[House Report 112-557]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-557
SENATE
_______________________________________________________________________
MAP-21
CONFERENCE REPORT
to accompany
H.R. 4348
June 28, 2012.--Ordered to be printed
______
U.S. GOVERNMENT PRINTING OFFICE
74-837 WASHINGTON : 2012
C O N T E N T S
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PART I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND
RELATED TAXES.................................................. 613
A. Extension of Highway Trust Fund Expenditure Authority and
Extension of Highway-Related Taxes (secs. 141 and 142 of
the House bill, secs. 40101 and 40102 of the Senate
amendment, secs. 40101 and 40102 of the conference
agreement, and secs. 4041, 4051, 4071, 4081, 4221, 4481,
4483, 6412, 9503, 9504, and 9508 of the Code).............. 613
PART II--REVENUE PROVISIONS...................................... 616
A. Leaking Underground Storage Tank Trust Fund (secs. 40301
and 40302 of the Senate amendment, sec. 40201 of the
conference agreement and secs. 9503 and 9508 of the Code).. 616
B. Pension Funding Stabilization (sec. 40312 of the Senate
amendment, sec. 40211 of the conference agreement, Code
sec. 430, and ERISA secs. 101(f) and 303).................. 618
C. Transfer of Excess Pension Assets (secs. 40310 and 40311
of the Senate amendment, secs. 40241 and 40242 of the
conference agreement, and sec. 420 of the Code)............ 626
D. Exception from Early Distribution Tax for Annuities Under
Phased Retirement Program (sec. 100111 of conference
agreement and sec. 72(t) of the Code)...................... 630
E. Additional Transfers to the Highway Trust Fund (sec. 40313
of the Senate amendment, sec. 40251 of the conference
agreement, and sec. 9503 of the Code)...................... 631
F. Expand the Definition of a Tobacco Manufacturer to Include
Businesses Making Available Roll-Your-Own Cigarette
Machines for Consumer Use (sec. 100116 of the Senate
amendment, section 100112 of the conference agreement and
sec. 5702(d) of the Code).................................. 632
PART III--OTHER ITEMS............................................ 634
A. Small Issuer Exception to Tax-Exempt Interest Expense
Allocation Rules for Financial Institutions (sec. 40201 of
the Senate amendment and sec. 265 of the Code)............. 634
B. Temporary Modification of Alternative Minimum Tax
Limitations on Tax-Exempt Bonds (sec. 40202 of the Senate
amendment and secs. 56 and 57 of the Code)................. 636
C. Issuance of TRIP Bonds by State Infrastructure Banks (sec.
40203 of the Senate amendment)............................. 637
D. Mass Transit and Parking Benefits (sec. 40204 of the
Senate amendment and sec. 132(f) of the Code).............. 638
E. Private Activity Volume Cap Exemption for Sewage and Water
Facility Bonds (sec. 40205 of the Senate amendment and sec.
146(g) of the Code)........................................ 639
F. Dedication of Gas Guzzler Tax to the Highway Trust Fund
(sec. 40303 of the Senate amendment and sec. 9503 of the
Code)...................................................... 640
G. Revocation or Denial of Passport in Case of Certain Unpaid
Taxes (sec. 40304 of the Senate amendment and new secs.
7345 and 6103(l)(23) of the Code).......................... 641
H. 100 Percent Continuous Levy on Payments to Medicare
Providers and Suppliers (sec. 40305 of the Senate amendment
and sec. 6331(h) of the Code).............................. 643
I. Appropriation to the Highway Trust Fund of Amounts
Attributable to Certain Duties on Imported Vehicles (sec.
40306 of the Senate amendment)............................. 645
J. Treatment of Securities of a Controlled Corporation
Exchanged for Assets in Certain Reorganizations (sec. 40307
of the Senate amendment and sec. 361 of the Code).......... 645
K. Internal Revenue Service Levies and Thrift Savings Plan
Accounts (sec. 40308 of the Senate amendment).............. 648
L. Depreciation and Amortization Rules for Highway and
Related Property Subject to Long-Term Leases (sec. 40309 of
the Senate amendment and secs. 168, 197, and 147 of the
Code)...................................................... 649
M. Transfers to Federal Old-Age and Survivors Insurance Trust
Fund and Federal Disability Insurance Trust Fund (sec.
40314 of the Senate amendment)............................. 651
N. Modify Rules that Apply to Sales of Life Insurance
Contracts (secs. 100112-4 of the Senate amendment and new
sec. 6050X of the Code).................................... 651
O. Authorizing Special Measures against Foreign
Jurisdictions, Financial Institutions, and Others that
Significantly Impede U.S. Tax Enforcement (sec. 100201 of
the Senate amendment and 31 U.S.C. sec. 5138A)............. 655
P. Delay in Application of Worldwide Interest (sec. 1801 of
the Senate amendment and sec. 864(f) of the Code).......... 658
PART IV--TAX COMPLEXITY ANALYSIS................................. 662
112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-557
======================================================================
MAP-21
_______
June 28, 2012.--Ordered to be printed
_______
Mr. Mica, from the Committee on Conference, submitted the following
CONFERENCE REPORT
[To accompany H. R. 4348]
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
4348), to provide an extension of Federal-aid highway, highway
safety, motor carrier safety, transit, and other programs
funded out of the Highway Trust Fund pending enactment of a
multiyear law reauthorizing such programs, and for other
purposes, having met, after full and free conference, have
agreed to recommend and do recommend to their respective Houses
as follows:
That the House recede from its disagreement to the
amendment of the Senate to the text of the bill and agree to
the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Moving
Ahead for Progress in the 21st Century Act'' or the ``MAP-21''.
(b) Divisions.--This Act is organized into 8 divisions as
follows:
(1) Division A-Federal-aid Highways and Highway
Safety Construction Programs.
(2) Division B-Public Transportation.
(3) Division C-Transportation Safety and Surface
Transportation Policy.
(4) Division D-Finance.
(5) Division E-Research and Education.
(6) Division F-Miscellaneous.
(7) Division G-Surface Transportation Extension.
(8) Division H-Budgetary Effects.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; organization of Act into divisions; table of
contents.
Sec. 2. Definitions.
Sec. 3. Effective date.
DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION
PROGRAMS
TITLE I--FEDERAL-AID HIGHWAYS
Subtitle A--Authorizations and Programs
Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Definitions.
Sec. 1104. National Highway System.
Sec. 1105. Apportionment.
Sec. 1106. National highway performance program.
Sec. 1107. Emergency relief.
Sec. 1108. Surface transportation program.
Sec. 1109. Workforce development.
Sec. 1110. Highway use tax evasion projects.
Sec. 1111. National bridge and tunnel inventory and inspection
standards.
Sec. 1112. Highway safety improvement program.
Sec. 1113. Congestion mitigation and air quality improvement program.
Sec. 1114. Territorial and Puerto Rico highway program.
Sec. 1115. National freight policy.
Sec. 1116. Prioritization of projects to improve freight movement.
Sec. 1117. State freight advisory committees.
Sec. 1118. State freight plans.
Sec. 1119. Federal lands and tribal transportation programs.
Sec. 1120. Projects of national and regional significance.
Sec. 1121. Construction of ferry boats and ferry terminal facilities.
Sec. 1122. Transportation alternatives.
Sec. 1123. Tribal high priority projects program.
Subtitle B--Performance Management
Sec. 1201. Metropolitan transportation planning.
Sec. 1202. Statewide and nonmetropolitan transportation planning.
Sec. 1203. National goals and performance management measures.
Subtitle C--Acceleration of Project Delivery
Sec. 1301. Declaration of policy and project delivery initiative.
Sec. 1302. Advance acquisition of real property interests.
Sec. 1303. Letting of contracts.
Sec. 1304. Innovative project delivery methods.
Sec. 1305. Efficient environmental reviews for project decisionmaking.
Sec. 1306. Accelerated decisionmaking.
Sec. 1307. Assistance to affected Federal and State agencies.
Sec. 1308. Limitations on claims.
Sec. 1309. Accelerating completion of complex projects within 4 years.
Sec. 1310. Integration of planning and environmental review.
Sec. 1311. Development of programmatic mitigation plans.
Sec. 1312. State assumption of responsibility for categorical
exclusions.
Sec. 1313. Surface transportation project delivery program.
Sec. 1314. Application of categorical exclusions for multimodal
projects.
Sec. 1315. Categorical exclusions in emergencies.
Sec. 1316. Categorical exclusions for projects within the right-of-way.
Sec. 1317. Categorical exclusion for projects of limited Federal
assistance.
Sec. 1318. Programmatic agreements and additional categorical
exclusions.
Sec. 1319. Accelerated decisionmaking in environmental reviews.
Sec. 1320. Memoranda of agency agreements for early coordination.
Sec. 1321. Environmental procedures initiative.
Sec. 1322. Review of State environmental reviews and approvals for the
purpose of eliminating duplication of environmental reviews.
Sec. 1323. Review of Federal project and program delivery.
Subtitle D--Highway Safety
Sec. 1401. Jason's law.
Sec. 1402. Open container requirements.
Sec. 1403. Minimum penalties for repeat offenders for driving while
intoxicated or driving under the influence.
Sec. 1404. Adjustments to penalty provisions.
Sec. 1405. Highway worker safety.
Subtitle E--Miscellaneous
Sec. 1501. Real-time ridesharing.
Sec. 1502. Program efficiencies.
Sec. 1503. Project approval and oversight.
Sec. 1504. Standards.
Sec. 1505. Justification reports for access points on the Interstate
System.
Sec. 1506. Construction.
Sec. 1507. Maintenance.
Sec. 1508. Federal share payable.
Sec. 1509. Transferability of Federal-aid highway funds.
Sec. 1510. Idle reduction technology.
Sec. 1511. Special permits during periods of national emergency.
Sec. 1512. Tolling.
Sec. 1513. Miscellaneous parking amendments.
Sec. 1514. HOV facilities.
Sec. 1515. Funding flexibility for transportation emergencies.
Sec. 1516. Defense access road program enhancements to address
transportation infrastructure in the vicinity of military
installations.
Sec. 1517. Mapping.
Sec. 1518. Buy America provisions.
Sec. 1519. Consolidation of programs; repeal of obsolete provisions.
Sec. 1520. Denali Commission.
Sec. 1521. Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 amendments.
Sec. 1522. Extension of public transit vehicle exemption from axle
weight restrictions.
Sec. 1523. Use of debris from demolished bridges and overpasses.
Sec. 1524. Use of youth service and conservation corps.
Sec. 1525. State autonomy for culvert pipe selection.
Sec. 1526. Evacuation routes.
Sec. 1527. Consolidation of grants.
Sec. 1528. Appalachian development highway system.
Sec. 1529. Engineering judgment.
Sec. 1530. Transportation training and employment programs.
Sec. 1531. Notice of certain grant awards.
Sec. 1532. Budget justification.
Sec. 1533. Prohibition on use of funds for automated traffic
enforcement.
Sec. 1534. Public-private partnerships.
Sec. 1535. Report on Highway Trust Fund expenditures.
Sec. 1536. Sense of Congress on harbor maintenance.
Sec. 1537. Estimate of harbor maintenance needs.
Sec. 1538. Asian carp.
Sec. 1539. Rest areas.
Subtitle F--Gulf Coast Restoration
Sec. 1601. Short title.
Sec. 1602. Gulf Coast Restoration Trust Fund.
Sec. 1603. Gulf Coast natural resources restoration and economic
recovery.
Sec. 1604. Gulf Coast Ecosystem Restoration Science, Observation,
Monitoring, and Technology program.
Sec. 1605. Centers of excellence research grants.
Sec. 1606. Effect.
Sec. 1607. Restoration and protection activity limitations.
Sec. 1608. Inspector General.
TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION
Sec. 2001. Short title.
Sec. 2002. Transportation Infrastructure Finance and Innovation Act of
1998 amendments.
DIVISION B--PUBLIC TRANSPORTATION
Sec. 20001. Short title.
Sec. 20002. Repeals.
Sec. 20003. Policies and purposes.
Sec. 20004. Definitions.
Sec. 20005. Metropolitan transportation planning.
Sec. 20006. Statewide and nonmetropolitan transportation planning.
Sec. 20007. Urbanized area formula grants.
Sec. 20008. Fixed guideway capital investment grants.
Sec. 20009. Mobility of seniors and individuals with disabilities.
Sec. 20010. Formula grants for rural areas.
Sec. 20011. Research, development, demonstration, and deployment
projects.
Sec. 20012. Technical assistance and standards development.
Sec. 20013. Private sector participation.
Sec. 20014. Bus testing facilities.
Sec. 20015. Human resources and training.
Sec. 20016. General provisions.
Sec. 20017. Public Transportation Emergency Relief Program.
Sec. 20018. Contract requirements.
Sec. 20019. Transit asset management.
Sec. 20020. Project management oversight.
Sec. 20021. Public transportation safety.
Sec. 20022. Alcohol and controlled substances testing.
Sec. 20023. Nondiscrimination.
Sec. 20024. Administrative provisions.
Sec. 20025. National transit database.
Sec. 20026. Apportionment of appropriations for formula grants.
Sec. 20027. State of good repair grants.
Sec. 20028. Authorizations.
Sec. 20029. Bus and bus facilities formula grants.
Sec. 20030. Technical and conforming amendments.
DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY
TITLE I--MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012
Sec. 31001. Short title.
Sec. 31002. Definition.
Subtitle A--Highway Safety
Sec. 31101. Authorization of appropriations.
Sec. 31102. Highway safety programs.
Sec. 31103. Highway safety research and development.
Sec. 31104. National driver register.
Sec. 31105. National priority safety programs.
Sec. 31106. High visibility enforcement program.
Sec. 31107. Agency accountability.
Sec. 31108. Emergency medical services.
Sec. 31109. Repeal of programs.
Subtitle B--Enhanced Safety Authorities
Sec. 31201. Definition of motor vehicle equipment.
Sec. 31202. Permit reminder system for non-use of safety belts.
Sec. 31203. Civil penalties.
Sec. 31204. Motor vehicle safety research and development.
Sec. 31205. Odometer requirements.
Sec. 31206. Increased penalties and damages for odometer fraud.
Sec. 31207. Extend prohibitions on importing noncompliant vehicles and
equipment to defective vehicles and equipment.
Sec. 31208. Conditions on importation of vehicles and equipment.
Sec. 31209. Port inspections; samples for examination or testing.
Subtitle C--Transparency and Accountability
Sec. 31301. Public availability of recall information.
Sec. 31302. National Highway Traffic Safety Administration outreach to
manufacturer, dealer, and mechanic personnel.
Sec. 31303. Public availability of communications to dealers.
Sec. 31304. Corporate responsibility for National Highway Traffic Safety
Administration reports.
Sec. 31305. Passenger motor vehicle information program.
Sec. 31306. Promotion of vehicle defect reporting.
Sec. 31307. Whistleblower protections for motor vehicle manufacturers,
part suppliers, and dealership employees.
Sec. 31308. Anti-revolving door.
Sec. 31309. Study of crash data collection.
Sec. 31310. Update means of providing notification; improving efficacy
of recalls.
Sec. 31311. Expanding choices of remedy available to manufacturers of
replacement equipment.
Sec. 31312. Recall obligations and bankruptcy of manufacturer.
Sec. 31313. Repeal of insurance reports and information provision.
Sec. 31314. Monroney sticker to permit additional safety rating
categories.
Subtitle D--Vehicle Electronics and Safety Standards
Sec. 31401. National Highway Traffic Safety Administration electronics,
software, and engineering expertise.
Sec. 31402. Electronic systems performance.
Subtitle E--Child Safety Standards
Sec. 31501. Child safety seats.
Sec. 31502. Child restraint anchorage systems.
Sec. 31503. Rear seat belt reminders.
Sec. 31504. Unattended passenger reminders.
Sec. 31505. New deadline.
Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural
Equipment
Sec. 31601. Rulemaking on visibility of agricultural equipment.
TITLE II--COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012
Sec. 32001. Short title.
Sec. 32002. References to title 49, United States Code.
Subtitle A--Commercial Motor Vehicle Registration
Sec. 32101. Registration of motor carriers.
Sec. 32102. Safety fitness of new operators.
Sec. 32103. Reincarnated carriers.
Sec. 32104. Financial responsibility requirements.
Sec. 32105. USDOT number registration requirement.
Sec. 32106. Registration fee system.
Sec. 32107. Registration update.
Sec. 32108. Increased penalties for operating without registration.
Sec. 32109. Revocation of registration for imminent hazard.
Sec. 32110. Revocation of registration and other penalties for failure
to respond to subpoena.
Sec. 32111. Fleetwide out of service order for operating without
required registration.
Sec. 32112. Motor carrier and officer patterns of safety violations.
Subtitle B--Commercial Motor Vehicle Safety
Sec. 32201. Crashworthiness standards.
Sec. 32202. Canadian safety rating reciprocity.
Sec. 32203. State reporting of foreign commercial driver convictions.
Sec. 32204. Authority to disqualify foreign commercial drivers.
Sec. 32205. Revocation of foreign motor carrier operating authority for
failure to pay civil penalties.
Sec. 32206. Rental truck accident study.
Subtitle C--Driver Safety
Sec. 32301. Hours of service study and electronic logging devices.
Sec. 32302. Driver medical qualifications.
Sec. 32303. Commercial driver's license notification system.
Sec. 32304. Commercial motor vehicle operator training.
Sec. 32305. Commercial driver's license program.
Sec. 32306. Commercial motor vehicle driver information systems.
Sec. 32307. Employer responsibilities.
Sec. 32308. Program to assist Veterans to acquire commercial driver's
licenses.
Subtitle D--Safe Roads Act of 2012
Sec. 32401. Short title.
Sec. 32402. National clearinghouse for controlled substance and alcohol
test results of commercial motor vehicle operators.
Subtitle E--Enforcement
Sec. 32501. Inspection demand and display of credentials.
Sec. 32502. Out of service penalty for denial of access to records.
Sec. 32503. Penalties for violation of operation out of service orders.
Sec. 32504. Impoundment and immobilization of commercial motor vehicles
for imminent hazard.
Sec. 32505. Increased penalties for evasion of regulations.
Sec. 32506. Violations relating to commercial motor vehicle safety
regulation and operators.
Sec. 32507. Emergency disqualification for imminent hazard.
Sec. 32508. Disclosure to State and local law enforcement agencies.
Sec. 32509. Grade crossing safety regulations.
Subtitle F--Compliance, Safety, Accountability
Sec. 32601. Motor carrier safety assistance program.
Sec. 32602. Performance and registration information systems management
program.
Sec. 32603. Authorization of appropriations.
Sec. 32604. Grants for commercial driver's license program
implementation.
Sec. 32605. Commercial vehicle information systems and networks.
Subtitle G--Motorcoach Enhanced Safety Act of 2012
Sec. 32701. Short title.
Sec. 32702. Definitions.
Sec. 32703. Regulations for improved occupant protection, passenger
evacuation, and crash avoidance.
Sec. 32704. Fire prevention and mitigation.
Sec. 32705. Occupant protection, collision avoidance, fire causation,
and fire extinguisher research and testing.
Sec. 32706. Concurrence of research and rulemaking.
Sec. 32707. Improved oversight of motorcoach service providers.
Sec. 32708. Report on feasibility, benefits, and costs of establishing a
system of certification of training programs.
Sec. 32709. Commercial driver's license passenger endorsement
requirements.
Sec. 32710. Safety inspection program for commercial motor vehicles of
passengers.
Sec. 32711. Regulations.
Subtitle H--Safe Highways and Infrastructure Preservation
Sec. 32801. Comprehensive truck size and weight limits study.
Sec. 32802. Compilation of existing State truck size and weight limit
laws.
Subtitle I--Miscellaneous
PART I--Miscellaneous
Sec. 32911. Prohibition of coercion.
Sec. 32912. Motor carrier safety advisory committee.
Sec. 32913. Waivers, exemptions, and pilot programs.
Sec. 32914. Registration requirements.
Sec. 32915. Additional motor carrier registration requirements.
Sec. 32916. Registration of freight forwarders and brokers.
Sec. 32917. Effective periods of registration.
Sec. 32918. Financial security of brokers and freight forwarders.
Sec. 32919. Unlawful brokerage activities.
PART II--Household Goods Transportation
Sec. 32921. Additional registration requirements for household goods
motor carriers.
Sec. 32922. Failure to give up possession of household goods.
Sec. 32923. Settlement authority.
PART III--Technical Amendments
Sec. 32931. Update of obsolete text.
Sec. 32932. Correction of interstate commerce commission references.
Sec. 32933. Technical and conforming amendments.
Sec. 32934. Exemptions from requirements for covered farm vehicles.
TITLE III--HAZARDOUS MATERIALS TRANSPORTATION SAFETY IMPROVEMENT ACT OF
2012
Sec. 33001. Short title.
Sec. 33002. Definition.
Sec. 33003. References to title 49, United States Code.
Sec. 33004. Training for emergency responders.
Sec. 33005. Paperless Hazard Communications Pilot Program.
Sec. 33006. Improving data collection, analysis, and reporting.
Sec. 33007. Hazardous material technical assessment, research and
development, and analysis program.
Sec. 33008. Hazardous Material Enforcement Training.
Sec. 33009. Inspections.
Sec. 33010. Civil penalties.
Sec. 33011. Reporting of fees.
Sec. 33012. Special permits, approvals, and exclusions.
Sec. 33013. Highway routing disclosures.
Sec. 33014. Motor carrier safety permits.
Sec. 33015. Wetlines.
Sec. 33016. Hazmat employee training requirements and grants.
Sec. 33017. Authorization of appropriations.
TITLE IV--SPORT FISH RESTORATION AND RECREATIONAL BOATING SAFETY ACT OF
2012
Sec. 34001. Short title.
Sec. 34002. Amendment of Federal Aid in Sport Fish Restoration Act.
TITLE V--MISCELLANEOUS
Sec. 35001. Overflights in Grand Canyon National Park.
Sec. 35002. Commercial air tour operations.
Sec. 35003. Qualifications for public aircraft status.
DIVISION D--FINANCE
Sec. 40001. Short title.
TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND
RELATED TAXES
Sec. 40101. Extension of trust fund expenditure authority.
Sec. 40102. Extension of highway-related taxes.
TITLE II--REVENUE PROVISIONS
Subtitle A--Leaking Underground Storage Tank Trust Fund
Sec. 40201. Transfer from Leaking Underground Storage Tank Trust Fund to
Highway Trust Fund.
Subtitle B--Pension Provisions
PART I--Pension Funding Stabilization
Sec. 40211. Pension funding stabilization.
PART II--PBGC Premiums
Sec. 40221. Single employer plan annual premium rates.
Sec. 40222. Multiemployer annual premium rates.
PART III--Improvements of PBGC
Sec. 40231. Pension Benefit Guaranty Corporation Governance Improvement.
Sec. 40232. Participant and plan sponsor advocate.
Sec. 40233. Quality control procedures for the Pension Benefit Guaranty
Corporation.
Sec. 40234. Line of credit repeal.
PART IV--Transfers of Excess Pension Assets
Sec. 40241. Extension for transfers of excess pension assets to retiree
health accounts.
Sec. 40242. Transfer of excess pension assets to retiree group term life
insurance accounts.
Subtitle C--Additional Transfers to Highway Trust Fund
Sec. 40251. Additional transfers to Highway Trust Fund.
DIVISION E--RESEARCH AND EDUCATION
Sec. 50001. Short title.
TITLE I--FUNDING
Sec. 51001. Authorization of appropriations.
TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION
Sec. 52001. Research, technology, and education.
Sec. 52002. Surface transportation research, development, and
technology.
Sec. 52003. Research and technology development and deployment.
Sec. 52004. Training and education.
Sec. 52005. State planning and research.
Sec. 52006. International highway transportation program.
Sec. 52007. Surface transportation environmental cooperative research
program.
Sec. 52008. National cooperative freight research.
Sec. 52009. University transportation centers program.
Sec. 52010. University transportation research.
Sec. 52011. Bureau of Transportation Statistics.
Sec. 52012. Administrative authority.
Sec. 52013. Transportation research and development strategic planning.
TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH
Sec. 53001. Use of funds for ITS activities.
Sec. 53002. Goals and purposes.
Sec. 53003. General authorities and requirements.
Sec. 53004. Research and development.
Sec. 53005. National architecture and standards.
Sec. 53006. Vehicle-to-vehicle and vehicle-to-infrastructure
communications systems deployment.
DIVISION F--MISCELLANEOUS
TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS
Subtitle A--Secure Rural Schools and Community Self-determination
Program
Sec. 100101. Secure Rural Schools and Community Self-Determination
Program.
Subtitle B--Payment in Lieu of Taxes Program
Sec. 100111. Payments in lieu of taxes.
Subtitle C--Offsets
Sec. 100121. Phased retirement authority.
Sec. 100122. Roll-your-own cigarette machines.
Sec. 100123. Change in FMAP increase for disaster recovery states.
Sec. 100124. Repeals.
Sec. 100125. Limitation on payments from the Abandoned Mine Reclamation
Fund.
TITLE II--FLOOD INSURANCE
Subtitle A--Flood Insurance Reform and Modernization
Sec. 100201. Short title.
Sec. 100202. Definitions.
Sec. 100203. Extension of National Flood Insurance Program.
Sec. 100204. Availability of insurance for multifamily properties.
Sec. 100205. Reform of premium rate structure.
Sec. 100207. Premium adjustment.
Sec. 100208. Enforcement.
Sec. 100209. Escrow of flood insurance payments.
Sec. 100210. Minimum deductibles for claims under the National Flood
Insurance Program.
Sec. 100211. Considerations in determining chargeable premium rates.
Sec. 100212. Reserve fund.
Sec. 100213. Repayment plan for borrowing authority.
Sec. 100214. Payment of condominium claims.
Sec. 100215. Technical mapping advisory council.
Sec. 100216. National flood mapping program.
Sec. 100217. Scope of appeals.
Sec. 100218. Scientific Resolution Panel.
Sec. 100219. Removal of limitation on State contributions for updating
flood maps.
Sec. 100220. Coordination.
Sec. 100221. Interagency coordination study.
Sec. 100222. Notice of flood insurance availability under RESPA.
Sec. 100223. Participation in State disaster claims mediation programs.
Sec. 100224. Oversight and expense reimbursements of insurance
companies.
Sec. 100225. Mitigation.
Sec. 100226. Flood Protection Structure Accreditation Task Force.
Sec. 100227. Flood in progress determinations.
Sec. 100228. Clarification of residential and commercial coverage
limits.
Sec. 100229. Local data requirement.
Sec. 100230. Eligibility for flood insurance for persons residing in
communities that have made adequate progress on the
reconstruction or improvement of a flood protection system.
Sec. 100231. Studies and reports.
Sec. 100232. Reinsurance.
Sec. 100233. GAO study on business interruption and additional living
expenses coverages.
Sec. 100234. Policy disclosures.
Sec. 100235. Report on inclusion of building codes in floodplain
management criteria.
Sec. 100236. Study of participation and affordability for certain
policyholders.
Sec. 100237. Study and report concerning the participation of Indian
tribes and members of Indian tribes in the National Flood
Insurance Program.
Sec. 100238. Technical corrections.
Sec. 100239. Use of private insurance to satisfy mandatory purchase
requirement.
Sec. 100240. Levees constructed on certain properties.
Sec. 100241. Insurance coverage for private properties affected by
flooding from Federal lands.
Sec. 100242. Permissible land use under Federal flood insurance plan.
Sec. 100243. CDBG eligibility for flood insurance outreach activities
and community building code administration grants.
Sec. 100244. Termination of force-placed insurance.
Sec. 100245. FEMA authority on transfer of policies.
Sec. 100246. Reimbursement of certain expenses.
Sec. 100247. FIO study on risks, hazards, and insurance.
Sec. 100248. Flood protection improvements constructed on certain
properties.
Sec. 100249. No cause of action.
Subtitle B--Alternative Loss Allocation
Sec. 100251. Short title.
Sec. 100252. Assessing and modeling named storms over coastal States.
Sec. 100253. Alternative loss allocation system for indeterminate
claims.
Subtitle C--HEARTH Act Amendment
Sec. 100261. HEARTH Act technical corrections.
TITLE III--STUDENT LOAN INTEREST RATE EXTENSION
Sec. 100301. Federal Direct Stafford Loan interest rate extension.
Sec. 100302. Eligibility for, and interest charges on, Federal Direct
Stafford Loans for new borrowers on or after July 1, 2013.
DIVISION G--SURFACE TRANSPORTATION EXTENSION
Sec. 110001. Short title.
TITLE I--FEDERAL-AID HIGHWAYS
Sec. 111001. Extension of Federal-aid highway programs.
TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS
Sec. 112001. Extension of National Highway Traffic Safety Administration
highway safety programs.
Sec. 112002. Extension of Federal Motor Carrier Safety Administration
programs.
Sec. 112003. Additional programs.
TITLE III--PUBLIC TRANSPORTATION PROGRAMS
Sec. 113001. Allocation of funds for planning programs.
Sec. 113002. Special rule for urbanized area formula grants.
Sec. 113003. Allocating amounts for capital investment grants.
Sec. 113004. Apportionment of formula grants for other than urbanized
areas.
Sec. 113005. Apportionment based on fixed guideway factors.
Sec. 113006. Authorizations for public transportation.
Sec. 113007. Amendments to SAFETEA-LU.
TITLE IV--EFFECTIVE DATE
Sec. 114001. Effective date.
DIVISION H--BUDGETARY EFFECTS
Sec. 120001. Budgetary effects.
SEC. 2. DEFINITIONS.
In this Act, the following definitions apply:
(1) Department.--The term ``Department'' means the
Department of Transportation.
(2) Secretary.--The term ``Secretary'' means the
Secretary of Transportation.
SEC. 3. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided, divisions A,
B, C (other than sections 32603(d), 32603(g), 32912, and 34002
of that division) and E, including the amendments made by those
divisions, take effect on October 1, 2012.
(b) References.--Except as otherwise provided, any
reference to the date of enactment of the MAP-21 or to the date
of enactment of the Federal Public Transportation Act of 2012
in the divisions described in subsection (a) or in an amendment
made by those divisions shall be deemed to be a reference to
the effective date of those divisions.
DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION
PROGRAMS
TITLE I--FEDERAL-AID HIGHWAYS
Subtitle A--Authorizations and Programs
SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass
Transit Account):
(1) Federal-aid highway program.--For the national
highway performance program under section 119 of title
23, United States Code, the surface transportation
program under section 133 of that title, the highway
safety improvement program under section 148 of that
title, the congestion mitigation and air quality
improvement program under section 149 of that title,
and to carry out section 134 of that title--
(A) $37,476,819,674 for fiscal year 2013;
and
(B) $37,798,000,000 for fiscal year 2014.
(2) Transportation infrastructure finance and
innovation program.--For credit assistance under the
transportation infrastructure finance and innovation
program under chapter 6 of title 23, United States
Code--
(A) $750,000,000 for fiscal year 2013; and
(B) $1,000,000,000 for fiscal year 2014.
