[Congressional Bills 109th Congress]
[From the U.S. Government Printing Office]
[H.R. 3 Public Print (PP)]

                              May 18, 2005

                    Ordered to be printed as passed

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                          May 17, 2005.
      Resolved, That the bill from the House of Representatives (H.R. 
3) entitled ``An Act to authorize funds for Federal-aid highways, 
highway safety programs, and transit programs, and for other 
purposes.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

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 2005''.
    (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.
Sec. 1106. Use of excess funds and funds for inactive projects.

                        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 Interstate Highways.
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. State infrastructure banks.
Sec. 1305. Public-private partnerships pilot program.

                           Subtitle D--Safety

Sec. 1401. Highway safety improvement program.
Sec. 1402. Operation lifesaver.
Sec. 1403  Increased penalties for higher-risk drivers driving while 
                            intoxicated or driving under the influence.
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. Open container requirements.
Sec. 1410. Safe intersections.
Sec. 1411. Presidential commission on alcohol-impaired driving.
Sec. 1412. Sense of the Senate in support of increased public awareness 
                            of blood alcohol concentration levels and 
                            the dangers of drinking and driving.
Sec. 1413. Grant program for commercial driver training.

             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.
Sec. 1523. Intermodal passenger facilities.
Sec. 1524. 14th Amendment highway and 3rd infantry division highway.

                        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. Federal procurement of recycled coolant.
Sec. 1622. Clean school bus program.
Sec. 1623. Conserve by bicycling program.

                         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. Designation of transportation management areas.

                  Subtitle H--Federal-Aid Stewardship

Sec. 1801. Future Interstate System routes.
Sec. 1802. Stewardship and oversight.
Sec. 1803. Revision of regulations.
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. High-speed magnetic levitation system deployment program.
Sec. 1820. Donations and credits.
Sec. 1821. Disadvantaged business enterprises.
Sec. 1822. [Reserved].
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.
Sec. 1827. Value pricing pilot program.
Sec. 1828. Credit to State of Louisiana for State matching funds.
Sec. 1829. Approval and funding for certain construction projects.
Sec. 1830. Notice regarding participation of small business concerns.
Sec. 1831. Alaska Way viaduct study.
Sec. 1832. Bridge construction, North Dakota.
Sec. 1833. Community enhancement study.
Sec. 1834. Comprehensive coastal evacuation plan.
Sec. 1835. Priority projects.
Sec. 1836. Transportation needs, Grayling, Michigan.
Sec. 1837. US-95 Project, Las Vegas, Nevada.

                   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--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

Sec. 3101. Sense of the Senate on overall Federal budget.
Sec. 3102. Discretionary spending categories.
Sec. 3103. Level of obligation limitations.

                     TITLE IV--SOLID WASTE DISPOSAL

Sec. 4001. Increased use of recovered mineral component in federally 
                            funded projects involving procurement of 
                            cement or concrete.
Sec. 4002. Use of granular mine tailings.

     TITLE V--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

Sec. 5000. Short title; amendment of 1986 Code.

                 Subtitle A--Trust Fund Reauthorization

Sec. 5101. Extension of highway-related taxes and trust funds.
Sec. 5102. Modification of adjustments of apportionments.

            Subtitle B--Excise Tax Reform and Simplification

                      Part I--Highway Excise Taxes

Sec. 5201. Modification of gas guzzler tax.
Sec. 5202. Exclusion for tractors weighing 19,500 pounds or less from 
                            Federal excise tax on heavy trucks and 
                            trailers.
Sec. 5203. Exemption for equipment for transporting bulk beds of farm 
                            crops from excise tax on retail sale of 
                            heavy trucks and trailers.
Sec. 5204. Volumetric excise tax credit for alternative fuels.

                     Part II--Aquatic Excise Taxes

Sec. 5211. Elimination of Aquatic Resources Trust Fund and 
                            transformation of Sport Fish Restoration 
                            Account.
Sec. 5212. Repeal of harbor maintenance tax on exports.
Sec. 5213. Cap on excise tax on certain fishing equipment.

                     Part III--Aerial Excise Taxes

Sec. 5221. Clarification of excise tax exemptions for agricultural 
                            aerial applicators and exemption for fixed-
                            wing aircraft engaged in forestry 
                            operations.
Sec. 5222. Modification of rural airport definition.
Sec. 5223. Exemption from taxes on transportation provided by 
                            seaplanes.
Sec. 5224. Certain sightseeing flights exempt from taxes on air 
                            transportation.

                   Part IV--Taxes Relating to Alcohol

Sec. 5231. Repeal of special occupational taxes on producers and 
                            marketers of alcoholic beverages.
Sec. 5232. Modification of limitation on rate of rum excise tax cover 
                            over to Puerto Rico and Virgin Islands.
Sec. 5233. 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. 5234. Quarterly excise tax filing for small alcohol excise 
                            taxpayers.

                       Part V--Sport Excise Taxes

Sec. 5241. Custom gunsmiths.

                  Subtitle C--Miscellaneous Provisions

Sec. 5301. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 5302. National Surface Transportation Infrastructure Financing 
                            Commission.
Sec. 5303. Expansion of Highway Trust Fund expenditure purposes to 
                            include funding for studies of supplemental 
                            or alternative financing for the Highway 
                            Trust Fund.
Sec. 5304. Delta Regional transportation plan.
Sec. 5305. Build America Corporation.
Sec. 5306. Increase in dollar limitation for qualified transportation 
                            fringe benefits.
Sec. 5307. Treasury study of highway fuels used by trucks for non-
                            transportation purposes.
Sec. 5308. Tax-exempt financing of highway projects and rail-truck 
                            transfer facilities.
Sec. 5309. Tax treatment of State ownership of railroad real estate 
                            investment trust.
Sec. 5310. Incentives for the installation of alternative fuel 
                            refueling stations.
Sec. 5311. Modification of recapture rules for amortizable section 197 
                            intangibles.
Sec. 5312. Diesel fuel tax evasion report.

            Subtitle D--Fuels-Related Technical Corrections

Sec. 5401. Fuels-related technical corrections.

                 Subtitle E--Revenue Offset Provisions

                       Part I--General Provisions

Sec. 5501. Treatment of contingent payment convertible debt 
                            instruments.
Sec. 5502. Frivolous tax submissions.
Sec. 5503. Increase in certain criminal penalties.
Sec. 5504. Doubling of certain penalties, fines, and interest on 
                            underpayments related to certain offshore 
                            financial arrangements.
Sec. 5505. Modification of interaction between subpart F and passive 
                            foreign investment company rules.
Sec. 5506. Declaration by chief executive officer relating to Federal 
                            annual corporate income tax return.
Sec. 5507. Treasury regulations on foreign tax credit.
Sec. 5508. Whistleblower reforms.
Sec. 5509. Denial of deduction for certain fines, penalties, and other 
                            amounts.
Sec. 5510. Freeze of interest suspension rules with respect to listed 
                            transactions.
Sec. 5511. Modifications of effective dates of leasing provisions of 
                            the American Jobs Creation Act of 2004.
Sec. 5512. Imposition of mark-to-market tax on individuals who 
                            expatriate.
Sec. 5513. Disallowance of deduction for punitive damages.
Sec. 5514. Application of earnings stripping rules to partners which 
                            are C corporations.
Sec. 5515. Prohibition on deferral of gain from the exercise of stock 
                            options and restricted stock gains through 
                            deferred compensation arrangements.
Sec. 5516. Limitation of employer deduction for certain entertainment 
                            expenses.
Sec. 5517. Increase in penalty for bad checks and money orders.
Sec. 5518. Elimination of double deduction on mining exploration and 
                            development costs under the minimum tax.

                  Part II--Economic Substance Doctrine

Sec. 5521. Clarification of economic substance doctrine.
Sec. 5522. Penalty for understatements attributable to transactions 
                            lacking economic substance, etc.
Sec. 5523. Denial of deduction for interest on underpayments 
                            attributable to noneconomic substance 
                            transactions.

Part III--Improvements in Efficiency and Safeguards in Internal Revenue 
                           Service Collection

Sec. 5531. Waiver of user fee for installment agreements using 
                            automated withdrawals.
Sec. 5532. Termination of installment agreements.
Sec. 5533. Office of Chief Counsel review of offers-in-compromise.
Sec. 5534. Partial payments required with submission of offers-in-
                            compromise.
Sec. 5535. Joint task force on offers-in-compromise.

               Subtitle F--Additional Revenue Provisions

                       Part I--General Provisions

Sec. 5601. Suspension of transfers from Highway Trust Fund for certain 
                            repayments and credits.
Sec. 5602. Temporary dedication of gas guzzler tax to Highway Trust 
                            Fund.

                Part II--Provisions to Combat Fuel Fraud

Sec. 5611. Treatment of kerosene for use in aviation.
Sec. 5612. Repeal of ultimate vendor refund claims with respect to 
                            farming.
Sec. 5613. Refunds of excise taxes on exempt sales of fuel by credit 
                            card.
Sec. 5614. Additional requirement for exempt purchases.
Sec. 5615. Reregistration in event of change in ownership.
Sec. 5616. Reconciliation of on-loaded cargo to entered cargo.
Sec. 5617. Registration of deep-draft vessels.
Sec. 5618. Taxation of gasoline blendstocks and kerosene.
Sec. 5619. Nonapplication of export exemption to delivery of fuel to 
                            motor vehicles removed from United States.
Sec. 5620. Penalty with respect to certain adulterated fuels.

                    TITLE VI--PUBLIC TRANSPORTATION

Sec. 6001. Short title.
Sec. 6002. Amendments to title 49, United States Code; updated 
                            terminology.
Sec. 6003. Policies, findings, and purposes.
Sec. 6004. Definitions.
Sec. 6005. Metropolitan transportation planning.
Sec. 6006. Statewide transportation planning.
Sec. 6007. Transportation management areas.
Sec. 6008. Private enterprise participation.
Sec. 6009. Urbanized area formula grants.
Sec. 6010. Planning programs.
Sec. 6011. Capital investment program.
Sec. 6012. New freedom for elderly persons and persons with 
                            disabilities.
Sec. 6013. Formula grants for other than urbanized areas.
Sec. 6014. Research, development, demonstration, and deployment 
                            projects.
Sec. 6015. Transit cooperative research program.
Sec. 6016. National research programs.
Sec. 6017. National transit institute.
Sec. 6018. Bus testing facility.
Sec. 6019. Bicycle facilities.
Sec. 6020. Suspended light rail technology pilot project.
Sec. 6021. Crime prevention and security.
Sec. 6022. General provisions on assistance.
Sec. 6023. Special provisions for capital projects.
Sec. 6024. Contract requirements.
Sec. 6025. Project management oversight and review.
Sec. 6026. Project review.
Sec. 6027. Investigations of safety and security risk.
Sec. 6028. State safety oversight.
Sec. 6029. Terrorist attacks and other acts of violence against public 
                            transportation systems.
Sec. 6030. Controlled substances and alcohol misuse testing.
Sec. 6031. Employee protective arrangements.
Sec. 6032. Administrative procedures.
Sec. 6033. Reports and audits.
Sec. 6034. Apportionments of appropriations for formula grants.
Sec. 6035. Apportionments for fixed guideway modernization.
Sec. 6036. Authorizations.
Sec. 6037. Apportionments based on growing States formula factors.
Sec. 6038. Job access and reverse commute grants.
Sec. 6039. Over-the-road bus accessibility program.
Sec. 6040. Alternative transportation in parks and public lands.
Sec. 6041. Obligation ceiling.
Sec. 6042. Adjustments for The Surface Transportation Extension Act of 
                            2004.
Sec. 6043. Disadvantaged business enterprise.
Sec. 6044. Transit pass transportation fringe benefits.
Sec. 6045. Funding for ferry boats.
Sec. 6046. Commuter rail.

          TITLE VII--SURFACE TRANSPORTATION SAFETY IMPROVEMENT

Sec. 7001. Short title.
Sec. 7002. Amendment of United States Code.

                    Subtitle A--Motor Carrier Safety

                       Chapter 1--Motor Carriers

Sec. 7101. Short title.
Sec. 7102. Contract authority.
Sec. 7103. Authorization of appropriations.
Sec. 7104. High risk carrier compliance reviews.
Sec. 7105. Overdue reports, studies, and rulemakings.
Sec. 7106. Amendments to the listed reports, studies, and rulemaking 
                            proceedings.
Sec. 7107. Motor carrier safety grants.
Sec. 7108. Technical corrections.
Sec. 7109. Penalty for denial of access to records.
Sec. 7110. Medical program.
Sec. 7111. Operation of commercial motor vehicles by individuals who 
                            use insulin to treat diabetes mellitus.
Sec. 7112. Financial responsibility for private motor carriers.
Sec. 7113. Increased penalties for out-of-service violations and false 
                            records.
Sec. 7114. Intrastate operations of interstate motor carriers.
Sec. 7115. Authority to stop commercial motor vehicles.
Sec. 7116. Revocation of operating authority.
Sec. 7117. Pattern of safety violations by motor carrier management.
Sec. 7118. Motor carrier research and technology program.
Sec. 7119. International cooperation.
Sec. 7120. Performance and registration information system management.
Sec. 7121. Commercial vehicle information systems and networks 
                            deployment.
Sec. 7122. Outreach and education.
Sec. 7123. Foreign commercial motor vehicles.
Sec. 7124. Pre-employment safety screening.
Sec. 7125. Class or category exemptions.
Sec. 7126. Decals.
Sec. 7127. Roadability.
Sec. 7128. Motor carrier regulations.
Sec. 7129. Vehicle towing.
Sec. 7130. Certification of vehicle emission performance standards.

                Chapter 2--Unified Carrier Registration

Sec. 7131. Short title.
Sec. 7132. Relationship to other laws.
Sec. 7133. Inclusion of motor private and exempt carriers.
Sec. 7134. Unified carrier registration system.
Sec. 7135. Registration of motor carriers by States.
Sec. 7136. Identification of vehicles.
Sec. 7137. Use of UCR agreement revenues as matching funds.
Sec. 7138. Facilitation of international registration plans and 
                            international fuel tax agreements.
Sec. 7139. Identity authentication standards.
Sec. 7140. Off-duty time for drivers of commercial vehicles.

                Chapter 3--Commercial Driver's Licenses

Sec. 7151. CDL task force.
Sec. 7152. CDL learner's permit program.
Sec. 7153. Grants to States for commercial driver's license 
                            improvements.
Sec. 7154. Modernization of CDL information system.
Sec. 7155. School bus endorsement knowledge test requirement.

                Subtitle B--Highway and Vehicular Safety

Sec. 7201. Short title.

                Chapter 1--Highway Safety Grant Program

Sec. 7211. Short title.
Sec. 7212. Authorization of appropriations.
Sec. 7213. Highway safety programs.
Sec. 7214. Highway safety research and outreach programs.
Sec. 7215. National Highway Safety Advisory Committee technical 
                            correction.
Sec. 7216. Occupant protection grants.
Sec. 7217. Older driver safety; law enforcement training.
Sec. 7218. Emergency medical services.
Sec. 7219. Repeal of authority for alcohol traffic safety programs.
Sec. 7220. Impaired driving program.
Sec. 7221. State traffic safety information system improvements.
Sec. 7222. NHTSA accountability.
Sec. 7223. Grants for improving child passenger safety programs.
Sec. 7224. Motorcyclist safety training and motorist awareness 
                            programs.

           Chapter 2--Specific Vehicle Safety-related Rulings

Sec. 7251. Vehicle rollover prevention and crash mitigation.
Sec. 7252. Side-impact crash protection rulemaking.
Sec. 7253. Tire research.
Sec. 7254. Vehicle backover avoidance technology study.
Sec. 7255. Nontraffic incident data collection.
Sec. 7256. Safety belt use reminders.
Sec. 7257. Amendment of Automobile Information Disclosure Act.
Sec. 7258. Power window switches.
Sec. 7259. 15-passenger van safety.
Sec. 7260. Updated fuel economy labeling procedures.
Sec. 7261. Identification of certain alternative fueled vehicles.
Sec. 7262. Authorization of appropriations.

                    Subtitle C--Hazardous Materials

Sec. 7301. Short title.

Chapter 1--General Authorities on Transportation of Hazardous Materials

Sec. 7321. Purpose.
Sec. 7322. Definitions.
Sec. 7323. General regulatory authority.
Sec. 7324. Limitation on issuance of hazmat licenses.
Sec. 7325. Background checks for drivers hauling hazardous materials.
Sec. 7326. Representation and tampering.
Sec. 7327. Transporting certain material.
Sec. 7328. Hazmat employee training requirements and grants.
Sec. 7329. Registration.
Sec. 7330. Shipping papers and disclosure.
Sec. 7331. Rail tank cars.
Sec. 7332. Unsatisfactory safety ratings.
Sec. 7333. Training curriculum for the public sector.
Sec. 7334. Planning and training grants; emergency preparedness fund.
Sec. 7335. Special permits and exclusions.
Sec. 7336. Uniform forms and procedures.
Sec. 7337. Hazardous materials transportation safety and security.
Sec. 7338. Enforcement.
Sec. 7339. Civil penalties.
Sec. 7340. Criminal penalties.
Sec. 7341. Preemption.
Sec. 7342. Relationship to other laws.
Sec. 7343. Judicial review.
Sec. 7344. Authorization of appropriations.
Sec. 7345. Additional civil and criminal penalties.
Sec. 7346. Technical corrections.

                        Chapter 2--Other Matters

Sec. 7361. Administrative authority for Pipeline and Hazardous 
                            Materials Safety Administration.
Sec. 7362. Mailability of hazardous materials.
Sec. 7363. Criminal matters.
Sec. 7364. Cargo inspection program.
Sec. 7365. Information on hazmat registrations.
Sec. 7366. Report on applying hazardous materials regulations to 
                            persons who reject hazardous materials.
Sec. 7367. National first responder transportation incident response 
                            system.
Sec. 7368. Hazardous material transportation plan requirement.
Sec. 7369. Welded rail and tank car safety improvements.
Sec. 7370. Hazardous materials cooperative research program.

                Chapter 3--Sanitary Food Transportation

Sec. 7381. Short title.
Sec. 7382. Responsibilities of the Secretary of Health and Human 
                            Services.
Sec. 7383. Department of Transportation requirements.
Sec. 7384. Effective date.

                   Chapter 4--Household Goods Movers

Sec. 7401. Short title.
Sec. 7402. Definitions; application of provisions.
Sec. 7403. Payment of rates.
Sec. 7404. Household goods carrier operations.
Sec. 7405. Liability of carriers under receipts and bills of lading.
Sec. 7406. Arbitration requirements.
Sec. 7407. Enforcement of regulations related to transportation of 
                            household goods.
Sec. 7408. Working group for development of practices and procedures to 
                            enhance Federal-State relations.
Sec. 7409. Information about household goods transportation on 
                            carriers' websites.
Sec. 7410. Consumer complaints.
Sec. 7411. Review of liability of carriers.
Sec. 7412. Civil penalties relating to household goods brokers.
Sec. 7413. Civil and criminal penalty for failing to give up possession 
                            of household goods.
Sec. 7414. Progress report.
Sec. 7415. Additional registration requirements for motor carriers of 
                            household goods.

        Subtitle E--Sportfishing and Recreational Boating Safety

Sec. 7501. Short title.

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

Sec. 7511. Amendment of Federal Aid in Sport Fish Restoration Act.
Sec. 7512. Authorization of appropriations.
Sec. 7513. Division of annual appropriations.
Sec. 7514. Maintenance of projects.
Sec. 7515. Boating infrastructure.
Sec. 7516. Requirements and restrictions concerning use of amounts for 
                            expenses for administration.
Sec. 7517. 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. 7518. Multistate conservation grant program.
Sec. 7519. Expenditures from boat safety account.

                 Chapter 2--Clean Vessel Act Amendments

Sec. 7531. Grant program.

       Chapter 3--Recreational Boating Safety Program Amendments

Sec. 7551. State matching funds requirement.
Sec. 7552. Availability of allocations.
Sec. 7553. Authorization of appropriations for State recreational 
                            boating safety programs.
Sec. 7554. Maintenance of effort for State recreational boating safety 
                            programs.

                  Subtitle F--Miscellaneous Provisions

Sec. 7601. Office of intermodalism.
Sec. 7602. Capital grants for rail line relocation projects.
Sec. 7603. Rehabilitation and improvement financing.
Sec. 7604. Report regarding impact on public safety of train travel in 
                            communities without grade separation.
Sec. 7605. First responder vehicle safety program.
Sec. 7606. Federal school bus driver qualifications.

