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                                                       Calendar No. 284
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-150

======================================================================

 
  AMENDING THE TRANSPORTATION EQUITY ACT FOR THE 21ST CENTURY TO MAKE 
   CERTAIN AMENDMENTS WITH RESPECT TO INDIAN TRIBES, TO PROVIDE FOR 
     TRAINING AND TECHNICAL ASSISTANCE TO NATIVE AMERICANS WHO ARE 
    INTERESTED IN COMMERCIAL VEHICLE DRIVING AND FOR OTHER PURPOSES

                                _______
                                

               September 22, 2003.--Ordered to be printed

                                _______
                                

   Mr. Campbell, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 281]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 281) to amend the Transportation Equity Act for the 
21st Century to make certain amendments with respect to Indian 
tribes to provide for training and technical assistance to 
Native Americans who are interested in commercial vehicle 
driving and for other purposes, having considered the same, 
reports favorably thereon with an amendment in the nature of a 
substitute and recommends that the bill (as amended) do pass.

                                Purpose

    The purpose of S. 281 is to amend the Transportation Equity 
Act for the 21st Century, 23 U.S.C. 104, Pub. L. 105-178, to 
make certain amendments with respect to Indian tribes and for 
other purposes.

                               Background

    Nearly 3 percent of the land in the United States is held 
in trust by the Federal government for American Indians.\1\ 
With over 54 million acres of land in control of the 562 
Federally-recognized tribal governments in the United States, 
there are many Federal, tribal, state and local roads that 
cross Indian lands. The primary transportation system that 
provides access to and within Indian reservations, Indian 
communities, and Alaska Native villages is the Indian 
Reservation Road System which covers 55,724 miles.\2\
---------------------------------------------------------------------------
    \1\ Bureau of Indian Affairs, TEA-21 Reauthorization Resource 
Paper, Transportation Serving Native American Lands, May 2003, page 5.
    \2\ Id. at 9.
---------------------------------------------------------------------------
    An Indian reservation road is defined to include a public 
road that is located within or provides access to an Indian 
reservation or Indian trust land.\3\ The Indian Reservation 
Road (IRR) program is implemented pursuant to the Federal Lands 
Highway Program (FLHP), 23 U.S.C. 204, and is jointly 
administered by the Bureau of Indian Affairs, (BIA) Division of 
Transportation and the Federal Lands Highway Program of the 
Federal Highway Administration (FHwA).
---------------------------------------------------------------------------
    \3\ Id.
---------------------------------------------------------------------------
    The purpose of the IRR program is to provide safe and 
adequate transportation and public road access to and within 
Indian reservations and other Indian lands. Roads and other 
physical infrastructure are key in assisting tribes in their 
efforts to attract and retain investment and promote economic 
development and self sufficiency.
    Under present law, there are two categories of Indian 
reservation roads. The first category (BIA System) consists of 
nearly 24,000 miles of public roads that are owned and 
maintained by the Bureau of Indian Affairs. The second category 
(Non-BIA) consists of approximately 32,000 miles of roads that 
are maintained by a tribal, state, county or other local 
government and which provide the primary access to Indian 
reservations or traverse reservations or Indian lands.\4\ Table 
1 illustrates the various types and ownerships of reservation 
roads.
---------------------------------------------------------------------------
    \4\ Id. at 10.

                            TABLE 1.--TYPE AND OWNERSHIP OF INDIAN RESERVATION ROADS
----------------------------------------------------------------------------------------------------------------
                                                                 Earth        Gravel       Paved
             Public road ownership                Unimproved    surface      surface      surface       Total
                                                 earth roads     roads        roads        roads
----------------------------------------------------------------------------------------------------------------
BIA............................................        7,882        7,398        2,779        6,054       24,112
Tribes.........................................          575          117          106          177          974
State..........................................           58           65          256        8,425        8,804
Urban..........................................           67           23           36           94          219
County.........................................        1,629        3,990        8,227        7,386       21,232
Other--BIA.....................................           63           47            0           23          133
Other Fed......................................           70           34           28           89          221
Non-Govt.......................................          134           51           16           47          248
                                                ----------------------------------------------------------------
      Total....................................       10,477       11,724       11,447       22,296       55,943
----------------------------------------------------------------------------------------------------------------

           A. HISTORY OF THE INDIAN RESERVATION ROAD PROGRAM

    The IRR program was established in 1928 to improve roads on 
Indian reservation lands that were not then eligible for 
Federal highway funding.
    In 1930, the Secretary of Agriculture was authorized to 
cooperate with the individual state highway agencies and the 
Department of the Interior in the planning and building of 
Indian reservation roads. As a result, the BIA entered into an 
agreement with the Federal Highway Administration to plan and 
construct roads on Indian lands.
    In 1951, Congress began appropriating funds for the 
maintenance of the BIA-owned roads in the annual Department of 
Interior appropriations bill.
    The Surface Transportation Assistance Act of 1982 Pub. L. 
97-424, placed the IRR program under the jurisdiction of the 
Federal Lands Highway Program (FLHP) and allocated funds from 
the Highway Trust Fund. Since that time, the IRR program has 
been under the joint jurisdiction of the Department of 
Transportation and the BIA.
    In 1991, Congress enacted the Intermodal Surface 
Transportation Efficiency Act (ISTEA), Pub. L. 102-240, and re-
authorized the IRR program from 1991 through 1997. The ISTEA 
established a set-aside of Highway Bridge Replacement and 
Rehabilitation Program funds for IRR bridges.
    In 1998, the Transportation Equity Act of the 21st Century 
(TEA-21), Pub. L. 105-178, re-authorized the IRR program, and 
authorized IRR funding levels at $1.6 billion from fiscal years 
1998 through 2003. TEA-21 also clarified that funds 
appropriated to the IRR program are available to tribal 
governments pursuant to the contracting and compacting 
provisions of the Indian Self-Determination and Education Act 
of 1975, Pub. L. 93-638, 25 U.S.C. 450 et seq.

           B. THE NEED FOR IMPROVED INDIAN RESERVATION ROADS

    As of 2003 over 66 percent of the IRR system contained 
unimproved earth and gravel roads.\5\ In the 1990 Assessment of 
Conditions and Funding Options for Indian Reservation Roads 
Report, 11 percent of the 4,500 miles of BIA owned paved roads 
were in ``good condition'' and about 2 percent of the 2,400 
miles of gravel road were in ``good condition''.\6\
---------------------------------------------------------------------------
    \5\ Testimony of Mr. Arthur E. Hamilton, Associate Administrator 
for Federal Lands Highways Program, Federal Highway Administration, 
United States Department of Transportation before the United States 
Senate Committee on Indian Affairs hearing on proposals to amend the 
Indian Reservation Roads Program, June 4, 2003.
    \6\ Bureau of Indian Affairs TEA-21 Reauthorization Resource Paper, 
Transportation Serving Native American Lands, May 2003, Page 17.
---------------------------------------------------------------------------
    Currently, the IRR system is the most undeveloped road 
network in the United States.\7\ As table 2 indicates, only 
11.6 percent of the roads in the IRR system are classified as 
in good condition.\8\
---------------------------------------------------------------------------
    \7\ Hamilton Testimony at 1.
    \8\ Bureau of Indian Affairs TEA-21 Reauthorization Resource Paper, 
Transportation Serving Native American Lands, May 2003.