(3) Federal lands and tribal transportation
programs.--
(A) Tribal transportation program.--For the
tribal transportation program under section 202
of title 23, United States Code, $450,000,000
for each of fiscal years 2013 and 2014.
(B) Federal lands transportation program.--
For the Federal lands transportation program
under section 203 of title 23, United States
Code, $300,000,000 for each of fiscal years
2013 and 2014, of which $240,000,000 of the
amount made available for each fiscal year
shall be the amount for the National Park
Service and $30,000,000 of the amount made
available for each fiscal year shall be the
amount for the United States Fish and Wildlife
Service.
(C) Federal lands access program.--For the
Federal lands access program under section 204
of title 23, United States Code, $250,000,000
for each of fiscal years 2013 and 2014.
(4) Territorial and puerto rico highway program.--
For the territorial and Puerto Rico highway program
under section 165 of title 23, United States Code,
$190,000,000 for each of fiscal years 2013 and 2014.
(b) Disadvantaged Business Enterprises.--
(1) Findings.--Congress finds that--
(A) while significant progress has occurred
due to the establishment of the disadvantaged
business enterprise program, discrimination and
related barriers continue to pose significant
obstacles for minority- and women-owned
businesses seeking to do business in federally-
assisted surface transportation markets across
the United States;
(B) the continuing barriers described in
subparagraph (A) merit the continuation of the
disadvantaged business enterprise program;
(C) Congress has received and reviewed
testimony and documentation of race and gender
discrimination from numerous sources, including
congressional hearings and roundtables,
scientific reports, reports issued by public
and private agencies, news stories, reports of
discrimination by organizations and
individuals, and discrimination lawsuits, which
show that race- and gender-neutral efforts
alone are insufficient to address the problem;
(D) the testimony and documentation
described in subparagraph (C) demonstrate that
discrimination across the United States poses a
barrier to full and fair participation in
surface transportation-related businesses of
women business owners and minority business
owners and has impacted firm development and
many aspects of surface transportation-related
business in the public and private markets; and
(E) the testimony and documentation
described in subparagraph (C) provide a strong
basis that there is a compelling need for the
continuation of the disadvantaged business
enterprise program to address race and gender
discrimination in surface transportation-
related business.
(2) Definitions.--In this subsection, the following
definitions apply:
(A) Small business concern.--
(i) In general.--The term ``small
business concern'' means a small
business concern (as the term is used
in section 3 of the Small Business Act
(15 U.S.C. 632)).
(ii) Exclusions.--The term ``small
business concern'' does not include any
concern or group of concerns controlled
by the same socially and economically
disadvantaged individual or individuals
that have average annual gross receipts
during the preceding 3 fiscal years in
excess of $22,410,000, as adjusted
annually by the Secretary for
inflation.
(B) Socially and economically disadvantaged
individuals.--The term ``socially and
economically disadvantaged individuals'' has
the meaning given the term in section 8(d) of
the Small Business Act (15 U.S.C. 637(d)) and
relevant subcontracting regulations issued
pursuant to that Act, except that women shall
be presumed to be socially and economically
disadvantaged individuals for purposes of this
subsection.
(3) Amounts for small business concerns.--Except to
the extent that the Secretary determines otherwise, not
less than 10 percent of the amounts made available for
any program under divisions A and B of this Act and
section 403 of title 23, United States Code, shall be
expended through small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(4) Annual listing of disadvantaged business
enterprises.--Each State shall annually--
(A) survey and compile a list of the small
business concerns referred to in paragraph (2)
in the State, including the location of the
small business concerns in the State; and
(B) notify the Secretary, in writing, of
the percentage of the small business concerns
that are controlled by--
(i) women;
(ii) socially and economically
disadvantaged individuals (other than
women); and
(iii) individuals who are women and
are otherwise socially and economically
disadvantaged individuals.
(5) Uniform certification.--
(A) In general.--The Secretary shall
establish minimum uniform criteria for use by
State governments in certifying whether a
concern qualifies as a small business concern
for the purpose of this subsection.
(B) Inclusions.--The minimum uniform
criteria established under subparagraph (A)
shall include, with respect to a potential
small business concern--
(i) on-site visits;
(ii) personal interviews with
personnel;
(iii) issuance or inspection of
licenses;
(iv) analyses of stock ownership;
(v) listings of equipment;
(vi) analyses of bonding capacity;
(vii) listings of work completed;
(viii) examination of the resumes
of principal owners;
(ix) analyses of financial
capacity; and
(x) analyses of the type of work
preferred.
(6) Reporting.--The Secretary shall establish
minimum requirements for use by State governments in
reporting to the Secretary--
(A) information concerning disadvantaged
business enterprise awards, commitments, and
achievements; and
(B) such other information as the Secretary
determines to be appropriate for the proper
monitoring of the disadvantaged business
enterprise program.
(7) Compliance with court orders.--Nothing in this
subsection limits the eligibility of an individual or
entity to receive funds made available under divisions
A and B of this Act and section 403 of title 23, United
States Code, if the entity or person is prevented, in
whole or in part, from complying with paragraph (2)
because a Federal court issues a final order in which
the court finds that a requirement or the
implementation of paragraph (2) is unconstitutional.
SEC. 1102. OBLIGATION CEILING.
(a) General Limitation.--Subject to subsection (e), and
notwithstanding any other provision of law, the obligations for
Federal-aid highway and highway safety construction programs
shall not exceed--
(1) $39,699,000,000 for fiscal year 2013; and
(2) $40,256,000,000 for fiscal year 2014.
(b) Exceptions.--The limitations under subsection (a) shall
not apply to obligations under or for--
(1) section 125 of title 23, United States Code;
(2) section 147 of the Surface Transportation
Assistance Act of 1978 (23 U.S.C. 144 note; 92 Stat.
2714);
(3) section 9 of the Federal-Aid Highway Act of
1981 (95 Stat. 1701);
(4) subsections (b) and (j) of section 131 of the
Surface Transportation Assistance Act of 1982 (96 Stat.
2119);
(5) subsections (b) and (c) of section 149 of the
Surface Transportation and Uniform Relocation
Assistance Act of 1987 (101 Stat. 198);
(6) sections 1103 through 1108 of the Intermodal
Surface Transportation Efficiency Act of 1991 (105
Stat. 2027);
(7) section 157 of title 23, United States Code (as
in effect on June 8, 1998);
(8) section 105 of title 23, United States Code (as
in effect for fiscal years 1998 through 2004, but only
in an amount equal to $639,000,000 for each of those
fiscal years);
(9) Federal-aid highway programs for which
obligation authority was made available under the
Transportation Equity Act for the 21st Century (112
Stat. 107) or subsequent Acts for multiple years or to
remain available until expended, but only to the extent
that the obligation authority has not lapsed or been
used;
(10) section 105 of title 23, United States Code
(but, for each of fiscal years 2005 through 2011, only
in an amount equal to $639,000,000 for each of those
fiscal years);
(11) section 1603 of SAFETEA-LU (23 U.S.C. 118
note; 119 Stat. 1248), to the extent that funds
obligated in accordance with that section were not
subject to a limitation on obligations at the time at
which the funds were initially made available for
obligation; and
(12) section 119 of title 23, United States Code
(but, for each of fiscal years 2013 through 2014, only
in an amount equal to $639,000,000 for each of those
fiscal years).
(c) Distribution of Obligation Authority.--For each of
fiscal years 2013 through 2014, the Secretary--
(1) shall not distribute obligation authority
provided by subsection (a) for the fiscal year for--
(A) amounts authorized for administrative
expenses and programs by section 104(a) of
title 23, United States Code; and
(B) amounts authorized for the Bureau of
Transportation Statistics;
(2) shall not distribute an amount of obligation
authority provided by subsection (a) that is equal to
the unobligated balance of amounts--
(A) made available from the Highway Trust
Fund (other than the Mass Transit Account) for
Federal-aid highway and highway safety
construction programs for previous fiscal years
the funds for which are allocated by the
Secretary (or apportioned by the Secretary
under sections 202 or 204 of title 23, United
States Code); and
(B) for which obligation authority was
provided in a previous fiscal year;
(3) shall determine the proportion that--
(A) the obligation authority provided by
subsection (a) for the fiscal year, less the
aggregate of amounts not distributed under
paragraphs (1) and (2) of this subsection;
bears to
(B) the total of the sums authorized to be
appropriated for the Federal-aid highway and
highway safety construction programs (other
than sums authorized to be appropriated for
provisions of law described in paragraphs (1)
through (11) of subsection (b) and sums
authorized to be appropriated for section 119
of title 23, United States Code, equal to the
amount referred to in subsection (b)(12) for
the fiscal year), less the aggregate of the
amounts not distributed under paragraphs (1)
and (2) of this subsection;
(4) shall distribute the obligation authority
provided by subsection (a), less the aggregate amounts
not distributed under paragraphs (1) and (2), for each
of the programs (other than programs to which paragraph
(1) applies) that are allocated by the Secretary under
this Act and title 23, United States Code, or
apportioned by the Secretary under sections 202 or 204
of that title, by multiplying--
(A) the proportion determined under
paragraph (3); by
(B) the amounts authorized to be
appropriated for each such program for the
fiscal year; and
(5) shall distribute the obligation authority
provided by subsection (a), less the aggregate amounts
not distributed under paragraphs (1) and (2) and the
amounts distributed under paragraph (4), for Federal-
aid highway and highway safety construction programs
that are apportioned by the Secretary under title 23,
United States Code (other than the amounts apportioned
for the national highway performance program in section
119 of title 23, United States Code, that are exempt
from the limitation under subsection (b)(12) and the
amounts apportioned under section 204 of that title) in
the proportion that--
(A) amounts authorized to be appropriated
for the programs that are apportioned under
title 23, United States Code, to each State for
the fiscal year; bears to
(B) the total of the amounts authorized to
be appropriated for the programs that are
apportioned under title 23, United States Code,
to all States for the fiscal year.
(d) Redistribution of Unused Obligation Authority.--
Notwithstanding subsection (c), the Secretary shall, after
August 1 of each of fiscal years 2013 through 2014--
(1) revise a distribution of the obligation
authority made available under subsection (c) if an
amount distributed cannot be obligated during that
fiscal year; and
(2) redistribute sufficient amounts to those States
able to obligate amounts in addition to those
previously distributed during that fiscal year, giving
priority to those States having large unobligated
balances of funds apportioned under sections 144 (as in
effect on the day before the date of enactment of this
Act) and 104 of title 23, United States Code.
(e) Applicability of Obligation Limitations to
Transportation Research Programs.--
(1) In general.--Except as provided in paragraph
(2), obligation limitations imposed by subsection (a)
shall apply to contract authority for transportation
research programs carried out under--
(A) chapter 5 of title 23, United States
Code; and
(B) division E of this Act.
(2) Exception.--Obligation authority made available
under paragraph (1) shall--
(A) remain available for a period of 4
fiscal years; and
(B) be in addition to the amount of any
limitation imposed on obligations for Federal-
aid highway and highway safety construction
programs for future fiscal years.
(f) Redistribution of Certain Authorized Funds.--
(1) In general.--Not later than 30 days after the
date of distribution of obligation authority under
subsection (c) for each of fiscal years 2013 through
2014, the Secretary shall distribute to the States any
funds (excluding funds authorized for the program under
section 202 of title 23, United States Code) that--
(A) are authorized to be appropriated for
the fiscal year for Federal-aid highway
programs; and
(B) the Secretary determines will not be
allocated to the States (or will not be
apportioned to the States under section 204 of
title 23, United States Code), and will not be
available for obligation, for the fiscal year
because of the imposition of any obligation
limitation for the fiscal year.
(2) Ratio.--Funds shall be distributed under
paragraph (1) in the same proportion as the
distribution of obligation authority under subsection
(c)(5).
(3) Availability.--Funds distributed to each State
under paragraph (1) shall be available for any purpose
described in section 133(c) of title 23, United States
Code.
SEC. 1103. DEFINITIONS.
(a) Definitions.--Section 101(a) of title 23, United States
Code, is amended--
(1) by striking paragraphs (6), (7), (9), (12),
(19), (20), (24), (25), (26), (28), (38), and (39);
(2) by redesignating paragraphs (2), (3), (4), (5),
(8), (13), (14), (15), (16), (17), (18), (21), (22),
(23), (27), (29), (30), (31), (32), (33), (34), (35),
(36), and (37) as paragraphs (3), (4), (5), (6), (9),
(12), (13), (14), (15), (16), (17), (18), (19), (20),
(21), (22), (23), (24), (25), (26), (28), (29), (33),
and (34), respectively;
(3) by inserting after paragraph (1) the following:
``(2) Asset management.--The term `asset
management' means a strategic and systematic process of
operating, maintaining, and improving physical assets,
with a focus on both engineering and economic analysis
based upon quality information, to identify a
structured sequence of maintenance, preservation,
repair, rehabilitation, and replacement actions that
will achieve and sustain a desired state of good repair
over the lifecycle of the assets at minimum practicable
cost.'';
(4) in paragraph (4) (as redesignated by paragraph
(2))--
(A) in the matter preceding subparagraph
(A), by inserting ``or any project eligible for
assistance under this title'' after ``of a
highway'';
(B) by striking subparagraph (A) and
inserting the following:
``(A) preliminary engineering, engineering,
and design-related services directly relating
to the construction of a highway project,
including engineering, design, project
development and management, construction
project management and inspection, surveying,
mapping (including the establishment of
temporary and permanent geodetic control in
accordance with specifications of the National
Oceanic and Atmospheric Administration), and
architectural-related services;'';
(C) in subparagraph (B)--
(i) by inserting
``reconstruction,'' before
``resurfacing''; and
(ii) by striking ``and
rehabilitation'' and inserting
``rehabilitation, and preservation'';
(D) in subparagraph (E) by striking
``railway'' and inserting ``railway-highway'';
and
(E) in subparagraph (F) by striking
``obstacles'' and inserting ``hazards'';
(5) in paragraph (6) (as so redesignated)--
(A) by inserting ``public'' before
``highway eligible''; and
(B) by inserting ``functionally'' before
``classified'';
(6) by inserting after paragraph (6) (as so
redesignated) the following:
``(7) Federal lands access transportation
facility.--The term `Federal Lands access
transportation facility' means a public highway, road,
bridge, trail, or transit system that is located on, is
adjacent to, or provides access to Federal lands for
which title or maintenance responsibility is vested in
a State, county, town, township, tribal, municipal, or
local government.
``(8) Federal lands transportation facility.--The
term `Federal lands transportation facility' means a
public highway, road, bridge, trail, or transit system
that is located on, is adjacent to, or provides access
to Federal lands for which title and maintenance
responsibility is vested in the Federal Government, and
that appears on the national Federal lands
transportation facility inventory described in section
203(c).'';
(7) in paragraph (11)(B) by inserting ``including
public roads on dams'' after ``drainage structure'';
(8) in paragraph (14) (as so redesignated)--
(A) by striking ``as a'' and inserting ``as
an air quality''; and
(B) by inserting ``air quality'' before
``attainment area'';
(9) in paragraph (18) (as so redesignated) by
striking ``an undertaking to construct a particular
portion of a highway, or if the context so implies, the
particular portion of a highway so constructed or any
other undertaking'' and inserting ``any undertaking'';
(10) in paragraph (19) (as so redesignated)--
(A) by striking ``the State transportation
department and''; and
(B) by inserting ``and the recipient''
after ``Secretary'';
(11) by striking paragraph (23) (as so
redesignated) and inserting the following:
``(23) Safety improvement project.--The term
`safety improvement project' means a strategy,
activity, or project on a public road that is
consistent with the State strategic highway safety plan
and corrects or improves a roadway feature that
constitutes a hazard to road users or addresses a
highway safety problem.'';
(12) by inserting after paragraph (26) (as so
redesignated) the following:
``(27) State strategic highway safety plan.--The
term `State strategic highway safety plan' has the same
meaning given such term in section 148(a).'';
(13) by striking paragraph (29) (as so
redesignated) and inserting the following:
``(29) Transportation alternatives.--The term
`transportation alternatives' means any of the
following activities when carried out as part of any
program or project authorized or funded under this
title, or as an independent program or project related
to surface transportation:
``(A) Construction, planning, and design of
on-road and off-road trail facilities for
pedestrians, bicyclists, and other nonmotorized
forms of transportation, including sidewalks,
bicycle infrastructure, pedestrian and bicycle
signals, traffic calming techniques, lighting
and other safety-related infrastructure, and
transportation projects to achieve compliance
with the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.).
``(B) Construction, planning, and design of
infrastructure-related projects and systems
that will provide safe routes for non-drivers,
including children, older adults, and
individuals with disabilities to access daily
needs.
``(C) Conversion and use of abandoned
railroad corridors for trails for pedestrians,
bicyclists, or other nonmotorized
transportation users.
``(D) Construction of turnouts, overlooks,
and viewing areas.
``(E) Community improvement activities,
including--
``(i) inventory, control, or
removal of outdoor advertising;
``(ii) historic preservation and
rehabilitation of historic
transportation facilities;
``(iii) vegetation management
practices in transportation rights-of-
way to improve roadway safety, prevent
against invasive species, and provide
erosion control; and
``(iv) archaeological activities
relating to impacts from implementation
of a transportation project eligible
under this title.
``(F) Any environmental mitigation
activity, including pollution prevention and
pollution abatement activities and mitigation
to--
``(i) address stormwater
management, control, and water
pollution prevention or abatement
related to highway construction or due
to highway runoff, including activities
described in sections 133(b)(11),
328(a), and 329; or
``(ii) reduce vehicle-caused
wildlife mortality or to restore and
maintain connectivity among terrestrial
or aquatic habitats.''; and
(14) by inserting after paragraph (29) (as so
redesignated) the following:
``(30) Transportation systems management and
operations.--
``(A) In general.--The term `transportation
systems management and operations' means
integrated strategies to optimize the
performance of existing infrastructure through
the implementation of multimodal and
intermodal, cross-jurisdictional systems,
services, and projects designed to preserve
capacity and improve security, safety, and
reliability of the transportation system.
``(B) Inclusions.--The term `transportation
systems management and operations' includes--
``(i) actions such as traffic
detection and surveillance, corridor
management, freeway management,
arterial management, active
transportation and demand management,
work zone management, emergency
management, traveler information
services, congestion pricing, parking
management, automated enforcement,
traffic control, commercial vehicle
operations, freight management, and
coordination of highway, rail, transit,
bicycle, and pedestrian operations; and
``(ii) coordination of the
implementation of regional
transportation system management and
operations investments (such as traffic
incident management, traveler
information services, emergency
management, roadway weather management,
intelligent transportation systems,
communication networks, and information
sharing systems) requiring agreements,
integration, and interoperability to
achieve targeted system performance,
reliability, safety, and customer
service levels.
``(31) Tribal transportation facility.--The term
`tribal transportation facility' means a public
highway, road, bridge, trail, or transit system that is
located on or provides access to tribal land and
appears on the national tribal transportation facility
inventory described in section 202(b)(1).
``(32) Truck stop electrification system.--The term
`truck stop electrification system' means a system that
delivers heat, air conditioning, electricity, or
communications to a heavy-duty vehicle.''.
(b) Sense of Congress.--Section 101(c) of title 23, United
States Code, is amended by striking ``system'' and inserting
``highway''.
SEC. 1104. NATIONAL HIGHWAY SYSTEM.
(a) In General.--Section 103 of title 23, United States
Code, is amended to read as follows:
``Sec. 103. National Highway System
``(a) In General.--For the purposes of this title, the
Federal-aid system is the National Highway System, which
includes the Interstate System.
``(b) National Highway System.--
``(1) Description.--The National Highway System
consists of the highway routes and connections to
transportation facilities that shall--
``(A) serve major population centers,
international border crossings, ports,
airports, public transportation facilities, and
other intermodal transportation facilities and
other major travel destinations;
``(B) meet national defense requirements;
and
``(C) serve interstate and interregional
travel and commerce.
``(2) Components.--The National Highway System
described in paragraph (1) consists of the following:
``(A) The National Highway System depicted
on the map submitted by the Secretary of
Transportation to Congress with the report
entitled `Pulling Together: The National
Highway System and its Connections to Major
Intermodal Terminals' and dated May 24, 1996,
and modifications approved by the Secretary
before the date of enactment of the MAP-21.
``(B) Other urban and rural principal
arterial routes, and border crossings on those
routes, that were not included on the National
Highway System before the date of enactment of
the MAP-21.
``(C) Other connector highways (including
toll facilities) that were not included in the
National Highway System before the date of
enactment of the MAP-21 but that provide motor
vehicle access between arterial routes on the
National Highway System and a major intermodal
transportation facility.
``(D) A strategic highway network that--
``(i) consists of a network of
highways that are important to the
United States strategic defense policy,
that provide defense access,
continuity, and emergency capabilities
for the movement of personnel,
materials, and equipment in both
peacetime and wartime, and that were
not included on the National Highway
System before the date of enactment of
the MAP-21;
``(ii) may include highways on or
off the Interstate System; and
``(iii) shall be designated by the
Secretary, in consultation with
appropriate Federal agencies and the
States.
``(E) Major strategic highway network
connectors that--
``(i) consist of highways that
provide motor vehicle access between
major military installations and
highways that are part of the strategic
highway network but were not included
on the National Highway System before
the date of enactment of the MAP-21;
and
``(ii) shall be designated by the
Secretary, in consultation with
appropriate Federal agencies and the
States.
``(3) Modifications to nhs.--
``(A) In general.--The Secretary may make
any modification, including any modification
consisting of a connector to a major intermodal
terminal, to the National Highway System that
is proposed by a State if the Secretary
determines that the modification--
``(i) meets the criteria
established for the National Highway
System under this title after the date
of enactment of the MAP-21; and
``(ii) enhances the national
transportation characteristics of the
National Highway System.
``(B) Cooperation.--
``(i) In general.--In proposing a
modification under this paragraph, a
State shall cooperate with local and
regional officials.
``(ii) Urbanized areas.--In an
urbanized area, the local officials
shall act through the metropolitan
planning organization designated for
the area under section 134.
``(c) Interstate System.--
``(1) Description.--
``(A) In general.--The Dwight D. Eisenhower
National System of Interstate and Defense
Highways within the United States (including
the District of Columbia and Puerto Rico)
consists of highways designed, located, and
selected in accordance with this paragraph.
``(B) Design.--
``(i) In general.--Except as
provided in clause (ii), highways on
the Interstate System shall be designed
in accordance with the standards of
section 109(b).
``(ii) Exception.--Highways on the
Interstate System in Alaska and Puerto
Rico shall be designed in accordance
with such geometric and construction
standards as are adequate for current
and probable future traffic demands and
the needs of the locality of the
highway.
``(C) Location.--Highways on the Interstate
System shall be located so as--
``(i) to connect by routes, as
direct as practicable, the principal
metropolitan areas, cities, and
industrial centers;
``(ii) to serve the national
defense; and
``(iii) to the maximum extent
practicable, to connect at suitable
border points with routes of
continental importance in Canada and
Mexico.
``(D) Selection of routes.--To the maximum
extent practicable, each route of the
Interstate System shall be selected by joint
action of the State transportation departments
of the State in which the route is located and
the adjoining States, in cooperation with local
and regional officials, and subject to the
approval of the Secretary.
``(2) Maximum mileage.--The mileage of highways on
the Interstate System shall not exceed 43,000 miles,
exclusive of designations under paragraph (4).
``(3) Modifications.--The Secretary may approve or
require modifications to the Interstate System in a
manner consistent with the policies and procedures
established under this subsection.
``(4) Interstate system designations.--
``(A) Additions.--If the Secretary
determines that a highway on the National
Highway System meets all standards of a highway
on the Interstate System and that the highway
is a logical addition or connection to the
Interstate System, the Secretary may, upon the
affirmative recommendation of the State or
States in which the highway is located,
designate the highway as a route on the
Interstate System.
``(B) Designations as future interstate
system routes.--
``(i) In general.--Subject to
clauses (ii) through (vi), if the
Secretary determines that a highway on
the National Highway System would be a
logical addition or connection to the
Interstate System and would qualify for
designation as a route on the
Interstate System under subparagraph
(A) if the highway met all standards of
a highway on the Interstate System, the
Secretary may, upon the affirmative
recommendation of the State or States
in which the highway is located,
designate the highway as a future
Interstate System route.
``(ii) Written agreement.--A
designation under clause (i) shall be
made only upon the written agreement of
each State described in that clause
that the highway will be constructed to
meet all standards of a highway on the
Interstate System by not later than the
date that is 25 years after the date of
the agreement.
``(iii) Failure to complete
construction.--If a State described in
clause (i) has not substantially
completed the construction of a highway
designated under this subparagraph by
the date specified in clause (ii), the
Secretary shall remove the designation
of the highway as a future Interstate
System route.
``(iv) Effect of removal.--Removal
of the designation of a highway under
clause (iii) shall not preclude the
Secretary from designating the highway
as a route on the Interstate System
under subparagraph (A) or under any
other provision of law providing for
addition to the Interstate System.
``(v) Retroactive effect.--An
agreement described in clause (ii) that
is entered into before August 10, 2005,
shall be deemed to include the 25-year
time limitation described in that
clause, regardless of any earlier
construction completion date in the
agreement.
``(vi) References.--No law, rule,
regulation, map, document, or other
record of the United States, or of any
State or political subdivision of a
State, shall refer to any highway
designated as a future Interstate
System route under this subparagraph,
and no such highway shall be signed or
marked, as a highway on the Interstate
System, until such time as the
highway--
``(I) is constructed to the
geometric and construction
standards for the Interstate
System; and
``(II) has been designated
as a route on the Interstate
System.
``(C) Financial responsibility.--Except as
provided in this title, the designation of a
highway under this paragraph shall create no
additional Federal financial responsibility
with respect to the highway.
``(5) Exemption of interstate system.--
``(A) In general.--Except as provided in
subparagraph (B), the Interstate System shall
not be considered to be a historic site under
section 303 of title 49 or section 138 of this
title, regardless of whether the Interstate
System or portions or elements of the
Interstate System are listed on, or eligible
for listing on, the National Register of
Historic Places.
``(B) Individual elements.--Subject to
subparagraph (C)--
``(i) the Secretary shall
determine, through the administrative
process established for exempting the
Interstate System from section 106 of
the National Historic Preservation Act
(16 U.S.C. 470f), those individual
elements of the Interstate System that
possess national or exceptional
historic significance (such as a
historic bridge or a highly significant
engineering feature); and
``(ii) those elements shall be
considered to be historic sites under
section 303 of title 49 or section 138
of this title, as applicable.
``(C) Construction, maintenance,
restoration, and rehabilitation activities.--
Subparagraph (B) does not prohibit a State from
carrying out construction, maintenance,
preservation, restoration, or rehabilitation
activities for a portion of the Interstate
System referred to in subparagraph (B) upon
compliance with section 303 of title 49 or
section 138 of this title, as applicable, and
section 106 of the National Historic
Preservation Act (16 U.S.C. 470f).''.
(b) Inclusion of Certain Route Segments on Interstate
System.--
(1) In general.--Section 1105(e)(5)(A) of the
Intermodal Surface Transportation Efficiency Act of
1991 (105 Stat. 2031; 109 Stat. 597; 115 Stat. 872) is
amended--
(A) in the first sentence, by striking
``and in subsections (c)(18) and (c)(20)'' and
inserting ``, in subsections (c)(18) and
(c)(20), and in subparagraphs (A)(iii) and (B)
of subsection (c)(26)''; and
(B) in the second sentence, by striking
``that the segment'' and all that follows
through the period and inserting ``that the
segment meets the Interstate System design
standards approved by the Secretary under
section 109(b) of title 23, United States Code,
and is planned to connect to an existing
Interstate System segment by the date that is
25 years after the date of enactment of the
MAP-21.''.
(2) Route designation.--Section 1105(e)(5)(C)(i) of
the Intermodal Surface Transportation Efficiency Act of
1991 (105 Stat. 2032; 109 Stat. 598) is amended by
adding at the end the following: ``The routes referred
to subparagraphs (A)(iii) and (B)(i) of subsection
(c)(26) are designated as Interstate Route I-11.''.
(c) Conforming Amendments.--
(1) Analysis.--The analysis for chapter 1 of title
23, United States Code, is amended by striking the item
relating to section 103 and inserting the following:
``103. National Highway System.''.
(2) Section 113.--Section 113 of title 23, United
States Code, is amended--
(A) in subsection (a) by striking ``the
Federal-aid systems'' and inserting ``Federal-
aid highways''; and
(B) in subsection (b), in the first
sentence, by striking ``of the Federal-aid
systems'' and inserting ``Federal-aid
highway''.
(3) Section 123.--Section 123(a) of title 23,
United States Code, is amended in the first sentence by
striking ``Federal-aid system'' and inserting
``Federal-aid highway''.
(4) Section 217.--Section 217(b) of title 23,
United States Code, is amended in the subsection
heading by striking ``National Highway System'' and
inserting ``National Highway Performance Program''.
(5) Section 304.--Section 304 of title 23, United
States Code, is amended in the first sentence by
striking ``the Federal-aid highway systems'' and
inserting ``Federal-aid highways''.
(6) Section 317.--Section 317(d) of title 23,
United States Code, is amended by striking ``system''
and inserting ``highway''.
SEC. 1105. APPORTIONMENT.
(a) In General.--Section 104 of title 23, United States
Code, is amended to read as follows:
``Sec. 104. Apportionment
``(a) Administrative Expenses.--
``(1) In general.--There are authorized to be
appropriated from the Highway Trust Fund (other than
the Mass Transit Account) to be made available to the
Secretary for administrative expenses of the Federal
Highway Administration--
``(A) $454,180,326 for fiscal year 2013;
and
``(B) $440,000,000 for fiscal year 2014.
``(2) Purposes.--The amounts authorized to be
appropriated by this subsection shall be used--
``(A) to administer the provisions of law
to be funded from appropriations for the
Federal-aid highway program and programs
authorized under chapter 2;
``(B) to make transfers of such sums as the
Secretary determines to be appropriate to the
Appalachian Regional Commission for
administrative activities associated with the
Appalachian development highway system; and
``(C) to reimburse, as appropriate, the
Office of Inspector General of the Department
of Transportation for the conduct of annual
audits of financial statements in accordance
with section 3521 of title 31.
``(3) Availability.--The amounts made available
under paragraph (1) shall remain available until
expended.
``(b) Division of State Apportionments Among Programs.--The
Secretary shall distribute the amount apportioned to a State
for a fiscal year under subsection (c) among the national
highway performance program, the surface transportation
program, the highway safety improvement program, and the
congestion mitigation and air quality improvement program, and
to carry out section 134 as follows:
``(1) National highway performance program.--For
the national highway performance program, 63.7 percent
of the amount remaining after distributing amounts
under paragraphs (4) and (5).
``(2) Surface transportation program.--For the
surface transportation program, 29.3 percent of the
amount remaining after distributing amounts under
paragraphs (4) and (5).
``(3) Highway safety improvement program.--For the
highway safety improvement program, 7 percent of the
amount remaining after distributing amounts under
paragraphs (4) and (5).
