[112th Congress Public Law 141]
[From the U.S. Government Printing Office]



[[Page 126 STAT. 405]]

Public Law 112-141
112th Congress

                                 An Act


 
 To authorize funds for Federal-aid highways, highway safety programs, 
     and transit programs, and for other purposes. <<NOTE: July 6, 
                         2012 -  [H.R. 4348]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Moving Ahead for 
Progress in the 21st Century Act. State and local governments.>> 
SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; TABLE 
                              OF CONTENTS.

    (a) <<NOTE: 23 USC 101 note.>> Short Title.--This Act may be cited 
as the ``Moving Ahead for Progress in the 21st Century Act'' or the 
``MAP-21''.

    (b) Divisions.--This Act is organized into 8 divisions as follows:
            (1) Division A-Federal-aid Highways and Highway Safety 
        Construction Programs.
            (2) Division B-Public Transportation.
            (3) Division C-Transportation Safety and Surface 
        Transportation Policy.
            (4) Division D-Finance.
            (5) Division E-Research and Education.
            (6) Division F-Miscellaneous.
            (7) Division G-Surface Transportation Extension.
            (8) Division H-Budgetary Effects.

    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; organization of Act into divisions; table of 
           contents.
Sec. 2. Definitions.
Sec. 3. Effective date.

    DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION 
                                PROGRAMS

                      TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations and Programs

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Definitions.
Sec. 1104. National Highway System.
Sec. 1105. Apportionment.
Sec. 1106. National highway performance program.
Sec. 1107. Emergency relief.
Sec. 1108. Surface transportation program.
Sec. 1109. Workforce development.
Sec. 1110. Highway use tax evasion projects.
Sec. 1111. National bridge and tunnel inventory and inspection 
           standards.
Sec. 1112. Highway safety improvement program.
Sec. 1113. Congestion mitigation and air quality improvement program.
Sec. 1114. Territorial and Puerto Rico highway program.
Sec. 1115. National freight policy.
Sec. 1116. Prioritization of projects to improve freight movement.
Sec. 1117. State freight advisory committees.

[[Page 126 STAT. 406]]

Sec. 1118. State freight plans.
Sec. 1119. Federal lands and tribal transportation programs.
Sec. 1120. Projects of national and regional significance.
Sec. 1121. Construction of ferry boats and ferry terminal facilities.
Sec. 1122. Transportation alternatives.
Sec. 1123. Tribal high priority projects program.

                   Subtitle B--Performance Management

Sec. 1201. Metropolitan transportation planning.
Sec. 1202. Statewide and nonmetropolitan transportation planning.
Sec. 1203. National goals and performance management measures.

              Subtitle C--Acceleration of Project Delivery

Sec. 1301. Declaration of policy and project delivery initiative.
Sec. 1302. Advance acquisition of real property interests.
Sec. 1303. Letting of contracts.
Sec. 1304. Innovative project delivery methods.
Sec. 1305. Efficient environmental reviews for project decisionmaking.
Sec. 1306. Accelerated decisionmaking.
Sec. 1307. Assistance to affected Federal and State agencies.
Sec. 1308. Limitations on claims.
Sec. 1309. Accelerating completion of complex projects within 4 years.
Sec. 1310. Integration of planning and environmental review.
Sec. 1311. Development of programmatic mitigation plans.
Sec. 1312. State assumption of responsibility for categorical 
           exclusions.
Sec. 1313. Surface transportation project delivery program.
Sec. 1314. Application of categorical exclusions for multimodal 
           projects.
Sec. 1315. Categorical exclusions in emergencies.
Sec. 1316. Categorical exclusions for projects within the right-of-way.
Sec. 1317. Categorical exclusion for projects of limited Federal 
           assistance.
Sec. 1318. Programmatic agreements and additional categorical 
           exclusions.
Sec. 1319. Accelerated decisionmaking in environmental reviews.
Sec. 1320. Memoranda of agency agreements for early coordination.
Sec. 1321. Environmental procedures initiative.
Sec. 1322. Review of State environmental reviews and approvals for the 
           purpose of eliminating duplication of environmental reviews.
Sec. 1323. Review of Federal project and program delivery.

                       Subtitle D--Highway Safety

Sec. 1401. Jason's law.
Sec. 1402. Open container requirements.
Sec. 1403. Minimum penalties for repeat offenders for driving while 
           intoxicated or driving under the influence.
Sec. 1404. Adjustments to penalty provisions.
Sec. 1405. Highway worker safety.

                        Subtitle E--Miscellaneous

Sec. 1501. Real-time ridesharing.
Sec. 1502. Program efficiencies.
Sec. 1503. Project approval and oversight.
Sec. 1504. Standards.
Sec. 1505. Justification reports for access points on the Interstate 
           System.
Sec. 1506. Construction.
Sec. 1507. Maintenance.
Sec. 1508. Federal share payable.
Sec. 1509. Transferability of Federal-aid highway funds.
Sec. 1510. Idle reduction technology.
Sec. 1511. Special permits during periods of national emergency.
Sec. 1512. Tolling.
Sec. 1513. Miscellaneous parking amendments.
Sec. 1514. HOV facilities.
Sec. 1515. Funding flexibility for transportation emergencies.
Sec. 1516. Defense access road program enhancements to address 
           transportation infrastructure in the vicinity of military 
           installations.
Sec. 1517. Mapping.
Sec. 1518. Buy America provisions.
Sec. 1519. Consolidation of programs; repeal of obsolete provisions.
Sec. 1520. Denali Commission.
Sec. 1521. Uniform Relocation Assistance and Real Property Acquisition 
           Policies Act of 1970 amendments.
Sec. 1522. Extension of public transit vehicle exemption from axle 
           weight restrictions.

[[Page 126 STAT. 407]]

Sec. 1523. Use of debris from demolished bridges and overpasses.
Sec. 1524. Use of youth service and conservation corps.
Sec. 1525. State autonomy for culvert pipe selection.
Sec. 1526. Evacuation routes.
Sec. 1527. Consolidation of grants.
Sec. 1528. Appalachian development highway system.
Sec. 1529. Engineering judgment.
Sec. 1530. Transportation training and employment programs.
Sec. 1531. Notice of certain grant awards.
Sec. 1532. Budget justification.
Sec. 1533. Prohibition on use of funds for automated traffic 
           enforcement.
Sec. 1534. Public-private partnerships.
Sec. 1535. Report on Highway Trust Fund expenditures.
Sec. 1536. Sense of Congress on harbor maintenance.
Sec. 1537. Estimate of harbor maintenance needs.
Sec. 1538. Asian carp.
Sec. 1539. Rest areas.

                   Subtitle F--Gulf Coast Restoration

Sec. 1601. Short title.
Sec. 1602. Gulf Coast Restoration Trust Fund.
Sec. 1603. Gulf Coast natural resources restoration and economic 
           recovery.
Sec. 1604. Gulf Coast Ecosystem Restoration Science, Observation, 
           Monitoring, and Technology program.
Sec. 1605. Centers of excellence research grants.
Sec. 1606. Effect.
Sec. 1607. Restoration and protection activity limitations.
Sec. 1608. Inspector General.

           TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION

Sec. 2001. Short title.
Sec. 2002. Transportation Infrastructure Finance and Innovation Act of 
           1998 amendments.

                    DIVISION B--PUBLIC TRANSPORTATION

Sec. 20001. Short title.
Sec. 20002. Repeals.
Sec. 20003. Policies and purposes.
Sec. 20004. Definitions.
Sec. 20005. Metropolitan transportation planning.
Sec. 20006. Statewide and nonmetropolitan transportation planning.
Sec. 20007. Urbanized area formula grants.
Sec. 20008. Fixed guideway capital investment grants.
Sec. 20009. Mobility of seniors and individuals with disabilities.
Sec. 20010. Formula grants for rural areas.
Sec. 20011. Research, development, demonstration, and deployment 
           projects.
Sec. 20012. Technical assistance and standards development.
Sec. 20013. Private sector participation.
Sec. 20014. Bus testing facilities.
Sec. 20015. Human resources and training.
Sec. 20016. General provisions.
Sec. 20017. Public Transportation Emergency Relief Program.
Sec. 20018. Contract requirements.
Sec. 20019. Transit asset management.
Sec. 20020. Project management oversight.
Sec. 20021. Public transportation safety.
Sec. 20022. Alcohol and controlled substances testing.
Sec. 20023. Nondiscrimination.
Sec. 20024. Administrative provisions.
Sec. 20025. National transit database.
Sec. 20026. Apportionment of appropriations for formula grants.
Sec. 20027. State of good repair grants.
Sec. 20028. Authorizations.
Sec. 20029. Bus and bus facilities formula grants.
Sec. 20030. Technical and conforming amendments.

   DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

    TITLE I--MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012

Sec. 31001. Short title.

[[Page 126 STAT. 408]]

Sec. 31002. Definition.

                       Subtitle A--Highway Safety

Sec. 31101. Authorization of appropriations.
Sec. 31102. Highway safety programs.
Sec. 31103. Highway safety research and development.
Sec. 31104. National driver register.
Sec. 31105. National priority safety programs.
Sec. 31106. High visibility enforcement program.
Sec. 31107. Agency accountability.
Sec. 31108. Emergency medical services.
Sec. 31109. Repeal of programs.

                 Subtitle B--Enhanced Safety Authorities

Sec. 31201. Definition of motor vehicle equipment.
Sec. 31202. Permit reminder system for non-use of safety belts.
Sec. 31203. Civil penalties.
Sec. 31204. Motor vehicle safety research and development.
Sec. 31205. Odometer requirements.
Sec. 31206. Increased penalties and damages for odometer fraud.
Sec. 31207. Extend prohibitions on importing noncompliant vehicles and 
           equipment to defective vehicles and equipment.
Sec. 31208. Conditions on importation of vehicles and equipment.
Sec. 31209. Port inspections; samples for examination or testing.

               Subtitle C--Transparency and Accountability

Sec. 31301. Public availability of recall information.
Sec. 31302. National Highway Traffic Safety Administration outreach to 
           manufacturer, dealer, and mechanic personnel.
Sec. 31303. Public availability of communications to dealers.
Sec. 31304. Corporate responsibility for National Highway Traffic Safety 
           Administration reports.
Sec. 31305. Passenger motor vehicle information program.
Sec. 31306. Promotion of vehicle defect reporting.
Sec. 31307. Whistleblower protections for motor vehicle manufacturers, 
           part suppliers, and dealership employees.
Sec. 31308. Anti-revolving door.
Sec. 31309. Study of crash data collection.
Sec. 31310. Update means of providing notification; improving efficacy 
           of recalls.
Sec. 31311. Expanding choices of remedy available to manufacturers of 
           replacement equipment.
Sec. 31312. Recall obligations and bankruptcy of manufacturer.
Sec. 31313. Repeal of insurance reports and information provision.
Sec. 31314. Monroney sticker to permit additional safety rating 
           categories.

          Subtitle D--Vehicle Electronics and Safety Standards

Sec. 31401. National Highway Traffic Safety Administration electronics, 
           software, and engineering expertise.
Sec. 31402. Electronic systems performance.

                   Subtitle E--Child Safety Standards

Sec. 31501. Child safety seats.
Sec. 31502. Child restraint anchorage systems.
Sec. 31503. Rear seat belt reminders.
Sec. 31504. Unattended passenger reminders.
Sec. 31505. New deadline.

 Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural 
                                Equipment

Sec. 31601. Rulemaking on visibility of agricultural equipment.

    TITLE II--COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012

Sec. 32001. Short title.
Sec. 32002. References to title 49, United States Code.

            Subtitle A--Commercial Motor Vehicle Registration

Sec. 32101. Registration of motor carriers.
Sec. 32102. Safety fitness of new operators.
Sec. 32103. Reincarnated carriers.

[[Page 126 STAT. 409]]

Sec. 32104. Financial responsibility requirements.
Sec. 32105. USDOT number registration requirement.
Sec. 32106. Registration fee system.
Sec. 32107. Registration update.
Sec. 32108. Increased penalties for operating without registration.
Sec. 32109. Revocation of registration for imminent hazard.
Sec. 32110. Revocation of registration and other penalties for failure 
           to respond to subpoena.
Sec. 32111. Fleetwide out of service order for operating without 
           required registration.
Sec. 32112. Motor carrier and officer patterns of safety violations.

               Subtitle B--Commercial Motor Vehicle Safety

Sec. 32201. Crashworthiness standards.
Sec. 32202. Canadian safety rating reciprocity.
Sec. 32203. State reporting of foreign commercial driver convictions.
Sec. 32204. Authority to disqualify foreign commercial drivers.
Sec. 32205. Revocation of foreign motor carrier operating authority for 
           failure to pay civil penalties.
Sec. 32206. Rental truck accident study.

                        Subtitle C--Driver Safety

Sec. 32301. Hours of service study and electronic logging devices.
Sec. 32302. Driver medical qualifications.
Sec. 32303. Commercial driver's license notification system.
Sec. 32304. Commercial motor vehicle operator training.
Sec. 32305. Commercial driver's license program.
Sec. 32306. Commercial motor vehicle driver information systems.
Sec. 32307. Employer responsibilities.
Sec. 32308. Program to assist Veterans to acquire commercial driver's 
           licenses.

                   Subtitle D--Safe Roads Act of 2012

Sec. 32401. Short title.
Sec. 32402. National clearinghouse for controlled substance and alcohol 
           test results of commercial motor vehicle operators.

                         Subtitle E--Enforcement

Sec. 32501. Inspection demand and display of credentials.
Sec. 32502. Out of service penalty for denial of access to records.
Sec. 32503. Penalties for violation of operation out of service orders.
Sec. 32504. Impoundment and immobilization of commercial motor vehicles 
           for imminent hazard.
Sec. 32505. Increased penalties for evasion of regulations.
Sec. 32506. Violations relating to commercial motor vehicle safety 
           regulation and operators.
Sec. 32507. Emergency disqualification for imminent hazard.
Sec. 32508. Disclosure to State and local law enforcement agencies.
Sec. 32509. Grade crossing safety regulations.

             Subtitle F--Compliance, Safety, Accountability

Sec. 32601. Motor carrier safety assistance program.
Sec. 32602. Performance and registration information systems management 
           program.
Sec. 32603. Authorization of appropriations.
Sec. 32604. Grants for commercial driver's license program 
           implementation.
Sec. 32605. Commercial vehicle information systems and networks.

           Subtitle G--Motorcoach Enhanced Safety Act of 2012

Sec. 32701. Short title.
Sec. 32702. Definitions.
Sec. 32703. Regulations for improved occupant protection, passenger 
           evacuation, and crash avoidance.
Sec. 32704. Fire prevention and mitigation.
Sec. 32705. Occupant protection, collision avoidance, fire causation, 
           and fire extinguisher research and testing.
Sec. 32706. Concurrence of research and rulemaking.
Sec. 32707. Improved oversight of motorcoach service providers.
Sec. 32708. Report on feasibility, benefits, and costs of establishing a 
           system of certification of training programs.
Sec. 32709. Commercial driver's license passenger endorsement 
           requirements.

[[Page 126 STAT. 410]]

Sec. 32710. Safety inspection program for commercial motor vehicles of 
           passengers.
Sec. 32711. Regulations.

        Subtitle H--Safe Highways and Infrastructure Preservation

Sec. 32801. Comprehensive truck size and weight limits study.
Sec. 32802. Compilation of existing State truck size and weight limit 
           laws.

                        Subtitle I--Miscellaneous

                          PART I--Miscellaneous

Sec. 32911. Prohibition of coercion.
Sec. 32912. Motor carrier safety advisory committee.
Sec. 32913. Waivers, exemptions, and pilot programs.
Sec. 32914. Registration requirements.
Sec. 32915. Additional motor carrier registration requirements.
Sec. 32916. Registration of freight forwarders and brokers.
Sec. 32917. Effective periods of registration.
Sec. 32918. Financial security of brokers and freight forwarders.
Sec. 32919. Unlawful brokerage activities.

                 PART II--Household Goods Transportation

Sec. 32921. Additional registration requirements for household goods 
           motor carriers.
Sec. 32922. Failure to give up possession of household goods.
Sec. 32923. Settlement authority.

                     PART III--Technical Amendments

Sec. 32931. Update of obsolete text.
Sec. 32932. Correction of interstate commerce commission references.
Sec. 32933. Technical and conforming amendments.
Sec. 32934. Exemptions from requirements for covered farm vehicles.

TITLE III--HAZARDOUS MATERIALS TRANSPORTATION SAFETY IMPROVEMENT ACT OF 
                                  2012

Sec. 33001. Short title.
Sec. 33002. Definition.
Sec. 33003. References to title 49, United States Code.
Sec. 33004. Training for emergency responders.
Sec. 33005. Paperless Hazard Communications Pilot Program.
Sec. 33006. Improving data collection, analysis, and reporting.
Sec. 33007. Hazardous material technical assessment, research and 
           development, and analysis program.
Sec. 33008. Hazardous Material Enforcement Training.
Sec. 33009. Inspections.
Sec. 33010. Civil penalties.
Sec. 33011. Reporting of fees.
Sec. 33012. Special permits, approvals, and exclusions.
Sec. 33013. Highway routing disclosures.
Sec. 33014. Motor carrier safety permits.
Sec. 33015. Wetlines.
Sec. 33016. Hazmat employee training requirements and grants.
Sec. 33017. Authorization of appropriations.

TITLE IV--SPORT FISH RESTORATION AND RECREATIONAL BOATING SAFETY ACT OF 
                                  2012

Sec. 34001. Short title.
Sec. 34002. Amendment of Federal Aid in Sport Fish Restoration Act.

                         TITLE V--MISCELLANEOUS

Sec. 35001. Overflights in Grand Canyon National Park.
Sec. 35002. Commercial air tour operations.
Sec. 35003. Qualifications for public aircraft status.

                           DIVISION D--FINANCE

Sec. 40001. Short title.

   TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND 
                              RELATED TAXES

Sec. 40101. Extension of trust fund expenditure authority.

[[Page 126 STAT. 411]]

Sec. 40102. Extension of highway-related taxes.

                      TITLE II--REVENUE PROVISIONS

         Subtitle A--Leaking Underground Storage Tank Trust Fund

Sec. 40201. Transfer from Leaking Underground Storage Tank Trust Fund to 
           Highway Trust Fund.

                     Subtitle B--Pension Provisions

                  PART I--Pension Funding Stabilization

Sec. 40211. Pension funding stabilization.

                         PART II--PBGC Premiums

Sec. 40221. Single employer plan annual premium rates.
Sec. 40222. Multiemployer annual premium rates.

                     PART III--Improvements of PBGC

Sec. 40231. Pension Benefit Guaranty Corporation Governance Improvement.
Sec. 40232. Participant and plan sponsor advocate.
Sec. 40233. Quality control procedures for the Pension Benefit Guaranty 
           Corporation.
Sec. 40234. Line of credit repeal.

               PART IV--Transfers of Excess Pension Assets

Sec. 40241. Extension for transfers of excess pension assets to retiree 
           health accounts.
Sec. 40242. Transfer of excess pension assets to retiree group term life 
           insurance accounts.

         Subtitle C--Additional Transfers to Highway Trust Fund

Sec. 40251. Additional transfers to Highway Trust Fund.

                   DIVISION E--RESEARCH AND EDUCATION

Sec. 50001. Short title.

                            TITLE I--FUNDING

Sec. 51001. Authorization of appropriations.

              TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

Sec. 52001. Research, technology, and education.
Sec. 52002. Surface transportation research, development, and 
           technology.
Sec. 52003. Research and technology development and deployment.
Sec. 52004. Training and education.
Sec. 52005. State planning and research.
Sec. 52006. International highway transportation program.
Sec. 52007. Surface transportation environmental cooperative research 
           program.
Sec. 52008. National cooperative freight research.
Sec. 52009. University transportation centers program.
Sec. 52010. University transportation research.
Sec. 52011. Bureau of Transportation Statistics.
Sec. 52012. Administrative authority.
Sec. 52013. Transportation research and development strategic planning.

         TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

Sec. 53001. Use of funds for ITS activities.
Sec. 53002. Goals and purposes.
Sec. 53003. General authorities and requirements.
Sec. 53004. Research and development.
Sec. 53005. National architecture and standards.
Sec. 53006. Vehicle-to-vehicle and vehicle-to-infrastructure 
           communications systems deployment.

                        DIVISION F--MISCELLANEOUS

              TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS

   Subtitle A--Secure Rural Schools and Community Self-determination 
                                 Program

Sec. 100101. Secure Rural Schools and Community Self-Determination 
           Program.

              Subtitle B--Payment in Lieu of Taxes Program

Sec. 100111. Payments in lieu of taxes.

[[Page 126 STAT. 412]]

                           Subtitle C--Offsets

Sec. 100121. Phased retirement authority.
Sec. 100122. Roll-your-own cigarette machines.
Sec. 100123. Change in FMAP increase for disaster recovery states.
Sec. 100124. Repeals.
Sec. 100125. Limitation on payments from the Abandoned Mine Reclamation 
           Fund.

                        TITLE II--FLOOD INSURANCE

          Subtitle A--Flood Insurance Reform and Modernization

Sec. 100201. Short title.
Sec. 100202. Definitions.
Sec. 100203. Extension of National Flood Insurance Program.
Sec. 100204. Availability of insurance for multifamily properties.
Sec. 100205. Reform of premium rate structure.
Sec. 100207. Premium adjustment.
Sec. 100208. Enforcement.
Sec. 100209. Escrow of flood insurance payments.
Sec. 100210. Minimum deductibles for claims under the National Flood 
           Insurance Program.
Sec. 100211. Considerations in determining chargeable premium rates.
Sec. 100212. Reserve fund.
Sec. 100213. Repayment plan for borrowing authority.
Sec. 100214. Payment of condominium claims.
Sec. 100215. Technical mapping advisory council.
Sec. 100216. National flood mapping program.
Sec. 100217. Scope of appeals.
Sec. 100218. Scientific Resolution Panel.
Sec. 100219. Removal of limitation on State contributions for updating 
           flood maps.
Sec. 100220. Coordination.
Sec. 100221. Interagency coordination study.
Sec. 100222. Notice of flood insurance availability under RESPA.
Sec. 100223. Participation in State disaster claims mediation programs.
Sec. 100224. Oversight and expense reimbursements of insurance 
           companies.
Sec. 100225. Mitigation.
Sec. 100226. Flood Protection Structure Accreditation Task Force.
Sec. 100227. Flood in progress determinations.
Sec. 100228. Clarification of residential and commercial coverage 
           limits.
Sec. 100229. Local data requirement.
Sec. 100230. Eligibility for flood insurance for persons residing in 
           communities that have made adequate progress on the 
           reconstruction or improvement of a flood protection system.
Sec. 100231. Studies and reports.
Sec. 100232. Reinsurance.
Sec. 100233. GAO study on business interruption and additional living 
           expenses coverages.
Sec. 100234. Policy disclosures.
Sec. 100235. Report on inclusion of building codes in floodplain 
           management criteria.
Sec. 100236. Study of participation and affordability for certain 
           policyholders.
Sec. 100237. Study and report concerning the participation of Indian 
           tribes and members of Indian tribes in the National Flood 
           Insurance Program.
Sec. 100238. Technical corrections.
Sec. 100239. Use of private insurance to satisfy mandatory purchase 
           requirement.
Sec. 100240. Levees constructed on certain properties.
Sec. 100241. Insurance coverage for private properties affected by 
           flooding from Federal lands.
Sec. 100242. Permissible land use under Federal flood insurance plan.
Sec. 100243. CDBG eligibility for flood insurance outreach activities 
           and community building code administration grants.
Sec. 100244. Termination of force-placed insurance.
Sec. 100245. FEMA authority on transfer of policies.
Sec. 100246. Reimbursement of certain expenses.
Sec. 100247. FIO study on risks, hazards, and insurance.
Sec. 100248. Flood protection improvements constructed on certain 
           properties.
Sec. 100249. No cause of action.

                 Subtitle B--Alternative Loss Allocation

Sec. 100251. Short title.
Sec. 100252. Assessing and modeling named storms over coastal States.
Sec. 100253. Alternative loss allocation system for indeterminate 
           claims.

[[Page 126 STAT. 413]]

                    Subtitle C--HEARTH Act Amendment

Sec. 100261. HEARTH Act technical corrections.

             TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

Sec. 100301. Federal Direct Stafford Loan interest rate extension.
Sec. 100302. Eligibility for, and interest charges on, Federal Direct 
           Stafford Loans for new borrowers on or after July 1, 2013.

              DIVISION G--SURFACE TRANSPORTATION EXTENSION

Sec. 110001. Short title.

                      TITLE I--FEDERAL-AID HIGHWAYS

Sec. 111001. Extension of Federal-aid highway programs.

             TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS

Sec. 112001. Extension of National Highway Traffic Safety Administration 
           highway safety programs.
Sec. 112002. Extension of Federal Motor Carrier Safety Administration 
           programs.
Sec. 112003. Additional programs.

                TITLE III--PUBLIC TRANSPORTATION PROGRAMS

Sec. 113001. Allocation of funds for planning programs.
Sec. 113002. Special rule for urbanized area formula grants.
Sec. 113003. Allocating amounts for capital investment grants.
Sec. 113004. Apportionment of formula grants for other than urbanized 
           areas.
Sec. 113005. Apportionment based on fixed guideway factors.
Sec. 113006. Authorizations for public transportation.
Sec. 113007. Amendments to SAFETEA-LU.

                        TITLE IV--EFFECTIVE DATE

Sec. 114001. Effective date.

                      DIVISION H--BUDGETARY EFFECTS

Sec. 120001. Budgetary effects.

SEC. 2. <<NOTE: 23 USC 101 note.>> DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Department.--The term ``Department'' means the 
        Department of Transportation.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
SEC. 3. EFFECTIVE DATE.

    (a) <<NOTE: 23 USC 101 note.>> In General.--Except as otherwise 
provided, divisions A, B, C (other than sections 32603(d), 32603(g), 
32912, and 34002 of that division) and E, including the amendments made 
by those divisions, take effect on October 1, 2012.

    (b) <<NOTE: 23 USC 101 note.>> References.--Except as otherwise 
provided, any reference to the date of enactment of the MAP-21 or to the 
date of enactment of the Federal Public Transportation Act of 2012 in 
the divisions described in subsection (a) or in an amendment made by 
those divisions shall be deemed to be a reference to the effective date 
of those divisions.

[[Page 126 STAT. 414]]

    DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION 
                                PROGRAMS

                      TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations and Programs

SEC. 1101. 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) Federal-aid highway program.--For the national highway 
        performance program under section 119 of title 23, United States 
        Code, the surface transportation program under section 133 of 
        that title, the highway safety improvement program under section 
        148 of that title, the congestion mitigation and air quality 
        improvement program under section 149 of that title, and to 
        carry out section 134 of that title--
                    (A) $37,476,819,674 for fiscal year 2013; and
                    (B) $37,798,000,000 for fiscal year 2014.
            (2) Transportation infrastructure finance and innovation 
        program.--For credit assistance under the transportation 
        infrastructure finance and innovation program under chapter 6 of 
        title 23, United States Code--
                    (A) $750,000,000 for fiscal year 2013; and
                    (B) $1,000,000,000 for fiscal year 2014.
            (3) Federal lands and tribal transportation programs.--
                    (A) Tribal transportation program.--For the tribal 
                transportation program under section 202 of title 23, 
                United States Code, $450,000,000 for each of fiscal 
                years 2013 and 2014.
                    (B) Federal lands transportation program.--For the 
                Federal lands transportation program under section 203 
                of title 23, United States Code, $300,000,000 for each 
                of fiscal years 2013 and 2014, of which $240,000,000 of 
                the amount made available for each fiscal year shall be 
                the amount for the National Park Service and $30,000,000 
                of the amount made available for each fiscal year shall 
                be the amount for the United States Fish and Wildlife 
                Service.
                    (C) Federal lands access program.--For the Federal 
                lands access program under section 204 of title 23, 
                United States Code, $250,000,000 for each of fiscal 
                years 2013 and 2014.
            (4) Territorial and puerto rico highway program.--For the 
        territorial and Puerto Rico highway program under section 165 of 
        title 23, United States Code, $190,000,000 for each of fiscal 
        years 2013 and 2014.

    (b) <<NOTE: 23 USC 101 note.>> Disadvantaged Business Enterprises.--
            (1) Findings.--Congress finds that--
                    (A) while significant progress has occurred due to 
                the establishment of the disadvantaged business 
                enterprise

[[Page 126 STAT. 415]]

                program, discrimination and related barriers continue to 
                pose significant obstacles for minority- and women-owned 
                businesses seeking to do business in federally-assisted 
                surface transportation markets across the United States;
                    (B) the continuing barriers described in 
                subparagraph (A) merit the continuation of the 
                disadvantaged business enterprise program;
                    (C) Congress has received and reviewed testimony and 
                documentation of race and gender discrimination from 
                numerous sources, including congressional hearings and 
                roundtables, scientific reports, reports issued by 
                public and private agencies, news stories, reports of 
                discrimination by organizations and individuals, and 
                discrimination lawsuits, which show that race- and 
                gender-neutral efforts alone are insufficient to address 
                the problem;
                    (D) the testimony and documentation described in 
                subparagraph (C) demonstrate that discrimination across 
                the United States poses a barrier to full and fair 
                participation in surface transportation-related 
                businesses of women business owners and minority 
                business owners and has impacted firm development and 
                many aspects of surface transportation-related business 
                in the public and private markets; and
                    (E) the testimony and documentation described in 
                subparagraph (C) provide a strong basis that there is a 
                compelling need for the continuation of the 
                disadvantaged business enterprise program to address 
                race and gender discrimination in surface 
                transportation-related business.
            (2) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) Small business concern.--
                          (i) In general.--The term ``small business 
                      concern'' means a small business concern (as the 
                      term is used in section 3 of the Small Business 
                      Act (15 U.S.C. 632)).
                          (ii) Exclusions.--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 have average annual gross 
                      receipts during the preceding 3 fiscal years in 
                      excess of $22,410,000, as adjusted annually by the 
                      Secretary for inflation.
                    (B) Socially and economically disadvantaged 
                individuals.--The term ``socially and economically 
                disadvantaged individuals'' has the meaning given the 
                term in section 8(d) of the Small Business Act (15 
                U.S.C. 637(d)) and relevant subcontracting regulations 
                issued pursuant to that Act, except that women shall be 
                presumed to be socially and economically disadvantaged 
                individuals for purposes of this subsection.
            (3) Amounts for small business concerns.--Except to the 
        extent that the Secretary determines otherwise, not less than 10 
        percent of the amounts made available for any program under 
        divisions A and B of this Act and section 403 of title 23, 
        United States Code, shall be expended through small business 
        concerns owned and controlled by socially and economically 
        disadvantaged individuals.

[[Page 126 STAT. 416]]

            (4) Annual listing of disadvantaged business enterprises.--
        Each State shall annually--
                    (A) survey and compile a list of the small business 
                concerns referred to in paragraph (2) in the State, 
                including the location of the small business concerns in 
                the State; and
                    (B) <<NOTE: Notification.>> notify the Secretary, in 
                writing, of the percentage of the small business 
                concerns that are controlled by--
                          (i) women;
                          (ii) socially and economically disadvantaged 
                      individuals (other than women); and
                          (iii) individuals who are women and are 
                      otherwise socially and economically disadvantaged 
                      individuals.
            (5) Uniform certification.--
                    (A) In general.--The Secretary shall establish 
                minimum uniform criteria for use by State governments in 
                certifying whether a concern qualifies as a small 
                business concern for the purpose of this subsection.
                    (B) Inclusions.--The minimum uniform criteria 
                established under subparagraph (A) shall include, with 
                respect to a potential small business concern--
                          (i) on-site visits;
                          (ii) personal interviews with personnel;
                          (iii) issuance or inspection of licenses;
                          (iv) analyses of stock ownership;
                          (v) listings of equipment;
                          (vi) analyses of bonding capacity;
                          (vii) listings of work completed;
                          (viii) examination of the resumes of principal 
                      owners;
                          (ix) analyses of financial capacity; and
                          (x) analyses of the type of work preferred.
            (6) Reporting.--The Secretary shall establish minimum 
        requirements for use by State governments in reporting to the 
        Secretary--
                    (A) information concerning disadvantaged business 
                enterprise awards, commitments, and achievements; and
                    (B) such other information as the Secretary 
                determines to be appropriate for the proper monitoring 
                of the disadvantaged business enterprise program.
            (7) Compliance with court orders.--Nothing in this 
        subsection limits the eligibility of an individual or entity to 
        receive funds made available under divisions A and B of this Act 
        and section 403 of title 23, United States Code, if the entity 
        or person is prevented, in whole or in part, from complying with 
        paragraph (2) because a Federal court issues a final order in 
        which the court finds that a requirement or the implementation 
        of paragraph (2) is unconstitutional. 
SEC. 1102. <<NOTE: 23 USC 104 note.>> OBLIGATION CEILING.

    (a) General Limitation.--Subject to subsection (e), and 
notwithstanding any other provision of law, the obligations for Federal-
aid highway and highway safety construction programs shall not exceed--
            (1) $39,699,000,000 for fiscal year 2013; and
            (2) $40,256,000,000 for fiscal year 2014.

[[Page 126 STAT. 417]]

    (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 (95 
        Stat. 1701);
            (4) subsections (b) and (j) of section 131 of the Surface 
        Transportation Assistance Act of 1982 (96 Stat. 2119);
            (5) subsections (b) and (c) of section 149 of the Surface 
        Transportation and Uniform Relocation Assistance Act of 1987 
        (101 Stat. 198);
            (6) sections 1103 through 1108 of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (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 2004, 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 (112 Stat. 107) or subsequent Acts for 
        multiple years or to remain available until expended, 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 2011, only in an amount equal 
        to $639,000,000 for each of those fiscal years);
            (11) section 1603 of SAFETEA-LU (23 U.S.C. 118 note; 119 
        Stat. 1248), 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; and
            (12) section 119 of title 23, United States Code (but, for 
        each of fiscal years 2013 through 2014, only in an amount equal 
        to $639,000,000 for each of those fiscal years).

    (c) Distribution of Obligation Authority.--For each of fiscal years 
2013 through 2014, 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; and
                    (B) amounts authorized for 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--
                    (A) made available from the Highway Trust Fund 
                (other than the Mass Transit Account) for Federal-aid 
                highway and highway safety construction programs for 
                previous fiscal years the funds for which are allocated 
                by the Secretary (or apportioned by the Secretary under 
                sections 202 or 204 of title 23, United States Code); 
                and
                    (B) for which obligation authority was provided in a 
                previous fiscal year;
            (3) <<NOTE: Determination.>> shall determine the proportion 
        that--

[[Page 126 STAT. 418]]

                    (A) the obligation authority provided by subsection 
                (a) for the fiscal year, less the aggregate of amounts 
                not distributed under paragraphs (1) and (2) of this 
                subsection; 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 (11) of subsection (b) and sums 
                authorized to be appropriated for section 119 of title 
                23, United States Code, equal to the amount referred to 
                in subsection (b)(12) for the fiscal year), less the 
                aggregate of the amounts not distributed under 
                paragraphs (1) and (2) of this subsection;
            (4) shall distribute the obligation authority provided by 
        subsection (a), less the aggregate amounts not distributed under 
        paragraphs (1) and (2), for each of the programs (other than 
        programs to which paragraph (1) applies) that are allocated by 
        the Secretary under this Act and title 23, United States Code, 
        or apportioned by the Secretary under sections 202 or 204 of 
        that title, by multiplying--
                    (A) the proportion determined under paragraph (3); 
                by
                    (B) the amounts authorized to be appropriated for 
                each such program for the fiscal year; and
            (5) 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 
        paragraph (4), for Federal-aid highway and highway safety 
        construction programs that are apportioned by the Secretary 
        under title 23, United States Code (other than the amounts 
        apportioned for the national highway performance program in 
        section 119 of title 23, United States Code, that are exempt 
        from the limitation under subsection (b)(12) and the amounts 
        apportioned under section 204 of that title) in the proportion 
        that--
                    (A) amounts authorized to be appropriated for the 
                programs that are apportioned under title 23, United 
                States Code, to each State for the fiscal year; bears to
                    (B) the total of the amounts authorized to be 
                appropriated for the programs that are apportioned under 
                title 23, United States Code, to all States for the 
                fiscal year.

    (d) <<NOTE: Time period.>> Redistribution of Unused Obligation 
Authority.--Notwithstanding subsection (c), the Secretary shall, after 
August 1 of each of fiscal years 2013 through 2014--
            (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 
        144 (as in effect on the day before the date of enactment of 
        this Act) and 104 of title 23, United States Code.

    (e) Applicability of Obligation Limitations to Transportation 
Research Programs.--
            (1) <<NOTE: Contracts.>> In general.--Except as provided in 
        paragraph (2), obligation limitations imposed by subsection (a) 
        shall apply

[[Page 126 STAT. 419]]

        to contract authority for transportation research programs 
        carried out under--
                    (A) chapter 5 of title 23, United States Code; and
                    (B) division E of this Act.
            (2) Exception.--Obligation authority made available under 
        paragraph (1) shall--
                    (A) <<NOTE: Time period.>> remain available for a 
                period of 4 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) <<NOTE: Deadline.>> In general.--Not later than 30 days 
        after the date of distribution of obligation authority under 
        subsection (c) for each of fiscal years 2013 through 2014, the 
        Secretary shall distribute to the States any funds (excluding 
        funds authorized for the program under section 202 of title 23, 
        United States Code) 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 (or will not be apportioned to the States 
                under section 204 of title 23, United States Code), and 
                will not be available for obligation, for the fiscal 
                year because of the imposition of any obligation 
                limitation for the fiscal year.
            (2) Ratio.--Funds shall be distributed under paragraph (1) 
        in the same proportion as the distribution of obligation 
        authority under subsection (c)(5).
            (3) Availability.--Funds distributed to each State under 
        paragraph (1) shall be available for any purpose described in 
        section 133(c) of title 23, United States Code. 
SEC. 1103. DEFINITIONS.

    (a) Definitions.--Section 101(a) of title 23, United States Code, is 
amended--
            (1) by striking paragraphs (6), (7), (9), (12), (19), (20), 
        (24), (25), (26), (28), (38), and (39);
            (2) by redesignating paragraphs (2), (3), (4), (5), (8), 
        (13), (14), (15), (16), (17), (18), (21), (22), (23), (27), 
        (29), (30), (31), (32), (33), (34), (35), (36), and (37) as 
        paragraphs (3), (4), (5), (6), (9), (12), (13), (14), (15), 
        (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), 
        (26), (28), (29), (33), and (34), respectively;
            (3) by inserting after paragraph (1) the following:
            ``(2) Asset management.--The term `asset management' means a 
        strategic and systematic process of operating, maintaining, and 
        improving physical assets, with a focus on both engineering and 
        economic analysis based upon quality information, to identify a 
        structured sequence of maintenance, preservation, repair, 
        rehabilitation, and replacement actions that will achieve and 
        sustain a desired state of good repair over the lifecycle of the 
        assets at minimum practicable cost.'';
            (4) in paragraph (4) (as redesignated by paragraph (2))--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or any project eligible for assistance under 
                this title'' after ``of a highway'';

[[Page 126 STAT. 420]]

                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) preliminary engineering, engineering, and 
                design-related services directly relating to the 
                construction of a highway project, including 
                engineering, design, project development and management, 
                construction project management and inspection, 
                surveying, mapping (including the establishment of 
                temporary and permanent geodetic control in accordance 
                with specifications of the National Oceanic and 
                Atmospheric Administration), and architectural-related 
                services;'';
                    (C) in subparagraph (B)--
                          (i) by inserting ``reconstruction,'' before 
                      ``resurfacing''; and
                          (ii) by striking ``and rehabilitation'' and 
                      inserting ``rehabilitation, and preservation'';
                    (D) in subparagraph (E) by striking ``railway'' and 
                inserting ``railway-highway''; and
                    (E) in subparagraph (F) by striking ``obstacles'' 
                and inserting ``hazards'';
            (5) in paragraph (6) (as so redesignated)--
                    (A) by inserting ``public'' before ``highway 
                eligible''; and
                    (B) by inserting ``functionally'' before 
                ``classified'';
            (6) by inserting after paragraph (6) (as so redesignated) 
        the following:
            ``(7) Federal lands access transportation facility.--The 
        term `Federal Lands access transportation facility' means a 
        public highway, road, bridge, trail, or transit system that is 
        located on, is adjacent to, or provides access to Federal lands 
        for which title or maintenance responsibility is vested in a 
        State, county, town, township, tribal, municipal, or local 
        government.
            ``(8) Federal lands transportation facility.--The term 
        `Federal lands transportation facility' means a public highway, 
        road, bridge, trail, or transit system that is located on, is 
        adjacent to, or provides access to Federal lands for which title 
        and maintenance responsibility is vested in the Federal 
        Government, and that appears on the national Federal lands 
        transportation facility inventory described in section 
        203(c).'';
            (7) in paragraph (11)(B) by inserting ``including public 
        roads on dams'' after ``drainage structure'';
            (8) in paragraph (14) (as so redesignated)--
                    (A) by striking ``as a'' and inserting ``as an air 
                quality''; and
                    (B) by inserting ``air quality'' before ``attainment 
                area'';
            (9) in paragraph (18) (as so redesignated) by striking ``an 
        undertaking to construct a particular portion of a highway, or 
        if the context so implies, the particular portion of a highway 
        so constructed or any other undertaking'' and inserting ``any 
        undertaking'';
            (10) in paragraph (19) (as so redesignated)--
                    (A) by striking ``the State transportation 
                department and''; and
                    (B) by inserting ``and the recipient'' after 
                ``Secretary'';
            (11) by striking paragraph (23) (as so redesignated) and 
        inserting the following:

[[Page 126 STAT. 421]]

            ``(23) Safety improvement project.--The term `safety 
        improvement project' means a strategy, activity, or project on a 
        public road that is consistent with the State strategic highway 
        safety plan and corrects or improves a roadway feature that 
        constitutes a hazard to road users or addresses a highway safety 
        problem.'';
            (12) by inserting after paragraph (26) (as so redesignated) 
        the following:
            ``(27) State strategic highway safety plan.--The term `State 
        strategic highway safety plan' has the same meaning given such 
        term in section 148(a).'';
            (13) by striking paragraph (29) (as so redesignated) and 
        inserting the following:
            ``(29) Transportation alternatives.--The term 
        `transportation alternatives' means any of the following 
        activities when carried out as part of any program or project 
        authorized or funded under this title, or as an independent 
        program or project related to surface transportation:
                    ``(A) Construction, planning, and design of on-road 
                and off-road trail facilities for pedestrians, 
                bicyclists, and other nonmotorized forms of 
                transportation, including sidewalks, bicycle 
                infrastructure, pedestrian and bicycle signals, traffic 
                calming techniques, lighting and other safety-related 
                infrastructure, and transportation projects to achieve 
                compliance with the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12101 et seq.).
                    ``(B) Construction, planning, and design of 
                infrastructure-related projects and systems that will 
                provide safe routes for non-drivers, including children, 
                older adults, and individuals with disabilities to 
                access daily needs.
                    ``(C) Conversion and use of abandoned railroad 
                corridors for trails for pedestrians, bicyclists, or 
                other nonmotorized transportation users.
                    ``(D) Construction of turnouts, overlooks, and 
                viewing areas.
                    ``(E) Community improvement activities, including--
                          ``(i) inventory, control, or removal of 
                      outdoor advertising;
                          ``(ii) historic preservation and 
                      rehabilitation of historic transportation 
                      facilities;
                          ``(iii) vegetation management practices in 
                      transportation rights-of-way to improve roadway 
                      safety, prevent against invasive species, and 
                      provide erosion control; and
                          ``(iv) archaeological activities relating to 
                      impacts from implementation of a transportation 
                      project eligible under this title.
                    ``(F) Any environmental mitigation activity, 
                including pollution prevention and pollution abatement 
                activities and mitigation to--
                          ``(i) address stormwater management, control, 
                      and water pollution prevention or abatement 
                      related to highway construction or due to highway 
                      runoff, including activities described in sections 
                      133(b)(11), 328(a), and 329; or

[[Page 126 STAT. 422]]

                          ``(ii) reduce vehicle-caused wildlife 
                      mortality or to restore and maintain connectivity 
                      among terrestrial or aquatic habitats.''; and
            (14) by inserting after paragraph (29) (as so redesignated) 
        the following:
            ``(30) Transportation systems management and operations.--
                    ``(A) In general.--The term `transportation systems 
                management and operations' means integrated strategies 
                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) actions such as traffic detection and 
                      surveillance, corridor management, freeway 
                      management, arterial management, active 
                      transportation and demand management, work zone 
                      management, emergency management, traveler 
                      information services, congestion pricing, parking 
                      management, automated enforcement, traffic 
                      control, commercial vehicle operations, freight 
                      management, and coordination of highway, rail, 
                      transit, bicycle, and pedestrian operations; and
                          ``(ii) coordination of the implementation of 
                      regional transportation system management and 
                      operations investments (such as traffic incident 
                      management, traveler information services, 
                      emergency management, roadway weather management, 
                      intelligent transportation systems, communication 
                      networks, and information sharing systems) 
                      requiring agreements, integration, and 
                      interoperability to achieve targeted system 
                      performance, reliability, safety, and customer 
                      service levels.
            ``(31) Tribal transportation facility.--The term `tribal 
        transportation facility' means a public highway, road, bridge, 
        trail, or transit system that is located on or provides access 
        to tribal land and appears on the national tribal transportation 
        facility inventory described in section 202(b)(1).
            ``(32) Truck stop electrification system.--The term `truck 
        stop electrification system' means a system that delivers heat, 
        air conditioning, electricity, or communications to a heavy-duty 
        vehicle.''.

    (b) Sense of Congress.--Section 101(c) of title 23, United States 
Code, is amended by striking ``system'' and inserting ``highway''.
SEC. 1104. NATIONAL HIGHWAY SYSTEM.

    (a) In General.--Section 103 of title 23, United States Code, is 
amended to read as follows:
``Sec. 103. National Highway System

    ``(a) In General.--For the purposes of this title, the Federal-aid 
system is the National Highway System, which includes the Interstate 
System.

[[Page 126 STAT. 423]]

    ``(b) National Highway System.--
            ``(1) Description.--The National Highway System consists of 
        the highway routes and connections to transportation facilities 
        that shall--
                    ``(A) serve major population centers, international 
                border crossings, ports, airports, public transportation 
                facilities, and other intermodal transportation 
                facilities and other major travel destinations;
                    ``(B) meet national defense requirements; and
                    ``(C) serve interstate and interregional travel and 
                commerce.
            ``(2) Components.--The National Highway System described in 
        paragraph (1) consists of the following:
                    ``(A) The National Highway System depicted on the 
                map submitted by the Secretary of Transportation to 
                Congress with the report entitled `Pulling Together: The 
                National Highway System and its Connections to Major 
                Intermodal Terminals' and dated May 24, 1996, and 
                modifications approved by the Secretary before the date 
                of enactment of the MAP-21.
                    ``(B) Other urban and rural principal arterial 
                routes, and border crossings on those routes, that were 
                not included on the National Highway System before the 
                date of enactment of the MAP-21.
                    ``(C) Other connector highways (including toll 
                facilities) that were not included in the National 
                Highway System before the date of enactment of the MAP-
                21 but that provide motor vehicle access between 
                arterial routes on the National Highway System and a 
                major intermodal transportation facility.
                    ``(D) A strategic highway network that--
                          ``(i) consists of a network of highways that 
                      are important to the United States strategic 
                      defense policy, that provide defense access, 
                      continuity, and emergency capabilities for the 
                      movement of personnel, materials, and equipment in 
                      both peacetime and wartime, and that were not 
                      included on the National Highway System before the 
                      date of enactment of the MAP-21;
                          ``(ii) may include highways on or off the 
                      Interstate System; and
                          ``(iii) shall be designated by the Secretary, 
                      in consultation with appropriate Federal agencies 
                      and the States.
                    ``(E) Major strategic highway network connectors 
                that--
                          ``(i) consist of highways that provide motor 
                      vehicle access between major military 
                      installations and highways that are part of the 
                      strategic highway network but were not included on 
                      the National Highway System before the date of 
                      enactment of the MAP-21; and
                          ``(ii) shall be designated by the Secretary, 
                      in consultation with appropriate Federal agencies 
                      and the States.
            ``(3) Modifications to nhs.--

[[Page 126 STAT. 424]]

                    ``(A) In general.--The Secretary may make any 
                modification, including any modification consisting of a 
                connector to a major intermodal terminal, to the 
                National Highway System that is proposed by a State if 
                the Secretary determines that the modification--
                          ``(i) meets the criteria established for the 
                      National Highway System under this title after the 
                      date of enactment of the MAP-21; and
                          ``(ii) enhances the national transportation 
                      characteristics of the National Highway System.
                    ``(B) Cooperation.--
                          ``(i) In general.--In proposing a modification 
                      under this paragraph, a State shall cooperate with 
                      local and regional officials.
                          ``(ii) Urbanized areas.--In an urbanized area, 
                      the local officials shall act through the 
                      metropolitan planning organization designated for 
                      the area under section 134.

    ``(c) Interstate System.--
            ``(1) Description.--
                    ``(A) In general.--The Dwight D. Eisenhower National 
                System of Interstate and Defense Highways within the 
                United States (including the District of Columbia and 
                Puerto Rico) consists of highways designed, located, and 
                selected in accordance with this paragraph.
                    ``(B) Design.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), highways on the Interstate System 
                      shall be designed in accordance with the standards 
                      of section 109(b).
                          ``(ii) Exception.--Highways on the Interstate 
                      System in Alaska and Puerto Rico shall be designed 
                      in accordance with such geometric and construction 
                      standards as are adequate for current and probable 
                      future traffic demands and the needs of the 
                      locality of the highway.
                    ``(C) Location.--Highways on the Interstate System 
                shall be located so as--
                          ``(i) to connect by routes, as direct as 
                      practicable, the principal metropolitan areas, 
                      cities, and industrial centers;
                          ``(ii) to serve the national defense; and
                          ``(iii) to the maximum extent practicable, to 
                      connect at suitable border points with routes of 
                      continental importance in Canada and Mexico.
                    ``(D) Selection of routes.--To the maximum extent 
                practicable, each route of the Interstate System shall 
                be selected by joint action of the State transportation 
                departments of the State in which the route is located 
                and the adjoining States, in cooperation with local and 
                regional officials, and subject to the approval of the 
                Secretary.
            ``(2) Maximum mileage.--The mileage of highways on the 
        Interstate System shall not exceed 43,000 miles, exclusive of 
        designations under paragraph (4).
            ``(3) Modifications.--The Secretary may approve or require 
        modifications to the Interstate System in a manner

[[Page 126 STAT. 425]]

        consistent with the policies and procedures established under 
        this subsection.
            ``(4) Interstate system designations.--
                    ``(A) Additions.--If the Secretary determines that a 
                highway on the National Highway System meets all 
                standards of a highway on the Interstate System and that 
                the highway is a logical addition or connection to the 
                Interstate System, the Secretary may, upon the 
                affirmative recommendation of the State or States in 
                which the highway is located, designate the highway as a 
                route on the Interstate System.
                    ``(B) Designations as future interstate system 
                routes.--
                          ``(i) In general.--Subject to clauses (ii) 
                      through (vi), if the Secretary determines that a 
                      highway on the National Highway System would be a 
                      logical addition or connection to the Interstate 
                      System and would qualify for designation as a 
                      route on the Interstate System under subparagraph 
                      (A) if the highway met all standards of a highway 
                      on the Interstate System, the Secretary may, upon 
                      the affirmative recommendation of the State or 
                      States in which the highway is located, designate 
                      the highway as a future Interstate System route.
                          ``(ii) Written agreement.--A designation under 
                      clause (i) shall be made only upon the written 
                      agreement of each State described in that clause 
                      that the highway will be constructed to meet all 
                      standards of a highway on the Interstate System by 
                      not later than the date that is 25 years after the 
                      date of the agreement.
                          ``(iii) Failure to complete construction.--If 
                      a State described in clause (i) has not 
                      substantially completed the construction of a 
                      highway designated under this subparagraph by the 
                      date specified in clause (ii), the Secretary shall 
                      remove the designation of the highway as a future 
                      Interstate System route.
                          ``(iv) Effect of removal.--Removal of the 
                      designation of a highway under clause (iii) shall 
                      not preclude the Secretary from designating the 
                      highway as a route on the Interstate System under 
                      subparagraph (A) or under any other provision of 
                      law providing for addition to the Interstate 
                      System.
                          ``(v) Retroactive effect.--An agreement 
                      described in clause (ii) that is entered into 
                      before August 10, 2005, shall be deemed to include 
                      the 25-year time limitation described in that 
                      clause, regardless of any earlier construction 
                      completion date in the agreement.
                          ``(vi) References.--No law, rule, regulation, 
                      map, document, or other record of the United 
                      States, or of any State or political subdivision 
                      of a State, shall refer to any highway designated 
                      as a future Interstate System route under this 
                      subparagraph, and no such highway shall be signed 
                      or marked, as a highway on the Interstate System, 
                      until such time as the highway--

[[Page 126 STAT. 426]]

                                    ``(I) is constructed to the 
                                geometric and construction standards for 
                                the Interstate System; and
                                    ``(II) has been designated as a 
                                route on the Interstate System.
                    ``(C) Financial responsibility.--Except as provided 
                in this title, the designation of a highway under this 
                paragraph shall create no additional Federal financial 
                responsibility with respect to the highway.
            ``(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 or elements of 
                the Interstate System are listed on, or eligible for 
                listing on, the National Register of Historic Places.
                    ``(B) Individual elements.--Subject to subparagraph 
                (C)--
                          ``(i) <<NOTE: Determination.>> the Secretary 
                      shall determine, through the administrative 
                      process established for exempting the Interstate 
                      System from section 106 of the National Historic 
                      Preservation Act (16 U.S.C. 470f), those 
                      individual elements of the Interstate System that 
                      possess national or exceptional historic 
                      significance (such as a historic bridge or a 
                      highly significant engineering feature); and
                          ``(ii) those elements shall be considered to 
                      be historic sites under section 303 of title 49 or 
                      section 138 of this title, as applicable.
                    ``(C) Construction, maintenance, restoration, and 
                rehabilitation activities.--Subparagraph (B) does not 
                prohibit a State from carrying out construction, 
                maintenance, preservation, restoration, or 
                rehabilitation activities for a portion of the 
                Interstate System referred to in subparagraph (B) upon 
                compliance with section 303 of title 49 or section 138 
                of this title, as applicable, and section 106 of the 
                National Historic Preservation Act (16 U.S.C. 470f).''.

    (b) Inclusion of Certain Route Segments on Interstate System.--
            (1) In general.--Section 1105(e)(5)(A) of the Intermodal 
        Surface Transportation Efficiency Act of 1991 (105 Stat. 2031; 
        109 Stat. 597; 115 Stat. 872) is amended--
                    (A) in the first sentence, by striking ``and in 
                subsections (c)(18) and (c)(20)'' and inserting ``, in 
                subsections (c)(18) and (c)(20), and in subparagraphs 
                (A)(iii) and (B) of subsection (c)(26)''; and
                    (B) in the second sentence, by striking ``that the 
                segment'' and all that follows through the period and 
                inserting ``that the segment meets the Interstate System 
                design standards approved by the Secretary under section 
                109(b) of title 23, United States Code, and is planned 
                to connect to an existing Interstate System segment by 
                the date that is 25 years after the date of enactment of 
                the MAP-21.''.
            (2) Route designation.--Section 1105(e)(5)(C)(i) of the 
        Intermodal Surface Transportation Efficiency Act of 1991 (105

[[Page 126 STAT. 427]]

        Stat. 2032; 109 Stat. 598) is amended by adding at the end the 
        following: ``The routes referred to subparagraphs (A)(iii) and 
        (B)(i) of subsection (c)(26) are designated as Interstate Route 
        I-11.''.

    (c) Conforming Amendments.--
            (1) Analysis.--The analysis for chapter 1 of title 23, 
        United States Code, is amended by striking the item relating to 
        section 103 and inserting the following:

``103. National Highway System.''.

            (2) Section 113.--Section 113 of title 23, United States 
        Code, is amended--
                    (A) in subsection (a) by striking ``the Federal-aid 
                systems'' and inserting ``Federal-aid highways''; and
                    (B) in subsection (b), in the first sentence, by 
                striking ``of the Federal-aid systems'' and inserting 
                ``Federal-aid highway''.
            (3) Section 123.--Section 123(a) of title 23, United States 
        Code, is amended in the first sentence by striking ``Federal-aid 
        system'' and inserting ``Federal-aid highway''.
            (4) Section 217.--Section 217(b) of title 23, United States 
        Code, is amended in the subsection heading by striking 
        ``National Highway System'' and inserting ``National Highway 
        Performance Program''.
            (5) Section 304.--Section 304 of title 23, United States 
        Code, is amended in the first sentence by striking ``the 
        Federal-aid highway systems'' and inserting ``Federal-aid 
        highways''.
            (6) Section 317.--Section 317(d) of title 23, United States 
        Code, is amended by striking ``system'' and inserting 
        ``highway''.
SEC. 1105. APPORTIONMENT.

    (a) In General.--Section 104 of title 23, United States Code, is 
amended to read as follows:
``Sec. 104. Apportionment

    ``(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 for 
        administrative expenses of the Federal Highway Administration--
                    ``(A) $454,180,326 for fiscal year 2013; and
                    ``(B) $440,000,000 for fiscal year 2014.
            ``(2) Purposes.--The amounts authorized to be appropriated 
        by this subsection shall be used--
                    ``(A) to administer the provisions of law to be 
                funded from appropriations for the Federal-aid highway 
                program and programs authorized under chapter 2;
                    ``(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; and
                    ``(C) to reimburse, as appropriate, the Office of 
                Inspector General of the Department of Transportation 
                for the conduct of annual audits of financial statements 
                in accordance with section 3521 of title 31.
            ``(3) Availability.--The amounts made available under 
        paragraph (1) shall remain available until expended.

[[Page 126 STAT. 428]]

    ``(b) Division of State Apportionments Among Programs.--The 
Secretary shall distribute the amount apportioned to a State for a 
fiscal year under subsection (c) among the national highway performance 
program, the surface transportation program, the highway safety 
improvement program, and the congestion mitigation and air quality 
improvement program, and to carry out section 134 as follows:
            ``(1) National highway performance program.--For the 
        national highway performance program, 63.7 percent of the amount 
        remaining after distributing amounts under paragraphs (4) and 
        (5).
            ``(2) Surface transportation program.--For the surface 
        transportation program, 29.3 percent of the amount remaining 
        after distributing amounts under paragraphs (4) and (5).
            ``(3) Highway safety improvement program.--For the highway 
        safety improvement program, 7 percent of the amount remaining 
        after distributing amounts under paragraphs (4) and (5).
            ``(4) Congestion mitigation and air quality improvement 
        program.--For the congestion mitigation and air quality 
        improvement program, an amount determined by multiplying the 
        amount determined for the State under subsection (c) by the 
        proportion that--
                    ``(A) the amount apportioned to the State for the 
                congestion mitigation and air quality improvement 
                program for fiscal year 2009; bears to
                    ``(B) the total amount of funds apportioned to the 
                State for that fiscal year for the programs referred to 
                in section 105(a)(2) (except for the high priority 
                projects program referred to in section 105(a)(2)(H)), 
                as in effect on the day before the date of enactment of 
                the MAP-21.
            ``(5) Metropolitan planning.--To carry out section 134, an 
        amount determined by multiplying the amount determined for the 
        State under subsection (c) by the proportion that--
                    ``(A) the amount apportioned to the State to carry 
                out section 134 for fiscal year 2009; bears to
                    ``(B) the total amount of funds apportioned to the 
                State for that fiscal year for the programs referred to 
                in section 105(a)(2) (except for the high priority 
                projects program referred to in section 105(a)(2)(H)), 
                as in effect on the day before the date of enactment of 
                the MAP-21.

    ``(c) Calculation of State Amounts.--
            ``(1) For fiscal year 2013.--
                    ``(A) Calculation of amount.--For fiscal year 2013, 
                the amount for each State of combined apportionments for 
                the national highway performance program under section 
                119, the surface transportation program under section 
                133, the highway safety improvement program under 
                section 148, the congestion mitigation and air quality 
                improvement program under section 149, and to carry out 
                section 134 shall be equal to the combined amount of 
                apportionments that the State received for fiscal year 
                2012.
                    ``(B) State apportionment.--On October 1 of such 
                fiscal year, the Secretary shall apportion the sum 
                authorized to be appropriated for expenditure on the 
                national highway performance program under section 119, 
                the surface transportation program under section 133, 
                the highway

[[Page 126 STAT. 429]]

                safety improvement program under section 148, the 
                congestion mitigation and air quality improvement 
                program under section 149, and to carry out section 134 
                in accordance with subparagraph (A).
            ``(2) For fiscal year 2014.--
                    ``(A) State share.--For fiscal year 2014, the amount 
                for each State of combined apportionments for the 
                national highway performance program under section 119, 
                the surface transportation program under section 133, 
                the highway safety improvement program under section 
                148, the congestion mitigation and air quality 
                improvement program under section 149, and to carry out 
                section 134 shall be determined as follows:
                          ``(i) Initial amount.--The initial amount for 
                      each State shall be determined by multiplying the 
                      total amount available for apportionment by the 
                      share for each State which shall be equal to the 
                      proportion that--
                                    ``(I) the amount of apportionments 
                                that the State received for fiscal year 
                                2012; bears to
                                    ``(II) the amount of those 
                                apportionments received by all States 
                                for that fiscal year.
                          ``(ii) Adjustments to amounts.--The initial 
                      amounts resulting from the calculation under 
                      clause (i) shall be adjusted to ensure that, for 
                      each State, the amount of combined apportionments 
                      for the programs shall not be less than 95 percent 
                      of 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.
                    ``(B) State apportionment.--On October 1 of such 
                fiscal year, the Secretary shall apportion the sum 
                authorized to be appropriated for expenditure on the 
                national highway performance program under section 119, 
                the surface transportation program under section 133, 
                the highway safety improvement program under section 
                148, the congestion mitigation and air quality 
                improvement program under section 149, and to carry out 
                section 134 in accordance with subparagraph (A).

    ``(d) Metropolitan Planning.--
            ``(1) Use of amounts.--
                    ``(A) Use.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), the amounts apportioned to a State 
                      under subsection (b)(5) shall be made available by 
                      the State to the metropolitan planning 
                      organizations responsible for carrying out section 
                      134 in the State.
                          ``(ii) States receiving minimum 
                      apportionment.--A State that received the minimum 
                      apportionment for use in carrying out section 134 
                      for fiscal year 2009 may, subject to the approval 
                      of the Secretary, use the funds apportioned under 
                      subsection (b)(5) to fund transportation planning 
                      outside of urbanized areas.

[[Page 126 STAT. 430]]

                    ``(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.
            ``(2) Distribution of amounts within states.--
                    ``(A) In general.--The distribution within any State 
                of the planning funds made available to organizations 
                under paragraph (1) shall be in accordance with a 
                formula that--
                          ``(i) is developed by each State and approved 
                      by the Secretary; and
                          ``(ii) takes into consideration, at a minimum, 
                      population, status of planning, attainment of air 
                      quality standards, metropolitan area 
                      transportation needs, and other factors necessary 
                      to provide for an appropriate distribution of 
                      funds to carry out section 134 and other 
                      applicable requirements of Federal law.
                    ``(B) <<NOTE: Deadline.>> Reimbursement.--Not later 
                than 15 business days after the date of receipt by a 
                State of a request for reimbursement of expenditures 
                made by a metropolitan planning organization for 
                carrying out section 134, the State shall reimburse, 
                from amounts distributed under this paragraph to the 
                metropolitan planning organization by the State, the 
                metropolitan planning organization for those 
                expenditures.
            ``(3) Determination of population figures.--For the purpose 
        of determining population figures under this subsection, the 
        Secretary shall use the latest available data from the decennial 
        census conducted under section 141(a) of title 13, United States 
        Code.

    ``(e) <<NOTE: Deadlines.>> Certification of Apportionments.--
            ``(1) In general.--The Secretary shall--
                    ``(A) on October 1 of each fiscal year, certify to 
                each of the State transportation departments the amount 
                that has been apportioned to the State under this 
                section for the fiscal year; and
                    ``(B) to permit the States to develop adequate plans 
                for the use of amounts apportioned under this section, 
                advise each State of the amount that will be apportioned 
                to the State under this section for a fiscal year not 
                later than 90 days before the beginning of the fiscal 
                year for which the sums to be apportioned are 
                authorized.
            ``(2) Notice to states.--If the Secretary has not made an 
        apportionment under this section for a fiscal year beginning 
        after September 30, 1998, by not later than the date that is the 
        twenty-first day of that fiscal year, the Secretary shall 
        submit, by not later than that date, to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate, a written statement of the reason for not 
        making the apportionment in a timely manner.
            ``(3) Apportionment calculations.--
                    ``(A) In general.--The calculation of official 
                apportionments of funds to the States under this title 
                is a primary responsibility of the Department and shall 
                be carried out only by employees (and not contractors) 
                of the Department.

[[Page 126 STAT. 431]]

                    ``(B) Prohibition on use of funds to hire 
                contractors.--None of the funds made available under 
                this title shall be used to hire contractors to 
                calculate the apportionments of funds to States.

    ``(f) Transfer of Highway and Transit Funds.--
            ``(1) Transfer of highway funds for transit projects.--
                    ``(A) In general.--Subject to subparagraph (B), 
                amounts 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) <<NOTE: Applicability.>> Non-federal share.--
                The provisions of this title relating to the non-Federal 
                share shall apply to the amounts transferred under 
                subparagraph (A).
            ``(2) Transfer of transit funds for highway projects.--
                    ``(A) In general.--Subject to subparagraph (B), 
                amounts 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.
                    ``(B) <<NOTE: Applicability.>> Non-federal share.--
                The provisions of chapter 53 of title 49 relating to the 
                non-Federal share shall apply to amounts transferred 
                under subparagraph (A).
            ``(3) Transfer of funds among states or to federal highway 
        administration.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary may, at the request of a State, transfer 
                amounts apportioned or allocated under this title to the 
                State to another State, or to the Federal Highway 
                Administration, for the purpose of funding 1 or more 
                projects that are eligible for assistance with amounts 
                so apportioned or allocated.
                    ``(B) Apportionment.--The transfer shall have no 
                effect on any apportionment of amounts to a State under 
                this section.
                    ``(C) Funds suballocated to urbanized areas.--
                Amounts that are apportioned or allocated to a State 
                under subsection (b)(3) (as in effect on the day before 
                the date of enactment of the MAP-21) or subsection 
                (b)(2) and attributed to an urbanized area of a State 
                with a population of more than 200,000 individuals under 
                section 133(d) may be transferred under this paragraph 
                only if the metropolitan planning organization 
                designated for the area concurs, in writing, with the 
                transfer request.
            ``(4) Transfer of obligation authority.--Obligation 
        authority for amounts transferred under this subsection shall be 
        transferred in the same manner and amount as the amounts for the 
        projects that are transferred under this section.

    ``(g) <<NOTE: Public information. Web posting.>> Report to 
Congress.--For each fiscal year, the Secretary shall make available to 
the public, in a user-friendly format via the Internet, a report that 
describes--
            ``(1) the amount obligated, by each State, for Federal-aid 
        highways and highway safety construction programs during the 
        preceding fiscal year;
            ``(2) the balance, as of the last day of the preceding 
        fiscal year, of the unobligated apportionment of each State by 
        fiscal year under this section;

[[Page 126 STAT. 432]]

            ``(3) the balance of unobligated sums available for 
        expenditure at the discretion of the Secretary for such highways 
        and programs for the fiscal year; and
            ``(4) the rates of obligation of funds apportioned or set 
        aside under this section, according to--
                    ``(A) program;
                    ``(B) funding category of subcategory;
                    ``(C) type of improvement;
                    ``(D) State; and
                    ``(E) sub-State geographical area, including 
                urbanized and rural areas, on the basis of the 
                population of each such area.''.

    (b) Conforming Amendment.--Section 146(a) of title 23, United States 
Code, is amended by striking ``sections 104(b)(l) and 104(b)(3)'' and 
inserting ``section 104(b)(2)''.
SEC. 1106. NATIONAL HIGHWAY PERFORMANCE PROGRAM.

    (a) In General.--Section 119 of title 23, United States Code, is 
amended to read as follows:
``Sec. 119. National highway performance program

    ``(a) Establishment.--The Secretary shall establish and implement a 
national highway performance program under this section.
    ``(b) Purposes.--The purposes of the national highway performance 
program shall be--
            ``(1) to provide support for the condition and performance 
        of the National Highway System;
            ``(2) to provide support for the construction of new 
        facilities on the National Highway System; and
            ``(3) to ensure that investments of Federal-aid funds in 
        highway construction are directed to support progress toward the 
        achievement of performance targets established in an asset 
        management plan of a State for the National Highway System.

    ``(c) Eligible Facilities.--Except as provided in subsection (d), to 
be eligible for funding apportioned under section 104(b)(1) to carry out 
this section, a facility shall be located on the National Highway 
System, as defined in section 103.
    ``(d) Eligible Projects.--Funds apportioned to a State to carry out 
the national highway performance program may be obligated only for a 
project on an eligible facility that is--
            ``(1)(A) a project or part of a program of projects 
        supporting progress toward the achievement of national 
        performance goals for improving infrastructure condition, 
        safety, mobility, or freight movement on the National Highway 
        System; and
            ``(B) consistent with sections 134 and 135; and
            ``(2) for 1 or more of the following purposes:
                    ``(A) Construction, reconstruction, resurfacing, 
                restoration, rehabilitation, preservation, or 
                operational improvement of segments of the National 
                Highway System.
                    ``(B) Construction, replacement (including 
                replacement with fill material), rehabilitation, 
                preservation, and protection (including scour 
                countermeasures, seismic retrofits, impact protection 
                measures, security countermeasures, and protection 
                against extreme events) of bridges on the National 
                Highway System.

[[Page 126 STAT. 433]]

                    ``(C) Construction, replacement (including 
                replacement with fill material), rehabilitation, 
                preservation, and protection (including impact 
                protection measures, security countermeasures, and 
                protection against extreme events) of tunnels on the 
                National Highway System.
                    ``(D) Inspection and evaluation, as described in 
                section 144, of bridges and tunnels on the National 
                Highway System, and inspection and evaluation of other 
                highway infrastructure assets on the National Highway 
                System, including signs and sign structures, earth 
                retaining walls, and drainage structures.
                    ``(E) Training of bridge and tunnel inspectors, as 
                described in section 144.
                    ``(F) Construction, rehabilitation, or replacement 
                of existing ferry boats and ferry boat facilities, 
                including approaches, that connect road segments of the 
                National Highway System.
                    ``(G) Construction, reconstruction, resurfacing, 
                restoration, rehabilitation, and preservation of, and 
                operational improvements for, a Federal-aid highway not 
                on the National Highway System, and construction of a 
                transit project eligible for assistance under chapter 53 
                of title 49, if--
                          ``(i) the highway project or transit project 
                      is in the same corridor as, and in proximity to, a 
                      fully access-controlled highway designated as a 
                      part of the National Highway System;
                          ``(ii) the construction or improvements will 
                      reduce delays or produce travel time savings on 
                      the fully access-controlled highway described in 
                      clause (i) and improve regional traffic flow; and
                          ``(iii) the construction or improvements are 
                      more cost-effective, as determined by benefit-cost 
                      analysis, than an improvement to the fully access-
                      controlled highway described in clause (i).
                    ``(H) Bicycle transportation and pedestrian walkways 
                in accordance with section 217.
                    ``(I) Highway safety improvements for segments of 
                the National Highway System.
                    ``(J) Capital and operating costs for traffic and 
                traveler information monitoring, management, and control 
                facilities and programs.
                    ``(K) Development and implementation of a State 
                asset management plan for the National Highway System in 
                accordance with this section, including data collection, 
                maintenance, and integration and the cost associated 
                with obtaining, updating, and licensing software and 
                equipment required for risk-based asset management and 
                performance-based management.
                    ``(L) Infrastructure-based intelligent 
                transportation systems capital improvements.
                    ``(M) Environmental restoration and pollution 
                abatement in accordance with section 328.
                    ``(N) Control of noxious weeds and aquatic noxious 
                weeds and establishment of native species in accordance 
                with section 329.

[[Page 126 STAT. 434]]

                    ``(O) Environmental mitigation efforts related to 
                projects funded under this section, as described in 
                subsection (g).
                    ``(P) Construction of publicly owned intracity or 
                intercity bus terminals servicing the National Highway 
                System.

    ``(e) State Performance Management.--
            ``(1) In general.--A State shall develop a risk-based asset 
        management plan for the National Highway System to improve or 
        preserve the condition of the assets and the performance of the 
        system.
            ``(2) Performance driven plan.--A State asset management 
        plan shall include strategies leading to a program of projects 
        that would make progress toward achievement of the State targets 
        for asset condition and performance of the National Highway 
        System in accordance with section 150(d) and supporting the 
        progress toward the achievement of the national goals identified 
        in section 150(b).
            ``(3) Scope.--In developing a risk-based asset management 
        plan, the Secretary shall encourage States to include all 
        infrastructure assets within the right-of-way corridor in such 
        plan.
            ``(4) Plan contents.--A State asset management plan shall, 
        at a minimum, be in a form that the Secretary determines to be 
        appropriate and include--
                    ``(A) a summary listing of the pavement and bridge 
                assets on the National Highway System in the State, 
                including a description of the condition of those 
                assets;
                    ``(B) asset management objectives and measures;
                    ``(C) performance gap identification;
                    ``(D) lifecycle cost and risk management analysis;
                    ``(E) a financial plan; and
                    ``(F) investment strategies.
            ``(5) <<NOTE: Determination.>> Requirement for plan.--
        Notwithstanding section 120, with respect to the second fiscal 
        year beginning after the date of establishment of the process 
        established in paragraph (8) or any subsequent fiscal year, if 
        the Secretary determines that a State has not developed and 
        implemented a State asset management plan consistent with this 
        section, the Federal share payable on account of any project or 
        activity carried out by the State in that fiscal year under this 
        section shall be 65 percent.
            ``(6) <<NOTE: Deadlines. Reviews.>> Certification of plan 
        development process.--
                    ``(A) In general.--Not later than 90 days after the 
                date on which a State submits a request for approval of 
                the process used by the State to develop the State asset 
                management plan for the National Highway System, the 
                Secretary shall--
                          ``(i) review the process; and
                          ``(ii)(I) certify that the process meets the 
                      requirements established by the Secretary; or
                          ``(II) deny certification and specify actions 
                      necessary for the State to take to correct 
                      deficiencies in the State process.
                    ``(B) Recertification.--Not less frequently than 
                once every 4 years, the Secretary shall review and 
                recertify that the process used by a State to develop 
                and maintain the State asset management plan for the 
                National Highway

[[Page 126 STAT. 435]]

                System meets the requirements for the process, as 
                established by the Secretary.
                    ``(C) Opportunity to cure.--If the Secretary denies 
                certification under subparagraph (A), the Secretary 
                shall provide the State with--
                          ``(i) not less than 90 days to cure the 
                      deficiencies of the plan, during which time period 
                      all penalties and other legal impacts of a denial 
                      of certification shall be stayed; and
                          ``(ii) <<NOTE: Statement.>> a written 
                      statement of the specific actions the Secretary 
                      determines to be necessary for the State to cure 
                      the plan.
            ``(7) <<NOTE: Reports.>> Performance achievement.--A State 
        that does not achieve or make significant progress toward 
        achieving the targets of the State for performance measures 
        described in section 150(d) for the National Highway System for 
        2 consecutive reports submitted under this paragraph shall 
        include in the next report submitted a description of the 
        actions the State will undertake to achieve the targets.
            ``(8) <<NOTE: Deadline. Regulations.>> Process.--Not later 
        than 18 months after the date of enactment of the MAP-21, the 
        Secretary shall, by regulation and in consultation with State 
        departments of transportation, establish the process to develop 
        the State asset management plan described in paragraph (1).

    ``(f) Interstate System and NHS Bridge Conditions.--
            ``(1) Condition of interstate system.--
                    ``(A) Penalty.--If, during 2 consecutive reporting 
                periods, the condition of the Interstate System, 
                excluding bridges on the Interstate System, in a State 
                falls below the minimum condition level established by 
                the Secretary under section 150(c)(3), the State shall 
                be required, during the following fiscal year--
                          ``(i) to obligate, from the amounts 
                      apportioned to the State under section 104(b)(1), 
                      an amount that is not less than the amount of 
                      funds apportioned to the State for fiscal year 
                      2009 under the Interstate maintenance program for 
                      the purposes described in this section (as in 
                      effect on the day before the date of enactment of 
                      the MAP-21), except that for each year after 
                      fiscal year 2013, the amount required to be 
                      obligated under this clause shall be increased by 
                      2 percent over the amount required to be obligated 
                      in the previous fiscal year; and
                          ``(ii) to transfer, from the amounts 
                      apportioned to the State under section 104(b)(2) 
                      (other than amounts suballocated to metropolitan 
                      areas and other areas of the State under section 
                      133(d)) to the apportionment of the State under 
                      section 104(b)(1), an amount equal to 10 percent 
                      of the amount of funds apportioned to the State 
                      for fiscal year 2009 under the Interstate 
                      maintenance program for the purposes described in 
                      this section (as in effect on the day before the 
                      date of enactment of the MAP-21).
                    ``(B) Restoration.--The obligation requirement for 
                the Interstate System in a State required by 
                subparagraph (A) for a fiscal year shall remain in 
                effect for each subsequent fiscal year until such time 
                as the condition of the

[[Page 126 STAT. 436]]

                Interstate System in the State exceeds the minimum 
                condition level established by the Secretary.
            ``(2) Condition of nhs bridges.--
                    ``(A) <<NOTE: Determination. Time 
                period.>> Penalty.--If the Secretary determines that, 
                for the 3-year-period preceding the date of the 
                determination, more than 10 percent of the total deck 
                area of bridges in the State on the National Highway 
                System is located on bridges that have been classified 
                as structurally deficient, an amount equal to 50 percent 
                of funds apportioned to such State for fiscal year 2009 
                to carry out section 144 (as in effect the day before 
                enactment of MAP-21) shall be set aside from amounts 
                apportioned to a State for a fiscal year under section 
                104(b)(1) only for eligible projects on bridges on the 
                National Highway System.
                    ``(B) Restoration.--The set-aside requirement for 
                bridges on the National Highway System in a State under 
                subparagraph (A) for a fiscal year shall remain in 
                effect for each subsequent fiscal year until such time 
                as less than 10 percent of the total deck area of 
                bridges in the State on the National Highway System is 
                located on bridges that have been classified as 
                structurally deficient, as determined by the Secretary.

    ``(g) Environmental Mitigation.--
            ``(1) Eligible activities.--In accordance with all 
        applicable Federal law (including regulations), environmental 
        mitigation efforts referred to in subsection (d)(2)(O) include 
        participation in natural habitat and wetlands mitigation efforts 
        relating to projects funded under this title, which may 
        include--
                    ``(A) participation in mitigation banking or other 
                third-party mitigation arrangements, such as--
                          ``(i) the purchase of credits from commercial 
                      mitigation banks;
                          ``(ii) the establishment and management of 
                      agency-sponsored mitigation banks; and
                          ``(iii) the purchase of credits or 
                      establishment of in-lieu fee mitigation programs;
                    ``(B) contributions to statewide and regional 
                efforts to conserve, restore, enhance, and create 
                natural habitats and wetlands; and
                    ``(C) the development of statewide and regional 
                environmental protection plans, including natural 
                habitat and wetland conservation and restoration plans.
            ``(2) Inclusion of other activities.--The banks, efforts, 
        and plans described in paragraph (1) include any such banks, 
        efforts, and plans developed in accordance with applicable law 
        (including regulations).
            ``(3) <<NOTE: Applicability.>> Terms and conditions.--The 
        following terms and conditions apply to natural habitat and 
        wetlands mitigation efforts under this subsection:
                    ``(A) Contributions to the mitigation effort may--
                          ``(i) take place concurrent with, or in 
                      advance of, commitment of funding under this title 
                      to a project or projects; and
                          ``(ii) occur in advance of project 
                      construction only if the efforts are consistent 
                      with all applicable requirements of Federal law 
                      (including regulations) and State transportation 
                      planning processes.

[[Page 126 STAT. 437]]

                    ``(B) Credits from any agency-sponsored mitigation 
                bank that are attributable to funding under this section 
                may be used only for projects funded under this title, 
                unless the agency pays to the Secretary an amount equal 
                to the Federal funds attributable to the mitigation bank 
                credits the agency uses for purposes other than 
                mitigation of a project funded under this title.
            ``(4) Preference.--At the discretion of the project sponsor, 
        preference shall be given, to the maximum extent practicable, to 
        mitigating an environmental impact through the use of a 
        mitigation bank, in-lieu fee, or other third-party mitigation 
        arrangement, if the use of credits from the mitigation bank or 
        in-lieu fee, or the other third-party mitigation arrangement for 
        the project, is approved by the applicable Federal agency.''.

    (b) <<NOTE: 23 USC 119 note.>> Transition Period.--
            (1) <<NOTE: Deadline.>> In general.--Except as provided in 
        paragraph (2), until such date as a State has in effect an 
        approved asset management plan and has established performance 
        targets as described in sections 119 and 150 of title 23, United 
        States Code, that will contribute to achieving the national 
        goals for the condition and performance of the National Highway 
        System, but not later than 18 months after the date on which the 
        Secretary promulgates the final regulation required under 
        section 150(c) of that title, the Secretary shall approve 
        obligations of funds apportioned to a State to carry out the 
        national highway performance program under section 119 of that 
        title, for projects that otherwise meet the requirements of that 
        section.
            (2) Extension.--The Secretary may extend the transition 
        period for a State under paragraph (1) if the Secretary 
        determines that the State has made a good faith effort to 
        establish an asset management plan and performance targets 
        referred to in that paragraph.

    (c) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
119 and inserting the following:

``119. National highway performance program.''.

SEC. 1107. EMERGENCY RELIEF.

    Section 125 of title 23, United States Code, is amended to read as 
follows:
``Sec. 125. Emergency relief

    ``(a) In General.--Subject to this section and section 120, an 
emergency fund is authorized for expenditure by the Secretary for the 
repair or reconstruction of highways, roads, and trails, in any area of 
the United States, including Indian reservations, that the Secretary 
finds have suffered serious damage as a result of--
            ``(1) a natural disaster over a wide area, such as by a 
        flood, hurricane, tidal wave, earthquake, severe storm, or 
        landslide; or
            ``(2) catastrophic failure from any external cause.

    ``(b) Restriction on Eligibility.--
            ``(1) Definition of construction phase.--In this subsection, 
        the term `construction phase' means the phase of physical 
        construction of a highway or bridge facility that is separate 
        from any other identified phases, such as planning, design,

[[Page 126 STAT. 438]]

        or right-of-way phases, in the State transportation improvement 
        program.
            ``(2) Restriction.--In no case shall funds be used under 
        this section for the repair or reconstruction of a bridge--
                    ``(A) that has been permanently closed to all 
                vehicular traffic by the State or responsible local 
                official because of imminent danger of collapse due to a 
                structural deficiency or physical deterioration; or
                    ``(B) if a construction phase of a replacement 
                structure is included in the approved Statewide 
                transportation improvement program at the time of an 
                event described in subsection (a).

    ``(c) Funding.--
            ``(1) In general.--Subject to the limitations described in 
        paragraph (2), there are authorized to be appropriated from the 
        Highway Trust Fund (other than the Mass Transit Account) such 
        sums as are necessary to establish the fund authorized by this 
        section and to replenish that fund on an annual basis.
            ``(2) Limitations.--The limitations referred to in paragraph 
        (1) are that--
                    ``(A) not more than $100,000,000 is authorized to be 
                obligated in any 1 fiscal year commencing after 
                September 30, 1980, to carry out this section, except 
                that, if for any fiscal year the total of all 
                obligations under this section is less than the amount 
                authorized to be obligated for the fiscal year, the 
                unobligated balance of that amount shall--
                          ``(i) remain available until expended; and
                          ``(ii) be in addition to amounts otherwise 
                      available to carry out this section for each year; 
                      and
                    ``(B)(i) pending such appropriation or 
                replenishment, the Secretary may obligate from any funds 
                appropriated at any time for obligation in accordance 
                with this title, including existing Federal-aid 
                appropriations, such sums as are necessary for the 
                immediate prosecution of the work herein authorized; and
                    ``(ii) funds obligated under this subparagraph shall 
                be reimbursed from the appropriation or replenishment.

