Text: H.R.7 — 112th Congress (2011-2012)All Information (Except Text)

Text available as:

Shown Here:
Reported in House (02/13/2012)

Union Calendar No. 277

112th CONGRESS
2d Session
H. R. 7

[Report No. 112–397]


To authorize funds for Federal-aid highway, public transportation, and highway and motor carrier safety programs, and for other purposes.


IN THE HOUSE OF REPRESENTATIVES

January 31, 2012

Mr. Mica (for himself and Mr. Duncan of Tennessee) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

February 13, 2012

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on January 31, 2012]


A BILL

To authorize funds for Federal-aid highway, public transportation, and highway and motor carrier safety programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title; table of contents.

(a) Short title.—This Act may be cited as the “American Energy and Infrastructure Jobs Act of 2012”.

(b) Table of contents.—


Sec. 1. Short title; table of contents.

Sec. 2. General definitions.

Sec. 3. Effective date.

Sec. 1001. Amendments to title 23, United States Code.

Sec. 1101. Authorization of appropriations.

Sec. 1102. Highway obligation ceiling.

Sec. 1103. Alternative Transportation Account obligation ceiling.

Sec. 1104. Apportionment.

Sec. 1105. Federal-aid systems.

Sec. 1106. National Highway System program.

Sec. 1107. Surface transportation program.

Sec. 1108. Congestion mitigation and air quality improvement program.

Sec. 1109. Equity bonus program.

Sec. 1110. Project approval and oversight.

Sec. 1111. Emergency relief.

Sec. 1112. Uniform transferability of Federal-aid highway funds.

Sec. 1113. Ferry boats and ferry terminal facilities.

Sec. 1114. National highway bridge and tunnel inventory and inspection program.

Sec. 1115. Minimum investment in highway bridges.

Sec. 1116. Minimum penalties for repeat offenders for driving while intoxicated or driving under the influence.

Sec. 1117. Puerto Rico highway program.

Sec. 1118. Appalachian development highway system.

Sec. 1119. References to Mass Transit Account.

Sec. 1201. Transportation infrastructure finance and innovation.

Sec. 1202. State infrastructure bank program.

Sec. 1203. State infrastructure bank capitalization.

Sec. 1204. Tolling.

Sec. 1205. HOV facilities.

Sec. 1206. Public-private partnerships.

Sec. 1301. Highway safety improvement program.

Sec. 1302. Railway-highway crossings.

Sec. 1303. Highway worker safety.

Sec. 1401. National freight policy.

Sec. 1402. State freight advisory committees.

Sec. 1403. State freight plans.

Sec. 1404. Trucking productivity.

Sec. 1405. Study with respect to truck sizes and weights.

Sec. 1406. Maximum weight increase for idle reduction technology on heavy duty vehicles.

Sec. 1501. Federal lands and tribal transportation programs.

Sec. 1502. Definitions.

Sec. 1503. Conforming amendments.

Sec. 1504. Repeals; effective date.

Sec. 1505. Clerical amendment.

Sec. 1506. Tribal transportation self-governance program.

Sec. 1601. Program elimination and consolidation.

Sec. 1701. Transportation enhancement activity defined.

Sec. 1702. Pavement markings.

Sec. 1703. Rest areas.

Sec. 1704. Justification reports for access points on the Interstate System.

Sec. 1705. Patented or proprietary items.

Sec. 1706. Preventive maintenance.

Sec. 1707. Mapping.

Sec. 1708. Funding flexibility for transportation emergencies.

Sec. 1709. Budget justification.

Sec. 1710. Extension of over-the-road bus and public transit vehicle exemption from axle weight restrictions.

Sec. 1711. Repeal of requirement for Interstate System designation.

Sec. 1712. Retroreflectivity.

Sec. 1713. Engineering judgment.

Sec. 1714. Evacuation routes.

Sec. 1715. Truck parking.

Sec. 1716. Use of certain administrative expenses.

Sec. 1717. Transportation training and employment programs.

Sec. 1718. Engineering and design services.

Sec. 1719. Notice of certain grant awards.

Sec. 1720. Miscellaneous parking amendments.

Sec. 1721. Highway Buy America provisions.

Sec. 1722. Veterans preference in highway construction.

Sec. 1723. Real-time ridesharing.

Sec. 1724. State autonomy for culvert pipe selection.

Sec. 1725. Equal opportunity assessment.

Sec. 2001. Short title; amendments to title 49, United States Code.

Sec. 2002. Definitions.

Sec. 2003. Planning programs.

Sec. 2004. Private enterprise participation.

Sec. 2005. Urbanized area formula grants.

Sec. 2006. Capital investment grants.

Sec. 2007. Bus and bus facilities formula grants.

Sec. 2008. Rural area formula grants.

Sec. 2009. Transit research.

Sec. 2010. Coordinated access and mobility program formula grants.

Sec. 2011. Training and technical assistance programs.

Sec. 2012. General provisions.

Sec. 2013. Contract requirements.

Sec. 2014. Veterans preference in transit construction.

Sec. 2015. Private sector participation.

Sec. 2016. Project management oversight.

Sec. 2017. State safety oversight.

Sec. 2018. Apportionment of appropriations for formula grants.

Sec. 2019. Fixed guideway modernization formula grants.

Sec. 2020. Authorizations.

Sec. 2021. Obligation limits.

Sec. 2022. Program elimination and consolidation.

Sec. 2023. Evaluation and report.

Sec. 2024. Transit Buy America provisions.

Sec. 3001. Amendments to title 23, United States Code.

Sec. 3002. Declaration of policy.

Sec. 3003. Exemption in emergencies.

Sec. 3004. Advance acquisition of real property interests.

Sec. 3005. Standards.

Sec. 3006. Letting of contracts.

Sec. 3007. Elimination of duplication in historic preservation requirements.

Sec. 3008. Funding threshold.

Sec. 3009. Efficient environmental reviews for project decisionmaking.

Sec. 3010. Disposal of historic properties.

Sec. 3011. Integration of planning and environmental review.

Sec. 3012. Development of programmatic mitigation plans.

Sec. 3013. State assumption of responsibility for categorical exclusions.

Sec. 3014. Surface transportation project delivery program.

Sec. 3015. Program for eliminating duplication of environmental reviews.

Sec. 3016. State performance of legal sufficiency reviews.

Sec. 3017. Categorical exclusions.

Sec. 3018. Environmental review process deadline.

Sec. 3019. Relocation assistance.

Sec. 4001. Transportation planning.

Sec. 4002. Special rules for small metropolitan planning organizations.

Sec. 4003. Financial plans.

Sec. 4004. Plan update.

Sec. 4005. State planning and research funding for title 23.

Sec. 4006. National Academy of Sciences study.

Sec. 4007. Congestion relief.

Sec. 5001. Amendments to title 23, United States Code.

Sec. 5002. Authorization of appropriations.

Sec. 5003. Highway safety programs.

Sec. 5004. Use of certain funds made available for administrative expenses.

Sec. 5005. Repeal of programs.

Sec. 5006. Discovery and admission as evidence of certain reports and surveys.

Sec. 5007. Prohibition on funds to check helmet usage or create checkpoints for a motorcycle driver or passenger.

Sec. 5008. National Driver Register.

Sec. 6001. Short title.

Sec. 6002. Amendments to title 49, United States Code.

Sec. 6101. Motor carrier safety grants.

Sec. 6102. Grant programs.

Sec. 6201. Registration requirements.

Sec. 6202. Motor carrier registration.

Sec. 6203. Registration of freight forwarders and brokers.

Sec. 6204. Effective periods of registration.

Sec. 6205. Reincarnated carriers.

Sec. 6206. Financial security of brokers and freight forwarders.

Sec. 6207. Registration fee system.

Sec. 6208. Unlawful brokerage activities.

Sec. 6209. Requirement for registration and USDOT number.

Sec. 6301. Motor carrier safety assistance program.

Sec. 6302. Performance and registration information systems management program.

Sec. 6303. Commercial vehicle information systems and networks deployment grants.

Sec. 6304. Commercial motor vehicle safety inspection programs.

Sec. 6305. Amendments to safety fitness determination.

Sec. 6306. New entrant carriers.

Sec. 6307. Improved oversight of motor carriers of passengers.

Sec. 6308. Driver medical qualifications.

Sec. 6309. Commercial motor vehicle safety standards.

Sec. 6310. Crash avoidance technology.

Sec. 6311. Expansion of collision mitigation study.

Sec. 6401. National clearinghouse for records relating to alcohol and controlled substances testing of commercial motor vehicle operators.

Sec. 6402. Commercial motor vehicle operator training.

Sec. 6403. Commercial driver’s license program.

Sec. 6404. Commercial driver’s license passenger endorsement requirements.

Sec. 6405. Commercial driver’s license hazardous materials endorsement exemption.

Sec. 6406. Program to assist veterans to acquire commercial driver’s licenses.

Sec. 6501. Motor carrier transportation.

Sec. 6502. Hours of service study.

Sec. 6503. Electronic logging devices.

Sec. 6504. Motor Carrier Safety Advisory Committee.

Sec. 6505. Transportation of agricultural commodities and farm supplies.

Sec. 6506. Exemption relating to transportation of grapes during harvest periods.

Sec. 6601. Exemptions from requirements for certain farm vehicles.

Sec. 6602. Technical correction.

Sec. 6603. Study of impact of regulations on small trucking companies.

Sec. 6604. Report on small trucking companies.

Sec. 6605. Rulemaking on road visibility of agricultural equipment.

Sec. 6606. Transportation of horses.

Sec. 6607. Regulatory review and revision.

Sec. 6608. Issuance of safety regulations.

Sec. 6609. Repeals.

Sec. 7001. Authorization of appropriations.

Sec. 7002. Obligation ceiling.

Sec. 7003. Definitions.

Sec. 7004. Surface transportation research, development, and technology.

Sec. 7005. Research and development.

Sec. 7006. Technology and innovation deployment program.

Sec. 7007. Training and education.

Sec. 7008. State planning and research.

Sec. 7009. International highway transportation outreach program.

Sec. 7010. Surface transportation-environmental cooperative research program.

Sec. 7011. Transportation research and development strategic planning.

Sec. 7012. National cooperative freight transportation research program.

Sec. 7013. Future strategic highway research program.

Sec. 7014. National intelligent transportation systems program plan.

Sec. 7015. Use of funds for intelligent transportation systems activities.

Sec. 7016. Intelligent transportation systems program goals and purposes.

Sec. 7017. Intelligent transportation systems program general authorities and requirements.

Sec. 7018. Intelligent transportation systems research and development.

Sec. 7019. Intelligent transportation systems national architecture and standards.

Sec. 7020. National university transportation centers.

Sec. 7021. University transportation research.

Sec. 7022. Bureau of Transportation Statistics.

Sec. 7023. Administrative authority.

Sec. 7024. Technical and conforming amendments.

Sec. 8001. Capital grants for Class II and Class III railroads.

Sec. 8002. Congestion grants.

Sec. 8003. Intercity passenger rail capital grants to States.

Sec. 8101. Authorization for Amtrak operating expenses.

Sec. 8102. Limitations on Amtrak authority.

Sec. 8103. Applicability of laws.

Sec. 8104. Inspector General of Amtrak.

Sec. 8105. Amtrak management accountability.

Sec. 8106. Amtrak food and beverage service.

Sec. 8107. Application of Buy America to Amtrak.

Sec. 8201. Project development and review.

Sec. 8301. Railroad rehabilitation and improvement financing.

Sec. 8401. Positive train control.

Sec. 8501. Federal Railroad Administration regulations.

Sec. 8601. Miscellaneous corrections, revisions, and repeals.

Sec. 8701. Application of Buy America to intercity passenger rail service corridors.

Sec. 8702. Prohibition on use of funds for California high-speed rail.

Sec. 8703. Disadvantaged business enterprises.

Sec. 9001. Short title.

Sec. 9002. Amendment of title 49, United States Code.

Sec. 9003. Findings.

Sec. 9004. Purposes.

Sec. 9005. Definitions.

Sec. 9006. General regulatory authority.

Sec. 9007. Inspections of motor vehicles transporting radioactive material.

Sec. 9008. Hazmat employee training requirements and grants.

Sec. 9009. Fees.

Sec. 9010. Motor carrier safety permits.

Sec. 9011. Planning and training grants, monitoring, and review.

Sec. 9012. Special permits and exclusions.

Sec. 9013. Hazardous material uniform motor carrier permit program.

Sec. 9014. International uniformity of standards and requirements.

Sec. 9015. Investigations.

Sec. 9016. Building partnerships for improved safety and system performance.

Sec. 9017. Safety reporting.

Sec. 9018. Civil penalties.

Sec. 9019. Preemption.

Sec. 9020. Authorization of appropriations.

Sec. 9021. Electronic shipping papers pilot program.

Sec. 9022. Wetlines.

Sec. 9023. Product study.

Sec. 10001. Sense of Congress on harbor maintenance.

Sec. 10002. Study and report on strategic ports.

Sec. 11001. Short title.

Sec. 11002. Reauthorization and amendments to the Sport Fish Restoration and Boating Trust Fund.

Sec. 12001. Short title; effective date.

Sec. 12101. Extension of Federal-aid highway programs.

Sec. 12201. Extension of National Highway Traffic Safety Administration highway safety programs.

Sec. 12202. Extension of Federal Motor Carrier Safety Administration programs.

Sec. 12203. Additional programs.

Sec. 12301. Allocation of funds for planning programs.

Sec. 12302. Special rule for urbanized area formula grants.

Sec. 12303. Allocating amounts for capital investment grants.

Sec. 12304. Apportionment of formula grants for other than urbanized areas.

Sec. 12305. Apportionment based on fixed guideway factors.

Sec. 12306. Authorizations for public transportation.

Sec. 12307. Amendments to SAFETEA–LU.

Sec. 13001. Audit of Union Station Redevelopment Corporation.

Sec. 13002. Prohibition on use of funds.

SEC. 2. General definitions.

In titles I through XIII of 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.

Except as otherwise expressly provided, titles I through VII of this Act, including the amendments made by those titles, shall take effect on October 1, 2012.

SEC. 1001. Amendments to title 23, United States Code.

Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 23, United States Code.

SEC. 1101. Authorization of appropriations.

(a) Highway Trust Fund.—The following sums are authorized to be appropriated out of the Highway Trust Fund (other than the Alternative Transportation Account):

(1) NATIONAL HIGHWAY SYSTEM PROGRAM.—For the National Highway System program under section 119 of title 23, United States Code—

(A) $17,400,000,000 for fiscal year 2013;

(B) $17,600,000,000 for fiscal year 2014;

(C) $17,600,000,000 for fiscal year 2015; and

(D) $17,750,000,000 for fiscal year 2016.

(2) SURFACE TRANSPORTATION PROGRAM.—For the surface transportation program under section 133 of title 23, United States Code—

(A) $10,500,000,000 for fiscal year 2013;

(B) $10,550,000,000 for fiscal year 2014;

(C) $10,600,000,000 for fiscal year 2015; and

(D) $10,750,000,000 for fiscal year 2016.

(3) HIGHWAY SAFETY IMPROVEMENT PROGRAM.—For the highway safety improvement program under section 148 of title 23, United States Code—

(A) $2,600,000,000 for fiscal year 2013;

(B) $2,605,000,000 for fiscal year 2014;

(C) $2,610,000,000 for fiscal year 2015; and

(D) $2,630,000,000 for fiscal year 2016.

(4) TRIBAL TRANSPORTATION PROGRAM.—For the tribal transportation program under section 202 of title 23, United States Code, $465,000,000 for each of fiscal years 2013 through 2016.

(5) FEDERAL LANDS TRANSPORTATION PROGRAM.—For the Federal lands transportation program under section 203 of title 23, United States Code, $535,000,000 for each of fiscal years 2013 through 2016.

(6) RECREATIONAL TRAILS PROGRAM.—For the recreational trails program under section 206 of title 23, United States Code, $85,000,000 for each of fiscal years 2013 through 2016.

(7) APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM PROGRAM.—For the Appalachian development highway system program under section 14501 of title 40, United States Code, $470,000,000 for each of fiscal years 2013 through 2016.

(b) Alternative Transportation Account.—The following sums are authorized to be appropriated out of the Alternative Transportation Account of the Highway Trust Fund:

(1) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.—For the congestion mitigation and air quality improvement program under section 149 of title 23, United States Code, $2,000,000,000 for each of fiscal years 2013 through 2016.

(2) FERRY BOAT AND FERRY TERMINAL FACILITIES PROGRAM.—For the ferry boat and ferry terminal facilities program under section 147 of title 23, United States Code, $67,000,000 for each of fiscal years 2013 through 2016.

(3) PUERTO RICO HIGHWAY PROGRAM.—For the Puerto Rico highway program under section 165 of title 23, United States Code, $150,000,000 for each of fiscal years 2013 through 2016.

(4) TERRITORIAL HIGHWAY PROGRAM.—For the territorial highway program under section 215 of title 23, United States Code, $50,000,000 for each of fiscal years 2013 through 2016.

(c) Disadvantaged business enterprises.—

(1) 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” means—

(i) women; and

(ii) any other socially and economically disadvantaged individuals (as the term is used in section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and relevant subcontracting regulations promulgated pursuant to that Act).

(2) 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 titles I, II, and VII of this Act and section 403(a) of title 23, United States Code, shall be expended through small business concerns owned and controlled by socially and economically disadvantaged individuals.

(3) 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) 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.

(4) 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.

(5) 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.

(6) COMPLIANCE WITH COURT ORDERS.—Nothing in this subsection limits the eligibility of an individual or entity to receive funds made available under titles I, II, and VII of this Act and section 403(a) 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. Highway obligation ceiling.

(a) General limitation.—Subject to subsection (f), and notwithstanding any other provision of law, the obligations for Federal-aid highway and highway safety construction programs authorized from the Highway Trust Fund (other than the Alternative Transportation Account) shall not exceed—

(1) $37,366,000,000 for fiscal year 2013;

(2) $37,621,000,000 for fiscal year 2014;

(3) $37,676,000,000 for fiscal year 2015; and

(4) $38,000,000,000 for fiscal year 2016.

(b) Exceptions.—The limitations under subsection (a) shall not apply to obligations under or for—

(1) section 125 of title 23, United States Code;

(2) section 147 of the Surface Transportation Assistance Act of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);

(3) section 9 of the Federal-Aid Highway Act of 1981 (Public Law 97–134; 95 Stat. 1701);

(4) subsections (b) and (j) of section 131 of the Surface Transportation Assistance Act of 1982 (Public Law 97–424; 96 Stat. 2119);

(5) subsections (b) and (c) of section 149 of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (Public Law 100–17; 101 Stat. 198);

(6) sections 1103 through 1108 of the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102–240; 105 Stat. 2027);

(7) section 157 of title 23, United States Code (as in effect on June 8, 1998);

(8) section 105 of title 23, United States Code (as in effect for fiscal years 1998 through 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 (Public Law 105–178; 112 Stat. 107) or subsequent public laws for multiple years or to remain available until used, but only to the extent that the obligation authority has not lapsed or been used;

(10) section 105 of title 23, United States Code (as in effect for fiscal years 2005 through 2012, but only in an amount equal to $639,000,000 for each of those fiscal years);

(11) section 1603 of SAFETEA–LU (Public Law 109–59; 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 105 of title 23, United States Code (as in effect for fiscal years 2013 through 2016, but only in an amount equal to $639,000,000 for each of such fiscal years).

(c) Distribution of obligation authority.—For each of fiscal years 2013 through 2016, the Secretary—

(1) shall not distribute obligation authority provided by subsection (a) for the fiscal year for amounts authorized for administrative expenses and programs by section 104(a) of title 23, United States Code;

(2) shall not distribute an amount of obligation authority provided by subsection (a) that is equal to the unobligated balance of amounts made available for Federal-aid highway and highway safety construction programs for previous fiscal years the funds for which are allocated by the Secretary;

(3) shall determine the ratio that—

(A) the obligation authority provided by subsection (a) for the fiscal year, less the aggregate of amounts not distributed under paragraphs (1) and (2); bears to

(B) the total of the sums authorized to be appropriated for 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 105 of title 23, United States Code, equal to the amount referred to in subsection (b)(12) for the fiscal year), less the aggregate of amounts not distributed under paragraphs (1) and (2);

(4) (A) shall distribute the obligation authority provided by subsection (a) less the aggregate of amounts not distributed under paragraphs (1) and (2), for section 14501 of title 40, United States Code, so that the amount of obligation authority available for that section is equal to the amount determined by multiplying—

(i) the ratio determined under paragraph (3); by

(ii) the sums authorized to be appropriated for that section for the fiscal year; and

(B) shall distribute $2,000,000,000 for section 105 of title 23, United States Code;

(5) shall distribute among the States 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 each of the programs that are allocated by the Secretary under this Act and title 23, United States Code (other than to programs to which paragraph (1) applies), by multiplying—

(A) the ratio determined under paragraph (3); by

(B) the amounts authorized to be appropriated for each such program for the fiscal year; and

(6) shall distribute the obligation authority provided by subsection (a), less the aggregate of amounts not distributed under paragraphs (1) and (2) and the aggregate of amounts distributed under paragraphs (4) and (5), for Federal-aid highway and highway safety construction programs (other than the amounts apportioned for the equity bonus program, but only to the extent that the amounts apportioned for the equity bonus program for the fiscal year are greater than $2,639,000,000, and the Appalachian development highway system program) that are apportioned by the Secretary under this Act and title 23, United States Code, in the ratio that—

(A) amounts authorized to be appropriated for the programs that are apportioned to each State for the fiscal year; bear to

(B) the total of the amounts authorized to be appropriated for the programs that are apportioned to all States for the fiscal year.

(d) Redistribution of unused obligation authority.—Notwithstanding subsection (c), the Secretary shall, after August 1 of each of fiscal years 2013 through 2016—

(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 section 104 of title 23, United States Code, and section 144 of such title (as in effect on the day before the date of enactment of this Act).

(e) Redistribution of certain authorized funds.—

(1) IN GENERAL.—Not later than 30 days after the date of distribution of obligation authority under subsection (c) for each of fiscal years 2013 through 2016, the Secretary shall distribute to the States any funds that—

(A) are authorized to be appropriated for the fiscal year for Federal-aid highway programs; and

(B) the Secretary determines will not be allocated to the States, and will not be available for obligation, in the fiscal year due to the imposition of any obligation limitation for the fiscal year.

(2) RATIO.—Funds shall be distributed under paragraph (1) in the same ratio as the distribution of obligation authority under subsection (c)(6).

(3) AVAILABILITY.—Funds distributed under paragraph (1) shall be available for any purpose described in section 133(b) of title 23, United States Code.

(f) Special limitation characteristics.—Obligation authority distributed for a fiscal year under subsection (c)(4) for the provision specified in subsection (c)(4) shall—

(1) remain available until used for obligation of funds for that provision; and

(2) be in addition to the amount of any limitation imposed on obligations for Federal-aid highway and highway safety construction programs for future fiscal years.

SEC. 1103. Alternative Transportation Account obligation ceiling.

(a) In general.—Notwithstanding any other provision of law, the total of all obligations from amounts made available from the Alternative Transportation Account of the Highway Trust Fund for the programs for which sums are authorized to be appropriated under sections 1101(b) and 7001(a) of this Act shall not exceed $2,707,000,000 for each of fiscal years 2013 through 2016.

(b) Availability of funds.—Section 118(a) is amended—

(1) by striking “Mass Transit Account” and inserting “Alternative Transportation Account”; and

(2) by inserting “, and amounts made available from the Alternative Transportation Account to carry out the congestion mitigation and air quality improvement program under section 149, the ferry boat and ferry terminal facilities program under section 147, the Puerto Rico highway program under section 165, and the territorial highway program under section 215,” before “shall be available”.

SEC. 1104. Apportionment.

Section 104 is amended to read as follows:

§ 104. Apportionment

“(a) Administrative expenses.—

“(1) IN GENERAL.—There is authorized to be appropriated from the Highway Trust Fund (other than the Alternative Transportation Account) to be made available to the Secretary for administrative expenses of the Federal Highway Administration $400,000,000 for each of fiscal years 2013 through 2016.

“(2) PURPOSES.—The funds made available under paragraph (1) shall be used—

“(A) to administer the provisions of law to be financed from appropriations for the Federal-aid highway program and programs authorized under chapter 2; and

“(B) to make transfers of such sums as the Secretary determines to be appropriate to the Appalachian Regional Commission for administrative activities associated with the Appalachian development highway system.

“(3) AVAILABILITY.—Funds made available under paragraph (1) shall remain available until expended.

“(b) Apportionments.—On October 1 of each fiscal year, the Secretary, after making the set-asides authorized by subsection (f), subsections (b) and (c) of section 140, and section 130(e), shall apportion the remainder of the sums authorized to be appropriated for expenditure on the National Highway System program, the congestion mitigation and air quality improvement program, the surface transportation program, and the highway safety improvement program among the several States in the following manner:

“(1) NATIONAL HIGHWAY SYSTEM PROGRAM.—

“(A) IN GENERAL.—For the National Highway System program, in accordance with the following formula:

“(i) 15 percent of the apportionments in the ratio that—

“(I) the total lane miles of principal arterial routes (excluding Interstate System routes) in each State; bears to

“(II) the total lane miles of principal arterial routes (excluding Interstate System routes) in all States.

“(ii) 15 percent of the apportionments in the ratio that—

“(I) the total vehicle miles traveled on lanes on principal arterial routes (excluding Interstate System routes) in each State; bears to

“(II) the total vehicle miles traveled on lanes on principal arterial routes (excluding Interstate System routes) in all States.

“(iii) 5 percent of the apportionments in the ratio that—

“(I) the quotient obtained by dividing the total lane miles on principal arterial highways in each State by the total population of the State; bears to

“(II) the quotient obtained by dividing the total lane miles on principal arterial highways in all States by the total population of all States.

“(iv) 15 percent of the apportionments in the ratio that—

“(I) the total lane miles on Interstate System routes open to traffic in each State; bears to

“(II) the total lane miles on Interstate System routes open to traffic in all States.

“(v) 15 percent of the apportionments in the ratio that—

“(I) the total vehicle miles traveled on Interstate System routes open to traffic in each State; bears to

“(II) the total vehicle miles traveled on Interstate System routes open to traffic in all States.

“(vi) 35 percent of the apportionments in the ratio that—

“(I) the total of the annual contributions to the Highway Trust Fund (other than the Alternative Transportation Account) attributable to commercial vehicles in each State; bears to

“(II) the total of the annual contributions to the Highway Trust Fund (other than the Alternative Transportation Account) attributable to commercial vehicles in all States.

“(B) MINIMUM APPORTIONMENT.—Notwithstanding subparagraph (A), each State shall receive a minimum of ½ of 1 percent of the funds apportioned for a fiscal year under this paragraph.

“(2) CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.—

“(A) IN GENERAL.—For the congestion mitigation and air quality improvement program, in the ratio that—

“(i) the total of all weighted nonattainment and maintenance area populations in each State; bears to

“(ii) the total of all weighted nonattainment and maintenance area populations in all States.

“(B) CALCULATION OF WEIGHTED NONATTAINMENT AND MAINTENANCE AREA POPULATION.—Subject to subparagraph (C), for the purpose of subparagraph (A), the weighted nonattainment and maintenance area population shall be calculated by multiplying the population of each area in a State that was a nonattainment area or maintenance area as described in section 149(b) for ozone or carbon monoxide by a factor of—

“(i) 1.0 if, at the time of the apportionment, the area is a maintenance area;

“(ii) 1.0 if, at the time of the apportionment, the area is classified as a marginal ozone nonattainment area under subpart 2 of part D of title I of the Clean Air Act (42 U.S.C. 7511 et seq.);

“(iii) 1.1 if, at the time of the apportionment, the area is classified as a moderate ozone nonattainment area under such subpart;

“(iv) 1.2 if, at the time of the apportionment, the area is classified as a serious ozone nonattainment area under such subpart;

“(v) 1.3 if, at the time of the apportionment, the area is classified as a severe ozone nonattainment area under such subpart;

“(vi) 1.4 if, at the time of the apportionment, the area is classified as an extreme ozone nonattainment area under such subpart;

“(vii) 1.0 if, at the time of the apportionment, the area is not a nonattainment or maintenance area as described in section 149(b) for ozone, but is classified under subpart 3 of part D of title I of such Act (42 U.S.C. 7512 et seq.) as a nonattainment area described in section 149(b) for carbon monoxide; or

“(viii) 1.0 if, at the time of the apportionment, an area is designated as nonattainment for ozone under subpart 1 of part D of title I of such Act (42 U.S.C. 7501 et seq.).

“(C) ADDITIONAL ADJUSTMENT FOR CARBON MONOXIDE AREAS.—If, in addition to being designated as a nonattainment or maintenance area for ozone as described in section 149(b), any county within the area was also classified under subpart 3 of part D of title I of the Clean Air Act (42 U.S.C. 7512 et seq.) as a nonattainment or maintenance area described in section 149(b) for carbon monoxide, the weighted nonattainment or maintenance area population of the county, as determined under clauses (i) through (vi) or clause (viii) of subparagraph (B), shall be further multiplied by a factor of 1.2.

“(D) MINIMUM APPORTIONMENT.—Notwithstanding any other provision of this paragraph, each State shall receive a minimum of ½ of 1 percent of the funds apportioned for a fiscal year under this paragraph.

“(E) DETERMINATIONS OF POPULATION.—In determining population figures for the purposes of this paragraph, the Secretary shall use the latest available annual estimates prepared by the Secretary of Commerce.

“(3) SURFACE TRANSPORTATION PROGRAM.—

“(A) IN GENERAL.—For the surface transportation program, in accordance with the following formula:

“(i) 15 percent of the apportionments in the ratio that—

“(I) the total lane miles of Federal-aid highways in each State; bears to

“(II) the total lane miles of Federal-aid highways in all States.

“(ii) 25 percent of the apportionments in the ratio that—

“(I) the total vehicle miles traveled on lanes on Federal-aid highways in each State; bears to

“(II) the total vehicle miles traveled on lanes on Federal-aid highways in all States.

“(iii) 25 percent of the apportionments in the ratio that—

“(I) the estimated tax payments attributable to highway users in each State paid into the Highway Trust Fund (other than the Alternative Transportation Account) in the latest fiscal year for which data are available; bears to

“(II) the estimated tax payments attributable to highway users in all States paid into the Highway Trust Fund (other than the Alternative Transportation Account) in the latest fiscal year for which data are available.

“(iv) 35 percent of the apportionments in the ratio that—

“(I) the bridge replacement and rehabilitation costs in each State (as determined under subsection (c)(4)); bears to

“(II) the bridge replacement and rehabilitation costs in all States (as determined under subsection (c)(5)).

“(B) MINIMUM APPORTIONMENT.—Notwithstanding subparagraph (A), each State shall receive a minimum of ½ of 1 percent of the funds apportioned for a fiscal year under this paragraph.

“[(4) Reserved.]

“(5) HIGHWAY SAFETY IMPROVEMENT PROGRAM.—

“(A) IN GENERAL.—For the highway safety improvement program, in accordance with the following formula:

“(i) 3313 percent of the apportionments in the ratio that—

“(I) the total lane miles of Federal-aid highways in each State; bears to

“(II) the total lane miles of Federal-aid highways in all States.

“(ii) 3313 percent of the apportionments in the ratio that—

“(I) the total vehicle miles traveled on lanes on Federal-aid highways in each State; bears to

“(II) the total vehicle miles traveled on lanes on Federal-aid highways in all States.

“(iii) 3313 percent of the apportionments in the ratio that—

“(I) the number of fatalities on Federal-aid highways in each State in the latest fiscal year for which data are available; bears to

“(II) the number of fatalities on Federal-aid highways in all States in the latest fiscal year for which data are available.

“(B) MINIMUM APPORTIONMENT.—Notwithstanding subparagraph (A), each State shall receive a minimum of ½ of 1 percent of the funds apportioned for a fiscal year under this paragraph.