``(4) Congestion mitigation and air quality
improvement program.--For the congestion mitigation and
air quality improvement program, an amount determined
by multiplying the amount determined for the State
under subsection (c) by the proportion that--
``(A) the amount apportioned to the State
for the congestion mitigation and air quality
improvement program for fiscal year 2009; bears
to
``(B) the total amount of funds apportioned
to the State for that fiscal year for the
programs referred to in section 105(a)(2)
(except for the high priority projects program
referred to in section 105(a)(2)(H)), as in
effect on the day before the date of enactment
of the MAP-21.
``(5) Metropolitan planning.--To carry out section
134, an amount determined by multiplying the amount
determined for the State under subsection (c) by the
proportion that--
``(A) the amount apportioned to the State
to carry out section 134 for fiscal year 2009;
bears to
``(B) the total amount of funds apportioned
to the State for that fiscal year for the
programs referred to in section 105(a)(2)
(except for the high priority projects program
referred to in section 105(a)(2)(H)), as in
effect on the day before the date of enactment
of the MAP-21.
``(c) Calculation of State Amounts.--
``(1) For fiscal year 2013.--
``(A) Calculation of amount.--For fiscal
year 2013, the amount for each State of
combined apportionments for the national
highway performance program under section 119,
the surface transportation program under
section 133, the highway safety improvement
program under section 148, the congestion
mitigation and air quality improvement program
under section 149, and to carry out section 134
shall be equal to the combined amount of
apportionments that the State received for
fiscal year 2012.
``(B) State apportionment.--On October 1 of
such fiscal year, the Secretary shall apportion
the sum authorized to be appropriated for
expenditure on the national highway performance
program under section 119, the surface
transportation program under section 133, the
highway safety improvement program under
section 148, the congestion mitigation and air
quality improvement program under section 149,
and to carry out section 134 in accordance with
subparagraph (A).
``(2) For fiscal year 2014.--
``(A) State share.--For fiscal year 2014,
the amount for each State of combined
apportionments for the national highway
performance program under section 119, the
surface transportation program under section
133, the highway safety improvement program
under section 148, the congestion mitigation
and air quality improvement program under
section 149, and to carry out section 134 shall
be determined as follows:
``(i) Initial amount.--The initial
amount for each State shall be
determined by multiplying the total
amount available for apportionment by
the share for each State which shall be
equal to the proportion that--
``(I) the amount of
apportionments that the State
received for fiscal year 2012;
bears to
``(II) the amount of those
apportionments received by all
States for that fiscal year.
``(ii) Adjustments to amounts.--The
initial amounts resulting from the
calculation under clause (i) shall be
adjusted to ensure that, for each
State, the amount of combined
apportionments for the programs shall
not be less than 95 percent of the
estimated tax payments attributable to
highway users in the State paid into
the Highway Trust Fund (other than the
Mass Transit Account) in the most
recent fiscal year for which data are
available.
``(B) State apportionment.--On October 1 of
such fiscal year, the Secretary shall apportion
the sum authorized to be appropriated for
expenditure on the national highway performance
program under section 119, the surface
transportation program under section 133, the
highway safety improvement program under
section 148, the congestion mitigation and air
quality improvement program under section 149,
and to carry out section 134 in accordance with
subparagraph (A).
``(d) Metropolitan Planning.--
``(1) Use of amounts.--
``(A) Use.--
``(i) In general.--Except as
provided in clause (ii), the amounts
apportioned to a State under subsection
(b)(5) shall be made available by the
State to the metropolitan planning
organizations responsible for carrying
out section 134 in the State.
``(ii) States receiving minimum
apportionment.--A State that received
the minimum apportionment for use in
carrying out section 134 for fiscal
year 2009 may, subject to the approval
of the Secretary, use the funds
apportioned under subsection (b)(5) to
fund transportation planning outside of
urbanized areas.
``(B) Unused funds.--Any funds that are not
used to carry out section 134 may be made
available by a metropolitan planning
organization to the State to fund activities
under section 135.
``(2) Distribution of amounts within states.--
``(A) In general.--The distribution within
any State of the planning funds made available
to organizations under paragraph (1) shall be
in accordance with a formula that--
``(i) is developed by each State
and approved by the Secretary; and
``(ii) takes into consideration, at
a minimum, population, status of
planning, attainment of air quality
standards, metropolitan area
transportation needs, and other factors
necessary to provide for an appropriate
distribution of funds to carry out
section 134 and other applicable
requirements of Federal law.
``(B) Reimbursement.--Not later than 15
business days after the date of receipt by a
State of a request for reimbursement of
expenditures made by a metropolitan planning
organization for carrying out section 134, the
State shall reimburse, from amounts distributed
under this paragraph to the metropolitan
planning organization by the State, the
metropolitan planning organization for those
expenditures.
``(3) Determination of population figures.--For the
purpose of determining population figures under this
subsection, the Secretary shall use the latest
available data from the decennial census conducted
under section 141(a) of title 13, United States Code.
``(e) Certification of Apportionments.--
``(1) In general.--The Secretary shall--
``(A) on October 1 of each fiscal year,
certify to each of the State transportation
departments the amount that has been
apportioned to the State under this section for
the fiscal year; and
``(B) to permit the States to develop
adequate plans for the use of amounts
apportioned under this section, advise each
State of the amount that will be apportioned to
the State under this section for a fiscal year
not later than 90 days before the beginning of
the fiscal year for which the sums to be
apportioned are authorized.
``(2) Notice to states.--If the Secretary has not
made an apportionment under this section for a fiscal
year beginning after September 30, 1998, by not later
than the date that is the twenty-first day of that
fiscal year, the Secretary shall submit, by not later
than that date, to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Environment and Public Works of the
Senate, a written statement of the reason for not
making the apportionment in a timely manner.
``(3) Apportionment calculations.--
``(A) In general.--The calculation of
official apportionments of funds to the States
under this title is a primary responsibility of
the Department and shall be carried out only by
employees (and not contractors) of the
Department.
``(B) Prohibition on use of funds to hire
contractors.--None of the funds made available
under this title shall be used to hire
contractors to calculate the apportionments of
funds to States.
``(f) Transfer of Highway and Transit Funds.--
``(1) Transfer of highway funds for transit
projects.--
``(A) In general.--Subject to subparagraph
(B), amounts made available for transit
projects or transportation planning under this
title may be transferred to and administered by
the Secretary in accordance with chapter 53 of
title 49.
``(B) Non-federal share.--The provisions of
this title relating to the non-Federal share
shall apply to the amounts transferred under
subparagraph (A).
``(2) Transfer of transit funds for highway
projects.--
``(A) In general.--Subject to subparagraph
(B), amounts made available for highway
projects or transportation planning under
chapter 53 of title 49 may be transferred to
and administered by the Secretary in accordance
with this title.
``(B) Non-federal share.--The provisions of
chapter 53 of title 49 relating to the non-
Federal share shall apply to amounts
transferred under subparagraph (A).
``(3) Transfer of funds among states or to federal
highway administration.--
``(A) In general.--Subject to subparagraph
(B), the Secretary may, at the request of a
State, transfer amounts apportioned or
allocated under this title to the State to
another State, or to the Federal Highway
Administration, for the purpose of funding 1 or
more projects that are eligible for assistance
with amounts so apportioned or allocated.
``(B) Apportionment.--The transfer shall
have no effect on any apportionment of amounts
to a State under this section.
``(C) Funds suballocated to urbanized
areas.--Amounts that are apportioned or
allocated to a State under subsection (b)(3)
(as in effect on the day before the date of
enactment of the MAP-21) or subsection (b)(2)
and attributed to an urbanized area of a State
with a population of more than 200,000
individuals under section 133(d) may be
transferred under this paragraph only if the
metropolitan planning organization designated
for the area concurs, in writing, with the
transfer request.
``(4) Transfer of obligation authority.--Obligation
authority for amounts transferred under this subsection
shall be transferred in the same manner and amount as
the amounts for the projects that are transferred under
this section.
``(g) Report to Congress.--For each fiscal year, the
Secretary shall make available to the public, in a user-
friendly format via the Internet, a report that describes--
``(1) the amount obligated, by each State, for
Federal-aid highways and highway safety construction
programs during the preceding fiscal year;
``(2) the balance, as of the last day of the
preceding fiscal year, of the unobligated apportionment
of each State by fiscal year under this section;
``(3) the balance of unobligated sums available for
expenditure at the discretion of the Secretary for such
highways and programs for the fiscal year; and
``(4) the rates of obligation of funds apportioned
or set aside under this section, according to--
``(A) program;
``(B) funding category of subcategory;
``(C) type of improvement;
``(D) State; and
``(E) sub-State geographical area,
including urbanized and rural areas, on the
basis of the population of each such area.''.
(b) Conforming Amendment.--Section 146(a) of title 23,
United States Code, is amended by striking ``sections 104(b)(l)
and 104(b)(3)'' and inserting ``section 104(b)(2)''.
SEC. 1106. NATIONAL HIGHWAY PERFORMANCE PROGRAM.
(a) In General.--Section 119 of title 23, United States
Code, is amended to read as follows:
``Sec. 119. National highway performance program
``(a) Establishment.--The Secretary shall establish and
implement a national highway performance program under this
section.
``(b) Purposes.--The purposes of the national highway
performance program shall be--
``(1) to provide support for the condition and
performance of the National Highway System;
``(2) to provide support for the construction of
new facilities on the National Highway System; and
``(3) to ensure that investments of Federal-aid
funds in highway construction are directed to support
progress toward the achievement of performance targets
established in an asset management plan of a State for
the National Highway System.
``(c) Eligible Facilities.--Except as provided in
subsection (d), to be eligible for funding apportioned under
section 104(b)(1) to carry out this section, a facility shall
be located on the National Highway System, as defined in
section 103.
``(d) Eligible Projects.--Funds apportioned to a State to
carry out the national highway performance program may be
obligated only for a project on an eligible facility that is--
``(1)(A) a project or part of a program of projects
supporting progress toward the achievement of national
performance goals for improving infrastructure
condition, safety, mobility, or freight movement on the
National Highway System; and
``(B) consistent with sections 134 and 135; and
``(2) for 1 or more of the following purposes:
``(A) Construction, reconstruction,
resurfacing, restoration, rehabilitation,
preservation, or operational improvement of
segments of the National Highway System.
``(B) Construction, replacement (including
replacement with fill material),
rehabilitation, preservation, and protection
(including scour countermeasures, seismic
retrofits, impact protection measures, security
countermeasures, and protection against extreme
events) of bridges on the National Highway
System.
``(C) Construction, replacement (including
replacement with fill material),
rehabilitation, preservation, and protection
(including impact protection measures, security
countermeasures, and protection against extreme
events) of tunnels on the National Highway
System.
``(D) Inspection and evaluation, as
described in section 144, of bridges and
tunnels on the National Highway System, and
inspection and evaluation of other highway
infrastructure assets on the National Highway
System, including signs and sign structures,
earth retaining walls, and drainage structures.
``(E) Training of bridge and tunnel
inspectors, as described in section 144.
``(F) Construction, rehabilitation, or
replacement of existing ferry boats and ferry
boat facilities, including approaches, that
connect road segments of the National Highway
System.
``(G) Construction, reconstruction,
resurfacing, restoration, rehabilitation, and
preservation of, and operational improvements
for, a Federal-aid highway not on the National
Highway System, and construction of a transit
project eligible for assistance under chapter
53 of title 49, if--
``(i) the highway project or
transit project is in the same corridor
as, and in proximity to, a fully
access-controlled highway designated as
a part of the National Highway System;
``(ii) the construction or
improvements will reduce delays or
produce travel time savings on the
fully access-controlled highway
described in clause (i) and improve
regional traffic flow; and
``(iii) the construction or
improvements are more cost-effective,
as determined by benefit-cost analysis,
than an improvement to the fully
access-controlled highway described in
clause (i).
``(H) Bicycle transportation and pedestrian
walkways in accordance with section 217.
``(I) Highway safety improvements for
segments of the National Highway System.
``(J) Capital and operating costs for
traffic and traveler information monitoring,
management, and control facilities and
programs.
``(K) Development and implementation of a
State asset management plan for the National
Highway System in accordance with this section,
including data collection, maintenance, and
integration and the cost associated with
obtaining, updating, and licensing software and
equipment required for risk-based asset
management and performance-based management.
``(L) Infrastructure-based intelligent
transportation systems capital improvements.
``(M) Environmental restoration and
pollution abatement in accordance with section
328.
``(N) Control of noxious weeds and aquatic
noxious weeds and establishment of native
species in accordance with section 329.
``(O) Environmental mitigation efforts
related to projects funded under this section,
as described in subsection (g).
``(P) Construction of publicly owned
intracity or intercity bus terminals servicing
the National Highway System.
``(e) State Performance Management.--
``(1) In general.--A State shall develop a risk-
based asset management plan for the National Highway
System to improve or preserve the condition of the
assets and the performance of the system.
``(2) Performance driven plan.--A State asset
management plan shall include strategies leading to a
program of projects that would make progress toward
achievement of the State targets for asset condition
and performance of the National Highway System in
accordance with section 150(d) and supporting the
progress toward the achievement of the national goals
identified in section 150(b).
``(3) Scope.--In developing a risk-based asset
management plan, the Secretary shall encourage States
to include all infrastructure assets within the right-
of-way corridor in such plan.
``(4) Plan contents.--A State asset management plan
shall, at a minimum, be in a form that the Secretary
determines to be appropriate and include--
``(A) a summary listing of the pavement and
bridge assets on the National Highway System in
the State, including a description of the
condition of those assets;
``(B) asset management objectives and
measures;
``(C) performance gap identification;
``(D) lifecycle cost and risk management
analysis;
``(E) a financial plan; and
``(F) investment strategies.
``(5) Requirement for plan.--Notwithstanding
section 120, with respect to the second fiscal year
beginning after the date of establishment of the
process established in paragraph (8) or any subsequent
fiscal year, if the Secretary determines that a State
has not developed and implemented a State asset
management plan consistent with this section, the
Federal share payable on account of any project or
activity carried out by the State in that fiscal year
under this section shall be 65 percent.
``(6) Certification of plan development process.--
``(A) In general.--Not later than 90 days
after the date on which a State submits a
request for approval of the process used by the
State to develop the State asset management
plan for the National Highway System, the
Secretary shall--
``(i) review the process; and
``(ii)(I) certify that the process
meets the requirements established by
the Secretary; or
``(II) deny certification and
specify actions necessary for the State
to take to correct deficiencies in the
State process.
``(B) Recertification.--Not less frequently
than once every 4 years, the Secretary shall
review and recertify that the process used by a
State to develop and maintain the State asset
management plan for the National Highway System
meets the requirements for the process, as
established by the Secretary.
``(C) Opportunity to cure.--If the
Secretary denies certification under
subparagraph (A), the Secretary shall provide
the State with--
``(i) not less than 90 days to cure
the deficiencies of the plan, during
which time period all penalties and
other legal impacts of a denial of
certification shall be stayed; and
``(ii) a written statement of the
specific actions the Secretary
determines to be necessary for the
State to cure the plan.
``(7) Performance achievement.--A State that does
not achieve or make significant progress toward
achieving the targets of the State for performance
measures described in section 150(d) for the National
Highway System for 2 consecutive reports submitted
under this paragraph shall include in the next report
submitted a description of the actions the State will
undertake to achieve the targets.
``(8) Process.--Not later than 18 months after the
date of enactment of the MAP-21, the Secretary shall,
by regulation and in consultation with State
departments of transportation, establish the process to
develop the State asset management plan described in
paragraph (1).
``(f) Interstate System and NHS Bridge Conditions.--
``(1) Condition of interstate system.--
``(A) Penalty.--If, during 2 consecutive
reporting periods, the condition of the
Interstate System, excluding bridges on the
Interstate System, in a State falls below the
minimum condition level established by the
Secretary under section 150(c)(3), the State
shall be required, during the following fiscal
year--
``(i) to obligate, from the amounts
apportioned to the State under section
104(b)(1), an amount that is not less
than the amount of funds apportioned to
the State for fiscal year 2009 under
the Interstate maintenance program for
the purposes described in this section
(as in effect on the day before the
date of enactment of the MAP-21),
except that for each year after fiscal
year 2013, the amount required to be
obligated under this clause shall be
increased by 2 percent over the amount
required to be obligated in the
previous fiscal year; and
``(ii) to transfer, from the
amounts apportioned to the State under
section 104(b)(2) (other than amounts
suballocated to metropolitan areas and
other areas of the State under section
133(d)) to the apportionment of the
State under section 104(b)(1), an
amount equal to 10 percent of the
amount of funds apportioned to the
State for fiscal year 2009 under the
Interstate maintenance program for the
purposes described in this section (as
in effect on the day before the date of
enactment of the MAP-21).
``(B) Restoration.--The obligation
requirement for the Interstate System in a
State required by subparagraph (A) for a fiscal
year shall remain in effect for each subsequent
fiscal year until such time as the condition of
the Interstate System in the State exceeds the
minimum condition level established by the
Secretary.
``(2) Condition of nhs bridges.--
``(A) Penalty.--If the Secretary determines
that, for the 3-year-period preceding the date
of the determination, more than 10 percent of
the total deck area of bridges in the State on
the National Highway System is located on
bridges that have been classified as
structurally deficient, an amount equal to 50
percent of funds apportioned to such State for
fiscal year 2009 to carry out section 144 (as
in effect the day before enactment of MAP-21)
shall be set aside from amounts apportioned to
a State for a fiscal year under section
104(b)(1) only for eligible projects on bridges
on the National Highway System.
``(B) Restoration.--The set-aside
requirement for bridges on the National Highway
System in a State under subparagraph (A) for a
fiscal year shall remain in effect for each
subsequent fiscal year until such time as less
than 10 percent of the total deck area of
bridges in the State on the National Highway
System is located on bridges that have been
classified as structurally deficient, as
determined by the Secretary.
``(g) Environmental Mitigation.--
``(1) Eligible activities.--In accordance with all
applicable Federal law (including regulations),
environmental mitigation efforts referred to in
subsection (d)(2)(O) include participation in natural
habitat and wetlands mitigation efforts relating to
projects funded under this title, which may include--
``(A) participation in mitigation banking
or other third-party mitigation arrangements,
such as--
``(i) the purchase of credits from
commercial mitigation banks;
``(ii) the establishment and
management of agency-sponsored
mitigation banks; and
``(iii) the purchase of credits or
establishment of in-lieu fee mitigation
programs;
``(B) contributions to statewide and
regional efforts to conserve, restore, enhance,
and create natural habitats and wetlands; and
``(C) the development of statewide and
regional environmental protection plans,
including natural habitat and wetland
conservation and restoration plans.
``(2) Inclusion of other activities.--The banks,
efforts, and plans described in paragraph (1) include
any such banks, efforts, and plans developed in
accordance with applicable law (including regulations).
``(3) Terms and conditions.--The following terms
and conditions apply to natural habitat and wetlands
mitigation efforts under this subsection:
``(A) Contributions to the mitigation
effort may--
``(i) take place concurrent with,
or in advance of, commitment of funding
under this title to a project or
projects; and
``(ii) occur in advance of project
construction only if the efforts are
consistent with all applicable
requirements of Federal law (including
regulations) and State transportation
planning processes.
``(B) Credits from any agency-sponsored
mitigation bank that are attributable to
funding under this section may be used only for
projects funded under this title, unless the
agency pays to the Secretary an amount equal to
the Federal funds attributable to the
mitigation bank credits the agency uses for
purposes other than mitigation of a project
funded under this title.
``(4) Preference.--At the discretion of the project
sponsor, preference shall be given, to the maximum
extent practicable, to mitigating an environmental
impact through the use of a mitigation bank, in-lieu
fee, or other third-party mitigation arrangement, if
the use of credits from the mitigation bank or in-lieu
fee, or the other third-party mitigation arrangement
for the project, is approved by the applicable Federal
agency.''.
(b) Transition Period.--
(1) In general.--Except as provided in paragraph
(2), until such date as a State has in effect an
approved asset management plan and has established
performance targets as described in sections 119 and
150 of title 23, United States Code, that will
contribute to achieving the national goals for the
condition and performance of the National Highway
System, but not later than 18 months after the date on
which the Secretary promulgates the final regulation
required under section 150(c) of that title, the
Secretary shall approve obligations of funds
apportioned to a State to carry out the national
highway performance program under section 119 of that
title, for projects that otherwise meet the
requirements of that section.
(2) Extension.--The Secretary may extend the
transition period for a State under paragraph (1) if
the Secretary determines that the State has made a good
faith effort to establish an asset management plan and
performance targets referred to in that paragraph.
(c) Conforming Amendment.--The analysis for chapter 1 of
title 23, United States Code, is amended by striking the item
relating to section 119 and inserting the following:
``119. National highway performance program.''.
SEC. 1107. EMERGENCY RELIEF.
Section 125 of title 23, United States Code, is amended to
read as follows:
``Sec. 125. Emergency relief
``(a) In General.--Subject to this section and section 120,
an emergency fund is authorized for expenditure by the
Secretary for the repair or reconstruction of highways, roads,
and trails, in any area of the United States, including Indian
reservations, that the Secretary finds have suffered serious
damage as a result of--
``(1) a natural disaster over a wide area, such as
by a flood, hurricane, tidal wave, earthquake, severe
storm, or landslide; or
``(2) catastrophic failure from any external cause.
``(b) Restriction on Eligibility.--
``(1) Definition of construction phase.--In this
subsection, the term `construction phase' means the
phase of physical construction of a highway or bridge
facility that is separate from any other identified
phases, such as planning, design, or right-of-way
phases, in the State transportation improvement
program.
``(2) Restriction.--In no case shall funds be used
under this section for the repair or reconstruction of
a bridge--
``(A) that has been permanently closed to
all vehicular traffic by the State or
responsible local official because of imminent
danger of collapse due to a structural
deficiency or physical deterioration; or
``(B) if a construction phase of a
replacement structure is included in the
approved Statewide transportation improvement
program at the time of an event described in
subsection (a).
``(c) Funding.--
``(1) In general.--Subject to the limitations
described in paragraph (2), there are authorized to be
appropriated from the Highway Trust Fund (other than
the Mass Transit Account) such sums as are necessary to
establish the fund authorized by this section and to
replenish that fund on an annual basis.
``(2) Limitations.--The limitations referred to in
paragraph (1) are that--
``(A) not more than $100,000,000 is
authorized to be obligated in any 1 fiscal year
commencing after September 30, 1980, to carry
out this section, except that, if for any
fiscal year the total of all obligations under
this section is less than the amount authorized
to be obligated for the fiscal year, the
unobligated balance of that amount shall--
``(i) remain available until
expended; and
``(ii) be in addition to amounts
otherwise available to carry out this
section for each year; and
``(B)(i) pending such appropriation or
replenishment, the Secretary may obligate from
any funds appropriated at any time for
obligation in accordance with this title,
including existing Federal-aid appropriations,
such sums as are necessary for the immediate
prosecution of the work herein authorized; and
``(ii) funds obligated under this
subparagraph shall be reimbursed from the
appropriation or replenishment.
``(d) Eligibility.--
``(1) In general.--The Secretary may expend funds
from the emergency fund authorized by this section only
for the repair or reconstruction of highways on
Federal-aid highways in accordance with this chapter,
except that--
``(A) no funds shall be so expended unless
an emergency has been declared by the Governor
of the State with concurrence by the Secretary,
unless the President has declared the emergency
to be a major disaster for the purposes of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.) for which concurrence of the Secretary is
not required; and
``(B) the Secretary has received an
application from the State transportation
department that includes a comprehensive list
of all eligible project sites and repair costs
by not later than 2 years after the natural
disaster or catastrophic failure.
``(2) Cost limitation.--
``(A) Definition of comparable facility.--
In this paragraph, the term `comparable
facility' means a facility that meets the
current geometric and construction standards
required for the types and volume of traffic
that the facility will carry over its design
life.
``(B) Limitation.--The total cost of a
project funded under this section may not
exceed the cost of repair or reconstruction of
a comparable facility.
``(3) Debris removal.--The costs of debris removal
shall be an eligible expense under this section only
for--
``(A) an event not declared a major
disaster or emergency by the President under
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.); or
``(B) an event declared a major disaster or
emergency by the President under that Act if
the debris removal is not eligible for
assistance under section 403, 407, or 502 of
that Act (42 U.S.C. 5170b, 5173, 5192).
``(4) Territories.--The total obligations for
projects under this section for any fiscal year in the
Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands shall not
exceed $20,000,000.
``(5) Substitute traffic.--Notwithstanding any
other provision of this section, actual and necessary
costs of maintenance and operation of ferryboats or
additional transit service providing temporary
substitute highway traffic service, less the amount of
fares charged for comparable service, may be expended
from the emergency fund authorized by this section for
Federal-aid highways.
``(e) Tribal Transportation Facilities, Federal Lands
Transportation Facilities, and Public Roads on Federal Lands.--
``(1) Definition of open to public travel.--In this
subsection, the term `open to public travel' means,
with respect to a road, that, except during scheduled
periods, extreme weather conditions, or emergencies,
the road is open to the general public for use with a
standard passenger vehicle, without restrictive gates
or prohibitive signs or regulations, other than for
general traffic control or restrictions based on size,
weight, or class of registration.
``(2) Expenditure of funds.--Notwithstanding
subsection (d)(1), the Secretary may expend funds from
the emergency fund authorized by this section,
independently or in cooperation with any other branch
of the Federal Government, a State agency, a tribal
government, an organization, or a person, for the
repair or reconstruction of tribal transportation
facilities, Federal lands transportation facilities,
and other federally owned roads that are open to public
travel, whether or not those facilities are Federal-aid
highways.
``(3) Reimbursement.--
``(A) In general.--The Secretary may
reimburse Federal and State agencies (including
political subdivisions) for expenditures made
for projects determined eligible under this
section, including expenditures for emergency
repairs made before a determination of
eligibility.
``(B) Transfers.--With respect to
reimbursements described in subparagraph (A)--
``(i) those reimbursements to
Federal agencies and Indian tribal
governments shall be transferred to the
account from which the expenditure was
made, or to a similar account that
remains available for obligation; and
``(ii) the budget authority
associated with the expenditure shall
be restored to the agency from which
the authority was derived and shall be
available for obligation until the end
of the fiscal year following the year
in which the transfer occurs.
``(f) Treatment of Territories.--For purposes of this
section, the Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands shall be
considered to be States and parts of the United States, and the
chief executive officer of each such territory shall be
considered to be a Governor of a State.
``(g) Protecting Public Safety and Maintaining Roadways.--
The Secretary may use not more than 5 percent of amounts from
the emergency fund authorized by this section to carry out
projects that the Secretary determines are necessary to protect
the public safety or to maintain or protect roadways that are
included within the scope of an emergency declaration by the
Governor of the State or by the President, in accordance with
this section, and the Governor deems to be an ongoing concern
in order to maintain vehicular traffic on the roadway.''.
SEC. 1108. SURFACE TRANSPORTATION PROGRAM.
(a) Eligible Projects.--Section 133(b) of title 23, United
States Code, is amended--
(1) in the matter preceding paragraph (1) by
striking ``section 104(b)(3)'' and inserting ``section
104(b)(2)'';
(2) by striking paragraph (1);
(3) by redesignating paragraphs (2) through (15) as
paragraphs (5) through (18), respectively;
(4) by inserting before paragraph (5) (as so
redesignated) the following:
``(1) Construction, reconstruction, rehabilitation,
resurfacing, restoration, preservation, or operational
improvements for highways, including construction of
designated routes of the Appalachian development
highway system and local access roads under section
14501 of title 40.
``(2) Replacement (including replacement with fill
material), rehabilitation, preservation, protection
(including painting, scour countermeasures, seismic
retrofits, impact protection measures, security
countermeasures, and protection against extreme events)
and application of calcium magnesium acetate, sodium
acetate/formate, or other environmentally acceptable,
minimally corrosive anti-icing and deicing compositions
for bridges (and approaches to bridges and other
elevated structures) and tunnels on public roads of all
functional classifications, including any such
construction or reconstruction necessary to accommodate
other transportation modes.
``(3) Construction of a new bridge or tunnel at a
new location on a Federal-aid highway.
``(4) Inspection and evaluation of bridges and
tunnels and training of bridge and tunnel inspectors
(as defined in section 144), and inspection and
evaluation of other highway assets (including signs,
retaining walls, and drainage structures).'';
(5) by striking paragraph (6) (as so redesignated)
and inserting the following:
``(6) Carpool projects, fringe and corridor parking
facilities and programs, including electric vehicle and
natural gas vehicle infrastructure in accordance with
section 137, bicycle transportation and pedestrian
walkways in accordance with section 217, and the
modifications of public sidewalks to comply with the
Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.).'';
(6) by striking paragraph (7) (as so redesignated)
and inserting the following:
``(7) Highway and transit safety infrastructure
improvements and programs, installation of safety
barriers and nets on bridges, hazard eliminations,
projects to mitigate hazards caused by wildlife, and
railway-highway grade crossings.'';
(7) in paragraph (11) (as so redesignated) by
striking ``enhancement activities'' and inserting
``alternatives'';
(8) by striking paragraph (14) (as so redesignated)
and inserting the following:
``(14) Environmental mitigation efforts relating to
projects funded under this title in the same manner and
to the same extent as such activities are eligible
under section 119(g).''; and
(9) by inserting after paragraph (18) (as so
redesignated) the following:
``(19) Projects and strategies designed to support
congestion pricing, including electric toll collection
and travel demand management strategies and programs.
``(20) Recreational trails projects eligible for
funding under section 206.
``(21) Construction of ferry boats and ferry
terminal facilities eligible for funding under section
129(c).
``(22) Border infrastructure projects eligible for
funding under section 1303 of the SAFETEA-LU (23 U.S.C.
101 note; Public Law 109-59).
``(23) Truck parking facilities eligible for
funding under section 1401 of the MAP-21.
``(24) Development and implementation of a State
asset management plan for the National Highway System
in accordance with section 119, including data
collection, maintenance, and integration and the costs
associated with obtaining, updating, and licensing
software and equipment required for risk based asset
management and performance based management, and for
similar activities related to the development and
implementation of a performance based management
program for other public roads.
``(25) A project that, if located within the
boundaries of a port terminal, includes only such
surface transportation infrastructure modifications as
are necessary to facilitate direct intermodal
interchange, transfer, and access into and out of the
port.
``(26) Construction and operational improvements
for any minor collector if--
``(A) the minor collector, and the project
to be carried out with respect to the minor
collector, are in the same corridor as, and in
proximity to, a Federal-aid highway designated
as part of the National Highway System;
``(B) the construction or improvements will
enhance the level of service on the Federal-aid
highway described in subparagraph (A) and
improve regional traffic flow; and
``(C) the construction or improvements are
more cost-effective, as determined by a
benefit-cost analysis, than an improvement to
the Federal-aid highway described in
subparagraph (A).''.