    ``(d) Eligibility.--
            ``(1) In general.--The Secretary may expend funds from the 
        emergency fund authorized by this section only for the repair or 
        reconstruction of highways on Federal-aid highways in accordance 
        with this chapter, except that--
                    ``(A) no funds shall be so expended unless an 
                emergency has been declared by the Governor of the State 
                with concurrence by the Secretary, unless the President 
                has declared the emergency to be a major disaster for 
                the purposes of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
                for which concurrence of the Secretary is not required; 
                and
                    ``(B) <<NOTE: Deadline.>> the Secretary has received 
                an application from the State transportation department 
                that includes a comprehensive list of all eligible 
                project sites and repair costs by not later than 2 years 
                after the natural disaster or catastrophic failure.
            ``(2) Cost limitation.--

[[Page 126 STAT. 439]]

                    ``(A) Definition of comparable facility.--In this 
                paragraph, the term `comparable facility' means a 
                facility that meets the current geometric and 
                construction standards required for the types and volume 
                of traffic that the facility will carry over its design 
                life.
                    ``(B) Limitation.--The total cost of a project 
                funded under this section may not exceed the cost of 
                repair or reconstruction of a comparable facility.
            ``(3) Debris removal.--The costs of debris removal shall be 
        an eligible expense under this section only for--
                    ``(A) an event not declared a major disaster or 
                emergency by the President under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act (42 U.S.C. 
                5121 et seq.); or
                    ``(B) an event declared a major disaster or 
                emergency by the President under that Act if the debris 
                removal is not eligible for assistance under section 
                403, 407, or 502 of that Act (42 U.S.C. 5170b, 5173, 
                5192).
            ``(4) Territories.--The total obligations for projects under 
        this section for any fiscal year in the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of the Northern Mariana 
        Islands shall not exceed $20,000,000.
            ``(5) Substitute traffic.--Notwithstanding any other 
        provision of this section, actual and necessary costs of 
        maintenance and operation of ferryboats or additional transit 
        service providing temporary substitute highway traffic service, 
        less the amount of fares charged for comparable service, may be 
        expended from the emergency fund authorized by this section for 
        Federal-aid highways.

    ``(e) Tribal Transportation Facilities, Federal Lands Transportation 
Facilities, and Public Roads on Federal Lands.--
            ``(1) Definition of open to public travel.--In this 
        subsection, the term `open to public travel' means, with respect 
        to a road, that, except during scheduled periods, extreme 
        weather conditions, or emergencies, the road is open to the 
        general public for use with a standard passenger vehicle, 
        without restrictive gates or prohibitive signs or regulations, 
        other than for general traffic control or restrictions based on 
        size, weight, or class of registration.
            ``(2) Expenditure of funds.--Notwithstanding subsection 
        (d)(1), the Secretary may expend funds from the emergency fund 
        authorized by this section, independently or in cooperation with 
        any other branch of the Federal Government, a State agency, a 
        tribal government, an organization, or a person, for the repair 
        or reconstruction of tribal transportation facilities, Federal 
        lands transportation facilities, and other federally owned roads 
        that are open to public travel, whether or not those facilities 
        are Federal-aid highways.
            ``(3) Reimbursement.--
                    ``(A) In general.--The Secretary may reimburse 
                Federal and State agencies (including political 
                subdivisions) for expenditures made for projects 
                determined eligible under this section, including 
                expenditures for emergency repairs made before a 
                determination of eligibility.
                    ``(B) Transfers.--With respect to reimbursements 
                described in subparagraph (A)--

[[Page 126 STAT. 440]]

                          ``(i) those reimbursements to Federal agencies 
                      and Indian tribal governments shall be transferred 
                      to the account from which the expenditure was 
                      made, or to a similar account that remains 
                      available for obligation; and
                          ``(ii) the budget authority associated with 
                      the expenditure shall be restored to the agency 
                      from which the authority was derived and shall be 
                      available for obligation until the end of the 
                      fiscal year following the year in which the 
                      transfer occurs.

    ``(f) Treatment of Territories.--For purposes of this section, the 
Virgin Islands, Guam, American Samoa, and the Commonwealth of the 
Northern Mariana Islands shall be considered to be States and parts of 
the United States, and the chief executive officer of each such 
territory shall be considered to be a Governor of a State.
    ``(g) Protecting Public Safety and Maintaining Roadways.--The 
Secretary may use not more than 5 percent of amounts from the emergency 
fund authorized by this section to carry out projects that the Secretary 
determines are necessary to protect the public safety or to maintain or 
protect roadways that are included within the scope of an emergency 
declaration by the Governor of the State or by the President, in 
accordance with this section, and the Governor deems to be an ongoing 
concern in order to maintain vehicular traffic on the roadway.''.
SEC. 1108. SURFACE TRANSPORTATION PROGRAM.

    (a) Eligible Projects.--Section 133(b) of title 23, United States 
Code, is amended--
            (1) in the matter preceding paragraph (1) by striking 
        ``section 104(b)(3)'' and inserting ``section 104(b)(2)'';
            (2) by striking paragraph (1);
            (3) by redesignating paragraphs (2) through (15) as 
        paragraphs (5) through (18), respectively;
            (4) by inserting before paragraph (5) (as so redesignated) 
        the following:
            ``(1) Construction, reconstruction, rehabilitation, 
        resurfacing, restoration, preservation, or operational 
        improvements for highways, including construction of designated 
        routes of the Appalachian development highway system and local 
        access roads under section 14501 of title 40.
            ``(2) Replacement (including replacement with fill 
        material), rehabilitation, preservation, protection (including 
        painting, scour countermeasures, seismic retrofits, impact 
        protection measures, security countermeasures, and protection 
        against extreme events) and application of calcium magnesium 
        acetate, sodium acetate/formate, or other environmentally 
        acceptable, minimally corrosive anti-icing and deicing 
        compositions for bridges (and approaches to bridges and other 
        elevated structures) and tunnels on public roads of all 
        functional classifications, including any such construction or 
        reconstruction necessary to accommodate other transportation 
        modes.
            ``(3) Construction of a new bridge or tunnel at a new 
        location on a Federal-aid highway.
            ``(4) Inspection and evaluation of bridges and tunnels and 
        training of bridge and tunnel inspectors (as defined in section

[[Page 126 STAT. 441]]

        144), and inspection and evaluation of other highway assets 
        (including signs, retaining walls, and drainage structures).'';
            (5) by striking paragraph (6) (as so redesignated) and 
        inserting the following:
            ``(6) Carpool projects, fringe and corridor parking 
        facilities and programs, including electric vehicle and natural 
        gas vehicle infrastructure in accordance with section 137, 
        bicycle transportation and pedestrian walkways in accordance 
        with section 217, and the modifications of public sidewalks to 
        comply with the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.).'';
            (6) by striking paragraph (7) (as so redesignated) and 
        inserting the following:
            ``(7) Highway and transit safety infrastructure improvements 
        and programs, installation of safety barriers and nets on 
        bridges, hazard eliminations, projects to mitigate hazards 
        caused by wildlife, and railway-highway grade crossings.'';
            (7) in paragraph (11) (as so redesignated) by striking 
        ``enhancement activities'' and inserting ``alternatives'';
            (8) by striking paragraph (14) (as so redesignated) and 
        inserting the following:
            ``(14) Environmental mitigation efforts relating to projects 
        funded under this title in the same manner and to the same 
        extent as such activities are eligible under section 119(g).''; 
        and
            (9) by inserting after paragraph (18) (as so redesignated) 
        the following:
            ``(19) Projects and strategies designed to support 
        congestion pricing, including electric toll collection and 
        travel demand management strategies and programs.
            ``(20) Recreational trails projects eligible for funding 
        under section 206.
            ``(21) Construction of ferry boats and ferry terminal 
        facilities eligible for funding under section 129(c).
            ``(22) Border infrastructure projects eligible for funding 
        under section 1303 of the SAFETEA-LU (23 U.S.C. 101 note; Public 
        Law 109-59).
            ``(23) Truck parking facilities eligible for funding under 
        section 1401 of the MAP-21.
            ``(24) Development and implementation of a State asset 
        management plan for the National Highway System in accordance 
        with section 119, including data collection, maintenance, and 
        integration and the costs associated with obtaining, updating, 
        and licensing software and equipment required for risk based 
        asset management and performance based management, and for 
        similar activities related to the development and implementation 
        of a performance based management program for other public 
        roads.
            ``(25) A project that, 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.
            ``(26) Construction and operational improvements for any 
        minor collector if--
                    ``(A) the minor collector, and the project to be 
                carried out with respect to the minor collector, are in 
                the same

[[Page 126 STAT. 442]]

                corridor as, and in proximity to, a Federal-aid highway 
                designated as part of the National Highway System;
                    ``(B) the construction or improvements will enhance 
                the level of service on the Federal-aid highway 
                described in subparagraph (A) and improve regional 
                traffic flow; and
                    ``(C) the construction or improvements are more 
                cost-effective, as determined by a benefit-cost 
                analysis, than an improvement to the Federal-aid highway 
                described in subparagraph (A).''.

    (b) Location of Projects.--Section 133 of title 23, United States 
Code, is amended by striking subsection (c) and inserting the following:
    ``(c) Location of Projects.--Surface transportation program projects 
may not be undertaken on roads functionally classified as local or rural 
minor collectors unless the roads were on a Federal-aid highway system 
on January 1, 1991, except--
            ``(1) as provided in subsection (g);
            ``(2) for projects described in paragraphs (2), (4), (6), 
        (7), (11), (20), (25), and (26) of subsection (b); and
            ``(3) as approved by the Secretary.''.

    (c) Allocation of Apportioned Funds.--Section 133 of the title 23, 
United States Code, is amended by striking subsection (d) and inserting 
the following:
    ``(d) Allocations of Apportioned Funds to Areas Based on 
Population.--
            ``(1) Calculation.--Of the funds apportioned to a State 
        under section 104(b)(2)--
                    ``(A) 50 percent for a fiscal year shall be 
                obligated under this section, in proportion to their 
                relative shares of the population of the State--
                          ``(i) in urbanized areas of the State with an 
                      urbanized area population of over 200,000;
                          ``(ii) in areas of the State other than urban 
                      areas with a population greater than 5,000; and
                          ``(iii) in other areas of the State; and
                    ``(B) 50 percent may be obligated in any area of the 
                State.
            ``(2) Metropolitan areas.--Funds attributed to an urbanized 
        area under paragraph (1)(A)(i) may be obligated in the 
        metropolitan area established under section 134 that encompasses 
        the urbanized area.
            ``(3) Consultation with regional transportation planning 
        organizations.--For purposes of paragraph (1)(A)(ii), before 
        obligating funding attributed to an area with a population 
        greater than 5,000 and less than 200,000, a State shall consult 
        with the regional transportation planning organizations that 
        represent the area, if any.
            ``(4) Distribution among urbanized areas of over 200,000 
        population.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the amount of funds that a State is 
                required to obligate under paragraph (1)(A)(i) shall be 
                obligated in urbanized areas described in paragraph 
                (1)(A)(i) based on the relative population of the areas.
                    ``(B) Other factors.--The State may obligate the 
                funds described in subparagraph (A) based on other 
                factors if the State and the relevant metropolitan 
                planning

[[Page 126 STAT. 443]]

                organizations jointly apply to the Secretary for the 
                permission to base the obligation on other factors and 
                the Secretary grants the request.
            ``(5) Applicability of planning requirements.--Programming 
        and expenditure of funds for projects under this section shall 
        be consistent with sections 134 and 135.''.

    (d) Administration.--Section 133 of title 23, United States Code, is 
amended by striking subsection (e) and inserting the following:
    ``(e) Administration.--
            ``(1) Submission of project agreement.--For each fiscal 
        year, each State shall submit a project agreement that--
                    ``(A) <<NOTE: Certification.>> certifies that the 
                State will meet all the requirements of this section; 
                and
                    ``(B) <<NOTE: Notification.>> notifies the Secretary 
                of the amount of obligations needed to carry out the 
                program under this section.
            ``(2) Request for adjustments of amounts.--Each State shall 
        request from the Secretary such adjustments to the amount of 
        obligations referred to in paragraph (1)(B) as the State 
        determines to be necessary.
            ``(3) Effect of approval by the secretary.--Approval by the 
        Secretary of a project agreement under paragraph (1) shall be 
        deemed a contractual obligation of the United States to pay 
        surface transportation program funds made available under this 
        title.''.

    (e) Obligation Authority.--Section 133(f)(1) of title 23, United 
States Code, is amended by striking ``2004 through 2006 and the period 
of fiscal years 2007 through 2009'' and inserting ``2011 through 2014''.
    (f) Bridges Not on Federal-aid Highways.--Section 133 of the title 
23, United States Code, is amended by adding at the end the following:
    ``(g) Bridges Not on Federal-aid Highways.--
            ``(1) Definition of off-system bridge.--In this subsection, 
        the term `off-system bridge' means a highway bridge located on a 
        public road, other than a bridge on a Federal-aid highway.
            ``(2) Special rule.--
                    ``(A) Set-aside.--Of the amounts apportioned to a 
                State for fiscal year 2013 and each fiscal year 
                thereafter under this section, the State shall obligate 
                for activities described in subsection (b)(2) for off-
                system bridges an amount that is not less than 15 
                percent of the amount of funds apportioned to the State 
                for the highway bridge program for fiscal year 2009, 
                except that amounts allocated under subsection (d) shall 
                not be obligated to carry out this subsection.
                    ``(B) Reduction of expenditures.--The Secretary, 
                after consultation with State and local officials, may 
                reduce the requirement for expenditures for off-system 
                bridges under subparagraph (A) with respect to the State 
                if the Secretary determines that the State has 
                inadequate needs to justify the expenditure.
            ``(3) Credit for bridges not on federal-aid highways.--
        Notwithstanding any other provision of law, with respect to any 
        project not on a Federal-aid highway for the replacement of a 
        bridge or rehabilitation of a bridge that is wholly funded from 
        State and local sources, is eligible for Federal funds under

[[Page 126 STAT. 444]]

        this section, is noncontroversial, is certified by the State to 
        have been carried out in accordance with all standards 
        applicable to such projects under this section, and is 
        determined by the Secretary upon completion to be no longer a 
        deficient bridge--
                    ``(A) any amount expended after the date of 
                enactment of this subsection from State and local 
                sources for the project in excess of 20 percent of the 
                cost of construction of the project may be credited to 
                the non-Federal share of the cost of other bridge 
                projects in the State that are eligible for Federal 
                funds under this section; and
                    ``(B) that crediting shall be conducted in 
                accordance with procedures established by the Secretary.

    ``(h) Special Rule for Areas of Less Than 5,000 Population.--
            ``(1) Special rule.--Notwithstanding subsection (c), and 
        except as provided in paragraph (2), up to 15 percent of the 
        amounts required to be obligated by a State under subsection 
        (d)(1)(A)(iii) for each of fiscal years 2013 through 2014 may be 
        obligated on roads functionally classified as minor collectors.
            ``(2) Suspension.--The Secretary may suspend the application 
        of paragraph (1) with respect to a State if the Secretary 
        determines that the authority provided under paragraph (1) is 
        being used excessively by the State.''.
SEC. 1109. WORKFORCE DEVELOPMENT.

    (a) On-the-job Training.--Section 140(b) of title 23, United States 
Code, is amended--
            (1) in the second sentence, by striking ``Whenever 
        apportionments are made under section 104(b)(3) of this title,'' 
        and inserting ``From administrative funds made available under 
        section 104(a),''; and
            (2) in the fourth sentence, by striking ``and the bridge 
        program under section 144''.

    (b) Disadvantaged Business Enterprise.--Section 140(c) of title 23, 
United States Code, is amended in the second sentence by striking 
``Whenever apportionments are made under section 104(b)(3),'' and 
inserting ``From administrative funds made available under section 
104(a),''.
SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.

    Section 143 of title 23, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Funding.--
                    ``(A) In general.--From administrative funds made 
                available under section 104(a), the Secretary shall 
                deduct such sums as are necessary, not to exceed 
                $10,000,000 for each of fiscal years 2013 and 2014, to 
                carry out this section.
                    ``(B) Allocation of funds.--Funds made available to 
                carry out this section may be allocated to the Internal 
                Revenue Service and the States at the discretion of the 
                Secretary, except that of funds so made available for 
                each fiscal year, $2,000,000 shall be available only to 
                carry out intergovernmental enforcement efforts, 
                including research and training.''; and

[[Page 126 STAT. 445]]

                    (B) in paragraph (8) by striking ``section 
                104(b)(3)'' and inserting ``section 104(b)(2)''; and
            (2) in subsection (c)(3) by striking ``for each of fiscal 
        years 2005 through 2009,'' and inserting ``for each fiscal 
        year,''.
SEC. 1111. NATIONAL BRIDGE AND TUNNEL INVENTORY AND INSPECTION 
                          STANDARDS.

    (a) In General.--Section 144 of title 23, United States Code, is 
amended to read as follows:
``Sec. 144. National bridge and tunnel inventory and inspection 
                standards

    ``(a) Findings and Declarations.--
            ``(1) Findings.--Congress finds that--
                    ``(A) the condition of the bridges of the United 
                States has improved since the date of enactment of the 
                Transportation Equity Act for the 21st Century (Public 
                Law 105-178; 112 Stat. 107), yet continued improvement 
                to bridge conditions is essential to protect the safety 
                of the traveling public and allow for the efficient 
                movement of people and goods on which the economy of the 
                United States relies; and
                    ``(B) the systematic preventative maintenance of 
                bridges, and replacement and rehabilitation of deficient 
                bridges, should be undertaken through an overall asset 
                management approach to transportation investment.
            ``(2) Declarations.--Congress declares that it is in the 
        vital interest of the United States--
                    ``(A) to inventory, inspect, and improve the 
                condition of the highway bridges and tunnels of the 
                United States;
                    ``(B) to use a data-driven, risk-based approach and 
                cost-effective strategy for systematic preventative 
                maintenance, replacement, and rehabilitation of highway 
                bridges and tunnels to ensure safety and extended 
                service life;
                    ``(C) to use performance-based bridge management 
                systems to assist States in making timely investments;
                    ``(D) to ensure accountability and link performance 
                outcomes to investment decisions; and
                    ``(E) to ensure connectivity and access for 
                residents of rural areas of the United States through 
                strategic investments in National Highway System bridges 
                and bridges on all public roads.

    ``(b) National Bridge and Tunnel Inventories.--The Secretary, in 
consultation with the States and Federal agencies with jurisdiction over 
highway bridges and tunnels, shall--
            ``(1) inventory all highway bridges on public roads, on and 
        off Federal-aid highways, including tribally owned and Federally 
        owned bridges, that are bridges over waterways, other 
        topographical barriers, other highways, and railroads;
            ``(2) inventory all tunnels on public roads, on and off 
        Federal-aid highways, including tribally owned and Federally 
        owned tunnels;
            ``(3) classify the bridges according to serviceability, 
        safety, and essentiality for public use, including the potential 
        impacts to emergency evacuation routes and to regional and 
        national freight and passenger mobility if the serviceability of 
        the bridge is restricted or diminished;

[[Page 126 STAT. 446]]

            ``(4) based on that classification, assign each a risk-based 
        priority for systematic preventative maintenance, replacement, 
        or rehabilitation; and
            ``(5) determine the cost of replacing each structurally 
        deficient bridge identified under this subsection with a 
        comparable facility or the cost of rehabilitating the bridge.

    ``(c) General Bridge Authority.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of law, the General Bridge 
        Act of 1946 (33 U.S.C. 525 et seq.) shall apply to bridges 
        authorized to be replaced, in whole or in part, by this title.
            ``(2) Exception.--Section 502(b) of the General Bridge Act 
        of 1946 (33 U.S.C. 525(b)) and section 9 of the Act of March 3, 
        1899 (33 U.S.C. 401), shall not apply to any bridge constructed, 
        reconstructed, rehabilitated, or replaced with assistance under 
        this title, if the bridge is over waters that--
                    ``(A) are not used and are not susceptible to use in 
                the natural condition of the bridge or by reasonable 
                improvement as a means to transport interstate or 
                foreign commerce; and
                    ``(B) are--
                          ``(i) not tidal; or
                          ``(ii) if tidal, used only by recreational 
                      boating, fishing, and other small vessels that are 
                      less than 21 feet in length.

    ``(d) Inventory Updates and Reports.--
            ``(1) In general.--The Secretary shall--
                    ``(A) annually revise the inventories authorized by 
                subsection (b); and
                    ``(B) 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 inventories.
            ``(2) Inspection report.--Not later than 2 years after the 
        date of enactment of the MAP-21, each State and appropriate 
        Federal agency shall report element level data to the Secretary, 
        as each bridge is inspected pursuant to this section, for all 
        highway bridges on the National Highway System.
            ``(3) Guidance.--The Secretary shall provide guidance to 
        States and Federal agencies for implementation of this 
        subsection, while respecting the existing inspection schedule of 
        each State.
            ``(4) Bridges not on national highway system.--The Secretary 
        shall--
                    ``(A) <<NOTE: Study.>> conduct a study on the 
                benefits, cost-effectiveness, and feasibility of 
                requiring element-level data collection for bridges not 
                on the National Highway System; and
                    ``(B) 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.

    ``(e) Bridges Without Taxing Powers.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any bridge that is owned and operated by an agency that 
        does not have taxing powers and whose functions include 
        operating a federally assisted public transit system subsidized 
        by toll revenues shall be eligible for assistance under this

[[Page 126 STAT. 447]]

        title, but the amount of such assistance shall in no event 
        exceed the cumulative amount which such agency has expended for 
        capital and operating costs to subsidize such transit system.
            ``(2) Insufficient assets.--Before authorizing an 
        expenditure of funds under this subsection, the Secretary shall 
        determine that the applicant agency has insufficient reserves, 
        surpluses, and projected revenues (over and above those required 
        for bridge and transit capital and operating costs) to fund the 
        bridge project or activity eligible for assistance under this 
        title.
            ``(3) Crediting of non-federal funds.--Any non-Federal funds 
        expended for the seismic retrofit of the bridge may be credited 
        toward the non-Federal share required as a condition of receipt 
        of any Federal funds for seismic retrofit of the bridge made 
        available after the date of the expenditure.

    ``(f) Replacement of Destroyed Bridges and Ferry Boat Service.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a State may use the funds apportioned under section 
        104(b)(2) to construct any bridge that replaces--
                    ``(A) any low water crossing (regardless of the 
                length of the low water crossing);
                    ``(B) any bridge that was destroyed prior to January 
                1, 1965;
                    ``(C) any ferry that was in existence on January 1, 
                1984; or
                    ``(D) any road bridge that is rendered obsolete as a 
                result of a Corps of Engineers flood control or 
                channelization project and is not rebuilt with funds 
                from the Corps of Engineers.
            ``(2) Federal share.--The Federal share payable on any 
        bridge construction carried out under paragraph (1) shall be 80 
        percent of the cost of the construction.

    ``(g) Historic Bridges.--
            ``(1) Definition of historic bridge.--In this subsection, 
        the term `historic bridge' means any bridge that is listed on, 
        or eligible for listing on, the National Register of Historic 
        Places.
            ``(2) Coordination.--The Secretary shall, in cooperation 
        with the States, encourage the retention, rehabilitation, 
        adaptive reuse, and future study of historic bridges.
            ``(3) State inventory.--The Secretary shall require each 
        State to complete an inventory of all bridges on and off 
        Federal-aid highways to determine the historic significance of 
        the bridges.
            ``(4) Eligibility.--
                    ``(A) In general.--Subject to subparagraph (B), 
                reasonable costs associated with actions to preserve, or 
                reduce the impact of a project under this chapter on, 
                the historic integrity of a historic bridge shall be 
                eligible as reimbursable project costs under section 133 
                if the load capacity and safety features of the historic 
                bridge are adequate to serve the intended use for the 
                life of the historic bridge.
                    ``(B) Bridges not used for vehicle traffic.--In the 
                case of a historic bridge that is no longer used for 
                motorized vehicular traffic, the costs eligible as 
                reimbursable project

[[Page 126 STAT. 448]]

                costs pursuant to this chapter shall not exceed the 
                estimated cost of demolition of the historic bridge.
            ``(5) Preservation.--Any State that proposes to demolish a 
        historic bridge for a replacement project with funds made 
        available to carry out this section shall first make the 
        historic bridge available for donation to a State, locality, or 
        responsible private entity if the State, locality, or 
        responsible entity enters into an agreement--
                    ``(A) to maintain the bridge and the features that 
                give the historic bridge its historic significance; and
                    ``(B) to assume all future legal and financial 
                responsibility for the historic bridge, which may 
                include an agreement to hold the State transportation 
                department harmless in any liability action.
            ``(6) Costs incurred.--
                    ``(A) In general.--Costs incurred by the State to 
                preserve a historic bridge (including funds made 
                available to the State, locality, or private entity to 
                enable it to accept the bridge) shall be eligible as 
                reimbursable project costs under this chapter in an 
                amount not to exceed the cost of demolition.
                    ``(B) Additional funding.--Any bridge preserved 
                pursuant to this paragraph shall not be eligible for any 
                other funds authorized pursuant to this title.

    ``(h) National Bridge and Tunnel Inspection Standards.--
            ``(1) Requirement.--
                    ``(A) In general.--The Secretary shall establish and 
                maintain inspection standards for the proper inspection 
                and evaluation of all highway bridges and tunnels for 
                safety and serviceability.
                    ``(B) Uniformity.--The standards under this 
                subsection shall be designed to ensure uniformity of the 
                inspections and evaluations.
            ``(2) Minimum requirements of inspection standards.--The 
        standards established under paragraph (1) shall, at a minimum--
                    ``(A) specify, in detail, the method by which the 
                inspections shall be carried out by the States, Federal 
                agencies, and tribal governments;
                    ``(B) establish the maximum time period between 
                inspections;
                    ``(C) establish the qualifications for those charged 
                with carrying out the inspections;
                    ``(D) require each State, Federal agency, and tribal 
                government to maintain and make available to the 
                Secretary on request--
                          ``(i) <<NOTE: Reports.>> written reports on 
                      the results of highway bridge and tunnel 
                      inspections and notations of any action taken 
                      pursuant to the findings of the inspections; and
                          ``(ii) <<NOTE: Inventory data.>> current 
                      inventory data for all highway bridges and tunnels 
                      reflecting the findings of the most recent highway 
                      bridge and tunnel inspections conducted; and
                    ``(E) <<NOTE: Procedures. Certification.>> establish 
                a procedure for national certification of highway bridge 
                inspectors and tunnel inspectors.
            ``(3) State compliance with inspection standards.--The 
        Secretary shall, at a minimum--

[[Page 126 STAT. 449]]

                    ``(A) establish, in consultation with the States, 
                Federal agencies, and interested and knowledgeable 
                private organizations and individuals, procedures to 
                conduct reviews of State compliance with--
                          ``(i) the standards established under this 
                      subsection; and
                          ``(ii) the calculation or reevaluation of 
                      bridge load ratings; and
                    ``(B) <<NOTE: Procedures. Reports.>> establish, in 
                consultation with the States, Federal agencies, and 
                interested and knowledgeable private organizations and 
                individuals, procedures for States to follow in 
                reporting to the Secretary--
                          ``(i) critical findings relating to structural 
                      or safety-related deficiencies of highway bridges 
                      and tunnels; and
                          ``(ii) monitoring activities and corrective 
                      actions taken in response to a critical finding 
                      described in clause (i).
            ``(4) <<NOTE: Deadlines.>> Reviews of state compliance.--
                    ``(A) In general.--The Secretary shall annually 
                review State compliance with the standards established 
                under this section.
                    ``(B) Noncompliance.--If an annual review in 
                accordance with subparagraph (A) identifies 
                noncompliance by a State, the Secretary shall--
                          ``(i) <<NOTE: Reports.>> issue a report 
                      detailing the issues of the noncompliance by 
                      December 31 of the calendar year in which the 
                      review was made; and
                          ``(ii) provide the State an opportunity to 
                      address the noncompliance by--
                                    ``(I) <<NOTE: Action 
                                plan.>> developing a corrective action 
                                plan to remedy the noncompliance; or
                                    ``(II) resolving the issues of 
                                noncompliance not later than 45 days 
                                after the date of notification.
            ``(5) Penalty for noncompliance.--
                    ``(A) <<NOTE: Deadlines.>> In general.--If a State 
                fails to satisfy the requirements of paragraph (4)(B) by 
                August 1 of the calendar year following the year of a 
                finding of noncompliance, the Secretary shall, on 
                October 1 of that year, and each year thereafter as may 
                be necessary, require the State to dedicate funds 
                apportioned to the State under sections 119 and 133 
                after the date of enactment of the MAP-21 to correct the 
                noncompliance with the minimum inspection standards 
                established under this subsection.
                    ``(B) Amount.--The amount of the funds to be 
                directed to correcting noncompliance in accordance with 
                subparagraph (A) shall--
                          ``(i) <<NOTE: Determination.>> be determined 
                      by the State based on an analysis of the actions 
                      needed to address the noncompliance; and
                          ``(ii) require approval by the Secretary.
            ``(6) <<NOTE: Deadline.>> Update of standards.--Not later 
        than 3 years after the date of enactment of the MAP-21, the 
        Secretary shall update inspection standards to cover--
                    ``(A) the methodology, training, and qualifications 
                for inspectors; and
                    ``(B) the frequency of inspection.

[[Page 126 STAT. 450]]

            ``(7) Risk-based approach.--In carrying out the revisions 
        required by paragraph (6), the Secretary shall consider a risk-
        based approach to determining the frequency of bridge 
        inspections.

    ``(i) Training Program for Bridge and Tunnel Inspectors.--
            ``(1) In general.--The Secretary, in cooperation with the 
        State transportation departments, shall maintain a program 
        designed to train appropriate personnel to carry out highway 
        bridge and tunnel inspections.
            ``(2) Revisions.--The training program shall be revised from 
        time to time to take into account new and improved techniques.

    ``(j) Availability of Funds.--In carrying out this section--
            ``(1) the Secretary may use funds made available to the 
        Secretary under sections 104(a) and 503;
            ``(2) a State may use amounts apportioned to the State under 
        section 104(b)(1) and 104(b)(3);
            ``(3) an Indian tribe may use funds made available to the 
        Indian tribe under section 202; and
            ``(4) a Federal agency may use funds made available to the 
        agency under section 503.''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
144 and inserting the following:

``144. National bridge and tunnel inventory and inspection standards.''.

SEC. 1112. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

    (a) 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, the following definitions 
apply:
            ``(1) High risk rural road.--The term `high risk rural road' 
        means any roadway functionally classified as a rural major or 
        minor collector or a rural local road with significant safety 
        risks, as defined by a State in accordance with an updated State 
        strategic highway safety plan.
            ``(2) Highway basemap.--The term `highway basemap' means a 
        representation of all public roads that can be used to geolocate 
        attribute data on a roadway.
            ``(3) Highway safety improvement program.--The term `highway 
        safety improvement program' means projects, activities, plans, 
        and reports carried out under this section.
            ``(4) Highway safety improvement project.--
                    ``(A) In general.--The term `highway safety 
                improvement project' means strategies, activities, and 
                projects on a public road that are consistent with a 
                State strategic highway safety plan and--
                          ``(i) correct or improve a hazardous road 
                      location or feature; or
                          ``(ii) address a highway safety problem.
                    ``(B) Inclusions.--The term `highway safety 
                improvement project' includes, but is not limited to, a 
                project for 1 or more of the following:
                          ``(i) An intersection safety improvement.

[[Page 126 STAT. 451]]

                          ``(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, 
                      including persons with disabilities.
                          ``(iv) Installation of a skid-resistant 
                      surface at an intersection or other location with 
                      a high frequency of crashes.
                          ``(v) An improvement for pedestrian or 
                      bicyclist safety or safety of persons with 
                      disabilities.
                          ``(vi) Construction and improvement of a 
                      railway-highway grade crossing safety feature, 
                      including installation of protective devices.
                          ``(vii) The conduct of a model traffic 
                      enforcement activity at a railway-highway 
                      crossing.
                          ``(viii) Construction of a traffic calming 
                      feature.
                          ``(ix) Elimination of a roadside hazard.
                          ``(x) Installation, replacement, and other 
                      improvement of highway signage and pavement 
                      markings, or a project to maintain minimum levels 
                      of retroreflectivity, that addresses a highway 
                      safety problem consistent with a State strategic 
                      highway safety plan.
                          ``(xi) Installation of a priority control 
                      system for emergency vehicles at signalized 
                      intersections.
                          ``(xii) Installation of a traffic control or 
                      other warning device at a location with high crash 
                      potential.
                          ``(xiii) Transportation safety planning.
                          ``(xiv) Collection, analysis, and improvement 
                      of safety data.
                          ``(xv) Planning integrated interoperable 
                      emergency communications equipment, operational 
                      activities, or traffic enforcement activities 
                      (including police assistance) relating to work 
                      zone safety.
                          ``(xvi) Installation of guardrails, barriers 
                      (including barriers between construction work 
                      zones and traffic lanes for the safety of road 
                      users and workers), and crash attenuators.
                          ``(xvii) The addition or retrofitting of 
                      structures or other measures to eliminate or 
                      reduce crashes involving vehicles and wildlife.
                          ``(xviii) Installation of yellow-green signs 
                      and signals at pedestrian and bicycle crossings 
                      and in school zones.
                          ``(xix) Construction and operational 
                      improvements on high risk rural roads.
                          ``(xx) Geometric improvements to a road for 
                      safety purposes that improve safety.
                          ``(xxi) A road safety audit.
                          ``(xxii) Roadway safety infrastructure 
                      improvements consistent with the recommendations 
                      included in the publication of the Federal Highway 
                      Administration entitled `Highway Design Handbook 
                      for Older

[[Page 126 STAT. 452]]

                      Drivers and Pedestrians' (FHWA-RD-01-103), dated 
                      May 2001 or as subsequently revised and updated.
                          ``(xxiii) Truck parking facilities eligible 
                      for funding under section 1401 of the MAP-21.
                          ``(xxiv) Systemic safety improvements.
            ``(5) Model inventory of roadway elements.--The term `model 
        inventory of roadway elements' means the listing and 
        standardized coding by the Federal Highway Administration of 
        roadway and traffic data elements critical to safety management, 
        analysis, and decisionmaking.
            ``(6) Project to maintain minimum levels of 
        retroreflectivity.--The term `project to maintain minimum levels 
        of retroreflectivity' means a project that is designed to 
        maintain a highway sign or pavement marking retroreflectivity at 
        or above the minimum levels prescribed in Federal or State 
        regulations.
            ``(7) Road safety audit.--The term `road safety audit' means 
        a formal safety performance examination of an existing or future 
        road or intersection by an independent multidisciplinary audit 
        team.
            ``(8) Road users.--The term `road user' means a motorist, 
        passenger, public transportation operator or user, truck driver, 
        bicyclist, motorcyclist, or pedestrian, including a person with 
        disabilities.
            ``(9) Safety data.--
                    ``(A) In general.--The term `safety data' means 
                crash, roadway, and traffic data on a public road.
                    ``(B) Inclusion.--The term `safety data' includes, 
                in the case of a railway-highway grade crossing, the 
                characteristics of highway and train traffic, licensing, 
                and vehicle data.
            ``(10) 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--
                          ``(i) a project consistent with the State 
                      strategic highway safety plan that promotes the 
                      awareness of the public and educates the public 
                      concerning highway safety matters (including 
                      motorcycle safety);
                          ``(ii) a project to enforce highway safety 
                      laws; and
                          ``(iii) a project to provide infrastructure 
                      and infrastructure-related equipment to support 
                      emergency services.
            ``(11) State highway safety improvement program.--The term 
        `State highway safety improvement program' means a program of 
        highway safety improvement projects, activities, plans and 
        reports carried out as part of the Statewide transportation 
        improvement program under section 135(g).
            ``(12) State strategic highway safety plan.--The term `State 
        strategic highway safety plan' means a comprehensive plan, based 
        on safety data, developed by a State transportation department 
        that--
                    ``(A) is developed after consultation with--
                          ``(i) a highway safety representative of the 
                      Governor of the State;

[[Page 126 STAT. 453]]

                          ``(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) a highway-rail grade crossing safety 
                      representative of the Governor of the State;
                          ``(vi) representatives conducting a motor 
                      carrier safety program under section 31102, 31106, 
                      or 31309 of title 49;
                          ``(vii) motor vehicle administration agencies;
                          ``(viii) county transportation officials;
                          ``(ix) State representatives of nonmotorized 
                      users; and
                          ``(x) other major Federal, State, tribal, and 
                      local safety stakeholders;
                    ``(B) analyzes and makes effective use of State, 
                regional, local, or tribal safety 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, all public roads, including non-State-owned 
                public roads and roads on tribal land;
                    ``(E) considers the results of State, regional, or 
                local transportation and highway safety planning 
                processes;
                    ``(F) describes a program of strategies to reduce or 
                eliminate safety hazards;
                    ``(G) is approved by the Governor of the State or a 
                responsible State agency;
                    ``(H) is consistent with section 135(g); and
                    ``(I) is updated and submitted to the Secretary for 
                approval as required under subsection (d)(2).
            ``(13) Systemic safety improvement.--The term `systemic 
        safety improvement' means an improvement that is widely 
        implemented based on high-risk roadway features that are 
        correlated with particular crash types, rather than crash 
        frequency.

    ``(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 all public roads, 
        including non-State-owned public roads and roads on tribal land.

    ``(c) Eligibility.--
            ``(1) In general.--To obligate funds apportioned under 
        section 104(b)(3) to carry out this section, a State shall have 
        in effect a State highway safety improvement program under which 
        the State--
                    ``(A) <<NOTE: Strategic plan.>> develops, 
                implements, and updates a State strategic highway safety 
                plan that identifies and analyzes highway safety 
                problems and opportunities as provided in subsections 
                (a)(12) and (d);

[[Page 126 STAT. 454]]

                    ``(B) produces a program of projects or strategies 
                to reduce identified safety problems; and
                    ``(C) <<NOTE: Evaluation.>> evaluates the strategic 
                highway safety plan on a regularly recurring basis in 
                accordance with subsection (d)(1) to ensure the accuracy 
                of the data and priority of proposed strategies.
            ``(2) Identification and analysis of highway safety problems 
        and opportunities.--As part of the State highway safety 
        improvement program, a State shall--
                    ``(A) have in place a safety data system with the 
                ability to perform safety problem identification and 
                countermeasure analysis--
                          ``(i) to improve the timeliness, accuracy, 
                      completeness, uniformity, integration, and 
                      accessibility of the safety data on all public 
                      roads, including non-State-owned public roads and 
                      roads on tribal land in the State;
                          ``(ii) to evaluate the effectiveness of data 
                      improvement efforts;
                          ``(iii) to link State data systems, including 
                      traffic records, with other data systems within 
                      the State;
                          ``(iv) to improve the compatibility and 
                      interoperability of safety data with other State 
                      transportation-related data systems and the 
                      compatibility and interoperability of State safety 
                      data systems with data systems of other States and 
                      national data systems;
                          ``(v) to enhance the ability of the Secretary 
                      to observe and analyze national trends in crash 
                      occurrences, rates, outcomes, and circumstances; 
                      and
                          ``(vi) to improve the collection of data on 
                      nonmotorized crashes;
                    ``(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;
                          ``(ii) using such criteria as the State 
                      determines to be appropriate, establish the 
                      relative severity of those locations, in terms of 
                      crashes (including crash rates), fatalities, 
                      serious injuries, traffic volume levels, and other 
                      relevant data;
                          ``(iii) identify the number of fatalities and 
                      serious injuries on all public roads by location 
                      in the State;
                          ``(iv) identify highway safety improvement 
                      projects on the basis of crash experience, crash 
                      potential, crash rate, or other data-supported 
                      means; and
                          ``(v) consider which projects maximize 
                      opportunities to advance safety;
                    ``(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

[[Page 126 STAT. 455]]

                          ``(iii) are coordinated with other State 
                      highway safety programs;
                    ``(D) advance the capabilities of the State for 
                safety data collection, analysis, and integration 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, including 
                      public non-State-owned roads and roads on tribal 
                      land;
                          ``(iii) identifies hazardous locations, 
                      sections, and elements on all public roads that 
                      constitute a danger to motorists (including 
                      motorcyclists), bicyclists, pedestrians, persons 
                      with disabilities, and other highway users;
                          ``(iv) includes a means of identifying the 
                      relative severity of hazardous locations described 
                      in clause (iii) in terms of crashes (including 
                      crash rate), serious injuries, fatalities, and 
                      traffic volume levels; and
                          ``(v) improves the ability of the State to 
                      identify the number of fatalities and serious 
                      injuries on all public roads in the State with a 
                      breakdown by functional classification and 
                      ownership in the State;
                    ``(E)(i) determine priorities for the correction of 
                hazardous road locations, sections, and elements 
                (including railway-highway crossing improvements), as 
                identified through safety 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) <<NOTE: Evaluation.>> 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) Updates to Strategic Highway Safety Plans.--
            ``(1) Establishment of requirements.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 1 year after the date of enactment of the MAP-21, 
                the Secretary shall establish requirements for regularly 
                recurring State updates of strategic highway safety 
                plans.
                    ``(B) Contents of updated strategic highway safety 
                plans.--In establishing requirements under this 
                subsection, the Secretary shall ensure that States take 
                into consideration, with respect to updated strategic 
                highway safety plans--
                          ``(i) the findings of road safety audits;
                          ``(ii) the locations of fatalities and serious 
                      injuries;
                          ``(iii) the locations that do not have an 
                      empirical history of fatalities and serious 
                      injuries, but possess risk factors for potential 
                      crashes;
                          ``(iv) rural roads, including all public 
                      roads, commensurate with fatality data;

[[Page 126 STAT. 456]]

                          ``(v) motor vehicle crashes that include 
                      fatalities or serious injuries to pedestrians and 
                      bicyclists;
                          ``(vi) the cost-effectiveness of improvements;
                          ``(vii) improvements to rail-highway grade 
                      crossings; and
                          ``(viii) safety on all public roads, including 
                      non-State-owned public roads and roads on tribal 
                      land.
            ``(2) Approval of updated strategic highway safety plans.--
                    ``(A) In general.--Each State shall--
                          ``(i) update the strategic highway safety 
                      plans of the State in accordance with the 
                      requirements established by the Secretary under 
                      this subsection; and
                          ``(ii) submit the updated plans to the 
                      Secretary, along with a detailed description of 
                      the process used to update the plan.
                    ``(B) Requirements for approval.--The Secretary 
                shall not approve the process for an updated strategic 
                highway safety plan unless--
                          ``(i) the updated strategic highway safety 
                      plan is consistent with the requirements of this 
                      subsection and subsection (a)(12); and
                          ``(ii) the process used is consistent with the 
                      requirements of this subsection.
            ``(3) Penalty for failure to have an approved updated 
        strategic highway safety plan.-- <<NOTE: Deadline.>> If a State 
        does not have an updated strategic highway safety plan with a 
        process approved by the Secretary by August 1 of the fiscal year 
        beginning after the date of establishment of the requirements 
        under paragraph (1), the State shall not be eligible to receive 
        any additional limitation pursuant to the redistribution of the 
        limitation on obligations for Federal-aid highway and highway 
        safety construction programs that occurs after August 1 for each 
        succeeding fiscal year until the fiscal year during which the 
        plan is approved.

    ``(e) Eligible Projects.--
            ``(1) In general.--Funds apportioned to the State under 
        section 104(b)(3) may be obligated to carry out--
                    ``(A) any highway safety improvement project on any 
                public road or publicly owned bicycle or pedestrian 
                pathway or trail;
                    ``(B) as provided in subsection (g); or
                    ``(C) any project to maintain minimum levels of 
                retroreflectivity with respect to a public road, without 
                regard to whether the project is included in an 
                applicable State strategic highway safety plan.
            ``(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 the safety needs and 
                opportunities of the States by using funds made 
                available under other provisions of this title (except a 
                provision that specifically prohibits that use).

    ``(f) Data Improvement.--

[[Page 126 STAT. 457]]

            ``(1) Definition of data improvement activities.--In this 
        subsection, the following definitions apply:
                    ``(A) In general.--The term `data improvement 
                activities' means a project or activity to further the 
                capacity of a State to make more informed and effective 
                safety infrastructure investment decisions.
                    ``(B) Inclusions.--The term `data improvement 
                activities' includes a project or activity--
                          ``(i) to create, update, or enhance a highway 
                      basemap of all public roads in a State;
                          ``(ii) to collect safety data, including data 
                      identified as part of the model inventory for 
                      roadway elements, for creation of or use on a 
                      highway basemap of all public roads in a State;
                          ``(iii) to store and maintain safety data in 
                      an electronic manner;
                          ``(iv) to develop analytical processes for 
                      safety data elements;
                          ``(v) to acquire and implement roadway safety 
                      analysis tools; and
                          ``(vi) to support the collection, maintenance, 
                      and sharing of safety data on all public roads and 
                      related systems associated with the analytical 
                      usage of that data.
            ``(2) Model inventory of roadway elements.--The Secretary 
        shall--
                    ``(A) establish a subset of the model inventory of 
                roadway elements that are useful for the inventory of 
                roadway safety; and
                    ``(B) ensure that States adopt and use the subset to 
                improve data collection.

    ``(g) Special Rules.--
            ``(1) High-risk rural road safety.--If the fatality rate on 
        rural roads in a State increases over the most recent 2-year 
        period for which data are available, that State shall be 
        required to obligate in the next fiscal year for projects on 
        high risk rural roads an amount equal to at least 200 percent of 
        the amount of funds the State received for fiscal year 2009 for 
        high risk rural roads under subsection (f) of this section, as 
        in effect on the day before the date of enactment of the MAP-21.
            ``(2) Older drivers.--If traffic fatalities and serious 
        injuries per capita for drivers and pedestrians over the age of 
        65 in a State increases during the most recent 2-year period for 
        which data are available, that State shall be required to 
        include, in the subsequent Strategic Highway Safety Plan of the 
        State, strategies to address the increases in those rates, 
        taking into account the recommendations included in the 
        publication of the Federal Highway Administration entitled 
        `Highway Design Handbook for Older Drivers and Pedestrians' 
        (FHWA-RD-01-103), and dated May 2001, or as subsequently revised 
        and updated.

    ``(h) 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;

[[Page 126 STAT. 458]]

                    ``(B) assesses the effectiveness of those 
                improvements; and
                    ``(C) describes the extent to which the improvements 
                funded under this section have contributed to reducing--
                          ``(i) the number and rate of fatalities on all 
                      public roads with, to the maximum extent 
                      practicable, a breakdown by functional 
                      classification and ownership in the State;
                          ``(ii) the number and rate of serious injuries 
                      on all public roads with, to the maximum extent 
                      practicable, a breakdown by functional 
                      classification and ownership in the State; and
                          ``(iii) the occurrences of fatalities and 
                      serious injuries at railway-highway crossings.
            ``(2) Contents; schedule.--The Secretary shall establish the 
        content and schedule for the submission of the report under 
        paragraph (1).
            ``(3) <<NOTE: Public information. Web 
        posting.>> Transparency.--The Secretary shall make strategic 
        highway safety plans submitted under subsection (d) and reports 
        submitted under this subsection available to the public 
        through--
                    ``(A) the website 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 relating to this section, 
        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 the reports, surveys, 
        schedules, lists, or other data.

    ``(i) <<NOTE: Determination. Deadline.>> State Performance 
Targets.--If the Secretary determines that a State has not met or made 
significant progress toward meeting the performance targets of the State 
established under section 150(d) by the date that is 2 years after the 
date of the establishment of the performance targets, the State shall--
            ``(1) use obligation authority equal to the apportionment of 
        the State for the prior year under section 104(b)(3) only for 
        highway safety improvement projects under this section until the 
        Secretary determines that the State has met or made significant 
        progress toward meeting the performance targets of the State; 
        and
            ``(2) <<NOTE: Implementation plan.>> submit annually to the 
        Secretary, until the Secretary determines that the State has met 
        or made significant progress toward meeting the performance 
        targets of the State, an implementation plan that--
                    ``(A) identifies roadway features that constitute a 
                hazard to road users;
                    ``(B) identifies highway safety improvement projects 
                on the basis of crash experience, crash potential, or 
                other data-supported means;
                    ``(C) describes how highway safety improvement 
                program funds will be allocated, including projects, 
                activities, and strategies to be implemented;

[[Page 126 STAT. 459]]

                    ``(D) describes how the proposed projects, 
                activities, and strategies funded under the State 
                highway safety improvement program will allow the State 
                to make progress toward achieving the safety performance 
                targets of the State; and
                    ``(E) describes the actions the State will undertake 
                to meet the performance targets of the State.

    ``(j) 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 apportioned to 
a State under section 104(b)(3) shall be 90 percent.''.
    (b) <<NOTE: 23 USC 148 note.>> Study of High-risk Rural Roads Best 
Practices.--
            (1) Study.--
                    (A) In general.--The Secretary shall conduct a study 
                of the best practices for implementing cost-effective 
                roadway safety infrastructure improvements on high-risk 
                rural roads.
                    (B) Methodology.--In carrying out the study, the 
                Secretary shall--
                          (i) conduct a thorough literature review;
                          (ii) survey current practices of State 
                      departments of transportation; and
                          (iii) survey current practices of local units 
                      of government, as appropriate.
                    (C) Consultation.--In carrying out the study, the 
                Secretary shall consult with--
                          (i) State departments of transportation;
                          (ii) county engineers and public works 
                      professionals;
                          (iii) appropriate local officials; and
                          (iv) appropriate private sector experts in the 
                      field of roadway safety infrastructure.
            (2) Report.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Secretary shall 
                submit to the Committee on Environment and Public Works 
                of the Senate and the Committee on Transportation and 
                Infrastructure of the House of Representatives a report 
                on the results of the study.
                    (B) Contents.--The report shall include--
                          (i) a summary of cost-effective roadway safety 
                      infrastructure improvements;
                          (ii) a summary of the latest research on the 
                      financial savings and reduction in fatalities and 
                      serious bodily injury crashes from the 
                      implementation of cost-effective roadway safety 
                      infrastructure improvements; and
                          (iii) recommendations for State and local 
                      governments on best practice methods to install 
                      cost-effective roadway safety infrastructure on 
                      high-risk rural roads.
            (3) Manual.--
                    (A) Development.--Based on the results of the study 
                under paragraph (2), the Secretary, in consultation with 
                the individuals and entities described in paragraph 
                (1)(C), shall develop a best practices manual to support 
                Federal, State, and local efforts to reduce fatalities 
                and serious

[[Page 126 STAT. 460]]

                bodily injury crashes on high-risk rural roads through 
                the use of cost-effective roadway safety infrastructure 
                improvements.
                    (B) <<NOTE: Deadline.>> Availability.--The manual 
                shall be made available to State and local governments 
                not later than 180 days after the date of submission of 
                the report under paragraph (2).
                    (C) Contents.--The manual shall include, at a 
                minimum, a list of cost-effective roadway safety 
                infrastructure improvements and best practices on the 
                installation of cost-effective roadway safety 
                infrastructure improvements on high-risk rural roads.
                    (D) Use of manual.--Use of the manual shall be 
                voluntary and the manual shall not establish any binding 
                standards or legal duties on State or local governments, 
                or any other person.
SEC. 1113. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT 
                          PROGRAM.

    (a) Eligible Projects.--Section 149(b) of title 23, United States 
Code, is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``in subsection (c)'' and inserting 
                ``in subsection (d)''; and
                    (B) by striking ``section 104(b)(2)'' and inserting 
                ``section 104(b)(4)'';
            (2) in paragraph (5)--
                    (A) by inserting ``add turning lanes,'' after 
                ``improve intersections,''; and
                    (B) by striking ``paragraph;'' and inserting 
                ``paragraph, including programs or projects to improve 
                incident and emergency response or improve mobility, 
                such as through real-time traffic, transit, and 
                multimodal traveler information;'';
            (3) in paragraph (6) by striking ``or'' at the end;
            (4) in paragraph (7)(A)(ii) by striking ``published in the 
        list under subsection (f)(2)'' and inserting ``verified 
        technologies (as defined in section 791 of the Energy Policy Act 
        of 2005 (42 U.S.C. 16131))'';
            (5) by striking the matter following paragraph (7);
            (6) by redesignating paragraph (7) as paragraph (8); and
            (7) by inserting after paragraph (6) the following:
            ``(7) if the project or program shifts traffic demand to 
        nonpeak hours or other transportation modes, increases vehicle 
        occupancy rates, or otherwise reduces demand for roads through 
        such means as telecommuting, ridesharing, carsharing, 
        alternative work hours, and pricing; or''.

    (b) Special Rules.--Section 149 of title 23, United States Code, is 
amended--
            (1) by redesignating subsections (c) through (h) as 
        subsections (d) through (i) respectively;
            (2) by inserting after subsection (b) the following:

    ``(c) Special Rules.--
            ``(1) Projects for pm-10 nonattainment areas.--A State may 
        obligate funds apportioned to the State under section 104(b)(4) 
        for a project or program for an area that is nonattainment for 
        ozone or carbon monoxide, or both, and for PM-

[[Page 126 STAT. 461]]

        10 resulting from transportation activities, without regard to 
        any limitation of the Department of Transportation relating to 
        the type of ambient air quality standard such project or program 
        addresses.
            ``(2) Electric vehicle and natural gas vehicle 
        infrastructure.--A State may obligate funds apportioned under 
        section 104(b)(4) for a project or program to establish electric 
        vehicle charging stations or natural gas vehicle refueling 
        stations for the use of battery powered or natural gas fueled 
        trucks or other motor vehicles at any location in the State 
        except that such stations may not be established or supported 
        where commercial establishments serving motor vehicle users are 
        prohibited by section 111 of title 23, United States Code.
            ``(3) HOV facilities.--No funds may be provided under this 
        section for a project which will result in the construction of 
        new capacity available to single occupant vehicles unless the 
        project consists of a high occupancy vehicle facility available 
        to single occupant vehicles only at other than peak travel 
        times.'';
            (3) by striking subsection (d) (as redesignated by paragraph 
        (1)) and inserting the following:

    ``(d) States Flexibility.--
            ``(1) States without a nonattainment area.--If a State does 
        not have, and never has had, a nonattainment area designated 
        under the Clean Air Act (42 U.S.C. 7401 et seq.), the State may 
        use funds apportioned to the State under section 104(b)(4) for 
        any project in the State that--
                    ``(A) would otherwise be eligible under subsection 
                (b) 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.
            ``(2) States with a nonattainment area.--
                    ``(A) In general.--If a State has a nonattainment 
                area or maintenance area and received funds in fiscal 
                year 2009 under section 104(b)(2)(D), as in effect on 
                the day before the date of enactment of the MAP-21, 
                above the amount of funds that the State would have 
                received based on the nonattainment and maintenance area 
                population of the State under subparagraphs (B) and (C) 
                of section 104(b)(2), as in effect on the day before the 
                date of enactment of the MAP-21, the State may use for 
                any project that is eligible under the surface 
                transportation program under section 133 an amount of 
                funds apportioned to such State under section 104(b)(4) 
                that is equal to the product obtained by multiplying--
                          ``(i) the amount apportioned to such State 
                      under section 104(b)(4) (excluding the amount of 
                      funds reserved under paragraph (l)); by
                          ``(ii) the ratio calculated under subparagraph 
                      (B).
                    ``(B) Ratio.--For purposes of this paragraph, the 
                ratio shall be calculated as the proportion that--
                          ``(i) the amount for fiscal year 2009 such 
                      State was permitted by section 149(c)(2), as in 
                      effect on the day before the date of enactment of 
                      the MAP-21, to obligate in any area of the State 
                      for projects eligible

[[Page 126 STAT. 462]]

                      under section 133, as in effect on the day before 
                      the date of enactment of the MAP-21t; bears to
                          ``(ii) the total apportionment to such State 
                      for fiscal year 2009 under section 104(b)(2), as 
                      in effect on the day before the date of enactment 
                      of the MAP-21.
            ``(3) Changes in designation.--If a new nonattainment area 
        is designated or a previously designated nonattainment area is 
        redesignated as an attainment area in a State under the Clean 
        Air Act (42 U.S.C. 7401 et seq.), the Secretary shall modify the 
        amount such State is permitted to obligate in any area of the 
        State for projects eligible under section 133.'';
            (4) in subsection (f)(3) (as redesignated by paragraph (1)) 
        by striking ``104(b)(2)'' and inserting ``104(b)(4)'';
            (5) in subsection (g) (as redesignated by paragraph (1)) by 
        striking paragraph (3) and inserting the following:
            ``(3) Priority consideration.--States and metropolitan 
        planning organizations shall give priority in areas designated 
        as nonattainment or maintenance for PM2.5 under the Clean Air 
        Act (42 U.S.C. 7401 et seq.) in distributing funds received for 
        congestion mitigation and air quality projects and programs from 
        apportionments under section 104(b)(4) to projects that are 
        proven to reduce PM2.5, including diesel retrofits.'';
            (6) by striking subsection (i) (as redesignated by paragraph 
        (1)) and inserting the following:

    ``(i) Evaluation and Assessment of Projects.--
            ``(1) Database.--
                    ``(A) In general.--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, 
                including specific information about each project, such 
                as the project name, location, sponsor, cost, and, to 
                the extent already measured by the project sponsor, 
                cost-effectiveness, based on reductions in congestion 
                and emissions.
                    ``(B) <<NOTE: Publication. Public 
                information.>> Availability.--The database shall be 
                published or otherwise made readily available by the 
                Secretary in electronically accessible format and means, 
                such as the Internet, for public review.
            ``(2) Cost effectiveness.--
                    ``(A) <<NOTE: Evaluation.>> In general.--The 
                Secretary, in consultation with the Administrator of the 
                Environmental Protection Agency, shall evaluate projects 
                on a periodic basis and develop a table or other similar 
                medium that illustrates the cost-effectiveness of a 
                range of project types eligible for funding under this 
                section as to how the projects mitigate congestion and 
                improve air quality.
                    ``(B) Contents.--The table described in subparagraph 
                (A) shall show measures of cost-effectiveness, such as 
                dollars per ton of emissions reduced, and assess those 
                measures over a variety of timeframes to capture impacts 
                on the planning timeframes outlined in section 134.
                    ``(C) Use of table.--States and metropolitan 
                planning organizations shall consider the information in 
                the table when selecting projects or developing 
                performance plans under subsection (l).

    ``(j) Optional Programmatic Eligibility.--

[[Page 126 STAT. 463]]

            ``(1) In general.--At the discretion of a metropolitan 
        planning organization, a technical assessment of a selected 
        program of projects may be conducted through modeling or other 
        means to demonstrate the emissions reduction projection required 
        under this section.
            ``(2) Applicability.--If an assessment described in 
        paragraph (1) successfully demonstrates an emissions reduction, 
        all projects included in such assessment shall be eligible for 
        obligation under this section without further demonstration of 
        emissions reduction of individual projects included in such 
        assessment.

    ``(k) Priority for Use of Funds in PM2.5 Areas.--
            ``(1) In general.--For any State that has a nonattainment or 
        maintenance area for fine particulate matter, an amount equal to 
        25 percent of the funds apportioned to each State under section 
        104(b)(4) for a nonattainment or maintenance area that are based 
        all or in part on the weighted population of such area in fine 
        particulate matter nonattainment shall be obligated to projects 
        that reduce such fine particulate matter emissions in such area, 
        including diesel retrofits.
            ``(2) Construction equipment and vehicles.--In order to meet 
        the requirements of paragraph (1), a State or metropolitan 
        planning organization may elect to obligate funds to install 
        diesel emission control technology on nonroad diesel equipment 
        or on-road diesel equipment that is operated on a highway 
        construction project within a PM2.5 nonattainment or maintenance 
        area.

    ``(l) Performance Plan.--
            ``(1) In general.--Each metropolitan planning organization 
        serving a transportation management area (as defined in section 
        134) with a population over 1,000,000 people representing a 
        nonattainment or maintenance area shall develop a performance 
        plan that--
                    ``(A) includes an area baseline level for traffic 
                congestion and on-road mobile source emissions for which 
                the area is in nonattainment or maintenance;
                    ``(B) describes progress made in achieving the 
                performance targets described in section 150(d); and
                    ``(C) includes a description of projects identified 
                for funding under this section and how such projects 
                will contribute to achieving emission and traffic 
                congestion reduction targets.
            ``(2) <<NOTE: Deadline. Reports.>> Updated plans.--
        Performance plans shall be updated biennially and include a 
        separate report that assesses the progress of the program of 
        projects under the previous plan in achieving the air quality 
        and traffic congestion targets of the previous plan.

    ``(m) Operating Assistance.--A State may obligate funds apportioned 
under section 104(b)(2) in an area of such State that is otherwise 
eligible for obligations of such funds for operating costs under chapter 
53 of title 49 or on a system that was previously eligible under this 
section.''.
    (c) Air Quality and Congestion Mitigation Measure Outcomes 
Assessment Study.--
            (1) In general.--The Secretary, in consultation with the 
        Administrator of the Environmental Protection Agency, shall 
        examine the outcomes of actions funded under the congestion

[[Page 126 STAT. 464]]

        mitigation and air quality improvement program since the date of 
        enactment of the SAFETEA-LU (Public Law 109-59).
            (2) Goals.--The goals of the program shall include--
                    (A) the assessment and documentation, through 
                outcomes research conducted on a representative sample 
                of cases, of--
                          (i) the emission reductions achieved by 
                      federally supported surface transportation actions 
                      intended to reduce emissions or lessen traffic 
                      congestion; and
                          (ii) the air quality and human health impacts 
                      of those actions, including potential unrecognized 
                      or indirect consequences, attributable to those 
                      actions;
                    (B) an expanded base of empirical evidence on the 
                air quality and human health impacts of actions 
                described in paragraph (1); and
                    (C) an increase in knowledge of--
                          (i) the factors determining the air quality 
                      and human health changes associated with 
                      transportation emission reduction actions; and
                          (ii) other information to more accurately 
                      understand the validity of current estimation and 
                      modeling routines and ways to improve those 
                      routines.
            (3) Administrative elements.--To carry out this subsection, 
        the Secretary shall--
                    (A) <<NOTE: Grants.>> make a grant for the 
                coordination, selection, management, and reporting of 
                component studies to an independent scientific research 
                organization with the necessary experience in 
                successfully conducting accountability and other studies 
                on mobile source air pollutants and associated health 
                effects;
                    (B) ensure that case studies are identified and 
                conducted by teams selected through a competitive 
                solicitation overseen by an independent committee of 
                unbiased experts; and
                    (C) ensure that all findings and reports are peer-
                reviewed and published in a form that presents the 
                findings together with reviewer comments.
            (4) Report.--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) not later than 1 year after the date of 
                enactment of the MAP-21, and for the following year, a 
                report providing an initial scoping and plan, and status 
                updates, respectively, for the program under this 
                subsection; and
                    (B) not later than 2 years after the date of 
                enactment of the MAP-21, a final report that describes 
                the findings of, and recommendations resulting from, the 
                program under this subsection.
            (5) Funding.--Of the amounts made available to carry out 
        section 104(a) for fiscal year 2013, the Secretary shall make 
        available to carry out this subsection not more than $1,000,000.
SEC. 1114. TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM.

    (a) In General.--Section 165 of title 23, United States Code, is 
amended to read as follows:

[[Page 126 STAT. 465]]

``Sec. 165. Territorial and Puerto Rico highway program

    ``(a) Division of Funds.--Of funds made available in a fiscal year 
for the territorial and Puerto Rico highway program--
            ``(1) $150,000,000 shall be for the Puerto Rico highway 
        program under subsection (b); and
            ``(2) $40,000,000 shall be for the territorial highway 
        program under subsection (c).

    ``(b) Puerto Rico Highway Program.--
            ``(1) In general.--The Secretary shall allocate funds made 
        available to carry out this subsection to the Commonwealth of 
        Puerto Rico to carry out a highway program in the Commonwealth.
            ``(2) Treatment of funds.--Amounts made available to carry 
        out this subsection for a fiscal year shall be administered as 
        follows:
                    ``(A) Apportionment.--
                          ``(i) In general.--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 (as in 
                      effect for fiscal year 1997) for each program 
                      funded under those sections in an amount 
                      determined by multiplying--
                                    ``(I) the aggregate of the amounts 
                                for the fiscal year; by
                                    ``(II) the proportion that--
                                            ``(aa) the amount of funds 
                                        apportioned to Puerto Rico for 
                                        each such program for fiscal 
                                        year 1997; bears to
                                            ``(bb) the total amount of 
                                        funds apportioned to Puerto Rico 
                                        for all such programs for fiscal 
                                        year 1997.
                          ``(ii) Exception.--Funds identified under 
                      clause (i) as having been apportioned for the 
                      national highway system, the surface 
                      transportation program, and the Interstate 
                      maintenance program shall be deemed to have been 
                      apportioned 50 percent for the national highway 
                      performance program and 50 percent for the surface 
                      transportation program for purposes of imposing 
                      such penalties.
                    ``(B) Penalty.--The amounts treated as being 
                apportioned to Puerto Rico under each section referred 
                to in subparagraph (A) 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 or title 49.
                    ``(C) Eligible uses of funds.--Of amounts allocated 
                to Puerto Rico for the Puerto Rico Highway Program for a 
                fiscal year--
                          ``(i) at least 50 percent shall be available 
                      only for purposes eligible under section 119;
                          ``(ii) at least 25 percent shall be available 
                      only for purposes eligible under section 148; and
                          ``(iii) any remaining funds may be obligated 
                      for activities eligible under chapter 1.
            ``(3) Effect on apportionments.--Except as otherwise 
        specifically provided, Puerto Rico shall not be eligible to 
        receive funds apportioned to States under this title.

[[Page 126 STAT. 466]]

    ``(c) Territorial Highway Program.--
            ``(1) Territory defined.--In this subsection, the term 
        `territory' means 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.
            ``(2) Program.--
                    ``(A) 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 government of a territory in the 
                construction and improvement of a system of arterial and 
                collector highways, and necessary inter-island 
                connectors, that is--
                          ``(i) designated by the Governor or chief 
                      executive officer of each territory; and
                          ``(ii) approved by the Secretary.
                    ``(B) Federal share.--The Federal share of Federal 
                financial assistance provided to territories under this 
                subsection shall be in accordance with section 120(g).
            ``(3) Technical assistance.--
                    ``(A) 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, on a continuing basis--
                          ``(i) to engage in highway planning;
                          ``(ii) to conduct environmental evaluations;
                          ``(iii) to administer right-of-way acquisition 
                      and relocation assistance programs; and
                          ``(iv) to design, construct, operate, and 
                      maintain a system of arterial and collector 
                      highways, including necessary inter-island 
                      connectors.
                    ``(B) Form and terms of assistance.--Technical 
                assistance provided under subparagraph (A), and the 
                terms for the sharing of information among territories 
                receiving the technical assistance, shall be included in 
                the agreement required by paragraph (5).
            ``(4) Nonapplicability of certain provisions.--
                    ``(A) In general.--Except to the extent that 
                provisions of this chapter are determined by the 
                Secretary to be inconsistent with the needs of the 
                territories and the intent of this subsection, this 
                chapter (other than provisions of this chapter relating 
                to the apportionment and allocation of funds) shall 
                apply to funds made available under this subsection.
                    ``(B) Applicable provisions.--The agreement required 
                by paragraph (5) for each territory shall identify the 
                sections of this chapter that are applicable to that 
                territory and the extent of the applicability of those 
                sections.
            ``(5) Agreement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (D), none of the funds made available under 
                this subsection shall be available for obligation or 
                expenditure with respect to any territory until the 
                chief executive officer of the

[[Page 126 STAT. 467]]

                territory has entered into an agreement (including an 
                agreement entered into under section 215 as in effect on 
                the day before the enactment of this section) with the 
                Secretary providing that the government of the territory 
                shall--
                          ``(i) implement the program in accordance with 
                      applicable provisions of this chapter and 
                      paragraph (4);
                          ``(ii) 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;
                          ``(iii) provide for the maintenance of 
                      facilities constructed or operated under this 
                      subsection in a condition to adequately serve the 
                      needs of present and future traffic; and
                          ``(iv) implement standards for traffic 
                      operations and uniform traffic control devices 
                      that are approved by the Secretary.
                    ``(B) Technical assistance.--The agreement required 
                by subparagraph (A) shall--
                          ``(i) specify the kind of technical assistance 
                      to be provided under the program;
                          ``(ii) include appropriate provisions 
                      regarding information sharing among the 
                      territories; and
                          ``(iii) delineate the oversight role and 
                      responsibilities of the territories and the 
                      Secretary.
                    ``(C) <<NOTE: Deadline.>> Review and revision of 
                agreement.--The agreement entered into under 
                subparagraph (A) shall be reevaluated and, as necessary, 
                revised, at least every 2 years.
                    ``(D) Existing agreements.--With respect to an 
                agreement under this subsection or an agreement entered 
                into under section 215 of this title as in effect on the 
                day before the date of enactment of this subsection--
                          ``(i) the agreement shall continue in force 
                      until replaced by an agreement entered into in 
                      accordance with subparagraph (A); and
                          ``(ii) amounts made available under this 
                      subsection under the existing agreement shall be 
                      available for obligation or expenditure so long as 
                      the agreement, or the existing agreement entered 
                      into under subparagraph (A), is in effect.
            ``(6) Eligible uses of funds.--
                    ``(A) In general.--Funds made available under this 
                subsection may be used only for the following projects 
                and activities carried out in a territory:
                          ``(i) Eligible surface transportation program 
                      projects described in section 133(b).
                          ``(ii) Cost-effective, preventive maintenance 
                      consistent with section 116(e).
                          ``(iii) Ferry boats, terminal facilities, and 
                      approaches, in accordance with subsections (b) and 
                      (c) of section 129.

[[Page 126 STAT. 468]]

                          ``(iv) Engineering and economic surveys and 
                      investigations for the planning, and the 
                      financing, of future highway programs.
                          ``(v) Studies of the economy, safety, and 
                      convenience of highway use.
                          ``(vi) The regulation and equitable taxation 
                      of highway use.
                          ``(vii) Such research and development as are 
                      necessary in connection with the planning, design, 
                      and maintenance of the highway system.
                    ``(B) Prohibition on use of funds for routine 
                maintenance.--None of the funds made available under 
                this subsection shall be obligated or expended for 
                routine maintenance.
            ``(7) Location of projects.--Territorial highway program 
        projects (other than those described in paragraphs (2), (4), 
        (7), (8), (14), and (19) of section 133(b)) may not be 
        undertaken on roads functionally classified as local.''.

    (b) Conforming Amendments.--
            (1) Technical and conforming amendment.--The analysis for 
        chapter 1 of title 23, United States Code, is amended by 
        striking the item relating to section 165 and inserting the 
        following:

``165. Territorial and Puerto Rico highway program.''.

            (2) Territorial highway program.--
                    (A) Repeal.--Section 215 of title 23, United States 
                Code, is repealed.
                    (B) Technical and conforming amendment.--The 
                analysis for chapter 2 of title 23, United States Code, 
                is amended by striking the item relating to section 215.
                    (C) Duncan hunter national defense authorization act 
                for fiscal year 2009.--Section 3512(e) of the Duncan 
                Hunter National Defense Authorization Act for Fiscal 
                Year 2009 (48 U.S.C. 1421r(e)) is amended by striking 
                ``section 215'' and inserting ``section 165''.
SEC. 1115. NATIONAL FREIGHT POLICY.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by adding at the end the following:
``Sec. 167. National freight policy

    ``(a) In General.--It is the policy of the United States to improve 
the condition and performance of the national freight network to ensure 
that the national freight network provides the foundation for the United 
States to compete in the global economy and achieve each goal described 
in subsection (b).
    ``(b) Goals.--The goals of the national freight policy are--
            ``(1) to invest in infrastructure improvements and to 
        implement operational improvements that--
                    ``(A) strengthen the contribution of the national 
                freight network to the economic competitiveness of the 
                United States;
                    ``(B) reduce congestion; and
                    ``(C) increase productivity, particularly for 
                domestic industries and businesses that create high-
                value jobs;

[[Page 126 STAT. 469]]

            ``(2) to improve the safety, security, and resilience of 
        freight transportation;
            ``(3) to improve the state of good repair of the national 
        freight network;
            ``(4) to use advanced technology to improve the safety and 
        efficiency of the national freight network;
            ``(5) to incorporate concepts of performance, innovation, 
        competition, and accountability into the operation and 
        maintenance of the national freight network; and
            ``(6) to improve the economic efficiency of the national 
        freight network.
            ``(7) to reduce the environmental impacts of freight 
        movement on the national freight network;

    ``(c) Establishment of a National Freight Network.--
            ``(1) In general.--The Secretary shall establish a national 
        freight network in accordance with this section to assist States 
        in strategically directing resources toward improved system 
        performance for efficient movement of freight on highways, 
        including national highway system, freight intermodal connectors 
        and aerotropolis transportation systems.
            ``(2) Network components.--The national freight network 
        shall consist of--
                    ``(A) the primary freight network, as designated by 
                the Secretary under subsection (d) (referred to in this 
                section as the `primary freight network') as most 
                critical to the movement of freight;
                    ``(B) the portions of the Interstate System not 
                designated as part of the primary freight network; and
                    ``(C) critical rural freight corridors established 
                under subsection (e).

    ``(d) Designation of Primary Freight Network.--
            ``(1) Initial designation of primary freight network.--
                    ``(A) <<NOTE: Deadline.>> Designation.--Not later 
                than 1 year after the date of enactment of this section, 
                the Secretary shall designate a primary freight 
                network--
                          ``(i) based on an inventory of national 
                      freight volume conducted by the Administrator of 
                      the Federal Highway Administration, in 
                      consultation with stakeholders, including system 
                      users, transport providers, and States; and
                          ``(ii) that shall be comprised of not more 
                      than 27,000 centerline miles of existing roadways 
                      that are most critical to the movement of freight.
                    ``(B) Factors for designation.--In designating the 
                primary freight network, the Secretary shall consider--
                          ``(i) the origins and destinations of freight 
                      movement in the United States;
                          ``(ii) the total freight tonnage and value of 
                      freight moved by highways;
                          ``(iii) the percentage of annual average daily 
                      truck traffic in the annual average daily traffic 
                      on principal arterials;
                          ``(iv) the annual average daily truck traffic 
                      on principal arterials;
                          ``(v) land and maritime ports of entry;
                          ``(vi) access to energy exploration, 
                      development, installation, or production areas;

[[Page 126 STAT. 470]]

                          ``(vii) population centers; and
                          ``(viii) network connectivity.
            ``(2) Additional miles on primary freight network.--In 
        addition to the miles initially designated under paragraph (1), 
        the Secretary may increase the number of miles designated as 
        part of the primary freight network by not more than 3,000 
        additional centerline miles of roadways (which may include 
        existing or planned roads) critical to future efficient movement 
        of goods on the primary freight network.
            ``(3) <<NOTE: Effective date. Deadline.>> Redesignation of 
        primary freight network.--Effective beginning 10 years after the 
        designation of the primary freight network and every 10 years 
        thereafter, using the designation factors described in paragraph 
        (1), the Secretary shall redesignate the primary freight network 
        (including additional mileage described in paragraph (2)).

    ``(e) Critical Rural Freight Corridors.--A State may designate a 
road within the borders of the State as a critical rural freight 
corridor if the road--
            ``(1) is a rural principal arterial roadway and has a 
        minimum of 25 percent of the annual average daily traffic of the 
        road measured in passenger vehicle equivalent units from trucks 
        (FHWA vehicle class 8 to 13);
            ``(2) provides access to energy exploration, development, 
        installation, or production areas;
            ``(3) connects the primary freight network, a roadway 
        described in paragraph (1) or (2), or Interstate System to 
        facilities that handle more than--
                    ``(A) 50,000 20-foot equivalent units per year; or
                    ``(B) 500,000 tons per year of bulk commodities.

    ``(f) National Freight Strategic Plan.--
            ``(1) Initial development of national freight strategic 
        plan.-- <<NOTE: Deadline.>> Not later than 3 years after the 
        date of enactment of this section, the Secretary shall, in 
        consultation with State departments of transportation and other 
        appropriate public and private transportation stakeholders, 
        develop and post on the Department of Transportation public 
        website a national freight strategic plan that shall include--
                    ``(A) an assessment of the condition and performance 
                of the national freight network;
                    ``(B) an identification of highway bottlenecks on 
                the national freight network that create significant 
                freight congestion problems, based on a quantitative 
                methodology developed by the Secretary, which shall, at 
                a minimum, include--
                          ``(i) information from the Freight Analysis 
                      Network of the Federal Highway Administration; and
                          ``(ii) to the maximum extent practicable, an 
                      estimate of the cost of addressing each bottleneck 
                      and any operational improvements that could be 
                      implemented;
                    ``(C) forecasts of freight volumes for the 20-year 
                period beginning in the year during which the plan is 
                issued;
                    ``(D) an identification of major trade gateways and 
                national freight corridors that connect major population 
                centers, trade gateways, and other major freight 
                generators for current and forecasted traffic and 
                freight volumes, the

[[Page 126 STAT. 471]]

                identification of which shall be revised, as 
                appropriate, in subsequent plans;
                    ``(E) an assessment of statutory, regulatory, 
                technological, institutional, financial, and other 
                barriers to improved freight transportation performance 
                (including opportunities for overcoming the barriers);
                    ``(F) an identification of routes providing access 
                to energy exploration, development, installation, or 
                production areas;
                    ``(G) best practices for improving the performance 
                of the national freight network;
                    ``(H) best practices to mitigate the impacts of 
                freight movement on communities;
                    ``(I) a process for addressing multistate projects 
                and encouraging jurisdictions to collaborate; and
                    ``(J) strategies to improve freight intermodal 
                connectivity.
            ``(2) Updates to national freight strategic plan.--Not later 
        than 5 years after the date of completion of the first national 
        freight strategic plan under paragraph (1), and every 5 years 
        thereafter, the Secretary shall update and repost on the 
        Department of Transportation public website a revised national 
        freight strategic plan.

    ``(g) <<NOTE: Web posting.>> Freight Transportation Conditions and 
Performance Reports.--Not later than 2 years after the date of enactment 
of this section, and biennially thereafter, the Secretary shall prepare 
a report that contains a description of the conditions and performance 
of the national freight network in the United States.

    ``(h) Transportation Investment Data and Planning Tools.--
            ``(1) <<NOTE: Deadline.>> In general.--Not later than 1 year 
        after the date of enactment of this section, the Secretary 
        shall--
                    ``(A) begin development of new tools and improvement 
                of existing tools or improve existing tools to support 
                an outcome-oriented, performance-based approach to 
                evaluate proposed freight-related and other 
                transportation projects, including--
                          ``(i) methodologies for systematic analysis of 
                      benefits and costs;
                          ``(ii) tools for ensuring that the evaluation 
                      of freight-related and other transportation 
                      projects could consider safety, economic 
                      competitiveness, environmental sustainability, and 
                      system condition in the project selection process; 
                      and
                          ``(iii) other elements to assist in effective 
                      transportation planning;
                    ``(B) identify transportation-related model data 
                elements to support a broad range of evaluation methods 
                and techniques to assist in making transportation 
                investment decisions; and
                    ``(C) at a minimum, in consultation with other 
                relevant Federal agencies, consider any improvements to 
                existing freight flow data collection efforts that could 
                reduce identified freight data gaps and deficiencies and 
                help improve forecasts of freight transportation demand.

[[Page 126 STAT. 472]]

            ``(2) Consultation.--The Secretary shall consult with 
        Federal, State, and other stakeholders to develop, improve, and 
        implement the tools and collect the data in paragraph (1).

    ``(i) Definition of Aerotropolis Transportation System.--In this 
section, the term `aerotropolis transportation system' means a planned 
and coordinated multimodal freight and passenger transportation network 
that, as determined by the Secretary, provides efficient, cost-
effective, sustainable, and intermodal connectivity to a defined region 
of economic significance centered around a major airport.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by adding at the end the following:

``167. National freight program.''.

SEC. 1116. <<NOTE: 23 USC 167 note.>> PRIORITIZATION OF PROJECTS 
                          TO IMPROVE FREIGHT MOVEMENT.

    (a) <<NOTE: Certification.>> In General.--Notwithstanding section 
120 of title 23, United States Code, the Secretary may increase the 
Federal share payable for any project to 95 percent for projects on the 
Interstate System and 90 percent for any other project if the Secretary 
certifies that the project meets the requirements of this section.

    (b) Increased Funding.--To be eligible for the increased Federal 
funding share under this section, a project shall--
            (1) demonstrate the improvement made by the project to the 
        efficient movement of freight, including making progress towards 
        meeting performance targets for freight movement established 
        under section 150(d) of title 23, United States Code; and
            (2) be identified in a State freight plan developed pursuant 
        to section 1118.

    (c) Eligible Projects.--Eligible projects to improve the movement of 
freight under this section may include, but are not limited to--
            (1) construction, reconstruction, rehabilitation, and 
        operational improvements directly relating to improving freight 
        movement;
            (2) intelligent transportation systems and other technology 
        to improve the flow of freight;
            (3) efforts to reduce the environmental impacts of freight 
        movement on the primary freight network;
            (4) railway-highway grade separation;
            (5) geometric improvements to interchanges and ramps.
            (6) truck-only lanes;
            (7) climbing and runaway truck lanes;
            (8) truck parking facilities eligible for funding under 
        section 1401;
            (9) real-time traffic, truck parking, roadway condition, and 
        multimodal transportation information systems;
            (10) improvements to freight intermodal connectors; and
            (11) improvements to truck bottlenecks.
SEC. 1117. <<NOTE: 23 USC 167 note.>> STATE FREIGHT ADVISORY 
                          COMMITTEES.

    (a) In General.--The Secretary shall encourage each State to 
establish a freight advisory committee consisting of a representative 
cross-section of public and private sector freight stakeholders, 
including representatives of ports, shippers, carriers, freight-related

[[Page 126 STAT. 473]]

associations, the freight industry workforce, the transportation 
department of the State, and local governments.
    (b) Role of Committee.--A freight advisory committee of a State 
described in subsection (a) shall--
            (1) advise the State on freight-related priorities, issues, 
        projects, and funding needs;
            (2) serve as a forum for discussion for State transportation 
        decisions affecting freight mobility;
            (3) communicate and coordinate regional priorities with 
        other organizations;
            (4) promote the sharing of information between the private 
        and public sectors on freight issues; and
            (5) participate in the development of the freight plan of 
        the State described in section 1118.
SEC. 1118. <<NOTE: 23 USC 167 note.>> STATE FREIGHT PLANS.

    (a) In General.--The Secretary shall encourage each State to develop 
a freight plan that provides a comprehensive plan for the immediate and 
long-range planning activities and investments of the State with respect 
to freight.
    (b) Plan Contents.--A freight plan described in subsection (a) shall 
include, at a minimum--
            (1) an identification of significant freight system trends, 
        needs, and issues with respect to the State;
            (2) a description of the freight policies, strategies, and 
        performance measures that will guide the freight-related 
        transportation investment decisions of the State;
            (3) a description of how the plan will improve the ability 
        of the State to meet the national freight goals established 
        under section 167 of title 23, United States Code;
            (4) evidence of consideration of innovative technologies and 
        operational strategies, including intelligent transportation 
        systems, that improve the safety and efficiency of freight 
        movement;
            (5) in the case of routes on which travel by heavy vehicles 
        (including mining, agricultural, energy cargo or equipment, and 
        timber vehicles) is projected to substantially deteriorate the 
        condition of roadways, a description of improvements that may be 
        required to reduce or impede the deterioration; and
            (6) an inventory of facilities with freight mobility issues, 
        such as truck bottlenecks, within the State, and a description 
        of the strategies the State is employing to address those 
        freight mobility issues.

    (c) Relationship to Long-range Plan.--A freight plan described in 
subsection (a) may be developed separate from or incorporated into the 
statewide strategic long-range transportation plan required by section 
135 of title 23, United States Code.
SEC. 1119. FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS.

    (a) In General.--Chapter 2 of title 23, United States Code, is 
amended by striking sections 201 through 204 and inserting the 
following:
``Sec. 201. Federal lands and tribal transportation programs

    ``(a) <<NOTE: Coordination.>> Purpose.--Recognizing the need for all 
public Federal and tribal transportation facilities to be treated under 
uniform policies similar to the policies that apply to Federal-aid 
highways and

[[Page 126 STAT. 474]]

other public transportation facilities, the Secretary of Transportation, 
in collaboration with the Secretaries of the appropriate Federal land 
management agencies, shall coordinate a uniform policy for all public 
Federal and tribal transportation facilities that shall apply to Federal 
lands transportation facilities, tribal transportation facilities, and 
Federal lands access transportation facilities.

    ``(b) Availability of Funds.--
            ``(1) Availability.--Funds authorized for the tribal 
        transportation program, the Federal lands transportation 
        program, and the Federal lands access program shall be available 
        for contract upon apportionment, or on October 1 of the fiscal 
        year for which the funds were authorized if no apportionment is 
        required.
            ``(2) Amount remaining.--Any amount remaining unexpended for 
        a period of 3 years after the close of the fiscal year for which 
        the funds were authorized shall lapse.
            ``(3) Obligations.--The Secretary of the department 
        responsible for the administration of funds under this 
        subsection may incur obligations, approve projects, and enter 
        into contracts under such authorizations, which shall be 
        considered to be contractual obligations of the United States 
        for the payment of the cost thereof, the funds of which shall be 
        considered to have been expended when obligated.
            ``(4) Expenditure.--
                    ``(A) In general.--Any funds authorized for any 
                fiscal year after the date of enactment of this section 
                under the Federal lands transportation program, the 
                Federal lands access program, and the tribal 
                transportation program shall be considered to have been 
                expended if a sum equal to the total of the sums 
                authorized for the fiscal year and previous fiscal years 
                have been obligated.
                    ``(B) Credited funds.--Any funds described in 
                subparagraph (A) that are released by payment of final 
                voucher or modification of project authorizations shall 
                be--
                          ``(i) credited to the balance of unobligated 
                      authorizations; and
                          ``(ii) immediately available for expenditure.
            ``(5) Applicability.--This section shall not apply to funds 
        authorized before the date of enactment of this paragraph.
            ``(6) Contractual obligation.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law (including regulations), the 
                authorization by the Secretary, or the Secretary of the 
                appropriate Federal land management agency if the agency 
                is the contracting office, of engineering and related 
                work for the development, design, and acquisition 
                associated with a construction project, whether 
                performed by contract or agreement authorized by law, or 
                the approval by the Secretary of plans, specifications, 
                and estimates for construction of a project, shall be 
                considered to constitute a contractual obligation of the 
                Federal Government to pay the total eligible cost of--
                          ``(i) any project funded under this title; and
                          ``(ii) any project funded pursuant to 
                      agreements authorized by this title or any other 
                      title.
                    ``(B) Effect.--Nothing in this paragraph--

[[Page 126 STAT. 475]]

                          ``(i) affects the application of the Federal 
                      share associated with the project being undertaken 
                      under this section; or
                          ``(ii) modifies the point of obligation 
                      associated with Federal salaries and expenses.
            ``(7) Federal share.--
                    ``(A) Tribal and federal lands transportation 
                program.--The Federal share of the cost of a project 
                carried out under the Federal lands transportation 
                program or the tribal transportation program shall be 
                100 percent.
                    ``(B) Federal lands access program.--The Federal 
                share of the cost of a project carried out under the 
                Federal lands access program shall be determined in 
                accordance with section 120.