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 2005.
            ``(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) Inventory, 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) $6,017,113,333 for fiscal year 2005;
                    (B) $6,258,525,160 for fiscal year 2006;
                    (C) $6,276,479,750 for fiscal year 2007;
                    (D) $6,589,235,166 for fiscal year 2008; and
                    (E) $6,685,150,152 for fiscal year 2009.
            (2) National highway system.--For the National Highway 
        System under section 103 of that title--
                    (A) $7,316,858,660 for fiscal year 2005;
                    (B) $7,606,591,948 for fiscal year 2006;
                    (C) $7,628,384,160 for fiscal year 2007;
                    (D) $8,007,988,062 for fiscal year 2008; and
                    (E) $8,124,348,085 for fiscal year 2009.
            (3) Bridge program.--For the bridge program under section 
        144 of that title--
                    (A) $5,171,723,801 for fiscal year 2005;
                    (B) $5,365,009,649 for fiscal year 2006;
                    (C) $5,349,259,875 for fiscal year 2007;
                    (D) $5,647,754,080 for fiscal year 2008; and
                    (E) $5,729,786,635 for fiscal year 2009.
            (4) Surface transportation program.--For the surface 
        transportation program under section 133 of that title--
                    (A) $7,588,497,988 for fiscal year 2005;
                    (B) $7,878,361,598 for fiscal year 2006;
                    (C) $7,900,976,158 for fiscal year 2007;
                    (D) $8,294,904,735 for fiscal year 2008; and
                    (E) $8,415,808,100 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) $2,051,899,502 for fiscal year 2005;
                    (B) $2,124,435,995 for fiscal year 2006;
                    (C) $2,130,535,073 for fiscal year 2007;
                    (D) $2,236,776,417 for fiscal year 2008; and
                    (E) $2,269,463,235 for fiscal year 2009.
            (6) Highway safety improvement program.--For the highway 
        safety improvement program under section 148 of that title--
                    (A) $1,253,007,425 for fiscal year 2005;
                    (C) $1,291,977,089 for fiscal year 2006;
                    (D) $1,305,007,731 for fiscal year 2007;
                    (E) $1,369,468,771 for fiscal year 2008; and
                    (F) $1,389,408,993 for fiscal year 2009.
            (7) Appalachian development highway system program.--For 
        the Appalachian development highway system program under 
        section 170 of that title, $552,048,803 for each of fiscal 
        years 2005 through 2009.
            (8) Recreational trails program.--For the recreational 
        trails program under section 206 of that title, $56,140,557 for 
        each of fiscal years 2005 through 2009.
            (9) Federal lands highways program.--
                    (A) Indian reservation roads.--For Indian 
                reservation roads under section 204 of that title--
                            (i) $305,054,403 for fiscal year 2005;
                            (ii) $328,520,126 for fiscal year 2006;
                            (iii) $351,985,849 for fiscal year 2007;
                            (iv) $375,451,572 for fiscal year 2008; and
                            (v) $398,917,296 for fiscal year 2009.
                    (B) Recreation roads.--For recreation roads under 
                section 204 of that title, $46,931,447 for each of 
                fiscal years 2005 through 2009.
                    (C) Park roads and parkways.--
                            (i) In general.--For park roads and 
                        parkways under section 204 of that title--
                                    (I) $320,000,000 for fiscal year 
                                2005; and
                                    (II) $330,000,000 for each of 
                                fiscal years 2006 through 2009.
                            (ii) Minimum allocation to certain 
                        states.--A State more than 50 percent of the 
                        acreage of which is within the National Park 
                        System shall receive not less than 3 percent of 
                        any funds appropriated under this subparagraph, 
                        to be used for park transportation projects.
                            (iii) Modification of authorization.--Any 
                        amount authorized to be appropriated under 
                        section 2001(a)(1)(A) to carry out surface 
                        transportation research shall be reduced by--
                                    (I) for fiscal year 2005, 
                                $29,025,031; and
                                    (II) for each of fiscal years 2006 
                                through 2009, $29,638,742.
                    (D) Refuge roads.--For refuge roads under section 
                204 of that title, $29,158,868 for each of fiscal years 
                2005 through 2009.
                    (E) Public lands highways.--For Federal lands 
                highways under section 204 of that title, $281,588,679 
                for each of fiscal years 2005 through 2009.
                    (F) Safety.--For safety under section 204 of that 
                title, $37,545,157 for each of fiscal years 2005 
                through 2009.
            (10) Multistate corridor program.--For the multistate 
        corridor program under section 171 of that title--
                    (A) $124,987,840 for fiscal year 2005;
                    (B) $145,819,146 for fiscal year 2006;
                    (C) $166,650,453 for fiscal year 2007;
                    (D) $187,481,760 for fiscal year 2008; and
                    (E) $208,313,066 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) $124,987,840 for fiscal year 2005;
                    (B) $145,819,146 for fiscal year 2006;
                    (C) $166,650,453 for fiscal year 2007;
                    (D) $187,481,760 for fiscal year 2008; and
                    (E) $208,313,066 for fiscal year 2009.
            (12) National scenic byways program.--For the national 
        scenic byways program under section 162 of that title--
                    (A) $32,852,013 for fiscal year 2005;
                    (B) $33,790,642 for fiscal year 2006;
                    (C) $34,729,270 for fiscal year 2007; and
                    (D) $36,606,528 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 $0 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, $56,916,300 for 
        each of fiscal years 2005 through 2009.
            (15) Commonwealth of puerto rico highway program.--For the 
        Commonwealth of Puerto Rico highway program under section 173 
        of that title--
                    (A) $136,101,195 for fiscal year 2005;
                    (B) $139,855,711 for fiscal year 2006;
                    (C) $144,548,855 for fiscal year 2007;
                    (D) $150,180,629 for fiscal year 2008; and
                    (E) $152,996,516 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, $8,386,289 for each of fiscal years 
        2005 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), $28,158,868 for each of 
        fiscal years 2005 through 2009.
            (18) Delta region transportation development program.--For 
        planning and construction activities authorized under the Delta 
        Regional Authority, $75,090,314 for each of fiscal years 2005 
        through 2009.
            (19) Intermodal passenger facilities.--For intermodal 
        passenger facilities under subchapter III of chapter 55 of 
        title 49, United States Code, $9,386,289 for each of fiscal 
        years 2005 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) $34,263,000,000 for fiscal year 2005;
            (2) $38,924,000,000 for fiscal year 2006;
            (3) $39,352,000,000 for fiscal year 2007;
            (4) $41,304,000,000 for fiscal year 2008; and
            (5) $42,007,000,000 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;
            (10) section 105 of title 23, United States Code (but, for 
        each of fiscal years 2005 through 2009, only in an amount equal 
        to $639,000,000 per fiscal year); and
            (11) section 1106 of this Act, to the extent that funds 
        obligated in accordance with that section were not subject to a 
        limitation on obligations at the time at which the funds were 
        initially made available for obligation.
    (c) Distribution of Obligation Authority.--For each of fiscal years 
2005 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 $639,000,000, and 
        the Appalachian development highway system program) that are 
        apportioned by the Secretary under this Act and title 23, 
        United States Code, in the ratio that--
                    (A) 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 2005 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 2005 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) $436,462,453 for fiscal year 2005;
            (2) $450,541,887 for fiscal year 2006;
            (3) $464,621,321 for fiscal year 2007;
            (4) $478,700,755 for fiscal year 2008; and
            (5) $492,780,189 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 ``$46,931,447''.

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) $436,462,453 for fiscal year 2005;
                    ``(B) $450,541,887 for fiscal year 2006;
                    ``(C) $464,621,321 for fiscal year 2007;
                    ``(D) $478,700,755 for fiscal year 2008; and
                    ``(E) $492,780,189 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 ``$18,800,000 for each of fiscal 
years 1998 through 2002'' and inserting ``$30,000,000 for each of 
fiscal years 2005 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 2005 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;
                    ``(M) the rail-highway grade crossing program under 
                section 130; and
                    ``(N) the border planning, operations, technology, 
                and capacity program under section 172.
    ``(b) State Percentage.--
            ``(1) In general.--The percentage referred to in subsection 
        (a) for each State shall be--
                    ``(A) 92 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, a 
                median household income of less than $35,000, as 
                reported in that decennial census, or a State with a 
                fatality rate during 2002 on Interstate highways that 
                is greater than 1 fatality for each 100,000,000 vehicle 
                miles traveled on Interstate highways, 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 2005)--
                    ``(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 115 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.--
                    ``(A) In general.--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 the percentage specified in 
                subparagraph (B) 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.
                    ``(B) Percentages.--The percentages referred to in 
                subparagraph (A) are--
                            ``(i) for fiscal year 2005, 90.5 percent;
                            ``(ii) for each of fiscal years 2006 
                        through 2008, 91 percent; and
                            ``(iii) for fiscal year 2009, 92 percent.
    ``(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 2005, 124 percent;
                    ``(B) for fiscal year 2006, 128 percent;
                    ``(C) for fiscal year 2007, 131 percent;
                    ``(D) for fiscal year 2008, 137 percent; and
                    ``(E) 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 2005 through 2009.''.
    (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 105 and inserting the following:

``105. Equity bonus program.''

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 2005; 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).

SEC. 1106. USE OF EXCESS FUNDS AND FUNDS FOR INACTIVE PROJECTS.

    (a) Definitions.--In this section:
            (1) Eligible funds.--
                    (A) In general.--The term ``eligible funds'' means 
                excess funds or inactive funds for a specific 
                transportation project or activity that were--
                            (i) allocated before fiscal year 1998; and
                            (ii) designated in a public law, or a 
                        report accompanying a public law, for 
                        allocation for the specific surface 
                        transportation project or activity.
                    (B) Inclusion.--The term ``eligible funds'' 
                includes funds described in subparagraph (A) that were 
                allocated and designated for a demonstration project.
            (2) Excess funds.--The term ``excess funds'' means--
                    (A) funds obligated for a specific transportation 
                project or activity that remain available for the 
                project or activity after the project or activity has 
                been completed or canceled; or
                    (B) an unobligated balance of funds allocated for a 
                transportation project or activity that the State in 
                which the project or activity was to be carried out 
                certifies are no longer needed for the project or 
                activity.
            (3) Inactive funds.--The term ``inactive funds'' means--
                    (A) an obligated balance of Federal funds for an 
                eligible transportation project or activity against 
                which no expenditures have been charged during any 1-
                year period beginning after the date of obligation of 
                the funds; and
                    (B) funds that are available to carry out a 
                transportation project or activity in a State, but, as 
                certified by the State, are unlikely to be advanced for 
                the project or activity during the 1-year period 
                beginning on the date of certification.
    (b) Availability for STP Purposes.--Eligible funds shall be--
            (1) made available in accordance with this section to the 
        State that originally received the funds; and
            (2) available for obligation for any eligible purpose under 
        section 133 of title 23, United States Code.
    (c) Retention for Original Purpose.--
            (1) In general.--The Secretary may determine that eligible 
        funds identified as inactive funds shall remain available for 
        the purpose for which the funds were initially made available 
        if the applicable State certifies that the funds are necessary 
        for that initial purpose.
            (2) Report.--A certification provided by a State under 
        paragraph (1) shall include a report on the status of, and an 
        estimated completion date for, the project that is the subject 
        of the certification.
    (d) Authority to Obligate.--Notwithstanding the original source or 
period of availability of eligible funds, the Secretary may, on the 
request by a State--
            (1) obligate the funds for any eligible purpose under 
        section 133 of title 23, United States Code; or
            (2)(A) deobligate the funds; and
            (B) reobligate the funds for any eligible purpose under 
        that section.
    (e) Applicability.--
            (1) In general.--Subject to paragraph (2), this section 
        applies only to eligible funds.
            (2) Discretionary allocations; section 125 projects.--This 
        section does not apply to funds that are--
                    (A) allocated at the discretion of the Secretary 
                and for which the Secretary has the authority to 
                withdraw the allocation for use on other projects; or
                    (B) made available to carry out projects under 
                section 125 of title 23, United States Code.
    (f) Period of Availability; Title  23 Requirements.--
            (1) In general.--Notwithstanding the original source or 
        period of availability of eligible funds obligated, or 
        deobligated and reobligated, under subsection (d), the eligible 
        funds--
                    (A) shall remain available for obligation for a 
                period of 3 fiscal years after the fiscal year in which 
                this Act is enacted; and
                    (B) except as provided in paragraph (2), shall be 
                subject to the requirements of title 23, United States 
                Code, that apply to section 133 of that title, 
                including provisions relating to cost-sharing.
            (2) Exception.--With respect to eligible funds described in 
        paragraph (1)--
                    (A) section 133(d) of title 23, United States Code, 
                shall not apply; and
                    (B) the period of availability of the eligible 
                funds shall be determined in accordance with this 
                section.
    (g) Sense of Congress Regarding Use of Eligible Funds.--It is the 
sense of Congress that eligible funds made available under this Act or 
title 23, United States Code, should be available for obligation for 
transportation projects and activities in the same geographic region 
for which the eligible funds were initially made available.

                        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 and hurricane evacuation routes on the 
        Federal-aid system; or
            ``(2) provide operational improvements (including traffic 
        management and intelligent transportation system strategies and 
        limited capacity enhancements) at points of recurring highway 
        congestion or through transportation systemic changes to manage 
        or ameliorate 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 2005; 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 Policy Study Commission.--
            (1) Establishment.--There is established a commission to be 
        known as the ``National Surface Transportation Policy Study 
        Commission'' (referred to in this subsection as the 
        ``Commission'').
            (2) Membership.--
                    (A) Composition.--The Commission shall be composed 
                of 12 members, of whom--
                            (i) 1 member shall be the Secretary, who 
                        shall serve as Chairperson;
                            (ii) 3 members shall be appointed by the 
                        President;
                            (iii) 2 members shall be appointed by the 
                        Speaker of the House of Representatives;
                            (iv) 2 members shall be appointed by the 
                        minority leader of the House of 
                        Representatives;
                            (v) 2 members shall be appointed by the 
                        majority leader of the Senate; and
                            (vi) 2 members shall be appointed by the 
                        minority leader of the Senate.
                    (B) Qualifications.--Members appointed under 
                paragraph (1)--
                            (i) shall include individuals representing 
                        State and local governments, metropolitan 
                        planning organizations, transportation-related 
                        industries, academic and technical 
                        institutions, and public interest organizations 
                        involved with scientific, regulatory, economic, 
                        and environmental transportation activities; 
                        and
                            (ii) shall be balanced geographically to 
                        the extent consistent with maintaining the 
                        highest level of expertise on the Commission.
                    (C) 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.
                    (D) Terms.--A member shall be appointed for the 
                life of the Commission.
                    (E) Vacancies.--A vacancy on the Commission--
                            (i) shall not affect the powers of the 
                        Commission; and
                            (ii) shall be filled in the same manner as 
                        the original appointment was made.
                    (F) 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.
                    (G) Meetings.--The Commission shall meet at the 
                call of the Chairperson.
                    (H) Quorum.--A majority of the members of the 
                Commission shall constitute a quorum, but a lesser 
                number of members may hold hearings.
                    (I) Vice chairperson.--The Commission shall select 
                a Vice Chairperson from among the members of the 
                Commission.
            (3) Duties.--
                    (A) In general.--The Commission shall--
                            (i) conduct a complete and comprehensive 
                        investigation and study of--
                                    (I) the current condition and 
                                future needs of the surface 
                                transportation system; and
                                    (II) 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) 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;
                    (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 sup port the 
                        Highway Trust Fund; and
                            (ii) the time frame for taking those 
                        actions.
            (4) Related work.--To the maximum extent practicable, the 
        study shall build on related work that has been completed by--
                    (A) the Secretary of Transportation;
                    (B) the Secretary of Energy;
                    (C) the Transportation Research Board, including 
                the 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
                    (D) other entities and persons.
            (5) Surface transportation needs.--With respect to surface 
        transportation needs, the investigation and study 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.
            (6) Financing.--With respect to financing, 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.
            (7) Financing recommendations.--In developing financing 
        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 nontaxed 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.
            (8) 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 to be 
                appropriate by the Secretary to ensure a diverse range 
                of views.
            (9) 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 to be appropriate.
            (10) Powers of the commission.--
                    (A) 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.
                    (B) Information from federal agencies.--
                            (i) In general.--The Commission may secure 
                        directly from a Federal agency such information 
                        as the Commission considers necessary to carry 
                        out this section.
                            (ii) Provision of information.--On request 
                        of the Chairperson of the Commission, the head 
                        of a Federal agency shall provide the requested 
                        information to the Commission.
                    (C) 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.
                    (D) Donations.--The Commission may accept, use, and 
                dispose of donations of services or property.
            (11) Commission personnel matters.--
                    (A) 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.
                    (B) Contractors.--The Commission may enter into 
                contracts with an appropriate organizations, agencies, 
                and entities to conduct the study required under this 
                section, under the strategic guidance of the 
                Commission.
                    (C) 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.
                    (D) Detail of personnel.--
                            (i) 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.
                            (ii) Civil service status.--The detail of 
                        the employee shall be without interruption or 
                        loss of civil service status or privilege.
            (12) 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.
            (13) Relationship to other law.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), 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.
                    (B) Federal share.--The Federal share of the cost 
                of the study and the Commission under this section 
                shall be 100 percent.
                    (C) Availability.--Funds made available to carry 
                out this section shall remain available until expended.
            (14) Definition of surface transportation system.--In this 
        subsection, the term ``surface transportation system'' 
        includes--
                    (A) the National Highway System;
                    (B) the Interstate System;
                    (C) the strategic highway network;
                    (D) congressional high priority corridors;
                    (E) intermodal connectors;
                    (F) freight facilities;
                    (G) navigable waterways;
                    (H) mass transportation;
                    (I) freight and intercity passenger rail 
                infrastructure and facilities; and
                    (J) surface access to airports.
            (15) 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 $2,815,886 for 
        fiscal year 2005.
            (16) Termination.--
                    (A) 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 
                paragraph (10).
                    (B) Records.--Not later than the date of 
                termination of the Commission under subparagraph (A), 
                all records and papers of the Commission shall be 
                delivered to the Archivist of the United States for 
                deposit in the National Archives.

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) $46,931,447 for each fiscal year to carry out this 
        section.
            ``(2) Availability.--Notwithstanding section 118(a), funds 
        made available under paragraph (1) shall not 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 INTERSTATE HIGHWAYS.

    (a) Designation of Daniel Patrick Moynihan Interstate Highway.--
            (1) Designation.--Interstate Route 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''.
            (2) References.--Any reference in a law, map, regulation, 
        document, paper, or other record of the United States to the 
        highway referred to in paragraph (1) shall be deemed to be a 
        reference to the Daniel Patrick Moynihan Interstate Highway.
    (b) Designation of Amo Houghton Bypass.--
            (1) Designation.--The 3-mile segment of Interstate Route 86 
        between the interchange of Interstate Route 86 with New York 
        State Route 15 in the vicinity of Painted Post, New York, and 
        the interchange of Interstate Route 86 with New York State 
        Route 352 in the vicinity of Corning, New York, shall be known 
        and designated as the ``Amo Houghton Bypass''.
            (2) References.--Any reference in a law, map, regulation, 
        document, paper, or other record of the United States to the 
        highway referred to in paragraph (1) shall be deemed to be a 
        reference to the Amo Houghton Bypass.

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.
    (c) Innovative and Cost-Effective Materials.--The Secretary shall 
encourage and provide incentives to States to make maximum use of 
innovative and cost-effective materials and products in highway 
construction.

                          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 a bridge project 
        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 $122,021,761 for each of 
        fiscal years 2005 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 $1,877,258 for 
        each of fiscal years 2005 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. 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. 1305. 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.''.

                           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 (including motorcyclist safety); 
                        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 (including 
                        motorcyclists), 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 (including 
                        motorcyclists), 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 State involving bicyclists and 
pedestrians.
    ``(i) Roadway Safety Improvements for Older Drivers and 
Pedestrians.--For each of fiscal years 2005 through 2009, $23,465,723 
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 
        $187,725,786 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 certifies to 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 ``$563,177''.

SEC. 1403. INCREASED PENALTIES FOR HIGHER-RISK DRIVERS DRIVING WHILE 
              INTOXICATED OR DRIVING UNDER THE INFLUENCE.

    (a) In General.--Section 164 of title 23, United States Code, is 
amended to read as follows:
``Sec. 164. Increased penalties for higher-risk drivers driving while 
              intoxicated or driving under the influence
    ``(a) Definitions.--In this section:
            ``(1) Blood alcohol concentration.--The term `blood alcohol 
        concentration' means grams of alcohol per 100 milliliters of 
        blood or the equivalent grams of alcohol per 210 liters of 
        breath.
            ``(2) Driving while intoxicated; driving under the 
        influence.--The terms `driving while intoxicated' and `driving 
        under the influence' mean driving or being in actual physical 
        control of a motor vehicle while having a blood alcohol 
        concentration above the permitted limit as established by each 
        State.
            ``(3) Higher-risk impaired driver law.--
                    ``(A) In general.--The term `higher-risk impaired 
                driver law' means a State law that provides, as a 
                minimum penalty, that--
                            ``(i) an individual described in 
                        subparagraph (B) shall--
                                    ``(I) receive a driver's license 
                                suspension;
                                    ``(II)(aa) have the motor vehicle 
                                driven at the time of arrest impounded 
                                or immobilized for not less than 45 
                                days; and
                                    ``(bb) for the remainder of the 
                                license suspension period, be required 
                                to install a certified alcohol ignition 
                                interlock device on the vehicle;
                                    ``(III)(aa) be subject to an 
                                assessment by a certified substance 
                                abuse official of the State that 
                                assesses the degree of abuse of alcohol 
                                by the individual; and
                                    ``(bb) be assigned to a treatment 
                                program or impaired driving education 
                                program, as determined by the 
                                assessment and paid for by the 
                                individual; and
                                    ``(IV) be imprisoned for not less 
                                than 10 days, or have an electronic 
                                monitoring device for not less than 100 
                                days; and
                            ``(ii) an individual who is convicted of 
                        driving while intoxicated or driving under the 
                        influence with a blood alcohol concentration 
                        level of 0.15 percent or greater shall--
                                    ``(I) receive a driver's license 
                                suspension; and
                                    ``(II)(aa) be subject to an 
                                assessment by a certified substance 
                                abuse official of the State that 
                                assesses the degree of abuse of alcohol 
                                by the individual; and
                                    ``(bb) be assigned to a treatment 
                                program or impaired driving education 
                                program, as determined by the 
                                assessment and paid for by the 
                                individual.
                    ``(B) Covered individuals.--An individual referred 
                to in subparagraph (A)(i) is an individual who--
                            ``(i) is convicted of a second or 
                        subsequent offense for driving while 
                        intoxicated or driving under the influence 
                        within a period of 7 consecutive years; or
                            ``(ii) is convicted of a driving-while-
                        suspended offense, if the suspension was the 
                        result of a conviction for driving under the 
                        influence.
            ``(4) License suspension.--The term `license suspension' 
        means, for a period of not less than 1 year--
                    ``(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 45 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.
            ``(5) Motor vehicle.--
                    ``(A) In general.--The term `motor vehicle' means a 
                vehicle driven or drawn by mechanical power and 
                manufactured primarily for use on public highways.
                    ``(B) Exclusions.--The term `motor vehicle' does 
                not include--
                            ``(i) a vehicle operated solely on a rail 
                        line; or
                            ``(ii) a commercial vehicle.
    ``(b) Transfer of Funds.--
            ``(1) In general.--Except as provided in paragraph (2), on 
        October 1, 2008, and each October 1 thereafter, if a State has 
        not enacted or is not enforcing a higher-risk impaired driver 
        law, the Secretary shall transfer an amount equal to 3 percent 
        of the funds apportioned to the State on that date under 
        paragraphs (1), (3), and (4) of section 104(b) to the 
        apportionment of the State under section 402 to be used in 
        accordance with section 402(a)(3) only to carry out impaired 
        driving programs.
            ``(2) Nationwide traffic safety campaigns.--The Secretary 
        shall--
                    ``(A) reserve 25 percent of the funds that would 
                otherwise be transferred to States for a fiscal year 
                under paragraph (1); and
                    ``(B) use the reserved funds to make law 
                enforcement grants, in connection with nationwide 
                traffic safety campaigns, to be used in accordance with 
                section 402(a)(3).''.
    (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 164 and inserting the following:

        ``164. Increased penalties for higher-risk drivers driving 
                            while intoxicated or driving under the 
                            influence.''.

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 $65,704,024 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)(A) Recommending federally-assisted projects to 
        implement or accommodate the use of a device capable of--
                    ``(i) automatically capturing images of, measuring 
                the speed of, and relating to, multiple vehicles in 
                multiple lanes simultaneously; and
                    ``(ii) correlating measured speeds to capture 
                images of specific identified vehicles traveling in 
                excess of posted speed limits in road work zones and 
                construction areas.
            ``(B) Recommending appropriate measures to protect public 
        security and privacy, including--
                    ``(i) notice to drivers of the use of the devices 
                described in subparagraph (A); and
                    ``(ii) with respect to the information generated by 
                the devices described in subparagraph (A)--
                            ``(I) limitations on the number of, and 
                        authorization process relating to, individuals 
                        that may access the information;
                            ``(II) limitations on the use, disclosure, 
                        and retention of the information; and
                            ``(III) any measures necessary to ensure 
                        that the information is accessed only by an 
                        individual that is authorized to access the 
                        information.
            ``(11) Ensuring that any recommendation made under any of 
        paragraphs (7) through (10) provides for an exemption for 
        applicability to a State, with respect to a project or class of 
        projects--
                    ``(A) to the extent that a State notifies the 
                Secretary in writing that safety is not expected to be 
                adversely affected by nonapplication of the 
                recommendation to the project or class of projects; or
                    ``(B) in any case in which the State has in effect 
                a law that prohibits a project or class of projects 
                (including a device or activity to be installed or 
                carried out under such a project).''.

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. 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.''.