(b) Location of Projects.--Section 133 of title 23, United
States Code, is amended by striking subsection (c) and
inserting the following:
``(c) Location of Projects.--Surface transportation program
projects may not be undertaken on roads functionally classified
as local or rural minor collectors unless the roads were on a
Federal-aid highway system on January 1, 1991, except--
``(1) as provided in subsection (g);
``(2) for projects described in paragraphs (2),
(4), (6), (7), (11), (20), (25), and (26) of subsection
(b); and
``(3) as approved by the Secretary.''.
(c) Allocation of Apportioned Funds.--Section 133 of the
title 23, United States Code, is amended by striking subsection
(d) and inserting the following:
``(d) Allocations of Apportioned Funds to Areas Based on
Population.--
``(1) Calculation.--Of the funds apportioned to a
State under section 104(b)(2)--
``(A) 50 percent for a fiscal year shall be
obligated under this section, in proportion to
their relative shares of the population of the
State--
``(i) in urbanized areas of the
State with an urbanized area population
of over 200,000;
``(ii) in areas of the State other
than urban areas with a population
greater than 5,000; and
``(iii) in other areas of the
State; and
``(B) 50 percent may be obligated in any
area of the State.
``(2) Metropolitan areas.--Funds attributed to an
urbanized area under paragraph (1)(A)(i) may be
obligated in the metropolitan area established under
section 134 that encompasses the urbanized area.
``(3) Consultation with regional transportation
planning organizations.--For purposes of paragraph
(1)(A)(ii), before obligating funding attributed to an
area with a population greater than 5,000 and less than
200,000, a State shall consult with the regional
transportation planning organizations that represent
the area, if any.
``(4) Distribution among urbanized areas of over
200,000 population.--
``(A) In general.--Except as provided in
subparagraph (B), the amount of funds that a
State is required to obligate under paragraph
(1)(A)(i) shall be obligated in urbanized areas
described in paragraph (1)(A)(i) based on the
relative population of the areas.
``(B) Other factors.--The State may
obligate the funds described in subparagraph
(A) based on other factors if the State and the
relevant metropolitan planning organizations
jointly apply to the Secretary for the
permission to base the obligation on other
factors and the Secretary grants the request.
``(5) Applicability of planning requirements.--
Programming and expenditure of funds for projects under
this section shall be consistent with sections 134 and
135.''.
(d) Administration.--Section 133 of title 23, United States
Code, is amended by striking subsection (e) and inserting the
following:
``(e) Administration.--
``(1) Submission of project agreement.--For each
fiscal year, each State shall submit a project
agreement that--
``(A) certifies that the State will meet
all the requirements of this section; and
``(B) notifies the Secretary of the amount
of obligations needed to carry out the program
under this section.
``(2) Request for adjustments of amounts.--Each
State shall request from the Secretary such adjustments
to the amount of obligations referred to in paragraph
(1)(B) as the State determines to be necessary.
``(3) Effect of approval by the secretary.--
Approval by the Secretary of a project agreement under
paragraph (1) shall be deemed a contractual obligation
of the United States to pay surface transportation
program funds made available under this title.''.
(e) Obligation Authority.--Section 133(f)(1) of title 23,
United States Code, is amended by striking ``2004 through 2006
and the period of fiscal years 2007 through 2009'' and
inserting ``2011 through 2014''.
(f) Bridges Not on Federal-aid Highways.--Section 133 of
the title 23, United States Code, is amended by adding at the
end the following:
``(g) Bridges Not on Federal-aid Highways.--
``(1) Definition of off-system bridge.--In this
subsection, the term `off-system bridge' means a
highway bridge located on a public road, other than a
bridge on a Federal-aid highway.
``(2) Special rule.--
``(A) Set-aside.--Of the amounts
apportioned to a State for fiscal year 2013 and
each fiscal year thereafter under this section,
the State shall obligate for activities
described in subsection (b)(2) for off-system
bridges an amount that is not less than 15
percent of the amount of funds apportioned to
the State for the highway bridge program for
fiscal year 2009, except that amounts allocated
under subsection (d) shall not be obligated to
carry out this subsection.
``(B) Reduction of expenditures.--The
Secretary, after consultation with State and
local officials, may reduce the requirement for
expenditures for off-system bridges under
subparagraph (A) with respect to the State if
the Secretary determines that the State has
inadequate needs to justify the expenditure.
``(3) Credit for bridges not on federal-aid
highways.--Notwithstanding any other provision of law,
with respect to any project not on a Federal-aid
highway for the replacement of a bridge or
rehabilitation of a bridge that is wholly funded from
State and local sources, is eligible for Federal funds
under this section, is noncontroversial, is certified
by the State to have been carried out in accordance
with all standards applicable to such projects under
this section, and is determined by the Secretary upon
completion to be no longer a deficient bridge--
``(A) any amount expended after the date of
enactment of this subsection from State and
local sources for the project in excess of 20
percent of the cost of construction of the
project may be credited to the non-Federal
share of the cost of other bridge projects in
the State that are eligible for Federal funds
under this section; and
``(B) that crediting shall be conducted in
accordance with procedures established by the
Secretary.
``(h) Special Rule for Areas of Less Than 5,000
Population.--
``(1) Special rule.--Notwithstanding subsection
(c), and except as provided in paragraph (2), up to 15
percent of the amounts required to be obligated by a
State under subsection (d)(1)(A)(iii) for each of
fiscal years 2013 through 2014 may be obligated on
roads functionally classified as minor collectors.
``(2) Suspension.--The Secretary may suspend the
application of paragraph (1) with respect to a State if
the Secretary determines that the authority provided
under paragraph (1) is being used excessively by the
State.''.
SEC. 1109. WORKFORCE DEVELOPMENT.
(a) On-the-job Training.--Section 140(b) of title 23,
United States Code, is amended--
(1) in the second sentence, by striking ``Whenever
apportionments are made under section 104(b)(3) of this
title,'' and inserting ``From administrative funds made
available under section 104(a),''; and
(2) in the fourth sentence, by striking ``and the
bridge program under section 144''.
(b) Disadvantaged Business Enterprise.--Section 140(c) of
title 23, United States Code, is amended in the second sentence
by striking ``Whenever apportionments are made under section
104(b)(3),'' and inserting ``From administrative funds made
available under section 104(a),''.
SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.
Section 143 of title 23, United States Code, is amended--
(1) in subsection (b)--
(A) by striking paragraph (2) and inserting
the following:
``(2) Funding.--
``(A) In general.--From administrative
funds made available under section 104(a), the
Secretary shall deduct such sums as are
necessary, not to exceed $10,000,000 for each
of fiscal years 2013 and 2014, to carry out
this section.
``(B) Allocation of funds.--Funds made
available to carry out this section may be
allocated to the Internal Revenue Service and
the States at the discretion of the Secretary,
except that of funds so made available for each
fiscal year, $2,000,000 shall be available only
to carry out intergovernmental enforcement
efforts, including research and training.'';
and
(B) in paragraph (8) by striking ``section
104(b)(3)'' and inserting ``section
104(b)(2)''; and
(2) in subsection (c)(3) by striking ``for each of
fiscal years 2005 through 2009,'' and inserting ``for
each fiscal year,''.
SEC. 1111. NATIONAL BRIDGE AND TUNNEL INVENTORY AND INSPECTION
STANDARDS.
(a) In General.--Section 144 of title 23, United States
Code, is amended to read as follows:
``Sec. 144. National bridge and tunnel inventory and inspection
standards
``(a) Findings and Declarations.--
``(1) Findings.--Congress finds that--
``(A) the condition of the bridges of the
United States has improved since the date of
enactment of the Transportation Equity Act for
the 21st Century (Public Law 105-178; 112 Stat.
107), yet continued improvement to bridge
conditions is essential to protect the safety
of the traveling public and allow for the
efficient movement of people and goods on which
the economy of the United States relies; and
``(B) the systematic preventative
maintenance of bridges, and replacement and
rehabilitation of deficient bridges, should be
undertaken through an overall asset management
approach to transportation investment.
``(2) Declarations.--Congress declares that it is
in the vital interest of the United States--
``(A) to inventory, inspect, and improve
the condition of the highway bridges and
tunnels of the United States;
``(B) to use a data-driven, risk-based
approach and cost-effective strategy for
systematic preventative maintenance,
replacement, and rehabilitation of highway
bridges and tunnels to ensure safety and
extended service life;
``(C) to use performance-based bridge
management systems to assist States in making
timely investments;
``(D) to ensure accountability and link
performance outcomes to investment decisions;
and
``(E) to ensure connectivity and access for
residents of rural areas of the United States
through strategic investments in National
Highway System bridges and bridges on all
public roads.
``(b) National Bridge and Tunnel Inventories.--The
Secretary, in consultation with the States and Federal agencies
with jurisdiction over highway bridges and tunnels, shall--
``(1) inventory all highway bridges on public
roads, on and off Federal-aid highways, including
tribally owned and Federally owned bridges, that are
bridges over waterways, other topographical barriers,
other highways, and railroads;
``(2) inventory all tunnels on public roads, on and
off Federal-aid highways, including tribally owned and
Federally owned tunnels;
``(3) classify the bridges according to
serviceability, safety, and essentiality for public
use, including the potential impacts to emergency
evacuation routes and to regional and national freight
and passenger mobility if the serviceability of the
bridge is restricted or diminished;
``(4) based on that classification, assign each a
risk-based priority for systematic preventative
maintenance, replacement, or rehabilitation; and
``(5) determine the cost of replacing each
structurally deficient bridge identified under this
subsection with a comparable facility or the cost of
rehabilitating the bridge.
``(c) General Bridge Authority.--
``(1) In general.--Except as provided in paragraph
(2) and notwithstanding any other provision of law, the
General Bridge Act of 1946 (33 U.S.C. 525 et seq.)
shall apply to bridges authorized to be replaced, in
whole or in part, by this title.
``(2) Exception.--Section 502(b) of the General
Bridge Act of 1946 (33 U.S.C. 525(b)) and section 9 of
the Act of March 3, 1899 (33 U.S.C. 401), shall not
apply to any bridge constructed, reconstructed,
rehabilitated, or replaced with assistance under this
title, if the bridge is over waters that--
``(A) are not used and are not susceptible
to use in the natural condition of the bridge
or by reasonable improvement as a means to
transport interstate or foreign commerce; and
``(B) are--
``(i) not tidal; or
``(ii) if tidal, used only by
recreational boating, fishing, and
other small vessels that are less than
21 feet in length.
``(d) Inventory Updates and Reports.--
``(1) In general.--The Secretary shall--
``(A) annually revise the inventories
authorized by subsection (b); and
``(B) submit to the Committee on
Transportation and Infrastructure of the House
of Representatives and the Committee on
Environment and Public Works of the Senate a
report on the inventories.
``(2) Inspection report.--Not later than 2 years
after the date of enactment of the MAP-21, each State
and appropriate Federal agency shall report element
level data to the Secretary, as each bridge is
inspected pursuant to this section, for all highway
bridges on the National Highway System.
``(3) Guidance.--The Secretary shall provide
guidance to States and Federal agencies for
implementation of this subsection, while respecting the
existing inspection schedule of each State.
``(4) Bridges not on national highway system.--The
Secretary shall--
``(A) conduct a study on the benefits,
cost-effectiveness, and feasibility of
requiring element-level data collection for
bridges not on the National Highway System; and
``(B) submit to the Committee on
Transportation and Infrastructure of the House
of Representatives and the Committee on
Environment and Public Works of the Senate a
report on the results of the study.
``(e) Bridges Without Taxing Powers.--
``(1) In general.--Notwithstanding any other
provision of law, any bridge that is owned and operated
by an agency that does not have taxing powers and whose
functions include operating a federally assisted public
transit system subsidized by toll revenues shall be
eligible for assistance under this title, but the
amount of such assistance shall in no event exceed the
cumulative amount which such agency has expended for
capital and operating costs to subsidize such transit
system.
``(2) Insufficient assets.--Before authorizing an
expenditure of funds under this subsection, the
Secretary shall determine that the applicant agency has
insufficient reserves, surpluses, and projected
revenues (over and above those required for bridge and
transit capital and operating costs) to fund the bridge
project or activity eligible for assistance under this
title.
``(3) Crediting of non-federal funds.--Any non-
Federal funds expended for the seismic retrofit of the
bridge may be credited toward the non-Federal share
required as a condition of receipt of any Federal funds
for seismic retrofit of the bridge made available after
the date of the expenditure.
``(f) Replacement of Destroyed Bridges and Ferry Boat
Service.--
``(1) In general.--Notwithstanding any other
provision of law, a State may use the funds apportioned
under section 104(b)(2) to construct any bridge that
replaces--
``(A) any low water crossing (regardless of
the length of the low water crossing);
``(B) any bridge that was destroyed prior
to January 1, 1965;
``(C) any ferry that was in existence on
January 1, 1984; or
``(D) any road bridge that is rendered
obsolete as a result of a Corps of Engineers
flood control or channelization project and is
not rebuilt with funds from the Corps of
Engineers.
``(2) Federal share.--The Federal share payable on
any bridge construction carried out under paragraph (1)
shall be 80 percent of the cost of the construction.
``(g) Historic Bridges.--
``(1) Definition of historic bridge.--In this
subsection, the term `historic bridge' means any bridge
that is listed on, or eligible for listing on, the
National Register of Historic Places.
``(2) Coordination.--The Secretary shall, in
cooperation with the States, encourage the retention,
rehabilitation, adaptive reuse, and future study of
historic bridges.
``(3) State inventory.--The Secretary shall require
each State to complete an inventory of all bridges on
and off Federal-aid highways to determine the historic
significance of the bridges.
``(4) Eligibility.--
``(A) In general.--Subject to subparagraph
(B), reasonable costs associated with actions
to preserve, or reduce the impact of a project
under this chapter on, the historic integrity
of a historic bridge shall be eligible as
reimbursable project costs under section 133 if
the load capacity and safety features of the
historic bridge are adequate to serve the
intended use for the life of the historic
bridge.
``(B) Bridges not used for vehicle
traffic.--In the case of a historic bridge that
is no longer used for motorized vehicular
traffic, the costs eligible as reimbursable
project costs pursuant to this chapter shall
not exceed the estimated cost of demolition of
the historic bridge.
``(5) Preservation.--Any State that proposes to
demolish a historic bridge for a replacement project
with funds made available to carry out this section
shall first make the historic bridge available for
donation to a State, locality, or responsible private
entity if the State, locality, or responsible entity
enters into an agreement--
``(A) to maintain the bridge and the
features that give the historic bridge its
historic significance; and
``(B) to assume all future legal and
financial responsibility for the historic
bridge, which may include an agreement to hold
the State transportation department harmless in
any liability action.
``(6) Costs incurred.--
``(A) In general.--Costs incurred by the
State to preserve a historic bridge (including
funds made available to the State, locality, or
private entity to enable it to accept the
bridge) shall be eligible as reimbursable
project costs under this chapter in an amount
not to exceed the cost of demolition.
``(B) Additional funding.--Any bridge
preserved pursuant to this paragraph shall not
be eligible for any other funds authorized
pursuant to this title.
``(h) National Bridge and Tunnel Inspection Standards.--
``(1) Requirement.--
``(A) In general.--The Secretary shall
establish and maintain inspection standards for
the proper inspection and evaluation of all
highway bridges and tunnels for safety and
serviceability.
``(B) Uniformity.--The standards under this
subsection shall be designed to ensure
uniformity of the inspections and evaluations.
``(2) Minimum requirements of inspection
standards.--The standards established under paragraph
(1) shall, at a minimum--
``(A) specify, in detail, the method by
which the inspections shall be carried out by
the States, Federal agencies, and tribal
governments;
``(B) establish the maximum time period
between inspections;
``(C) establish the qualifications for
those charged with carrying out the
inspections;
``(D) require each State, Federal agency,
and tribal government to maintain and make
available to the Secretary on request--
``(i) written reports on the
results of highway bridge and tunnel
inspections and notations of any action
taken pursuant to the findings of the
inspections; and
``(ii) current inventory data for
all highway bridges and tunnels
reflecting the findings of the most
recent highway bridge and tunnel
inspections conducted; and
``(E) establish a procedure for national
certification of highway bridge inspectors and
tunnel inspectors.
``(3) State compliance with inspection standards.--
The Secretary shall, at a minimum--
``(A) establish, in consultation with the
States, Federal agencies, and interested and
knowledgeable private organizations and
individuals, procedures to conduct reviews of
State compliance with--
``(i) the standards established
under this subsection; and
``(ii) the calculation or
reevaluation of bridge load ratings;
and
``(B) establish, in consultation with the
States, Federal agencies, and interested and
knowledgeable private organizations and
individuals, procedures for States to follow in
reporting to the Secretary--
``(i) critical findings relating to
structural or safety-related
deficiencies of highway bridges and
tunnels; and
``(ii) monitoring activities and
corrective actions taken in response to
a critical finding described in clause
(i).
``(4) Reviews of state compliance.--
``(A) In general.--The Secretary shall
annually review State compliance with the
standards established under this section.
``(B) Noncompliance.--If an annual review
in accordance with subparagraph (A) identifies
noncompliance by a State, the Secretary shall--
``(i) issue a report detailing the
issues of the noncompliance by December
31 of the calendar year in which the
review was made; and
``(ii) provide the State an
opportunity to address the
noncompliance by--
``(I) developing a
corrective action plan to
remedy the noncompliance; or
``(II) resolving the issues
of noncompliance not later than
45 days after the date of
notification.
``(5) Penalty for noncompliance.--
``(A) In general.--If a State fails to
satisfy the requirements of paragraph (4)(B) by
August 1 of the calendar year following the
year of a finding of noncompliance, the
Secretary shall, on October 1 of that year, and
each year thereafter as may be necessary,
require the State to dedicate funds apportioned
to the State under sections 119 and 133 after
the date of enactment of the MAP-21 to correct
the noncompliance with the minimum inspection
standards established under this subsection.
``(B) Amount.--The amount of the funds to
be directed to correcting noncompliance in
accordance with subparagraph (A) shall--
``(i) be determined by the State
based on an analysis of the actions
needed to address the noncompliance;
and
``(ii) require approval by the
Secretary.
``(6) Update of standards.--Not later than 3 years
after the date of enactment of the MAP-21, the
Secretary shall update inspection standards to cover--
``(A) the methodology, training, and
qualifications for inspectors; and
``(B) the frequency of inspection.
``(7) Risk-based approach.--In carrying out the
revisions required by paragraph (6), the Secretary
shall consider a risk-based approach to determining the
frequency of bridge inspections.
``(i) Training Program for Bridge and Tunnel Inspectors.--
``(1) In general.--The Secretary, in cooperation
with the State transportation departments, shall
maintain a program designed to train appropriate
personnel to carry out highway bridge and tunnel
inspections.
``(2) Revisions.--The training program shall be
revised from time to time to take into account new and
improved techniques.
``(j) Availability of Funds.--In carrying out this
section--
``(1) the Secretary may use funds made available to
the Secretary under sections 104(a) and 503;
``(2) a State may use amounts apportioned to the
State under section 104(b)(1) and 104(b)(3);
``(3) an Indian tribe may use funds made available
to the Indian tribe under section 202; and
``(4) a Federal agency may use funds made available
to the agency under section 503.''.
(b) Conforming Amendment.--The analysis for chapter 1 of
title 23, United States Code, is amended by striking the item
relating to section 144 and inserting the following:
``144. National bridge and tunnel inventory and inspection standards.''.
SEC. 1112. HIGHWAY SAFETY IMPROVEMENT PROGRAM.
(a) In General.--Section 148 of title 23, United States
Code, is amended to read as follows:
``Sec. 148. Highway safety improvement program
``(a) Definitions.--In this section, the following
definitions apply:
``(1) High risk rural road.--The term `high risk
rural road' means any roadway functionally classified
as a rural major or minor collector or a rural local
road with significant safety risks, as defined by a
State in accordance with an updated State strategic
highway safety plan.
``(2) Highway basemap.--The term `highway basemap'
means a representation of all public roads that can be
used to geolocate attribute data on a roadway.
``(3) Highway safety improvement program.--The term
`highway safety improvement program' means projects,
activities, plans, and reports carried out under this
section.
``(4) Highway safety improvement project.--
``(A) In general.--The term `highway safety
improvement project' means strategies,
activities, and projects on a public road that
are consistent with a State strategic highway
safety plan and--
``(i) correct or improve a
hazardous road location or feature; or
``(ii) address a highway safety
problem.
``(B) Inclusions.--The term `highway safety
improvement project' includes, but is not
limited to, a project for 1 or more of the
following:
``(i) An intersection safety
improvement.
``(ii) Pavement and shoulder
widening (including addition of a
passing lane to remedy an unsafe
condition).
``(iii) Installation of rumble
strips or another warning device, if
the rumble strips or other warning
devices do not adversely affect the
safety or mobility of bicyclists and
pedestrians, including persons with
disabilities.
``(iv) Installation of a skid-
resistant surface at an intersection or
other location with a high frequency of
crashes.
``(v) An improvement for pedestrian
or bicyclist safety or safety of
persons with disabilities.
``(vi) Construction and improvement
of a railway-highway grade crossing
safety feature, including installation
of protective devices.
``(vii) The conduct of a model
traffic enforcement activity at a
railway-highway crossing.
``(viii) Construction of a traffic
calming feature.
``(ix) Elimination of a roadside
hazard.
``(x) Installation, replacement,
and other improvement of highway
signage and pavement markings, or a
project to maintain minimum levels of
retroreflectivity, that addresses a
highway safety problem consistent with
a State strategic highway safety plan.
``(xi) Installation of a priority
control system for emergency vehicles
at signalized intersections.
``(xii) Installation of a traffic
control or other warning device at a
location with high crash potential.
``(xiii) Transportation safety
planning.
``(xiv) Collection, analysis, and
improvement of safety data.
``(xv) Planning integrated
interoperable emergency communications
equipment, operational activities, or
traffic enforcement activities
(including police assistance) relating
to work zone safety.
``(xvi) Installation of guardrails,
barriers (including barriers between
construction work zones and traffic
lanes for the safety of road users and
workers), and crash attenuators.
``(xvii) The addition or
retrofitting of structures or other
measures to eliminate or reduce crashes
involving vehicles and wildlife.
``(xviii) Installation of yellow-
green signs and signals at pedestrian
and bicycle crossings and in school
zones.
``(xix) Construction and
operational improvements on high risk
rural roads.
``(xx) Geometric improvements to a
road for safety purposes that improve
safety.
``(xxi) A road safety audit.
``(xxii) Roadway safety
infrastructure improvements consistent
with the recommendations included in
the publication of the Federal Highway
Administration entitled `Highway Design
Handbook for Older Drivers and
Pedestrians' (FHWA-RD-01-103), dated
May 2001 or as subsequently revised and
updated.
``(xxiii) Truck parking facilities
eligible for funding under section 1401
of the MAP-21.
``(xxiv) Systemic safety
improvements.
``(5) Model inventory of roadway elements.--The
term `model inventory of roadway elements' means the
listing and standardized coding by the Federal Highway
Administration of roadway and traffic data elements
critical to safety management, analysis, and
decisionmaking.
``(6) Project to maintain minimum levels of
retroreflectivity.--The term `project to maintain
minimum levels of retroreflectivity' means a project
that is designed to maintain a highway sign or pavement
marking retroreflectivity at or above the minimum
levels prescribed in Federal or State regulations.
``(7) Road safety audit.--The term `road safety
audit' means a formal safety performance examination of
an existing or future road or intersection by an
independent multidisciplinary audit team.
``(8) Road users.--The term `road user' means a
motorist, passenger, public transportation operator or
user, truck driver, bicyclist, motorcyclist, or
pedestrian, including a person with disabilities.
``(9) Safety data.--
``(A) In general.--The term `safety data'
means crash, roadway, and traffic data on a
public road.
``(B) Inclusion.--The term `safety data'
includes, in the case of a railway-highway
grade crossing, the characteristics of highway
and train traffic, licensing, and vehicle data.
``(10) Safety project under any other section.--
``(A) In general.--The term `safety project
under any other section' means a project
carried out for the purpose of safety under any
other section of this title.
``(B) Inclusion.--The term `safety project
under any other section' includes--
``(i) a project consistent with the
State strategic highway safety plan
that promotes the awareness of the
public and educates the public
concerning highway safety matters
(including motorcycle safety);
``(ii) a project to enforce highway
safety laws; and
``(iii) a project to provide
infrastructure and infrastructure-
related equipment to support emergency
services.
``(11) State highway safety improvement program.--
The term `State highway safety improvement program'
means a program of highway safety improvement projects,
activities, plans and reports carried out as part of
the Statewide transportation improvement program under
section 135(g).
``(12) State strategic highway safety plan.--The
term `State strategic highway safety plan' means a
comprehensive plan, based on safety data, developed by
a State transportation department that--
``(A) is developed after consultation
with--
``(i) a highway safety
representative of the Governor of the
State;
``(ii) regional transportation
planning organizations and metropolitan
planning organizations, if any;
``(iii) representatives of major
modes of transportation;
``(iv) State and local traffic
enforcement officials;
``(v) a highway-rail grade crossing
safety representative of the Governor
of the State;
``(vi) representatives conducting a
motor carrier safety program under
section 31102, 31106, or 31309 of title
49;
``(vii) motor vehicle
administration agencies;
``(viii) county transportation
officials;
``(ix) State representatives of
nonmotorized users; and
``(x) other major Federal, State,
tribal, and local safety stakeholders;
``(B) analyzes and makes effective use of
State, regional, local, or tribal safety data;
``(C) addresses engineering, management,
operation, education, enforcement, and
emergency services elements (including
integrated, interoperable emergency
communications) of highway safety as key
factors in evaluating highway projects;
``(D) considers safety needs of, and high-
fatality segments of, all public roads,
including non-State-owned public roads and
roads on tribal land;
``(E) considers the results of State,
regional, or local transportation and highway
safety planning processes;
``(F) describes a program of strategies to
reduce or eliminate safety hazards;
``(G) is approved by the Governor of the
State or a responsible State agency;
``(H) is consistent with section 135(g);
and
``(I) is updated and submitted to the
Secretary for approval as required under
subsection (d)(2).
``(13) Systemic safety improvement.--The term
`systemic safety improvement' means an improvement that
is widely implemented based on high-risk roadway
features that are correlated with particular crash
types, rather than crash frequency.
``(b) Program.--
``(1) In general.--The Secretary shall carry out a
highway safety improvement program.
``(2) Purpose.--The purpose of the highway safety
improvement program shall be to achieve a significant
reduction in traffic fatalities and serious injuries on
all public roads, including non-State-owned public
roads and roads on tribal land.
``(c) Eligibility.--
``(1) In general.--To obligate funds apportioned
under section 104(b)(3) to carry out this section, a
State shall have in effect a State highway safety
improvement program under which the State--
``(A) develops, implements, and updates a
State strategic highway safety plan that
identifies and analyzes highway safety problems
and opportunities as provided in subsections
(a)(12) and (d);
``(B) produces a program of projects or
strategies to reduce identified safety
problems; and
``(C) evaluates the strategic highway
safety plan on a regularly recurring basis in
accordance with subsection (d)(1) to ensure the
accuracy of the data and priority of proposed
strategies.
``(2) Identification and analysis of highway safety
problems and opportunities.--As part of the State
highway safety improvement program, a State shall--
``(A) have in place a safety data system
with the ability to perform safety problem
identification and countermeasure analysis--
``(i) to improve the timeliness,
accuracy, completeness, uniformity,
integration, and accessibility of the
safety data on all public roads,
including non-State-owned public roads
and roads on tribal land in the State;
``(ii) to evaluate the
effectiveness of data improvement
efforts;
``(iii) to link State data systems,
including traffic records, with other
data systems within the State;
``(iv) to improve the compatibility
and interoperability of safety data
with other State transportation-related
data systems and the compatibility and
interoperability of State safety data
systems with data systems of other
States and national data systems;
``(v) to enhance the ability of the
Secretary to observe and analyze
national trends in crash occurrences,
rates, outcomes, and circumstances; and
``(vi) to improve the collection of
data on nonmotorized crashes;
``(B) based on the analysis required by
subparagraph (A)--
``(i) identify hazardous locations,
sections, and elements (including
roadside obstacles, railway-highway
crossing needs, and unmarked or poorly
marked roads) that constitute a danger
to motorists (including motorcyclists),
bicyclists, pedestrians, and other
highway users;
``(ii) using such criteria as the
State determines to be appropriate,
establish the relative severity of
those locations, in terms of crashes
(including crash rates), fatalities,
serious injuries, traffic volume
levels, and other relevant data;
``(iii) identify the number of
fatalities and serious injuries on all
public roads by location in the State;
``(iv) identify highway safety
improvement projects on the basis of
crash experience, crash potential,
crash rate, or other data-supported
means; and
``(v) consider which projects
maximize opportunities to advance
safety;
``(C) adopt strategic and performance-based
goals that--
``(i) address traffic safety,
including behavioral and infrastructure
problems and opportunities on all
public roads;
``(ii) focus resources on areas of
greatest need; and
``(iii) are coordinated with other
State highway safety programs;
``(D) advance the capabilities of the State
for safety data collection, analysis, and
integration in a manner that--
``(i) complements the State highway
safety program under chapter 4 and the
commercial vehicle safety plan under
section 31102 of title 49;
``(ii) includes all public roads,
including public non-State-owned roads
and roads on tribal land;
``(iii) identifies hazardous
locations, sections, and elements on
all public roads that constitute a
danger to motorists (including
motorcyclists), bicyclists,
pedestrians, persons with disabilities,
and other highway users;
``(iv) includes a means of
identifying the relative severity of
hazardous locations described in clause
(iii) in terms of crashes (including
crash rate), serious injuries,
fatalities, and traffic volume levels;
and
``(v) improves the ability of the
State to identify the number of
fatalities and serious injuries on all
public roads in the State with a
breakdown by functional classification
and ownership in the State;
``(E)(i) determine priorities for the
correction of hazardous road locations,
sections, and elements (including railway-
highway crossing improvements), as identified
through safety data analysis;
``(ii) identify opportunities for
preventing the development of such hazardous
conditions; and
``(iii) establish and implement a schedule
of highway safety improvement projects for
hazard correction and hazard prevention; and
``(F)(i) establish an evaluation process to
analyze and assess results achieved by highway
safety improvement projects carried out in
accordance with procedures and criteria
established by this section; and
``(ii) use the information obtained under
clause (i) in setting priorities for highway
safety improvement projects.
``(d) Updates to Strategic Highway Safety Plans.--
``(1) Establishment of requirements.--
``(A) In general.--Not later than 1 year
after the date of enactment of the MAP-21, the
Secretary shall establish requirements for
regularly recurring State updates of strategic
highway safety plans.
``(B) Contents of updated strategic highway
safety plans.--In establishing requirements
under this subsection, the Secretary shall
ensure that States take into consideration,
with respect to updated strategic highway
safety plans--
``(i) the findings of road safety
audits;
``(ii) the locations of fatalities
and serious injuries;
``(iii) the locations that do not
have an empirical history of fatalities
and serious injuries, but possess risk
factors for potential crashes;
``(iv) rural roads, including all
public roads, commensurate with
fatality data;
``(v) motor vehicle crashes that
include fatalities or serious injuries
to pedestrians and bicyclists;
``(vi) the cost-effectiveness of
improvements;
``(vii) improvements to rail-
highway grade crossings; and
``(viii) safety on all public
roads, including non-State-owned public
roads and roads on tribal land.