“(c) Bridge calculation.—For each fiscal year, the Secretary shall determine the bridge replacement and rehabilitation costs as follows:

“(1) The Secretary shall identify deficient highway bridges in each State.

“(2) The Secretary shall place each deficient highway bridge into one of the following categories:

“(A) Federal-aid highway bridges eligible for replacement.

“(B) Federal-aid highway bridges eligible for rehabilitation.

“(C) Bridges not on Federal-aid highways eligible for replacement.

“(D) Bridges not on Federal-aid highways eligible for rehabilitation.

“(3) The Secretary shall determine—

“(A) the deck area of deficient highway bridges in each category described in paragraph (2); and

“(B) the respective unit price of such deck area on a State-by-State basis.

“(4) The Secretary shall determine the bridge replacement and rehabilitation costs for each State by multiplying the deck area of deficient bridges in the State by the respective unit price.

“(5) The Secretary shall determine the bridge replacement and rehabilitation costs for all States by multiplying the deck area of deficient bridges in all States by the respective unit price.

“(d) Certification of apportionments.—

“(1) IN GENERAL.—On October 1 of each fiscal year, the Secretary shall certify to each of the State transportation departments the sums which the Secretary has apportioned under this section to each State for such fiscal year. To permit the States to develop adequate plans for the utilization of apportioned sums, the Secretary shall advise each State of the amount that will be apportioned each year under this section 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 or section 105 by the 21st day of a fiscal year beginning after September 30, 2012, the Secretary shall transmit, by such 21st day, 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 such apportionment in a timely manner.

“(e) Audits of Highway Trust Fund.—From administrative funds made available under subsection (a), the Secretary may reimburse 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.

“(f) Metropolitan planning.—

“(1) SET ASIDE.—On October 1 of each fiscal year, the Secretary shall set aside 1.15 percent of the funds authorized to be appropriated for the National Highway System program and surface transportation program authorized under this title to carry out the requirements of section 5203 of title 49.

“(2) APPORTIONMENT TO STATES OF SET-ASIDE FUNDS.—Funds set aside under paragraph (1) shall be apportioned to the States in the ratio which the population in urbanized areas, or parts thereof, in each State bears to the total population in such urbanized areas in all the States as shown by the latest available census, except that no State shall receive less than ½ of 1 percent of the amount apportioned.

“(3) USE OF FUNDS.—

“(A) IN GENERAL.—The funds apportioned to any State under paragraph (2) shall be made available by the State to the metropolitan planning organizations responsible for carrying out the provisions of section 5203 of title 49, except that States receiving the minimum apportionment under paragraph (2) may, in addition, subject to the approval of the Secretary, use the funds apportioned to finance transportation planning outside of urbanized areas.

“(B) UNUSED FUNDS.—Any funds that are not used to carry out section 5203 of title 49 may be made available by a metropolitan planning organization to the State to fund activities under section 5204 of such title.

“(4) DISTRIBUTION OF FUNDS WITHIN STATES.—

“(A) IN GENERAL.—The distribution within any State of the planning funds made available to agencies under paragraph (3) shall be in accordance with a formula developed by each State and approved by the Secretary that shall consider, but not necessarily be limited to, 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 the requirements of section 5203 of title 49 and other applicable requirements of Federal law.

“(B) REIMBURSEMENT.—Not later than 30 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 5203 of title 49, the State shall reimburse, from funds distributed under this paragraph to the metropolitan planning organization by the State, the metropolitan planning organization for those expenditures.

“(5) DETERMINATION OF POPULATION FIGURES.—For the purposes of determining population figures under this subsection, the Secretary shall use the most recent estimate published by the Secretary of Commerce.

“(g) Report to Congress.—For each fiscal year, the Secretary shall submit to Congress, and also make available to the public in a user-friendly format via the Internet, a report on—

“(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 and section 105;

“(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 and sections 105 and 133, according to—

“(A) program;

“(B) funding category or subcategory;

“(C) type of improvement;

“(D) State; and

“(E) sub-State geographic area, including urbanized and rural areas, on the basis of the population of each such area.

“(h) Transfer of highway and transit funds.—

“(1) TRANSFER OF HIGHWAY FUNDS FOR TRANSIT PROJECTS.—

“(A) IN GENERAL.—Subject to subparagraph (B), funds made available under this title for transit projects or transportation planning may be transferred to and administered by the Secretary in accordance with chapter 53 of title 49.

“(B) NON-FEDERAL SHARE.—The provisions of this title relating to the non-Federal share shall apply to the funds transferred under subparagraph (A).

“(2) TRANSFER OF TRANSIT FUNDS FOR HIGHWAY PROJECTS.—

“(A) IN GENERAL.—Subject to subparagraph (B), funds made available under chapter 53 of title 49 for highway projects or transportation planning may be transferred to and administered by the Secretary in accordance with this title.

“(B) NON-FEDERAL SHARE.—The provisions of chapter 53 of title 49 relating to the non-Federal share shall apply to funds transferred under subparagraph (A).

“(3) TRANSFER OF FUNDS AMONG STATES OR TO FEDERAL HIGHWAY ADMINISTRATION.—

“(A) IN GENERAL.—Subject to subparagraphs (B) and (C), the Secretary, at the request of a State, may transfer funds apportioned or allocated under this title to the State to another State, or to the Federal Highway Administration, for the purpose of funding one or more projects that are eligible for assistance with funds so apportioned or allocated.

“(B) APPORTIONMENT.—A transfer under subparagraph (A) shall have no effect on any apportionment of funds to a State under this section or section 105.

“(C) SURFACE TRANSPORTATION PROGRAM.—Funds that are apportioned or allocated to a State under subsection (b)(3) and attributed to an urbanized area of a State with a population of over 200,000 individuals under section 133(d)(3) 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 funds transferred under this subsection shall be transferred in the same manner and amount as the funds for the projects that are transferred under this subsection.

“(i) Recreational trails program.—

“(1) ADMINISTRATIVE COSTS.—Before apportioning sums authorized to be appropriated to carry out the recreational trails program under section 206, the Secretary shall deduct for administrative, research, technical assistance, and training expenses for such program $840,000 for each fiscal year. The Secretary may enter into contracts with for-profit organizations or contracts, partnerships, or cooperative agreements with other government agencies, institutions of higher learning, or nonprofit organizations to perform these tasks.

“(2) APPORTIONMENT TO THE STATES.—The Secretary shall apportion the sums authorized to be appropriated for expenditure on the recreational trails program for each fiscal year among eligible States in the following manner:

“(A) 50 percent equally among eligible States.

“(B) 50 percent in amounts proportionate to the degree of non-highway recreational fuel use in each eligible State during the preceding year.

“(3) ELIGIBLE STATE DEFINED.—In this subsection, the term ‘eligible State’ means a State that meets the requirements of section 206(c).”.

SEC. 1105. Federal-aid systems.

Section 103(b) is amended—

(1) in paragraph (1)—

(A) in the matter preceding subparagraph (A) by inserting “and the modifications to the system approved by the Secretary before the date of enactment of the American Energy and Infrastructure Jobs Act of 2012” after “1996”; and

(B) in subparagraph (C) by inserting “and commerce” before the period at the end;

(2) in paragraph (2)—

(A) in subparagraph (B) by inserting “and border crossings on such routes not included on the National Highway System before the date of enactment of the American Energy and Infrastructure Jobs Act of 2012” before the period at the end; and

(B) in subparagraph (C) by inserting “not included on the National Highway System before the date of enactment of the American Energy and Infrastructure Jobs Act of 2012” before the period at the end; and

(3) by striking paragraphs (6) and (7) and inserting the following:

“(6) REQUIREMENT FOR STATE ASSET MANAGEMENT PLAN FOR NATIONAL HIGHWAY SYSTEM.—

“(A) IN GENERAL.—A State shall develop and implement a risk-based State asset management plan for managing all infrastructure assets in the right-of-way corridor of the National Highway System based on a process established by the Secretary. The process shall require use of quality information and economic and engineering analysis to identify a sequence of maintenance, repair, and rehabilitation actions that will achieve and maintain a desired state of good repair over the lifecycle of the network at the least possible cost.

“(B) PERFORMANCE GOALS.—A State asset management plan shall include strategies leading to a program of projects that will make progress toward achievement of the national goals for infrastructure condition and performance of the National Highway System in a manner consistent with the requirements of chapter 52 of title 49.

“(C) PLAN CONTENTS.—A State asset management plan shall be in a form that the Secretary determines to be appropriate and shall include, at a minimum, the following:

“(i) A summary listing of the highway infrastructure assets on the National Highway System in the State that includes current condition and performance statistics by asset.

“(ii) Asset management objectives and measures.

“(iii) Analysis of lifecycle cost, value for investment, and risk management.

“(iv) A financial plan.

“(v) Investment strategies.

“(D) PROCESS.—Not later than 2 years after the date of enactment of the American Energy and Infrastructure Jobs Act of 2012, the Secretary shall establish a process by which a State shall develop and implement a risk-based State asset management plan described in subparagraph (A).

“(E) COMPLIANCE.—Notwithstanding section 120, with respect to the second fiscal year beginning after the date of establishment of the process under subparagraph (D) or any subsequent fiscal year, if the Secretary determines that a State has not developed and implemented a State asset management plan in a manner 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 section 119 shall be 70 percent.”.

SEC. 1106. National Highway System program.

(a) In general.—Section 119 is amended to read as follows:

§ 119. National Highway System program

“(a) Establishment.—The Secretary shall establish and implement a National Highway System program under this section.

“(b) Purposes.—The purposes of the National Highway System program shall be—

“(1) to provide support for the condition and operational 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 National Highway System program funds are directed to achievement of performance goals established in a State’s asset management plan for the National Highway System under section 103(b)(6).

“(c) Eligible facilities.—Except as otherwise specifically provided by this section, to be eligible for funding apportioned under section 104(b)(1) to carry out this section, a facility must be located on the National Highway System.

“(d) Eligible projects.—Funds apportioned to a State to carry out this section may be obligated only for a project that is—

“(1) on an eligible facility, as described in subsection (c);

“(2) a project, or is a part of a program of projects, supporting progress toward the achievement of national performance goals under section 5206 of title 49 for improving infrastructure condition, safety, mobility, or freight movement on the National Highway System;

“(3) consistent with the requirements of sections 5203 and 5204 of title 49; and

“(4) for one or more of the purposes specified in subsection (e).

“(e) Project purposes.—A project receiving funding under this section shall be for one or more of the following purposes:

“(1) Construction, reconstruction, resurfacing, restoration, rehabilitation, preservation, or operational improvements of segments of the National Highway System.

“(2) Construction, reconstruction, replacement (including replacement with fill material), rehabilitation, preservation, and protection (including scour countermeasures, seismic retrofits, and impact protection measures) of bridges and tunnels on the National Highway System.

“(3) Inspection and evaluation, as defined in section 151, of bridges and tunnels on the National Highway System, or inspection and evaluation of other highway infrastructure assets on the National Highway System.

“(4) Training of bridge and tunnel inspectors, as defined in section 151.

“(5) Rehabilitation or replacement of existing ferry boats and ferry boat facilities, including approaches, that connect road segments of the National Highway System.

“(6) Highway safety improvements for segments of the National Highway System.

“(7) Capital and operating costs for traffic management and traveler information monitoring, management, and control facilities and programs for the National Highway System.

“(8) Infrastructure-based intelligent transportation systems capital improvements for the National Highway System.

“(9) Development and implementation of a State asset management plan for the National Highway System in accordance with section 103(b), 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.

“(10) Environmental mitigation efforts related to projects funded under this section, as described in subsection (f).

“(11) Construction of publicly owned intracity or intercity bus terminals.

“(12) Environmental restoration and pollution abatement associated with a project funded under this section in accordance with section 328.

“(f) Environmental mitigation.—

“(1) ELIGIBLE ACTIVITIES.—Environmental mitigation efforts referred to in subsection (e)(10) 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, wetlands, and other resources; and

“(C) the development of statewide and regional environmental protection 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) TERMS AND CONDITIONS.—The following terms and conditions apply to natural habitat and wetlands mitigation efforts referred to in subsection (e)(10):

“(A) Contributions to the mitigation effort may take place concurrent with, in advance of, or subsequent to the construction of a project or projects.

“(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 or other third-party mitigation arrangement, if the use of credits from the mitigation bank for the project is approved by the applicable Federal agency.

“(g) Federal Share.—

“(1) IN GENERAL.—Except as provided by paragraph (2), the Federal share of the cost of a project payable from funds made available to carry out this section shall be determined under section 120(b).

“(2) INTERSTATE SYSTEM.—The Federal share of the cost of a project on the Interstate System payable from funds made available to carry out this section shall be determined under section 120(a).”.

(b) Clerical amendment.—The analysis for chapter 1 is amended by striking the item relating to section 119 and inserting the following:


“119. National Highway System program.”.

SEC. 1107. Surface transportation program.

(a) Eligible projects.—Section 133(b) is amended—

(1) by striking paragraphs (1) and (15);

(2) by redesignating paragraphs (2) through (14) as paragraphs (5) through (17), respectively;

(3) by inserting before paragraph (5) (as so redesignated) the following:

“(1) Construction, reconstruction, rehabilitation, resurfacing, restoration, preservation, and operational improvements for highways, including construction of designated routes of the Appalachian Development Highway System.

“(2) Replacement (including replacement with fill material), rehabilitation, preservation, and protection (including painting, scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) for bridges and tunnels on public roads of all functional classifications.

“(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 151), and inspection and evaluation of other highway assets (including signs, retaining walls, and drainage structures).”; and

(4) 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(f).”.

(b) Location of projects.—Section 133(c) is amended to read as follows:

“(c) Location of projects.—Except for projects described in subsections (b)(2), (b)(6), and (b)(7), 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, and except as approved by the Secretary.”.

(c) Allocation of apportioned funds.—

(1) REPEAL.—Section 133(d)(2) is repealed.

(2) DIVISION BETWEEN URBANIZED AREAS OF OVER 200,000 POPULATION AND OTHER AREAS.—Section 133(d)(3) is amended—

(A) in subparagraph (A)—

(i) in the matter preceding clause (i) by striking “62.5 percent of the remaining 90 percent” and inserting “50 percent”; and

(ii) in matter following clause (ii) by striking “37.5 percent” and inserting “50 percent”; and

(B) by adding at the end the following:

“(E) CONSULTATION WITH RURAL PLANNING ORGANIZATIONS.—For purposes of subparagraph (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 rural planning organizations that represent the area, if any.”.

(3) APPLICABILITY OF CERTAIN REQUIREMENTS TO THIRD PARTY SELLERS.—Section 133(d)(5)(A) is amended by striking “funded from the allocation required under paragraph (2)”.

(d) Administration.—Section 133(e)(3) is amended to read as follows:

“(3) PAYMENTS.—The Secretary shall make payments to a State of costs incurred by the State for the surface transportation program in accordance with procedures to be established by the Secretary.”.

(e) Obligation authority.—Section 133(f)(1) is amended—

(1) by striking “2004 through 2006” and inserting “2011 through 2013”; and

(2) by striking “2007 through 2009” and inserting “2014 through 2016”.

(f) Division of STP funds for areas of less than 5,000 population.—

(1) SPECIAL RULE.—Notwithstanding section 133(c) of title 23, United States Code, and except as provided in paragraph (2), up to 15 percent of the amounts required to be obligated by a State under section 133(d)(3)(B) of such title for each of fiscal years 2013 through 2016 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. 1108. Congestion mitigation and air quality improvement program.

(a) Eligible projects.—Section 149(b) is amended to read as follows:

“(b) Eligible projects.—

“(1) IN GENERAL.—

“(A) REQUIREMENTS FOR OBLIGATION OF FUNDS.—A State may obligate funds apportioned to the State under section 104(b)(2) for a transportation project or program if the project or program meets the requirements of subparagraph (B) and (C).

“(B) AREA SERVED BY PROJECT OR PROGRAM.—A project or program meets the requirements of this subparagraph if the project or program is for an area in the State that—

“(i) is or was designated as a nonattainment area for ozone, carbon monoxide, or particulate matter under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)) and classified pursuant to section 181(a), 186(a), 188(a), or 188(b) of the Clean Air Act (42 U.S.C. 7511(a), 7512(a), 7513(a), or 7513(b));

“(ii) is or was designated as a nonattainment area under such section 107(d) after December 31, 1997; or

“(iii) is required to prepare, and file with the Administrator of the Environmental Protection Agency, maintenance plans under the Clean Air Act (42 U.S.C. 7505a).

“(C) PURPOSE OF PROJECT OR PROGRAM.—A project or program meets the requirements of this subparagraph if—

“(i) the Secretary, after consultation with the Administrator, determines that—

“(I) on the basis of information published by the Environmental Protection Agency pursuant to section 108(f)(1)(A) of the Clean Air Act (other than clause (xvi) of such section), the project or program is likely to contribute to—

“(aa) the attainment of a national ambient air quality standard; or

“(bb) the maintenance of a national ambient air quality standard in a maintenance area; or

“(II) the project or program is part of a program, method, or strategy described in such section 108(f)(1)(A);

“(ii) the project or program is included in a State implementation plan that has been approved pursuant to the Clean Air Act and the project will have air quality benefits;

“(iii) the Secretary, after consultation with the Administrator, determines that the project or program is likely to contribute to the attainment of a national ambient air quality standard through reductions in travel time delay, vehicle miles traveled, or fuel consumption or through other factors; or

“(iv) the Secretary determines that the project or program is likely to contribute to the mitigation of congestion.

“(2) SPECIAL RULES.—

“(A) PROJECTS RESULTING IN NEW CAPACITY FOR SINGLE OCCUPANT VEHICLES.—A State may obligate funds apportioned to the State under section 104(b)(2) for a project or program that will result in the construction of new capacity available to single occupant vehicles only if the project or program is likely to contribute to the mitigation of congestion or the improvement of air quality.

“(B) PROJECTS FOR PM-10 NONATTAINMENT AREAS.—A State may obligate funds apportioned to the State under section 104(b)(2) for a project or program for an area that is nonattainment for ozone or carbon monoxide, or both, and for PM–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.

“(C) ELECTRIC VEHICLE INFRASTRUCTURE.—A State may obligate funds apportioned under section 104(b)(2) or 104(b)(3) for a project or program to establish or support the establishment of electric vehicle battery charging or changing facilities at any location in the State. Such projects or programs may be carried out by a State or local agency or through a public-private partnership.”.

(b) Cost-Effective emission reduction guidance.—Section 149 is amended—

(1) by striking subsection (f); and

(2) by redesignating subsections (g) and (h) as subsections (f) and (g), respectively.

SEC. 1109. Equity bonus program.

Section 105 is amended to read as follows:

§ 105. Equity bonus program

“(a) Program.—

“(1) IN GENERAL.—Subject to subsections (c), (d), and (e), for fiscal year 2013 and each fiscal year thereafter, the Secretary shall apportion among the States amounts sufficient to ensure that no State receives a percentage of the total apportionments for the fiscal year for the programs specified in paragraph (2) that is less than the percentage calculated under subsection (b).

“(2) SPECIFIED PROGRAMS.—The programs referred to in paragraph (1) are—

“(A) the metropolitan planning programs under section 104(f);

“(B) the equity bonus program under this section;

“(C) the National Highway System program under section 119;

“(D) the rail-highway grade crossing program under section 130;

“(E) the surface transportation program under section 133;

“(F) the highway safety improvement program under section 148;

“(G) the recreational trails programs under section 206;

“(H) the State infrastructure bank capitalization program under section 611; and

“(I) the Appalachian development highway system program under section 14501 of title 40.

“(b) State percentage.—For each of fiscal years 2013 through 2016, the percentage referred to in subsection (a) for each State shall be 94 percent of the quotient obtained by dividing—

“(1) the estimated tax payments attributable to highway users in the State paid into the Highway Trust Fund in the most recent fiscal year for which data are available; by

“(2) the estimated tax payments attributable to highway users in all States paid into the Highway Trust Fund for the fiscal year.

“(c) Minimum amount.—

“(1) IN GENERAL.—For each fiscal year, before making the apportionments under subsection (a)(1), the Secretary shall apportion among the States amounts sufficient to ensure that each State receives a combined total apportionment for the programs specified in subsection (a)(2) and the congestion mitigation and air quality improvement program under section 149 that equals or exceeds the combined amount that the State was apportioned for fiscal year 2012 for the programs specified in section 105(a)(2) of this title (other than the high priority projects program under subparagraph (H) of such section), as in effect on the day before the date of enactment of the American Energy and Infrastructure Jobs Act of 2012.

“(2) SPECIAL RULE.—In determining a State’s combined apportionment for fiscal year 2012 for purposes of paragraph (1), the Secretary shall not consider amounts apportioned to the State for such fiscal year under the following:

“(A) Section 111(d)(1) of the Surface Transportation Extension Act of 2011, Part II (Public Law 112–30; 125 Stat. 344).

“(B) Section 111(d)(3) of the Surface Transportation Extension Act of 2011, Part II (Public Law 112–30; 125 Stat. 345).

“(d) No negative adjustment.—No negative adjustment shall be made under subsection (a)(1) to the apportionment of any State.

“(e) Treatment of funds.—

“(1) PROGRAMMATIC DISTRIBUTION.—The Secretary shall apportion the amounts made available under this section that exceed $2,639,000,000 so that the amount apportioned to each State under this section for each program referred to in subparagraphs (C) and (E) of subsection (a)(2) is equal to the amount determined by multiplying the amount to be apportioned to such State under this section by the ratio that—

“(A) the amount of funds apportioned to such State for each program referred to in subparagraphs (C) and (E) of subsection (a)(2) for a fiscal year; bears to

“(B) the total amount of funds apportioned to such State for all such programs for such fiscal year.

“(2) REMAINING DISTRIBUTION.—The Secretary shall administer the remainder of funds made available under this section to the States in accordance with section 133, except that section 133(d)(3) and section 1115(a) of the American Energy and Infrastructure Jobs Act of 2012 shall not apply to the amounts administered pursuant to this paragraph.

“(f) Metropolitan planning set-Aside.—Notwithstanding section 104(f), no set aside provided for under that section shall apply to funds allocated under this section.

“(g) Authorization of Appropriations.—

“(1) IN GENERAL.—Subject to paragraphs (2) and (3), there is authorized to be appropriated from the Highway Trust Fund (other than the Alternative Transportation Account) to carry out this section $3,900,000,000 for each of fiscal years 2013 through 2016.

“(2) UPWARD ADJUSTMENT.—If the amount authorized by paragraph (1) for a fiscal year is less than the minimum amount required to ensure that each State receives the minimum percentage of total apportionments required under subsection (a)(1) and the minimum amount required under subsection (c)(1) for the fiscal year—

“(A) the amount authorized by paragraph (1) for the fiscal year shall be increased by the amount of the shortfall, so as to equal such minimum amount; and

“(B) the amounts authorized by section 1101(a)(2) of the American Energy and Infrastructure Jobs Act of 2012 for the surface transportation program for the fiscal year shall be decreased by the amount of the shortfall.

“(3) DOWNWARD ADJUSTMENT.—If the amount authorized by paragraph (1) for a fiscal year is more than the minimum amount required to ensure that each State receives the minimum percentage of total apportionments required under subsection (a)(1) and the minimum amount required under subsection (c)(1) for the fiscal year—

“(A) the amount authorized by paragraph (1) for the fiscal year shall be decreased by the amount of the excess, so as to equal such minimum amount; and

“(B) the amounts authorized by section 1101(a)(1) of the American Energy and Infrastructure Jobs Act of 2012 for the National Highway System program for the fiscal year shall be increased by the amount of the excess.”.

SEC. 1110. Project approval and oversight.

(a) Assumption by States of responsibilities of the Secretary.—Section 106(c)(1) is amended to read as follows:

“(1) NHS PROJECTS.—For projects under this title that are on the National Highway System, including projects on the Interstate System, the State may assume the responsibility of the Secretary under this title for design, plans, specifications, estimates, contract awards, and inspections with respect to such projects unless the Secretary determines that such assumption is not appropriate.”.

(b) Value engineering analysis.—Section 106(e) is amended—

(1) in paragraph (2)(A)—

(A) by striking “Federal-aid system” and inserting “National Highway System receiving Federal assistance”; and

(B) by striking “$25,000,000” and inserting “$50,000,000”;

(2) in paragraph (2)(B)—

(A) by inserting “on the National Highway System receiving Federal assistance” after “project”; and

(B) by striking “$20,000,000” and inserting “$40,000,000”; and

(3) by adding at the end the following:

“(5) DESIGN-BUILD PROJECTS.—A requirement to provide a value engineering analysis under this subsection does not apply to a project delivered using the design-build method of construction.”.

(c) Major projects.—Section 106(h)(3) is amended—

(1) in subparagraph (A) by striking “and”;

(2) in subparagraph (B) by striking the period and inserting “; and”; and

(3) by adding at the end the following:

“(C) assess the appropriateness of a public-private partnership to deliver the project.”.

(d) Use of advanced modeling technologies.—Section 106 is amended by adding at the end the following:

“(j) Use of advanced modeling technologies.—

“(1) IN GENERAL.—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 related to the projects.

“(2) ACTIVITIES.—In carrying out paragraph (1), 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.

“(3) COMPREHENSIVE PLAN.—The Secretary shall develop and publish on the Internet Web site of the Department of Transportation a detailed and comprehensive plan for the implementation of paragraph (1).

“(4) ADVANCED MODELING TECHNOLOGY DEFINED.—The term ‘advanced modeling technology’ means an available or developing technology, including 3-dimensional digital modeling, that can accelerate and improve the environmental review process, increase effective public participation, enhance the detail and accuracy of project designs, increase safety, accelerate construction and reduce construction costs, or otherwise expedite project delivery with respect to transportation projects that receive Federal funding.”.

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

(f) Transparency and accountability.—

(1) DATA COLLECTION.—The Secretary shall compile and make available to the public on the Internet Web site of the Department 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 Internet Web site of the Department—

(A) is organized by project and State;

(B) to the maximum extent possible, 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 Web site.

(3) REPORT TO CONGRESS.—The Secretary shall transmit, annually, 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. 1111. Emergency relief.

(a) Eligibility.—Section 125(d) is amended to read as follows:

“(d) Eligibility.—

“(1) IN GENERAL.—Subject to the requirements of this subsection, the Secretary may expend funds from the emergency fund authorized by this section for the repair or reconstruction of Federal-aid highways in accordance with the provisions of this chapter.

“(2) MAXIMUM TOTAL PROJECT COSTS.—

“(A) IN GENERAL.—The total cost of a project carried out under this section may not exceed the cost of repair or reconstruction of a comparable facility.

“(B) COMPARABLE FACILITY DEFINED.—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.

“(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 pursuant to 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 in a fiscal year in the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands may not exceed $20,000,000.

“(5) TEMPORARY SUBSTITUTE HIGHWAY TRAFFIC SERVICE.—Notwithstanding any other provision of this chapter, 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, may be expended from the emergency fund under this section authorized for Federal-aid highways.

“(6) APPLICATIONS; EMERGENCY DECLARATIONS.—Except as to highways, roads, and trails referred to in subsection (e), no funds may be expended under this section unless—

“(A) a declaration is made—

“(i) by the Governor of the State and concurred in by the Secretary, that an emergency exists; or

“(ii) by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) that a major disaster or emergency exists; and

“(B) not later than 2 years after a declaration is made under subparagraph (A), the Secretary has received an application for assistance from the State transportation department that includes a comprehensive list of potentially eligible project sites and repair costs.”.

(b) Tribal roads, Federal lands highways, and public roads on Federal lands.—Section 125(e) is amended to read as follows:

“(e) Tribal roads, Federal lands highways, and public roads on Federal lands.—

“(1) USE OF EMERGENCY FUND.—Notwithstanding subsection (d)(1), the Secretary may expend funds from the emergency fund authorized by this section, either independently or in cooperation with any other branch of the Government, a State agency, tribal organization, organization, or person, for the repair or reconstruction of tribal roads, Federal lands highways, and other federally owned roads that are open to public travel, whether or not such roads are Federal-aid highways.

“(2) REIMBURSEMENTS.—The Secretary may reimburse Federal agencies, State (including political subdivisions of the States) agencies, and Indian tribal governments for expenditures made on projects determined eligible under this section, including expenditures for emergency repairs made before a determination of eligibility. Such 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 the budget authority associated with the expenditure shall be restored to the agency from which it was derived and shall be available for obligation until the end of the fiscal year following the year in which the transfer occurs.

“(3) OPEN TO PUBLIC TRAVEL DEFINED.—In this subsection, the term ‘open to public travel’ means that, except during scheduled periods, extreme weather conditions, or emergencies, the road is open to the general public for use with a standard passenger auto, without restrictive gates or prohibitive signs or regulations, other than for general traffic control or restrictions based on size, weight, or class of registration.”.

(c) Rulemaking.—Not later than 6 months after the date of enactment of this Act, the Secretary shall initiate a rulemaking to update regulations governing the emergency relief program under section 125 of title 23, United States Code, to—

(1) ensure that allocations are made to States only for sums that the State will be able to obligate in the current fiscal year;

(2) determine whether to raise the threshold for an eligible event and raise such threshold if warranted; and

(3) address such other matters as the Secretary considers appropriate.

(d) Improving program implementation.—The Secretary shall take steps to—

(1) improve training for Federal and State officials on emergency relief requirements and processes;

(2) establish an Internet Web site containing information on best practices for the implementation of the emergency relief program;

(3) address program differences with the disaster assistance program of the Federal Emergency Management Agency; and

(4) provide guidance on performing a benefit-cost analysis to justify cases in which a betterment is eligible for funding under the emergency relief program.

SEC. 1112. Uniform transferability of Federal-aid highway funds.

Section 126 is amended to read as follows:

§ 126. Uniform transferability of Federal-aid highway funds

“(a) General rule.—Notwithstanding any other provision of law, but subject to subsection (b), a State may transfer not to exceed 25 percent of the State’s apportionment under paragraph (1), (3), or (5) of section 104(b) for a fiscal year to any other apportionment of the State under any of those paragraphs for that fiscal year.

“(b) Application to certain set-Asides.—No funds may be transferred under this section that are subject to section 104(f) or section 133(d)(3).”.

SEC. 1113. Ferry boats and ferry terminal facilities.

Section 147 is amended—

(1) in subsection (b) by striking “ferry boats, ferry terminals, and ferry maintenance facilities” and inserting “ferry boats and ferry terminals”;

(2) by striking subsections (c), (d), and (e) and inserting the following:

“(c) Apportionment of funds.—The Secretary shall apportion the sums authorized to be appropriated for expenditure on the construction of ferry boats and ferry terminal facilities for each fiscal year among eligible States in the following manner:

“(1) 35 percent based on the total annual number of vehicles carried by ferry systems operating in each eligible State.

“(2) 35 percent based on the total annual number of passengers (including passengers in vehicles) carried by ferry systems operating in each eligible State.

“(3) 30 percent based on the total nautical route miles serviced by ferry systems operating in each eligible State.

“(d) Eligible State defined.—In this section, the term ‘eligible State’ means a State that has a ferry system operating in the State or between the State and another State.”; and

(3) by redesignating subsection (f) as subsection (e).

SEC. 1114. National highway bridge and tunnel inventory and inspection program.

(a) In general.—Section 151 is amended to read as follows:

§ 151. National highway bridge and tunnel inventory and inspection program

“(a) National highway bridge and tunnel inventory.—The Secretary, in consultation with the States and Federal agencies with jurisdiction over highway bridges and tunnels, shall—

“(1) inventory all bridges on public roads, on and off Federal-aid highways, including tribally owned and federally owned bridges, that are 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) identify each bridge or tunnel inventoried under paragraph (1) or (2) that is structurally deficient or functionally obsolete;

“(4) assign a risk-based priority for replacement or rehabilitation of each structurally deficient bridge or tunnel identified under paragraph (3) after consideration of safety, serviceability, 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 or tunnel is diminished; and

“(5) determine the cost of replacing each structurally deficient bridge or tunnel identified under paragraph (3) with a comparable facility or the cost of rehabilitating the bridge or tunnel.