SEC. 1410. 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 knowingly sells a traffic signal 
        preemption transmitter in or affecting interstate or foreign 
        commerce to a person who is not acting on behalf of a public 
        agency or private corporation authorized by law to provide fire 
        protection, law enforcement, emergency medical services, 
        transit services, maintenance, or other services for a Federal, 
        State, or local government entity, shall, notwithstanding 
        section 3571(b), be fined not more than $10,000, imprisoned not 
        more than 1 year, or both.
            ``(2) Use.--A person who makes unauthorized use 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 mechanism 
        that can change or alter a traffic signal's phase time or 
        sequence.
            ``(2) Unauthorized use.--
                    ``(A) In general.--The term `unauthorized use' 
                means use of a traffic signal preemption transmitter by 
                a person who is not acting on behalf of a public agency 
                or private corporation authorized by law to provide 
                fire protection, law enforcement, emergency medical 
                services, transit services, maintenance, or other 
                services for a Federal, State, or local government 
                entity.
                    ``(B) Exception.--The term `unauthorized use' does 
                not apply to use of a traffic signal preemption 
                transmitter for classroom or instructional purposes.''.
    (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. 1411. PRESIDENTIAL COMMISSION ON ALCOHOL-IMPAIRED DRIVING.

    (a) Findings.--Congress finds that--
            (1) there has been considerable progress over the past 25 
        years in reducing the number and rate of alcohol-related 
        highway fatalities;
            (2) the National Highway Traffic Safety Administration 
        projects that fatalities in alcohol-related crashes declined in 
        2004 for the second year in a row;
            (3) in spite of this progress, an estimated 16,654 
        Americans died in 2004, in alcohol-related crashes;
            (4) these fatalities comprise 39 percent of the annual 
        total of highway fatalities;
            (5) about 250,000 are injured each year in alcohol-related 
        crashes;
            (6) the past 2 years of decreasing alcohol-related 
        fatalities follows a 3-year increase;
            (7) drunk driving is the Nation's most frequently committed 
        violent crime;
            (8) the annual cost of alcohol-related crashes is over 
        $100,000,000,000, including $9,000,000,000 in costs to 
        employers;
            (9) a Presidential Commission on Drunk Driving in 1982 and 
        1983 helped to lead to substantial progress on this issue; and
            (10) these facts point to the need to renew the national 
        commitment to preventing these deaths and injuries.
    (b) Sense of the Senate.--It is the sense of the Senate that, in an 
effort to further change the culture of alcohol impaired driving on our 
Nation's highways, the President should consider establishing a 
Presidential Commission on Alcohol-Impaired Driving--
            (1) comprised of--
                    (A) representatives of State and local governments, 
                including state legislators;
                    (B) law enforcement;
                    (C) traffic safety experts, including researchers;
                    (D) victims of alcohol-related crashes;
                    (E) affected industries, including the alcohol, 
                insurance, and auto industries;
                    (F) the business community;
                    (G) labor;
                    (H) the medical community;
                    (I) public health; and
                    (J) Members of Congress; and
            (2) that not later than September 30, 2006, would--
                    (A) conduct a full examination of alcohol-impaired 
                driving issues; and
                    (B) make recommendations for a broad range of 
                policy and program changes that would serve to further 
                reduce the level of deaths and injuries caused by drunk 
                driving.

SEC. 1412. SENSE OF THE SENATE IN SUPPORT OF INCREASED PUBLIC AWARENESS 
              OF BLOOD ALCOHOL CONCENTRATION LEVELS AND THE DANGERS OF 
              DRINKING AND DRIVING.

    (a) Findings.--The Senate finds that--
            (1) in 2003--
                    (A) 17,013 Americans died in alcohol-related 
                traffic crashes;
                    (B) 40 percent of the persons killed in traffic 
                crashes died in alcohol-related crashes; and
                    (C) drivers with blood alcohol concentration levels 
                over 0.15 were involved in 58 percent of alcohol-
                related traffic fatalities;
            (2) research shows that 77 percent of Americans think they 
        have received enough information about drinking and driving and 
        the way in which alcohol affects individual blood alcohol 
        concentration levels; and
            (3) only 28 percent of the American public can correctly 
        identify the legal limit of blood alcohol concentration of the 
        State in which they reside.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
National Highway Traffic Safety Administration should work with State 
and local governments and independent organizations to increase public 
awareness of--
            (1) State legal limits on blood alcohol concentration 
        levels; and
            (2) the dangers of drinking and driving.

SEC. 1413. GRANT PROGRAM FOR COMMERCIAL DRIVER TRAINING.

    (a) Establishment.--The Secretary of Transportation shall establish 
a program for making grants to commercial driver training schools and 
programs for the purpose of providing financial assistance to entry 
level drivers of commercial vehicles (as defined in section 31301 of 
title 49, United States Code).
    (b) Federal Share.--The Federal share of the cost for which a grant 
is made under this section shall be 80 percent.
    (c) Funding.--There are authorized to be appropriated from the 
Highway Trust Fund (other than the Mass Transit Account) for the 
purpose of carrying out this section $5,000,000 for each of the fiscal 
years 2006 through 2009.

             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, 
                        tribal, 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 and tribal 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)).
            ``(3) Mitigation in closed basins.--
                    ``(A) In general.--A State may use amounts 
                deposited in the State fund for projects to protect 
                existing roadways from anticipated flooding of a closed 
                basin lake, including--
                            ``(i) construction--
                                    ``(I) necessary for the 
                                continuation of roadway services and 
                                the impoundment of water, as the State 
                                determines to be appropriate; or
                                    ``(II) for a grade raise to 
                                permanently restore a roadway the use 
                                of which is lost or reduced, or could 
                                be lost or reduced, as a result of an 
                                actual or predicted water level that is 
                                within 3 feet of causing inundation of 
                                the roadway in a closed lake basin;
                            ``(ii) monitoring, studies, evaluations, 
                        design, or preliminary engineering relating to 
                        construction; and
                            ``(iii) monitoring and evaluations relating 
                        to proposed construction.
                    ``(B) Reimbursement.--The Secretary may permit a 
                State that expends funds under subparagraph (A) to be 
                reimbursed for the expenditures through the use of 
                amounts made available under section 125(c)(1).
    ``(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 cooperating 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;
                    ``(E) the Committee on Transportation and 
                Infrastructure of the House of Representatives; and
                    ``(F) the Council on Environmental Quality.
    ``(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.
    (c) Existing Environmental Review Process.--Nothing in this section 
affects any existing State environmental review process, program, 
agreement, or funding arrangement approved by the Secretary under 
section 1309 of the Transportation Equity Act for the 21st Century (112 
Stat. 232; 23 U.S.C. 109 note).

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 shall--
                    (A) conduct a study on the implementation of this 
                section and the amendments made by this section; and
                    (B) commission an independent review of the study 
                plan and methodology, and any associated conclusions, 
                by the Transportation Research Board of the National 
                Academy of Sciences.
            (2) Components.--In conducting the study, the Secretary 
        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 shall prepare--
                    (A) not earlier than the date that is 3 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 March 1, 2010, an update on the 
                report required under subparagraph (A).
            (4) Report recipients.--The Secretary shall--
                    (A) submit the report, review of 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--
                    ``(A) the Secretary determines that the property is 
                offered for sale on the open market;
                    ``(B) the Secretary determines that 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) the State determines that 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 $3,754,515 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.''.

SEC. 1523. 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 $9,386,289 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.''.

SEC. 1524. 14TH AMENDMENT HIGHWAY AND 3RD INFANTRY DIVISION HIGHWAY.

    Not later than December 31, 2005, any funds made available to 
commission studies and reports regarding construction of a route 
linking Augusta, Georgia, Macon, Georgia, Columbus, Georgia, 
Montgomery, Alabama, and Natchez, Mississippi and a route linking 
through Savannah, Georgia, Augusta, Georgia, and Knoxville, Tennessee, 
shall be provided to the Secretary to--
    (1) carry out a study and submit to the appropriate committees of 
Congress a report that describes the steps and estimated funding 
necessary to construct a route for the 14th Amendment Highway, from 
Augusta, Georgia, to Natchez, Mississippi (formerly designated the Fall 
Line Freeway in the State of Georgia); and
    (2) carry out a study and submit to the appropriate committees of 
Congress a report that describes the steps and estimated funding 
necessary to designate and construct a route for the 3rd Infantry 
Division Highway, extending from Savannah, Georgia, to Knoxville, 
Tennessee (formerly the Savannah River Parkway in the State of 
Georgia), following a route generally defined through Sylvania, 
Waynesville, Augusta, Lincolnton, Elberton, Hartwell, Toccoa, and Young 
Harris, Georgia, and Maryville, Tennessee.

                        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;
        if such efforts are related to transportation projects funded 
        under this title.
            ``(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)--
                    (A) in paragraph (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.'';
                    (B) in paragraph (3)--
                            (i) by striking ``To be considered'' and 
                        inserting the following:
                    ``(A) In general.--To be considered'';
                            (ii) in subparagraph (A) (as designated by 
                        clause (i))--
                                    (I) by inserting ``, an Indian 
                                tribe, '' after ``nominated by a 
                                State''; and
                                    (II) by inserting ``, an Indian 
                                scenic byway,'' after ``designated as a 
                                State scenic byway''; and
                            (iii) by adding at the end the following:
                    ``(B) Nomination by indian tribes.--An Indian tribe 
                may nominate a road as a National Scenic Byway under 
                subparagraph (A) only if a Federal land management 
                agency (other than the Bureau of Indian Affairs), a 
                State, or a political subdivision of a State does not 
                have--
                            ``(i) jurisdiction over the road; or
                            ``(ii) responsibility for managing the 
                        road.
                    ``(C) Safety.--Indian tribes shall maintain the 
                safety and quality of roads nominated by the Indian 
                tribe under subparagraph (A).''; and
                    (C) by adding at the end the following:
            ``(4) Reciprocal notification.--States, Federal land 
        management agencies, and Indian tribes shall notify each other 
        regarding nominations under this subsection for roads that--
                    ``(A) are within the jurisdictional boundary of the 
                State, Federal land management agency, or Indian tribe; 
                or
                    ``(B) directly connect to roads for which the 
                State, Federal land management agency, or Indian tribe 
                is responsible.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by inserting ``and Indian tribes'' 
                        after ``provide technical assistance to 
                        States'';
                            (ii) in subparagraph (A), by striking 
                        ``designated as'' and all that follows and 
                        inserting ``designated as--
                            ``(i) National Scenic Byways;
                            ``(ii) All-American Roads;
                            ``(iii) America's Byways;
                            ``(iv) State scenic byways; or
                            ``(v) Indian scenic byways; and''; and
                            (iii) in subparagraph (B), by inserting 
                        ``or Indian'' after ``State'';
                    (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'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``State-
                                designated'' and inserting ``State or 
                                Indian''; and
                                    (II) 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
                            (iii) in subparagraph (C), by inserting 
                        ``or Indian'' after ``State'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by inserting ``or Indian'' 
                after ``State'';
                    (B) in paragraph (3)--
                            (i) by inserting ``Indian scenic byway,'' 
                        after ``improvements to a State scenic 
                        byway,''; and
                            (ii) by inserting ``Indian scenic byway,'' 
                        after ``designation as a State scenic byway,''; 
                        and
                    (C) in paragraph (4), by striking ``passing 
                lane,''; and
            (4) in subsection (e), by inserting ``or Indian tribe'' 
        after ``State''.
    (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 
        $1,877,258 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 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.

    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;
                            ``(ii) a local agency in a State that is 
                        responsible for transportation matters; and
                            ``(iii) a public authority, or a public or 
                        private entity designated by a State, to 
                        collect a toll from motor vehicles at an 
                        eligible toll facility.
                    ``(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--
                                    ``(I) meets Tier II emission levels 
                                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; and
                                    ``(I)(aa) is certified by the 
                                Administrator of the Environmental 
                                Protection Agency, in consultation with 
                                the manufacturer, to have achieved not 
                                less than a 50-percent increase in city 
                                fuel economy or not less than a 25-
                                percent increase in combined city-
                                highway fuel economy relative to a 
                                comparable vehicle that is an internal 
                                combustion gasoline fueled vehicle 
                                (other than a vehicle that has 
                                propulsion energy from onboard hybrid 
                                sources); or
                                    ``(bb) is a dedicated alternative 
                                fueled vehicle under section 301 of the 
                                Energy Policy Act of 1992 (42 U.S.C. 
                                13211).
                            ``(ii) Comparable vehicle determination.--
                        Not later than 180 days after the date of 
                        enactment of the Safe, Affordable, Flexible, 
                        and Efficient Transportation Equity Act of 
                        2005, the Administrator of the Environmental 
                        Protection Agency, in accordance with section 
                        32908(b) of title 49, United States Code, shall 
                        establish guidelines and procedures for making 
                        the vehicle comparisons and performance 
                        calculations described in clause (i)(I)(aa).
                            ``(iii) HOV lane performance.--
                                    ``(I) In general.--The responsible 
                                agency may not 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 
                                performance of the lanes is seriously 
                                degraded.
                                    ``(II) Management.--In managing the 
                                use of high occupancy vehicle lanes by 
                                low emission and energy efficient 
                                vehicles that do not meet applicable 
                                occupancy requirements, the responsible 
                                agency may increase the percentages 
                                described in clause (i)(I)(aa).
                            ``(iv) 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 2005 through 2009, the Secretary, after making the 
deductions authorized by subsections (a) and (f), shall set aside 
$469,314 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) by striking paragraph (2) and inserting the 
                following:
            ``(2) Limitation.--The Secretary may permit the collection 
        of tolls under this subsection on 1 facility in the State of 
        Virginia.'';
                    (C) in paragraph (3), by striking subparagraph (C) 
                and inserting the following:
                    ``(C) An analysis demonstrating that financing the 
                reconstruction or rehabilitation of the facility with 
                the collection of tolls under this pilot program is the 
                most efficient, economical, or expeditious way to 
                advance the project.''; and
                    (D) 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 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 $10,324,918 for each of fiscal years 
                2005 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 2005, 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.

    (a) In General.--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.''.
    (b) Conforming Amendment.--Section 149(c)(2) of title 23, United 
States Code, is amended by striking ``104(b)(2)(D)'' and inserting 
``104(b)(2)(E)''.

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;
            ``(7) if the project or program involves the purchase of 
        integrated, interoperable emergency communications equipment; 
        or
            ``(8) if the project or program is for--
                    ``(A) diesel retrofit technologies that are--
                            ``(i) for motor vehicles (as defined in 
                        section 216 of the Clean Air Act (42 U.S.C. 
                        7550)); or
                            ``(ii) published in the list under 
                        subsection (f)(5) for non-road vehicles and 
                        non-road engines (as defined in section 216 of 
                        the Clean Air Act (42 U.S.C. 7550)) that are 
                        used in construction projects that are--
                                    ``(I) located in nonattainment or 
                                maintenance areas for ozone, 
                                PM<INF>10</INF>, or PM<INF>2.5</INF> 
                                (as defined under the Clean Air Act (42 
                                U.S.C. 7401 et seq.)); and
                                    ``(II) funded, in whole or in part, 
                                under this title; or
                    ``(B) outreach activities that are designed to 
                provide information and technical assistance to the 
                owners and operators of diesel equipment and vehicles 
                regarding the emission reduction strategy.''.
    (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.--Section 149 of title 23, United 
States Code, is amended by adding at the end the following:
    ``(f) Cost-Effective Emission Reduction Strategies.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Administrator.--The term `Administrator' 
                means the Administrator of the Environmental Protection 
                Agency.
                    ``(B) Cmaq resources.--The term `CMAQ resources' 
                means resources available to a State to carry out the 
                congestion mitigation and air quality improvement 
                program under this section.
                    ``(C) Diesel retrofit technology.--The term `diesel 
                retrofit technology' means a replacement, repowering, 
                rebuilding, after treatment, or other technology, as 
                determined by the Administrator.
            ``(2) Emission reduction strategies.--Each State shall 
        develop, implement, and periodically revise emission reduction 
        strategies comprised of any methods determined to be 
        appropriate by the State that are consistent with section 209 
        of the Clean Air Act (42 U.S.C. 7542) for engines and vehicles 
        that are used in construction projects that are--
                    ``(A) located in nonattainment areas for ozone, 
                PM<INF>10</INF>, or PM<INF>2.5</INF> (as defined under 
                the Clean Air Act (42 U.S.C. 7401 et seq.)); and
                    ``(B) funded, in whole or in part, under this 
                title.
            ``(3) State considerations.--In developing emission 
        reduction strategies, each State--
                    ``(A) may include any means to reduce emissions 
                that are determined to be appropriate by the State; but
                    ``(B) shall--
                            ``(i) consider guidance issued by the 
                        Administrator under paragraph (5);
                            ``(ii) limit technologies to those 
                        identified by the Administrator under paragraph 
                        (5);
                            ``(iii) provide contractors with guidance 
                        and technical assistance regarding the 
                        implementation of emission reduction 
                        strategies;
                            ``(iv) give special consideration to small 
                        businesses that participate in projects funded 
                        under this title;
                            ``(v) place priority on the use of--
                                    ``(I) diesel retrofit technologies 
                                and activities;
                                    ``(II) cost-effective strategies;
                                    ``(III) financial incentives using 
                                CMAQ resources and State resources; and
                                    ``(IV) strategies that maximize 
                                health benefits; and
                            ``(vi) not include any activities 
                        prohibited by paragraph (4).
            ``(4) State limitations.--Emission reduction strategies may 
        not--
                    ``(A) authorize or recommend the use of bans on 
                equipment or vehicle use during specified periods of a 
                day;
                    ``(B) authorize or recommend the use of contract 
                procedures that would require retrofit activities, 
                unless funds are made available by the State under this 
                section or other State authority to offset the cost of 
                those activities; or
                    ``(C) authorize the use of contract procedures that 
                would discriminate between bidders on the basis of a 
                bidder's existing equipment or existing vehicle 
                emission technology.
            ``(5) Emission reduction strategy guidance.--The 
        Administrator, in consultation with the Secretary, shall 
        publish a nonbinding list of emission reduction strategies and 
        supporting technical information for--
                    ``(A) diesel emission reduction technologies 
                certified or verified by the Administrator, the 
                California Air Resources Board, or any other entity 
                recognized by the Administrator for the same purpose;
                    ``(B) diesel emission reduction technologies 
                identified by the Administrator as having an 
                application and approvable test plan for verification 
                by the Administrator or the California Air Resources 
                board that is submitted not later that 18 months of the 
                date of enactment of this Act;
                    ``(C) available information regarding the emission 
                reduction effectiveness and cost effectiveness of 
                technologies identified in this paragraph, taking into 
                consideration health effects;
                    ``(D) options and recommendations for the structure 
                and content of emission reduction strategies 
                including--
                            ``(i) emission reduction performance 
                        criteria;
                            ``(ii) financial incentives that use CMAQ 
                        resources and State resources;
                            ``(iii) procedures to facilitate access by 
                        contractors to financial incentives;
                            ``(iv) contract incentives, allowances, and 
                        procedures;
                            ``(v) methods of voluntary emission 
                        reductions; and
                            ``(vi) other means that may be employed to 
                        reduce emissions from construction activities; 
                        and
            ``(6) Priority.--States and metropolitan planning 
        organizations shall give priority in distributing funds 
        received for congestion management and air quality projects and 
        programs to finance of diesel retrofit and cost-effective 
        emission reduction activities identified by States in the 
        emission reduction strategies developed under this subsection.
            ``(7) No effect on authority or restrictions.--Nothing in 
        this subsection modifies any authority or restriction 
        established under the Clean Air Act (42 U.S.C. 7401 et 
        seq.).''.
    (d) Availability of Funds for the State of Maine.--In addition to 
other eligible uses, the State of Maine may use funds apportioned under 
section 104(b)(2) to support, through September 30, 2009, the operation 
of passenger rail service between Boston, Massachusetts, and Portland, 
Maine.
    (e) Responsibility of the State of Montana.--In addition to other 
eligible uses, the State of Montana may use funds apportioned under 
section 104(b)(2) for the operation of public transit activities that 
serve a nonattainment or maintenance area.

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 2005, 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, 
                        2004);
                            ``(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.''; and
            (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, 2004), 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, 2004), 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, 2004).
                    ``(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.''.

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, 2004), 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, 
                        2004), 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 
                transportation project taken as a whole during the 
                environmental review phase of transportation 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, 2006, 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 2005, 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. FEDERAL PROCUREMENT OF RECYCLED COOLANT.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the President shall conduct a review of Federal 
procurement policy of off-site recycled coolant.
    (b) Elements.--In conducting the review under subsection (a), the 
President shall consider recycled coolant produced from processes 
that--
            (1) are energy efficient;
            (2) generate no hazardous waste (as defined in section 1004 
        of the Solid Waste Disposal Act (42 U.S.C. 6903));
            (3) produce no emissions of air pollutants;
            (4) present lower health and safety risks to employees at a 
        plant or facility; and
            (5) recover at least 97 percent of the glycols from used 
        antifreeze feedstock.