``(2) Approval of updated strategic highway safety
plans.--
``(A) In general.--Each State shall--
``(i) update the strategic highway
safety plans of the State in accordance
with the requirements established by
the Secretary under this subsection;
and
``(ii) submit the updated plans to
the Secretary, along with a detailed
description of the process used to
update the plan.
``(B) Requirements for approval.--The
Secretary shall not approve the process for an
updated strategic highway safety plan unless--
``(i) the updated strategic highway
safety plan is consistent with the
requirements of this subsection and
subsection (a)(12); and
``(ii) the process used is
consistent with the requirements of
this subsection.
``(3) Penalty for failure to have an approved
updated strategic highway safety plan.--If a State does
not have an updated strategic highway safety plan with
a process approved by the Secretary by August 1 of the
fiscal year beginning after the date of establishment
of the requirements under paragraph (1), the State
shall not be eligible to receive any additional
limitation pursuant to the redistribution of the
limitation on obligations for Federal-aid highway and
highway safety construction programs that occurs after
August 1 for each succeeding fiscal year until the
fiscal year during which the plan is approved.
``(e) Eligible Projects.--
``(1) In general.--Funds apportioned to the State
under section 104(b)(3) may be obligated to carry out--
``(A) any highway safety improvement
project on any public road or publicly owned
bicycle or pedestrian pathway or trail;
``(B) as provided in subsection (g); or
``(C) any project to maintain minimum
levels of retroreflectivity with respect to a
public road, without regard to whether the
project is included in an applicable State
strategic highway safety plan.
``(2) Use of other funding for safety.--
``(A) Effect of section.--Nothing in this
section prohibits the use of funds made
available under other provisions of this title
for highway safety improvement projects.
``(B) Use of other funds.--States are
encouraged to address the full scope of the
safety needs and opportunities of the States by
using funds made available under other
provisions of this title (except a provision
that specifically prohibits that use).
``(f) Data Improvement.--
``(1) Definition of data improvement activities.--
In this subsection, the following definitions apply:
``(A) In general.--The term `data
improvement activities' means a project or
activity to further the capacity of a State to
make more informed and effective safety
infrastructure investment decisions.
``(B) Inclusions.--The term `data
improvement activities' includes a project or
activity--
``(i) to create, update, or enhance
a highway basemap of all public roads
in a State;
``(ii) to collect safety data,
including data identified as part of
the model inventory for roadway
elements, for creation of or use on a
highway basemap of all public roads in
a State;
``(iii) to store and maintain
safety data in an electronic manner;
``(iv) to develop analytical
processes for safety data elements;
``(v) to acquire and implement
roadway safety analysis tools; and
``(vi) to support the collection,
maintenance, and sharing of safety data
on all public roads and related systems
associated with the analytical usage of
that data.
``(2) Model inventory of roadway elements.--The
Secretary shall--
``(A) establish a subset of the model
inventory of roadway elements that are useful
for the inventory of roadway safety; and
``(B) ensure that States adopt and use the
subset to improve data collection.
``(g) Special Rules.--
``(1) High-risk rural road safety.--If the fatality
rate on rural roads in a State increases over the most
recent 2-year period for which data are available, that
State shall be required to obligate in the next fiscal
year for projects on high risk rural roads an amount
equal to at least 200 percent of the amount of funds
the State received for fiscal year 2009 for high risk
rural roads under subsection (f) of this section, as in
effect on the day before the date of enactment of the
MAP-21.
``(2) Older drivers.--If traffic fatalities and
serious injuries per capita for drivers and pedestrians
over the age of 65 in a State increases during the most
recent 2-year period for which data are available, that
State shall be required to include, in the subsequent
Strategic Highway Safety Plan of the State, strategies
to address the increases in those rates, taking into
account the recommendations included in the publication
of the Federal Highway Administration entitled `Highway
Design Handbook for Older Drivers and Pedestrians'
(FHWA-RD-01-103), and dated May 2001, or as
subsequently revised and updated.
``(h) Reports.--
``(1) In general.--A State shall submit to the
Secretary a report that--
``(A) describes progress being made to
implement highway safety improvement projects
under this section;
``(B) assesses the effectiveness of those
improvements; and
``(C) describes the extent to which the
improvements funded under this section have
contributed to reducing--
``(i) the number and rate of
fatalities on all public roads with, to
the maximum extent practicable, a
breakdown by functional classification
and ownership in the State;
``(ii) the number and rate of
serious injuries on all public roads
with, to the maximum extent
practicable, a breakdown by functional
classification and ownership in the
State; and
``(iii) the occurrences of
fatalities and serious injuries at
railway-highway crossings.
``(2) Contents; schedule.--The Secretary shall
establish the content and schedule for the submission
of the report under paragraph (1).
``(3) Transparency.--The Secretary shall make
strategic highway safety plans submitted under
subsection (d) and reports submitted under this
subsection available to the public through--
``(A) the website of the Department; and
``(B) such other means as the Secretary
determines to be appropriate.
``(4) Discovery and admission into evidence of
certain reports, surveys, and information.--
Notwithstanding any other provision of law, reports,
surveys, schedules, lists, or data compiled or
collected for any purpose relating to this section,
shall not be subject to discovery or admitted into
evidence in a Federal or State court proceeding or
considered for other purposes in any action for damages
arising from any occurrence at a location identified or
addressed in the reports, surveys, schedules, lists, or
other data.
``(i) State Performance Targets.--If the Secretary
determines that a State has not met or made significant
progress toward meeting the performance targets of the State
established under section 150(d) by the date that is 2 years
after the date of the establishment of the performance targets,
the State shall--
``(1) use obligation authority equal to the
apportionment of the State for the prior year under
section 104(b)(3) only for highway safety improvement
projects under this section until the Secretary
determines that the State has met or made significant
progress toward meeting the performance targets of the
State; and
``(2) submit annually to the Secretary, until the
Secretary determines that the State has met or made
significant progress toward meeting the performance
targets of the State, an implementation plan that--
``(A) identifies roadway features that
constitute a hazard to road users;
``(B) identifies highway safety improvement
projects on the basis of crash experience,
crash potential, or other data-supported means;
``(C) describes how highway safety
improvement program funds will be allocated,
including projects, activities, and strategies
to be implemented;
``(D) describes how the proposed projects,
activities, and strategies funded under the
State highway safety improvement program will
allow the State to make progress toward
achieving the safety performance targets of the
State; and
``(E) describes the actions the State will
undertake to meet the performance targets of
the State.
``(j) Federal Share of Highway Safety Improvement
Projects.--Except as provided in sections 120 and 130, the
Federal share of the cost of a highway safety improvement
project carried out with funds apportioned to a State under
section 104(b)(3) shall be 90 percent.''.
(b) Study of High-risk Rural Roads Best Practices.--
(1) Study.--
(A) In general.--The Secretary shall
conduct a study of the best practices for
implementing cost-effective roadway safety
infrastructure improvements on high-risk rural
roads.
(B) Methodology.--In carrying out the
study, the Secretary shall--
(i) conduct a thorough literature
review;
(ii) survey current practices of
State departments of transportation;
and
(iii) survey current practices of
local units of government, as
appropriate.
(C) Consultation.--In carrying out the
study, the Secretary shall consult with--
(i) State departments of
transportation;
(ii) county engineers and public
works professionals;
(iii) appropriate local officials;
and
(iv) appropriate private sector
experts in the field of roadway safety
infrastructure.
(2) Report.--
(A) In general.--Not later than 1 year
after the date of enactment of this Act, the
Secretary shall submit to the Committee on
Environment and Public Works of the Senate and
the Committee on Transportation and
Infrastructure of the House of Representatives
a report on the results of the study.
(B) Contents.--The report shall include--
(i) a summary of cost-effective
roadway safety infrastructure
improvements;
(ii) a summary of the latest
research on the financial savings and
reduction in fatalities and serious
bodily injury crashes from the
implementation of cost-effective
roadway safety infrastructure
improvements; and
(iii) recommendations for State and
local governments on best practice
methods to install cost-effective
roadway safety infrastructure on high-
risk rural roads.
(3) Manual.--
(A) Development.--Based on the results of
the study under paragraph (2), the Secretary,
in consultation with the individuals and
entities described in paragraph (1)(C), shall
develop a best practices manual to support
Federal, State, and local efforts to reduce
fatalities and serious bodily injury crashes on
high-risk rural roads through the use of cost-
effective roadway safety infrastructure
improvements.
(B) Availability.--The manual shall be made
available to State and local governments not
later than 180 days after the date of
submission of the report under paragraph (2).
(C) Contents.--The manual shall include, at
a minimum, a list of cost-effective roadway
safety infrastructure improvements and best
practices on the installation of cost-effective
roadway safety infrastructure improvements on
high-risk rural roads.
(D) Use of manual.--Use of the manual shall
be voluntary and the manual shall not establish
any binding standards or legal duties on State
or local governments, or any other person.
SEC. 1113. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.
(a) Eligible Projects.--Section 149(b) of title 23, United
States Code, is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``in subsection (c)'' and
inserting ``in subsection (d)''; and
(B) by striking ``section 104(b)(2)'' and
inserting ``section 104(b)(4)'';
(2) in paragraph (5)--
(A) by inserting ``add turning lanes,''
after ``improve intersections,''; and
(B) by striking ``paragraph;'' and
inserting ``paragraph, including programs or
projects to improve incident and emergency
response or improve mobility, such as through
real-time traffic, transit, and multimodal
traveler information;'';
(3) in paragraph (6) by striking ``or'' at the end;
(4) in paragraph (7)(A)(ii) by striking ``published
in the list under subsection (f)(2)'' and inserting
``verified technologies (as defined in section 791 of
the Energy Policy Act of 2005 (42 U.S.C. 16131))'';
(5) by striking the matter following paragraph (7);
(6) by redesignating paragraph (7) as paragraph
(8); and
(7) by inserting after paragraph (6) the following:
``(7) if the project or program shifts traffic
demand to nonpeak hours or other transportation modes,
increases vehicle occupancy rates, or otherwise reduces
demand for roads through such means as telecommuting,
ridesharing, carsharing, alternative work hours, and
pricing; or''.
(b) Special Rules.--Section 149 of title 23, United States
Code, is amended--
(1) by redesignating subsections (c) through (h) as
subsections (d) through (i) respectively;
(2) by inserting after subsection (b) the
following:
``(c) Special Rules.--
``(1) Projects for pm-10 nonattainment areas.--A
State may obligate funds apportioned to the State under
section 104(b)(4) for a project or program for an area
that is nonattainment for ozone or carbon monoxide, or
both, and for PM-10 resulting from transportation
activities, without regard to any limitation of the
Department of Transportation relating to the type of
ambient air quality standard such project or program
addresses.
``(2) Electric vehicle and natural gas vehicle
infrastructure.--A State may obligate funds apportioned
under section 104(b)(4) for a project or program to
establish electric vehicle charging stations or natural
gas vehicle refueling stations for the use of battery
powered or natural gas fueled trucks or other motor
vehicles at any location in the State except that such
stations may not be established or supported where
commercial establishments serving motor vehicle users
are prohibited by section 111 of title 23, United
States Code.
``(3) HOV facilities.--No funds may be provided
under this section for a project which will result in
the construction of new capacity available to single
occupant vehicles unless the project consists of a high
occupancy vehicle facility available to single occupant
vehicles only at other than peak travel times.'';
(3) by striking subsection (d) (as redesignated by
paragraph (1)) and inserting the following:
``(d) States Flexibility.--
``(1) States without a nonattainment area.--If a
State does not have, and never has had, a nonattainment
area designated under the Clean Air Act (42 U.S.C. 7401
et seq.), the State may use funds apportioned to the
State under section 104(b)(4) for any project in the
State that--
``(A) would otherwise be eligible under
subsection (b) as if the project were carried
out in a nonattainment or maintenance area; or
``(B) is eligible under the surface
transportation program under section 133.
``(2) States with a nonattainment area.--
``(A) In general.--If a State has a
nonattainment area or maintenance area and
received funds in fiscal year 2009 under
section 104(b)(2)(D), as in effect on the day
before the date of enactment of the MAP-21,
above the amount of funds that the State would
have received based on the nonattainment and
maintenance area population of the State under
subparagraphs (B) and (C) of section 104(b)(2),
as in effect on the day before the date of
enactment of the MAP-21, the State may use for
any project that is eligible under the surface
transportation program under section 133 an
amount of funds apportioned to such State under
section 104(b)(4) that is equal to the product
obtained by multiplying--
``(i) the amount apportioned to
such State under section 104(b)(4)
(excluding the amount of funds reserved
under paragraph (l)); by
``(ii) the ratio calculated under
subparagraph (B).
``(B) Ratio.--For purposes of this
paragraph, the ratio shall be calculated as the
proportion that--
``(i) the amount for fiscal year
2009 such State was permitted by
section 149(c)(2), as in effect on the
day before the date of enactment of the
MAP-21, to obligate in any area of the
State for projects eligible under
section 133, as in effect on the day
before the date of enactment of the
MAP-21t; bears to
``(ii) the total apportionment to
such State for fiscal year 2009 under
section 104(b)(2), as in effect on the
day before the date of enactment of the
MAP-21.
``(3) Changes in designation.--If a new
nonattainment area is designated or a previously
designated nonattainment area is redesignated as an
attainment area in a State under the Clean Air Act (42
U.S.C. 7401 et seq.), the Secretary shall modify the
amount such State is permitted to obligate in any area
of the State for projects eligible under section
133.'';
(4) in subsection (f)(3) (as redesignated by
paragraph (1)) by striking ``104(b)(2)'' and inserting
``104(b)(4)'';
(5) in subsection (g) (as redesignated by paragraph
(1)) by striking paragraph (3) and inserting the
following:
``(3) Priority consideration.--States and
metropolitan planning organizations shall give priority
in areas designated as nonattainment or maintenance for
PM2.5 under the Clean Air Act (42 U.S.C. 7401 et seq.)
in distributing funds received for congestion
mitigation and air quality projects and programs from
apportionments under section 104(b)(4) to projects that
are proven to reduce PM2.5, including diesel
retrofits.'';
(6) by striking subsection (i) (as redesignated by
paragraph (1)) and inserting the following:
``(i) Evaluation and Assessment of Projects.--
``(1) Database.--
``(A) In general.--Using appropriate
assessments of projects funded under the
congestion mitigation and air quality program
and results from other research, the Secretary
shall maintain and disseminate a cumulative
database describing the impacts of the
projects, including specific information about
each project, such as the project name,
location, sponsor, cost, and, to the extent
already measured by the project sponsor, cost-
effectiveness, based on reductions in
congestion and emissions.
``(B) Availability.--The database shall be
published or otherwise made readily available
by the Secretary in electronically accessible
format and means, such as the Internet, for
public review.
``(2) Cost effectiveness.--
``(A) In general.--The Secretary, in
consultation with the Administrator of the
Environmental Protection Agency, shall evaluate
projects on a periodic basis and develop a
table or other similar medium that illustrates
the cost-effectiveness of a range of project
types eligible for funding under this section
as to how the projects mitigate congestion and
improve air quality.
``(B) Contents.--The table described in
subparagraph (A) shall show measures of cost-
effectiveness, such as dollars per ton of
emissions reduced, and assess those measures
over a variety of timeframes to capture impacts
on the planning timeframes outlined in section
134.
``(C) Use of table.--States and
metropolitan planning organizations shall
consider the information in the table when
selecting projects or developing performance
plans under subsection (l).
``(j) Optional Programmatic Eligibility.--
``(1) In general.--At the discretion of a
metropolitan planning organization, a technical
assessment of a selected program of projects may be
conducted through modeling or other means to
demonstrate the emissions reduction projection required
under this section.
``(2) Applicability.--If an assessment described in
paragraph (1) successfully demonstrates an emissions
reduction, all projects included in such assessment
shall be eligible for obligation under this section
without further demonstration of emissions reduction of
individual projects included in such assessment.
``(k) Priority for Use of Funds in PM2.5 Areas.--
``(1) In general.--For any State that has a
nonattainment or maintenance area for fine particulate
matter, an amount equal to 25 percent of the funds
apportioned to each State under section 104(b)(4) for a
nonattainment or maintenance area that are based all or
in part on the weighted population of such area in fine
particulate matter nonattainment shall be obligated to
projects that reduce such fine particulate matter
emissions in such area, including diesel retrofits.
``(2) Construction equipment and vehicles.--In
order to meet the requirements of paragraph (1), a
State or metropolitan planning organization may elect
to obligate funds to install diesel emission control
technology on nonroad diesel equipment or on-road
diesel equipment that is operated on a highway
construction project within a PM2.5 nonattainment or
maintenance area.
``(l) Performance Plan.--
``(1) In general.--Each metropolitan planning
organization serving a transportation management area
(as defined in section 134) with a population over
1,000,000 people representing a nonattainment or
maintenance area shall develop a performance plan
that--
``(A) includes an area baseline level for
traffic congestion and on-road mobile source
emissions for which the area is in
nonattainment or maintenance;
``(B) describes progress made in achieving
the performance targets described in section
150(d); and
``(C) includes a description of projects
identified for funding under this section and
how such projects will contribute to achieving
emission and traffic congestion reduction
targets.
``(2) Updated plans.--Performance plans shall be
updated biennially and include a separate report that
assesses the progress of the program of projects under
the previous plan in achieving the air quality and
traffic congestion targets of the previous plan.
``(m) Operating Assistance.--A State may obligate funds
apportioned under section 104(b)(2) in an area of such State
that is otherwise eligible for obligations of such funds for
operating costs under chapter 53 of title 49 or on a system
that was previously eligible under this section.''.
(c) Air Quality and Congestion Mitigation Measure Outcomes
Assessment Study.--
(1) In general.--The Secretary, in consultation
with the Administrator of the Environmental Protection
Agency, shall examine the outcomes of actions funded
under the congestion mitigation and air quality
improvement program since the date of enactment of the
SAFETEA-LU (Public Law 109-59).
(2) Goals.--The goals of the program shall
include--
(A) the assessment and documentation,
through outcomes research conducted on a
representative sample of cases, of--
(i) the emission reductions
achieved by federally supported surface
transportation actions intended to
reduce emissions or lessen traffic
congestion; and
(ii) the air quality and human
health impacts of those actions,
including potential unrecognized or
indirect consequences, attributable to
those actions;
(B) an expanded base of empirical evidence
on the air quality and human health impacts of
actions described in paragraph (1); and
(C) an increase in knowledge of--
(i) the factors determining the air
quality and human health changes
associated with transportation emission
reduction actions; and
(ii) other information to more
accurately understand the validity of
current estimation and modeling
routines and ways to improve those
routines.
(3) Administrative elements.--To carry out this
subsection, the Secretary shall--
(A) make a grant for the coordination,
selection, management, and reporting of
component studies to an independent scientific
research organization with the necessary
experience in successfully conducting
accountability and other studies on mobile
source air pollutants and associated health
effects;
(B) ensure that case studies are identified
and conducted by teams selected through a
competitive solicitation overseen by an
independent committee of unbiased experts; and
(C) ensure that all findings and reports
are peer-reviewed and published in a form that
presents the findings together with reviewer
comments.
(4) Report.--The Secretary shall submit to the
Committee on Environment and Public Works of the Senate
and the Committee on Transportation and Infrastructure
of the House of Representatives--
(A) not later than 1 year after the date of
enactment of the MAP-21, and for the following
year, a report providing an initial scoping and
plan, and status updates, respectively, for the
program under this subsection; and
(B) not later than 2 years after the date
of enactment of the MAP-21, a final report that
describes the findings of, and recommendations
resulting from, the program under this
subsection.
(5) Funding.--Of the amounts made available to
carry out section 104(a) for fiscal year 2013, the
Secretary shall make available to carry out this
subsection not more than $1,000,000.
SEC. 1114. TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM.
(a) In General.--Section 165 of title 23, United States
Code, is amended to read as follows:
``Sec. 165. Territorial and Puerto Rico highway program
``(a) Division of Funds.--Of funds made available in a
fiscal year for the territorial and Puerto Rico highway
program--
``(1) $150,000,000 shall be for the Puerto Rico
highway program under subsection (b); and
``(2) $40,000,000 shall be for the territorial
highway program under subsection (c).
``(b) Puerto Rico Highway Program.--
``(1) In general.--The Secretary shall allocate
funds made available to carry out this subsection to
the Commonwealth of Puerto Rico to carry out a highway
program in the Commonwealth.
``(2) Treatment of funds.--Amounts made available
to carry out this subsection for a fiscal year shall be
administered as follows:
``(A) Apportionment.--
``(i) In general.--For the purpose
of imposing any penalty under this
title or title 49, the amounts shall be
treated as being apportioned to Puerto
Rico under sections 104(b) and 144 (as
in effect for fiscal year 1997) for
each program funded under those
sections in an amount determined by
multiplying--
``(I) the aggregate of the
amounts for the fiscal year; by
``(II) the proportion
that--
``(aa) the amount
of funds apportioned to
Puerto Rico for each
such program for fiscal
year 1997; bears to
``(bb) the total
amount of funds
apportioned to Puerto
Rico for all such
programs for fiscal
year 1997.
``(ii) Exception.--Funds identified
under clause (i) as having been
apportioned for the national highway
system, the surface transportation
program, and the Interstate maintenance
program shall be deemed to have been
apportioned 50 percent for the national
highway performance program and 50
percent for the surface transportation
program for purposes of imposing such
penalties.
``(B) Penalty.--The amounts treated as
being apportioned to Puerto Rico under each
section referred to in subparagraph (A) shall
be deemed to be required to be apportioned to
Puerto Rico under that section for purposes of
the imposition of any penalty under this title
or title 49.
``(C) Eligible uses of funds.--Of amounts
allocated to Puerto Rico for the Puerto Rico
Highway Program for a fiscal year--
``(i) at least 50 percent shall be
available only for purposes eligible
under section 119;
``(ii) at least 25 percent shall be
available only for purposes eligible
under section 148; and
``(iii) any remaining funds may be
obligated for activities eligible under
chapter 1.
``(3) Effect on apportionments.--Except as
otherwise specifically provided, Puerto Rico shall not
be eligible to receive funds apportioned to States
under this title.
``(c) Territorial Highway Program.--
``(1) Territory defined.--In this subsection, the
term `territory' means any of the following territories
of the United States:
``(A) American Samoa.
``(B) The Commonwealth of the Northern
Mariana Islands.
``(C) Guam.
``(D) The United States Virgin Islands.
``(2) Program.--
``(A) In general.--Recognizing the mutual
benefits that will accrue to the territories
and the United States from the improvement of
highways in the territories, the Secretary may
carry out a program to assist each government
of a territory in the construction and
improvement of a system of arterial and
collector highways, and necessary inter-island
connectors, that is--
``(i) designated by the Governor or
chief executive officer of each
territory; and
``(ii) approved by the Secretary.
``(B) Federal share.--The Federal share of
Federal financial assistance provided to
territories under this subsection shall be in
accordance with section 120(g).
``(3) Technical assistance.--
``(A) In general.--To continue a long-range
highway development program, the Secretary may
provide technical assistance to the governments
of the territories to enable the territories,
on a continuing basis--
``(i) to engage in highway
planning;
``(ii) to conduct environmental
evaluations;
``(iii) to administer right-of-way
acquisition and relocation assistance
programs; and
``(iv) to design, construct,
operate, and maintain a system of
arterial and collector highways,
including necessary inter-island
connectors.
``(B) Form and terms of assistance.--
Technical assistance provided under
subparagraph (A), and the terms for the sharing
of information among territories receiving the
technical assistance, shall be included in the
agreement required by paragraph (5).
``(4) Nonapplicability of certain provisions.--
``(A) In general.--Except to the extent
that provisions of this chapter are determined
by the Secretary to be inconsistent with the
needs of the territories and the intent of this
subsection, this chapter (other than provisions
of this chapter relating to the apportionment
and allocation of funds) shall apply to funds
made available under this subsection.
``(B) Applicable provisions.--The agreement
required by paragraph (5) for each territory
shall identify the sections of this chapter
that are applicable to that territory and the
extent of the applicability of those sections.
``(5) Agreement.--
``(A) In general.--Except as provided in
subparagraph (D), none of the funds made
available under this subsection shall be
available for obligation or expenditure with
respect to any territory until the chief
executive officer of the territory has entered
into an agreement (including an agreement
entered into under section 215 as in effect on
the day before the enactment of this section)
with the Secretary providing that the
government of the territory shall--
``(i) implement the program in
accordance with applicable provisions
of this chapter and paragraph (4);
``(ii) design and construct a
system of arterial and collector
highways, including necessary inter-
island connectors, in accordance with
standards that are--
``(I) appropriate for each
territory; and
``(II) approved by the
Secretary;
``(iii) provide for the maintenance
of facilities constructed or operated
under this subsection in a condition to
adequately serve the needs of present
and future traffic; and
``(iv) implement standards for
traffic operations and uniform traffic
control devices that are approved by
the Secretary.
``(B) Technical assistance.--The agreement
required by subparagraph (A) shall--
``(i) specify the kind of technical
assistance to be provided under the
program;
``(ii) include appropriate
provisions regarding information
sharing among the territories; and
``(iii) delineate the oversight
role and responsibilities of the
territories and the Secretary.
``(C) Review and revision of agreement.--
The agreement entered into under subparagraph
(A) shall be reevaluated and, as necessary,
revised, at least every 2 years.
``(D) Existing agreements.--With respect to
an agreement under this subsection or an
agreement entered into under section 215 of
this title as in effect on the day before the
date of enactment of this subsection--
``(i) the agreement shall continue
in force until replaced by an agreement
entered into in accordance with
subparagraph (A); and
``(ii) amounts made available under
this subsection under the existing
agreement shall be available for
obligation or expenditure so long as
the agreement, or the existing
agreement entered into under
subparagraph (A), is in effect.
``(6) Eligible uses of funds.--
``(A) In general.--Funds made available
under this subsection may be used only for the
following projects and activities carried out
in a territory:
``(i) Eligible surface
transportation program projects
described in section 133(b).
``(ii) Cost-effective, preventive
maintenance consistent with section
116(e).
``(iii) Ferry boats, terminal
facilities, and approaches, in
accordance with subsections (b) and (c)
of section 129.
``(iv) Engineering and economic
surveys and investigations for the
planning, and the financing, of future
highway programs.
``(v) Studies of the economy,
safety, and convenience of highway use.
``(vi) The regulation and equitable
taxation of highway use.
``(vii) Such research and
development as are necessary in
connection with the planning, design,
and maintenance of the highway system.
``(B) Prohibition on use of funds for
routine maintenance.--None of the funds made
available under this subsection shall be
obligated or expended for routine maintenance.
``(7) Location of projects.--Territorial highway
program projects (other than those described in
paragraphs (2), (4), (7), (8), (14), and (19) of
section 133(b)) may not be undertaken on roads
functionally classified as local.''.
(b) Conforming Amendments.--
(1) Technical and conforming amendment.--The
analysis for chapter 1 of title 23, United States Code,
is amended by striking the item relating to section 165
and inserting the following:
``165. Territorial and Puerto Rico highway program.''.
(2) Territorial highway program.--
(A) Repeal.--Section 215 of title 23,
United States Code, is repealed.
(B) Technical and conforming amendment.--
The analysis for chapter 2 of title 23, United
States Code, is amended by striking the item
relating to section 215.
(C) Duncan hunter national defense
authorization act for fiscal year 2009.--
Section 3512(e) of the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009
(48 U.S.C. 1421r(e)) is amended by striking
``section 215'' and inserting ``section 165''.
SEC. 1115. NATIONAL FREIGHT POLICY.
(a) In General.--Chapter 1 of title 23, United States Code,
is amended by adding at the end the following:
``Sec. 167. National freight policy
``(a) In General.--It is the policy of the United States to
improve the condition and performance of the national freight
network to ensure that the national freight network provides
the foundation for the United States to compete in the global
economy and achieve each goal described in subsection (b).
``(b) Goals.--The goals of the national freight policy
are--
``(1) to invest in infrastructure improvements and
to implement operational improvements that--
``(A) strengthen the contribution of the
national freight network to the economic
competitiveness of the United States;
``(B) reduce congestion; and
``(C) increase productivity, particularly
for domestic industries and businesses that
create high-value jobs;
``(2) to improve the safety, security, and
resilience of freight transportation;
``(3) to improve the state of good repair of the
national freight network;
``(4) to use advanced technology to improve the
safety and efficiency of the national freight network;
``(5) to incorporate concepts of performance,
innovation, competition, and accountability into the
operation and maintenance of the national freight
network; and
``(6) to improve the economic efficiency of the
national freight network.
``(7) to reduce the environmental impacts of
freight movement on the national freight network;
``(c) Establishment of a National Freight Network.--
``(1) In general.--The Secretary shall establish a
national freight network in accordance with this
section to assist States in strategically directing
resources toward improved system performance for
efficient movement of freight on highways, including
national highway system, freight intermodal connectors
and aerotropolis transportation systems.
``(2) Network components.--The national freight
network shall consist of--
``(A) the primary freight network, as
designated by the Secretary under subsection
(d) (referred to in this section as the
`primary freight network') as most critical to
the movement of freight;
``(B) the portions of the Interstate System
not designated as part of the primary freight
network; and
``(C) critical rural freight corridors
established under subsection (e).
``(d) Designation of Primary Freight Network.--
``(1) Initial designation of primary freight
network.--
``(A) Designation.--Not later than 1 year
after the date of enactment of this section,
the Secretary shall designate a primary freight
network--
``(i) based on an inventory of
national freight volume conducted by
the Administrator of the Federal
Highway Administration, in consultation
with stakeholders, including system
users, transport providers, and States;
and
``(ii) that shall be comprised of
not more than 27,000 centerline miles
of existing roadways that are most
critical to the movement of freight.
``(B) Factors for designation.--In
designating the primary freight network, the
Secretary shall consider--
``(i) the origins and destinations
of freight movement in the United
States;
``(ii) the total freight tonnage
and value of freight moved by highways;
``(iii) the percentage of annual
average daily truck traffic in the
annual average daily traffic on
principal arterials;
``(iv) the annual average daily
truck traffic on principal arterials;
``(v) land and maritime ports of
entry;
``(vi) access to energy
exploration, development, installation,
or production areas;
``(vii) population centers; and
``(viii) network connectivity.
``(2) Additional miles on primary freight
network.--In addition to the miles initially designated
under paragraph (1), the Secretary may increase the
number of miles designated as part of the primary
freight network by not more than 3,000 additional
centerline miles of roadways (which may include
existing or planned roads) critical to future efficient
movement of goods on the primary freight network.
``(3) Redesignation of primary freight network.--
Effective beginning 10 years after the designation of
the primary freight network and every 10 years
thereafter, using the designation factors described in
paragraph (1), the Secretary shall redesignate the
primary freight network (including additional mileage
described in paragraph (2)).