    ``(c) Transportation Planning.--
            ``(1) Transportation planning procedures.--In consultation 
        with the Secretary of each appropriate Federal land management 
        agency, the Secretary shall implement transportation planning 
        procedures for Federal lands and tribal transportation 
        facilities that are consistent with the planning processes 
        required under sections 134 and 135.
            ``(2) Approval of transportation improvement program.--The 
        transportation improvement program developed as a part of the 
        transportation planning process under this section shall be 
        approved by the Secretary.
            ``(3) Inclusion in other plans.--Each regionally significant 
        tribal transportation program, Federal lands transportation 
        program, and Federal lands access program project shall be--
                    ``(A) developed in cooperation with State and 
                metropolitan planning organizations; and
                    ``(B) included in appropriate tribal transportation 
                program plans, Federal lands transportation program 
                plans, Federal lands access program plans, State and 
                metropolitan plans, and transportation improvement 
                programs.
            ``(4) Inclusion in state programs.--The approved tribal 
        transportation program, Federal lands transportation program, 
        and Federal lands access program transportation improvement 
        programs shall be included in appropriate State and metropolitan 
        planning organization plans and programs without further action 
        on the transportation improvement program.
            ``(5) Asset management.--The Secretary and the Secretary of 
        each appropriate Federal land management agency shall, to the 
        extent appropriate, implement safety, bridge, pavement, and 
        congestion management systems for facilities funded under the 
        tribal transportation program and the Federal lands 
        transportation program in support of asset management.
            ``(6) Data collection.--
                    ``(A) Data collection.--The Secretaries of the 
                appropriate Federal land management agencies shall 
                collect and report data necessary to implement the 
                Federal lands transportation program, the Federal lands 
                access program, and the tribal transportation program in 
                accordance with the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450 et seq.), 
                including--

[[Page 126 STAT. 476]]

                          ``(i) inventory and condition information on 
                      Federal lands transportation facilities and tribal 
                      transportation facilities; and
                          ``(ii) bridge inspection and inventory 
                      information on any Federal bridge open to the 
                      public.
                    ``(B) Standards.--The Secretary, in coordination 
                with the Secretaries of the appropriate Federal land 
                management agencies, shall define the collection and 
                reporting data standards.
            ``(7) Administrative expenses.--To implement the activities 
        described in this subsection, including direct support of 
        transportation planning activities among Federal land management 
        agencies, the Secretary may use not more than 5 percent for each 
        fiscal year of the funds authorized for programs under sections 
        203 and 204.

    ``(d) Reimbursable Agreements.--In carrying out work under 
reimbursable agreements with any State, local, or tribal government 
under this title, the Secretary--
            ``(1) may, without regard to any other provision of law 
        (including regulations), record obligations against accounts 
        receivable from the entity; and
            ``(2) shall credit amounts received from the entity to the 
        appropriate account, which shall occur not later than 90 days 
        after the date of the original request by the Secretary for 
        payment.

    ``(e) Transfers.--
            ``(1) In general.--To enable the efficient use of funds made 
        available for the Federal lands transportation program and the 
        Federal lands access program, the funds may be transferred by 
        the Secretary within and between each program with the 
        concurrence of, as appropriate--
                    ``(A) the Secretary;
                    ``(B) the affected Secretaries of the respective 
                Federal land management agencies;
                    ``(C) State departments of transportation; and
                    ``(D) local government agencies.
            ``(2) Credit.--The funds described in paragraph (1) shall be 
        credited back to the loaning entity with funds that are 
        currently available for obligation at the time of the credit.
``Sec. 202. Tribal transportation program

    ``(a) Use of Funds.--
            ``(1) In general.--Funds made available under the tribal 
        transportation program shall be used by the Secretary of 
        Transportation and the Secretary of the Interior to pay the 
        costs of--
                    ``(A)(i) transportation planning, research, 
                maintenance, engineering, rehabilitation, restoration, 
                construction, and reconstruction of tribal 
                transportation facilities;
                    ``(ii) adjacent vehicular parking areas;
                    ``(iii) interpretive signage;
                    ``(iv) acquisition of necessary scenic easements and 
                scenic or historic sites;
                    ``(v) provisions for pedestrians and bicycles;
                    ``(vi) environmental mitigation in or adjacent to 
                tribal land--

[[Page 126 STAT. 477]]

                          ``(I) to improve public safety and reduce 
                      vehicle-caused wildlife mortality while 
                      maintaining habitat connectivity; and
                          ``(II) to mitigate the damage to wildlife, 
                      aquatic organism passage, habitat, and ecosystem 
                      connectivity, including the costs of constructing, 
                      maintaining, replacing, or removing culverts and 
                      bridges, as appropriate;
                    ``(vii) construction and reconstruction of roadside 
                rest areas, including sanitary and water facilities; and
                    ``(viii) other appropriate public road facilities as 
                determined by the Secretary;
                    ``(B) operation and maintenance of transit programs 
                and facilities that are located on, or provide access 
                to, tribal land, or are administered by a tribal 
                government; and
                    ``(C) any transportation project eligible for 
                assistance under this title that is located within, or 
                that provides access to, tribal land, or is associated 
                with a tribal government.
            ``(2) Contract.--In connection with an activity described in 
        paragraph (1), the Secretary and the Secretary of the Interior 
        may enter into a contract or other appropriate agreement with 
        respect to the activity with--
                    ``(A) a State (including a political subdivision of 
                a State); or
                    ``(B) an Indian tribe.
            ``(3) Indian labor.--Indian labor may be employed, 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).
            ``(4) Federal employment.--No maximum limitation on Federal 
        employment shall be applicable to the construction or 
        improvement of tribal transportation facilities.
            ``(5) Funds for construction and improvement.--All funds 
        made available for the construction and improvement of tribal 
        transportation facilities shall be administered in conformity 
        with regulations and agreements jointly approved by the 
        Secretary and the Secretary of the Interior.
            ``(6) Administrative expenses.--Of the funds authorized to 
        be appropriated for the tribal transportation program, not more 
        than 6 percent may be used by the Secretary or the Secretary of 
        the Interior for program management and oversight and project-
        related administrative expenses.
            ``(7) Tribal technical assistance centers.--The Secretary of 
        the Interior may reserve amounts from administrative funds of 
        the Bureau of Indian Affairs that are associated with the tribal 
        transportation program to fund tribal technical assistance 
        centers under section 504(b).
            ``(8) Maintenance.--
                    ``(A) Use of funds.--Notwithstanding any other 
                provision of this title, of the amount of funds 
                allocated to an Indian tribe from the tribal 
                transportation program, for the purpose of maintenance 
                (excluding road sealing, which shall not be subject to 
                any limitation), the Secretary shall not use an amount 
                more than the greater of--
                          ``(i) an amount equal to 25 percent; or

[[Page 126 STAT. 478]]

                          ``(ii) $500,000.
                    ``(B) Responsibility of bureau of indian affairs and 
                secretary of the interior.--
                          ``(i) Bureau of indian affairs.--The Bureau of 
                      Indian Affairs shall retain primary 
                      responsibility, including annual funding request 
                      responsibility, for Bureau of Indian Affairs road 
                      maintenance programs on Indian reservations.
                          ``(ii) Secretary of the interior.--The 
                      Secretary of the Interior shall ensure that 
                      funding made available under this subsection for 
                      maintenance of tribal transportation facilities 
                      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.
                    ``(C) Tribal-state road maintenance agreements.--
                          ``(i) In general.--An Indian tribe and a State 
                      may enter into a road maintenance agreement under 
                      which an Indian tribe shall assume the 
                      responsibility of the State for--
                                    ``(I) tribal transportation 
                                facilities; and
                                    ``(II) roads providing access to 
                                tribal transportation facilities.
                          ``(ii) Requirements.--Agreements entered into 
                      under clause (i) shall--
                                    ``(I) be negotiated between the 
                                State and the Indian tribe; and
                                    ``(II) not require the approval of 
                                the Secretary.
            ``(9) Cooperation.--
                    ``(A) In general.--The cooperation of States, 
                counties, or other local subdivisions may be accepted in 
                construction and improvement.
                    ``(B) Funds received.--Any funds received from a 
                State, county, or local subdivision shall be credited to 
                appropriations available for the tribal transportation 
                program.
            ``(10) Competitive bidding.--
                    ``(A) Construction.--
                          ``(i) In general.--Subject to clause (ii) and 
                      subparagraph (B), construction of each project 
                      shall be performed by contract awarded by 
                      competitive bidding.
                          ``(ii) Exception.--Clause (i) shall not apply 
                      if the Secretary or the Secretary of the Interior 
                      affirmatively finds that, under the circumstances 
                      relating to the project, a different method is in 
                      the public interest.
                    ``(B) Applicability.--Notwithstanding subparagraph 
                (A), section 23 of the Act of June 25, 1910 (25 U.S.C. 
                47) and section 7(b) of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 450e(b)) shall 
                apply to all funds administered by the Secretary of the 
                Interior that are appropriated for the construction and 
                improvement of tribal transportation facilities.

    ``(b) Funds Distribution.--
            ``(1) National tribal transportation facility inventory.--

[[Page 126 STAT. 479]]

                    ``(A) In general.--The Secretary of the Interior, in 
                cooperation with the Secretary, shall maintain a 
                comprehensive national inventory of tribal 
                transportation facilities that are eligible for 
                assistance under the tribal transportation program.
                    ``(B) Transportation facilities included in the 
                inventory.--For purposes of identifying the tribal 
                transportation system and determining the relative 
                transportation needs among Indian tribes, the Secretary 
                shall include, at a minimum, transportation facilities 
                that are eligible for assistance under the tribal 
                transportation program that an Indian tribe has 
                requested, including facilities that--
                          ``(i) were included in the Bureau of Indian 
                      Affairs system inventory prior to October 1, 2004;
                          ``(ii) are owned by an Indian tribal 
                      government;
                          ``(iii) are owned by the Bureau of Indian 
                      Affairs;
                          ``(iv) were constructed or reconstructed with 
                      funds from the Highway Trust Fund under the Indian 
                      reservation roads program since 1983;
                          ``(v) are public roads or bridges within the 
                      exterior boundary of Indian reservations, Alaska 
                      Native villages, and other recognized Indian 
                      communities (including communities in former 
                      Indian reservations in the State of Oklahoma) in 
                      which the majority of residents are American 
                      Indians or Alaska Natives;
                          ``(vi) are public roads within or providing 
                      access to an Indian reservation or Indian trust 
                      land or restricted Indian land that is not subject 
                      to fee title alienation without the approval of 
                      the Federal Government, or Indian or Alaska Native 
                      villages, groups, or communities in which Indians 
                      and Alaska Natives reside, whom the Secretary of 
                      the Interior has determined are eligible for 
                      services generally available to Indians under 
                      Federal laws specifically applicable to Indians; 
                      or
                          ``(vii) are primary access routes proposed by 
                      tribal governments, including roads between 
                      villages, roads to landfills, roads to drinking 
                      water sources, roads to natural resources 
                      identified for economic development, and roads 
                      that provide access to intermodal terminals, such 
                      as airports, harbors, or boat landings.
                    ``(C) Limitation on primary access routes.--For 
                purposes of this paragraph, a proposed primary access 
                route is the shortest practicable route connecting 2 
                points of the proposed route.
                    ``(D) Additional facilities.--Nothing in this 
                paragraph precludes the Secretary from including 
                additional transportation facilities that are eligible 
                for funding under the tribal transportation program in 
                the inventory used for the national funding allocation 
                if such additional facilities are included in the 
                inventory in a uniform and consistent manner nationally.
                    ``(E) Bridges.--All bridges in the inventory shall 
                be recorded in the national bridge inventory 
                administered by the Secretary under section 144.

[[Page 126 STAT. 480]]

            ``(2) Regulations.--Notwithstanding sections 563(a) and 
        565(a) of title 5, the Secretary of the Interior shall maintain 
        any regulations governing the tribal transportation program.
            ``(3) Basis for funding formula.--
                    ``(A) Basis.--
                          ``(i) In general.--After making the set asides 
                      authorized under subparagraph (C) and subsections 
                      (c), (d), and (e) on October 1 of each fiscal 
                      year, the Secretary shall distribute the remainder 
                      authorized to be appropriated for the tribal 
                      transportation program under this section among 
                      Indian tribes as follows:
                                    ``(I) For fiscal year 2013--
                                            ``(aa) for each Indian 
                                        tribe, 80 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                                    ``(II) For fiscal year 2014--
                                            ``(aa) for each Indian 
                                        tribe, 60 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                                    ``(III) For fiscal year 2015--
                                            ``(aa) for each Indian 
                                        tribe, 40 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                                    ``(IV) For fiscal year 2016 and 
                                thereafter--
                                            ``(aa) for each Indian 
                                        tribe, 20 percent of the total 
                                        relative need distribution 
                                        factor and population adjustment 
                                        factor for the fiscal year 2011 
                                        funding amount made available to 
                                        that Indian tribe; and
                                            ``(bb) the remainder using 
                                        tribal shares as described in 
                                        subparagraphs (B) and (C).
                          ``(ii) Tribal high priority projects.--The 
                      High Priority Projects program as included in the 
                      Tribal Transportation Allocation Methodology of 
                      part 170 of title 25, Code of Federal Regulations 
                      (as in effect on the date of enactment of the MAP-
                      21), shall not continue in effect.
                    ``(B) Tribal shares.--Tribal shares under this 
                program shall be determined using the national tribal 
                transportation facility inventory as calculated for 
                fiscal year 2012, and the most recent data on American 
                Indian and Alaska Native population within each Indian 
                tribe's American Indian/Alaska Native Reservation or 
                Statistical Area, as computed under the Native American 
                Housing Assistance

[[Page 126 STAT. 481]]

                and Self-Determination Act of 1996 (25 U.S.C. 4101 et 
                seq.), in the following manner:
                          ``(i) 27 percent in the ratio that the total 
                      eligible road mileage in each tribe bears to the 
                      total eligible road mileage of all American 
                      Indians and Alaskan Natives. For the purposes of 
                      this calculation, eligible road mileage shall be 
                      computed based on the inventory described in 
                      paragraph (1), using only facilities included in 
                      the inventory described in clause (i), (ii), or 
                      (iii) of paragraph (1)(B).
                          ``(ii) 39 percent in the ratio that the total 
                      population in each tribe bears to the total 
                      population of all American Indians and Alaskan 
                      Natives.
                          ``(iii) 34 percent shall be divided equally 
                      among each Bureau of Indian Affairs region. Within 
                      each region, such share of funds shall be 
                      distributed to each Indian tribe in the ratio that 
                      the average total relative need distribution 
                      factors and population adjustment factors from 
                      fiscal years 2005 through 2011 for a tribe bears 
                      to the average total of relative need distribution 
                      factors and population adjustment factors for 
                      fiscal years 2005 through 2011 in that region.
                    ``(C) Tribal supplemental funding.--
                          ``(i) Tribal supplemental funding amount.--Of 
                      funds made available for each fiscal year for the 
                      tribal transportation program, the Secretary shall 
                      set aside the following amount for a tribal 
                      supplemental program:
                                    ``(I) If the amount made available 
                                for the tribal transportation program is 
                                less than or equal to $275,000,000, 30 
                                percent of such amount.
                                    ``(II) If the amount made available 
                                for the tribal transportation program 
                                exceeds $275,000,000--
                                            ``(aa) $82,500,000; plus
                                            ``(bb) 12.5 percent of the 
                                        amount made available for the 
                                        tribal transportation program in 
                                        excess of $275,000,000.
                          ``(ii) Tribal supplemental allocation.--The 
                      Secretary shall distribute tribal supplemental 
                      funds as follows:
                                    ``(I) Distribution among regions.--
                                Of the amounts set aside under clause 
                                (i), the Secretary shall distribute to 
                                each region of the Bureau of Indian 
                                Affairs a share of tribal supplemental 
                                funds in proportion to the regional 
                                total of tribal shares based on the 
                                cumulative tribal shares of all Indian 
                                tribes within such region under 
                                subparagraph (B).
                                    ``(II) Distribution within a 
                                region.--Of the amount that a region 
                                receives under subclause (I), the 
                                Secretary shall distribute tribal 
                                supplemental funding among Indian tribes 
                                within such region as follows:
                                            ``(aa) Tribal supplemental 
                                        amounts.--The Secretary shall 
                                        determine-- 
                                        <<NOTE: Determination.>> 
                                                ``(AA) which such Indian 
                                            tribes would be entitled 
                                            under subparagraph (A) to

[[Page 126 STAT. 482]]

                                            receive in a fiscal year 
                                            less funding than they would 
                                            receive in fiscal year 2011 
                                            pursuant to the relative 
                                            need distribution factor and 
                                            population adjustment 
                                            factor, as described in 
                                            subpart C of part 170 of 
                                            title 25, Code of Federal 
                                            Regulations (as in effect on 
                                            the date of enactment of the 
                                            MAP-21); and
                                                ``(BB) the combined 
                                            amount that such Indian 
                                            tribes would be entitled to 
                                            receive in fiscal year 2011 
                                            pursuant to such relative 
                                            need distribution factor and 
                                            population adjustment factor 
                                            in excess of the amount that 
                                            they would be entitled to 
                                            receive in the fiscal year 
                                            under subparagraph (B).
                                            ``(bb) Combined amount.--
                                        Subject to subclause (III), the 
                                        Secretary shall distribute to 
                                        each Indian tribe that meets the 
                                        criteria described in item 
                                        (aa)(AA) a share of funding 
                                        under this subparagraph in 
                                        proportion to the share of the 
                                        combined amount determined under 
                                        item (aa)(BB) attributable to 
                                        such Indian tribe.
                                    ``(III) Ceiling.--An Indian tribe 
                                may not receive under subclause (II) and 
                                based on its tribal share under 
                                subparagraph (A) a combined amount that 
                                exceeds the amount that such Indian 
                                tribe would be entitled to receive in 
                                fiscal year 2011 pursuant to the 
                                relative need distribution factor and 
                                population adjustment factor, as 
                                described in subpart C of part 170 of 
                                title 25, Code of Federal Regulations 
                                (as in effect on the date of enactment 
                                of the MAP-21).
                                    ``(IV) Other amounts.--If the amount 
                                made available for a region under 
                                subclause (I) exceeds the amount 
                                distributed among Indian tribes within 
                                that region under subclause (II), the 
                                Secretary shall distribute the remainder 
                                of such region's funding under such 
                                subclause among all Indian tribes in 
                                that region in proportion to the 
                                combined amount that each such Indian 
                                tribe received under subparagraph (A) 
                                and subclauses (I), (II), and (III).]
            ``(4) Transferred funds.--
                    ``(A) <<NOTE: Deadline.>> 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 made 
                available for immediate use by, eligible Indian tribes, 
                in accordance with the formula for distribution of funds 
                under the tribal transportation program.
                    ``(B) Use of funds.--Notwithstanding any other 
                provision of this section, funds made available to 
                Indian tribes for tribal transportation facilities shall 
                be expended on projects identified in a transportation 
                improvement program approved by the Secretary.

[[Page 126 STAT. 483]]

            ``(5) Health and safety assurances.--Notwithstanding any 
        other provision of law, an Indian tribal government may approve 
        plans, specifications, and estimates and commence road and 
        bridge construction with funds made available from the tribal 
        transportation program through a contract or agreement under 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450 et seq.), if the Indian tribal government--
                    ``(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 State-licensed civil engineer 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 (A) to the Deputy Assistant Secretary for 
                Tribal Government Affairs, Department of Transportation, 
                or the Assistant Secretary for Indian Affairs, 
                Department of the Interior, as appropriate.
            ``(6) Contracts and agreements with indian tribes.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law or any interagency agreement, program 
                guideline, manual, or policy directive, all funds made 
                available through the Secretary of the Interior under 
                this chapter and section 125(e) for tribal 
                transportation facilities to pay for the costs of 
                programs, services, functions, and activities, or 
                portions of programs, services, functions, or 
                activities, that are specifically or functionally 
                related to the cost of planning, research, engineering, 
                and construction of any tribal transportation facility 
                shall be made available, upon request of the Indian 
                tribal government, to the Indian tribal government for 
                contracts and agreements for such planning, research, 
                engineering, and construction in accordance with Indian 
                Self-Determination and Education Assistance Act (25 
                U.S.C. 450 et seq.).
                    ``(B) Exclusion of agency participation.--All funds, 
                including contract support costs, for programs, 
                functions, services, or activities, or portions of 
                programs, services, functions, or activities, including 
                supportive administrative functions that are otherwise 
                contractible to which subparagraph (A) applies, shall be 
                paid in accordance with subparagraph (A), without regard 
                to the organizational level at which the Department of 
                the Interior has previously carried out such programs, 
                functions, services, or activities.
            ``(7) Contracts and agreements with indian tribes.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law or any interagency agreement, program 
                guideline, manual, or policy directive, all funds made 
                available to an Indian tribal government under this 
                chapter for a tribal transportation facility program or 
                project shall be made available, on the request of the 
                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. 450 et seq.), contracts and agreements 
                for the planning, research, design, engineering, 
                construction, and maintenance relating to the program or 
                project.

[[Page 126 STAT. 484]]

                    ``(B) Exclusion of agency participation.--In 
                accordance with subparagraph (A), all funds, including 
                contract support costs, for a program or project to 
                which subparagraph (A) applies shall be paid to the 
                Indian tribal government without regard to the 
                organizational level at which the Department of the 
                Interior has previously carried out, or the Department 
                of Transportation has previously carried out under the 
                tribal transportation program, the programs, functions, 
                services, or activities involved.
                    ``(C) Consortia.--Two or more Indian tribes that are 
                otherwise eligible to participate in a program or 
                project to which this chapter applies may form a 
                consortium to be considered as a single Indian tribe for 
                the purpose of participating in the project under this 
                section.
                    ``(D) Secretary as signatory.--Notwithstanding any 
                other provision of law, the Secretary is authorized to 
                enter into a funding agreement with an Indian tribal 
                government to carry out a tribal transportation facility 
                program or project under subparagraph (A) that is 
                located on an Indian reservation or provides access to 
                the reservation or a community of the Indian tribe.
                    ``(E) Funding.--The amount an Indian tribal 
                government receives for a program or project under 
                subparagraph (A) shall equal the sum of the funding that 
                the Indian tribal government would otherwise receive for 
                the program or project in accordance with the funding 
                formula established under this subsection and such 
                additional amounts as the Secretary determines equal the 
                amounts that would have been withheld for the costs of 
                the Bureau of Indian Affairs for administration of the 
                program or project.
                    ``(F) Eligibility.--
                          ``(i) In general.--Subject to clause (ii) and 
                      the approval of the Secretary, funds may be made 
                      available under subparagraph (A) to an Indian 
                      tribal government for a program or project in a 
                      fiscal year only if the Indian tribal government 
                      requesting such funds demonstrates to the 
                      satisfaction of the Secretary financial stability 
                      and financial management capability during the 3 
                      fiscal years immediately preceding the fiscal year 
                      for which the request is being made.
                          ``(ii) Considerations.--An Indian tribal 
                      government that had no uncorrected significant and 
                      material audit exceptions in the required annual 
                      audit of the contracts or self-governance funding 
                      agreements made by the Indian tribe with any 
                      Federal agency under the Indian Self-Determination 
                      and Education Assistance Act (25 U.S.C. 450 et 
                      seq.) during the 3-fiscal year period referred in 
                      clause (i) shall be conclusive evidence of the 
                      financial stability and financial management 
                      capability of the Indian tribe for purposes of 
                      clause (i).
                    ``(G) Assumption of functions and duties.--An Indian 
                tribal government receiving funding under subparagraph 
                (A) for a program or project shall assume all functions 
                and duties that the Secretary of the Interior would have 
                performed with respect to a program or project under 
                this chapter, other than those functions and duties that

[[Page 126 STAT. 485]]

                inherently cannot be legally transferred under the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450 et seq.).
                    ``(H) Powers.--An Indian tribal government receiving 
                funding under subparagraph (A) for a program or project 
                shall have all powers that the Secretary of the Interior 
                would have exercised in administering the funds 
                transferred to the Indian tribal government for such 
                program or project under this section if the funds had 
                not been transferred, except to the extent that such 
                powers are powers that inherently cannot be legally 
                transferred under the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450 et seq.).
                    ``(I) Dispute resolution.--In the event of a 
                disagreement between the Secretary or the Secretary of 
                the Interior and an Indian tribe over whether a 
                particular function, duty, or power may be lawfully 
                transferred to the Indian tribe under the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450 et seq.), the Indian tribe shall have the right to 
                pursue all alternative dispute resolution and appeal 
                procedures authorized by that Act, including regulations 
                issued to carry out the Act.
                    ``(J) Termination of contract or agreement.--On the 
                date of the termination of a contract or agreement under 
                this section by an Indian tribal government, the 
                Secretary shall transfer all funds that would have been 
                allocated to the Indian tribal government under the 
                contract or agreement to the Secretary of the Interior 
                to provide continued transportation services in 
                accordance with applicable law.

    ``(c) Planning.--
            ``(1) In general.--For each fiscal year, not more than 2 
        percent of the funds made available for the tribal 
        transportation program shall be allocated among Indian tribal 
        governments that apply for transportation planning pursuant to 
        the Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450 et seq.).
            ``(2) Requirement.--An Indian tribal government, in 
        cooperation with the Secretary of the Interior and, as 
        appropriate, with a State, local government, or metropolitan 
        planning organization, shall carry out a transportation planning 
        process in accordance with section 201(c).
            ``(3) Selection and approval of projects.--A project funded 
        under this section shall be--
                    ``(A) selected by the Indian tribal government from 
                the transportation improvement program; and
                    ``(B) subject to the approval of the Secretary of 
                the Interior and the Secretary.

    ``(d) Tribal Transportation Facility Bridges.--
            ``(1) Nationwide priority program.--The Secretary shall 
        maintain a nationwide priority program for improving deficient 
        bridges eligible for the tribal transportation program.
            ``(2) Funding.--Before making any distribution under 
        subsection (b), the Secretary shall set aside not more than 2 
        percent of the funds made available under the tribal 
        transportation program for each fiscal year to be allocated--

[[Page 126 STAT. 486]]

                    ``(A) to carry out any planning, design, 
                engineering, preconstruction, construction, and 
                inspection of a project to replace, rehabilitate, 
                seismically retrofit, paint, apply calcium magnesium 
                acetate, sodium acetate/formate, or other 
                environmentally acceptable, minimally corrosive anti-
                icing and deicing composition; or
                    ``(B) to implement any countermeasure for deficient 
                tribal transportation facility bridges, including 
                multiple-pipe culverts.
            ``(3) Eligible bridges.--To be eligible to receive funding 
        under this subsection, a bridge described in paragraph (1) 
        shall--
                    ``(A) have an opening of not less than 20 feet;
                    ``(B) be classified as a tribal transportation 
                facility; and
                    ``(C) be structurally deficient or functionally 
                obsolete.
            ``(4) Approval requirement.--The Secretary may make funds 
        available under this subsection for preliminary engineering, 
        construction, and construction engineering activities after 
        approval of required documentation and verification of 
        eligibility in accordance with this title.

    ``(e) Safety.--
            ``(1) Funding.--Before making any distribution under 
        subsection (b), the Secretary shall set aside not more than 2 
        percent of the funds made available under the tribal 
        transportation program for each fiscal year to be allocated 
        based on an identification and analysis of highway safety issues 
        and opportunities on tribal land, as determined by the 
        Secretary, on application of the Indian tribal governments for 
        eligible projects described in section 148(a)(4).
            ``(2) Project selection.--An Indian tribal government, in 
        cooperation with the Secretary of the Interior and, as 
        appropriate, with a State, local government, or metropolitan 
        planning organization, shall select projects from the 
        transportation improvement program, subject to the approval of 
        the Secretary and the Secretary of the Interior.

    ``(f) Federal-aid Eligible Projects.--Before approving as a project 
on a tribal transportation facility any project eligible for funds 
apportioned under section 104 in a State, the Secretary shall, for 
projects on tribal transportation facilities, determine that the 
obligation of funds for the project is supplementary to and not in lieu 
of the obligation of a fair and equitable share of funds apportioned to 
the State under section 104.
``Sec. 203. Federal lands transportation program

    ``(a) Use of Funds.--
            ``(1) In general.--Funds made available under the Federal 
        lands transportation program shall be used by the Secretary of 
        Transportation and the Secretary of the appropriate Federal land 
        management agency to pay the costs of--
                    ``(A) program administration, transportation 
                planning, research, preventive maintenance, engineering, 
                rehabilitation, restoration, construction, and 
                reconstruction of Federal lands transportation 
                facilities, and--
                          ``(i) adjacent vehicular parking areas;
                          ``(ii) acquisition of necessary scenic 
                      easements and scenic or historic sites;

[[Page 126 STAT. 487]]

                          ``(iii) provision for pedestrians and 
                      bicycles;
                          ``(iv) environmental mitigation in or adjacent 
                      to Federal land open to the public--
                                    ``(I) to improve public safety and 
                                reduce vehicle-caused wildlife mortality 
                                while maintaining habitat connectivity; 
                                and
                                    ``(II) to mitigate the damage to 
                                wildlife, aquatic organism passage, 
                                habitat, and ecosystem connectivity, 
                                including the costs of constructing, 
                                maintaining, replacing, or removing 
                                culverts and bridges, as appropriate;
                          ``(v) construction and reconstruction of 
                      roadside rest areas, including sanitary and water 
                      facilities;
                          ``(vi) congestion mitigation; and
                          ``(vii) other appropriate public road 
                      facilities, as determined by the Secretary;
                    ``(B) operation and maintenance of transit 
                facilities;
                    ``(C) any transportation project eligible for 
                assistance under this title that is on a public road 
                within or adjacent to, or that provides access to, 
                Federal lands open to the public; and
                    ``(D) not more $10,000,000 of the amounts made 
                available per fiscal year to carry out this section for 
                activities eligible under subparagraph (A)(iv).
            ``(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 
        contract or other appropriate agreement with respect to the 
        activity with--
                    ``(A) a State (including a political subdivision of 
                a State); or
                    ``(B) an Indian tribe.
            ``(3) Administration.--All appropriations for the 
        construction and improvement of Federal lands transportation 
        facilities shall be administered in conformity with regulations 
        and agreements jointly approved by the Secretary and the 
        Secretary of the appropriate Federal land managing agency.
            ``(4) Cooperation.--
                    ``(A) In general.--The cooperation of States, 
                counties, or other local subdivisions may be accepted in 
                construction and improvement.
                    ``(B) Funds received.--Any funds received from a 
                State, county, or local subdivision shall be credited to 
                appropriations available for the class of Federal lands 
                transportation facilities to which the funds were 
                contributed.
            ``(5) Competitive bidding.--
                    ``(A) In general.--Subject to subparagraph (B), 
                construction of each project shall be performed by 
                contract awarded by competitive bidding.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the Secretary or the Secretary of the appropriate 
                Federal land management agency affirmatively finds that, 
                under the circumstances relating to the project, a 
                different method is in the public interest.

    ``(b) Agency Program Distributions.--

[[Page 126 STAT. 488]]

            ``(1) <<NOTE: Effective date. Deadlines.>> In general.--On 
        October 1, 2011, and on October 1 of each fiscal year 
        thereafter, the Secretary shall allocate the sums authorized to 
        be appropriated for the fiscal year for the Federal lands 
        transportation program on the basis of applications of need, as 
        determined by the Secretary--
                    ``(A) in consultation with the Secretaries of the 
                applicable Federal land management agencies; and
                    ``(B) in coordination with the transportation plans 
                required under section 201 of the respective 
                transportation systems of--
                          ``(i) the National Park Service;
                          ``(ii) the Forest Service;
                          ``(iii) the United States Fish and Wildlife 
                      Service;
                          ``(iv) the Corps of Engineers; and
                          ``(v) the Bureau of Land Management.
            ``(2) Applications.--
                    ``(A) Requirements.--Each application submitted by a 
                Federal land management agency shall include proposed 
                programs at various potential funding levels, as defined 
                by the Secretary following collaborative discussions 
                with applicable Federal land management agencies.
                    ``(B) Consideration by secretary.--In evaluating an 
                application submitted under subparagraph (A), the 
                Secretary shall consider the extent to which the 
                programs support--
                          ``(i) the transportation goals of--
                                    ``(I) a state of good repair of 
                                transportation facilities;
                                    ``(II) a reduction of bridge 
                                deficiencies, and
                                    ``(III) an improvement of safety;
                          ``(ii) high-use Federal recreational sites or 
                      Federal economic generators; and
                          ``(iii) the resource and asset management 
                      goals of the Secretary of the respective Federal 
                      land management agency.
                    ``(C) Permissive contents.--Applications may include 
                proposed programs the duration of which extend over a 
                multiple-year period to support long-term transportation 
                planning and resource management initiatives.

    ``(c) National Federal Lands Transportation Facility Inventory.--
            ``(1) In general.--The Secretaries of the appropriate 
        Federal land management agencies, in cooperation with the 
        Secretary, shall maintain a comprehensive national inventory of 
        public Federal lands transportation facilities.
            ``(2) Transportation facilities included in the 
        inventories.--To identify the Federal lands transportation 
        system and determine the relative transportation needs among 
        Federal land management agencies, the inventories shall include, 
        at a minimum, facilities that--
                    ``(A) provide access to high-use Federal recreation 
                sites or Federal economic generators, as determined by 
                the Secretary in coordination with the respective 
                Secretaries of the appropriate Federal land management 
                agencies; and
                    ``(B) are owned by 1 of the following agencies:
                          ``(i) The National Park Service.
                          ``(ii) The Forest Service.

[[Page 126 STAT. 489]]

                          ``(iii) The United States Fish and Wildlife 
                      Service.
                          ``(iv) The Bureau of Land Management.
                          ``(v) The Corps of Engineers.
            ``(3) Availability.--The inventories shall be made available 
        to the Secretary.
            ``(4) Updates.--The Secretaries of the appropriate Federal 
        land management agencies shall update the inventories of the 
        appropriate Federal land management agencies, as determined by 
        the Secretary after collaborative discussions with the 
        Secretaries of the appropriate Federal land management agencies.
            ``(5) Review.--A decision to add or remove a facility from 
        the inventory shall not be considered a Federal action for 
        purposes of review under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).

    ``(d) Bicycle Safety.--The Secretary of the appropriate Federal land 
management agency shall prohibit the use of bicycles on each federally 
owned road that has a speed limit of 30 miles per hour or greater and an 
adjacent paved path for use by bicycles within 100 yards of the road 
unless the Secretary determines that the bicycle level of service on 
that roadway is rated B or higher.
``Sec. 204. Federal lands access program

    ``(a) Use of Funds.--
            ``(1) In general.--Funds made available under the Federal 
        lands access program shall be used by the Secretary of 
        Transportation and the Secretary of the appropriate Federal land 
        management agency to pay the cost of--
                    ``(A) transportation planning, research, 
                engineering, preventive maintenance, rehabilitation, 
                restoration, construction, and reconstruction of Federal 
                lands access transportation facilities located on or 
                adjacent to, or that provide access to, Federal land, 
                and--
                          ``(i) adjacent vehicular parking areas;
                          ``(ii) acquisition of necessary scenic 
                      easements and scenic or historic sites;
                          ``(iii) provisions for pedestrians and 
                      bicycles;
                          ``(iv) environmental mitigation in or adjacent 
                      to Federal land to improve public safety and 
                      reduce vehicle-caused wildlife mortality while 
                      maintaining habitat connectivity;
                          ``(v) construction and reconstruction of 
                      roadside rest areas, including sanitary and water 
                      facilities; and
                          ``(vi) other appropriate public road 
                      facilities, as determined by the Secretary;
                    ``(B) operation and maintenance of transit 
                facilities; and
                    ``(C) any transportation project eligible for 
                assistance under this title that is within or adjacent 
                to, or that provides access to, Federal land.
            ``(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 
        contract or other appropriate agreement with respect to the 
        activity with--
                    ``(A) a State (including a political subdivision of 
                a State); or
                    ``(B) an Indian tribe.

[[Page 126 STAT. 490]]

            ``(3) Administration.--All appropriations for the 
        construction and improvement of Federal lands access 
        transportation facilities shall be administered in conformity 
        with regulations and agreements approved by the Secretary.
            ``(4) Cooperation.--
                    ``(A) In general.--The cooperation of States, 
                counties, or other local subdivisions may be accepted in 
                construction and improvement.
                    ``(B) Funds received.--Any funds received from a 
                State, county, or local subdivision for a Federal lands 
                access transportation facility project shall be credited 
                to appropriations available under the Federal lands 
                access program.
            ``(5) Competitive bidding.--
                    ``(A) In general.--Subject to subparagraph (B), 
                construction of each project shall be performed by 
                contract awarded by competitive bidding.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the Secretary or the Secretary of the appropriate 
                Federal land management agency affirmatively finds that, 
                under the circumstances relating to the project, a 
                different method is in the public interest.

    ``(b) Program Distributions.--
            ``(1) In general.--Funding made available to carry out the 
        Federal lands access program shall be allocated among those 
        States that have Federal land, in accordance with the following 
        formula:
                    ``(A) 80 percent of the available funding for use in 
                those States that contain at least 1 \1/2\ percent of 
                the total public land in the United States managed by 
                the agencies described in paragraph (2), to be 
                distributed as follows:
                          ``(i) 30 percent in the ratio that--
                                    ``(I) recreational visitation within 
                                each such State; bears to
                                    ``(II) the recreational visitation 
                                within all such States.
                          ``(ii) 5 percent in the ratio that--
                                    ``(I) the Federal land area within 
                                each such State; bears to
                                    ``(II) the Federal land area in all 
                                such States.
                          ``(iii) 55 percent in the ratio that--
                                    ``(I) the Federal public road miles 
                                within each such State; bears to
                                    ``(II) the Federal public road miles 
                                in all such States.
                          ``(iv) 10 percent in the ratio that--
                                    ``(I) the number of Federal public 
                                bridges within each such State; bears to
                                    ``(II) the number of Federal public 
                                bridges in all such States.
                    ``(B) 20 percent of the available funding for use in 
                those States that do not contain at least 1 \1/2\ 
                percent of the total public land in the United States 
                managed by the agencies described in paragraph (2), to 
                be distributed as follows:
                          ``(i) 30 percent in the ratio that--

[[Page 126 STAT. 491]]

                                    ``(I) recreational visitation within 
                                each such State; bears to
                                    ``(II) the recreational visitation 
                                within all such States.
                          ``(ii) 5 percent in the ratio that--
                                    ``(I) the Federal land area within 
                                each such State; bears to
                                    ``(II) the Federal land area in all 
                                such States.
                          ``(iii) 55 percent in the ratio that--
                                    ``(I) the Federal public road miles 
                                within each such State; bears to
                                    ``(II) the Federal public road miles 
                                in all such States.
                          ``(iv) 10 percent in the ratio that--
                                    ``(I) the number of Federal public 
                                bridges within each such State; bears to
                                    ``(II) the number of Federal public 
                                bridges in all such States.
            ``(2) Data source.--Data necessary to distribute funding 
        under paragraph (1) shall be provided by the following Federal 
        land management agencies:
                    ``(A) The National Park Service.
                    ``(B) The Forest Service.
                    ``(C) The United States Fish and Wildlife Service.
                    ``(D) The Bureau of Land Management.
                    ``(E) The Corps of Engineers.

    ``(c) Programming Decisions Committee.--
            ``(1) In general.--Programming decisions shall be made 
        within each State by a committee comprised of--
                    ``(A) a representative of the Federal Highway 
                Administration;
                    ``(B) a representative of the State Department of 
                Transportation; and
                    ``(C) a representative of any appropriate political 
                subdivision of the State.
            ``(2) Consultation requirement.--The committee described in 
        paragraph (1) shall cooperate with each applicable Federal 
        agency in each State before any joint discussion or final 
        programming decision.
            ``(3) Project preference.--In making a programming decision 
        under paragraph (1), the committee shall give preference to 
        projects that provide access to, are adjacent to, or are located 
        within high-use Federal recreation sites or Federal economic 
        generators, as identified by the Secretaries of the appropriate 
        Federal land management agencies.''.

    (b) <<NOTE: Repeal.>> Public Lands Development Roads and Trails.--
Section 214 of title 23, United States Code, is repealed.

    (c) Conforming Amendments.--
            (1) Chapter 2 analysis.--The analysis for chapter 2 of title 
        23, United States Code, is amended--
                    (A) by striking the items relating to sections 201 
                through 204 and inserting the following:

``201. Federal lands and tribal transportation programs.
``202. Tribal transportation program.
``203. Federal lands transportation program.
``204. Federal lands access program.''; and

                    (B) by striking the item relating to section 214.

[[Page 126 STAT. 492]]

            (2) Definition.--Section 138(a) of title 23, United States 
        Code, is amended in the third sentence by striking ``park road 
        or parkway under section 204 of this title'' and inserting 
        ``Federal lands transportation facility''.
            (3) Rules, regulations, and recommendations.--Section 315 of 
        title 23, United States Code, is amended by striking ``204(f)'' 
        and inserting ``202(a)(5), 203(a)(3),''.
SEC. 1120. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

    Section 1301 of the SAFETEA-LU (23 U.S.C. 101 note; 119 Stat. 1198) 
is amended--
            (1) in subsection (b), by striking ``States'' and inserting 
        ``eligible applicants'';
            (2) in subsection (c), by striking paragraph (3) and 
        inserting the following:
            ``(3) <<NOTE: Deadline.>> Eligible applicant.--The term 
        `eligible applicant' means--
                    ``(A) a State department of transportation or a 
                group of State departments of transportation;
                    ``(B) a tribal government or consortium of tribal 
                governments;
                    ``(C) a transit agency; or
                    ``(D) a multi-State or multi-jurisdictional group of 
                the agencies described in subparagraphs (A) through 
                (C).'';
            (3) in subsection (d)(2), by striking ``75'' and inserting 
        ``50'';
            (4) in subsection (e), by striking ``State'' and inserting 
        ``eligible applicant'';
            (5) in subsection (f)(3) by striking subparagraph (B) and 
        inserting the following:
                    ``(B) improves roadways vital to national energy 
                security; and'';
            (6) in subsection (g)(1) by adding at the end the following:
                    ``(E) Congressional approval.--The Secretary may not 
                issue a letter of intent, enter into a full funding 
                grant agreement under paragraph (2), or make any other 
                obligation or commitment to fund a project under this 
                section if a joint resolution of disapproval is enacted 
                disapproving funding for the project before the last day 
                of the 60-day period described in subparagraph (B).'';
            (7) in subsection (k), by adding at the end the following:
            ``(3) Project selection justifications.--
                    ``(A) <<NOTE: Deadline. Reports.>> In general.--Not 
                later than 30 days after the date on which the Secretary 
                selects a project for funding under this section, 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 that describes the 
                reasons for selecting the project, based on the criteria 
                described in subsection (f).
                    ``(B) Inclusions.--The report submitted under 
                subparagraph (A) shall specify each criteria described 
                in subsection (f) that the project meets.
                    ``(C) <<NOTE: Web posting.>> Availability.--The 
                Secretary shall make available on the website of the 
                Department the report submitted under subparagraph 
                (A).''; and
            (8) by striking subsections (l) and (m) and inserting the 
        following:

[[Page 126 STAT. 493]]

    ``(l) Report.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of the MAP-21, the Secretary shall submit a report to 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives and the Committee on Environment and Public 
        Works of the Senate regarding projects of national and regional 
        significance.
            ``(2) Purpose.--The purpose of the report issued under this 
        subsection shall be to identify projects of national and 
        regional significance that--
                    ``(A) will significantly improve the performance of 
                the Federal-aid highway system, nationally or 
                regionally;
                    ``(B) is able to--
                          ``(i) generate national economic benefits that 
                      reasonably exceed the costs of the projects, 
                      including increased access to jobs, labor, and 
                      other critical economic inputs;
                          ``(ii) reduce long-term congestion, including 
                      impacts in the State, region, and the United 
                      States, and increase speed, reliability, and 
                      accessibility of the movement of people or 
                      freight; and
                          ``(iii) improve transportation safety, 
                      including reducing transportation accidents, and 
                      serious injuries and fatalities; and
                    ``(C) can be supported by an acceptable degree of 
                non-Federal financial commitments.
            ``(3) Contents.--The report issued under this subsection 
        shall include--
                    ``(A) a comprehensive list of each project of 
                national and regional significance that--
                          ``(i) has been complied through a survey of 
                      State departments of transportation; and
                          ``(ii) has been classified by the Secretary as 
                      a project of regional or national significance in 
                      accordance with this section;
                    ``(B) an analysis of the information collected under 
                paragraph (1), including a discussion of the factors 
                supporting each classification of a project as a project 
                of regional or national significance; and
                    ``(C) recommendations on financing for eligible 
                project costs.

    ``(m) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for fiscal year 
2013, to remain available until expended.''.
SEC. 1121. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL 
                          FACILITIES.

    (a) Construction of Ferry Boats and Ferry Terminal Facilities.--
Section 147 of title 23, United States Code, is amended--
            (1) by striking subsections (c) and (d);
            (2) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (3) by inserting after subsection (b) the following:

[[Page 126 STAT. 494]]

    ``(c) Distribution of Funds.--Of the amounts made available to ferry 
systems and public entities responsible for developing ferries under 
this section for a fiscal year, 100 percent shall be allocated in 
accordance with the formula set forth in subsection (d).
    ``(d) Formula.--Of the amounts allocated pursuant to subsection 
(c)--
            ``(1) 20 percent shall be allocated among eligible entities 
        in the proportion that--
                    ``(A) the number of ferry passengers carried by each 
                ferry system in the most recent fiscal year; bears to
                    ``(B) the number of ferry passengers carried by all 
                ferry systems in the most recent fiscal year;
            ``(2) 45 percent shall be allocated among eligible entities 
        in the proportion that--
                    ``(A) the number of vehicles carried by each ferry 
                system in the most recent fiscal year; bears to
                    ``(B) the number of vehicles carried by all ferry 
                systems in the most recent fiscal year; and
            ``(3) 35 percent shall be allocated among eligible entities 
        in the proportion that--
                    ``(A) the total route miles serviced by each ferry 
                system; bears to
                    ``(B) the total route miles serviced by all ferry 
                systems.

    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) to carry out this section $67,000,000 for each of fiscal years 
2013 and 2014.''.
    (b) National Ferry Database.--Section 1801(e) of the SAFETEA-LU (23 
U.S.C. 129 note; Public Law 109-59) is amended--
            (1) in paragraph (2), by inserting ``, including any 
        Federal, State, and local government funding sources,'' after 
        ``sources''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B), the 
                following:
                    ``(C) ensure that the database is consistent with 
                the national transit database maintained by the Federal 
                Transit Administration; and''; and
                    (D) in subparagraph (D) (as redesignated by 
                subparagraph (B)), by striking ``2009'' and inserting 
                ``2014''.
SEC. 1122. TRANSPORTATION ALTERNATIVES.

    (a) In General.--Section 213 of title 23, United States Code, is 
amended to read as follows:
``Sec. 213. Transportation alternatives

    ``(a) Reservation of Funds.--
            ``(1) <<NOTE: Effective dates.>> In general.--On October 1 
        of each of fiscal years 2013 and 2014, the Secretary shall 
        proportionally reserve from the funds apportioned to a State 
        under section 104(b) to carry out the requirements of this 
        section an amount equal to the amount obtained by multiplying 
        the amount determined under paragraph (2) by the ratio that--

[[Page 126 STAT. 495]]

                    ``(A) the amount apportioned to the State for the 
                transportation enhancements program for fiscal year 2009 
                under section 133(d)(2), as in effect on the day before 
                the date of enactment of the MAP-21; bears to
                    ``(B) the total amount of funds apportioned to all 
                States for that fiscal year for the transportation 
                enhancements program for fiscal year 2009.
            ``(2) <<NOTE: Determination.>> Calculation of national 
        amount.--The Secretary shall determine an amount for each fiscal 
        year that is equal to 2 percent of the amounts authorized to be 
        appropriated for such fiscal year from the Highway Trust Fund 
        (other than the Mass Transit Account) to carry out chapters 1, 
        2, 5, and 6 of this title.

    ``(b) Eligible Projects.--A State may obligate the funds reserved 
under this section for any of the following projects or activities:
            ``(1) Transportation alternatives, as defined in section 
        101.
            ``(2) The recreational trails program under section 206.
            ``(3) The safe routes to school program under section 1404 
        of the SAFETEA-LU (23 U.S.C. 402 note; Public Law 109-59).
            ``(4) Planning, designing, or constructing boulevards and 
        other roadways largely in the right-of-way of former Interstate 
        System routes or other divided highways.

    ``(c) Allocations of Funds.--
            ``(1) Calculation.--Of the funds reserved in a State under 
        this section--
                    ``(A) 50 percent for a fiscal year shall be 
                obligated under this section to any eligible entity in 
                proportion to their relative shares of the population of 
                the State--
                          ``(i) in urbanized areas of the State with an 
                      urbanized area population of over 200,000;
                          ``(ii) in areas of the State other than urban 
                      areas with a population greater than 5,000; and
                          ``(iii) in other areas of the State; and
                    ``(B) 50 percent shall be obligated in any area of 
                the State.
            ``(2) Metropolitan areas.--Funds attributed to an urbanized 
        area under paragraph (1)(A)(i) may be obligated in the 
        metropolitan area established under section 134 that encompasses 
        the urbanized area.
            ``(3) Distribution among urbanized areas of over 200,000 
        population.--
                    ``(A) In general.--Except as provided in paragraph 
                (1)(B), the amount of funds that a State is required to 
                obligate under paragraph (1)(A)(i) shall be obligated in 
                urbanized areas described in paragraph (1)(A)(i) based 
                on the relative population of the areas.
                    ``(B) Other factors.--A State may obligate the funds 
                described in subparagraph (A) based on other factors if 
                the State and the relevant metropolitan planning 
                organizations jointly apply to the Secretary for the 
                permission to base the obligation on other factors and 
                the Secretary grants the request.
            ``(4) Access to funds.--
                    ``(A) In general.--Each State or metropolitan 
                planning organization required to obligate funds in 
                accordance with

[[Page 126 STAT. 496]]

                paragraph (1) shall develop a competitive process to 
                allow eligible entities to submit projects for funding 
                that achieve the objectives of this subsection.
                    ``(B) Definition of eligible entity.--In this 
                paragraph, the term `eligible entity' means--
                          ``(i) a local government;
                          ``(ii) a regional transportation authority;
                          ``(iii) a transit agency;
                          ``(iv) a natural resource or public land 
                      agency;
                          ``(v) a school district, local education 
                      agency, or school;
                          ``(vi) a tribal government; and
                          ``(vii) any other local or regional 
                      governmental entity with responsibility for or 
                      oversight of transportation or recreational trails 
                      (other than a metropolitan planning organization 
                      or a State agency) that the State determines to be 
                      eligible, consistent with the goals of this 
                      subsection.
            ``(5) Selection of projects.--For funds reserved in a State 
        under this section and suballocated to a metropolitan planning 
        area under paragraph (1)(A)(i), each such metropolitan planning 
        organization shall select projects carried out within the 
        boundaries of the applicable metropolitan planning area, in 
        consultation with the relevant State.

    ``(d) <<NOTE: Effective date.>> Flexibility of Excess Reserved 
Funding.--Beginning in the second fiscal year after the date of 
enactment of the MAP-21, if on August 1 of that fiscal year the 
unobligated balance of available funds reserved by a State under this 
section exceeds 100 percent of such reserved amount in such fiscal year, 
the State may thereafter obligate the amount of excess funds for any 
activity--
            ``(1) that is eligible to receive funding under this 
        section; or
            ``(2) for which the Secretary has approved the obligation of 
        funds for any State under section 149.

    ``(e) Treatment of Projects.--Notwithstanding any other provision of 
law, projects funded under this section (excluding those carried out 
under subsection (f)) shall be treated as projects on a Federal-aid 
highway under this chapter.
    ``(f) Continuation of Certain Recreational Trails Projects.--Each 
State shall--
            ``(1) obligate an amount of funds reserved under this 
        section equal to the amount of the funds apportioned to the 
        State for fiscal year 2009 under section 104(h)(2) for projects 
        relating to recreational trails under section 206;
            ``(2) return 1 percent of those funds to the Secretary for 
        the administration of that program; and
            ``(3) comply with the provisions of the administration of 
        the recreational trails program under section 206, including the 
        use of apportioned funds described under subsection (d)(3)(A) of 
        that section.

    ``(g) <<NOTE: Notification. Deadline.>> State Flexibility.--A State 
may opt out of the recreational trails program under subsection (f) if 
the Governor of the State notifies the Secretary not later than 30 days 
prior to apportionments being made for any fiscal year.''.

[[Page 126 STAT. 497]]

    (b) Conforming Amendment.--The analysis for chapter 2 of title 23, 
United States Code, is amended by striking the item relating to section 
213 and inserting the following:

``213. Transportation alternatives''.

SEC. 1123. <<NOTE: 23 USC 202 note.>> TRIBAL HIGH PRIORITY 
                          PROJECTS PROGRAM.

    (a) Definitions.--In this section:
            (1) Emergency or disaster.--The term ``emergency or 
        disaster'' means damage to a tribal transportation facility 
        that--
                    (A) renders the tribal transportation facility 
                impassable or unusable;
                    (B) is caused by--
                          (i) a natural disaster over a widespread area; 
                      or
                          (ii) a catastrophic failure from an external 
                      cause; and
                    (C) would be eligible under the emergency relief 
                program under section 125 of title 23, United States 
                Code, but does not meet the funding thresholds required 
                by that section.
            (2) List.--The term ``list'' means the funding priority list 
        developed under subsection (c)(5).
            (3) Program.--The term ``program'' means the Tribal High 
        Priority Projects program established under subsection (b)(1).
            (4) Project.--The term ``project'' means a project provided 
        funds under the program.

    (b) Program.--
            (1) In general.--The Secretary shall use amounts made 
        available under subsection (h) to carry out a Tribal High 
        Priority Projects program under which funds shall be provided to 
        eligible applicants in accordance with this section.
            (2) Eligible applicants.--Applicants eligible for program 
        funds under this section include--
                    (A) an Indian tribe whose annual allocation of 
                funding under section 202 of title 23, United States 
                Code, is insufficient to complete the highest priority 
                project of the Indian tribe;
                    (B) a governmental subdivision of an Indian tribe--
                          (i) that is authorized to administer the 
                      funding of the Indian tribe under section 202 of 
                      title 23, United States Code; and
                          (ii) for which the annual allocation under 
                      that section is insufficient to complete the 
                      highest priority project of the Indian tribe; or
                    (C) any Indian tribe that has an emergency or 
                disaster with respect to a transportation facility 
                included on the national inventory of tribal 
                transportation facilities under section 202(b)(1) of 
                title 23, United States Code.

    (c) Project Applications; Funding.--
            (1) In general.--To apply for funds under this section, an 
        eligible applicant shall submit to the Department of the 
        Interior or the Department an application that includes--
                    (A) project scope of work, including deliverables, 
                budget, and timeline;
                    (B) the amount of funds requested;
                    (C) project information addressing--

[[Page 126 STAT. 498]]

                          (i) the ranking criteria identified in 
                      paragraph (3); or
                          (ii) the nature of the emergency or disaster;
                    (D) documentation that the project meets the 
                definition of a tribal transportation facility and is 
                included in the national inventory of tribal 
                transportation facilities under section 202(b)(1) of 
                title 23, United States Code;
                    (E) documentation of official tribal action 
                requesting the project;
                    (F) documentation from the Indian tribe providing 
                authority for the Secretary of the Interior to place the 
                project on a transportation improvement program if the 
                project is selected and approved; and
                    (G) any other information the Secretary of the 
                Interior or Secretary considers appropriate to make a 
                determination.
            (2) Limitation on applications.--An applicant for funds 
        under the program may only have 1 application for assistance 
        under this section pending at any 1 time, including any 
        emergency or disaster application.
            (3) Application ranking.--
                    (A) <<NOTE: Determination.>> In general.--The 
                Secretary of the Interior and the Secretary shall 
                determine the eligibility of, and fund, program 
                applications, subject to the availability of funds.
                    (B) Ranking criteria.--The project ranking criteria 
                for applications under this section shall include--
                          (i) the existence of safety hazards with 
                      documented fatality and injury accidents;
                          (ii) the number of years since the Indian 
                      tribe last completed a construction project funded 
                      by section 202 of title 23, United States Code;
                          (iii) the readiness of the Indian tribe to 
                      proceed to construction or bridge design need;
                          (iv) the percentage of project costs matched 
                      by funds that are not provided under section 202 
                      of title 23, United States Code, with projects 
                      with a greater percentage of other sources of 
                      matching funds ranked ahead of lesser matches);
                          (v) the amount of funds requested, with 
                      requests for lesser amounts given greater 
                      priority;
                          (vi) the challenges caused by geographic 
                      isolation; and
                          (vii) all weather access for employment, 
                      commerce, health, safety, educational resources, 
                      or housing.
            (4) Project scoring matrix.--The project scoring matrix 
        established in the appendix to part 170 of title 25, Code of 
        Regulations (as in effect on the date of enactment of this Act) 
        shall be used to rank all applications accepted under this 
        section.
            (5) Funding priority list.--
                    (A) In general.--The Secretary of the Interior and 
                the Secretary shall jointly produce a funding priority 
                list that ranks the projects approved for funding under 
                the program.
                    (B) Limitation.--The number of projects on the list 
                shall be limited by the amount of funding made 
                available.

[[Page 126 STAT. 499]]

            (6) Timeline.-- <<NOTE: Notification.>> The Secretary of the 
        Interior and the Secretary shall--
                    (A) require applications for funding no sooner than 
                60 days after funding is made available pursuant to 
                subsection (a);
                    (B) notify all applicants and Regions in writing of 
                acceptance of applications;
                    (C) rank all accepted applications in accordance 
                with the project scoring matrix, develop the funding 
                priority list, and return unaccepted applications to the 
                applicant with an explanation of deficiencies;
                    (D) notify all accepted applicants of the projects 
                included on the funding priority list no later than 180 
                days after the application deadline has passed pursuant 
                to subparagraph (A); and
                    (E) distribute funds to successful applicants.

    (d) Emergency or Disaster Project Applications.--
            (1) In general.--Notwithstanding subsection (c)(6), an 
        eligible applicant may submit an emergency or disaster project 
        application at any time during the fiscal year.
            (2) Consideration as priority.--The Secretary shall--
                    (A) consider project applications submitted under 
                paragraph (1) to be a priority; and
                    (B) fund the project applications in accordance with 
                paragraph (3).
            (3) Funding.--
                    (A) In general.--If an eligible applicant submits an 
                application for a project under this subsection before 
                the issuance of the list under subsection (c)(5) and the 
                project is determined to be eligible for program funds, 
                the Secretary of the Interior shall provide funding for 
                the project before providing funding for other approved 
                projects on the list.
                    (B) Submission after issuance of list.--If an 
                eligible applicant submits an application under this 
                subsection after the issuance of the list under 
                subsection (c)(5) and the distribution of program funds 
                in accordance with the list, the Secretary of the 
                Interior shall provide funding for the project on the 
                date on which unobligated funds provided to projects on 
                the list are returned to the Department of the Interior.
                    (C) Effect on other projects.--If the Secretary of 
                the Interior uses funding previously designated for a 
                project on the list to fund an emergency or disaster 
                project under this subsection, the project on the list 
                that did not receive funding as a result of the 
                redesignation of funds shall move to the top of the list 
                the following year.
            (4) Emergency or disaster project cost.--The cost of a 
        project submitted as an emergency or disaster under this 
        subsection shall be at least 10 percent of the distribution of 
        funds of the Indian tribe under section 202(b) of title 23, 
        United States Code.

    (e) Limitation on Use of Funds.--Program funds shall not be used 
for--
            (1) transportation planning;
            (2) research;
            (3) routine maintenance activities;

[[Page 126 STAT. 500]]

            (4) structures and erosion protection unrelated to 
        transportation and roadways;
            (5) general reservation planning not involving 
        transportation;
            (6) landscaping and irrigation systems not involving 
        transportation programs and projects;
            (7) work performed on projects that are not included on a 
        transportation improvement program approved by the Federal 
        Highway Administration, unless otherwise authorized by the 
        Secretary of the Interior and the Secretary;
            (8) the purchase of equipment unless otherwise authorized by 
        Federal law; or
            (9) the condemnation of land for recreational trails.

    (f) Limitation on Project Amounts.--Project funding shall be limited 
to a maximum of $1,000,000 per application, except that funding for 
disaster or emergency projects shall also be limited to the estimated 
cost of repairing damage to the tribal transportation facility.
    (g) Cost Estimate Certification.--All cost estimates prepared for a 
project shall be required to be submitted by the applicant to the 
Secretary of the Interior and the Secretary for certification and 
approval.
    (h) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated 
        $30,000,000 out of the general fund of the Treasury to carry out 
        the program for each of fiscal years 2013 and 2014.
            (2) Administration.--The funds made available under 
        paragraph (1) shall be administered in the same manner as funds 
        made available for the tribal transportation program under 
        section 202 of title 23, United States Code, except that--
                    (A) the funds made available for the program shall 
                remain available until September 30 of the third fiscal 
                year after the year appropriated; and
                    (B) the Federal share of the cost of a project shall 
                be 100 percent.

                   Subtitle B--Performance Management

SEC. 1201. METROPOLITAN TRANSPORTATION PLANNING.

    (a) In General.--Section 134 of title 23, United States Code, is 
amended to read as follows:
``Sec. 134. Metropolitan transportation planning

    ``(a) Policy.--It is in the national interest--
            ``(1) to encourage and promote the safe and efficient 
        management, operation, and development of surface transportation 
        systems that will serve the mobility needs of people and freight 
        and foster economic growth and development within and between 
        States and urbanized areas, while minimizing transportation-
        related fuel consumption and air pollution through metropolitan 
        and statewide transportation planning processes identified in 
        this chapter; and
            ``(2) to encourage the continued improvement and evolution 
        of the metropolitan and statewide transportation planning 
        processes by metropolitan planning organizations, State 
        departments of transportation, and public transit operators as 
        guided

[[Page 126 STAT. 501]]

        by the planning factors identified in subsection (h) and section 
        135(d).

    ``(b) Definitions.--In this section and section 135, the following 
definitions apply:
            ``(1) Metropolitan planning area.--The term `metropolitan 
        planning area' means the geographic area determined by agreement 
        between the metropolitan planning organization for the area and 
        the Governor under subsection (e).
            ``(2) Metropolitan planning organization.--The term 
        `metropolitan planning organization' means the policy board of 
        an organization established as a result of the designation 
        process under subsection (d).
            ``(3) Nonmetropolitan area.--The term `nonmetropolitan area' 
        means a geographic area outside designated metropolitan planning 
        areas.
            ``(4) Nonmetropolitan local official.--The term 
        `nonmetropolitan local official' means elected and appointed 
        officials of general purpose local government in a 
        nonmetropolitan area with responsibility for transportation.
            ``(5) Regional transportation planning organization.--The 
        term `regional transportation planning organization' means a 
        policy board of an organization established as the result of a 
        designation under section 135(m).
            ``(6) TIP.--The term `TIP' means a transportation 
        improvement program developed by a metropolitan planning 
        organization under subsection (j).
            ``(7) Urbanized area.--The term `urbanized area' means a 
        geographic area with a population of 50,000 or more, as 
        determined by the Bureau of the Census.

    ``(c) General Requirements.--
            ``(1) Development of long-range plans and tips.--To 
        accomplish the objectives in subsection (a), metropolitan 
        planning organizations designated under subsection (d), in 
        cooperation with the State and public transportation operators, 
        shall develop long-range transportation plans and transportation 
        improvement programs through a performance-driven, outcome-based 
        approach to planning for metropolitan areas of the State.
            ``(2) Contents.--The plans and TIPs for each metropolitan 
        area shall provide for the development and integrated management 
        and operation of transportation systems and facilities 
        (including accessible pedestrian walkways and bicycle 
        transportation facilities) that will function as an intermodal 
        transportation system for the metropolitan planning area and as 
        an integral part of an intermodal transportation system for the 
        State and the United States.
            ``(3) Process of development.--The process for developing 
        the plans and TIPs shall provide for consideration of all modes 
        of transportation and shall be continuing, cooperative, and 
        comprehensive to the degree appropriate, based on the complexity 
        of the transportation problems to be addressed.

    ``(d) Designation of Metropolitan Planning Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a metropolitan planning 
        organization shall be designated for each urbanized area with a 
        population of more than 50,000 individuals--

[[Page 126 STAT. 502]]

                    ``(A) by agreement between the Governor and units of 
                general purpose local government that together represent 
                at least 75 percent of the affected population 
                (including the largest incorporated city (based on 
                population) as determined by the Bureau of the Census); 
                or
                    ``(B) in accordance with procedures established by 
                applicable State or local law.
            ``(2) <<NOTE: Deadline.>> Structure.--Not later than 2 years 
        after the date of enactment of MAP-21, each metropolitan 
        planning organization that serves an area designated as a 
        transportation management area shall consist of--
                    ``(A) local elected officials;
                    ``(B) officials of public agencies that administer 
                or operate major modes of transportation in the 
                metropolitan area, including representation by providers 
                of public transportation; and
                    ``(C) appropriate State officials.
            ``(3) Limitation on statutory construction.--Nothing in this 
        subsection shall be construed to interfere with the authority, 
        under any State law in effect on December 18, 1991, of a public 
        agency with multimodal transportation responsibilities--
                    ``(A) to develop the plans and TIPs for adoption by 
                a metropolitan planning organization; and
                    ``(B) to develop long-range capital plans, 
                coordinate transit services and projects, and carry out 
                other activities pursuant to State law.
            ``(4) Continuing designation.--A designation of a 
        metropolitan planning organization under this subsection or any 
        other provision of law shall remain in effect until the 
        metropolitan planning organization is redesignated under 
        paragraph (5).
            ``(5) Redesignation procedures.--
                    ``(A) In general.--A metropolitan planning 
                organization may be redesignated by agreement between 
                the Governor and units of general purpose local 
                government that together represent at least 75 percent 
                of the existing planning area population (including the 
                largest incorporated city (based on population) as 
                determined by the Bureau of the Census) as appropriate 
                to carry out this section.
                    ``(B) Restructuring.--A metropolitan planning 
                organization may be restructured to meet the 
                requirements of paragraph (2) without undertaking a 
                redesignation.
            ``(6) Designation of more than 1 metropolitan planning 
        organization.--More than 1 metropolitan planning organization 
        may be designated within an existing metropolitan planning area 
        only if the Governor and the existing metropolitan planning 
        organization determine that the size and complexity of the 
        existing metropolitan planning area make designation of more 
        than 1 metropolitan planning organization for the area 
        appropriate.

    ``(e) Metropolitan Planning Area Boundaries.--
            ``(1) In general.--For the purposes of this section, the 
        boundaries of a metropolitan planning area shall be determined 
        by agreement between the metropolitan planning organization and 
        the Governor.
            ``(2) <<NOTE: Time period.>> Included area.--Each 
        metropolitan planning area--

[[Page 126 STAT. 503]]

                    ``(A) shall encompass at least the existing 
                urbanized area and the contiguous area expected to 
                become urbanized within a 20-year forecast period for 
                the transportation plan; and
                    ``(B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of the 
                Census.
            ``(3) Identification of new urbanized areas within existing 
        planning area boundaries.--The designation by the Bureau of the 
        Census of new urbanized areas within an existing metropolitan 
        planning area shall not require the redesignation of the 
        existing metropolitan planning organization.
            ``(4) Existing metropolitan planning areas in 
        nonattainment.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                except as provided in subparagraph (B), in the case of 
                an urbanized area designated as a nonattainment area for 
                ozone or carbon monoxide under the Clean Air Act (42 
                U.S.C. 7401 et seq.) as of the date of enactment of the 
                SAFETEA-LU, the boundaries of the metropolitan planning 
                area in existence as of such date of enactment shall be 
                retained.
                    ``(B) Exception.--The boundaries described in 
                subparagraph (A) may be adjusted by agreement of the 
                Governor and affected metropolitan planning 
                organizations in the manner described in subsection 
                (d)(5).
            ``(5) New metropolitan planning areas in nonattainment.--In 
        the case of an urbanized area designated after the date of 
        enactment of the SAFETEA-LU, as a nonattainment area for ozone 
        or carbon monoxide, the boundaries of the metropolitan planning 
        area--
                    ``(A) shall be established in the manner described 
                in subsection (d)(1);
                    ``(B) shall encompass the areas described in 
                paragraph (2)(A);
                    ``(C) may encompass the areas described in paragraph 
                (2)(B); and
                    ``(D) may address any nonattainment area identified 
                under the Clean Air Act (42 U.S.C. 7401 et seq.) for 
                ozone or carbon monoxide.

    ``(f) Coordination in Multistate Areas.--
            ``(1) In general.--The Secretary shall encourage each 
        Governor with responsibility for a portion of a multistate 
        metropolitan area and the appropriate metropolitan planning 
        organizations to provide coordinated transportation planning for 
        the entire metropolitan area.
            ``(2) Interstate compacts.--The consent of Congress is 
        granted to any 2 or more States--
                    ``(A) to enter into agreements or compacts, not in 
                conflict with any law of the United States, for 
                cooperative efforts and mutual assistance in support of 
                activities authorized under this section as the 
                activities pertain to interstate areas and localities 
                within the States; and
                    ``(B) to establish such agencies, joint or 
                otherwise, as the States may determine desirable for 
                making the agreements and compacts effective.

[[Page 126 STAT. 504]]

            ``(3) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(g) MPO Consultation in Plan and TIP Coordination.--
            ``(1) Nonattainment areas.--If more than 1 metropolitan 
        planning organization has authority within a metropolitan area 
        or an area which is designated as a nonattainment area for ozone 
        or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et 
        seq.), each metropolitan planning organization shall consult 
        with the other metropolitan planning organizations designated 
        for such area and the State in the coordination of plans and 
        TIPs required by this section.
            ``(2) Transportation improvements located in multiple 
        mpos.--If a transportation improvement, funded from the Highway 
        Trust Fund or authorized under chapter 53 of title 49, is 
        located within the boundaries of more than 1 metropolitan 
        planning area, the metropolitan planning organizations shall 
        coordinate plans and TIPs regarding the transportation 
        improvement.
            ``(3) Relationship with other planning officials.--
                    ``(A) In general.--The Secretary shall encourage 
                each metropolitan planning organization to consult with 
                officials responsible for other types of planning 
                activities that are affected by transportation in the 
                area (including State and local planned growth, economic 
                development, environmental protection, airport 
                operations, and freight movements) or to coordinate its 
                planning process, to the maximum extent practicable, 
                with such planning activities.
                    ``(B) Requirements.--Under the metropolitan planning 
                process, transportation plans and TIPs shall be 
                developed with due consideration of other related 
                planning activities within the metropolitan area, and 
                the process shall provide for the design and delivery of 
                transportation services within the metropolitan area 
                that are provided by--
                          ``(i) recipients of assistance under chapter 
                      53 of title 49;
                          ``(ii) governmental agencies and nonprofit 
                      organizations (including representatives of the 
                      agencies and organizations) that receive Federal 
                      assistance from a source other than the Department 
                      of Transportation to provide nonemergency 
                      transportation services; and
                          ``(iii) recipients of assistance under section 
                      204.

    ``(h) Scope of Planning Process.--
            ``(1) In general.--The metropolitan planning process for a 
        metropolitan planning area under this section shall provide for 
        consideration of projects and strategies that will--
                    ``(A) support the economic vitality of the 
                metropolitan area, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and for freight;

[[Page 126 STAT. 505]]

                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes, for 
                people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The metropolitan transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of this title and in section 5301(c) 
                of title 49.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each metropolitan 
                                planning organization shall establish 
                                performance targets that address the 
                                performance measures described in 
                                section 150(c), where applicable, to use 
                                in tracking progress towards attainment 
                                of critical outcomes for the region of 
                                the metropolitan planning organization.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a metropolitan 
                                planning organization shall be 
                                coordinated with the relevant State to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--Selection of performance targets by a 
                      metropolitan planning organization shall be 
                      coordinated, to the maximum extent practicable, 
                      with providers of public transportation to ensure 
                      consistency with sections 5326(c) and 5329(d) of 
                      title 49.
                    ``(C) Timing.--Each metropolitan planning 
                organization shall establish the performance targets 
                under subparagraph (B) not later than 180 days after the 
                date on which the relevant State or provider of public 
                transportation establishes the performance targets.
                    ``(D) Integration of other performance-based 
                plans.--A metropolitan planning organization shall 
                integrate in the metropolitan transportation planning 
                process, directly or by reference, the goals, 
                objectives, performance measures, and targets described 
                in other State transportation plans and transportation 
                processes, as well as any plans developed under chapter 
                53 of title 49 by providers of public transportation, 
                required as part of a performance-based program.
            ``(3) Failure to consider factors.--The failure to consider 
        any factor specified in paragraphs (1) and (2) shall not be 
        reviewable by any court under this title or chapter 53

[[Page 126 STAT. 506]]

        of title 49, subchapter II of chapter 5 of title 5, or chapter 7 
        of title 5 in any matter affecting a transportation plan, a TIP, 
        a project or strategy, or the certification of a planning 
        process.

    ``(i) Development of Transportation Plan.--
            ``(1) Requirements.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall prepare and update a transportation 
                plan for its metropolitan planning area in accordance 
                with the requirements of this subsection.
                    ``(B) Frequency.--
                          ``(i) In general.--The metropolitan planning 
                      organization shall prepare and update such plan 
                      every 4 years (or more frequently, if the 
                      metropolitan planning organization elects to 
                      update more frequently) in the case of each of the 
                      following:
                                    ``(I) Any area designated as 
                                nonattainment, as defined in section 
                                107(d) of the Clean Air Act (42 U.S.C. 
                                7407(d)).
                                    ``(II) Any area that was 
                                nonattainment and subsequently 
                                designated to attainment in accordance 
                                with section 107(d)(3) of that Act (42 
                                U.S.C. 7407(d)(3)) and that is subject 
                                to a maintenance plan under section 175A 
                                of that Act (42 U.S.C. 7505a).
                          ``(ii) <<NOTE: Deadline.>> Other areas.--In 
                      the case of any other area required to have a 
                      transportation plan in accordance with the 
                      requirements of this subsection, the metropolitan 
                      planning organization shall prepare and update 
                      such plan every 5 years unless the metropolitan 
                      planning organization elects to update more 
                      frequently.
            ``(2) Transportation plan.--A transportation plan under this 
        section shall be in a form that the Secretary determines to be 
        appropriate and shall contain, at a minimum, the following:
                    ``(A) Identification of transportation facilities.--
                          ``(i) In general.--An identification of 
                      transportation facilities (including major 
                      roadways, transit, multimodal and intermodal 
                      facilities, nonmotorized transportation 
                      facilities, and intermodal connectors) that should 
                      function as an integrated metropolitan 
                      transportation system, giving emphasis to those 
                      facilities that serve important national and 
                      regional transportation functions.
                          ``(ii) Factors.--In formulating the 
                      transportation plan, the metropolitan planning 
                      organization shall consider factors described in 
                      subsection (h) as the factors relate to a 20-year 
                      forecast period.
                    ``(B) Performance measures and targets.--A 
                description of the performance measures and performance 
                targets used in assessing the performance of the 
                transportation system in accordance with subsection 
                (h)(2).
                    ``(C) System performance report.--A system 
                performance report and subsequent updates evaluating the 
                condition and performance of the transportation system 
                with respect to the performance targets described in 
                subsection (h)(2), including--

[[Page 126 STAT. 507]]

                          ``(i) progress achieved by the metropolitan 
                      planning organization in meeting the performance 
                      targets in comparison with system performance 
                      recorded in previous reports; and
                          ``(ii) for metropolitan planning organizations 
                      that voluntarily elect to develop multiple 
                      scenarios, an analysis of how the preferred 
                      scenario has improved the conditions and 
                      performance of the transportation system and how 
                      changes in local policies and investments have 
                      impacted the costs necessary to achieve the 
                      identified performance targets.
                    ``(D) Mitigation activities.--
                          ``(i) In general.--A long-range transportation 
                      plan shall include a discussion of types of 
                      potential environmental mitigation activities and 
                      potential areas to carry out these activities, 
                      including activities that may have the greatest 
                      potential to restore and maintain the 
                      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.
                    ``(E) Financial plan.--
                          ``(i) In general.--A financial plan that--
                                    ``(I) demonstrates how the adopted 
                                transportation plan can be implemented;
                                    ``(II) indicates resources from 
                                public and private sources that are 
                                reasonably expected to be made available 
                                to carry out the plan; and
                                    ``(III) recommends any additional 
                                financing strategies for needed projects 
                                and programs.
                          ``(ii) Inclusions.--The financial plan may 
                      include, for illustrative purposes, additional 
                      projects that would be included in the adopted 
                      transportation plan if reasonable additional 
                      resources beyond those identified in the financial 
                      plan were available.
                          ``(iii) Cooperative development.--For the 
                      purpose of developing the transportation plan, the 
                      metropolitan planning organization, transit 
                      operator, and State shall cooperatively develop 
                      estimates of funds that will be available to 
                      support plan implementation.
                    ``(F) Operational and management strategies.--
                Operational and management strategies to improve the 
                performance of existing transportation facilities to 
                relieve vehicular congestion and maximize the safety and 
                mobility of people and goods.
                    ``(G) Capital investment and other strategies.--
                Capital investment and other strategies to preserve the 
                existing and projected future metropolitan 
                transportation infrastructure and provide for multimodal 
                capacity increases based on regional priorities and 
                needs.
                    ``(H) Transportation and transit enhancement 
                activities.--Proposed transportation and transit 
                enhancement activities.
            ``(3) Coordination with clean air act agencies.--In 
        metropolitan areas that are in nonattainment for ozone or carbon 
        monoxide under the Clean Air Act (42 U.S.C. 7401

[[Page 126 STAT. 508]]

        et seq.), the metropolitan planning organization shall 
        coordinate the development of a transportation plan with the 
        process for development of the transportation control measures 
        of the State implementation plan required by that Act.
            ``(4) Optional scenario development.--
                    ``(A) In general.--A metropolitan planning 
                organization may, while fitting the needs and complexity 
                of its community, voluntarily elect to develop multiple 
                scenarios for consideration as part of the development 
                of the metropolitan transportation plan, in accordance 
                with subparagraph (B).
                    ``(B) Recommended components.--A metropolitan 
                planning organization that chooses to develop multiple 
                scenarios under subparagraph (A) shall be encouraged to 
                consider--
                          ``(i) potential regional investment strategies 
                      for the planning horizon;
                          ``(ii) assumed distribution of population and 
                      employment;
                          ``(iii) a scenario that, to the maximum extent 
                      practicable, maintains baseline conditions for the 
                      performance measures identified in subsection 
                      (h)(2);
                          ``(iv) a scenario that improves the baseline 
                      conditions for as many of the performance measures 
                      identified in subsection (h)(2) as possible;
                          ``(v) revenue constrained scenarios based on 
                      the total revenues expected to be available over 
                      the forecast period of the plan; and
                          ``(vi) estimated costs and potential revenues 
                      available to support each scenario.
                    ``(C) Metrics.--In addition to the performance 
                measures identified in section 150(c), metropolitan 
                planning organizations may evaluate scenarios developed 
                under this paragraph using locally-developed measures.
            ``(5) 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, as 
                appropriate--
                          ``(i) comparison of transportation plans with 
                      State conservation plans or maps, if available; or
                          ``(ii) comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(6) Participation by interested parties.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall provide citizens, affected public 
                agencies, representatives of public transportation 
                employees, freight shippers, providers of freight 
                transportation services, private providers of 
                transportation, representatives of users of public 
                transportation, representatives of users of pedestrian 
                walkways and bicycle transportation facilities, 
                representatives of the disabled, and other interested 
                parties

[[Page 126 STAT. 509]]

                with a reasonable opportunity to comment on the 
                transportation plan.
                    ``(B) Contents of participation plan.--A 
                participation plan--
                          ``(i) shall be developed in consultation with 
                      all interested parties; and
                          ``(ii) shall provide that all interested 
                      parties have reasonable opportunities to comment 
                      on the contents of the transportation plan.
                    ``(C) 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) <<NOTE: Public information.>> make 
                      public information available in electronically 
                      accessible format and means, such as the World 
                      Wide Web, as appropriate to afford reasonable 
                      opportunity for consideration of public 
                      information under subparagraph (A).
            ``(7) <<NOTE: Public information.>> Publication.--A 
        transportation plan involving Federal participation shall be 
        published or otherwise made readily available by the 
        metropolitan planning organization for public review, including 
        (to the maximum extent practicable) in electronically accessible 
        formats and means, such as the World Wide Web, approved by the 
        metropolitan planning organization and submitted for information 
        purposes to the Governor at such times and in such manner as the 
        Secretary shall establish.
            ``(8) Selection of projects from illustrative list.--
        Notwithstanding paragraph (2)(C), a State or metropolitan 
        planning organization shall not be required to select any 
        project from the illustrative list of additional projects 
        included in the financial plan under paragraph (2)(C).

    ``(j) Metropolitan TIP.--
            ``(1) Development.--
                    ``(A) In general.--In cooperation with the State and 
                any affected public transportation operator, the 
                metropolitan planning organization designated for a 
                metropolitan area shall develop a TIP for the 
                metropolitan planning area that--
                          ``(i) contains projects consistent with the 
                      current metropolitan transportation plan;
                          ``(ii) reflects the investment priorities 
                      established in the current metropolitan 
                      transportation plan; and
                          ``(iii) once implemented, is designed to make 
                      progress toward achieving the performance targets 
                      established under subsection (h)(2).
                    ``(B) Opportunity for comment.--In developing the 
                TIP, the metropolitan planning organization, in 
                cooperation with the State and any affected public 
                transportation operator, shall provide an opportunity 
                for participation by interested parties in the 
                development of the program, in accordance with 
                subsection (i)(5).
                    ``(C) Funding estimates.--For the purpose of 
                developing the TIP, the metropolitan planning 
                organization, public transportation agency, and State 
                shall cooperatively

[[Page 126 STAT. 510]]

                develop estimates of funds that are reasonably expected 
                to be available to support program implementation.
                    ``(D) Updating and approval.--The TIP shall be--
                          ``(i) updated at least once every 4 years; and
                          ``(ii) approved by the metropolitan planning 
                      organization and the Governor.
            ``(2) Contents.--
                    ``(A) <<NOTE: Deadline.>> Priority list.--The TIP 
                shall include a priority list of proposed Federally 
                supported projects and strategies to be carried out 
                within each 4-year period after the initial adoption of 
                the TIP.
                    ``(B) Financial plan.--The TIP shall include a 
                financial plan that--
                          ``(i) demonstrates how the TIP can be 
                      implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      available to carry out the program;
                          ``(iii) identifies innovative financing 
                      techniques to finance projects, programs, and 
                      strategies; and
                          ``(iv) may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      approved TIP if reasonable additional resources 
                      beyond those identified in the financial plan were 
                      available.
                    ``(C) Descriptions.--Each project in the TIP shall 
                include sufficient descriptive material (such as type of 
                work, termini, length, and other similar factors) to 
                identify the project or phase of the project.
                    ``(D) Performance target achievement.--The 
                transportation improvement program shall include, to the 
                maximum extent practicable, a description of the 
                anticipated effect of the transportation improvement 
                program toward achieving the performance targets 
                established in the metropolitan transportation plan, 
                linking investment priorities to those performance 
                targets.
            ``(3) Included projects.--
                    ``(A) Projects under this title and chapter 53 of 
                title 49.--A TIP developed under this subsection for a 
                metropolitan area shall include the projects within the 
                area that are proposed for funding under chapter 1 of 
                this title and chapter 53 of title 49.
                    ``(B) Projects under chapter 2.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 shall be identified 
                      individually in the transportation improvement 
                      program.
                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 that are not determined to 
                      be regionally significant shall be grouped in 1 
                      line item or identified individually in the 
                      transportation improvement program.
                    ``(C) Consistency with long-range transportation 
                plan.--Each project shall be consistent with the long-
                range transportation plan developed under subsection (i) 
                for the area.
                    ``(D) Requirement of anticipated full funding.--The 
                program shall include a project, or an identified phase

[[Page 126 STAT. 511]]

                of a project, only if full funding can reasonably be 
                anticipated to be available for the project or the 
                identified phase within the time period contemplated for 
                completion of the project or the identified phase.
            ``(4) Notice and comment.--Before approving a TIP, a 
        metropolitan planning organization, in cooperation with the 
        State and any affected public transportation operator, shall 
        provide an opportunity for participation by interested parties 
        in the development of the program, in accordance with subsection 
        (i)(5).
            ``(5) Selection of projects.--
                    ``(A) In general.--Except as otherwise provided in 
                subsection (k)(4) and in addition to the TIP development 
                required under paragraph (1), the selection of Federally 
                funded projects in metropolitan areas shall be carried 
                out, from the approved TIP--
                          ``(i) by--
                                    ``(I) in the case of projects under 
                                this title, the State; and
                                    ``(II) in the case of projects under 
                                chapter 53 of title 49, the designated 
                                recipients of public transportation 
                                funding; and
                          ``(ii) in cooperation with the metropolitan 
                      planning organization.
                    ``(B) Modifications to project priority.--
                Notwithstanding any other provision of law, action by 
                the Secretary shall not be required to advance a project 
                included in the approved TIP in place of another project 
                in the program.
            ``(6) Selection of projects from illustrative list.--
                    ``(A) No required selection.--Notwithstanding 
                paragraph (2)(B)(iv), a State or metropolitan planning 
                organization shall not be required to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv).
                    ``(B) Required action by the secretary.--Action by 
                the Secretary shall be required for a State or 
                metropolitan planning organization to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv) for inclusion in an approved TIP.
            ``(7) Publication.--
                    ``(A) Publication of tips.--A TIP involving Federal 
                participation shall be published or otherwise made 
                readily available by the metropolitan planning 
                organization for public review.
                    ``(B) Publication of annual listings of projects.--
                          ``(i) In general.--An annual listing of 
                      projects, including investments in pedestrian 
                      walkways and bicycle transportation facilities, 
                      for which Federal funds have been obligated in the 
                      preceding year shall be published or otherwise 
                      made available by the cooperative effort of the 
                      State, transit operator, and metropolitan planning 
                      organization for public review.
                          ``(ii) Requirement.--The listing shall be 
                      consistent with the categories identified in the 
                      TIP.