          TABLE 2.--CONDITION OF THE IRR TRANSPORTATION SYSTEM
                             [In percentage]
------------------------------------------------------------------------
                                       Good         Fair         Poor
------------------------------------------------------------------------
Paved............................           12           49           40
Gravel...........................            6           26           68
Earth............................           26            4           70
                                  --------------------------------------
      Total......................         11.6         16.5         71.8
------------------------------------------------------------------------

    The poor quality of the vast majority of Indian reservation 
roads, including design, road surface, and safety barriers, 
keeps tribal members from jobs, education opportunities, and 
health care, and forces many members to leave their reservation 
communities in order to pursue jobs.
    Many roads in the IRR system also have safety deficiencies. 
The annual fatality rate on Indian reservation roads is more 
than four times the national average.\9\ Most roads are 
typically one lane, unimproved earth roads with little or no 
signage, inadequate safety barriers, no drainage, and no 
shoulders.
---------------------------------------------------------------------------
    \9\ Testimony of Arthur Hamilton, June 4, 2003.
---------------------------------------------------------------------------
    There is an enormous and largely unmet need for 
transportation infrastructure on Indian reservation lands. 
Available information indicates that there is currently an 
estimated $11.8 billion backlog of improvement needs for BIA 
and selected state and local IRR roads.\10\ Poor transportation 
facilities have a devastating impact on Indian tribal services 
including emergency services, law enforcement, health care, and 
economic development.
---------------------------------------------------------------------------
    \10\ BIA report, May 2003, page 17.
---------------------------------------------------------------------------
    In the history of the IRR program, reservation roads have 
not received the level of funding needed to improve their 
quality equivalent to non-Indian roads. Although reservation 
roads comprise nearly 3% of the Federal Aid Highway Program, 
less than 1% of Federal aid has been allocated to Indian roads. 
If the IRR program were to receive the nearly 2.63% of TEA-21 
funding that represents the percentage of Indian reservation 
roads in the Federal highway system, the IRR program would have 
been fully funded at $4.7 billion from fiscal years 1998-2003. 
The current IRR funding level is authorized at $1.6 billion for 
fiscal years 1998-2003.
    In addition to Indian reservation roads, bridges on Indian 
reservation lands need improvement. There are 777 BIA-owned 
bridges and 3,617 bridges owned by other entities but which are 
located on Indian reservation lands.\11\ The average age of a 
bridge in the IRR system exceeds 40 years. Out of a total of 
4,394 bridges on the IRR system, 1,069 12 bridges are either 
functionally or structurally deficient.\12\ Table 3 illustrates 
the differences between the number of deficient bridges on 
Indian lands versus the number of deficient bridges that are 
under the jurisdiction of the various state governments.
---------------------------------------------------------------------------
    \11\ Id at 12.
    \12\ Id.
---------------------------------------------------------------------------
    One of the greatest needs in the Indian Reservation Road 
program is funding for road maintenance. In 1951 Congress began 
appropriating funds for maintenance of BIA owned roads in 
annual Department of Interior Appropriations Acts. Currently 
the BIA receives $26 million annually for IRR maintenance. 
However the BIA estimates that 6 times the amount of funding 
currently available, or $120 million, is needed to adequately 
maintain BIA roads per year.\13\
---------------------------------------------------------------------------
    \13\ Id at 22.
---------------------------------------------------------------------------
    The road maintenance budget for the IRR program has in fact 
decreased in recent years. In 1990 the BIA road maintenance 
funding level was $30.5 million per year. In fiscal year 2004 
the funding level is $26 million.\14\
---------------------------------------------------------------------------
    \14\ Id.

                 TABLE 3.--NUMBER OF FEDERALLY RECOGNIZED INDIAN TRIBES AND IRR BRIDGES BY STATE
----------------------------------------------------------------------------------------------------------------
                                                                                                      Deficient
                                                   Acres of    Number of    Number of    Deficient      state,
               State                 Number of      Indian      BIA and       state,    BIA bridges     county
                                       tribes    trust lands     tribal       county      in state    bridges in
                                                                bridges      bridges                    state
----------------------------------------------------------------------------------------------------------------
AL................................            1        2,934            1           43            1            8
AK................................          223    1,140,410            5           95            3           25
AZ................................           21   20,627,740          216          529           64           21
CA................................           99      591,883           13           55            4           13
CO................................            2      800,294            9           67            0           16
CT................................            2        5,028            0            0            0            0
FL................................            2      165,267            7           79            6            0
ID................................            5      721,111           21          149            3           22
IA................................            3        7,271            3           29            1            7
KS................................            4       34,176           38           41            3           10
LA................................            4        2,528            1           11            1            3
ME................................            5      265,234            1            3            1            2
MA................................            1          467            0            1            0            0
MI................................            8       25,167            9          130            8           21
MN................................            6    1,025,932           10            0            1            0
MS................................            1       22,772           20            0            0            0
MT................................            7    5,384,824           79          422           18           64
NE................................            6       66,462           12          266            1          107
NV................................           18    1,228,021            6           53            2            4
NM................................           23    8,169,407          116          236           35           43
NY................................            7       53,188            0           48            0           12
NC................................            1       51,166           36           13            8            4
ND................................            7      864,967            3           70            0            7
OK................................           36    1,061,495            0          652            0          342
OR................................           10      796,572           21           39            8            6
RI................................            1        2,335            0            1            0            0
SC................................            1          720            0            0            0            0
SD................................            9    4,999,410           62          180           14           38
TX................................            3        5,250            0            1            0            0
UT................................            7    2,331,007            9            9            2            1
WA................................           26    2,602,094           37          266            5           66
WI................................           11      435,485           26           26           10            3
WY................................            2    1,888,236           16          104            1           25
                                   -----------------------------------------------------------------------------
Total.............................          564   55,378,853          777        3,617          199          870
----------------------------------------------------------------------------------------------------------------

           C. ALTERNATIVE RESERVATION TRANSPORTATION SYSTEMS

    As of 2003, 6% of all Federally-recognized tribes in the 
United States operate public transit systems on behalf of their 
members.\15\ Though 32 tribes currently operate public transit 
programs, nationwide the transit needs of tribal members are 
not being met. Tribes receive less than $3 million per year for 
transit from Federal transit programs.\16\
---------------------------------------------------------------------------
    \15\ Id at 18.
    \16\ Id.
---------------------------------------------------------------------------
    Currently Congress does not provide dedicated Federal 
funding for tribal transit needs. Instead tribes apply to the 
states in order to obtain Federal transit funds. Therefore the 
Committee has included a provision in the bill to establish the 
Indian Reservation Rural Transit Program. This program creates 
a dedicated funding source for transit funding to be 
exclusively used by tribes.
    In proposing amendments to the Transportation Equity Act 
for the 21st Century, 112 Stat. 112, 23 U.S.C. 104, Pub. L. 
105-178 (``The Act''), the Committee is aware of the decision 
of the U.S. Circuit of Appeals for the Ninth Circuit in the 
case entitled McDonald v. Means, 309 F.3d 530 (9th Cir. 2002), 
in which the court held that a tribal court had jurisdiction to 
adjudicate a personal injury claim asserted by a tribal member 
for injuries received when a car in which the tribal member-
plaintiff was driving on a Bureau of Indian Affairs road within 
the tribe's reservation struck a horse owned by a non-member-
defendant who operated a horse ranching operation on fee land 
located within the reservation. As with the Bureau of Indian 
Affairs road at issue in McDonald, Federal support of road 
construction pursuant to the Act is not intended to diminish 
tribal jurisdiction.

                          Legislative History

    The Indian Tribal Surface Transportation Act of 2003 (S. 
281) was introduced on February 4, 2003 by Senator Campbell, 
for himself and for Senator Inouye. Senator Domenici was later 
added as a co-sponsor. A Legislative Hearing was held on the 
bill on June 4, 2003. On June 26, 2003, the Committee convened 
a business meeting to consider S. 281 and other measures that 
had been referred to it, and on that date, the Committee 
favorably reported a substitute amendment to S. 281.

            Committee Recommendation and Tabulation of Vote

    On June 26, 2003, the Committee on Indian Affairs, in an 
open business session, adopted an amendment in the nature of a 
substitute to S. 281 by voice vote and ordered the bill, as 
amended, reported favorably to the Senate.

