1504(b)(3)); except
that section 1504(a) shall be applied by substituting `more
than 50 percent' for `at least 80 percent' each place it
appears.
``(f) Special Rules.--For purposes of this section--
``(1) Cancellation of restriction.--The cancellation of a
restriction which by its terms will never lapse shall be
treated as a grant.
``(2) Payment or reimbursement of tax by corporation
treated as specified stock compensation.--Any payment of the
tax imposed by this section directly or indirectly by the
inverted corporation or by any member of the expanded
affiliated group which includes such corporation--
``(A) shall be treated as specified stock
compensation, and
``(B) shall not be allowed as a deduction under any
provision of chapter 1.
``(3) Certain restrictions ignored.--Whether there is
specified stock compensation, and the value thereof, shall be
determined without regard to any restriction other than a
restriction which by its terms will never lapse.
``(4) Property transfers.--Any transfer of property shall
be treated as a payment and any right to a transfer of property
shall be treated as a right to a payment.
``(5) Other administrative provisions.--For purposes of
subtitle F, any tax imposed by this section shall be treated as
a tax imposed by subtitle A.
``(g) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''.
(b) Denial of Deduction.--
(1) In general.--Paragraph (6) of section 275(a) is amended
by inserting ``48,'' after ``46,''.
(2) $1,000,000 limit on deductible compensation reduced by
payment of excise tax on specified stock compensation.--
Paragraph (4) of section 162(m) is amended by adding at the end
the following new subparagraph:
``(G) Coordination with excise tax on specified
stock compensation.--The dollar limitation contained in
paragraph (1) with respect to any covered employee
shall be reduced (but not below zero) by the amount of
any payment (with respect to such employee) of the tax
imposed by section 5000A directly or indirectly by the
inverted corporation (as defined in such section) or by
any member of the expanded affiliated group (as defined
in such section) which includes such corporation.''.
(c) Conforming Amendments.--
(1) The last sentence of section 3121(v)(2)(A) is amended
by inserting before the period ``or to any specified stock
compensation (as defined in section 5000A) on which tax is
imposed by section 5000A''.
(2) The table of chapters for subtitle D is amended by
adding at the end the following new item:
``Chapter 48. Stock compensation of insiders in inverted
corporations.''.
(d) Effective Date.--The amendments made by this section shall take
effect on July 11, 2002; except that periods before such date shall not
be taken into account in applying the periods in subsections (a) and
(e)(1) of section 5000A of the Internal Revenue Code of 1986, as added
by this section.
SEC. 5654. REINSURANCE OF UNITED STATES RISKS IN FOREIGN JURISDICTIONS.
(a) In General.--Section 845(a) (relating to allocation in case of
reinsurance agreement involving tax avoidance or evasion) is amended by
striking ``source and character'' and inserting ``amount, source, or
character''.
(b) Effective Date.--The amendments made by this section shall
apply to any risk reinsured after April 11, 2002.
Subtitle H--Additional Revenue Provisions
PART I--ADMINISTRATIVE PROVISIONS
SEC. 5671. 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. 5672. 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. 5673. 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 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. 5684. 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. 5685. 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.
Subtitle I--Tax-Exempt Financing of Highway Projects and Rail-Truck
Transfer Facilities
SEC. 5691. TAX-EXEMPT FINANCING OF HIGHWAY PROJECTS AND RAIL-TRUCK
TRANSFER FACILITIES.
(a) Treatment as Exempt Facility Bond.--Subsection (a) of section
142 (relating to exempt facility bond) is amended by striking ``or'' at
the end of paragraph (12), by striking the period at the end of
paragraph (13), and by adding at the end the following:
``(14) qualified highway facilities, or
``(15) qualified surface freight transfer facilities.''.
(b) Qualified Highway Facilities and Qualified Surface Freight
Transfer Facilities.--Section 142 is amended by adding at the end the
following:
``(l) Qualified Highway and Surface Freight Transfer Facilities.--
``(1) Qualified highway facilities.--For purposes of
subsection (a)(14), the term `qualified highway facilities'
means--
``(A) any surface transportation project which
receives Federal assistance under title 23, United
States Code (as in effect on the date of the enactment
of this subsection), or
``(B) any project for an international bridge or
tunnel for which an international entity authorized
under Federal or State law is responsible and which
receives Federal assistance under such title 23.