    ``(k) Transportation Management Areas.--
            ``(1) Identification and designation.--

[[Page 126 STAT. 512]]

                    ``(A) Required identification.--The Secretary shall 
                identify as a transportation management area each 
                urbanized area (as defined by the Bureau of the Census) 
                with a population of over 200,000 individuals.
                    ``(B) Designations on request.--The Secretary shall 
                designate any additional area as a transportation 
                management area on the request of the Governor and the 
                metropolitan planning organization designated for the 
                area.
            ``(2) Transportation plans.--In a transportation management 
        area, transportation plans shall be based on a continuing and 
        comprehensive transportation planning process carried out by the 
        metropolitan planning organization in cooperation with the State 
        and public transportation operators.
            ``(3) Congestion management process.--
                    ``(A) In general.--Within a metropolitan planning 
                area serving a transportation management area, the 
                transportation planning process under this section shall 
                address congestion management through a process that 
                provides for effective management and operation, based 
                on a cooperatively developed and implemented 
                metropolitan-wide strategy, of new and existing 
                transportation facilities eligible for funding under 
                this title and chapter 53 of title 49 through the use of 
                travel demand reduction and operational management 
                strategies.
                    ``(B) <<NOTE: Deadline.>> Schedule.--The Secretary 
                shall establish an appropriate phase-in schedule for 
                compliance with the requirements of this section but no 
                sooner than 1 year after the identification of a 
                transportation management area.
            ``(4) Selection of projects.--
                    ``(A) In general.--All Federally funded projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                under this title (excluding projects carried out on the 
                National Highway System) or under chapter 53 of title 49 
                shall be selected for implementation from the approved 
                TIP by the metropolitan planning organization designated 
                for the area in consultation with the State and any 
                affected public transportation operator.
                    ``(B) National highway system projects.--Projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                on the National Highway System shall be selected for 
                implementation from the approved TIP by the State in 
                cooperation with the metropolitan planning organization 
                designated for the area.
            ``(5) Certification.--
                    ``(A) In general.--The Secretary shall--
                          ``(i) ensure that the metropolitan planning 
                      process of a metropolitan planning organization 
                      serving a transportation management area is being 
                      carried out in accordance with applicable 
                      provisions of Federal law; and
                          ``(ii) subject to subparagraph (B), certify, 
                      not less often than once every 4 years, that the 
                      requirements of this paragraph are met with 
                      respect to the metropolitan planning process.

[[Page 126 STAT. 513]]

                    ``(B) Requirements for certification.--The Secretary 
                may make the certification under subparagraph (A) if--
                          ``(i) the transportation planning process 
                      complies with the requirements of this section and 
                      other applicable requirements of Federal law; and
                          ``(ii) there is a TIP for the metropolitan 
                      planning area that has been approved by the 
                      metropolitan planning organization and the 
                      Governor.
                    ``(C) Effect of failure to certify.--
                          ``(i) Withholding of project funds.--If a 
                      metropolitan planning process of a metropolitan 
                      planning organization serving a transportation 
                      management area is not certified, the Secretary 
                      may withhold up to 20 percent of the funds 
                      attributable to the metropolitan planning area of 
                      the metropolitan planning organization for 
                      projects funded under this title and chapter 53 of 
                      title 49.
                          ``(ii) Restoration of withheld funds.--The 
                      withheld funds shall be restored to the 
                      metropolitan planning area at such time as the 
                      metropolitan planning process is certified by the 
                      Secretary.
                    ``(D) Review of certification.--In making 
                certification determinations under this paragraph, the 
                Secretary shall provide for public involvement 
                appropriate to the metropolitan area under review.

    ``(l) Report on Performance-based Planning Processes.--
            ``(1) In general.--The Secretary shall submit to Congress a 
        report on the effectiveness of the performance-based planning 
        processes of metropolitan planning organizations under this 
        section, taking into consideration the requirements of this 
        subsection
            ``(2) Report.--Not later than 5 years after the date of 
        enactment of the MAP-21, the Secretary shall submit to Congress 
        a report evaluating--
                    ``(A) the overall effectiveness of performance-based 
                planning as a tool for guiding transportation 
                investments;
                    ``(B) the effectiveness of the performance-based 
                planning process of each metropolitan planning 
                organization under this section;
                    ``(C) the extent to which metropolitan planning 
                organizations have achieved, or are currently making 
                substantial progress toward achieving, the performance 
                targets specified under this section and whether 
                metropolitan planning organizations are developing 
                meaningful performance targets; and
                    ``(D) the technical capacity of metropolitan 
                planning organizations that operate within a 
                metropolitan planning area of less than 200,000 and 
                their ability to carry out the requirements of this 
                section.
            ``(3) <<NOTE: Web posting.>> Publication.--The report under 
        paragraph (2) shall be published or otherwise made available in 
        electronically accessible formats and means, including on the 
        Internet.

    ``(m) Abbreviated Plans for Certain Areas.--
            ``(1) In general.--Subject to paragraph (2), in the case of 
        a metropolitan area not designated as a transportation 
        management area under this section, the Secretary may provide

[[Page 126 STAT. 514]]

        for the development of an abbreviated transportation plan and 
        TIP for the metropolitan planning area that the Secretary 
        determines is appropriate to achieve the purposes of this 
        section, taking into account the complexity of transportation 
        problems in the area.
            ``(2) Nonattainment areas.--The Secretary may not permit 
        abbreviated plans or TIPs for a metropolitan area that is in 
        nonattainment for ozone or carbon monoxide under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).

    ``(n) Additional Requirements for Certain Nonattainment Areas.--
            ``(1) In general.--Notwithstanding any other provisions of 
        this title or chapter 53 of title, for transportation management 
        areas classified as nonattainment for ozone or carbon monoxide 
        pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal 
        funds may not be advanced in such area for any highway project 
        that will result in a significant increase in the carrying 
        capacity for single-occupant vehicles unless the project is 
        addressed through a congestion management process.
            ``(2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning area 
        boundaries determined under subsection (e).

    ``(o) Limitation on Statutory Construction.--Nothing in this section 
shall be construed to confer on a metropolitan planning organization the 
authority to impose legal requirements on any transportation facility, 
provider, or project not eligible under this title or chapter 53 of 
title 49.
    ``(p) Funding.--Funds set aside under section 104(f) of this title 
or section 5305(g) of title 49 shall be available to carry out this 
section.
    ``(q) Continuation of Current Review Practice.--Since plans and TIPs 
described in this section are subject to a reasonable opportunity for 
public comment, since individual projects included in plans and TIPs are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning plans and TIPs described in this section have not been 
reviewed under that Act as of January 1, 1997, any decision by the 
Secretary concerning a plan or TIP described in this section shall not 
be considered to be a Federal action subject to review under that 
Act.''.
    (b) <<NOTE: Evaluation.>> Study on Metropolitan Planning Scenario 
Development.--
            (1) In general.--The Secretary shall evaluate the costs and 
        benefits associated with metropolitan planning organizations 
        developing multiple scenarios for consideration as a part of the 
        development of their metropolitan transportation plan.
            (2) Inclusions.--The evaluation shall include an analysis of 
        the technical and financial capacity of the metropolitan 
        planning organization needed to develop scenarios described in 
        paragraph (1).
SEC. 1202. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

    (a) In General.--Section 135 of title 23, United States Code, is 
amended to read as follows:

[[Page 126 STAT. 515]]

``Sec. 135. Statewide and nonmetropolitan transportation planning

    ``(a) General Requirements.--
            ``(1) Development of plans and programs.--Subject to section 
        134, to accomplish the objectives stated in section 134(a), each 
        State shall develop a statewide transportation plan and a 
        statewide transportation improvement program for all areas of 
        the State.
            ``(2) Contents.--The statewide transportation plan and the 
        transportation improvement program developed for each State 
        shall provide for the development and integrated management and 
        operation of transportation systems and facilities (including 
        accessible pedestrian walkways and bicycle transportation 
        facilities) that will function as an intermodal transportation 
        system for the State and an integral part of an intermodal 
        transportation system for the United States.
            ``(3) Process of development.--The process for developing 
        the statewide plan and the transportation improvement program 
        shall provide for consideration of all modes of transportation 
        and the policies stated in section 134(a) and shall be 
        continuing, cooperative, and comprehensive to the degree 
        appropriate, based on the complexity of the transportation 
        problems to be addressed.

    ``(b) Coordination With Metropolitan Planning; State Implementation 
Plan.--A State shall--
            ``(1) coordinate planning carried out under this section 
        with the transportation planning activities carried out under 
        section 134 for metropolitan areas of the State and with 
        statewide trade and economic development planning activities and 
        related multistate planning efforts; and
            ``(2) develop the transportation portion of the State 
        implementation plan as required by the Clean Air Act (42 U.S.C. 
        7401 et seq.).

    ``(c) Interstate Agreements.--
            ``(1) In general.--Two or more States may enter into 
        agreements or compacts, not in conflict with any law of the 
        United States, for cooperative efforts and mutual assistance in 
        support of activities authorized under this section related to 
        interstate areas and localities in the States and establishing 
        authorities the States consider desirable for making the 
        agreements and compacts effective.
            ``(2) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(d) Scope of Planning Process.--
            ``(1) In general.--Each State shall carry out a statewide 
        transportation planning process that provides for consideration 
        and implementation of projects, strategies, and services that 
        will--
                    ``(A) support the economic vitality of the United 
                States, the States, nonmetropolitan areas, and 
                metropolitan areas, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;

[[Page 126 STAT. 516]]

                    ``(D) increase the accessibility and mobility of 
                people and freight;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes 
                throughout the State, for people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The statewide transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of this title and in section 5301(c) 
                of title 49.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each State shall 
                                establish performance targets that 
                                address the performance measures 
                                described in section 150(c), where 
                                applicable, to use in tracking progress 
                                towards attainment of critical outcomes 
                                for the State.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a State shall be 
                                coordinated with the relevant 
                                metropolitan planning organizations to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--In urbanized areas not represented by a 
                      metropolitan planning organization, selection of 
                      performance targets by a State shall be 
                      coordinated, to the maximum extent practicable, 
                      with providers of public transportation to ensure 
                      consistency with sections 5326(c) and 5329(d) of 
                      title 49.
                    ``(C) Integration of other performance-based 
                plans.--A State shall integrate into the statewide 
                transportation planning process, directly or by 
                reference, the goals, objectives, performance measures, 
                and targets described in this paragraph, in other State 
                transportation plans and transportation processes, as 
                well as any plans developed pursuant to chapter 53 of 
                title 49 by providers of public transportation in 
                urbanized areas not represented by a metropolitan 
                planning organization required as part of a performance-
                based program.
                    ``(D) Use of performance measures and targets.--The 
                performance measures and targets established under this 
                paragraph shall be considered by a State when developing 
                policies, programs, and investment priorities reflected 
                in the statewide transportation plan and statewide 
                transportation improvement program.

[[Page 126 STAT. 517]]

            ``(3) Failure to consider factors.--The failure to take into 
        consideration the factors specified in paragraphs (1) and (2) 
        shall not be subject to review by any court under this title, 
        chapter 53 of title 49, subchapter II of chapter 5 of title 5, 
        or chapter 7 of title 5 in any matter affecting a statewide 
        transportation plan, a statewide transportation improvement 
        program, a project or strategy, or the certification of a 
        planning process.

    ``(e) Additional Requirements.--In carrying out planning under this 
section, each State shall, at a minimum--
            ``(1) with respect to nonmetropolitan areas, cooperate with 
        affected local officials with responsibility for transportation 
        or, if applicable, through regional transportation planning 
        organizations described in subsection (m);
            ``(2) consider the concerns of Indian tribal governments and 
        Federal land management agencies that have jurisdiction over 
        land within the boundaries of the State; and
            ``(3) consider coordination of transportation plans, the 
        transportation improvement program, and planning activities with 
        related planning activities being carried out outside of 
        metropolitan planning areas and between States.

    ``(f) Long-range Statewide Transportation Plan.--
            ``(1) Development.--Each State shall develop a long-range 
        statewide transportation plan, with a minimum 20-year forecast 
        period for all areas of the State, that provides for the 
        development and implementation of the intermodal transportation 
        system of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--The statewide 
                transportation plan shall be developed for each 
                metropolitan area in the State in cooperation with the 
                metropolitan planning organization designated for the 
                metropolitan area under section 134.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to 
                      nonmetropolitan areas, the statewide 
                      transportation plan shall be developed in 
                      cooperation with affected nonmetropolitan 
                      officials with responsibility for transportation 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (m).
                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the consultation process in 
                      each State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the statewide transportation plan 
                shall be developed in consultation with the tribal 
                government and the Secretary of the Interior.
                    ``(D) Consultation, comparison, and consideration.--
                          ``(i) In general.--The long-range 
                      transportation plan shall be developed, as 
                      appropriate, in consultation with State, tribal, 
                      and local agencies responsible for land use 
                      management, natural resources, environmental 
                      protection, conservation, and historic 
                      preservation.

[[Page 126 STAT. 518]]

                          ``(ii) Comparison and consideration.--
                      Consultation under clause (i) shall involve 
                      comparison of transportation plans to State and 
                      tribal conservation plans or maps, if available, 
                      and comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(3) Participation by interested parties.--
                    ``(A) In general.--In developing the statewide 
                transportation plan, the State shall provide to--
                          ``(i) nonmetropolitan local elected officials 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (m), an opportunity to participate in accordance 
                      with subparagraph (B)(i); and
                          ``(ii) citizens, affected public agencies, 
                      representatives of public transportation 
                      employees, freight shippers, private providers of 
                      transportation, representatives of users of public 
                      transportation, representatives of users of 
                      pedestrian walkways and bicycle transportation 
                      facilities, representatives of the disabled, 
                      providers of freight transportation services, and 
                      other interested parties a reasonable opportunity 
                      to comment on the proposed plan.
                    ``(B) Methods.--In carrying out subparagraph (A), 
                the State shall, to the maximum extent practicable--
                          ``(i) develop and document a consultative 
                      process to carry out subparagraph (A)(i) that is 
                      separate and discrete from the public involvement 
                      process developed under clause (ii);
                          ``(ii) hold any public meetings at convenient 
                      and accessible locations and times;
                          ``(iii) employ visualization techniques to 
                      describe plans; and
                          ``(iv) make public information available in 
                      electronically accessible format and means, such 
                      as the World Wide Web, as appropriate to afford 
                      reasonable opportunity for consideration of public 
                      information under subparagraph (A).
            ``(4) Mitigation activities.--
                    ``(A) In general.--A long-range transportation plan 
                shall include a discussion of potential environmental 
                mitigation activities and potential areas to carry out 
                these activities, including activities that may have the 
                greatest potential to restore and maintain the 
                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) Financial plan.--The statewide transportation plan may 
        include--
                    ``(A) a financial plan that--
                          ``(i) demonstrates how the adopted statewide 
                      transportation plan can be implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      made available to carry out the plan; and

[[Page 126 STAT. 519]]

                          ``(iii) recommends any additional financing 
                      strategies for needed projects and programs; and
                    ``(B) for illustrative purposes, additional projects 
                that would be included in the adopted statewide 
                transportation plan if reasonable additional resources 
                beyond those identified in the financial plan were 
                available.
            ``(6) Selection of projects from illustrative list.--A State 
        shall not be required to select any project from the 
        illustrative list of additional projects included in the 
        financial plan described in paragraph (5).
            ``(7) Performance-based approach.--The statewide 
        transportation plan should include--
                    ``(A) a description of the performance measures and 
                performance targets used in assessing the performance of 
                the transportation system in accordance with subsection 
                (d)(2); and
                    ``(B) a system performance report and subsequent 
                updates evaluating the condition and performance of the 
                transportation system with respect to the performance 
                targets described in subsection (d)(2), including 
                progress achieved by the metropolitan planning 
                organization in meeting the performance targets in 
                comparison with system performance recorded in previous 
                reports;
            ``(8) Existing system.--The statewide transportation plan 
        should include capital, operations and management strategies, 
        investments, procedures, and other measures to ensure the 
        preservation and most efficient use of the existing 
        transportation system.
            ``(9) Publication of long-range transportation plans.--Each 
        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.

    ``(g) Statewide Transportation Improvement Program.--
            ``(1) Development.--
                    ``(A) In general.--Each State shall develop a 
                statewide transportation improvement program for all 
                areas of the State.
                    ``(B) <<NOTE: Time period. Deadline.>> Duration and 
                updating of program.--Each program developed under 
                subparagraph (A) shall cover a period of 4 years and 
                shall be updated every 4 years or more frequently if the 
                Governor of the State elects to update more frequently.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--With respect to each 
                metropolitan area in the State, the program shall be 
                developed in cooperation with the metropolitan planning 
                organization designated for the metropolitan area under 
                section 134.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to each 
                      nonmetropolitan area in the State, the program 
                      shall be developed in consultation with affected 
                      nonmetropolitan local officials with 
                      responsibility for transportation or, if 
                      applicable, through regional transportation 
                      planning organizations described in subsection 
                      (m).

[[Page 126 STAT. 520]]

                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the specific consultation 
                      process in the State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the program shall be developed in 
                consultation with the tribal government and the 
                Secretary of the Interior.
            ``(3) Participation by interested parties.--In developing 
        the program, the State shall provide citizens, affected public 
        agencies, representatives of public transportation employees, 
        freight shippers, private providers of transportation, providers 
        of freight transportation services, representatives of users of 
        public transportation, representatives of users of pedestrian 
        walkways and bicycle transportation facilities, representatives 
        of the disabled, and other interested parties with a reasonable 
        opportunity to comment on the proposed program.
            ``(4) Performance target achievement.--A statewide 
        transportation improvement program shall include, to the maximum 
        extent practicable, a discussion of the anticipated effect of 
        the statewide transportation improvement program toward 
        achieving the performance targets established in the statewide 
        transportation plan, linking investment priorities to those 
        performance targets.
            ``(5) Included projects.--
                    ``(A) In general.--A transportation improvement 
                program developed under this subsection for a State 
                shall include Federally supported surface transportation 
                expenditures within the boundaries of the State.
                    ``(B) Listing of projects.--
                          ``(i) In general.--An annual listing of 
                      projects for which funds have been obligated for 
                      the preceding year in each metropolitan planning 
                      area shall be published or otherwise made 
                      available by the cooperative effort of the State, 
                      transit operator, and the metropolitan planning 
                      organization for public review.
                          ``(ii) Funding categories.--The listing 
                      described in clause (i) shall be consistent with 
                      the funding categories identified in each 
                      metropolitan transportation improvement program.
                    ``(C) Projects under chapter 2.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 shall be identified 
                      individually in the transportation improvement 
                      program.
                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 that are not determined to 
                      be regionally significant shall be grouped in 1 
                      line item or identified individually in the 
                      transportation improvement program.
                    ``(D) Consistency with statewide transportation 
                plan.--Each project shall be--
                          ``(i) consistent with the statewide 
                      transportation plan developed under this section 
                      for the State;
                          ``(ii) identical to the project or phase of 
                      the project as described in an approved 
                      metropolitan transportation plan; and

[[Page 126 STAT. 521]]

                          ``(iii) in conformance with the applicable 
                      State air quality implementation plan developed 
                      under the Clean Air Act (42 U.S.C. 7401 et seq.), 
                      if the project is carried out in an area 
                      designated as a nonattainment area for ozone, 
                      particulate matter, or carbon monoxide under part 
                      D of title I of that Act (42 U.S.C. 7501 et seq.).
                    ``(E) Requirement of anticipated full funding.--The 
                transportation improvement program shall include a 
                project, or an identified phase of a project, only if 
                full funding can reasonably be anticipated to be 
                available for the project within the time period 
                contemplated for completion of the project.
                    ``(F) Financial plan.--
                          ``(i) In general.--The transportation 
                      improvement program may include a financial plan 
                      that demonstrates how the approved transportation 
                      improvement program can be implemented, indicates 
                      resources from public and private sources that are 
                      reasonably expected to be made available to carry 
                      out the transportation improvement program, and 
                      recommends any additional financing strategies for 
                      needed projects and programs.
                          ``(ii) Additional projects.--The financial 
                      plan may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      adopted transportation plan if reasonable 
                      additional resources beyond those identified in 
                      the financial plan were available.
                    ``(G) Selection of projects from illustrative 
                list.--
                          ``(i) No required selection.--Notwithstanding 
                      subparagraph (F), a State shall not be required to 
                      select any project from the illustrative list of 
                      additional projects included in the financial plan 
                      under subparagraph (F).
                          ``(ii) Required action by the secretary.--
                      Action by the Secretary shall be required for a 
                      State to select any project from the illustrative 
                      list of additional projects included in the 
                      financial plan under subparagraph (F) for 
                      inclusion in an approved transportation 
                      improvement program.
                    ``(H) Priorities.--The transportation improvement 
                program shall reflect the priorities for programming and 
                expenditures of funds, including transportation 
                enhancement activities, required by this title and 
                chapter 53 of title 49.
            ``(6) Project selection for areas of less than 50,000 
        population.--
                    ``(A) In general.--Projects carried out in areas 
                with populations of less than 50,000 individuals shall 
                be selected, from the approved transportation 
                improvement program (excluding projects carried out on 
                the National Highway System and projects carried out 
                under the bridge program or the Interstate maintenance 
                program under this title or under sections 5310 and 5311 
                of title 49), by the State in cooperation with the 
                affected nonmetropolitan local

[[Page 126 STAT. 522]]

                officials with responsibility for transportation or, if 
                applicable, through regional transportation planning 
                organizations described in subsection (m).
                    ``(B) Other projects.--Projects carried out in areas 
                with populations of less than 50,000 individuals on the 
                National Highway System or under the bridge program or 
                the Interstate maintenance program under this title or 
                under sections 5310, 5311, 5316, and 5317 of title 49 
                shall be selected, from the approved statewide 
                transportation improvement program, by the State in 
                consultation with the affected nonmetropolitan local 
                officials with responsibility for transportation.
            ``(7) <<NOTE: Time period.>> Transportation improvement 
        program approval.--Every 4 years, a transportation improvement 
        program developed under this subsection shall be reviewed and 
        approved by the Secretary if based on a current planning 
        finding.
            ``(8) Planning finding.--A finding shall be made by the 
        Secretary at least every 4 years that the transportation 
        planning process through which statewide transportation plans 
        and programs are developed is consistent with this section and 
        section 134.
            ``(9) Modifications to project priority.--Notwithstanding 
        any other provision of law, action by the Secretary shall not be 
        required to advance a project included in the approved 
        transportation improvement program in place of another project 
        in the program.

    ``(h) Performance-based Planning Processes Evaluation.--
            ``(1) <<NOTE: Criteria.>> In general.--The Secretary shall 
        establish criteria to evaluate the effectiveness of the 
        performance-based planning processes of States, taking into 
        consideration the following:
                    ``(A) The extent to which the State is making 
                progress toward achieving, the performance targets 
                described in subsection (d)(2), taking into account 
                whether the State developed appropriate performance 
                targets.
                    ``(B) The extent to which the State has made 
                transportation investments that are efficient and cost-
                effective.
                    ``(C) The extent to which the State--
                          ``(i) has developed an investment process that 
                      relies on public input and awareness to ensure 
                      that investments are transparent and accountable; 
                      and
                          ``(ii) provides reports allowing the public to 
                      access the information being collected in a format 
                      that allows the public to meaningfully assess the 
                      performance of the State.
            ``(2) Report.--
                    ``(A) In general.--Not later than 5 years after the 
                date of enactment of the MAP-21, the Secretary shall 
                submit to Congress a report evaluating--
                          ``(i) the overall effectiveness of 
                      performance-based planning as a tool for guiding 
                      transportation investments; and
                          ``(ii) the effectiveness of the performance-
                      based planning process of each State.
                    ``(B) <<NOTE: Web posting.>> Publication.--The 
                report under subparagraph (A) shall be published or 
                otherwise made available in electronically accessible 
                formats and means, including on the Internet.

[[Page 126 STAT. 523]]

    ``(i) Funding.--Funds apportioned under section 104(b)(5) of this 
title and set aside under section 5305(g) of title 49 shall be available 
to carry out this section.
    ``(j) Treatment of Certain State Laws as Congestion Management 
Processes.--For purposes of this section and section 134, and sections 
5303 and 5304 of title 49, State laws, rules, or regulations pertaining 
to congestion management systems or programs may constitute the 
congestion management process under this section and section 134, and 
sections 5303 and 5304 of title 49, if the Secretary finds that the 
State laws, rules, or regulations are consistent with, and fulfill the 
intent of, the purposes of this section and section 134 and sections 
5303 and 5304 of title 49, as appropriate.
    ``(k) Continuation of Current Review Practice.--Since the statewide 
transportation plan and the transportation improvement program described 
in this section are subject to a reasonable opportunity for public 
comment, since individual projects included in the statewide 
transportation plans and the transportation improvement program are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning statewide transportation plans or the transportation 
improvement program described in this section have not been reviewed 
under that Act as of January 1, 1997, any decision by the Secretary 
concerning a metropolitan or statewide transportation plan or the 
transportation improvement program described in this section shall not 
be considered to be a Federal action subject to review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(l) <<NOTE: Guidance.>> Schedule for Implementation.--The 
Secretary shall issue guidance on a schedule for implementation of the 
changes made by this section, taking into consideration the established 
planning update cycle for States. The Secretary shall not require a 
State to deviate from its established planning update cycle to implement 
changes made by this section. <<NOTE: Deadline.>> States shall reflect 
changes made to their transportation plan or transportation improvement 
program updates not later than 2 years after the date of issuance of 
guidance by the Secretary under this subsection.

    ``(m) Designation of Regional Transportation Planning 
Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a State may establish and 
        designate regional transportation planning organizations to 
        enhance the planning, coordination, and implementation of 
        statewide strategic long-range transportation plans and 
        transportation improvement programs, with an emphasis on 
        addressing the needs of nonmetropolitan areas of the State.
            ``(2) Structure.--A regional transportation planning 
        organization shall be established as a multijurisdictional 
        organization of nonmetropolitan local officials or their 
        designees who volunteer for such organization and 
        representatives of local transportation systems who volunteer 
        for such organization.
            ``(3) Requirements.--A regional transportation planning 
        organization shall establish, at a minimum--
                    ``(A) a policy committee, the majority of which 
                shall consist of nonmetropolitan local officials, or 
                their designees, and, as appropriate, additional 
                representatives from the

[[Page 126 STAT. 524]]

                State, private business, transportation service 
                providers, economic development practitioners, and the 
                public in the region; and
                    ``(B) a fiscal and administrative agent, such as an 
                existing regional planning and development organization, 
                to provide professional planning, management, and 
                administrative support.
            ``(4) Duties.--The duties of a regional transportation 
        planning organization shall include--
                    ``(A) developing and maintaining, in cooperation 
                with the State, regional long-range multimodal 
                transportation plans;
                    ``(B) developing a regional transportation 
                improvement program for consideration by the State;
                    ``(C) fostering the coordination of local planning, 
                land use, and economic development plans with State, 
                regional, and local transportation plans and programs;
                    ``(D) providing technical assistance to local 
                officials;
                    ``(E) participating in national, multistate, and 
                State policy and planning development processes to 
                ensure the regional and local input of nonmetropolitan 
                areas;
                    ``(F) providing a forum for public participation in 
                the statewide and regional transportation planning 
                processes;
                    ``(G) considering and sharing plans and programs 
                with neighboring regional transportation planning 
                organizations, metropolitan planning organizations, and, 
                where appropriate, tribal organizations; and
                    ``(H) conducting other duties, as necessary, to 
                support and enhance the statewide planning process under 
                subsection (d).
            ``(5) States without regional transportation planning 
        organizations.--If a State chooses not to establish or designate 
        a regional transportation planning organization, the State shall 
        consult with affected nonmetropolitan local officials to 
        determine projects that may be of regional significance.''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
135 and inserting the following:

``135. Statewide and nonmetropolitan transportation planning.''.

SEC. 1203. NATIONAL GOALS AND PERFORMANCE MANAGEMENT MEASURES.

    (a) In General.--Section 150 of title 23, United States Code, is 
amended to read as follows:
``Sec. 150. National goals and performance management measures

    ``(a) Declaration of Policy.--Performance management will transform 
the Federal-aid highway program and provide a means to the most 
efficient investment of Federal transportation funds by refocusing on 
national transportation goals, increasing the accountability and 
transparency of the Federal-aid highway program, and improving project 
decisionmaking through performance-based planning and programming.
    ``(b) National Goals.--It is in the interest of the United States to 
focus the Federal-aid highway program on the following national goals:

[[Page 126 STAT. 525]]

            ``(1) Safety.--To achieve a significant reduction in traffic 
        fatalities and serious injuries on all public roads.
            ``(2) Infrastructure condition.--To maintain the highway 
        infrastructure asset system in a state of good repair.
            ``(3) Congestion reduction.--To achieve a significant 
        reduction in congestion on the National Highway System.
            ``(4) System reliability.--To improve the efficiency of the 
        surface transportation system.
            ``(5) Freight movement and economic vitality.--To improve 
        the national freight network, strengthen the ability of rural 
        communities to access national and international trade markets, 
        and support regional economic development.
            ``(6) Environmental sustainability.--To enhance the 
        performance of the transportation system while protecting and 
        enhancing the natural environment.
            ``(7) Reduced project delivery delays.--To reduce project 
        costs, promote jobs and the economy, and expedite the movement 
        of people and goods by accelerating project completion through 
        eliminating delays in the project development and delivery 
        process, including reducing regulatory burdens and improving 
        agencies' work practices.

    ``(c) Establishment of Performance Measures.--
            ``(1) <<NOTE: Deadline. Regulations.>> In general.--Not 
        later than 18 months after the date of enactment of the MAP-21, 
        the Secretary, in consultation with State departments of 
        transportation, metropolitan planning organizations, and other 
        stakeholders, shall promulgate a rulemaking that establishes 
        performance measures and standards.
            ``(2) Administration.--In carrying out paragraph (1), the 
        Secretary shall--
                    ``(A) provide States, metropolitan planning 
                organizations, and other stakeholders not less than 90 
                days to comment on any regulation proposed by the 
                Secretary under that paragraph;
                    ``(B) take into consideration any comments relating 
                to a proposed regulation received during that comment 
                period; and
                    ``(C) limit performance measures only to those 
                described in this subsection.
            ``(3) National highway performance program.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                the purpose of carrying out section 119, the Secretary 
                shall establish--
                          ``(i) <<NOTE: Standards.>> minimum standards 
                      for States to use in developing and operating 
                      bridge and pavement management systems;
                          ``(ii) measures for States to use to assess--
                                    ``(I) the condition of pavements on 
                                the Interstate system;
                                    ``(II) the condition of pavements on 
                                the National Highway System (excluding 
                                the Interstate);
                                    ``(III) the condition of bridges on 
                                the National Highway System;
                                    ``(IV) the performance of the 
                                Interstate System; and

[[Page 126 STAT. 526]]

                                    ``(V) the performance of the 
                                National Highway System (excluding the 
                                Interstate System);
                          ``(iii) minimum levels for the condition of 
                      pavement on the Interstate System, only for the 
                      purposes of carrying out section 119(f)(1); and
                          ``(iv) the data elements that are necessary to 
                      collect and maintain standardized data to carry 
                      out a performance-based approach.
                    ``(B) Regions.--In establishing minimum condition 
                levels under subparagraph (A)(iii), if the Secretary 
                determines that various geographic regions of the United 
                States experience disparate factors contributing to the 
                condition of pavement on the Interstate System in those 
                regions, the Secretary may establish different minimum 
                levels for each region;
            ``(4) Highway safety improvement program.--For the purpose 
        of carrying out section 148, the Secretary shall establish 
        measures for States to use to assess--
                    ``(A) serious injuries and fatalities per vehicle 
                mile traveled; and
                    ``(B) the number of serious injuries and fatalities.
            ``(5) Congestion mitigation and air quality program.--For 
        the purpose of carrying out section 149, the Secretary shall 
        establish measures for States to use to assess--
                    ``(A) traffic congestion; and
                    ``(B) on-road mobile source emissions.
            ``(6) National freight movement.--The Secretary shall 
        establish measures for States to use to assess freight movement 
        on the Interstate System.

    ``(d) <<NOTE: Deadline.>> Establishment of Performance Targets.--
            ``(1) In general.--Not later than 1 year after the Secretary 
        has promulgated the final rulemaking under subsection (c), each 
        State shall set performance targets that reflect the measures 
        identified in paragraphs (3), (4), (5), and (6) of subsection 
        (c).
            ``(2) Different approaches for urban and rural areas.--In 
        the development and implementation of any performance target, a 
        State may, as appropriate, provide for different performance 
        targets for urbanized and rural areas.

    ``(e) Reporting on Performance Targets.--Not later than 4 years 
after the date of enactment of the MAP-21 and biennially thereafter, a 
State shall submit to the Secretary a report that describes--
            ``(1) the condition and performance of the National Highway 
        System in the State;
            ``(2) the effectiveness of the investment strategy document 
        in the State asset management plan for the National Highway 
        System;
            ``(3) progress in achieving performance targets identified 
        under subsection (d); and
            ``(4) the ways in which the State is addressing congestion 
        at freight bottlenecks, including those identified in the 
        National Freight Strategic Plan, within the State.''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
150 and inserting the following:

``150. National goals and performance management measures.''.

[[Page 126 STAT. 527]]

              Subtitle C--Acceleration of Project Delivery

SEC. 1301. <<NOTE: 23 USC 101 note.>> DECLARATION OF POLICY AND 
                          PROJECT DELIVERY INITIATIVE.

    (a) In General.--It is the policy of the United States that--
            (1) it is in the national interest for the Department, State 
        departments of transportation, transit agencies, and all other 
        recipients of Federal transportation funds--
                    (A) to accelerate project delivery and reduce costs; 
                and
                    (B) to ensure that the planning, design, 
                engineering, construction, and financing of 
                transportation projects is done in an efficient and 
                effective manner, promoting accountability for public 
                investments and encouraging greater private sector 
                involvement in project financing and delivery while 
                enhancing safety and protecting the environment;
            (2) delay in the delivery of transportation projects 
        increases project costs, harms the economy of the United States, 
        and impedes the travel of the people of the United States and 
        the shipment of goods for the conduct of commerce; and
            (3) the Secretary shall identify and promote the deployment 
        of innovation aimed at reducing the time and money required to 
        deliver transportation projects while enhancing safety and 
        protecting the environment.

    (b) Project Delivery Initiative.--
            (1) In general.--To advance the policy described in 
        subsection (a), the Secretary shall carry out a project delivery 
        initiative under this section.
            (2) Purposes.--The purposes of the project delivery 
        initiative shall be--
                    (A) to develop and advance the use of best practices 
                to accelerate project delivery and reduce costs across 
                all modes of transportation and expedite the deployment 
                of technology and innovation;
                    (B) to implement provisions of law designed to 
                accelerate project delivery; and
                    (C) to select eligible projects for applying 
                experimental features to test innovative project 
                delivery techniques.
            (3) Advancing the use of best practices.--
                    (A) In general.--In carrying out the initiative 
                under this section, the Secretary shall identify and 
                advance best practices to reduce delivery time and 
                project costs, from planning through construction, for 
                transportation projects and programs of projects 
                regardless of mode and project size.
                    (B) Administration.--To advance the use of best 
                practices, the Secretary shall--
                          (i) engage interested parties, affected 
                      communities, resource agencies, and other 
                      stakeholders to gather information regarding 
                      opportunities for accelerating project delivery 
                      and reducing costs;
                          (ii) establish a clearinghouse for the 
                      collection, documentation, and advancement of 
                      existing and new innovative approaches and best 
                      practices;

[[Page 126 STAT. 528]]

                          (iii) disseminate information through a 
                      variety of means to transportation stakeholders on 
                      new innovative approaches and best practices; and
                          (iv) provide technical assistance to assist 
                      transportation stakeholders in the use of 
                      flexibility authority to resolve project delays 
                      and accelerate project delivery if feasible.
            (4) Implementation of accelerated project delivery.--The 
        Secretary shall ensure that the provisions of this subtitle 
        designed to accelerate project delivery are fully implemented, 
        including--
                    (A) expanding eligibility of early acquisition of 
                property prior to completion of environmental review 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                    (B) allowing the use of the construction manager or 
                general contractor method of contracting in the Federal-
                aid highway system; and
                    (C) establishing a demonstration program to 
                streamline the relocation process by permitting a lump-
                sum payment for acquisition and relocation if elected by 
                the displaced occupant.

    (c) Expedited Project Delivery.--Section 101(b) of title 23, United 
States Code, is amended by adding at the end the following:
            ``(4) Expedited project delivery.--
                    ``(A) In general.--Congress declares that it is in 
                the national interest to expedite the delivery of 
                surface transportation projects by substantially 
                reducing the average length of the environmental review 
                process.
                    ``(B) Policy of the united states.--Accordingly, it 
                is the policy of the United States that--
                          ``(i) the Secretary shall have the lead role 
                      among Federal agencies in carrying out the 
                      environmental review process for surface 
                      transportation projects;
                          ``(ii) each Federal agency shall cooperate 
                      with the Secretary to expedite the environmental 
                      review process for surface transportation 
                      projects;
                          ``(iii) project sponsors shall not be 
                      prohibited from carrying out preconstruction 
                      project development activities concurrently with 
                      the environmental review process;
                          ``(iv) programmatic approaches shall be used 
                      to reduce the need for project-by-project reviews 
                      and decisions by Federal agencies; and
                          ``(v) the Secretary shall identify 
                      opportunities for project sponsors to assume 
                      responsibilities of the Secretary where such 
                      responsibilities can be assumed in a manner that 
                      protects public health, the environment, and 
                      public participation.''.
SEC. 1302. ADVANCE ACQUISITION OF REAL PROPERTY INTERESTS.

    (a) Real Property Interests.--Section 108 of title 23, United States 
Code, is amended--
            (1) by striking ``real property'' each place it appears and 
        inserting ``real property interests'';
            (2) by striking ``right-of-way'' each place it appears and 
        inserting ``real property interest''; and

[[Page 126 STAT. 529]]

            (3) by striking ``rights-of-way'' each place it appears and 
        inserting ``real property interests''.

    (b) State-funded Early Acquisition of Real Property Interests.--
Section 108(c) of title 23, United States Code, is amended--
            (1) in the subsection heading, by striking ``Early 
        Acquisition of Rights-of-way'' and inserting ``State-funded 
        Early Acquisition of Real Property Interests'';
            (2) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively;
            (3) in paragraph (2) (as so redesignated)--
                    (A) in the heading, by striking ``General rule'' and 
                inserting ``Eligibility for reimbursement''; and
                    (B) by striking ``Subject to paragraph (2)'' and 
                inserting ``Subject to paragraph (3)'';
            (4) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) In general.--A State may carry out, at the expense of 
        the State, acquisitions of interests in real property for a 
        project before completion of the review process required for the 
        project under the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.) without affecting subsequent approvals 
        required for the project by the State or any Federal agency.''; 
        and
            (5) in paragraph (3) (as so redesignated)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``in paragraph (1)'' and inserting ``in 
                paragraph (2)''; and
                    (B) in subparagraph (G), by striking ``both the 
                Secretary and the Administrator of the Environmental 
                Protection Agency have concurred'' and inserting ``the 
                Secretary has determined''.

    (c) Federally Funded Acquisition of Real Property Interests.--
Section 108 of title 23, United States Code, is amended by adding at the 
end the following:
    ``(d) Federally Funded Early Acquisition of Real Property 
Interests.--
            ``(1) Definition of acquisition of a real property 
        interest.--In this subsection, the term `acquisition of a real 
        property interest' includes the acquisition of--
                    ``(A) any interest in land;
                    ``(B) a contractual right to acquire any interest in 
                land; or
                    ``(C) any other similar action to acquire or 
                preserve rights-of-way for a transportation facility.
            ``(2) Authorization.--The Secretary may authorize the use of 
        funds apportioned to a State under this title for the 
        acquisition of a real property interest by a State.
            ``(3) State certification.--A State requesting Federal 
        funding for an acquisition of a real property interest shall 
        certify in writing, with concurrence by the Secretary, that--
                    ``(A) the State has authority to acquire the real 
                property interest under State law; and
                    ``(B) the acquisition of the real property 
                interest--
                          ``(i) is for a transportation purpose;
                          ``(ii) will not cause any significant adverse 
                      environmental impact;

[[Page 126 STAT. 530]]

                          ``(iii) will not limit the choice of 
                      reasonable alternatives for the project or 
                      otherwise influence the decision of the Secretary 
                      on any approval required for the project;
                          ``(iv) does not prevent the lead agency from 
                      making an impartial decision as to whether to 
                      accept an alternative that is being considered in 
                      the environmental review process;
                          ``(v) is consistent with the State 
                      transportation planning process under section 135;
                          ``(vi) complies with other applicable Federal 
                      laws (including regulations);
                          ``(vii) will be acquired through negotiation, 
                      without the threat of condemnation; and
                          ``(viii) will not result in a reduction or 
                      elimination of benefits or assistance to a 
                      displaced person required by the Uniform 
                      Relocation Assistance and Real Property 
                      Acquisition Policies Act of 1970 (42 U.S.C. 4601 
                      et seq.) and title VI of the Civil Rights Act of 
                      1964 (42 U.S.C. 2000d et seq.).
            ``(4) Environmental compliance.--
                    ``(A) In general.--Before authorizing Federal 
                funding for an acquisition of a real property interest, 
                the Secretary shall complete the review process under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.) with respect to the acquisition of the 
                real property interest.
                    ``(B) Independent utility.--The acquisition of a 
                real property interest--
                          ``(i) shall be treated as having independent 
                      utility for purposes of the review process under 
                      the National Environmental Policy Act of 1969 (42 
                      U.S.C. 4321 et seq.); and
                          ``(ii) shall not limit consideration of 
                      alternatives for future transportation 
                      improvements with respect to the real property 
                      interest.
            ``(5) Programming.--
                    ``(A) In general.--The acquisition of a real 
                property interest for which Federal funding is requested 
                shall be included as a project in an applicable 
                transportation improvement program under sections 134 
                and 135 and sections 5303 and 5304 of title 49.
                    ``(B) Acquisition project.--The acquisition project 
                may consist of the acquisition of a specific parcel, a 
                portion of a transportation corridor, or an entire 
                transportation corridor.
            ``(6) Development.--Real property interests acquired under 
        this subsection may not be developed in anticipation of a 
        project until all required environmental reviews for the project 
        have been completed.
            ``(7) Reimbursement.--If Federal-aid reimbursement is made 
        for real property interests acquired early under this section 
        and the real property interests are not subsequently 
        incorporated into a project eligible for surface transportation 
        funds within the time allowed by subsection (a)(2), the 
        Secretary shall offset the amount reimbursed against funds 
        apportioned to the State.
            ``(8) Other requirements and conditions.--

[[Page 126 STAT. 531]]

                    ``(A) Applicable law.--The acquisition of a real 
                property interest shall be carried out in compliance 
                with all requirements applicable to the acquisition of 
                real property interests for federally funded 
                transportation projects.
                    ``(B) Additional conditions.--The Secretary may 
                establish such other conditions or restrictions on 
                acquisitions under this subsection as the Secretary 
                determines to be appropriate.''.
SEC. 1303. LETTING OF CONTRACTS.

    (a) Efficiencies in Contracting.--Section 112(b) of title 23, United 
States Code, is amended by adding at the end the following:
            ``(4) Method of contracting.--
                    ``(A) In general.--
                          ``(i) 2-phase contract.--A contracting agency 
                      may award a 2-phase contract to a construction 
                      manager or general contractor for preconstruction 
                      and construction services.
                          ``(ii) Preconstruction services phase.--In the 
                      preconstruction services phase of a contract under 
                      this paragraph, the contractor shall provide the 
                      contracting agency with advice for scheduling, 
                      work sequencing, cost engineering, 
                      constructability, cost estimating, and risk 
                      identification.
                          ``(iii) Agreement.--Prior to the start of the 
                      construction services phase, the contracting 
                      agency and the contractor may agree to a price and 
                      other factors specified in regulation for the 
                      construction of the project or a portion of the 
                      project.
                          ``(iv) Construction phase.--If an agreement is 
                      reached under clause (iii), the contractor shall 
                      be responsible for the construction of the project 
                      or portion of the project at the negotiated price 
                      and in compliance with the other factors specified 
                      in the agreement.
                    ``(B) Selection.--A contract shall be awarded to a 
                contractor under this paragraph using a competitive 
                selection process based on qualifications, experience, 
                best value, or any other combination of factors 
                considered appropriate by the contracting agency.
                    ``(C) Timing.--
                          ``(i) Relationship to nepa process.--Prior to 
                      the completion of the environmental review process 
                      required under section 102 of the National 
                      Environmental Policy Act of 1969 (42 U.S.C. 4332), 
                      a contracting agency may--
                                    ``(I) issue requests for proposals;
                                    ``(II) proceed with the award of a 
                                contract for preconstruction services 
                                under subparagraph (A)(ii); and
                                    ``(III) issue notices to proceed 
                                with a preliminary design and any work 
                                related to preliminary design, to the 
                                extent that those actions do not limit 
                                any reasonable range of alternatives.
                          ``(ii) Construction services phase.--A 
                      contracting agency shall not proceed with the 
                      award of the construction services phase of a 
                      contract under subparagraph (A)(iv) and shall not 
                      proceed, or permit

[[Page 126 STAT. 532]]

                      any consultant or contractor to proceed, with 
                      final design or construction until completion of 
                      the environmental review process required under 
                      section 102 of the National Environmental Policy 
                      Act of 1969 (42 U.S.C. 4332).
                          ``(iii) Approval requirement.--Prior to 
                      authorizing construction activities, the Secretary 
                      shall approve--
                                    ``(I) the price estimate of the 
                                contracting agency for the entire 
                                project; and
                                    ``(II) any price agreement with the 
                                general contractor for the project or a 
                                portion of the project.
                          ``(iv) Design activities.--
                                    ``(I) In general.--A contracting 
                                agency may proceed, at the expense of 
                                the contracting agency, with design 
                                activities at any level of detail for a 
                                project before completion of the review 
                                process required for the project under 
                                the National Environmental Policy Act of 
                                1969 (42 U.S.C. 4321 et seq.) without 
                                affecting subsequent approvals required 
                                for the project.
                                    ``(II) Reimbursement.--Design 
                                activities carried out under subclause 
                                (I) shall be eligible for Federal 
                                reimbursement as a project expense in 
                                accordance with the requirements under 
                                section 109(r).
                          ``(v) Termination provision.--The Secretary 
                      shall require a contract to include an appropriate 
                      termination provision in the event that a no-build 
                      alternative is selected.''.

    (b) <<NOTE: 23 USC 112 note.>> Regulations.--The Secretary shall 
promulgate such regulations as are necessary to carry out the amendment 
made by subsection (a).

    (c) <<NOTE: 23 USC 112 note.>> Effect on Experimental Program.--
Nothing in this section or the amendment made by this section affects 
the authority to carry out, or any project carried out under, any 
experimental program concerning construction manager risk that is being 
carried out by the Secretary as of the date of enactment of this Act.
SEC. 1304. INNOVATIVE PROJECT DELIVERY METHODS.

    (a) <<NOTE: 23 USC 101 note.>> Declaration of Policy.--
            (1) In general.--Congress declares that it is in the 
        national interest to promote the use of innovative technologies 
        and practices that increase the efficiency of construction of, 
        improve the safety of, and extend the service life of highways 
        and bridges.
            (2) Inclusions.--The innovative technologies and practices 
        described in paragraph (1) include state-of-the-art intelligent 
        transportation system technologies, elevated performance 
        standards, and new highway construction business practices that 
        improve highway safety and quality, accelerate project delivery, 
        and reduce congestion related to highway construction.

    (b) Federal Share.--Section 120(c) of title 23, United States Code, 
is amended by adding at the end the following:
            ``(3) Innovative project delivery.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), the Federal share payable on account 
                of a project,

[[Page 126 STAT. 533]]

                program, or activity carried out with funds apportioned 
                under paragraph (1), (2), or (5) of section 104(b) may, 
                at the discretion of the State, be up to 100 percent for 
                any such project, program, or activity that the 
                Secretary determines--
                          ``(i) contains innovative project delivery 
                      methods that improve work zone safety for 
                      motorists or workers and the quality of the 
                      facility;
                          ``(ii) contains innovative technologies, 
                      manufacturing processes, financing, or contracting 
                      methods that improve the quality of, extend the 
                      service life of, or decrease the long-term costs 
                      of maintaining highways and bridges;
                          ``(iii) accelerates project delivery while 
                      complying with other applicable Federal laws 
                      (including regulations) and not causing any 
                      significant adverse environmental impact; or
                          ``(iv) reduces congestion related to highway 
                      construction.
                    ``(B) Examples.--Projects, programs, and activities 
                described in subparagraph (A) may include the use of--
                          ``(i) prefabricated bridge elements and 
                      systems and other technologies to reduce bridge 
                      construction time;
                          ``(ii) innovative construction equipment, 
                      materials, or techniques, including the use of in-
                      place recycling technology and digital 3-
                      dimensional modeling technologies;
                          ``(iii) innovative contracting methods, 
                      including the design-build and the construction 
                      manager-general contractor contracting methods;
                          ``(iv) intelligent compaction equipment; or
                          ``(v) contractual provisions that offer a 
                      contractor an incentive payment for early 
                      completion of the project, program, or activity, 
                      subject to the condition that the incentives are 
                      accounted for in the financial plan of the 
                      project, when applicable.
                    ``(C) Limitations.--
                          ``(i) In general.--In each fiscal year, a 
                      State may use the authority under subparagraph (A) 
                      for up to 10 percent of the combined 
                      apportionments of the State under paragraphs (1), 
                      (2), and (5) of section 104(b).
                          ``(ii) Federal share increase.--The Federal 
                      share payable on account of a project, program, or 
                      activity described in subparagraph (A) may be 
                      increased by up to 5 percent of the total project 
                      cost.''.
SEC. 1305. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT 
                          DECISIONMAKING.

    (a) Flexibility.--Section 139(b) of title 23, United States Code, is 
amended--
            (1) in paragraph (2) by inserting ``, and any requirements 
        established under this section may be satisfied,'' after 
        ``exercised''; and
            (2) by adding at the end the following:
            ``(3) Programmatic compliance.--

[[Page 126 STAT. 534]]

                    ``(A) <<NOTE: Regulations.>> In general.--The 
                Secretary shall initiate a rulemaking to allow for the 
                use of programmatic approaches to conduct environmental 
                reviews that--
                          ``(i) eliminate repetitive discussions of the 
                      same issues;
                          ``(ii) focus on the actual issues ripe for 
                      analyses at each level of review; and
                          ``(iii) are consistent with--
                                    ``(I) the National Environmental 
                                Policy Act of 1969 (42 U.S.C. 4321 et 
                                seq.); and
                                    ``(II) other applicable laws.
                    ``(B) Requirements.--In carrying out subparagraph 
                (A), the Secretary shall--
                          ``(i) <<NOTE: Consultation.>> before 
                      initiating the rulemaking under that subparagraph, 
                      consult with relevant Federal agencies and State 
                      resource agencies, State departments of 
                      transportation, Indian tribes, and the public on 
                      the appropriate use and scope of the programmatic 
                      approaches;
                          ``(ii) emphasize the importance of 
                      collaboration among relevant Federal agencies, 
                      State agencies, and Indian tribes in undertaking 
                      programmatic reviews, especially with respect to 
                      including reviews with a broad geographic scope;
                          ``(iii) ensure that the programmatic reviews--
                                    ``(I) promote transparency, 
                                including of the analyses and data used 
                                in the environmental reviews, the 
                                treatment of any deferred issues raised 
                                by agencies or the public, and the 
                                temporal and special scales to be used 
                                to analyze such issues;
                                    ``(II) use accurate and timely 
                                information in reviews, including--
                                            ``(aa) criteria for 
                                        determining the general duration 
                                        of the usefulness of the review; 
                                        and
                                            ``(bb) the timeline for 
                                        updating any out-of-date review;
                                    ``(III) describe--
                                            ``(aa) the relationship 
                                        between programmatic analysis 
                                        and future tiered analysis; and
                                            ``(bb) the role of the 
                                        public in the creation of future 
                                        tiered analysis; and
                                    ``(IV) are available to other 
                                relevant Federal and State agencies, 
                                Indian tribes, and the public;
                          ``(iv) <<NOTE: Time period. Public notice and 
                      comments.>> allow not fewer than 60 days of public 
                      notice and comment on any proposed rule; and
                          ``(v) address any comments received under 
                      clause (iv).''.

    (b) Federal Lead Agency.--Section 139(c) of title 23, United States 
Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The Department of Transportation'' 
                and inserting the following:
                    ``(A) In general.--The Department of 
                Transportation''; and
                    (B) by adding at the end the following:

[[Page 126 STAT. 535]]

                    ``(B) Modal administration.--If the project requires 
                approval from more than 1 modal administration within 
                the Department, the Secretary may designate a single 
                modal administration to serve as the Federal lead agency 
                for the Department in the environmental review process 
                for the project.''.

    (c) Participating Agencies.--Section 139(d) of title 23, United 
States Code, is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) Effect of designation.--
                    ``(A) Requirement.--A participating agency shall 
                comply with the requirements of this section.
                    ``(B) Implication.--Designation as a participating 
                agency under this subsection shall not imply that the 
                participating agency--
                          ``(i) supports a proposed project; or
                          ``(ii) has any jurisdiction over, or special 
                      expertise with respect to evaluation of, the 
                      project.''; and
            (2) by striking paragraph (7) and inserting the following:
            ``(7) Concurrent reviews.--Each participating agency and 
        cooperating agency shall--
                    ``(A) carry out the obligations of that 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 conduct needed analysis or otherwise 
                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.''.

    (d) Project Initiation.--Section 139(e) of title 23, United States 
Code, is amended--
            (1) by striking ``The project sponsor'' and inserting the 
        following:
            ``(1) In general.--The project sponsor''; and
            (2) by adding at the end the following:
            ``(2) <<NOTE: Federal Register, publication.>> Submission of 
        documents.--The project sponsor may satisfy the requirement 
        under paragraph (1) by submitting to the Secretary any relevant 
        documents containing the information described in that 
        paragraph, including a draft notice for publication in the 
        Federal Register announcing the preparation of an environmental 
        review for the project.''.

    (e) Coordination and Scheduling.--Section 139(g)(1)(B)(i) of title 
23, United States Code, is amended by inserting ``and the concurrence 
of'' after ``consultation with''.
SEC. 1306. ACCELERATED DECISIONMAKING.

    Section 139(h) of title 23, United States Code, is amended by 
striking paragraph (4) and inserting the following:
            ``(4) Interim decision on achieving accelerated 
        decisionmaking.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 30 days after the close of the public comment 
                period on a draft environmental impact statement, the 
                Secretary may convene a meeting with the project 
                sponsor, lead agency, resource agencies,

[[Page 126 STAT. 536]]

                and any relevant State agencies to ensure that all 
                parties are on schedule to meet deadlines for decisions 
                to be made regarding the project.
                    ``(B) Deadlines.--The deadlines referred to in 
                subparagraph (A) shall be those established under 
                subsection (g), or any other deadlines established by 
                the lead agency, in consultation with the project 
                sponsor and other relevant agencies.
                    ``(C) Failure to assure.--If the relevant agencies 
                cannot provide reasonable assurances that the deadlines 
                described in subparagraph (B) will be met, the Secretary 
                may initiate the issue resolution and referral process 
                described under paragraph (5) and before the completion 
                of the record of decision.
            ``(5) Accelerated issue resolution and referral.--
                    ``(A) Agency issue resolution meeting.--
                          ``(i) In general.--A Federal agency of 
                      jurisdiction, project sponsor, or the Governor of 
                      a State in which a project is located may request 
                      an issue resolution meeting to be conducted by the 
                      lead agency.
                          ``(ii) Action by lead agency.--The lead agency 
                      shall convene an issue resolution meeting under 
                      clause (i) with the relevant participating 
                      agencies and the project sponsor, including the 
                      Governor only if the meeting was requested by the 
                      Governor, to resolve issues that could--
                                    ``(I) delay completion of the 
                                environmental review process; or
                                    ``(II) result in denial of any 
                                approvals required for the project under 
                                applicable laws.
                          ``(iii) <<NOTE: Deadline.>> Date.--A meeting 
                      requested under this subparagraph shall be held by 
                      not later than 21 days after the date of receipt 
                      of the request for the meeting, unless the lead 
                      agency determines that there is good cause to 
                      extend the time for the meeting.
                          ``(iv) Notification.--On receipt of a request 
                      for a meeting under this subparagraph, the lead 
                      agency shall notify all relevant participating 
                      agencies of the request, including the issue to be 
                      resolved, and the date for the meeting.
                          ``(v) Disputes.--If a relevant participating 
                      agency with jurisdiction over an approval required 
                      for a project under applicable law determines that 
                      the relevant information necessary to resolve the 
                      issue has not been obtained and could not have 
                      been obtained within a reasonable time, but the 
                      lead agency disagrees, the resolution of the 
                      dispute shall be forwarded to the heads of the 
                      relevant agencies for resolution.
                          ``(vi) Convention by lead agency.--A lead 
                      agency may convene an issue resolution meeting 
                      under this subsection at any time without the 
                      request of the Federal agency of jurisdiction, 
                      project sponsor, or the Governor of a State.
                    ``(B) Elevation of issue resolution.--
                          ``(i) <<NOTE: Deadline. Notification.>> In 
                      general.--If issue resolution is not achieved by 
                      not later than 30 days after the date of a 
                      relevant meeting under subparagraph (A), the

[[Page 126 STAT. 537]]

                      Secretary shall notify the lead agency, the heads 
                      of the relevant participating agencies, and the 
                      project sponsor (including the Governor only if 
                      the initial issue resolution meeting request came 
                      from the Governor) that an issue resolution 
                      meeting will be convened.
                          
                      ``(ii) <<NOTE: Meeting. Deadline.>> Requirements.--
                      The Secretary shall identify the issues to be 
                      addressed at the meeting and convene the meeting 
                      not later than 30 days after the date of issuance 
                      of the notice.
                    ``(C) Referral of issue resolution.--
                          ``(i) Referral to council on environmental 
                      quality.--
                                    ``(I) In general.--If resolution is 
                                not achieved by not later than 30 days 
                                after the date of an issue resolution 
                                meeting under subparagraph (B), the 
                                Secretary shall refer the matter to the 
                                Council on Environmental Quality.
                                    ``(II) Meeting.--Not later than 30 
                                days after the date of receipt of a 
                                referral from the Secretary under 
                                subclause (I), the Council on 
                                Environmental Quality shall hold an 
                                issue resolution meeting with the lead 
                                agency, the heads of relevant 
                                participating agencies, and the project 
                                sponsor (including the Governor only if 
                                an initial request for an issue 
                                resolution meeting came from the 
                                Governor).
                          ``(ii) Referral to the president.--If a 
                      resolution is not achieved by not later than 30 
                      days after the date of the meeting convened by the 
                      Council on Environmental Quality under clause 
                      (i)(II), the Secretary shall refer the matter 
                      directly to the President.
            ``(6) Financial penalty provisions.--
                    ``(A) In general.--A Federal agency of jurisdiction 
                over an approval required for a project under applicable 
                laws shall complete any required approval on an 
                expeditious basis using the shortest existing applicable 
                process.
                    ``(B) Failure to decide.--
                          ``(i) In general.--If an agency described in 
                      subparagraph (A) fails to render a decision under 
                      any Federal law relating to a project that 
                      requires the preparation of an environmental 
                      impact statement or environmental assessment, 
                      including the issuance or denial of a permit, 
                      license, or other approval by the date described 
                      in clause (ii), an amount of funding equal to the 
                      amounts specified in subclause (I) or (II) shall 
                      be rescinded from the applicable office of the 
                      head of the agency, or equivalent office to which 
                      the authority for rendering the decision has been 
                      delegated by law by not later than 1 day after the 
                      applicable date under clause (ii), and once each 
                      week thereafter until a final decision is 
                      rendered, subject to subparagraph (C)--
                                    ``(I) $20,000 for any project for 
                                which an annual financial plan under 
                                section 106(i) is required; or
                                    ``(II) $10,000 for any other project 
                                requiring preparation of an 
                                environmental assessment or 
                                environmental impact statement.

[[Page 126 STAT. 538]]

                          ``(ii) <<NOTE: Time period.>> Description of 
                      date.--The date referred to in clause (i) is the 
                      later of--
                                    ``(I) the date that is 180 days 
                                after the date on which an application 
                                for the permit, license, or approval is 
                                complete; and
                                    ``(II) the date that is 180 days 
                                after the date on which the Federal lead 
                                agency issues a decision on the project 
                                under the National Environmental Policy 
                                Act of 1969 (42 U.S.C. 4321 et seq.).
                    ``(C) Limitations.--
                          ``(i) In general.--No rescission of funds 
                      under subparagraph (B) relating to an individual 
                      project shall exceed, in any fiscal year, an 
                      amount equal to 2.5 percent of the funds made 
                      available for the applicable agency office.
                          ``(ii) <<NOTE: Deadline.>> Failure to 
                      decide.--The total amount rescinded in a fiscal 
                      year as a result of a failure by an agency to make 
                      a decision by an applicable deadline shall not 
                      exceed an amount equal to 7 percent of the funds 
                      made available for the applicable agency office 
                      for that fiscal year.
                    ``(D) No fault of agency.--A rescission of funds 
                under this paragraph shall not be made if the lead 
                agency for the project certifies that--
                          ``(i) the agency has not received necessary 
                      information or approvals from another entity, such 
                      as the project sponsor, in a manner that affects 
                      the ability of the agency to meet any requirements 
                      under State, local, or Federal law; or
                          ``(ii) significant new information or 
                      circumstances, including a major modification to 
                      an aspect of the project, requires additional 
                      analysis for the agency to make a decision on the 
                      project application.
                    ``(E) Limitation.--The Federal agency with 
                jurisdiction for the decision from which funds are 
                rescinded pursuant to this paragraph shall not reprogram 
                funds to the office of the head of the agency, or 
                equivalent office, to reimburse that office for the loss 
                of the funds.
                    ``(F) Audits.--In any fiscal year in which any funds 
                are rescinded from a Federal agency pursuant to this 
                paragraph, the Inspector General of that agency shall--
                          ``(i) conduct an audit to assess compliance 
                      with the requirements of this paragraph; and
                          ``(ii) not later than 120 days after the end 
                      of the fiscal year during which the rescission 
                      occurred, 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 describing the reasons 
                      why the transfers were levied, including 
                      allocations of resources.
                    ``(G) Effect of paragraph.--Nothing in this 
                paragraph affects or limits the application of, or 
                obligation to comply with, any Federal, State, local, or 
                tribal law.
            ``(7) Expedient decisions and reviews.--To ensure that 
        Federal environmental decisions and reviews are expeditiously 
        made--

[[Page 126 STAT. 539]]

                    ``(A) adequate resources made available under this 
                title shall be devoted to ensuring that applicable 
                environmental reviews under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.) are 
                completed on an expeditious basis and that the shortest 
                existing applicable process under that Act is 
                implemented; and
                    ``(B) <<NOTE: President. Deadline. Reports.>> the 
                President 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, not less frequently than 
                once every 120 days after the date of enactment of the 
                MAP-21, a report on the status and progress of the 
                following projects and activities funded under this 
                title with respect to compliance with applicable 
                requirements under the National Environmental Policy Act 
                of 1969 (42 U.S.C. 4321 et seq.):
                          ``(i) Projects and activities required to 
                      prepare an annual financial plan under section 
                      106(i).
                          ``(ii) A sample of not less than 5 percent of 
                      the projects requiring preparation of an 
                      environmental impact statement or environmental 
                      assessment in each State.''.
SEC. 1307. ASSISTANCE TO AFFECTED FEDERAL AND STATE AGENCIES.

    Section 139(j) of title 23, United States Code, is amended by adding 
at the end the following:
            ``(6) Memorandum of understanding.--Prior to providing funds 
        approved by the Secretary for dedicated staffing at an affected 
        Federal agency under paragraphs (1) and (2), the affected 
        Federal agency and the State agency shall enter into a 
        memorandum of understanding that establishes the projects and 
        priorities to be addressed by the use of the funds.''.
SEC. 1308. LIMITATIONS ON CLAIMS.

    Section 139(l) of title 23, United States Code, is amended--
            (1) in paragraph (1) by striking ``180 days'' and inserting 
        ``150 days''; and
            (2) in paragraph (2) by striking ``180 days'' and inserting 
        ``150 days''.
SEC. 1309. ACCELERATING COMPLETION OF COMPLEX PROJECTS WITHIN 4 
                          YEARS.

    Section 139 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(m) Enhanced Technical Assistance and Accelerated Project 
Completion.--
            ``(1) Definition of covered project.--In this subsection, 
        the term `covered project' means a project--
                    ``(A) that has an ongoing environmental impact 
                statement under the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.); and
                    ``(B) for which at least 2 years, beginning on the 
                date on which a notice of intent is issued, have elapsed 
                without the issuance of a record of decision.
            ``(2) Technical assistance.--At the request of a project 
        sponsor or the Governor of a State in which a project is 
        located, the Secretary shall provide additional technical 
        assistance to

[[Page 126 STAT. 540]]

        resolve for a covered project any outstanding issues and project 
        delay, including by--
                    ``(A) providing additional staff, training, and 
                expertise;
                    ``(B) facilitating interagency coordination;
                    ``(C) promoting more efficient collaboration; and
                    ``(D) supplying specialized onsite assistance.
            ``(3) Scope of work.--
                    ``(A) In general.--In providing technical assistance 
                for a covered project under this subsection, the 
                Secretary shall establish a scope of work that describes 
                the actions that the Secretary will take to resolve the 
                outstanding issues and project delays, including 
                establishing a schedule under subparagraph (B).
                    ``(B) Schedule.--
                          ``(i) <<NOTE: Deadline.>> In general.--The 
                      Secretary shall establish and meet a schedule for 
                      the completion of any permit, approval, review, or 
                      study, required for the covered project by the 
                      date that is not later than 4 years after the date 
                      on which a notice of intent for the covered 
                      project is issued.
                          ``(ii) Inclusions.--The schedule under clause 
                      (i) shall--
                                    ``(I) comply with all applicable 
                                laws;
                                    ``(II) require the concurrence of 
                                the Council on Environmental Quality and 
                                each participating agency for the 
                                project with the State in which the 
                                project is located or the project 
                                sponsor, as applicable; and
                                    ``(III) reflect any new information 
                                that becomes available and any changes 
                                in circumstances that may result in new 
                                significant impacts that could affect 
                                the timeline for completion of any 
                                permit, approval, review, or study 
                                required for the covered project.
            ``(4) Consultation.--In providing technical assistance for a 
        covered project under this subsection, the Secretary shall 
        consult, if appropriate, with resource and participating 
        agencies on all methods available to resolve the outstanding 
        issues and project delays for a covered project as expeditiously 
        as possible.
            ``(5) Enforcement.--
                    ``(A) In general.--All provisions of this section 
                shall apply to this subsection, including the financial 
                penalty provisions under subsection (h)(6).
                    ``(B) Restriction.--If the Secretary enforces this 
                subsection under subsection (h)(6), the Secretary may 
                use a date included in a schedule under paragraph (3)(B) 
                that is created pursuant to and is in compliance with 
                this subsection in lieu of the dates under subsection 
                (h)(6)(B)(ii).''.
SEC. 1310. INTEGRATION OF PLANNING AND ENVIRONMENTAL REVIEW.

    (a) In General.--Chapter 1 of title 23, United States Code (as 
amended by section 1115(a)), is amended by adding at the end the 
following:

[[Page 126 STAT. 541]]

``Sec. 168. Integration of planning and environmental review

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Environmental review process.--The term `environmental 
        review process' means the process for preparing for a project an 
        environmental impact statement, environmental assessment, 
        categorical exclusion, or other document prepared under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).
            ``(2) Planning product.--The term `planning product' means a 
        detailed and timely decision, analysis, study, or other 
        documented information that--
                    ``(A) is the result of an evaluation or 
                decisionmaking process carried out during transportation 
                planning, including a detailed corridor plan or a 
                transportation plan developed under section 134 that 
                fully analyzes impacts on mobility, adjacent 
                communities, and the environment;
                    ``(B) is intended to be carried into the 
                transportation project development process; and
                    ``(C) has been approved by the State, all local and 
                tribal governments where the project is located, and by 
                any relevant metropolitan planning organization.
            ``(3) Project.--The term `project' has the meaning given the 
        term in section 139(a).
            ``(4) Project sponsor.--The term `project sponsor' has the 
        meaning given the term in section 139(a).

    ``(b) Adoption of Planning Products for Use in NEPA Proceedings.--
            ``(1) In general.--Subject to the conditions set forth in 
        subsection (d), the Federal lead agency for a project may adopt 
        and use a planning product in proceedings relating to any class 
        of action in the environmental review process of the project.
            ``(2) Identification.--When the Federal lead agency makes a 
        determination to adopt and use a planning product, the Federal 
        lead agency shall identify those agencies that participated in 
        the development of the planning products.
            ``(3) Partial adoption of planning products.--The Federal 
        lead agency may adopt a planning product under paragraph (1) in 
        its entirety or may select portions for adoption.
            ``(4) Timing.--A determination under paragraph (1) with 
        respect to the adoption of a planning product may be made at the 
        time the lead agencies decide the appropriate scope of 
        environmental review for the project but may also occur later in 
        the environmental review process, as appropriate.

    ``(c) Applicability.--
            ``(1) Planning decisions.--Planning decisions that may be 
        adopted pursuant to this section include--
                    ``(A) whether tolling, private financial assistance, 
                or other special financial measures are necessary to 
                implement the project;
                    ``(B) a decision with respect to modal choice, 
                including a decision to implement corridor or subarea 
                study recommendations to advance different modal 
                solutions as separate projects with independent utility;
                    ``(C) a basic description of the environmental 
                setting;

[[Page 126 STAT. 542]]

                    ``(D) a decision with respect to methodologies for 
                analysis; and
                    ``(E) an identification of programmatic level 
                mitigation for potential impacts that the Federal lead 
                agency, in consultation with Federal, State, local, and 
                tribal resource agencies, determines are most 
                effectively addressed at a regional or national program 
                level, including--
                          ``(i) system-level measures to avoid, 
                      minimize, or mitigate impacts of proposed 
                      transportation investments on environmental 
                      resources, including regional ecosystem and water 
                      resources; and
                          ``(ii) potential mitigation activities, 
                      locations, and investments.
            ``(2) Planning analyses.--Planning analyses that may be 
        adopted pursuant to this section include studies with respect 
        to--
                    ``(A) travel demands;
                    ``(B) regional development and growth;
                    ``(C) local land use, growth management, and 
                development;
                    ``(D) population and employment;
                    ``(E) natural and built environmental conditions;
                    ``(F) environmental resources and environmentally 
                sensitive areas;
                    ``(G) potential environmental effects, including the 
                identification of resources of concern and potential 
                cumulative effects on those resources, identified as a 
                result of a statewide or regional cumulative effects 
                assessment; and
                    ``(H) mitigation needs for a proposed action, or for 
                programmatic level mitigation, for potential effects 
                that the Federal lead agency determines are most 
                effectively addressed at a regional or national program 
                level.

    ``(d) Conditions.--Adoption and use of a planning product under this 
section is subject to a determination by the Federal lead agency, with 
the concurrence of other participating agencies with relevant expertise 
and project sponsors as appropriate, and with an opportunity for public 
notice and comment and consideration of those comments by the Federal 
lead agency, that the following conditions have been met:
            ``(1) The planning product was developed through a planning 
        process conducted pursuant to applicable Federal law.
            ``(2) The planning product was developed by engaging in 
        active consultation with appropriate Federal and State resource 
        agencies and Indian tribes.
            ``(3) The planning process included broad multidisciplinary 
        consideration of systems-level or corridor-wide transportation 
        needs and potential effects, including effects on the human and 
        natural environment.
            ``(4) During the planning process, notice was provided 
        through publication or other means to Federal, State, local, and 
        tribal governments that might have an interest in the proposed 
        project, and to members of the general public, of the planning 
        products that the planning process might produce and that might 
        be relied on during any subsequent environmental review process, 
        and such entities have been provided an appropriate opportunity 
        to participate in the planning process leading to such planning 
        product.

[[Page 126 STAT. 543]]

            ``(5) After initiation of the environmental review process, 
        but prior to determining whether to rely on and use the planning 
        product, the lead Federal agency has made documentation relating 
        to the planning product available to Federal, State, local, and 
        tribal governments that may have an interest in the proposed 
        action, and to members of the general public, and has considered 
        any resulting comments.
            ``(6) There is no significant new information or new 
        circumstance that has a reasonable likelihood of affecting the 
        continued validity or appropriateness of the planning product.
            ``(7) The planning product has a rational basis and is based 
        on reliable and reasonably current data and reasonable and 
        scientifically acceptable methodologies.
            ``(8) The planning product is documented in sufficient 
        detail to support the decision or the results of the analysis 
        and to meet requirements for use of the information in the 
        environmental review process.
            ``(9) The planning product is appropriate for adoption and 
        use in the environmental review process for the project.
            ``(10) The planning product was approved not later than 5 
        years prior to date on which the information is adopted pursuant 
        to this section.

    ``(e) Effect of Adoption.--Any planning product adopted by the 
Federal lead agency in accordance with this section may be incorporated 
directly into an environmental review process document or other 
environmental document and may be relied upon and used by other Federal 
agencies in carrying out reviews of the project.
    ``(f) Rules of Construction.--
            ``(1) In general.--This section shall not be construed to 
        make the environmental review process applicable to the 
        transportation planning process conducted under this title and 
        chapter 53 of title 49.
            ``(2) Transportation planning activities.--Initiation of the 
        environmental review process as a part of, or concurrently with, 
        transportation planning activities does not subject 
        transportation plans and programs to the environmental review 
        process.
            ``(3) Planning products.--This section shall not be 
        construed to affect the use of planning products in the 
        environmental review process pursuant to other authorities under 
        any other provision of law or to restrict the initiation of the 
        environmental review process during planning.''.

    (b) Technical and Conforming Amendment.--The analysis for chapter 1 
of title 23, United States Code (as amended by section 1115(b)), is 
amended by adding at end the following:

``Sec. 168. Integration of planning and environmental review.''.

SEC. 1311. DEVELOPMENT OF PROGRAMMATIC MITIGATION PLANS.

    (a) In General.--Chapter 1 of title 23, United States Code (as 
amended by section 1310(a)), is amended by adding at the end the 
following:
``Sec. 169. Development of programmatic mitigation plans

    ``(a) In General.--As part of the statewide or metropolitan 
transportation planning process, a State or metropolitan planning 
organization may develop 1 or more programmatic mitigation plans

[[Page 126 STAT. 544]]

to address the potential environmental impacts of future transportation 
projects.
    ``(b) Scope.--
            ``(1) Scale.--A programmatic mitigation plan may be 
        developed on a regional, ecosystem, watershed, or statewide 
        scale.
            ``(2) Resources.--The plan may encompass multiple 
        environmental resources within a defined geographic area or may 
        focus on a specific resource, such as aquatic resources, 
        parkland, or wildlife habitat.
            ``(3) Project impacts.--The plan may address impacts from 
        all projects in a defined geographic area or may focus on a 
        specific type of project.
            ``(4) Consultation.--The scope of the plan shall be 
        determined by the State or metropolitan planning organization, 
        as appropriate, in consultation with the agency or agencies with 
        jurisdiction over the resources being addressed in the 
        mitigation plan.

    ``(c) Contents.--A programmatic mitigation plan may include--
            ``(1) an assessment of the condition of environmental 
        resources in the geographic area covered by the plan, including 
        an assessment of recent trends and any potential threats to 
        those resources;
            ``(2) an assessment of potential opportunities to improve 
        the overall quality of environmental resources in the geographic 
        area covered by the plan, through strategic mitigation for 
        impacts of transportation projects;
            ``(3) standard measures for mitigating certain types of 
        impacts;
            ``(4) parameters for determining appropriate mitigation for 
        certain types of impacts, such as mitigation ratios or criteria 
        for determining appropriate mitigation sites;
            ``(5) adaptive management procedures, such as protocols that 
        involve monitoring predicted impacts over time and adjusting 
        mitigation measures in response to information gathered through 
        the monitoring; and
            ``(6) acknowledgment of specific statutory or regulatory 
        requirements that must be satisfied when determining appropriate 
        mitigation for certain types of resources.

    ``(d) Process.--Before adopting a programmatic mitigation plan, a 
State or metropolitan planning organization shall--
            ``(1) <<NOTE: Consultation.>> consult with each agency with 
        jurisdiction over the environmental resources considered in the 
        programmatic mitigation plan;
            ``(2) make a draft of the plan available for review and 
        comment by applicable environmental resource agencies and the 
        public;
            ``(3) consider any comments received from such agencies and 
        the public on the draft plan; and
            ``(4) address such comments in the final plan.

    ``(e) Integration With Other Plans.--A programmatic mitigation plan 
may be integrated with other plans, including watershed plans, ecosystem 
plans, species recovery plans, growth management plans, and land use 
plans.
    ``(f) Consideration in Project Development and Permitting.--If a 
programmatic mitigation plan has been developed pursuant to this 
section, any Federal agency responsible for environmental reviews, 
permits, or approvals for a transportation project

[[Page 126 STAT. 545]]

may use the recommendations in a programmatic mitigation plan when 
carrying out the responsibilities under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(g) Preservation of Existing Authorities.--Nothing in this section 
limits the use of programmatic approaches to reviews under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.
    (b) Technical and Conforming Amendment.--The analysis for chapter 1 
of title 23, United States Code (as amended by section 1309(b)), is 
amended by adding at the end the following:

``Sec. 169. Development of programmatic mitigation plans.''.

SEC. 1312. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                          EXCLUSIONS.

    Section 326 of title 23, United States Code, is amended--
            (1) in subsection (a) by adding at the end the following:
            ``(4) Preservation of flexibility.--The Secretary shall not 
        require a State, as a condition of assuming responsibility under 
        this section, to forego project delivery methods that are 
        otherwise permissible for highway projects.'';
            (2) by striking subsection (d) and inserting the following:

    ``(d) Termination.--
            ``(1) Termination by the secretary.--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.
            ``(2) <<NOTE: Notice. Deadline.>> Termination by the 
        state.--The State may terminate the participation of the State 
        in the program at any time by providing to the Secretary a 
        notice not later than the date that is 90 days before the date 
        of termination, and subject to such terms and conditions as the 
        Secretary may provide.''; and
            (3) by adding at the end the following:

    ``(f) Legal Fees.--A State assuming the responsibilities of the 
Secretary under this section for a specific project may use funds 
apportioned to the State under section 104(b)(2) for attorney's fees 
directly attributable to eligible activities associated with the 
project.''.
SEC. 1313. SURFACE TRANSPORTATION PROJECT DELIVERY PROGRAM.

    (a) Program Name.--Section 327 of title 23, United States Code, is 
amended--
            (1) in the section heading by striking ``pilot''; and
            (2) in subsection (a)(1) by striking ``pilot''.

    (b) Assumption of Responsibility.--Section 327(a)(2) of title 23, 
United States Code, is amended--
            (1) in subparagraph (B)--
                    (A) in clause (i) by striking ``but''; and
                    (B) by striking clause (ii) and inserting the 
                following:
                          ``(ii) at the request of the State, the 
                      Secretary may also assign to the State, and the 
                      State may assume, the responsibilities of the 
                      Secretary with respect to 1 or more railroad, 
                      public transportation, or multimodal projects 
                      within the State under the National Environmental 
                      Policy Act of 1969 (42 U.S.C. 4321 et seq.);

[[Page 126 STAT. 546]]

                          ``(iii) in a State that has assumed the 
                      responsibilities of the Secretary under clause 
                      (ii), a recipient of assistance under chapter 53 
                      of title 49 may request that the Secretary 
                      maintain the responsibilities of the Secretary 
                      with respect to 1 or more public transportation 
                      projects within the State under the National 
                      Environmental Policy Act of 1969 (42 U.S.C. 13 
                      4321 et seq.); but
                          ``(iv) the Secretary may not assign--
                                    ``(I) any responsibility imposed on 
                                the Secretary by section 134 or 135 or 
                                section 5303 or 5304 of title 49; or
                                    ``(II) responsibility for any 
                                conformity determination required under 
                                section 176 of the Clean Air Act (42 
                                U.S.C. 7506).''; and
            (2) by adding at the end the following:
                    ``(F) Preservation of flexibility.--The Secretary 
                may not require a State, as a condition of participation 
                in the program, to forego project delivery methods that 
                are otherwise permissible for projects.
                    ``(G) Legal fees.--A State assuming the 
                responsibilities of the Secretary under this section for 
                a specific project may use funds apportioned to the 
                State under section 104(b)(2) for attorneys' fees 
                directly attributable to eligible activities associated 
                with the project.''.

    (c) State Participation.--Section 327(b) of title 23, United States 
Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Participating states.--All States are eligible to 
        participate in the program.''; and
            (2) in paragraph (2) by striking ``date of enactment of this 
        section, the Secretary shall promulgate'' and inserting ``date 
        on which amendments to this section by the MAP-21 take effect, 
        the Secretary shall amend, as appropriate,''.

    (d) Written Agreement.--Section 327(c) of title 23, United States 
Code, is amended--
            (1) in paragraph (3)(D) by striking the period at the end 
        and inserting a semicolon; and
            (2) by adding at the end the following:
            ``(4) require the State to provide to the Secretary any 
        information the Secretary considers necessary to ensure that the 
        State is adequately carrying out the responsibilities assigned 
        to the State;
            ``(5) have a term of not more than 5 years; and
            ``(6) be renewable.''.

    (e) Conforming Amendment.--Section 327(e) of title 23, United States 
Code, is amended by striking ``subsection (i)'' and inserting 
``subsection (j)''.
    (f) Audits.--Section 327(g)(1)(B) of title 23, United States Code, 
is amended by striking ``subsequent year'' and inserting ``of the third 
and fourth years''.
    (g) Monitoring.--Section 327 of title 23, United States Code, is 
amended--
            (1) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following:

[[Page 126 STAT. 547]]

    ``(h) Monitoring.--After the fourth year of the participation of a 
State in the program, the Secretary shall monitor compliance by the 
State with the written agreement, including the provision by the State 
of financial resources to carry out the written agreement.''.
    (h) Termination.--Section 327(j) of title 23, United States Code (as 
so redesignated), is amended to read as follows:
    ``(j) Termination.--
            ``(1) Termination by the 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) <<NOTE: Notification.>> notification of 
                      the determination of noncompliance; and
                          ``(ii) <<NOTE: Time period.>> 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 the 
                Secretary.
            ``(2) <<NOTE: Notice. Deadline.>> Termination by the 
        state.--The State may terminate the participation of the State 
        in the program at any time by providing to the Secretary a 
        notice by not later than the date that is 90 days before the 
        date of termination, and subject to such terms and conditions as 
        the Secretary may provide.''.

    (i) Clerical Amendment.--The item relating to section 327 in the 
analysis of title 23, United States Code, is amended to read as follows:

``327. Surface transportation project delivery program.''.

SEC. 1314. APPLICATION OF CATEGORICAL EXCLUSIONS FOR MULTIMODAL 
                          PROJECTS.