        Section-by-Section Analysis of the Substitute Amendment

    As introduced, S. 281 makes amendments to the 
Transportation Equity Act for the 21st Century 23 U.S.C. 104, 
Pub. L. 105-178 to make certain amendments with respect to 
Indian tribes and for other purposes. A section-by-section 
description of the changes contained in the substitute 
amendment follows.

Section 1. Short title; table of contents

    This Act may be cited as the Indian Tribal Surface 
Transportation Improvement Act of 2003.

Sec. 2. Definitions

    Terms defined in this section include ``commercial vehicle 
driving'', ``Indian lands'', ``Indian reservation'', ``Indian 
tribe'', ``Secretary'', and ``Tribal transportation facility''.

Sec. 3. Funding for Indian reservation roads program

    Current funding for the Indian Reservation Roads program is 
$275 million in FY2003. Section 3 authorizes an appropriation 
of $330 million in FY2004 which graduates to $550 million by 
FY2009, a 63% increase.

Sec. 4. Obligation ceiling

    This section removes the obligation limitation from the 
Indian Reservation Roads program so that all funds authorized 
under TEA-21 would be available for appropriation.

Sec. 5. Tribal contracting demonstration project

    Section 5 establishes a Demonstration Project for 15 tribes 
to contract or compact directly with the Federal Highway 
Administration for Indian Reservation Road projects pursuant to 
25 U.S.C. 450 et seq. Tribes must demonstrate financial and 
management capacity in the previous three years to qualify for 
the Demonstration Project. The Secretary is responsible for 
submitting a report to Congress describing the implementation 
of the Demonstration Project and any recommendations for 
improving the Project.
    The Committee included a requirement that any tribe 
participating in the demonstration project first complete a 
planning phase to help assure sufficient tribal capacity; 
however the Committee notes that a tribe shall be deemed to 
have previously completed the planning phase if it has 
previously participated in the administration of programs under 
the self-governance authorities of Public Law 93-638 (Titles 
III, IV and V).

Sec. 6. Indian reservation bridges

    This section authorizes appropriations for the Indian 
Reservation Road Bridge Program and includes authorization for 
funds to be used in planning, design, engineering, pre-
construction, construction, and inspection of bridges.

Sec. 7. Indian reservation road planning

    This section authorizes an increase from 2% to 5% of each 
tribe's funding allocation for transportation planning 
services.

Sec. 8. Tribal-State road maintenance agreements

    This section authorizes states and tribes to enter into 
road maintenance agreements to permit tribes to assume state 
responsibilities for Indian reservation roads and roads that 
provide access to Indian reservation roads.

Sec. 9. Alaska Native village transportation program

    Section 9 creates an ``Alaska Native Regional 
Transportation Program'' responsible for establishing a 
comprehensive tribal transportation plan for the region and 
ensure that transportation projects are built.

Sec. 10. Indian reservation road safety program

    Section 10 authorizes a new section 412 of Title 23 to be 
known as the ``Tribal Transportation Safety Program'' comprised 
of a competitive grant program for tribes to establish or 
expand transportation safety programs on reservation lands.

Sec. 11. Indian reservation rural transit program

    This section authorizes annual appropriations of $15 
million for a transit grant program. Eligibility would be based 
on tribal need as determined by the Secretary.

Sec. 12. Commercial vehicle driving training program

    Section 12 authorizes the Secretary of Labor to award 
competitive grants to eligible tribal colleges and universities 
to provide training and certification of commercial vehicle 
driving and other vehicles that require a commercial drivers 
license.

                    Cost and Budgetary Consideration

    The cost estimate for S. 281 as calculated by the 
Congressional Budget Office, is set forth below:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 17, 2003.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 281, the Indian 
Tribal Surface Transportation Improvement Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachael 
Milberg.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 281--Indian Tribal Surface Transportation Improvement Act of 2003

    Summary: The Department of Transportation (DOT) provides 
grants to tribal governments for improving roads and bridges 
that serve Indian lands. S. 281 would extend the authority to 
conduct those programs for the next six years. The bill also 
would establish three new grant programs for creating transit 
programs on Indian lands, improving the safety of roads on 
Indian lands, and preparing Native Americans to drive 
commercial vehicles.
    For the road and bridge programs, S. 281 would provide $2.7 
billion in contract authority, the authority to incur 
obligations in advance of appropriations, over the 2004-2009 
period. That funding would represent an increase of $1.05 
billion above the contract authority assumed for those programs 
over that period in CBO's baseline. S. 281 would provide 
another $138 million in contract authority over the 2004-2009 
period for the new transit and safety programs. CBO expects, 
however, that spending for all four programs would be 
controlled by limits on annual obligations set in appropriation 
acts. S. 281 would authorize the appropriation of $30 million 
in regular budget authority over the 2004-2009 period for the 
training program.
    Assuming appropriation action consistent with the 
obligation and authorization levels specified in S. 281, CBO 
estimates that implementing the bill would result in 
discretionary outlays of $791 million over the 2004-2008 period 
and $427 million after 2008. Enacting S. 281 would not affect 
outlays from direct spending or revenues.
    S. 281 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments. Any costs to tribal organizations to participate 
in the demonstration project and grant programs would be 
incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 281 is shown in the following table. The 
costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year, in millions of dollars--
                                                  --------------------------------------------------------------
                                                     2003     2004     2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

DOT Spending Under Current Law for Indian Roads
 and Bridges:
    Budget Authority.............................        0        0        0        0        0        0        0
    Estimated Outlays \1\........................      241      268      275      275      275      275      275
Proposed Changes:
    Authorization Level..........................        0        5        5        5        5        5        5
    Estimated Outlays............................        0       50      106      154      214      267      319
Spending Under S. 281 for Indian Roads and
 Bridges and New Programs:
    Authorization Level..........................        0        5        5        5        5        5        5
    Estimated Outlays \1\........................      241      318      381      429      489      542      594

                                                 DIRECT SPENDING

Baseline Spending for Indian Roads and Bridges:
    Budget Authority \2\.........................      275      275      275      275      275      275      275
    Estimated Outlays............................        0        0        0        0        0        0        0
Proposed Changes:
    Budget Authority.............................        0       91       91      189      189      314      314
    Estimated Outlays............................        0        0        0        0        0        0        0
Spending Under S. 281 for Indian Roads and
 Bridges and New Programs:
    Budget Authority \2\.........................      275      366      366      464      464      589      589
    Estimated Outlays............................        0        0        0        0        0        0        0
----------------------------------------------------------------------------------------------------------------
\1\ Estimated outlays under current law are from the obligation limitations for the Department of
  Transportation's Indian road and bridge programs, as assumed to continue in CBO's baseline.
\2\ Budget authority for the Indian road and bridge programs is provided as contract authority, a mandatory form
  of budget authority; however, outlays from those programs are subject to obligation limitations contained in
  appropriation acts and are therefore discretionary. S. 281 would provide contract authority for two new
  programs for improving the safety of roads and creating transit programs on Indian lands. CBO expects this
  contract authority also would be subject to obligation limitations in appropriation acts.

    Basis of estimate: For this estimate, CBO assumes that S. 
281 will be enacted in fiscal year 2003. Estimates of outlays 
are based on historical spending patterns of the Indian road 
and bridge programs as well as information from the Federal 
Highway Administration.

Indian road and bridge programs

    S. 281 would provide $2.7 billion in contract authority 
over the 2004-2009 period for DOT's Indian road and bridge 
programs. Consistent with section 257 of the Balanced Budget 
and Emergency Deficit Control Act, which specifies that certain 
expiring programs should be assumed to continue for budget 
projection purposes, CBO's baseline projections assume that 
contract authority for those programs will total $1.65 billion 
over the 2004-2009 period. Thus, S. 281 would provide $1.05 
billion in contract authority above the baseline levels over 
the 2004-2009 period.
    Under current law, DOT administers the Indian road and 
bridge programs as part of the Federal-Aid Highways program, 
and spending on the two programs is controlled by annual 
limitations on Federal-Aid obligations set in appropriation 
acts. Those limitations are often less than the total amount of 
contract authority for the programs. For this reason, the 
Federal Government has obligated an average of 88 percent of 
the contract authority for the road and bridge programs each 
year over the 1998-2002 period. S. 281 would change how the 
Federal-Aid obligation limitation is applied so as to provide 
those programs with obligation authority equal to 100 percent 
of the contract authority provided each year.
    CBO estimates that spending from the increase in contract 
authority for Indian road and bridge programs would total $665 
million over the 2004-2008 period and $385 million after 2008.