``(2) Qualified Surface Freight Transfer Facilities.--For
purposes of subsection (a)(15), the term `qualified surface
freight transfer facilities' means facilities for the transfer
of freight from truck to rail or rail to truck (including any
temporary storage facilities directly related to such
transfers) which receives Federal assistance under either title
23 or title 49, United States Code (as in effect on the date of
the enactment of this subsection).
``(3) Aggregate face amount of tax-exempt financing for
facilities.--
``(A) In general.--An issue shall not be treated as
an issue described in subsection (a)(14) or (a)(15) if
the aggregate face amount of bonds issued by any State
pursuant thereto (when added to the aggregate face
amount of bonds previously so issued) exceeds
$15,000,000,000.
``(B) Allocation by secretary of transportation.--
The Secretary of Transportation shall allocate the
amount described in subparagraph (A) among eligible
projects described in subsections (a)(14) and (a)(15)
in such manner as the Secretary determines
appropriate.''.
(c) Exemption From General State Volume Caps.--Paragraph (3) of
section 146(g) of the Internal Revenue Code of 1986 (relating to
exception for certain bonds) is amended by striking ``or (13)'' and all
that follows through the end of the paragraph and inserting ``(13),
(14), or (15) of section 142(a), and''.
(d) Effective Date.--The amendments made by this section apply to
bonds issued after the date of the enactment of this Act.
SEC. 5692. ADDITION OF VACCINES AGAINST HEPATITIS A TO LIST OF TAXABLE
VACCINES.
(a) In General.--Section 4132(a)(1) (defining taxable vaccine) is
amended by redesignating subparagraphs (I), (J), (K), and (L) as
subparagraphs (J), (K), (L), and (M), respectively, and by inserting
after subparagraph (H) the following new subparagraph:
``(I) Any vaccine against hepatitis A.''.
(b) Conforming Amendment.--Section 9510(c)(1)(A) is amended by
striking ``October 18, 2000'' and inserting ``the date of the enactment
of the Safe, Accountable, Flexible, and Efficient Transportation Equity
Act of 2004''.
(c) Effective Date.--
(1) Sales, etc.--The amendments made by this section shall
apply to sales and uses on or after the first day of the first
month which begins more than 4 weeks after the date of the
enactment of this Act.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of sales
on or before the effective date described in such paragraph for
which delivery is made after such date, the delivery date shall
be considered the sale date.
SEC. 5693. ADDITION OF VACCINES AGAINST INFLUENZA TO LIST OF TAXABLE
VACCINES.
(a) In General.--Section 4132(a)(1) (defining taxable vaccine), as
amended by section 5692 of this Act, is amended by adding at the end
the following new subparagraph:
``(N) Any trivalent vaccine against influenza.''.
(b) Effective Date.--
(1) Sales, etc.--The amendment made by this section shall
apply to sales and uses on or after the later of--
(A) the first day of the first month which begins
more than 4 weeks after the date of the enactment of
this Act, or
(B) the date on which the Secretary of Health and
Human Services lists any vaccine against influenza for
purposes of compensation for any vaccine-related injury
or death through the Vaccine Injury Compensation Trust
Fund.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of sales
on or before the effective date described in such paragraph for
which delivery is made after such date, the delivery date shall
be considered the sale date.
SEC. 5694. 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.
TITLE VI--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
OFFSETS
SEC. 6101. SENSE OF THE SENATE ON OVERALL FEDERAL BUDGET.
It is the sense of the Senate that--
(1) comprehensive statutory budget enforcement measures,
the jurisdiction of which lies with the Senate Budget Committee
and Senate Governmental Affairs Committee, should--
(A) be enacted this year; and
(B) address all areas of the Federal budget,
including discretionary spending, direct spending, and
revenues; and
(2) special allocations for transportation or any other
categories of spending should be considered in that context and
be consistent with the rest of the Federal budget.
SEC. 6102. DISCRETIONARY SPENDING CATEGORIES.