``(e) Critical Rural Freight Corridors.--A State may
designate a road within the borders of the State as a critical
rural freight corridor if the road--
``(1) is a rural principal arterial roadway and has
a minimum of 25 percent of the annual average daily
traffic of the road measured in passenger vehicle
equivalent units from trucks (FHWA vehicle class 8 to
13);
``(2) provides access to energy exploration,
development, installation, or production areas;
``(3) connects the primary freight network, a
roadway described in paragraph (1) or (2), or
Interstate System to facilities that handle more than--
``(A) 50,000 20-foot equivalent units per
year; or
``(B) 500,000 tons per year of bulk
commodities.
``(f) National Freight Strategic Plan.--
``(1) Initial development of national freight
strategic plan.--Not later than 3 years after the date
of enactment of this section, the Secretary shall, in
consultation with State departments of transportation
and other appropriate public and private transportation
stakeholders, develop and post on the Department of
Transportation public website a national freight
strategic plan that shall include--
``(A) an assessment of the condition and
performance of the national freight network;
``(B) an identification of highway
bottlenecks on the national freight network
that create significant freight congestion
problems, based on a quantitative methodology
developed by the Secretary, which shall, at a
minimum, include--
``(i) information from the Freight
Analysis Network of the Federal Highway
Administration; and
``(ii) to the maximum extent
practicable, an estimate of the cost of
addressing each bottleneck and any
operational improvements that could be
implemented;
``(C) forecasts of freight volumes for the
20-year period beginning in the year during
which the plan is issued;
``(D) an identification of major trade
gateways and national freight corridors that
connect major population centers, trade
gateways, and other major freight generators
for current and forecasted traffic and freight
volumes, the identification of which shall be
revised, as appropriate, in subsequent plans;
``(E) an assessment of statutory,
regulatory, technological, institutional,
financial, and other barriers to improved
freight transportation performance (including
opportunities for overcoming the barriers);
``(F) an identification of routes providing
access to energy exploration, development,
installation, or production areas;
``(G) best practices for improving the
performance of the national freight network;
``(H) best practices to mitigate the
impacts of freight movement on communities;
``(I) a process for addressing multistate
projects and encouraging jurisdictions to
collaborate; and
``(J) strategies to improve freight
intermodal connectivity.
``(2) Updates to national freight strategic plan.--
Not later than 5 years after the date of completion of
the first national freight strategic plan under
paragraph (1), and every 5 years thereafter, the
Secretary shall update and repost on the Department of
Transportation public website a revised national
freight strategic plan.
``(g) Freight Transportation Conditions and Performance
Reports.--Not later than 2 years after the date of enactment of
this section, and biennially thereafter, the Secretary shall
prepare a report that contains a description of the conditions
and performance of the national freight network in the United
States.
``(h) Transportation Investment Data and Planning Tools.--
``(1) In general.--Not later than 1 year after the
date of enactment of this section, the Secretary
shall--
``(A) begin development of new tools and
improvement of existing tools or improve
existing tools to support an outcome-oriented,
performance-based approach to evaluate proposed
freight-related and other transportation
projects, including--
``(i) methodologies for systematic
analysis of benefits and costs;
``(ii) tools for ensuring that the
evaluation of freight-related and other
transportation projects could consider
safety, economic competitiveness,
environmental sustainability, and
system condition in the project
selection process; and
``(iii) other elements to assist in
effective transportation planning;
``(B) identify transportation-related model
data elements to support a broad range of
evaluation methods and techniques to assist in
making transportation investment decisions; and
``(C) at a minimum, in consultation with
other relevant Federal agencies, consider any
improvements to existing freight flow data
collection efforts that could reduce identified
freight data gaps and deficiencies and help
improve forecasts of freight transportation
demand.
``(2) Consultation.--The Secretary shall consult
with Federal, State, and other stakeholders to develop,
improve, and implement the tools and collect the data
in paragraph (1).
``(i) Definition of Aerotropolis Transportation System.--In
this section, the term `aerotropolis transportation system'
means a planned and coordinated multimodal freight and
passenger transportation network that, as determined by the
Secretary, provides efficient, cost-effective, sustainable, and
intermodal connectivity to a defined region of economic
significance centered around a major airport.''.
(b) Conforming Amendment.--The analysis for chapter 1 of
title 23, United States Code, is amended by adding at the end
the following:
``167. National freight program.''.
SEC. 1116. PRIORITIZATION OF PROJECTS TO IMPROVE FREIGHT MOVEMENT.
(a) In General.--Notwithstanding section 120 of title 23,
United States Code, the Secretary may increase the Federal
share payable for any project to 95 percent for projects on the
Interstate System and 90 percent for any other project if the
Secretary certifies that the project meets the requirements of
this section.
(b) Increased Funding.--To be eligible for the increased
Federal funding share under this section, a project shall--
(1) demonstrate the improvement made by the project
to the efficient movement of freight, including making
progress towards meeting performance targets for
freight movement established under section 150(d) of
title 23, United States Code; and
(2) be identified in a State freight plan developed
pursuant to section 1118.
(c) Eligible Projects.--Eligible projects to improve the
movement of freight under this section may include, but are not
limited to--
(1) construction, reconstruction, rehabilitation,
and operational improvements directly relating to
improving freight movement;
(2) intelligent transportation systems and other
technology to improve the flow of freight;
(3) efforts to reduce the environmental impacts of
freight movement on the primary freight network;
(4) railway-highway grade separation;
(5) geometric improvements to interchanges and
ramps.
(6) truck-only lanes;
(7) climbing and runaway truck lanes;
(8) truck parking facilities eligible for funding
under section 1401;
(9) real-time traffic, truck parking, roadway
condition, and multimodal transportation information
systems;
(10) improvements to freight intermodal connectors;
and
(11) improvements to truck bottlenecks.
SEC. 1117. STATE FREIGHT ADVISORY COMMITTEES.
(a) In General.--The Secretary shall encourage each State
to establish a freight advisory committee consisting of a
representative cross-section of public and private sector
freight stakeholders, including representatives of ports,
shippers, carriers, freight-related associations, the freight
industry workforce, the transportation department of the State,
and local governments.
(b) Role of Committee.--A freight advisory committee of a
State described in subsection (a) shall--
(1) advise the State on freight-related priorities,
issues, projects, and funding needs;
(2) serve as a forum for discussion for State
transportation decisions affecting freight mobility;
(3) communicate and coordinate regional priorities
with other organizations;
(4) promote the sharing of information between the
private and public sectors on freight issues; and
(5) participate in the development of the freight
plan of the State described in section 1118.
SEC. 1118. STATE FREIGHT PLANS.
(a) In General.--The Secretary shall encourage each State
to develop a freight plan that provides a comprehensive plan
for the immediate and long-range planning activities and
investments of the State with respect to freight.
(b) Plan Contents.--A freight plan described in subsection
(a) shall include, at a minimum--
(1) an identification of significant freight system
trends, needs, and issues with respect to the State;
(2) a description of the freight policies,
strategies, and performance measures that will guide
the freight-related transportation investment decisions
of the State;
(3) a description of how the plan will improve the
ability of the State to meet the national freight goals
established under section 167 of title 23, United
States Code;
(4) evidence of consideration of innovative
technologies and operational strategies, including
intelligent transportation systems, that improve the
safety and efficiency of freight movement;
(5) in the case of routes on which travel by heavy
vehicles (including mining, agricultural, energy cargo
or equipment, and timber vehicles) is projected to
substantially deteriorate the condition of roadways, a
description of improvements that may be required to
reduce or impede the deterioration; and
(6) an inventory of facilities with freight
mobility issues, such as truck bottlenecks, within the
State, and a description of the strategies the State is
employing to address those freight mobility issues.
(c) Relationship to Long-range Plan.--A freight plan
described in subsection (a) may be developed separate from or
incorporated into the statewide strategic long-range
transportation plan required by section 135 of title 23, United
States Code.
SEC. 1119. FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS.
(a) In General.--Chapter 2 of title 23, United States Code,
is amended by striking sections 201 through 204 and inserting
the following:
``Sec. 201. Federal lands and tribal transportation programs
``(a) Purpose.--Recognizing the need for all public Federal
and tribal transportation facilities to be treated under
uniform policies similar to the policies that apply to Federal-
aid highways and other public transportation facilities, the
Secretary of Transportation, in collaboration with the
Secretaries of the appropriate Federal land management
agencies, shall coordinate a uniform policy for all public
Federal and tribal transportation facilities that shall apply
to Federal lands transportation facilities, tribal
transportation facilities, and Federal lands access
transportation facilities.
``(b) Availability of Funds.--
``(1) Availability.--Funds authorized for the
tribal transportation program, the Federal lands
transportation program, and the Federal lands access
program shall be available for contract upon
apportionment, or on October 1 of the fiscal year for
which the funds were authorized if no apportionment is
required.
``(2) Amount remaining.--Any amount remaining
unexpended for a period of 3 years after the close of
the fiscal year for which the funds were authorized
shall lapse.
``(3) Obligations.--The Secretary of the department
responsible for the administration of funds under this
subsection may incur obligations, approve projects, and
enter into contracts under such authorizations, which
shall be considered to be contractual obligations of
the United States for the payment of the cost thereof,
the funds of which shall be considered to have been
expended when obligated.
``(4) Expenditure.--
``(A) In general.--Any funds authorized for
any fiscal year after the date of enactment of
this section under the Federal lands
transportation program, the Federal lands
access program, and the tribal transportation
program shall be considered to have been
expended if a sum equal to the total of the
sums authorized for the fiscal year and
previous fiscal years have been obligated.
``(B) Credited funds.--Any funds described
in subparagraph (A) that are released by
payment of final voucher or modification of
project authorizations shall be--
``(i) credited to the balance of
unobligated authorizations; and
``(ii) immediately available for
expenditure.
``(5) Applicability.--This section shall not apply
to funds authorized before the date of enactment of
this paragraph.
``(6) Contractual obligation.--
``(A) In general.--Notwithstanding any
other provision of law (including regulations),
the authorization by the Secretary, or the
Secretary of the appropriate Federal land
management agency if the agency is the
contracting office, of engineering and related
work for the development, design, and
acquisition associated with a construction
project, whether performed by contract or
agreement authorized by law, or the approval by
the Secretary of plans, specifications, and
estimates for construction of a project, shall
be considered to constitute a contractual
obligation of the Federal Government to pay the
total eligible cost of--
``(i) any project funded under this
title; and
``(ii) any project funded pursuant
to agreements authorized by this title
or any other title.
``(B) Effect.--Nothing in this paragraph--
``(i) affects the application of
the Federal share associated with the
project being undertaken under this
section; or
``(ii) modifies the point of
obligation associated with Federal
salaries and expenses.
``(7) Federal share.--
``(A) Tribal and federal lands
transportation program.--The Federal share of
the cost of a project carried out under the
Federal lands transportation program or the
tribal transportation program shall be 100
percent.
``(B) Federal lands access program.--The
Federal share of the cost of a project carried
out under the Federal lands access program
shall be determined in accordance with section
120.
``(c) Transportation Planning.--
``(1) Transportation planning procedures.--In
consultation with the Secretary of each appropriate
Federal land management agency, the Secretary shall
implement transportation planning procedures for
Federal lands and tribal transportation facilities that
are consistent with the planning processes required
under sections 134 and 135.
``(2) Approval of transportation improvement
program.--The transportation improvement program
developed as a part of the transportation planning
process under this section shall be approved by the
Secretary.
``(3) Inclusion in other plans.--Each regionally
significant tribal transportation program, Federal
lands transportation program, and Federal lands access
program project shall be--
``(A) developed in cooperation with State
and metropolitan planning organizations; and
``(B) included in appropriate tribal
transportation program plans, Federal lands
transportation program plans, Federal lands
access program plans, State and metropolitan
plans, and transportation improvement programs.
``(4) Inclusion in state programs.--The approved
tribal transportation program, Federal lands
transportation program, and Federal lands access
program transportation improvement programs shall be
included in appropriate State and metropolitan planning
organization plans and programs without further action
on the transportation improvement program.
``(5) Asset management.--The Secretary and the
Secretary of each appropriate Federal land management
agency shall, to the extent appropriate, implement
safety, bridge, pavement, and congestion management
systems for facilities funded under the tribal
transportation program and the Federal lands
transportation program in support of asset management.
``(6) Data collection.--
``(A) Data collection.--The Secretaries of
the appropriate Federal land management
agencies shall collect and report data
necessary to implement the Federal lands
transportation program, the Federal lands
access program, and the tribal transportation
program in accordance with the Indian Self-
Determination and Education Assistance Act (25
U.S.C. 450 et seq.), including--
``(i) inventory and condition
information on Federal lands
transportation facilities and tribal
transportation facilities; and
``(ii) bridge inspection and
inventory information on any Federal
bridge open to the public.
``(B) Standards.--The Secretary, in
coordination with the Secretaries of the
appropriate Federal land management agencies,
shall define the collection and reporting data
standards.
``(7) Administrative expenses.--To implement the
activities described in this subsection, including
direct support of transportation planning activities
among Federal land management agencies, the Secretary
may use not more than 5 percent for each fiscal year of
the funds authorized for programs under sections 203
and 204.
``(d) Reimbursable Agreements.--In carrying out work under
reimbursable agreements with any State, local, or tribal
government under this title, the Secretary--
``(1) may, without regard to any other provision of
law (including regulations), record obligations against
accounts receivable from the entity; and
``(2) shall credit amounts received from the entity
to the appropriate account, which shall occur not later
than 90 days after the date of the original request by
the Secretary for payment.
``(e) Transfers.--
``(1) In general.--To enable the efficient use of
funds made available for the Federal lands
transportation program and the Federal lands access
program, the funds may be transferred by the Secretary
within and between each program with the concurrence
of, as appropriate--
``(A) the Secretary;
``(B) the affected Secretaries of the
respective Federal land management agencies;
``(C) State departments of transportation;
and
``(D) local government agencies.
``(2) Credit.--The funds described in paragraph (1)
shall be credited back to the loaning entity with funds
that are currently available for obligation at the time
of the credit.
``Sec. 202. Tribal transportation program
``(a) Use of Funds.--
``(1) In general.--Funds made available under the
tribal transportation program shall be used by the
Secretary of Transportation and the Secretary of the
Interior to pay the costs of--
``(A)(i) transportation planning, research,
maintenance, engineering, rehabilitation,
restoration, construction, and reconstruction
of tribal transportation facilities;
``(ii) adjacent vehicular parking areas;
``(iii) interpretive signage;
``(iv) acquisition of necessary scenic
easements and scenic or historic sites;
``(v) provisions for pedestrians and
bicycles;
``(vi) environmental mitigation in or
adjacent to tribal land--
``(I) to improve public safety and
reduce vehicle-caused wildlife
mortality while maintaining habitat
connectivity; and
``(II) to mitigate the damage to
wildlife, aquatic organism passage,
habitat, and ecosystem connectivity,
including the costs of constructing,
maintaining, replacing, or removing
culverts and bridges, as appropriate;
``(vii) construction and reconstruction of
roadside rest areas, including sanitary and
water facilities; and
``(viii) other appropriate public road
facilities as determined by the Secretary;
``(B) operation and maintenance of transit
programs and facilities that are located on, or
provide access to, tribal land, or are
administered by a tribal government; and
``(C) any transportation project eligible
for assistance under this title that is located
within, or that provides access to, tribal
land, or is associated with a tribal
government.
``(2) Contract.--In connection with an activity
described in paragraph (1), the Secretary and the
Secretary of the Interior may enter into a contract or
other appropriate agreement with respect to the
activity with--
``(A) a State (including a political
subdivision of a State); or
``(B) an Indian tribe.
``(3) Indian labor.--Indian labor may be employed,
in accordance with such rules and regulations as may be
promulgated by the Secretary of the Interior, to carry
out any construction or other activity described in
paragraph (1).
``(4) Federal employment.--No maximum limitation on
Federal employment shall be applicable to the
construction or improvement of tribal transportation
facilities.
``(5) Funds for construction and improvement.--All
funds made available for the construction and
improvement of tribal transportation facilities shall
be administered in conformity with regulations and
agreements jointly approved by the Secretary and the
Secretary of the Interior.
``(6) Administrative expenses.--Of the funds
authorized to be appropriated for the tribal
transportation program, not more than 6 percent may be
used by the Secretary or the Secretary of the Interior
for program management and oversight and project-
related administrative expenses.
``(7) Tribal technical assistance centers.--The
Secretary of the Interior may reserve amounts from
administrative funds of the Bureau of Indian Affairs
that are associated with the tribal transportation
program to fund tribal technical assistance centers
under section 504(b).
``(8) Maintenance.--
``(A) Use of funds.--Notwithstanding any
other provision of this title, of the amount of
funds allocated to an Indian tribe from the
tribal transportation program, for the purpose
of maintenance (excluding road sealing, which
shall not be subject to any limitation), the
Secretary shall not use an amount more than the
greater of--
``(i) an amount equal to 25
percent; or
``(ii) $500,000.
``(B) Responsibility of bureau of indian
affairs and secretary of the interior.--
``(i) Bureau of indian affairs.--
The Bureau of Indian Affairs shall
retain primary responsibility,
including annual funding request
responsibility, for Bureau of Indian
Affairs road maintenance programs on
Indian reservations.
``(ii) Secretary of the interior.--
The Secretary of the Interior shall
ensure that funding made available
under this subsection for maintenance
of tribal transportation facilities for
each fiscal year is supplementary to,
and not in lieu of, any obligation of
funds by the Bureau of Indian Affairs
for road maintenance programs on Indian
reservations.
``(C) Tribal-state road maintenance
agreements.--
``(i) In general.--An Indian tribe
and a State may enter into a road
maintenance agreement under which an
Indian tribe shall assume the
responsibility of the State for--
``(I) tribal transportation
facilities; and
``(II) roads providing
access to tribal transportation
facilities.
``(ii) Requirements.--Agreements
entered into under clause (i) shall--
``(I) be negotiated between
the State and the Indian tribe;
and
``(II) not require the
approval of the Secretary.
``(9) Cooperation.--
``(A) In general.--The cooperation of
States, counties, or other local subdivisions
may be accepted in construction and
improvement.
``(B) Funds received.--Any funds received
from a State, county, or local subdivision
shall be credited to appropriations available
for the tribal transportation program.
``(10) Competitive bidding.--
``(A) Construction.--
``(i) In general.--Subject to
clause (ii) and subparagraph (B),
construction of each project shall be
performed by contract awarded by
competitive bidding.
``(ii) Exception.--Clause (i) shall
not apply if the Secretary or the
Secretary of the Interior affirmatively
finds that, under the circumstances
relating to the project, a different
method is in the public interest.
``(B) Applicability.--Notwithstanding
subparagraph (A), section 23 of the Act of June
25, 1910 (25 U.S.C. 47) and section 7(b) of the
Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450e(b)) shall apply
to all funds administered by the Secretary of
the Interior that are appropriated for the
construction and improvement of tribal
transportation facilities.
``(b) Funds Distribution.--
``(1) National tribal transportation facility
inventory.--
``(A) In general.--The Secretary of the
Interior, in cooperation with the Secretary,
shall maintain a comprehensive national
inventory of tribal transportation facilities
that are eligible for assistance under the
tribal transportation program.
``(B) Transportation facilities included in
the inventory.--For purposes of identifying the
tribal transportation system and determining
the relative transportation needs among Indian
tribes, the Secretary shall include, at a
minimum, transportation facilities that are
eligible for assistance under the tribal
transportation program that an Indian tribe has
requested, including facilities that--
``(i) were included in the Bureau
of Indian Affairs system inventory
prior to October 1, 2004;
``(ii) are owned by an Indian
tribal government;
``(iii) are owned by the Bureau of
Indian Affairs;
``(iv) were constructed or
reconstructed with funds from the
Highway Trust Fund under the Indian
reservation roads program since 1983;
``(v) are public roads or bridges
within the exterior boundary of Indian
reservations, Alaska Native villages,
and other recognized Indian communities
(including communities in former Indian
reservations in the State of Oklahoma)
in which the majority of residents are
American Indians or Alaska Natives;
``(vi) are public roads within or
providing access to an Indian
reservation or Indian trust land or
restricted Indian land that is not
subject to fee title alienation without
the approval of the Federal Government,
or Indian or Alaska Native villages,
groups, or communities in which Indians
and Alaska Natives reside, whom the
Secretary of the Interior has
determined are eligible for services
generally available to Indians under
Federal laws specifically applicable to
Indians; or
``(vii) are primary access routes
proposed by tribal governments,
including roads between villages, roads
to landfills, roads to drinking water
sources, roads to natural resources
identified for economic development,
and roads that provide access to
intermodal terminals, such as airports,
harbors, or boat landings.
``(C) Limitation on primary access
routes.--For purposes of this paragraph, a
proposed primary access route is the shortest
practicable route connecting 2 points of the
proposed route.
``(D) Additional facilities.--Nothing in
this paragraph precludes the Secretary from
including additional transportation facilities
that are eligible for funding under the tribal
transportation program in the inventory used
for the national funding allocation if such
additional facilities are included in the
inventory in a uniform and consistent manner
nationally.
``(E) Bridges.--All bridges in the
inventory shall be recorded in the national
bridge inventory administered by the Secretary
under section 144.
``(2) Regulations.--Notwithstanding sections 563(a)
and 565(a) of title 5, the Secretary of the Interior
shall maintain any regulations governing the tribal
transportation program.
``(3) Basis for funding formula.--
``(A) Basis.--
``(i) In general.--After making the
set asides authorized under
subparagraph (C) and subsections (c),
(d), and (e) on October 1 of each
fiscal year, the Secretary shall
distribute the remainder authorized to
be appropriated for the tribal
transportation program under this
section among Indian tribes as follows:
``(I) For fiscal year
2013--
``(aa) for each
Indian tribe, 80
percent of the total
relative need
distribution factor and
population adjustment
factor for the fiscal
year 2011 funding
amount made available
to that Indian tribe;
and
``(bb) the
remainder using tribal
shares as described in
subparagraphs (B) and
(C).
``(II) For fiscal year
2014--
``(aa) for each
Indian tribe, 60
percent of the total
relative need
distribution factor and
population adjustment
factor for the fiscal
year 2011 funding
amount made available
to that Indian tribe;
and
``(bb) the
remainder using tribal
shares as described in
subparagraphs (B) and
(C).
``(III) For fiscal year
2015--
``(aa) for each
Indian tribe, 40
percent of the total
relative need
distribution factor and
population adjustment
factor for the fiscal
year 2011 funding
amount made available
to that Indian tribe;
and
``(bb) the
remainder using tribal
shares as described in
subparagraphs (B) and
(C).
``(IV) For fiscal year 2016
and thereafter--
``(aa) for each
Indian tribe, 20
percent of the total
relative need
distribution factor and
population adjustment
factor for the fiscal
year 2011 funding
amount made available
to that Indian tribe;
and
``(bb) the
remainder using tribal
shares as described in
subparagraphs (B) and
(C).
``(ii) Tribal high priority
projects.--The High Priority Projects
program as included in the Tribal
Transportation Allocation Methodology
of part 170 of title 25, Code of
Federal Regulations (as in effect on
the date of enactment of the MAP-21),
shall not continue in effect.
``(B) Tribal shares.--Tribal shares under
this program shall be determined using the
national tribal transportation facility
inventory as calculated for fiscal year 2012,
and the most recent data on American Indian and
Alaska Native population within each Indian
tribe's American Indian/Alaska Native
Reservation or Statistical Area, as computed
under the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C.
4101 et seq.), in the following manner:
``(i) 27 percent in the ratio that
the total eligible road mileage in each
tribe bears to the total eligible road
mileage of all American Indians and
Alaskan Natives. For the purposes of
this calculation, eligible road mileage
shall be computed based on the
inventory described in paragraph (1),
using only facilities included in the
inventory described in clause (i),
(ii), or (iii) of paragraph (1)(B).
``(ii) 39 percent in the ratio that
the total population in each tribe
bears to the total population of all
American Indians and Alaskan Natives.
``(iii) 34 percent shall be divided
equally among each Bureau of Indian
Affairs region. Within each region,
such share of funds shall be
distributed to each Indian tribe in the
ratio that the average total relative
need distribution factors and
population adjustment factors from
fiscal years 2005 through 2011 for a
tribe bears to the average total of
relative need distribution factors and
population adjustment factors for
fiscal years 2005 through 2011 in that
region.
``(C) Tribal supplemental funding.--
``(i) Tribal supplemental funding
amount.--Of funds made available for
each fiscal year for the tribal
transportation program, the Secretary
shall set aside the following amount
for a tribal supplemental program:
``(I) If the amount made
available for the tribal
transportation program is less
than or equal to $275,000,000,
30 percent of such amount.
``(II) If the amount made
available for the tribal
transportation program exceeds
$275,000,000--
``(aa) $82,500,000;
plus
``(bb) 12.5 percent
of the amount made
available for the
tribal transportation
program in excess of
$275,000,000.
``(ii) Tribal supplemental
allocation.--The Secretary shall
distribute tribal supplemental funds as
follows:
``(I) Distribution among
regions.--Of the amounts set
aside under clause (i), the
Secretary shall distribute to
each region of the Bureau of
Indian Affairs a share of
tribal supplemental funds in
proportion to the regional
total of tribal shares based on
the cumulative tribal shares of
all Indian tribes within such
region under subparagraph (B).
``(II) Distribution within
a region.--Of the amount that a
region receives under subclause
(I), the Secretary shall
distribute tribal supplemental
funding among Indian tribes
within such region as follows:
``(aa) Tribal
supplemental amounts.--
The Secretary shall
determine--
``(AA)
which such
Indian tribes
would be
entitled under
subparagraph
(A) to receive
in a fiscal
year less
funding than
they would
receive in
fiscal year
2011 pursuant
to the relative
need
distribution
factor and
population
adjustment
factor, as
described in
subpart C of
part 170 of
title 25, Code
of Federal
Regulations (as
in effect on
the date of
enactment of
the MAP-21);
and
``(BB) the
combined amount
that such
Indian tribes
would be
entitled to
receive in
fiscal year
2011 pursuant
to such
relative need
distribution
factor and
population
adjustment
factor in
excess of the
amount that
they would be
entitled to
receive in the
fiscal year
under
subparagraph
(B).
``(bb) Combined
amount.--Subject to
subclause (III), the
Secretary shall
distribute to each
Indian tribe that meets
the criteria described
in item (aa)(AA) a
share of funding under
this subparagraph in
proportion to the share
of the combined amount
determined under item
(aa)(BB) attributable
to such Indian tribe.
``(III) Ceiling.--An Indian
tribe may not receive under
subclause (II) and based on its
tribal share under subparagraph
(A) a combined amount that
exceeds the amount that such
Indian tribe would be entitled
to receive in fiscal year 2011
pursuant to the relative need
distribution factor and
population adjustment factor,
as described in subpart C of
part 170 of title 25, Code of
Federal Regulations (as in
effect on the date of enactment
of the MAP-21).
``(IV) Other amounts.--If
the amount made available for a
region under subclause (I)
exceeds the amount distributed
among Indian tribes within that
region under subclause (II),
the Secretary shall distribute
the remainder of such region's
funding under such subclause
among all Indian tribes in that
region in proportion to the
combined amount that each such
Indian tribe received under
subparagraph (A) and subclauses
(I), (II), and (III).]
``(4) Transferred funds.--
``(A) In general.--Not later than 30 days
after the date on which funds are made
available to the Secretary of the Interior
under this paragraph, the funds shall be
distributed to, and made available for
immediate use by, eligible Indian tribes, in
accordance with the formula for distribution of
funds under the tribal transportation program.
``(B) Use of funds.--Notwithstanding any
other provision of this section, funds made
available to Indian tribes for tribal
transportation facilities shall be expended on
projects identified in a transportation
improvement program approved by the Secretary.
``(5) Health and safety assurances.--
Notwithstanding any other provision of law, an Indian
tribal government may approve plans, specifications,
and estimates and commence road and bridge construction
with funds made available from the tribal
transportation program through a contract or agreement
under Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.), if the Indian
tribal government--
``(A) provides assurances in the contract
or agreement that the construction will meet or
exceed applicable health and safety standards;
``(B) obtains the advance review of the
plans and specifications from a State-licensed
civil engineer that has certified that the
plans and specifications meet or exceed the
applicable health and safety standards; and
``(C) provides a copy of the certification
under subparagraph (A) to the Deputy Assistant
Secretary for Tribal Government Affairs,
Department of Transportation, or the Assistant
Secretary for Indian Affairs, Department of the
Interior, as appropriate.
``(6) Contracts and agreements with indian
tribes.--
``(A) In general.--Notwithstanding any
other provision of law or any interagency
agreement, program guideline, manual, or policy
directive, all funds made available through the
Secretary of the Interior under this chapter
and section 125(e) for tribal transportation
facilities to pay for the costs of programs,
services, functions, and activities, or
portions of programs, services, functions, or
activities, that are specifically or
functionally related to the cost of planning,
research, engineering, and construction of any
tribal transportation facility shall be made
available, upon request of the Indian tribal
government, to the Indian tribal government for
contracts and agreements for such planning,
research, engineering, and construction in
accordance with Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et
seq.).
``(B) Exclusion of agency participation.--
All funds, including contract support costs,
for programs, functions, services, or
activities, or portions of programs, services,
functions, or activities, including supportive
administrative functions that are otherwise
contractible to which subparagraph (A) applies,
shall be paid in accordance with subparagraph
(A), without regard to the organizational level
at which the Department of the Interior has
previously carried out such programs,
functions, services, or activities.
``(7) Contracts and agreements with indian
tribes.--
``(A) In general.--Notwithstanding any
other provision of law or any interagency
agreement, program guideline, manual, or policy
directive, all funds made available to an
Indian tribal government under this chapter for
a tribal transportation facility program or
project shall be made available, on the request
of the Indian tribal government, to the Indian
tribal government for use in carrying out, in
accordance with the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450 et
seq.), contracts and agreements for the
planning, research, design, engineering,
construction, and maintenance relating to the
program or project.
``(B) Exclusion of agency participation.--
In accordance with subparagraph (A), all funds,
including contract support costs, for a program
or project to which subparagraph (A) applies
shall be paid to the Indian tribal government
without regard to the organizational level at
which the Department of the Interior has
previously carried out, or the Department of
Transportation has previously carried out under
the tribal transportation program, the
programs, functions, services, or activities
involved.
``(C) Consortia.--Two or more Indian tribes
that are otherwise eligible to participate in a
program or project to which this chapter
applies may form a consortium to be considered
as a single Indian tribe for the purpose of
participating in the project under this
section.
``(D) Secretary as signatory.--
Notwithstanding any other provision of law, the
Secretary is authorized to enter into a funding
agreement with an Indian tribal government to
carry out a tribal transportation facility
program or project under subparagraph (A) that
is located on an Indian reservation or provides
access to the reservation or a community of the
Indian tribe.