Transit and safety programs

    Over the 2004-2009 period, S. 281 would provide $48 million 
in contract authority for the new transit program and another 
$90 million in contract authority for the new safety program.
    CBO expects the contract authority for the transit and 
safety programs would be subject to obligation limitations in 
appropriation acts. S. 281 would authorize the new transit 
program by amending section 5311 of the United States Code. 
Recent appropriation acts include obligation limitations that 
control spending under this section of the code, and CBO 
expects that such limitations would continue to apply to the 
entire section, including the new transit program. Recent 
appropriation acts also include obligation limitations for 
every highway safety program that receives contract authority, 
and CBO expects this policy would continue for the new safety 
program that S. 281 would authorize.
    Assuming appropriation acts provide obligation authority 
equal to the levels of contract authority that S. 281 would 
provide for the new transit and safety programs, CBO estimates 
that implementing these programs would cost $104 million over 
the 2004-2008 period and another $34 million after 2008.

Training program

    For the training program, S. 281 would authorize the 
appropriation of $5 million for each year over the 2004-2009 
period. Assuming appropriation of the authorized amounts, CBO 
estimates that implementing the new training program would cost 
$22 million over the 2004-2008 period and another $8 million 
after 2008.
    Intergovernmental and private-sector impact: S. 281 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Any costs to tribal organizations to 
participate in the demonstration project and grant programs 
would be incurred voluntarily.
    Estimate prepared by: Federal Costs: Rachel Milberg; Impact 
on State, Local, and Tribal Governments: Greg Waring; and 
Impact on the Private Sector: Cecil McPherson.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires that each report accompanying a bill evaluate 
the regulatory paperwork impact that would be incurred in 
implementing the legislation. The Committee has concluded that 
enactment of S. 281 will create only de minimis regulatory or 
paperwork burdens.

                        Executive Communications

    The Committee has received no official communication from 
the Administration on the provisions of the bill.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
enactment of S. 281 will result in the following changes in 23 
U.S.C. Sec. 101 et seq., (with existing law proposed to be 
omitted enclosed in black brackets and the new language to be 
added in italic):