(a) Definitions.--
(1) Highway category.--Section 250(c)(4)(B) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
900(c)(4)(B)) is amended--
(A) by striking ``Transportation Equity Act for the
21st Century'' and inserting ``Safe, Accountable,
Flexible, and Efficient Transportation Equity Act of
2004''; and
(B) by adding at the end the following:
``(v) 69-8158-0-7-401 (Motor Carrier Safety
Grants).
``(vi) 69-8159-0-7-401 (Motor Carrier
Safety Operations and Programs).''.
(2) Mass transit category.--Section 250(c)(4) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 900(c)(4)) is amended by striking subparagraph (C) and
inserting the following:
``(C) Mass transit category.--The term `mass
transit category' means the following budget accounts,
or portions of the accounts, that are subject to the
obligation limitations on contract authority provided
in the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004 or for which
appropriations are provided in accordance with
authorizations contained in that Act:
``(i) 69-1120-0-1-401 (Administrative
Expenses).
``(ii) 69-1134-0-1-401 (Capital Investment
Grants).
``(iii) 69-8191-0-7-401 (Discretionary
Grants).
``(iv) 69-1129-0-1-401 (Formula Grants).
``(v) 69-8303-0-7-401 (Formula Grants and
Research).
``(vi) 69-1127-0-1-401 (Interstate Transfer
Grants--Transit).
``(vii) 69-1125-0-1-401 (Job Access and
Reverse Commute).
``(viii) 69-1122-0-1-401 (Miscellaneous
Expired Accounts).
``(ix) 69-1139-0-1-401 (Major Capital
Investment Grants).
``(x) 69-1121-0-1-401 (Research, Training
and Human Resources).
``(xi) 69-8350-0-7-401 (Trust Fund Share of
Expenses).
``(xii) 69-1137-0-1-401 (Transit Planning
and Research).
``(xiii) 69-1136-0-1-401 (University
Transportation Research).
``(xiv) 69-1128-0-1-401 (Washington
Metropolitan Area Transit Authority).''.
(b) Highway Funding Revenue Alignment.--Section 251(b)(1)(B) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(1)(B)) is amended--
(1) in clause (i)--
(A) by inserting ``for each of fiscal years 2006
through 2009'' after ``submits the budget'';
(B) by inserting ``the obligation limitation and
outlay limit for'' after ``adjustments to''; and
(C) by striking ``provided in clause (ii)(I)(cc).''
and inserting the following: ``follows:
``(I) OMB shall take the actual
level of highway receipts for the year
before the current year and subtract
the sum of the estimated level of
highway receipts in clause (iii), plus
any amount previously calculated under
clauses (i)(II) and (ii) for that year.
``(II) OMB shall take the current
estimate of highway receipts for the
current year and subtract the estimated
level of highway receipts in clause
(iii) for that year.
``(III) OMB shall--
``(aa) take the sum of the
amounts calculated under
subclauses (I) and (II) and add
that amount to the obligation
limitation set forth in section
6103 of the Safe, Accountable,
Flexible, and Efficient
Transportation Equity Act of
2004 for the highway category
for the budget year, and
calculate the outlay change
resulting from that change in
obligations relative to that
amount for the budget year and
each outyear using current
estimates; and
``(bb) after making the
calculation under item (aa),
adjust the obligation
limitation set forth in section
6103 of the Safe, Accountable,
Flexible, and Efficient
Transportation Equity Act of
2004 for the budget year by
adding the amount calculated
under subclauses (I) and
(II).'';
(2) by striking clause (ii) and inserting the following:
``(ii) When the President submits the
supplementary budget estimates for each of
fiscal years 2006 through 2009 under section
1106 of title 31, United States Code, OMB's
Mid-Session Review shall include adjustments to
the obligation limitation and outlay limit for
the highway category for the budget year and
each outyear as follows:
``(I) OMB shall take the most
recent estimate of highway receipts for
the current year (based on OMB's Mid-
Session Review) and subtract the
estimated level of highway receipts in
clause (iii) plus any amount previously
calculated and included in the
President's Budget under clause (i)(II)
for that year.