“(b) National highway bridge and tunnel inspection standards.—

“(1) IN GENERAL.—The Secretary shall establish and maintain inspection standards for the proper safety inspection and evaluation of all highway bridges and tunnels described in subsections (a)(1) and (a)(2). The standards shall be designed to ensure uniformity in the conduct of such inspections and evaluations.

“(2) MINIMUM REQUIREMENTS FOR INSPECTION STANDARDS.—At a minimum, the standards established under paragraph (1) shall—

“(A) specify, in detail, the method by which inspections will be carried out by States, Federal agencies, and tribal governments;

“(B) establish the maximum time period between inspections;

“(C) establish the qualifications for those charged with carrying out inspections;

“(D) require each State, Federal agency, and tribal government to maintain and make available to the Secretary upon request—

“(i) written reports on the results of highway bridge and tunnel inspections, together with notations of any action taken pursuant to the findings of such inspections; and

“(ii) inventory data for all highway bridges and tunnels described in subsections (a)(1) and (a)(2) under the jurisdiction of the State, Federal agency, or tribal government that reflect the findings of the most recent highway bridge and tunnel inspections;

“(E) establish a procedure for national certification of highway bridge and tunnel inspectors;

“(F) establish, in consultation with the States, Federal agencies, and interested and knowledgeable private organizations and individuals, procedures for the Secretary to conduct reviews of State and Federal agency compliance with the standards established under this subsection; and

“(G) establish, in consultation with the States, Federal agencies, and interested and knowledgeable private organizations and individuals, procedures for the States to follow in reporting to the Secretary—

“(i) critical findings relating to structural 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).

“(3) COMPLIANCE REQUIREMENTS.—

“(A) REVIEWS OF STATE COMPLIANCE.—The Secretary shall annually review State compliance with the standards established under this section.

“(B) FINDINGS OF NONCOMPLIANCE.—If the Secretary identifies noncompliance by a State in conducting an annual review under subparagraph (A), the Secretary shall issue a report detailing the noncompliance by December 31 of the calendar year in which the review is conducted and shall provide the State an opportunity to address the noncompliance by—

“(i) developing a corrective action plan to remedy the noncompliance; or

“(ii) resolving the noncompliance within 45 days of receiving notification of the noncompliance.

“(4) PENALTY FOR NONCOMPLIANCE.—

“(A) FUNDING REQUIREMENT.—If the Secretary identifies noncompliance by a State in conducting an annual review under paragraph (3)(A) in a calendar year, and the State fails to address the noncompliance in the manner described in paragraph (3)(B) by August 1 of the succeeding year, on October 1 of such succeeding year, and each year thereafter as necessary, the Secretary shall require the State to dedicate funds apportioned to the State under sections 104(b)(1) and 104(b)(3) to correct the noncompliance.

“(B) AMOUNT.—The amount of the funds dedicated to correcting the noncompliance in accordance with subparagraph (A) shall—

“(i) be determined by the State based on an analysis of the actions needed to address the noncompliance; and

“(ii) require approval by the Secretary.

“(c) Training program for bridge and tunnel inspectors.—The Secretary, in cooperation with State transportation departments, shall establish a program designed to train appropriate personnel to carry out highway bridge and tunnel inspections.

“(d) 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 sections 104(b)(1), 104(b)(3), and 104(b)(5);

“(3) an Indian tribe may use funds made available to the Indian tribe under section 502; and

“(4) a Federal agency may use funds made available to the agency under section 503.”.

(b) Clerical amendment.—The analysis for chapter 1 is amended by striking the item relating to section 151 and inserting the following:


“151. National highway bridge and tunnel inventory and inspection program.”.

SEC. 1115. Minimum investment in highway bridges.

(a) Minimum investment requirements.—

(1) NATIONAL HIGHWAY SYSTEM BRIDGES.—Out of amounts apportioned to a State for a fiscal year under each of sections 104(b)(1) and 104(b)(3) of title 23, United States Code, an amount equal to 10 percent of such amounts shall be available to the State only for eligible projects on highway bridges on the National Highway System if the Secretary determines under paragraph (3) for the fiscal year that more than 10 percent of the total deck area of highway bridges in the State on the National Highway System is located on highway bridges that have been classified as structurally deficient.

(2) BRIDGES NOT ON FEDERAL-AID HIGHWAYS.—Out of amounts apportioned to a State for a fiscal year under section 104(b)(3) of title 23, United States Code, an amount equal to 110 percent of the amount that the State was required to expend for fiscal year 2009 on projects under section 144(f)(2) of such title (as in effect on the day before the date of enactment of this Act) shall be available to the State only for eligible projects on highway bridges not on Federal-aid highways if the Secretary determines under paragraph (3) for the fiscal year that—

(A) more than 15 percent of the total deck area of highway bridges not on Federal-aid highways in the State is located on highway bridges not on Federal-aid highways that have been classified as structurally deficient; or

(B) more than 2,000 highway bridges not on Federal-aid highways in the State are classified as structurally deficient.

(3) USE OF DATA IN NATIONAL BRIDGE AND TUNNEL INVENTORY.—The Secretary shall make the determinations under paragraphs (1) and (2) with respect to a State for a fiscal year based on an average of the final data concerning highway bridges in the State contained in the national bridge and tunnel inventory for the most recent 3 calendar years for which such data are available.

(4) APPLICABILITY.—This subsection shall apply to amounts apportioned for each of fiscal years 2013 through 2016.

(5) DEFINITIONS.—In this subsection, the following definitions apply:

(A) ELIGIBLE PROJECT.—The term “eligible project” means a project to replace (including replacement with fill material), rehabilitate, preserve, or protect (including through painting, scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) a bridge or tunnel on a public road of any functional classification.

(B) NATIONAL BRIDGE AND TUNNEL INVENTORY.—The term “national bridge and tunnel inventory” means the national bridge and tunnel inventory established under section 151 of title 23, United States Code (as amended by this title).

(b) Bridge rehabilitation and replacement.—Section 217(e) is amended by striking “then such bridge” and all that follows before the period at the end and inserting “the State carrying out the rehabilitation or replacement is encouraged to provide such safe accommodations as part of the rehabilitation or replacement”.

SEC. 1116. Minimum penalties for repeat offenders for driving while intoxicated or driving under the influence.

(a) Definitions.—Section 164(a) 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 paragraph (2) of this subsection, by amending subparagraph (A) to read as follows:

“(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 with limited driving privileges permitted (subject to requirements established under State law) if an ignition interlock device is installed for not less than 1 year on each motor vehicle owned or operated, or both, by the individual;”.

(b) Transfer of funds.—Section 164(b)(1)(A) is amended by striking “alcohol-impaired driving countermeasures” and inserting “projects and activities addressing impaired driving (as such term is defined in section 402(p)(11))”.

SEC. 1117. Puerto Rico highway program.

(a) In general.—Section 165 is amended by striking subsections (a) and (b) and inserting the following:

“(a) Allocation of funds.—On October 1 of each fiscal year, the Secretary shall allocate the funds made available for the fiscal year to carry out this section to the Commonwealth of Puerto Rico to carry out a highway program in the Commonwealth.

“(b) Applicability of title.—Amounts made available to carry out this section shall be available for obligation in the same manner as if such funds were apportioned under this chapter.”.

(b) Conforming Amendment.—Section 165 is amended—

(1) in subsection (c)(1) by striking “sections 104(b) and 144” and inserting “section 104(b)”; and

(2) in subsection (d) by striking “sections 104 and 144” and inserting “section 104”.

SEC. 1118. Appalachian development highway system.

(a) Apportionment.—The Secretary shall apportion funds made available under section 1101(a) for the Appalachian development highway system program for each of fiscal years 2013 through 2016 among the States in the ratio that—

(1) the latest available cost to complete estimate for the Appalachian development highway system under section 14501 of title 40, United States Code, with respect to each State; bears to

(2) the latest available cost to complete estimate for that system with respect to all States.

(b) Minimum and maximum apportionment.—Notwithstanding subsection (a), each State that receives an apportionment under subsection (a) shall receive—

(1) not less than 1 percent of the funds apportioned under this section; and

(2) not more than 25 percent of the funds apportioned under this section.

(c) Applicability of title 23.—Funds made available under section 1101(a) of this Act for the Appalachian development highway system program shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, except that the Federal share of the cost of any project under this section shall be determined in accordance with section 14501 of title 40, United States Code, and such funds shall be available to construct highways and access roads under such section 14501 and shall remain available until expended.

(d) Credit for non-Federal share.—Section 120(j)(1)(A) is amended by striking “and the Appalachian development highway system program under section 14501 of title 40”.

SEC. 1119. References to Mass Transit Account.

Any reference to the Mass Transit Account of the Highway Trust Fund in title 23 or 49, United States Code, or in any other provision of law shall be deemed to refer to the Alternative Transportation Account of the Highway Trust Fund.

SEC. 1201. Transportation infrastructure finance and innovation.

(a) Definitions.—

(1) ELIGIBLE PROJECT COSTS.—Section 601(a)(1) is amended in the matter preceding subparagraph (A) by inserting “(regardless of when incurred)” after “including the cost”.

(2) CONTINGENT COMMITMENT.—Section 601(a) is amended—

(A) by redesignating paragraphs (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), and (14) as paragraphs (3), (4), (5), (6), (7), (9), (10), (11), (12), (14), (15), (16), and (17), respectively; and

(B) by inserting after paragraph (1) the following:

“(2) CONTINGENT COMMITMENT.—The term ‘contingent commitment’ means a commitment to obligate an amount from future available budget authority, but is not an obligation of the Federal Government.”.

(3) MASTER CREDIT AGREEMENT.—Section 601(a) (as amended by paragraph (2)(A) of this subsection) is further amended by inserting after paragraph (7) the following:

“(8) MASTER CREDIT AGREEMENT.—The term ‘master credit agreement’ means an agreement entered into by and between the Secretary and an obligor for a project that—

“(A) makes contingent commitments of one or more secured loans or other Federal credit instruments at future dates, subject to the provision of future budget authority;

“(B) establishes the amounts and general terms and conditions of such secured loans or other Federal credit instruments;

“(C) identifies the dedicated revenue sources that will secure the repayment of such secured loans or other Federal credit instruments, which may differ by project; and

“(D) provides for the obligation of funds for such a secured loan or other Federal credit instrument, subject to the provision of future budget authority, for a project included in the agreement after all requirements under this section have been met for the project.”.

(4) OBLIGOR.—Section 601(a)(9) (as redesignated by paragraph (2)(A) of this subsection) is amended by inserting “limited liability company,” after “corporation,”.

(5) PROJECT.—Section 601(a)(10) (as redesignated by paragraph (2)(A) of this subsection) is amended—

(A) by striking “and” at the end of subparagraph (C);

(B) by striking the period at the end of subparagraph (D) and inserting a semicolon; and

(C) by adding at the end the following:

“(E) a program of related transportation projects that—

“(i) are coordinated to achieve a common transportation goal;

“(ii) are eligible for funding under this title or chapter 53 of title 49; and

“(iii) together receive not more than 30 percent of their funding for capital costs from Federal grant funds made available under this title or chapter 53 of title 49; and

“(F) a highway, transit, or pedestrian project, or grouping of projects, that—

“(i) improves mobility; and

“(ii) is located within the station area of a transit, passenger rail, or intercity bus station.”.

(6) RURAL INFRASTRUCTURE PROJECT.—Section 601(a) (as amended by paragraph (2)(A) of this subsection) is further amended by inserting after paragraph (12) the following:

“(13) RURAL INFRASTRUCTURE PROJECT.—The term ‘rural infrastructure project’ means a surface transportation infrastructure project located in any area other than an urbanized area that has a population of greater than 250,000 inhabitants.”.

(7) SUBSIDY AMOUNT.—Section 601(a)(16) (as redesignated by paragraph (2)(A) of this subsection) is amended by inserting “, or other source of funds provided pursuant to section 608(c)(2),” after “budget authority”.

(b) Project applications and determinations of eligibility.—

(1) IN GENERAL.—Section 602 is amended to read as follows:

§ 602. Project applications and determinations of eligibility

“(a) Project applications.—

“(1) IN GENERAL.—A State, local government, agency or instrumentality of a State or local government, public authority, private party to a public-private partnership, or any other legal entity undertaking a project may submit to the Secretary an application requesting financial assistance under this chapter for the project.

“(2) MASTER CREDIT AGREEMENTS.—An application submitted under paragraph (1) may request that financial assistance under this chapter be provided under a master credit agreement.

“(3) 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 an application to the Secretary under paragraph (1) under which a private party to a public-private partnership will be the obligor and will be identified later through completion of a procurement and selection of the private party.

“(b) Eligibility.—

“(1) APPROVAL.—The Secretary shall approve an application submitted under subsection (a)(1) for each project that meets the criteria specified in paragraph (2).

“(2) CRITERIA.—To be eligible to receive financial assistance under this chapter, a project shall meet the following criteria:

“(A) INCLUSION IN TRANSPORTATION PLANS AND PROGRAMS.—The project shall satisfy the applicable planning and programmatic requirements of sections 5203 and 5204 of title 49—

“(i) in the case of an application for financial assistance to be provided under a master credit agreement, at such time as credit assistance is provided for the project pursuant to the master credit agreement; and

“(ii) in the case of any other project application, at such time as an agreement to make available a Federal credit instrument is entered into under this chapter.

“(B) CREDITWORTHINESS.—

“(i) IN GENERAL.—The project shall satisfy applicable creditworthiness standards, including, at a minimum—

“(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.

“(ii) AMOUNTS LESS THAN $75,000,000.—Notwithstanding clauses (i)(III) and (i)(IV), if the senior debt and Federal credit instrument is for an amount less than $75,000,000, 1 rating agency opinion for each of the senior debt and Federal credit instrument shall be sufficient.

“(iii) FEDERAL CREDIT INSTRUMENTS THAT ARE THE SENIOR DEBT.—Notwithstanding clauses (i)(III) and (i)(IV), 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.

“(C) ELIGIBLE PROJECT COSTS.—The eligible costs of the project—

“(i) in the case of a project described in section 601(a)(9)(F) or a project principally involving the installation of an intelligent transportation system, shall be reasonably anticipated to equal or exceed $15,000,000;

“(ii) in the case of a project for which financial assistance will be provided under a master credit agreement, shall be reasonably anticipated to equal or exceed $1,000,000,000;

“(iii) in the case of a rural infrastructure project, shall be reasonably anticipated to equal or exceed $25,000,000; and

“(iv) in the case of any other project, shall be reasonably anticipated to equal or exceed the lesser of—

“(I) $50,000,000; or

“(II) 3313 percent of the amount apportioned, out of amounts made available from the Highway Trust Fund (other than the Alternative Transportation Account), to the State in which the project is located for Federal-aid highway and highway safety construction programs for the most recently completed fiscal year.

“(D) DEDICATED REVENUE SOURCES.—The Federal credit instrument for the project shall be repayable, in whole or in part, from tolls, user fees, payments owing to the obligor under a public-private partnership, or other dedicated revenue sources that also secure or fund the project obligations.

“(E) REGIONAL SIGNIFICANCE.—The project shall be regionally significant (as defined in regulations implementing sections 134 and 135 (as in effect on the day before the date of enactment of the American Energy and Infrastructure Jobs Act of 2012)) or otherwise significantly enhance the national transportation system.

“(F) PUBLIC SPONSORSHIP OF PRIVATE ENTITIES.—In the case of a project 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 shall be publicly sponsored as provided under subsection (a).

“(G) BENEFICIAL EFFECTS.—The Secretary shall determine that financial assistance for the project under this chapter will—

“(i) foster an innovative public-private partnership and attract private debt or equity investment for the project;

“(ii) enable the project to proceed at an earlier date than the project would otherwise be able to proceed or reduce the project’s life cycle costs, including debt service costs; and

“(iii) reduce the contribution of Federal grant assistance for the project.

“(H) PROJECT READINESS.—The applicant shall demonstrate that the contracting process for construction of the project can be commenced not later than 90 days after the date on which a Federal credit instrument is secured for the project under this chapter.

“(c) Preliminary rating opinion letter.—For purposes of subsection (b)(2)(B), the Secretary shall require each applicant for a project to provide a preliminary rating opinion letter from at least 1 rating agency indicating that the project’s senior obligations, which may consist, in whole or in part, of the Federal credit instrument, have the potential to achieve an investment-grade rating.

“(d) Approval of applications and funding.—

“(1) IN GENERAL.—The Secretary shall—

“(A) approve applications for projects that meet the criteria specified in subsection (b)(2) in the order in which the Secretary receives the applications; and

“(B) commit or conditionally commit budget authority for projects, out of amounts made available to carry out this chapter for a fiscal year, in the order in which the Secretary approves the applications for such projects.

“(2) INSUFFICIENT FUNDS.—If the Secretary approves an application submitted under subsection (a)(1) for a project in a fiscal year, but is unable to provide financial assistance for the project in that fiscal year as a result of prior commitments or conditional commitments of budget authority under this chapter, the Secretary shall provide the project sponsor with the option of receiving such financial assistance as soon as sufficient budget authority is made available to carry out this chapter in a subsequent fiscal year.

“(e) Procedures for determining project eligibility.—

“(1) ESTABLISHMENT.—The Secretary shall establish procedures for—

“(A) processing applications received under subsection (a)(1) requesting financial assistance for projects; and

“(B) approving or disapproving the applications based on whether the projects meet the criteria specified in subsection (b)(2).

“(2) APPLICATION PROCESSING PROCEDURES.—The procedures shall meet the following requirements:

“(A) The procedures may not restrict when applications may be filed.

“(B) The procedures shall ensure that—

“(i) the Secretary will provide written notice to an applicant, on or before the 15th day following the date of receipt of the applicant’s application, informing the applicant of whether the application is complete;

“(ii) if the application is complete, the Secretary will provide written notice to the applicant, on or before the 60th day following the date of issuance of written notice for the application under clause (i), informing the applicant of whether the Secretary has approved or disapproved the application;

“(iii) if the application is not complete, the Secretary will provide written notice to the applicant, together with the written notice issued for the application under clause (i), informing the applicant of the information and materials needed to complete the application; and

“(iv) if the Secretary does not provide written notice to an applicant under clause (i) in the 15-day period specified in clause (i)—

“(I) the applicant’s application is deemed complete; and

“(II) the Secretary will provide written notice to the applicant, on or before the 60th day following the last day of such 15-day period, informing the applicant of whether the Secretary has approved or disapproved the application.

“(C) The procedures may not use eligibility criteria that are supplemental to those established by this chapter.

“(D) In accordance with subsection (b)(1), the procedures shall require approval of an application if the project meets the eligibility criteria specified in subsection (b)(2).

“(E) The procedures shall require that any written notice of disapproval of an application identify the eligibility criteria that were not satisfied and contain an explanation of the deficiencies that resulted in failure to meet such criteria.

“(3) SPECIAL RULES FOR MASTER CREDIT AGREEMENTS.—The Secretary shall issue special rules for—

“(A) processing applications under which financial assistance will be provided under a master credit agreement; and

“(B) approving or disapproving such applications based on whether the proposed project or program of related projects meets the applicable eligibility criteria specified in section 601(a)(7).

“(f) Application approval.—Approval of an application for a project under subsection (a)(1) qualifies the project for execution of a conditional term sheet establishing a conditional commitment of credit assistance.

“(g) Federal requirements.—In addition to the requirements of this title for highway projects, chapter 53 of title 49 for public transportation projects, and 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 the funds:

“(1) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).

“(2) The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

“(3) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

“(h) Development phase activities.—Any credit instrument secured under this chapter may be used to finance 100 percent of the cost of development phase activities as described in section 601(a)(1)(A) if the total amount of the credit instrument does not exceed the maximum amount for such instrument prescribed in this chapter.”.

(2) CLERICAL AMENDMENT.—The analysis for chapter 6 is amended by striking the item relating to section 602 and inserting the following:


“602. Project applications and determinations of eligibility.”.

(c) Secured loans.—

(1) IN GENERAL.—

(A) APPROVAL OF PROJECTS.—Section 603(1) is amended by striking “selected” each place it appears and inserting “approved”.

(B) AGREEMENTS.—Section 603(a)(1) is amended in the matter preceding subparagraph (A) by inserting “, including master credit agreements,” after “agreements”.

(C) RISK ASSESSMENT.—Section 603(a)(3) is amended by striking “602(b)(2)(B)” and inserting “602(c)”.

(2) TERMS AND LIMITATIONS.—

(A) IN GENERAL.—Section 603(b)(1) is amended by inserting “are consistent with this chapter and its purpose and that” before “the Secretary determines appropriate.”.

(B) MAXIMUM AMOUNTS.—Section 603(b)(2) is amended to read as follows:

“(2) MAXIMUM AMOUNTS.—The amount of the secured loan may not exceed 49 percent of the reasonably anticipated eligible project costs.”.

(C) PAYMENT.—Section 603(b)(3)(A)(i) is amended by inserting “payments owing to the obligor under a public-private partnership,” before “or other dedicated revenue sources”.

(D) NONSUBORDINATION.—Section 603(b)(6) is amended by inserting after “project obligations” the following: “entered into after the date on which the agreement to provide the secured loan is entered into under this section (except that such obligations do not include project obligations issued to refund prior project obligations or project obligations not contemplated by the parties at the time)”.

(d) Lines of credit.—

(1) APPROVAL OF PROJECTS.—Section 604(a)(1) is amended by striking “selected” and inserting “approved”.

(2) RISK ASSESSMENT.—Section 604(a)(3) is amended by striking “602(b)(2)(B)” and inserting “602(c)”.

(3) TERMS AND LIMITATIONS.—

(A) IN GENERAL.—Section 604(b)(1) is amended by inserting “are consistent with this chapter and its purpose and that” before “the Secretary determines appropriate.”.

(B) MAXIMUM AMOUNTS.—Section 604(b)(2) is amended to read as follows:

“(2) MAXIMUM AMOUNTS.—The total amount of the line of credit may not exceed 49 percent of the reasonably anticipated eligible project costs.”.

(C) SECURITY.—Section 604(b)(5)(A)(i) is amended by inserting “payments owing to the obligor under a public-private partnership,” before “or other dedicated revenue sources”.

(D) NONSUBORDINATION.—Section 604(b)(8) is amended by inserting after “project obligations” the following: “entered into after the date on which the agreement to provide the direct loan is entered into under this section (except that such obligations do not include project obligations issued to refund prior project obligations or project obligations not contemplated by the parties at the time)”.

(E) RELATIONSHIP TO OTHER CREDIT INSTRUMENTS.—Section 604(b)(10) is amended by striking “33 percent” and inserting “49 percent”.

(e) Program administration.—Section 605 is amended by adding at the end the following:

“(e) Expedited processing.—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.”.

(f) Funding.—

(1) IN GENERAL.—Section 608(a)(1) is amended to read as follows:

“(1) IN GENERAL.—There is authorized to be appropriated from the Highway Trust Fund (other than the Alternative Transportation Account) to carry out this chapter $1,000,000,000 for each of fiscal years 2013 through 2016.”.

(2) ADMINISTRATIVE COSTS.—Section 608(a)(3) is amended by striking “$2,200,000 for each of fiscal years 2005 through 2009” and inserting “$3,250,000 for each of fiscal years 2013 through 2016”.

(3) PROJECTS UNDER A MASTER CREDIT AGREEMENT.—Section 608(a) is amended by adding at the end the following:

“(4) PROJECTS UNDER A MASTER CREDIT AGREEMENT.—The Secretary may commit or conditionally commit to projects covered by master credit agreements not more than 15 percent of the amount of budget authority for each fiscal year under paragraph (1). This limitation does not apply to a project under a master credit agreement that has received final credit approval.”.

(4) EXHAUSTION OF AVAILABILITY.—Section 608 is amended by adding at the end the following:

“(c) Exhaustion of Availability.—

“(1) NOTICE OF EXHAUSTION.—Whenever the Secretary fully commits budget authority available in a fiscal year under subparagraph (a)(1), the Secretary shall—

“(A) publish notice of that fact in the Federal Register; and

“(B) deliver written notice of that fact to the applicants under all approved and pending applications.

“(2) ELECTION TO USE OTHER SOURCES FOR SUBSIDY AMOUNT.—An applicant may elect in its application or at any time after receipt of such notice to pay the subsidy amount from available sources other than the budget authority available in a fiscal year under subparagraph (a)(1), including from Federal assistance available to the applicant under this title or chapter 53 of title 49.

“(d) Use of unallocated funds.—

“(1) DISTRIBUTION AMONG STATES.—On September 1 of each fiscal year, the Secretary shall distribute any remaining budget authority made available in subsection (a)(1) among the States in the ratio that—

“(A) the amount authorized to be apportioned, out of amounts made available from the Highway Trust Fund (other than the Alternative Transportation Account), to each State for the National Highway System program, the surface transportation program, and highway safety improvement program for the fiscal year; bears to

“(B) the amount authorized to be apportioned, out of amounts made available from the Highway Trust Fund (other than the Alternative Transportation Account), to all States for the National Highway System program, the surface transportation program, and highway safety improvement program for the fiscal year.

“(2) ELIGIBLE PURPOSES.—Such budget authority shall be available for any purpose eligible for funding under section 133.”.

SEC. 1202. State infrastructure bank program.

(a) Funding.—

(1) IN GENERAL.—Section 610(d) is amended—

(A) by striking “fiscal years 2005 through 2009” each place that it appears and inserting “fiscal years 2013 through 2016”; and

(B) by striking “10 percent” each place that it appears and inserting “15 percent”.

(2) HIGHWAY ACCOUNTS.—Section 610(d)(1) is amended—

(A) in subparagraph (A) by striking “and” at the end;

(B) in subparagraph (B) by striking the period at the end and inserting “; and”; and

(C) by adding at the end the following:

“(C) 100 percent of the funds apportioned to the State for each of fiscal years 2013 through 2016 under section 611.”.

(b) Program administration.—Section 610(k) is amended by striking “fiscal years 2005 through 2009” and inserting “fiscal years 2013 through 2016”.

SEC. 1203. State infrastructure bank capitalization.

(a) In general.—Chapter 6 is amended by adding at the end the following:

§ 611. State infrastructure bank capitalization

“(a) Apportionment of funds.—On October 1 of each fiscal year, the Secretary shall apportion amounts made available to carry out this section for a fiscal year among the States in the ratio that—

“(1) the amount authorized to be apportioned, out of amounts made available from the Highway Trust Fund (other than the Alternative Transportation Account), to each State for the National Highway System program, the surface transportation program, and highway safety improvement program for the fiscal year; bears to

“(2) the amount authorized to be apportioned, out of amounts made available from the Highway Trust Fund (other than the Alternative Transportation Account), to all States for the National Highway System program, the surface transportation program, and highway safety improvement program for the fiscal year.

“(b) Eligible uses of funding.—

“(1) IN GENERAL.—Except as provided in paragraph (2), funds apportioned to a State under subsection (a) shall be used by the State to make capitalization grants to the highway account of the State’s infrastructure bank established under section 610.

“(2) FISCAL YEARS 2013 AND 2014.—Funds apportioned to a State under subsection (a) for fiscal years 2013 and 2014 may be used by the State for eligible projects on the National Highway System, as described in section 119(d).

“(c) Reapportionment of funds.—For fiscal year 2015 and each fiscal year thereafter, if by August 1 of the fiscal year a State does not obligate the funds apportioned to the State for the fiscal year under subsection (a) for providing capitalization grants described in subsection (b), the Secretary shall reapportion the remaining funds among those States that—

“(1) did obligate before such date all of the funds apportioned to the State for the fiscal year under subsection (a); and

“(2) certify to the Secretary that the State will use the additional funds to make capitalization grants described in subsection (b) before the end of the fiscal year.

“(d) Limitation.—Any reapportionment of funds pursuant to subsection (d) shall not require a recalculation of percentages under section 105.

“(e) Applicability of Federal law.—The requirements referred to in section 610(h) shall apply to any funds apportioned under this section.

“(f) Funding.—

“(1) IN GENERAL.—There is authorized to be appropriated out of the Highway Trust Fund (other than the Alternative Transportation Account) to carry out this section $750,000,000 for each of fiscal years 2013 through 2016.

“(2) CONTRACT AUTHORITY.—Funds made available under paragraph (1) shall be available for obligation in the same manner as if the funds were apportioned under chapter 1.”.

(b) Clerical amendment.—The analysis for chapter 6 is amended by adding at the end the following:


“611. State infrastructure bank capitalization.”.

SEC. 1204. Tolling.

(a) Amendment to tolling provision.—Section 129(a) is amended to read as follows:

“(a) Basic program.—

“(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 thereto;

“(B) initial construction of one 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;

“(C) initial construction of one 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 thereto;

“(E) reconstruction or replacement of a toll-free bridge or tunnel and conversion of the bridge or tunnel to a toll facility;

“(F) reconstruction, restoration, or rehabilitation 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 thereto constructed under this subsection must—

“(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 a private person or 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.—

“(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) 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, the public authority may use toll revenues for any other purpose for which Federal funds may be obligated by a State under this title.

“(B) ANNUAL AUDIT.—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 such audits to the Secretary. Upon 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 subsection (a)(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;

“(ii) develops, manages, and maintains a system that will automatically collect the toll; and

“(iii) establishes policies and procedures to—

“(I) manage the demand to use the facility by varying the toll amount that is charged; and

“(II) 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.—In the case of a toll facility under the jurisdiction of a public authority of a State (other than the State transportation department), upon request of the State transportation department and subject to such terms and conditions as such department and public authority may agree, the Secretary, working through the State department of transportation, shall reimburse such 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 such department would be reimbursed if such project was being carried out by such department. 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 such 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, requests modification of such agreement, the Secretary shall modify such agreement to allow the continuation of tolls in accordance with paragraph (3) without repayment of Federal funds.

“(8) LOANS.—

“(A) IN GENERAL.—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 it. Dedicated revenue sources for non-toll facilities include excise taxes, sales taxes, motor vehicle use fees, tax on real 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 American Energy and Infrastructure Jobs Act of 2012, before commencing any activity authorized under this section, the State must 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 no fewer than 2 occupants.

“(B) INITIAL CONSTRUCTION.—The term ‘initial construction’ means the construction of a highway, bridge, tunnel, or other facility at any time before it is open to traffic and does not include any improvement to a highway, bridge, tunnel, or other facility after it is open to traffic.

“(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 thereto constructed under this subsection.”.

(b) Electronic Toll Collection Interoperability Requirements.—Not later than 2 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. 1205. HOV facilities.

(a) HOV exceptions.—Section 166(b)(5) is amended—

(1) in subparagraphs (A) and (B) by striking “2009” and inserting “2016”; and

(2) in subparagraph (C)—

(A) by striking “subparagraph (B)” and inserting “this paragraph”; and

(B) by inserting “or equal to” after “less than”.

(b) Requirements applicable to tolls.—Section 166(c)(3) is amended to read as follows:

“(3) TOLL REVENUE.—Toll revenue collected under this section is subject to the requirements of section 129(a)(3).”.

(c) HOV facility management, operation, monitoring, and enforcement.—Section 166(d)(2) is amended by adding at the end the following:

“(D) MAINTENANCE OF OPERATING PERFORMANCE.—Not later than 6 months after a facility has been determined to be degraded pursuant to the standard specified in subparagraph (B), 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.”.

SEC. 1206. Public-private partnerships.

(a) Best practices.—The Secretary shall compile, and make available to the public on the Internet Web site 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 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, upon 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) 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. 1301. Highway safety improvement program.

Section 148 is amended to read as follows:

§ 148. Highway safety improvement program

“(a) Definitions.—In this section, the following definitions apply:

“(1) HIGHWAY SAFETY IMPROVEMENT PROGRAM.—The term ‘highway safety improvement program’ means the program carried out under this section.

“(2) HIGHWAY SAFETY IMPROVEMENT PROJECT.—The term ‘highway safety improvement project’ means a project consistent with an applicable State strategic highway safety plan that—

“(A) corrects or improves a roadway feature that constitutes a hazard to any road users; or

“(B) addresses any other highway safety problem.