                            23 U.S.C. 101(a)

    (a) Definitions.--In this title, the following definitions 
apply:
          (1) Apportionment.--The term ``apportionment'' 
        includes unexpended apportionments made under prior 
        authorization laws.
          (2) Carpool project.--The term ``carpool project'' 
        means any project to encourage the use of carpools and 
        vanpools, including provision of carpooling 
        opportunities to the elderly and individuals with 
        disabilities, systems for locating potential riders and 
        informing them of carpool opportunities, acquiring 
        vehicles for carpool use, designating existing highway 
        lanes as preferential carpool highway lanes, providing 
        related traffic control devices, and designating 
        existing facilities for use for preferential parking 
        for carpools.
          (3) Construction.--The term ``construction'' means 
        the supervising, inspecting, actual building, and 
        incurrence of all costs incidental to the construction 
        or reconstruction of a highway, including bond costs 
        and other costs relating to the issuance in accordance 
        with section 122 of bonds or other debt financing 
        instruments and costs incurred by the State in 
        performing Federal-aid project related audits that 
        directly benefit the Federal-aid highway program. Such 
        term includes--
                  (A) locating, surveying, and mapping 
                (including the establishment of temporary and 
                permanent geodetic markers in accordance with 
                specifications of the National Oceanic and 
                Atmospheric Administration of the Department of 
                Commerce);
                  (B) resurfacing, restoration, and 
                rehabilitation;
                  (C) acquisition of rights-of-way;
                  (D) relocation assistance, acquisition of 
                replacement housing sites, and acquisition and 
                rehabilitation, relocation, and construction of 
                replacement housing;
                  (E) elimination of hazards of railway grade 
                crossings;
                  (F) elimination of roadside obstacles;
                  (G) improvements that directly facilitate and 
                control traffic flow, such as grade separation 
                of intersections, widening of lanes, 
                channelization of traffic, traffic control 
                systems, and passenger loading and unloading 
                areas; and
                  (H) capital improvements that directly 
                facilitate an effective vehicle weight 
                enforcement program, such as scales (fixed and 
                portable), scale pits, scale installation, and 
                scale houses.
          (4) County.--The term ``county'' includes 
        corresponding units of government under any other name 
        in States that do not have county organizations and, in 
        those States in which the county government does not 
        have jurisdiction over highways, any local government 
        unit vested with jurisdiction over local highways.
          (5) Federal-aid highway.--The term ``Federal-aid 
        highway'' means a highway eligible for assistance under 
        this chapter other than a highway classified as a local 
        road or rural minor collector.
          (6) Federal-aid system.--The term ``Federal-aid 
        system'' means any of the Federal-aid highway systems 
        described in section 103.
          (7) Federal lands highway.--The term ``Federal lands 
        highway'' means a forest highway, public lands highway, 
        park road, parkway, refuge road, and Indian reservation 
        road that is a public road.
          (8) Forest development roads and trails.--The term 
        ``forest development roads and trails'' means forest 
        roads and trails under the jurisdiction of the Forest 
        Service.
          (9) Forest highway.--The term ``forest highway'' 
        means a forest road under the jurisdiction of, and 
        maintained by, a public authority and open to public 
        travel.
          (10) Forest road or trail.--The term ``forest road or 
        trail'' means a road or trail wholly or partly within, 
        or adjacent to, and serving the National Forest System 
        that is necessary for the protection, administration, 
        and utilization of the National Forest System and the 
        use and development of its resources.
          (11) Highway.--The term ``highway'' includes--
                  (A) a road, street, and parkway;
                  (B) a right-of-way, bridge, railroad-highway 
                crossing, tunnel, drainage structure, sign, 
                guardrail, and protective structure, in 
                connection with a highway; and
                  (C) a portion of any interstate or 
                international bridge or tunnel and the 
                approaches thereto, the cost of which is 
                assumed by a State transportation department, 
                including such facilities as may be required by 
                the United States Customs and Immigration 
                Services in connection with the operation of an 
                international bridge or tunnel.
          (12) Indian reservation land.--The term ``Indian 
        land'' means--
                  (A) any land located within the boundaries of 
                an Indian reservation, pueblo, or rancheria;
                  (B) any land not located within the 
                boundaries of an Indian reservation, pueblo, or 
                rancheria, the title to which is held--
                          (i) in trust by the United States for 
                        the benefit of an Indian tribe;
                          (ii) by an Indian tribe, subject to 
                        restriction by the United States 
                        against alienation; or
                          (iii) by a dependent Indian 
                        community; and
                  (C) land conveyed as part of an original 
                conveyance to a Native Corporation in 
                accordance with the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1601 et seq.).
          (13) Indian reservation.--The term ``Indian 
        reservation'' includes--
                  (A) an Indian reservation in existence as of 
                the date of enactment of the Indian Tribal 
                Surface Transportation Improvement Act of 2003;
                  (B) a public domain Indian allotment;
                  (C) a former reservation in the State of 
                Oklahoma;
                  (D) a parcel of land conveyed as part of an 
                original conveyance to a native Corporation in 
                accordance with the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1601 et seq.); and
                  (E) a dependent Indian community located 
                within the borders of the United States 
                regardless of whether the community is 
                located--
                          (i) on original or acquired territory 
                        of the community or
                          (ii) within or outside the boundaries 
                        of any particular State.
          [12] (14) Indian reservation road.--The term ``Indian 
        reservation road'' means a public road that is located 
        within or provides access to an Indian reservation or 
        Indian trust land or restricted Indian land that is not 
        subject to fee title alienation without the approval of 
        the Federal Government, or Indian and Alaska Native 
        villages, groups, or communities in which Indians and 
        Alaskan Natives reside, whom the Secretary of the 
        Interior has determined are eligible for services 
        generally available to Indians under Federal laws 
        specifically applicable to Indians.
          (15) Indian tribe.--The Term ``Indian Tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b).
          [13] (16) Interstate system.--The term ``Interstate 
        System'' means the Dwight D. Eisenhower National System 
        of Interstate and Defense Highways described in section 
        103(c).
          [14] (17) Maintenance.--The term ``maintenance'' 
        means the preservation of the entire highway, including 
        surface, shoulders, roadsides, structures, and such 
        traffic-control devices as are necessary for safe and 
        efficient utilization of the highway.
          [15] (18) Maintenance area.--The term ``maintenance 
        area'' means an area that was designated as a 
        nonattainment area, but was later redesignated by the 
        Administrator of the EnvironmentalProtection Agency as 
an attainment area, under section 107(d) of the Clean Air Act (42 
U.S.C. 7407(d)).
          [16] (19) National highway system.--The term 
        ``National Highway System'' means the Federal-aid 
        highway system described in section 103(b).
          [17] (20) Operating costs for traffic monitoring, 
        management, and control.--The term ``operating costs 
        for traffic monitoring, management, and control'' 
        includes labor costs, administrative costs, costs of 
        utilities and rent, and other costs associated with the 
        continuous operation of traffic control, such as 
        integrated traffic control systems, incident management 
        programs, and traffic control centers.
          [18] (21) Operational improvement.--The term 
        ``operational improvement''--
                  (A) means
                          (i) a capital improvement for 
                        installation of traffic surveillance 
                        and control equipment, computerized 
                        signal systems, motorist information 
                        systems, integrated traffic control 
                        systems, incident management programs, 
                        and transportation demand management 
                        facilities, strategies, and programs, 
                        and
                          (ii) such other capital improvements 
                        to public roads as the Secretary may 
                        designate, by regulation; and
                  (B) does not include resurfacing, restoring, 
                or rehabilitating improvements, construction of 
                additional lanes, interchanges, and grade 
                separations, and construction of a new facility 
                on a new location.
          [19] (22) Park road.--The term ``park road'' means a 
        public road, including a bridge built primarily for 
        pedestrian use, but with capacity for use by emergency 
        vehicles, that is located within, or provides access 
        to, an area in the National Park System with title and 
        maintenance responsibilities vested in the United 
        States.
          [20] (23) Parkway.--The term ``parkway'' as used in 
        chapter 2 of this title, means a parkway authorized by 
        Act of Congress on lands to which title is vested in 
        the United States.
          [21] (24) Project.--The term ``project'' means an 
        undertaking to construct a particular portion of a 
        highway, or if the context so implies, the particular 
        portion of a highway so constructed or any other 
        undertaking eligible for assistance under this title.
          [22] (25) Project agreement.--The term ``project 
        agreement'' means the formal instrument to be executed 
        by the State transportation department and the 
        Secretary as required by section 106.
          [23] (26) Public authority.--The term ``public 
        authority'' means a Federal, State, county, town, or 
        township, Indian tribe, municipal or other local 
        government or instrumentality with authority to 
        finance, build, operate, or maintain toll or toll-free 
        facilities.
          [24] (27) Public lands development roads and 
        trails.--The term ``public lands development roads and 
        trails'' means those roads and trails that the 
        Secretary ofthe Interior determines are of primary 
importance for the development, protection, administration, and 
utilization of public lands and resources under the control of the 
Secretary of the Interior.
          [25] (28) Public lands highway.--The term ``public 
        lands highway'' means a forest road under the 
        jurisdiction of and maintained by a public authority 
        and open to public travel or any highway through 
        unappropriated or unreserved public lands, nontaxable 
        Indian lands, or other Federal reservations under the 
        jurisdiction of and maintained by a public authority 
        and open to public travel.
          [26] (29) Public lands highways.--The term ``public 
        lands highways'' means those main highways through 
        unappropriated or unreserved public lands, nontaxable 
        Indian lands, or other Federal reservations, which are 
        on the Federal-aid systems.
          [27] (30) Public road.--The term ``public road'' 
        means any road or street under the jurisdiction of and 
        maintained by a public authority and open to public 
        travel.
          [28] (31) Refuge road.--The term ``refuge road'' 
        means a public road that provides access to or within a 
        unit of the National Wildlife Refuge System and for 
        which title and maintenance responsibility is vested in 
        the United States Government.
          [29] (32) Rural areas.--The term ``rural areas'' 
        means all areas of a State not included in urban areas.
          [30] (33) Safety improvement project.--The term 
        ``safety improvement project'' means a project that 
        corrects or improves high hazard locations, eliminates 
        roadside obstacles, improves highway signing and 
        pavement marking, installs priority control systems for 
        emergency vehicles at signalized intersections, 
        installs or replaces emergency motorist aid call boxes, 
        or installs traffic control or warning devices at 
        locations with high accident potential.
          [31] (34) Secretary.--The term Transportation 
        ``Secretary'' means Secretary of Transportation.
          [32] (35) State.--The term ``State'' means any of the 
        50 States, the District of Columbia, or Puerto Rico.
          [33] (36) State funds.--The term ``State funds'' 
        includes funds raised under the authority of the State 
        or any political or other subdivision thereof, and made 
        available for expenditure under the direct control of 
        the State transportation department.
          [34] (37) State transportation department.--The term 
        ``State transportation department'' means that 
        department, commission, board, or official of any State 
        charged by its laws with the responsibility for highway 
        construction.
          [35] (38) Transportation enhancement activities.--The 
        term ``transportation enhancement activities'' means, 
        with respect to any project or the area to be served by 
        the project, any of the following activities if such 
        activity relates to surface transportation: provision 
        of facilities for pedestrians and bicycles, provision 
        of safety and educational activities for pedestrians 
        and bicyclists, acquisition of scenic easements and 
        scenic or historic sites, scenic or historic highway 
        programs (including the provision of tourist and 
        welcome center facilities), landscaping and other 
        scenicbeautification, historic preservation, 
rehabilitation and operation of historic transportation buildings, 
structures, or facilities (including historic railroad facilities and 
canals), preservation of abandoned railway corridors (including the 
conversion and use thereof for pedestrian or bicycle trails), control 
and removal of outdoor advertising, archaeological planning and 
research, environmental mitigation to address water pollution due to 
highway runoff or reduce vehicle-caused wildlife mortality while 
maintaining habitat connectivity, and establishment of transportation 
museums.
          (39) Tribal transportation facility.--The term 
        ``tribal transportation facility'' means any 
        transportation-related project, facility, or physical 
        infrastructure for an Indian tribe that is funded under 
        this title.
          [36] (40) Urban area.--The term ``urban area'' means 
        an urbanized area or, in the case of an urbanized area 
        encompassing more than one State, that part of the 
        urbanized area in each such State, or urban place as 
        designated by the Bureau of the Census having a 
        population of 5,000 or more and not within any 
        urbanized area, within boundaries to be fixed by 
        responsible State and local officials in cooperation 
        with each other, subject to approval by the Secretary. 
        Such boundaries shall encompass, at a minimum, the 
        entire urban place designated by the Bureau of the 
        Census, except in the case of cities in the State of 
        Maine and in the State of New Hampshire.
          [37] (41) Urbanized area.--The term ``urbanized 
        area'' means an area with a population of 50,000 or 
        more designated by the Bureau of the Census, within 
        boundaries to be fixed by responsible State and local 
        officials in cooperation with each other, subject to 
        approval by the Secretary. Such boundaries shall 
        encompass, at a minimum, the entire urbanized area 
        within a State as designated by the Bureau of the 
        Census.
    (b) It is hereby declared to be in the national interest to 
accelerate the construction of the Federal-aid highway systems, 
including The Dwight D. Eisenhower System of Interstate and 
Defense Highways, since many of such highways, or portions 
thereof, are in fact inadequate to meet the needs of local and 
interstate commerce, for the national and civil defense.
    It is hereby declared that the prompt and early completion 
of The Dwight D. Eisenhower System of Interstate and Defense 
Highways, so named because of its primary importance to the 
national defense and hereafter referred to as the ''Interstate 
System'', is essential to the national interest and is one of 
the most important objectives of this Act. It is the intent of 
Congress that the Interstate System be completed as nearly as 
practicable over the period of availability of the forty years' 
appropriations authorized for the purpose of expediting its 
construction, reconstruction, or improvement, inclusive of 
necessary tunnels and bridges, through the fiscal year ending 
September 30, 1996, under section 108(b) of the Federal-Aid 
Highway Act of 1956 (70 Stat. 374), and that the entire system 
in all States be brought to simultaneous completion. Insofar as 
possible in consonance with this objective, existing highways 
located on an interstate route shall be used to the extent that 
such use is practicable, suitable, and feasible, it being the 
intent that local needs, to the extent practicable, suitable, 
and feasible, shall be given equal consideration with the needs 
of interstate commerce.
    It is further declared that since the Interstate System is 
now in the final phase of completion it shall be the national 
policy that increased emphasis be placed on the construction 
and reconstruction of the other Federal-aid systems in 
accordance with the first paragraph of this subsection, in 
order to bring all of the Federal-aid systems up to standards 
and to increase the safety of these systems to the maximum 
extent.
    (c) It is the sense of Congress that under existing law no 
part of any sums authorized to be appropriated forexpenditure 
upon any Federal-aid system which has been apportioned pursuant to the 
provisions of this title shall be impounded or withheld from 
obligation, for purposes and projects as provided in this title, by any 
officer or employee in the executive branch of the Federal Government, 
except such specific sums as may be determined by the Secretary of the 
Treasury, after consultation with the Secretary of Transportation, are 
necessary to be withheld from obligation for specific periods of time 
to assure that sufficient amounts will be available in the Highway 
Trust Fund to defray the expenditures which will be required to be made 
from such fund.
    (d) No funds authorized to be appropriated from the Highway 
Trust Fund shall be expended by or on behalf of any Federal 
department, agency, or instrumentality other than the Federal 
Highway Administration unless funds for such expenditure are 
identified and included as a line item in an appropriation Act 
and are to meet obligations of the United States heretofore or 
hereafter incurred under this title attributable to the 
construction of Federal-aid highways or highway planning, 
research, or development, or as otherwise specifically 
authorized to be appropriated from the Highway Trust Fund by 
Federal-aid highway legislation.
    (e) It is the national policy that to the maximum extent 
possible the procedures to be utilized by the Secretary and all 
other affected heads of Federal departments, agencies, and 
instrumentalities for carrying out this title and any other 
provision of law relating to the Federal highway programs shall 
encourage the substantial minimization of paperwork and 
interagency decision procedures and the best use of available 
manpower and funds so as to prevent needless duplication and 
unnecessary delays at all levels of government.