    (a) In General.--Section 304 of title 49, United States Code, is 
amended to read as follows:
``Sec. 304. Application of categorical exclusions for multimodal 
                projects

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Cooperating authority.--The term `cooperating 
        authority' means a Department of Transportation operating 
        authority that is not the lead authority with respect to a 
        project.
            ``(2) Lead authority.--The term `lead authority' means a 
        Department of Transportation operating administration or 
        secretarial office that--
                    ``(A) is the lead authority over a proposed 
                multimodal project; and
                    ``(B) has determined that the components of the 
                project that fall under the modal expertise of the lead 
                authority--
                          ``(i) satisfy the conditions for a categorical 
                      exclusion under implementing regulations or 
                      procedures of the lead authority under the 
                      National Environmental Policy Act of 1969 (42 
                      U.S.C. 4321 et seq.); and

[[Page 126 STAT. 548]]

                          ``(ii) do not require the preparation of an 
                      environmental assessment or environmental impact 
                      statement under that Act.
            ``(3) Multimodal project.--The term `multimodal project' has 
        the meaning given the term in section 139(a) of title 23.

    ``(b) Exercise of Authorities.--The authorities granted in this 
section may be exercised for a multimodal project, class of projects, or 
program of projects that are carried out under this title.
    ``(c) Application of Categorical Exclusions for Multimodal 
Projects.--In considering the environmental impacts of a proposed 
multimodal project, a lead authority may apply a categorical exclusion 
designated under the implementing regulations or procedures of a 
cooperating authority for other components of the project, subject to 
the conditions that--
            ``(1) the multimodal project is funded under 1 grant 
        agreement administered by the lead authority;
            ``(2) the multimodal project has components that require the 
        expertise of a cooperating authority to assess the environmental 
        impacts of the components;
            ``(3) the component of the project to be covered by the 
        categorical exclusion of the cooperating authority has 
        independent utility;
            ``(4) the cooperating authority, in consultation with the 
        lead authority--
                    ``(A) follows implementing regulations or procedures 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.); and
                    ``(B) determines that a categorical exclusion under 
                that Act applies to the components; and
            ``(5) the lead authority has determined that--
                    ``(A) the project, using the categorical exclusions 
                of the lead authority and each applicable cooperating 
                authority, does not individually or cumulatively have a 
                significant impact on the environment; and
                    ``(B) extraordinary circumstances do not exist that 
                merit additional analysis and documentation in an 
                environmental impact statement or environmental 
                assessment required under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.).

    ``(d) Modal Cooperation.--
            ``(1) In general.--A cooperating authority shall provide 
        modal expertise to the lead authority on such aspects of the 
        multimodal project in which the cooperating authority has 
        expertise.
            ``(2) Use of categorical exclusion.--In a case described in 
        paragraph (1), the 1 or more categorical exclusions of a 
        cooperating authority may be applied by the lead authority once 
        the cooperating authority reviews the project on behalf of the 
        lead authority and determines the project satisfies the 
        conditions for a categorical exclusion under the implementing 
        regulations or procedures of the cooperating authority under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) and this section.''.

[[Page 126 STAT. 549]]

    (b) Conforming Amendment.--The item relating to section 304 in the 
analysis for title 49, United States Code, is amended to read as 
follows:

``304. Application of categorical exclusions for multimodal projects''.

SEC. 1315. <<NOTE: 23 USC 109 note.>> CATEGORICAL EXCLUSIONS IN 
                          EMERGENCIES.

    (a) <<NOTE: Deadline. Notice. Regulations.>> In General.--Not later 
than 30 days after the date of enactment of this Act, for the repair or 
reconstruction of any road, highway, or bridge that is in operation or 
under construction when damaged by an emergency declared by the Governor 
of the State and concurred in by the Secretary, or for a disaster or 
emergency declared by the President pursuant to the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
the Secretary shall publish a notice of proposed rulemaking to treat any 
such repair or reconstruction activity as a class of action 
categorically excluded from the requirements relating to environmental 
assessments or environmental impact statements under section 1508.4 of 
title 40, Code of Federal Regulations, and section 771.117 of title 23, 
Code of Federal Regulations (as in effect on the date of enactment of 
this Act) if such repair or reconstruction activity is--
            (1) in the same location with the same capacity, dimensions, 
        and design as the original road, highway, or bridge as before 
        the declaration described in this section; and
            (2) commenced within a 2-year period beginning on the date 
        of a declaration described in this section.

    (b) Rulemaking.--
            (1) In general.--The Secretary shall ensure that the 
        rulemaking helps to conserve Federal resources and protects 
        public safety and health by providing for periodic evaluations 
        to determine if reasonable alternatives exist to roads, 
        highways, or bridges that repeatedly require repair and 
        reconstruction activities.
            (2) Reasonable alternatives.--The reasonable alternatives 
        described in paragraph (1) include actions that could reduce the 
        need for Federal funds to be expended on such repair and 
        reconstruction activities, better protect public safety and 
        health and the environment, and meet transportation needs as 
        described in relevant and applicable Federal, State, local and 
        tribal plans.
SEC. 1316. <<NOTE: 23 USC 109 note.>> CATEGORICAL EXCLUSIONS FOR 
                          PROJECTS WITHIN THE RIGHT-OF-WAY.

    (a) <<NOTE: Deadlines.>> In General.--The Secretary shall--
            (1) not later than 180 days after the date of enactment of 
        this Act, designate any project (as defined in section 101(a) of 
        title 23, United States Code) within an existing operational 
        right-of-way as an action categorically excluded from the 
        requirements relating to environmental assessments or 
        environmental impact statements under section 1508.4 of title 
        40, Code of Federal Regulations, and section 771.117(c) of title 
        23, Code of Federal Regulations; and
            (2) not later than 150 days after the date of enactment of 
        this Act, promulgate regulations to carry out paragraph (1).

    (b) Definition of an Operational Right-of-way.--In this section, the 
term ``operational right-of-way'' means all real property

[[Page 126 STAT. 550]]

interests acquired for the construction, operation, or mitigation of a 
project (as defined in section 101(a) of title 23, United States Code), 
including the locations of the roadway, bridges, interchanges, culverts, 
drainage, clear zone, traffic control signage, landscaping, and any rest 
areas with direct access to a controlled access highway.
SEC. 1317. <<NOTE: Deadline. 23 USC 109 note.>> CATEGORICAL 
                          EXCLUSION FOR PROJECTS OF LIMITED 
                          FEDERAL ASSISTANCE.

    Not later than 180 days after the date of enactment of this Act, the 
Secretary shall--*
            (1) designate as an action categorically excluded from the 
        requirements relating to environmental assessments or 
        environmental impact statements under section 1508.4 of title 
        40, Code of Federal Regulations, and section 771.117(c) of title 
        23, Code of Federal Regulations, any project--
                    (A) that receives less than $5,000,000 of Federal 
                funds; or
                    (B) with a total estimated cost of not more than 
                $30,000,000 and Federal funds comprising less than 15 
                percent of the total estimated project cost; and
            (2) not later than 150 days after the date of enactment of 
        this Act, promulgate regulations to carry out paragraph (1).
SEC. 1318. <<NOTE: 23 USC 109 note.>> PROGRAMMATIC AGREEMENTS AND 
                          ADDITIONAL CATEGORICAL EXCLUSIONS.

    (a) <<NOTE: Deadline.>> In General.--Not later than 60 days after 
the date of enactment of this Act, the Secretary shall--
            (1) <<NOTE: Survey.>> survey the use by the Department of 
        categorical exclusions in transportation projects since 2005;
            (2) <<NOTE: Publication.>> publish a review of the survey 
        that includes a description of--
                    (A) the types of actions categorically excluded; and
                    (B) any requests previously received by the 
                Secretary for new categorical exclusions; and
            (3) solicit requests from State departments of 
        transportation, transit authorities, metropolitan planning 
        organizations, or other government agencies for new categorical 
        exclusions.

    (b) <<NOTE: Deadline.>> New Categorical Exclusions.--Not later than 
120 days after the date of enactment of this Act, the Secretary shall 
publish a notice of proposed rulemaking to propose new categorical 
exclusions received by the Secretary under subsection (a), to the extent 
that the categorical exclusions meet the criteria for a categorical 
exclusion under section 1508.4 of title 40, Code of Federal Regulations, 
and section 771.117(a) of title 23, Code of Federal Regulations (as 
those regulations are in effect on the date of the notice).

    (c) <<NOTE: Regulations.>> Additional Actions.--The Secretary shall 
issue a proposed rulemaking to move the following types of actions from 
subsection (d) of section 771.117 of title 23, Code of Federal 
Regulations (as in effect on the date of enactment of this Act), to 
subsection (c) of that section, to the extent that such movement 
complies with the criteria for a categorical exclusion under section 
1508.4 of title 40, Code of Federal Regulations (as in effect on the 
date of enactment of this Act):
            (1) Modernization of a highway by resurfacing, restoration, 
        rehabilitation, reconstruction, adding shoulders, or adding 
        auxiliary lanes (including parking, weaving, turning, and 
        climbing).

[[Page 126 STAT. 551]]

            (2) Highway safety or traffic operations improvement 
        projects, including the installation of ramp metering control 
        devices and lighting.
            (3) Bridge rehabilitation, reconstruction, or replacement or 
        the construction of grade separation to replace existing at-
        grade railroad crossings.

    (d) Programmatic Agreements.--
            (1) In general.--The Secretary shall seek opportunities to 
        enter into programmatic agreements with the States that 
        establish efficient administrative procedures for carrying out 
        environmental and other required project reviews.
            (2) Inclusions.--Programmatic agreements authorized under 
        paragraph (1) may include agreements that allow a State to 
        determine on behalf of the Federal Highway Administration 
        whether a project is categorically excluded from the preparation 
        of an environmental assessment or environmental impact statement 
        under the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.).
            (3) Determinations.--An agreement described in paragraph (2) 
        may include determinations by the Secretary of the types of 
        projects categorically excluded (consistent with section 1508.4 
        of title 40, Code of Federal Regulations) in the State in 
        addition to the types listed in subsections (c) and (d) of 
        section 771.117 of title 23, Code of Federal Regulations (as in 
        effect on the date of enactment of this Act).
SEC. 1319. <<NOTE: 42 USC 4332a note.>> ACCELERATED DECISIONMAKING 
                          IN ENVIRONMENTAL REVIEWS.

    (a) In General.--In preparing a final environmental impact statement 
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.), if the lead agency modifies the statement in response to comments 
that are minor and are confined to factual corrections or explanations 
of why the comments do not warrant additional agency response, the lead 
agency may write on errata sheets attached to the statement instead of 
rewriting the draft statement, subject to the condition that the errata 
sheets--
            (1) cite the sources, authorities, or reasons that support 
        the position of the agency; and
            (2) if appropriate, indicate the circumstances that would 
        trigger agency reappraisal or further response.

    (b) Incorporation.--To the maximum extent practicable, the lead 
agency shall expeditiously develop a single document that consists of a 
final environmental impact statement and a record of decision, unless--
            (1) the final environmental impact statement makes 
        substantial changes to the proposed action that are relevant to 
        environmental or safety concerns; or
            (2) there are significant new circumstances or information 
        relevant to environmental concerns and that bear on the proposed 
        action or the impacts of the proposed action.
SEC. 1320. <<NOTE: 23 USC 139 note.>> MEMORANDA OF AGENCY 
                          AGREEMENTS FOR EARLY COORDINATION.

    (a) In General.--It is the sense of Congress that--
            (1) the Secretary and other Federal agencies with relevant 
        jurisdiction in the environmental review process should 
        cooperate with each other and other agencies on environmental 
        review and project delivery activities at the earliest 
        practicable

[[Page 126 STAT. 552]]

        time to avoid delays and duplication of effort later in the 
        process, head off potential conflicts, and ensure that planning 
        and project development decisions reflect environmental values; 
        and
            (2) such cooperation should include the development of 
        policies and the designation of staff that advise planning 
        agencies or project sponsors of studies or other information 
        foreseeably required for later Federal action and early 
        consultation with appropriate State and local agencies and 
        Indian tribes.

    (b) Technical Assistance.--If requested at any time by a State or 
local planning agency, the Secretary and other Federal agencies with 
relevant jurisdiction in the environmental review process, shall, to the 
extent practicable and appropriate, as determined by the agencies, 
provide technical assistance to the State or local planning agency on 
accomplishing the early coordination activities described in subsection 
(d).
    (c) Memorandum of Agency Agreement.--If requested at any time by a 
State or local planning agency, the lead agency, in consultation with 
other Federal agencies with relevant jurisdiction in the environmental 
review process, may establish memoranda of agreement with the project 
sponsor, State, and local governments and other appropriate entities to 
accomplish the early coordination activities described in subsection 
(d).
    (d) Early Coordination Activities.--Early coordination activities 
shall include, to the maximum extent practicable, the following:
            (1) Technical assistance on identifying potential impacts 
        and mitigation issues in an integrated fashion.
            (2) The potential appropriateness of using planning products 
        and decisions in later environmental reviews.
            (3) The identification and elimination from detailed study 
        in the environmental review process of the issues that are not 
        significant or that have been covered by prior environmental 
        reviews.
            (4) The identification of other environmental review and 
        consultation requirements so that the lead and cooperating 
        agencies may prepare, as appropriate, other required analyses 
        and studies concurrently with planning activities.
            (5) The identification by agencies with jurisdiction over 
        any permits related to the project of any and all relevant 
        information that will reasonably be required for the project.
            (6) The reduction of duplication between requirements under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) and State and local planning and environmental review 
        requirements, unless the agencies are specifically barred from 
        doing so by applicable law.
            (7) Timelines for the completion of agency actions during 
        the planning and environmental review processes.
            (8) Other appropriate factors.
SEC. 1321. <<NOTE: Review. Contracts.>> ENVIRONMENTAL PROCEDURES 
                          INITIATIVE.

    (a) Establishment.--For grant programs under which funds are 
distributed by formula by the Department, the Secretary shall establish 
an initiative to review and develop consistent procedures for 
environmental permitting and procurement requirements that

[[Page 126 STAT. 553]]

apply to a project carried out under title 23, United States Code, or 
chapter 53 of title 49, United States Code.
    (b) Report.--The Secretary shall publish the results of the 
initiative described in subsection (a) in an electronically accessible 
format.
SEC. 1322. REVIEW OF STATE ENVIRONMENTAL REVIEWS AND APPROVALS FOR 
                          THE PURPOSE OF ELIMINATING DUPLICATION 
                          OF ENVIRONMENTAL REVIEWS.

    For environmental reviews and approvals carried out on projects 
funded under title 23, United States Code, the Comptroller General of 
the United States shall--
            (1) review State laws and procedures for conducting 
        environmental reviews with regard to such projects and identify 
        the States that have environmental laws that provide 
        environmental protections and opportunities for public 
        involvement that are equivalent to those provided by Federal 
        environmental laws;
            (2) <<NOTE: Determination.>> determine the frequency and 
        cost of environmental reviews carried out at the Federal level 
        that are duplicative of State reviews that provide equivalent 
        environmental protections and opportunities for public 
        involvement; and
            (3) <<NOTE: Deadline.>> not later than 2 years after the 
        date of enactment of this Act, 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 that describes the results of the 
        review and determination made under this section.
SEC. 1323. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY.

    (a) Completion Time Assessments and Reports.--
            (1) In general.--For projects funded under title 23, United 
        States Code, the Secretary shall compare--
                    (A)(i) the completion times of categorical 
                exclusions, environmental assessments, and environmental 
                impact statements initiated after calendar year 2005; to
                    (ii) the completion times of categorical exclusions, 
                environmental assessments, and environmental impact 
                statements initiated during a period prior to calendar 
                year 2005; and
                    (B)(i) the completion times of categorical 
                exclusions, environmental assessments, and environmental 
                impact statements initiated during the period beginning 
                on January 1, 2005, and ending on the date of enactment 
                of this Act; to
                    (ii) the completion times of categorical exclusions, 
                environmental assessments, and environmental impact 
                statements initiated after the date of enactment of this 
                Act.
            (2) Report.--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) not later than 1 year after the date of 
                enactment of this Act, a report that--
                          (i) describes the results of the review 
                      conducted under paragraph (1)(A); and

[[Page 126 STAT. 554]]

                          (ii) identifies any change in the timing for 
                      completions, including the reasons for any such 
                      change and the reasons for delays in excess of 5 
                      years; and
                    (B) not later than 5 years after the date of 
                enactment of this Act, a report that--
                          (i) describes the results of the review 
                      conducted under paragraph (1)(B); and
                          (ii) identifies any change in the timing for 
                      completions, including the reasons for any such 
                      change and the reasons for delays in excess of 5 
                      years.

    (b) Additional Report.--Not later than 2 years after the date of 
enactment of this Act, 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 types and justification for the additional categorical exclusions 
granted under the authority provided under sections 1316 and 1317.
    (c) GAO Report.--The Comptroller General of the United States 
shall--
            (1) assess the reforms carried out under this subtitle 
        (including the amendments made by this subtitle); and
            (2) not later than 5 years after the date of enactment of 
        this Act, 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 that 
        describes the results of the assessment.

    (d) Inspector General Report.--The Inspector General of the 
Department of Transportation shall--
            (1) assess the reforms carried out under this subtitle 
        (including the amendments made by this subtitle); and
            (2) 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) not later than 2 years after the date of 
                enactment of this Act, an initial report of the findings 
                of the Inspector General; and
                    (B) not later than 4 years after the date of 
                enactment of this Act, a final report of the findings.

                       Subtitle D--Highway Safety

SEC. 1401. <<NOTE: 23 USC 137 note.>> JASON'S LAW.

    (a) In General.--It is the sense of Congress that it is a national 
priority to address projects under this section for the shortage of 
long-term parking for commercial motor vehicles on the National Highway 
System to improve the safety of motorized and nonmotorized users and for 
commercial motor vehicle operators.
    (b) Eligible Projects.--Eligible projects under this section are 
those that--
            (1) serve the National Highway System; and
            (2) may include the following:
                    (A) Constructing safety rest areas (as defined in 
                section 120(c) of title 23, United States Code) that 
                include parking for commercial motor vehicles.

[[Page 126 STAT. 555]]

                    (B) Constructing commercial motor vehicle parking 
                facilities adjacent to commercial truck stops and travel 
                plazas.
                    (C) Opening existing facilities to commercial motor 
                vehicle parking, including inspection and weigh stations 
                and park-and-ride facilities.
                    (D) Promoting the availability of publicly or 
                privately provided commercial motor vehicle parking on 
                the National Highway System using intelligent 
                transportation systems and other means.
                    (E) Constructing turnouts along the National Highway 
                System for commercial motor vehicles.
                    (F) Making capital improvements to public commercial 
                motor vehicle parking facilities currently closed on a 
                seasonal basis to allow the facilities to remain open 
                year-round.
                    (G) Improving the geometric design of interchanges 
                on the National Highway System to improve access to 
                commercial motor vehicle parking facilities.

    (c) <<NOTE: Deadline.>> Survey and Comparative Assessment.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary, in consultation with 
        relevant State motor carrier safety personnel, shall conduct a 
        survey of each State--
                    (A) to evaluate the capability of the State to 
                provide adequate parking and rest facilities for 
                commercial motor vehicles engaged in interstate 
                transportation;
                    (B) to assess the volume of commercial motor vehicle 
                traffic in the State; and
                    (C) to develop a system of metrics to measure the 
                adequacy of commercial motor vehicle parking facilities 
                in the State.
            (2) <<NOTE: Public information. Web posting.>> Results.--The 
        results of the survey under paragraph (1) shall be made 
        available to the public on the website of the Department of 
        Transportation.
            (3) Periodic updates.--The Secretary shall periodically 
        update the survey under this subsection.

    (d) Electric Vehicle and Natural Gas Vehicle Infrastructure.--
            (1) In general.--Except as provided in paragraph (2), a 
        State may establish electric vehicle charging stations or 
        natural gas vehicle refueling stations for the use of battery-
        powered or natural gas-fueled trucks or other motor vehicles at 
        any parking facility funded or authorized under this Act or 
        title 23, United States Code.
            (2) Exception.--Electric vehicle battery charging stations 
        or natural gas vehicle refueling stations may not be established 
        or supported under paragraph (1) if commercial establishments 
        serving motor vehicle users are prohibited by section 111 of 
        title 23, United States Code.
            (3) Funds.--Charging or refueling stations described in 
        paragraph (1) shall be eligible for the same funds as are 
        available for the parking facilities in which the stations are 
        located.

    (e) Treatment of Projects.--Notwithstanding any other provision of 
law, projects funded through the authority provided under this section 
shall be treated as projects on a Federal-aid highway under chapter 1 of 
title 23, United States Code.

[[Page 126 STAT. 556]]

SEC. 1402. OPEN CONTAINER REQUIREMENTS.

    Section 154(c) of title 23, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Fiscal year 2012 and thereafter.--
                    ``(A) Reservation of funds.--On October 1, 2011, and 
                each October 1 thereafter, if a State has not enacted or 
                is not enforcing an open container law described in 
                subsection (b), the Secretary shall reserve an amount 
                equal to 2.5 percent of the funds to be apportioned to 
                the State on that date under each of paragraphs (1) and 
                (2) of section 104(b) until the State certifies to the 
                Secretary the means by which the State will use those 
                reserved funds in accordance with subparagraphs (A) and 
                (B) of paragraph (1) and paragraph (3).
                    ``(B) Transfer of funds.--As soon as practicable 
                after the date of receipt of a certification from a 
                State under subparagraph (A), the Secretary shall--
                          ``(i) transfer the reserved funds identified 
                      by the State for use as described in subparagraphs 
                      (A) and (B) of paragraph (1) to the apportionment 
                      of the State under section 402; and
                          ``(ii) release the reserved funds identified 
                      by the State as described in paragraph (3).'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Use for highway safety improvement program.--
                    ``(A) In general.--A State may elect to use all or a 
                portion of the funds transferred under paragraph (2) for 
                activities eligible under section 148.
                    ``(B) State departments of transportation.--If the 
                State makes an election under subparagraph (A), the 
                funds shall be transferred to the department of 
                transportation of the State, which shall be responsible 
                for the administration of the funds.''; and
            (3) by striking paragraph (5) and inserting the following:
            ``(5) Derivation of amount to be transferred.--The amount to 
        be transferred under paragraph (2) may be derived from the 
        following:
                    ``(A) The apportionment of the State under section 
                104(b)(l).
                    ``(B) The apportionment of the State under section 
                104(b)(2).''.
SEC. 1403. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING 
                          WHILE INTOXICATED OR DRIVING UNDER THE 
                          INFLUENCE.

    (a) Definitions.--Section 164(a) of title 23, United States Code, is 
amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively; and
            (3) in paragraph (4) (as so redesignated) by striking 
        subparagraph (A) and inserting the following:
                    ``(A) receive--
                          ``(i) a suspension of all driving privileges 
                      for not less than 1 year; or
                          ``(ii) a suspension of unlimited driving 
                      privileges for 1 year, allowing for the 
                      reinstatement of limited

[[Page 126 STAT. 557]]

                      driving privileges subject to restrictions and 
                      limited exemptions as established by State law, if 
                      an ignition interlock device is installed for not 
                      less than 1 year on each of the motor vehicles 
                      owned or operated, or both, by the individual;''.

    (b) Transfer of Funds.--Section 164(b) of title 23, United States 
Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Fiscal year 2012 and thereafter.--
                    ``(A) Reservation of funds.--On October 1, 2011, and 
                each October 1 thereafter, if a State has not enacted or 
                is not enforcing a repeat intoxicated driver law, the 
                Secretary shall reserve an amount equal to 2.5 percent 
                of the funds to be apportioned to the State on that date 
                under each of paragraphs (1) and (2) of section 104(b) 
                until the State certifies to the Secretary the means by 
                which the States will use those reserved funds among the 
                uses authorized under subparagraphs (A) and (B) of 
                paragraph (1), and paragraph (3).
                    ``(B) Transfer of funds.--As soon as practicable 
                after the date of receipt of a certification from a 
                State under subparagraph (A), the Secretary shall--
                          ``(i) transfer the reserved funds identified 
                      by the State for use as described in subparagraphs 
                      (A) and (B) of paragraph (1) to the apportionment 
                      of the State under section 402; and
                          ``(ii) release the reserved funds identified 
                      by the State as described in paragraph (3).'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Use for highway safety improvement program.--
                    ``(A) In general.--A State may elect to use all or a 
                portion of the funds transferred under paragraph (2) for 
                activities eligible under section 148.
                    ``(B) State departments of transportation.--If the 
                State makes an election under subparagraph (A), the 
                funds shall be transferred to the department of 
                transportation of the State, which shall be responsible 
                for the administration of the funds.''; and
            (3) by striking paragraph (5) and inserting the following:
            ``(5) Derivation of amount to be transferred.--The amount to 
        be transferred under paragraph (2) may be derived from the 
        following:
                    ``(A) The apportionment of the State under section 
                104(b)(1).
                    ``(B) The apportionment of the State under section 
                104(b)(2).''.
SEC. 1404. ADJUSTMENTS TO PENALTY PROVISIONS.

    (a) Vehicle Weight Limitations.--Section 127(a)(1) of title 23, 
United States Code, is amended by striking ``No funds shall be 
apportioned in any fiscal year under section 104(b)(1) of this title to 
any State which'' and inserting ``The Secretary shall withhold 50 
percent of the apportionment of a State under section 104(b)(1) in any 
fiscal year in which the State''.
    (b) Control of Junkyards.--Section 136 of title 23, United States 
Code, is amended--
            (1) in subsection (b), in the first sentence--

[[Page 126 STAT. 558]]

                    (A) by striking ``10 per centum'' and inserting ``7 
                percent''; and
                    (B) by striking ``section 104 of this title'' and 
                inserting ``paragraphs (1) through (5) of section 
                104(b)''; and
            (2) by adding at the end the following:

    ``(n) Definitions.--For purposes of this section, the terms `primary 
system' and `Federal-aid primary system' mean any highway that is on the 
National Highway System, which includes the Interstate Highway 
System.''.
    (c) Enforcement of Vehicle Size and Weight Laws.--Section 141(b)(2) 
of title 23, United States Code, is amended--
            (1) by striking ``10 per centum'' and inserting ``7 
        percent''; and
            (2) by striking ``section 104 of this title'' and inserting 
        ``paragraphs (1) through (5) of section 104(b)''.

    (d) Proof of Payment of the Heavy Vehicle Use Tax.--Section 141(c) 
of title 23, United States Code, is amended--
            (1) by striking ``section 104(b)(4)'' each place it appears 
        and inserting ``section 104(b)(1)''; and
            (2) in the first sentence by striking ``25 per centum'' and 
        inserting ``8 percent''.

    (e) Use of Safety Belts.--Section 153(h) of title 23, United States 
Code, is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1);
            (3) in paragraph (1) (as so redesignated)--
                    (A) by striking the paragraph heading and inserting 
                ``Prior to fiscal year 2012''; and
                    (B) by inserting ``and before October 1, 2011,'' 
                after ``September 30, 1994,''; and
            (4) by inserting after paragraph (1) (as so redesignated) 
        the following:
            ``(2) Fiscal year 2012 and thereafter.--If, at any time in a 
        fiscal year beginning after September 30, 2011, a State does not 
        have in effect a law described in subsection (a)(2), the 
        Secretary shall transfer an amount equal to 2 percent of the 
        funds apportioned to the State for the succeeding fiscal year 
        under each of paragraphs (1) through (3) of section 104(b) to 
        the apportionment of the State under section 402.''.

    (f) National Minimum Drinking Age.--Section 158(a)(1) of title 23, 
United States Code, is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
                    ``(A) Fiscal years before 2012.--The Secretary''; 
                and
            (2) by adding at the end the following:
                    ``(B) Fiscal year 2012 and thereafter.--For fiscal 
                year 2012 and each fiscal year thereafter, the amount to 
                be withheld under this section shall be an amount equal 
                to 8 percent of the amount apportioned to the 
                noncompliant State, as described in subparagraph (A), 
                under paragraphs (1) and (2) of section 104(b).''.

    (g) Drug Offenders.--Section 159 of title 23, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraph (2) as paragraph (1);

[[Page 126 STAT. 559]]

                    (C) in paragraph (1) (as so redesignated) by 
                striking ``(including any amounts withheld under 
                paragraph (1))''; and
                    (D) by inserting after paragraph (1) (as so 
                redesignated) the following:
            ``(2) Fiscal year 2012 and thereafter.--The Secretary shall 
        withhold an amount equal to 8 percent of the amount required to 
        be apportioned to any State under each of paragraphs (1) and (2) 
        of section 104(b) on the first day of each fiscal year beginning 
        after September 30, 2011, if the State fails to meet the 
        requirements of paragraph (3) on the first day of the fiscal 
        year.''; and
            (2) by striking subsection (b) and inserting the following:

    ``(b) Effect of Noncompliance.--No funds withheld under this section 
from apportionments to any State shall be available for apportionment to 
that State.''.
    (h) Zero Tolerance Blood Alcohol Concentration for Minors.--Section 
161(a) of title 23, United States Code, is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1);
            (3) in paragraph (1) (as so redesignated)--
                    (A) by striking the paragraph heading and inserting 
                ``Prior to fiscal year 2012''; and
                    (B) by inserting ``through fiscal year 2011'' after 
                ``each fiscal year thereafter''; and
            (4) by inserting after paragraph (1) (as so redesignated) 
        the following:
            ``(2) Fiscal year 2012 and thereafter.--The Secretary shall 
        withhold an amount equal to 8 percent of the amount required to 
        be apportioned to any State under each of paragraphs (1) and (2) 
        of section 104(b) on October 1, 2011, and on October 1 of each 
        fiscal year thereafter, if the State does not meet the 
        requirement of paragraph (3) on that date.''.

    (i) Operation of Motor Vehicles by Intoxicated Persons.--Section 
163(e) of title 23, United States Code, is amended by striking 
paragraphs (1) and (2) and inserting the following:
            ``(1) Fiscal years 2007 through 2011.--On October 1, 2006, 
        and October 1 of each fiscal year thereafter through fiscal year 
        2011, if a State has not enacted or is not enforcing a law 
        described in subsection (a), the Secretary shall withhold an 
        amount equal to 8 percent of the amounts to be apportioned to 
        the State on that date under each of paragraphs (1), (3), and 
        (4) of section 104(b).
            ``(2) Fiscal year 2012 and thereafter.--On October 1, 2011, 
        and October 1 of each fiscal year thereafter, if a State has not 
        enacted or is not enforcing a law described in subsection (a), 
        the Secretary shall withhold an amount equal to 6 percent of the 
        amounts to be apportioned to the State on that date under each 
        of paragraphs (1) and (2) of section 104(b).''.

    (j) Commercial Driver's License.--Section 31314 of title 49, United 
States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:

    ``(c) Penalties Imposed in Fiscal Year 2012 and Thereafter.--
Effective beginning on October 1, 2011--

[[Page 126 STAT. 560]]

            ``(1) the penalty for the first instance of noncompliance by 
        a State under this section shall be not more than an amount 
        equal to 4 percent of funds required to be apportioned to the 
        noncompliant State under paragraphs (1) and (2) of section 
        104(b) of title 23; and
            ``(2) the penalty for subsequent instances of noncompliance 
        shall be not more than an amount equal to 8 percent of funds 
        required to be apportioned to the noncompliant State under 
        paragraphs (1) and (2) of section 104(b) of title 23.''.
SEC. 1405. <<NOTE: Deadline.>> HIGHWAY WORKER SAFETY.

    Not later than 60 days after the date of enactment of this Act, the 
Secretary shall modify section 630.1108(a) of title 23, Code of Federal 
Regulations (as in effect on the date of enactment of this Act), to 
ensure that--
            (1) at a minimum, positive protective measures are used to 
        separate workers on highway construction projects from motorized 
        traffic in all work zones conducted under traffic in areas that 
        offer workers no means of escape (such as tunnels and bridges), 
        unless an engineering study determines otherwise;
            (2) temporary longitudinal traffic barriers are used to 
        protect workers on highway construction projects in long-
        duration stationary work zones when the project design speed is 
        anticipated to be high and the nature of the work requires 
        workers to be within 1 lane-width from the edge of a live travel 
        lane, unless--
                    (A) an analysis by the project sponsor determines 
                otherwise; or
                    (B) the project is outside of an urbanized area and 
                the annual average daily traffic load of the applicable 
                road is less than 100 vehicles per hour; and
            (3) when positive protective devices are necessary for 
        highway construction projects, those devices are paid for on a 
        unit-pay basis, unless doing so would create a conflict with 
        innovative contracting approaches, such as design-build or some 
        performance-based contracts under which the contractor is paid 
        to assume a certain risk allocation and payment is generally 
        made on a lump-sum basis.

                        Subtitle E--Miscellaneous

SEC. 1501. REAL-TIME RIDESHARING.

    Paragraph (3) of section 101(a) of title 23, United States Code (as 
redesignated by section 1103(a)(2)), is amended by striking ``and 
designating existing facilities for use for preferential parking for 
carpools'' and inserting ``designating existing facilities for use for 
preferential parking for carpools, and real-time ridesharing projects, 
such as projects where drivers, using an electronic transfer of funds, 
recover costs directly associated with the trip provided through the use 
of location technology to quantify those direct costs, subject to the 
condition that the cost recovered does not exceed the cost of the trip 
provided''.

[[Page 126 STAT. 561]]

SEC. 1502. PROGRAM EFFICIENCIES.

    The first sentence of section 102(b) of title 23, United States 
Code, is amended by striking ``made available for such engineering'' and 
inserting ``reimbursed for the preliminary engineering''.
SEC. 1503. PROJECT APPROVAL AND OVERSIGHT.

    (a) In General.--Section 106 of title 23, United States Code, is 
amended--
            (1) in subsection (a)(2) by inserting ``recipient'' before 
        ``formalizing'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                          (i) in the heading, by striking ``Non-
                      interstate'';
                          (ii) by striking ``but not on the Interstate 
                      System''; and inserting ``, including projects on 
                      the Interstate System''; and
                          (iii) by striking ``of projects'' and all that 
                      follows through the period at the end and 
                      inserting ``with respect to the projects unless 
                      the Secretary determines that the assumption is 
                      not appropriate.''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Limitation on interstate projects.--
                    ``(A) In general.--The Secretary shall not assign 
                any responsibilities to a State for projects the 
                Secretary determines to be in a high risk category, as 
                defined under subparagraph (B).
                    ``(B) High risk categories.--The Secretary may 
                define the high risk categories under this subparagraph 
                on a national basis, a State-by-State basis, or a 
                national and State-by-State basis, as determined to be 
                appropriate by the Secretary.'';
            (3) in subsection (e)--
                    (A) in paragraph (1)(A)--
                          (i) in the matter preceding clause (i)--
                                    (I) by striking ``concept'' and 
                                inserting ``planning''; and
                                    (II) by striking 
                                ``multidisciplined'' and inserting 
                                ``multidisciplinary''; and
                          (ii) by striking clause (i) and inserting the 
                      following:
                          ``(i) providing the needed functions safely, 
                      reliably, and at the lowest overall lifecycle 
                      cost;'';
                    (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A) 
                      by striking ``or other cost-reduction analysis'';
                          (ii) in subparagraph (A)--
                                    (I) by striking ``Federal-aid 
                                system'' and inserting ``National 
                                Highway System receiving Federal 
                                assistance''; and
                                    (II) by striking ``$25,000,000'' and 
                                inserting ``$50,000,000''; and
                          (iii) in subparagraph (B)--
                                    (I) by inserting ``on the National 
                                Highway System receiving Federal 
                                assistance'' after ``a bridge project''; 
                                and

[[Page 126 STAT. 562]]

                                    (II) by striking ``$20,000,000'' and 
                                inserting ``$40,000,000''; and
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Requirements.--
                    ``(A) Value engineering program.--The State shall 
                develop and carry out a value engineering program that--
                          ``(i) establishes and documents value 
                      engineering program policies and procedures;
                          ``(ii) ensures that the required value 
                      engineering analysis is conducted before 
                      completing the final design of a project;
                          ``(iii) ensures that the value engineering 
                      analysis that is conducted, and the 
                      recommendations developed and implemented for each 
                      project, are documented in a final value 
                      engineering report; and
                          ``(iv) <<NOTE: Reports.>> monitors, evaluates, 
                      and annually submits to the Secretary a report 
                      that describes the results of the value analyses 
                      that are conducted and the recommendations 
                      implemented for each of the projects described in 
                      paragraph (2) that are completed in the State.
                    ``(B) Bridge projects.--The value engineering 
                analysis for a bridge project under paragraph (2) 
                shall--
                          ``(i) include bridge superstructure and 
                      substructure requirements based on construction 
                      material; and
                          ``(ii) be evaluated by the State--
                                    ``(I) on engineering and economic 
                                bases, taking into consideration 
                                acceptable designs for bridges; and
                                    ``(II) using an analysis of 
                                lifecycle costs and duration of project 
                                construction.
            ``(5) Design-build projects.--A requirement to provide a 
        value engineering analysis under this subsection shall not apply 
        to a project delivered using the design-build method of 
        construction.'';
            (4) in subsection (h)--
                    (A) in paragraph (1)(B) by inserting ``, including a 
                phasing plan when applicable'' after ``financial plan''; 
                and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Financial plan.--A financial plan--
                    ``(A) shall be based on detailed estimates of the 
                cost to complete the project;
                    ``(B) shall 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;
                    ``(C) may include a phasing plan that identifies 
                fundable incremental improvements or phases that will 
                address the purpose and the need of the project in the 
                short term in the event there are insufficient financial 
                resources to complete the entire project. If a phasing 
                plan is adopted for a project pursuant to this section, 
                the project shall be deemed to satisfy the fiscal 
                constraint requirements in the statewide and 
                metropolitan planning requirements in sections 134 and 
                135; and

[[Page 126 STAT. 563]]

                    ``(D) shall assess the appropriateness of a public-
                private partnership to deliver the project.''; and
            (5) by adding at the end the following:

    ``(j) Use of Advanced Modeling Technologies.--
            ``(1) Definition of advanced modeling technology.--In this 
        subsection, the term `advanced modeling technology' means an 
        available or developing technology, including 3-dimensional 
        digital modeling, that can--
                    ``(A) accelerate and improve the environmental 
                review process;
                    ``(B) increase effective public participation;
                    ``(C) enhance the detail and accuracy of project 
                designs;
                    ``(D) increase safety;
                    ``(E) accelerate construction, and reduce 
                construction costs; or
                    ``(F) otherwise expedite project delivery with 
                respect to transportation projects that receive Federal 
                funding.
            ``(2) Program.--With respect to transportation projects that 
        receive Federal funding, the Secretary shall encourage the use 
        of advanced modeling technologies during environmental, 
        planning, financial management, design, simulation, and 
        construction processes of the projects.
            ``(3) Activities.--In carrying out paragraph (2), the 
        Secretary shall--
                    ``(A) compile information relating to advanced 
                modeling technologies, including industry best practices 
                with respect to the use of the technologies;
                    ``(B) disseminate to States information relating to 
                advanced modeling technologies, including industry best 
                practices with respect to the use of the technologies; 
                and
                    ``(C) promote the use of advanced modeling 
                technologies.
            ``(4) <<NOTE: Web posting.>> Comprehensive plan.--The 
        Secretary shall develop and publish on the public website of the 
        Department of Transportation a detailed and comprehensive plan 
        for the implementation of paragraph (2).''.

    (b) Review of Oversight Program.--
            (1) In general.--The Secretary shall review the oversight 
        program established under section 106(g) of title 23, United 
        States Code, to determine the efficacy of the program in 
        monitoring the effective and efficient use of funds authorized 
        to carry out title 23, United States Code.
            (2) Minimum requirements for review.--At a minimum, the 
        review under paragraph (1) shall assess the capability of the 
        program to--
                    (A) identify projects funded under title 23, United 
                States Code, for which there are cost or schedule 
                overruns; and
                    (B) evaluate the extent of such overruns.
            (3) Report to congress.--Not later than 2 years after the 
        date of enactment of this Act, the Secretary shall transmit 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 review 
        conducted under paragraph (1), which shall include

[[Page 126 STAT. 564]]

        recommendations for legislative changes to improve the oversight 
        program established under section 106(g) of title 23, United 
        States Code.

    (c) <<NOTE: 23 USC 104 note.>> Transparency and Accountability.--
            (1) <<NOTE: Web posting.>> Data collection.--The Secretary 
        shall compile and make available on the public website of the 
        Department of Transportation the annual expenditure data for 
        funds made available under title 23 and chapter 53 of title 49, 
        United States Code.
            (2) Requirements.--In carrying out paragraph (1), the 
        Secretary shall ensure that the data made available on the 
        public website of the Department of Transportation--
                    (A) is organized by project and State;
                    (B) to the maximum extent practicable, is updated 
                regularly to reflect the current status of obligations, 
                expenditures, and Federal-aid projects; and
                    (C) can be searched and downloaded by users of the 
                website.
            (3) <<NOTE: Time period.>> Report to congress.--The 
        Secretary shall annually submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works and the Committee on Banking, Housing, and Urban Affairs 
        of the Senate a report containing a summary of the data 
        described in paragraph (1) for the 1-year period ending on the 
        date on which the report is submitted.
SEC. 1504. STANDARDS.

    Section 109 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(r) Pavement Markings.--The Secretary shall not approve any 
pavement markings project that includes the use of glass beads 
containing more than 200 parts per million of arsenic or lead, as 
determined in accordance with Environmental Protection Agency testing 
methods 3052, 6010B, or 6010C.''.
SEC. 1505. JUSTIFICATION REPORTS FOR ACCESS POINTS ON THE 
                          INTERSTATE SYSTEM.

    Section 111 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(e) Justification Reports.--If the Secretary requests or requires 
a justification report for a project that would add a point of access 
to, or exit from, the Interstate System, the Secretary may permit a 
State transportation department to approve the report.''.
SEC. 1506. CONSTRUCTION.

    Section 114(b) of title 23, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Limitation on convict labor.--Convict labor shall not 
        be used in construction of Federal-aid highways or portions of 
        Federal-aid highways unless the labor is performed by convicts 
        who are on parole, supervised release, or probation.''; and
                    (B) in paragraph (3) by inserting ``in existence 
                during that period'' after ``located on a Federal-aid 
                system''; and

[[Page 126 STAT. 565]]

            (2) by adding at the end the following:

    ``(d) Veterans Employment.---
            ``(1) <<NOTE: Contracts.>> In general.--Subject to paragraph 
        (2), a recipient of Federal financial assistance under this 
        chapter shall, to the extent practicable, encourage contractors 
        working on a highway project funded using the assistance to make 
        a best faith effort in the hiring or referral of laborers on any 
        project for the construction of a highway to veterans (as 
        defined in section 2108 of title 5) who have the requisite 
        skills and abilities to perform the construction work required 
        under the contract.
            ``(2) Administration.--This subsection shall not--
                    ``(A) apply to projects subject to section 140(d); 
                or
                    ``(B) be administered or enforced in any manner that 
                would require an employer to give a preference to any 
                veteran over any equally qualified applicant who is a 
                member of any racial or ethnic minority, a female, or 
                any equally qualified former employee.''.
SEC. 1507. MAINTENANCE.

    Section 116 of title 23, United States Code, is amended--
            (1) by redesignating subsections (a) through (d) as 
        subsections (b) through (e), respectively;
            (2) by inserting before subsection (b) (as so redesignated) 
        the following:

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Preventive maintenance.--The term `preventive 
        maintenance' includes pavement preservation programs and 
        activities.
            ``(2) Pavement preservation programs and activities.--The 
        term `pavement preservation programs and activities' means 
        programs and activities employing a network level, long-term 
        strategy that enhances pavement performance by using an 
        integrated, cost-effective set of practices that extend pavement 
        life, improve safety, and meet road user expectations.'';
            (3) in subsection (b) (as so redesignated)--
                    (A) in the first sentence, by inserting ``or other 
                direct recipient'' before ``to maintain''; and
                    (B) by striking the second sentence;
            (4) by striking subsection (c) (as so redesignated) and 
        inserting the following:

    ``(c) Agreement.--In any State in which the State transportation 
department or other direct recipient is without legal authority to 
maintain a project described in subsection (b), the transportation 
department or direct recipient shall enter into a formal agreement with 
the appropriate officials of the county or municipality in which the 
project is located to provide for the maintenance of the project.''; and
            (5) in the first sentence of subsection (d) (as so 
        redesignated) by inserting ``or other direct recipient'' after 
        ``State transportation department''.
SEC. 1508. FEDERAL SHARE PAYABLE.

    Section 120 of title 23, United States Code, is amended--
            (1) in the first sentence of subsection (c)(1)--
                    (A) by inserting ``maintaining minimum levels of 
                retroreflectivity of highway signs or pavement 
                markings,'' after ``traffic control signalization,'';

[[Page 126 STAT. 566]]

                    (B) by inserting ``shoulder and centerline rumble 
                strips and stripes,'' after ``pavement marking,''; and
                    (C) by striking ``Federal-aid systems'' and 
                inserting ``Federal-aid programs'';
            (2) by striking subsection (e) and inserting the following:

    ``(e) Emergency Relief.--The Federal share payable for any repair or 
reconstruction provided for by funds made available under section 125 
for any project on a Federal-aid highway, including the Interstate 
System, shall not exceed the Federal share payable on a project on the 
system as provided in subsections (a) and (b), except that--
            ``(1) <<NOTE: Time period.>> the Federal share payable for 
        eligible emergency repairs to minimize damage, protect 
        facilities, or restore essential traffic accomplished within 180 
        days after the actual occurrence of the natural disaster or 
        catastrophic failure may amount to 100 percent of the cost of 
        the repairs;
            ``(2) the Federal share payable for any repair or 
        reconstruction of Federal land transportation facilities, 
        Federal land access transportation facilities, and tribal 
        transportation facilities may amount to 100 percent of the cost 
        of the repair or reconstruction;
            ``(3) <<NOTE: Extension.>> the Secretary shall extend the 
        time period in paragraph (1) taking into consideration any delay 
        in the ability of the State to access damaged facilities to 
        evaluate damage and the cost of repair; and
            ``(4) the Federal share payable for eligible permanent 
        repairs to restore damaged facilities to predisaster condition 
        may amount to 90 percent of the cost of the repairs if the 
        eligible expenses incurred by the State due to natural disasters 
        or catastrophic failures in a Federal fiscal year exceeds the 
        annual apportionment of the State under section 104 for the 
        fiscal year in which the disasters or failures occurred.'';
            (3) by striking subsection (g) and redesignating subsections 
        (h) through (l) as subsections (g) through (k), respectively;
            (4) in subsection (i)(1)(A) (as redesignated by paragraph 
        (3)) by striking ``and the Appalachian development highway 
        system program under section 14501 of title 40''; and
            (5) by striking subsections (j) and (k) (as redesignated by 
        paragraph (3)) and inserting the following:

    ``(j) Use of Federal Agency Funds.--Notwithstanding any other 
provision of law, any Federal funds other than those made available 
under this title and title 49 may be used to pay the non-Federal share 
of the cost of any transportation project that is within, adjacent to, 
or provides access to Federal land, the Federal share of which is funded 
under this title or chapter 53 of title 49.
    ``(k) Use of Federal Land and Tribal Transportation Funds.--
Notwithstanding any other provision of law, the funds authorized to be 
appropriated to carry out the tribal transportation program under 
section 202 and the Federal lands transportation program under section 
203 may be used to pay the non-Federal share of the cost of any project 
that is funded under this title or chapter 53 of title 49 and that 
provides access to or within Federal or tribal land.''.

[[Page 126 STAT. 567]]

SEC. 1509. TRANSFERABILITY OF FEDERAL-AID HIGHWAY FUNDS.

    (a) In General.--Section 126 of title 23, United States Code, is 
amended to read as follows:
``Sec. 126. Transferability of Federal-aid highway funds

    ``(a) In General.--Notwithstanding any other provision of law, 
subject to subsection (b), a State may transfer from an apportionment 
under section 104(b) not to exceed 50 percent of the amount apportioned 
for the fiscal year to any other apportionment of the State under that 
section.
    ``(b) Application to Certain Set-asides.--
            ``(1) In general.--Funds that are subject to sections 104(d) 
        and 133(d) shall not be transferred under this section.
            ``(2) Funds transferred by states.--Funds transferred by a 
        State under this section of the funding reserved for the State 
        under section 213 for a fiscal year may only come from the 
        portion of those funds that are available for obligation in any 
        area of the State under section 213(c)(1)(B).''.

    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by striking the item relating to section 
126 and inserting the following:

``126. Transferability of Federal-aid highway funds.''.

SEC. 1510. IDLE REDUCTION TECHNOLOGY.

    Section 127(a)(12) of title 23, United States Code, is amended--
            (1) in subparagraph (B), by striking ``400'' and inserting 
        ``550''; and
            (2) in subparagraph (C)(ii), by striking ``400-pound'' and 
        inserting ``550-pound''.
SEC. 1511. SPECIAL PERMITS DURING PERIODS OF NATIONAL EMERGENCY.

    Section 127 of title 23, United States Code, is amended by inserting 
at the end the following:
    ``(i) Special Permits During Periods of National Emergency.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, a State may issue special permits during an 
        emergency to overweight vehicles and loads that can easily be 
        dismantled or divided if--
                    ``(A) the President has declared the emergency to be 
                a major disaster under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.);
                    ``(B) the permits are issued in accordance with 
                State law; and
                    ``(C) the permits are issued exclusively to vehicles 
                and loads that are delivering relief supplies.
            ``(2) Expiration.--A permit issued under paragraph (1) shall 
        expire not later than 120 days after the date of the declaration 
        of emergency under subparagraph (A) of that paragraph.''.
SEC. 1512. TOLLING.

    (a) Amendment to Tolling Provision.--Section 129(a) of title 23, 
United States Code, is amended to read as follows:
    ``(a) Basic Program.--

[[Page 126 STAT. 568]]

            ``(1) Authorization for federal participation.--Subject to 
        the provisions of this section, Federal participation shall be 
        permitted on the same basis and in the same manner as 
        construction of toll-free highways is permitted under this 
        chapter in the--
                    ``(A) initial construction of a toll highway, 
                bridge, or tunnel or approach to the highway, bridge, or 
                tunnel;
                    ``(B) initial construction of 1 or more lanes or 
                other improvements that increase capacity of a highway, 
                bridge, or tunnel (other than a highway on the 
                Interstate System) and conversion of that highway, 
                bridge, or tunnel to a tolled facility, if the number of 
                toll-free lanes, excluding auxiliary lanes, after the 
                construction is not less than the number of toll-free 
                lanes, excluding auxiliary lanes, before the 
                construction;
                    ``(C) initial construction of 1 or more lanes or 
                other improvements that increase the capacity of a 
                highway, bridge, or tunnel on the Interstate System and 
                conversion of that highway, bridge, or tunnel to a 
                tolled facility, if the number of toll-free non-HOV 
                lanes, excluding auxiliary lanes, after such 
                construction is not less than the number of toll-free 
                non-HOV lanes, excluding auxiliary lanes, before such 
                construction;
                    ``(D) reconstruction, resurfacing, restoration, 
                rehabilitation, or replacement of a toll highway, 
                bridge, or tunnel or approach to the highway, bridge, or 
                tunnel;
                    ``(E) reconstruction or replacement of a toll-free 
                bridge or tunnel and conversion of the bridge or tunnel 
                to a toll facility;
                    ``(F) reconstruction of a toll-free Federal-aid 
                highway (other than a highway on the Interstate System) 
                and conversion of the highway to a toll facility;
                    ``(G) reconstruction, restoration, or rehabilitation 
                of a highway on the Interstate System if the number of 
                toll-free non-HOV lanes, excluding auxiliary lanes, 
                after reconstruction, restoration, or rehabilitation is 
                not less than the number of toll-free non-HOV lanes, 
                excluding auxiliary lanes, before reconstruction, 
                restoration, or rehabilitation;
                    ``(H) conversion of a high occupancy vehicle lane on 
                a highway, bridge, or tunnel to a toll facility; and
                    ``(I) preliminary studies to determine the 
                feasibility of a toll facility for which Federal 
                participation is authorized under this paragraph.
            ``(2) Ownership.--Each highway, bridge, tunnel, or approach 
        to the highway, bridge, or tunnel constructed under this 
        subsection shall--
                    ``(A) be publicly owned; or
                    ``(B) be privately owned if the public authority 
                with jurisdiction over the highway, bridge, tunnel, or 
                approach has entered into a contract with 1 or more 
                private persons to design, finance, construct, and 
                operate the facility and the public authority will be 
                responsible for complying with all applicable 
                requirements of this title with respect to the facility.
            ``(3) Limitations on use of revenues.--

[[Page 126 STAT. 569]]

                    ``(A) In general.--A public authority with 
                jurisdiction over a toll facility shall use all toll 
                revenues received from operation of the toll facility 
                only for--
                          ``(i) debt service with respect to the 
                      projects on or for which the tolls are authorized, 
                      including funding of reasonable reserves and debt 
                      service on refinancing;
                          ``(ii) a reasonable return on investment of 
                      any private person financing the project, as 
                      determined by the State or interstate compact of 
                      States concerned;
                          ``(iii) any costs necessary for the 
                      improvement and proper operation and maintenance 
                      of the toll facility, including reconstruction, 
                      resurfacing, restoration, and rehabilitation;
                          ``(iv) if the toll facility is subject to a 
                      public-private partnership agreement, payments 
                      that the party holding the right to toll revenues 
                      owes to the other party under the public-private 
                      partnership agreement; and
                          ``(v) if the public authority certifies 
                      annually that the tolled facility is being 
                      adequately maintained, any other purpose for which 
                      Federal funds may be obligated by a State under 
                      this title.
                    ``(B) Annual audit.--
                          ``(i) In general.--A public authority with 
                      jurisdiction over a toll facility shall conduct or 
                      have an independent auditor conduct an annual 
                      audit of toll facility records to verify adequate 
                      maintenance and compliance with subparagraph (A), 
                      and report the results of the audits to the 
                      Secretary.
                          ``(ii) Records.--On reasonable notice, the 
                      public authority shall make all records of the 
                      public authority pertaining to the toll facility 
                      available for audit by the Secretary.
                    ``(C) Noncompliance.--If the Secretary concludes 
                that a public authority has not complied with the 
                limitations on the use of revenues described in 
                subparagraph (A), the Secretary may require the public 
                authority to discontinue collecting tolls until an 
                agreement with the Secretary is reached to achieve 
                compliance with the limitation on the use of revenues 
                described in subparagraph (A).
            ``(4) Limitations on conversion of high occupancy vehicle 
        facilities on interstate system.--
                    ``(A) In general.--A public authority with 
                jurisdiction over a high occupancy vehicle facility on 
                the Interstate System may undertake reconstruction, 
                restoration, or rehabilitation under paragraph (1)(G) on 
                the facility, and may levy tolls on vehicles, excluding 
                high occupancy vehicles, using the reconstructed, 
                restored, or rehabilitated facility, if the public 
                authority--
                          ``(i) in the case of a high occupancy vehicle 
                      facility that affects a metropolitan area, submits 
                      to the Secretary a written assurance that the 
                      metropolitan planning organization designated 
                      under section 5203 of title 49 for the area has 
                      been consulted concerning the placement and amount 
                      of tolls on the converted facility;

[[Page 126 STAT. 570]]

                          ``(ii) develops, manages, and maintains a 
                      system that will automatically collect the toll; 
                      and
                          ``(iii) establishes policies and procedures--
                                    ``(I) to manage the demand to use 
                                the facility by varying the toll amount 
                                that is charged; and
                                    ``(II) to enforce sanctions for 
                                violations of use of the facility.
                    ``(B) Exemption from tolls.--In levying tolls on a 
                facility under subparagraph (A), a public authority may 
                designate classes of vehicles that are exempt from the 
                tolls or charge different toll rates for different 
                classes of vehicles.
            ``(5) Special rule for funding.--
                    ``(A) In general.--In the case of a toll facility 
                under the jurisdiction of a public authority of a State 
                (other than the State transportation department), on 
                request of the State transportation department and 
                subject to such terms and conditions as the department 
                and public authority may agree, the Secretary, working 
                through the State department of transportation, shall 
                reimburse the public authority for the Federal share of 
                the costs of construction of the project carried out on 
                the toll facility under this subsection in the same 
                manner and to the same extent as the department would be 
                reimbursed if the project was being carried out by the 
                department.
                    ``(B) Source.--The reimbursement of funds under this 
                paragraph shall be from sums apportioned to the State 
                under this chapter and available for obligations on 
                projects on the Federal-aid system in the State on which 
                the project is being carried out.
            ``(6) Limitation on federal share.--The Federal share 
        payable for a project described in paragraph (1) shall be a 
        percentage determined by the State, but not to exceed 80 
        percent.
            ``(7) Modifications.--If a public authority (including a 
        State transportation department) with jurisdiction over a toll 
        facility subject to an agreement under this section or section 
        119(e), as in effect on the day before the effective date of 
        title I of the Intermodal Surface Transportation Efficiency Act 
        of 1991 (105 Stat. 1915), requests modification of the 
        agreement, the Secretary shall modify the agreement to allow the 
        continuation of tolls in accordance with paragraph (3) without 
        repayment of Federal funds.
            ``(8) Loans.--
                    ``(A) In general.--
                          ``(i) Loans.--Using amounts made available 
                      under this title, a State may loan to a public or 
                      private entity constructing or proposing to 
                      construct under this section a toll facility or 
                      non-toll facility with a dedicated revenue source 
                      an amount equal to all or part of the Federal 
                      share of the cost of the project if the project 
                      has a revenue source specifically dedicated to the 
                      project.
                          ``(ii) Dedicated revenue sources.--Dedicated 
                      revenue sources for non-toll facilities include 
                      excise taxes, sales taxes, motor vehicle use fees, 
                      tax on real

[[Page 126 STAT. 571]]

                      property, tax increment financing, and such other 
                      dedicated revenue sources as the Secretary 
                      determines appropriate.
                    ``(B) Compliance with federal laws.--As a condition 
                of receiving a loan under this paragraph, the public or 
                private entity that receives the loan shall ensure that 
                the project will be carried out in accordance with this 
                title and any other applicable Federal law, including 
                any applicable provision of a Federal environmental law.
                    ``(C) Subordination of debt.--The amount of any loan 
                received for a project under this paragraph may be 
                subordinated to any other debt financing for the 
                project.
                    ``(D) Obligation of funds loaned.--Funds loaned 
                under this paragraph may only be obligated for projects 
                under this paragraph.
                    ``(E) Repayment.--The repayment of a loan made under 
                this paragraph shall commence not later than 5 years 
                after date on which the facility that is the subject of 
                the loan is open to traffic.
                    ``(F) Term of loan.--The term of a loan made under 
                this paragraph shall not exceed 30 years from the date 
                on which the loan funds are obligated.
                    ``(G) Interest.--A loan made under this paragraph 
                shall bear interest at or below market interest rates, 
                as determined by the State, to make the project that is 
                the subject of the loan feasible.
                    ``(H) Reuse of funds.--Amounts repaid to a State 
                from a loan made under this paragraph may be obligated--
                          ``(i) for any purpose for which the loan funds 
                      were available under this title; and
                          ``(ii) for the purchase of insurance or for 
                      use as a capital reserve for other forms of credit 
                      enhancement for project debt in order to improve 
                      credit market access or to lower interest rates 
                      for projects eligible for assistance under this 
                      title.
                    ``(I) Guidelines.--The Secretary shall establish 
                procedures and guidelines for making loans under this 
                paragraph.
            ``(9) State law permitting tolling.--If a State does not 
        have a highway, bridge, or tunnel toll facility as of the date 
        of enactment of the MAP-21, before commencing any activity 
        authorized under this section, the State shall have in effect a 
        law that permits tolling on a highway, bridge, or tunnel.
            ``(10) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) High occupancy vehicle; hov.--The term `high 
                occupancy vehicle' or `HOV' means a vehicle with not 
                fewer than 2 occupants.
                    ``(B) Initial construction.--
                          ``(i) In general.--The term `initial 
                      construction' means the construction of a highway, 
                      bridge, tunnel, or other facility at any time 
                      before it is open to traffic.
                          ``(ii) Exclusions.--The term `initial 
                      construction' does not include any improvement to 
                      a highway, bridge, tunnel, or other facility after 
                      it is open to traffic.

[[Page 126 STAT. 572]]

                    ``(C) Public authority.--The term `public authority' 
                means a State, interstate compact of States, or public 
                entity designated by a State.
                    ``(D) Toll facility.--The term `toll facility' means 
                a toll highway, bridge, or tunnel or approach to the 
                highway, bridge, or tunnel constructed under this 
                subsection.''.

    (b) <<NOTE: Deadline. 23 USC 129 note.>> Electronic Toll Collection 
Interoperability Requirements.--Not later than 4 years after the date of 
enactment of this Act, all toll facilities on the Federal-aid highways 
shall implement technologies or business practices that provide for the 
interoperability of electronic toll collection programs.
SEC. 1513. MISCELLANEOUS PARKING AMENDMENTS.

    (a) Fringe and Corridor Parking Facilities.--Section 137 of title 
23, United States Code, is amended--
            (1) in subsection (f)(1)--
                    (A) by striking ``104(b)(4)'' and inserting 
                ``104(b)(1)''; and
                    (B) by inserting ``including the addition of 
                electric vehicle charging stations or natural gas 
                vehicle refueling stations,'' after ``new facilities,''; 
                and
            (2) by adding at the end the following:

    ``(g) Funding.--The addition of electric vehicle charging stations 
or natural gas vehicle refueling stations to new or previously funded 
parking facilities shall be eligible for funding under this section.''.
    (b) Public Transportation.--Section 142(a)(1) of title 23, United 
States Code, is amended by inserting ``, which may include electric 
vehicle charging stations or natural gas vehicle refueling stations,'' 
after ``parking facilities''.
    (c) Forest Development Roads and Trails.--Section 205(d) of title 
23, United States Code, is amended by inserting ``, which may include 
electric vehicle charging stations or natural gas vehicle refueling 
stations,'' after ``parking areas''.
SEC. 1514. HOV FACILITIES.

    Section 166 of title 23, United States Code, is amended--
            (1) in subsection (b)(5)--
                    (A) in subparagraph (A) by striking ``2009'' and 
                inserting ``2017'';
                    (B) in subparagraph (B) by striking ``2009'' and 
                inserting ``2017''; and
                    (C) in subparagraph (C)--
                          (i) by striking ``subparagraph (B)'' and 
                      inserting ``this paragraph''; and
                          (ii) by inserting ``or equal to'' after ``less 
                      than'';
            (2) in subsection (c) by striking paragraph (3) and 
        inserting the following:
            ``(3) Toll revenue.--Toll revenue collected under this 
        section is subject to the requirements of section 129(a)(3).''; 
        and
            (3) in subsection (d)(1)--
                    (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``in a fiscal year shall 
                      certify'' and inserting ``shall submit to the 
                      Secretary a report demonstrating that the facility 
                      is not already degraded, and that the presence of 
                      the vehicles will not cause the facility to become 
                      degraded, and certify''; and
                          (ii) by striking ``in the fiscal year'';

[[Page 126 STAT. 573]]

                    (B) in subparagraph (A) by inserting ``and 
                submitting to the Secretary annual reports of those 
                impacts'' after ``adjacent highways'';
                    (C) in subparagraph (C) by striking ``if the 
                presence of the vehicles has degraded the operation of 
                the facility'' and inserting ``whenever the operation of 
                the facility is degraded''; and
                    (D) by adding at the end the following:
                    ``(D) <<NOTE: Deadline.>> Maintenance of operating 
                performance.--Not later than 180 days after the date on 
                which a facility is degraded pursuant to the standard 
                specified in paragraph (2), the State agency with 
                jurisdiction over the facility shall bring the facility 
                into compliance with the minimum average operating speed 
                performance standard through changes to operation of the 
                facility, including--
                          ``(i) increasing the occupancy requirement for 
                      HOV lanes;
                          ``(ii) varying the toll charged to vehicles 
                      allowed under subsection (b) to reduce demand;
                          ``(iii) discontinuing allowing non-HOV 
                      vehicles to use HOV lanes under subsection (b); or
                          ``(iv) increasing the available capacity of 
                      the HOV facility.
                    ``(E) Compliance.--If the State fails to bring a 
                facility into compliance under subparagraph (D), the 
                Secretary shall subject the State to appropriate program 
                sanctions under section 1.36 of title 23, Code of 
                Federal Regulations (or successor regulations), until 
                the performance is no longer degraded.''.
SEC. 1515. FUNDING FLEXIBILITY FOR TRANSPORTATION EMERGENCIES.

    (a) In General.--Chapter 1 of title 23, United States Code (as 
amended by section 1311(a)), is amended by adding at the end the 
following:
``Sec. 170. Funding flexibility for transportation emergencies

    ``(a) In General.--Notwithstanding any other provision of law, a 
State may use up to 100 percent of any covered funds of the State to 
repair or replace a transportation facility that has suffered serious 
damage as a result of a natural disaster or catastrophic failure from an 
external cause.
    ``(b) Declaration of Emergency.--Funds may be used under this 
section only for a disaster or emergency declared by the President 
pursuant to the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.).
    ``(c) Repayment.--Funds used under subsection (a) shall be repaid to 
the program from which the funds were taken in the event that such 
repairs or replacement are subsequently covered by a supplemental 
appropriation of funds.
    ``(d) Definitions.--In this section, the following definitions 
apply:
            ``(1) Covered funds.--The term `covered funds' means any 
        amounts apportioned to a State under section 104(b), other than 
        amounts suballocated to metropolitan areas and other areas of 
        the State under section 133(d), but including any such amounts 
        required to be set aside for a purpose other

[[Page 126 STAT. 574]]

        than the repair or replacement of a transportation facility 
        under this section.
            ``(2) Transportation facility.--The term `transportation 
        facility' means any facility eligible for assistance under 
        section 125.''.

    (b) Technical and Conforming Amendment.--The analysis for chapter 1 
of title 23, United States Code (as amended by section 1311(b)), is 
amended by adding at the end the following:

``170. Funding flexibility for transportation emergencies.''.

SEC. 1516. DEFENSE ACCESS ROAD PROGRAM ENHANCEMENTS TO ADDRESS 
                          TRANSPORTATION INFRASTRUCTURE IN THE 
                          VICINITY OF MILITARY INSTALLATIONS.

    The second sentence of section 210(a)(2) of title 23, United States 
Code, is amended by inserting ``, in consultation with the Secretary of 
Transportation,'' before ``shall determine''.
SEC. 1517. MAPPING.

    (a) In General.--Section 306 of title 23, United States Code, is 
amended--
            (1) in subsection (a) by striking ``may'' and inserting 
        ``shall'';
            (2) in subsection (b) in the second sentence by striking 
        ``State and'' and inserting ``State government and''; and
            (3) by adding at the end the following:

    ``(c) <<NOTE: Compliance process.>> Implementation.--The Secretary 
shall develop a process for the oversight and monitoring, on an annual 
basis, of the compliance of each State with the guidance issued under 
subsection (b).''.

    (b) <<NOTE: Deadline.>> Survey.--Not later than 2 years after the 
date of enactment of this Act, the Secretary shall conduct a survey of 
all States to determine what percentage of projects carried out under 
title 23, United States Code, in each State utilize private sector 
sources for surveying and mapping services.
SEC. 1518. BUY AMERICA PROVISIONS.

    Section 313 of title 23, United States Code, is amended by adding at 
the end the following:
    ``(g) Application to Highway Programs.--The requirements under this 
section shall apply to all contracts eligible for assistance under this 
chapter for a project carried out within the scope of the applicable 
finding, determination, or decision under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding 
source of such contracts, if at least 1 contract for the project is 
funded with amounts made available to carry out this title.''.
SEC. 1519. CONSOLIDATION OF PROGRAMS; REPEAL OF OBSOLETE 
                          PROVISIONS.

    (a) Consolidation of Programs.--From administrative funds made 
available under section 104(a) of title 23, United States Code, not less 
than $3,000,000 for each of fiscal years 2013 and 2014 shall be made 
available--
            (1) to carry out safety-related activities, including--
                    (A) to carry out the operation lifesaver program--
                          (i) to provide public information and 
                      education programs to help prevent and reduce 
                      motor vehicle accidents, injuries, and fatalities; 
                      and
                          (ii) to improve driver performance at railway-
                      highway crossings; and

[[Page 126 STAT. 575]]

                    (B) to provide work zone safety grants in accordance 
                with subsections (a) and (b) of section 1409 of the 
                SAFETEA-LU (23 U.S.C. 401 note; 119 Stat. 1232); and
            (2) to operate authorized safety-related clearinghouses, 
        including--
                    (A) the national work zone safety information 
                clearinghouse authorized by section 358(b)(2) of the 
                National Highway System Designation Act of 1995 (23 
                U.S.C. 401 note; 109 Stat. 625); and
                    (B) a public road safety clearinghouse in accordance 
                with section 1411(a) of the SAFETEA-LU (23 U.S.C. 402 
                note; 119 Stat. 1234).

    (b) Repeals.--
            (1) Title 23.--
                    (A) In general.--Sections 105, 110, 117, 124, 151, 
                155, 157, 160, 212, 216, 303, and 309 of title 23, 
                United States Code, are repealed.
                    (B) Set asides.--Section 118 of title 23, United 
                States Code, is amended--
                          (i) by striking subsection (c); and
                          (ii) by redesignating subsections (d) and (e) 
                      as subsections (c) and (d), respectively.
            (2) SAFETEA-LU.--Sections 1302, 1305, 1306, 1803, 1804, 
        1907, and 1958 of SAFETEA-LU <<NOTE: 23 USC 101 note, 103 note, 
        137 note, 144 note.>> (Public Law 109-59) are repealed.
            (3) Additional.--Section 1132 of the Energy Independence and 
        Security Act of 2007 (Public Law 110-140; 121 Stat. 1763) is 
        repealed.

    (c) Conforming Amendments.--
            (1) Title analysis.--
                    (A) Chapter 1.--The analysis for chapter 1 of title 
                23, United States Code, is amended by striking the items 
                relating to sections 105, 110, 117, 124, 151, 155, 157, 
                and 160.
                    (B) Chapter 2.--The analysis for chapter 2 of title 
                23, United States Code, is amended by striking the items 
                relating to sections 212 and 216.
                    (C) Chapter 3.--The analysis for chapter 3 of title 
                23, United States Code, is amended by striking the items 
                relating to sections 303 and 309.
            (2) Table of contents.--The table of contents contained in 
        section 1(b) of SAFETEA-LU (Public Law 109-59; 119 Stat. 1144) 
        is amended by striking the items relating to sections 1302, 
        1305, 1306, 1803, 1804, 1907, and 1958.
            (3) Section 104.--Section 104(e) of title 23, United States 
        Code, is amended by striking ``, 105,''.
            (4) Section 109.--Section 109(q) of title 23, United States 
        Code, is amended by striking ``in accordance with section 303 
        or''.
            (5) Section 118.--Section 118(b) of title 23, United States 
        Code, is amended--
                    (A) by striking paragraph (1) and all that follows 
                through the heading of paragraph (2); and
                    (B) by striking ``(other than for Interstate 
                construction)''.
            (6) Section 130.--Section 130 of title 23, United States 
        Code, is amended--

[[Page 126 STAT. 576]]

                    (A) in subsection (e) by striking ``section 
                104(b)(5)'' and inserting ``section 104(b)(3)'';
                    (B) in subsection (f)(1) by inserting ``as in effect 
                on the day before the date of enactment of the MAP-21'' 
                after ``section 104(b)(3)(A)''; and
                    (C) in subsection (l) by striking paragraphs (3) and 
                (4).
            (7) Section 131.--Section 131(m) of title 23, United States 
        Code, is amended by striking ``Subject to approval by the 
        Secretary in accordance with the program of projects approval 
        process of section 105, a State'' and inserting ``A State''.
            (8) Section 133.--Paragraph (13) of section 133(b) of title 
        23, United States Code (as amended by section 1108(a)(3)), is 
        amended by striking ``under section 303.''
            (9) Section 142.--Section 142 of title 23, United States 
        Code, is amended--
                    (A) in subsection (a)--
                          (i) in paragraph (1)--
                                    (I) by striking ``motor vehicles 
                                (other than rail)'' and inserting 
                                ``buses'';
                                    (II) by striking ``(hereafter in 
                                this section referred to as `buses')'';
                                    (III) by striking ``Federal-aid 
                                systems'' and inserting ``Federal-aid 
                                highways''; and
                                    (IV) by striking ``Federal-aid 
                                system'' and inserting ``Federal-aid 
                                highway''; and
                          (ii) in paragraph (2)--
                                    (I) by striking ``as a project on 
                                the the surface transportation program 
                                for''; and
                                    (II) by striking ``section 
                                104(b)(3)'' and inserting ``section 
                                104(b)(2)'';
                    (B) in subsection (b) by striking ``104(b)(4)'' and 
                inserting ``104(b)(1)'';
                    (C) in subsection (c)--
                          (i) by striking ``system'' in each place it 
                      appears and inserting ``highway''; and
                          (ii) by striking ``highway facilities'' and 
                      inserting ``highways eligible under the program 
                      that is the source of the funds'';
                    (D) in subsection (e)(2) by striking 
                ``Notwithstanding section 209(f)(1) of the Highway 
                Revenue Act of 1956, the Highway Trust Fund shall be 
                available for making expenditures to meet obligations 
                resulting from projects authorized by subsection (a)(2) 
                of this section and such projects'' and inserting 
                ``Projects authorized by subsection (a)(2)''; and
                    (E) in subsection (f) by striking ``exits'' and 
                inserting ``exists''.
            (10) Section 145.--Section 145(b) of title 23, United States 
        Code, is amended by striking ``section 117 of this title,''.
            (11) Section 218.--Section 218 of title 23, United States 
        Code, is amended--
                    (A) in subsection (a)--
                          (i) by striking the first two sentences;
                          (ii) in the third sentence--
                                    (I) by striking ``, in addition to 
                                such funds,''; and
                                    (II) by striking ``such highway 
                                or'';

[[Page 126 STAT. 577]]

                          (iii) by striking the fourth sentence and 
                      fifth sentences;
                    (B) by striking subsection (b); and
                    (C) by redesignating subsection (c) as subsection 
                (b).
            (12) Section 610.--Section 610(d)(1)(B) of title 23, United 
        States Code, is amended by striking ``under section 105''.
SEC. 1520. DENALI COMMISSION.

    The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is amended--
            (1) in section 305, by striking subsection (c) and inserting 
        the following:

    ``(c) Gifts.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Commission, on behalf of the United States, may accept use, and 
        dispose of gifts or donations of services, property, or money 
        for purposes of carrying out this Act.
            ``(2) Conditional.--With respect to conditional gifts--
                    ``(A)(i) the Commission, on behalf of the United 
                States, may accept conditional gifts for purposes of 
                carrying out this Act, if approved by the Federal 
                Cochairperson; and
                    ``(ii) the principal of and income from any such 
                conditional gift shall be held, invested, reinvested, 
                and used in accordance with the condition applicable to 
                the gift; but
                    ``(B) no gift shall be accepted that is conditioned 
                on any expenditure not to be funded from the gift or 
                from the income generated by the gift unless the 
                expenditure has been approved by Act of Congress.''; and
            (2) by adding at the end the following:
``SEC. 311. TRANSFER OF FUNDS FROM OTHER FEDERAL AGENCIES.

    ``(a) In General.--Subject to subsection (c), for purposes of this 
Act, the Commission may accept transfers of funds from other Federal 
agencies.
    ``(b) Transfers.--Any Federal agency authorized to carry out an 
activity that is within the authority of the Commission may transfer to 
the Commission any appropriated funds for the activity.
    ``(c) Treatment.--Any funds transferred to the Commission under this 
subsection--
            ``(1) shall remain available until expended; and
            ``(2) may, to the extent necessary to carry out this Act, be 
        transferred to, and merged with, the amounts made available by 
        appropriations Acts for the Commission by the Federal 
        Cochairperson.''.
SEC. 1521. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY 
                          ACQUISITION POLICIES ACT OF 1970 
                          AMENDMENTS.

    (a) Moving and Related Expenses.--Section 202 of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 1970 
(42 U.S.C. 4622) is amended--
            (1) in subsection (a)(4) by striking ``$10,000'' and 
        inserting ``$25,000, as adjusted by regulation, in accordance 
        with section 213(d)''; and
            (2) in the second sentence of subsection (c) by striking 
        ``$20,000'' and inserting ``$40,000, as adjusted by regulation, 
        in accordance with section 213(d)''.

[[Page 126 STAT. 578]]

    (b) Replacement Housing for Homeowners.--The first sentence of 
section 203(a)(1) of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (42 U.S.C. 4623(a)(1)) is amended--
            (1) by striking ``$22,500'' and inserting ``$31,000, as 
        adjusted by regulation, in accordance with 213(d),''; and
            (2) by striking ``one hundred and eighty days prior to'' and 
        inserting ``90 days before''.

    (c) Replacement Housing for Tenants and Certain Others.--Section 204 
of the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 (42 U.S.C. 4624) is amended--
            (1) in the second sentence of subsection (a) by striking 
        ``$5,250'' and inserting ``$7,200, as adjusted by regulation, in 
        accordance with section 213(d)''; and
            (2) in the second sentence of subsection (b) by striking ``, 
        except'' and all that follows through the end of the subsection 
        and inserting a period.

    (d) Duties of Lead Agency.--Section 213 of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 
4633) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2) by striking ``and'' at the end;
                    (B) in paragraph (3) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) that each Federal agency that has programs or projects 
        requiring the acquisition of real property or causing a 
        displacement from real property subject to the provisions of 
        this Act shall provide to the lead agency an annual summary 
        report the describes the activities conducted by the Federal 
        agency.''; and
            (2) by adding at the end the following:

    ``(d) Adjustment of Payments.--The head of the lead agency may 
adjust, by regulation, the amounts of relocation payments provided under 
sections 202(a)(4), 202(c), 203(a), and 204(a) if the head of the lead 
agency determines that cost of living, inflation, or other factors 
indicate that the payments should be adjusted to meet the policy 
objectives of this Act.''.
    (e) Agency Coordination.--Title II of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 is amended 
by inserting after section 213 (42 U.S.C. 4633) the following:
``SEC. 214. <<NOTE: 42 USC 4634.>> AGENCY COORDINATION.

    ``(a) Agency Capacity.--Each Federal agency responsible for funding 
or carrying out relocation and acquisition activities shall have 
adequately trained personnel and such other resources as are necessary 
to manage and oversee the relocation and acquisition program of the 
Federal agency in accordance with this Act.
    ``(b) <<NOTE: Deadline. Memorandum.>> Interagency Agreements.--Not 
later than 1 year after the date of enactment of this section, each 
Federal agency responsible for funding relocation and acquisition 
activities (other than the agency serving as the lead agency) shall 
enter into a memorandum of understanding with the lead agency that--
            ``(1) provides for periodic training of the personnel of the 
        Federal agency, which in the case of a Federal agency that

[[Page 126 STAT. 579]]

        provides Federal financial assistance, may include personnel of 
        any displacing agency that receives Federal financial 
        assistance;
            ``(2) addresses ways in which the lead agency may provide 
        assistance and coordination to the Federal agency relating to 
        compliance with the Act on a program or project basis; and
            ``(3) addresses the funding of the training, assistance, and 
        coordination activities provided by the lead agency, in 
        accordance with subsection (c).

    ``(c) Interagency Payments.--
            ``(1) In general.--For the fiscal year that begins 1 year 
        after the date of enactment of this section, and each fiscal 
        year thereafter, each Federal agency responsible for funding 
        relocation and acquisition activities (other than the agency 
        serving as the lead agency) shall transfer to the lead agency 
        for the fiscal year, such funds as are necessary, but not less 
        than $35,000, to support the training, assistance, and 
        coordination activities of the lead agency described in 
        subsection (b).
            ``(2) Included costs.--The cost to a Federal agency of 
        providing the funds described in paragraph (1) shall be included 
        as part of the cost of 1 or more programs or projects undertaken 
        by the Federal agency or with Federal financial assistance that 
        result in the displacement of persons or the acquisition of real 
        property.''.

    (f) Cooperation With Federal Agencies.--Section 308 of title 23, 
United States Code, is amended by striking subsection (a) and inserting 
the following:
    ``(a) Authorized Activities.--
            ``(1) In general.--The Secretary may perform, by contract or 
        otherwise, authorized engineering or other services in 
        connection with the survey, construction, maintenance, or 
        improvement of highways for other Federal agencies, cooperating 
        foreign countries, and State cooperating agencies.
            ``(2) Inclusions.--Services authorized under paragraph (1) 
        may include activities authorized under section 214 of the 
        Uniform Relocation Assistance and Real Property Acquisition 
        Policies Act of 1970.
            ``(3) Reimbursement.--Reimbursement for services carried out 
        under this subsection (including depreciation on engineering and 
        road-building equipment) shall be credited to the applicable 
        appropriation.''.

    (g) <<NOTE: 23 USC 308 note.>> Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date of 
        enactment of this Act.
            (2) Exception.--The amendments made by subsections (a) 
        through (c) shall take effect 2 years after the date of 
        enactment of this Act.
SEC. 1522. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE 
                          WEIGHT RESTRICTIONS.

    Section 1023(h) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (23 U.S.C. 127 note; Public Law 102-240) is amended--
            (1) in the heading of paragraph (1) by striking ``temporary 
        exemption'' and inserting ``exemption'';
            (2) in paragraph (1)--

[[Page 126 STAT. 580]]

                    (A) in the matter preceding subparagraph (A) by 
                striking ``, for the period beginning on October 6, 
                1992, and ending on October 1, 2009,'';
                    (B) in subparagraph (A) by striking ``or'' at the 
                end;
                    (C) in subparagraph (B) by striking the period at 
                the end and inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(C) any motor home (as defined in section 571.3 of 
                title 49, Code of Federal Regulations (or successor 
                regulation)).''; and
            (3) in paragraph (2)(A) by striking ``For the period 
        beginning on the date of enactment of this subparagraph and 
        ending on September 30, 2009, a'' and inserting ``A''.
SEC. 1523. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES.

    Section 1805(a) of the SAFETEA-LU (23 U.S.C. 144 note; 119 Stat. 
1459) is amended by striking ``highway bridge replacement and 
rehabilitation program under section 144'' and inserting ``national 
highway performance program under section 119''.
SEC. 1524. <<NOTE: 23 USC 206 note.>> USE OF YOUTH SERVICE AND 
                          CONSERVATION CORPS.

    (a) <<NOTE: Contracts.>> In General.--The Secretary shall encourage 
the States and regional transportation planning agencies to enter into 
contracts and cooperative agreements with qualified youth service or 
conservation corps, as defined in sections 122(a)(2) of Public Law 101-
610 (42 U.S.C. 12572(a)(2)) and 106(c)(3) of Public Law 103-82 (42 
U.S.C. 12656(c)(3)) to perform appropriate projects eligible under 
sections 162, 206, 213, and 217 of title 23, United States Code, and 
under section 1404 of the SAFETEA-LU (119 Stat. 1228).

    (b) Requirements.--Under any contract or cooperative agreement 
entered into with a qualified youth service or conservation corps under 
this section, the Secretary shall--
            (1) set the amount of a living allowance or rate of pay for 
        each participant in such corps at--
                    (A) such amount or rate as required under State law 
                in a State with such requirements; or
                    (B) for corps in States not described in 
                subparagraph (A), at such amount or rate as determined 
                by the Secretary, not to exceed the maximum living 
                allowance authorized by section 140 of Public Law 101-
                610 (42 U.S.C. 12594); and
            (2) not subject such corps to the requirements of section 
        112 of title 23, United States Code.
SEC. 1525. <<NOTE: Deadline.>> STATE AUTONOMY FOR CULVERT PIPE 
                          SELECTION.

    Not later than 180 days after the date of enactment of this Act, the 
Secretary shall modify section 635.411 of title 23, Code of Federal 
Regulations (as in effect on the date of enactment of this Act), to 
ensure that States shall have the autonomy to determine culvert and 
storm sewer material types to be included in the construction of a 
project on a Federal-aid highway.
SEC. 1526. <<NOTE: 23 USC 104 note.>> EVACUATION ROUTES.

    Each State shall give adequate consideration to the needs of 
evacuation routes in the State, including such routes serving or 
adjacent to facilities operated by the Armed Forces, when allocating

[[Page 126 STAT. 581]]

funds apportioned to the State under title 23, United States Code, for 
the construction of Federal-aid highways.
SEC. 1527. <<NOTE: 23 USC 106 note.>> CONSOLIDATION OF GRANTS.

    (a) Definitions.--In this section, the term ``recipient'' means--
            (1) a State, local, or tribal government, including--
                    (A) a territory of the United States;
                    (B) a transit agency;
                    (C) a port authority;
                    (D) a metropolitan planning organization; or
                    (E) any other political subdivision of a State or 
                local government;
            (2) a multistate or multijurisdictional group, if each 
        member of the group is an entity described in paragraph (1); and
            (3) a public-private partnership, if both parties are 
        engaged in building the project.