“(3) PROJECT TO MAINTAIN MINIMUM LEVELS OF RETROREFLECTIVITY.—The term ‘project to maintain minimum levels of retroreflectivity’ means a project undertaken pursuant to the provisions of the Manual on Uniform Traffic Control Devices that require the use of an assessment or management method designed to maintain highway sign or pavement marking retroreflectivity at or above minimum levels prescribed in the Manual.

“(4) ROAD USERS.—The term ‘road users’ means motor vehicle drivers and passengers, public transportation operators and users, truck drivers, bicyclists, motorcyclists, and pedestrians, including persons with disabilities.

“(5) SAFETY DATA.—The term ‘safety data’ includes crash, roadway, driver licensing, and traffic data with respect to all public roads and, for highway-rail grade crossings, data on the characteristics of highway and train traffic.

“(6) 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) projects consistent with an applicable State strategic highway safety plan that promote the awareness of the public and educate the public concerning highway safety matters (including motorcycle safety);

“(ii) projects to enforce highway safety laws; and

“(iii) projects to provide infrastructure and equipment to support emergency services.

“(7) STATE HIGHWAY SAFETY IMPROVEMENT PROGRAM.—The term ‘State highway safety improvement program’ means a program of highway safety improvement projects carried out as part of the statewide transportation improvement program under section 5204(g) of title 49.

“(8) STATE STRATEGIC HIGHWAY SAFETY PLAN.—The term ‘State strategic highway safety plan’ means a comprehensive, data-driven safety plan developed in accordance with subsection (c)(2).

“(b) In general.—The Secretary shall carry out a highway safety improvement program that is consistent with achieving a significant reduction in traffic fatalities and serious injuries on all public roads.

“(c) State highway safety improvement programs.—

“(1) IN GENERAL.—To obligate funds apportioned under section 104(b)(5) to carry out this section, a State shall have in effect a State highway safety improvement program that—

“(A) includes a set of projects that are consistent with the State strategic highway safety plan of the State;

“(B) satisfies the requirements of this section; and

“(C) is consistent with the State’s statewide transportation improvement program under section 5204(g) of title 49.

“(2) STRATEGIC HIGHWAY SAFETY PLAN.—As part of the State highway safety improvement program of the State, each State shall have in effect, update at least every 2 years, and submit to the Secretary a State strategic highway safety plan that—

“(A) is developed after consultation with—

“(i) a highway safety representative of the Governor of the State;

“(ii) regional transportation planning organizations and metropolitan planning organizations, if any;

“(iii) representatives of major modes of transportation;

“(iv) State and local traffic enforcement officials;

“(v) representatives of entities conducting a Federal or State motor carrier safety program;

“(vi) motor vehicle administration agencies;

“(vii) a highway-rail grade crossing safety representative of the Governor of the State; and

“(viii) other major Federal, State, tribal, regional, and local safety stakeholders;

“(B) is approved by the Governor of the State or a responsible State agency;

“(C) defines State safety goals, including with respect to performance measures established under section 5206 of title 49;

“(D) addresses engineering, management, operation, education, enforcement, and emergency services elements of highway safety (including integrated, interoperable emergency communications) as key factors in evaluating highway projects;

“(E) analyzes and makes effective use of State, regional, and local safety data, including data from the safety data system required under subsection (e);

“(F) considers the results of Federal, State, regional, and local transportation and highway safety planning processes; and

“(G) considers the safety needs of, and high-fatality segments of, public roads.

“(3) IMPLEMENTATION.—

“(A) IDENTIFICATION AND ANALYSIS OF HIGHWAY SAFETY PROBLEMS AND OPPORTUNITIES.—As part of the State highway safety improvement program of the State, each State shall, including through use of the safety data system required under subsection (e)—

“(i) identify roadway features that constitute a hazard to road users;

“(ii) identify highway safety improvement projects on the basis of crash history (including crash rates), crash potential, or other data-supported means;

“(iii) establish the relative severity of the risks of roadway features based on crash, injury, fatality, traffic volume, and other relevant data (including the number and rates of crashes, injuries, and fatalities);

“(iv) identify the 100 most dangerous roads in the State, including specific intersections and sections of roads, based on the risk factors described in clause (iii);

“(v) consider whether highway safety improvement projects maximize opportunities to advance safety; and

“(vi) in conjunction with the National Highway Traffic Safety Administration and the Federal Motor Carrier Safety Administration, evaluate the progress made each year in achieving State safety goals identified in the State strategic highway safety plan.

“(B) SCHEDULE OF HIGHWAY SAFETY IMPROVEMENT PROJECTS.—As part of the State highway safety improvement program of the State, each State shall, including through use of the safety data system required under subsection (e)—

“(i) identify highway safety improvement projects;

“(ii) determine priorities for the correction of roadway features that constitute a hazard to road users as identified through safety data analysis; and

“(iii) establish and implement a schedule of highway safety improvement projects to address roadway features identified as constituting a hazard to road users.

“(4) ELIGIBLE PROJECTS.—

“(A) IN GENERAL.—A State may obligate funds apportioned to the State under section 104(b)(5) to carry out—

“(i) any highway safety improvement project on any public road or publicly owned pathway or trail;

“(ii) any project to put in effect or improve the safety data system required under subsection (e), without regard to whether the project is included in an applicable State strategic highway safety plan;

“(iii) 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;

“(iv) any project for roadway safety infrastructure improvements consistent with the recommendations included in the publication of the Federal Highway Administration entitled ‘Highway Design Handbook for Older Drivers and Pedestrians’ (Publication number FHWA RD–01–103), or any successor publication; or

“(v) as provided in subsection (d), other projects.

“(B) USE OF OTHER FUNDING FOR SAFETY IMPROVEMENT PROJECTS.—

“(i) 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.

“(ii) USE OF OTHER FUNDS.—States are encouraged to address the full scope of their safety needs and opportunities by using, for a highway safety improvement project, funds made available under other provisions of this title (except a provision that specifically prohibits that use).

“(C) AUTOMATED TRAFFIC ENFORCEMENT SYSTEMS.—

“(i) PROHIBITION.—A State may not obligate funds apportioned to the State under section 104(b) to carry out any program to purchase, operate, or maintain an automated traffic enforcement system.

“(ii) AUTOMATED TRAFFIC ENFORCEMENT SYSTEM DEFINED.—In this subparagraph, the term ‘automated traffic enforcement system’ means automated technology that monitors compliance with traffic laws.

“(5) UPDATED STATE STRATEGIC HIGHWAY SAFETY PLAN REQUIRED.—

“(A) IN GENERAL.—A State may obligate funds apportioned to the State under section 104(b)(5) for the second fiscal year beginning after the date of enactment of the American Energy and Infrastructure Jobs Act of 2012 only if the State has in effect and has submitted to the Secretary an updated State strategic highway safety plan that satisfies requirements under this subsection.

“(B) TRANSITION.—Before the second fiscal year beginning after the date of enactment of the American Energy and Infrastructure Jobs Act of 2012, a State may obligate funds apportioned to the State under section 104(b)(5) in a manner consistent with a State strategic highway safety plan of the State developed before such date of enactment.

“(d) Flexible funding.—To further the implementation of a State strategic highway safety plan and the achievement of performance measures established under section 5206 of title 49, a State may use not more than 10 percent of the funds apportioned to the State under section 104(b)(5) for a fiscal year to carry out safety projects under any other section if—

“(1) the use is consistent with the State strategic highway safety plan of the State; and

“(2) the State certifies to the Secretary that the funds are being used for the most effective projects for making progress toward achieving performance measures established under section 5206 of title 49.

“(e) Safety data system.—

“(1) IN GENERAL.—Not later than 1 year after the date of enactment of the American Energy and Infrastructure Jobs Act of 2012, each State, as part of the State highway safety improvement program of the State, shall have in effect a safety data system to—

“(A) collect and maintain a record of safety data with respect to all public roads in the State;

“(B) advance the capabilities of the State with respect to safety data collection, analysis, and integration;

“(C) identify roadway features that constitute a hazard to road users; and

“(D) perform safety problem identification and countermeasure analysis.

“(2) IMPROVEMENT EFFORTS.—Each State shall carry out projects, as needed, to ensure that the safety data system of the State enhances—

“(A) the timeliness, accuracy, completeness, uniformity, and accessibility of safety data with respect to all public roads in the State;

“(B) the ability of the State to integrate all safety data collected throughout the State;

“(C) the ability of State and national safety data systems to be compatible and interoperable;

“(D) the ability of the Secretary to observe and analyze national trends in crash rates, outcomes, and circumstances; and

“(E) the collection of data on crashes that involve a bicyclist or pedestrian.

“(3) EVALUATION OF IMPROVEMENT EFFORTS.—Each State shall collect and maintain a record of projects undertaken to improve the safety data system of the State and shall evaluate the effectiveness of such projects.

“(f) Transparency.—A State shall make all plans and reports submitted to the Secretary under this section available to the public through—

“(1) the Internet Web site of the State transportation department of the State; or

“(2) such other means as the Secretary determines to be appropriate.

“(g) Discovery and admission into evidence of certain reports, surveys, and information.—Notwithstanding any other provision of law, reports, surveys, schedules, lists, or data compiled or collected for any purpose directly relating to this section, or published in accordance with subsection (f), shall not be subject to discovery or admitted into evidence in a Federal or State court proceeding or considered for other purposes in any action for damages arising from any occurrence at a location identified or addressed in such reports, surveys, schedules, lists, or other data.

“(h) Federal share of highway safety improvement projects.—The Federal share of the cost of a highway safety improvement project carried out with funds apportioned to a State under section 104(b)(5) shall be 90 percent, unless a Federal share exceeding 90 percent would apply to the project under section 120 or 130.”.

SEC. 1302. Railway-highway crossings.

(a) Transparency of State surveys and schedules with respect to railway-highway crossings.—

(1) SURVEY AND SCHEDULE OF PROJECTS.—Section 130(d) is amended by adding at the end the following: “Each State shall make the surveys conducted and schedules implemented under this subsection available to the public on an appropriate Internet Web site of the State.”.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect 1 year after the date of enactment of this Act.

(b) Railway-Highway crossing information.—Section 130 is amended by adding at the end the following:

“(m) Railway-Highway Crossing Information.—

“(1) PRIORITY LISTS AND ACTION PLANS.—

“(A) IN GENERAL.—Not later than 1 year after the date of enactment of this subsection, each State shall compile and submit to the Secretary a report that includes—

“(i) a list of the 10 railway-highway crossings in the State that have the greatest need for safety improvements;

“(ii) an action plan that identifies projects and activities the State plans to carry out to improve safety at those railway-highway crossings; and

“(iii) a list of projects and activities the State carried out to improve safety at those railway-highway crossings during the 2-year period ending on the date on which the report is submitted to the Secretary.

“(B) UPDATES.—Each State shall update and submit to the Secretary, at least once every 2 years, the report of that State under subparagraph (A).

“(2) PUBLICATION OF REPORTS ON U.S. DOT WEB SITE.—The Secretary shall make the reports submitted under paragraph (1) available to the public on the Internet Web site of the Department of Transportation.

“(3) PUBLICATION OF REPORTS ON STATE WEB SITES.—Each State shall make the reports compiled under paragraph (1) available to the public on an appropriate Internet Web site of the State.

“(4) LIMITATION ON USE OF DATA IN JUDICIAL PROCEEDINGS.—Notwithstanding any other provision of law, any report, review, survey, schedule, list, data, information, or document of any kind compiled or collected pursuant to this subsection, including for the purpose of identifying, evaluating, or planning the safety enhancement of a potential accident site or railway-highway crossing pursuant 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 mentioned or addressed in such report, review, survey, schedule, list, data, information, or document.

“(5) NONCOMPLIANCE.—If the Secretary determines that a State is not in compliance with requirements under this subsection, the Secretary may withhold funding that would otherwise be apportioned to that State under this section.”.

SEC. 1303. Highway worker safety.

(a) Positive protective measures.—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, 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 where traffic is present and where workers have no means of escape, including tunnels and bridges, unless an engineering analysis determines such measures are not necessary;

(2) temporary longitudinal traffic barriers are used to protect workers on highway construction projects in stationary work zones lasting 2 weeks or more if traffic is present, the traffic will be traveling at a speed of 45 miles per hour or more, 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 engineering analysis determines such barriers are not necessary; or

(B) the project is located—

(i) in a State with a population density of 20 or fewer persons per square mile;

(ii) outside of an urbanized area; and

(iii) on a roadway with an annual average daily traffic load that is less than 100 vehicles per hour; and

(3) when positive protective measures are necessary for a highway construction project, such measures are paid for on a unit pay basis, unless doing so would create a conflict with innovative contracting approaches, including a design-build contract or a performance-based contract, under which the contractor is paid to assume a certain risk allocation and payment is generally made on a lump sum basis.

(b) Apparel.—Not later than 180 days after the date of enactment of this Act, the Secretary shall modify regulations issued pursuant to section 1402 of SAFETEA–LU (23 U.S.C. 401 note)—

(1) to allow fire services personnel, who are subject to the regulations, to wear apparel meeting the high visibility requirements set forth in NFPA 1971–2007 (Standard on Protective Ensembles for Structural Fire Fighting and Proximity Fire Fighting); and

(2) to not require such personnel to wear apparel meeting requirements set forth in ANSI/ISEA 107–2004.

SEC. 1401. National freight policy.

(a) Development.—Not later than 1 year after the date of enactment of this Act, and every 5 years thereafter, the Secretary, in consultation with interested public and private sector freight stakeholders, including representatives of ports, shippers, carriers, freight-related associations, the freight industry workforce, State transportation departments, and local governments, shall develop a 5-year National Freight Policy. Such policy shall be consistent with the State performance management process under section 5206(e)(1) of title 49, United States Code.

(b) Contents.—The National Freight Policy shall—

(1) specify goals, objectives, and milestones with respect to the expansion of freight transportation capacity and the improvement of freight transportation infrastructure in the United States;

(2) specify programs, strategies, and projects that will assist in achieving the goals, objectives, and milestones specified under paragraph (1);

(3) specify the manner in which the programs, strategies, and projects specified under paragraph (2) will achieve the goals, objectives, and milestones specified under paragraph (1), including with respect to a 5-year timeframe for meeting the goals, objectives, and milestones;

(4) identify protocols to promote and ensure the implementation of the National Freight Policy; and

(5) identify a cooperative process, which includes State and local governments, for implementing the National Freight Policy.

(c) Goals.—In developing the National Freight Policy, the Secretary shall consider the goals of—

(1) investing in freight transportation infrastructure to strengthen the economic competitiveness of the United States, reduce congestion, and increase productivity, particularly with respect to domestic industries and businesses that create high-value jobs;

(2) improving and maintaining existing freight transportation infrastructure to ensure that infrastructure meets appropriate standards;

(3) improving the capacity of freight infrastructure across different modes of transportation, reducing congestion, and increasing freight throughput;

(4) incorporating concepts of performance, innovation, competition, and accountability into the operation and maintenance of freight transportation infrastructure;

(5) increasing the usage and number of strategically-located, multi-modal freight transportation facilities to reduce congestion and emissions relating to highways in the United States;

(6) improving the safety of freight transportation;

(7) implementing new technologies to improve the coordination and efficiency of the movement of freight throughout the United States;

(8) improving methods for incorporating international trade estimates into transportation planning; and

(9) advancing the development of aerotropolis transportation systems, which are planned and coordinated multimodal freight and passenger transportation networks that, as determined by the Secretary, provide efficient, cost-effective, sustainable, and intermodal connectivity to a defined region of economic significance centered around a major airport.

(d) Reporting.—The Secretary shall include the National Freight Policy in the National Strategic Transportation Plan developed under section 5205 of title 49, United States Code.

(e) Commodity flow survey.—The Secretary, in consultation with other relevant Federal agencies, shall make changes to the commodity flow survey (conducted by the Bureau of Transportation Statistics pursuant to section 111(c)(5) of title 49, United States Code) that the Secretary determines will reduce identified freight data gaps and deficiencies and assist in the evaluation of forecasts of transportation demand.

SEC. 1402. 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 associations, the freight industry workforce, the State’s transportation department, and local governments.

(b) Role of committee.—A freight advisory committee 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 State’s freight plan described in section 1403 of this Act.

SEC. 1403. State freight plans.

(a) In general.—The Secretary shall encourage each State to develop a freight plan that provides a comprehensive plan for the State’s immediate and long-range planning activities and investments 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 State’s freight-related transportation investment decisions;

(3) a description of how such plan will improve the ability of the State to meet the national freight goals established under section 1401 of this Act and the performance targets established under section 5206 of title 49, 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; and

(5) for routes on which travel by heavy vehicles, including mining, agricultural, and timber vehicles, is projected to substantially deteriorate the condition of roadways, a description of improvements that may be required to reduce or impede such deterioration.

(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 5204 of title 49, United States Code.

SEC. 1404. Trucking productivity.

(a) Weight limitations.—Section 127(a) is amended by adding at the end the following:

“(13) PILOT PROGRAM.—

“(A) IN GENERAL.—The Secretary may carry out a pilot program under which the Secretary may authorize up to 3 States to allow, by special permit, the operation of vehicles with a gross vehicle weight of up to 126,000 pounds on segments on the Interstate System in the State.

“(B) REQUIREMENTS.—A State authorized under the pilot program under subparagraph (A) shall—

“(i) identify and submit to the Secretary for approval the segments on the Interstate System to be subject to the program and the configurations of vehicles to be allowed to operate under a special permit;

“(ii) allow vehicles subject to the program to operate on not more than 3 segments, which may be contiguous, of up to 25 miles each;

“(iii) require the loads of vehicles operating under a special permit to conform to such single axle, tandem axle, tridem axle, and bridge formula limits applicable in the State; and

“(iv) establish and collect a fee for vehicles operating under a special permit.

“(C) PROHIBITIONS.—The Secretary may prohibit the operation of a vehicle under a special permit if the Secretary determines that the operation poses an unreasonable safety risk based on an analysis of engineering data, safety data, or other applicable data.

“(D) DURATION.—The Secretary may authorize a State under the pilot program under subparagraph (A) for a period not to exceed 4 years.”.

(b) Additional vehicle weight provisions.—Section 127 is amended by adding at the end the following:

“(i) Special permits during periods of emergency.—

“(1) IN GENERAL.—A State may issue special permits with respect to a major disaster or emergency declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) to overweight vehicles and loads that can be easily dismantled or divided allowing operations on the Interstate System that would otherwise be prohibited under subsection (a), if—

“(A) the permits are issued in accordance with State law; and

“(B) the permits are issued exclusively to vehicles and loads that are delivering relief supplies in response to the major disaster or emergency.

“(2) EXPIRATION.—A permit issued with respect to a major disaster or emergency under paragraph (1) shall expire not later than 120 days after the date of the declaration of the major disaster or emergency as described in paragraph (1).

“(j) Emergency vehicles.—

“(1) IN GENERAL.—Notwithstanding subsection (a), a State may not enforce against an emergency vehicle a weight limit of—

“(A) less than 24,000 pounds on a single steering axle;

“(B) less than 33,500 pounds on a single drive axle;

“(C) less than 62,000 pounds on a tandem axle; or

“(D) less than 52,000 pounds on a tandem rear drive steer axle, up to a maximum gross vehicle weight of 86,000 pounds.

“(2) EMERGENCY VEHICLE DEFINED.—In this subsection, the term ‘emergency vehicle’ means a vehicle designed to be used under emergency conditions—

“(A) to transport personnel and equipment; and

“(B) to support the suppression of fires or mitigation of other hazardous situations.”.

(c) Waiver of highway funding reduction.—The total amount of funds apportioned to a State under section 104(b)(1) of title 23, United States Code, for any period may not be reduced under section 127(a) of such title on the basis that the State authorizes a vehicle to operate on the Interstate System in the State in accordance with the amendments made by this section.

(d) Length limitations.—Section 31111 of title 49, United States Code, is amended—

(1) in subsection (a) by adding at the end the following:

“(5) TRAILER TRANSPORTER TOWING UNIT.—The term ‘trailer transporter towing unit’ means a power unit that is not used to carry property when operating in a towaway trailer transporter combination.

“(6) TOWAWAY TRAILER TRANSPORTER COMBINATION.—The term ‘towaway trailer transporter combination’ means a combination of vehicles consisting of a trailer transporter towing unit and 2 trailers or semitrailers—

“(A) with a total weight that does not exceed 26,000 pounds; and

“(B) in which the trailers or semitrailers carry no property and constitute inventory property of a manufacturer, distributor, or dealer of such trailers or semitrailers.”; and

(2) in subsection (b)(1)—

(A) by striking subparagraph (A) and inserting the following:

“(A) imposes a vehicle length limitation, on any segment of the Dwight D. Eisenhower System of Interstate and Defense Highways (except a segment exempted under subsection (f)) and those classes of qualifying Federal-aid primary system highways designated by the Secretary of Transportation under subsection (e), of—

“(i) less than 45 feet on a bus;

“(ii) less than 53 feet on a semitrailer operating in a truck tractor-semitrailer combination; or

“(iii) notwithstanding section 31112, less than 33 feet on a semitrailer or trailer operating in a truck tractor-semitrailer-trailer combination;”;

(B) in subparagraph (E) by striking “; or” and inserting a semicolon;

(C) in subparagraph (F) by striking the period at the end and inserting a semicolon; and

(D) by adding at the end the following:

“(G) imposes a vehicle length limitation of less than 80 feet on a stinger steered automobile transporter with a rear overhand of less than 6 feet;

“(H) has the effect of imposing an overall length limitation of less than 82 feet on a towaway trailer transporter combination;

“(I) imposes a limitation of less than 46 feet on the distance from the kingpin to the center of the rear axle on a trailer used exclusively or primarily for the transport of livestock; or

“(J) has the effect of prohibiting the use of a device designed by a bus manufacturer to affix to the rear of an intercity bus purchased after October 1, 2012, for use in carrying passenger baggage, if the device does not result in the bus exceeding 47 feet in total length.”.

(e) Access to Interstate system.—Section 31114(a)(2) of title 49, United States Code, is amended by inserting “a towaway trailer transporter combination as defined in section 31111(a),” before “or any”.

SEC. 1405. Study with respect to truck sizes and weights.

(a) Study.—

(1) IN GENERAL.—The Secretary shall conduct a study with respect to truck sizes and weights in accordance with this section.

(2) SCOPE.—In conducting the study, the Secretary shall examine, in accordance with paragraph (3), the effect on principal arterial routes and National Highway System intermodal connectors that allowing nationwide operation of each covered truck configuration would have.

(3) CONTENTS.—In conducting the study, the Secretary shall—

(A) evaluate the effect on safety that allowing each covered truck configuration to operate would have, with consideration given to—

(i) vehicle operating characteristics under various conditions likely to be experienced during commercial operation;

(ii) changes in vehicle miles traveled due to increased vehicle hauling capacity;

(iii) shifts in freight between transportation modes;

(iv) crash rates; and

(v) vehicle stability and control;

(B) estimate—

(i) the effect on pavement performance that allowing each covered truck configuration to operate would have;

(ii) the effect on bridge reliability and service life that allowing each covered truck configuration to operate would have; and

(iii) the ability of each covered truck configuration to comply with the Federal bridge formula (as specified in section 127(a)(2) of title 23, United States Code);

(C) estimate the full cost responsibility associated with allowing each covered truck configuration to operate, including all costs relating to pavement and bridges, and examine methods available for recovering such cost responsibility;

(D) examine the ability of a representative sample of regions to meet repair and reconstruction needs related to allowing each covered truck configuration to operate;

(E) estimate—

(i) the extent to which freight would be diverted from other surface transportation modes to principal arterial routes and National Highway System intermodal connectors if each covered truck configuration is allowed to operate and the effect that any such diversion would have on other modes of transportation;

(ii) the effect that any such diversion would have on public safety, infrastructure, cost responsibility, fuel efficiency, and the environment;

(iii) the effect on the transportation network of the United States that allowing each covered truck configuration to operate would have; and

(iv) whether allowing each covered truck configuration to operate would result in an increase or decrease in the total number of trucks operating on principal arterial routes and National Highway System intermodal connectors; and

(F) identify all Federal rules and regulations impacted by changes in truck size and weight limits.

(b) Report to Congress.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit to Congress a report on the results of the study conducted under subsection (a).

(c) Covered truck configuration defined.—In this section, the term “covered truck configuration” means each of the following:

(1) A combination truck tractor-semitrailer—

(A) with 5 axles; and

(B) a gross weight of 88,000 pounds.

(2) A combination truck tractor-semitrailer—

(A) with 6 axles; and

(B) a gross weight of 97,000 pounds.

(3) Longer combination vehicles (as such term is defined in section 127(d)(4) of title 23, United States Code).

(4) Any other truck configuration the Secretary determines appropriate.

SEC. 1406. Maximum weight increase for idle reduction technology on heavy duty vehicles.

Section 127(a)(12) 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. 1501. Federal lands and tribal transportation programs.

Chapter 2 is amended by striking sections 201 through 203 and inserting the following:

§ 201. General provisions

“(a) Purpose.—Recognizing the need for all Federal lands transportation facilities and tribal transportation facilities to be treated under uniform policies similar to the policies that apply to Federal-aid highways and other public road and transit facilities constructed with Federal assistance, the Secretary, in consultation with the Secretary of each Federal land management agency, shall establish and coordinate, in accordance with the requirements of this section, a uniform policy for all transportation facilities constructed under a covered program.

“(b) Covered program defined.—In this section, the term ‘covered program’ means—

“(1) the tribal transportation program established under section 202; and

“(2) the Federal lands transportation program established under section 203.

“(c) Availability of funds.—

“(1) AVAILABILITY.—Funds made available to carry out a covered program shall be available for contract—

“(A) upon apportionment; or

“(B) if no apportionment is required, on October 1 of the fiscal year for which authorized.

“(2) PERIOD OF AVAILABILITY.—Funds apportioned or allocated to carry out a covered program shall remain available for obligation for a period of 3 years after the last day of the fiscal year for which the funds are authorized. Any amounts so apportioned or allocated that remain unobligated at the end of that period shall lapse.

“(3) AUTHORITY OF DEPARTMENT SECRETARIES.—

“(A) AUTHORITY TO INCUR OBLIGATIONS, APPROVE PROJECTS, AND ENTER INTO CONTRACTS.—The Secretary of a Department charged with the administration of funds made available to carry out a covered program may incur obligations, approve projects, and enter into contracts with respect to such funds.

“(B) CONTRACTUAL OBLIGATIONS.—A Secretary’s action under subparagraph (A) shall be deemed to be a contractual obligation of the United States to pay the cost thereof, and the funds subject to the action shall be deemed to have been expended when so obligated.

“(4) EXPENDITURE.—Any funds made available to carry out a covered program for a fiscal year shall be deemed to have been expended if a sum equal to the total of the sums appropriated for the fiscal year and previous fiscal years have been obligated. Any of such funds released by payment of final voucher or modification of project authorizations shall be credited to the balance of unobligated appropriations and be immediately available for expenditure.

“(5) AUTHORITY OF SECRETARY.—

“(A) OBLIGATING FUNDS FOR COVERED PROGRAMS.—Notwithstanding any other provision of law, either of the following actions shall be deemed to constitute a contractual obligation of the United States to pay the total eligible cost of any construction project funded under a covered program:

“(i) The authorization by the Secretary, or the Secretary of a Department charged with the administration of funds made available to carry out a covered program, of engineering and related work for the development, design, and acquisition associated with the project, whether performed by contract or agreement authorized by law.

“(ii) The approval by the Secretary, or the Secretary of a Department charged with the administration of funds made available to carry out a covered program, of plans, specifications, and estimates for the project.

“(B) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this paragraph may be construed to affect the application of the Federal share associated with a project undertaken under a covered program or to modify the point of obligation associated with Federal salaries and expenses.

“(6) REDISTRIBUTION OF UNUSED OBLIGATION AUTHORITY.—To the extent that the Secretary is otherwise required to redistribute unused obligation authority appropriated for purposes other than section 202, a minimum of 10 percent of such unused obligation authority shall be allocated and distributed by the Secretary to entities eligible to receive funds under such section for purposes of funding competitively awarded high priority projects ensuring greater safe access to markets for American Indian and Alaska Native communities that are, relative to other American Indian and Alaska Native communities, more remotely located from product and essential service markets.

“(d) Federal share.—

“(1) IN GENERAL.—Except as provided by paragraph (2), the Federal share payable on account of a project carried out under a covered program shall be 100 percent of the total cost of the project.

“(2) OPERATING ASSISTANCE.—The Federal share payable, with amounts made available to carry out this chapter, on account of operating expenses for a project carried out under the Federal lands transportation program established under section 203 may not exceed 50 percent of the net operating costs, as determined by the Secretary.

“(e) Transportation planning.—

“(1) TRANSPORTATION PLANNING PROCEDURES.—In consultation with the Secretary of each Federal land management agency, the Secretary shall implement transportation planning procedures for tribal transportation facilities and Federal lands transportation facilities that are consistent with the planning processes required under sections 5203 and 5204 of title 49.

“(2) APPROVAL OF TRANSPORTATION IMPROVEMENT PROGRAM.—A transportation improvement program developed as a part of the transportation planning process under this subsection shall be subject to approval by the Secretary, acting in coordination with the Secretary of the appropriate Federal land management agency.

“(3) INCLUSION IN OTHER PLANS.—Any project under a covered program that is regionally significant shall—

“(A) be developed in cooperation with appropriate States and metropolitan planning organizations; and

“(B) be included in—

“(i) plans for the covered program;

“(ii) appropriate State and metropolitan long-range transportation plans; and

“(iii) appropriate State and metropolitan transportation improvement programs.

“(4) INCLUSION IN STATE PROGRAMS.—A transportation improvement program that is approved by the Secretary as a part of the transportation planning process under this subsection shall be included in appropriate plans and programs of States and metropolitan planning organizations without further action on the transportation improvement program.

“(5) ASSET MANAGEMENT.—The Secretary and the Secretary of each Federal land management agency, to the extent appropriate, shall have in effect safety, bridge, pavement, and congestion management systems in support of asset management for highways funded under a covered program.

“(6) DATA COLLECTION.—

“(A) IN GENERAL.—The Secretary of each Federal land management agency shall collect and report on the data that is necessary to implement a covered program, including at a minimum—

“(i) inventory and condition information on tribal roads and Federal lands highways; and

“(ii) bridge inspection and inventory information on any Federal bridge that is open to the public.

“(B) STANDARDS.—The Secretary, in coordination with the Secretary of each Federal land management agency, shall define collection and reporting data standards for purposes of subparagraph (A).

“(C) TRIBAL TRANSPORTATION PROGRAM.—Each Secretary collecting data under this paragraph relating to the tribal transportation program established under section 202 shall collect such data consistent with the requirements of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).

“(7) ADMINISTRATIVE EXPENSES.—The Secretary may use up to 5 percent of the funds made available to carry out section 203 for a fiscal year for purposes of implementing the activities described in this subsection, including direct support of transportation planning activities among Federal land management agencies.

“(f) References to secretaries of Federal land management agencies.—In this chapter, the term ‘Secretary’, when used in connection with a Federal land management agency, means the Secretary of the department that contains the agency.

§ 202. Tribal transportation program

“(a) In general.—The Secretary shall carry out a tribal transportation program in accordance with the requirements of this section.

“(b) Use of funds.—

“(1) IN GENERAL.—Funds made available to carry out the tribal transportation program shall be used by the Secretary and the Secretary of the Interior to pay for the following:

“(A) The covered costs of—

“(i) tribal roads;

“(ii) vehicular parking areas adjacent to tribal roads (which may include electric vehicle charging stations);

“(iii) pedestrian walkways and bicycle transportation facilities (as defined in section 217) on tribal lands; and

“(iv) roadside rest areas, including sanitary and water facilities, on tribal lands.

“(B) The costs of transportation projects eligible for assistance under this title that are within, or provide access to, tribal lands.

“(C) The costs of public transportation projects eligible for assistance under section 5311(b)(1) of title 49 that are within, or provide access to, tribal lands (without regard to whether the project is located in an urbanized area).