SEC. 1622. CLEAN SCHOOL BUS PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Alternative fuel.--The term ``alternative fuel'' 
        means--
                    (A) liquefied natural gas, compressed natural gas, 
                liquefied petroleum gas, hydrogen, or propane;
                    (B) methanol or ethanol at no less than 85 percent 
                by volume; or
                    (C) biodiesel conforming with standards published 
                by the American Society for Testing and Materials as of 
                the date of enactment of this Act.
            (3) Clean school bus.--The term ``clean school bus'' means 
        a school bus with a gross vehicle weight of greater than 14,000 
        pounds that--
                    (A) is powered by a heavy duty engine; and
                    (B) is operated solely on an alternative fuel or 
                ultra-low sulfur diesel fuel.
            (4) Eligible recipient.--
                    (A) In general.--Subject to subparagraph (B), the 
                term ``eligible recipient'' means--
                            (i) 1 or more local or State governmental 
                        entities responsible for--
                                    (I) providing school bus service to 
                                1 or more public school systems; or
                                    (II) the purchase of school buses;
                            (ii) 1 or more contracting entities that 
                        provide school bus service to 1 or more public 
                        school systems; or
                            (iii) a nonprofit school transportation 
                        association.
                    (B) Special requirements.--In the case of eligible 
                recipients identified under clauses (ii) and (iii), the 
                Administrator shall establish timely and appropriate 
                requirements for notice and may establish timely and 
                appropriate requirements for approval by the public 
                school systems that would be served by buses purchased 
                or retrofit using grant funds made available under this 
                section.
            (5) Retrofit technology.--The term ``retrofit technology'' 
        means a particulate filter or other emissions control equipment 
        that is verified or certified by the Administrator or the 
        California Air Resources Board as an effective emission 
        reduction technology when installed on an existing school bus.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (7) Ultra-low sulfur diesel fuel.--The term ``ultra-low 
        sulfur diesel fuel'' means diesel fuel that contains sulfur at 
        not more than 15 parts per million.
    (b) Program for Retrofit or Replacement of Certain Existing School 
Buses With Clean School Buses.--
            (1) Establishment.--
                    (A) In general.--The Administrator, in consultation 
                with the Secretary and other appropriate Federal 
                departments and agencies, shall establish a program for 
                awarding grants on a competitive basis to eligible 
                recipients for the replacement, retrofit (including 
                repowering, aftertreatment, and remanufactured engines) 
                of, or purchase of alternative fuels for, certain 
                existing school buses.
                    (B) Balancing.--In awarding grants under this 
                section, the Administrator shall, to the maximum extent 
                practicable, achieve an appropriate balance between 
                awarding grants--
                            (i) to replace school buses;
                            (ii) to install retrofit technologies; and
                            (iii) to purchase and use alternative fuel.
            (2) Priority of grant applications.--
                    (A) Replacement.--In the case of grant applications 
                to replace school buses, the Administrator shall give 
                priority to applicants that propose to replace school 
                buses manufactured before model year 1977.
                    (B) Retrofitting.--In the case of grant 
                applications to retrofit school buses, the 
                Administrator shall give priority to applicants that 
                propose to retrofit school buses manufactured in or 
                after model year 1991.
            (3) Use of school bus fleet.--
                    (A) In general.--All school buses acquired or 
                retrofitted with funds provided under this section 
                shall be operated as part of the school bus fleet for 
                which the grant was made for not less than 5 years.
                    (B) Maintenance, operation, and fueling.--New 
                school buses and retrofit technology shall be 
                maintained, operated, and fueled according to 
                manufacturer recommendations or State requirements.
            (4) Retrofit grants.--The Administrator may award grants 
        for up to 100 percent of the retrofit technologies and 
        installation costs.
            (5) Replacement grants.--
                    (A) Eligibility for 50 percent grants.--The 
                Administrator may award grants for replacement of 
                school buses in the amount of up to \1/2\ of the 
                acquisition costs (including fueling infrastructure) 
                for --
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 that 
                        emit not more than--
                                    (I) 1.8 grams per brake horsepower-
                                hour of non-methane hydrocarbons and 
                                oxides of nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate matter; 
                                or
                            (ii) clean school buses with engines 
                        manufactured in model year 2007, 2008, or 2009 
                        that satisfy regulatory requirements 
                        established by the Administrator for emissions 
                        of oxides of nitrogen and particulate matter to 
                        be applicable for school buses manufactured in 
                        model year 2010.
                    (B) Eligibility for 25 percent grants.--The 
                Administrator may award grants for replacement of 
                school buses in the amount of up to \1/4\ of the 
                acquisition costs (including fueling infrastructure) 
                for --
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 that 
                        emit not more than--
                                    (I) 2.5 grams per brake horsepower-
                                hour of non-methane hydrocarbons and 
                                oxides of nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate matter; 
                                or
                            (ii) clean school buses with engines 
                        manufactured in model year 2007 or thereafter 
                        that satisfy regulatory requirements 
                        established by the Administrator for emissions 
                        of oxides of nitrogen and particulate matter 
                        from school buses manufactured in that model 
                        year.
            (6) Ultra-low sulfur diesel fuel.--
                    (A) In general.--In the case of a grant recipient 
                receiving a grant for the acquisition of ultra-low 
                sulfur diesel fuel school buses with engines 
                manufactured in model year 2005 or 2006, the grant 
                recipient shall provide, to the satisfaction of the 
                Administrator--
                            (i) documentation that diesel fuel 
                        containing sulfur at not more than 15 parts per 
                        million is available for carrying out the 
                        purposes of the grant; and
                            (ii) a commitment by the applicant to use 
                        that fuel in carrying out the purposes of the 
                        grant.
            (7) Deployment and distribution.--The Administrator shall, 
        to the maximum extent practicable--
                    (A) achieve nationwide deployment of clean school 
                buses through the program under this section; and
                    (B) ensure a broad geographic distribution of grant 
                awards, with no State receiving more than 10 percent of 
                the grant funding made available under this section 
                during a fiscal year.
            (8) Annual report.--
                    (A) In general.--Not later than January 31 of each 
                year, the Administrator shall submit to Congress a 
                report that--
                            (i) evaluates the implementation of this 
                        section; and
                            (ii) describes--
                                    (I) the total number of grant 
                                applications received;
                                    (II) the number and types of 
                                alternative fuel school buses, ultra-
                                low sulfur diesel fuel school buses, 
                                and retrofitted buses requested in 
                                grant applications;
                                    (III) grants awarded and the 
                                criteria used to select the grant 
                                recipients;
                                    (IV) certified engine emission 
                                levels of all buses purchased or 
                                retrofitted under this section;
                                    (V) an evaluation of the in-use 
                                emission level of buses purchased or 
                                retrofitted under this section; and
                                    (VI) any other information the 
                                Administrator considers appropriate.
    (c) Education.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall develop an 
        education outreach program to promote and explain the grant 
        program.
            (2) Coordination with stakeholders.--The outreach program 
        shall be designed and conducted in conjunction with national 
        school bus transportation associations and other stakeholders.
            (3) Components.--The outreach program shall--
                    (A) inform potential grant recipients on the 
                process of applying for grants;
                    (B) describe the available technologies and the 
                benefits of the technologies;
                    (C) explain the benefits of participating in the 
                grant program; and
                    (D) include, as appropriate, information from the 
                annual report required under subsection (b)(8).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section, to remain 
available until expended--
            (1) $55,000,000 for each of fiscal years 2006 and 2007; and
            (2) such sums as are necessary for each of fiscal years 
        2008, 2009, and 2010.

SEC. 1623. CONSERVE BY BICYCLING PROGRAM.

    (a) Definitions.--In this section:
            (1) Program.--The term ``program'' means the Conserve by 
        Bicycling Program established by subsection (b).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
    (b) Establishment.--There is established within the Department of 
Transportation a program to be known as the ``Conserve by Bicycling 
Program''.
    (c) Projects.--
            (1) In general.--In carrying out the program, the Secretary 
        shall establish not more than 10 pilot projects that are--
                    (A) dispersed geographically throughout the United 
                States; and
                    (B) designed to conserve energy resources by 
                encouraging the use of bicycles in place of motor 
                vehicles.
            (2) Requirements.--A pilot project described in paragraph 
        (1) shall--
                    (A) use education and marketing to convert motor 
                vehicle trips to bicycle trips;
                    (B) document project results and energy savings (in 
                estimated units of energy conserved);
                    (C) facilitate partnerships among interested 
                parties in at least 2 of the fields of--
                            (i) transportation;
                            (ii) law enforcement;
                            (iii) education;
                            (iv) public health;
                            (v) environment; and
                            (vi) energy;
                    (D) maximize bicycle facility investments;
                    (E) demonstrate methods that may be used in other 
                regions of the United States; and
                    (F) facilitate the continuation of ongoing programs 
                that are sustained by local resources.
            (3) Cost sharing.--At least 20 percent of the cost of each 
        pilot project described in paragraph (1) shall be provided from 
        State or local sources.
    (d) Energy and Bicycling Research Study.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary shall enter into a 
        contract with the National Academy of Sciences for, and the 
        National Academy of Sciences shall conduct and submit to 
        Congress a report on, a study on the feasibility of converting 
        motor vehicle trips to bicycle trips.
            (2) Components.--The study shall--
                    (A) document the results or progress of the pilot 
                projects under subsection (b);
                    (B) determine the type and duration of motor 
                vehicle trips that people in the United States may 
                feasibly make by bicycle, taking into consideration 
                factors such as--
                            (i) weather;
                            (ii) land use and traffic patterns;
                            (iii) the carrying capacity of bicycles; 
                        and
                            (iv) bicycle infrastructure;
                    (C) determine any energy savings that would result 
                from the conversion of motor vehicle trips to bicycle 
                trips;
                    (D) include a cost-benefit analysis of bicycle 
                infrastructure investments; and
                    (E) include a description of any factors that would 
                encourage more motor vehicle trips to be replaced with 
                bicycle trips.

                         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 management and 
        operation of transportation systems 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 transportation systems in a 
        coordinated manner to preserve the capacity and maximize the 
        performance of transportation 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. 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.--For the purpose of any applicable program 
under title 23, United States Code, the city of Norman, Oklahoma, shall 
be considered to be part of the Oklahoma City urbanized area.

                  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 
        ``20''; 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 20-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;
                            ``(ii) improving the value and quality of 
                        the project; and
                            ``(iii) reducing the time to complete 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.

SEC. 1803. REVISION OF REGULATIONS.

    Section 112(b)(3) of title 23, United States Code, is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) 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.
                    ``(D) Regulatory process.--Not later than 90 days 
                after the date of enactment of the Safe, Affordable, 
                Flexible, and Efficient Transportation Equity Act of 
                2005, the Secretary shall promulgate revised 
                regulations under section 1307(c) of the Transportation 
                Equity Act for 21st Century (23 U.S.C. 112 note; 112 
                Stat. 230) that--
                            ``(i) do not preclude State transportation 
                        departments or local transportation agencies 
                        from--
                                    ``(I) issuing requests for 
                                proposals;
                                    ``(II) proceeding with awards of 
                                design-build contracts; or
                                    ``(III) issuing notices to proceed 
                                with preliminary design work under 
                                design-build contracts;
prior to compliance with section 102 of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332);
                            ``(ii) require that the State 
                        transportation department or local 
                        transportation agency receive concurrence from 
                        the Secretary before carrying out an activity 
                        under clause (i); and
                            ``(iii) preclude the design-build 
                        contractor from proceeding with final design or 
                        construction of any permanent improvement prior 
                        to completion of the process under section 102 
                        of the National Environmental Policy Act of 
                        1969 (42 U.S.C. 4332).''.

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 ``$93,862,893 
                for each of fiscal years 2005 through 2009''; and
                    (2) by striking ``Transportation Equity Act for the 
                21st Century'' and inserting ``Safe, Accountable, 
                Flexible, and Efficient Transportation Equity Act of 
                2005''.

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 
                        ``2005''; 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 for distribution of funds 
                        under the Indian reservation roads program.
                            ``(ii) 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) $14,079,433 for each of fiscal years 
                        2005 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 after approval of 
                        applicable plans, specifications, and estimates 
                        in accordance with this title.''; 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 approve plans, specifications, and estimates and 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 2005 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 allocated for 
Indian reservation roads from the Highway Trust Fund, not more than 25 
percent may be expended for the purpose of maintenance, excluding road 
sealing, and shall not be subject to any limitation. 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.''.
    (f) 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.''.
    (g) 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 (f)(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.''.
    (h) 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 2005 through 2009, all 
                but $140,794,340 shall be apportioned as provided in 
                subsection (e).
                    ``(B) Availability.--The $140,794,340 referred to 
                in subparagraph (A) shall be available at the 
                discretion of the Secretary, except that not to exceed 
                $23,465,723 of that amount shall be available only for 
                projects for the seismic retrofit of bridges.
                    ``(C) Set asides.--For fiscal year 2005, the 
                Secretary shall provide--
                            ``(i) $46,931,446 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;
                            ``(ii) $46,931,446 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; and
                            ``(iii) not less than 40 percent of the 
                        amount made available under subparagraph (B) 
                        for the fiscal year for the seismic retrofit of 
                        bridges for multilane, suspension bridges 
                        that--
                                    ``(I) were open to traffic prior to 
                                1940; and
                                    ``(II) are located in high-seismic 
                                zones.''.
            ``(2) Off-system bridges.--
                    ``(A) In general.--Not less than 15 percent of the 
                amount apportioned to each State in each of fiscal 
                years 2005 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.
                    ``(C) Pilot program.--Not less than 20 percent of 
                the amount apportioned to the States of Colorado, 
                _________, and _________, for each of fiscal years 2005 
                through 2009 shall be expended for off-system bridge 
                pilot projects.'';
            (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.--
            ``(1) In general.--Except as provided under paragraph (2), 
        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 section 
        120(d).
            ``(2) Interstate system.--The Federal share of the cost of 
        a project on the Interstate System payable from funds made 
        available to carry out this section shall be the share 
        applicable under section 120(a).''.
    (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 2005 for 
        fiscal years 2005 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 2005 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;
            ``(2) facilitate transportation decisionmaking and 
        coordinate project delivery involving multistate corridors; and
            ``(3) support the planning, development, and construction 
        of high priority corridors identified by section 1105(c) of the 
        Intermodal Surface Transportation Efficiency Act of 1991 
        (Public Law 102-240; 105 Stat. 2032).
    ``(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--
            ``(1) multistate highway and multimodal planning studies 
        and construction; and
            ``(2) coordinated planning, development, and construction 
        of high priority corridors identified by section 1105(c) of the 
        Intermodal Surface Transportation Efficiency Act of 1991 
        (Public Law 102-240; 105 Stat. 2032).
    ``(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 (including 
                        improvements to emergency evacuation routes); 
                        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 2005 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 2005 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, technology, and capacity 
                            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 2005 for each of fiscal years 2005 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 2005 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 $13,140,805 for each of fiscal years 2005 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 $46,931,447 for each of 
        fiscal years 2005 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 
                $9,386,289 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 
                $9,386,289 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 
        2005, 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) Passages for Aquatic Species.--Of the amounts made available 
for National Forest System roads, $14,079,433 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 2005), 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 2005--
                    ``(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. HIGH-SPEED MAGNETIC LEVITATION SYSTEM DEPLOYMENT PROGRAM.

    (a) In General.--Section 322 of title 23, United States Code, is 
amended to read as follows:
``Sec. 322. High-speed magnetic levitation system deployment program
    ``(a) Definitions.--In this section:
            ``(1) Eligible project costs.--
                    ``(A) In general.--The term `eligible project 
                costs' means the capital cost of the fixed guideway 
                infrastructure of a MAGLEV project, including land, 
                piers, guideways, propulsion equipment and other 
                components attached to guideways, power distribution 
                facilities (including substations), control and 
                communications facilities, access roads, and storage, 
                repair, and maintenance facilities.
                    ``(B) Inclusion.--The term `eligible project costs' 
                includes the costs of preconstruction planning 
                activities.
            ``(2) Full project costs.--The term `full project costs' 
        means the total capital costs of a MAGLEV project, including 
        eligible project costs and the costs of stations, vehicles, and 
        equipment.
            ``(3) Maglev.--
                    ``(A) In general.--The term `MAGLEV' means 
                transportation systems in revenue service employing 
                magnetic levitation that would be capable of safe use 
                by the public at a speed in excess of 240 miles per 
                hour.
                    ``(B) Inclusion.--The term `MAGLEV' includes power, 
                control, and communication facilities required for the 
                safe operation of the vehicles within a system 
                described in subparagraph (A).
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(5) Special purpose entity.--The term `special purpose 
        entity' means a nonprofit entity that--
                    ``(A) is not a State-designated authority; but
                    ``(B) is eligible, as determined by the Governor of 
                the State in which the entity is located, to 
                participate in the program under this section.
            ``(6) Tea-21 criteria.--The term `TEA-21 criteria' means--
                    ``(A) the criteria set forth in subsection (d) of 
                this section (as in effect on the day before the date 
                of enactment of the Safe, Affordable, Flexible, and 
                Efficient Transportation Equity Act of 2005), including 
                applicable regulations; and
                    ``(B) with respect to subsection (e)(2), the 
                criteria set forth in subsection (d)(8) of this section 
                (as so in effect).
    ``(b) Phase I--Preconstruction Planning.--
            ``(1) In general.--A State, State-designated authority, 
        multistate-designated authority, or special purpose entity may 
        apply to the Secretary for grants to conduct preconstruction 
        planning for proposed new MAGLEV projects, or extensions to 
        MAGLEV systems planned, studied, or deployed under this or any 
        other program.
            ``(2) Applications.--An application for a grant under this 
        subsection shall include a description of the proposed MAGLEV 
        project, including, at a minimum--
                    ``(A) a description of the purpose and need for the 
                proposed MAGLEV project;
                    ``(B) a description of the travel market to be 
                served;
                    ``(C) a description of the technology selected for 
                the MAGLEV project;
                    ``(D) forecasts of ridership and revenues;
                    ``(E) a description of preliminary engineering that 
                is sufficient to provide a reasonable estimate of the 
                capital cost of constructing, operating, and 
                maintaining the project;
                    ``(F) a realistic schedule for construction and 
                equipment for the project;
                    ``(G) an environmental assessment;
                    ``(H) a preliminary identification of the 1 or more 
                organizations that will construct and operate the 
                project; and
                    ``(I) a cost-benefit analysis and tentative 
                financial plan for construction and operation of the 
                project.
            ``(3) Deadline for applications.--The Secretary shall 
        establish an annual deadline for receipt of applications under 
        this subsection.
            ``(4) Evaluation.--The Secretary shall evaluate all 
        applications received by the annual deadline to determine 
        whether the applications meet criteria established by the 
        Secretary.
            ``(5) Selection.--The Secretary, except as otherwise 
        provided in this section, shall select for Federal support for 
        preconstruction planning any project that the Secretary 
        determines meets the criteria.
    ``(c) Phase II--Environmental Impact Studies.--
            ``(1) In general.--A State, State-designated authority, or 
        multistate-designated authority that has conducted (under this 
        section or any other provision of law) 1 or more studies that 
        address each of the requirements of subsection (b)(2) may apply 
        for Federal funding to assist in--
                    ``(A) preparing an environmental impact statement 
                or similar analysis required under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.); and
                    ``(B) planning for construction, operation, and 
                maintenance of a MAGLEV project.
            ``(2) Deadline for applications.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) establish an annual deadline for 
                        receipt of Phase II applications; and
                            ``(ii) evaluate all applications received 
                        by that deadline in accordance with criteria 
                        established under subparagraph (B).
                    ``(B) Criteria.--The Secretary shall establish 
                criteria to evaluate applications that include 
                whether--
                            ``(i) the technology selected is available 
                        for deployment at the time of the application;
                            ``(ii) operating revenues combined with 
                        known and dedicated sources of other revenues 
                        in any year will exceed annual operation and 
                        maintenance costs;
                            ``(iii) over the life of the MAGLEV 
                        project, total project benefits will exceed 
                        total project costs; and
                            ``(iv) the proposed capital financing plan 
                        is realistic and does not assume Federal 
                        assistance that is greater than the maximums 
                        specified in clause (ii).
                    ``(C) Projects selected.--If the Secretary 
                determines that a MAGLEV project meets the criteria 
                established under subparagraph (B), the Secretary 
                shall--
                            ``(i) select that project for Federal Phase 
                        II support; and
                            ``(ii) publish in the Federal Register a 
                        notice of intent to prepare an environmental 
                        impact statement or similar analysis required 
                        under the National Environmental Policy Act of 
                        1969 (42 U.S.C. 4321 et seq.).
    ``(d) Phase III--Deployment.--The State, State-designated agency, 
multistate-designated agency, or special purpose entity that is part of 
a public-private partnership (meeting the TEA-21 criteria) sponsoring a 
MAGLEV project that has completed a final environmental impact 
statement or similar analysis required under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) for both the MAGLEV project 
and the entire corridor of which the MAGLEV project is the initial 
operating segment, and has completed planning studies for the 
construction, operation, and maintenance of the MAGLEV project, under 
this or any other program, may submit an application to the Secretary 
for Federal funding of a portion of the capital costs of planning, 
financing, constructing, and equipping the preferred alternative 
identified in the final environmental impact statement or analysis.
    ``(e) Financial Assistance.--
            ``(1) In general.--The Secretary shall make available 
        financial assistance to pay the Federal share of the full 
        project costs of projects selected under this section.
            ``(2) Prevailing wage and certain tea-21 criteria.--
        Sections 5333(a) and the TEA-21 criteria, shall apply to 
        financial assistance made available under this section and 
        projects funded with that assistance.
            ``(3) Federal share.--
                    ``(A) Phase i and phase ii.--For Phase I--
                preconstruction planning and Phase II--environmental 
                impact studies carried out under subsections (b) and 
                (c), respectively, the Federal share of the costs of 
                the planning and studies shall be not more than \2/3\ 
                of the full cost of the planning and studies.
                    ``(B) Phase iii.--For Phase III--deployment 
                projects carried out under subsection (d), not more 
                than \2/3\ of the full capital cost of such a project 
                shall be made available from funds appropriated for 
                this program.
            ``(4) Funding.--
                    ``(A) Contract authority; authorization of 
                appropriations.--
                            ``(i) In general.--There is authorized to 
                        be appropriated from the Highway Trust Fund 
                        (other than the Mass Transit Account) for 
                        fiscal years 2005 through 2009 to carry out 
                        this section--
                                    ``(I) $10,000,000 for Phase I--
                                preconstruction planning studies;
                                    ``(II) $20,000,000 for Phase II--
                                environmental impact studies; and
                                    ``(III) $60,000,000 for Phase III--
                                deployment projects.
                            ``(ii) Obligation authority.--Funds 
                        authorized by this subparagraph shall be 
                        available for obligation in the same manner as 
                        if the funds were apportioned under chapter I, 
                        except that--
                                    ``(I) the Federal share of the cost 
                                of the project shall be in accordance 
                                with paragraph (2); and
                                    ``(II) the availability of the 
                                funds shall be in accordance with 
                                subsection (f).
                    ``(B) Noncontract authority authorization of 
                appropriations.--
                            ``(i) Phase i.--There are authorized to be 
                        appropriated from the Highway Trust Fund (other 
                        than the Mass Transit Account) to carry out 
                        Phase I--preconstruction planning studies under 
                        subsection (b)--
                                    ``(I) $6,000,000 for fiscal year 
                                2005; and
                                    ``(II) $2,000,000 for each of 
                                fiscal years 2006 through 2009.
                            ``(ii) Phase ii.--There are authorized to 
                        be appropriated from the Highway Trust Fund 
                        (other than the Mass Transit Account) to carry 
                        out Phase II--environmental impact studies 
                        under subsection (c)--
                                    ``(I) $25,000,000 for fiscal year 
                                2005;
                                    ``(II) $37,000,000 for fiscal year 
                                2006;
                                    ``(III) $21,000,000 for fiscal year 
                                2007; and
                                    ``(IV) $9,000,000 for each of 
                                fiscal years 2008 and 2009.
                            ``(iii) Phase iii.--There are authorized to 
                        be appropriated from the Highway Trust Fund 
                        (other than the Mass Transit Account) to carry 
                        out Phase III--deployment projects under 
                        subsection (d)--
                                    ``(I) $500,000,000 for fiscal year 
                                2005;
                                    ``(II) $650,000,000 for fiscal year 
                                2006;
                                    ``(III) $850,000,000 for fiscal 
                                year 2007;
                                    ``(IV) $850,000,000 for fiscal year 
                                2008; and
                                    ``(V) $600,000,000 for fiscal year 
                                2009.
                            ``(iv) Program administration.--There are 
                        authorized to be appropriated from the Highway 
                        Trust Fund (other than the Mass Transit 
                        Account) to carry out administration of this 
                        program--
                                    ``(I) $13,000,000 for fiscal year 
                                2005;
                                    ``(II) $16,000,000 for fiscal year 
                                2006;
                                    ``(III) $8,000,000 for fiscal year 
                                2007; and
                                    ``(IV) $5,000,000 for each of 
                                fiscal years 2008 and 2009.
                            ``(v) Research and development.--There is 
                        authorized to be appropriated from the Highway 
                        Trust Fund (other than the Mass Transit 
                        Account) to carry out research and development 
                        activities to reduce MAGLEV deployment costs 
                        $4,000,000 for each of fiscal years 2005 
                        through 2009.
    ``(f) Availability of Funds.--Funds made available under subsection 
(e) shall remain available until expended.
    ``(g) Other Federal Funds.--Funds made available to a State to 
carry out the surface transportation program under section 133 and the 
congestion mitigation and air quality improvement programs under 
section 149 may be used by any State to pay a portion of the full 
project costs of an eligible project selected under this section, 
without requirement for non-Federal funds.
    ``(h) Other Federal Funds.--A project selected for funding under 
this section shall be eligible for other forms of financial assistance 
provided by this title and title V of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 821 et seq.), including loans, 
loan guarantees, and lines of credit.
    ``(i) Mandatory Additional Selection.--
            ``(1) In general.--Subject to paragraph 2, in selecting 
        projects for preconstruction planning, deployment, and 
        financial assistance, the Secretary may only provide funds to 
        MAGLEV projects that meet the criteria established under 
        subsection (b)(4).
            ``(2) Priority funding.--The Secretary shall give priority 
        funding to a MAGLEV project that--
                    ``(A) has already met the TEA-21 criteria and has 
                received funding prior to the date of enactment of the 
                Safe, Affordable, Flexible, and Efficient 
                Transportation Equity Act of 2005 as a result of 
                evaluation and contracting procedures for MAGLEV 
                transportation, to the extent that the project 
                continues to fulfill the requirements of this section;
                    ``(B) to the maximum extent practicable, has met 
                safety guidelines established by the Secretary to 
                protect the health and safety of the public;
                    ``(C) is based on designs that ensure the greatest 
                life cycle advantages for the project;
                    ``(D) contains domestic content of at least 70 
                percent; and
                    ``(E) is designed and developed through public/
                private partnership entities and continues to meet the 
                TEA-21 criteria relating to public/private 
                partnerships.''.
    (b) Conforming Amendment.--The analysis for chapter 3 of title 23, 
United States Code, is amended by striking the item relating to section 
322 and inserting the following:

``322. High-speed magnetic levitation system deployment program.''.