``(E) Funding.--The amount an Indian tribal
government receives for a program or project
under subparagraph (A) shall equal the sum of
the funding that the Indian tribal government
would otherwise receive for the program or
project in accordance with the funding formula
established under this subsection and such
additional amounts as the Secretary determines
equal the amounts that would have been withheld
for the costs of the Bureau of Indian Affairs
for administration of the program or project.
``(F) Eligibility.--
``(i) In general.--Subject to
clause (ii) and the approval of the
Secretary, funds may be made available
under subparagraph (A) to an Indian
tribal government for a program or
project in a fiscal year only if the
Indian tribal government requesting
such funds demonstrates to the
satisfaction of the Secretary financial
stability and financial management
capability during the 3 fiscal years
immediately preceding the fiscal year
for which the request is being made.
``(ii) Considerations.--An Indian
tribal government that had no
uncorrected significant and material
audit exceptions in the required annual
audit of the contracts or self-
governance funding agreements made by
the Indian tribe with any Federal
agency under the Indian Self-
Determination and Education Assistance
Act (25 U.S.C. 450 et seq.) during the
3-fiscal year period referred in clause
(i) shall be conclusive evidence of the
financial stability and financial
management capability of the Indian
tribe for purposes of clause (i).
``(G) Assumption of functions and duties.--
An Indian tribal government receiving funding
under subparagraph (A) for a program or project
shall assume all functions and duties that the
Secretary of the Interior would have performed
with respect to a program or project under this
chapter, other than those functions and duties
that inherently cannot be legally transferred
under the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et
seq.).
``(H) Powers.--An Indian tribal government
receiving funding under subparagraph (A) for a
program or project shall have all powers that
the Secretary of the Interior would have
exercised in administering the funds
transferred to the Indian tribal government for
such program or project under this section if
the funds had not been transferred, except to
the extent that such powers are powers that
inherently cannot be legally transferred under
the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.).
``(I) Dispute resolution.--In the event of
a disagreement between the Secretary or the
Secretary of the Interior and an Indian tribe
over whether a particular function, duty, or
power may be lawfully transferred to the Indian
tribe under the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et
seq.), the Indian tribe shall have the right to
pursue all alternative dispute resolution and
appeal procedures authorized by that Act,
including regulations issued to carry out the
Act.
``(J) Termination of contract or
agreement.--On the date of the termination of a
contract or agreement under this section by an
Indian tribal government, the Secretary shall
transfer all funds that would have been
allocated to the Indian tribal government under
the contract or agreement to the Secretary of
the Interior to provide continued
transportation services in accordance with
applicable law.
``(c) Planning.--
``(1) In general.--For each fiscal year, not more
than 2 percent of the funds made available for the
tribal transportation program shall be allocated among
Indian tribal governments that apply for transportation
planning pursuant to the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450 et seq.).
``(2) Requirement.--An Indian tribal government, in
cooperation with the Secretary of the Interior and, as
appropriate, with a State, local government, or
metropolitan planning organization, shall carry out a
transportation planning process in accordance with
section 201(c).
``(3) Selection and approval of projects.--A
project funded under this section shall be--
``(A) selected by the Indian tribal
government from the transportation improvement
program; and
``(B) subject to the approval of the
Secretary of the Interior and the Secretary.
``(d) Tribal Transportation Facility Bridges.--
``(1) Nationwide priority program.--The Secretary
shall maintain a nationwide priority program for
improving deficient bridges eligible for the tribal
transportation program.
``(2) Funding.--Before making any distribution
under subsection (b), the Secretary shall set aside not
more than 2 percent of the funds made available under
the tribal transportation program for each fiscal year
to be allocated--
``(A) to carry out any planning, design,
engineering, preconstruction, construction, and
inspection of a project to replace,
rehabilitate, seismically retrofit, paint,
apply calcium magnesium acetate, sodium
acetate/formate, or other environmentally
acceptable, minimally corrosive anti-icing and
deicing composition; or
``(B) to implement any countermeasure for
deficient tribal transportation facility
bridges, including multiple-pipe culverts.
``(3) Eligible bridges.--To be eligible to receive
funding under this subsection, a bridge described in
paragraph (1) shall--
``(A) have an opening of not less than 20
feet;
``(B) be classified as a tribal
transportation facility; and
``(C) be structurally deficient or
functionally obsolete.
``(4) Approval requirement.--The Secretary may make
funds available under this subsection for preliminary
engineering, construction, and construction engineering
activities after approval of required documentation and
verification of eligibility in accordance with this
title.
``(e) Safety.--
``(1) Funding.--Before making any distribution
under subsection (b), the Secretary shall set aside not
more than 2 percent of the funds made available under
the tribal transportation program for each fiscal year
to be allocated based on an identification and analysis
of highway safety issues and opportunities on tribal
land, as determined by the Secretary, on application of
the Indian tribal governments for eligible projects
described in section 148(a)(4).
``(2) Project selection.--An Indian tribal
government, in cooperation with the Secretary of the
Interior and, as appropriate, with a State, local
government, or metropolitan planning organization,
shall select projects from the transportation
improvement program, subject to the approval of the
Secretary and the Secretary of the Interior.
``(f) Federal-aid Eligible Projects.--Before approving as a
project on a tribal transportation facility any project
eligible for funds apportioned under section 104 in a State,
the Secretary shall, for projects on tribal transportation
facilities, determine that the obligation of funds for the
project is supplementary to and not in lieu of the obligation
of a fair and equitable share of funds apportioned to the State
under section 104.
``Sec. 203. Federal lands transportation program
``(a) Use of Funds.--
``(1) In general.--Funds made available under the
Federal lands transportation program shall be used by
the Secretary of Transportation and the Secretary of
the appropriate Federal land management agency to pay
the costs of--
``(A) program administration,
transportation planning, research, preventive
maintenance, engineering, rehabilitation,
restoration, construction, and reconstruction
of Federal lands transportation facilities,
and--
``(i) adjacent vehicular parking
areas;
``(ii) acquisition of necessary
scenic easements and scenic or historic
sites;
``(iii) provision for pedestrians
and bicycles;
``(iv) environmental mitigation in
or adjacent to Federal land open to the
public--
``(I) to improve public
safety and reduce vehicle-
caused wildlife mortality while
maintaining habitat
connectivity; and
``(II) to mitigate the
damage to wildlife, aquatic
organism passage, habitat, and
ecosystem connectivity,
including the costs of
constructing, maintaining,
replacing, or removing culverts
and bridges, as appropriate;
``(v) construction and
reconstruction of roadside rest areas,
including sanitary and water
facilities;
``(vi) congestion mitigation; and
``(vii) other appropriate public
road facilities, as determined by the
Secretary;
``(B) operation and maintenance of transit
facilities;
``(C) any transportation project eligible
for assistance under this title that is on a
public road within or adjacent to, or that
provides access to, Federal lands open to the
public; and
``(D) not more $10,000,000 of the amounts
made available per fiscal year to carry out
this section for activities eligible under
subparagraph (A)(iv).
``(2) Contract.--In connection with an activity
described in paragraph (1), the Secretary and the
Secretary of the appropriate Federal land management
agency may enter into a contract or other appropriate
agreement with respect to the activity with--
``(A) a State (including a political
subdivision of a State); or
``(B) an Indian tribe.
``(3) Administration.--All appropriations for the
construction and improvement of Federal lands
transportation facilities shall be administered in
conformity with regulations and agreements jointly
approved by the Secretary and the Secretary of the
appropriate Federal land managing agency.
``(4) Cooperation.--
``(A) In general.--The cooperation of
States, counties, or other local subdivisions
may be accepted in construction and
improvement.
``(B) Funds received.--Any funds received
from a State, county, or local subdivision
shall be credited to appropriations available
for the class of Federal lands transportation
facilities to which the funds were contributed.
``(5) Competitive bidding.--
``(A) In general.--Subject to subparagraph
(B), construction of each project shall be
performed by contract awarded by competitive
bidding.
``(B) Exception.--Subparagraph (A) shall
not apply if the Secretary or the Secretary of
the appropriate Federal land management agency
affirmatively finds that, under the
circumstances relating to the project, a
different method is in the public interest.
``(b) Agency Program Distributions.--
``(1) In general.--On October 1, 2011, and on
October 1 of each fiscal year thereafter, the Secretary
shall allocate the sums authorized to be appropriated
for the fiscal year for the Federal lands
transportation program on the basis of applications of
need, as determined by the Secretary--
``(A) in consultation with the Secretaries
of the applicable Federal land management
agencies; and
``(B) in coordination with the
transportation plans required under section 201
of the respective transportation systems of--
``(i) the National Park Service;
``(ii) the Forest Service;
``(iii) the United States Fish and
Wildlife Service;
``(iv) the Corps of Engineers; and
``(v) the Bureau of Land
Management.
``(2) Applications.--
``(A) Requirements.--Each application
submitted by a Federal land management agency
shall include proposed programs at various
potential funding levels, as defined by the
Secretary following collaborative discussions
with applicable Federal land management
agencies.
``(B) Consideration by secretary.--In
evaluating an application submitted under
subparagraph (A), the Secretary shall consider
the extent to which the programs support--
``(i) the transportation goals of--
``(I) a state of good
repair of transportation
facilities;
``(II) a reduction of
bridge deficiencies, and
``(III) an improvement of
safety;
``(ii) high-use Federal
recreational sites or Federal economic
generators; and
``(iii) the resource and asset
management goals of the Secretary of
the respective Federal land management
agency.
``(C) Permissive contents.--Applications
may include proposed programs the duration of
which extend over a multiple-year period to
support long-term transportation planning and
resource management initiatives.
``(c) National Federal Lands Transportation Facility
Inventory.--
``(1) In general.--The Secretaries of the
appropriate Federal land management agencies, in
cooperation with the Secretary, shall maintain a
comprehensive national inventory of public Federal
lands transportation facilities.
``(2) Transportation facilities included in the
inventories.--To identify the Federal lands
transportation system and determine the relative
transportation needs among Federal land management
agencies, the inventories shall include, at a minimum,
facilities that--
``(A) provide access to high-use Federal
recreation sites or Federal economic
generators, as determined by the Secretary in
coordination with the respective Secretaries of
the appropriate Federal land management
agencies; and
``(B) are owned by 1 of the following
agencies:
``(i) The National Park Service.
``(ii) The Forest Service.
``(iii) The United States Fish and
Wildlife Service.
``(iv) The Bureau of Land
Management.
``(v) The Corps of Engineers.
``(3) Availability.--The inventories shall be made
available to the Secretary.
``(4) Updates.--The Secretaries of the appropriate
Federal land management agencies shall update the
inventories of the appropriate Federal land management
agencies, as determined by the Secretary after
collaborative discussions with the Secretaries of the
appropriate Federal land management agencies.
``(5) Review.--A decision to add or remove a
facility from the inventory shall not be considered a
Federal action for purposes of review under the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
``(d) Bicycle Safety.--The Secretary of the appropriate
Federal land management agency shall prohibit the use of
bicycles on each federally owned road that has a speed limit of
30 miles per hour or greater and an adjacent paved path for use
by bicycles within 100 yards of the road unless the Secretary
determines that the bicycle level of service on that roadway is
rated B or higher.
``Sec. 204. Federal lands access program
``(a) Use of Funds.--
``(1) In general.--Funds made available under the
Federal lands access program shall be used by the
Secretary of Transportation and the Secretary of the
appropriate Federal land management agency to pay the
cost of--
``(A) transportation planning, research,
engineering, preventive maintenance,
rehabilitation, restoration, construction, and
reconstruction of Federal lands access
transportation facilities located on or
adjacent to, or that provide access to, Federal
land, and--
``(i) adjacent vehicular parking
areas;
``(ii) acquisition of necessary
scenic easements and scenic or historic
sites;
``(iii) provisions for pedestrians
and bicycles;
``(iv) environmental mitigation in
or adjacent to Federal land to improve
public safety and reduce vehicle-caused
wildlife mortality while maintaining
habitat connectivity;
``(v) construction and
reconstruction of roadside rest areas,
including sanitary and water
facilities; and
``(vi) other appropriate public
road facilities, as determined by the
Secretary;
``(B) operation and maintenance of transit
facilities; and
``(C) any transportation project eligible
for assistance under this title that is within
or adjacent to, or that provides access to,
Federal land.
``(2) Contract.--In connection with an activity
described in paragraph (1), the Secretary and the
Secretary of the appropriate Federal land management
agency may enter into a contract or other appropriate
agreement with respect to the activity with--
``(A) a State (including a political
subdivision of a State); or
``(B) an Indian tribe.
``(3) Administration.--All appropriations for the
construction and improvement of Federal lands access
transportation facilities shall be administered in
conformity with regulations and agreements approved by
the Secretary.
``(4) Cooperation.--
``(A) In general.--The cooperation of
States, counties, or other local subdivisions
may be accepted in construction and
improvement.
``(B) Funds received.--Any funds received
from a State, county, or local subdivision for
a Federal lands access transportation facility
project shall be credited to appropriations
available under the Federal lands access
program.
``(5) Competitive bidding.--
``(A) In general.--Subject to subparagraph
(B), construction of each project shall be
performed by contract awarded by competitive
bidding.
``(B) Exception.--Subparagraph (A) shall
not apply if the Secretary or the Secretary of
the appropriate Federal land management agency
affirmatively finds that, under the
circumstances relating to the project, a
different method is in the public interest.
``(b) Program Distributions.--
``(1) In general.--Funding made available to carry
out the Federal lands access program shall be allocated
among those States that have Federal land, in
accordance with the following formula:
``(A) 80 percent of the available funding
for use in those States that contain at least
1\1/2\ percent of the total public land in the
United States managed by the agencies described
in paragraph (2), to be distributed as follows:
``(i) 30 percent in the ratio
that--
``(I) recreational
visitation within each such
State; bears to
``(II) the recreational
visitation within all such
States.
``(ii) 5 percent in the ratio
that--
``(I) the Federal land area
within each such State; bears
to
``(II) the Federal land
area in all such States.
``(iii) 55 percent in the ratio
that--
``(I) the Federal public
road miles within each such
State; bears to
``(II) the Federal public
road miles in all such States.
``(iv) 10 percent in the ratio
that--
``(I) the number of Federal
public bridges within each such
State; bears to
``(II) the number of
Federal public bridges in all
such States.
``(B) 20 percent of the available funding
for use in those States that do not contain at
least 1\1/2\ percent of the total public land
in the United States managed by the agencies
described in paragraph (2), to be distributed
as follows:
``(i) 30 percent in the ratio
that--
``(I) recreational
visitation within each such
State; bears to
``(II) the recreational
visitation within all such
States.
``(ii) 5 percent in the ratio
that--
``(I) the Federal land area
within each such State; bears
to
``(II) the Federal land
area in all such States.
``(iii) 55 percent in the ratio
that--
``(I) the Federal public
road miles within each such
State; bears to
``(II) the Federal public
road miles in all such States.
``(iv) 10 percent in the ratio
that--
``(I) the number of Federal
public bridges within each such
State; bears to
``(II) the number of
Federal public bridges in all
such States.
``(2) Data source.--Data necessary to distribute
funding under paragraph (1) shall be provided by the
following Federal land management agencies:
``(A) The National Park Service.
``(B) The Forest Service.
``(C) The United States Fish and Wildlife
Service.
``(D) The Bureau of Land Management.
``(E) The Corps of Engineers.
``(c) Programming Decisions Committee.--
``(1) In general.--Programming decisions shall be
made within each State by a committee comprised of--
``(A) a representative of the Federal
Highway Administration;
``(B) a representative of the State
Department of Transportation; and
``(C) a representative of any appropriate
political subdivision of the State.
``(2) Consultation requirement.--The committee
described in paragraph (1) shall cooperate with each
applicable Federal agency in each State before any
joint discussion or final programming decision.
``(3) Project preference.--In making a programming
decision under paragraph (1), the committee shall give
preference to projects that provide access to, are
adjacent to, or are located within high-use Federal
recreation sites or Federal economic generators, as
identified by the Secretaries of the appropriate
Federal land management agencies.''.
(b) Public Lands Development Roads and Trails.--Section 214
of title 23, United States Code, is repealed.
(c) Conforming Amendments.--
(1) Chapter 2 analysis.--The analysis for chapter 2
of title 23, United States Code, is amended--
(A) by striking the items relating to
sections 201 through 204 and inserting the
following:
``201. Federal lands and tribal transportation programs.
``202. Tribal transportation program.
``203. Federal lands transportation program.
``204. Federal lands access program.''; and
(B) by striking the item relating to
section 214.
(2) Definition.--Section 138(a) of title 23, United
States Code, is amended in the third sentence by
striking ``park road or parkway under section 204 of
this title'' and inserting ``Federal lands
transportation facility''.
(3) Rules, regulations, and recommendations.--
Section 315 of title 23, United States Code, is amended
by striking ``204(f)'' and inserting ``202(a)(5),
203(a)(3),''.
SEC. 1120. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.
Section 1301 of the SAFETEA-LU (23 U.S.C. 101 note; 119
Stat. 1198) is amended--
(1) in subsection (b), by striking ``States'' and
inserting ``eligible applicants'';
(2) in subsection (c), by striking paragraph (3)
and inserting the following:
``(3) Eligible applicant.--The term `eligible
applicant' means--
``(A) a State department of transportation
or a group of State departments of
transportation;
``(B) a tribal government or consortium of
tribal governments;
``(C) a transit agency; or
``(D) a multi-State or multi-jurisdictional
group of the agencies described in
subparagraphs (A) through (C).'';
(3) in subsection (d)(2), by striking ``75'' and
inserting ``50'';
(4) in subsection (e), by striking ``State'' and
inserting ``eligible applicant'';
(5) in subsection (f)(3) by striking subparagraph
(B) and inserting the following:
``(B) improves roadways vital to national
energy security; and'';
(6) in subsection (g)(1) by adding at the end the
following:
``(E) Congressional approval.--The
Secretary may not issue a letter of intent,
enter into a full funding grant agreement under
paragraph (2), or make any other obligation or
commitment to fund a project under this section
if a joint resolution of disapproval is enacted
disapproving funding for the project before the
last day of the 60-day period described in
subparagraph (B).'';
(7) in subsection (k), by adding at the end the
following:
``(3) Project selection justifications.--
``(A) In general.--Not later than 30 days
after the date on which the Secretary selects a
project for funding under this section, the
Secretary shall submit to the Committee on
Transportation and Infrastructure of the House
of Representatives and the Committee on
Environment and Public Works of the Senate a
report that describes the reasons for selecting
the project, based on the criteria described in
subsection (f).
``(B) Inclusions.--The report submitted
under subparagraph (A) shall specify each
criteria described in subsection (f) that the
project meets.
``(C) Availability.--The Secretary shall
make available on the website of the Department
the report submitted under subparagraph (A).'';
and
(8) by striking subsections (l) and (m) and
inserting the following:
``(l) Report.--
``(1) In general.--Not later than 2 years after the
date of enactment of the MAP-21, the Secretary shall
submit a report to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Environment and Public Works of the Senate
regarding projects of national and regional
significance.
``(2) Purpose.--The purpose of the report issued
under this subsection shall be to identify projects of
national and regional significance that--
``(A) will significantly improve the
performance of the Federal-aid highway system,
nationally or regionally;
``(B) is able to--
``(i) generate national economic
benefits that reasonably exceed the
costs of the projects, including
increased access to jobs, labor, and
other critical economic inputs;
``(ii) reduce long-term congestion,
including impacts in the State, region,
and the United States, and increase
speed, reliability, and accessibility
of the movement of people or freight;
and
``(iii) improve transportation
safety, including reducing
transportation accidents, and serious
injuries and fatalities; and
``(C) can be supported by an acceptable
degree of non-Federal financial commitments.
``(3) Contents.--The report issued under this
subsection shall include--
``(A) a comprehensive list of each project
of national and regional significance that--
``(i) has been complied through a
survey of State departments of
transportation; and
``(ii) has been classified by the
Secretary as a project of regional or
national significance in accordance
with this section;
``(B) an analysis of the information
collected under paragraph (1), including a
discussion of the factors supporting each
classification of a project as a project of
regional or national significance; and
``(C) recommendations on financing for
eligible project costs.
``(m) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $500,000,000 for
fiscal year 2013, to remain available until expended.''.
SEC. 1121. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES.
(a) Construction of Ferry Boats and Ferry Terminal
Facilities.--Section 147 of title 23, United States Code, is
amended--
(1) by striking subsections (c) and (d);
(2) by redesignating subsections (e) and (f) as
subsections (f) and (g), respectively; and
(3) by inserting after subsection (b) the
following:
``(c) Distribution of Funds.--Of the amounts made available
to ferry systems and public entities responsible for developing
ferries under this section for a fiscal year, 100 percent shall
be allocated in accordance with the formula set forth in
subsection (d).
``(d) Formula.--Of the amounts allocated pursuant to
subsection (c)--
``(1) 20 percent shall be allocated among eligible
entities in the proportion that--
``(A) the number of ferry passengers
carried by each ferry system in the most recent
fiscal year; bears to
``(B) the number of ferry passengers
carried by all ferry systems in the most recent
fiscal year;
``(2) 45 percent shall be allocated among eligible
entities in the proportion that--
``(A) the number of vehicles carried by
each ferry system in the most recent fiscal
year; bears to
``(B) the number of vehicles carried by all
ferry systems in the most recent fiscal year;
and
``(3) 35 percent shall be allocated among eligible
entities in the proportion that--
``(A) the total route miles serviced by
each ferry system; bears to
``(B) the total route miles serviced by all
ferry systems.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated out of the Highway Trust Fund (other than
the Mass Transit Account) to carry out this section $67,000,000
for each of fiscal years 2013 and 2014.''.
(b) National Ferry Database.--Section 1801(e) of the
SAFETEA-LU (23 U.S.C. 129 note; Public Law 109-59) is amended--
(1) in paragraph (2), by inserting ``, including
any Federal, State, and local government funding
sources,'' after ``sources''; and
(2) in paragraph (4)--
(A) in subparagraph (B), by striking
``and'' at the end;
(B) by redesignating subparagraph (C) as
subparagraph (D);
(C) by inserting after subparagraph (B),
the following:
``(C) ensure that the database is
consistent with the national transit database
maintained by the Federal Transit
Administration; and''; and
(D) in subparagraph (D) (as redesignated by
subparagraph (B)), by striking ``2009'' and
inserting ``2014''.
SEC. 1122. TRANSPORTATION ALTERNATIVES.
(a) In General.--Section 213 of title 23, United States
Code, is amended to read as follows:
``Sec. 213. Transportation alternatives
``(a) Reservation of Funds.--
``(1) In general.--On October 1 of each of fiscal
years 2013 and 2014, the Secretary shall proportionally
reserve from the funds apportioned to a State under
section 104(b) to carry out the requirements of this
section an amount equal to the amount obtained by
multiplying the amount determined under paragraph (2)
by the ratio that--
``(A) the amount apportioned to the State
for the transportation enhancements program for
fiscal year 2009 under section 133(d)(2), as in
effect on the day before the date of enactment
of the MAP-21; bears to
``(B) the total amount of funds apportioned
to all States for that fiscal year for the
transportation enhancements program for fiscal
year 2009.
``(2) Calculation of national amount.--The
Secretary shall determine an amount for each fiscal
year that is equal to 2 percent of the amounts
authorized to be appropriated for such fiscal year from
the Highway Trust Fund (other than the Mass Transit
Account) to carry out chapters 1, 2, 5, and 6 of this
title.
``(b) Eligible Projects.--A State may obligate the funds
reserved under this section for any of the following projects
or activities:
``(1) Transportation alternatives, as defined in
section 101.
``(2) The recreational trails program under section
206.
``(3) The safe routes to school program under
section 1404 of the SAFETEA-LU (23 U.S.C. 402 note;
Public Law 109-59).
``(4) Planning, designing, or constructing
boulevards and other roadways largely in the right-of-
way of former Interstate System routes or other divided
highways.
``(c) Allocations of Funds.--
``(1) Calculation.--Of the funds reserved in a
State under this section--
``(A) 50 percent for a fiscal year shall be
obligated under this section to any eligible
entity in proportion to their relative shares
of the population of the State--
``(i) in urbanized areas of the
State with an urbanized area population
of over 200,000;
``(ii) in areas of the State other
than urban areas with a population
greater than 5,000; and
``(iii) in other areas of the
State; and
``(B) 50 percent shall be obligated in any
area of the State.
``(2) Metropolitan areas.--Funds attributed to an
urbanized area under paragraph (1)(A)(i) may be
obligated in the metropolitan area established under
section 134 that encompasses the urbanized area.
``(3) Distribution among urbanized areas of over
200,000 population.--
``(A) In general.--Except as provided in
paragraph (1)(B), the amount of funds that a
State is required to obligate under paragraph
(1)(A)(i) shall be obligated in urbanized areas
described in paragraph (1)(A)(i) based on the
relative population of the areas.
``(B) Other factors.--A State may obligate
the funds described in subparagraph (A) based
on other factors if the State and the relevant
metropolitan planning organizations jointly
apply to the Secretary for the permission to
base the obligation on other factors and the
Secretary grants the request.
``(4) Access to funds.--
``(A) In general.--Each State or
metropolitan planning organization required to
obligate funds in accordance with paragraph (1)
shall develop a competitive process to allow
eligible entities to submit projects for
funding that achieve the objectives of this
subsection.
``(B) Definition of eligible entity.--In
this paragraph, the term `eligible entity'
means--
``(i) a local government;
``(ii) a regional transportation
authority;
``(iii) a transit agency;
``(iv) a natural resource or public
land agency;
``(v) a school district, local
education agency, or school;
``(vi) a tribal government; and
``(vii) any other local or regional
governmental entity with responsibility
for or oversight of transportation or
recreational trails (other than a
metropolitan planning organization or a
State agency) that the State determines
to be eligible, consistent with the
goals of this subsection.
``(5) Selection of projects.--For funds reserved in
a State under this section and suballocated to a
metropolitan planning area under paragraph (1)(A)(i),
each such metropolitan planning organization shall
select projects carried out within the boundaries of
the applicable metropolitan planning area, in
consultation with the relevant State.
``(d) Flexibility of Excess Reserved Funding.--Beginning in
the second fiscal year after the date of enactment of the MAP-
21, if on August 1 of that fiscal year the unobligated balance
of available funds reserved by a State under this section
exceeds 100 percent of such reserved amount in such fiscal
year, the State may thereafter obligate the amount of excess
funds for any activity--
``(1) that is eligible to receive funding under
this section; or
``(2) for which the Secretary has approved the
obligation of funds for any State under section 149.
``(e) Treatment of Projects.--Notwithstanding any other
provision of law, projects funded under this section (excluding
those carried out under subsection (f)) shall be treated as
projects on a Federal-aid highway under this chapter.
``(f) Continuation of Certain Recreational Trails
Projects.--Each State shall--
``(1) obligate an amount of funds reserved under
this section equal to the amount of the funds
apportioned to the State for fiscal year 2009 under
section 104(h)(2) for projects relating to recreational
trails under section 206;
``(2) return 1 percent of those funds to the
Secretary for the administration of that program; and
``(3) comply with the provisions of the
administration of the recreational trails program under
section 206, including the use of apportioned funds
described under subsection (d)(3)(A) of that section.
``(g) State Flexibility.--A State may opt out of the
recreational trails program under subsection (f) if the
Governor of the State notifies the Secretary not later than 30
days prior to apportionments being made for any fiscal year.''.
(b) Conforming Amendment.--The analysis for chapter 2 of
title 23, United States Code, is amended by striking the item
relating to section 213 and inserting the following:
``213. Transportation alternatives''.
SEC. 1123. TRIBAL HIGH PRIORITY PROJECTS PROGRAM.
(a) Definitions.--In this section:
(1) Emergency or disaster.--The term ``emergency or
disaster'' means damage to a tribal transportation
facility that--
(A) renders the tribal transportation
facility impassable or unusable;
(B) is caused by--
(i) a natural disaster over a
widespread area; or
(ii) a catastrophic failure from an
external cause; and
(C) would be eligible under the emergency
relief program under section 125 of title 23,
United States Code, but does not meet the
funding thresholds required by that section.
(2) List.--The term ``list'' means the funding
priority list developed under subsection (c)(5).
(3) Program.--The term ``program'' means the Tribal
High Priority Projects program established under
subsection (b)(1).
(4) Project.--The term ``project'' means a project
provided funds under the program.
(b) Program.--
(1) In general.--The Secretary shall use amounts
made available under subsection (h) to carry out a
Tribal High Priority Projects program under which funds
shall be provided to eligible applicants in accordance
with this section.
(2) Eligible applicants.--Applicants eligible for
program funds under this section include--
(A) an Indian tribe whose annual allocation
of funding under section 202 of title 23,
United States Code, is insufficient to complete
the highest priority project of the Indian
tribe;
(B) a governmental subdivision of an Indian
tribe--
(i) that is authorized to
administer the funding of the Indian
tribe under section 202 of title 23,
United States Code; and
(ii) for which the annual
allocation under that section is
insufficient to complete the highest
priority project of the Indian tribe;
or
(C) any Indian tribe that has an emergency
or disaster with respect to a transportation
facility included on the national inventory of
tribal transportation facilities under section
202(b)(1) of title 23, United States Code.
(c) Project Applications; Funding.--
(1) In general.--To apply for funds under this
section, an eligible applicant shall submit to the
Department of the Interior or the Department an
application that includes--
(A) project scope of work, including
deliverables, budget, and timeline;
(B) the amount of funds requested;
(C) project information addressing--
(i) the ranking criteria identified
in paragraph (3); or
(ii) the nature of the emergency or
disaster;
(D) documentation that the project meets
the definition of a tribal transportation
facility and is included in the national
inventory of tribal transportation facilities
under section 202(b)(1) of title 23, United
States Code;
(E) documentation of official tribal action
requesting the project;
(F) documentation from the Indian tribe
providing authority for the Secretary of the
Interior to place the project on a
transportation improvement program if the
project is selected and approved; and
(G) any other information the Secretary of
the Interior or Secretary considers appropriate
to make a determination.
(2) Limitation on applications.--An applicant for
funds under the program may only have 1 application for
assistance under this section pending at any 1 time,
including any emergency or disaster application.
(3) Application ranking.--
(A) In general.--The Secretary of the
Interior and the Secretary shall determine the
eligibility of, and fund, program applications,
subject to the availability of funds.
(B) Ranking criteria.--The project ranking
criteria for applications under this section
shall include--
(i) the existence of safety hazards
with documented fatality and injury
accidents;
(ii) the number of years since the
Indian tribe last completed a
construction project funded by section
202 of title 23, United States Code;
(iii) the readiness of the Indian
tribe to proceed to construction or
bridge design need;
(iv) the percentage of project
costs matched by funds that are not
provided under section 202 of title 23,
United States Code, with projects with
a greater percentage of other sources
of matching funds ranked ahead of
lesser matches);
(v) the amount of funds requested,
with requests for lesser amounts given
greater priority;
(vi) the challenges caused by
geographic isolation; and
(vii) all weather access for
employment, commerce, health, safety,
educational resources, or housing.
(4) Project scoring matrix.--The project scoring
matrix established in the appendix to part 170 of title
25, Code of Regulations (as in effect on the date of
enactment of this Act) shall be used to rank all
applications accepted under this section.