    (b) Consolidation.--
            (1) In general.--A recipient that receives multiple grant 
        awards from the Department to support 1 multimodal project may 
        request that the Secretary designate 1 modal administration in 
        the Department to be the lead administering authority for the 
        overall project.
            (2) New starts.--Any project that includes funds awarded 
        under section 5309 of title 49, United States Code, shall be 
        exempt from consolidation under this section unless the grant 
        recipient requests the Federal Transit Administration to be the 
        lead administering authority.
            (3) Review.--
                    (A) <<NOTE: Deadline.>> In general.--Not later than 
                30 days after the date on which a request under 
                paragraph (1) is made, the Secretary shall review the 
                request and approve or deny the designation of a single 
                modal administration as the lead administering authority 
                and point of contact for the Department.
                    (B) Notification.--
                          (i) In general.--The Secretary shall notify 
                      the requestor of the decision of the Secretary 
                      under subparagraph (A) in such form and at such 
                      time as the Secretary and the requestor agree.
                          (ii) Denial.--If a request is denied, the 
                      Secretary shall provide the requestor with a 
                      detailed explanation of the reasoning of the 
                      Secretary with the notification under clause (i).

    (c) Duties.--
            (1) In general.--A modal administration designated as a lead 
        administering authority under this section shall--
                    (A) be responsible for leading and coordinating the 
                integrated project management team, which shall consist 
                of all of the other modal administrations in the 
                Department relating to the multimodal project; and
                    (B) to the extent feasible during the first 30 days 
                of carrying out the multimodal project, identify 
                overlapping or duplicative regulatory requirements that 
                exist for the project and propose a single, streamlined 
                approach to meeting all of the applicable regulatory 
                requirements through the activities described in 
                subsection (d).

[[Page 126 STAT. 582]]

            (2) Administration.--
                    (A) In general.--The Secretary shall transfer all 
                amounts that have been awarded for the multimodal 
                project to the modal administration designated as the 
                lead administering authority.
                    (B) Option.--
                          (i) In general.--Participation under this 
                      section shall be optional for recipients, and no 
                      recipient shall be required to participate.
                          (ii) Secretarial duties.--The Secretary is not 
                      required to identify every recipient that may be 
                      eligible to participate under this section.

    (d) Cooperation.--
            (1) In general.--The Secretary and modal administrations 
        with relevant jurisdiction over a multimodal project should 
        cooperate on project review and delivery activities at the 
        earliest practicable time.
            (2) Purposes.--The purposes of the cooperation under 
        paragraph (1) are--
                    (A) to avoid delays and duplication of effort later 
                in the process;
                    (B) to prevent potential conflicts; and
                    (C) to ensure that planning and project development 
                decisions are made in a streamlined manner and 
                consistent with applicable law.

    (e) Applicability.--Nothing in this section shall--
            (1) supersede, amend, or modify the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal 
        environmental law; or
            (2) affect the responsibility of any Federal officer to 
        comply with or enforce any law described in paragraph (1).
SEC. 1528. <<NOTE: 40 USC 14501 note.>> APPALACHIAN DEVELOPMENT 
                          HIGHWAY SYSTEM.

    (a) Sense of the Senate.--It is the Sense of the Senate that the 
timely completion of the Appalachian development highway system is a 
transportation priority in the national interest.
    (b) Modified Federal Share for Projects on ADHS.--For fiscal years 
2012 through 2021, the Federal share payable for the cost of 
constructing highways and access roads on the Appalachian development 
highway system under section 14501 of title 40, United States Code, with 
funds made available to a State for fiscal year 2012 or a previous 
fiscal year for the Appalachian development highway system program, or 
with funds made available for fiscal year 2012 or a previous fiscal year 
for a specific project, route, or corridor on that system, shall be 100 
percent.
    (c) Federal Share for Other Funds Used on ADHS.--For fiscal years 
2012 through 2021, the Federal share payable for the cost of 
constructing highways and access roads on the Appalachian development 
highway system under section 14501 of title 40, United States Code, with 
Federal funds apportioned to a State for a program other than the 
Appalachian development highway system program shall be 100 percent.
    (d) Completion Plan.--
            (1) <<NOTE: Deadline.>> In general.--Subject to paragraph 
        (2), not later than 1 year after the date of enactment of the 
        MAP-21, each State represented on the Appalachian Regional 
        Commission shall establish a plan for the completion of the 
        designated corridors

[[Page 126 STAT. 583]]

        of the Appalachian development highway system within the State, 
        including annual performance targets, with a target completion 
        date.
            (2) Significant uncompleted miles.--If the percentage of 
        remaining Appalachian development highway system needs for a 
        State, according to the latest cost to complete estimate for the 
        Appalachian development highway system, is greater than 15 
        percent of the total cost to complete estimate for the entire 
        Appalachian development highway system, the State shall not 
        establish a plan under paragraph (1) that would result in a 
        reduction of obligated funds for the Appalachian development 
        highway system within the State for any subsequent fiscal year.
SEC. 1529. <<NOTE: Deadline. Guidance. 23 USC 109 
                          note.>> ENGINEERING JUDGMENT.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall issue guidance to State transportation departments 
clarifying that the standards, guidance, and options for design and 
application of traffic control devices provided in the Manual on Uniform 
Traffic Control Devices should not be considered a substitute for 
engineering judgment.
SEC. 1530. TRANSPORTATION TRAINING AND EMPLOYMENT PROGRAMS.

    To encourage the development of careers in the transportation field, 
the Secretary of Education and the Secretary of Labor are encouraged to 
use funds for training and employment education programs--
            (1) to develop programs for transportation-related careers 
        and trades; and
            (2) to work with the Secretary to carry out programs 
        developed under paragraph (1).
SEC. 1531. NOTICE OF CERTAIN GRANT AWARDS.

    (a) Definition of Covered Grant Award.--In this section, the term 
``covered grant award'' means a grant award--
            (1) made--
                    (A) by the Department; and
                    (B) with funds made available under this Act; and
            (2) in an amount equal to or greater than $500,000.

    (b) <<NOTE: Deadline.>> Notice.--Except to the extent otherwise 
expressly provided in another provision of law, at least 3 business days 
before a covered grant award is announced, the Secretary shall provide 
to the Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public Works of the 
Senate written notice of the covered grant award.
SEC. 1532. <<NOTE: 49 USC 301 note.>> BUDGET JUSTIFICATION.

    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 budget justification for 
each agency of the Department concurrently with the annual budget 
submission of the President to Congress under section 1105(a) of title 
31, United States Code.

[[Page 126 STAT. 584]]

SEC. 1533. PROHIBITION ON USE OF FUNDS FOR AUTOMATED TRAFFIC 
                          ENFORCEMENT.

    (a) Definition of Automated Traffic Enforcement System.--In this 
section, the term ``automated traffic enforcement system'' means any 
camera that captures an image of a vehicle for the purposes of traffic 
law enforcement.
    (b) Use of Funds.--Except as provided in subsection (c), for fiscal 
years 2013 and 2014, funds apportioned to a State under section 
104(b)(3) of title 23, United States Code, may not be used for any 
program to purchase, operate, or maintain an automated traffic 
enforcement system.
    (c) Exception.--Subsection (b) shall not apply to automated traffic 
enforcement systems used to improve safety in school zones.
SEC. 1534. <<NOTE: 49 USC 301 note.>> PUBLIC-PRIVATE PARTNERSHIPS.

    (a) <<NOTE: Compilation. Public information. Web posting.>> Best 
Practices.--The Secretary shall compile, and make available to the 
public on the website of the Department, best practices on how States, 
public transportation agencies, and other public officials can work with 
the private sector in the development, financing, construction, and 
operation of transportation facilities.

    (b) Contents.--The best practices compiled under subsection (a) 
shall include polices and techniques to ensure that the interests of the 
traveling public and State and local governments are protected in any 
agreement entered into with the private sector for the development, 
financing, construction, and operation of transportation facilities.
    (c) Technical Assistance.--The Secretary, on request, may provide 
technical assistance to States, public transportation agencies, and 
other public officials regarding proposed public-private partnership 
agreements for the development, financing, construction, and operation 
of transportation facilities, including assistance in analyzing whether 
the use of a public-private partnership agreement would provide value 
compared with traditional public delivery methods.
    (d) <<NOTE: Deadline.>>  Standard Transaction Contracts.--
            (1) Development.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall develop standard 
        public-private partnership transaction model contracts for the 
        most popular types of public-private partnerships for the 
        development, financing, construction, and operation of 
        transportation facilities.
            (2) Use.--The Secretary shall encourage States, public 
        transportation agencies, and other public officials to use the 
        model contracts as a base template when developing their own 
        public-private partnership agreements for the development, 
        financing, construction, and operation of transportation 
        facilities.
SEC. 1535. <<NOTE: 23 USC 101 note.>> REPORT ON HIGHWAY TRUST FUND 
                          EXPENDITURES.

    (a) Initial Report.--Not later than 150 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a report describing the activities funded from 
the Highway Trust Fund during each of fiscal years 2009 through 2011, 
including for purposes other than construction and maintenance of 
highways and bridges.
    (b) <<NOTE: Time period.>> Updates.--Not later than 5 years after 
the date on which the report is submitted under subsection (a) and every 
5 years

[[Page 126 STAT. 585]]

thereafter, the Comptroller General of the United States shall submit to 
Congress a report that updates the information provided in the report 
under that subsection for the applicable 5-year period.

    (c) Inclusions.--A report submitted under subsection (a) or (b) 
shall include information similar to the information included in the 
report of the Government Accountability Office numbered ``GAO-09-729R'' 
and entitled ``Highway Trust Fund Expenditures on Purposes Other Than 
Construction and Maintenance of Highways and Bridges During Fiscal Years 
2004-2008''.
SEC. 1536. SENSE OF CONGRESS ON HARBOR MAINTENANCE.

    (a) Findings.--Congress finds that--
            (1) there are 926 coastal, Great Lakes, and inland harbors 
        maintained by the Corps of Engineers;
            (2) according to the Bureau of Transportation Statistics--
                    (A) in 2009, the ports and waterways of the United 
                States handled more than 2,200,000,000 short tons of 
                imports, exports, and domestic shipments; and
                    (B) in 2010, United States ports were responsible 
                for more than $1,400,000,000,000 in waterborne imports 
                and exports;
            (3) according to the Congressional Research Service, full 
        channel dimensions are, on average, available approximately \1/
        3\ of the time at the 59 harbors of the United States with the 
        highest use rates;
            (4) in 1986, Congress created the Harbor Maintenance Trust 
        Fund to provide funds for the operation and maintenance of the 
        navigation channels of the United States;
            (5) in fiscal year 2012, the Harbor Maintenance Trust Fund 
        is expected to grow from $6,280,000,000 to $7,011,000,000, an 
        increase of approximately 13 percent;
            (6) despite growth of the Harbor Maintenance Trust Fund, 
        expenditures from the Harbor Maintenance Trust Fund have not 
        been sufficiently spent; and
            (7) inadequate investment in dredging needs is restricting 
        access to the ports of the United States for domestic shipping, 
        imports, and exports and therefore threatening the economic 
        competitiveness of the United States.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Administration should request full use of the Harbor 
        Maintenance Trust Fund for operating and maintaining the 
        navigation channels of the United States;
            (2) the amounts in the Harbor Maintenance Trust Fund should 
        be fully expended to operate and maintain the navigation 
        channels of the United States; and
            (3) Congress should ensure that other programs, projects, 
        and activities of the Civil Works Program of the Corps of 
        Engineers, especially those programs, projects, and activities 
        relating to inland navigation and flood control, are not 
        adversely impacted.
SEC. 1537. <<NOTE: 33 USC 2238a.>> ESTIMATE OF HARBOR MAINTENANCE 
                          NEEDS.

    For fiscal year 2014 and each fiscal year thereafter, the 
President's budget request submitted pursuant to section 1105 of title 
31, United States Code, shall include--

[[Page 126 STAT. 586]]

            (1) an estimate of the nationwide average availability, 
        expressed as a percentage, of the authorized depth and 
        authorized width of all navigation channels authorized to be 
        maintained using appropriations from the Harbor Maintenance 
        Trust Fund that would result from harbor maintenance activities 
        to be funded by the budget request; and
            (2) an estimate of the average annual amount of 
        appropriations from the Harbor Maintenance Trust Fund that would 
        be required to increase that average availability to 95 percent 
        over a 3-year period.
SEC. 1538. ASIAN CARP.

    (a) Definitions.--In this section:
            (1) Hydrological separation.--The term ``hydrological 
        separation'' means a physical separation on the Chicago Area 
        Waterway System that--
                    (A) would disconnect the Mississippi River watershed 
                from the Lake Michigan watershed; and
                    (B) shall be designed to be adequate in scope to 
                prevent the transfer of all aquatic species between each 
                of those bodies of water.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Army, acting through the Chief of Engineers.

    (b) Expedited Study and Report.--
            (1) In general.--The Secretary shall--
                    (A) expedite completion of the report for the study 
                authorized by section 3061(d) of the Water Resources 
                Development Act of 2007 (Public Law 110-114; 121 Stat. 
                1121); and
                    (B) if the Secretary determines a project is 
                justified in the completed report, proceed directly to 
                project preconstruction engineering and design.
            (2) Focus.--In expediting the completion of the study and 
        report under paragraph (1), the Secretary shall focus on--
                    (A) the prevention of the spread of aquatic nuisance 
                species between the Great Lakes and Mississippi River 
                Basins, such as through the permanent hydrological 
                separation of the Great Lakes and Mississippi River 
                Basins; and
                    (B) the watersheds of the following rivers and 
                tributaries associated with the Chicago Area Waterway 
                System:
                          (i) The Illinois River, at and in the vicinity 
                      of Chicago, Illinois.
                          (ii) The Chicago River, Calumet River, North 
                      Shore Channel, Chicago Sanitary and Ship Canal, 
                      and Cal-Sag Channel in the State of Illinois.
                          (iii) The Grand Calumet River and Little 
                      Calumet River in the States of Illinois and 
                      Indiana.
            (3) Efficient use of funds.--The Secretary shall ensure the 
        efficient use of funds to maximize the timely completion of the 
        study and report under paragraph (1).
            (4) Deadline.--The Secretary shall complete the report under 
        paragraph (1) by not later than 18 months after the date of 
        enactment of this Act.
            (5) Interim report.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary shall submit to

[[Page 126 STAT. 587]]

        the Committees on Appropriations of the House of Representatives 
        and Senate, the Committee on Environment and Public Works of the 
        Senate, and the Committee on Transportation and Infrastructure 
        of the House of Representatives a report describing--
                    (A) interim milestones that will be met prior to 
                final completion of the study and report under paragraph 
                (1); and
                    (B) funding necessary for completion of the study 
                and report under paragraph (1), including funding 
                necessary for completion of each interim milestone 
                identified under subparagraph (A).
SEC. 1539. REST AREAS.

    (a) Agreements Relating to Use of and Access to Rights-of-way--
Interstate System.--Section 111 of title 23, United States Code, is 
amended--
            (1) in subsection (a) in the second sentence by striking the 
        period and inserting ``and will not change the boundary of any 
        right-of-way on the Interstate System to accommodate 
        construction of, or afford access to, an automotive service 
        station or other commercial establishment.'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following:

    ``(b) Rest Areas.--
            ``(1) In general.--Notwithstanding subsection (a), the 
        Secretary shall permit a State to acquire, construct, operate, 
        and maintain a rest area along a highway on the Interstate 
        System in such State.
            ``(2) Limited activities.--The Secretary shall permit 
        limited commercial activities within a rest area under paragraph 
        (1), if the activities are available only to customers using the 
        rest area and are limited to--
                    ``(A) commercial advertising and media displays if 
                such advertising and displays are--
                          ``(i) exhibited solely within any facility 
                      constructed in the rest area; and
                          ``(ii) not legible from the main traveled way;
                    ``(B) items designed to promote tourism in the 
                State, limited to books, DVDs, and other media;
                    ``(C) tickets for events or attractions in the State 
                of a historical or tourism-related nature;
                    ``(D) travel-related information, including maps, 
                travel booklets, and hotel coupon booklets; and
                    ``(E) lottery machines, provided that the priority 
                afforded to blind vendors under subsection (c) applies 
                to this subparagraph.
            ``(3) Private operators.--A State may permit a private party 
        to operate such commercial activities.
            ``(4) Limitation on use of revenues.--A State shall use any 
        revenues received from the commercial activities in a rest area 
        under this section to cover the costs of acquiring, 
        constructing, operating, and maintaining rest areas in the 
        State.''.

    (b) Control of Outdoor Advertising.--Section 131(i) of title 23, 
United States Code, is amended by adding at the end the following:

[[Page 126 STAT. 588]]

``A State may permit the installation of signs that acknowledge the 
sponsorship of rest areas within such rest areas or along the main 
traveled way of the system, provided that such signs shall not affect 
the safe and efficient utilization of the Interstate System and the 
primary system. <<NOTE: Criteria.>> The Secretary shall establish 
criteria for the installation of such signs on the main traveled way, 
including criteria pertaining to the placement of rest area sponsorship 
acknowledgment signs in relation to the placement of advance guide signs 
for rest areas.''.

 Subtitle F-- <<NOTE: Resources and Ecosystems Sustainability, Tourist 
  Opportunities, and Revived Economies of the Gulf Coast States Act of 
2012.>> Gulf Coast Restoration
SEC. 1601. <<NOTE: 33 USC 1321 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Resources and Ecosystems 
Sustainability, Tourist Opportunities, and Revived Economies of the Gulf 
Coast States Act of 2012''.
SEC. 1602. <<NOTE: 33 USC 1321 note.>> GULF COAST RESTORATION 
                          TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Gulf Coast Restoration 
Trust Fund'' (referred to in this section as the ``Trust Fund''), 
consisting of such amounts as are deposited in the Trust Fund under this 
Act or any other provision of law.
    (b) Transfers.--The Secretary of the Treasury shall deposit in the 
Trust Fund an amount equal to 80 percent of all administrative and civil 
penalties paid by responsible parties after the date of enactment of 
this Act in connection with the explosion on, and sinking of, the mobile 
offshore drilling unit Deepwater Horizon pursuant to a court order, 
negotiated settlement, or other instrument in accordance with section 
311 of the Federal Water Pollution Control Act (33 U.S.C. 1321).
    (c) Expenditures.--Amounts in the Trust Fund, including interest 
earned on advances to the Trust Fund and proceeds from investment under 
subsection (d), shall--
            (1) be available for expenditure, without further 
        appropriation, solely for the purpose and eligible activities of 
        this subtitle and the amendments made by this subtitle; and
            (2) remain available until expended, without fiscal year 
        limitation.

    (d) Investment.--Amounts in the Trust Fund shall be invested in 
accordance with section 9702 of title 31, United States Code, and any 
interest on, and proceeds from, any such investment shall be available 
for expenditure in accordance with this subtitle and the amendments made 
by this subtitle.
    (e) <<NOTE: Deadline. Procedures.>> Administration.--Not later than 
180 days after the date of enactment of this Act, after providing notice 
and an opportunity for public comment, the Secretary of the Treasury, in 
consultation with the Secretary of the Interior and the Secretary of 
Commerce, shall establish such procedures as the Secretary determines to 
be necessary to deposit amounts in, and expend amounts from, the Trust 
Fund pursuant to this subtitle, including--
            (1) procedures to assess whether the programs and activities 
        carried out under this subtitle and the amendments made by this 
        subtitle achieve compliance with applicable requirements, 
        including procedures by which the Secretary of the Treasury may 
        determine whether an expenditure by a Gulf

[[Page 126 STAT. 589]]

        Coast State or coastal political subdivision (as those terms are 
        defined in section 311 of the Federal Water Pollution Control 
        Act (33 U.S.C. 1321)) pursuant to such a program or activity 
        achieves compliance;
            (2) auditing requirements to ensure that amounts in the 
        Trust Fund are expended as intended; and
            (3) procedures for identification and allocation of funds 
        available to the Secretary under other provisions of law that 
        may be necessary to pay the administrative expenses directly 
        attributable to the management of the Trust Fund.

    (f) Sunset.--The authority for the Trust Fund shall terminate on the 
date all funds in the Trust Fund have been expended.
SEC. 1603. <<NOTE: 33 USC 1321 note.>> GULF COAST NATURAL 
                          RESOURCES RESTORATION AND ECONOMIC 
                          RECOVERY.

    Section 311 of the Federal Water Pollution Control Act (33 U.S.C. 
1321) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (25)(B), by striking ``and'' at the 
                end;
                    (B) in paragraph (26)(D), by striking the period at 
                the end and inserting a semicolon; and
                    (C) <<NOTE: Definitions.>> by adding at the end the 
                following:
            ``(27) the term `best available science' means science 
        that--
                    ``(A) maximizes the quality, objectivity, and 
                integrity of information, including statistical 
                information;
                    ``(B) uses peer-reviewed and publicly available 
                data; and
                    ``(C) clearly documents and communicates risks and 
                uncertainties in the scientific basis for such projects;
            ``(28) the term `Chairperson' means the Chairperson of the 
        Council;
            ``(29) the term `coastal political subdivision' means any 
        local political jurisdiction that is immediately below the State 
        level of government, including a county, parish, or borough, 
        with a coastline that is contiguous with any portion of the 
        United States Gulf of Mexico;
            ``(30) the term `Comprehensive Plan' means the comprehensive 
        plan developed by the Council pursuant to subsection (t);
            ``(31) the term `Council' means the Gulf Coast Ecosystem 
        Restoration Council established pursuant to subsection (t);
            ``(32) the term `Deepwater Horizon oil spill' means the 
        blowout and explosion of the mobile offshore drilling unit 
        Deepwater Horizon that occurred on April 20, 2010, and resulting 
        hydrocarbon releases into the environment;
            ``(33) the term `Gulf Coast region' means--
                    ``(A) in the Gulf Coast States, the coastal zones 
                (as that term is defined in section 304 of the Coastal 
                Zone Management Act of 1972 (16 U.S.C. 1453)), except 
                that, in this section, the term `coastal zones' includes 
                land within the coastal zones that is held in trust by, 
                or the use of which is by law subject solely to the 
                discretion of, the Federal Government or officers or 
                agents of the Federal Government)) that border the Gulf 
                of Mexico;
                    ``(B) any adjacent land, water, and watersheds, that 
                are within 25 miles of the coastal zones described in 
                subparagraph (A) of the Gulf Coast States; and

[[Page 126 STAT. 590]]

                    ``(C) all Federal waters in the Gulf of Mexico;
            ``(34) the term `Gulf Coast State' means any of the States 
        of Alabama, Florida, Louisiana, Mississippi, and Texas; and
            ``(35) the term `Trust Fund' means the Gulf Coast 
        Restoration Trust Fund established pursuant to section 1602 of 
        the Resources and Ecosystems Sustainability, Tourist 
        Opportunities, and Revived Economies of the Gulf Coast States 
        Act of 2012.'';
            (2) in subsection (s), by inserting ``except as provided in 
        subsection (t)'' before the period at the end; and
            (3) by adding at the end the following:

    ``(t) Gulf Coast Restoration and Recovery.--
            ``(1) State allocation and expenditures.--
                    ``(A) In general.--Of the total amounts made 
                available in any fiscal year from the Trust Fund, 35 
                percent shall be available, in accordance with the 
                requirements of this section, to the Gulf Coast States 
                in equal shares for expenditure for ecological and 
                economic restoration of the Gulf Coast region in 
                accordance with this subsection.
                    ``(B) Use of funds.--
                          ``(i) Eligible activities in the gulf coast 
                      region.--Subject to clause (iii), amounts provided 
                      to the Gulf Coast States under this subsection may 
                      only be used to carry out 1 or more of the 
                      following activities in the Gulf Coast region:
                                    ``(I) Restoration and protection of 
                                the natural resources, ecosystems, 
                                fisheries, marine and wildlife habitats, 
                                beaches, and coastal wetlands of the 
                                Gulf Coast region.
                                    ``(II) Mitigation of damage to fish, 
                                wildlife, and natural resources.
                                    ``(III) Implementation of a 
                                federally approved marine, coastal, or 
                                comprehensive conservation management 
                                plan, including fisheries monitoring.
                                    ``(IV) Workforce development and job 
                                creation.
                                    ``(V) Improvements to or on State 
                                parks located in coastal areas affected 
                                by the Deepwater Horizon oil spill.
                                    ``(VI) Infrastructure projects 
                                benefitting the economy or ecological 
                                resources, including port 
                                infrastructure.
                                    ``(VII) Coastal flood protection and 
                                related infrastructure.
                                    ``(VIII) Planning assistance.
                                    ``(IX) Administrative costs of 
                                complying with this subsection.
                          ``(ii) Activities to promote tourism and 
                      seafood in the gulf coast region.--Amounts 
                      provided to the Gulf Coast States under this 
                      subsection may be used to carry out 1 or more of 
                      the following activities:
                                    ``(I) Promotion of tourism in the 
                                Gulf Coast Region, including 
                                recreational fishing.
                                    ``(II) Promotion of the consumption 
                                of seafood harvested from the Gulf Coast 
                                Region.
                          ``(iii) Limitation.--
                                    ``(I) In general.--Of the amounts 
                                received by a Gulf Coast State under 
                                this subsection, not more

[[Page 126 STAT. 591]]

                                than 3 percent may be used for 
                                administrative costs eligible under 
                                clause (i)(IX).
                                    ``(II) Claims for compensation.--
                                Activities funded under this subsection 
                                may not be included in any claim for 
                                compensation paid out by the Oil Spill 
                                Liability Trust Fund after the date of 
                                enactment of this subsection.
                    ``(C) Coastal political subdivisions.--
                          ``(i) Distribution.--In the case of a State 
                      where the coastal zone includes the entire State--
                                    ``(I) 75 percent of funding shall be 
                                provided directly to the 8 
                                disproportionately affected counties 
                                impacted by the Deepwater Horizon oil 
                                spill; and
                                    ``(II) 25 percent shall be provided 
                                directly to nondisproportionately 
                                impacted counties within the State.
                          ``(ii) Nondisproportionately impacted 
                      counties.--The total amounts made available to 
                      coastal political subdivisions in the State of 
                      Florida under clause (i)(II) shall be distributed 
                      according to the following weighted formula:
                                    ``(I) 34 percent based on the 
                                weighted average of the population of 
                                the county.
                                    ``(II) 33 percent based on the 
                                weighted average of the county per 
                                capita sales tax collections estimated 
                                for fiscal year 2012.
                                    ``(III) 33 percent based on the 
                                inverse proportion of the weighted 
                                average distance from the Deepwater 
                                Horizon oil rig to each of the nearest 
                                and farthest points of the shoreline.
                    ``(D) Louisiana.--
                          ``(i) In general.--Of the total amounts made 
                      available to the State of Louisiana under this 
                      paragraph:
                                    ``(I) 70 percent shall be provided 
                                directly to the State in accordance with 
                                this subsection.
                                    ``(II) 30 percent shall be provided 
                                directly to parishes in the coastal zone 
                                (as defined in section 304 of the 
                                Coastal Zone Management Act of 1972 (16 
                                U.S.C. 1453)) of the State of Louisiana 
                                according to the following weighted 
                                formula:
                                            ``(aa) 40 percent based on 
                                        the weighted average of miles of 
                                        the parish shoreline oiled.
                                            ``(bb) 40 percent based on 
                                        the weighted average of the 
                                        population of the parish.
                                            ``(cc) 20 percent based on 
                                        the weighted average of the land 
                                        mass of the parish.
                          ``(ii) Conditions.--
                                    ``(I) Land use plan.--As a condition 
                                of receiving amounts allocated under 
                                this paragraph, the chief executive of 
                                the eligible parish shall certify to the 
                                Governor of the State that the parish 
                                has completed a comprehensive land use 
                                plan.
                                    ``(II) Other conditions.--A coastal 
                                political subdivision receiving funding 
                                under this paragraph shall meet all of 
                                the conditions in subparagraph (E).

[[Page 126 STAT. 592]]

                    ``(E) Conditions.--As a condition of receiving 
                amounts from the Trust Fund, a Gulf Coast State, 
                including the entities described in subparagraph (F), or 
                a coastal political subdivision shall--
                          ``(i) agree to meet such conditions, including 
                      audit requirements, as the Secretary of the 
                      Treasury determines necessary to ensure that 
                      amounts disbursed from the Trust Fund will be used 
                      in accordance with this subsection;
                          ``(ii) <<NOTE: Certification.>> certify in 
                      such form and in such manner as the Secretary of 
                      the Treasury determines necessary that the project 
                      or program for which the Gulf Coast State or 
                      coastal political subdivision is requesting 
                      amounts--
                                    ``(I) is designed to restore and 
                                protect the natural resources, 
                                ecosystems, fisheries, marine and 
                                wildlife habitats, beaches, coastal 
                                wetlands, or economy of the Gulf Coast;
                                    ``(II) carries out 1 or more of the 
                                activities described in clauses (i) and 
                                (ii) of subparagraph (B);
                                    ``(III) was selected based on 
                                meaningful input from the public, 
                                including broad-based participation from 
                                individuals, businesses, and nonprofit 
                                organizations; and
                                    ``(IV) in the case of a natural 
                                resource protection or restoration 
                                project, is based on the best available 
                                science;
                          ``(iii) <<NOTE: Certification.>> certify that 
                      the project or program and the awarding of a 
                      contract for the expenditure of amounts received 
                      under this paragraph are consistent with the 
                      standard procurement rules and regulations 
                      governing a comparable project or program in that 
                      State, including all applicable competitive 
                      bidding and audit requirements; and
                          ``(iv) <<NOTE: Implementation plan.>> develop 
                      and submit a multiyear implementation plan for the 
                      use of such amounts, which may include milestones, 
                      projected completion of each activity, and a 
                      mechanism to evaluate the success of each activity 
                      in helping to restore and protect the Gulf Coast 
                      region impacted by the Deepwater Horizon oil 
                      spill.
                    ``(F) Approval by state entity, task force, or 
                agency.--The following Gulf Coast State entities, task 
                forces, or agencies shall carry out the duties of a Gulf 
                Coast State pursuant to this paragraph:
                          ``(i) Alabama.--
                                    ``(I) In general.--In the State of 
                                Alabama, the Alabama Gulf Coast Recovery 
                                Council, which shall be comprised of 
                                only the following:
                                            ``(aa) The Governor of 
                                        Alabama, who shall also serve as 
                                        Chairperson and preside over the 
                                        meetings of the Alabama Gulf 
                                        Coast Recovery Council.
                                            ``(bb) The Director of the 
                                        Alabama State Port Authority, 
                                        who shall also serve as Vice 
                                        Chairperson and preside over the 
                                        meetings

[[Page 126 STAT. 593]]

                                        of the Alabama Gulf Coast 
                                        Recovery Council in the absence 
                                        of the Chairperson.
                                            ``(cc) The Chairman of the 
                                        Baldwin County Commission.
                                            ``(dd) The President of the 
                                        Mobile County Commission.
                                            ``(ee) The Mayor of the city 
                                        of Bayou La Batre.
                                            ``(ff) The Mayor of the town 
                                        of Dauphin Island.
                                            ``(gg) The Mayor of the city 
                                        of Fairhope.
                                            ``(hh) The Mayor of the city 
                                        of Gulf Shores.
                                            ``(ii) The Mayor of the city 
                                        of Mobile.
                                            ``(jj) The Mayor of the city 
                                        of Orange Beach.
                                    ``(II) Vote.--Each member of the 
                                Alabama Gulf Coast Recovery Council 
                                shall be entitled to 1 vote.
                                    ``(III) Majority vote.--All 
                                decisions of the Alabama Gulf Coast 
                                Recovery Council shall be made by 
                                majority vote.
                                    ``(IV) Limitation on administrative 
                                expenses.--Administrative duties for the 
                                Alabama Gulf Coast Recovery Council may 
                                only be performed by public officials 
                                and employees that are subject to the 
                                ethics laws of the State of Alabama.
                          ``(ii) Louisiana.--In the State of Louisiana, 
                      the Coastal Protection and Restoration Authority 
                      of Louisiana.
                          ``(iii) Mississippi.--In the State of 
                      Mississippi, the Mississippi Department of 
                      Environmental Quality.
                          ``(iv) Texas.--In the State of Texas, the 
                      Office of the Governor or an appointee of the 
                      Office of the Governor.
                    ``(G) Compliance with eligible activities.--If the 
                Secretary of the Treasury determines that an expenditure 
                by a Gulf Coast State or coastal political subdivision 
                of amounts made available under this subsection does not 
                meet one of the activities described in clauses (i) and 
                (ii) of subparagraph (B), the Secretary shall make no 
                additional amounts from the Trust Fund available to that 
                Gulf Coast State or coastal political subdivision until 
                such time as an amount equal to the amount expended for 
                the unauthorized use--
                          ``(i) has been deposited by the Gulf Coast 
                      State or coastal political subdivision in the 
                      Trust Fund; or
                          ``(ii) has been authorized by the Secretary of 
                      the Treasury for expenditure by the Gulf Coast 
                      State or coastal political subdivision for a 
                      project or program that meets the requirements of 
                      this subsection.
                    ``(H) Compliance with conditions.--If the Secretary 
                of the Treasury determines that a Gulf Coast State or 
                coastal political subdivision does not meet the 
                requirements of this paragraph, including the conditions 
                of subparagraph (E), where applicable, the Secretary of 
                the Treasury shall make no amounts from the Trust Fund 
                available to that

[[Page 126 STAT. 594]]

                Gulf Coast State or coastal political subdivision until 
                all conditions of this paragraph are met.
                    ``(I) Public input.--In meeting any condition of 
                this paragraph, a Gulf Coast State may use an 
                appropriate procedure for public consultation in that 
                Gulf Coast State, including consulting with one or more 
                established task forces or other entities, to develop 
                recommendations for proposed projects and programs that 
                would restore and protect the natural resources, 
                ecosystems, fisheries, marine and wildlife habitats, 
                beaches, coastal wetlands, and economy of the Gulf 
                Coast.
                    ``(J) Previously approved projects and programs.--A 
                Gulf Coast State or coastal political subdivision shall 
                be considered to have met the conditions of subparagraph 
                (E) for a specific project or program if, before the 
                date of enactment of the Resources and Ecosystems 
                Sustainability, Tourist Opportunities, and Revived 
                Economies of the Gulf Coast States Act of 2012--
                          ``(i) the Gulf Coast State or coastal 
                      political subdivision has established conditions 
                      for carrying out projects and programs that are 
                      substantively the same as the conditions described 
                      in subparagraph (E); and
                          ``(ii) the applicable project or program 
                      carries out 1 or more of the activities described 
                      in clauses (i) and (ii) of subparagraph (B).
                    ``(K) <<NOTE: Contracts.>> Local preference.--In 
                awarding contracts to carry out a project or program 
                under this paragraph, a Gulf Coast State or coastal 
                political subdivision may give a preference to 
                individuals and companies that reside in, are 
                headquartered in, or are principally engaged in business 
                in the State of project execution.
                    ``(L) <<NOTE: Plan.>> Unused funds.--Funds allocated 
                to a State or coastal political subdivision under this 
                paragraph shall remain in the Trust Fund until such time 
                as the State or coastal political subdivision develops 
                and submits a plan identifying uses for those funds in 
                accordance with subparagraph (E)(iv).
                    ``(M) Judicial review.--If the Secretary of the 
                Treasury determines that a Gulf Coast State or coastal 
                political subdivision does not meet the requirements of 
                this paragraph, including the conditions of subparagraph 
                (E), the Gulf Coast State or coastal political 
                subdivision may obtain expedited judicial review within 
                90 days after that decision in a district court of the 
                United States, of appropriate jurisdiction and venue, 
                that is located within the State seeking the review.
                    ``(N) Cost-sharing.--
                          ``(i) In general.--A Gulf Coast State or 
                      coastal political subdivision may use, in whole or 
                      in part, amounts made available under this 
                      paragraph to that Gulf Coast State or coastal 
                      political subdivision to satisfy the non-Federal 
                      share of the cost of any project or program 
                      authorized by Federal law that is an eligible 
                      activity described in clauses (i) and (ii) of 
                      subparagraph (B).
                          ``(ii) Effect on other funds.--The use of 
                      funds made available from the Trust Fund to 
                      satisfy the

[[Page 126 STAT. 595]]

                      non-Federal share of the cost of a project or 
                      program that meets the requirements of clause (i) 
                      shall not affect the priority in which other 
                      Federal funds are allocated or awarded.
            ``(2) Council establishment and allocation.--
                    ``(A) In general.--Of the total amount made 
                available in any fiscal year from the Trust Fund, 30 
                percent shall be disbursed to the Council to carry out 
                the Comprehensive Plan.
                    ``(B) Council expenditures.--
                          ``(i) In general.--In accordance with this 
                      paragraph, the Council shall expend funds made 
                      available from the Trust Fund to undertake 
                      projects and programs, using the best available 
                      science, that would restore and protect the 
                      natural resources, ecosystems, fisheries, marine 
                      and wildlife habitats, beaches, coastal wetlands, 
                      and economy of the Gulf Coast.
                          ``(ii) <<NOTE: Audits.>> Allocation and 
                      expenditure procedures.--The Secretary of the 
                      Treasury shall develop such conditions, including 
                      audit requirements, as the Secretary of the 
                      Treasury determines necessary to ensure that 
                      amounts disbursed from the Trust Fund to the 
                      Council to implement the Comprehensive Plan will 
                      be used in accordance with this paragraph.
                          ``(iii) Administrative expenses.--Of the 
                      amounts received by the Council under this 
                      paragraph, not more than 3 percent may be used for 
                      administrative expenses, including staff.
                    ``(C) Gulf coast ecosystem restoration council.--
                          ``(i) Establishment.--There is established as 
                      an independent entity in the Federal Government a 
                      council to be known as the `Gulf Coast Ecosystem 
                      Restoration Council'.
                          ``(ii) Membership.--The Council shall consist 
                      of the following members, or in the case of a 
                      Federal agency, a designee at the level of the 
                      Assistant Secretary or the equivalent:
                                    ``(I) The Secretary of the Interior.
                                    ``(II) The Secretary of the Army.
                                    ``(III) The Secretary of Commerce.
                                    ``(IV) The Administrator of the 
                                Environmental Protection Agency.
                                    ``(V) The Secretary of Agriculture.
                                    ``(VI) The head of the department in 
                                which the Coast Guard is operating.
                                    ``(VII) The Governor of the State of 
                                Alabama.
                                    ``(VIII) The Governor of the State 
                                of Florida.
                                    ``(IX) The Governor of the State of 
                                Louisiana.
                                    ``(X) The Governor of the State of 
                                Mississippi.
                                    ``(XI) The Governor of the State of 
                                Texas.
                          ``(iii) Alternate.--A Governor appointed to 
                      the Council by the President may designate an 
                      alternate to represent the Governor on the Council 
                      and vote on behalf of the Governor.
                          
                      ``(iv) <<NOTE: President. Appointment.>> Chairperso
                      n.--From among the Federal agency members of the 
                      Council, the representatives of States on the 
                      Council shall select, and the President

[[Page 126 STAT. 596]]

                      shall appoint, 1 Federal member to serve as 
                      Chairperson of the Council.
                          ``(v) Presidential appointment.--All Council 
                      members shall be appointed by the President.
                          ``(vi) Council actions.--
                                    ``(I) In general.--The following 
                                actions by the Council shall require the 
                                affirmative vote of the Chairperson and 
                                a majority of the State members to be 
                                effective:
                                            ``(aa) Approval of a 
                                        Comprehensive Plan and future 
                                        revisions to a Comprehensive 
                                        Plan.
                                            ``(bb) Approval of State 
                                        plans pursuant to paragraph 
                                        (3)(B)(iv).
                                            ``(cc) Approval of reports 
                                        to Congress pursuant to clause 
                                        (vii)(VII).
                                            ``(dd) Approval of transfers 
                                        pursuant to subparagraph 
                                        (E)(ii)(I).
                                            ``(ee) Other significant 
                                        actions determined by the 
                                        Council.
                                    ``(II) Quorum.--A majority of State 
                                members shall be required to be present 
                                for the Council to take any significant 
                                action.
                                    ``(III) Affirmative vote requirement 
                                considered met.--For approval of State 
                                plans pursuant to paragraph (3)(B)(iv), 
                                the certification by a State member of 
                                the Council that the plan satisfies all 
                                requirements of clauses (i) and (ii) of 
                                paragraph (3)(B), when joined by an 
                                affirmative vote of the Federal 
                                Chairperson of the Council, shall be 
                                considered to satisfy the requirements 
                                for affirmative votes under subclause 
                                (I).
                                    ``(IV) Public transparency.--
                                Appropriate actions of the Council, 
                                including significant actions and 
                                associated deliberations, shall be made 
                                available to the public via electronic 
                                means prior to any vote.
                          ``(vii) Duties of council.--The Council 
                      shall--
                                    ``(I) develop the Comprehensive Plan 
                                and future revisions to the 
                                Comprehensive Plan;
                                    ``(II) identify as soon as 
                                practicable the projects that--
                                            ``(aa) have been authorized 
                                        prior to the date of enactment 
                                        of this subsection but not yet 
                                        commenced; and
                                            ``(bb) if implemented 
                                        quickly, would restore and 
                                        protect the natural resources, 
                                        ecosystems, fisheries, marine 
                                        and wildlife habitats, beaches, 
                                        barrier islands, dunes, and 
                                        coastal wetlands of the Gulf 
                                        Coast region;
                                    ``(III) establish such other 1 or 
                                more advisory committees as may be 
                                necessary to assist the Council, 
                                including a scientific advisory 
                                committee and a committee to advise the 
                                Council on public policy issues;
                                    ``(IV) collect and consider 
                                scientific and other research associated 
                                with restoration of the Gulf Coast 
                                ecosystem, including research, 
                                observation,

[[Page 126 STAT. 597]]

                                and monitoring carried out pursuant to 
                                sections 1604 and 1605 of the Resources 
                                and Ecosystems Sustainability, Tourist 
                                Opportunities, and Revived Economies of 
                                the Gulf Coast States Act of 2012;
                                    ``(V) develop standard terms to 
                                include in contracts for projects and 
                                programs awarded pursuant to the 
                                Comprehensive Plan that provide a 
                                preference to individuals and companies 
                                that reside in, are headquartered in, or 
                                are principally engaged in business in a 
                                Gulf Coast State;
                                    ``(VI) prepare an integrated 
                                financial plan and recommendations for 
                                coordinated budget requests for the 
                                amounts proposed to be expended by the 
                                Federal agencies represented on the 
                                Council for projects and programs in the 
                                Gulf Coast States; and
                                    ``(VII) <<NOTE: Reports.>> submit to 
                                Congress an annual report that--
                                            ``(aa) summarizes the 
                                        policies, strategies, plans, and 
                                        activities for addressing the 
                                        restoration and protection of 
                                        the Gulf Coast region;
                                            ``(bb) describes the 
                                        projects and programs being 
                                        implemented to restore and 
                                        protect the Gulf Coast region, 
                                        including--
                                                ``(AA) a list of each 
                                            project and program;
                                                ``(BB) an identification 
                                            of the funding provided to 
                                            projects and programs 
                                            identified in subitem (AA);
                                                ``(CC) an identification 
                                            of each recipient for 
                                            funding identified in 
                                            subitem (BB); and
                                                ``(DD) a description of 
                                            the length of time and 
                                            funding needed to complete 
                                            the objectives of each 
                                            project and program 
                                            identified in subitem (AA);
                                            ``(cc) makes such 
                                        recommendations to Congress for 
                                        modifications of existing laws 
                                        as the Council determines 
                                        necessary to implement the 
                                        Comprehensive Plan;
                                            ``(dd) reports on the 
                                        progress on implementation of 
                                        each project or program--
                                                ``(AA) after 3 years of 
                                            ongoing activity of the 
                                            project or program, if 
                                            applicable; and
                                                ``(BB) on completion of 
                                            the project or program;
                                            ``(ee) includes the 
                                        information required to be 
                                        submitted under section 
                                        1605(c)(4) of the Resources and 
                                        Ecosystems Sustainability, 
                                        Tourist Opportunities, and 
                                        Revived Economies of the Gulf 
                                        Coast States Act of 2012; and
                                            ``(ff) submits the reports 
                                        required under item (dd) to--
                                                ``(AA) the Committee on 
                                            Science, Space, and 
                                            Technology, the Committee on

[[Page 126 STAT. 598]]

                                            Natural Resources, the 
                                            Committee on Transportation 
                                            and Infrastructure, and the 
                                            Committee on Appropriations 
                                            of the House of 
                                            Representatives; and
                                                ``(BB) the Committee on 
                                            Environment and Public 
                                            Works, the Committee on 
                                            Commerce, Science, and 
                                            Transportation, the 
                                            Committee on Energy and 
                                            Natural Resources, and the 
                                            Committee on Appropriations 
                                            of the Senate.
                          ``(viii) Application of federal advisory 
                      committee act.--The Council, or any other advisory 
                      committee established under this subparagraph, 
                      shall not be considered an advisory committee 
                      under the Federal Advisory Committee Act (5 U.S.C. 
                      App.).
                          ``(ix) Sunset.--The authority for the Council, 
                      and any other advisory committee established under 
                      this subparagraph, shall terminate on the date all 
                      funds in the Trust Fund have been expended.
                    ``(D) Comprehensive plan.--
                          ``(i) Proposed plan.--
                                    
                                ``(I) <<NOTE: Deadline. Publication.>> In
                                 general.--Not later than 180 days after 
                                the date of enactment of the Resources 
                                and Ecosystems Sustainability, Tourist 
                                Opportunities, and Revived Economies of 
                                the Gulf Coast States Act of 2012, the 
                                Chairperson, on behalf of the Council 
                                and after appropriate public input, 
                                review, and comment, shall publish a 
                                proposed plan to restore and protect the 
                                natural resources, ecosystems, 
                                fisheries, marine and wildlife habitats, 
                                beaches, and coastal wetlands of the 
                                Gulf Coast region.
                                    ``(II) Inclusions.--The proposed 
                                plan described in subclause (I) shall 
                                include and incorporate the findings and 
                                information prepared by the President's 
                                Gulf Coast Restoration Task Force.
                          ``(ii) Publication.--
                                    ``(I) <<NOTE: Deadline. Federal 
                                Register, publication.>> Initial plan.--
                                Not later than 1 year after the date of 
                                enactment of the Resources and 
                                Ecosystems Sustainability, Tourist 
                                Opportunities, and Revived Economies of 
                                the Gulf Coast States Act of 2012 and 
                                after notice and opportunity for public 
                                comment, the Chairperson, on behalf of 
                                the Council and after approval by the 
                                Council, shall publish in the Federal 
                                Register the initial Comprehensive Plan 
                                to restore and protect the natural 
                                resources, ecosystems, fisheries, marine 
                                and wildlife habitats, beaches, and 
                                coastal wetlands of the Gulf Coast 
                                region.
                                    ``(II) Cooperation with gulf coast 
                                restoration task force.--The Council 
                                shall develop the initial Comprehensive 
                                Plan in close coordination with the 
                                President's Gulf Coast Restoration Task 
                                Force.
                                    ``(III) Considerations.--In 
                                developing the initial Comprehensive 
                                Plan and subsequent updates, the Council 
                                shall consider all relevant findings,

[[Page 126 STAT. 599]]

                                reports, or research prepared or funded 
                                under section 1604 or 1605 of the 
                                Resources and Ecosystems Sustainability, 
                                Tourist Opportunities, and Revived 
                                Economies of the Gulf Coast States Act 
                                of 2012.
                                    ``(IV) Contents.--The initial 
                                Comprehensive Plan shall include--
                                            ``(aa) such provisions as 
                                        are necessary to fully 
                                        incorporate in the Comprehensive 
                                        Plan the strategy, projects, and 
                                        programs recommended by the 
                                        President's Gulf Coast 
                                        Restoration Task Force;
                                            ``(bb) a list of any project 
                                        or program authorized prior to 
                                        the date of enactment of this 
                                        subsection but not yet 
                                        commenced, the completion of 
                                        which would further the purposes 
                                        and goals of this subsection and 
                                        of the Resources and Ecosystems 
                                        Sustainability, Tourist 
                                        Opportunities, and Revived 
                                        Economies of the Gulf Coast 
                                        States Act of 2012;
                                            ``(cc) a description of the 
                                        manner in which amounts from the 
                                        Trust Fund projected to be made 
                                        available to the Council for the 
                                        succeeding 10 years will be 
                                        allocated; and
                                            ``(dd) subject to available 
                                        funding in accordance with 
                                        clause (iii), a prioritized list 
                                        of specific projects and 
                                        programs to be funded and 
                                        carried out during the 3-year 
                                        period immediately following the 
                                        date of publication of the 
                                        initial Comprehensive Plan, 
                                        including a table that 
                                        illustrates the distribution of 
                                        projects and programs by the 
                                        Gulf Coast State.
                                    ``(V) Plan updates.--The Council 
                                shall update--
                                            ``(aa) <<NOTE: Time 
                                        period.>> the Comprehensive Plan 
                                        every 5 years in a manner 
                                        comparable to the manner 
                                        established in this subparagraph 
                                        for each 5-year period for which 
                                        amounts are expected to be made 
                                        available to the Gulf Coast 
                                        States from the Trust Fund; and
                                            ``(bb) the 3-year list of 
                                        projects and programs described 
                                        in subclause (IV)(dd) annually.
                          ``(iii) Restoration priorities.--Except for 
                      projects and programs described in clause 
                      (ii)(IV)(bb), in selecting projects and programs 
                      to include on the 3-year list described in clause 
                      (ii)(IV)(dd), based on the best available science, 
                      the Council shall give highest priority to 
                      projects that address 1 or more of the following 
                      criteria:
                                    ``(I) Projects that are projected to 
                                make the greatest contribution to 
                                restoring and protecting the natural 
                                resources, ecosystems, fisheries, marine 
                                and wildlife habitats, beaches, and 
                                coastal wetlands of the Gulf Coast 
                                region, without regard to geographic 
                                location within the Gulf Coast region.

[[Page 126 STAT. 600]]

                                    ``(II) Large-scale projects and 
                                programs that are projected to 
                                substantially contribute to restoring 
                                and protecting the natural resources, 
                                ecosystems, fisheries, marine and 
                                wildlife habitats, beaches, and coastal 
                                wetlands of the Gulf Coast ecosystem.
                                    ``(III) Projects contained in 
                                existing Gulf Coast State comprehensive 
                                plans for the restoration and protection 
                                of natural resources, ecosystems, 
                                fisheries, marine and wildlife habitats, 
                                beaches, and coastal wetlands of the 
                                Gulf Coast region.
                                    ``(IV) Projects that restore long-
                                term resiliency of the natural 
                                resources, ecosystems, fisheries, marine 
                                and wildlife habitats, beaches, and 
                                coastal wetlands most impacted by the 
                                Deepwater Horizon oil spill.
                    ``(E) Implementation.--
                          ``(i) In general.--The Council, acting through 
                      the Federal agencies represented on the Council 
                      and Gulf Coast States, shall expend funds made 
                      available from the Trust Fund to carry out 
                      projects and programs adopted in the Comprehensive 
                      Plan.
                          ``(ii) Administrative responsibility.--
                                    ``(I) In general.--Primary authority 
                                and responsibility for each project and 
                                program included in the Comprehensive 
                                Plan shall be assigned by the Council to 
                                a Gulf Coast State represented on the 
                                Council or a Federal agency.
                                    ``(II) Transfer of amounts.--Amounts 
                                necessary to carry out each project or 
                                program included in the Comprehensive 
                                Plan shall be transferred by the 
                                Secretary of the Treasury from the Trust 
                                Fund to that Federal agency or Gulf 
                                Coast State as the project or program is 
                                implemented, subject to such conditions 
                                as the Secretary of the Treasury, in 
                                consultation with the Secretary of the 
                                Interior and the Secretary of Commerce, 
                                established pursuant to section 1602 of 
                                the Resources and Ecosystems 
                                Sustainability, Tourist Opportunities, 
                                and Revived Economies of the Gulf Coast 
                                States Act of 2012.
                                    ``(III) <<NOTE: Federal Register, 
                                publication.>> Limitation on 
                                transfers.--
                                            ``(aa) Grants to 
                                        nongovernmental entities.--In 
                                        the case of funds transferred to 
                                        a Federal or State agency under 
                                        subclause (II), the agency shall 
                                        not make 1 or more grants or 
                                        cooperative agreements to a 
                                        nongovernmental entity if the 
                                        total amount provided to the 
                                        entity would equal or exceed 10 
                                        percent of the total amount 
                                        provided to the agency for that 
                                        particular project or program, 
                                        unless the 1 or more grants have 
                                        been reported in accordance with 
                                        item (bb).
                                            ``(bb) <<NOTE: Time 
                                        period.>> Reporting of 
                                        grantees.--At least 30 days 
                                        prior to making a grant or 
                                        entering into a cooperative 
                                        agreement described in item 
                                        (aa), the name of each grantee, 
                                        including the

[[Page 126 STAT. 601]]

                                        amount and purpose of each grant 
                                        or cooperative agreement, shall 
                                        be published in the Federal 
                                        Register and delivered to the 
                                        congressional committees listed 
                                        in subparagraph 
                                        (C)(vii)(VII)(ff).
                                            ``(cc) Annual reporting of 
                                        grantees.--Annually, the name of 
                                        each grantee, including the 
                                        amount and purposes of each 
                                        grant or cooperative agreement, 
                                        shall be published in the 
                                        Federal Register and delivered 
                                        to Congress as part of the 
                                        report submitted pursuant to 
                                        subparagraph (C)(vii)(VII).
                                    ``(IV) Project and program 
                                limitation.--The Council, a Federal 
                                agency, or a State may not carry out a 
                                project or program funded under this 
                                paragraph outside of the Gulf Coast 
                                region.
                    ``(F) Coordination.--The Council and the Federal 
                members of the Council may develop memoranda of 
                understanding establishing integrated funding and 
                implementation plans among the member agencies and 
                authorities.
            ``(3) Oil spill restoration impact allocation.--
                    ``(A) In general.--
                          ``(i) Disbursement.--Of the total amount made 
                      available from the Trust Fund, 30 percent shall be 
                      disbursed pursuant to the formula in clause (ii) 
                      to the Gulf Coast States on the approval of the 
                      plan described in subparagraph (B)(i).
                          ``(ii) <<NOTE: Regulations.>> Formula.--
                      Subject to subparagraph (B), for each Gulf Coast 
                      State, the amount disbursed under this paragraph 
                      shall be based on a formula established by the 
                      Council by regulation that is based on a weighted 
                      average of the following criteria:
                                    ``(I) 40 percent based on the 
                                proportionate number of miles of 
                                shoreline in each Gulf Coast State that 
                                experienced oiling on or before April 
                                10, 2011, compared to the total number 
                                of miles of shoreline that experienced 
                                oiling as a result of the Deepwater 
                                Horizon oil spill.
                                    ``(II) 40 percent based on the 
                                inverse proportion of the average 
                                distance from the mobile offshore 
                                drilling unit Deepwater Horizon at the 
                                time of the explosion to the nearest and 
                                farthest point of the shoreline that 
                                experienced oiling of each Gulf Coast 
                                State.
                                    ``(III) 20 percent based on the 
                                average population in the 2010 decennial 
                                census of coastal counties bordering the 
                                Gulf of Mexico within each Gulf Coast 
                                State.
                          ``(iii) Minimum allocation.--The amount 
                      disbursed to a Gulf Coast State for each fiscal 
                      year under clause (ii) shall be at least 5 percent 
                      of the total amounts made available under this 
                      paragraph.
                    ``(B) Disbursement of funds.--
                          ``(i) <<NOTE: Expenditure plan.>> In 
                      general.--The Council shall disburse amounts to 
                      the respective Gulf Coast States in accordance 
                      with the formula developed under subparagraph (A) 
                      for projects, programs, and activities that will

[[Page 126 STAT. 602]]

                      improve the ecosystems or economy of the Gulf 
                      Coast region, subject to the condition that each 
                      Gulf Coast State submits a plan for the 
                      expenditure of amounts disbursed under this 
                      paragraph that meets the following criteria:
                                    ``(I) All projects, programs, and 
                                activities included in the plan are 
                                eligible activities pursuant to clauses 
                                (i) and (ii) of paragraph (1)(B).
                                    ``(II) The projects, programs, and 
                                activities included in the plan 
                                contribute to the overall economic and 
                                ecological recovery of the Gulf Coast.
                                    ``(III) The plan takes into 
                                consideration the Comprehensive Plan and 
                                is consistent with the goals and 
                                objectives of the Plan, as described in 
                                paragraph (2)(B)(i).
                          ``(ii) Funding.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the plan 
                                described in clause (i) may use not more 
                                than 25 percent of the funding made 
                                available for infrastructure projects 
                                eligible under subclauses (VI) and (VII) 
                                of paragraph (1)(B)(i).
                                    ``(II) Exception.--The plan 
                                described in clause (i) may propose to 
                                use more than 25 percent of the funding 
                                made available for infrastructure 
                                projects eligible under subclauses (VI) 
                                and (VII) of paragraph (1)(B)(i) if the 
                                plan certifies that--
                                            ``(aa) ecosystem restoration 
                                        needs in the State will be 
                                        addressed by the projects in the 
                                        proposed plan; and
                                            ``(bb) additional investment 
                                        in infrastructure is required to 
                                        mitigate the impacts of the 
                                        Deepwater Horizon Oil Spill to 
                                        the ecosystem or economy.
                          ``(iii) <<NOTE: State 
                      listing.>> Development.--The plan described in 
                      clause (i) shall be developed by--
                                    ``(I) in the State of Alabama, the 
                                Alabama Gulf Coast Recovery Council 
                                established under paragraph (1)(F)(i);
                                    ``(II) in the State of Florida, a 
                                consortia of local political 
                                subdivisions that includes at a minimum 
                                1 representative of each affected 
                                county;
                                    ``(III) in the State of Louisiana, 
                                the Coastal Protection and Restoration 
                                Authority of Louisiana;
                                    ``(IV) in the State of Mississippi, 
                                the Office of the Governor or an 
                                appointee of the Office of the Governor; 
                                and
                                    ``(V) in the State of Texas, the 
                                Office of the Governor or an appointee 
                                of the Office of the Governor.
                          ``(iv) <<NOTE: Deadline.>> Approval.--Not 
                      later than 60 days after the date on which a plan 
                      is submitted under clause (i), the Council shall 
                      approve or disapprove the plan based on the 
                      conditions of clause (i).
                    ``(C) Disapproval.--If the Council disapproves a 
                plan pursuant to subparagraph (B)(iv), the Council 
                shall--
                          ``(i) provide the reasons for disapproval in 
                      writing; and

[[Page 126 STAT. 603]]

                          ``(ii) <<NOTE: Consultation.>> consult with 
                      the State to address any identified deficiencies 
                      with the State plan.
                    ``(D) Failure to submit adequate plan.--If a State 
                fails to submit an adequate plan under this paragraph, 
                any funds made available under this paragraph shall 
                remain in the Trust Fund until such date as a plan is 
                submitted and approved pursuant to this paragraph.
                    ``(E) <<NOTE: Deadlines.>> Judicial review.--If the 
                Council fails to approve or take action within 60 days 
                on a plan, as described in subparagraph (B)(iv), the 
                State may obtain expedited judicial review within 90 
                days of that decision in a district court of the United 
                States, of appropriate jurisdiction and venue, that is 
                located within the State seeking the review.
                    ``(F) Cost-sharing.--
                          ``(i) In general.--A Gulf Coast State or 
                      coastal political subdivision may use, in whole or 
                      in part, amounts made available to that Gulf Coast 
                      State or coastal political subdivision under this 
                      paragraph to satisfy the non-Federal share of any 
                      project or program that--
                                    ``(I) is authorized by other Federal 
                                law; and
                                    ``(II) is an eligible activity 
                                described in clause (i) or (ii) of 
                                paragraph (1)(B).
                          ``(ii) Effect on other funds.--The use of 
                      funds made available from the Trust Fund under 
                      this paragraph to satisfy the non-Federal share of 
                      the cost of a project or program described in 
                      clause (i) shall not affect the priority in which 
                      other Federal funds are allocated or awarded.
            ``(4) Authorization of interest transfers.--Of the total 
        amount made available for any fiscal year from the Trust Fund 
        that is equal to the interest earned by the Trust Fund and 
        proceeds from investments made by the Trust Fund in the 
        preceding fiscal year--
                    ``(A) 50 percent shall be divided equally between--
                          ``(i) the Gulf Coast Ecosystem Restoration 
                      Science, Observation, Monitoring, and Technology 
                      program authorized in section 1604 of the 
                      Resources and Ecosystems Sustainability, Tourist 
                      Opportunities, and Revived Economies of the Gulf 
                      Coast States Act of 2012; and
                          ``(ii) the centers of excellence research 
                      grants authorized in section 1605 of that Act; and
                    ``(B) 50 percent shall be made available to the Gulf 
                Coast Ecosystem Restoration Council to carry out the 
                Comprehensive Plan pursuant to paragraph (2).''.
SEC. 1604. <<NOTE: 33 USC 1321 note.>> GULF COAST ECOSYSTEM 
                          RESTORATION SCIENCE, OBSERVATION, 
                          MONITORING, AND TECHNOLOGY PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
            (2) Commission.--The term ``Commission'' means the Gulf 
        States Marine Fisheries Commission.

[[Page 126 STAT. 604]]

            (3) Director.--The term ``Director'' means the Director of 
        the United States Fish and Wildlife Service.
            (4) Program.--The term ``program'' means the Gulf Coast 
        Ecosystem Restoration Science, Observation, Monitoring, and 
        Technology program established under this section.

    (b) Establishment of Program.--
            (1) <<NOTE: Deadline.>> In general.--Not later than 180 days 
        after the date of enactment of this Act, the Administrator, in 
        consultation with the Director, shall establish the Gulf Coast 
        Ecosystem Restoration Science, Observation, Monitoring, and 
        Technology program to carry out research, observation, and 
        monitoring to support, to the maximum extent practicable, the 
        long-term sustainability of the ecosystem, fish stocks, fish 
        habitat, and the recreational, commercial, and charter fishing 
        industry in the Gulf of Mexico.
            (2) Expenditure of funds.--For each fiscal year, amounts 
        made available to carry out this subsection may be expended for, 
        with respect to the Gulf of Mexico--
                    (A) marine and estuarine research;
                    (B) marine and estuarine ecosystem monitoring and 
                ocean observation;
                    (C) data collection and stock assessments;
                    (D) pilot programs for--
                          (i) fishery independent data; and
                          (ii) reduction of exploitation of spawning 
                      aggregations; and
                    (E) cooperative research.
            (3) Cooperation with the commission.--For each fiscal year, 
        amounts made available to carry out this subsection may be 
        transferred to the Commission to establish a fisheries 
        monitoring and research program, with respect to the Gulf of 
        Mexico.
            (4) Consultation.--The Administrator and the Director shall 
        consult with the Regional Gulf of Mexico Fishery Management 
        Council and the Commission in carrying out the program.

    (c) Species Included.--The research, monitoring, assessment, and 
programs eligible for amounts made available under the program shall 
include all marine, estuarine, aquaculture, and fish species in State 
and Federal waters of the Gulf of Mexico.
    (d) Research Priorities.--In distributing funding under this 
subsection, priority shall be given to integrated, long-term projects 
that--
            (1) build on, or are coordinated with, related research 
        activities; and
            (2) address current or anticipated marine ecosystem, 
        fishery, or wildlife management information needs.

    (e) Duplication.--In carrying out this section, the Administrator, 
in consultation with the Director, shall seek to avoid duplication of 
other research and monitoring activities.
    (f) <<NOTE: Plan. State listing.>> Coordination With Other 
Programs.--The Administrator, in consultation with the Director, shall 
develop a plan for the coordination of projects and activities between 
the program and other existing Federal and State science and technology 
programs in the States of Alabama, Florida, Louisiana, Mississippi, and 
Texas, as well as between the centers of excellence.

    (g) Limitation on Expenditures.--

[[Page 126 STAT. 605]]

            (1) In general.--Not more than 3 percent of funds provided 
        in subsection (h) shall be used for administrative expenses.
            (2) NOAA.--The funds provided in subsection (h) may not be 
        used--
                    (A) for any existing or planned research led by the 
                National Oceanic and Atmospheric Administration, unless 
                agreed to in writing by the grant recipient;
                    (B) to implement existing regulations or initiate 
                new regulations promulgated or proposed by the National 
                Oceanic and Atmospheric Administration; or
                    (C) to develop or approve a new limited access 
                privilege program (as that term is used in section 303A 
                of the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1853a)) for any fishery under 
                the jurisdiction of the South Atlantic, Mid-Atlantic, 
                New England, or Gulf of Mexico Fishery Management 
                Councils.

    (h) Funding.--Of the total amount made available for each fiscal 
year for the Gulf Coast Restoration Trust Fund established under section 
1602, 2.5 percent shall be available to carry out the program.
    (i) Sunset.--The program shall cease operations when all funds in 
the Gulf Coast Restoration Trust Fund established under section 1602 
have been expended.
SEC. 1605. <<NOTE: 33 USC 1321 note.>> CENTERS OF EXCELLENCE 
                          RESEARCH GRANTS.

    (a) In General.--Of the total amount made available for each fiscal 
year from the Gulf Coast Restoration Trust Fund established under 
section 1602, 2.5 percent shall be made available to the Gulf Coast 
States (as defined in section 311(a) of the Federal Water Pollution 
Control Act (as added by section 1603 of the Resources and Ecosystems 
Sustainability, Tourist Opportunities, and Revived Economies of the Gulf 
Coast States Act of 2012)), in equal shares, exclusively for grants in 
accordance with subsection (c) to establish centers of excellence to 
conduct research only on the Gulf Coast Region (as defined in section 
311 of the Federal Water Pollution Control Act (33. U.S.C. 1321)).
    (b) Approval by State Entity, Task Force, or Agency.--The duties of 
a Gulf Coast State under this section shall be carried out by the 
applicable Gulf Coast State entities, task forces, or agencies listed in 
section 311(t)(1)(F) of the Federal Water Pollution Control Act (as 
added by section 1603 of the Resources and Ecosystems Sustainability, 
Tourist Opportunities, and Revived Economies of the Gulf Coast States 
Act of 2012), and for the State of Florida, a consortium of public and 
private research institutions within the State, which shall include the 
Florida Department of Environmental Protection and the Florida Fish and 
Wildlife Conservation Commission, for that Gulf Coast State.
    (c) Grants.--
            (1) In general.--A Gulf Coast State shall use the amounts 
        made available to carry out this section to award competitive 
        grants to nongovernmental entities and consortia in the Gulf 
        Coast region (including public and private institutions of 
        higher education) for the establishment of centers of excellence 
        as described in subsection (d).
            (2) Application.--To be eligible to receive a grant under 
        this subsection, an entity or consortium described in paragraph

[[Page 126 STAT. 606]]

        (1) shall submit to a Gulf Coast State an application at such 
        time, in such manner, and containing such information as the 
        Gulf Coast State determines to be appropriate.
            (3) Priority.--In awarding grants under this subsection, a 
        Gulf Coast State shall give priority to entities and consortia 
        that demonstrate the ability to establish the broadest cross-
        section of participants with interest and expertise in any 
        discipline described in subsection (d) on which the proposal of 
        the center of excellence will be focused.
            (4) Reporting.--
                    (A) In general.--Each Gulf Coast State shall provide 
                annually to the Gulf Coast Ecosystem Restoration Council 
                established under section 311(t)(2)(C) of the Federal 
                Water Pollution Control Act (as added by section 1603 of 
                the Resources and Ecosystems Sustainability, Tourist 
                Opportunities, and Revived Economies of the Gulf Coast 
                States Act of 2012) information regarding all grants, 
                including the amount, discipline or disciplines, and 
                recipients of the grants, and in the case of any grant 
                awarded to a consortium, the membership of the 
                consortium.
                    (B) Inclusion.--The Gulf Coast Ecosystem Restoration 
                Council shall include the information received under 
                subparagraph (A) in the annual report to Congress of the 
                Council required under section 311(t)(2)(C)(vii)(VII) of 
                the Federal Water Pollution Control Act (as added by 
                section 1603 of the Resources and Ecosystems 
                Sustainability, Tourist Opportunities, and Revived 
                Economies of the Gulf Coast States Act of 2012).

    (d) Disciplines.--Each center of excellence shall focus on science, 
technology, and monitoring in at least 1 of the following disciplines:
            (1) Coastal and deltaic sustainability, restoration and 
        protection, including solutions and technology that allow 
        citizens to live in a safe and sustainable manner in a coastal 
        delta in the Gulf Coast Region.
            (2) Coastal fisheries and wildlife ecosystem research and 
        monitoring in the Gulf Coast Region.
            (3) Offshore energy development, including research and 
        technology to improve the sustainable and safe development of 
        energy resources in the Gulf of Mexico.
            (4) Sustainable and resilient growth, economic and 
        commercial development in the Gulf Coast Region.
            (5) Comprehensive observation, monitoring, and mapping of 
        the Gulf of Mexico.
SEC. 1606. <<NOTE: 33 USC 1321 note.>> EFFECT.

    (a) Definition of Deepwater Horizon Oil Spill.--In this section, the 
term ``Deepwater Horizon oil spill'' has the meaning given the term in 
section 311(a) of the Federal Water Pollution Control Act (33 U.S.C. 
1321(a)).
    (b) Effect and Application.--Nothing in this subtitle or any 
amendment made by this subtitle--
            (1) supersedes or otherwise affects any other provision of 
        Federal law, including, in particular, laws providing recovery 
        for injury to natural resources under the Oil Pollution Act of 
        1990 (33 U.S.C. 2701 et seq.) and laws for the protection of 
        public health and the environment; or

[[Page 126 STAT. 607]]

            (2) applies to any fine collected under section 311 of the 
        Federal Water Pollution Control Act (33 U.S.C. 1321) for any 
        incident other than the Deepwater Horizon oil spill.

    (c) Use of Funds.--Funds made available under this subtitle may be 
used only for eligible activities specifically authorized by this 
subtitle and the amendments made by this subtitle.
SEC. 1607. <<NOTE: 33 USC 1321 note.>> RESTORATION AND PROTECTION 
                          ACTIVITY LIMITATIONS.

    (a) Willing Seller.--Funds made available under this subtitle may 
only be used to acquire land or interests in land by purchase, exchange, 
or donation from a willing seller.
    (b) Acquisition of Federal Land.--None of the funds made available 
under this subtitle may be used to acquire land in fee title by the 
Federal Government unless--
            (1) the land is acquired by exchange or donation; or
            (2) the acquisition is necessary for the restoration and 
        protection of the natural resources, ecosystems, fisheries, 
        marine and wildlife habitats, beaches, and coastal wetlands of 
        the Gulf Coast region and has the concurrence of the Governor of 
        the State in which the acquisition will take place.
SEC. 1608. <<NOTE: Audits. Investigations. 33 USC 1321 
                          note.>> INSPECTOR GENERAL.

    The Office of the Inspector General of the Department of the 
Treasury shall have authority to conduct, supervise, and coordinate 
audits and investigations of projects, programs, and activities funded 
under this subtitle and the amendments made by this subtitle.

  TITLE II-- <<NOTE: America Fast Forward Financing Innovation Act of 
2012.>> AMERICA FAST FORWARD FINANCING INNOVATION
SEC. 2001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

    This title may be cited as the ``America Fast Forward Financing 
Innovation Act of 2012''.
SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION 
                          ACT OF 1998 AMENDMENTS.

    Sections 601 through 609 of title 23, United States Code, are 
amended to read as follows:
``Sec. 601. Generally applicable provisions

    ``(a) Definitions.--In this chapter, the following definitions 
apply:
            ``(1) Contingent commitment.--The term `contingent 
        commitment' means a commitment to obligate an amount from future 
        available budget authority that is--
                    ``(A) contingent on those funds being made available 
                in law at a future date; and
                    ``(B) not an obligation of the Federal Government.
            ``(2) Eligible project costs.--The term `eligible project 
        costs' means amounts substantially all of which are paid by, or 
        for the account of, an obligor in connection with a project, 
        including the cost of--
                    ``(A) development phase activities, including 
                planning, feasibility analysis, revenue forecasting, 
                environmental

[[Page 126 STAT. 608]]

                review, permitting, preliminary engineering and design 
                work, and other preconstruction activities;
                    ``(B) construction, reconstruction, rehabilitation, 
                replacement, and acquisition of real property (including 
                land relating to the project and improvements to land), 
                environmental mitigation, construction contingencies, 
                and acquisition of equipment; and
                    ``(C) capitalized interest necessary to meet market 
                requirements, reasonably required reserve funds, capital 
                issuance expenses, and other carrying costs during 
                construction.
            ``(3) Federal credit instrument.--The term `Federal credit 
        instrument' means a secured loan, loan guarantee, or line of 
        credit authorized to be made available under this chapter with 
        respect to a project.
            ``(4) Investment-grade rating.--The term `investment-grade 
        rating' means a rating of BBB minus, Baa3, bbb minus, BBB (low), 
        or higher assigned by a rating agency to project obligations.
            ``(5) Lender.--The term `lender' means any non-Federal 
        qualified institutional buyer (as defined in section 230.144A(a) 
        of title 17, Code of Federal Regulations (or any successor 
        regulation), known as Rule 144A(a) of the Securities and 
        Exchange Commission and issued under the Securities Act of 1933 
        (15 U.S.C. 77a et seq.)), including--
                    ``(A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986) 
                that is a qualified institutional buyer; and
                    ``(B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986) that is a 
                qualified institutional buyer.
            ``(6) Letter of interest.--The term `letter of interest' 
        means a letter submitted by a potential applicant prior to an 
        application for credit assistance in a format prescribed by the 
        Secretary on the website of the TIFIA program that--
                    ``(A) describes the project and the location, 
                purpose, and cost of the project;
                    ``(B) outlines the proposed financial plan, 
                including the requested credit assistance and the 
                proposed obligor;
                    ``(C) provides a status of environmental review; and
                    ``(D) provides information regarding satisfaction of 
                other eligibility requirements of the TIFIA program.
            ``(7) Line of credit.--The term `line of credit' means an 
        agreement entered into by the Secretary with an obligor under 
        section 604 to provide a direct loan at a future date upon the 
        occurrence of certain events.
            ``(8) Limited buydown.--The term `limited buydown' means, 
        subject to the conditions described in section 603(b)(4)(C), a 
        buydown of the interest rate by the obligor if the interest rate 
        has increased between--
                    ``(A)(i) the date on which a project application 
                acceptable to the Secretary is submitted; or
                    ``(ii) the date on which the Secretary entered into 
                a master credit agreement; and
                    ``(B) the date on which the Secretary executes the 
                Federal credit instrument.

[[Page 126 STAT. 609]]

            ``(9) Loan guarantee.--The term `loan guarantee' means any 
        guarantee or other pledge by the Secretary to pay all or part of 
        the principal of and interest on a loan or other debt obligation 
        issued by an obligor and funded by a lender.
            ``(10) Master credit agreement.--The term `master credit 
        agreement' means an agreement to extend credit assistance for a 
        program of projects secured by a common security pledge (which 
        shall receive an investment grade rating from a rating agency), 
        or for a single project covered under section 602(b)(2) that 
        would--
                    ``(A) make contingent commitments of 1 or more 
                secured loans or other Federal credit instruments at 
                future dates, subject to the availability of future 
                funds being made available to carry out this chapter;
                    ``(B) establish the maximum amounts and general 
                terms and conditions of the secured loans or other 
                Federal credit instruments;
                    ``(C) identify the 1 or more dedicated non-Federal 
                revenue sources that will secure the repayment of the 
                secured loans or secured Federal credit instruments;
                    ``(D) provide for the obligation of funds for the 
                secured loans or secured Federal credit instruments 
                after all requirements have been met for the projects 
                subject to the master credit agreement, including--
                          ``(i) completion of an environmental impact 
                      statement or similar analysis required under the 
                      National Environmental Policy Act of 1969 (42 
                      U.S.C. 4321 et seq.);
                          ``(ii) compliance with such other requirements 
                      as are specified in section 602(c); and
                          ``(iii) the availability of funds to carry out 
                      this chapter; and
                    ``(E) require that contingent commitments result in 
                a financial close and obligation of credit assistance 
                not later than 3 years after the date of entry into the 
                master credit agreement, or release of the commitment, 
                unless otherwise extended by the Secretary.
            ``(11) Obligor.--The term `obligor' means a party that--
                    ``(A) is primarily liable for payment of the 
                principal of or interest on a Federal credit instrument; 
                and
                    ``(B) may be a corporation, partnership, joint 
                venture, trust, or governmental entity, agency, or 
                instrumentality.
            ``(12) Project.--The term `project' means--
                    ``(A) any surface transportation project eligible 
                for Federal assistance under this title or chapter 53 of 
                title 49;
                    ``(B) a project for an international bridge or 
                tunnel for which an international entity authorized 
                under Federal or State law is responsible;
                    ``(C) a project for intercity passenger bus or rail 
                facilities and vehicles, including facilities and 
                vehicles owned by the National Railroad Passenger 
                Corporation and components of magnetic levitation 
                transportation systems; and
                    ``(D) a project that--
                          ``(i) is a project--
                                    ``(I) for a public freight rail 
                                facility or a private facility providing 
                                public benefit for highway users

[[Page 126 STAT. 610]]

                                by way of direct freight interchange 
                                between highway and rail carriers;
                                    ``(II) for an intermodal freight 
                                transfer facility;
                                    ``(III) for a means of access to a 
                                facility described in subclause (I) or 
                                (II);
                                    ``(IV) for a service improvement for 
                                a facility described in subclause (I) or 
                                (II) (including a capital investment for 
                                an intelligent transportation system); 
                                or
                                    ``(V) that comprises a series of 
                                projects described in subclauses (I) 
                                through (IV) 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;
                          ``(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
                          ``(iv) is composed of related highway, surface 
                      transportation, transit, rail, or intermodal 
                      capital improvement projects eligible for 
                      assistance under this section in order to meet the 
                      eligible project cost threshold under section 602, 
                      by grouping related projects together for that 
                      purpose, subject to the condition that the credit 
                      assistance for the projects is secured by a common 
                      pledge.
            ``(13) Project obligation.--The term `project obligation' 
        means any note, bond, debenture, or other debt obligation issued 
        by an obligor in connection with the financing of a project, 
        other than a Federal credit instrument.
            ``(14) Rating agency.--The term `rating agency' means a 
        credit rating agency registered with the Securities and Exchange 
        Commission as a nationally recognized statistical rating 
        organization (as that term is defined in section 3(a) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
            ``(15) Rural infrastructure project.--The term `rural 
        infrastructure project' means a surface transportation 
        infrastructure project located in any area other than a city 
        with a population of more than 250,000 inhabitants within the 
        city limits.
            ``(16) Secured loan.--The term `secured loan' means a direct 
        loan or other debt obligation issued by an obligor and funded by 
        the Secretary in connection with the financing of a project 
        under section 603.
            ``(17) State.--The term `State' has the meaning given the 
        term in section 101.
            ``(18) Subsidy amount.--The term `subsidy amount' means the 
        amount of budget authority sufficient to cover the estimated 
        long-term cost to the Federal Government of a Federal credit 
        instrument--
                    ``(A) calculated on a net present value basis; and
                    ``(B) excluding administrative costs and any 
                incidental effects on governmental receipts or outlays 
                in accordance with the Federal Credit Reform Act of 1990 
                (2 U.S.C. 661 et seq.).

[[Page 126 STAT. 611]]

            ``(19) Substantial completion.--The term `substantial 
        completion' means--
                    ``(A) the opening of a project to vehicular or 
                passenger traffic; or
                    ``(B) a comparable event, as determined by the 
                Secretary and specified in the credit agreement.
            ``(20) TIFIA program.--The term `TIFIA program' means the 
        transportation infrastructure finance and innovation program of 
        the Department.

    ``(b) Treatment of Chapter.--For purposes of this title, this 
chapter shall be treated as being part of chapter 1.
``Sec. 602. Determination of eligibility and project selection

    ``(a) Eligibility.--
            ``(1) In general.--A project shall be eligible to receive 
        credit assistance under this chapter if--
                    ``(A) the entity proposing to carry out the project 
                submits a letter of interest prior to submission of a 
                formal application for the project; and
                    ``(B) the project meets the criteria described in 
                this subsection.
            ``(2) Creditworthiness.--
                    ``(A) In general.--To be eligible for assistance 
                under this chapter, a project shall satisfy applicable 
                creditworthiness standards, which, at a minimum, shall 
                include--
                          ``(i) a rate covenant, if applicable;
                          ``(ii) adequate coverage requirements to 
                      ensure repayment;
                          ``(iii) an investment grade rating from at 
                      least 2 rating agencies on debt senior to the 
                      Federal credit instrument; and
                          ``(iv) a rating from at least 2 rating 
                      agencies on the Federal credit instrument, subject 
                      to the condition that, with respect to clause 
                      (iii), if the total amount of the senior debt and 
                      the Federal credit instrument is less than 
                      $75,000,000, 1 rating agency opinion for each of 
                      the senior debt and Federal credit instrument 
                      shall be sufficient.
                    ``(B) Senior debt.--Notwithstanding subparagraph 
                (A), in a case in which the Federal credit instrument is 
                the senior debt, the Federal credit instrument shall be 
                required to receive an investment grade rating from at 
                least 2 rating agencies, unless the credit instrument is 
                for an amount less than $75,000,000, in which case 1 
                rating agency opinion shall be sufficient.
            ``(3) Inclusion in transportation plans and programs.--A 
        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 chapter.
            ``(4) 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 that is acceptable to the 
        Secretary.
            ``(5) Eligible project costs.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), to be eligible for assistance under 
                this chapter, a

[[Page 126 STAT. 612]]

                project shall have eligible project costs that are 
                reasonably anticipated to equal or exceed the lesser 
                of--
                          ``(i)(I) $50,000,000; or
                          ``(II) in the case of a rural infrastructure 
                      project, $25,000,000; and
                          ``(ii) 33\1/3\ percent of the amount of 
                      Federal highway assistance funds apportioned for 
                      the most recently completed fiscal year to the 
                      State in which the project is located.
                    ``(B) Intelligent transportation system projects.--
                In the case of a project principally involving the 
                installation of an intelligent transportation system, 
                eligible project costs shall be reasonably anticipated 
                to equal or exceed $15,000,000.
            ``(6) Dedicated revenue sources.--The applicable Federal 
        credit instrument shall be repayable, in whole or in part, 
        from--
                    ``(A) tolls;
                    ``(B) user fees;
                    ``(C) payments owing to the obligor under a public-
                private partnership; or
                    ``(D) other dedicated revenue sources that also 
                secure or fund the project obligations.
            ``(7) Public sponsorship of private entities.--In the case 
        of a project that is undertaken by an entity that is not a State 
        or local government or an agency or instrumentality of a State 
        or local government, the project that the entity is undertaking 
        shall be publicly sponsored as provided in paragraph (3).
            ``(8) Applications where obligor will be identified later.--
        A State, local government, agency or instrumentality of a State 
        or local government, or public authority may submit to the 
        Secretary an application under paragraph (4), under which a 
        private party to a public-private partnership will be--
                    ``(A) the obligor; and
                    ``(B) identified later through completion of a 
                procurement and selection of the private party.
            ``(9) Beneficial effects.-- <<NOTE: Determination.>> The 
        Secretary shall determine that financial assistance for the 
        project under this chapter will--
                    ``(A) foster, if appropriate, partnerships that 
                attract public and private investment for the project;
                    ``(B) enable the project to proceed at an earlier 
                date than the project would otherwise be able to proceed 
                or reduce the lifecycle costs (including debt service 
                costs) of the project; and
                    ``(C) reduce the contribution of Federal grant 
                assistance for the project.
            ``(10) Project readiness.-- <<NOTE: Deadline.>> To be 
        eligible for assistance under this chapter, the applicant shall 
        demonstrate a reasonable expectation that the contracting 
        process for construction of the project can commence by not 
        later than 90 days after the date on which a Federal credit 
        instrument is obligated for the project under this chapter.

    ``(b) Selection Among Eligible Projects.--
            ``(1) Establishment.--The Secretary shall establish a 
        rolling application process under which projects that are 
        eligible to receive credit assistance under subsection (a) shall 
        receive

[[Page 126 STAT. 613]]

        credit assistance on terms acceptable to the Secretary, if 
        adequate funds are available to cover the subsidy costs 
        associated with the Federal credit instrument.
            ``(2) Adequate funding not available.--If the Secretary 
        fully obligates funding to eligible projects in a fiscal year, 
        and adequate funding is not available to fund a credit 
        instrument, a project sponsor of an eligible project may elect 
        to enter into a master credit agreement and wait until the 
        earlier of--
                    ``(A) the following fiscal year; and
                    ``(B) the fiscal year during which additional funds 
                are available to receive credit assistance.
            ``(3) Preliminary rating opinion letter.--The Secretary 
        shall require each project applicant to provide a preliminary 
        rating opinion letter from at least 1 rating agency--
                    ``(A) indicating that the senior obligations of the 
                project, which may be the Federal credit instrument, 
                have the potential to achieve an investment-grade 
                rating; and
                    ``(B) including a preliminary rating opinion on the 
                Federal credit instrument.

    ``(c) Federal Requirements.--
            ``(1) In general.-- <<NOTE: Applicability.>> In addition to 
        the requirements of this title for highway projects, the 
        requirements of chapter 53 of title 49 for transit projects, and 
        the requirements of section 5333(a) of title 49 for rail 
        projects, the following provisions of law shall apply to funds 
        made available under this chapter and projects assisted with 
        those funds:
                    ``(A) Title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.).
                    ``(B) The National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.).
                    ``(C) The Uniform Relocation Assistance and Real 
                Property Acquisition Policies Act of 1970 (42 U.S.C. 
                4601 et seq.).
            ``(2) NEPA.--No funding shall be obligated for a project 
        that has not received an environmental categorical exclusion, a 
        finding of no significant impact, or a record of decision under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).