                             112 Stat. 112


                           Section 1101(a)(8)

          (8) Federal lands highways program.--
                  (A) [Indian reservation roads.--For Indian 
                reservation roads under section 204 of such 
                title $225,000,000 for fiscal year 1998 and 
                $275,000,000 for each of fiscal years 1999 
                through 2008.] Indian Reservation Roads.--
                          (i) In general.--Subject to clause 
                        (ii), for Indian reservation roads 
                        under section 204 of that title--
                                  (I) $330,000,000 for each of 
                                fiscal years 2004 through 2005
                                  (II) $425,000,000 for each of 
                                fiscal years 2006 through 2007
                                  (III) $550,000,000 for each 
                                of fiscal years 2008 through 
                                2009.
                          (ii) Maintenance.--Of the amounts 
                        made available for each fiscal year 
                        under clause (i), not less than 
                        $50,000,000 shall be used--
                                  (I) to maintain roads on 
                                Indian land; and
                                  (II) to maintain tribal 
                                transportation facilities 
                                serving Indian communities.

                             112 Stat. 116


                           OBLIGATION CEILING

    (c) Distribution of Obligation Authority.--For each of 
fiscal years 1998 through 2003, the Secretary shall--
          (1) not distribute [obligation]
                  (A) obligation authority provided by 
                subsection (a) for such fiscal year for amounts 
                authorized for administrative expenses and 
                programs funded from the administrative 
                takedown authorized by section 104(a) of Title 
                23, United States Code, and amounts authorized 
                for thehighway use tax evasion program and the 
Bureau of Transportation Statistics; and
                  (B) for each of fiscal years 2004 through 
                2009, for any amount of obligation authority 
                made available for Indian reservation road 
                bridges under section 202(d)(4), and for Indian 
                reservation roads under section 204, of title 
                23 United States Code. 

                          23 U.S.C. 202(d)(3)

          (3) Contracts and agreements with indian tribes.--
                  (A) In general.--Notwithstanding any other 
                provision of law or any interagency agreement, 
                program guideline, manual, or policy directive, 
                all funds made available under this title for 
                Indian reservation roads and for highway 
                bridges located on Indian reservation roads to 
                pay for the costs of programs, services, 
                functions, and activities, or portions thereof, 
                that are specifically or functionally related 
                to the cost of planning, research, engineering, 
                and construction of any highway, road, bridge, 
                parkway, or transit 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.
                  (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 
                the Interior that has previously carried out 
                such programs, functions, services, or 
                activities.
                  (C) Federal lands highway program 
                demonstration project.--
                          (i) In general.--The Secretary shall 
                        establish a demonstration project under 
                        which all funds made available under 
                        this chapter for Indian reservation 
                        roads and for highway bridges located 
                        on Indian reservation roads as provided 
                        for in subparagraph (A) shall be made 
                        available, on the request of an 
                        affected Indian tribal government, to 
                        the Indian tribal government for use in 
                        carrying out, in accordance with the 
                        Indian Self-Determination and Education 
                        Assistance Act (25 U.S.C. 450b et 
                        seq.), contracts and agreements for the 
                        planning, research, engineering, and 
                        construction described in that 
                        subparagraph.
                          (ii) Exclusion of agency 
                        participation.--In accordance with 
                        subparagraph (B), all funds for Indian 
                        reservation roads and for highway 
                        bridges located on Indian reservation 
                        roads to which clause (i) applies shall 
                        be paid without regard to the 
                        organizational level at which the 
                        Federal lands highway program has 
                        previously carried out the programs, 
                        functions, services, or activities 
                        involved.
                          (iii) Selection of participating 
                        tribes.--
                                  (I) Participants.--
                                          (aa) In general.--In 
                                        addition to those 
                                        Indian tribes or tribal 
                                        organizations already 
                                        contracting or 
                                        compacting for any 
                                        Indian reservation road 
                                        function or program, 
                                        for each fiscal year, 
                                        the Secretary may 
                                        select up to 15 Indian 
                                        tribes from the 
                                        applicant pool 
                                        described in subclause 
                                        (II) to participate in 
                                        the demonstration 
                                        project carried out 
                                        under clause (i).
                                          (bb) Consortia.--Two 
                                        or more Indian tribes 
                                        that are otherwise 
                                        eligible to participate 
                                        in a program or 
                                        activity to which this 
                                        title applies may form 
                                        a consortium to be 
                                        considered as a single 
                                        Indian tribe for the 
                                        purpose of becoming 
                                        part of the applicant 
                                        pool under subclause 
                                        (II).
                                          (cc) Funding.--An 
                                        Indiantribe 
participating in the pilot program under this subparagraph shall 
receive funding in an amount equal to the sum of the funding that the 
Indian tribe would otherwise receive in accordance with the funding 
formula established under the other provisions of this subsection, and 
an additional percentage of that amount equal to the percentage of 
funds withheld during the applicable fiscal year for the road program 
management costs of the Bureau of Indian Affairs under subsection 
(f)(1).
                                  (II) Applicant pool.--The 
                                applicant pool described in 
                                this subclause shall consist of 
                                each Indian tribe (or 
                                consortium) that--
                                          (aa) has successfully 
                                        completed the planning 
                                        phase described in 
                                        subclause (IV).
                                          (bb) has requested 
                                        participation in the 
                                        demonstration project 
                                        under this subparagraph 
                                        through the adoption of 
                                        a resolution or other 
                                        official action by the 
                                        tribal governing body; 
                                        and
                                          (cc) has demonstrated 
                                        financial stability and 
                                        financial management 
                                        capability in 
                                        accordance with 
                                        subclause (III) during 
                                        the 3-fiscal year 
                                        period immediately 
                                        preceding the fiscal 
                                        year for which 
                                        participation under 
                                        this subparagraph is 
                                        being requested.
                                  (III) Criteria for 
                                determining financial stability 
                                and financial management 
                                capacity.--For the purpose of 
                                subclause (II), evidence that, 
                                during the 3-year period 
                                referred to in subclause (II) 
                                (cc), an Indian tribe had no 
                                uncorrected significant and 
                                material audit exceptions in 
                                the required annual audit of 
                                the Indian tribe's self-
                                determination contracts or 
                                self-governance funding 
                                agreements with any Federal 
                                agency shall be conclusive 
                                evidence of the required 
                                stability and capability.
                                  (IV) Planning phase.--
                                          (aa) In general.--An 
                                        Indian tribe (or 
                                        consortium) requesting 
                                        participation in the 
                                        demonstration project 
                                        under this subparagraph 
                                        shall complete a 
                                        planning phase that 
                                        shall include legal and 
                                        budgetary research and 
                                        internal tribal 
                                        government and 
                                        organization 
                                        preparation.
                                          (bb) Eligibility.--A 
                                        tribe (or consortium) 
                                        described in item (aa) 
                                        shall be eligible to 
                                        receive a grant under 
                                        this subclause to plan 
                                        and negotiate 
                                        participation in a 
                                        project described in 
                                        that item.
                                  (V) Report to congress.--Not 
                                later than September 30, 2006, 
                                the Secretary shall prepare and 
                                submit to Congress a report 
                                describing the implementation 
                                of the demonstration project 
                                and any recommendations for 
                                improving the project.