“(D) The costs of rehabilitation, restoration, and construction of interpretive signage at tribal roads.

“(E) The costs of acquisition of necessary scenic easements and scenic or historic sites associated with tribal roads.

“(2) COVERED COSTS DEFINED.—In paragraph (1), the term ‘covered costs’ means the costs of transportation planning, research, preventive maintenance, engineering, rehabilitation, restoration, construction, and reconstruction.

“(3) 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 such activity with—

“(A) a State (including a political subdivision of a State); or

“(B) an Indian tribe.

“(4) 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).

“(5) FEDERAL EMPLOYMENT.—No maximum limitation on Federal employment shall apply to construction or improvement of tribal transportation facilities.

“(6) ADMINISTRATIVE EXPENSES.—

“(A) IN GENERAL.—Of the funds made available to carry out the tribal transportation program for a fiscal year, up to 5 percent may be used by the Secretary or the Secretary of the Interior for program management and oversight and project-related administrative expenses.

“(B) RESERVATION OF FUNDS.—The Secretary of the Interior may reserve funds from administrative funds of the Bureau of Indian Affairs that are associated with the tribal transportation program to fund tribal technical assistance centers under section 504(b).

“(7) MAINTENANCE.—

“(A) USE OF FUNDS.—Notwithstanding any other provision of this title, of the funds allocated to an Indian tribe under the tribal transportation program for a fiscal year, the Indian tribe, or the Secretary with the consent of the affected Indian tribe, may use for the purpose of maintenance (excluding road sealing, which shall not be subject to any limitation) an amount that does not exceed the greater of—

“(i) 25 percent of the funds; or

“(ii) $500,000.

“(B) ROAD MAINTENANCE PROGRAMS ON INDIAN RESERVATIONS.—

“(i) BIA RESPONSIBILITY.—The Bureau of Indian Affairs shall continue to retain primary responsibility, including annual funding request responsibility, for road maintenance programs on Indian reservations.

“(ii) FUNDING.—The Secretary of the Interior shall ensure that funding made available under this paragraph for maintenance of tribal transportation facilities for a 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) AUTHORITY TO ENTER INTO AGREEMENTS.—An Indian tribe and a State may enter into a road maintenance agreement under which the Indian tribe assumes the responsibilities of the State for tribal transportation facilities.

“(ii) NEGOTIATIONS.—Agreements entered into under clause (i)—

“(I) shall be negotiated between the State and the Indian tribe; and

“(II) shall not require the approval of the Secretary.

“(8) COOPERATION OF STATES AND COUNTIES.—

“(A) IN GENERAL.—The cooperation of States, counties, and other political subdivisions of States may be accepted in construction and improvement of tribal transportation facilities.

“(B) CREDITING OF FUNDS.—Any funds received from a State, county, or other political subdivision of a State for construction or improvement of tribal transportation facilities shall be credited to appropriations available for the tribal transportation program.

“(C) STATE USE OF FEDERAL FUNDS FOR TRIBAL TRANSPORTATION FACILITIES.—

“(i) IN GENERAL.—A State may provide a portion of Federal funds apportioned to the State under chapter 1 to an Indian tribe for an eligible tribal transportation facility.

“(ii) PROCEDURE.—If a State elects to provide funds to an Indian tribe under clause (i), the State shall transfer the funds back to the Secretary and the Secretary shall transfer the funds to the Indian tribe constructing or maintaining the eligible tribal transportation facility under an agreement pursuant to this paragraph.

“(iii) CONSTRUCTION RESPONSIBILITY.—Notwithstanding any other provision of law, if a State provides funds referred to in clause (i) to an Indian tribe—

“(I) the State shall not be responsible for constructing or maintaining a project carried out using the funds or for administering or supervising the project or funds during the applicable statute of limitations period of such State with respect to actions related to the construction of the project; and

“(II) the Indian tribe receiving the funds shall be responsible for constructing and maintaining a project carried out using the funds and for administering and supervising the project and funds in accordance with this section during the period referred to in subclause (I).

“(9) COMPETITIVE BIDDING.—

“(A) IN GENERAL.—Construction of a project under the tribal transportation program shall be performed pursuant to a contract awarded by competitive bidding or other procurement process authorized under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) unless the Secretary or the Secretary of the Interior affirmatively finds that, under the circumstances relating to the project, some other method is in the public interest.

“(B) APPLICABILITY OF OTHER LAWS.—Notwithstanding subparagraph (A), section 23 of the Act of June 25, 1910 (36 Stat. 861; known as the Buy Indian Act) and section 7(b) of the Indian Self-Determination and Education Assistance Act (88 Stat. 2205) shall apply to all funds administered by the Secretary of the Interior that are appropriated for the construction and improvement of tribal roads.

“(c) Funds distribution.—

“(1) IN GENERAL.—All funds authorized to be appropriated for the tribal transportation program shall be allocated among Indian tribes in accordance with the formula maintained by the Secretary of the Interior under paragraph (4).

“(2) NATIONAL TRIBAL TRANSPORTATION FACILITY INVENTORY.—

“(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. The Secretary of the Interior, in cooperation with the Secretary, by September 30, 2012, and by September 30 of every second year thereafter, shall accept into the comprehensive national inventory those tribal transportation facilities proposed by Indian tribes under the regulations.

“(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 in the comprehensive national inventory, at a minimum, transportation facilities that are eligible for assistance under the tribal transportation program that a 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 community streets or bridges within the exterior boundary of Indian reservations, Alaska native villages, or other recognized Indian communities (including communities in former Indian reservations in Oklahoma) in which the majority of residents are American Indians or Alaska Natives; or

“(vi) 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 shall preclude the Secretary of the Interior from including additional transportation facilities that are eligible for funding under the tribal transportation program in the inventory 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 151.

“(3) REGULATIONS.—Notwithstanding sections 563(a) and 565(a) of title 5, the Secretary of the Interior shall maintain regulations governing the tribal transportation program and the funding formula under paragraph (4) in accordance with established policies and procedures.

“(4) BASIS FOR FUNDING FORMULA FACTORS.—

“(A) IN GENERAL.—The funding formula established under this paragraph shall be based on factors that reflect—

“(i) the relative needs among the Indian tribes, and reservation or tribal communities, for transportation assistance; and

“(ii) the relative administration capacities of, and challenges faced by, various Indian tribes, including the cost of road construction in each Bureau of Indian Affairs area, geographic isolation, and difficulty in maintaining all-weather access to employment, commerce, health, safety, and educational resources.

“(B) TRIBAL HIGH PRIORITY PROJECTS.—The tribal 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 American Energy and Infrastructure Jobs Act of 2012), shall continue in effect.

“(5) DISTRIBUTION OF FUNDS TO INDIAN TRIBES.—

“(A) IN GENERAL.—Not later than 30 days after the date on which funds are made available to the Secretary or the Secretary of the Interior for a fiscal year to carry out the tribal transportation program, the funds shall be distributed to, and available for immediate use by, eligible Indian tribes in accordance with the formula maintained by the Secretary of the Interior under paragraph (4).

“(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.

“(6) HEALTH AND SAFETY ASSURANCES.—Notwithstanding any other provision of law, an Indian tribal government may approve plans, specifications, and estimates for, and may commence, a project for construction of a tribal transportation facility with funds made available to carry out the tribal transportation program through a contract or agreement entered into under the 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 for the project from a State-licensed civil engineer that has certified that the plans and specifications meet or exceed the applicable health and safety standards;

“(C) provides a copy of the certification under subparagraph (A) to the Deputy Assistant Secretary for Tribal Government Affairs of the Department of Transportation or the Assistant Secretary of Indian Affairs of the Department of the Interior, as appropriate; and

“(D) except with respect to a transportation facility owned by the Bureau of Indian Affairs or an Indian tribe, obtains the advance written approval of the plans, specifications, and estimates from the facility owner or public authority having maintenance responsibility for the facility and provides a copy of the approval to the officials referred to in subparagraph (C).

“(7) CONTRACTS AND AGREEMENTS WITH INDIAN TRIBES FOR PROGRAM COSTS.—

“(A) IN GENERAL.—Notwithstanding any other provision of law or any interagency agreement, program guideline, manual, or policy directive, all funds made available under this chapter and section 125(e) for tribal transportation facilities to pay for the costs of programs, services, functions, and activities, or portions thereof, that are specifically or functionally related to the cost of any tribal transportation facility that provides access to or is located within the reservation or community of an Indian tribe 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 the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).

“(B) EXCLUSION OF AGENCY PARTICIPATION.—Funds for programs, functions, services, or activities, or portions thereof (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 Transportation or the Department of the Interior has previously carried out such programs, functions, services, or activities.

“(8) CONTRACTS AND AGREEMENTS WITH INDIAN TRIBES FOR TRIBAL TRANSPORTATION FACILITY PROGRAMS AND PROJECTS.—

“(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 title or chapter 53 of title 49 for a tribal transportation facility program or project that is located on an Indian reservation or provides access to the reservation or a community of an Indian tribe 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, agreements, and grants for the planning, research, design, engineering, construction, and maintenance relating to the program or project.

“(B) EXCLUSION OF AGENCY PARTICIPATION.—In accordance with subparagraph (A), all funds 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, 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 in accordance with and governed by the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) 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), 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 the 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 made.

“(ii) CRITERIA FOR DETERMINING FINANCIAL STABILITY AND FINANCIAL MANAGEMENT CAPABILITY.—If an Indian tribal government did not have an uncorrected significant and material audit exception in a required annual audit of the Indian tribal government’s self-determination contracts or self-governance funding agreements with a Federal agency during the 3-fiscal year period referred in clause (i), the Indian tribe shall be treated as having conclusive evidence of its financial stability and financial management capability 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 or 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 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 or 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 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 resolutions and appeal procedures authorized by such Act, including regulations issued to carry out such 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.

“(d) Planning by Indian tribal governments.—

“(1) IN GENERAL.—Of the funds made available for a fiscal year to carry out the tribal transportation program, the greater of 2 percent or $35,000 may be allocated to Indian tribal governments that have been authorized to conduct transportation planning pursuant to the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.).

“(2) COOPERATION.—An Indian tribal government described in paragraph (1), 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(e).

“(3) APPROVAL.—Projects selected by an Indian tribal government described in paragraph (1) from a transportation improvement program shall be subject to the approval of the Secretary of the Interior and the Secretary.

“(e) Federal-Aid eligible project.—Before approving as a project on a tribal transportation facility any project eligible funds apportioned under section 104 in a State, the Secretary shall determine that the obligation of funds for such project is supplementary to and not in lieu of the obligation, for projects on tribal transportation facilities, of a fair and equitable share of funds apportioned to such State under section 104.

“(f) Eligibility for discretionary and competitive grants.—Notwithstanding any other provision of law, an Indian tribe may directly apply for and receive any discretionary or competitive grant made available to a State or a political subdivision of a State under this title or chapter 53 of title 49 in the same manner and under the same circumstances as a State or a political subdivision of a State.

§ 203. Federal lands transportation program

“(a) In general.—The Secretary shall carry out a Federal lands transportation program in accordance with the requirements of this section.

“(b) Use of funds.—

“(1) IN GENERAL.—Funds made available to carry out the Federal lands transportation program shall be used by the Secretary and the Secretaries of Federal land management agencies to pay for the following:

“(A) The covered costs of—

“(i) Federal lands highways;

“(ii) vehicular parking areas adjacent to Federal lands highways (which may include electric vehicle charging stations);

“(iii) pedestrian walkways and bicycle transportation facilities (as defined in section 217) on Federal lands; and

“(iv) roadside rest areas, including sanitary and water facilities, on Federal lands.

“(B) The costs of transportation projects on public roads or trails eligible for assistance under this title that are within, or provide access to, Federal lands.

“(C) The costs of public transportation projects eligible for assistance under section 5311(b)(1) of title 49 that are within, or provide access to, Federal lands (without regard to whether the project is located in an urbanized area).

“(D) The costs of rehabilitation, restoration, and construction of interpretive signage at Federal lands highways.

“(E) The costs of acquisition of necessary scenic easements and scenic or historic sites associated with Federal lands highways.

“(2) COVERED COSTS DEFINED.—In paragraph (1), the term ‘covered costs’ means the costs of program administration, transportation planning, research, preventive maintenance, engineering, rehabilitation, restoration, construction, and reconstruction.

“(3) 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 such activity with—

“(A) a State (including a political subdivision of a State); or

“(B) an Indian tribe.

“(4) 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 management agency.

“(5) COOPERATION.—

“(A) IN GENERAL.—The cooperation of States and political subdivisions of States may be accepted in construction and improvement of Federal lands transportation facilities.

“(B) CREDITING OF FUNDS.—Any funds received from a State or a political subdivision of a State for such construction or improvement of Federal lands transportation facilities shall be credited to appropriations available for the class of Federal lands transportation facilities to which funds were contributed.

“(6) COMPETITIVE BIDDING.—Construction of a project under the Federal lands transportation program shall be performed pursuant to a contract awarded by competitive bidding unless the Secretary or the Secretary of the appropriate Federal land management agency affirmatively finds that, under the circumstances relating to the project, some other method is in the public interest.

“(c) Agency program distributions.—

“(1) IN GENERAL.—On October 1 of each fiscal year, the Secretary shall allocate the funds made available to carry out the Federal lands transportation program for the fiscal year on the basis of applications of need, as determined by the Secretary, and in coordination with the transportation plans required by section 201(e), of the respective transportation systems of the Federal land management agencies.

“(2) MINIMUM ALLOCATIONS.—When making an allocation of funds under paragraph (1) for a fiscal year, the Secretary shall ensure that, of the total amount of funds subject to the allocation—

“(A) the National Park Service receives, at a minimum, 38 percent;

“(B) the Forest Service receives, at a minimum, 32 percent; and

“(C) the United States Fish and Wildlife Service receives, at a minimum, 4.5 percent.

“(3) APPLICATIONS.—

“(A) IN GENERAL.—The Secretary of a Federal land management agency may submit to the Secretary an application for assistance under the Federal lands transportation program.

“(B) CONTENTS.—An application submitted by the Secretary of a Federal land management agency under subparagraph (A) shall contain such information as the Secretary may require, including a description of any proposed program for which the agency is seeking assistance and the potential funding levels for the program.

“(C) CONSIDERATIONS.—In reviewing a proposed program described in an application submitted by the Secretary of a Federal land management agency under subparagraph (A), the Secretary shall consider the extent to which the program supports—

“(i) a state of good repair of transportation facilities across the agency’s inventory;

“(ii) a reduction of deficient bridges across the agency’s inventory;

“(iii) improvement of safety across the agency’s inventory;

“(iv) high use Federal recreation sites or Federal economic generators; and

“(v) the resource management goals of the Secretary of the respective Federal land management agency.

“(d) National Federal lands highways inventory.—

“(1) IN GENERAL.—The Secretaries of the Federal land management agencies, in cooperation with the Secretary, shall maintain a comprehensive national inventory of Federal lands highways.

“(2) HIGHWAYS INCLUDED IN THE INVENTORY.—For purposes of identifying the Federal lands transportation system and determining the relative transportation needs among Federal land management agencies, the inventory shall include, at a minimum, highways that—

“(A) provide access to high use Federal recreation sites or Federal economic generators, as determined by the Secretary in coordination with the Secretaries of the Federal land management agencies; and

“(B) are administered by a Federal land management agency.

“(3) AVAILABILITY.—The Secretary of each Federal land management agency shall maintain an inventory of the Federal lands highways administered by the agency and make the inventory available to the Secretary.

“(4) UPDATES.—The Secretary of each Federal land management agency shall update its inventory referred to in paragraph (3) as determined by the Secretary.

“(5) REVIEW.—A decision to add or remove a highway from an inventory referred to in paragraph (1) or (4) 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.).”.

SEC. 1502. Definitions.

(a) Repeals.—Paragraphs (7), (9), (12), (19), (20), (24), (25), (26), and (28) of section 101(a) are repealed.

(b) Definitions relating to Federal lands and tribal transportation programs.—Section 101(a) is amended by adding at the end the following:

“(40) FEDERAL LAND MANAGEMENT AGENCY.—The term ‘Federal land management agency’ means each of the following:

“(A) The National Park Service.

“(B) The Forest Service.

“(C) The United States Fish and Wildlife Service.

“(D) The Corps of Engineers.

“(E) The Bureau of Land Management.

“(41) FEDERAL LANDS.—The term ‘Federal lands’ means lands administered by a Federal land management agency.

“(42) FEDERAL LANDS HIGHWAY.—The term ‘Federal lands highway’ means a public road, highway, bridge, or trail that is located on, is adjacent to, or provides access to Federal lands and appears on the national inventory of Federal lands highways maintained under section 203(d).

“(43) FEDERAL LANDS TRANSPORTATION FACILITY.—The term ‘Federal lands transportation facility’ means a transportation facility eligible for assistance under section 203(b).

“(44) TRIBAL ROAD.—The term ‘tribal road’ means a public road, highway, bridge, or trail that is located on or provides access to tribal lands and appears on the national inventory of tribal roads maintained under section 202(c).

“(45) TRIBAL TRANSPORTATION FACILITY.—The term ‘tribal transportation facility’ means a transportation facility eligible for assistance under section 202(b).”.

SEC. 1503. Conforming amendments.

(a) Federal share payable.—Section 120 is amended—

(1) in subsection (e) by striking “forest highways, forest development roads and trails, park roads and trails, parkways, public lands highways, public lands development roads and trails, and Indian reservation roads” and inserting “tribal roads and Federal lands highways”; and

(2) in subsection (l)—

(A) in the subsection heading by striking “Federal Lands Highways Program” and inserting “Tribal Transportation Program and Federal Lands Transportation Program”; and

(B) by striking “the Federal lands highways program under section 204” and inserting “the tribal transportation program under section 202 and the Federal lands transportation program under section 203”.

(b) Preservation of parklands.—Section 138(a) is amended by striking “park road or parkway under section 204 of this title” and inserting “Federal lands transportation facility under section 203”.

(c) Efficient environmental reviews for project decisionmaking.—Section 139(j)(3) is amended—

(1) in the paragraph heading by striking “Use of Federal lands highway funds” and inserting “Use of tribal transportation program and Federal Lands transportation program funds”; and

(2) by striking “section 204” and inserting “sections 202 and 203”.

(d) Bicycle transportation and pedestrian walkways.—Section 217(c) is amended—

(1) in the subsection heading by striking “Federal Lands Highways” and inserting “Tribal Transportation Program and Federal Lands Transportation Program Funds”; and

(2) by striking “Funds authorized for” and all that follows through “public lands highways” and inserting “Funds authorized for tribal transportation facilities and Federal lands transportation facilities”.

(e) Rules, regulations, and recommendations.—Section 315 is amended by striking “sections 204(f) and 205(a) of this title” and inserting “sections 203(b)(4) and 205(a)”.

SEC. 1504. Repeals; effective date.

(a) In general.—Sections 204 and 214, and the items relating to such sections in the analysis for chapter 2, are repealed.

(b) Existing funds.—A repeal or amendment made by this subtitle shall not affect funds apportioned or allocated (or funds awarded but not yet allocated) before the effective date of the repeal or amendment.

SEC. 1505. Clerical amendment.

The analysis for chapter 2 is amended by striking the items relating to sections 201 through 203 and inserting the following:


“201. General provisions.

“202. Tribal transportation program.

“203. Federal lands transportation program.”.

SEC. 1506. Tribal transportation self-governance program.

(a) In general.—Chapter 2 is amended by inserting after section 206 the following:

§ 207. Tribal transportation self-governance program

“(a) Establishment.—Subject to the requirements of this section, the Secretary shall establish and carry out a program to be known as the tribal transportation self-governance program. The Secretary may delegate responsibilities for administration of the program as the Secretary determines appropriate.

“(b) Eligibility.—

“(1) IN GENERAL.—An Indian tribe shall be eligible to participate in the program if the Indian tribe—

“(A) requests participation in the program by resolution or other official action by the governing body of the Indian tribe; and

“(B) demonstrates, for the preceding 3 fiscal years, financial stability and financial management capability.

“(2) CRITERIA FOR DETERMINING FINANCIAL STABILITY AND FINANCIAL MANAGEMENT CAPACITY.—For the purposes of paragraph (1)(B), evidence that, during the preceding 3 fiscal years, an Indian tribe had no uncorrected significant and material audit exceptions in the required annual audit of the Indian tribe’s self-determination contracts or self-governance funding agreements with any Federal agency shall be conclusive evidence of the required stability and capability.

“(c) Compacts.—

“(1) COMPACT REQUIRED.—Upon the request of an eligible Indian tribe, and subject to the requirements of this section, the Secretary shall negotiate and enter into a written compact with the Indian tribe for the purpose of providing for the participation of the Indian tribe in the program.

“(2) CONTENTS.—A compact entered into under paragraph (1) shall set forth the general terms of the government-to-government relationship between the Indian tribe and the United States under the program and other terms that will continue to apply in future fiscal years.

“(3) AMENDMENTS.—A compact entered into with an Indian tribe under paragraph (1) may be amended only by mutual agreement of the Indian tribe and the Secretary.

“(d) Annual funding agreements.—

“(1) FUNDING AGREEMENT REQUIRED.—After entering into a compact with an Indian tribe under subsection (c), the Secretary shall negotiate and enter into a written annual funding agreement with the Indian tribe.

“(2) CONTENTS.—

“(A) IN GENERAL.—

“(i) DISCRETIONARY AND COMPETITIVE GRANTS.—A funding agreement entered into with an Indian tribe shall authorize the Indian tribe, as determined by the Indian tribe, to plan, conduct, consolidate, administer, and receive full tribal share funding and funding to tribes from discretionary and competitive grants administered by the Department for all programs, services, functions, and activities (or portions thereof) that are made available to Indian tribes to carry out tribal transportation programs and programs, services, functions, and activities (or portions thereof) administered by the Secretary that are otherwise available to Indian tribes.

“(ii) TRANSFERS OF STATE FUNDS.—

“(I) INCLUSION OF TRANSFERRED FUNDS IN FUNDING AGREEMENT.—A funding agreement entered into with an Indian tribe shall include Federal-aid funds apportioned to a State under chapter 1 if the State elects to provide a portion of such funds to the Indian tribe for a project eligible under section 202(b).

“(II) METHOD FOR TRANSFERS.—If a State elects to provide funds described in subclause (I) to an Indian tribe, the State shall transfer the funds back to the Secretary and the Secretary shall transfer the funds to the Indian tribe in accordance with this section.

“(III) RESPONSIBILITY FOR TRANSFERRED FUNDS.—Notwithstanding any other provision of law, if a State provides funds described in subclause (I) to an Indian tribe—

“(aa) the State shall not be responsible for constructing or maintaining a project carried out using the funds or for administering or supervising the project or funds during the applicable statute of limitations period related to the construction of the project; and

“(bb) the Indian tribe shall be responsible for constructing and maintaining a project carried out using the funds and for administering and supervising the project and funds in accordance with this section during the applicable statute of limitations period related to the construction of the project.

“(B) ADMINISTRATION OF TRIBAL SHARES.—The tribal shares referred to in subparagraph (A) shall be provided without regard to the agency or office of the Department within which the program, service, function, or activity (or portion thereof) is performed.

“(C) FLEXIBLE AND INNOVATIVE FINANCING.—

“(i) IN GENERAL.—A funding agreement entered into with an Indian tribe under paragraph (1) shall include provisions pertaining to flexible and innovative financing if agreed upon by the parties.

“(ii) TERMS AND CONDITIONS.—

“(I) AUTHORITY TO ISSUE REGULATIONS.—The Secretary may issue regulations to establish the terms and conditions relating to the flexible and innovative financing provisions referred to in clause (i).

“(II) TERMS AND CONDITIONS IN ABSENCE OF REGULATIONS.—If the Secretary does not issue regulations under subclause (I), the terms and conditions relating to the flexible and innovative financing provisions referred to in clause (i) shall be consistent with—

“(aa) agreements entered into by the Department under section 202(c)(8) before the date of enactment of the American Energy and Infrastructure Jobs Act of 2012; or

“(bb) regulations of the Department of the Interior relating to flexible financing contained in part 170 of title 25, Code of Federal Regulations, as in effect on the date of enactment of such Act.

“(3) DISCRETIONARY AND COMPETITIVE GRANTS.—Notwithstanding any other provision of law, an Indian tribe shall be eligible to directly apply for and receive the discretionary and competitive grants made available under transportation programs that States or political subdivisions of States are eligible to apply for and receive.

“(4) TERMS.—A funding agreement shall set forth—

“(A) terms that generally identify the programs, services, functions, and activities (or portions thereof) to be performed or administered by the Indian tribe; and

“(B) for items identified in subparagraph (A)—

“(i) the general budget category assigned;

“(ii) the funds to be provided, including those funds to be provided on a recurring basis;

“(iii) the time and method of transfer of the funds;

“(iv) the responsibilities of the Secretary and the Indian tribe; and

“(v) any other provision agreed to by the Indian tribe and the Secretary.

“(5) SUBSEQUENT FUNDING AGREEMENTS.—

“(A) APPLICABILITY OF EXISTING AGREEMENT.—Absent notification from an Indian tribe that the Indian tribe is withdrawing from or retroceding the operation of one or more programs, services, functions, or activities (or portions thereof) identified in a funding agreement, or unless otherwise agreed to by the parties, each funding agreement shall remain in full force and effect until a subsequent funding agreement is executed.

“(B) EFFECTIVE DATE OF SUBSEQUENT AGREEMENT.—The terms of the subsequent funding agreement shall be retroactive to the end of the term of the preceding funding agreement.

“(6) CONSENT OF INDIAN TRIBE REQUIRED.—The Secretary shall not revise, amend, or require additional terms in a new or subsequent funding agreement without the consent of the Indian tribe that is subject to the agreement unless such terms are required by Federal law.

“(e) General provisions.—

“(1) REDESIGN AND CONSOLIDATION.—

“(A) IN GENERAL.—An Indian tribe, in any manner that the Indian tribe considers to be in the best interest of the Indian community being served, may—

“(i) redesign or consolidate programs, services, functions, and activities (or portions thereof) included in a funding agreement; and

“(ii) reallocate or redirect funds for such programs, services, functions, and activities (or portions thereof), if the funds are—

“(I) expended on projects identified in a transportation improvement program approved by the Secretary; and

“(II) used in accordance with appropriations Acts and other applicable statutory limitations.

“(B) EXCEPTION.—Notwithstanding subparagraph (A), if, pursuant to subsection (d), an Indian tribe receives a discretionary or competitive grant from the Secretary or receives State apportioned funds, the Indian tribe shall use the funds for the purpose for which the funds were originally authorized.

“(2) RETROCESSION.—

“(A) IN GENERAL.—

“(i) AUTHORITY OF INDIAN TRIBES.—An Indian tribe may retrocede (fully or partially) to the Secretary programs, services, functions, or activities (or portions thereof) included in a compact or funding agreement.

“(ii) REASSUMPTION OF REMAINING FUNDS.—Following a retrocession described in clause (i), the Secretary may—

“(I) reassume the remaining funding associated with the retroceded programs, functions, services, and activities (or portions thereof) included in the applicable compact or funding agreement;

“(II) out of such remaining funds, transfer funds associated with Department of Interior programs, services, functions, or activities (or portions thereof) to the Secretary of the Interior to carry out transportation services provided by the Secretary of the Interior; and

“(III) distribute funds not transferred under subclause (II) in accordance with applicable law.

“(iii) CORRECTION OF PROGRAMS.—If the Secretary makes a finding under subsection (f)(2)(B) and no funds are available under subsection (f)(2)(A)(ii), the Secretary shall not be required to provide additional funds to complete or correct any programs, functions, or activities (or portions thereof).

“(B) EFFECTIVE DATE.—Unless the Indian tribe rescinds a request for retrocession, the retrocession shall become effective within the timeframe specified by the parties in the compact or funding agreement. In the absence of such a specification, the retrocession shall become effective on—

“(i) the earlier of—

“(I) 1 year after the date of submission of the request; or

“(II) the date on which the funding agreement expires; or

“(ii) such date as may be mutually agreed upon by the parties and, with respect to Department of the Interior programs, functions, services, and activities (or portions thereof), the Secretary of the Interior.

“(f) Provisions relating to the Secretary.—

“(1) DECISIONMAKER.—A decision that constitutes a final agency action and relates to an appeal of the rejection of a final offer by the Department shall be made either—

“(A) by an official of the Department who holds a position at a higher organizational level within the Department than the level of the departmental agency in which the decision that is the subject of the appeal was made; or

“(B) by an administrative judge.

“(2) TERMINATION OF COMPACT OR FUNDING AGREEMENT.—

“(A) AUTHORITY TO TERMINATE.—

“(i) PROVISION TO BE INCLUDED IN COMPACT OR FUNDING AGREEMENT.—A compact or funding agreement shall include a provision authorizing the Secretary, if the Secretary makes a finding described in subparagraph (B), to—

“(I) terminate the compact or funding agreement (or a portion thereof); and

“(II) reassume the remaining funding associated with the reassumed programs, functions, services, and activities included in the compact or funding agreement.

“(ii) TRANSFERS OF FUNDS.—Out of any funds reassumed under clause (i)(II), the Secretary may transfer the funds associated with Department of the Interior programs, functions, services, and activities (or portions thereof) to the Secretary of the Interior to provide continued transportation services in accordance with applicable law.

“(B) FINDINGS RESULTING IN TERMINATION.—The finding referred to in subparagraph (A) is a specific finding of—

“(i) imminent jeopardy to a trust asset, natural resources, or public health and safety that is caused by an act or omission of the Indian tribe and that arises out of a failure to carry out the compact or funding agreement, as determined by the Secretary; or

“(ii) gross mismanagement with respect to funds or programs transferred to the Indian tribe under the compact or funding agreement, as determined by the Secretary in consultation with the Inspector General of the Department, as appropriate.

“(C) PROHIBITION.—The Secretary shall not terminate a compact or funding agreement (or portion thereof) unless—

“(i) the Secretary has first provided written notice and a hearing on the record to the Indian tribe that is subject to the compact or funding agreement; and

“(ii) the Indian tribe has not taken corrective action to remedy the mismanagement of funds or programs or the imminent jeopardy to a trust asset, natural resource, or public health and safety.

“(D) EXCEPTION.—

“(i) IN GENERAL.—Notwithstanding subparagraph (C), the Secretary, upon written notification to an Indian tribe that is subject to a compact or funding agreement, may immediately terminate the compact or funding agreement (or portion thereof) if—

“(I) the Secretary makes a finding of imminent substantial and irreparable jeopardy to a trust asset, natural resource, or public health and safety; and

“(II) the jeopardy arises out of a failure to carry out the compact or funding agreement.

“(ii) HEARINGS.—If the Secretary terminates a compact or funding agreement (or portion thereof) under clause (i), the Secretary shall provide the Indian tribe subject to the compact or agreement with a hearing on the record not later than 10 days after the date of such termination.

“(E) BURDEN OF PROOF.—In any hearing or appeal involving a decision to terminate a compact or funding agreement (or portion thereof) under this paragraph, the Secretary shall have the burden of proof in demonstrating by clear and convincing evidence the validity of the grounds for the termination.

“(g) Cost principles.—In administering funds received under this section, an Indian tribe shall apply cost principles under the applicable Office of Management and Budget circular, except as modified by section 106 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450j–1), other provisions of law, or by any exemptions to applicable Office of Management and Budget circulars subsequently granted by the Office of Management and Budget. No other audit or accounting standards shall be required by the Secretary. Any claim by the Federal Government against the Indian tribe relating to funds received under a funding agreement based on any audit conducted pursuant to this subsection shall be subject to the provisions of section 106(f) of such Act (25 U.S.C. 450j–1(f)).

“(h) Transfer of funds.—The Secretary shall provide funds to an Indian tribe under a funding agreement in an amount equal to—

“(1) the sum of the funding that the Indian tribe would otherwise receive for the program, function, service, or activity in accordance with a funding formula or other allocation method established under this title or chapter 53 of title 49; and

“(2) 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.