``(II) OMB shall--
``(aa) take the amount
calculated under subclause (I)
and add that amount to the
amount of obligations set forth
in section 6103 of the Safe,
Accountable, Flexible, and
Efficient Transportation Equity
Act of 2004 for the highway
category for the budget year,
and calculate the outlay change
resulting from that change in
obligations relative to that
amount for the budget year and
each outyear using current
estimates; and
``(bb) after making the
calculation under item (aa),
adjust the amount of
obligations set forth in
section 6103 of the Safe,
Accountable, Flexible, and
Efficient Transportation Equity
Act of 2004 for the budget year
by adding the amount calculated
under subclause (I).''; and
(3) by adding at the end the following:
``(iii) The estimated level of highway
receipts for the purpose of this subparagraph
are--
``(I) for fiscal year 2004,
$29,945,938,902;
``(II) for fiscal year 2005,
$36,294,778,392;
``(III) for fiscal year 2006,
$37,766,517,123;
``(IV) for fiscal year 2007,
$38,795,061,111;
``(V) for fiscal year 2008,
$39,832,795,606; and
``(VI) for fiscal year 2009,
$40,964,722,457.
``(iv) In this subparagraph, the term
``highway receipts'' means the governmental
receipts and interest credited to the highway
account of the Highway Trust Fund.''.
(c) Continuation of Separate Spending Categories.--For the purpose
of section 251(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 901(c)), the discretionary spending limits for
the highway category and the mass transit category shall be--
(1) for fiscal year 2004--
(A) $28,876,732,956 for the highway category; and
(B) $6,262,000,000 for the mass transit category;
(2) for fiscal year 2005--
(A) $31,991,246,160 for the highway category; and
(B) $6,903,000,000 for the mass transit category;
(3) for fiscal year 2006--
(A) $35,598,640,776 for the highway category; and
(B) $7,974,000,000 for the mass transit category;
(4) for fiscal year 2007--
(A) $37,871,760,938 for the highway category; and
(B) $8,658,000,000 for the mass transit category;
(5) for fiscal year 2008--
(A) $38,722,907,474 for the highway category; and
(B) $9,222,000,000 for the mass transit category;
and
(6) for fiscal year 2009--
(A) $40,537,563,667 for the highway category; and
(B) $9,897,000,000 for the mass transit category.
(d) Additional Adjustments.--Section 251(b)(1) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(1))
is amended--
(1) in subparagraph (C)--
(A) in clause (i), by striking ``fiscal years 2000,
2001, 2002, or 2003,'' and inserting ``each of fiscal
years 2006, 2007, 2008, and 2009,''; and
(B) in clause (ii), by striking ``2002 and 2003''
and inserting ``2008 and 2009''; and
(2) in subparagraph (D)--
(A) in clause (i)--
(i) by striking ``1999'' and inserting
``2005'';
(ii) by striking ``2000 through 2003'' and
inserting ``2006 through 2009''; and
(iii) by striking ``section 8103 of the
Transportation Equity Act for the 21st
Century'' and inserting ``section 6102 of the
Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2004''; and
(B) in clause (ii), by striking ``2000, 2001, 2002,
or 2003'' and inserting ``2006, 2007, 2008, and 2009''.
SEC. 6103. LEVEL OF OBLIGATION LIMITATIONS.
(a) Highway Category.--For the purpose of section 251(b) of the
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)), the level of obligation limitations for the highway category
is--
(1) for fiscal year 2004, $34,651,000,000;
(2) for fiscal year 2005, $38,927,000,000;
(3) for fiscal year 2006, $40,186,000,000;
(4) for fiscal year 2007, $40,229,000,000;
(5) for fiscal year 2008, $40,563,000,000; and
(6) for fiscal year 2009, $45,622,000,000.
(b) Mass Transit Category.--For the purpose of section 251(b) of
the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)), the level of obligation limitations for the mass transit
category is--
(1) for fiscal year 2004, $7,265,877,000;
(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.
For the purpose of this subsection, the term ``obligation limitations''
means the sum of budget authority and obligation limitations.
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.''.
Passed the Senate February 12, 2004.
Attest:
Secretary.
108th CONGRESS
2d Session
S. 1072
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AN ACT
To authorize funds for Federal-aid highways, highway safety programs,
and transit programs, and for other purposes.
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February 26, 2004
Ordered to be printed as passed