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 VI 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 $18,308,420, 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. [RESERVED.]

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 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 1105(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)(5)(A) of the Transportation Equity Act for the 21st 
Century (23 U.S.C. 202 note; 112 Stat. 206) is amended by striking 
``$1,500,000 for each of fiscal years 1998 through 2003'' and inserting 
``$1,800,000 for each of fiscal years 2005 through 2009''.

SEC. 1827. VALUE PRICING PILOT PROGRAM.

    Section 1012(b)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (23 U.S.C. 149 note; 105 Stat. 1938) is amended 
in the first sentence by striking ``The Secretary'' and inserting ``For 
fiscal year 2005 and each fiscal year thereafter, the Secretary''.

SEC. 1828. CREDIT TO STATE OF LOUISIANA FOR STATE MATCHING FUNDS.

    (a) In General.--The Secretary may provide a credit to the State of 
Louisiana in an amount equal to the cost of any planning, engineering, 
design, or construction work carried out by the State on any project 
that the Secretary determines is in accordance with the project 
numbered 202 under section 1602 of the Transportation Equity Act for 
the 21st Century (Public Law 105-178; 112 Stat. 256).
    (b) Eligibility of Credit.--The credit shall be eligible for use 
for any future payment relating to the completion of a project 
described in subsection (a) that is required by the State under title 
23, United States Code.

SEC. 1829. APPROVAL AND FUNDING FOR CERTAIN CONSTRUCTION PROJECTS.

    (a) In General.--Not later than 30 days after the date of receipt 
by the Secretary of a construction authorization request from the State 
transportation department for the State of Georgia for project number 
STP-189-1(15)CT 3 in Gwinnett County, Georgia, the Secretary shall--
            (1) approve the project; and
            (2) reserve such Federal funds available to the Secretary 
        as are necessary to carry out the project.
    (b) Conformity Determination.--
            (1) In general.--Approval, funding, and implementation of 
        the project referred to in subsection (a) shall not be subject 
        to the requirements of part 93 of title 40, Code of Federal 
        Regulations (or successor regulations).
            (2) Regional emissions.--Notwithstanding paragraph (1), all 
        subsequent regional emission analyses required by section 
        93.118 or 93.119 of title 40, Code of Federal Regulations (or 
        successor regulations), shall include the project.

SEC. 1830. NOTICE REGARDING PARTICIPATION OF SMALL BUSINESS CONCERNS.

    The Secretary of Transportation shall notify each State or 
political subdivision of a State to which the Secretary of 
Transportation awards a grant or other Federal funds of the criteria 
for participation by a small business concern in any program or project 
that is funded, in whole or in part, by the Federal Government under 
section 155 of the Small Business Reauthorization and Manufacturing 
Assistance Act of 2004 (15 U.S.C. 567g).

SEC. 1831. ALASKA WAY VIADUCT STUDY.

    (a) Findings.--Congress finds that--
            (1) in 2001, the Alaska Way Viaduct, a critical segment of 
        the National Highway System in Seattle, Washington, was 
        seriously damaged by the Nisqually earthquake;
            (2) an effort to address the possible repair, retrofit, or 
        replacement of the Alaska Way Viaduct that conforms with the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) is underway; and
            (3) as a result of the efforts referred to in paragraph 
        (1), a locally preferred alternative for the Alaska Way Viaduct 
        is being developed.
    (b) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Highway Administration.
            (2) City.--The term ``City'' means the city of Seattle, 
        Washington.
            (3) Earthquake.--The term ``earthquake'' means the 
        Nisqually earthquake of 2001.
            (4) Fund.--The term ``Fund'' means the emergency fund 
        authorized under section 125 of title 23, United States Code.
            (5) State.--The term ``State'' means the Washington State 
        Department of Transportation.
            (6) Viaduct.--The term ``Viaduct'' means the Alaska Way 
        Viaduct.
    (c) Study.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Administrator, in cooperation with 
        the State and the City, shall conduct a comprehensive study to 
        determine the specific damage to the Viaduct from the 
        earthquake that contribute to the ongoing degradation of the 
        Viaduct.
            (2) Requirements.--The study under paragraph (1) shall--
                    (A) identify any repair, retrofit, and replacement 
                costs for the Viaduct that are eligible for additional 
                assistance from the Fund, consistent with the emergency 
                relief manual governing eligible expenses from the 
                Fund; and
                    (B) determine the amount of assistance from the 
                Fund for which the Viaduct is eligible.
            (3) Report.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report that describes the findings of the study.

SEC. 1832. BRIDGE CONSTRUCTION, NORTH DAKOTA.

    Notwithstanding any other provision of law, and regardless of the 
source of Federal funds, the Federal share of the eligible costs of 
construction of a bridge between Bismarck, North Dakota, and Mandan, 
North Dakota, shall be 90 percent.

SEC. 1833. COMMUNITY ENHANCEMENT STUDY.

    (a) In General.--The Secretary shall conduct a study on--
            (1) the role of well-designed transportation projects in--
                    (A) promoting economic development;
                    (B) protecting public health, safety, and the 
                environment; and
                    (C) enhancing the architectural design and planning 
                of communities; and
            (2) the positive economic, cultural, aesthetic, scenic, 
        architectural, and environmental benefits of those projects for 
        communities.
    (b) Contents.--The study shall address--
            (1) the degree to which well-designed transportation 
        projects--
                    (A) have positive economic, cultural, aesthetic, 
                scenic, architectural, and environmental benefits for 
                communities;
                    (B) protect and contribute to improvements in 
                public health and safety; and
                    (C) use inclusive public participation processes to 
                achieve quicker, more certain, and better results;
            (2) the degree to which positive results are achieved by 
        linking transportation, design, and the implementation of 
        community visions for the future; and
            (3) methods of facilitating the use of successful models or 
        best practices in transportation investment or development to 
        accomplish--
                    (A) enhancement of community identity;
                    (B) protection of public health and safety;
                    (C) provision of a variety of choices in housing, 
                shopping, transportation, employment, and recreation;
                    (D) preservation and enhancement of existing 
                infrastructure; and
                    (E) creation of a greater sense of community 
                through public involvement.
    (c) Administration.--
            (1) In general.--To carry out this section, the Secretary 
        shall make a grant to, or enter into a cooperative agreement or 
        contract with, a national organization with expertise in the 
        design of a wide range of transportation and infrastructure 
        projects, including the design of buildings, public facilities, 
        and surrounding communities.
            (2) Federal share.--Notwithstanding section 1221(e)(2) of 
        the Transportation Equity Act for the 21st Century (23 U.S.C. 
        101 note), the Federal share of the cost of the study under 
        this section shall be 100 percent.
    (d) Report.--Not later than September 20, 2006, the Secretary shall 
submit to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Environment and Public 
Works of the Senate a report on the results of the study under this 
section.
    (e) Authorization.--Of the amounts made available to carry out 
section 1221 of the Transportation Equity Act for the 21st Century (23 
U.S.C. 101 note), $1,000,000 shall be available for each of fiscal 
years 2005 and 2006 to carry out this section.

SEC. 1834. COMPREHENSIVE COASTAL EVACUATION PLAN.

    (a) In General.--The Secretary of Transportation and the Secretary 
of Homeland Security (referred to in this section as the 
``Secretaries'') shall jointly develop a written comprehensive plan for 
evacuation of the coastal areas of the United States during any natural 
or man-made disaster that affects coastal populations.
    (b) Consultation.--In developing the comprehensive plan, the 
Secretaries shall consult with Federal, State, and local transportation 
and emergency management officials that have been involved with 
disaster related evacuations.
    (c) Contents.--The comprehensive plan shall--
            (1) consider, on a region-by-region basis, the extent to 
        which coastal areas may be affected by a disaster; and
            (2) address, at a minimum--
                    (A) all practical modes of transportation available 
                for evacuations;
                    (B) methods of communicating evacuation plans and 
                preparing citizens in advance of evacuations;
                    (C) methods of coordinating communication with 
                evacuees during plan execution;
                    (D) precise methods for mass evacuations caused by 
                disasters such as hurricanes, flash flooding, and 
                tsunamis; and
                    (E) recommended policies, strategies, programs, and 
                activities that could improve disaster-related 
                evacuations.
    (d) Report and Updates.--The Secretaries shall--
            (1) not later than October 1, 2006, submit to Congress the 
        written comprehensive plan; and
            (2) periodically thereafter, but not less often than every 
        5 years, update, and submit to Congress any revision to, the 
        plan.

SEC. 1835. PRIORITY PROJECTS.

    Section 1602 of the Transportation Equity Act for the 21st Century 
(112 Stat. 306) is amended in item 1349 of the table contained in that 
section by inserting ``, and improvements to streets and roads 
providing access to,'' after ``along''.

SEC. 1836. TRANSPORTATION NEEDS, GRAYLING, MICHIGAN.

    Item number 820 in the table contained in section 1602 of the 
Transportation Equity Act for the 21st Century (112 Stat. 287) is 
amended by striking ``Conduct'' and all that follows through 
``interchange'' and inserting ``Conduct a transportation needs study 
and make improvements to I-75 interchanges in the Grayling area''.

SEC. 1837. US-95 PROJECT, LAS VEGAS, NEVADA.

    Unless an agreement is reached between the Federal Highway 
Administration, the State of Nevada, and the Sierra Club, the State of 
Nevada may continue to completion construction of the project entitled 
``US-95 Project in Las Vegas, Nevada'', as approved by the Federal 
Highway Administration on November 18, 1999, and selected in the record 
of decision dated January 28, 2000, on June 30, 2005.

                   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) $198,050,704 for fiscal year 2005;
                            (ii) $201,805,220 for fiscal year 2006;
                            (iii) $204,621,107 for fiscal year 2007;
                            (iv) $206,498,365 for fiscal year 2008; and
                            (v) $209,314,252 for fiscal year 2009.
                    (B) Surface transportation-environmental 
                cooperative research program.--For each of fiscal years 
                2005 through 2009, the Secretary shall set aside 
                $18,772,579 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) $26,281,610 for fiscal year 2005;
                    (B) $27,220,239 for fiscal year 2006;
                    (C) $28,158,868 for fiscal year 2007;
                    (D) $29,097,497 for fiscal year 2008; and
                    (E) $30,036,126 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, $26,281,610 for each of fiscal years 2005 
        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) $115,451,358 for fiscal year 2005;
                    (B) $118,267,245 for fiscal year 2006;
                    (C) $121,083,132 for fiscal year 2007;
                    (D) $123,899,019 for fiscal year 2008; and
                    (E) $126,714,906 for fiscal year 2009.
            (5) University transportation centers.--For carrying out 
        section 510 of title 23, United States Code $42,238,302 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) $25,342,981 for each of fiscal years 2005 
                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) $10,000,000 for each of fiscal years 2005 
                through 2009 shall be available to carry out the long-
                term pavement performance program under section 502(e) 
                of that title;
                    (C) $5,000,000 for each of fiscal years 2005 
                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, of 
                which $750,000 for each fiscal year shall be used by 
                the Secretary to carry out demonstration projects 
                involving the use of ultra-high-performance concrete 
                with ductility;
                    (D) $5,000,000 for each of fiscal years 2005 
                through 2009 shall be made available to carry out the 
                high-performing steel bridge research and technology 
                transfer program under section 502(k) of title 23, 
                United States Code;
                    (E) $5,000,000 for each of fiscal years 2005 
                through 2009 shall be made available to carry out 
                research on asphalt used in highway pavements;
                    (F) $5,000,000 for each of fiscal years 2005 
                through 2009 shall be made available to carry out 
                research on concrete pavements;
                    (G) $5,000,000 for each of fiscal years 2005 
                through 2009 shall be made available to carry out 
                research on alternative materials;
                    (H) $3,000,000 for each of fiscal years 2005 
                through 2009 shall be made available to carry out 
                research on aggregates used in highway pavements, 
                including alternative materials used in highway 
                drainage applications;
                    (I) $3,000,000 for each of fiscal years 2005 
                through 2009 shall be made available for further 
                development and deployment of techniques to prevent and 
                mitigate alkali silica reactivity;
                    (J) $1,500,000 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
                    (K) $2,500,000 for each of fiscal years 2005 
                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), $56,317,736 for each of 
        fiscal years 2005 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) $11,732,862 for fiscal year 2005, $12,202,176 
                for fiscal year 2006, $12,671,491 for fiscal year 2007, 
                $13,140,805 for fiscal year 2008, and $13,610,119 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) $14,079,434 for each of fiscal years 2005 
                through 2009 shall be available to carry out section 
                504(b) of that title (relating to local technical 
                assistance); and
                    (C) $2,815,887 for each of fiscal years 2005 
                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), $469,314 for each of fiscal years 2005 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 2005 through 2009, to carry out section 509 of 
        title 23, United States Code, the Secretary shall set aside--
                    (A) $14,079,434 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) $17,833,949 of the amounts made available for 
                the National Highway System under section 101 of title 
                23, United States Code, for the fiscal year;
                    (C) $12,202,176 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) $18,772,579 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) $4,693,145 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) $2,815,887 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 $28,158,868 for each of fiscal 
        years 2005 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) $408,491,420 for fiscal year 2005;
            (2) $416,000,453 for fiscal year 2006;
            (3) $422,570,857 for fiscal year 2007;
            (4) $428,202,637 for fiscal year 2008; and
            (5) $434,773,037 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, and the National 
        Center for Earthquake Engineering Research at the University of 
        Buffalo, 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, 2005, 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 2005, 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) 
$12,000,000 for each of fiscal years 2005 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.
    ``(k) High-Performing Steel 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-performing steel in the construction and rehabilitation of 
bridges.
``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 
                2005, 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 2005 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 2005, 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 
                2005, 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 $187,726 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 2005, 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 2005, 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, 2005, 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 
                2005 and 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 2005 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 2005 
                through 2009, the Secretary shall make a grant in the 
                amount of $938,629 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) $375,452 for fiscal year 2005; and
                            ``(ii) $563,177 for each of fiscal years 
                        2006 and 2007.
                    ``(C) Group c.--For each of fiscal years 2005 
                through 2007, the Secretary shall make a grant in the 
                amount of $938,629 to each of the institutions in group 
                C (as described in subsection (a)(4)(C)).
                    ``(D) Group d.--For each of fiscal years 2005 
                through 2009, the Secretary shall make a grant in the 
                amount of $1,877,258 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 grants in an amount totaling $37,545,924 to 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 2005, the Secretary shall use to 
        carry out this subsection--
                    ``(A) $9,386,289 for fiscal year 2005; and
                    ``(B) $11,263,547 for each of fiscal years 2006 
                through 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 2005 for each of fiscal years 2005 through 2009, the Secretary 
shall use $893,082 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.--Section 111 of title 49, United States 
Code, is amended--
            (1) by redesignating subsection (k) as subsection (m);
            (2) 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 2005 shall be used only for the collection and statistical 
analysis of information relating to surface transportation systems.''; 
and
            (3) in subsection (m) (as redesignated by subparagraph 
        (A)), by inserting ``surface transportation'' after ``sale 
        of''.

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 2005 through 
        2009, of the funds made available under section 2001(a)(1)(A), 
        the Secretary shall set aside $9,386,289 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), $1,407,943 for each of fiscal years 2005 and 2006 shall be 
available to carry out this section.

SEC. 2105. TRANSPORTATION TECHNOLOGY INNOVATION AND DEMONSTRATION 
              PROGRAM.

    Section 5117(b) of the Transportation Equity Act for the 21st 
Century (112 Stat 449; 112 Stat. 864; 115 Stat. 2330) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Intelligent transportation infrastructure.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Congested area.--The term `congested 
                        area' means a metropolitan area that 
                        experiences significant traffic congestion, as 
                        determined by the Secretary on an annual basis.
                            ``(ii) Deployment area.--The term 
                        `deployment area' means any of the metropolitan 
                        areas of Baltimore, Birmingham, Boston, 
                        Chicago, Cleveland, Dallas/Ft. Worth, Denver, 
                        Detroit, Houston, Indianapolis, Las Vegas, Los 
                        Angeles, Miami, New York/Northern New Jersey, 
                        Northern Kentucky/Cincinnati, Oklahoma City, 
                        Orlando, Philadelphia, Phoenix, Pittsburgh, 
                        Portland, Providence, Salt Lake, San Diego, San 
                        Francisco, St. Louis, Seattle, Tampa, and 
                        Washington, District of Columbia.
                            ``(iii) Metropolitan area.--
                                    ``(I) In general.--The term 
                                `metropolitan area' means any area 
                                that--
                                            ``(aa) has a population 
                                        exceeding 300,000; and
                                            ``(bb) meets criteria 
                                        established by the Secretary in 
                                        conjunction with the 
                                        intelligent vehicle highway 
                                        systems corridors program.
                                    ``(II) Inclusions.--The term 
                                `metropolitan area' includes a major 
                                transportation corridor serving a 
                                metropolitan area.
                            ``(iv) Original contract.--The term 
                        `original contract' means the Department of 
                        Transportation contract numbered DTTS 59-99-D-
                        00445 T020013.
                            ``(v) Program.--The term `program' means 
                        the 2-part intelligent transportation 
                        infrastructure program carried out under this 
                        paragraph.
                            ``(vi) State transportation department.--
                        The term `State transportation department' 
                        means--
                                    ``(I) a State transportation 
                                department (as defined in section 101 
                                of title 23, United States Code); and
                                    ``(II) a designee of a State 
                                transportation department (as so 
                                defined) for the purpose of entering 
                                into contracts.
                            ``(vii) Uncommitted funds--The term 
                        `uncommitted funds' means the total amount of 
                        funds that, as of the date that is 180 days 
                        after the date of enactment of the Safe, 
                        Accountable, Flexible, and Efficient 
                        Transportation Equity Act of 2005, remain 
                        uncommitted under the original contract.
                    ``(B) Intelligent transportation infrastructure 
                program.--
                            ``(i) In general.--The Secretary shall 
                        carry out a 2-part intelligent transportation 
                        infrastructure program in accordance with this 
                        paragraph to advance the deployment of an 
                        operational intelligent transportation 
                        infrastructure system, through measurement of 
                        various transportation system activities, to 
                        simultaneously--
                                    ``(I) aid in transportation 
                                planning and analysis; and
                                    ``(II) make a significant 
                                contribution to the ITS program under 
                                this title.
                            ``(ii) Objectives.--The objectives of the 
                        program shall be--
                                    ``(I) to build or integrate an 
                                infrastructure of the measurement of 
                                various transportation system metrics 
                                to aid in planning, analysis, and 
                                maintenance of the Department of 
                                Transportation, including the buildout, 
                                maintenance, and operation of greater 
                                than 40 metropolitan area systems with 
                                a total cost of not to exceed 
                                $2,000,000 for each metropolitan area;
                                    ``(II) to provide private 
                                technology commercialization 
                                initiatives to generate revenues that 
                                will be reinvested in the intelligent 
                                transportation infrastructure system;
                                    ``(III) to aggregate data into 
                                reports for multipoint data 
                                distribution techniques; and
                                    ``(IV) with respect to part I of 
                                the program under subparagraph (C), to 
                                use an advanced information system 
                                designed and monitored by an entity 
                                with experience with the Department of 
                                Transportation in the design and 
                                monitoring of high-reliability, 
                                mission-critical voice and data 
                                systems.
                    ``(C) Part i.--
                            ``(i) In general.--In carrying out part I 
                        of the program, the Secretary shall permit the 
                        entity to which the original contract was 
                        awarded to use uncommitted funds to deploy 
                        intelligent transportation infrastructure 
                        systems that have been accepted by the 
                        Secretary--
                                    ``(I) in accordance with the terms 
                                of the original contract; and
                                    ``(II) in any deployment area, with 
                                the consent of the State transportation 
                                department for the deployment area.
                            ``(ii) Applicable conditions.--The same 
                        asset ownership, maintenance, fixed price 
                        contract, and revenue sharing model, and the 
                        same competitively selected consortium leader, 
                        as were used for the deployment of intelligent 
                        transportation infrastructure systems under the 
                        original contract before the date of enactment 
                        of the Safe, Accountable, Flexible, and 
                        Efficient Transportation Equity Act of 2005 
                        shall apply to each deployment carried out 
                        under clause (i).
                            ``(iii) Deployment in congested areas.--If 
                        the entity referred to in clause (i) is unable 
                        to commit the uncommitted funds by deploying 
                        intelligent transportation infrastructure 
                        systems in deployment areas, as determined by 
                        the Secretary, the entity may deploy the 
                        systems in accordance with this paragraph in 1 
                        or more congested areas, with the consent of 
                        the State transportation departments for the 
                        congested areas.
                    ``(D) Part ii.--
                            ``(i) In general.--In carrying out part II 
                        of the program, the Secretary shall award, on a 
                        competitive basis, contracts for the deployment 
                        of intelligent transportation infrastructure 
                        systems that have been accepted by the 
                        Secretary in congested areas, with the consent 
                        of the State transportation departments for the 
                        congested areas.
                            ``(ii) Requirements.--The Secretary shall 
                        award contracts under clause (i)--
                                    ``(I) for individual congested 
                                areas among entities that seek to 
                                deploy intelligent transportation 
                                infrastructure systems in the congested 
                                areas; and
                                    ``(II) on the condition that the 
                                terms of each contract awarded requires 
                                the entity deploying the intelligent 
                                transportation infrastructure system to 
                                ensure that the deployed system is 
                                compatible (as determined by the 
                                Secretary) with systems deployed in 
                                other congested areas under this 
                                paragraph.
                            ``(iii) Provisions in contracts.--The 
                        Secretary shall require that each contract for 
                        the deployment of an intelligent transportation 
                        infrastructure system under this subparagraph 
                        contain such provisions relating to asset 
                        ownership, maintenance, fixed price, and 
                        revenue sharing as the Secretary considers to 
                        be appropriate.
                    ``(E) Use of funds for undeployed systems.--
                            ``(i) In general.--If, under part I or part 
                        II of the program, a State transportation 
                        department for a deployment area or congested 
                        area does not consent by the later of the date 
                        that is 180 days after the date of enactment of 
                        the Safe, Accountable, Flexible, and Efficient 
                        Transportation Equity Act of 2005, or another 
                        date determined jointly by the State 
                        transportation department and the deployment 
                        area or congested area, to participate in the 
                        deployment of an intelligent transportation 
                        infrastructure system in the deployment area or 
                        congested area, upon application by any other 
                        deployment area or congested area that has 
                        consented by that date to participate in the 
                        deployment of such a system, the Secretary 
                        shall supplement the funds made available for 
                        each of the deployment areas or congested areas 
                        submitting the application by using for that 
                        purpose the funds not used for deployment of 
                        the system in the nonparticipating deployment 
                        area or congested area.
                            ``(ii) No inclusion in cost limitation.--
                        Costs paid using funds provided through a 
                        supplementation under clause (i) shall not be 
                        considered in determining the limitation on 
                        maximum cost described in subparagraph (F)(ii).
                    ``(F) Federal share; limits on costs of systems for 
                metropolitan areas.--
                            ``(i) Federal share.--Subject to clause 
                        (ii), the Federal share of the cost of any 
                        project or activity carried out under the 
                        program shall be 80 percent.
                            ``(ii) Limit on costs of system for each 
                        metropolitan area.--
                                    ``(I) In general.--Not more than 
                                $2,000,000 may be provided under this 
                                paragraph for deployment of an 
                                intelligent transportation 
                                infrastructure system for a 
                                metropolitan area.
                                    ``(II) Funding under each part.--A 
                                metropolitan area in which an 
                                intelligent transportation 
                                infrastructure system is deployed under 
                                part I or part II of the program under 
                                subparagraph (C) or (D), respectively, 
                                including through a supplementation of 
                                funds under subparagraph (E), may not 
                                receive any additional deployment under 
                                the other part of the program.
                    ``(G) Use of rights-of-way.--
                            ``(i) In general.--An intelligent 
                        transportation system project described in this 
                        paragraph or paragraph (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 for the 
                        project, 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--
                                    ``(I) to regulate highway safety; 
                                or
                                    ``(II) under sections 253 and 
                                332(c)(7) of the Communications Act of 
                                1934 (47 U.S.C. 253, 332(c)(7)).
                    ``(H) Funding.--
                            ``(i) Authorization of appropriations.--
                        There is authorized to be appropriated out of 
                        the Highway Trust Fund (other than the Mass 
                        Transit Account) to carry out subparagraph (D) 
                        $4,465,409 for each fiscal year.
                            ``(ii) Additional amounts.--In addition to 
                        the amounts authorized to be appropriated under 
                        this subparagraph, funds made available under 
                        title II of the Safe, Affordable, Flexible, and 
                        Efficient Transportation Equity Act of 2005, 
                        and titles 23 and 49, United States Code, for 
                        projects and activities the objectives of which 
                        are consistent with the objectives described in 
                        subparagraph (B)(ii), may be used to carry out 
                        part II of the program under subparagraph (D).
                            ``(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.
                            ``(iv) No effect on previously committed 
                        funds.--Nothing in this paragraph affects any 
                        funds committed under the original contract 
                        before the date of enactment of the Safe, 
                        Accountable, Flexible, and Efficient 
                        Transportation Equity Act of 2005.
                            ``(v) Contract authority.--Except as 
                        provided in subparagraph (F)(i), funds 
                        authorized to be appropriated under this 
                        subparagraph shall be available for obligation 
                        in the same manner as if the funds were 
                        apportioned under chapter 1 of title 23, United 
                        States Code.''.