    ``(d) <<NOTE: Deadlines.>> Application Processing Procedures.--
            ``(1) Notice of complete application.--Not later than 30 
        days after the date of receipt of an application under this 
        section, the Secretary shall provide to the applicant a written 
        notice to inform the applicant whether--
                    ``(A) the application is complete; or
                    ``(B) additional information or materials are needed 
                to complete the application.
            ``(2) Approval or denial of application.-- 
        <<NOTE: Notification.>> Not later than 60 days after the date of 
        issuance of the written notice under paragraph (1), the 
        Secretary shall provide to the applicant a written notice 
        informing the applicant whether the Secretary has approved or 
        disapproved the application.

    ``(e) Development Phase Activities.--Any credit instrument secured 
under this chapter may be used to finance up to 100 percent of the cost 
of development phase activities as described in section 601(a)(1)(A).

[[Page 126 STAT. 614]]

``Sec. 603. Secured loans

    ``(a) In General.--
            ``(1) Agreements.--Subject to paragraphs (2) and (3), the 
        Secretary may enter into agreements with 1 or more obligors to 
        make secured loans, the proceeds of which shall be used--
                    ``(A) to finance eligible project costs of any 
                project selected under section 602;
                    ``(B) to refinance interim construction financing of 
                eligible project costs of any project selected under 
                section 602;
                    ``(C) to refinance existing Federal credit 
                instruments for rural infrastructure projects; or
                    ``(D) to refinance long-term project obligations or 
                Federal credit instruments, if the refinancing provides 
                additional funding capacity for the completion, 
                enhancement, or expansion of any project that--
                          ``(i) is selected under section 602; or
                          ``(ii) otherwise meets the requirements of 
                      section 602.
            ``(2) Limitation on refinancing of interim construction 
        financing.-- <<NOTE: Time period.>> A loan under paragraph (1) 
        shall not refinance interim construction financing under 
        paragraph (1)(B) later than 1 year after the date of substantial 
        completion of the project.
            ``(3) Risk assessment.-- <<NOTE: Determination.>> Before 
        entering into an agreement under this subsection, the Secretary, 
        in consultation with the Director of the Office of Management 
        and Budget, shall determine an appropriate capital reserve 
        subsidy amount for each secured loan, taking into account each 
        rating letter provided by an agency under section 602(b)(3)(B).

    ``(b) Terms and Limitations.--
            ``(1) In general.--A secured loan under this section with 
        respect to a project shall be on such terms and conditions and 
        contain such covenants, representations, warranties, and 
        requirements (including requirements for audits) as the 
        Secretary determines to be appropriate.
            ``(2) Maximum amount.--The amount of a secured loan under 
        this section shall not exceed the lesser of 49 percent of the 
        reasonably anticipated eligible project costs or if the secured 
        loan does not receive an investment grade rating, the amount of 
        the senior project obligations.
            ``(3) Payment.--A secured loan under this section--
                    ``(A) shall--
                          ``(i) be payable, in whole or in part, from--
                                    ``(I) tolls;
                                    ``(II) user fees;
                                    ``(III) payments owing to the 
                                obligor under a public-private 
                                partnership; or
                                    ``(IV) other dedicated revenue 
                                sources that also secure the senior 
                                project obligations; and
                          ``(ii) include a rate covenant, coverage 
                      requirement, or similar security feature 
                      supporting the project obligations; and
                    ``(B) may have a lien on revenues described in 
                subparagraph (A), subject to any lien securing project 
                obligations.
            ``(4) Interest rate.--

[[Page 126 STAT. 615]]

                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the interest rate on a 
                secured loan under this section shall be not less than 
                the yield on United States Treasury securities of a 
                similar maturity to the maturity of the secured loan on 
                the date of execution of the loan agreement.
                    ``(B) Rural infrastructure projects.--
                          ``(i) In general.--The interest rate of a loan 
                      offered to a rural infrastructure project under 
                      this chapter shall be at \1/2\ of the Treasury 
                      Rate in effect on the date of execution of the 
                      loan agreement.
                          ``(ii) Application.--The rate described in 
                      clause (i) shall only apply to any portion of a 
                      loan the subsidy cost of which is funded by 
                      amounts set aside for rural infrastructure 
                      projects under section 608(a)(3)(A).
                    ``(C) Limited buydowns.--The interest rate of a 
                secured loan under this section may not be lowered by 
                more than the lower of--
                          ``(i) 1\1/2\ percentage points (150 basis 
                      points); or
                          ``(ii) the amount of the increase in the 
                      interest rate.
            ``(5) Maturity date.--The final maturity date of the secured 
        loan shall be the lesser of--
                    ``(A) 35 years after the date of substantial 
                completion of the project; and
                    ``(B) if the useful life of the capital asset being 
                financed is of a lesser period, the useful life of the 
                asset.
            ``(6) Nonsubordination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the secured loan shall not be 
                subordinated to the claims of any holder of project 
                obligations in the event of bankruptcy, insolvency, or 
                liquidation of the obligor.
                    ``(B) Preexisting indenture.--
                          ``(i) In general.-- <<NOTE: Waiver 
                      authority.>> The Secretary shall waive the 
                      requirement under subparagraph (A) for a public 
                      agency borrower that is financing ongoing capital 
                      programs and has outstanding senior bonds under a 
                      preexisting indenture, if--
                                    ``(I) the secured loan is rated in 
                                the A category or higher;
                                    ``(II) the secured loan is secured 
                                and payable from pledged revenues not 
                                affected by project performance, such as 
                                a tax-backed revenue pledge or a system-
                                backed pledge of project revenues; and
                                    ``(III) the TIFIA program share of 
                                eligible project costs is 33 percent or 
                                less.
                          ``(ii) Limitation.--If the Secretary waives 
                      the nonsubordination requirement under this 
                      subparagraph--
                                    ``(I) the maximum credit subsidy to 
                                be paid by the Federal Government shall 
                                be not more than 10 percent of the 
                                principal amount of the secured loan; 
                                and
                                    ``(II) the obligor shall be 
                                responsible for paying the remainder of 
                                the subsidy cost, if any.
            ``(7) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the Federal 
        Government of making a secured loan under this section.

[[Page 126 STAT. 616]]

            ``(8) Non-federal share.--The proceeds of a secured loan 
        under this chapter may be used for any non-Federal share of 
        project costs required under this title or chapter 53 of title 
        49, if the loan is repayable from non-Federal funds.
            ``(9) Maximum federal involvement.--The total Federal 
        assistance provided on a project receiving a loan under this 
        chapter shall not exceed 80 percent of the total project cost.

    ``(c) Repayment.--
            ``(1) Schedule.--The Secretary shall establish a repayment 
        schedule for each secured loan under this section based on--
                    ``(A) the projected cash flow from project revenues 
                and other repayment sources; and
                    ``(B) the useful life of the project.
            ``(2) Commencement.--Scheduled loan repayments of principal 
        or interest on a secured loan under this section shall commence 
        not later than 5 years after the date of substantial completion 
        of the project.
            ``(3) Deferred payments.--
                    ``(A) In general.--If, at any time after the date of 
                substantial completion of the project, the project is 
                unable to generate sufficient revenues to pay the 
                scheduled loan repayments of principal and interest on 
                the secured loan, the Secretary may, subject to 
                subparagraph (C), allow the obligor to add unpaid 
                principal and interest to the outstanding balance of the 
                secured loan.
                    ``(B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                          ``(i) continue to accrue interest in 
                      accordance with subsection (b)(4) until fully 
                      repaid; and
                          ``(ii) be scheduled to be amortized over the 
                      remaining term of the loan.
                    ``(C) Criteria.--
                          ``(i) In general.--Any payment deferral under 
                      subparagraph (A) shall be contingent on the 
                      project meeting criteria established by the 
                      Secretary.
                          ``(ii) Repayment standards.--The criteria 
                      established pursuant to clause (i) shall include 
                      standards for reasonable assurance of repayment.
            ``(4) Prepayment.--
                    ``(A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the project obligations and secured loan 
                and all deposit requirements under the terms of any 
                trust agreement, bond resolution, or similar agreement 
                securing project obligations may be applied annually to 
                prepay the secured loan without penalty.
                    ``(B) Use of proceeds of refinancing.--The secured 
                loan may be prepaid at any time without penalty from the 
                proceeds of refinancing from non-Federal funding 
                sources.

    ``(d) Sale of Secured Loans.--
            ``(1) In general.--Subject to paragraph (2), as soon as 
        practicable after substantial completion of a project and after 
        notifying the obligor, the Secretary may sell to another entity 
        or reoffer into the capital markets a secured loan for the 
        project if the Secretary determines that the sale or reoffering 
        can be made on favorable terms.

[[Page 126 STAT. 617]]

            ``(2) Consent of obligor.--In making a sale or reoffering 
        under paragraph (1), the Secretary may not change the original 
        terms and conditions of the secured loan without the written 
        consent of the obligor.

    ``(e) Loan Guarantees.--
            ``(1) In general.--The Secretary may provide a loan 
        guarantee to a lender in lieu of making a secured loan under 
        this section if the Secretary determines that the budgetary cost 
        of the loan guarantee is substantially the same as that of a 
        secured loan.
            ``(2) Terms.--The terms of a loan guarantee under paragraph 
        (1) shall be consistent with the terms required under this 
        section for a secured loan, except that the rate on the 
        guaranteed loan and any prepayment features shall be negotiated 
        between the obligor and the lender, with the consent of the 
        Secretary.
``Sec. 604. Lines of credit

    ``(a) In General.--
            ``(1) Agreements.--Subject to paragraphs (2) through (4), 
        the Secretary may enter into agreements to make available to 1 
        or more obligors lines of credit in the form of direct loans to 
        be made by the Secretary at future dates on the occurrence of 
        certain events for any project selected under section 602.
            ``(2) Use of proceeds.--The proceeds of a line of credit 
        made available under this section shall be available to pay debt 
        service on project obligations issued to finance eligible 
        project costs, extraordinary repair and replacement costs, 
        operation and maintenance expenses, and costs associated with 
        unexpected Federal or State environmental restrictions.
            ``(3) Risk assessment.-- <<NOTE: Determination.>> Before 
        entering into an agreement under this subsection, the Secretary, 
        in consultation with the Director of the Office of Management 
        and Budget and each rating agency providing a preliminary rating 
        opinion letter under section 602(b)(3), shall determine an 
        appropriate capital reserve subsidy amount for each line of 
        credit, taking into account the rating opinion letter.
            ``(4) Investment-grade rating requirement.--The funding of a 
        line of credit under this section shall be contingent on the 
        senior obligations of the project receiving an investment-grade 
        rating from 2 rating agencies.

    ``(b) Terms and Limitations.--
            ``(1) In general.--A line of credit under this section with 
        respect to a project shall be on such terms and conditions and 
        contain such covenants, representations, warranties, and 
        requirements (including requirements for audits) as the 
        Secretary determines to be appropriate.
            ``(2) Maximum amounts.--The total amount of a line of credit 
        under this section shall not exceed 33 percent of the reasonably 
        anticipated eligible project costs.
            ``(3) Draws.--Any draw on a line of credit under this 
        section shall--
                    ``(A) represent a direct loan; and
                    ``(B) be made only if net revenues from the project 
                (including capitalized interest, but not including 
                reasonably

[[Page 126 STAT. 618]]

                required financing reserves) are insufficient to pay the 
                costs specified in subsection (a)(2).
            ``(4) Interest rate.--Except as provided in subparagraphs 
        (B) and (C) of section 603(b)(4), the interest rate on a direct 
        loan resulting from a draw on the line of credit shall be not 
        less than the yield on 30-year United States Treasury 
        securities, as of the date of execution of the line of credit 
        agreement.
            ``(5) Security.--A line of credit issued under this 
        section--
                    ``(A) shall--
                          ``(i) be payable, in whole or in part, from--
                                    ``(I) tolls;
                                    ``(II) user fees;
                                    ``(III) payments owing to the 
                                obligor under a public-private 
                                partnership; or
                                    ``(IV) other dedicated revenue 
                                sources that also secure the senior 
                                project obligations; and
                          ``(ii) include a rate covenant, coverage 
                      requirement, or similar security feature 
                      supporting the project obligations; and
                    ``(B) may have a lien on revenues described in 
                subparagraph (A), subject to any lien securing project 
                obligations.
            ``(6) Period of availability.--The full amount of a line of 
        credit under this section, to the extent not drawn upon, shall 
        be available during the 10-year period beginning on the date of 
        substantial completion of the project.
            ``(7) Rights of third-party creditors.--
                    ``(A) Against federal government.--A third-party 
                creditor of the obligor shall not have any right against 
                the Federal Government with respect to any draw on a 
                line of credit under this section.
                    ``(B) Assignment.--An obligor may assign a line of 
                credit under this section to--
                          ``(i) 1 or more lenders; or
                          ``(ii) a trustee on the behalf of such a 
                      lender.
            ``(8) Nonsubordination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a direct loan under this section shall 
                not be subordinated to the claims of any holder of 
                project obligations in the event of bankruptcy, 
                insolvency, or liquidation of the obligor.
                    ``(B) Pre-existing indenture.--
                          ``(i) In general.-- <<NOTE: Waiver 
                      authority.>> The Secretary shall waive the 
                      requirement of subparagraph (A) for a public 
                      agency borrower that is financing ongoing capital 
                      programs and has outstanding senior bonds under a 
                      preexisting indenture, if--
                                    ``(I) the line of credit is rated in 
                                the A category or higher;
                                    ``(II) the TIFIA program loan 
                                resulting from a draw on the line of 
                                credit is payable from pledged revenues 
                                not affected by project performance, 
                                such as a tax-backed revenue pledge or a 
                                system-backed pledge of project 
                                revenues; and
                                    ``(III) the TIFIA program share of 
                                eligible project costs is 33 percent or 
                                less.
                          ``(ii) Limitation.--If the Secretary waives 
                      the nonsubordination requirement under this 
                      subparagraph--

[[Page 126 STAT. 619]]

                                    ``(I) the maximum credit subsidy to 
                                be paid by the Federal Government shall 
                                be not more than 10 percent of the 
                                principal amount of the secured loan; 
                                and
                                    ``(II) the obligor shall be 
                                responsible for paying the remainder of 
                                the subsidy cost.
            ``(9) Fees.--The Secretary may establish fees at a level 
        sufficient to cover all or a portion of the costs to the Federal 
        Government of providing a line of credit under this section.
            ``(10) Relationship to other credit instruments.--A project 
        that receives a line of credit under this section also shall not 
        receive a secured loan or loan guarantee under section 603 in an 
        amount that, combined with the amount of the line of credit, 
        exceeds 49 percent of eligible project costs.

    ``(c) Repayment.--
            ``(1) Terms and conditions.--The Secretary shall establish 
        repayment terms and conditions for each direct loan under this 
        section based on--
                    ``(A) the projected cash flow from project revenues 
                and other repayment sources; and
                    ``(B) the useful life of the asset being financed.
            ``(2) Timing.--All repayments of principal or interest on a 
        direct loan under this section shall be scheduled--
                    ``(A) to commence not later than 5 years after the 
                end of the period of availability specified in 
                subsection (b)(6); and
                    ``(B) to conclude, with full repayment of principal 
                and interest, by the date that is 25 years after the end 
                of the period of availability specified in subsection 
                (b)(6).
``Sec. 605. Program administration

    ``(a) Requirement.--The Secretary shall establish a uniform system 
to service the Federal credit instruments made available under this 
chapter.
    ``(b) Fees.--The Secretary may collect and spend fees, contingent on 
authority being provided in appropriations Acts, at a level that is 
sufficient to cover--
            ``(1) the costs of services of expert firms retained 
        pursuant to subsection (d); and
            ``(2) 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.--A servicer appointed under paragraph (1) 
        shall act as the agent for the Secretary.
            ``(3) Fee.--A servicer appointed under paragraph (1) 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.
    ``(e) Expedited Processing.-- <<NOTE: Procedures.>> The Secretary 
shall implement procedures and measures to economize the time and cost 
involved in obtaining approval and the issuance of credit assistance 
under this chapter.

[[Page 126 STAT. 620]]

``Sec. 606. State and local permits

    ``The provision of credit assistance under this chapter with respect 
to a project shall not--
            ``(1) relieve any recipient of the assistance of any 
        obligation to obtain any required State or local permit or 
        approval with respect to the project;
            ``(2) limit the right of any unit of State or local 
        government to approve or regulate any rate of return on private 
        equity invested in the project; or
            ``(3) otherwise supersede any State or local law (including 
        any regulation) applicable to the construction or operation of 
        the project.
``Sec. 607. Regulations

    ``The Secretary may promulgate such regulations as the Secretary 
determines to be appropriate to carry out this chapter.
``Sec. 608. Funding

    ``(a) Funding.--
            ``(1) Spending and borrowing authority.--Spending and 
        borrowing authority for a fiscal year to enter into Federal 
        credit instruments shall be promptly apportioned to the 
        Secretary on a fiscal-year basis.
            ``(2) Reestimates.--If the subsidy cost of a Federal credit 
        instrument is reestimated, the cost increase or decrease of the 
        reestimate shall be borne by, or benefit, the general fund of 
        the Treasury, consistent with section 504(f) the Congressional 
        Budget Act of 1974 (2 U.S.C. 661c(f)).
            ``(3) Rural set-aside.--
                    ``(A) In general.--Of the total amount of funds made 
                available to carry out this chapter for each fiscal 
                year, not more than 10 percent shall be set aside for 
                rural infrastructure projects.
                    ``(B) Reobligation.--Any amounts set aside under 
                subparagraph (A) that remain unobligated by June 1 of 
                the fiscal year for which the amounts were set aside 
                shall be available for obligation by the Secretary on 
                projects other than rural infrastructure projects.
            ``(4) Redistribution of authorized funding.--
                    ``(A) In general.-- <<NOTE: Effective 
                date.>> Beginning in fiscal year 2014, on April 1 of 
                each fiscal year, if the cumulative unobligated and 
                uncommitted balance of funding available exceeds 75 
                percent of the amount made available to carry out this 
                chapter for that fiscal year, the Secretary shall 
                distribute to the States the amount of funds and 
                associated obligation authority in excess of that 
                amount.
                    ``(B) Distribution.--The amounts and obligation 
                authority distributed under this paragraph shall be 
                distributed, in the same manner as obligation authority 
                is distributed to the States for the fiscal year, based 
                on the proportion that--
                          ``(i) the relative share of each State of 
                      obligation authority for the fiscal year; bears to
                          ``(ii) the total amount of obligation 
                      authority distributed to all States for the fiscal 
                      year.

[[Page 126 STAT. 621]]

                    ``(C) Purpose.--Funds distributed under subparagraph 
                (B) shall be available for any purpose described in 
                section 133(b).
            ``(5) Availability.--Amounts made available to carry out 
        this chapter shall remain available until expended.
            ``(6) Administrative costs.--Of the amounts made available 
        to carry out this chapter, the Secretary may use not more than 
        0.50 percent for each fiscal year for the administration of this 
        chapter.

    ``(b) Contract Authority.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, execution of a term sheet by the Secretary of a Federal 
        credit instrument that uses amounts made available under this 
        chapter shall impose on the United States a contractual 
        obligation to fund the Federal credit investment.
            ``(2) Availability.--Amounts made available to carry out 
        this chapter for a fiscal year shall be available for obligation 
        on October 1 of the fiscal year.
``Sec. 609. Reports to Congress

    ``(a) In General.-- <<NOTE: Effective date.>> On June 1, 2012, and 
every 2 years thereafter, the Secretary shall submit to Congress a 
report summarizing the financial performance of the projects that are 
receiving, or have received, assistance under this chapter (other than 
section 610), including a recommendation as to whether the objectives of 
this chapter (other than section 610) are best served by--
            ``(1) continuing the program under the authority of the 
        Secretary;
            ``(2) establishing a Federal corporation or federally 
        sponsored enterprise to administer the program; or
            ``(3) phasing out the program and relying on the capital 
        markets to fund the types of infrastructure investments assisted 
        by this chapter (other than section 610) without Federal 
        participation.

    ``(b) Application Process Report.--
            ``(1) In general.-- <<NOTE: List.>> Not later than December 
        1, 2012, and annually thereafter, 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 that includes a list of all of the 
        letters of interest and applications received from project 
        sponsors for assistance under this chapter (other than section 
        610) during the preceding fiscal year.
            ``(2) Inclusions.--
                    ``(A) In general.--Each report under paragraph (1) 
                shall include, at a minimum, a description of, with 
                respect to each letter of interest and application 
                included in the report--
                          ``(i) the date on which the letter of interest 
                      or application was received;
                          ``(ii) the date on which a notification was 
                      provided to the project sponsor regarding whether 
                      the application was complete or incomplete;
                          ``(iii) the date on which a revised and 
                      completed application was submitted (if 
                      applicable);

[[Page 126 STAT. 622]]

                          ``(iv) the date on which a notification was 
                      provided to the project sponsor regarding whether 
                      the project was approved or disapproved; and
                          ``(v) if the project was not approved, the 
                      reason for the disapproval.
                    ``(B) Correspondence.--Each report under paragraph 
                (1) shall include copies of any correspondence provided 
                to the project sponsor in accordance with section 
                602(d).''.

DIVISION B-- <<NOTE: Federal Public Transportation Act of 2012.>> PUBLIC 
TRANSPORTATION
SEC. 20001. <<NOTE: 49 USC 5101 note.>> SHORT TITLE.

    This division may be cited as the ``Federal Public Transportation 
Act of 2012''.
SEC. 20002. REPEALS.

    (a) Chapter 53.--Chapter 53 of title 49, United States Code, is 
amended by striking sections 5308, 5316, 5317, 5320, and 5328.
    (b) Transportation Equity Act for the 21st Century.--Section 3038 of 
the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note) 
is repealed.
    (c) SAFETEA-LU.--The following provisions are repealed:
            (1) Section 3009(i) of SAFETEA-LU (Public Law 109-59; 119 
        Stat. 1572).
            (2) Section 3011(c) of SAFETEA-LU (49 U.S.C. 5309 note).
            (3) Section 3012(b) of SAFETEA-LU (49 U.S.C. 5310 note).
            (4) Section 3045 of SAFETEA-LU (49 U.S.C. 5308 note).
            (5) Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note).
SEC. 20003. POLICIES AND PURPOSES.

    Section 5301 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5301. Policies and purposes

    ``(a) Declaration of Policy.--It is in the interest of the United 
States, including the economic interest of the United States, to foster 
the development and revitalization of public transportation systems with 
the cooperation of both public transportation companies and private 
companies engaged in public transportation.
    ``(b) General Purposes.--The purposes of this chapter are to--
            ``(1) provide funding to support public transportation;
            ``(2) improve the development and delivery of capital 
        projects;
            ``(3) establish standards for the state of good repair of 
        public transportation infrastructure and vehicles;
            ``(4) promote continuing, cooperative, and comprehensive 
        planning that improves the performance of the transportation 
        network;
            ``(5) establish a technical assistance program to assist 
        recipients under this chapter to more effectively and 
        efficiently provide public transportation service;
            ``(6) continue Federal support for public transportation 
        providers to deliver high quality service to all users, 
        including individuals with disabilities, seniors, and 
        individuals who depend on public transportation;

[[Page 126 STAT. 623]]

            ``(7) support research, development, demonstration, and 
        deployment projects dedicated to assisting in the delivery of 
        efficient and effective public transportation service; and
            ``(8) promote the development of the public transportation 
        workforce.''.
SEC. 20004. DEFINITIONS.

    Section 5302 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5302. Definitions

    ``Except as otherwise specifically provided, in this chapter the 
following definitions apply:
            ``(1) Associated transit improvement.--The term `associated 
        transit improvement' means, with respect to any project or an 
        area to be served by a project, projects that are designed to 
        enhance public transportation service or use and that are 
        physically or functionally related to transit facilities. 
        Eligible projects are--
                    ``(A) historic preservation, rehabilitation, and 
                operation of historic public transportation buildings, 
                structures, and facilities (including historic bus and 
                railroad facilities) intended for use in public 
                transportation service;
                    ``(B) bus shelters;
                    ``(C) landscaping and streetscaping, including 
                benches, trash receptacles, and street lights;
                    ``(D) pedestrian access and walkways;
                    ``(E) bicycle access, including bicycle storage 
                facilities and installing equipment for transporting 
                bicycles on public transportation vehicles;
                    ``(F) signage; or
                    ``(G) enhanced access for persons with disabilities 
                to public transportation.
            ``(2) Bus rapid transit system.--The term `bus rapid transit 
        system' means a bus transit system--
                    ``(A) in which the majority of each line operates in 
                a separated right-of-way dedicated for public 
                transportation use during peak periods; and
                    ``(B) that includes features that emulate the 
                services provided by rail fixed guideway public 
                transportation systems, including--
                          ``(i) defined stations;
                          ``(ii) traffic signal priority for public 
                      transportation vehicles;
                          ``(iii) short headway bidirectional services 
                      for a substantial part of weekdays and weekend 
                      days; and
                          ``(iv) any other features the Secretary may 
                      determine are necessary to produce high-quality 
                      public transportation services that emulate the 
                      services provided by rail fixed guideway public 
                      transportation systems.
            ``(3) Capital project.--The term `capital project' means a 
        project for--
                    ``(A) acquiring, constructing, supervising, or 
                inspecting equipment or a facility for use in public 
                transportation, expenses incidental to the acquisition 
                or construction

[[Page 126 STAT. 624]]

                (including designing, engineering, location surveying, 
                mapping, and acquiring rights-of-way), payments for the 
                capital portions of rail trackage rights agreements, 
                transit-related intelligent transportation systems, 
                relocation assistance, acquiring replacement housing 
                sites, and acquiring, constructing, relocating, and 
                rehabilitating replacement housing;
                    ``(B) rehabilitating a bus;
                    ``(C) remanufacturing a bus;
                    ``(D) overhauling rail rolling stock;
                    ``(E) preventive maintenance;
                    ``(F) leasing equipment or a facility for use in 
                public transportation, subject to regulations that the 
                Secretary prescribes limiting the leasing arrangements 
                to those that are more cost-effective than purchase or 
                construction;
                    ``(G) a joint development improvement that--
                          ``(i) enhances economic development or 
                      incorporates private investment, such as 
                      commercial and residential development;
                          ``(ii)(I) enhances the effectiveness of public 
                      transportation and is related physically or 
                      functionally to public transportation; or
                          ``(II) establishes new or enhanced 
                      coordination between public transportation and 
                      other transportation;
                          ``(iii) provides a fair share of revenue that 
                      will be used for public transportation;
                          ``(iv) provides that a person making an 
                      agreement to occupy space in a facility 
                      constructed under this paragraph shall pay a fair 
                      share of the costs of the facility through rental 
                      payments and other means;
                          ``(v) may include--
                                    ``(I) property acquisition;
                                    ``(II) demolition of existing 
                                structures;
                                    ``(III) site preparation;
                                    ``(IV) utilities;
                                    ``(V) building foundations;
                                    ``(VI) walkways;
                                    ``(VII) pedestrian and bicycle 
                                access to a public transportation 
                                facility;
                                    ``(VIII) construction, renovation, 
                                and improvement of intercity bus and 
                                intercity rail stations and terminals;
                                    ``(IX) renovation and improvement of 
                                historic transportation facilities;
                                    ``(X) open space;
                                    ``(XI) safety and security equipment 
                                and facilities (including lighting, 
                                surveillance, and related intelligent 
                                transportation system applications);
                                    ``(XII) facilities that incorporate 
                                community services such as daycare or 
                                health care;
                                    ``(XIII) a capital project for, and 
                                improving, equipment or a facility for 
                                an intermodal transfer facility or 
                                transportation mall; and
                                    ``(XIV) construction of space for 
                                commercial uses; and

[[Page 126 STAT. 625]]

                          ``(vi) does not include outfitting of 
                      commercial space (other than an intercity bus or 
                      rail station or terminal) or a part of a public 
                      facility not related to public transportation;
                    ``(H) the introduction of new technology, through 
                innovative and improved products, into public 
                transportation;
                    ``(I) the provision of nonfixed route paratransit 
                transportation services in accordance with section 223 
                of the Americans with Disabilities Act of 1990 (42 
                U.S.C. 12143), but only for grant recipients that are in 
                compliance with applicable requirements of that Act, 
                including both fixed route and demand responsive 
                service, and only for amounts not to exceed 10 percent 
                of such recipient's annual formula apportionment under 
                sections 5307 and 5311;
                    ``(J) establishing a debt service reserve, made up 
                of deposits with a bondholder's trustee, to ensure the 
                timely payment of principal and interest on bonds issued 
                by a grant recipient to finance an eligible project 
                under this chapter;
                    ``(K) mobility management--
                          ``(i) consisting of short-range planning and 
                      management activities and projects for improving 
                      coordination among public transportation and other 
                      transportation service providers carried out by a 
                      recipient or subrecipient through an agreement 
                      entered into with a person, including a 
                      governmental entity, under this chapter (other 
                      than section 5309); but
                          ``(ii) excluding operating public 
                      transportation services; or
                    ``(L) associated capital maintenance, including--
                          ``(i) equipment, tires, tubes, and material, 
                      each costing at least .5 percent of the current 
                      fair market value of rolling stock comparable to 
                      the rolling stock for which the equipment, tires, 
                      tubes, and material are to be used; and
                          ``(ii) reconstruction of equipment and 
                      material, each of which after reconstruction will 
                      have a fair market value of at least .5 percent of 
                      the current fair market value of rolling stock 
                      comparable to the rolling stock for which the 
                      equipment and material will be used.
            ``(4) Designated recipient.--The term `designated recipient' 
        means--
                    ``(A) an entity designated, in accordance with the 
                planning process under sections 5303 and 5304, by the 
                Governor of a State, responsible local officials, and 
                publicly owned operators of public transportation, to 
                receive and apportion amounts under section 5336 to 
                urbanized areas of 200,000 or more in population; or
                    ``(B) a State or regional authority, if the 
                authority is responsible under the laws of a State for a 
                capital project and for financing and directly providing 
                public transportation.
            ``(5) Disability.--The term `disability' has the same 
        meaning as in section 3(1) of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12102).

[[Page 126 STAT. 626]]

            ``(6) Emergency regulation.--The term `emergency regulation' 
        means a regulation--
                    ``(A) that is effective temporarily before the 
                expiration of the otherwise specified periods of time 
                for public notice and comment under section 5334(c); and
                    ``(B) prescribed by the Secretary as the result of a 
                finding that a delay in the effective date of the 
                regulation--
                          ``(i) would injure seriously an important 
                      public interest;
                          ``(ii) would frustrate substantially 
                      legislative policy and intent; or
                          ``(iii) would damage seriously a person or 
                      class without serving an important public 
                      interest.
            ``(7) Fixed guideway.--The term `fixed guideway' means a 
        public transportation facility--
                    ``(A) using and occupying a separate right-of-way 
                for the exclusive use of public transportation;
                    ``(B) using rail;
                    ``(C) using a fixed catenary system;
                    ``(D) for a passenger ferry system; or
                    ``(E) for a bus rapid transit system.
            ``(8) Governor.--The term `Governor'--
                    ``(A) means the Governor of a State, the mayor of 
                the District of Columbia, and the chief executive 
                officer of a territory of the United States; and
                    ``(B) includes the designee of the Governor.
            ``(9) Job access and reverse commute project.--
                    ``(A) In general.--The term `job access and reverse 
                commute project' means a transportation project to 
                finance planning, capital, and operating costs that 
                support the development and maintenance of 
                transportation services designed to transport welfare 
                recipients and eligible low-income individuals to and 
                from jobs and activities related to their employment, 
                including transportation projects that facilitate the 
                provision of public transportation services from 
                urbanized areas and rural areas to suburban employment 
                locations.
                    ``(B) Definitions.--In this paragraph:
                          ``(i) Eligible low-income individual.--The 
                      term `eligible low-income individual' means an 
                      individual whose family income is at or below 150 
                      percent of the poverty line (as that term is 
                      defined in section 673(2) of the Community Service 
                      Block Grant Act (42 U.S.C. 9902(2)), including any 
                      revision required by that section) for a family of 
                      the size involved.
                          ``(ii) Welfare recipient.--The term `welfare 
                      recipient' means an individual who has received 
                      assistance under a State or tribal program funded 
                      under part A of title IV of the Social Security 
                      Act (42 U.S.C. 601 et seq.) at any time during the 
                      3-year period before the date on which the 
                      applicant applies for a grant under section 5307 
                      or 5311.
            ``(10) Local governmental authority.--The term `local 
        governmental authority' includes--
                    ``(A) a political subdivision of a State;
                    ``(B) an authority of at least 1 State or political 
                subdivision of a State;

[[Page 126 STAT. 627]]

                    ``(C) an Indian tribe; and
                    ``(D) a public corporation, board, or commission 
                established under the laws of a State.
            ``(11) Low-income individual.--The term `low-income 
        individual' means an individual whose family income is at or 
        below 150 percent of the poverty line, as that term is defined 
        in section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)), including any revision required by that 
        section, for a family of the size involved.
            ``(12) Net project cost.--The term `net project cost' means 
        the part of a project that reasonably cannot be financed from 
        revenues.
            ``(13) New bus model.--The term `new bus model' means a bus 
        model (including a model using alternative fuel)--
                    ``(A) that has not been used in public 
                transportation in the United States before the date of 
                production of the model; or
                    ``(B) used in public transportation in the United 
                States, but being produced with a major change in 
                configuration or components.
            ``(14) Public transportation.--The term `public 
        transportation'--
                    ``(A) means regular, continuing shared-ride surface 
                transportation services that are open to the general 
                public or open to a segment of the general public 
                defined by age, disability, or low income; and
                    ``(B) does not include--
                          ``(i) intercity passenger rail transportation 
                      provided by the entity described in chapter 243 
                      (or a successor to such entity);
                          ``(ii) intercity bus service;
                          ``(iii) charter bus service;
                          ``(iv) school bus service;
                          ``(v) sightseeing service;
                          ``(vi) courtesy shuttle service for patrons of 
                      one or more specific establishments; or
                          ``(vii) intra-terminal or intra-facility 
                      shuttle services.
            ``(15) Regulation.--The term `regulation' means any part of 
        a statement of general or particular applicability of the 
        Secretary designed to carry out, interpret, or prescribe law or 
        policy in carrying out this chapter.
            ``(16) Rural area.--The term `rural area' means an area 
        encompassing a population of less than 50,000 people that has 
        not been designated in the most recent decennial census as an 
        `urbanized area' by the Secretary of Commerce.
            ``(17) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(18) Senior.--The term `senior' means an individual who is 
        65 years of age or older.
            ``(19) State.--The term `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.
            ``(20) State of good repair.--The term `state of good 
        repair' has the meaning given that term by the Secretary, by 
        rule, under section 5326(b).

[[Page 126 STAT. 628]]

            ``(21) Transit.--The term `transit' means public 
        transportation.
            ``(22) Urban area.--The term `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.
            ``(23) Urbanized area.--The term `urbanized area' means an 
        area encompassing a population of not less than 50,000 people 
        that has been defined and designated in the most recent 
        decennial census as an `urbanized area' by the Secretary of 
        Commerce.''.
SEC. 20005. METROPOLITAN TRANSPORTATION PLANNING.

    (a) Amendment.--Section 5303 of title 49, United States Code, is 
amended to read as follows:
``Sec. 5303. Metropolitan transportation planning

    ``(a) Policy.--It is in the national interest--
            ``(1) to encourage and promote the safe and efficient 
        management, operation, and development of surface transportation 
        systems that will serve the mobility needs of people and freight 
        and foster economic growth and development within and between 
        States and urbanized areas, while minimizing transportation-
        related fuel consumption and air pollution through metropolitan 
        and statewide transportation planning processes identified in 
        this chapter; and
            ``(2) to encourage the continued improvement and evolution 
        of the metropolitan and statewide transportation planning 
        processes by metropolitan planning organizations, State 
        departments of transportation, and public transit operators as 
        guided by the planning factors identified in subsection (h) and 
        section 5304(d).

    ``(b) Definitions.--In this section and section 5304, the following 
definitions apply:
            ``(1) Metropolitan planning area.--The term `metropolitan 
        planning area' means the geographic area determined by agreement 
        between the metropolitan planning organization for the area and 
        the Governor under subsection (e).
            ``(2) Metropolitan planning organization.--The term 
        `metropolitan planning organization' means the policy board of 
        an organization established as a result of the designation 
        process under subsection (d).
            ``(3) Nonmetropolitan area.--The term `nonmetropolitan area' 
        means a geographic area outside designated metropolitan planning 
        areas.
            ``(4) Nonmetropolitan local official.--The term 
        `nonmetropolitan local official' means elected and appointed 
        officials of general purpose local government in a 
        nonmetropolitan area with responsibility for transportation.
            ``(5) Regional transportation planning organization.--The 
        term `regional transportation planning organization' means a 
        policy board of an organization established as the result of a 
        designation under section 5304(l).
            ``(6) TIP.--The term `TIP' means a transportation 
        improvement program developed by a metropolitan planning 
        organization under subsection (j).

[[Page 126 STAT. 629]]

            ``(7) Urbanized area.--The term `urbanized area' means a 
        geographic area with a population of 50,000 or more, as 
        determined by the Bureau of the Census.

    ``(c) General Requirements.--
            ``(1) Development of long-range plans and tips.--To 
        accomplish the objectives in subsection (a), metropolitan 
        planning organizations designated under subsection (d), in 
        cooperation with the State and public transportation operators, 
        shall develop long-range transportation plans and transportation 
        improvement programs through a performance-driven, outcome-based 
        approach to planning for metropolitan areas of the State.
            ``(2) Contents.--The plans and TIPs for each metropolitan 
        area shall provide for the development and integrated management 
        and operation of transportation systems and facilities 
        (including accessible pedestrian walkways and bicycle 
        transportation facilities) that will function as an intermodal 
        transportation system for the metropolitan planning area and as 
        an integral part of an intermodal transportation system for the 
        State and the United States.
            ``(3) Process of development.--The process for developing 
        the plans and TIPs shall provide for consideration of all modes 
        of transportation and shall be continuing, cooperative, and 
        comprehensive to the degree appropriate, based on the complexity 
        of the transportation problems to be addressed.

    ``(d) Designation of Metropolitan Planning Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a metropolitan planning 
        organization shall be designated for each urbanized area with a 
        population of more than 50,000 individuals--
                    ``(A) by agreement between the Governor and units of 
                general purpose local government that together represent 
                at least 75 percent of the affected population 
                (including the largest incorporated city (based on 
                population) as determined by the Bureau of the Census); 
                or
                    ``(B) in accordance with procedures established by 
                applicable State or local law.
            ``(2) Structure.-- <<NOTE: Deadline.>> Not later than 2 
        years after the date of enactment of the Federal Public 
        Transportation Act of 2012, each metropolitan planning 
        organization that serves an area designated as a transportation 
        management area shall consist of--
                    ``(A) local elected officials;
                    ``(B) officials of public agencies that administer 
                or operate major modes of transportation in the 
                metropolitan area, including representation by providers 
                of public transportation; and
                    ``(C) appropriate State officials.
            ``(3) Limitation on statutory construction.--Nothing in this 
        subsection shall be construed to interfere with the authority, 
        under any State law in effect on December 18, 1991, of a public 
        agency with multimodal transportation responsibilities--
                    ``(A) to develop the plans and TIPs for adoption by 
                a metropolitan planning organization; and

[[Page 126 STAT. 630]]

                    ``(B) to develop long-range capital plans, 
                coordinate transit services and projects, and carry out 
                other activities pursuant to State law.
            ``(4) Continuing designation.--A designation of a 
        metropolitan planning organization under this subsection or any 
        other provision of law shall remain in effect until the 
        metropolitan planning organization is redesignated under 
        paragraph (5).
            ``(5) Redesignation procedures.--
                    ``(A) In general.--A metropolitan planning 
                organization may be redesignated by agreement between 
                the Governor and units of general purpose local 
                government that together represent at least 75 percent 
                of the existing planning area population (including the 
                largest incorporated city (based on population) as 
                determined by the Bureau of the Census) as appropriate 
                to carry out this section.
                    ``(B) Restructuring.--A metropolitan planning 
                organization may be restructured to meet the 
                requirements of paragraph (2) without undertaking a 
                redesignation.
            ``(6) Designation of more than 1 metropolitan planning 
        organization.--More than 1 metropolitan planning organization 
        may be designated within an existing metropolitan planning area 
        only if the Governor and the existing metropolitan planning 
        organization determine that the size and complexity of the 
        existing metropolitan planning area make designation of more 
        than 1 metropolitan planning organization for the area 
        appropriate.

    ``(e) Metropolitan Planning Area Boundaries.--
            ``(1) In general.--For the purposes of this section, the 
        boundaries of a metropolitan planning area shall be determined 
        by agreement between the metropolitan planning organization and 
        the Governor.
            ``(2) <<NOTE: Time period.>> Included area.--Each 
        metropolitan planning area--
                    ``(A) shall encompass at least the existing 
                urbanized area and the contiguous area expected to 
                become urbanized within a 20-year forecast period for 
                the transportation plan; and
                    ``(B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of the 
                Census.
            ``(3) Identification of new urbanized areas within existing 
        planning area boundaries.--The designation by the Bureau of the 
        Census of new urbanized areas within an existing metropolitan 
        planning area shall not require the redesignation of the 
        existing metropolitan planning organization.
            ``(4) Existing metropolitan planning areas in 
        nonattainment.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                except as provided in subparagraph (B), in the case of 
                an urbanized area designated as a nonattainment area for 
                ozone or carbon monoxide under the Clean Air Act (42 
                U.S.C. 7401 et seq.) as of the date of enactment of the 
                SAFETEA-LU, the boundaries of the metropolitan planning 
                area in existence as of such date of enactment shall be 
                retained.
                    ``(B) Exception.--The boundaries described in 
                subparagraph (A) may be adjusted by agreement of the

[[Page 126 STAT. 631]]

                Governor and affected metropolitan planning 
                organizations in the manner described in subsection 
                (d)(5).
            ``(5) New metropolitan planning areas in nonattainment.--In 
        the case of an urbanized area designated after the date of 
        enactment of the SAFETEA-LU, as a nonattainment area for ozone 
        or carbon monoxide, the boundaries of the metropolitan planning 
        area--
                    ``(A) shall be established in the manner described 
                in subsection (d)(1);
                    ``(B) shall encompass the areas described in 
                paragraph (2)(A);
                    ``(C) may encompass the areas described in paragraph 
                (2)(B); and
                    ``(D) may address any nonattainment area identified 
                under the Clean Air Act (42 U.S.C. 7401 et seq.) for 
                ozone or carbon monoxide.

    ``(f) Coordination in Multistate Areas.--
            ``(1) In general.--The Secretary shall encourage each 
        Governor with responsibility for a portion of a multistate 
        metropolitan area and the appropriate metropolitan planning 
        organizations to provide coordinated transportation planning for 
        the entire metropolitan area.
            ``(2) Interstate compacts.--The consent of Congress is 
        granted to any 2 or more States--
                    ``(A) to enter into agreements or compacts, not in 
                conflict with any law of the United States, for 
                cooperative efforts and mutual assistance in support of 
                activities authorized under this section as the 
                activities pertain to interstate areas and localities 
                within the States; and
                    ``(B) to establish such agencies, joint or 
                otherwise, as the States may determine desirable for 
                making the agreements and compacts effective.
            ``(3) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(g) MPO Consultation in Plan and TIP Coordination.--
            ``(1) Nonattainment areas.--If more than 1 metropolitan 
        planning organization has authority within a metropolitan area 
        or an area which is designated as a nonattainment area for ozone 
        or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et 
        seq.), each metropolitan planning organization shall consult 
        with the other metropolitan planning organizations designated 
        for such area and the State in the coordination of plans and 
        TIPs required by this section.
            ``(2) Transportation improvements located in multiple 
        mpos.--If a transportation improvement, funded under this 
        chapter or title 23, is located within the boundaries of more 
        than 1 metropolitan planning area, the metropolitan planning 
        organizations shall coordinate plans and TIPs regarding the 
        transportation improvement.
            ``(3) Relationship with other planning officials.--
                    ``(A) In general.--The Secretary shall encourage 
                each metropolitan planning organization to consult with 
                officials responsible for other types of planning 
                activities that are affected by transportation in the 
                area (including State and

[[Page 126 STAT. 632]]

                local planned growth, economic development, 
                environmental protection, airport operations, and 
                freight movements) or to coordinate its planning 
                process, to the maximum extent practicable, with such 
                planning activities.
                    ``(B) Requirements.--Under the metropolitan planning 
                process, transportation plans and TIPs shall be 
                developed with due consideration of other related 
                planning activities within the metropolitan area, and 
                the process shall provide for the design and delivery of 
                transportation services within the metropolitan area 
                that are provided by--
                          ``(i) recipients of assistance under this 
                      chapter;
                          ``(ii) governmental agencies and nonprofit 
                      organizations (including representatives of the 
                      agencies and organizations) that receive Federal 
                      assistance from a source other than the Department 
                      of Transportation to provide nonemergency 
                      transportation services; and
                          ``(iii) recipients of assistance under section 
                      204 of title 23.

    ``(h) Scope of Planning Process.--
            ``(1) In general.--The metropolitan planning process for a 
        metropolitan planning area under this section shall provide for 
        consideration of projects and strategies that will--
                    ``(A) support the economic vitality of the 
                metropolitan area, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and for freight;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes, for 
                people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The metropolitan transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of title 23 and the general purposes 
                described in section 5301.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each metropolitan 
                                planning organization shall establish 
                                performance targets that address the 
                                performance measures described

[[Page 126 STAT. 633]]

                                in section 150(c) of title 23, where 
                                applicable, to use in tracking progress 
                                towards attainment of critical outcomes 
                                for the region of the metropolitan 
                                planning organization.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a metropolitan 
                                planning organization shall be 
                                coordinated with the relevant State to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--Selection of performance targets by a 
                      metropolitan planning organization shall be 
                      coordinated, to the maximum extent practicable, 
                      with providers of public transportation to ensure 
                      consistency with sections 5326(c) and 5329(d).
                    ``(C) Timing.--Each metropolitan planning 
                organization shall establish the performance targets 
                under subparagraph (B) not later than 180 days after the 
                date on which the relevant State or provider of public 
                transportation establishes the performance targets.
                    ``(D) Integration of other performance-based 
                plans.--A metropolitan planning organization shall 
                integrate in the metropolitan transportation planning 
                process, directly or by reference, the goals, 
                objectives, performance measures, and targets described 
                in other State transportation plans and transportation 
                processes, as well as any plans developed by recipients 
                of assistance under this chapter, required as part of a 
                performance-based program.
            ``(3) Failure to consider factors.--The failure to consider 
        any factor specified in paragraphs (1) and (2) shall not be 
        reviewable by any court under this chapter, title 23, subchapter 
        II of chapter 5 of title 5, or chapter 7 of title 5 in any 
        matter affecting a transportation plan, a TIP, a project or 
        strategy, or the certification of a planning process.

    ``(i) Development of Transportation Plan.--
            ``(1) Requirements.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall prepare and update a transportation 
                plan for its metropolitan planning area in accordance 
                with the requirements of this subsection.
                    ``(B) Frequency.--
                          ``(i) In general.--The metropolitan planning 
                      organization shall prepare and update such plan 
                      every 4 years (or more frequently, if the 
                      metropolitan planning organization elects to 
                      update more frequently) in the case of each of the 
                      following:
                                    ``(I) Any area designated as 
                                nonattainment, as defined in section 
                                107(d) of the Clean Air Act (42 U.S.C. 
                                7407(d)).
                                    ``(II) Any area that was 
                                nonattainment and subsequently 
                                designated to attainment in accordance 
                                with section 107(d)(3) of that Act (42 
                                U.S.C. 7407(d)(3)) and that is subject 
                                to a maintenance plan under section 175A 
                                of that Act (42 U.S.C. 7505a).

[[Page 126 STAT. 634]]

                          ``(ii) Other areas.--In the case of any other 
                      area required to have a transportation plan in 
                      accordance with the requirements of this 
                      subsection, the metropolitan planning organization 
                      shall prepare and update such plan every 5 years 
                      unless the metropolitan planning organization 
                      elects to update more frequently.
            ``(2) Transportation plan.--A transportation plan under this 
        section shall be in a form that the Secretary determines to be 
        appropriate and shall contain, at a minimum, the following:
                    ``(A) Identification of transportation facilities.--
                          ``(i) In general.--An identification of 
                      transportation facilities (including major 
                      roadways, transit, multimodal and intermodal 
                      facilities, nonmotorized transportation 
                      facilities, and intermodal connectors) that should 
                      function as an integrated metropolitan 
                      transportation system, giving emphasis to those 
                      facilities that serve important national and 
                      regional transportation functions.
                          ``(ii) <<NOTE: Time period.>> Factors.--In 
                      formulating the transportation plan, the 
                      metropolitan planning organization shall consider 
                      factors described in subsection (h) as the factors 
                      relate to a 20-year forecast period.
                    ``(B) Performance measures and targets.--A 
                description of the performance measures and performance 
                targets used in assessing the performance of the 
                transportation system in accordance with subsection 
                (h)(2).
                    ``(C) System performance report.--A system 
                performance report and subsequent updates evaluating the 
                condition and performance of the transportation system 
                with respect to the performance targets described in 
                subsection (h)(2), including--
                          ``(i) progress achieved by the metropolitan 
                      planning organization in meeting the performance 
                      targets in comparison with system performance 
                      recorded in previous reports; and
                          ``(ii) for metropolitan planning organizations 
                      that voluntarily elect to develop multiple 
                      scenarios, an analysis of how the preferred 
                      scenario has improved the conditions and 
                      performance of the transportation system and how 
                      changes in local policies and investments have 
                      impacted the costs necessary to achieve the 
                      identified performance targets.
                    ``(D) Mitigation activities.--
                          ``(i) In general.--A long-range transportation 
                      plan shall include a discussion of types of 
                      potential environmental mitigation activities and 
                      potential areas to carry out these activities, 
                      including activities that may have the greatest 
                      potential to restore and maintain the 
                      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.
                    ``(E) Financial plan.--
                          ``(i) In general.--A financial plan that--

[[Page 126 STAT. 635]]

                                    ``(I) demonstrates how the adopted 
                                transportation plan can be implemented;
                                    ``(II) indicates resources from 
                                public and private sources that are 
                                reasonably expected to be made available 
                                to carry out the plan; and
                                    ``(III) recommends any additional 
                                financing strategies for needed projects 
                                and programs.
                          ``(ii) Inclusions.--The financial plan may 
                      include, for illustrative purposes, additional 
                      projects that would be included in the adopted 
                      transportation plan if reasonable additional 
                      resources beyond those identified in the financial 
                      plan were available.
                          ``(iii) Cooperative development.--For the 
                      purpose of developing the transportation plan, the 
                      metropolitan planning organization, transit 
                      operator, and State shall cooperatively develop 
                      estimates of funds that will be available to 
                      support plan implementation.
                    ``(F) Operational and management strategies.--
                Operational and management strategies to improve the 
                performance of existing transportation facilities to 
                relieve vehicular congestion and maximize the safety and 
                mobility of people and goods.
                    ``(G) Capital investment and other strategies.--
                Capital investment and other strategies to preserve the 
                existing and projected future metropolitan 
                transportation infrastructure and provide for multimodal 
                capacity increases based on regional priorities and 
                needs.
                    ``(H) Transportation and transit enhancement 
                activities.--Proposed transportation and transit 
                enhancement activities.
            ``(3) Coordination with clean air act agencies.--In 
        metropolitan areas that are in nonattainment for ozone or carbon 
        monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), the 
        metropolitan planning organization shall coordinate the 
        development of a transportation plan with the process for 
        development of the transportation control measures of the State 
        implementation plan required by that Act.
            ``(4) Optional scenario development.--
                    ``(A) In general.--A metropolitan planning 
                organization may, while fitting the needs and complexity 
                of its community, voluntarily elect to develop multiple 
                scenarios for consideration as part of the development 
                of the metropolitan transportation plan, in accordance 
                with subparagraph (B).
                    ``(B) Recommended components.--A metropolitan 
                planning organization that chooses to develop multiple 
                scenarios under subparagraph (A) shall be encouraged to 
                consider--
                          ``(i) potential regional investment strategies 
                      for the planning horizon;
                          ``(ii) assumed distribution of population and 
                      employment;
                          ``(iii) a scenario that, to the maximum extent 
                      practicable, maintains baseline conditions for the 
                      performance measures identified in subsection 
                      (h)(2);

[[Page 126 STAT. 636]]

                          ``(iv) a scenario that improves the baseline 
                      conditions for as many of the performance measures 
                      identified in subsection (h)(2) as possible;
                          ``(v) revenue constrained scenarios based on 
                      the total revenues expected to be available over 
                      the forecast period of the plan; and
                          ``(vi) estimated costs and potential revenues 
                      available to support each scenario.
                    ``(C) Metrics.--In addition to the performance 
                measures identified in section 150(c) of title 23, 
                metropolitan planning organizations may evaluate 
                scenarios developed under this paragraph using locally-
                developed measures.
            ``(5) 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, as 
                appropriate--
                          ``(i) comparison of transportation plans with 
                      State conservation plans or maps, if available; or
                          ``(ii) comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(6) Participation by interested parties.--
                    ``(A) In general.--Each metropolitan planning 
                organization shall provide citizens, affected public 
                agencies, representatives of public transportation 
                employees, freight shippers, providers of freight 
                transportation services, private providers of 
                transportation, representatives of users of public 
                transportation, representatives of users of pedestrian 
                walkways and bicycle transportation facilities, 
                representatives of the disabled, and other interested 
                parties with a reasonable opportunity to comment on the 
                transportation plan.
                    ``(B) Contents of participation plan.--A 
                participation plan--
                          ``(i) shall be developed in consultation with 
                      all interested parties; and
                          ``(ii) shall provide that all interested 
                      parties have reasonable opportunities to comment 
                      on the contents of the transportation plan.
                    ``(C) <<NOTE: Public information.>> 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, as appropriate to afford 
                      reasonable opportunity for consideration of public 
                      information under subparagraph (A).
            ``(7) Publication.--A transportation plan involving Federal 
        participation shall be published or otherwise made readily

[[Page 126 STAT. 637]]

        available by the metropolitan planning organization for public 
        review, including (to the maximum extent practicable) in 
        electronically accessible formats and means, such as the World 
        Wide Web, approved by the metropolitan planning organization and 
        submitted for information purposes to the Governor at such times 
        and in such manner as the Secretary shall establish.
            ``(8) Selection of projects from illustrative list.--
        Notwithstanding paragraph (2)(C), a State or metropolitan 
        planning organization shall not be required to select any 
        project from the illustrative list of additional projects 
        included in the financial plan under paragraph (2)(C).

    ``(j) Metropolitan TIP.--
            ``(1) Development.--
                    ``(A) In general.--In cooperation with the State and 
                any affected public transportation operator, the 
                metropolitan planning organization designated for a 
                metropolitan area shall develop a TIP for the 
                metropolitan planning area that--
                          ``(i) contains projects consistent with the 
                      current metropolitan transportation plan;
                          ``(ii) reflects the investment priorities 
                      established in the current metropolitan 
                      transportation plan; and
                          ``(iii) once implemented, is designed to make 
                      progress toward achieving the performance targets 
                      established under subsection (h)(2).
                    ``(B) Opportunity for comment.--In developing the 
                TIP, the metropolitan planning organization, in 
                cooperation with the State and any affected public 
                transportation operator, shall provide an opportunity 
                for participation by interested parties in the 
                development of the program, in accordance with 
                subsection (i)(5).
                    ``(C) Funding estimates.--For the purpose of 
                developing the TIP, the metropolitan planning 
                organization, public transportation agency, and State 
                shall cooperatively develop estimates of funds that are 
                reasonably expected to be available to support program 
                implementation.
                    ``(D) Updating and approval.--The TIP shall be--
                          ``(i) updated at least once every 4 years; and
                          ``(ii) approved by the metropolitan planning 
                      organization and the Governor.
            ``(2) Contents.--
                    ``(A) <<NOTE: Time period.>> Priority list.--The TIP 
                shall include a priority list of proposed Federally 
                supported projects and strategies to be carried out 
                within each 4-year period after the initial adoption of 
                the TIP.
                    ``(B) Financial plan.--The TIP shall include a 
                financial plan that--
                          ``(i) demonstrates how the TIP can be 
                      implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      available to carry out the program;
                          ``(iii) identifies innovative financing 
                      techniques to finance projects, programs, and 
                      strategies; and
                          ``(iv) may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      approved TIP if reasonable additional resources 
                      beyond those identified in the financial plan were 
                      available.

[[Page 126 STAT. 638]]

                    ``(C) Descriptions.--Each project in the TIP shall 
                include sufficient descriptive material (such as type of 
                work, termini, length, and other similar factors) to 
                identify the project or phase of the project.
                    ``(D) Performance target achievement.--The 
                transportation improvement program shall include, to the 
                maximum extent practicable, a description of the 
                anticipated effect of the transportation improvement 
                program toward achieving the performance targets 
                established in the metropolitan transportation plan, 
                linking investment priorities to those performance 
                targets.
            ``(3) Included projects.--
                    ``(A) Projects under this chapter and title 23.--A 
                TIP developed under this subsection for a metropolitan 
                area shall include the projects within the area that are 
                proposed for funding under this chapter and chapter 1 of 
                title 23.
                    ``(B) Projects under chapter 2 of title 23.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 of title 23 shall be 
                      identified individually in the transportation 
                      improvement program.
                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 of title 23 that are not 
                      determined to be regionally significant shall be 
                      grouped in 1 line item or identified individually 
                      in the transportation improvement program.
                    ``(C) Consistency with long-range transportation 
                plan.--Each project shall be consistent with the long-
                range transportation plan developed under subsection (i) 
                for the area.
                    ``(D) Requirement of anticipated full funding.--The 
                program shall include a project, or an identified phase 
                of a project, only if full funding can reasonably be 
                anticipated to be available for the project or the 
                identified phase within the time period contemplated for 
                completion of the project or the identified phase.
            ``(4) Notice and comment.--Before approving a TIP, a 
        metropolitan planning organization, in cooperation with the 
        State and any affected public transportation operator, shall 
        provide an opportunity for participation by interested parties 
        in the development of the program, in accordance with subsection 
        (i)(5).
            ``(5) Selection of projects.--
                    ``(A) In general.--Except as otherwise provided in 
                subsection (k)(4) and in addition to the TIP development 
                required under paragraph (1), the selection of Federally 
                funded projects in metropolitan areas shall be carried 
                out, from the approved TIP--
                          ``(i) by--
                                    ``(I) in the case of projects under 
                                title 23, the State; and
                                    ``(II) in the case of projects under 
                                this chapter, the designated recipients 
                                of public transportation funding; and
                          ``(ii) in cooperation with the metropolitan 
                      planning organization.

[[Page 126 STAT. 639]]

                    ``(B) Modifications to project priority.--
                Notwithstanding any other provision of law, action by 
                the Secretary shall not be required to advance a project 
                included in the approved TIP in place of another project 
                in the program.
            ``(6) Selection of projects from illustrative list.--
                    ``(A) No required selection.--Notwithstanding 
                paragraph (2)(B)(iv), a State or metropolitan planning 
                organization shall not be required to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv).
                    ``(B) Required action by the secretary.--Action by 
                the Secretary shall be required for a State or 
                metropolitan planning organization to select any project 
                from the illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv) for inclusion in an approved TIP.
            ``(7) <<NOTE: Public information.>> Publication.--
                    ``(A) Publication of tips.--A TIP involving Federal 
                participation shall be published or otherwise made 
                readily available by the metropolitan planning 
                organization for public review.
                    ``(B) Publication of annual listings of projects.--
                          ``(i) In general.--An annual listing of 
                      projects, including investments in pedestrian 
                      walkways and bicycle transportation facilities, 
                      for which Federal funds have been obligated in the 
                      preceding year shall be published or otherwise 
                      made available by the cooperative effort of the 
                      State, transit operator, and metropolitan planning 
                      organization for public review.
                          ``(ii) Requirement.--The listing shall be 
                      consistent with the categories identified in the 
                      TIP.

    ``(k) Transportation Management Areas.--
            ``(1) Identification and designation.--
                    ``(A) Required identification.--The Secretary shall 
                identify as a transportation management area each 
                urbanized area (as defined by the Bureau of the Census) 
                with a population of over 200,000 individuals.
                    ``(B) Designations on request.--The Secretary shall 
                designate any additional area as a transportation 
                management area on the request of the Governor and the 
                metropolitan planning organization designated for the 
                area.
            ``(2) Transportation plans.--In a transportation management 
        area, transportation plans shall be based on a continuing and 
        comprehensive transportation planning process carried out by the 
        metropolitan planning organization in cooperation with the State 
        and public transportation operators.
            ``(3) Congestion management process.--
                    ``(A) In general.--Within a metropolitan planning 
                area serving a transportation management area, the 
                transportation planning process under this section shall 
                address congestion management through a process that 
                provides for effective management and operation, based 
                on a cooperatively developed and implemented 
                metropolitan-wide strategy, of new and existing 
                transportation facilities eligible for funding under 
                this chapter and title 23 through the use of travel 
                demand reduction and operational management strategies.

[[Page 126 STAT. 640]]

                    ``(B) <<NOTE: Time period.>> Schedule.--The 
                Secretary shall establish an appropriate phase-in 
                schedule for compliance with the requirements of this 
                section but no sooner than 1 year after the 
                identification of a transportation management area.
            ``(4) Selection of projects.--
                    ``(A) In general.--All Federally funded projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                under title 23 (excluding projects carried out on the 
                National Highway System) or under this chapter shall be 
                selected for implementation from the approved TIP by the 
                metropolitan planning organization designated for the 
                area in consultation with the State and any affected 
                public transportation operator.
                    ``(B) National highway system projects.--Projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                on the National Highway System shall be selected for 
                implementation from the approved TIP by the State in 
                cooperation with the metropolitan planning organization 
                designated for the area.
            ``(5) Certification.--
                    ``(A) In general.--The Secretary shall--
                          ``(i) ensure that the metropolitan planning 
                      process of a metropolitan planning organization 
                      serving a transportation management area is being 
                      carried out in accordance with applicable 
                      provisions of Federal law; and
                          ``(ii) <<NOTE: Time period.>> subject to 
                      subparagraph (B), certify, not less often than 
                      once every 4 years, that the requirements of this 
                      paragraph are met with respect to the metropolitan 
                      planning process.
                    ``(B) Requirements for certification.--The Secretary 
                may make the certification under subparagraph (A) if--
                          ``(i) the transportation planning process 
                      complies with the requirements of this section and 
                      other applicable requirements of Federal law; and
                          ``(ii) there is a TIP for the metropolitan 
                      planning area that has been approved by the 
                      metropolitan planning organization and the 
                      Governor.
                    ``(C) Effect of failure to certify.--
                          ``(i) Withholding of project funds.--If a 
                      metropolitan planning process of a metropolitan 
                      planning organization serving a transportation 
                      management area is not certified, the Secretary 
                      may withhold up to 20 percent of the funds 
                      attributable to the metropolitan planning area of 
                      the metropolitan planning organization for 
                      projects funded under this chapter and title 23.
                          ``(ii) Restoration of withheld funds.--The 
                      withheld funds shall be restored to the 
                      metropolitan planning area at such time as the 
                      metropolitan planning process is certified by the 
                      Secretary.
                    ``(D) Review of certification.--In making 
                certification determinations under this paragraph, the 
                Secretary

[[Page 126 STAT. 641]]

                shall provide for public involvement appropriate to the 
                metropolitan area under review.

    ``(l) Report on Performance-based Planning Processes.--
            ``(1) In general.--The Secretary shall submit to Congress a 
        report on the effectiveness of the performance-based planning 
        processes of metropolitan planning organizations under this 
        section, taking into consideration the requirements of this 
        subsection
            ``(2) Report.--Not later than 5 years after the date of 
        enactment of the Federal Public Transportation Act of 2012, the 
        Secretary shall submit to Congress a report evaluating--
                    ``(A) the overall effectiveness of performance-based 
                planning as a tool for guiding transportation 
                investments;
                    ``(B) the effectiveness of the performance-based 
                planning process of each metropolitan planning 
                organization under this section;
                    ``(C) the extent to which metropolitan planning 
                organizations have achieved, or are currently making 
                substantial progress toward achieving, the performance 
                targets specified under this section and whether 
                metropolitan planning organizations are developing 
                meaningful performance targets; and
                    ``(D) the technical capacity of metropolitan 
                planning organizations that operate within a 
                metropolitan planning area of less than 200,000 and 
                their ability to carry out the requirements of this 
                section.
            ``(3) Publication.--The report under paragraph (2) shall be 
        published or otherwise made available in electronically 
        accessible formats and means, including on the Internet.

    ``(m) Abbreviated Plans for Certain Areas.--
            ``(1) In general.--Subject to paragraph (2), in the case of 
        a metropolitan area not designated as a transportation 
        management area under this section, the Secretary may provide 
        for the development of an abbreviated transportation plan and 
        TIP for the metropolitan planning area that the Secretary 
        determines is appropriate to achieve the purposes of this 
        section, taking into account the complexity of transportation 
        problems in the area.
            ``(2) Nonattainment areas.--The Secretary may not permit 
        abbreviated plans or TIPs for a metropolitan area that is in 
        nonattainment for ozone or carbon monoxide under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).

    ``(n) Additional Requirements for Certain Nonattainment Areas.--
            ``(1) In general.--Notwithstanding any other provisions of 
        this chapter or title 23, for transportation management areas 
        classified as nonattainment for ozone or carbon monoxide 
        pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal 
        funds may not be advanced in such area for any highway project 
        that will result in a significant increase in the carrying 
        capacity for single-occupant vehicles unless the project is 
        addressed through a congestion management process.
            ``(2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning area 
        boundaries determined under subsection (e).

    ``(o) Limitation on Statutory Construction.--Nothing in this section 
shall be construed to confer on a metropolitan planning

[[Page 126 STAT. 642]]

organization the authority to impose legal requirements on any 
transportation facility, provider, or project not eligible under this 
chapter or title 23.
    ``(p) Funding.--Funds set aside under section 104(f) of title 23 or 
section 5305(g) shall be available to carry out this section.
    ``(q) Continuation of Current Review Practice.--Since plans and TIPs 
described in this section are subject to a reasonable opportunity for 
public comment, since individual projects included in plans and TIPs are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning plans and TIPs described in this section have not been 
reviewed under that Act as of January 1, 1997, any decision by the 
Secretary concerning a plan or TIP described in this section shall not 
be considered to be a Federal action subject to review under that 
Act.''.
    (b) <<NOTE: 49 USC 5303 note.>> Pilot Program for Transit-oriented 
Development Planning.--
            (1) Definitions.--In this subsection the following 
        definitions shall apply:
                    (A) Eligible project.--The term ``eligible project'' 
                means a new fixed guideway capital project or a core 
                capacity improvement project, as those terms are defined 
                in section 5309 of title 49, United States Code, as 
                amended by this division.
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of Transportation.
            (2) General authority.--The Secretary may make grants under 
        this subsection to a State or local governmental authority to 
        assist in financing comprehensive planning associated with an 
        eligible project that seeks to--
                    (A) enhance economic development, ridership, and 
                other goals established during the project development 
                and engineering processes;
                    (B) facilitate multimodal connectivity and 
                accessibility;
                    (C) increase access to transit hubs for pedestrian 
                and bicycle traffic;
                    (D) enable mixed-use development;
                    (E) identify infrastructure needs associated with 
                the eligible project; and
                    (F) include private sector participation.
            (3) Eligibility.--A State or local governmental authority 
        that desires to participate in the program under this subsection 
        shall submit to the Secretary an application that contains, at a 
        minimum--
                    (A) identification of an eligible project;
                    (B) a schedule and process for the development of a 
                comprehensive plan;
                    (C) a description of how the eligible project and 
                the proposed comprehensive plan advance the metropolitan 
                transportation plan of the metropolitan planning 
                organization;
                    (D) proposed performance criteria for the 
                development and implementation of the comprehensive 
                plan; and
                    (E) identification of--
                          (i) partners;
                          (ii) availability of and authority for 
                      funding; and

[[Page 126 STAT. 643]]

                          (iii) potential State, local or other 
                      impediments to the implementation of the 
                      comprehensive plan.
SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

    Section 5304 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5304. Statewide and nonmetropolitan transportation planning

    ``(a) General Requirements.--
            ``(1) Development of plans and programs.--Subject to section 
        5303, to accomplish the objectives stated in section 5303(a), 
        each State shall develop a statewide transportation plan and a 
        statewide transportation improvement program for all areas of 
        the State.
            ``(2) Contents.--The statewide transportation plan and the 
        transportation improvement program developed for each State 
        shall provide for the development and integrated management and 
        operation of transportation systems and facilities (including 
        accessible pedestrian walkways and bicycle transportation 
        facilities) that will function as an intermodal transportation 
        system for the State and an integral part of an intermodal 
        transportation system for the United States.
            ``(3) Process of development.--The process for developing 
        the statewide plan and the transportation improvement program 
        shall provide for consideration of all modes of transportation 
        and the policies stated in section 5303(a) and shall be 
        continuing, cooperative, and comprehensive to the degree 
        appropriate, based on the complexity of the transportation 
        problems to be addressed.

    ``(b) Coordination With Metropolitan Planning; State Implementation 
Plan.--A State shall--
            ``(1) coordinate planning carried out under this section 
        with the transportation planning activities carried out under 
        section 5303 for metropolitan areas of the State and with 
        statewide trade and economic development planning activities and 
        related multistate planning efforts; and
            ``(2) develop the transportation portion of the State 
        implementation plan as required by the Clean Air Act (42 U.S.C. 
        7401 et seq.).

    ``(c) Interstate Agreements.--
            ``(1) In general.--Two or more States may enter into 
        agreements or compacts, not in conflict with any law of the 
        United States, for cooperative efforts and mutual assistance in 
        support of activities authorized under this section related to 
        interstate areas and localities in the States and establishing 
        authorities the States consider desirable for making the 
        agreements and compacts effective.
            ``(2) Reservation of rights.--The right to alter, amend, or 
        repeal interstate compacts entered into under this subsection is 
        expressly reserved.

    ``(d) Scope of Planning Process.--
            ``(1) In general.--Each State shall carry out a statewide 
        transportation planning process that provides for consideration 
        and implementation of projects, strategies, and services that 
        will--

[[Page 126 STAT. 644]]

                    ``(A) support the economic vitality of the United 
                States, the States, nonmetropolitan areas, and 
                metropolitan areas, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and freight;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, improve the quality of life, and 
                promote consistency between transportation improvements 
                and State and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes 
                throughout the State, for people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Performance-based approach.--
                    ``(A) In general.--The statewide transportation 
                planning process shall provide for the establishment and 
                use of a performance-based approach to transportation 
                decisionmaking to support the national goals described 
                in section 150(b) of title 23 and the general purposes 
                described in section 5301.
                    ``(B) Performance targets.--
                          ``(i) Surface transportation performance 
                      targets.--
                                    ``(I) In general.--Each State shall 
                                establish performance targets that 
                                address the performance measures 
                                described in section 150(c) of title 23, 
                                where applicable, to use in tracking 
                                progress towards attainment of critical 
                                outcomes for the State.
                                    ``(II) Coordination.--Selection of 
                                performance targets by a State shall be 
                                coordinated with the relevant 
                                metropolitan planning organizations to 
                                ensure consistency, to the maximum 
                                extent practicable.
                          ``(ii) Public transportation performance 
                      targets.--In urbanized areas with a population of 
                      fewer than 200,000 individuals, as calculated 
                      according to the most recent decennial census, and 
                      not represented by a metropolitan planning 
                      organization, selection of performance targets by 
                      a State shall be coordinated, to the maximum 
                      extent practicable, with providers of public 
                      transportation to ensure consistency with sections 
                      5326(c) and 5329(d).
                    ``(C) Integration of other performance-based 
                plans.--A State shall integrate into the statewide 
                transportation planning process, directly or by 
                reference, the goals, objectives, performance measures, 
                and targets described in this paragraph, in other State 
                transportation plans and

[[Page 126 STAT. 645]]

                transportation processes, as well as any plans developed 
                pursuant to title 23 by providers of public 
                transportation in urbanized areas with a population of 
                fewer than 200,000 individuals, as calculated according 
                to the most recent decennial census, and not represented 
                by a metropolitan planning organization, required as 
                part of a performance-based program.
                    ``(D) Use of performance measures and targets.--The 
                performance measures and targets established under this 
                paragraph shall be considered by a State when developing 
                policies, programs, and investment priorities reflected 
                in the statewide transportation plan and statewide 
                transportation improvement program.
            ``(3) Failure to consider factors.--The failure to take into 
        consideration the factors specified in paragraphs (1) and (2) 
        shall not be subject to review by any court under this chapter, 
        title 23, subchapter II of chapter 5 of title 5, or chapter 7 of 
        title 5 in any matter affecting a statewide transportation plan, 
        a statewide transportation improvement program, a project or 
        strategy, or the certification of a planning process.

    ``(e) Additional Requirements.--``In carrying out planning under 
this section, each State shall, at a minimum--
            ``(1) with respect to nonmetropolitan areas, cooperate with 
        affected local officials with responsibility for transportation 
        or, if applicable, through regional transportation planning 
        organizations described in subsection (l);
            ``(2) consider the concerns of Indian tribal governments and 
        Federal land management agencies that have jurisdiction over 
        land within the boundaries of the State; and
            ``(3) consider coordination of transportation plans, the 
        transportation improvement program, and planning activities with 
        related planning activities being carried out outside of 
        metropolitan planning areas and between States.

    ``(f) Long-range Statewide Transportation Plan.--
            ``(1) <<NOTE: Time period.>> Development.--Each State shall 
        develop a long-range statewide transportation plan, with a 
        minimum 20-year forecast period for all areas of the State, that 
        provides for the development and implementation of the 
        intermodal transportation system of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--The statewide 
                transportation plan shall be developed for each 
                metropolitan area in the State in cooperation with the 
                metropolitan planning organization designated for the 
                metropolitan area under section 5303.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to 
                      nonmetropolitan areas, the statewide 
                      transportation plan shall be developed in 
                      cooperation with affected nonmetropolitan 
                      officials with responsibility for transportation 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (l).
                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the consultation process in 
                      each State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal

[[Page 126 STAT. 646]]

                government, the statewide transportation plan shall be 
                developed in consultation with the tribal government and 
                the Secretary of the Interior.
                    ``(D) Consultation, comparison, and consideration.--
                          ``(i) In general.--The long-range 
                      transportation plan shall be developed, as 
                      appropriate, in consultation with State, tribal, 
                      and local agencies responsible for land use 
                      management, natural resources, environmental 
                      protection, conservation, and historic 
                      preservation.
                          ``(ii) Comparison and consideration.--
                      Consultation under clause (i) shall involve 
                      comparison of transportation plans to State and 
                      tribal conservation plans or maps, if available, 
                      and comparison of transportation plans to 
                      inventories of natural or historic resources, if 
                      available.
            ``(3) Participation by interested parties.--
                    ``(A) In general.--In developing the statewide 
                transportation plan, the State shall provide to--
                          ``(i) nonmetropolitan local elected officials, 
                      or, if applicable, through regional transportation 
                      planning organizations described in subsection 
                      (l), an opportunity to participate in accordance 
                      with subparagraph (B)(i); and
                          ``(ii) citizens, affected public agencies, 
                      representatives of public transportation 
                      employees, freight shippers, private providers of 
                      transportation, representatives of users of public 
                      transportation, representatives of users of 
                      pedestrian walkways and bicycle transportation 
                      facilities, representatives of the disabled, 
                      providers of freight transportation services, and 
                      other interested parties a reasonable opportunity 
                      to comment on the proposed plan.
                    ``(B) <<NOTE: Public information.>> Methods.--In 
                carrying out subparagraph (A), the State shall, to the 
                maximum extent practicable--
                          ``(i) develop and document a consultative 
                      process to carry out subparagraph (A)(i) that is 
                      separate and discrete from the public involvement 
                      process developed under clause (ii);
                          ``(ii) hold any public meetings at convenient 
                      and accessible locations and times;
                          ``(iii) employ visualization techniques to 
                      describe plans; and
                          ``(iv) make public information available in 
                      electronically accessible format and means, such 
                      as the World Wide Web, as appropriate to afford 
                      reasonable opportunity for consideration of public 
                      information under subparagraph (A).
            ``(4) Mitigation activities.--
                    ``(A) In general.--A long-range transportation plan 
                shall include a discussion of potential environmental 
                mitigation activities and potential areas to carry out 
                these activities, including activities that may have the 
                greatest potential to restore and maintain the 
                environmental functions affected by the plan.

[[Page 126 STAT. 647]]

                    ``(B) Consultation.--The discussion shall be 
                developed in consultation with Federal, State, and 
                tribal wildlife, land management, and regulatory 
                agencies.
            ``(5) Financial plan.--The statewide transportation plan may 
        include--
                    ``(A) a financial plan that--
                          ``(i) demonstrates how the adopted statewide 
                      transportation plan can be implemented;
                          ``(ii) indicates resources from public and 
                      private sources that are reasonably expected to be 
                      made available to carry out the plan; and
                          ``(iii) recommends any additional financing 
                      strategies for needed projects and programs; and
                    ``(B) for illustrative purposes, additional projects 
                that would be included in the adopted statewide 
                transportation plan if reasonable additional resources 
                beyond those identified in the financial plan were 
                available.
            ``(6) Selection of projects from illustrative list.--A State 
        shall not be required to select any project from the 
        illustrative list of additional projects included in the 
        financial plan described in paragraph (5).
            ``(7) Performance-based approach.--The statewide 
        transportation plan should include--
                    ``(A) a description of the performance measures and 
                performance targets used in assessing the performance of 
                the transportation system in accordance with subsection 
                (d)(2); and
                    ``(B) a system performance report and subsequent 
                updates evaluating the condition and performance of the 
                transportation system with respect to the performance 
                targets described in subsection (d)(2), including 
                progress achieved by the metropolitan planning 
                organization in meeting the performance targets in 
                comparison with system performance recorded in previous 
                reports;
            ``(8) Existing system.--The statewide transportation plan 
        should include capital, operations and management strategies, 
        investments, procedures, and other measures to ensure the 
        preservation and most efficient use of the existing 
        transportation system.
            ``(9) Publication of long-range transportation plans.--Each 
        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.

    ``(g) Statewide Transportation Improvement Program.--
            ``(1) Development.--
                    ``(A) In general.--Each State shall develop a 
                statewide transportation improvement program for all 
                areas of the State.
                    ``(B) <<NOTE: Time period.>> Duration and updating 
                of program.--Each program developed under subparagraph 
                (A) shall cover a period of 4 years and shall be updated 
                every 4 years or more frequently if the Governor of the 
                State elects to update more frequently.
            ``(2) Consultation with governments.--

[[Page 126 STAT. 648]]

                    ``(A) Metropolitan areas.--With respect to each 
                metropolitan area in the State, the program shall be 
                developed in cooperation with the metropolitan planning 
                organization designated for the metropolitan area under 
                section 5303.
                    ``(B) Nonmetropolitan areas.--
                          ``(i) In general.--With respect to each 
                      nonmetropolitan area in the State, the program 
                      shall be developed in cooperation with affected 
                      nonmetropolitan local officials with 
                      responsibility for transportation or, if 
                      applicable, through regional transportation 
                      planning organizations described in subsection 
                      (l).
                          ``(ii) Role of secretary.--The Secretary shall 
                      not review or approve the specific consultation 
                      process in the State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the program shall be developed in 
                consultation with the tribal government and the 
                Secretary of the Interior.
            ``(3) Participation by interested parties.--In developing 
        the program, the State shall provide citizens, affected public 
        agencies, representatives of public transportation employees, 
        freight shippers, private providers of transportation, providers 
        of freight transportation services, representatives of users of 
        public transportation, representatives of users of pedestrian 
        walkways and bicycle transportation facilities, representatives 
        of the disabled, and other interested parties with a reasonable 
        opportunity to comment on the proposed program.
            ``(4) Performance target achievement.--A statewide 
        transportation improvement program shall include, to the maximum 
        extent practicable, a discussion of the anticipated effect of 
        the statewide transportation improvement program toward 
        achieving the performance targets established in the statewide 
        transportation plan, linking investment priorities to those 
        performance targets.
            ``(5) Included projects.--
                    ``(A) In general.--A transportation improvement 
                program developed under this subsection for a State 
                shall include Federally supported surface transportation 
                expenditures within the boundaries of the State.
                    ``(B) Listing of projects.--
                          ``(i) <<NOTE: Public information.>> In 
                      general.--An annual listing of projects for which 
                      funds have been obligated for the preceding year 
                      in each metropolitan planning area shall be 
                      published or otherwise made available by the 
                      cooperative effort of the State, transit operator, 
                      and the metropolitan planning organization for 
                      public review.
                          ``(ii) Funding categories.--The listing 
                      described in clause (i) shall be consistent with 
                      the funding categories identified in each 
                      metropolitan transportation improvement program.
                    ``(C) Projects under chapter 2.--
                          ``(i) Regionally significant projects.--
                      Regionally significant projects proposed for 
                      funding under chapter 2 of title 23 shall be 
                      identified individually in the transportation 
                      improvement program.

[[Page 126 STAT. 649]]

                          ``(ii) Other projects.--Projects proposed for 
                      funding under chapter 2 of title 23 that are not 
                      determined to be regionally significant shall be 
                      grouped in 1 line item or identified individually 
                      in the transportation improvement program.
                    ``(D) Consistency with statewide transportation 
                plan.--Each project shall be--
                          ``(i) consistent with the statewide 
                      transportation plan developed under this section 
                      for the State;
                          ``(ii) identical to the project or phase of 
                      the project as described in an approved 
                      metropolitan transportation plan; and
                          ``(iii) in conformance with the applicable 
                      State air quality implementation plan developed 
                      under the Clean Air Act (42 U.S.C. 7401 et seq.), 
                      if the project is carried out in an area 
                      designated as a nonattainment area for ozone, 
                      particulate matter, or carbon monoxide under part 
                      D of title I of that Act (42 U.S.C. 7501 et seq.).
                    ``(E) Requirement of anticipated full funding.--The 
                transportation improvement program shall include a 
                project, or an identified phase of a project, only if 
                full funding can reasonably be anticipated to be 
                available for the project within the time period 
                contemplated for completion of the project.
                    ``(F) Financial plan.--
                          ``(i) In general.--The transportation 
                      improvement program may include a financial plan 
                      that demonstrates how the approved transportation 
                      improvement program can be implemented, indicates 
                      resources from public and private sources that are 
                      reasonably expected to be made available to carry 
                      out the transportation improvement program, and 
                      recommends any additional financing strategies for 
                      needed projects and programs.
                          ``(ii) Additional projects.--The financial 
                      plan may include, for illustrative purposes, 
                      additional projects that would be included in the 
                      adopted transportation plan if reasonable 
                      additional resources beyond those identified in 
                      the financial plan were available.
                    ``(G) Selection of projects from illustrative 
                list.--
                          ``(i) No required selection.--Notwithstanding 
                      subparagraph (F), a State shall not be required to 
                      select any project from the illustrative list of 
                      additional projects included in the financial plan 
                      under subparagraph (F).
                          ``(ii) Required action by the secretary.--
                      Action by the Secretary shall be required for a 
                      State to select any project from the illustrative 
                      list of additional projects included in the 
                      financial plan under subparagraph (F) for 
                      inclusion in an approved transportation 
                      improvement program.
                    ``(H) Priorities.--The transportation improvement 
                program shall reflect the priorities for programming and

[[Page 126 STAT. 650]]

                expenditures of funds, including transportation 
                enhancement activities, required by this chapter and 
                title 23.
            ``(6) Project selection for areas of less than 50,000 
        population.--
                    ``(A) In general.--Projects carried out in areas 
                with populations of less than 50,000 individuals shall 
                be selected, from the approved transportation 
                improvement program (excluding projects carried out on 
                the National Highway System and projects carried out 
                under the bridge program or the Interstate maintenance 
                program under title 23 or under sections 5310 and 5311 
                of this chapter), by the State in cooperation with the 
                affected nonmetropolitan local officials with 
                responsibility for transportation or, if applicable, 
                through regional transportation planning organizations 
                described in subsection (l).
                    ``(B) Other projects.--Projects carried out in areas 
                with populations of less than 50,000 individuals on the 
                National Highway System or under the bridge program or 
                the Interstate maintenance program under title 23 or 
                under sections 5310 and 5311 of this chapter shall be 
                selected, from the approved statewide transportation 
                improvement program, by the State in consultation with 
                the affected nonmetropolitan local officials with 
                responsibility for transportation.
            ``(7) Transportation improvement program approval.--Every 4 
        years, a transportation improvement program developed under this 
        subsection shall be reviewed and approved by the Secretary if 
        based on a current planning finding.
            ``(8) <<NOTE: Time period.>> Planning finding.--A finding 
        shall be made by the Secretary at least every 4 years that the 
        transportation planning process through which statewide 
        transportation plans and programs are developed is consistent 
        with this section and section 5303.
            ``(9) Modifications to project priority.--Notwithstanding 
        any other provision of law, action by the Secretary shall not be 
        required to advance a project included in the approved 
        transportation improvement program in place of another project 
        in the program.