“(i) Construction programs.—

“(1) STANDARDS.—Construction projects carried out under programs administered by an Indian tribe with funds transferred to the Indian tribe pursuant to a funding agreement entered into under this section shall be constructed pursuant to the construction program standards set forth in applicable regulations or as specifically approved by the Secretary (or the Secretary’s designee).

“(2) MONITORING.—Construction programs shall be monitored by the Secretary in accordance with applicable regulations.

“(j) Facilitation.—

“(1) SECRETARIAL INTERPRETATION.—Except as otherwise provided by law, the Secretary shall interpret all Federal laws, Executive orders, and regulations in a manner that will facilitate—

“(A) the inclusion of programs, services, functions, and activities (or portions thereof) and funds associated therewith, in compacts and funding agreements; and

“(B) the implementation of the compacts and funding agreements.

“(2) REGULATION WAIVER.—

“(A) IN GENERAL.—An Indian tribe may submit to the Secretary a written request to waive application of a regulation promulgated under this section with respect to a compact or funding agreement. The request shall identify the regulation sought to be waived and the basis for the request.

“(B) APPROVALS AND DENIALS.—

“(i) IN GENERAL.—Not later than 90 days after the date of receipt of a written request under subparagraph (A), the Secretary shall approve or deny the request in writing.

“(ii) DENIALS.—The Secretary may deny a request under clause (i) only if the Secretary finds that the identified language in the regulation may not be waived because the waiver is prohibited by Federal law.

“(iii) DEEMED APPROVAL.—If the Secretary does not approve or deny a request submitted under subparagraph (A) on or before the last day of the 90-day period referred to in clause (i), the request shall be deemed approved.

“(iv) FINALITY OF DECISIONS.—A decision by the Secretary under this subparagraph shall be final for the Department.

“(k) Disclaimers.—

“(1) EXISTING AUTHORITY.—Notwithstanding any other provision of law, upon the election of an Indian tribe, the Secretary shall—

“(A) maintain current Federal Highway Administration Indian reservation roads program and funding agreements; or

“(B) enter into new agreements under the authority of section 202(c)(8).

“(2) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this section may be construed to impair or diminish the authority of the Secretary under section 202(c)(8).

“(l) Applicability of Indian Self-Determination and Education Assistance Act.—Except to the extent in conflict with this section (as determined by the Secretary), the following provisions of the Indian Self-Determination and Education Assistance Act shall apply to compact and funding agreements (except that references to the Secretary of the Interior in such provisions shall treated as a references to the Secretary of Transportation):

“(1) Subsections (a), (b), (d), (g), and (h) of section 506 of such Act (25 U.S.C. 458aaa–5), relating to general provisions.

“(2) Subsections (b) through (e) and (g) of section 507 of such Act (25 U.S.C.458aaa–6), relating to provisions relating to the Secretary of Health and Human Services.

“(3) Subsections (a), (b), (d), (e), (g), (h), (i), and (k) of section 508 of such Act (25 U.S.C. 458aaa–7), relating to transfer of funds.

“(4) Section 510 of such Act (25 U.S.C. 458aaa–9), relating to Federal procurement laws and regulations.

“(5) Section 511 of such Act (25 U.S.C. 458aaa–10), relating to civil actions.

“(6) Subsections (a)(1), (a)(2), and (c) through (f) of section 512 of such Act (25 U.S.C. 458aaa–11), relating to facilitation, except that subsection (c)(1) of that section shall be applied by substituting ‘transportation facilities and other facilities’ for ‘school buildings, hospitals, and other facilities’.

“(7) Subsections (a) and (b) of section 515 of such Act (25 U.S.C. 458aaa–14), relating to disclaimers.

“(8) Subsections (a) and (b) of section 516 of such Act (25 U.S.C. 458aaa–15), relating to application of title I provisions.

“(9) Section 518 of such Act (25 U.S.C. 458aaa–17), relating to appeals.

“(m) Definitions.—

“(1) IN GENERAL.—In this section, the following definitions apply (except as otherwise expressly provided):

“(A) COMPACT.—The term ‘compact’ means a compact between the Secretary and an Indian tribe entered into under subsection (c).

“(B) DEPARTMENT.—The term ‘Department’ means the Department of Transportation.

“(C) ELIGIBLE INDIAN TRIBE.—The term ‘eligible Indian tribe’ means an Indian tribe that is eligible to participate in the program, as determined under subsection (b).

“(D) FUNDING AGREEMENT.—The term ‘funding agreement’ means a funding agreement between the Secretary and an Indian tribe entered into under subsection (d).

“(E) INDIAN TRIBE.—The term ‘Indian tribe’ means any Indian or Alaska Native tribe, band, nation, pueblo, village, or community that the Secretary of the Interior acknowledges to exist as an Indian tribe under the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a). In any case in which an Indian tribe has authorized another Indian tribe, an inter-tribal consortium, or a tribal organization to plan for or carry out programs, services, functions, or activities (or portions thereof) on its behalf under this part, the authorized Indian tribe, inter-tribal consortium, or tribal organization shall have the rights and responsibilities of the authorizing Indian tribe (except as otherwise provided in the authorizing resolution or in this title). In such event, the term ‘Indian tribe’ as used in this part shall include such other authorized Indian tribe, inter-tribal consortium, or tribal organization.

“(F) PROGRAM.—The term ‘program’ means the tribal transportation self-governance program established under this section.

“(G) SECRETARY.—The term ‘Secretary’ means the Secretary of Transportation.

“(H) TRANSPORTATION PROGRAMS.—The term ‘transportation programs’ means all programs administered or financed by the Department under this title and chapter 53 of title 49.

“(2) APPLICABILITY OF OTHER DEFINITIONS.—In this section, the definitions set forth in sections 4 and 505 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b; 458aaa) apply, except as otherwise expressly provided in this section.

“(n) Regulations.—

“(1) IN GENERAL.—

“(A) PROMULGATION.—Not later than 90 days after the date of enactment of the American Energy and Infrastructure Jobs Act of 2012, the Secretary shall initiate procedures under subchapter III of chapter 5 of title 5 to negotiate and promulgate such regulations as are necessary to carry out this section.

“(B) PUBLICATION OF PROPOSED REGULATIONS.—Proposed regulations to implement this section shall be published in the Federal Register by the Secretary not later than 21 months after such date of enactment.

“(C) EXPIRATION OF AUTHORITY.—The authority to promulgate regulations under this paragraph shall expire 30 months after such date of enactment.

“(D) EXTENSION OF DEADLINES.—A deadline set forth in subparagraph (B) or (C) may be extended up to 180 days if the negotiated rulemaking committee referred to in paragraph (2) concludes that the committee cannot meet the deadline and the Secretary so notifies the appropriate committees of Congress.

“(2) COMMITTEE.—

“(A) IN GENERAL.—A negotiated rulemaking committee established pursuant to section 565 of title 5 to carry out this subsection shall have as its members only Federal and tribal government representatives, a majority of whom shall be nominated by and be representatives of Indian tribes with funding agreements under this title.

“(B) REQUIREMENTS.—The committee shall confer with, and accommodate participation by, representatives of Indian tribes, inter-tribal consortia, tribal organizations, and individual tribal members.

“(C) ADAPTATION OF PROCEDURES.—The Secretary shall adapt the negotiated rulemaking procedures to the unique context of self-governance and the government-to-government relationship between the United States and Indian tribes.

“(3) EFFECT.—The lack of promulgated regulations shall not limit the effect of this section.

“(4) EFFECT OF CIRCULARS, POLICIES, MANUALS, GUIDANCE, AND RULES.—Unless expressly agreed to by the participating Indian tribe in the compact or funding agreement, the participating Indian tribe shall not be subject to any agency circular, policy, manual, guidance, or rule adopted by the Department of Transportation, except regulations promulgated under this section.”.

(b) Clerical amendment.—The analysis for such chapter is amended by inserting after the item relating to section 206 the following:


“207. Tribal transportation self-governance program.”.

SEC. 1601. Program elimination and consolidation.

(a) General provisions.—

(1) EXISTING FUNDS.—A repeal or amendment made by this section shall not affect funds apportioned or allocated before the effective date of the repeal.

(2) AMENDATORY PROVISIONS.—A repeal made by this section of a provision that contains an amendment to or repeal of another law shall not be construed to affect that law. The amendment to or repeal of that law shall remain in effect as if this section had not been enacted.

(b) Revenue aligned budget authority.—Section 110, and the item relating to that section in the analysis for chapter 1, are repealed.

(c) High priority projects program.—Section 117, and the item relating to that section in the analysis for chapter 1, are repealed.

(d) Set asides for Interstate discretionary projects.—Section 118(c) is repealed.

(e) Control of junkyards.—Section 136, and the item relating to that section in the analysis for chapter 1, are repealed.

(f) Highway bridge program.—Section 144, and the item relating to that section in the analysis for chapter 1, are repealed.

(g) Hazard elimination program.—Section 152, and the item relating to that section in the analysis for chapter 1, are repealed.

(h) Safety incentive grants for the use of seat belts.—Section 157, and the item relating to that section in the analysis for chapter 1, are repealed.

(i) Access highways to public recreation areas on certain lakes.—Section 155, and the item relating to that section in the analysis for chapter 1, are repealed.

(j) Reimbursement for segments of the Interstate System constructed without Federal assistance.—Section 160, and the item relating to that section in the analysis for chapter 1, are repealed.

(k) National scenic byways program.—Section 162, and the item relating to that section in the analysis for chapter 1, are repealed.

(l) Inter-American Highway.—Section 212, and the item relating to that section in the analysis for chapter 2, are repealed.

(m) Darien Gap Highway.—Section 216, and the item relating to that section in the analysis for chapter 2, are repealed.

(n) State coordinators.—Section 217 (as amended by this Act) is further amended—

(1) by striking subsection (d); and

(2) by redesignating subsections (e) through (j) as subsections (d) through (i), respectively.

(o) Alaska Highway.—Section 218 is amended—

(1) in subsection (a)—

(A) by striking the first 2 sentences;

(B) in the third sentence—

(i) by striking “, in addition to such funds,”; and

(ii) by striking “such highway or”; and

(C) by striking “No expenditures” and all that follows through the period at the end;

(2) by striking subsection (b); and

(3) by redesignating subsection (c) as subsection (b).

(p) Management systems.—Section 303, and the item relating to that section in the analysis for chapter 3, are repealed.

(q) Cooperation with other American Republics.—Section 309, and the item relating to that section in the analysis for chapter 3, are repealed.

(r) Landscaping and scenic enhancement.—Section 319 is amended—

(1) by striking “(a) Landscape and Roadside Development.—”; and

(2) by striking subsection (b).

(s) Magnetic levitation transportation technology deployment program.—Section 322, and the item relating to that section in the analysis for chapter 3, are repealed.

(t) Transportation, community, and system preservation program.—Section 1117 of SAFETEA–LU (119 Stat. 1177), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(u) Projects of national and regional significance.—Section 1301 of SAFETEA–LU (119 Stat. 1198), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(v) National corridor infrastructure improvement program.—Section 1302 of SAFETEA–LU (119 Stat. 1204), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(w) Truck parking facilities.—Section 1305 of SAFETEA–LU (119 Stat. 1214), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(x) Freight intermodal distribution pilot grant program.—Section 1306 of SAFETEA–LU (119 Stat. 1215), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(y) Deployment of magnetic levitation transportation projects.—Section 1307 of SAFETEA–LU (119 Stat. 1217), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(z) Delta region transportation development program.—Section 1308 of SAFETEA–LU (119 Stat. 1218), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(aa) Safe routes to school program.—Section 1404 of SAFETEA–LU (119 Stat. 1228), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(bb) National Work Zone Safety Information Clearinghouse.—Section 1410 of SAFETEA–LU (119 Stat. 1233), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(cc) Roadway safety.—Section 1411(b) of SAFETEA–LU (119 Stat. 1234) is repealed.

(dd) Highways for LIFE pilot program.—Section 1502 of SAFETEA–LU (119 Stat. 1236), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(ee) Express lanes demonstration program.—Section 1604(b) of SAFETEA–LU (119 Stat. 1250) is repealed.

(ff) Interstate System construction toll pilot program.—Section 1604(c) of SAFETEA–LU (119 Stat. 1253) is repealed.

(gg) America’s Byways Resource Center.—Section 1803 of SAFETEA–LU (119 Stat. 1458), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(hh) National historic covered bridge preservation.—Section 1804 of SAFETEA–LU (119 Stat. 1458), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(ii) Nonmotorized transportation pilot program.—Section 1807 of SAFETEA–LU (119 Stat. 1460), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(jj) Grant program to prohibit racial profiling.—Section 1906 of SAFETEA–LU (119 Stat. 1468), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(kk) Pavement marking systems demonstration projects.—Section 1907 of SAFETEA–LU (119 Stat. 1469), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(ll) Limitation on project approval.—Section 1958 of SAFETEA–LU (119 Stat. 1515), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

SEC. 1701. Transportation enhancement activity defined.

Section 101(a)(35) is amended—

(1) by striking subparagraphs (C), (F), (G), (H), and (L); and

(2) by redesignating subparagraphs (D), (E), (I), (J), and (K) as subparagraphs (C), (D), (E), (F), and (G), respectively.

SEC. 1702. Pavement markings.

Section 109 is amended by adding at the end the following:

“(r) Pavement markings.—The Secretary may not approve any pavement markings project that includes the use of glass beads containing more than 200 parts per million of arsenic or lead.”.

SEC. 1703. Rest areas.

(a) Agreements relating to use of and access to rights-of-Way—Interstate System.—Section 111 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) ELIGIBLE ACTIVITIES.—The Secretary shall permit a rest area under paragraph (1) to include commercial activities that provide goods, services, and information serving the traveling public and the commercial motor carrier industry. Such commercial activities shall be 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) State promotional or tourism items;

“(C) tourism-related merchandise and products, including electronics and clothing;

“(D) historical or tourism-related entertainment items, including event or attraction tickets;

“(E) travel-related information, including maps, travel booklets, and hotel coupon booklets;

“(F) automatic teller machines; and

“(G) lottery machines.

“(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) is amended by adding at the end the following: “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. 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.”.

SEC. 1704. Justification reports for access points on the Interstate System.

Section 111 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 such report.”.

SEC. 1705. Patented or proprietary items.

Section 112 is amended by adding at the end the following:

“(h) Use of patented or proprietary items.—The Secretary shall approve the use, by a State, of Federal funds made available to carry out this chapter to pay for patented or proprietary items if the State transportation department certifies, based on the documented analysis and professional judgment of qualified State transportation officials, that—

“(1) no equally suitable alternative item exists;

“(2) any specified patented or proprietary item will be clearly identified as a patented or proprietary item in bid documents; and

“(3) any specified patented or proprietary item will be available in sufficient quantity to complete any project identified in bid documents.”.

SEC. 1706. Preventive maintenance.

Section 116 is amended by adding at the end the following:

“(e) 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.”.

SEC. 1707. Mapping.

(a) In general.—Section 306 is amended—

(1) in subsection (a) by striking “may” and inserting “shall”;

(2) in subsection (b) by striking “State and” and inserting “State government and”; and

(3) by adding at the end the following:

“(c) 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) 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. 1708. Funding flexibility for transportation emergencies.

(a) In general.—Chapter 3 is amended by adding at the end the following:

§ 330. Funding flexibility for transportation emergencies

“(a) In general.—Notwithstanding any other provision of law, the chief executive of a State, after declaring an emergency with respect to a transportation facility under subsection (b), may use any covered funds of the State to repair or replace the transportation facility.

“(b) Declaration of emergency.—To declare an emergency with respect to a transportation facility for purposes of subsection (a), the chief executive of a State shall provide to the Secretary written notice of the declaration, which shall specify—

“(1) the emergency;

“(2) the affected transportation facility; and

“(3) the repair or replacement activities to be carried out.

“(c) Definitions.—In this section, the following definitions apply:

“(1) COVERED FUNDS.—The term ‘covered funds’ means any amounts apportioned to a State under this title, including any such amounts required to be set aside for a purpose other than the repair or replacement of a transportation facility under this section.

“(2) EMERGENCY.—The term ‘emergency’ means any unexpected event or condition that—

“(A) may cause, or has caused, the catastrophic failure of a transportation facility; and

“(B) is determined to be an emergency by the chief executive of a State.

“(3) TRANSPORTATION FACILITY.—The term ‘transportation facility’ means any component of the National Highway System.

“(d) Limitation on statutory construction.—Nothing in this section may be construed to allow a State to change the division of surface transportation program funding under section 133(d)(3).”.

(b) Clerical amendment.—The analysis for such chapter is amended by adding at the end the following:


“330. Funding flexibility for transportation emergencies.”.

SEC. 1709. Budget justification.

(a) In general.—Subchapter I of chapter 3 of title 49, United States Code, is amended by adding at the end the following:

§ 310. Budget justification

“The Secretary of Transportation and the head of each modal administration of the Department of Transportation shall 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 budget justification concurrently with the President’s annual budget submission to Congress.”.

(b) Clerical amendment.—The analysis for chapter 3 is amended by inserting after the item relating to section 309 the following:


“310. Budget justification.”.

SEC. 1710. Extension of over-the-road bus and 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) is amended—

(1) in the heading of paragraph (1) by striking “Temporary exemption” and inserting “Exemption”;

(2) in paragraph (1)—

(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 such term is defined in section 571.3 of title 49, Code of Federal Regulations).”; 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. 1711. Repeal of requirement for Interstate System designation.

Section 1105(e)(5)(A) of the Intermodal Surface Transportation Efficiency Act of 1991 is amended by striking “that the segment” and all that follows through the period at the end 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.”.

SEC. 1712. Retroreflectivity.

Not later than 1 year after the date of enactment of this Act, the Secretary shall amend the Manual on Uniform Traffic Control Devices to remove compliance dates with respect to retroreflectivity standards for regulatory, warning, and other post-mounted guide signs and for street name and other overhead guide signs.

SEC. 1713. 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. 1714. Evacuation routes.

Each State shall give adequate consideration to the needs of evacuation routes when allocating funds apportioned to the State under title 23, Unites States Code, for the construction of Federal-aid highways.

SEC. 1715. Truck parking.

(a) Truck parking survey.—

(1) REQUIREMENT.—Not later than 18 months after the date of enactment of this Act, the Secretary, in consultation with appropriate State motor carrier safety personnel, shall conduct a survey of each State—

(A) to develop a system of metrics to measure the adequacy of commercial motor vehicle parking facilities in the State;

(B) to assess the volume of commercial motor vehicle traffic in the State; and

(C) to evaluate the capability of the State to provide adequate parking and rest facilities for commercial motor vehicles engaged in interstate transportation.

(2) PUBLICATION OF RESULTS.—The Secretary shall make available to the public on the Internet Web site of the Department the results of surveys conducted under paragraph (1).

(3) PERIODIC UPDATES.—The Secretary shall periodically update surveys conducted under paragraph (1).

(b) Truck parking projects.—A State may obligate funds apportioned to the State under paragraph (1), (2), (3), or (5) of section 104(b) of title 23, United States Code, for the following, if serving the National Highway System:

(1) Constructing a safety rest area (as defined in section 120(c) of such title) that includes parking for commercial motor vehicles.

(2) Constructing a commercial motor vehicle parking facility adjacent to a commercial truck stop or travel plaza.

(3) Making a facility available to commercial motor vehicle parking, including an inspection and weigh station or a park-and-ride facility.

(4) Promoting the availability of publicly or privately provided commercial motor vehicle parking using intelligent transportation systems and other means.

(5) Constructing a turnout for commercial motor vehicles.

(6) Making capital improvements to a seasonal public commercial motor vehicle parking facility to allow the facility to remain open throughout the year.

(7) Improving the geometric design of an interchange to improve access to a commercial motor vehicle parking facility.

(c) Electric vehicle infrastructure.—A State may establish electric vehicle charging stations for the use of battery powered trucks or other motor vehicles at any parking facility funded or authorized under this Act or title 23, United States Code. Such charging stations shall be eligible for the same funds as are available for the parking facilities in which they are located.

SEC. 1716. Use of certain administrative expenses.

(a) In general.—Out of the funds made available under section 104(a) of title 23, United States Code, the Secretary may use not to exceed a total of $2,000,000 each fiscal year—

(1) to operate 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);

(2) to operate a public road safety clearinghouse under section 1411(a) of SAFETEA–LU (23 U.S.C. 402 note; 119 Stat. 1234); and

(3) to provide work zone safety grants under subsections (a) and (b) of section 1409 of SAFETEA–LU (23 U.S.C. 401 note; 119 Stat. 1232).

(b) Conforming amendments.—

(1) ROADWAY SAFETY.—Section 1411(a) of SAFETEA–LU (23 U.S.C. 402 note; 119 Stat. 1234) is amended by striking paragraph (2) and inserting the following:

“(2) FUNDING.—Funding for activities under this subsection may be made available as described in section 1716(a) of the American Energy and Infrastructure Jobs Act of 2012.”.

(2) WORK ZONE SAFETY GRANTS.—Section 1409 of SAFETEA–LU (23 U.S.C. 401 note; 119 Stat. 1232) is amended by striking subsection (c)(1) and inserting the following:

“(1) IN GENERAL.—Funding for activities under this section may be made available as described in section 1716(a) of the American Energy and Infrastructure Jobs Act of 2012.”.

SEC. 1717. 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 to develop such programs for transportation-related careers and trades, and to work with the Secretary of Transportation to carry out such programs.

SEC. 1718. Engineering and design services.

(a) In general.—For projects carried out under title 23, United States Code, a State transportation department shall utilize, to the maximum extent practicable, commercial enterprises for the delivery of engineering and design services.

(b) Reporting requirement.—Not later than 1 year after the date of enactment of this Act, each State transportation department shall submit to the Secretary a report documenting the extent to which the State utilizes commercial enterprises for the delivery of engineering and design services for projects carried out under title 23, United States Code, which shall include, at a minimum—

(1) the number and types of engineering and design activities for which commercial enterprises were utilized in the preceding year; and

(2) the policies or procedures utilized by the State transportation department to increase the amount of engineering and design services for which commercial enterprises were utilized.

(c) State transportation department defined.—In this section, the term “State transportation department” has the meaning given that term under section 101 of title 23, United States Code.

SEC. 1719. Notice of certain grant awards.

(a) In general.—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 written notice of the covered grant award.

(b) Covered grant award defined.—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.

SEC. 1720. Miscellaneous parking amendments.

(a) Fringe and corridor parking facilities.—Section 137(a) is amended by adding at the end the following: “The addition of electric vehicle charging stations to new or previously funded parking facilities shall be eligible for funding under this section.”.

(b) Public transportation.—Section 142(a)(1) is amended by inserting “(which may include electric vehicle charging stations)” after “parking facilities”.

(c) Forest development roads and trails.—Section 205(d) is amended by inserting “(which may include electric vehicle charging stations)” after “parking areas”.

SEC. 1721. Highway Buy America provisions.

Section 313 is amended by adding at the end the following:

“(g) Application.—The requirements of this section apply to all contracts 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 one contract for the project is funded with amounts made available to carry out this title.

“(h) Waiver requirements.—

“(1) IN GENERAL.—If the Secretary receives a request for a waiver under this section, the Secretary shall provide notice of and an opportunity for public comment on the request at least 30 days before making a finding based on the request.

“(2) NOTICE REQUIREMENTS.—A notice provided under paragraph (1) shall include the information available to the Secretary concerning the request and shall be provided by electronic means, including on the official public Internet Web site of the Department of Transportation.

“(3) DETAILED JUSTIFICATION.—If the Secretary issues a waiver under this subsection, the Secretary shall publish in the Federal Register a detailed justification for the waiver that addresses the public comments received under paragraph (1) and shall ensure that such justification is published before the waiver takes effect.”.

SEC. 1722. Veterans preference in highway construction.

Section 114 is amended by adding at the end the following:

“(d) Veterans employment.—Recipients of Federal financial assistance under this chapter shall ensure that contractors working on a highway project funded using such assistance give preference 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. This subsection shall not apply to projects subject to section 140(d).”.

SEC. 1723. Real-time ridesharing.

Section 101(a)(2) is amended—

(1) by striking “and” after “devices,”; and

(2) by inserting before the period at the end the following: “, and real-time ridesharing projects (where drivers, using an electronic transfer of funds, recover costs directly associated with the trip provided using location technology to quantify the direct costs associated with the trip, if the cost recovered does not exceed the cost of the trip provided)”.

SEC. 1724. 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 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. 1725. Equal opportunity assessment.

(a) In general.—In accordance with this section, the Secretary shall assess, throughout the United States, the extent to which nondiscrimination and equal opportunity exist in the construction and operation of federally funded transportation projects, programs, and activities.

(b) Supporting information.—In conducting the assessment under subsection (a), the Secretary shall—

(1) review all demographic data, discrimination complaints, reports, and other relevant information collected or prepared by a recipient of Federal financial assistance or the Department pursuant to an applicable civil rights statute, regulation, or other obligation; and

(2) coordinate with the Secretary of Labor, as necessary, to obtain information regarding equitable employment and contracting opportunities.

(c) Report.—Not later than 4 years after the date of enactment of this Act, and every 4 years thereafter, the Secretary shall submit to Congress and publish on the Web site of the Department a report on the results of the assessment under subsection (a). The report shall include the following:

(1) A specification of the impediments to nondiscrimination and equal opportunity in federally funded transportation projects, programs, and activities.

(2) Recommendations for overcoming the impediments specified under paragraph (1).

(3) Information upon which the assessment is based.

(d) Collection and reporting procedures.—

(1) PUBLIC AVAILABILITY.—The Secretary shall ensure, to the extent appropriate, that all information reviewed or collected for the assessment under subsection (a) is made available to the public through the prompt and ongoing publication of the information, including a summary of the information, on the Web site of the Department.

(2) REGULATIONS.—The Secretary shall issue regulations for the collection and reporting of information necessary to carry out this section.

(e) Coordination.—In carrying out this section, the Secretary shall coordinate with the Director of the Bureau of Transportation Statistics, the Director of the Departmental Office of Civil Rights, the Secretary of Labor, and the heads of such other agencies as may contribute to the assessment under subsection (a).

SEC. 2001. Short title; amendments to title 49, United States Code.

(a) Short title.—This title may be cited as the “Public Transportation Act of 2012”.

(b) Amendments to title 49, United States Code.—Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United States Code.

SEC. 2002. Definitions.

Section 5302(a) is amended—

(1) in paragraph (1)(I) by striking “10 percent” and inserting “15 percent”;

(2) by redesignating paragraphs (12) through (17) as paragraphs (13) through (18), respectively; and

(3) by inserting after paragraph (11) the following:

“(12) 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.”.

SEC. 2003. Planning programs.

Section 5305 is amended—

(1) in the heading for subsection (d) by inserting “Transportation” before “Planning”;

(2) in paragraph (d)(2), by striking “designated under this section” and inserting “responsible for carrying out the provisions of section 5203 of this title”;

(3) in subsection (e)—

(A) in the subsection heading by striking “State” and inserting “Statewide Transportation”; and

(B) in paragraph (1)(A) by striking “5315,”; and

(4) in subsection (g) by striking “section 5338(c)” and inserting “section 5338(a)(2)”.

SEC. 2004. Private enterprise participation.

Section 5306(a) is amended by striking “, as determined by local policies, criteria, and decisionmaking,”.

SEC. 2005. Urbanized area formula grants.

(a) Grants.—Section 5307(b)(1) is amended—

(1) by striking “and” at the end of subparagraph (E);

(2) by redesignating subparagraph (F) as subparagraph (G); and

(3) by inserting after subparagraph (E) the following:

“(F) operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of at least 200,000 if the State or regional authority providing public transportation for the urbanized area is operating—

“(i) 75 buses or fewer in fixed-route service during peak service hours, not to exceed 50 percent of the net project cost of the project for operating expenses; and

“(ii) more than 75 but fewer than 100 buses in fixed-route service during peak service hours, not to exceed 25 percent of the net project cost of the project for operating expenses; and”.

(b) General authority.—Section 5307(b)(3) is amended—

(1) by inserting “Transportation management areas.—” before “In a”; and

(2) by moving the text 2 ems to the right.

(c) Grant recipient requirements.—Section 5307(d)(1) is amended—

(1) in subparagraph (D)—

(A) by striking “elderly and handicapped individuals, or an” and inserting “elderly individuals, individuals with disabilities, and any”; and

(B) by striking the comma before “will be charged”;

(2) in subparagraph (H) by striking “section 5301(a), section 5301(d),” and inserting “section 5301”;

(3) in subparagraph (I) by adding “and” at the end;

(4) in subparagraph (J)(ii) by striking “; and” and inserting a period; and

(5) by striking subparagraph (K).

SEC. 2006. Capital investment grants.

(a) In general.—Section 5309 is amended to read as follows:

§ 5309. Capital investment grants

“(a) Definitions.—In this section, the following definitions apply:

“(1) NEW FIXED GUIDEWAY CAPITAL PROJECT.—The term ‘new fixed guideway capital project’ means an operable segment of a capital project for a new fixed guideway system or extension to an existing fixed guideway system.

“(2) NEW START PROJECT.—The term ‘new start project’ means a new fixed guideway capital project for which the Federal assistance provided or to be provided under this section is $75,000,000 or more.

“(3) SMALL START PROJECT.—The term ‘small start project’ means a new fixed guideway capital 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 assist State and local governmental authorities in financing—

“(1) new fixed guideway capital projects under subsections (d) and (e), including the acquisition of real property, the initial acquisition of rolling stock for the systems, the acquisition of rights-of-way, and relocation assistance, for fixed guideway corridor development for projects in the advanced stages of planning or in project development; and

“(2) the development of corridors to support new fixed guideway capital projects under subsections (d) and (e), including protecting rights-of-way through acquisition, construction of dedicated bus and high occupancy vehicle lanes, park and ride lots, and other nonvehicular capital improvements that the Secretary may determine would result in increased public transportation usage in the corridor.

“(c) Grant requirements.—

“(1) IN GENERAL.—The Secretary may not approve a grant under this section unless the Secretary determines that—

“(A) the project is part of an approved long-range transportation plan and program of projects required under sections 5203, 5204, and 5306; and

“(B) the applicant has, or will have—

“(i) the legal, financial, and technical capacity to carry out the project, including safety and security aspects of the project;

“(ii) satisfactory continuing control over the use of the equipment or facilities; and

“(iii) the capability and willingness to maintain the equipment or facilities.

“(2) CERTIFICATION.—An applicant that has submitted the certifications required under subparagraphs (A), (B), (C), and (H) of section 5307(d)(1) shall be deemed to have provided sufficient information upon which the Secretary may make the determinations required under this subsection.

“(3) GRANTEE REQUIREMENTS.—The Secretary shall require that any grant awarded under this section to a recipient be subject to all terms, conditions, requirements, and provisions that the Secretary determines to be necessary or appropriate for the purposes of this section, including requirements for the disposition of net increases in the value of real property resulting from the project assisted under this section.

“(d) New start projects.—

“(1) FULL FUNDING GRANT AGREEMENT.—

“(A) IN GENERAL.—A new start 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 this subsection, with each grantee receiving assistance for a new start project that—

“(i) is authorized for project development; and

“(ii) has been rated as high, medium-high, or medium, in accordance with paragraph (5).

“(2) APPROVAL OF GRANTS.—The Secretary may approve a grant under this section for a new start project only if the Secretary, based upon evaluations and considerations set forth in paragraph (3), determines that the project—

“(A) has been adopted as the locally preferred alternative as part of the long-range transportation plan required under section 5203;

“(B) is based on the results of an evaluation of the benefits of the project as set forth in paragraph (3); and

“(C) is supported by an acceptable degree of local financial commitment (including evidence of stable and dependable financing sources) to construct, maintain, and operate the system or extension, and maintain and operate the entire public transportation system without requiring a reduction in existing public transportation services or level of service to operate the project.

“(3) EVALUATION OF BENEFITS AND FEDERAL INVESTMENT.—In making a determination for a new start project under paragraph (2)(B), the Secretary shall analyze, evaluate, and consider the following evaluation criteria for the project (as compared to a no-action alternative):

“(A) The cost effectiveness of the project.