         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, 
        photonics, 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 $1,407,943 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 2005, 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 2005 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--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

SEC. 3101. 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 should be 
        included in that context.

SEC. 3102. 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 
                2005''; 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 2005 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 
                                        3103 of the Safe, Accountable, 
                                        Flexible, and Efficient 
                                        Transportation Equity Act of 
                                        2005 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 
                                        3103 of the Safe, Accountable, 
                                        Flexible, and Efficient 
                                        Transportation Equity Act of 
                                        2005 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 3103 of the Safe, 
                                        Accountable, Flexible, and 
                                        Efficient Transportation Equity 
                                        Act of 2005 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 3103 of the Safe, 
                                        Accountable, Flexible, and 
                                        Efficient Transportation Equity 
                                        Act of 2005 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 2005, 
                                $34,163,000,000;
                                    ``(II) for fiscal year 2006, 
                                $36,972,000,000;
                                    ``(III) for fiscal year 2007, 
                                $38,241,000,000;
                                    ``(IV) for fiscal year 2008, 
                                $39,432,000,000; and
                                    ``(V) for fiscal year 2009, 
                                $40,557,000,000.
                            ``(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 2005--
                    (A) $33,657,000,000 for the highway category; and
                    (B) $6,844,000,000 for the mass transit category;
            (2) for fiscal year 2006--
                    (A) $37,086,000,000 for the highway category; and
                    (B) $5,989,000,000 for the mass transit category;
            (3) for fiscal year 2007--
                    (A) $40,192,000,000 for the highway category; and
                    (B) $7,493,000,000 for the mass transit category;
            (4) for fiscal year 2008--
                    (A) $41,831,000,000 for the highway category; and
                    (B) $8,479,000,000 for the mass transit category; 
                and
            (5) for fiscal year 2009--
                    (A) $42,883,000,000 for the highway category; and
                    (B) $9,131,000,000 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 3103 of the 
                        Transportation Equity Act for the 21st 
                        Century'' and inserting ``section 6102 of the 
                        Safe, Accountable, Flexible, and Efficient 
                        Transportation Equity Act of 2005''; and
                    (B) in clause (ii), by striking ``2000, 2001, 2002, 
                or 2003'' and inserting ``2006, 2007, 2008, and 2009''.

SEC. 3103. 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 2005, $35,154,000,000;
            (2) for fiscal year 2006, $40,110,000,000;
            (3) for fiscal year 2007, $40,564,000,000;
            (4) for fiscal year 2008, $42,544,000,000; and
            (5) for fiscal year 2009, $43,281,000,000.
    (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 2005, $7,646,336,000;
            (2) for fiscal year 2006, $8,900,000,000;
            (3) for fiscal year 2007, $9,267,464,000;
            (4) for fiscal year 2008, $10,050,700,000; and
            (5) for fiscal year 2009, $10,685,500,000.

                     TITLE IV--SOLID WASTE DISPOSAL

SEC. 4001. 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;
                    ``(C) blast furnace slag aggregate;
                    ``(D) silica fume; and
                    ``(E) 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. 4002. 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 4001(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 4001(b)) is amended by adding after the item relating to 
section 6005 the following:

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

     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 2005''.
    (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. 5101. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUNDS.

    (a) Extension of Taxes.--
            (1) In general.--The following provisions are each amended 
        by striking ``2005'' each place it appears and inserting 
        ``2011'':
                    (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) (relating to certain alcohol 
                fuels).
                    (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(f) (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 ``2011'', and
                    (B) by striking ``2006'' each place it appears and 
                inserting ``2012''.
    (b) Extension of Certain Exemptions.--The following provisions are 
each amended by striking ``2005'' and inserting ``2011'':
            (1) Section 4221(a) (relating to certain tax-free sales).
            (2) Section 4483(h) (relating to termination of exemptions 
        for highway use tax).
    (c) Extension of Transfers of Certain Taxes.--
            (1) In general.--Paragraphs (1), (2), and (4)(D)((iii) of 
        subsection (b) and subsection (c)(3) of section 9503 (relating 
        to the Highway Trust Fund) are each amended--
                    (A) by striking ``2005'' each place it appears and 
                inserting ``2011'', and
                    (B) by striking ``2006'' each place it appears and 
                inserting ``2012''.
            (2) Motorboat and small-engine fuel tax transfers.--
                    (A) In general.--Paragraphs (4)(A)(i) and (5)(A) of 
                section 9503(c) are each amended by striking ``2005'' 
                and inserting ``2011''.
                    (B) 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--
                            (i) by striking ``2003'' and inserting 
                        ``2009'', and
                            (ii) by striking ``2004'' each place it 
                        appears and inserting ``2010''.
    (d) Extension and Expansion of Expenditures From Trust Funds.--
            (1) Highway trust fund.--
                    (A) Highway account.--Paragraph (1) of section 
                9503(c) is amended--
                            (i) in the matter before subparagraph (A), 
                        by striking ``June 1, 2005'' and inserting 
                        ``October 1, 2009'',
                            (ii) by striking ``or'' at the end of 
                        subparagraph (J),
                            (iii) by striking the period at the end of 
                        subparagraph (K) and inserting ``, or'',
                            (iv) by inserting after subparagraph (K) 
                        the following new subparagraph:
                    ``(L) authorized to be paid out of the Highway 
                Trust Fund under the Safe, Accountable, Flexible, and 
                Efficient Transportation Equity Act of 2005.'', and
                            (v) in the matter after subparagraph (L), 
                        as added by clause (iv), by striking ``Surface 
                        Transportation Extension Act of 2004, Part V'' 
                        and inserting ``Safe, Accountable, Flexible, 
                        and Efficient Transportation Equity Act of 
                        2005''.
                    (B) Mass transit account.--Paragraph (3) of section 
                9503(e) is amended--
                            (i) in the matter before subparagraph (A), 
                        by striking ``June 1, 2005'' and inserting 
                        ``October 1, 2009'',
                            (ii) by striking ``or'' at the end of 
                        subparagraph (H),
                            (iii) by inserting ``or'' at the end of 
                        subparagraph (I),
                            (iv) by inserting after subparagraph (I) 
                        the following new subparagraph:
                    ``(J) Safe, Accountable, Flexible, and Efficient 
                Transportation Equity Act of 2005,'', and
                            (v) in the matter after subparagraph (J), 
                        as added by clause (iv), by striking ``Surface 
                        Transportation Extension Act of 2004, Part V'' 
                        and inserting ``Safe, Accountable, Flexible, 
                        and Efficient Transportation Equity Act of 
                        2005''.
                    (C) Exception to limitation on transfers.--
                Subparagraph (B) of section 9503(b)(6) is amended by 
                striking ``June 1, 2005'' and inserting ``October 1, 
                2009''.
                    (D) Expenditures for Highway Use Tax Evasion 
                Projects.--Section 9503(c) is amended by adding at the 
                end the following new paragraph:
            ``(6) Highway use tax evasion projects.--From amounts 
        available in the Highway Trust Fund, there is authorized to be 
        expended--
                    ``(A) for the period beginning with fiscal year 
                2006 and ending with fiscal year 2009 to the Internal 
                Revenue Service--
                            ``(i) $120,000,000 for enforcement of fuel 
                        tax compliance, including the pre-certification 
                        of tax-exempt users, and
                            ``(ii) $80,000,000 for the excise fuel 
                        information reporting system, of which 
                        $40,000,000 shall be allocated to the excise 
                        summary terminal activity reporting system, and
                    ``(B) for each of the fiscal years 2006, 2007, 
                2008, and 2009 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.''.
            (2) Aquatic resources trust fund.--
                    (A) Sport fish restoration account.--Paragraph (2) 
                of section 9504(b) is amended by striking ``Surface 
                Transportation Extension Act of 2004, Part V'' each 
                place it appears and inserting ``Safe, Accountable, 
                Flexible, and Efficient Transportation Equity Act of 
                2005'' .
                    (B) Exception to limitation on transfers.--
                Paragraph (2) of section 9504(d) is amended by striking 
                ``June 1, 2005'' and inserting ``October 1, 2009''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 5102. 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--Excise Tax Reform and Simplification

                      PART I--HIGHWAY EXCISE TAXES

SEC. 5201. MODIFICATION OF GAS GUZZLER TAX.

    (a) Uniform Application of Tax.--Subparagraph (A) of section 
4064(b)(1) (defining automobile) is amended by striking the second 
sentence.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2005.

SEC. 5202. EXCLUSION FOR TRACTORS WEIGHING 19,500 POUNDS OR LESS FROM 
              FEDERAL EXCISE TAX ON HEAVY TRUCKS AND TRAILERS.

    (a) In General.--Subsection (a) of section 4051 (relating to 
imposition of tax) is amended by redesignating paragraph (4) as 
paragraph (5) and by inserting after paragraph (3) the following new 
paragraph:
            ``(4) Exclusion for tractors weighing 19,500 pounds or 
        less.--The tax imposed by paragraph (1) shall not apply to 
        tractors of the kind chiefly used for highway transportation in 
        combination with a trailer or semitrailer if such tractor has a 
        gross vehicle weight of 19,500 pounds or less (as determined 
        under regulations prescribed by the Secretary).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to sales after September 30, 2005.

SEC. 5203. EXEMPTION FOR EQUIPMENT FOR TRANSPORTING BULK BEDS OF FARM 
              CROPS FROM EXCISE TAX ON RETAIL SALE OF HEAVY TRUCKS AND 
              TRAILERS.

    (a) In General.--Section 4053 of the Internal Revenue Code of 1986 
(relating to exemptions) is amended by adding at the end the following 
new paragraph:
            ``(9) Equipment for transporting bulk beds of farm crops.--
        Any box, container, receptacle, bin, or other similar article 
        the length of which does not exceed 26 feet, which is mounted 
        or placed on an automobile truck, and which is sold to a person 
        who certifies to the seller that--
                    ``(A) such person is actively engaged in the trade 
                or business of farming, and
                    ``(B) the primary use of the article is to haul to 
                and on farms bulk beds of farm crops grown in 
                connection with such trade or business.''.
    (b) Recapture of Tax Upon Resale or Nonexempt Use.--Section 4052 
(relating to definitions and special rules) is amended by redesignating 
subsection (g) as subsection (h) and by inserting after subsection (f) 
the following new subsection:
    ``(g) Imposition of Tax on Sales, Etc., Within 2 Years of Equipment 
for Transporting Bulk Beds of Farm Crops Purchased Tax-Free.--
            ``(1) In general.--If--
                    ``(A) no tax was imposed under section 4051 on the 
                first retail sale of any article described in section 
                4053(9) by reason of its exempt use, and
                    ``(B) within 2 years after the date of such first 
                retail sale, such article is resold by the purchaser or 
                such purchaser makes a substantial nonexempt use of 
                such article,
        then such sale or use of such article by such purchaser shall 
        be treated as the first retail sale of such article for a price 
        equal to its fair market value at the time of such sale or use.
            ``(2) Exempt use.--For purposes of this subsection, the 
        term `exempt use' means any use of an article described in 
        section 4053(9) if the first retail sale of such article is not 
        taxable under section 4051 by reason of such use.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to sales after September 30, 2005.

SEC. 5204. VOLUMETRIC EXCISE TAX CREDIT FOR ALTERNATIVE FUELS.

    (a) Imposition of Tax.--
            (1) In general.--Section 4081(a)(2)(A) (relating to rates 
        of tax), as amended by section 5611 of this Act, is amended--
                    (A) by striking ``and'' at the end of clause (ii),
                    (B) by striking the period at the end of clause 
                (iii), and
                    (C) by adding at the end the following new clauses:
                            ``(iv) in the case of P Series Fuels, 18.3 
                        cents per gallon,
                            ``(v) in the case of compressed natural gas 
                        and hydrogen, 18.3 cents per energy equivalent 
                        of a gallon of gasoline, and
                            ``(vi) in the case of liquefied natural 
                        gas, any liquid fuel (other than ethanol and 
                        methanol) derived from coal (including peat), 
                        and liquid hydrocarbons derived from biomass 
                        (as defined in section 29(c)(3)), 24.3 cents 
                        per gallon.''.
            (2) Treatment of alternative fuel as taxable fuel.--
                    (A) In general.--Section 4083(a)(1) (defining 
                taxable fuel) is amended--
                            (i) by striking ``and'' at the end of 
                        subparagraph (B),
                            (ii) by striking the period at the end of 
                        subparagraph (C) and inserting ``, and'', and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(D) alternative fuel.''.
                    (B) Definition.--Section 4083(a) is amended by 
                adding at the end the following new paragraph:
            ``(4) Alternative fuel.--The term `alternative fuel' 
        means--
                    ``(A) compressed or liquefied natural gas,
                    ``(B) P Series Fuels (as defined by the Secretary 
                of Energy under section 13211(2) of title 42, United 
                States Code,
                    ``(C) hydrogen,
                    ``(D) any liquid fuel (other than ethanol and 
                methanol) derived from coal (including peat), and
                    ``(E) liquid hydrocarbons derived from biomass (as 
                defined in section 29(c)(3)).''.
            (3) Conforming amendment.--Section 4041(a), as amended by 
        section 5101 of this Act, is amended by striking paragraphs (2) 
        and (3) and inserting the following:
            ``(2) Special motor fuels.--
                    ``(A) In general.--There is hereby imposed a tax on 
                any alternative fuel (other than gas oil or fuel oil) 
                and liquefied petroleum gas--
                            ``(i) sold by any person to an owner, 
                        lessee, or other operator of a motor vehicle or 
                        motorboat for use as a fuel in such motor 
                        vehicle or motorboat, or
                            ``(ii) used by any person as a fuel in a 
                        motor vehicle or motorboat unless there was a 
                        taxable sale of such fuel under clause (i).
                    ``(B) Exemption for previously taxed fuel.--No tax 
                shall be imposed by this paragraph on the sale or use 
                of any alternative fuel or liquefied petroleum gas if 
                tax was imposed on such alternative fuel or liquefied 
                petroleum gas under section 4081 and the tax thereon 
                was not credited or refunded.
                    ``(C) Rate of tax.--Except as otherwise provided, 
                the rate of the tax imposed by this paragraph shall be 
                the rate of tax specified in clause (iv), (v), or (vi) 
                of section 4081(a)(2)(A) on the alternative fuel which 
                is in effect at the time of such sale or use. In the 
                case of liquefied petroleum gas, the rate of the tax 
                imposed by this paragraph shall be 13.6 cents per 
                gallon (3.2 cents per gallon in the case of any sale or 
                use after September 30, 2011).
                    ``(D) Bus uses.--No tax shall be imposed by this 
                paragraph on any sale for use, or use, described in 
                subparagraph (B) or (C) of section 6427(b)(2) (relating 
                to school bus and intracity transportation).''.
    (b) Credit for Alternative Fuel and Alternative Fuel Mixtures.--
            (1) In general.--Section 6426(a) (relating to allowance of 
        credits) is amended by striking ``plus'' at the end of 
        paragraph (1), by striking the period at the end of paragraph 
        (2) and by adding at the end the following new paragraphs:
            ``(3) the alternative fuel credit, plus
            ``(4) the alternative fuel mixture credit.''.
            (2) Alternative fuel and alternative fuel mixture credit.--
        Section 6426 (relating to credit for alcohol fuel and biodiesel 
        mixtures) is amended by redesignating subsections (d) and (e) 
        as subsections (f) and (g) and by inserting after subsection 
        (c) the following new subsection:
    ``(d) Alternative Fuel Credit.--
            ``(1) In general.--For purposes of this section, the 
        alternative fuel credit is the product of 50 cents and the 
        number of gallons of an alternative fuel or gasoline gallon 
        equivalents of a nonliquid alternative fuel sold by the 
        taxpayer for use as a motor fuel in a highway vehicle.
            ``(2) Alternative fuel.--For purposes of this section, the 
        term `alternative fuel'--
                    ``(A) has the meaning given such term by 
                subparagraphs (A), (B), (C), and (E) of section 
                4083(a)(4),
                    ``(B) includes any liquid fuel derived from coal 
                (including peat) through the Fischer-Tropsch process, 
                and
                    ``(C) does not include ethanol, methanol, or 
                biodiesel.
            ``(3) Gasoline gallon equivalent.--For purposes of this 
        subsection, the term `gasoline gallon equivalent' means, with 
        respect to any nonliquid alternative fuel, the amount of such 
        fuel having a Btu content of 124,800 (higher heating value).
            ``(4) Termination.--This subsection shall not apply to any 
        sale, use, or removal for any period after September 30, 2009.
    ``(e) Alternative Fuel Mixture Credit.--
            ``(1) In general.--For purposes of this section, the 
        alternative fuel mixture credit is the product of 50 cents and 
        the number of gallons of alternative fuel used by the taxpayer 
        in producing any alternative fuel mixture for sale or use in a 
        trade or business of the taxpayer.
            ``(2) Alternative fuel mixture.--For purposes of this 
        section, the term `alternative fuel mixture' means a mixture of 
        alternative fuel and taxable fuel (as defined in subparagraph 
        (A), (B), or (C) of section 4083(a)(1)) which--
                    ``(A) is sold by the taxpayer producing such 
                mixture to any person for use as fuel in a highway 
                vehicle, or
                    ``(B) is used as a fuel in a highway vehicle by the 
                taxpayer producing such mixture.
            ``(3) Termination.--This subsection shall not apply to any 
        sale, use, or removal for any period after September 30, 
        2009.''.
            (3) Conforming amendments.--
                    (A) The section heading for section 6426 is amended 
                by striking ``alcohol fuel and biodiesel'' and 
                inserting ``certain alternative fuel''.
                    (B) The table of sections for subchapter B of 
                chapter 65 is amended by striking ``alcohol fuel and 
                biodiesel'' in the item relating to section 6426 and 
                inserting ``certain alternative fuel''.
                    (C) Section 6427(a) is amended by striking 
                ``paragraph (2) or (3) of section 4041(a) or section 
                4041(c)'' and inserting ``section 4041(a)(2) or 
                4041(c)''.
                    (D) Section 6427(e) is amended--
                            (i) by inserting ``or the alternative fuel 
                        mixture credit'' after ``biodiesel mixture 
                        credit'' in paragraph (1),
                            (ii) by redesignating paragraphs (2) and 
                        (3) as paragraphs (3) and (4), respectively, 
                        and by inserting after paragraph (1) the 
                        following new paragraph:
            ``(2) Alternative fuel.--If any person produces an 
        alternative fuel 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 alternative fuel credit 
        with respect to such fuel.'',
                            (iii) by striking ``under paragraph (1) 
                        with respect to any mixture'' in paragraph (3) 
                        (as redesignated by clause (ii)) and inserting 
                        ``under paragraph (1) or (2) with respect to 
                        any mixture or alternative fuel'',
                            (iv) by striking ``and'' at the end of 
                        paragraph (4)(A) (as redesignated by clause 
                        (ii)),
                            (v) by striking the period at the end of 
                        paragraph (4)(B) (as so redesignated),
                            (vi) by adding at the end of paragraph (4) 
                        (as so redesignated) the following new 
                        subparagraph:
                    ``(C) any alternative fuel or alternative fuel 
                mixture (as defined in section 6426 (d)(2) or (e)(3)) 
                sold or used after September 30, 2009.'', and
                            (vii) by striking ``or Biodiesel Used To 
                        Produce Alcohol Fuel and Biodiesel Mixtures'' 
                        in the heading and inserting ``, Biodiesel, or 
                        Alternative Fuel''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any sale, use, or removal for any period after September 30, 
2006.