    ``(h) Performance-based Planning Processes Evaluation.--
            ``(1) <<NOTE: Criteria.>> In general.--The Secretary shall 
        establish criteria to evaluate the effectiveness of the 
        performance-based planning processes of States, taking into 
        consideration the following:
                    ``(A) The extent to which the State is making 
                progress toward achieving, the performance targets 
                described in subsection (d)(2), taking into account 
                whether the State developed appropriate performance 
                targets.
                    ``(B) The extent to which the State has made 
                transportation investments that are efficient and cost-
                effective.
                    ``(C) <<NOTE: Public information.>> The extent to 
                which the State--
                          ``(i) has developed an investment process that 
                      relies on public input and awareness to ensure 
                      that investments are transparent and accountable; 
                      and
                          ``(ii) provides reports allowing the public to 
                      access the information being collected in a format 
                      that allows the public to meaningfully assess the 
                      performance of the State.
            ``(2) Report.--

[[Page 126 STAT. 651]]

                    ``(A) In general.--Not later than 5 years after the 
                date of enactment of the Federal Public Transportation 
                Act of 2012, the Secretary shall submit to Congress a 
                report evaluating--
                          ``(i) the overall effectiveness of 
                      performance-based planning as a tool for guiding 
                      transportation investments; and
                          ``(ii) the effectiveness of the performance-
                      based planning process of each State.
                    ``(B) Publication.--The report under subparagraph 
                (A) shall be published or otherwise made available in 
                electronically accessible formats and means, including 
                on the Internet.

    ``(i) Treatment of Certain State Laws as Congestion Management 
Processes.--For purposes of this section and section 5303, and sections 
134 and 135 of title 23, State laws, rules, or regulations pertaining to 
congestion management systems or programs may constitute the congestion 
management process under this this section and section 5303, and 
sections 134 and 135 of title 23, if the Secretary finds that the State 
laws, rules, or regulations are consistent with, and fulfill the intent 
of, the purposes of this section and section 5303, and sections 134 and 
135 of title 23, as appropriate.
    ``(j) Continuation of Current Review Practice.--Since the statewide 
transportation plan and the transportation improvement program described 
in this section are subject to a reasonable opportunity for public 
comment, since individual projects included in the statewide 
transportation plans and the transportation improvement program are 
subject to review under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning statewide transportation plans or the transportation 
improvement program described in this section have not been reviewed 
under that Act as of January 1, 1997, any decision by the Secretary 
concerning a metropolitan or statewide transportation plan or the 
transportation improvement program described in this section shall not 
be considered to be a Federal action subject to review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(k) <<NOTE: Guidance.>> Schedule for Implementation.--The 
Secretary shall issue guidance on a schedule for implementation of the 
changes made by this section, taking into consideration the established 
planning update cycle for States. The Secretary shall not require a 
State to deviate from its established planning update cycle to implement 
changes made by this section. <<NOTE: Deadline.>> States shall reflect 
changes made to their transportation plan or transportation improvement 
program updates not later than 2 years after the date of issuance of 
guidance by the Secretary under this subsection.

    ``(l) Designation of Regional Transportation Planning 
Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a State may establish and 
        designate regional transportation planning organizations to 
        enhance the planning, coordination, and implementation of 
        statewide strategic long-range transportation plans and 
        transportation improvement programs, with an emphasis on 
        addressing the needs of nonmetropolitan areas of the State.

[[Page 126 STAT. 652]]

            ``(2) Structure.--A regional transportation planning 
        organization shall be established as a multijurisdictional 
        organization of nonmetropolitan local officials or their 
        designees who volunteer for such organization and 
        representatives of local transportation systems who volunteer 
        for such organization.
            ``(3) Requirements.--A regional transportation planning 
        organization shall establish, at a minimum--
                    ``(A) a policy committee, the majority of which 
                shall consist of nonmetropolitan local officials, or 
                their designees, and, as appropriate, additional 
                representatives from the State, private business, 
                transportation service providers, economic development 
                practitioners, and the public in the region; and
                    ``(B) a fiscal and administrative agent, such as an 
                existing regional planning and development organization, 
                to provide professional planning, management, and 
                administrative support.
            ``(4) Duties.--The duties of a regional transportation 
        planning organization shall include--
                    ``(A) developing and maintaining, in cooperation 
                with the State, regional long-range multimodal 
                transportation plans;
                    ``(B) developing a regional transportation 
                improvement program for consideration by the State;
                    ``(C) fostering the coordination of local planning, 
                land use, and economic development plans with State, 
                regional, and local transportation plans and programs;
                    ``(D) providing technical assistance to local 
                officials;
                    ``(E) participating in national, multistate, and 
                State policy and planning development processes to 
                ensure the regional and local input of nonmetropolitan 
                areas;
                    ``(F) providing a forum for public participation in 
                the statewide and regional transportation planning 
                processes;
                    ``(G) considering and sharing plans and programs 
                with neighboring regional transportation planning 
                organizations, metropolitan planning organizations, and, 
                where appropriate, tribal organizations; and
                    ``(H) conducting other duties, as necessary, to 
                support and enhance the statewide planning process under 
                subsection (d).
            ``(5) States without regional transportation planning 
        organizations.-- <<NOTE: Consultation.>> If a State chooses not 
        to establish or designate a regional transportation planning 
        organization, the State shall consult with affected 
        nonmetropolitan local officials to determine projects that may 
        be of regional significance.''.
SEC. 20007. URBANIZED AREA FORMULA GRANTS.

    Section 5307 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5307. Urbanized area formula grants

    ``(a) General Authority.--
            ``(1) Grants.--The Secretary may make grants under this 
        section for--
                    ``(A) capital projects;
                    ``(B) planning;

[[Page 126 STAT. 653]]

                    ``(C) job access and reverse commute projects; and
                    ``(D) operating costs of equipment and facilities 
                for use in public transportation in an urbanized area 
                with a population of fewer than 200,000 individuals, as 
                determined by the Bureau of the Census.
            ``(2) Special rule.--The Secretary may make grants under 
        this section to finance the operating cost of equipment and 
        facilities for use in public transportation, excluding rail 
        fixed guideway, in an urbanized area with a population of not 
        fewer than 200,000 individuals, as determined by the Bureau of 
        the Census--
                    ``(A) for public transportation systems that operate 
                75 or fewer buses in fixed route service during peak 
                service hours, in an amount not to exceed 75 percent of 
                the share of the apportionment which is attributable to 
                such systems within the urbanized area, as measured by 
                vehicle revenue hours; and
                    ``(B) for public transportation systems that operate 
                a minimum of 76 buses and a maximum of 100 buses in 
                fixed route service during peak service hours, in an 
                amount not to exceed 50 percent of the share of the 
                apportionment which is attributable to such systems 
                within the urbanized area, as measured by vehicle 
                revenue hours.

    ``(b) <<NOTE: Public information.>> Program of Projects.--Each 
recipient of a grant shall--
            ``(1) make available to the public information on amounts 
        available to the recipient under this section;
            ``(2) develop, in consultation with interested parties, 
        including private transportation providers, a proposed program 
        of projects for activities to be financed;
            ``(3) <<NOTE: Publication.>> publish a proposed program of 
        projects in a way that affected individuals, private 
        transportation providers, and local elected officials have the 
        opportunity to examine the proposed program and submit comments 
        on the proposed program and the performance of the recipient;
            ``(4) provide an opportunity for a public hearing in which 
        to obtain the views of individuals on the proposed program of 
        projects;
            ``(5) ensure that the proposed program of projects provides 
        for the coordination of public transportation services assisted 
        under section 5336 of this title with transportation services 
        assisted from other United States Government sources;
            ``(6) consider comments and views received, especially those 
        of private transportation providers, in preparing the final 
        program of projects; and
            ``(7) make the final program of projects available to the 
        public.

    ``(c) Grant Recipient Requirements.--A recipient may receive a grant 
in a fiscal year only if--
            ``(1) <<NOTE: Certification.>> the recipient, within the 
        time the Secretary prescribes, submits a final program of 
        projects prepared under subsection (b) of this section and a 
        certification for that fiscal year that the recipient (including 
        a person receiving amounts from a Governor under this section)--
                    ``(A) has or will have the legal, financial, and 
                technical capacity to carry out the program, including 
                safety and security aspects of the program;

[[Page 126 STAT. 654]]

                    ``(B) has or will have satisfactory continuing 
                control over the use of equipment and facilities;
                    ``(C) will maintain equipment and facilities;
                    ``(D) will ensure that, during non-peak hours for 
                transportation using or involving a facility or 
                equipment of a project financed under this section, a 
                fare that is not more than 50 percent of the peak hour 
                fare will be charged for any--
                          ``(i) senior;
                          ``(ii) individual who, because of illness, 
                      injury, age, congenital malfunction, or other 
                      incapacity or temporary or permanent disability 
                      (including an individual who is a wheelchair user 
                      or has semiambulatory capability), cannot use a 
                      public transportation service or a public 
                      transportation facility effectively without 
                      special facilities, planning, or design; and
                          ``(iii) individual presenting a Medicare card 
                      issued to that individual under title II or XVIII 
                      of the Social Security Act (42 U.S.C. 401 et seq. 
                      and 1395 et seq.);
                    ``(E) in carrying out a procurement under this 
                section, will comply with sections 5323 and 5325;
                    ``(F) has complied with subsection (b) of this 
                section;
                    ``(G) has available and will provide the required 
                amounts as provided by subsection (d) of this section;
                    ``(H) will comply with sections 5303 and 5304;
                    ``(I) <<NOTE: Public comment.>> has a locally 
                developed process to solicit and consider public comment 
                before raising a fare or carrying out a major reduction 
                of transportation;
                    ``(J)(i) will expend for each fiscal year for public 
                transportation security projects, including increased 
                lighting in or adjacent to a public transportation 
                system (including bus stops, subway stations, parking 
                lots, and garages), increased camera surveillance of an 
                area in or adjacent to that system, providing an 
                emergency telephone line to contact law enforcement or 
                security personnel in an area in or adjacent to that 
                system, and any other project intended to increase the 
                security and safety of an existing or planned public 
                transportation system, at least 1 percent of the amount 
                the recipient receives for each fiscal year under 
                section 5336 of this title; or
                    ``(ii) has decided that the expenditure for security 
                projects is not necessary;
                    ``(K) in the case of a recipient for an urbanized 
                area with a population of not fewer than 200,000 
                individuals, as determined by the Bureau of the Census--
                          ``(i) will expend not less than 1 percent of 
                      the amount the recipient receives each fiscal year 
                      under this section for associated transit 
                      improvements, as defined in section 5302; and
                          ``(ii) <<NOTE: Reports.>> will submit an 
                      annual report listing projects carried out in the 
                      preceding fiscal year with those funds; and
                    ``(L) will comply with section 5329(d); and
            ``(2) the Secretary accepts the certification.

    ``(d) Government Share of Costs.--
            ``(1) Capital projects.--A grant for a capital project under 
        this section shall be for 80 percent of the net project cost

[[Page 126 STAT. 655]]

        of the project. The recipient may provide additional local 
        matching amounts.
            ``(2) Operating expenses.--A grant for operating expenses 
        under this section may not exceed 50 percent of the net project 
        cost of the project.
            ``(3) Remaining costs.--Subject to paragraph (4), the 
        remainder of the net project costs shall be provided--
                    ``(A) in cash from non-Government sources other than 
                revenues from providing public transportation services;
                    ``(B) from revenues from the sale of advertising and 
                concessions;
                    ``(C) from an undistributed cash surplus, a 
                replacement or depreciation cash fund or reserve, or new 
                capital;
                    ``(D) from amounts appropriated or otherwise made 
                available to a department or agency of the Government 
                (other than the Department of Transportation) that are 
                eligible to be expended for transportation; and
                    ``(E) from amounts received under a service 
                agreement with a State or local social service agency or 
                private social service organization.
            ``(4) Use of certain funds.--For purposes of subparagraphs 
        (D) and (E) of paragraph (3), the prohibitions on the use of 
        funds for matching requirements under section 403(a)(5)(C)(vii) 
        of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall 
        not apply to Federal or State funds to be used for 
        transportation purposes.

    ``(e) Undertaking Projects in Advance.--
            ``(1) Payment.--The Secretary may pay the Government share 
        of the net project cost to a State or local governmental 
        authority that carries out any part of a project eligible under 
        subparagraph (A) or (B) of subsection (a)(1) without the aid of 
        amounts of the Government and according to all applicable 
        procedures and requirements if--
                    ``(A) the recipient applies for the payment;
                    ``(B) the Secretary approves the payment; and
                    ``(C) before carrying out any part of the project, 
                the Secretary approves the plans and specifications for 
                the part in the same way as for other projects under 
                this section.
            ``(2) Approval of application.--The Secretary may approve an 
        application under paragraph (1) of this subsection only if an 
        authorization for this section is in effect for the fiscal year 
        to which the application applies. The Secretary may not approve 
        an application if the payment will be more than--
                    ``(A) the recipient's expected apportionment under 
                section 5336 of this title if the total amount 
                authorized to be appropriated for the fiscal year to 
                carry out this section is appropriated; less
                    ``(B) the maximum amount of the apportionment that 
                may be made available for projects for operating 
                expenses under this section.
            ``(3) Financing costs.--
                    ``(A) In general.--The cost of carrying out part of 
                a project includes the amount of interest earned and 
                payable on bonds issued by the recipient to the extent 
                proceeds of the bonds are expended in carrying out the 
                part.

[[Page 126 STAT. 656]]

                    ``(B) Limitation on the amount of interest.--The 
                amount of interest allowed under this paragraph may not 
                be more than the most favorable financing terms 
                reasonably available for the project at the time of 
                borrowing.
                    ``(C) Certification.--The applicant shall certify, 
                in a manner satisfactory to the Secretary, that the 
                applicant has shown reasonable diligence in seeking the 
                most favorable financing terms.

    ``(f) Reviews, Audits, and Evaluations.--
            ``(1) Annual review.--
                    ``(A) In general.--At least annually, the Secretary 
                shall carry out, or require a recipient to have carried 
                out independently, reviews and audits the Secretary 
                considers appropriate to establish whether the recipient 
                has carried out--
                          ``(i) the activities proposed under subsection 
                      (c) of this section in a timely and effective way 
                      and can continue to do so; and
                          ``(ii) those activities and its certifications 
                      and has used amounts of the Government in the way 
                      required by law.
                    ``(B) Auditing procedures.--An audit of the use of 
                amounts of the Government shall comply with the auditing 
                procedures of the Comptroller General.
            ``(2) Triennial review.--At least once every 3 years, the 
        Secretary shall review and evaluate completely the performance 
        of a recipient in carrying out the recipient's program, 
        specifically referring to compliance with statutory and 
        administrative requirements and the extent to which actual 
        program activities are consistent with the activities proposed 
        under subsection (c) of this section and the planning process 
        required under sections 5303, 5304, and 5305 of this title. To 
        the extent practicable, the Secretary shall coordinate such 
        reviews with any related State or local reviews.
            ``(3) Actions resulting from review, audit, or evaluation.--
        The Secretary may take appropriate action consistent with a 
        review, audit, and evaluation under this subsection, including 
        making an appropriate adjustment in the amount of a grant or 
        withdrawing the grant.

    ``(g) Treatment.--For purposes of this section, the United States 
Virgin Islands shall be treated as an urbanized area, as defined in 
section 5302.
    ``(h) Passenger Ferry Grants.--
            ``(1) In general.--The Secretary may make grants under this 
        subsection to recipients for passenger ferry projects that are 
        eligible for a grant under subsection (a).
            ``(2) Grant requirements.--Except as otherwise provided in 
        this subsection, a grant under this subsection shall be subject 
        to the same terms and conditions as a grant under subsection 
        (a).
            ``(3) Competitive process.--The Secretary shall solicit 
        grant applications and make grants for eligible projects on a 
        competitive basis.''.
SEC. 20008. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS.

    (a) In General.--Section 5309 of title 49, United States Code, is 
amended to read as follows:

[[Page 126 STAT. 657]]

``Sec. 5309. Fixed guideway capital investment grants

    ``(a) Definitions.--In this section, the following definitions shall 
apply:
            ``(1) Applicant.--The term `applicant' means a State or 
        local governmental authority that applies for a grant under this 
        section.
            ``(2) Core capacity improvement project.--The term `core 
        capacity improvement project' means a substantial corridor-based 
        capital investment in an existing fixed guideway system that 
        increases the capacity of a corridor by not less than 10 
        percent. The term does not include project elements designed to 
        maintain a state of good repair of the existing fixed guideway 
        system.
            ``(3) Corridor-based bus rapid transit project.--The term 
        `corridor-based bus rapid transit project' means a small start 
        project utilizing buses in which the project represents a 
        substantial investment in a defined corridor as demonstrated by 
        features that emulate the services provided by rail fixed 
        guideway public transportation systems, including defined 
        stations; traffic signal priority for public transportation 
        vehicles; short headway bidirectional services for a substantial 
        part of weekdays and weekend days; and any other features the 
        Secretary may determine support a long-term corridor investment, 
        but the majority of which does not operate in a separated right-
        of-way dedicated for public transportation use during peak 
        periods.
            ``(4) Fixed guideway bus rapid transit project.--The term 
        `fixed guideway bus rapid transit project' means a bus capital 
        project--
                    ``(A) in which the majority of the project operates 
                in a separated right-of-way dedicated for public 
                transportation use during peak periods;
                    ``(B) that represents a substantial investment in a 
                single route in a defined corridor or subarea; and
                    ``(C) that includes features that emulate the 
                services provided by rail fixed guideway public 
                transportation systems, including--
                          ``(i) defined stations;
                          ``(ii) traffic signal priority for public 
                      transportation vehicles;
                          ``(iii) short headway bidirectional services 
                      for a substantial part of weekdays and weekend 
                      days; and
                          ``(iv) any other features the Secretary may 
                      determine are necessary to produce high-quality 
                      public transportation services that emulate the 
                      services provided by rail fixed guideway public 
                      transportation systems.
            ``(5) New fixed guideway capital project.--The term `new 
        fixed guideway capital project' means--
                    ``(A) a new fixed guideway project that is a minimum 
                operable segment or extension to an existing fixed 
                guideway system; or
                    ``(B) a fixed guideway bus rapid transit project 
                that is a minimum operable segment or an extension to an 
                existing bus rapid transit system.

[[Page 126 STAT. 658]]

            ``(6) Program of interrelated projects.--The term `program 
        of interrelated projects' means the simultaneous development 
        of--
                    ``(A) 2 or more new fixed guideway capital projects 
                or core capacity improvement projects; or
                    ``(B) 1 or more new fixed guideway capital projects 
                and 1 or more core capacity improvement projects.
            ``(7) Small start project.--The term `small start project' 
        means a new fixed guideway capital project or corridor-based bus 
        rapid transit project for which--
                    ``(A) the Federal assistance provided or to be 
                provided under this section is less than $75,000,000; 
                and
                    ``(B) the total estimated net capital cost is less 
                than $250,000,000.

    ``(b) General Authority.--The Secretary may make grants under this 
section to State and local governmental authorities to assist in 
financing--
            ``(1) new fixed guideway capital projects or small start 
        projects, including the acquisition of real property, the 
        initial acquisition of rolling stock for the system, the 
        acquisition of rights-of-way, and relocation, for fixed guideway 
        corridor development for projects in the advanced stages of 
        project development or engineering; and
            ``(2) core capacity improvement projects, including the 
        acquisition of real property, the acquisition of rights-of-way, 
        double tracking, signalization improvements, electrification, 
        expanding system platforms, acquisition of rolling stock 
        associated with corridor improvements increasing capacity, 
        construction of infill stations, and such other capacity 
        improvement projects as the Secretary determines are appropriate 
        to increase the capacity of an existing fixed guideway system 
        corridor by at least 10 percent. Core capacity improvement 
        projects do not include elements to improve general station 
        facilities or parking, or acquisition of rolling stock alone.

    ``(c) Grant Requirements.--
            ``(1) In general.--The Secretary may make a grant under this 
        section for new fixed guideway capital projects, small start 
        projects, or core capacity improvement projects, if the 
        Secretary determines that--
                    ``(A) the project is part of an approved 
                transportation plan required under sections 5303 and 
                5304; and
                    ``(B) the applicant has, or will have--
                          ``(i) the legal, financial, and technical 
                      capacity to carry out the project, including the 
                      safety and security aspects of the project;
                          ``(ii) satisfactory continuing control over 
                      the use of the equipment or facilities; and
                          ``(iii) the technical and financial capacity 
                      to maintain new and existing equipment and 
                      facilities.
            ``(2) Certification.--An applicant that has submitted the 
        certifications required under subparagraphs (A), (B), (C), and 
        (H) of section 5307(c)(1) shall be deemed to have provided 
        sufficient information upon which the Secretary may make the 
        determinations required under this subsection.
            ``(3) Technical capacity.--The Secretary shall use an 
        expedited technical capacity review process for applicants that 
        have recently and successfully completed at least 1 new fixed

[[Page 126 STAT. 659]]

        guideway capital project, or core capacity improvement project, 
        if--
                    ``(A) the applicant achieved budget, cost, and 
                ridership outcomes for the project that are consistent 
                with or better than projections; and
                    ``(B) the applicant demonstrates that the applicant 
                continues to have the staff expertise and other 
                resources necessary to implement a new project.
            ``(4) Recipient requirements.--A recipient of a grant 
        awarded under this section shall be subject to all terms, 
        conditions, requirements, and provisions that the Secretary 
        determines to be necessary or appropriate for purposes of this 
        section.

    ``(d) New Fixed Guideway Grants.--
            ``(1) Project development phase.--
                    ``(A) <<NOTE: Notifications.>> Entrance into project 
                development phase.--A new fixed guideway capital project 
                shall enter into the project development phase when--
                          ``(i) the applicant--
                                    ``(I) submits a letter to the 
                                Secretary describing the project and 
                                requesting entry into the project 
                                development phase; and
                                    ``(II) initiates activities required 
                                to be carried out under the National 
                                Environmental Policy Act of 1969 (42 
                                U.S.C. 4321 et seq.) with respect to the 
                                project; and
                          ``(ii) the Secretary--
                                    ``(I) <<NOTE: Deadline.>> responds 
                                in writing to the applicant within 45 
                                days whether the information provided is 
                                sufficient to enter into the project 
                                development phase, including, when 
                                necessary, a detailed description of any 
                                information deemed insufficient; and
                                    ``(II) provides concurrent notice to 
                                the Committee on Banking, Housing, and 
                                Urban Affairs of the Senate and the 
                                Committee on Transportation and 
                                Infrastructure of the House of 
                                Representatives of whether the new fixed 
                                guideway capital project is entering the 
                                project development phase.
                    ``(B) Activities during project development phase.--
                Concurrent with the analysis required to be made under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), each applicant shall develop sufficient 
                information to enable the Secretary to make findings of 
                project justification, policies and land use patterns 
                that promote public transportation, and local financial 
                commitment under this subsection.
                    ``(C) Completion of project development activities 
                required.--
                          ``(i) <<NOTE: Deadline.>> In general.--Not 
                      later than 2 years after the date on which a 
                      project enters into the project development phase, 
                      the applicant shall complete the activities 
                      required to obtain a project rating under 
                      subsection (g)(2) and submit completed 
                      documentation to the Secretary.
                          ``(ii) Extension of time.--Upon the request of 
                      an applicant, the Secretary may extend the time 
                      period

[[Page 126 STAT. 660]]

                      under clause (i), if the applicant submits to the 
                      Secretary--
                                    ``(I) a reasonable plan for 
                                completing the activities required under 
                                this paragraph; and
                                    ``(II) an estimated time period 
                                within which the applicant will complete 
                                such activities.
            ``(2) Engineering phase.--
                    ``(A) <<NOTE: Determination.>> In general.--A new 
                fixed guideway capital project may advance to the 
                engineering phase upon completion of activities required 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.), as demonstrated by a record of 
                decision with respect to the project, a finding that the 
                project has no significant impact, or a determination 
                that the project is categorically excluded, only if the 
                Secretary determines that the project--
                          ``(i) is selected as the locally preferred 
                      alternative at the completion of the process 
                      required under the National Environmental Policy 
                      Act of 1969 (42 U.S.C. 4321 et seq.);
                          ``(ii) is adopted into the metropolitan 
                      transportation plan required under section 5303;
                          ``(iii) is justified based on a comprehensive 
                      review of the project's mobility improvements, the 
                      project's environmental benefits, congestion 
                      relief associated with the project, economic 
                      development effects associated with the project, 
                      policies and land use patterns of the project that 
                      support public transportation, and the project's 
                      cost-effectiveness as measured by cost per rider;
                          ``(iv) is supported by policies and land use 
                      patterns that promote public transportation, 
                      including plans for future land use and rezoning, 
                      and economic development around public 
                      transportation stations; and
                          ``(v) is supported by an acceptable degree of 
                      local financial commitment (including evidence of 
                      stable and dependable financing sources), as 
                      required under subsection (f).
                    ``(B) <<NOTE: Evaluation.>> Determination that 
                project is justified.--In making a determination under 
                subparagraph (A)(iii), the Secretary shall evaluate, 
                analyze, and consider--
                          ``(i) the reliability of the forecasting 
                      methods used to estimate costs and utilization 
                      made by the recipient and the contractors to the 
                      recipient; and
                          ``(ii) population density and current public 
                      transportation ridership in the transportation 
                      corridor.

    ``(e) Core Capacity Improvement Projects.--
            ``(1) Project development phase.--
                    ``(A) <<NOTE: Notifications.>> Entrance into project 
                development phase.--A core capacity improvement project 
                shall be deemed to have entered into the project 
                development phase if--
                          ``(i) the applicant--
                                    ``(I) submits a letter to the 
                                Secretary describing the project and 
                                requesting entry into the project 
                                development phase; and
                                    ``(II) initiates activities required 
                                to be carried out under the National 
                                Environmental Policy Act

[[Page 126 STAT. 661]]

                                of 1969 (42 U.S.C. 4321 et seq.) with 
                                respect to the project; and
                          ``(ii) the Secretary--
                                    ``(I) <<NOTE: Deadline.>> responds 
                                in writing to the applicant within 45 
                                days whether the information provided is 
                                sufficient to enter into the project 
                                development phase, including when 
                                necessary a detailed description of any 
                                information deemed insufficient; and
                                    ``(II) provides concurrent notice to 
                                the Committee on Banking, Housing, and 
                                Urban Affairs of the Senate and the 
                                Committee on Transportation and 
                                Infrastructure of the House of 
                                Representatives of whether the core 
                                capacity improvement project is entering 
                                the project development phase.
                    ``(B) Activities during project development phase.--
                Concurrent with the analysis required to be made under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), each applicant shall develop sufficient 
                information to enable the Secretary to make findings of 
                project justification and local financial commitment 
                under this subsection.
                    ``(C) Completion of project development activities 
                required.--
                          ``(i) <<NOTE: Deadline.>> In general.--Not 
                      later than 2 years after the date on which a 
                      project enters into the project development phase, 
                      the applicant shall complete the activities 
                      required to obtain a project rating under 
                      subsection (g)(2) and submit completed 
                      documentation to the Secretary.
                          ``(ii) Extension of time.--Upon the request of 
                      an applicant, the Secretary may extend the time 
                      period under clause (i), if the applicant submits 
                      to the Secretary--
                                    ``(I) a reasonable plan for 
                                completing the activities required under 
                                this paragraph; and
                                    ``(II) an estimated time period 
                                within which the applicant will complete 
                                such activities.
            ``(2) Engineering phase.--
                    ``(A) <<NOTE: Determination.>> In general.--A core 
                capacity improvement project may advance into the 
                engineering phase upon completion of activities required 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.), as demonstrated by a record of 
                decision with respect to the project, a finding that the 
                project has no significant impact, or a determination 
                that the project is categorically excluded, only if the 
                Secretary determines that the project--
                          ``(i) is selected as the locally preferred 
                      alternative at the completion of the process 
                      required under the National Environmental Policy 
                      Act of 1969;
                          ``(ii) is adopted into the metropolitan 
                      transportation plan required under section 5303;
                          ``(iii) is in a corridor that is--
                                    ``(I) at or over capacity; or
                                    ``(II) projected to be at or over 
                                capacity within the next 5 years;

[[Page 126 STAT. 662]]

                          ``(iv) is justified based on a comprehensive 
                      review of the project's mobility improvements, the 
                      project's environmental benefits, congestion 
                      relief associated with the project, economic 
                      development effects associated with the project, 
                      the capacity needs of the corridor, and the 
                      project's cost-effectiveness as measured by cost 
                      per rider; and
                          ``(v) is supported by an acceptable degree of 
                      local financial commitment (including evidence of 
                      stable and dependable financing sources), as 
                      required under subsection (f).
                    ``(B) <<NOTE: Evaluation.>> Determination that 
                project is justified.--In making a determination under 
                subparagraph (A)(iv), the Secretary shall evaluate, 
                analyze, and consider--
                          ``(i) the reliability of the forecasting 
                      methods used to estimate costs and utilization 
                      made by the recipient and the contractors to the 
                      recipient;
                          ``(ii) whether the project will increase 
                      capacity at least 10 percent in a corridor;
                          ``(iii) whether the project will improve 
                      interconnectivity among existing systems; and
                          ``(iv) whether the project will improve 
                      environmental outcomes.

    ``(f) Financing Sources.--
            ``(1) Requirements.--In determining whether a project is 
        supported by an acceptable degree of local financial commitment 
        and shows evidence of stable and dependable financing sources 
        for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the 
        Secretary shall require that--
                    ``(A) the proposed project plan provides for the 
                availability of contingency amounts that the Secretary 
                determines to be reasonable to cover unanticipated cost 
                increases or funding shortfalls;
                    ``(B) each proposed local source of capital and 
                operating financing is stable, reliable, and available 
                within the proposed project timetable; and
                    ``(C) local resources are available to recapitalize, 
                maintain, and operate the overall existing and proposed 
                public transportation system, including essential feeder 
                bus and other services necessary to achieve the 
                projected ridership levels without requiring a reduction 
                in existing public transportation services or level of 
                service to operate the project.
            ``(2) Considerations.--In assessing the stability, 
        reliability, and availability of proposed sources of local 
        financing for purposes of subsection (d)(2)(A)(v) or 
        (e)(2)(A)(v), the Secretary shall consider--
                    ``(A) the reliability of the forecasting methods 
                used to estimate costs and revenues made by the 
                recipient and the contractors to the recipient;
                    ``(B) existing grant commitments;
                    ``(C) the degree to which financing sources are 
                dedicated to the proposed purposes;
                    ``(D) any debt obligation that exists, or is 
                proposed by the recipient, for the proposed project or 
                other public transportation purpose;

[[Page 126 STAT. 663]]

                    ``(E) the extent to which the project has a local 
                financial commitment that exceeds the required non-
                Government share of the cost of the project; and
                    ``(F) private contributions to the project, 
                including cost-effective project delivery, management or 
                transfer of project risks, expedited project schedule, 
                financial partnering, and other public-private 
                partnership strategies.

    ``(g) Project Advancement and Ratings.--
            ``(1) <<NOTE: Determination.>> Project advancement.--A new 
        fixed guideway capital project or core capacity improvement 
        project proposed to be carried out using a grant under this 
        section may not advance from the project development phase to 
        the engineering phase, or from the engineering phase to the 
        construction phase, unless the Secretary determines that--
                    ``(A) the project meets the applicable requirements 
                under this section; and
                    ``(B) there is a reasonable likelihood that the 
                project will continue to meet the requirements under 
                this section.
            ``(2) Ratings.--
                    ``(A) <<NOTE: Evaluation.>> Overall rating.--In 
                making a determination under paragraph (1), the 
                Secretary shall evaluate and rate a project as a whole 
                on a 5-point scale (high, medium-high, medium, medium-
                low, or low) based on--
                          ``(i) in the case of a new fixed guideway 
                      capital project, the project justification 
                      criteria under subsection (d)(2)(A)(iii), the 
                      policies and land use patterns that support public 
                      transportation, and the degree of local financial 
                      commitment; and
                          ``(ii) in the case of a core capacity 
                      improvement project, the capacity needs of the 
                      corridor, the project justification criteria under 
                      subsection (e)(2)(A)(iv), and the degree of local 
                      financial commitment.
                    ``(B) Individual ratings for each criterion.--In 
                rating a project under this paragraph, the Secretary 
                shall--
                          ``(i) provide, in addition to the overall 
                      project rating under subparagraph (A), individual 
                      ratings for each of the criteria established under 
                      subsection (d)(2)(A)(iii) or (e)(2)(A)(iv), as 
                      applicable; and
                          ``(ii) give comparable, but not necessarily 
                      equal, numerical weight to each of the criteria 
                      established under subsections (d)(2)(A)(iii) or 
                      (e)(2)(A)(iv), as applicable, in calculating the 
                      overall project rating under clause (i).
                    ``(C) Medium rating not required.--The Secretary 
                shall not require that any single project justification 
                criterion meet or exceed a `medium' rating in order to 
                advance the project from one phase to another.
            ``(3) Warrants.--The Secretary shall, to the maximum extent 
        practicable, develop and use special warrants for making a 
        project justification determination under subsection (d)(2) or 
        (e)(2), as applicable, for a project proposed to be funded using 
        a grant under this section, if--
                    ``(A) the share of the cost of the project to be 
                provided under this section does not exceed--
                          ``(i) $100,000,000; or
                          ``(ii) 50 percent of the total cost of the 
                      project;
                    ``(B) the applicant requests the use of the 
                warrants;

[[Page 126 STAT. 664]]

                    ``(C) <<NOTE: Certification.>> the applicant 
                certifies that its existing public transportation system 
                is in a state of good repair; and
                    ``(D) the applicant meets any other requirements 
                that the Secretary considers appropriate to carry out 
                this subsection.
            ``(4) Letters of intent and early systems work agreements.--
        In order to expedite a project under this subsection, the 
        Secretary shall, to the maximum extent practicable, issue 
        letters of intent and enter into early systems work agreements 
        upon issuance of a record of decision for projects that receive 
        an overall project rating of medium or better.
            ``(5) Policy guidance.--The Secretary shall issue policy 
        guidance regarding the review and evaluation process and 
        criteria--
                    ``(A) <<NOTE: Deadline.>> not later than 180 days 
                after the date of enactment of the Federal Public 
                Transportation Act of 2012; and
                    ``(B) each time the Secretary makes significant 
                changes to the process and criteria, but not less 
                frequently than once every 2 years.
            ``(6) <<NOTE: Deadline.>> Rules.--Not later than 1 year 
        after the date of enactment of the Federal Public Transportation 
        Act of 2012, the Secretary shall issue rules establishing an 
        evaluation and rating process for--
                    ``(A) new fixed guideway capital projects that is 
                based on the results of project justification, policies 
                and land use patterns that promote public 
                transportation, and local financial commitment, as 
                required under this subsection; and
                    ``(B) core capacity improvement projects that is 
                based on the results of the capacity needs of the 
                corridor, project justification, and local financial 
                commitment.
            ``(7) Applicability.--This subsection shall not apply to a 
        project for which the Secretary issued a letter of intent, 
        entered into a full funding grant agreement, or entered into a 
        project construction agreement before the date of enactment of 
        the Federal Public Transportation Act of 2012.

    ``(h) Small Start Projects.--
            ``(1) In general.--A small start project shall be subject to 
        the requirements of this subsection.
            ``(2) Project development phase.--
                    ``(A) <<NOTE: Notifications.>> Entrance into project 
                development phase.--A new small starts project shall 
                enter into the project development phase when--
                          ``(i) the applicant--
                                    ``(I) submits a letter to the 
                                Secretary describing the project and 
                                requesting entry into the project 
                                development phase; and
                                    ``(II) initiates activities required 
                                to be carried out under the National 
                                Environmental Policy Act of 1969 (42 
                                U.S.C. 4321 et seq.) with respect to the 
                                project; and
                          ``(ii) the Secretary--
                                    ``(I) <<NOTE: Deadline.>> responds 
                                in writing to the applicant within 45 
                                days whether the information provided is 
                                sufficient to enter into the project 
                                development phase, including, when 
                                necessary, a detailed description of any 
                                information deemed insufficient; and

[[Page 126 STAT. 665]]

                                    ``(II) provides concurrent notice to 
                                the Committee on Banking, Housing, and 
                                Urban Affairs of the Senate and the 
                                Committee on Transportation and 
                                Infrastructure of the House of 
                                Representatives of whether the small 
                                starts project is entering the project 
                                development phase.
                    ``(B) Activities during project development phase.--
                Concurrent with the analysis required to be made under 
                the National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), each applicant shall develop sufficient 
                information to enable the Secretary to make findings of 
                project justification, policies and land use patterns 
                that promote public transportation, and local financial 
                commitment under this subsection.
            ``(3) <<NOTE: Determination.>> Selection criteria.--The 
        Secretary may provide Federal assistance for a small start 
        project under this subsection only if the Secretary determines 
        that the project--
                    ``(A) has been adopted as the locally preferred 
                alternative as part of the metropolitan transportation 
                plan required under section 5303;
                    ``(B) is based on the results of an analysis of the 
                benefits of the project as set forth in paragraph (4); 
                and
                    ``(C) is supported by an acceptable degree of local 
                financial commitment.
            ``(4) Evaluation of benefits and federal investment.--In 
        making a determination for a small start project under paragraph 
        (3)(B), the Secretary shall analyze, evaluate, and consider the 
        following evaluation criteria for the project (as compared to a 
        no-action alternative): mobility improvements, environmental 
        benefits, congestion relief, economic development effects 
        associated with the project, policies and land use patterns that 
        support public transportation and cost-effectiveness as measured 
        by cost per rider.
            ``(5) Evaluation of local financial commitment.--For 
        purposes of paragraph (3)(C), the Secretary shall require that 
        each proposed local source of capital and operating financing is 
        stable, reliable, and available within the proposed project 
        timetable.
            ``(6) <<NOTE: Evaluation.>> Ratings.--In carrying out 
        paragraphs (4) and (5) for a small start project, the Secretary 
        shall evaluate and rate the project on a 5-point scale (high, 
        medium-high, medium, medium-low, or low) based on an evaluation 
        of the benefits of the project as compared to the Federal 
        assistance to be provided and the degree of local financial 
        commitment, as required under this subsection. In rating the 
        projects, the Secretary shall provide, in addition to the 
        overall project rating, individual ratings for each of the 
        criteria established by this subsection and shall give 
        comparable, but not necessarily equal, numerical weight to the 
        benefits that the project will bring to the community in 
        calculating the overall project rating.
            ``(7) Grants and expedited grant agreements.--
                    ``(A) In general.--The Secretary, to the maximum 
                extent practicable, shall provide Federal assistance 
                under this subsection in a single grant. If the 
                Secretary cannot provide such a single grant, the 
                Secretary may execute

[[Page 126 STAT. 666]]

                an expedited grant agreement in order to include a 
                commitment on the part of the Secretary to provide 
                funding for the project in future fiscal years.
                    ``(B) Terms of expedited grant agreements.--In 
                executing an expedited grant agreement under this 
                subsection, the Secretary may include in the agreement 
                terms similar to those established under subsection 
                (k)(2).
                    ``(C) Notice of proposed grants and expedited grant 
                agreements.-- <<NOTE: Time period.>> At least 10 days 
                before making a grant award or entering into a grant 
                agreement for a project under this subsection, the 
                Secretary shall notify, in writing, the Committee on 
                Transportation and Infrastructure and the Committee on 
                Appropriations of the House of Representatives and the 
                Committee on Banking, Housing, and Urban Affairs and the 
                Committee on Appropriations of the Senate of the 
                proposed grant or expedited grant agreement, as well as 
                the evaluations and ratings for the project.

    ``(i) Programs of Interrelated Projects.--
            ``(1) Project development phase.--A federally funded project 
        in a program of interrelated projects shall advance through 
        project development as provided in subsection (d) or (e), as 
        applicable.
            ``(2) <<NOTE: Determination.>> Engineering phase.--A 
        federally funded project in a program of interrelated projects 
        may advance into the engineering phase upon completion of 
        activities required under the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a record of 
        decision with respect to the project, a finding that the project 
        has no significant impact, or a determination that the project 
        is categorically excluded, only if the Secretary determines 
        that--
                    ``(A) the project is selected as the locally 
                preferred alternative at the completion of the process 
                required under the National Environmental Policy Act of 
                1969;
                    ``(B) the project is adopted into the metropolitan 
                transportation plan required under section 5303;
                    ``(C) the program of interrelated projects involves 
                projects that have a logical connectivity to one 
                another;
                    ``(D) the program of interrelated projects, when 
                evaluated as a whole, meets the requirements of 
                subsection (d)(2) or (e)(2), as applicable;
                    ``(E) the program of interrelated projects is 
                supported by a program implementation plan demonstrating 
                that construction will begin on each of the projects in 
                the program of interrelated projects within a reasonable 
                time frame; and
                    ``(F) the program of interrelated projects is 
                supported by an acceptable degree of local financial 
                commitment, as described in subsection (f).
            ``(3) Project advancement and ratings.--
                    ``(A) <<NOTE: Determination.>> Project 
                advancement.--A project receiving a grant under this 
                section that is part of a program of interrelated 
                projects may not advance from the project development 
                phase to the engineering phase, or from the engineering 
                phase to the construction phase, unless the Secretary 
                determines that the program of interrelated projects 
                meets the applicable requirements of this section

[[Page 126 STAT. 667]]

                and there is a reasonable likelihood that the program 
                will continue to meet such requirements.
                    ``(B) Ratings.--
                          ``(i) <<NOTE: Evaluation.>> Overall rating.--
                      In making a determination under subparagraph (A), 
                      the Secretary shall evaluate and rate a program of 
                      interrelated projects on a 5-point scale (high, 
                      medium-high, medium, medium-low, or low) based on 
                      the criteria described in paragraph (2).
                          ``(ii) Individual rating for each criterion.--
                      In rating a program of interrelated projects, the 
                      Secretary shall provide, in addition to the 
                      overall program rating, individual ratings for 
                      each of the criteria described in paragraph (2) 
                      and shall give comparable, but not necessarily 
                      equal, numerical weight to each such criterion in 
                      calculating the overall program rating.
                          ``(iii) Medium rating not required.--The 
                      Secretary shall not require that any single 
                      criterion described in paragraph (2) meet or 
                      exceed a `medium' rating in order to advance the 
                      program of interrelated projects from one phase to 
                      another.
            ``(4) Annual review.--
                    ``(A) Review required.--The Secretary shall annually 
                review the program implementation plan required under 
                paragraph (2)(E) to determine whether the program of 
                interrelated projects is adhering to its schedule.
                    ``(B) Extension of time.--If a program of 
                interrelated projects is not adhering to its schedule, 
                the Secretary may, upon the request of the applicant, 
                grant an extension of time if the applicant submits a 
                reasonable plan that includes--
                          ``(i) evidence of continued adequate funding; 
                      and
                          ``(ii) an estimated time frame for completing 
                      the program of interrelated projects.
                    ``(C) Satisfactory progress required.--If the 
                Secretary determines that a program of interrelated 
                projects is not making satisfactory progress, no Federal 
                funds shall be provided for a project within the program 
                of interrelated projects.
            ``(5) Failure to carry out program of interrelated 
        projects.--
                    ``(A) Repayment required.--If an applicant does not 
                carry out the program of interrelated projects within a 
                reasonable time, for reasons within the control of the 
                applicant, the applicant shall repay all Federal funds 
                provided for the program, and any reasonable interest 
                and penalty charges that the Secretary may establish.
                    ``(B) Crediting of funds received.--Any funds 
                received by the Government under this paragraph, other 
                than interest and penalty charges, shall be credited to 
                the appropriation account from which the funds were 
                originally derived.
            ``(6) Non-federal funds.--Any non-Federal funds committed to 
        a project in a program of interrelated projects may be used to 
        meet a non-Government share requirement for any other project in 
        the program of interrelated projects, if the

[[Page 126 STAT. 668]]

        Government share of the cost of each project within the program 
        of interrelated projects does not exceed 80 percent.
            ``(7) Priority.--In making grants under this section, the 
        Secretary may give priority to programs of interrelated projects 
        for which the non-Government share of the cost of the projects 
        included in the programs of interrelated projects exceeds the 
        non-Government share required under subsection (l).
            ``(8) Non-government projects.--Including a project not 
        financed by the Government in a program of interrelated projects 
        does not impose Government requirements that would not otherwise 
        apply to the project.

    ``(j) Previously Issued Letter of Intent or Full Funding Grant 
Agreement.--Subsections (d) and (e) shall not apply to projects for 
which the Secretary has issued a letter of intent, approved entry into 
final design, entered into a full funding grant agreement, or entered 
into a project construction grant agreement before the date of enactment 
of the Federal Public Transportation Act of 2012.
    ``(k) Letters of Intent, Full Funding Grant Agreements, and Early 
Systems Work Agreements.--
            ``(1) Letters of intent.--
                    ``(A) Amounts intended to be obligated.--The 
                Secretary may issue a letter of intent to an applicant 
                announcing an intention to obligate, for a new fixed 
                guideway capital project or core capacity improvement 
                project, an amount from future available budget 
                authority specified in law that is not more than the 
                amount stipulated as the financial participation of the 
                Secretary in the project. When a letter is issued for a 
                capital project under this section, the amount shall be 
                sufficient to complete at least an operable segment.
                    ``(B) Treatment.--The issuance of a letter under 
                subparagraph (A) is deemed not to be an obligation under 
                sections 1108(c), 1501, and 1502(a) of title 31 or an 
                administrative commitment.
            ``(2) Full funding grant agreements.--
                    ``(A) In general.--A new fixed guideway capital 
                project or core capacity improvement project shall be 
                carried out through a full funding grant agreement.
                    ``(B) Criteria.--The Secretary shall enter into a 
                full funding grant agreement, based on the evaluations 
                and ratings required under subsection (d), (e), or (i), 
                as applicable, with each grantee receiving assistance 
                for a new fixed guideway capital project or core 
                capacity improvement project that has been rated as 
                high, medium-high, or medium, in accordance with 
                subsection (g)(2)(A) or (i)(3)(B), as applicable.
                    ``(C) Terms.--A full funding grant agreement shall--
                          ``(i) establish the terms of participation by 
                      the Government in a new fixed guideway capital 
                      project or core capacity improvement project;
                          ``(ii) establish the maximum amount of Federal 
                      financial assistance for the project;
                          ``(iii) include the period of time for 
                      completing the project, even if that period 
                      extends beyond the period of an authorization; and

[[Page 126 STAT. 669]]

                          ``(iv) make timely and efficient management of 
                      the project easier according to the law of the 
                      United States.
                    ``(D) Special financial rules.--
                          ``(i) In general.--A full funding grant 
                      agreement under this paragraph obligates an amount 
                      of available budget authority specified in law and 
                      may include a commitment, contingent on amounts to 
                      be specified in law in advance for commitments 
                      under this paragraph, to obligate an additional 
                      amount from future available budget authority 
                      specified in law.
                          ``(ii) Statement of contingent commitment.--
                      The agreement shall state that the contingent 
                      commitment is not an obligation of the Government.
                          ``(iii) Interest and other financing costs.--
                      Interest and other financing costs of efficiently 
                      carrying out a part of the project within a 
                      reasonable time are a cost of carrying out the 
                      project under a full funding grant agreement, 
                      except that eligible costs may not be more than 
                      the cost of the most favorable financing terms 
                      reasonably available for the project at the time 
                      of borrowing. <<NOTE: Certification.>> The 
                      applicant shall certify, in a way satisfactory to 
                      the Secretary, that the applicant has shown 
                      reasonable diligence in seeking the most favorable 
                      financing terms.
                          ``(iv) Completion of operable segment.--The 
                      amount stipulated in an agreement under this 
                      paragraph for a new fixed guideway capital project 
                      shall be sufficient to complete at least an 
                      operable segment.
                    ``(E) Before and after study.--
                          ``(i) In general.--A full funding grant 
                      agreement under this paragraph shall require the 
                      applicant to conduct a study that--
                                    ``(I) describes and analyzes the 
                                impacts of the new fixed guideway 
                                capital project or core capacity 
                                improvement project on public 
                                transportation services and public 
                                transportation ridership;
                                    ``(II) evaluates the consistency of 
                                predicted and actual project 
                                characteristics and performance; and
                                    ``(III) identifies reasons for 
                                differences between predicted and actual 
                                outcomes.
                          ``(ii) Information collection and analysis 
                      plan.--
                                    ``(I) Submission of plan.--
                                Applicants seeking a full funding grant 
                                agreement under this paragraph shall 
                                submit a complete plan for the 
                                collection and analysis of information 
                                to identify the impacts of the new fixed 
                                guideway capital project or core 
                                capacity improvement project and the 
                                accuracy of the forecasts prepared 
                                during the development of the project. 
                                Preparation of this plan shall be 
                                included in the full funding grant 
                                agreement as an eligible activity.
                                    ``(II) Contents of plan.--The plan 
                                submitted under subclause (I) shall 
                                provide for--
                                            ``(aa) collection of data on 
                                        the current public 
                                        transportation system regarding 
                                        public

[[Page 126 STAT. 670]]

                                        transportation service levels 
                                        and ridership patterns, 
                                        including origins and 
                                        destinations, access modes, trip 
                                        purposes, and rider 
                                        characteristics;
                                            ``(bb) documentation of the 
                                        predicted scope, service levels, 
                                        capital costs, operating costs, 
                                        and ridership of the project;
                                            ``(cc) collection of data on 
                                        the public transportation system 
                                        2 years after the opening of a 
                                        new fixed guideway capital 
                                        project or core capacity 
                                        improvement project, including 
                                        analogous information on public 
                                        transportation service levels 
                                        and ridership patterns and 
                                        information on the as-built 
                                        scope, capital, and financing 
                                        costs of the project; and
                                            ``(dd) analysis of the 
                                        consistency of predicted project 
                                        characteristics with actual 
                                        outcomes.
                    ``(F) Collection of data on current system.--To be 
                eligible for a full funding grant agreement under this 
                paragraph, recipients shall have collected data on the 
                current system, according to the plan required under 
                subparagraph (E)(ii), before the beginning of 
                construction of the proposed new fixed guideway capital 
                project or core capacity improvement project. Collection 
                of this data shall be included in the full funding grant 
                agreement as an eligible activity.
            ``(3) Early systems work agreements.--
                    ``(A) Conditions.--The Secretary may enter into an 
                early systems work agreement with an applicant if a 
                record of decision under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been 
                issued on the project and the Secretary finds there is 
                reason to believe--
                          ``(i) a full funding grant agreement for the 
                      project will be made; and
                          ``(ii) the terms of the work agreement will 
                      promote ultimate completion of the project more 
                      rapidly and at less cost.
                    ``(B) Contents.--
                          ``(i) In general.--An early systems work 
                      agreement under this paragraph obligates budget 
                      authority available under this chapter and title 
                      23 and shall provide for reimbursement of 
                      preliminary costs of carrying out the project, 
                      including land acquisition, timely procurement of 
                      system elements for which specifications are 
                      decided, and other activities the Secretary 
                      decides are appropriate to make efficient, long-
                      term project management easier.
                          ``(ii) Contingent commitment.--An early 
                      systems work agreement may include a commitment, 
                      contingent on amounts to be specified in law in 
                      advance for commitments under this paragraph, to 
                      obligate an additional amount from future 
                      available budget authority specified in law.
                          ``(iii) Period covered.--An early systems work 
                      agreement under this paragraph shall cover the 
                      period

[[Page 126 STAT. 671]]

                      of time the Secretary considers appropriate. The 
                      period may extend beyond the period of current 
                      authorization.
                          ``(iv) Interest and other financing costs.--
                      Interest and other financing costs of efficiently 
                      carrying out the early systems work agreement 
                      within a reasonable time are a cost of carrying 
                      out the agreement, except that eligible costs may 
                      not be more than the cost of the most favorable 
                      financing terms reasonably available for the 
                      project at the time of 
                      borrowing. <<NOTE: Certification.>> The applicant 
                      shall certify, in a way satisfactory to the 
                      Secretary, that the applicant has shown reasonable 
                      diligence in seeking the most favorable financing 
                      terms.
                          ``(v) Failure to carry out project.--If an 
                      applicant does not carry out the project for 
                      reasons within the control of the applicant, the 
                      applicant shall repay all Federal grant funds 
                      awarded for the project from all Federal funding 
                      sources, for all project activities, facilities, 
                      and equipment, plus reasonable interest and 
                      penalty charges allowable by law or established by 
                      the Secretary in the early systems work agreement.
                          ``(vi) Crediting of funds received.--Any funds 
                      received by the Government under this paragraph, 
                      other than interest and penalty charges, shall be 
                      credited to the appropriation account from which 
                      the funds were originally derived.
            ``(4) Limitation on amounts.--
                    ``(A) In general.--The Secretary may enter into full 
                funding grant agreements under this subsection for new 
                fixed guideway capital projects and core capacity 
                improvement projects that contain contingent commitments 
                to incur obligations in such amounts as the Secretary 
                determines are appropriate.
                    ``(B) Appropriation required.--An obligation may be 
                made under this subsection only when amounts are 
                appropriated for the obligation.
            ``(5) <<NOTE: Deadline.>> Notification to congress.--At 
        least 30 days before issuing a letter of intent, entering into a 
        full funding grant agreement, or entering into an early systems 
        work agreement under this section, the Secretary shall notify, 
        in writing, the Committee on Banking, Housing, and Urban Affairs 
        and the Committee on Appropriations of the Senate and the 
        Committee on Transportation and Infrastructure and the Committee 
        on Appropriations of the House of Representatives of the 
        proposed letter or agreement. <<NOTE: Records.>> The Secretary 
        shall include with the notification a copy of the proposed 
        letter or agreement as well as the evaluations and ratings for 
        the project.

    ``(l) Government Share of Net Capital Project Cost.--
            ``(1) In general.--Based on engineering studies, studies of 
        economic feasibility, and information on the expected use of 
        equipment or facilities, the Secretary shall estimate the net 
        capital project cost. A grant for a fixed guideway project or 
        small start project shall not exceed 80 percent of the net 
        capital project cost. A grant for a core capacity project shall 
        not exceed 80 percent of the net capital project cost of the 
        incremental cost of increasing the capacity in the corridor.

[[Page 126 STAT. 672]]

            ``(2) Adjustment for completion under budget.--The Secretary 
        may adjust the final net capital project cost of a new fixed 
        guideway capital project or core capacity improvement project 
        evaluated under subsection (d), (e), or (i) to include the cost 
        of eligible activities not included in the originally defined 
        project if the Secretary determines that the originally defined 
        project has been completed at a cost that is significantly below 
        the original estimate.
            ``(3) Maximum government share.--The Secretary may provide a 
        higher grant percentage than requested by the grant recipient 
        if--
                    ``(A) the Secretary determines that the net capital 
                project cost of the project is not more than 10 percent 
                higher than the net capital project cost estimated at 
                the time the project was approved for advancement into 
                the engineering phase; and
                    ``(B) the ridership estimated for the project is not 
                less than 90 percent of the ridership estimated for the 
                project at the time the project was approved for 
                advancement into the engineering phase.
            ``(4) Remainder of net capital project cost.--The remainder 
        of the net capital project cost shall be provided from an 
        undistributed cash surplus, a replacement or depreciation cash 
        fund or reserve, or new capital.
            ``(5) Limitation on statutory construction.--Nothing in this 
        section shall be construed as authorizing the Secretary to 
        require a non-Federal financial commitment for a project that is 
        more than 20 percent of the net capital project cost.
            ``(6) Special rule for rolling stock costs.--In addition to 
        amounts allowed pursuant to paragraph (1), a planned extension 
        to a fixed guideway system may include the cost of rolling stock 
        previously purchased if the applicant satisfies the Secretary 
        that only amounts other than amounts provided by the Government 
        were used and that the purchase was made for use on the 
        extension. A refund or reduction of the remainder may be made 
        only if a refund of a proportional amount of the grant of the 
        Government is made at the same time.
            ``(7) Limitation on applicability.--This subsection shall 
        not apply to projects for which the Secretary entered into a 
        full funding grant agreement before the date of enactment of the 
        Federal Public Transportation Act of 2012.
            ``(8) Special rule for fixed guideway bus rapid transit 
        projects.--For up to three fixed-guideway bus rapid transit 
        projects each fiscal year the Secretary shall--
                    ``(A) establish a Government share of at least 80 
                percent; and
                    ``(B) not lower the project's rating for degree of 
                local financial commitment for purposes of subsections 
                (d)(2)(A)(v) or (h)(3)(C) as a result of the Government 
                share specified in this paragraph.

    ``(m) Undertaking Projects in Advance.--
            ``(1) In general.--The Secretary may pay the Government 
        share of the net capital project cost to a State or local 
        governmental authority that carries out any part of a project 
        described in this section without the aid of amounts of the 
        Government and according to all applicable procedures and 
        requirements if--

[[Page 126 STAT. 673]]

                    ``(A) the State or local governmental authority 
                applies for the payment;
                    ``(B) the Secretary approves the payment; and
                    ``(C) before the State or local governmental 
                authority carries out the part of the project, the 
                Secretary approves the plans and specifications for the 
                part in the same way as other projects under this 
                section.
            ``(2) Financing costs.--
                    ``(A) In general.--The cost of carrying out part of 
                a project includes the amount of interest earned and 
                payable on bonds issued by the State or local 
                governmental authority to the extent proceeds of the 
                bonds are expended in carrying out the part.
                    ``(B) Limitation on amount of interest.--The amount 
                of interest under this paragraph may not be more than 
                the most favorable interest terms reasonably available 
                for the project at the time of borrowing.
                    ``(C) Certification.--The applicant shall certify, 
                in a manner satisfactory to the Secretary, that the 
                applicant has shown reasonable diligence in seeking the 
                most favorable financing terms.

    ``(n) Availability of Amounts.--
            ``(1) In general.--An amount made available or appropriated 
        for a new fixed guideway capital project or core capacity 
        improvement project shall remain available to that project for 5 
        fiscal years, including the fiscal year in which the amount is 
        made available or appropriated. Any amounts that are unobligated 
        to the project at the end of the 5-fiscal-year period may be 
        used by the Secretary for any purpose under this section.
            ``(2) Use of deobligated amounts.--An amount available under 
        this section that is deobligated may be used for any purpose 
        under this section.

    ``(o) Reports on New Fixed Guideway and Core Capacity Improvement 
Projects.--
            ``(1) Annual report on funding recommendations.--Not later 
        than the first Monday in February of each year, the Secretary 
        shall submit to the Committee on Banking, Housing, and Urban 
        Affairs and the Committee on Appropriations of the Senate and 
        the Committee on Transportation and Infrastructure and the 
        Committee on Appropriations of the House of Representatives a 
        report that includes--
                    ``(A) a proposal of allocations of amounts to be 
                available to finance grants for projects under this 
                section among applicants for these amounts;
                    ``(B) evaluations and ratings, as required under 
                subsections (d), (e), and (i), for each such project 
                that is in project development, engineering, or has 
                received a full funding grant agreement; and
                    ``(C) recommendations of such projects for funding 
                based on the evaluations and ratings and on existing 
                commitments and anticipated funding levels for the next 
                3 fiscal years based on information currently available 
                to the Secretary.
            ``(2) Reports on before and after studies.--Not later than 
        the first Monday in August of each year, the Secretary shall 
        submit to the committees described in paragraph (1) a

[[Page 126 STAT. 674]]

        report containing a summary of the results of any studies 
        conducted under subsection (k)(2)(E).
            ``(3) Biennial gao review.--The Comptroller General of the 
        United States shall--
                    ``(A) conduct a biennial review of--
                          ``(i) the processes and procedures for 
                      evaluating, rating, and recommending new fixed 
                      guideway capital projects and core capacity 
                      improvement projects; and
                          ``(ii) the Secretary's implementation of such 
                      processes and procedures; and
                    ``(B) report to Congress on the results of such 
                review by May 31 of each year.''.

    (b) <<NOTE: 49 USC 5309 note.>> Pilot Program for Expedited Project 
Delivery.--
            (1) Definitions.--In this subsection the following 
        definitions shall apply:
                    (A) Eligible project.--The term ``eligible project'' 
                means a new fixed guideway capital project or a core 
                capacity improvement project, as those terms are defined 
                in section 5309 of title 49, United States Code, as 
                amended by this section, that has not entered into a 
                full funding grant agreement with the Federal Transit 
                Administration before the date of enactment of the 
                Federal Public Transportation Act of 2012.
                    (B) Program.--The term ``program'' means the pilot 
                program for expedited project delivery established under 
                this subsection.
                    (C) Recipient.--The term ``recipient'' means a 
                recipient of funding under chapter 53 of title 49, 
                United States Code.
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of Transportation.
            (2) Establishment.--The Secretary shall establish and 
        implement a pilot program to demonstrate whether innovative 
        project development and delivery methods or innovative financing 
        arrangements can expedite project delivery for certain 
        meritorious new fixed guideway capital projects and core 
        capacity improvement projects.
            (3) Limitation on number of projects.--The Secretary shall 
        select 3 eligible projects to participate in the program, of 
        which--
                    (A) at least 1 shall be an eligible project 
                requesting more than $100,000,000 in Federal financial 
                assistance under section 5309 of title 49, United States 
                Code; and
                    (B) at least 1 shall be an eligible project 
                requesting less than $100,000,000 in Federal financial 
                assistance under section 5309 of title 49, United States 
                Code.
            (4) Government share.--The Government share of the total 
        cost of an eligible project that participates in the program may 
        not exceed 50 percent.
            (5) Eligibility.--A recipient that desires to participate in 
        the program shall submit to the Secretary an application that 
        contains, at a minimum--
                    (A) identification of an eligible project;
                    (B) a schedule and finance plan for the construction 
                and operation of the eligible project;

[[Page 126 STAT. 675]]

                    (C) an analysis of the efficiencies of the proposed 
                project development and delivery methods or innovative 
                financing arrangement for the eligible project; and
                    (D) a certification that the recipient's existing 
                public transportation system is in a state of good 
                repair.
            (6) Selection criteria.--The Secretary may award a full 
        funding grant agreement under this subsection if the Secretary 
        determines that--
                    (A) the recipient has completed planning and the 
                activities required under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
                    (B) the recipient has the necessary legal, 
                financial, and technical capacity to carry out the 
                eligible project.
            (7) Before and after study and report.--
                    (A) Study required.--A full funding grant agreement 
                under this paragraph shall require a recipient to 
                conduct a study that--
                          (i) describes and analyzes the impacts of the 
                      eligible project on public transportation services 
                      and public transportation ridership;
                          (ii) describes and analyzes the consistency of 
                      predicted and actual benefits and costs of the 
                      innovative project development and delivery 
                      methods or innovative financing for the eligible 
                      project; and
                          (iii) identifies reasons for any differences 
                      between predicted and actual outcomes for the 
                      eligible project.
                    (B) Submission of report.--Not later than 9 months 
                after an eligible project selected to participate in the 
                program begins revenue operations, the recipient shall 
                submit to the Secretary a report on the results of the 
                study under subparagraph (A).
SEC. 20009. MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES.

    Section 5310 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5310. Formula grants for the enhanced mobility of seniors 
                  and individuals with disabilities

    ``(a) Definitions.--In this section, the following definitions shall 
apply:
            ``(1) Recipient.--The term `recipient' means a designated 
        recipient or a State that receives a grant under this section 
        directly.
            ``(2) Subrecipient.--The term `subrecipient' means a State 
        or local governmental authority, a private nonprofit 
        organization, or an operator of public transportation that 
        receives a grant under this section indirectly through a 
        recipient.

    ``(b) General Authority.--
            ``(1) Grants.--The Secretary may make grants under this 
        section to recipients for--
                    ``(A) public transportation projects planned, 
                designed, and carried out to meet the special needs of 
                seniors and individuals with disabilities when public 
                transportation is insufficient, inappropriate, or 
                unavailable;

[[Page 126 STAT. 676]]

                    ``(B) public transportation projects that exceed the 
                requirements of the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12101 et seq.);
                    ``(C) public transportation projects that improve 
                access to fixed route service and decrease reliance by 
                individuals with disabilities on complementary 
                paratransit; and
                    ``(D) alternatives to public transportation that 
                assist seniors and individuals with disabilities with 
                transportation.
            ``(2) Limitations for capital projects.--
                    ``(A) Amount available.--The amount available for 
                capital projects under paragraph (1)(A) shall be not 
                less than 55 percent of the funds apportioned to the 
                recipient under this section.
                    ``(B) Allocation to subrecipients.--A recipient of a 
                grant under paragraph (1)(A) may allocate the amounts 
                provided under the grant to--
                          ``(i) a private nonprofit organization; or
                          ``(ii) a State or local governmental authority 
                      that--
                                    ``(I) is approved by a State to 
                                coordinate services for seniors and 
                                individuals with disabilities; or
                                    ``(II) certifies that there are no 
                                private nonprofit organizations readily 
                                available in the area to provide the 
                                services described in paragraph (1)(A).
            ``(3) Administrative expenses.--A recipient may use not more 
        than 10 percent of the amounts apportioned to the recipient 
        under this section to administer, plan, and provide technical 
        assistance for a project funded under this section.
            ``(4) Eligible capital expenses.--The acquisition of public 
        transportation services is an eligible capital expense under 
        this section.
            ``(5) Coordination.--
                    ``(A) Department of transportation.--To the maximum 
                extent feasible, the Secretary shall coordinate 
                activities under this section with related activities 
                under other Federal departments and agencies.
                    ``(B) Other federal agencies and nonprofit 
                organizations.--A State or local governmental authority 
                or nonprofit organization that receives assistance from 
                Government sources (other than the Department of 
                Transportation) for nonemergency transportation services 
                shall--
                          ``(i) participate and coordinate with 
                      recipients of assistance under this chapter in the 
                      design and delivery of transportation services; 
                      and
                          ``(ii) participate in the planning for the 
                      transportation services described in clause (i).
            ``(6) Program of projects.--
                    ``(A) In general.--Amounts made available to carry 
                out this section may be used for transportation projects 
                to assist in providing transportation services for 
                seniors and individuals with disabilities, if such 
                transportation projects are included in a program of 
                projects.
                    ``(B) Submission.--A recipient shall annually submit 
                a program of projects to the Secretary.

[[Page 126 STAT. 677]]

                    ``(C) Assurance.--The program of projects submitted 
                under subparagraph (B) shall contain an assurance that 
                the program provides for the maximum feasible 
                coordination of transportation services assisted under 
                this section with transportation services assisted by 
                other Government sources.
            ``(7) Meal delivery for homebound individuals.--A public 
        transportation service provider that receives assistance under 
        this section or section 5311(c) may coordinate and assist in 
        regularly providing meal delivery service for homebound 
        individuals, if the delivery service does not conflict with 
        providing public transportation service or reduce service to 
        public transportation passengers.

    ``(c) Apportionment and Transfers.--
            ``(1) Formula.--The Secretary shall apportion amounts made 
        available to carry out this section as follows:
                    ``(A) Large urbanized areas.--Sixty percent of the 
                funds shall be apportioned among designated recipients 
                for urbanized areas with a population of 200,000 or more 
                individuals, as determined by the Bureau of the Census, 
                in the ratio that--
                          ``(i) the number of seniors and individuals 
                      with disabilities in each such urbanized area; 
                      bears to
                          ``(ii) the number of seniors and individuals 
                      with disabilities in all such urbanized areas.
                    ``(B) Small urbanized areas.--Twenty percent of the 
                funds shall be apportioned among the States in the ratio 
                that--
                          ``(i) the number of seniors and individuals 
                      with disabilities in urbanized areas with a 
                      population of fewer than 200,000 individuals, as 
                      determined by the Bureau of the Census, in each 
                      State; bears to
                          ``(ii) the number of seniors and individuals 
                      with disabilities in urbanized areas with a 
                      population of fewer than 200,000 individuals, as 
                      determined by the Bureau of the Census, in all 
                      States.
                    ``(C) Rural areas.--Twenty percent of the funds 
                shall be apportioned among the States in the ratio 
                that--
                          ``(i) the number of seniors and individuals 
                      with disabilities in rural areas in each State; 
                      bears to
                          ``(ii) the number of seniors and individuals 
                      with disabilities in rural areas in all States.
            ``(2) Areas served by projects.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B)--
                          ``(i) funds apportioned under paragraph (1)(A) 
                      shall be used for projects serving urbanized areas 
                      with a population of 200,000 or more individuals, 
                      as determined by the Bureau of the Census;
                          ``(ii) funds apportioned under paragraph 
                      (1)(B) shall be used for projects serving 
                      urbanized areas with a population of fewer than 
                      200,000 individuals, as determined by the Bureau 
                      of the Census; and
                          ``(iii) funds apportioned under paragraph 
                      (1)(C) shall be used for projects serving rural 
                      areas.

[[Page 126 STAT. 678]]

                    ``(B) Exceptions.--A State may use funds apportioned 
                to the State under subparagraph (B) or (C) of paragraph 
                (1)--
                          ``(i) for a project serving an area other than 
                      an area specified in subparagraph (A)(ii) or 
                      (A)(iii), as the case may be, if the Governor of 
                      the State certifies that all of the objectives of 
                      this section are being met in the area specified 
                      in subparagraph (A)(ii) or (A)(iii); or
                          ``(ii) for a project anywhere in the State, if 
                      the State has established a statewide program for 
                      meeting the objectives of this section.
                    ``(C) Limited to eligible projects.--Any funds 
                transferred pursuant to subparagraph (B) shall be made 
                available only for eligible projects selected under this 
                section.
                    ``(D) Consultation.--A recipient may transfer an 
                amount under subparagraph (B) only after consulting with 
                responsible local officials, publicly owned operators of 
                public transportation, and nonprofit providers in the 
                area for which the amount was originally apportioned.

    ``(d) Government Share of Costs.--
            ``(1) Capital projects.--A grant for a capital project under 
        this section shall be in an amount equal to 80 percent of the 
        net capital costs of the project, as determined by the 
        Secretary.
            ``(2) Operating assistance.--A grant made under this section 
        for operating assistance may not exceed an amount equal to 50 
        percent of the net operating costs of the project, as determined 
        by the Secretary.
            ``(3) Remainder of net costs.--The remainder of the net 
        costs of a project carried out under this section--
                    ``(A) may be provided from an undistributed cash 
                surplus, a replacement or depreciation cash fund or 
                reserve, a service agreement with a State or local 
                social service agency or a private social service 
                organization, or new capital; and
                    ``(B) may be derived from amounts appropriated or 
                otherwise made available--
                          ``(i) to a department or agency of the 
                      Government (other than the Department of 
                      Transportation) that are eligible to be expended 
                      for transportation; or
                          ``(ii) to carry out the Federal lands highways 
                      program under section 204 of title 23.
            ``(4) Use of certain funds.--For purposes of paragraph 
        (3)(B)(i), the prohibition under section 403(a)(5)(C)(vii) of 
        the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) on the use 
        of grant funds for matching requirements shall not apply to 
        Federal or State funds to be used for transportation purposes.

    ``(e) Grant Requirements.--
            ``(1) In general.--A grant under this section shall be 
        subject to the same requirements as a grant under section 5307, 
        to the extent the Secretary determines appropriate.
            ``(2) Certification requirements.--
                    ``(A) Project selection and plan development.--
                Before receiving a grant under this section, each 
                recipient shall certify that--

[[Page 126 STAT. 679]]

                          ``(i) the projects selected by the recipient 
                      are included in a locally developed, coordinated 
                      public transit-human services transportation plan;
                          ``(ii) the plan described in clause (i) was 
                      developed and approved through a process that 
                      included participation by seniors, individuals 
                      with disabilities, representatives of public, 
                      private, and nonprofit transportation and human 
                      services providers, and other members of the 
                      public; and
                          ``(iii) to the maximum extent feasible, the 
                      services funded under this section will be 
                      coordinated with transportation services assisted 
                      by other Federal departments and agencies, 
                      including any transportation activities carried 
                      out by a recipient of a grant from the Department 
                      of Health and Human Services.
                    ``(B) Allocations to subrecipients.--If a recipient 
                allocates funds received under this section to 
                subrecipients, the recipient shall certify that the 
                funds are allocated on a fair and equitable basis.

    ``(f) Competitive Process for Grants to Subrecipients.--
            ``(1) Areawide solicitations.--A recipient of funds 
        apportioned under subsection (c)(1)(A) may conduct, in 
        cooperation with the appropriate metropolitan planning 
        organization, an areawide solicitation for applications for 
        grants under this section.
            ``(2) Statewide solicitations.--A recipient of funds 
        apportioned under subparagraph (B) or (C) of subsection (c)(1) 
        may conduct a statewide solicitation for applications for grants 
        under this section.
            ``(3) Application.--If the recipient elects to engage in a 
        competitive process, a recipient or subrecipient seeking to 
        receive a grant from funds apportioned under subsection (c) 
        shall submit to the recipient making the election an application 
        in such form and in accordance with such requirements as the 
        recipient making the election shall establish.

    ``(g) Transfers of Facilities and Equipment.--A recipient may 
transfer a facility or equipment acquired using a grant under this 
section to any other recipient eligible to receive assistance under this 
chapter, if--
            ``(1) the recipient in possession of the facility or 
        equipment consents to the transfer; and
            ``(2) the facility or equipment will continue to be used as 
        required under this section.

    ``(h) Performance Measures.--
            ``(1) <<NOTE: Deadline. Reports.>> In general.--Not later 
        than 1 year after the date of enactment of the Federal Public 
        Transportation Act of 2012, the Secretary shall submit a report 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Transportation and Infrastructure of 
        the House of Representatives making recommendations on the 
        establishment of performance measures for grants under this 
        section. Such report shall be developed in consultation with 
        national nonprofit organizations that provide technical 
        assistance and advocacy on issues related to transportation 
        services for seniors and individuals with disabilities.

[[Page 126 STAT. 680]]

            ``(2) Measures.--The performance measures to be considered 
        in the report under paragraph (1) shall require the collection 
        of quantitative and qualitative information, as available, 
        concerning--
                    ``(A) modifications to the geographic coverage of 
                transportation service, the quality of transportation 
                service, or service times that increase the availability 
                of transportation services for seniors and individuals 
                with disabilities;
                    ``(B) ridership;
                    ``(C) accessibility improvements; and
                    ``(D) other measures, as the Secretary determines is 
                appropriate.''.
SEC. 20010. FORMULA GRANTS FOR RURAL AREAS.

    Section 5311 of title 49, United States Code, is amended to read as 
follows:
``Sec. 5311. Formula grants for rural areas

    ``(a) Definitions.--As used in this section, the following 
definitions shall apply:
            ``(1) Recipient.--The term `recipient' means a State or 
        Indian tribe that receives a Federal transit program grant 
        directly from the Government.
            ``(2) Subrecipient.--The term `subrecipient' means a State 
        or local governmental authority, a nonprofit organization, or an 
        operator of public transportation or intercity bus service that 
        receives Federal transit program grant funds indirectly through 
        a recipient.

    ``(b) General Authority.--
            ``(1) Grants authorized.--Except as provided by paragraph 
        (2), the Secretary may award grants under this section to 
        recipients located in rural areas for--
                    ``(A) planning, provided that a grant under this 
                section for planning activities shall be in addition to 
                funding awarded to a State under section 5305 for 
                planning activities that are directed specifically at 
                the needs of rural areas in the State;
                    ``(B) public transportation capital projects;
                    ``(C) operating costs of equipment and facilities 
                for use in public transportation;
                    ``(D) job access and reverse commute projects; and
                    ``(E) the acquisition of public transportation 
                services, including service agreements with private 
                providers of public transportation service.
            ``(2) State program.--
                    ``(A) In general.--A project eligible for a grant 
                under this section shall be included in a State program 
                for public transportation service projects, including 
                agreements with private providers of public 
                transportation service.
                    ``(B) Submission to secretary.--Each State shall 
                submit to the Secretary annually the program described 
                in subparagraph (A).
                    ``(C) Approval.--The Secretary may not approve the 
                program unless the Secretary determines that--
                          ``(i) the program provides a fair distribution 
                      of amounts in the State, including Indian 
                      reservations; and

[[Page 126 STAT. 681]]

                          ``(ii) the program provides the maximum 
                      feasible coordination of public transportation 
                      service assisted under this section with 
                      transportation service assisted by other Federal 
                      sources.
            ``(3) Rural transportation assistance program.--
                    ``(A) In general.--The Secretary shall carry out a 
                rural transportation assistance program in rural areas.
                    ``(B) Grants and contracts.--In carrying out this 
                paragraph, the Secretary may use not more than 2 percent 
                of the amount made available under section 5338(a)(2)(E) 
                to make grants and contracts for transportation 
                research, technical assistance, training, and related 
                support services in rural areas.
                    ``(C) Projects of a national scope.--Not more than 
                15 percent of the amounts available under subparagraph 
                (B) may be used by the Secretary to carry out 
                competitively selected projects of a national scope, 
                with the remaining balance provided to the States.
            ``(4) Data collection.--Each recipient under this section 
        shall submit an annual report to the Secretary containing 
        information on capital investment, operations, and service 
        provided with funds received under this section, including--
                    ``(A) total annual revenue;
                    ``(B) sources of revenue;
                    ``(C) total annual operating costs;
                    ``(D) total annual capital costs;
                    ``(E) fleet size and type, and related facilities;
                    ``(F) vehicle revenue miles; and
                    ``(G) ridership.

    ``(c) Apportionments.--
            ``(1) Public transportation on indian reservations.--Of the 
        amounts made available or appropriated for each fiscal year 
        pursuant to section 5338(a)(2)(E) to carry out this paragraph, 
        the following amounts shall be apportioned each fiscal year for 
        grants to Indian tribes for any purpose eligible under this 
        section, under such terms and conditions as may be established 
        by the Secretary:
                    ``(A) $5,000,000 shall be distributed on a 
                competitive basis by the Secretary.
                    ``(B) $25,000,000 shall be apportioned as formula 
                grants, as provided in subsection (j).
            ``(2) Appalachian development public transportation 
        assistance program.--
                    ``(A) Definitions.--In this paragraph--
                          ``(i) the term `Appalachian region' has the 
                      same meaning as in section 14102 of title 40; and
                          ``(ii) the term `eligible recipient' means a 
                      State that participates in a program established 
                      under subtitle IV of title 40.
                    ``(B) In general.--The Secretary shall carry out a 
                public transportation assistance program in the 
                Appalachian region.
                    ``(C) Apportionment.--Of amounts made available or 
                appropriated for each fiscal year under section 
                5338(a)(2)(E) to carry out this paragraph, the Secretary 
                shall apportion funds to eligible recipients for any 
                purpose eligible under this section, based on the 
                guidelines established under

[[Page 126 STAT. 682]]

                section 9.5(b) of the Appalachian Regional Commission 
                Code.
                    ``(D) Special rule.--An eligible recipient may use 
                amounts that cannot be used for operating expenses under 
                this paragraph for a highway project if--
                          ``(i) that use is approved, in writing, by the 
                      eligible recipient after appropriate notice and an 
                      opportunity for comment and appeal are provided to 
                      affected public transportation providers; and
                          ``(ii) the eligible recipient, in approving 
                      the use of amounts under this subparagraph, 
                      determines that the local transit needs are being 
                      addressed.
            ``(3) Remaining amounts.--
                    ``(A) In general.--The amounts made available or 
                appropriated for each fiscal year pursuant to section 
                5338(a)(2)(E) that are not apportioned under paragraph 
                (1) or (2) shall be apportioned in accordance with this 
                paragraph.
                    ``(B) Apportionment based on land area and 
                population in nonurbanized areas.--
                          ``(i) In general.--83.15 percent of the amount 
                      described in subparagraph (A) shall be apportioned 
                      to the States in accordance with this 
                      subparagraph.
                          ``(ii) Land area.--
                                    ``(I) In general.--Subject to 
                                subclause (II), each State shall receive 
                                an amount that is equal to 20 percent of 
                                the amount apportioned under clause (i), 
                                multiplied by the ratio of the land area 
                                in rural areas in that State and divided 
                                by the land area in all rural areas in 
                                the United States, as shown by the most 
                                recent decennial census of population.
                                    ``(II) Maximum apportionment.--No 
                                State shall receive more than 5 percent 
                                of the amount apportioned under 
                                subclause (I).
                          ``(iii) Population.--Each State shall receive 
                      an amount equal to 80 percent of the amount 
                      apportioned under clause (i), multiplied by the 
                      ratio of the population of rural areas in that 
                      State and divided by the population of all rural 
                      areas in the United States, as shown by the most 
                      recent decennial census of population.
                    ``(C) Apportionment based on land area, vehicle 
                revenue miles, and low-income individuals in 
                nonurbanized areas.--
                          ``(i) In general.--16.85 percent of the amount 
                      described in subparagraph (A) shall be apportioned 
                      to the States in accordance with this 
                      subparagraph.
                          ``(ii) Land area.--Subject to clause (v), each 
                      State shall receive an amount that is equal to 
                      29.68 percent of the amount apportioned under 
                      clause (i), multiplied by the ratio of the land 
                      area in rural areas in that State and divided by 
                      the land area in all rural areas in the United 
                      States, as shown by the most recent decennial 
                      census of population.
                          ``(iii) Vehicle revenue miles.--Subject to 
                      clause (v), each State shall receive an amount 
                      that is equal

[[Page 126 STAT. 683]]

                      to 29.68 percent of the amount apportioned under 
                      clause (i), multiplied by the ratio of vehicle 
                      revenue miles in rural areas in that State and 
                      divided by the vehicle revenue miles in all rural 
                      areas in the United States, as determined by 
                      national transit database reporting.
                          ``(iv) Low-income individuals.--Each State 
                      shall receive an amount that is equal to 40.64 
                      percent of the amount apportioned under clause 
                      (i), multiplied by the ratio of low-income 
                      individuals in rural areas in that State and 
                      divided by the number of low-income individuals in 
                      all rural areas in the United States, as shown by 
                      the Bureau of the Census.
                          ``(v) Maximum apportionment.--No State shall 
                      receive--
                                    ``(I) more than 5 percent of the 
                                amount apportioned under clause (ii); or
                                    ``(II) more than 5 percent of the 
                                amount apportioned under clause (iii).

    ``(d) Use for Local Transportation Service.--A State may use an 
amount apportioned under this section for a project included in a 
program under subsection (b) of this section and eligible for assistance 
under this chapter if the project will provide local transportation 
service, as defined by the Secretary of Transportation, in a rural area.
    ``(e) Use for Administration, Planning, and Technical Assistance.--
The Secretary may allow a State to use not more than 10 percent of the 
amount apportioned under this section to administer this section and 
provide technical assistance to a subrecipient, including project 
planning, program and management development, coordination of public 
transportation programs, and research the State considers appropriate to 
promote effective delivery of public transportation to a rural area.
    ``(f) Intercity Bus Transportation.--
            ``(1) In general.--A State shall expend at least 15 percent 
        of the amount made available in each fiscal year to carry out a 
        program to develop and support intercity bus transportation. 
        Eligible activities under the program include--
                    ``(A) planning and marketing for intercity bus 
                transportation;
                    ``(B) capital grants for intercity bus facilities;
                    ``(C) joint-use facilities;
                    ``(D) operating grants through purchase-of-service 
                agreements, user-side subsidies, and demonstration 
                projects; and
                    ``(E) coordinating rural connections between small 
                public transportation operations and intercity bus 
                carriers.
            ``(2) Certification.--A State does not have to comply with 
        paragraph (1) of this subsection in a fiscal year in which the 
        Governor of the State certifies to the Secretary, after 
        consultation with affected intercity bus service providers, that 
        the intercity bus service needs of the State are being met 
        adequately.

    ``(g) Government Share of Costs.--
            ``(1) Capital projects.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), a grant awarded under this section for 
                a capital project or project administrative expenses 
                shall be for 80 percent

[[Page 126 STAT. 684]]

                of the net costs of the project, as determined by the 
                Secretary.
                    ``(B) Exception.--A State described in section 
                120(b) of title 23 shall receive a Government share of 
                the net costs in accordance with the formula under that 
                section.
            ``(2) Operating assistance.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), a grant made under this section for 
                operating assistance may not exceed 50 percent of the 
                net operating costs of the project, as determined by the 
                Secretary.
                    ``(B) Exception.--A State described in section 
                120(b) of title 23 shall receive a Government share of 
                the net operating costs equal to 62.5 percent of the 
                Government share provided for under paragraph (1)(B).
            ``(3) Remainder.--The remainder of net project costs--
                    ``(A) may be provided from an undistributed cash 
                surplus, a replacement or depreciation cash fund or 
                reserve, a service agreement with a State or local 
                social service agency or a private social service 
                organization, or new capital;
                    ``(B) may be derived from amounts appropriated or 
                otherwise made available to a department or agency of 
                the Government (other than the Department of 
                Transportation) that are eligible to be expended for 
                transportation;
                    ``(C) notwithstanding subparagraph (B), may be 
                derived from amounts made available to carry out the 
                Federal lands highway program established by section 204 
                of title 23; and
                    ``(D) in the case of an intercity bus project that 
                includes both feeder service and an unsubsidized segment 
                of intercity bus service to which the feeder service 
                connects, may be derived from the costs of a private 
                operator for the unsubsidized segment of intercity bus 
                service as an in-kind match for the operating costs of 
                connecting rural intercity bus feeder service funded 
                under subsection (f), if the private operator agrees in 
                writing to the use of the costs of the private operator 
                for the unsubsidized segment of intercity bus service as 
                an in-kind match.
            ``(4) Use of certain funds.--For purposes of p