“(B) The mobility and accessibility benefits of the project, including direct intermodal connectivity with other modes of transportation.

“(C) The degree of congestion relief anticipated as a result of the project.

“(D) The reductions in energy consumption and air pollution associated with the project.

“(E) The economic development effects associated with the project.

“(F) The 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 strategies.

“(4) EVALUATION OF LOCAL FINANCIAL COMMITMENT.—In making a determination for a new start project under paragraph (2)(C), the Secretary shall—

“(A) require that the proposed project plan provide for the availability of contingency amounts that the Secretary determines to be reasonable to cover unanticipated cost increases;

“(B) require that each proposed local source of capital and operating financing is stable, reliable, and available within the project timetable;

“(C) consider 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;

“(D) consider the extent to which the project has a local financial commitment that exceeds the required non-Federal share of the cost of the project; and

“(E) consider the elements of the overall proposed public transportation system advanced with 100 percent non-Federal funds.

“(5) RATINGS.—In carrying out paragraphs (3) and (4) for a new 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.

“(e) Small start projects.—

“(1) IN GENERAL.—

“(A) APPLICABILITY OF REQUIREMENTS.—Except as provided by subparagraph (B), a small start project shall be subject to the requirements of this subsection.

“(B) PROJECTS RECEIVING LESS THAN $25,000,000 IN FEDERAL ASSISTANCE.—If the assistance provided under this section for a small start project is less than $25,000,000—

“(i) the requirements of this subsection shall not apply to the project if determined appropriate by the Secretary; and

“(ii) the Secretary shall utilize special warrants described in subsection (n) to advance the project and provide Federal assistance as appropriate.

“(2) 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 long-range transportation plan required under section 5203;

“(B) is based on the results of an analysis of the benefits of the project as set forth in paragraph (3); and

“(C) is supported by an acceptable degree of local financial commitment.

“(3) EVALUATION OF BENEFITS AND FEDERAL INVESTMENT.—In making a determination for a small start project under paragraph (2)(B), the Secretary shall analyze, evaluate, and consider the following evaluation criteria for the project (as compared to a no-action alternative):

“(A) The cost effectiveness of the project.

“(B) The mobility and accessibility benefits of the project, including direct intermodal connectivity with other modes of transportation.

“(C) The degree of congestion relief anticipated as a result of the project.

“(D) The economic development effects associated with the project.

“(4) EVALUATION OF LOCAL FINANCIAL COMMITMENT.—For purposes of paragraph (2)(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.

“(5) RATINGS.—In carrying out paragraphs (3) and (4) 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.

“(6) 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 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 (g)(2)(A).

“(C) NOTICE OF PROPOSED GRANTS AND EXPEDITED GRANT AGREEMENTS.—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.

“(7) INCLUSION OF CORRIDOR-BASED CAPITAL PROJECTS.—In this subsection, the term ‘small start project’ includes a corridor-based capital project if—

“(A) a majority of the project operates in a separate right-of-way dedicated for transit use during peak hour operations; or

“(B) the project represents a substantial investment in a defined corridor as demonstrated by investment in fixed transit facilities and equipment such as substantial transit stations, intelligent transportation systems technology, traffic signal priority, off-board fare collection, and other direct investments in the corridor.

“(f) Previously issued letter of intent or grant agreement.—Subsections (d) and (e) do not apply to projects for which the Secretary has issued a letter of intent, entered into an early systems work agreement or a full funding grant agreement, or has been approved to enter final design before the date of enactment of the Public Transportation Act of 2012.

“(g) 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 start 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.

“(B) TREATMENT.—The issuance of a letter under subparagraph (A) is deemed not to be an obligation under section 1108(c), 1108(d), 1501, or 1502(a) of title 31 or an administrative commitment.

“(2) FULL FUNDING GRANT AGREEMENTS.—

“(A) TERMS.—The Secretary may enter into a full funding grant agreement with an applicant for a grant under this section for a new start project. The agreement shall—

“(i) establish the terms of participation by the Government in the project;

“(ii) establish the maximum amount of Government financial assistance for the project;

“(iii) cover the period of time for completing the project, including, if necessary, a period extending beyond the period of an authorization;

“(iv) make timely and efficient management of the project easier according to the laws of the United States; and

“(v) establish terms requiring the applicant to repay all Government payments made under the agreement (plus such reasonable interest and penalty charges as are established by the Secretary in the agreement) if the applicant does not carry out the project for reasons within the control of the applicant.

“(B) 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 full funding grant 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. 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 a full funding grant agreement for a new start project shall be sufficient to complete at least one operable segment.

“(C) 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 start project on transit services and transit ridership;

“(II) evaluates the consistency of predicted and actual project characteristics and performance; and

“(III) identifies sources of differences between predicted and actual outcomes.

“(ii) INFORMATION COLLECTION AND ANALYSIS PLAN.—

“(I) SUBMISSION OF PLAN.—An applicant seeking a full funding grant agreement under this paragraph shall submit to the Secretary a complete plan for the collection and analysis of information to identify the impacts of the new start project and the accuracy of the forecasts prepared during the development of the project. Preparation of the plan shall be included in the agreement as an eligible activity.

“(II) CONTENTS OF PLAN.—The plan submitted under subclause (I) shall provide for—

“(aa) the collection of data on the current transit system of the applicant regarding transit service levels and ridership patterns, including origins and destinations, access modes, trip purposes, and rider characteristics;

“(bb) documentation of the predicted scope, service levels, capital costs, operating costs, and ridership of the project;

“(cc) collection of data on the transit system of the applicant 2 years after the opening of the new start project, including analogous information on transit service levels and ridership patterns and information on the as-built scope and capital costs of the project; and

“(dd) an analysis of the consistency of predicted project characteristics with the data collected under item (cc).

“(D) COLLECTION OF DATA ON CURRENT SYSTEM.—To be eligible to enter into a full funding grant agreement under this paragraph for a new start project, an applicant shall have collected data on the current transit system of the applicant, according to the plan required under subparagraph (C)(ii), before the beginning of construction of the project. Collection of the 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 for a new start project 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 a full funding grant agreement for the project will be made.

“(B) CONTENTS.—

“(i) IN GENERAL.—A work agreement under this paragraph for a new start project obligates an amount of available budget authority specified in law 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) PERIOD COVERED.—A work agreement under this paragraph shall cover the period of time the Secretary considers appropriate. The period may extend beyond the period of current authorization.

“(iii) INTEREST AND OTHER FINANCING COSTS.—Interest and other financing costs of efficiently carrying out the 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. 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.

“(iv) FAILURE TO CARRY OUT PROJECT.—If, after entering into a work agreement under this paragraph for a new start project, an applicant does not carry out the project for reasons within the control of the applicant, the applicant shall repay all Government payments made under the work agreement plus reasonable interest and penalty charges the Secretary establishes in the agreement.

“(4) LIMITATION ON AMOUNTS.—

“(A) NEW START GRANTS CONTINGENT COMMITMENT AUTHORITY.—The total estimated amount of future obligations of the Government and contingent commitments to incur obligations covered by all outstanding letters of intent, full funding grant agreements, and early systems work agreements under this subsection for new start projects may be not more than the greater of the amount authorized under section 5338(b) for such projects or an amount equivalent to the last 3 fiscal years of funding allocated under subsections (m)(2)(B) for such projects, less an amount the Secretary reasonably estimates is necessary for grants under this section for the projects that are not covered by a letter or agreement. The total amount covered by new letters and contingent commitments included in full funding grant agreements and early systems work agreements for such projects may be not more than a limitation specified in law.

“(B) APPROPRIATION REQUIRED.—An obligation may be made under this subsection only when amounts are appropriated for the obligation.

“(5) NOTIFICATION OF CONGRESS.—At least 10 days before issuing a letter of intent or an early systems work agreement under this section, and at least 21 days before entering into a full funding grant agreement under this section, 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 letter or agreement. 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.

“(h) Government’s share of net 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 of a new fixed guideway capital project. A grant under this section for the project shall be for 80 percent of the net capital project cost unless the grant recipient requests a lower grant percentage.

“(2) ADJUSTMENT FOR COMPLETION UNDER BUDGET.—The Secretary may adjust the final net project cost of a new fixed guideway capital project evaluated under subsections (d) and (e) 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) REMAINDER OF NET PROJECT COST.—The remainder of net project costs shall be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital from public or private sources.

“(4) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in this section shall be construed as authorizing the Secretary to request or require a non-Federal financial commitment for a project that is more than 20 percent of the net capital project cost.

“(5) 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 of 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.

“(i) Undertaking projects in advance.—

“(1) IN GENERAL.—The Secretary may pay the Government’s 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—

“(A) the State or local governmental authority applies for the payment;

“(B) the Secretary approves the payment; and

“(C) before carrying out the part of the project, the Secretary approves the plans and specifications for the part in the same manner 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 financial terms.

“(j) Availability of amounts.—An amount made available or appropriated under section 5338(b) for new fixed guideway capital projects shall remain available for a period of 3 fiscal years after the fiscal year in which the amount is made available or appropriated. Any of such amount that is unobligated at the end of such period shall be rescinded and deposited in the general fund of the Treasury, where such amounts shall be dedicated for the sole purpose of deficit reduction and prohibited from use as an offset for other spending increases or revenue reductions.

“(k) Reports on new start 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 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 a report that includes—

“(A) a proposal of allocations of amounts to be available to finance grants for new fixed guideway capital projects among applicants for these amounts;

“(B) evaluations and ratings, as required under subsections (d) and (e), for each such project that is authorized by the Public Transportation Act of 2012; 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) BIENNIAL GAO REVIEW.—Beginning 2 years after the date of enactment of the Public Transportation Act of 2012, 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

“(ii) the Secretary’s implementation of such processes and procedures; and

“(B) on a biennial basis, report to Congress on the results of such review by May 31.

“(l) Before and after study report.—Not later than the first Monday of August of each year, the Secretary shall submit to the committees referred to in subsection (k)(1) a report containing a summary of the results of the studies conducted under subsection (g)(2)(C).

“(m) Limitations.—

“(1) LIMITATION ON GRANTS.—The Secretary may make a grant or enter into a grant agreement for a new fixed guideway capital project under this section only if the project has been rated as high, medium-high, or medium or the Secretary has issued a special warrant described in subsection (n) in lieu of such ratings.

“(2) FISCAL YEARS 2013 THROUGH 2016.—Of the amounts made available or appropriated for fiscal years 2013 through 2016 under section 5338(b)—

“(A) $150,000,000 for each fiscal year shall be allocated for small start projects in accordance with subsection (e); and

“(B) the remainder shall be allocated for new start projects in accordance with subsection (d).

“(3) LIMITATION ON EXPENDITURES.—None of the amounts made available or appropriated under section 5338(b) may be expended on a project that has not been adopted as the locally preferred alternative as part of a long-range transportation plan.

“(n) Expedited project advancement.—

“(1) WARRANTS.—The Secretary, to the maximum extent practicable, shall develop and utilize special warrants to advance projects and provide Federal assistance under this section. Special warrants may be utilized to advance new fixed guideway projects under this section without requiring evaluations and ratings described under subsections (d)(5) and (e)(5). Such warrants shall be—

“(A) based on current transit ridership, corridor characteristics, and service on existing alignments;

“(B) designed to assess distinct categories of projects, such as proposed new service enhancements on existing alignments, new line haul service, and new urban circulator service; and

“(C) based on the benefits for proposed projects as set forth in subsections (d)(3) and (e)(3) for the Federal assistance provided or to be provided under this subsection.

“(2) NEW PROJECT DEVELOPMENT.—

“(A) IN GENERAL.—A project sponsor who requests Federal funding under this section shall apply to the Secretary to begin new project development after a proposed new fixed guideway capital project has been adopted as the locally preferred alternative as part of the metropolitan long-range transportation plan required under section 5303, and funding options for the non-Federal funding share have been identified. The application for new project development shall specify whether the project sponsor is seeking Federal assistance under subsection (d) or (e).

“(B) APPLICATIONS.—

“(i) NOTICE TO CONGRESS.—Not later than 10 days after the date of receipt of an application for new project development under subparagraph (A), the Secretary shall provide written notice of the application to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.

“(ii) APPROVAL OR DISAPPROVAL.—On the 11th day following the date on which the Secretary provides written notice of an application for new project development under clause (i), the Secretary shall approve or disapprove the application.

“(C) PROJECT AUTHORIZATION.—Upon approval of an application to begin new project development, the proposed new fixed guideway capital project shall be authorized and eligible for Federal funding under this section.

“(3) LETTERS OF INTENT AND EARLY SYSTEMS WORK AGREEMENTS.—The Secretary, to the maximum extent practicable, shall issue letters of intent and make early systems work agreements upon issuance of a record of decision under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

“(4) FUNDING AGREEMENTS.—The Secretary shall enter into a full funding grant agreement, expedited grant agreement, or grant, as appropriate, between the Government and the project sponsor as soon as the Secretary determines that the project meets the requirements of subsection (d) or (e).

“(5) RECORDS RETENTION.—The Secretary shall adhere to a uniform records retention policy regarding all documentation related to new fixed guideway capital projects.

“(o) Regulations.—Not later than 240 days after the date of enactment of the Public Transportation Act of 2012, the Secretary shall issue regulations establishing new program requirements for the programs created under this section, including new evaluation and rating processes for proposed projects under this section.”.

(b) Clerical amendment.—The analysis for chapter 53 is amended by striking the item relating to section 5309 and inserting the following:


“5309. Capital investment grants.”.

SEC. 2007. Bus and bus facilities formula grants.

(a) In general.—Section 5310 is amended to read as follows:

§ 5310. Bus and bus facilities formula grants

“(a) General authority.—The Secretary may make grants under this section to assist States and local governmental authorities in financing capital projects—

“(1) to replace, rehabilitate, and purchase buses and related equipment; and

“(2) to construct bus-related facilities.

“(b) Grant requirements.—The requirements of subsections (c) and (d) of section 5307 apply to recipients of grants made under this section.

“(c) Eligible recipients and subrecipients.—

“(1) RECIPIENTS.—Eligible recipients under this section are providers of public transportation in urbanized areas that operate fixed route bus services and that do not operate heavy rail, commuter rail, or light rail services.

“(2) SUBRECIPIENTS.—A recipient that receives a grant under this section may allocate the amounts provided to subrecipients that are public agencies, private companies engaged in public transportation, or private nonprofit organizations.

“(d) Distribution of grant funds.—Grants under this section shall be distributed pursuant to the formula set forth in section 5336 other than subsection (b).

“(e) Government’s share of costs.—

“(1) CAPITAL PROJECTS.—A grant for a capital project, as defined in section 5302(a)(1), shall be for 80 percent of the net project cost of the project. The recipient may provide additional local matching amounts.

“(2) REMAINING COSTS.—The remainder of the net project cost shall be provided—

“(A) in cash from non-Government sources other than revenues from providing public transportation services;

“(B) from revenues derived from the sale of advertising and concessions;

“(C) from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital; and

“(D) from amounts received under a service agreement with a State or local social service agency or private social service organization.

“(f) Period of availability to recipients.—A grant made available under this section may be obligated by the recipient for 3 years after the fiscal year in which the amount is apportioned. Not later than 30 days after the end of the 3-year period, an amount that is not obligated at the end of that period shall be added to the amount that may be apportioned under this section in the next fiscal year.

“(g) Transfers of apportionments.—

“(1) TRANSFER TO CERTAIN AREAS.—The chief executive officer of a State may transfer any part of the State’s funds made available under this section to urbanized areas of less than 200,000 in population or to rural areas in the State, after consulting with responsible local officials and publicly owned operators of public transportation in each area for which the amount originally was provided under this section.

“(2) TRANSFER TO STATE.—A designated recipient for an urbanized area with a population of at least 200,000 may transfer a part of its grant funds provided under this section to the chief executive officer of a State. The chief executive officer shall distribute the transferred amounts to urbanized areas of less than 200,000 in population or to rural areas in the State.

“(h) Application of other sections.—Sections 5302, 5318, 5323(a)(1), 5323(d), 5323(f), 5332, and 5333 apply to this section and to a grant made with funds apportioned under this section. Except as provided in this section, no other provision of this chapter applies to this section or to a grant under this section.”.

(b) Clerical amendment.—The analysis for chapter 53 is amended by striking the item relating to section 5310 and inserting the following:


“5310. Bus and bus facilities formula grants.”.

SEC. 2008. Rural area formula grants.

(a) Amendment to section heading.—Section 5311 is amended by striking the section designation and heading and inserting the following:

§ 5311. Rural area formula grants”.

(b) Program goals.—Section 5311(b) is amended by adding at the end the following:

“(5) PROGRAM GOALS.—The goals of this section are—

“(A) to enhance the mobility and access of people in rural areas by assisting in the development, construction, operation, improvement, maintenance, and use of public transportation systems and services in rural areas;

“(B) to increase the intermodalism of and connectivity among public transportation systems and services within rural areas and to urban areas by providing for maximum coordination of programs and services;

“(C) to increase the state of good repair of rural public transportation assets; and

“(D) to enhance the mobility and access of people in rural areas by assisting in the development and support of intercity bus transportation.”.

(c) Projects of national scope.—Section 5311(b)(3)(C) is amended by adding at the end the following: “In carrying out such projects, the Secretary shall enter into a competitively selected contract to provide on-site technical assistance to local and regional governments, public transit agencies, and public transportation-related nonprofit and for-profit organizations in rural areas for the purpose of developing training materials and providing necessary training assistance to local officials and agencies in rural areas.”.

(d) Apportionments.—Section 5311(c)(2) is amended—

(1) by striking “and” at the end of subparagraph (A);

(2) by striking subparagraph (B) and inserting the following:

“(B) 70 percent shall be apportioned to the States in accordance with paragraph (4); and”; and

(3) by adding at the end the following:

“(C) 10 percent shall be apportioned to the States in accordance with paragraph (5).”.

(e) Apportionments based on public transportation services provided in rural areas.—Section 5311(c) is amended by adding at the end the following:

“(5) APPORTIONMENTS BASED ON PUBLIC TRANSPORTATION SERVICES PROVIDED IN RURAL AREAS.—The Secretary shall apportion to each State an amount equal to the amount apportioned under paragraph (2)(C) as follows:

“(A) ½ of such amount multiplied by the ratio that—

“(i) the number of public transportation revenue vehicle-miles operated in or attributable to rural areas in that State, as determined by the Secretary; bears to

“(ii) the total number of all public transportation revenue vehicle-miles operated in or attributable to rural areas in all States; and

“(B) ½ of such amount multiplied by the ratio that—

“(i) the number of public transportation unlinked passenger trips operated in or attributable to rural areas in that State, as determined by the Secretary; bears to

“(ii) the total number of all public transportation unlinked passenger trips operated in or attributable to rural areas in all States.”.

(f) Use for administrative, planning, and technical assistance.—Section 5311(e) is amended by striking “15 percent” and inserting “10 percent”.

(g) Intercity bus transportation.—Section 5311(f)(1) is amended—

(1) in subparagraph (B) by striking “shelters” and inserting “facilities”; and

(2) in subparagraph (C) by striking “stops and depots” and inserting “facilities”.

(h) Non-Federal share.—Section 5311(g)(3) is amended—

(1) in subparagraph (B) by striking “and” at the end;

(2) in subparagraph (C) by striking the period at the end and inserting “; and”; and

(3) by adding at the end the following:

“(D) may be derived from the costs of a private operator’s intercity bus service as an in-kind match for the operating costs of connecting rural intercity bus feeder service funded under subsection (f), except that this subparagraph shall apply only if the project includes both feeder service and a connecting unsubsidized intercity route segment and if the private operator agrees in writing to the use of its unsubsidized costs as an in-kind match.”.

(i) Clerical amendment.—The analysis for chapter 53 is amended by striking the item relating to section 5311 and inserting the following:


“5311. Rural area formula grants.”.

SEC. 2009. Transit research.

(a) Amendment to section heading.—Section 5312 is amended by striking the section designation and heading and inserting the following:

§ 5312. Transit research”.

(b) Research projects.—Section 5312(a) is amended by adding at the end the following:

“(4) FUNDING.—The amounts made available under section 5338(c) are available to the Secretary for grants, contracts, cooperative agreements, or other agreements for the purposes of this section and sections 5305 and 5322, as the Secretary considers appropriate.”.

(c) Joint partnership program.—Section 5312(b)(5) is amended by striking “Mass Transit Account” and inserting “Alternative Transportation Account”.

(d) Transit cooperative research program.—Section 5312(c) is amended to read as follows:

“(c) Transit cooperative research program.—

“(1) IN GENERAL.—The Secretary shall carry out a public transportation cooperative research program using amounts made available under section 5338(c).

“(2) INDEPENDENT GOVERNING BOARD.—The Secretary shall establish an independent governing board for the program. The board shall recommend public transportation research, development, and technology transfer activities to be carried out under the program.

“(3) GRANTS AND COOPERATIVE AGREEMENTS.—The Secretary may make grants to, and enter into cooperative agreements with, the National Academy of Sciences to carry out activities under this subsection that the Secretary determines appropriate.”.

(e) Government share.—Section 5312 is amended by adding at the end the following:

“(d) Government share.—If there would be a clear and direct financial benefit to an entity under a grant or contract financed under this section, the Secretary shall establish a Government share consistent with that benefit.”.

(f) Clerical amendment.—The analysis for chapter 53 is amended by striking the item relating to section 5312 and inserting the following:


“5312. Transit research.”.

SEC. 2010. Coordinated access and mobility program formula grants.

(a) In general.—Section 5317 is amended to read as follows:

§ 5317. Coordinated access and mobility program formula grants

“(a) Definitions.—In this section, the following definitions apply:

“(1) ELDERLY INDIVIDUAL.—The term ‘elderly individual’ means an individual who is age 65 or older.

“(2) 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 of the Community Services Block Grant Act (42 U.S.C. 9902), including any revision required by that section) for a family of the size involved.

“(3) JOB ACCESS AND REVERSE COMMUTE PROJECT.—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.

“(4) RECIPIENT.—The term ‘recipient’ means a designated recipient (as defined in section 5307(a)) and a State that directly receives a grant under this section.

“(5) SUBRECIPIENT.—The term ‘subrecipient’ means a State or local governmental authority, nonprofit organization, or private operator of public transportation services that receives a grant under this section indirectly through a recipient.

“(6) 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 this section.

“(b) Goals.—The goals of the program established under this section are to—

“(1) improve the accessibility of the Nation’s public transportation systems and services;

“(2) improve the mobility of or otherwise meet the special needs of elderly individuals, eligible low-income individuals, and individuals with disabilities; and

“(3) improve the coordination among all providers of public transportation and human services transportation.

“(c) General authority.—

“(1) GRANTS.—The Secretary may make grants under this section to recipients for the following purposes:

“(A) For public transportation projects planned, designed, and carried out to meet the special needs of elderly individuals and individuals with disabilities.

“(B) For job access and reverse commute projects carried out by the recipient or a subrecipient.

“(C) For new public transportation services, and for public transportation alternatives beyond those required by the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), that assist individuals with disabilities with transportation, including transportation to and from jobs and employment support services.

“(2) ACQUIRING PUBLIC TRANSPORTATION SERVICES.—A public transportation capital project under this section may include acquisition of public transportation services as an eligible capital expense.

“(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.

“(d) Apportionments.—

“(1) FORMULA.—The Secretary, using the most recent decennial census data, shall apportion amounts made available for a fiscal year to carry out this section as follows:

“(A) 50 percent of the funds shall be apportioned among designated recipients (as defined in section 5307(a)) for urbanized areas with a population of 200,000 or more in the ratio that—

“(i) the number of elderly individuals, individuals with disabilities, eligible low-income individuals, and welfare recipients in each such urbanized area; bears to

“(ii) the number of elderly individuals, individuals with disabilities, eligible low-income individuals, and welfare recipients in all such urbanized areas.

“(B) 25 percent of the funds shall be apportioned among the States in the ratio that—

“(i) the number of elderly individuals, individuals with disabilities, eligible low-income individuals, and welfare recipients in urbanized areas with a population of less than 200,000 in each State; bears to

“(ii) the number of elderly individuals, individuals with disabilities, eligible low-income individuals, and welfare recipients in urbanized areas with a population of less than 200,000 in all States.

“(C) 25 percent of the funds shall be apportioned among the States in the ratio that—

“(i) the number of elderly individuals, individuals with disabilities, eligible low-income individuals, and welfare recipients in rural areas with a population of less than 50,000 in each State; bears to

“(ii) the number of elderly individuals, individuals with disabilities, eligible low-income individuals, and welfare recipients in rural areas with a population of less than 50,000 in all States.

“(2) USE OF APPORTIONED FUNDS.—Except as provided in paragraph (3)—

“(A) funds apportioned under paragraph (1)(A) shall be used for projects serving urbanized areas with a population of 200,000 or more;

“(B) funds apportioned under paragraph (1)(B) shall be used for projects serving urbanized areas with a population of less than 200,000; and

“(C) funds apportioned under paragraph (1)(C) shall be used for projects serving rural areas.

“(3) EXCEPTIONS.—A State may use funds apportioned under paragraph (1)(B) or (1)(C)—

“(A) for projects serving areas other than the area specified in paragraph (2)(B) or (2)(C), 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 specified area; or

“(B) for projects anywhere in the State if the State has established a statewide program for meeting the objectives of this section.

“(4) MINIMUM APPORTIONMENT.—

“(A) IN GENERAL.—The Secretary may establish a minimum apportionment for States and territories under paragraph (1).

“(B) LIMITATION.—A minimum apportionment received by a State or territory under this paragraph for a fiscal year may not exceed the total of the fiscal year 2012 apportionments received by the State or territory under sections 5310, 5316, and 5317 (as in effect on the day before the date of enactment of the Public Transportation Act of 2012).

“(e) Competitive process for grants to subrecipients.—

“(1) AREAWIDE SOLICITATIONS.—A recipient of funds apportioned under subsection (d)(1)(A) shall conduct, in cooperation with the appropriate metropolitan planning organization, an areawide solicitation for applications for grants to the recipient and subrecipients under this section.

“(2) STATEWIDE SOLICITATION.—A recipient of funds apportioned under subsection (d)(1)(B) or (d)(1)(C) shall conduct a statewide solicitation for applications for grants to the recipient and subrecipients under this section.

“(3) SPECIAL RULE.—A recipient of a grant under this section may allocate the amounts provided under the grant to—

“(A) a nonprofit organization or private operator of public transportation, if the public transportation service provided under subsection (c)(1) is unavailable, insufficient, or inappropriate; or

“(B) in the case of a grant to provide the services described in subsection (c)(1)(A), a governmental authority that—

“(i) is approved by the recipient to coordinate services for elderly individuals and individuals with disabilities; or

“(ii) certifies that there are not any nonprofit organizations or private operators of public transportation services readily available in the area to provide the services described in subsection (c)(1)(A).

“(4) APPLICATION.—Recipients and subrecipients seeking to receive a grant from funds apportioned under subsection (d) shall submit to the recipient an application in such form and in accordance with such requirements as the recipient shall establish.

“(5) GRANT AWARDS.—The recipient shall award grants under paragraphs (1) and (2) on a competitive basis.

“(6) FAIR AND EQUITABLE DISTRIBUTION.—A recipient of a grant under this section shall certify to the Secretary that allocations of the grant to subrecipients will be distributed on a fair, equitable, and competitive basis.

“(f) Grant requirements.—With respect to a grant made to provide services described in subsection (c), the Secretary shall apply grant requirements that are consistent with requirements for activities authorized under sections 5310, 5316, and 5317 (as such sections were in effect on the day before the date of enactment of the Public Transportation Act of 2012).

“(g) Coordination.—

“(1) IN GENERAL.—The Secretary shall coordinate activities under this section with related activities under programs of other Federal departments and agencies.

“(2) PROJECT SELECTION AND PLANNING.—A recipient of funds under this section shall certify to the Secretary that—

“(A) the projects selected to receive funding under this section were derived from a locally developed, coordinated public transportation-human services transportation plan;

“(B) the plan was developed through a process that included participation by representatives of public, private, and nonprofit transportation and human services providers and participation by the public and appropriate advocacy organizations; and

“(C) the planning process provided for consideration of projects and strategies to create or improve regional transportation services that connect multiple jurisdictions.

“(h) Government’s share of costs.—

“(1) CAPITAL PROJECTS.—

“(A) IN GENERAL.—Except as provided in subparagraph (B), a grant for a capital project under this section shall be for 80 percent of the net capital costs of the project, as determined by the Secretary. The recipient may provide additional local matching amounts.

“(B) EXCEPTION.—A State described in section 120(b) of title 23 shall receive an increased Government share in accordance with the formula under such section.

“(2) OPERATING ASSISTANCE.—

“(A) IN GENERAL.—Except as provided in 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 that equals 62.5 percent of the Government share provided for under paragraph (1)(B).

“(3) REMAINDER.—The remainder of the 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 to or 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

“(C) notwithstanding subparagraph (B), may be derived from amounts made available to carry out the Federal lands transportation program established by section 203 of title 23.

“(4) USE OF CERTAIN FUNDS.—For purposes of paragraph (3)(B), the prohibitions on the use of funds for matching requirements under section 403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to Federal or State funds to be used for transportation purposes.

“(5) LIMITATION ON OPERATING ASSISTANCE.—A recipient carrying out a program of operating assistance under this section may not limit the level or extent of use of the Government grant for the payment of operating expenses.

“(i) Leasing vehicles.—Vehicles and equipment acquired under this section may be leased to a recipient or subrecipient to improve transportation services designed to meet the special needs of elderly individuals, eligible low-income individuals, and individuals with disabilities.

“(j) Meal delivery for homebound individuals.—Public transportation service providers receiving assistance under this section or section 5311(c) may coordinate and assist in regularly providing meal delivery service for homebound individuals if the delivery service does not conflict with providing public transportation service or reduce service to public transportation passengers.

“(k) Transfers of facilities and equipment.—With the consent of the recipient in possession of a facility or equipment acquired with a grant under this section, a State may transfer the facility or equipment to any recipient eligible to receive assistance under this chapter if the facility or equipment will continue to be used as required under this section.

“(l) Program evaluation.—Not later than 2 years after the date of enactment of the Public Transportation Act of 2012, and not later than 2 years thereafter, the Comptroller General of the United States shall—

“(1) conduct a study to evaluate the grant program authorized by this section, including a description of how grant recipients have coordinated activities carried out under this section with transportation activities carried out by recipients using grants awarded under title III of the Older Americans Act of 1965 (42 U.S.C. 3021 et seq.); and

“(2) transmit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report describing the results of the study under subparagraph (A).”.

(b) Clerical amendment.—The analysis for chapter 53 is amended by striking the item relating to section 5317 and inserting the following:


“5317. Coordinated access and mobility program formula grants.”.

SEC. 2011. Training and technical assistance programs.

(a) Amendment to section heading.—Section 5322 is amended by striking the section designation and heading and inserting the following:

§ 5322. Training and technical assistance programs”.

(b) Training and outreach.—Section 5322(a) is amended—

(1) by striking “programs that address” and all that follows before the period at the end of the first sentence and inserting “programs that address training and outreach needs as they apply to public transportation activities, and programs that provide public transportation-related technical assistance to providers of public transportation services”;

(2) by striking “and” at the end of paragraph (3);

(3) by striking the period at the end of paragraph (4) and inserting “; and”; and

(4) by adding at the end the following:

“(5) technical assistance provided through national nonprofit organizations with demonstrated capacity and expertise in a particular area of public transportation policy.”.

(c) National Transit Institute, technical assistance, and funding.—Section 5322 is amended by adding at the end the following:

“(c) National Transit Institute.—

“(1) GRANTS AND CONTRACTS.—The Secretary may award grants or enter into contracts with a public university to establish a National Transit Institute to support training and educational programs for Federal, State, and local transportation employees engaged or to be engaged in Government-aid public transportation work.

“(2) EDUCATION AND TRAINING.—The National Transit Institute shall provide education and training to employees of State and local governments at no cost when the education and training is related to a responsibility under a Government program.