                     PART II--AQUATIC EXCISE TAXES

SEC. 5211. 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)(4) (relating to transfers 
        from Trust Fund for motorboat fuel taxes) 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 received on or after October 1, 2005, and 
                before October 1, 2011, shall be transferred'',
                    (B) by striking subparagraph (A), and
                    (C) by redesignating subparagraphs (B) through (E) 
                as subparagraphs (A) through (D), respectively.
            (2) Conforming amendments.--
                    (A) Subparagraph (B) of section 9503(c)(4), as 
                redesignated by paragraph (1)(C), is amended--
                            (i) by striking ``Account'' in the heading 
                        thereof and inserting ``and Boating Trust 
                        Fund'',
                            (ii) by striking ``or (B)'' in clause (ii), 
                        and
                            (iii) by striking ``account in the Aquatic 
                        Resources'' and inserting ``and Boating''.
                    (B) Paragraph (5) of section 9503(c) is amended by 
                striking ``Account in the Aquatic Resources'' in 
                subparagraph (A) and inserting ``and Boating''.
    (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 and Boating 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)(4), section 9503(c)(5), or 
section 9602(b).''.
            (2) Conforming amendments.--
                    (A) Subsection (b) of section 9504, as amended by 
                section 5001 of this Act, is amended--
                            (i) by striking ``Account'' in the heading 
                        thereof and inserting ``and Boating Trust 
                        Fund'',
                            (ii) by striking ``Account'' both places it 
                        appears in paragraphs (1) and (2) and inserting 
                        ``and Boating 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 thereof,
                            (ii) by striking ``any Account in the 
                        Aquatic Resources'' in paragraph (1) and 
                        inserting ``the Sport Fish Restoration and 
                        Boating'', and
                            (iii) by striking ``any such Account'' in 
                        paragraph (1) and inserting ``such Trust 
                        Fund''.
                    (C) Subsection (e) of section 9504 is amended by 
                striking ``Boat Safety Account and Sport Fish 
                Restoration Account'' and inserting ``Sport Fish 
                Restoration and Boating Trust Fund''.
                    (D) Section 9504 is amended by striking ``aquatic 
                resources'' in the heading thereof and inserting 
                ``sport fish restoration and boating''.
                    (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 and boating''.
    (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, 2005, and amounts thereafter 
credited to the Account under section 9602(b), shall be available, 
without further appropriation, for making expenditures before October 
1, 2010, to carry out the purposes of section 15 of the Dingell-Johnson 
Sport Fish Restoration Act (as in effect on the date of the enactment 
of the Safe, Accountable, Flexible, and Efficient Transportation Equity 
Act of 2005). For purposes of section 9602, the Boat Safety Account 
shall be treated as a Trust Fund established by this subchapter.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005.

SEC. 5212. 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. 5213. 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, 2005.

                     PART III--AERIAL EXCISE TAXES

SEC. 5221. 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:
        ``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 September 30, 2005.

SEC. 5222. 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 ``or'' at the end of subclause (I) of 
        clause (ii), 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 October 1, 2005.

SEC. 5223. EXEMPTION FROM TAXES ON 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 September 30, 2005.

SEC. 5224. 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 at any time during which 
such aircraft is being 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 after September 30, 2005, but 
shall not apply to any amount paid before such date for such 
transportation.

                   PART IV--TAXES RELATING TO ALCOHOL

SEC. 5231. 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 and registration 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 and Registration 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.
        ``Sec. 5124. Registration by dealers.''.
            (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) Subpart C of part II of subchapter A of chapter 51, as 
        amended by paragraph (7), is amended by adding at the end the 
        following new section:

``SEC. 5124. REGISTRATION BY DEALERS.

    ``Every dealer who is subject to the recordkeeping requirements 
under section 5121 or 5122 shall register with the Secretary such 
dealer's name or style, place of residence, trade or business, and the 
place where such trade or business is to be carried on. In case of a 
firm or company, the names of the several persons constituting the 
same, and the places of residence, shall be so registered.''.
            (9) Section 7012 is amended by redesignating paragraphs (4) 
        and (5) as paragraphs (5) and (6), respectively, and by 
        inserting after paragraph (3) the following new paragraph:
            ``(4) For provisions relating to registration by dealers in 
        distilled spirits, wines, and beer, see section 5124.''.
            (10) 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.''.
            (11) 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).
            (12) Subpart D of part II of subchapter A of chapter 51 is 
        amended by adding at the end 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.''.
            (13) 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)''.
            (14) Subparagraph (A) of section 5010(c)(2) is amended by 
        striking ``section 5134'' and inserting ``section 5114''.
            (15) 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).''.
            (16) The text of section 5182 is amended to read as 
        follows:

        ``For provisions requiring recordkeeping by wholesale liquor 
                            dealers, see section 5112, and by retail 
                            liquor dealers, see section 5122.''.
            (17) Subsection (b) of section 5402 is amended by striking 
        ``section 5092'' and inserting ``section 5052(d)''.
            (18) Section 5671 is amended by striking ``or 5091''.
            (19)(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.
            (20)(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 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).
            (21) Subsection (c) of section 6071 is amended by striking 
        ``section 5142'' and inserting ``section 5732''.
            (22) 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, 2008, but shall not apply to taxes imposed for 
periods before such date.

SEC. 5232. MODIFICATION 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 inserting ``, and 
$13.50 in the case of distilled spirits brought into the United States 
after December 31, 2005, and before January 1, 2007'' after ``2006''.
    (b) Special Rule.--
            (1) In general.--After December 31, 2005, and before 
        January 1, 2007, the Commonwealth of Puerto Rico shall make a 
        Conservation Trust Fund transfer from the treasury of Puerto 
        Rico within 30 days from the date of each cover overpayment to 
        such treasury under section 7652(e) of the Internal Revenue 
        Code of 1986.
            (2) Conservation trust fund transfer.--
                    (A) In general.--For purposes of this subsection, 
                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.
                    (B) 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.
                    (C) 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 
                        Commonwealth of Puerto Rico, the Secretary of 
                        the Treasury shall, except as provided in 
                        clause (ii), deduct and withhold from the next 
                        cover overpayment 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 Commonwealth 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 
                        overpayment following the notification of 
                        nontransfer, then the Secretary of the Treasury 
                        shall not deduct the amount of such nontransfer 
                        from any cover overpayment.
            (3) Puerto rico conservation trust fund.--For purposes of 
        this subsection, 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.

SEC. 5233. 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, 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 
                political subdivision thereof, or an agency of either, 
                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 political subdivision thereof, or an agency of 
either.
    ``(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) is amended by striking 
``plus'' at the end of paragraph (18), by striking the period at the 
end of paragraph (19), and inserting ``, plus'', and by adding at the 
end the following new paragraph:
            ``(20) the distilled spirits credit determined under 
        section 5011(a).''.
    (c) Conforming Amendment.--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 September 30, 2005.

SEC. 5234. QUARTERLY EXCISE TAX FILING FOR SMALL ALCOHOL EXCISE 
              TAXPAYERS.

    (a) In General.--Subsection (d) of section 5061 (relating to time 
for collecting tax on distilled spirits, wines, and beer) is amended by 
redesignating paragraphs (4) and (5) as paragraphs (5) and (6), 
respectively, and by inserting after paragraph (3) the following new 
paragraph:
            ``(4) Taxpayers liable for taxes of not more than 
        $50,000.--
                    ``(A) In general.--In the case of any taxpayer who 
                reasonably expects to be liable for not more than 
                $50,000 in taxes imposed with respect to distilled 
                spirits, wines, and beer under subparts A, C, and D for 
                the calendar year and who was liable for not more than 
                $50,000 in such taxes in the preceding calendar year, 
                the last day for the payment of tax shall be the 14th 
                day after the last day of the calendar quarter during 
                which the action giving rise to the imposition of such 
                tax occurs.
                    ``(B) No application after limit exceeded.--
                Subparagraph (A) shall not apply to any taxpayer for 
                any portion of the calendar year following the first 
                date on which the aggregate amount of tax due under 
                subparts A, C, and D from such taxpayer during such 
                calendar year exceeds $50,000, and any tax under such 
                subparts which has not been paid on such date shall be 
                due on the 14th day after the last day of the 
                semimonthly period in which such date occurs.
                    ``(C) Calendar quarter.--For purposes of this 
                paragraph, the term `calendar quarter' means the three-
                month period ending on March 31, June 30, September 30, 
                or December 31.''.
    (b) Conforming Amendment.--Section 5061(d)(6), as redesignated by 
subsection (a), is amended by striking ``paragraph (4)'' and inserting 
``paragraph (5)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to quarterly periods beginning on and after January 
1, 2006.

                       PART V--SPORT EXCISE TAXES

SEC. 5241. 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 pistol, revolver, or firearm described in such 
        section if manufactured, produced, or imported by a person who 
        manufactures, produces, and imports less than an aggregate of 
        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 after September 30, 2005.
            (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.

                  Subtitle C--Miscellaneous Provisions

SEC. 5301. 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 to the President and 
        Congress 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) 6 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 as of the close of 
September 30, 2009.

SEC. 5302. 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, with respect to the 
        period beginning on the date of the enactment of this Act and 
        ending before 2016--
                    (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) 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 maintain and 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. 5303. 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 Onboard 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 onboard 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. 5304. 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 $500,000 for each of the 
fiscal years 2005 and 2006 to carry out the purposes of this section, 
to remain available until expended.

SEC. 5305. BUILD AMERICA CORPORATION.

    (a) 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 issue 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.
    (b) Use of Build America Bond Proceeds.--The proceeds from the sale 
of any Build America bonds issued by the Build America Corporation as 
authorized by subsection (a) may be used to fund any qualified project.
    (c) Qualified Projects.--For purposes of this section--
            (1) In general.--With respect to any Build America bonds 
        issued by the Build America Corporation as authorized by 
        subsection (a), the term ``qualified project'' means any--
                    (A) qualified highway project,
                    (B) qualified public transportation project, and
                    (C) congestion relief project,
        proposed by 1 or more States and approved by the Build America 
        Corporation, which meets the requirements under subparagraphs 
        (A), (B), and (C) of paragraph (5).
            (2) 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.
            (3) 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 title 49, United States Code.
            (4) Congestion relief project.--The term ``congestion 
        relief project'' means an intermodal freight transfer facility, 
        freight rail facility, freight movement corridor, intercity 
        passenger rail facility, intercity bus 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--
                    (A) consider the economic, environmental, mobility, 
                and national security improvements to be realized 
                through the project, and
                    (B) 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.
            (5) Additional requirements for qualified projects.--For 
        purposes of paragraph (1)--
                    (A) Costs of qualified projects.--The requirement 
                of this subparagraph is met if the costs of the 
                qualified project funded by Build America bonds only 
                relate to capital investments and do not include any 
                costs relating to operations, maintenance, or rolling 
                stock.
                    (B) Applicability of federal law.--The requirement 
                of this subparagraph 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.
                    (C) Utilization of updated construction technology 
                for qualified projects.--The requirement of this 
                subparagraph 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.

SEC. 5306. INCREASE IN DOLLAR LIMITATION FOR QUALIFIED TRANSPORTATION 
              FRINGE BENEFITS.

    (a) In General.--Section 132(f)(2) (relating to limitation on 
exclusion) is amended--
            (1) by striking ``$100'' in subparagraph (A) and inserting 
        ``$155 (in the case of any calendar year after 2009, the dollar 
        amount specified in subparagraph (B) for such year)'', and
            (2) by striking ``$175'' in subparagraph (B) and inserting 
        ``$200''.
    (b) Inflation Adjustment Conforming Amendments.--Subparagraph (A) 
of section 132(f)(6) (relating to inflation adjustment) is amended--
            (1) by striking the last sentence,
            (2) by striking ``1999'' and inserting ``2008'', and
            (3) by striking ``1998'' and inserting ``2007''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 5307. 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, shall propose options for 
                implementing exemptions for classes of vehicles whose 
                nonpropulsive fuel use exceeds 50 percent,
            (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, 2007, 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, except 
that the Secretary shall report and take action under subsection (a)(1) 
not later than July 1, 2006.

SEC. 5308. 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 (13), by striking the period at the end of 
paragraph (14), and by adding at the end the following:
            ``(15) qualified highway facilities, or
            ``(16) 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:
    ``(m) Qualified Highway and Surface Freight Transfer Facilities.--
            ``(1) Qualified highway facilities.--For purposes of 
        subsection (a)(15), 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)(16), 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) National limitation on amount of tax-exempt financing 
        for facilities.--
                    ``(A) National limitation.--There is a national 
                highway and surface freight transfer facilities bond 
                limitation for each calendar year. Such limitation is 
                $130,000,000 for 2005, $750,000,000 for 2006, 2007, 
                2008, and 2009, $1,870,000,000 for 2010, $2,000,000,000 
                for 2011, 2012, 2013, 2014, and 2015, and zero 
                thereafter.
                    ``(B) Enforcement of national limitation.--An issue 
                shall not be treated as an issue described in 
                subsection (a)(15) or (a)(16) if the aggregate face 
                amount of bonds issued pursuant to such issue for any 
                calendar year (when added to the aggregate face amount 
                of bonds previously issued as part of issues described 
                in subsections (a)(15) and (a)(16) for such calendar 
                year) exceeds the national highway and surface freight 
                transfer facilities bond limitation for such calendar 
                year.
                    ``(C) Allocation by secretary of transportation.--
                The Secretary of Transportation shall allocate the 
                amount described in subparagraph (A) among projects for 
                qualified highway facilities and qualified surface 
                freight transfer facilities in such manner as the 
                Secretary determines appropriate.
            ``(4) Expenditure of proceeds.--An issue shall not be 
        treated as an issue described in subsection (a)(15) or (a)(16) 
        unless at least 95 percent of the net proceeds of the issue is 
        expended for projects described in paragraph (3)(C) within the 
        5-year period beginning on the date of issuance. If at least 95 
        percent of such net proceeds is not expended with such 5-year 
        period, an issue shall be treated as continuing to meet the 
        requirements of this paragraph if the issuer uses all unspent 
        proceeds of the issue to redeem bonds of the issue within 90 
        days after the end of such 5-year period. The Secretary, at the 
        request of the issuer, may extend such 5-year period if the 
        issuer establishes that any failure to meet such period is due 
        to circumstances beyond the control of the issuer.''.
    (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 (14)'' and all 
that follows through the end of the paragraph and inserting ``(14), 
(15), or (16) 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. 5309. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL ESTATE 
              INVESTMENT TRUST.

    (a) In General.--If a State owns all of the outstanding stock of a 
corporation--
            (1) which is a real estate investment trust on the date of 
        the enactment of this Act,
            (2) which is a non-operating class III railroad, and
            (3) substantially all of the activities of which consist of 
        the ownership, leasing, and operation by such corporation of 
        facilities, equipment, and other property used by the 
        corporation or other persons for railroad transportation and 
        for economic development purposes for the benefit of the State 
        and its citizens,
then, to the extent such activities are of a type which are an 
essential governmental function within the meaning of section 115 of 
the Internal Revenue Code of 1986, income derived from such activities 
by the corporation shall be treated as accruing to the State for 
purposes of section 115 of such Code.
    (b) Gain or Loss Not Recognized on Conversion.--Notwithstanding 
section 337(d) of the Internal Revenue Code of 1986--
            (1) no gain or loss shall be recognized under section 336 
        or 337 of such Code, and
            (2) no change in basis of the property of such corporation 
        shall occur,
because of any change of status of a corporation to a tax-exempt entity 
by reason of the application of subsection (a).
    (c) Tax-Exempt Financing.--
            (1) In general.--Any obligation issued by a corporation 
        described in subsection (a) at least 95 percent of the net 
        proceeds (as defined in section 150(a) of the Internal Revenue 
        Code of 1986) of which are to be used to provide for the 
        acquisition, construction, or improvement of railroad 
        transportation infrastructure (including railroad terminal 
        facilities)--
                    (A) shall be treated as a State or local bond 
                (within the meaning of section 103(c) of such Code), 
                and
                    (B) shall not be treated as a private activity bond 
                (within the meaning of section 103(b)(1) of such Code) 
                solely by reason of the ownership or use of such 
                railroad transportation infrastructure by the 
                corporation.
            (2) No inference.--Except as provided in paragraph (1), 
        nothing in this subsection shall be construed to affect the 
        treatment of the private use of proceeds or property financed 
        with obligations issued by the corporation for purposes of 
        section 103 of the Internal Revenue Code of 1986 and part IV of 
        subchapter B of such Code.
    (d) Definitions.--For purposes of this section:
            (1) Real estate investment trust.--The term ``real estate 
        investment trust'' has the meaning given such term by section 
        856(a) of the Internal Revenue Code of 1986.
            (2) Non-operating class iii railroad.--The term ``non-
        operating class III railroad'' has the meaning given such term 
        by part A of subtitle IV of title 49, United States Code (49 
        U.S.C. 10101 et seq.), and the regulations thereunder.
            (3) State.--The term ``State'' includes--
                    (A) the District of Columbia and any possession of 
                the United States, and
                    (B) any authority, agency, or public corporation of 
                a State.
    (e) Applicability.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall apply on and after the date on which a State 
        becomes the owner of all of the outstanding stock of a 
        corporation described in subsection (a) through action of such 
        corporation's board of directors.
            (2) Exception.--This section shall not apply to any State 
        which--
                    (A) becomes the owner of all of the voting stock of 
                a corporation described in subsection (a) after 
                December 31, 2003, or
                    (B) becomes the owner of all of the outstanding 
                stock of a corporation described in subsection (a) 
                after December 31, 2006.

SEC. 5310. INCENTIVES FOR THE INSTALLATION OF ALTERNATIVE FUEL 
              REFUELING STATIONS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
(relating to foreign tax credit, etc.) is amended by adding at the end 
the following new section:

``SEC. 30B. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
50 percent of the cost of any qualified alternative fuel vehicle 
refueling property placed in service by the taxpayer during the taxable 
year.
    ``(b) Limitation.--The credit allowed under subsection (a) with 
respect to any alternative fuel vehicle refueling property shall not 
exceed--
            ``(1) $30,000 in the case of a property of a character 
        subject to an allowance for depreciation, and
            ``(2) $1,000 in any other case.
    ``(c) Qualified Alternative Fuel Vehicle Refueling Property.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        term `qualified alternative fuel vehicle refueling property' 
        has the meaning given to such term by section 179A(d), but only 
        with respect to any fuel at least 85 percent of the volume of 
        which consists of ethanol, natural gas, compressed natural gas, 
        liquefied natural gas, and hydrogen.
            ``(2) Residential property.--In the case of any property 
        installed on property which is used as the principal residence 
        (within the meaning of section 121) of the taxpayer, paragraph 
        (1) of section 179A(d) shall not apply.
    ``(d) Application With Other Credits.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and sections 27, 
        29, and 30, over
            ``(2) the tentative minimum tax for the taxable year.
    ``(e) Carryforward Allowed.--
            ``(1) In general.--If the credit amount allowable under 
        subsection (a) for a taxable year exceeds the amount of the 
        limitation under subsection (d) for such taxable year, such 
        excess shall be allowed as a credit carryforward for each of 
        the 20 taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryforward under 
        paragraph (1).
    ``(f) Special Rules.--For purposes of this section--
            ``(1) Basis reduction.--The basis of any property shall be 
        reduced by the portion of the cost of such property taken into 
        account under subsection (a).
            ``(2) No double benefit.--No deduction shall be allowed 
        under section 179A with respect to any property with respect to 
        which a credit is allowed under subsection (a).
            ``(3) Property used by tax-exempt entity.--In the case of 
        any qualified alternative fuel vehicle refueling property the 
        use of which is described in paragraph (3) or (4) of section 
        50(b) and which is not subject to a lease, the person who sold 
        such property to the person or entity using such property shall 
        be treated as the taxpayer that placed such property in 
        service, but only if such person clearly discloses to such 
        person or entity in a document the amount of any credit 
        allowable under subsection (a) with respect to such property 
        (determined without regard to subsection (d)).
            ``(4) Property used outside united states, etc., not 
        qualified.--No credit shall be allowable under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(5) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any property if the taxpayer 
        elects not to have this section apply to such property.
            ``(6) Recapture rules.--Rules similar to the rules of 
        section 179A(e)(4) shall apply.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.
    ``(h) Termination.--This section shall not apply to any property 
placed in service after December 31, 2009.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) is amended by striking ``and'' at the 
        end of paragraph (30), by striking the period at the end of 
        paragraph (31) and inserting ``, and'', and by adding at the 
        end the following new paragraph:
            ``(32) to the extent provided in section 30B(f)(1).''.
            (2) Section 55(c)(2) is amended by inserting ``30B(d),'' 
        after ``30(b)(3),''.
            (3) Section 6501(m) is amended by inserting ``30B(f)(5),'' 
        after ``30(d)(4),''.
            (4) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 30A the following new item:

        ``Sec. 30B Alternative fuel vehicle refueling property 
                            credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.

SEC. 5311. MODIFICATION OF RECAPTURE RULES FOR AMORTIZABLE SECTION 197 
              INTANGIBLES.

    (a) In General.--Subsection (b) of section 1245 is amended by 
adding at the end the following new paragraph:
            ``(9) Disposition of amortizable section 197 intangibles.--
                    ``(A) In general.--If a taxpayer disposes of more 
                than 1 amortizable section 197 intangible (as defined 
                in section 197(c)) in a transaction or a series of 
                related transactions, all such amortizable 197 
                intangibles shall be treated as 1 section 1245 property 
                for purposes of this section.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to any amortizable section 197 intangible (as so 
                defined) with respect to which the adjusted basis 
                exceeds the fair market value.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions of property after the date of the enactment of this 
Act.

SEC. 5312. DIESEL FUEL TAX EVASION REPORT.

    Not later than 360 days after the date of the enactment of this 
Act, the Commissioner of the Internal Revenue shall report to the 
Committees on Finance and Environment and Public Works of the Senate 
and the Committees on Ways and Means and Transportation and 
Infrastructure of the House of Representatives on the availability of 
new technologies that can be employed to enhance collections of the 
excise tax on diesel fuel and the plans of the Internal Revenue Service 
to employ such technologies.

            Subtitle D--Fuels-related Technical Corrections

SEC. 5401. FUELS-RELATED TECHNICAL CORRECTIONS.

    (a) Amendments Related to Section 301 of the American Jobs Creation 
Act of 2004.--Section 6427 is amended--
            (1) by striking subsection (f), and
            (2) by striking subsection (o) and redesignating subsection 
        (p) as subsection (o).
    (b) Amendments Related to Section 853 of the American Jobs Creation 
Act of 2004.--
            (1) Subparagraph (C) of section 4081(a)(2) is amended by 
        striking ``for use in commercial aviation'' and inserting ``for 
        use in commercial aviation by a person registered for such use 
        under section 4101''.
            (2) So much of paragraph (2) of section 4081(d) as precedes 
        subparagraph (A) is amended to read as follows:
            ``(2) Aviation fuels.--The rates of tax specified in 
        clauses (ii) and (iv) of subsection (a)(2)(A) shall be 4.3 
        cents per gallon--''.
            (3) Section 6421(f)(2) is amended--
                    (A) by striking ``noncommercial aviation (as 
                defined in section 4041(c)(2))'' in subparagraph (A) 
                and inserting ``aviation which is not commercial 
                aviation (as defined in section 4083(b))'', and
                    (B) by striking ``aviation which is not 
                noncommercial aviation'' in subparagraph (B) and 
                inserting ``commercial aviation''.
    (c) Amendment Related to Section 9005 of the Transportation Equity 
Act for the 21st Century.--The last sentence of paragraph (2) of 
section 9504(b) is amended by striking ``subparagraph (B)'', and 
inserting ``subparagraph (C)''.
    (d) Effective Dates.--
            (1) American jobs creation act of 2004.--The amendments 
        made by subsections (a) and (b) shall take effect as if 
        included in the provisions of the American Jobs Creation Act of 
        2004 to which they relate.
            (2) Transportation equity act for the 21st century.--The 
        amendment made by subsection (c) shall take effect as if 
        included in the provision of the Transportation Equity Act for 
        the 21st Century to which it relates.