                         23 U.S.C. 202(d)(4)(B)

          (4) Reservation of funds.--
                  (A) Nationwide priority program.--The 
                Secretary shall establish a nationwide priority 
                program for improving deficient Indian 
                reservation road bridges.
                  [(B) Reservation.--Of the amounts authorized 
                to be appropriated for Indian reservation roads 
                for each fiscal year, the Secretary, in 
                cooperation with the Secretary of the Interior, 
                shall reserve not less than $13,000,000 for 
                projects to replace, rehabilitate, seismically 
                retrofit, paint, apply calcium magnesium 
                acetate, sodium acetate/formate, or other 
                environmentally acceptable, minimally corrosive 
                anti-icing and de-icing compositions or install 
                scour countermeasures for deficient Indian 
                reservation road bridges, including multiple-
                pipe culverts.]
                  (B) Funding.--
                          (i) Reservation of funds.--
                        Notwithstanding any other provision of 
                        law, there is authorized to be 
                        appropriated from the Highway Trust 
                        Fund (other than the Mass Transit 
                        Account) $15,000,000 for each of fiscal 
                        years 2004 through 2009 to carry out 
                        planning, design,engineering, 
preconstruction, construction, and inspection of projects to replace,
                          (ii) Availability.--Funds made 
                        available to carry out this 
                        subparagraph--
                                  (I) shall be available for 
                                obligation in the same manner 
                                as if the funds were 
                                Apportioned under chapter 1; 
                                and
                                  (II) shall not be available 
                                to the Bureau of Indian Affairs 
                                to pay administrative costs.
                  (C) Eligible bridges.--To be eligible to 
                receive funding under this subsection, a bridge 
                described in subparagraph (A) must--
                          (i) have an opening of 20 feet or 
                        more
                          (ii) be on an Indian reservation 
                        road;
                          (iii) be unsafe because of structural 
                        deficiencies, physical deterioration, 
                        or functional obsolescence; and
                          (iv) be recorded in the national 
                        bridge inventory administered by the 
                        Secretary under subsection (b).
                  (D) Approval requirement.--Funds to carry out 
                Indian reservation road bridge projects under 
                this subsection shall be made available only on 
                approval of plans, specifications, and 
                estimates by the Secretary.
    (e) Refuge Roads.--On October 1 of each year, the Secretary 
shall allocate the sums made available for that fiscal year for 
refuge roads according to the relative needs of the various 
refuges in the National Wildlife Refuge System, and taking into 
consideration--
          (1) the comprehensive conservation plan for each 
        refuge;
          (2) the need for access as identified through land 
        use planning; and
          (3) the impact of land use planning on existing 
        transportation facilities.
    (f) Administration of Indian Reservation Roads.--
          (1) Contract authority.--
                  (A) In general.--Notwithstanding any other 
                provision of law, for any fiscal year, not more 
                than 6 percent of the contract authority 
                amounts made available from the Highway Trust 
                Fund to the Bureau of Indian Affairs under this 
                title shall be used to pay the administrative 
                expenses of the Bureau for the Indian 
                reservation roads program (including the 
                administrative expenses relating to individual 
                projects that are associated with the program).
                  (B) Availability.--Amounts made available to 
                pay administrative expenses under subparagraph 
                (A) shall be made available to an Indian tribal 
                government, on the request of the government, 
                to be used for the associated administrative 
                functions assumed by the Indian tribe under 
                contracts and agreements entered into under the 
                Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b et seq.).
          (2) Health and safety assurances.--Notwithstanding 
        any other provision of law, an Indian tribe or tribal 
        organization may commence road and bridge construction 
        under the Transportation Equity Act for the 21st 
        Century (Public Law 105-178) or TEA-21 that is funded 
        through a contract or agreement under the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b et seq.) if the Indian tribe or tribal 
        organization--
                  (A) provides assurances in the contract or 
                agreement that the construction will meet or 
                exceed applicable health and safety standards;
                  (B) obtains the advance review of the plans 
                and specifications from a licensed professional 
                that has certified that the plans and 
                specifications meet or exceed the applicable 
                health and safety standards; and
                  (C) provides a copy of the certification 
                under subparagraph (B) to the Assistant 
                Secretary for Indian Affairs.

                            23 U.S.C. 204(j)

    (j) Indian Reservation Roads Planning.--Up to [2] 5 percent 
of funds made available for Indian reservation roads for each 
fiscal year shall be allocated to those Indian tribal 
governments applying for transportation planning pursuant to 
the provisions of the Indian Self-Determination and Education 
Assistance Act. The Indian tribal government, in cooperation 
with the Secretary of the Interior, and as appropriate, with a 
State, local government, or metropolitan planning organization, 
shall carry out a transportation improvement program and shall 
be subject to the approval of the Secretary of the Interior and 
the Secretary.