“(d) Technical assistance.—The Secretary may provide public transportation-related technical assistance under this section as follows:

“(1) To help public transportation providers comply with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) through a competitively selected contract or cooperative agreement with a national nonprofit organization serving individuals with disabilities that has a demonstrated capacity to carry out technical assistance, demonstration programs, research, public education, and other activities related to complying with such Act.

“(2) To help public transportation providers comply with human services transportation coordination requirements and to enhance the coordination of Federal resources for human services transportation with those of the Department of Transportation through a competitively selected contract or cooperative agreement with a national nonprofit organization that has a demonstrated capacity to carry out technical assistance, training, and support services related to complying with such requirements.

“(3) To help public transportation providers meet the transportation needs of elderly individuals through a competitively selected contract or cooperative agreement with a national nonprofit organization serving elderly individuals that has a demonstrated capacity to carry out such activities.

“(4) To provide additional technical assistance, mobility management services, volunteer support services, training, and research that the Secretary determines will assist public transportation providers meet the goals of this section.

“(e) Funding.—Training and outreach programs and technical assistance activities performed under this section shall be paid for with administrative funds made available under section 5338(c).”.

(d) Clerical amendment.—The analysis for chapter 53 is amended by striking the item relating to section 5322 and inserting the following:


“5322. Training and technical assistance programs.”.

SEC. 2012. General provisions.

(a) Government’s share of costs for certain projects.—Section 5323(i) is amended by adding at the end the following:

“(3) COSTS INCURRED BY PROVIDERS OF PUBLIC TRANSPORTATION BY VANPOOL.—

“(A) LOCAL MATCHING SHARE.—The local matching share provided by a recipient of assistance for a capital project under this chapter may include any amounts expended by a provider of public transportation by vanpool for the acquisition of rolling stock to be used by such provider in the recipient’s service area, excluding any amounts the provider may have received in Federal, State, or local government assistance for such acquisition.

“(B) USE OF REVENUES.—A private provider of public transportation by vanpool may use revenues it receives in the provision of public transportation service in the service area of a recipient of assistance under this chapter that are in excess of the provider’s operating costs for the purpose of acquiring rolling stock, if the private provider enters into a legally binding agreement with the recipient that requires the provider to use the rolling stock in the recipient’s service area.

“(C) DEFINITIONS.—In this paragraph, the following definitions apply:

“(i) PRIVATE PROVIDER OF PUBLIC TRANSPORTATION BY VANPOOL.—The term ‘private provider of public transportation by vanpool’ means a private entity providing vanpool services in the service area of a recipient of assistance under this chapter using a commuter highway vehicle or vanpool vehicle.

“(ii) COMMUTER HIGHWAY VEHICLE; VANPOOL VEHICLE.—The term ‘commuter highway vehicle’ or ‘vanpool vehicle’ means any vehicle—

“(I) the seating capacity of which is at least 6 adults (not including the driver); and

“(II) at least 80 percent of the mileage use of which can be reasonably expected to be for the purposes of transporting commuters in connection with travel between their residences and their place of employment.

“(4) INCENTIVES FOR COMPETITIVELY CONTRACTED SERVICE.—

“(A) ELIGIBILITY.—Subject to subparagraph (C), a recipient of assistance under this chapter that meets the targets under subparagraph (B) for competitively contracted service shall be eligible, at the request of the recipient, for a Federal share of 90 percent for the capital cost of buses and bus-related facilities and equipment purchased with financial assistance made available under this chapter.

“(B) TARGET.—To qualify for the competitively contracted service incentive program under this paragraph, a public transit agency or governmental unit shall competitively contract for at least 20 percent of its fixed route bus service. The percentage of competitively contracted service shall be calculated by determining the ratio of competitively contracted service vehicles operated in annual maximum service to total vehicles operated in annual maximum service.

“(C) MAINTENANCE OF EFFORT.—A public transit agency or governmental unit shall be eligible for an increased Federal share under this paragraph only if the amount of State and local funding provided to the affected public transit agency or governmental unit for the capital cost of buses and bus-related facilities and equipment will not be less than the average amount of funding for such purposes provided during the 3 fiscal years preceding the date of enactment of this paragraph.

“(D) DEFINITIONS.—In this paragraph, the following definitions apply:

“(i) COMPETITIVELY CONTRACTED SERVICE.—The term ‘competitively contracted service’ means fixed route bus transportation service purchased by a public transit agency or governmental unit from a private transportation provider based on a written contract.

“(ii) VEHICLES OPERATED IN ANNUAL MAXIMUM SERVICE.—The term ‘vehicles operated in annual maximum service’ means the number of transit vehicles operated to meet the annual maximum service requirement during the peak season of the year, on the week and day that maximum service is provided.”.

(b) Reasonable access to public transportation facilities.—Section 5323 is amended by adding at the end the following:

“(q) Reasonable Access to Public Transportation Facilities.—A recipient of assistance under this chapter may not deny reasonable access for a private intercity or charter transportation operator to federally funded public transportation facilities, including intermodal facilities, park and ride lots, and bus-only highway lanes.”.

(c) Special condition on charter bus transportation service.—If, in any fiscal year, the Secretary is prohibited by law from enforcing regulations related to charter bus service under part 604 of title 49, Code of Federal Regulations, for any transit agency that during fiscal year 2008 was both initially granted a 60-day period to come into compliance with part 604, and then was subsequently granted an exception from such part—

(1) the transit agency shall be precluded from receiving its allocation of urbanized area formula grant funds for that fiscal year; and

(2) any amounts withheld pursuant to paragraph (1) shall be added to the amount that the Secretary may apportion under section 5336 of title 49, United States Code, in the following fiscal year.

SEC. 2013. Contract requirements.

Section 5325(h) is amended by striking “Federal Public Transportation Act of 2005” and inserting “Public Transportation Act of 2012”.

SEC. 2014. Veterans preference in transit construction.

Section 5325 is amended by adding at the end the following:

“(k) Veterans employment.—Recipients and subrecipients of Federal financial assistance under this chapter shall ensure that contractors working on a capital project funded using such assistance give a preference in the hiring or referral of laborers 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.”.

SEC. 2015. Private sector participation.

(a) In general.—Chapter 53 is amended by inserting after section 5325 the following:

§ 5326. Private sector participation

“(a) General purposes.—In the interest of fulfilling the general purposes of this chapter under section 5301(f), the Secretary shall—

“(1) better coordinate public and private sector-provided public transportation services; and

“(2) promote more effective utilization of private sector expertise, financing, and operational capacity to deliver costly and complex new fixed guideway capital projects.

“(b) Actions to Promote Better Coordination Between Public and Private Sector Providers of Public Transportation.—The Secretary shall—

“(1) provide technical assistance to recipients of Federal transit grant assistance on practices and methods to best utilize private providers of public transportation; and

“(2) educate recipients of Federal transit grant assistance on laws and regulations under this chapter that impact private providers of public transportation.

“(c) Actions to Provide Technical Assistance for Alternative Project Delivery Methods.—Upon request by a sponsor of a new fixed guideway capital project, the Secretary shall—

“(1) identify best practices for public-private partnerships models in the United States and in other countries;

“(2) develop standard public-private partnership transaction model contracts; and

“(3) perform financial assessments that include the calculation of public and private benefits of a proposed public-private partnership transaction.”.

(b) Clerical amendment.—The analysis for such chapter is amended by inserting after the item relating to section 5325 the following:


“5326. Private sector participation.”.

(c) Public-Private partnership procedures and approaches.—

(1) IDENTIFY IMPEDIMENTS.—The Secretary shall—

(A) except as provided in paragraph (4), identify any provisions of chapter 53 of title 49, United States Code, and any regulations or practices thereunder, that impede greater use of public-private partnerships and private investment in public transportation capital projects;

(B) develop and implement on a project basis procedures and approaches that—

(i) address such impediments in a manner similar to the Special Experimental Project Number 15 of the Federal Highway Administration (commonly referred to as “SEP–15”); and

(ii) protect the public interest and any public investment in covered projects.

(2) REPORT.—Not later than 4 years after the date of enactment of this Act, the Secretary shall submit to Congress a report on the status of the procedures and approaches developed and implemented under paragraph (1).

(3) RULEMAKING.—Not later than 1 year after the date of enactment of this Act, the Secretary shall issue rules to carry out the procedures and approaches developed under paragraph (1).

(4) RULE OF CONSTRUCTION.—Nothing in this subsection may be construed to allow the Secretary to waive any requirement under—

(A) section 5333 of title 49, United States Code;

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

(C) any other provision of Federal law not described in paragraph (2)(A).

(d) Contracting out study.—

(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a comprehensive report on the effect of contracting out public transportation operations and administrative functions on cost, availability and level of service, efficiency, and quality of service.

(2) CONSIDERATIONS.—In developing the report, the Comptroller General shall consider—

(A) the number of grant recipients that have contracted out services and the types of public transportation services that are performed under contract, including paratransit service, fixed route bus service, commuter rail operations, and administrative functions;

(B) the size of the populations served by such grant recipients;

(C) the basis for decisions regarding contracting out such services;

(D) comparative costs of providing service under contract to providing the same service through public transit agency employees, using to the greatest extent possible a standard cost allocation model;

(E) the extent of unionization among privately contracted employees; and

(F) barriers to contracting out public transportation operations and administrative functions.

(e) Guidance on documenting compliance.—Not later than 1 year after the date of enactment of this Act, the Secretary shall publish in the Federal Register policy guidance regarding how to best document compliance by recipients of Federal assistance under chapter 53 of title 49, United States Code, with the requirements regarding private enterprise participation in public transportation planning and transportation improvement programs under sections 5203(g)(6) (as added by title IV of this Act), and sections 5306(a) and 5307(c) of this title.

SEC. 2016. Project management oversight.

Section 5327(c)(1) is amended—

(1) by striking “to make contracts”; and

(2) by striking subparagraph (F) and inserting the following:

    “(F) 1 percent of amounts made available to carry out section 5337.

    “(G) 0.75 percent of amounts made available to carry out section 5317.”.

SEC. 2017. State safety oversight.

(a) General authority.—Section 5330(b) is amended to read as follows:

“(b) General authority.—The Secretary may require that up to 100 percent of the amount required to be appropriated for use in a State or urbanized area in the State under section 5307 for a fiscal year beginning after September 30, 2013, be utilized on capital safety improvement and state of good repair projects for the benefit of fixed guideway transportation systems in such State or urbanized area in the State before any other transit capital project is undertaken, if—

“(1) the State in the prior fiscal year has not met the requirements of subsection (c); or

“(2) the Secretary has certified that the State safety oversight agency (as defined in section 5336(k)(1)(B)) does not have adequate technical capacity, personnel resources, and authority under relevant State law to perform the agency’s responsibilities described in that section.”.

SEC. 2018. Apportionment of appropriations for formula grants.

(a) Apportionments.—Section 5336(i) is amended to read as follows:

“(i) Apportionments.—Of the amounts made available for each fiscal year under section 5338(a)(2)(B)—

“(1) 2 percent shall be apportioned to certain urbanized areas with populations of less than 200,000 in accordance with subsection (j);

“(2) 1 percent shall be apportioned to applicable States for operational support and training costs of State safety oversight agencies and personnel employed by or under contract to such agencies in accordance with subsection (k); and

“(3) any amount not apportioned under paragraphs (1) and (2) shall be apportioned to urbanized areas in accordance with subsections (a) through (c).”.

(b) State safety oversight agencies.—Section 5336(k) is amended to read as follows:

“(k) State safety oversight agencies formula.—

“(1) DEFINITIONS.—In this subsection, the following definitions apply:

“(A) APPLICABLE STATES.—The term ‘applicable States’ means States that—

“(i) have rail fixed guideway public transportation systems that are not subject to regulation by the Federal Railroad Administration; or

“(ii) are designing or constructing rail fixed guideway public transportation systems that will not be subject to regulation by the Federal Railroad Administration.

“(B) STATE SAFETY OVERSIGHT AGENCIES.—The term ‘State safety oversight agency’ means a designated State authority that has responsibility—

“(i) for requiring, reviewing, approving, and monitoring safety program plans under section 5330(c)(1);

“(ii) for investigating hazardous conditions and accidents on fixed guideway public transportation systems that are not subject to regulation by the Federal Railroad Administration; and

“(iii) for requiring action to correct or eliminate those conditions.

“(2) APPORTIONMENT.—

“(A) APPORTIONMENT FORMULA.—The amount to be apportioned under subsection (i)(2) shall be apportioned among applicable States under a formula to be established by the Secretary. Such formula shall take into account factors of fixed guideway revenue vehicle miles, fixed guideway route miles, and fixed guideway vehicle passenger miles attributable to all rail fixed guideway systems not subject to regulation by the Federal Railroad Administration within each applicable State.

“(B) RECIPIENTS OF APPORTIONED AMOUNTS.—Amounts apportioned under the formula established pursuant to subparagraph (A) shall be made available as grants to State safety oversight agencies. Such grants are subject to uniform administrative requirements for grants and cooperative agreements to State and local governments under part 18 of title 49, Code of Federal Regulations, and are subject to the requirements of this chapter as the Secretary determines appropriate.

“(C) USE OF FUNDS.—A State safety oversight agency may use funds apportioned under subparagraph (A) for program operational and administrative expenses, including employee training activities, that assist the agency in carrying out its responsibilities described in paragraph (1)(B).

“(D) CERTIFICATION PROCESS.—

“(i) DETERMINATIONS.—The Secretary shall determine whether or not each State safety oversight agency has adequate technical capacity, personnel resources, and authority under relevant State law to perform the agency’s defined responsibilities described in paragraph (1)(B).

“(ii) ISSUANCE OF CERTIFICATIONS AND DENIALS.—The Secretary shall—

“(I) issue a certification to each State safety oversight agency that the Secretary determines under clause (i) has adequate technical capacity, personnel resources, and authority; and

“(II) issue a denial of certification to each State safety oversight agency that the Secretary determines under clause (i) does not have adequate technical capacity, personnel resources, and authority, and provide the agency with a written explanation of the reasons for the denial.

“(E) ANNUAL REPORT.—On or before July 1 of each year, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on—

“(i) the amount of funds apportioned to each applicable State; and

“(ii) the certification status of each State safety oversight agency, including what steps an agency that has been denied certification must take in order to be so certified.”.

(c) Conforming amendment.—Section 5336(d)(1) is amended by striking “subsections (a)(1)(C)(vi) and (b)(2)(B) of section 5338” and inserting “section 5338(a)(2)(B)”.

SEC. 2019. Fixed guideway modernization formula grants.

(a) Amendment to section heading.—Section 5337 is amended—

(1) by striking the section designation and heading and inserting the following:

§ 5337. Fixed guideway modernization program”.

(b) Program goals.—Section 5337 is amended—

(1) by redesignating subsections (a) through (f) as subsections (c) through (h), respectively; and

(2) by inserting before subsection (c) (as so redesignated) the following:

“(a) Program goals.—The goals of the fixed guideway modernization program are—

“(1) to rehabilitate, maintain, and preserve the Nation’s fixed guideway public transportation systems;

“(2) to reduce the maintenance backlog and increase the state of good repair of the Nation’s fixed guideway public transportation systems; and

“(3) to increase the overall ridership on fixed guideway public transportation systems.

“(b) General authority.—The Secretary may make grants to eligible recipients under this section to assist State and local government authorities in financing capital projects to modernize eligible fixed guideway systems.”.

(c) Distribution.—Section 5337(c) (as redesignated by subsection (b)(1) of this section) is amended by striking “under section 5309” and all that follows before paragraph (1) and inserting “for a fiscal year as follows:”.

(d) Availability of amounts.—Section 5337(f) (as redesignated by subsection (b)(1) of this section) is amended to read as follows:

“(f) Availability of amounts.—An amount appropriated under this section shall remain available for a period of 3 fiscal years after the fiscal year in which the amount is appropriated. Any of such amount that is unobligated at the end of such period shall be reapportioned for the next fiscal year among eligible recipients in accordance with subsection (c).”.

(e) Grant requirements.—Section 5337 is amended by adding at the end the following:

“(i) Undertaking projects in advance.—

“(1) IN GENERAL.—When a recipient obligates all amounts apportioned to it under this section and then carries out a part of a project described in this section without amounts of the Government and according to all applicable procedures and requirements (except to the extent the procedures and requirements limit a State to carrying out a project with amounts of the Government previously apportioned to it), the Secretary may pay to the recipient the Government’s share of the cost of carrying out that part when additional amounts are apportioned to the recipient under this section if—

“(A) the recipient applies for the payment;

“(B) the Secretary approves the payment; and

“(C) before carrying out that part, the Secretary approves the plans and specifications for the part in the same way as for other projects under this section.

“(2) REQUIREMENT FOR APPROVAL OF APPLICATIONS.—The Secretary may approve an application under paragraph (1) only if an authorization for this section is in effect for the fiscal year to which the application applies.

“(3) INTEREST PAYMENTS.—The cost of carrying out that 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 this part. However, 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. 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.

“(j) Grant requirements.—A grant under this section shall be subject to the requirements of subsections (c), (d), (e), (h), (i), and (m) of section 5307.”.

(f) Clerical amendment.—The analysis for chapter 53 is amended by striking the item relating to section 5337 and inserting the following:


“5337. Fixed guideway modernization program.”.

SEC. 2020. Authorizations.

(a) In general.—Section 5338 is amended to read as follows:

§ 5338. Authorizations

“(a) Formula and bus grants.—

“(1) IN GENERAL.—There shall be available from the Alternative Transportation Account of the Highway Trust Fund to carry out sections 5305, 5307, 5310, 5311, 5317, 5330, 5335, and 5337 $8,400,000,000 for each of fiscal years 2013 through 2016.

“(2) ALLOCATION OF FUNDS.—Amounts made available under paragraph (1) shall be allocated as follows:

“(A) $126,000,000 for each of fiscal years 2013 through 2016 shall be available to carry out section 5305.

“(B) $4,578,000,000 for each of fiscal years 2013 through 2016 shall be allocated in accordance with section 5336 to provide financial assistance for urbanized areas and State safety oversight agencies under sections 5307 and 5336(k).

“(C) $840,000,000 for each of fiscal years 2013 through 2016 shall be available to provide financial assistance for States and local governmental authorities to replace, rehabilitate, and purchase buses and related equipment and to construct bus-related facilities under section 5310. Of such amount, $3,000,000 shall be available for each fiscal year for bus testing under section 5318.

“(D) $672,000,000 for each of fiscal years 2013 through 2016 shall be available to provide financial assistance for rural areas under section 5311.

“(E) $504,000,000 for each of fiscal years 2013 through 2016 shall be available to provide financial assistance for recipients and subrecipients to provide coordinated access and mobility public transportation projects and services under section 5317.

“(F) $3,500,000 for each of fiscal years 2013 through 2016 shall be available to carry out section 5335. Such amount shall be made available from funds allocated in accordance with section 5336 before the apportionments under subsection 5336(i) are carried out.

“(G) $1,680,000,000 for each of fiscal years 2013 through 2016 shall be made available and allocated in accordance with section 5337 to provide financial assistance for State and local government authorities to finance capital projects to modernize eligible fixed guideway systems.

“(b) Capital investment grants.—There is authorized to be appropriated to carry out section 5309(m)(2) $1,955,000,000 for each of fiscal years 2013 through 2016.

“(c) Research, training and outreach, and technical assistance.—There is authorized to be appropriated to carry out the transit research program under section 5312 and the training and outreach, National Transit Institute, and technical assistance activities authorized by section 5322, $45,000,000 for each of fiscal years 2013 through 2016. Such amounts shall remain available until expended.

“(d) Administration.—There is authorized to be appropriated to carry out sections 5326 and 5334 $98,000,000 for each of fiscal years 2013 through 2016.

“(e) Grants as contractual obligations.—

“(1) GRANTS FINANCED FROM HIGHWAY TRUST FUND.—A grant or contract that is approved by the Secretary and financed with amounts made available from the Alternative Transportation Account of the Highway Trust Fund pursuant to this section is a contractual obligation of the Government to pay the Federal share of the cost of the project.

“(2) GRANTS FINANCED FROM GENERAL FUND.—A grant or contract that is approved by the Secretary and financed with amounts appropriated in advance from the General Fund of the Treasury pursuant to this section is a contractual obligation of the Government to pay the Federal share of the cost of the project only to the extent that amounts are appropriated for such purpose by an Act of Congress.”.

(b) Conforming amendment.—Section 5333(b)(1) is amended by striking “5338(b)” and inserting “5338(a)” each place it appears.

SEC. 2021. Obligation limits.

The total of all obligations from amounts made available from the Alternative Transportation Account of the Highway Trust Fund by, and amounts appropriated under, subsections (a) through (d) of section 5338 of title 49, United States Code, shall not exceed $10,498,000,000 in each of fiscal years 2013 through 2016, of which not more than $8,400,000,000 shall be from the Alternative Transportation Account.

SEC. 2022. Program elimination and consolidation.

(a) General provision.—A repeal or amendment made by this section shall not affect funds apportioned or allocated before the effective date of the repeal.

(b) Clean fuels discretionary grant program.—Section 5308, and the item relating to that section in the analysis for chapter 53, are repealed.

(c) Conforming amendments regarding formula grants for special needs of elderly individuals and individuals with disabilities.—

(1) Section 5327(c) is amended by striking “5310” each place it appears and inserting “5317”.

(2) Section 31138(e)(4) is amended by striking “section 5307, 5310, or 5311” and inserting “section 5307, 5311, or 5317” .

(d) Public transportation on Indian reservations.—Section 5311(c)(1) is repealed.

(e) Transit cooperative research program.—Section 5313, and the item relating to that section in the analysis for chapter 53, are repealed.

(f) National research programs.—Section 5314, and the item relating to that section in the analysis for chapter 53, are repealed.

(g) National Transit Institute.—

(1) REPEAL.—Section 5315, and the item relating to that section in the analysis for chapter 53, are repealed.

(2) CONFORMING AMENDMENT.—Section 5307(k)(1) is amended by striking “5315(c),”.

(h) Bicycle facilities.—Section 5319 is amended by striking the last sentence.

(i) Job access and reverse commute formula grants.—

(1) REPEAL.—Section 5316, and the item relating to that section in the analysis for chapter 53, are repealed.

(2) CONFORMING AMENDMENT.—Chapter 53 is amended in section 5333(b)(1) by striking “5316,” each place it appears.

(j) Paul S. Sarbanes Transit in the Parks Program.—

(1) REPEAL.—Section 5320, and the item relating to that section in the analysis for chapter 53, are repealed.

(2) CONFORMING AMENDMENT.—Section 5327(c)(2)(B) is amended by striking “5311, and 5320” and inserting “and 5311”.

(k) Repeal of debt service reserve pilot program.—Section 5323(e) is amended by striking paragraph (4).

(l) Program of interrelated projects.—Section 5328 is amended by striking subsection (c).

(m) Alternatives analysis.—Section 5339, and the item relating to that section in the analysis for chapter 53, are repealed.

(n) Apportionments based on growing States and high density states formula factors.—Section 5340, and the item relating to that section in the analysis for chapter 53, are repealed.

(o) Contracted paratransit pilot.—Section 3009 of SAFETEA–LU (119 Stat. 1572) is amended by striking subsection (i).

(p) Elderly individuals and individuals with disabilities pilot program.—Section 3012(b) of SAFETEA–LU (49 U.S.C. 5310 note; 119 Stat. 1591) is repealed.

(q) National fuel cell bus technology development program.—Section 3045 of SAFETEA–LU (49 U.S.C. 5308 note; 119 Stat. 1705), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(r) Allocations for national research and technology programs.—Section 3046 of SAFETEA–LU (49 U.S.C. 5338 note; 119 Stat. 1706), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

(s) Over-the-Road bus accessibility program.—Section 3038 of the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note; 112 Stat. 392), and the item relating to that section in the table of contents contained in section 1(b) of that Act, are repealed.

SEC. 2023. Evaluation and report.

(a) Evaluation.—The Comptroller General of the United States shall evaluate the progress and effectiveness of the Federal Transit Administration in assisting recipients of assistance under chapter 53 of title 49, United States Code, to comply with section 5332(b) of such title, including—

(1) by reviewing discrimination complaints, reports, and other relevant information collected or prepared by the Federal Transit Administration or recipients of assistance from the Federal Transit Administration pursuant to any applicable civil rights statute, regulation, or other requirement; and

(2) by reviewing the process that the Federal Transit Administration uses to resolve discrimination complaints filed by members of the public.

(b) Report.—Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report concerning the evaluation under subsection (a) that includes—

(1) a description of the ability of the Federal Transit Administration to address discrimination and foster equal opportunities in federally funded public transportation projects, programs, and activities;

(2) recommendations for improvements if the Comptroller General determines that improvements are necessary; and

(3) information upon which the evaluation under subsection (a) is based.

SEC. 2024. Transit Buy America provisions.

Section 5323(j) is amended by adding at the end the following:

“(10) APPLICATION OF BUY AMERICA TO TRANSIT PROGRAMS.—The requirements of this subsection apply to all contracts 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 one contract for the project is funded with amounts made available to carry out this chapter.

“(11) ADDITIONAL WAIVER REQUIREMENTS.—

“(A) IN GENERAL.—If the Secretary receives a request for a waiver under this section, the Secretary shall provide notice of and an opportunity for public comment on the request at least 30 days before making a finding based on the request.

“(B) NOTICE REQUIREMENTS.—A notice provided under subparagraph (A) shall include the information available to the Secretary concerning the request and shall be provided by electronic means, including on the official public Internet Web site of the Department of Transportation

“(C) DETAILED JUSTIFICATION.—If the Secretary issues a waiver under this subsection, the Secretary shall publish in the Federal Register a detailed justification for the waiver that addresses the public comments received under subparagraph (A) and shall ensure that such justification is published before the waiver takes effect.”.

SEC. 3001. Amendments to title 23, United States Code.

Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 23, United States Code.

SEC. 3002. Declaration of policy.

(a) Expedited project delivery.—Section 101(b) is amended by adding at the end the following:

“(4) EXPEDITED PROJECT DELIVERY.—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. Accordingly, it is the policy of the United States that—

“(A) the Secretary shall have the lead role among Federal agencies in carrying out the environmental review process for surface transportation projects;

“(B) each Federal agency shall cooperate with the Secretary to expedite the environmental review process for surface transportation projects;

“(C) there shall be a presumption that the mode, facility type, and corridor location for a surface transportation project will be determined in the transportation planning process, as established in sections 5203 and 5204 of title 49;

“(D) project sponsors shall not be prohibited from carrying out pre-construction project development activities concurrently with the environmental review process;

“(E) programmatic approaches shall be used, to the maximum extent possible, to reduce the need for project-by-project reviews and decisions by Federal agencies; and

“(F) the Secretary shall actively support increased opportunities for project sponsors to assume responsibilities of the Secretary in carrying out the environmental review process.”.

SEC. 3003. Exemption in emergencies.

If any road, highway, or bridge 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 declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121), and is reconstructed in the same location with the same capacity, dimensions, and design as before the emergency, then that reconstruction project shall be exempt from any further environmental reviews, approvals, licensing, and permit requirements under—

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

(2) sections 402 and 404 of the Federal Water Pollution Control Act (33 U.S.C. 1342, 1344);

(3) the National Historic Preservation Act (16 U.S.C. 470 et seq.);

(4) the Migratory Bird Treaty Act (16 U.S.C. 703 et seq.);

(5) the Wild and Scenic Rivers Act (16 U.S.C. 1271 et seq.);

(6) the Fish and Wildlife Coordination Act (16 U.S.C. 661 et seq.);

(7) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), except when the reconstruction occurs in designated critical habitat for threatened and endangered species;

(8) Executive Order 11990 (42 U.S.C. 4321 note; relating to the protection of wetlands); and

(9) any Federal law (including regulations) requiring no net loss of wetlands.

SEC. 3004. Advance acquisition of real property interests.

(a) Real property interests.—Section 108 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

(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) 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 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 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 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 is further amended by adding at the end the following:

“(d) Federally funded early acquisition of real property interests.—

“(1) IN GENERAL.—The Secretary may authorize the use of Federal funds for the acquisition of a real property interest by a State. For purposes of this subsection, an acquisition of a real property interest includes the acquisition of any interest in land, including the acquisition of a contractual right to acquire any interest in land, or any other similar action to acquire or preserve rights-of-way for a transportation facility.

“(2) STATE CERTIFICATION.—A State requesting Federal funding for an acquisition of a real property interest shall certify in writing that—

“(A) the State has authority to acquire the real property interest under State law;

“(B) the acquisition of the real property interest is for a transportation purpose; and

“(C) the State acknowledges that early acquisition will not be considered by the Secretary in the environmental assessment of a project, the decision relative to the need to construct a project, or the selection of a project design or location.

“(3) ENVIRONMENTAL COMPLIANCE.—Before authorizing Federal funding for an acquisition of a real property interest, the Secretary shall complete for the acquisition the review process under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). For purposes of the review process, the acquisition of a real property interest shall be treated as having independent utility and does not limit consideration of alternatives for future transportation improvements with respect to the real property interest.

“(4) PROGRAMMING.—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 5203 and 5204 of title 49. The acquisition project may be included in the transportation improvement program on its own, without including the future construction project for which the real property interest is being acquired. The acquisition project may consist of the acquisition of a specific parcel, a portion of a transportation corridor, or an entire transportation corridor.

“(5) OTHER REQUIREMENTS.—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.

“(e) Consideration of long-Range transportation needs.—The Secretary shall encourage States and other public authorities, if practicable, to acquire transportation real property interests that are sufficient to accommodate long-range transportation needs and, if possible, to do so through the acquisition of broad real property interests that have the capacity for expansion over a 50- to 100-year period and the potential to accommodate one or more transportation modes.”.

SEC. 3005. Standards.

Section 109 (as amended by title I of this Act) is further amended by adding at the end the following:

“(s) Undertaking design activities before completion of environmental review process.—

“(1) IN GENERAL.—A State may carry out, at the expense of the State, 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 of the project.

“(2) ELIGIBILITY FOR REIMBURSEMENT.—Subject to paragraph (3), funds apportioned to a State under this title may be used to participate in the payment of costs incurred by the State for design activities, if the results of the activities are subsequently incorporated (in whole or in substantial part) into a project eligible for surface transportation program funds.

“(3) TERMS AND CONDITIONS.—The Federal share payable of the costs described in paragraph (2) shall be eligible for reimbursement out of funds apportioned to a State under this title when the design activities are incorporated (in whole or in substantial part) into a project eligible for surface transportation program funds, if the State demonstrates to the Secretary and the Secretary finds that—

“(A) before the time that the cost incurred by a State is approved for Federal participation, environmental compliance pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has been completed for the project for which the design activities were conducted by the State; and

“(B) the design activities conducted pursuant to this subsection did not preclude the consideration of alternatives to the project.”.

SEC. 3006. Letting of contracts.

(a) Bidding requirements.—Section 112(b)(1) is amended to read as follows:

“(1) IN GENERAL.—

“(A) COMPETITIVE BIDDING REQUIREMENT.—Subject to paragraphs (2), (3), and (4), construction of each project, subject to the provisions of subsection (a), shall be performed by contract awarded by competitive bidding, unless the State transportation department demonstrates, to the satisfaction of the Secretary, that some other method is more cost effective or that an emergency exists.

“(B) BASIS OF AWARD.—

“(i) IN GENERAL.—Contracts for the construction of each project shall be awarded only on the basis of the lowest responsive bid submitted by a bidder meeting established criteria of responsibility.

“(ii) PROHIBITION.—No requirement or obligation shall be imposed as a condition precedent to the award of a contract to such bidder for a project, or to the Secretary’s concurrence in the award of a contract to such bidder, unless such requirement or obligation is otherwise lawful and is specifically set forth in the advertised specifications.”.

(b) Design-build contracting.—Section 112(b)(3) is amended—

(1) in subparagraph (A) by striking “subparagraph (C)” and inserting “subparagraph (B)”;

(2) by striking subparagraph (B);

(3) by redesignating subparagraphs (C) through (E) as subparagraphs (B) through