                 Subtitle E--Revenue Offset Provisions

                       PART I--GENERAL PROVISIONS

SEC. 5501. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT 
              INSTRUMENTS.

    (a) In General.--Section 1275(d) (relating to regulation authority) 
is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Treatment of contingent payment convertible debt.--
                    ``(A) In general.--In the case of a debt instrument 
                which--
                            ``(i) is convertible into stock of the 
                        issuing corporation, into stock or debt of a 
                        related party (within the meaning of section 
                        267(b) or 707(b)(1)), or into cash or other 
                        property in an amount equal to the approximate 
                        value of such stock or debt, and
                            ``(ii) provides for contingent payments,
                any regulations which require original issue discount 
                to be determined by reference to the comparable yield 
                of a noncontingent fixed-rate debt instrument shall be 
                applied as if the regulations require that such 
                comparable yield be determined by reference to a 
                noncontingent fixed-rate debt instrument which is 
                convertible into stock.
                    ``(B) Special rule.--For purposes of subparagraph 
                (A), the comparable yield shall be determined without 
                taking into account the yield resulting from the 
                conversion of a debt instrument into stock.''.
    (b) Cross Reference.--Section 163(e)(6) (relating to cross 
references) is amended by adding at the end the following:
                ``For the treatment of contingent payment convertible 
                debt, see section 1275(d)(2).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to debt instruments issued on or after the date of the enactment 
of this Act.

SEC. 5502. 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. 5503. INCREASE IN CERTAIN CRIMINAL PENALTIES.

    (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 
                ``$500,000'',
                    (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 ``Any person'' and 
                        inserting the following:
    ``(a) In General.--Any person'', and
                            (ii) by striking ``$25,000'' and inserting 
                        ``$50,000'',
                    (B) in the third sentence, by striking ``section'' 
                and inserting ``subsection'', and
                    (C) by adding at the end the following new 
                subsection:
    ``(b) Aggravated Failure To File.--
            ``(1) In general.--In the case of any failure described in 
        paragraph (2), the first sentence of subsection (a) shall be 
        applied by substituting--
                    ``(A) `felony' for `misdemeanor',
                    ``(B) `$500,000 ($1,000,000' for `$25,000 
                ($100,000', and
                    ``(C) `10 years' for `1 year'.
            ``(2) Failure described.--A failure described in this 
        paragraph is a failure to make a return described in subsection 
        (a) for a period of 3 or more consecutive taxable years and the 
        aggregated tax liability for such period is at least 
        $100,000.''.
            (3) Fraud and false statements.--Section 7206(a) (as 
        redesignated by subsection (a)) is amended--
                    (A) by striking ``$100,000'' and inserting 
                ``$500,000'',
                    (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 actions, and failures to act, occurring after the date of the 
enactment of this Act.

SEC. 5504. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST ON 
              UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE FINANCIAL 
              ARRANGEMENTS.

    (a) Determination of Penalty.--
            (1) In general.--Notwithstanding any other provision of 
        law, in the case of an applicable taxpayer--
                    (A) the determination as to whether any interest or 
                applicable penalty is to be imposed with respect to any 
                arrangement described in paragraph (2), or to any 
                underpayment of Federal income tax attributable to 
                items arising in connection with any such arrangement, 
                shall be made without regard to the rules of 
                subsections (b), (c), and (d) of section 6664 of the 
                Internal Revenue Code of 1986, and
                    (B) if any such interest or applicable penalty is 
                imposed, the amount of such interest or penalty shall 
                be equal to twice that determined without regard to 
                this section.
            (2) Applicable taxpayer.--For purposes of this subsection--
                    (A) In general.--The term ``applicable taxpayer'' 
                means a taxpayer which--
                            (i) has underreported its United States 
                        income tax liability with respect to any item 
                        which directly or indirectly involves--
                                    (I) any financial arrangement which 
                                in any manner relies on the use of 
                                offshore payment mechanisms (including 
                                credit, debit, or charge cards) issued 
                                by banks or other entities in foreign 
                                jurisdictions, or
                                    (II) any offshore financial 
                                arrangement (including any arrangement 
                                with foreign banks, financial 
                                institutions, corporations, 
                                partnerships, trusts, or other 
                                entities), and
                            (ii) has not signed a closing agreement 
                        pursuant to the Voluntary Offshore Compliance 
                        Initiative established by the Department of the 
                        Treasury under Revenue Procedure 2003-11 or 
                        voluntarily disclosed its participation in such 
                        arrangement by notifying the Internal Revenue 
                        Service of such arrangement prior to the issue 
                        being raised by the Internal Revenue Service 
                        during an examination.
                    (B) Authority to waive.--The Secretary of the 
                Treasury or the Secretary's delegate may waive the 
                application of paragraph (1) to any taxpayer if the 
                Secretary or the Secretary's delegate determines that 
                the use of such offshore payment mechanisms is 
                incidental to the transaction and, in addition, in the 
                case of a trade or business, such use is conducted in 
                the ordinary course of the trade or business of the 
                taxpayer.
                    (C) Issues raised.--For purposes of subparagraph 
                (A)(ii), an item shall be treated as an issue raised 
                during an examination if the individual examining the 
                return--
                            (i) communicates to the taxpayer knowledge 
                        about the specific item, or
                            (ii) has made a request to the taxpayer for 
                        information and the taxpayer could not make a 
                        complete response to that request without 
                        giving the examiner knowledge of the specific 
                        item.
    (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) Fees and expenses.--The Secretary of the Treasury may 
        retain and use an amount not in excess of 25 percent of all 
        additional interest, penalties, additions to tax, and fines 
        collected under this section to be used for enforcement and 
        collection activities of the Internal Revenue Service. The 
        Secretary shall keep adequate records regarding amounts so 
        retained and used. The amount credited as paid by any taxpayer 
        shall be determined without regard to this paragraph.
    (c) Report by Secretary.--The Secretary shall each year conduct a 
study and report to Congress on the implementation of this section 
during the preceding year, including statistics on the number of 
taxpayers affected by such implementation and the amount of interest 
and applicable penalties asserted, waived, and assessed during such 
preceding year.
    (d) 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.

SEC. 5505. 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 
March 2, 2005, and to taxable years of United States shareholders with 
or within which such taxable years of controlled foreign corporations 
end.

SEC. 5506. DECLARATION BY CHIEF EXECUTIVE OFFICER RELATING TO FEDERAL 
              ANNUAL CORPORATE INCOME TAX RETURN.

    (a) In General.--The Federal annual 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 corporation has in place 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 annual tax 
returns for taxable years ending after the date of the enactment of 
this Act.

SEC. 5507. TREASURY REGULATIONS ON FOREIGN TAX CREDIT.

    (a) In General.--Section 901 (relating to taxes of foreign 
countries and of possessions of United States) is amended by 
redesignating subsection (m) as subsection (n) and by inserting after 
subsection (l) the following new subsection:
    ``(m) Regulations.--The Secretary may prescribe regulations 
disallowing a credit under subsection (a) for all or a portion of any 
foreign tax, or allocating a foreign tax among 2 or more persons, in 
cases where the foreign tax is imposed on any person in respect of 
income of another person or in other cases involving the inappropriate 
separation of the foreign tax from the related foreign income.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transactions entered into after the date of the enactment of 
this Act.

SEC. 5508. WHISTLEBLOWER REFORMS.

    (a) In General.--Section 7623 (relating to expenses of detection of 
underpayments and fraud, etc.) is amended--
            (1) by striking ``The Secretary'' and inserting ``(a) In 
        General.--The Secretary'',
            (2) by striking ``and'' at the end of paragraph (1) and 
        inserting ``or'',
            (3) by striking ``(other than interest)'', and
            (4) by adding at the end the following new subsections:
    ``(b) Awards to Whistleblowers.--
            ``(1) In general.--If the Secretary proceeds with any 
        administrative or judicial action described in subsection (a) 
        based on information brought to the Secretary's attention by an 
        individual, such individual shall, subject to paragraph (2), 
        receive as an award at least 15 percent but not more than 30 
        percent of the collected proceeds (including penalties, 
        interest, additions to tax, and additional amounts) resulting 
        from the action (including any related actions) or from any 
        settlement in response to such action. The determination of the 
        amount of such award by the Whistleblower Office shall depend 
        upon the extent to which the individual substantially 
        contributed to such action.
            ``(2) Award in case of less substantial contribution.--
                    ``(A) In general.--In the event the action 
                described in paragraph (1) is one which the 
                Whistleblower Office determines to be based principally 
                on disclosures of specific allegations (other than 
                information provided by the individual described in 
                paragraph (1)) resulting from a judicial or 
                administrative hearing, from a governmental report, 
                hearing, audit, or investigation, or from the news 
                media, the Whistleblower Office may award such sums as 
                it considers appropriate, but in no case more than 10 
                percent of the collected proceeds (including penalties, 
                interest, additions to tax, and additional amounts) 
                resulting from the action (including any related 
                actions) or from any settlement in response to such 
                action, taking into account the significance of the 
                individual's information and the role of such 
                individual and any legal representative of such 
                individual in contributing to such action.
                    ``(B) Nonapplication of paragraph where individual 
                is original source of information.--Subparagraph (A) 
                shall not apply if the information resulting in the 
                initiation of the action described in paragraph (1) was 
                originally provided by the individual described in 
                paragraph (1).
            ``(3) Reduction in or denial of award.--If the 
        Whistleblower Office determines that the claim for an award 
        under paragraph (1) or (2) is brought by an individual who 
        planned and initiated the actions that led to the underpayment 
        of tax or actions described in subsection (a)(2), then the 
        Whistleblower Office may appropriately reduce such award. If 
        such individual is convicted of criminal conduct arising from 
        the role described in the preceding sentence, the Whistleblower 
        Office shall deny any award.
            ``(4) Appeal of award determination.--Any determination 
        regarding an award under paragraph (1), (2), or (3) shall be 
        subject to the filing by the individual described in such 
        paragraph of a petition for review with the Tax Court under 
        rules similar to the rules under section 7463 (without regard 
        to the amount in dispute) and such review shall be subject to 
        the rules under section 7461(b)(1).
            ``(5) Application of this subsection.--This subsection 
        shall apply with respect to any action--
                    ``(A) against any taxpayer, but in the case of any 
                individual, only if such individual's gross income 
                exceeds $200,000 for any taxable year subject to such 
                action, and
                    ``(B) if the tax, penalties, interest, additions to 
                tax, and additional amounts in dispute exceed $20,000.
            ``(6) Additional rules.--
                    ``(A) No contract necessary.--No contract with the 
                Internal Revenue Service is necessary for any 
                individual to receive an award under this subsection.
                    ``(B) Representation.--Any individual described in 
                paragraph (1) or (2) may be represented by counsel.
                    ``(C) Award not subject to individual alternative 
                minimum tax.--No award received under this subsection 
                shall be included in gross income for purposes of 
                determining alternative minimum taxable income.
    ``(c) Whistleblower Office.--
            ``(1) In general.--There is established in the Internal 
        Revenue Service an office to be known as the `Whistleblower 
        Office' which--
                    ``(A) shall at all times operate at the direction 
                of the Commissioner and coordinate and consult with 
                other divisions in the Internal Revenue Service as 
                directed by the Commissioner,
                    ``(B) shall analyze information received from any 
                individual described in subsection (b) and either 
                investigate the matter itself or assign it to the 
                appropriate Internal Revenue Service office,
                    ``(C) shall monitor any action taken with respect 
                to such matter,
                    ``(D) shall inform such individual that it has 
                accepted the individual's information for further 
                review,
                    ``(E) may require such individual and any legal 
                representative of such individual to not disclose any 
                information so provided,
                    ``(F) in its sole discretion, may ask for 
                additional assistance from such individual or any legal 
                representative of such individual, and
                    ``(G) shall determine the amount to be awarded to 
                such individual under subsection (b).
            ``(2) Funding for office.--There is authorized to be 
        appropriated $10,000,000 for each fiscal year for the 
        Whistleblower Office. These funds shall be used to maintain the 
        Whistleblower Office and also to reimburse other Internal 
        Revenue Service offices for related costs, such as costs of 
        investigation and collection.
            ``(3) Request for assistance.--
                    ``(A) In general.--Any assistance requested under 
                paragraph (1)(F) shall be under the direction and 
                control of the Whistleblower Office or the office 
                assigned to investigate the matter under subparagraph 
                (A). To the extent the disclosure of any returns or 
                return information to the individual or legal 
                representative is required for the performance of such 
                assistance, such disclosure shall be pursuant to a 
                contract entered into between the Secretary and the 
                recipients of such disclosure subject to section 
                6103(n). No individual or legal representative whose 
                assistance is so requested may by reason of such 
                request represent himself or herself as an employee of 
                the Federal Government.
                    ``(B) Funding of assistance.--From the amounts 
                available for expenditure under subsection (b), the 
                Whistleblower Office may, with the agreement of the 
                individual described in subsection (b), reimburse the 
                costs incurred by any legal representative of such 
                individual in providing assistance described in 
                subparagraph (A).
    ``(d) Report by Secretary.--The Secretary shall each year conduct a 
study and report to Congress on the use of this section, including--
            ``(1) an analysis of the use of this section during the 
        preceding year and the results of such use, and
            ``(2) any legislative or administrative recommendations 
        regarding the provisions of this section and its 
        application.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to information provided on or after the date of the enactment of 
this Act.

SEC. 5509. 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--
                    ``(A) the taxpayer establishes constitutes 
                restitution (including remediation of property) for 
                damage or harm caused by or which may be caused by the 
                violation of any law or the potential violation of any 
                law, and
                    ``(B) is identified as restitution in the court 
                order or settlement agreement.
        Identification pursuant to subparagraph (B) alone shall not 
        satisfy the requirement under subparagraph (A). 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.
            ``(5) Exception for taxes due.--Paragraph (1) shall not 
        apply to any amount paid or incurred as taxes due.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred on or after the date of the enactment of 
this Act, except that such amendment shall not apply to amounts paid or 
incurred under any binding order or agreement entered into before such 
date. Such exception shall not apply to an order or agreement requiring 
court approval unless the approval was obtained before such date.

SEC. 5510. FREEZE OF INTEREST SUSPENSION RULES WITH RESPECT TO LISTED 
              TRANSACTIONS.

    (a) In General.--Paragraph (2) of section 903(d) of the American 
Jobs Creation Act of 2005 is amended to read as follows:
            ``(2) Exception for reportable or listed transactions.--
                    ``(A) In general.--The amendments made by 
                subsection (c) shall apply with respect to interest 
                accruing after October 3, 2004.
                    ``(B) Special rule for certain listed 
                transactions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) or (iii), in the case of any listed 
                        transaction, the amendments made by subsection 
                        (c) shall also apply with respect to interest 
                        accruing on or before October 3, 2004.
                            ``(ii) Participants in settlement 
                        initiatives.--Clause (i) shall not apply to a 
                        listed transaction if, as of May 9, 2005--
                                    ``(I) the taxpayer is participating 
                                in a published settlement initiative 
                                which is offered by the Secretary of 
                                the Treasury or his delegate to a group 
                                of similarly situated taxpayers 
                                claiming benefits from the listed 
                                transaction, or
                                    ``(II) the taxpayer has entered 
                                into a settlement agreement pursuant to 
                                such an initiative with respect to the 
                                tax liability arising in connection 
                                with the listed transaction.
                        Subclause (I) shall not apply to the taxpayer 
                        if, after May 9, 2005, the taxpayer withdraws 
                        from, or terminates, participation in the 
                        initiative or the Secretary or his delegate 
                        determines that a settlement agreement will not 
                        be reached pursuant to the initiative within a 
                        reasonable period of time.
                            ``(iii) Closed transactions.--Clause (i) 
                        shall not apply to a listed transaction if, as 
                        of May 9, 2005--
                                    ``(I) the assessment of all Federal 
                                income taxes for the taxable year in 
                                which the tax liability to which the 
                                interest relates arose is prevented by 
                                the operation of any law or rule of 
                                law, or
                                    ``(II) a closing agreement under 
                                section 7121 has been entered into with 
                                respect to the tax liability arising in 
                                connection with the listed 
                                transaction.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provisions of the American Jobs Creation 
Act of 2004 to which it relates.

SEC. 5511. MODIFICATIONS OF EFFECTIVE DATES OF LEASING PROVISIONS OF 
              THE AMERICAN JOBS CREATION ACT OF 2004.

    (a) Repeal of Exception for Qualified Transportation Property.--
Section 849(b) of the American Jobs Creation Act of 2004 is amended by 
striking paragraphs (1) and (2) and by redesignating paragraphs (3) and 
(4) as paragraphs (1) and (2).
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Jobs Creation 
Act of 2004.

SEC. 5512. 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 2005, 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 2004' 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:
            ``(49) 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:
            ``(21) 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.--Section 6103(p)(4) (relating to 
                safeguards) is amended by striking ``or (20)'' each 
                place it appears and inserting ``(20), or (21)''.
            (3) Effective dates.--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.
    (e) Conforming Amendments.--
            (1) Section 877 is amended by adding at the end the 
        following new subsection:
    ``(h) 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 the date of the enactment of the Safe, Accountable, 
Flexible, and Efficient Transportation Equity Act of 2005.''.
            (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:
                    ``(C) Application.--This paragraph shall not apply 
                to any expatriate subject to section 877A.''.
    (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 the date of the enactment of 
        this Act.
            (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 the date of the 
        enactment of this Act, 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. 5513. 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--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively,
                    (B) by striking ``If'' and inserting:
            ``(1) Treble damages.--If'', and
                    (C) 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 amendment.--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. 5514. APPLICATION OF EARNINGS STRIPPING RULES TO PARTNERS WHICH 
              ARE C CORPORATIONS.

    (a) In General.--Section 163(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) Allocations to certain corporate partners.--If a C 
        corporation is a partner in a partnership--
                    ``(A) 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
                    ``(B) 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 on or after the date of the enactment 
of this Act.

SEC. 5515. PROHIBITION ON DEFERRAL OF GAIN FROM THE EXERCISE OF STOCK 
              OPTIONS AND RESTRICTED STOCK GAINS THROUGH DEFERRED 
              COMPENSATION ARRANGEMENTS.

    (a) In General.--Section 83 (relating to property transferred in 
connection with performance of services) is amending by adding at the 
end the following new subsection:
    ``(i) Prohibition on Additional Deferral Through Deferred 
Compensation Arrangements.--If a taxpayer exchanges--
            ``(1) an option to purchase employer securities--
                    ``(A) to which subsection (a) applies, or
                    ``(B) which is described in subsection (e)(3), or
            ``(2) employer securities or any other property based on 
        employer securities transferred to the taxpayer,
for a right to receive future payments, then, notwithstanding any other 
provision of this title, there shall be included in gross income for 
the taxable year of the exchange an amount equal to the present value 
of such right (or such other amount as the Secretary may by regulations 
specify). For purposes of this subsection, the term `employer 
securities' includes any security issued by the employer.''.
    (b) Controlled Group Rules.--Section 414(t)(2) is amended by 
inserting ``83(i),'' after ``79,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any exchange after the date of the enactment of this Act.

SEC. 5516. LIMITATION OF EMPLOYER DEDUCTION FOR CERTAIN ENTERTAINMENT 
              EXPENSES.

    (a) In General.--Paragraph (2) of section 274(e) (relating to 
expenses treated as compensation) is amended to read as follows:
            ``(2) Expenses treated as compensation.--Expenses for 
        goods, services, and facilities, to the extent that the 
        expenses do not exceed the amount of the expenses which are 
        treated by the taxpayer, with respect to the recipient of the 
        entertainment, amusement, or recreation, as compensation to an 
        employee on the taxpayer's return of tax under this chapter and 
        as wages to such employee for purposes of chapter 24 (relating 
        to withholding of income tax at source on wages).''.
    (b) Persons Not Employees.--Paragraph (9) of section 274(e) is 
amended by striking ``to the extent that the expenses are includible in 
the gross income'' and inserting ``to the extent that the expenses do 
not exceed the amount of the expenses which are includible in the gross 
income''.
    (c) Effective Date.--The amendment made by this section shall apply 
to expenses incurred after the date of the enactment of this Act.

SEC. 5517. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY ORDERS.

    (a) In General.--Section 6657 (relating to bad checks) is amended--
            (1) by striking ``$750'' and inserting ``$1,250'', and
            (2) by striking ``$15'' and inserting ``$25''.
    (b) Effective Date.--The amendments made by this section apply to 
checks or money orders received after the date of the enactment of this 
Act.

SEC. 5518. ELIMINATION OF DOUBLE DEDUCTION ON MINING EXPLORATION AND 
              DEVELOPMENT COSTS UNDER THE MINIMUM TAX.

    (a) In General.--Section 57(a)(1) (relating to depletion) is 
amended by striking ``for the taxable year)'' and inserting ``for the 
taxable year and determined without regard to so much of the basis as 
is attributable to mining exploration and development costs described 
in section 616 or 617 for which a deduction is allowable for any 
taxable year under this part).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment this Act.

                  PART II--ECONOMIC SUBSTANCE DOCTRINE

SEC. 5521. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

    (a) In General.--Section 7701 is amended by redesignating 
subsection (o) as subsection (p) and by inserting after subsection (n) 
the following new subsection:
    ``(o) 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 the date of the enactment of 
this Act.

SEC. 5522. 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(o)(1)) for the transaction 
                giving rise to the claimed benefit or the transaction 
                was not respected under section 7701(o)(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) and 
        (3) 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) Coordination With Other Understatements and Penalties.--
            (1) The second sentence of section 6662(d)(2)(A) is amended 
        by inserting ``and without regard to items with respect to 
        which a penalty is imposed by section 6662B'' before the period 
        at the end.
            (2) Subsection (e) of section 6662A is amended--
                    (A) in paragraph (1), by inserting ``and 
                noneconomic substance transaction understatements'' 
                after ``reportable transaction understatements'' both 
                places it appears,
                    (B) in paragraph (2)(A), by inserting ``and a 
                noneconomic substance transaction understatement'' 
                after ``reportable transaction understatement'',
                    (C) in paragraph (2)(B), by inserting ``6662B or'' 
                before ``6663'',
                    (D) in paragraph (2)(C)(i), by inserting ``or 
                section 6662B'' before the period at the end,
                    (E) in paragraph (2)(C)(ii), by inserting ``and 
                section 6662B'' after ``This section'',
                    (F) in paragraph (3), by inserting ``or noneconomic 
                substance transaction understatement'' after 
                ``reportable transaction understatement'', and
                    (G) by adding at the end the following new 
                paragraph:
            ``(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).''.
            (3) Subsection (e) of section 6707A is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (B), and
                    (B) by striking subparagraph (C) and inserting the 
                following new subparagraphs:
                    ``(C) is required to pay a penalty under section 
                6662B with respect to any noneconomic substance 
                transaction, or
                    ``(D) is required to pay a penalty under section 
                6662(h) with respect to any transaction and would (but 
                for section 6662A(e)(2)(C)) have been subject to 
                penalty under section 6662A at a rate prescribed under 
                section 6662A(c) or under section 6662B,''.
    (c) 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.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to transactions entered into after the date of the enactment of 
this Act.

SEC. 5523. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
              ATTRIBUTABLE TO NONECONOMIC SUBSTANCE TRANSACTIONS.

    (a) In General.--Section 163(m) (relating to interest on unpaid 
taxes attributable to nondisclosed reportable transactions