                             23 U.S.C. 204

    (l) Tribal-State Road Maintenance Agreements.--
          (1) In general.--Notwithstanding any other provision 
        of law, regulation, policy, or guideline, an Indian 
        tribe and a State may enter into a road maintenance 
        agreement under which an Indian tribe assumes the 
        responsibilities of the State for--
                  (A) Indian reservation roads; and
                  (B) roads providing access to Indian 
                reservation roads.
          (2) Tribal-state agreements.--Agreements entered into 
        under paragraph (1)--
                  (A) shall be negotiated between the State and 
                the Indian tribe; and
                  (B) shall not require the approval of the 
                Secretary.
          (3) Annual report.--Effective beginning with fiscal 
        year 2004, the Secretary shall prepare and submit to 
        Congress an annual report that identifies--
                  (A) the Indian tribes and States that have 
                entered into agreements under paragraph (1);
                  (B) the number of miles of roads for which 
                Indian tribes have assumed maintenance 
                responsibilities; and
                  (C) the amount of funding transferred to 
                Indian tribes for the fiscal year under 
                agreements entered into under paragraph (1).

                             23 U.S.C. 204

    (m) Alaska Native Village Transportation Program.--
          (1) Definitions.--In this subsection:
                  (A) Commission.--The term ``Commission'' 
                means the Alaska Native Transportation 
                Commission established under paragraph (4)(A).
                  (B) Native.--The term ``Native'' has the 
                meaning given the term in section 3 of the 
                Alaska Native Claims Settlement Act (43 U.S.C. 
                1602).
                  (C) Native authority.--The term ``Native 
                authority'' means a governing board of a 
                Regional Corporation, a regional Native non-
                profit entity, a tribal government, or an 
                alternative regional entity that is designated 
                by the Secretary as a native regional 
                transportation authority under paragraph 
                (3)(A).
                  (D) Native village.--The term ``Native 
                Village'' has the meaning given the term in 
                section 3 of the Alaska native Claims 
                Settlement Act (43 U.S.C. 1602).
                  (E) Program.--The term ``program means the 
                Alaska Native village transportation program 
                established under paragraph (2).
                  (F) Region.--The term ``region'' means a 
                region in the State specified in section 
                11(b)(1) of the Alaska Native Claims Settlement 
                Act (43 U.S.C. 1602).
                  (G) Regional corporation.--The term 
                ``Regional Corporation'' has the meaning given 
                the term in section 2 of the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1602).
                  (H) State.--The term ``State'' means the 
                State of Alaska.
          (2) Establishment.--The Secretary shall establish an 
        Alaska Native village transportation program to pay the 
        costs of planning, design, construction, and 
        maintenance for road and other surface transportation 
        facilities identified in accordance with this section.
          (3) Alaska native regional transportation 
        authorities.--
                  (A) Designation.--The Secretary shall 
                designate a Native authority for each region.
                  (B) Responsibilities.--A Native authority 
                shall, with respect to each Native village or 
                region, as appropriate, covered by the Native 
                authority--
                          (i) prepare--
                                  (I) a regional transportation 
                                plan for the Native village; 
                                and (II) a comprehensive 
                                transportation for the region;
                          (ii) prioritize and select projects 
                        to be funded with amounts made 
                        available under this section for the 
                        region;
                          (iii) coordinate transportation 
                        planning with other regions, the State, 
                        and other governmental entities; and
                          (iv) ensure that the transportation 
                        projects under this section are 
                        constructed and implemented.
          (4) Alaska native transportation commission.--
                  (A) Establishment.--As soon as practicable 
                after the date of enactment of this subsection, 
                the Secretary shall establish a commission, to 
                be known as the ``Statewide Alaska Native 
                Transportation Commission'', consisting of 1 
                representative selected from each Native 
                authority designated by the Secretary under 
                Paragraph (3)(A) .
                  (B) Duties.--The Commission shall--
                          (i) allocate funds made available 
                        under this section among regions in 
                        accordance with paragraph (5) ;
                          (ii) coordinate transportation 
                        planning among the regions, the State, 
                        and other governmental entities; and
                          (iii) facilitate transportation 
                        projects involving 2 or more regions.
          (5) Allocation of funding.--
                  (A) Fiscal year 2004.--Funds made available 
                for the program for fiscal year 2004 shall be 
                allocated to each region by the Secretary as 
                follows:
                          (i) 50 percent of the funds shall be 
                        allocated based on the proportion 
                        that--
                                  (I) the Native population of 
                                Native villages in the region; 
                                bears to
                                  (II) the Native population of 
                                all Native villages in the 
                                State.
                          (ii) 50 percent of the funds shall be 
                        allocated as equally as practicable 
                        among all Native villages in the 
                        region.
                  (B) Fiscal year 2005 and subsequentfiscal 
years.--Funds made available for the program for fiscal year 2005 and 
each fiscal year thereafter shall be allocated among regions by the 
Commission, in accordance with a formula to be developed by the 
Commission after taking into consideration--
                          (i) the health, safety, and economic 
                        needs of each region for transportation 
                        infrastructure, as identified through 
                        the regional planning process;
                          (ii) the relative costs of 
                        construction in each region; and
                          (iii) the extent to which 
                        transportation projects for each region 
                        are ready to proceed to design and 
                        construction.
          (6) Tribal contracting.--Funds allocated among 
        regions under this subsection may be contracted or 
        compacted in accordance with the Indian Self 
        Determination and Education Assistance Act (25 U.S.C. 
        450b et seq.).
          (7) Matching funds.--Notwithstanding any other 
        provision of law, funds made available under this 
        subsection may be used to pay a matching share required 
        for receipt of any other Federal funds that would 
        further a purpose for which allocations under this 
        section are made.
          (8) Maintenance.--
                  (A) In general.--At the request of a native 
                authority or Native village, the Secretary may 
                increase an amount of funds provided under this 
                subsection for a construction project by an 
                additional amount equal to 50% of the total 
                cost of construction of the project, as 
                determined by the Secretary.
                  (B) Use of retained funds.--An increase in 
                funds provided under subparagraph (A) for a 
                construction project shall be retained, and 
                used only, for future maintenance of the 
                construction project.

                             23 U.S.C. 412

    (a) Program.--
          (1) In general.--The Secretary shall carry out a 
        program to provide to eligible Indian tribes (as 
        determined by the Secretary) competitive grants for use 
        in establishing tribal transportation safety programs 
        on--
                  (A) Indian reservations; and
                  (B) other land under the jurisdiction of an 
                Indian tribe.
          (2) Use of funds.--Funds from a grant provided under 
        paragraph (1) may be used to carry out a project or 
        activity--
                  (A) to prevent the operation of motor 
                vehicles by intoxicated individuals;
                  (B) to promote increased seat belt use rates;
                  (C) to eliminate hazardous locations and 
                conditions on, or hazardous sections or 
                elements of--
                          (i) a public road;
                          (ii) a public surface transportation 
                        facility;
                          (iii) a publicly-owned bicycle or 
                        pedestrian pathway or trail; or
                          (iv) a traffic calming measure;
                  (D) to eliminate hazards relating to railway-
                highway crossings; or
                  (E) to increase transportation safety by any 
                other means, as determined by the Secretary.
    (b) Federal Share.--The Federal share of the cost of 
carrying out the program under this section shall be 100 
percent.
    (c) Funding.--Notwithstanding any other provision of law, 
there are authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out this 
section--
          (1) $6,000,000 for each of fiscal years 2004 and 
        2005; and
          (2) $9,000,000 for each of fiscal years 2006 through 
        2009.
    (d) Conforming Amendment.--The analysis for chapter 4 of 
title 23, United States Code is amended by inserting after the 
item relating to section 411 the following:

        ``Indian reservation road safety program.''

                             49 U.S.C. 5311

    (k) Indian Reservation Rural Transit Program.--
          (1) In general.--The Secretary shall establish and 
        carry out a program to provide competitive grant to 
        Indian tribes to establish rural transit programs on 
        reservations or other land under the jurisdiction of 
        the Indian tribes.
          (2) Amount of grants.--The amount of a grant provided 
        to an Indian tribe under subparagraph (A) shall be 
        based on the need of the Indian tribe, as determined by 
        the Secretary of Transportation.
          (3) Authorization of funding.--For each of fiscal 
        years 2004 through 2009, of the amount made available 
        under section 5338, $15,000,000 shall be made available 
        to carry out this subsection.