(5) Funding priority list.--
(A) In general.--The Secretary of the
Interior and the Secretary shall jointly
produce a funding priority list that ranks the
projects approved for funding under the
program.
(B) Limitation.--The number of projects on
the list shall be limited by the amount of
funding made available.
(6) Timeline.--The Secretary of the Interior and
the Secretary shall--
(A) require applications for funding no
sooner than 60 days after funding is made
available pursuant to subsection (a);
(B) notify all applicants and Regions in
writing of acceptance of applications;
(C) rank all accepted applications in
accordance with the project scoring matrix,
develop the funding priority list, and return
unaccepted applications to the applicant with
an explanation of deficiencies;
(D) notify all accepted applicants of the
projects included on the funding priority list
no later than 180 days after the application
deadline has passed pursuant to subparagraph
(A); and
(E) distribute funds to successful
applicants.
(d) Emergency or Disaster Project Applications.--
(1) In general.--Notwithstanding subsection (c)(6),
an eligible applicant may submit an emergency or
disaster project application at any time during the
fiscal year.
(2) Consideration as priority.--The Secretary
shall--
(A) consider project applications submitted
under paragraph (1) to be a priority; and
(B) fund the project applications in
accordance with paragraph (3).
(3) Funding.--
(A) In general.--If an eligible applicant
submits an application for a project under this
subsection before the issuance of the list
under subsection (c)(5) and the project is
determined to be eligible for program funds,
the Secretary of the Interior shall provide
funding for the project before providing
funding for other approved projects on the
list.
(B) Submission after issuance of list.--If
an eligible applicant submits an application
under this subsection after the issuance of the
list under subsection (c)(5) and the
distribution of program funds in accordance
with the list, the Secretary of the Interior
shall provide funding for the project on the
date on which unobligated funds provided to
projects on the list are returned to the
Department of the Interior.
(C) Effect on other projects.--If the
Secretary of the Interior uses funding
previously designated for a project on the list
to fund an emergency or disaster project under
this subsection, the project on the list that
did not receive funding as a result of the
redesignation of funds shall move to the top of
the list the following year.
(4) Emergency or disaster project cost.--The cost
of a project submitted as an emergency or disaster
under this subsection shall be at least 10 percent of
the distribution of funds of the Indian tribe under
section 202(b) of title 23, United States Code.
(e) Limitation on Use of Funds.--Program funds shall not be
used for--
(1) transportation planning;
(2) research;
(3) routine maintenance activities;
(4) structures and erosion protection unrelated to
transportation and roadways;
(5) general reservation planning not involving
transportation;
(6) landscaping and irrigation systems not
involving transportation programs and projects;
(7) work performed on projects that are not
included on a transportation improvement program
approved by the Federal Highway Administration, unless
otherwise authorized by the Secretary of the Interior
and the Secretary;
(8) the purchase of equipment unless otherwise
authorized by Federal law; or
(9) the condemnation of land for recreational
trails.
(f) Limitation on Project Amounts.--Project funding shall
be limited to a maximum of $1,000,000 per application, except
that funding for disaster or emergency projects shall also be
limited to the estimated cost of repairing damage to the tribal
transportation facility.
(g) Cost Estimate Certification.--All cost estimates
prepared for a project shall be required to be submitted by the
applicant to the Secretary of the Interior and the Secretary
for certification and approval.
(h) Authorization of Appropriations.--
(1) In general.--There is authorized to be
appropriated $30,000,000 out of the general fund of the
Treasury to carry out the program for each of fiscal
years 2013 and 2014.
(2) Administration.--The funds made available under
paragraph (1) shall be administered in the same manner
as funds made available for the tribal transportation
program under section 202 of title 23, United States
Code, except that--
(A) the funds made available for the
program shall remain available until September
30 of the third fiscal year after the year
appropriated; and
(B) the Federal share of the cost of a
project shall be 100 percent.
Subtitle B--Performance Management
SEC. 1201. METROPOLITAN TRANSPORTATION PLANNING.
(a) In General.--Section 134 of title 23, United States
Code, is amended to read as follows:
``Sec. 134. Metropolitan transportation planning
``(a) Policy.--It is in the national interest--
``(1) to encourage and promote the safe and
efficient management, operation, and development of
surface transportation systems that will serve the
mobility needs of people and freight and foster
economic growth and development within and between
States and urbanized areas, while minimizing
transportation-related fuel consumption and air
pollution through metropolitan and statewide
transportation planning processes identified in this
chapter; and
``(2) to encourage the continued improvement and
evolution of the metropolitan and statewide
transportation planning processes by metropolitan
planning organizations, State departments of
transportation, and public transit operators as guided
by the planning factors identified in subsection (h)
and section 135(d).
``(b) Definitions.--In this section and section 135, the
following definitions apply:
``(1) Metropolitan planning area.--The term
`metropolitan planning area' means the geographic area
determined by agreement between the metropolitan
planning organization for the area and the Governor
under subsection (e).
``(2) Metropolitan planning organization.--The term
`metropolitan planning organization' means the policy
board of an organization established as a result of the
designation process under subsection (d).
``(3) Nonmetropolitan area.--The term
`nonmetropolitan area' means a geographic area outside
designated metropolitan planning areas.
``(4) Nonmetropolitan local official.--The term
`nonmetropolitan local official' means elected and
appointed officials of general purpose local government
in a nonmetropolitan area with responsibility for
transportation.
``(5) Regional transportation planning
organization.--The term `regional transportation
planning organization' means a policy board of an
organization established as the result of a designation
under section 135(m).
``(6) TIP.--The term `TIP' means a transportation
improvement program developed by a metropolitan
planning organization under subsection (j).
``(7) Urbanized area.--The term `urbanized area'
means a geographic area with a population of 50,000 or
more, as determined by the Bureau of the Census.
``(c) General Requirements.--
``(1) Development of long-range plans and tips.--To
accomplish the objectives in subsection (a),
metropolitan planning organizations designated under
subsection (d), in cooperation with the State and
public transportation operators, shall develop long-
range transportation plans and transportation
improvement programs through a performance-driven,
outcome-based approach to planning for metropolitan
areas of the State.
``(2) Contents.--The plans and TIPs for each
metropolitan area shall provide for the development and
integrated management and operation of transportation
systems and facilities (including accessible pedestrian
walkways and bicycle transportation facilities) that
will function as an intermodal transportation system
for the metropolitan planning area and as an integral
part of an intermodal transportation system for the
State and the United States.
``(3) Process of development.--The process for
developing the plans and TIPs shall provide for
consideration of all modes of transportation and shall
be continuing, cooperative, and comprehensive to the
degree appropriate, based on the complexity of the
transportation problems to be addressed.
``(d) Designation of Metropolitan Planning Organizations.--
``(1) In general.--To carry out the transportation
planning process required by this section, a
metropolitan planning organization shall be designated
for each urbanized area with a population of more than
50,000 individuals--
``(A) by agreement between the Governor and
units of general purpose local government that
together represent at least 75 percent of the
affected population (including the largest
incorporated city (based on population) as
determined by the Bureau of the Census); or
``(B) in accordance with procedures
established by applicable State or local law.
``(2) Structure.--Not later than 2 years after the
date of enactment of MAP-21, each metropolitan planning
organization that serves an area designated as a
transportation management area shall consist of--
``(A) local elected officials;
``(B) officials of public agencies that
administer or operate major modes of
transportation in the metropolitan area,
including representation by providers of public
transportation; and
``(C) appropriate State officials.
``(3) Limitation on statutory construction.--
Nothing in this subsection shall be construed to
interfere with the authority, under any State law in
effect on December 18, 1991, of a public agency with
multimodal transportation responsibilities--
``(A) to develop the plans and TIPs for
adoption by a metropolitan planning
organization; and
``(B) to develop long-range capital plans,
coordinate transit services and projects, and
carry out other activities pursuant to State
law.
``(4) Continuing designation.--A designation of a
metropolitan planning organization under this
subsection or any other provision of law shall remain
in effect until the metropolitan planning organization
is redesignated under paragraph (5).
``(5) Redesignation procedures.--
``(A) In general.--A metropolitan planning
organization may be redesignated by agreement
between the Governor and units of general
purpose local government that together
represent at least 75 percent of the existing
planning area population (including the largest
incorporated city (based on population) as
determined by the Bureau of the Census) as
appropriate to carry out this section.
``(B) Restructuring.--A metropolitan
planning organization may be restructured to
meet the requirements of paragraph (2) without
undertaking a redesignation.
``(6) Designation of more than 1 metropolitan
planning organization.--More than 1 metropolitan
planning organization may be designated within an
existing metropolitan planning area only if the
Governor and the existing metropolitan planning
organization determine that the size and complexity of
the existing metropolitan planning area make
designation of more than 1 metropolitan planning
organization for the area appropriate.
``(e) Metropolitan Planning Area Boundaries.--
``(1) In general.--For the purposes of this
section, the boundaries of a metropolitan planning area
shall be determined by agreement between the
metropolitan planning organization and the Governor.
``(2) Included area.--Each metropolitan planning
area--
``(A) shall encompass at least the existing
urbanized area and the contiguous area expected
to become urbanized within a 20-year forecast
period for the transportation plan; and
``(B) may encompass the entire metropolitan
statistical area or consolidated metropolitan
statistical area, as defined by the Bureau of
the Census.
``(3) Identification of new urbanized areas within
existing planning area boundaries.--The designation by
the Bureau of the Census of new urbanized areas within
an existing metropolitan planning area shall not
require the redesignation of the existing metropolitan
planning organization.
``(4) Existing metropolitan planning areas in
nonattainment.--
``(A) In general.--Notwithstanding
paragraph (2), except as provided in
subparagraph (B), in the case of an urbanized
area designated as a nonattainment area for
ozone or carbon monoxide under the Clean Air
Act (42 U.S.C. 7401 et seq.) as of the date of
enactment of the SAFETEA-LU, the boundaries of
the metropolitan planning area in existence as
of such date of enactment shall be retained.
``(B) Exception.--The boundaries described
in subparagraph (A) may be adjusted by
agreement of the Governor and affected
metropolitan planning organizations in the
manner described in subsection (d)(5).
``(5) New metropolitan planning areas in
nonattainment.--In the case of an urbanized area
designated after the date of enactment of the SAFETEA-
LU, as a nonattainment area for ozone or carbon
monoxide, the boundaries of the metropolitan planning
area--
``(A) shall be established in the manner
described in subsection (d)(1);
``(B) shall encompass the areas described
in paragraph (2)(A);
``(C) may encompass the areas described in
paragraph (2)(B); and
``(D) may address any nonattainment area
identified under the Clean Air Act (42 U.S.C.
7401 et seq.) for ozone or carbon monoxide.
``(f) Coordination in Multistate Areas.--
``(1) In general.--The Secretary shall encourage
each Governor with responsibility for a portion of a
multistate metropolitan area and the appropriate
metropolitan planning organizations to provide
coordinated transportation planning for the entire
metropolitan area.
``(2) Interstate compacts.--The consent of Congress
is granted to any 2 or more States--
``(A) to enter into agreements or compacts,
not in conflict with any law of the United
States, for cooperative efforts and mutual
assistance in support of activities authorized
under this section as the activities pertain to
interstate areas and localities within the
States; and
``(B) to establish such agencies, joint or
otherwise, as the States may determine
desirable for making the agreements and
compacts effective.
``(3) Reservation of rights.--The right to alter,
amend, or repeal interstate compacts entered into under
this subsection is expressly reserved.
``(g) MPO Consultation in Plan and TIP Coordination.--
``(1) Nonattainment areas.--If more than 1
metropolitan planning organization has authority within
a metropolitan area or an area which is designated as a
nonattainment area for ozone or carbon monoxide under
the Clean Air Act (42 U.S.C. 7401 et seq.), each
metropolitan planning organization shall consult with
the other metropolitan planning organizations
designated for such area and the State in the
coordination of plans and TIPs required by this
section.
``(2) Transportation improvements located in
multiple mpos.--If a transportation improvement, funded
from the Highway Trust Fund or authorized under chapter
53 of title 49, is located within the boundaries of
more than 1 metropolitan planning area, the
metropolitan planning organizations shall coordinate
plans and TIPs regarding the transportation
improvement.
``(3) Relationship with other planning officials.--
``(A) In general.--The Secretary shall
encourage each metropolitan planning
organization to consult with officials
responsible for other types of planning
activities that are affected by transportation
in the area (including State and local planned
growth, economic development, environmental
protection, airport operations, and freight
movements) or to coordinate its planning
process, to the maximum extent practicable,
with such planning activities.
``(B) Requirements.--Under the metropolitan
planning process, transportation plans and TIPs
shall be developed with due consideration of
other related planning activities within the
metropolitan area, and the process shall
provide for the design and delivery of
transportation services within the metropolitan
area that are provided by--
``(i) recipients of assistance
under chapter 53 of title 49;
``(ii) governmental agencies and
nonprofit organizations (including
representatives of the agencies and
organizations) that receive Federal
assistance from a source other than the
Department of Transportation to provide
nonemergency transportation services;
and
``(iii) recipients of assistance
under section 204.
``(h) Scope of Planning Process.--
``(1) In general.--The metropolitan planning
process for a metropolitan planning area under this
section shall provide for consideration of projects and
strategies that will--
``(A) support the economic vitality of the
metropolitan area, especially by enabling
global competitiveness, productivity, and
efficiency;
``(B) increase the safety of the
transportation system for motorized and
nonmotorized users;
``(C) increase the security of the
transportation system for motorized and
nonmotorized users;
``(D) increase the accessibility and
mobility of people and for freight;
``(E) protect and enhance the environment,
promote energy conservation, improve the
quality of life, and promote consistency
between transportation improvements and State
and local planned growth and economic
development patterns;
``(F) enhance the integration and
connectivity of the transportation system,
across and between modes, for people and
freight;
``(G) promote efficient system management
and operation; and
``(H) emphasize the preservation of the
existing transportation system.
``(2) Performance-based approach.--
``(A) In general.--The metropolitan
transportation planning process shall provide
for the establishment and use of a performance-
based approach to transportation decisionmaking
to support the national goals described in
section 150(b) of this title and in section
5301(c) of title 49.
``(B) Performance targets.--
``(i) Surface transportation
performance targets.--
``(I) In general.--Each
metropolitan planning
organization shall establish
performance targets that
address the performance
measures described in section
150(c), where applicable, to
use in tracking progress
towards attainment of critical
outcomes for the region of the
metropolitan planning
organization.
``(II) Coordination.--
Selection of performance
targets by a metropolitan
planning organization shall be
coordinated with the relevant
State to ensure consistency, to
the maximum extent practicable.
``(ii) Public transportation
performance targets.--Selection of
performance targets by a metropolitan
planning organization shall be
coordinated, to the maximum extent
practicable, with providers of public
transportation to ensure consistency
with sections 5326(c) and 5329(d) of
title 49.
``(C) Timing.--Each metropolitan planning
organization shall establish the performance
targets under subparagraph (B) not later than
180 days after the date on which the relevant
State or provider of public transportation
establishes the performance targets.
``(D) Integration of other performance-
based plans.--A metropolitan planning
organization shall integrate in the
metropolitan transportation planning process,
directly or by reference, the goals,
objectives, performance measures, and targets
described in other State transportation plans
and transportation processes, as well as any
plans developed under chapter 53 of title 49 by
providers of public transportation, required as
part of a performance-based program.
``(3) Failure to consider factors.--The failure to
consider any factor specified in paragraphs (1) and (2)
shall not be reviewable by any court under this title
or chapter 53 of title 49, subchapter II of chapter 5
of title 5, or chapter 7 of title 5 in any matter
affecting a transportation plan, a TIP, a project or
strategy, or the certification of a planning process.
``(i) Development of Transportation Plan.--
``(1) Requirements.--
``(A) In general.--Each metropolitan
planning organization shall prepare and update
a transportation plan for its metropolitan
planning area in accordance with the
requirements of this subsection.
``(B) Frequency.--
``(i) In general.--The metropolitan
planning organization shall prepare and
update such plan every 4 years (or more
frequently, if the metropolitan
planning organization elects to update
more frequently) in the case of each of
the following:
``(I) Any area designated
as nonattainment, as defined in
section 107(d) of the Clean Air
Act (42 U.S.C. 7407(d)).
``(II) Any area that was
nonattainment and subsequently
designated to attainment in
accordance with section
107(d)(3) of that Act (42
U.S.C. 7407(d)(3)) and that is
subject to a maintenance plan
under section 175A of that Act
(42 U.S.C. 7505a).
``(ii) Other areas.--In the case of
any other area required to have a
transportation plan in accordance with
the requirements of this subsection,
the metropolitan planning organization
shall prepare and update such plan
every 5 years unless the metropolitan
planning organization elects to update
more frequently.
``(2) Transportation plan.--A transportation plan
under this section shall be in a form that the
Secretary determines to be appropriate and shall
contain, at a minimum, the following:
``(A) Identification of transportation
facilities.--
``(i) In general.--An
identification of transportation
facilities (including major roadways,
transit, multimodal and intermodal
facilities, nonmotorized transportation
facilities, and intermodal connectors)
that should function as an integrated
metropolitan transportation system,
giving emphasis to those facilities
that serve important national and
regional transportation functions.
``(ii) Factors.--In formulating the
transportation plan, the metropolitan
planning organization shall consider
factors described in subsection (h) as
the factors relate to a 20-year
forecast period.
``(B) Performance measures and targets.--A
description of the performance measures and
performance targets used in assessing the
performance of the transportation system in
accordance with subsection (h)(2).
``(C) System performance report.--A system
performance report and subsequent updates
evaluating the condition and performance of the
transportation system with respect to the
performance targets described in subsection
(h)(2), including--
``(i) progress achieved by the
metropolitan planning organization in
meeting the performance targets in
comparison with system performance
recorded in previous reports; and
``(ii) for metropolitan planning
organizations that voluntarily elect to
develop multiple scenarios, an analysis
of how the preferred scenario has
improved the conditions and performance
of the transportation system and how
changes in local policies and
investments have impacted the costs
necessary to achieve the identified
performance targets.
``(D) Mitigation activities.--
``(i) In general.--A long-range
transportation plan shall include a
discussion of types of potential
environmental mitigation activities and
potential areas to carry out these
activities, including activities that
may have the greatest potential to
restore and maintain the environmental
functions affected by the plan.
``(ii) Consultation.--The
discussion shall be developed in
consultation with Federal, State, and
tribal wildlife, land management, and
regulatory agencies.
``(E) Financial plan.--
``(i) In general.--A financial plan
that--
``(I) demonstrates how the
adopted transportation plan can
be implemented;
``(II) indicates resources
from public and private sources
that are reasonably expected to
be made available to carry out
the plan; and
``(III) recommends any
additional financing strategies
for needed projects and
programs.
``(ii) Inclusions.--The financial
plan may include, for illustrative
purposes, additional projects that
would be included in the adopted
transportation plan if reasonable
additional resources beyond those
identified in the financial plan were
available.
``(iii) Cooperative development.--
For the purpose of developing the
transportation plan, the metropolitan
planning organization, transit
operator, and State shall cooperatively
develop estimates of funds that will be
available to support plan
implementation.
``(F) Operational and management
strategies.--Operational and management
strategies to improve the performance of
existing transportation facilities to relieve
vehicular congestion and maximize the safety
and mobility of people and goods.
``(G) Capital investment and other
strategies.--Capital investment and other
strategies to preserve the existing and
projected future metropolitan transportation
infrastructure and provide for multimodal
capacity increases based on regional priorities
and needs.
``(H) Transportation and transit
enhancement activities.--Proposed
transportation and transit enhancement
activities.
``(3) Coordination with clean air act agencies.--In
metropolitan areas that are in nonattainment for ozone
or carbon monoxide under the Clean Air Act (42 U.S.C.
7401 et seq.), the metropolitan planning organization
shall coordinate the development of a transportation
plan with the process for development of the
transportation control measures of the State
implementation plan required by that Act.
``(4) Optional scenario development.--
``(A) In general.--A metropolitan planning
organization may, while fitting the needs and
complexity of its community, voluntarily elect
to develop multiple scenarios for consideration
as part of the development of the metropolitan
transportation plan, in accordance with
subparagraph (B).
``(B) Recommended components.--A
metropolitan planning organization that chooses
to develop multiple scenarios under
subparagraph (A) shall be encouraged to
consider--
``(i) potential regional investment
strategies for the planning horizon;
``(ii) assumed distribution of
population and employment;
``(iii) a scenario that, to the
maximum extent practicable, maintains
baseline conditions for the performance
measures identified in subsection
(h)(2);
``(iv) a scenario that improves the
baseline conditions for as many of the
performance measures identified in
subsection (h)(2) as possible;
``(v) revenue constrained scenarios
based on the total revenues expected to
be available over the forecast period
of the plan; and
``(vi) estimated costs and
potential revenues available to support
each scenario.
``(C) Metrics.--In addition to the
performance measures identified in section
150(c), metropolitan planning organizations may
evaluate scenarios developed under this
paragraph using locally-developed measures.
``(5) Consultation.--
``(A) In general.--In each metropolitan
area, the metropolitan planning organization
shall consult, as appropriate, with State and
local agencies responsible for land use
management, natural resources, environmental
protection, conservation, and historic
preservation concerning the development of a
long-range transportation plan.
``(B) Issues.--The consultation shall
involve, as appropriate--
``(i) comparison of transportation
plans with State conservation plans or
maps, if available; or
``(ii) comparison of transportation
plans to inventories of natural or
historic resources, if available.
``(6) Participation by interested parties.--
``(A) In general.--Each metropolitan
planning organization shall provide citizens,
affected public agencies, representatives of
public transportation employees, freight
shippers, providers of freight transportation
services, private providers of transportation,
representatives of users of public
transportation, representatives of users of
pedestrian walkways and bicycle transportation
facilities, representatives of the disabled,
and other interested parties with a reasonable
opportunity to comment on the transportation
plan.
``(B) Contents of participation plan.--A
participation plan--
``(i) shall be developed in
consultation with all interested
parties; and
``(ii) shall provide that all
interested parties have reasonable
opportunities to comment on the
contents of the transportation plan.
``(C) Methods.--In carrying out
subparagraph (A), the metropolitan planning
organization shall, to the maximum extent
practicable--
``(i) hold any public meetings at
convenient and accessible locations and
times;
``(ii) employ visualization
techniques to describe plans; and
``(iii) make public information
available in electronically accessible
format and means, such as the World
Wide Web, as appropriate to afford
reasonable opportunity for
consideration of public information
under subparagraph (A).
``(7) Publication.--A transportation plan involving
Federal participation shall be published or otherwise
made readily available by the metropolitan planning
organization for public review, including (to the
maximum extent practicable) in electronically
accessible formats and means, such as the World Wide
Web, approved by the metropolitan planning organization
and submitted for information purposes to the Governor
at such times and in such manner as the Secretary shall
establish.
``(8) Selection of projects from illustrative
list.--Notwithstanding paragraph (2)(C), a State or
metropolitan planning organization shall not be
required to select any project from the illustrative
list of additional projects included in the financial
plan under paragraph (2)(C).
``(j) Metropolitan TIP.--
``(1) Development.--
``(A) In general.--In cooperation with the
State and any affected public transportation
operator, the metropolitan planning
organization designated for a metropolitan area
shall develop a TIP for the metropolitan
planning area that--
``(i) contains projects consistent
with the current metropolitan
transportation plan;
``(ii) reflects the investment
priorities established in the current
metropolitan transportation plan; and
``(iii) once implemented, is
designed to make progress toward
achieving the performance targets
established under subsection (h)(2).
``(B) Opportunity for comment.--In
developing the TIP, the metropolitan planning
organization, in cooperation with the State and
any affected public transportation operator,
shall provide an opportunity for participation
by interested parties in the development of the
program, in accordance with subsection (i)(5).
``(C) Funding estimates.--For the purpose
of developing the TIP, the metropolitan
planning organization, public transportation
agency, and State shall cooperatively develop
estimates of funds that are reasonably expected
to be available to support program
implementation.
``(D) Updating and approval.--The TIP shall
be--
``(i) updated at least once every 4
years; and
``(ii) approved by the metropolitan
planning organization and the Governor.
``(2) Contents.--
``(A) Priority list.--The TIP shall include
a priority list of proposed Federally supported
projects and strategies to be carried out
within each 4-year period after the initial
adoption of the TIP.
``(B) Financial plan.--The TIP shall
include a financial plan that--
``(i) demonstrates how the TIP can
be implemented;
``(ii) indicates resources from
public and private sources that are
reasonably expected to be available to
carry out the program;
``(iii) identifies innovative
financing techniques to finance
projects, programs, and strategies; and
``(iv) may include, for
illustrative purposes, additional
projects that would be included in the
approved TIP if reasonable additional
resources beyond those identified in
the financial plan were available.
``(C) Descriptions.--Each project in the
TIP shall include sufficient descriptive
material (such as type of work, termini,
length, and other similar factors) to identify
the project or phase of the project.
``(D) Performance target achievement.--The
transportation improvement program shall
include, to the maximum extent practicable, a
description of the anticipated effect of the
transportation improvement program toward
achieving the performance targets established
in the metropolitan transportation plan,
linking investment priorities to those
performance targets.
``(3) Included projects.--
``(A) Projects under this title and chapter
53 of title 49.--A TIP developed under this
subsection for a metropolitan area shall
include the projects within the area that are
proposed for funding under chapter 1 of this
title and chapter 53 of title 49.
``(B) Projects under chapter 2.--
``(i) Regionally significant
projects.--Regionally significant
projects proposed for funding under
chapter 2 shall be identified
individually in the transportation
improvement program.
``(ii) Other projects.--Projects
proposed for funding under chapter 2
that are not determined to be
regionally significant shall be grouped
in 1 line item or identified
individually in the transportation
improvement program.
``(C) Consistency with long-range
transportation plan.--Each project shall be
consistent with the long-range transportation
plan developed under subsection (i) for the
area.
``(D) Requirement of anticipated full
funding.--The program shall include a project,
or an identified phase of a project, only if
full funding can reasonably be anticipated to
be available for the project or the identified
phase within the time period contemplated for
completion of the project or the identified
phase.
``(4) Notice and comment.--Before approving a TIP,
a metropolitan planning organization, in cooperation
with the State and any affected public transportation
operator, shall provide an opportunity for
participation by interested parties in the development
of the program, in accordance with subsection (i)(5).
``(5) Selection of projects.--
``(A) In general.--Except as otherwise
provided in subsection (k)(4) and in addition
to the TIP development required under paragraph
(1), the selection of Federally funded projects
in metropolitan areas shall be carried out,
from the approved TIP--
``(i) by--
``(I) in the case of
projects under this title, the
State; and
``(II) in the case of
projects under chapter 53 of
title 49, the designated
recipients of public
transportation funding; and
``(ii) in cooperation with the
metropolitan planning organization.
``(B) Modifications to project priority.--
Notwithstanding any other provision of law,
action by the Secretary shall not be required
to advance a project included in the approved
TIP in place of another project in the program.
``(6) Selection of projects from illustrative
list.--
``(A) No required selection.--
Notwithstanding paragraph (2)(B)(iv), a State
or metropolitan planning organization shall not
be required to select any project from the
illustrative list of additional projects
included in the financial plan under paragraph
(2)(B)(iv).
``(B) Required action by the secretary.--
Action by the Secretary shall be required for a
State or metropolitan planning organization to
select any project from the illustrative list
of additional projects included in the
financial plan under paragraph (2)(B)(iv) for
inclusion in an approved TIP.
``(7) Publication.--
``(A) Publication of tips.--A TIP involving
Federal participation shall be published or
otherwise made readily available by the
metropolitan planning organization for public
review.
``(B) Publication of annual listings of
projects.--
``(i) In general.--An annual
listing of projects, including
investments in pedestrian walkways and
bicycle transportation facilities, for
which Federal funds have been obligated
in the preceding year shall be
published or otherwise made available
by the cooperative effort of the State,
transit operator, and metropolitan
planning organization for public
review.
``(ii) Requirement.--The listing
shall be consistent with the categories
identified in the TIP.
``(k) Transportation Management Areas.--
``(1) Identification and designation.--
``(A) Required identification.--The
Secretary shall identify as a transportation
management area each urbanized area (as defined
by the Bureau of the Census) with a population
of over 200,000 individuals.
``(B) Designations on request.--The
Secretary shall designate any additional area
as a transportation management area on the
request of the Governor and the metropolitan
planning organization designated for the area.
``(2) Transportation plans.--In a transportation
management area, transportation plans shall be based on
a continuing and comprehensive transportation planning
process carried out by the metropolitan planning
organization in cooperation with the State and public
transportation operators.
``(3) Congestion management process.--
``(A) In general.--Within a metropolitan
planning area serving a transportation
management area, the transportation planning
process under this section shall address
congestion management through a process that
provides for effective management and
operation, based on a cooperatively developed
and implemented metropolitan-wide strategy, of
new and existing transportation facilities
eligible for funding under this title and
chapter 53 of title 49 through the use of
travel demand reduction and operational
management strategies.
``(B) Schedule.--The Secretary shall
establish an appropriate phase-in schedule for
compliance with the requirements of this
section but no sooner than 1 year after the
identification of a transportation management
area.
``(4) Selection of projects.--
``(A) In general.--All Federally funded
projects carried out within the boundaries of a
metropolitan planning area serving a
transportation management area under this title
(excluding projects carried out on the National
Highway System) or under chapter 53 of title 49
shall be selected for implementation from the
approved TIP by the metropolitan planning
organization designated for the area in
consultation with the State and any affected
public transportation operator.
``(B) National highway system projects.--
Projects carried out within the boundaries of a
metropolitan planning area serving a
transportation management area on the National
Highway System shall be selected for
implementation from the approved TIP by the
State in cooperation with the metropolitan
planning organization designated for the area.
``(5) Certification.--
``(A) In general.--The Secretary shall--
``(i) ensure that the metropolitan
planning process of a metropolitan
planning organization serving a
transportation management area is being
carried out in accordance with
applicable provisions of Federal law;
and
``(ii) subject to subparagraph (B),
certify, not less often than once every
4 years, that the requirements of this
paragraph are met with respect to the
metropolitan planning process.
``(B) Requirements for certification.--The
Secretary may make the certification under
subparagraph (A) if--
``(i) the transportation planning
process complies with the requirements
of this section and other applicable
requirements of Federal law; and
``(ii) there is a TIP for the
metropolitan planning area that has
been approved by the metropolitan
planning organization and the Governor.
``(C) Effect of failure to certify.--
``(i) Withholding of project
funds.--If a metropolitan planning
process of a metropolitan planning
organization serving a transportation
management area is not certified, the
Secretary may withhold up to 20 percent
of the funds attributable to the
metropolitan planning area of the
metropolitan planning organization for
projects funded under this title and
chapter 53 of title 49.
``(ii) Restoration of withheld
funds.--The withheld funds shall be
restored to the metropolitan planning
area at such time as the metropolitan
planning process is certified by the
Secretary.
``(D) Review of certification.--In making
certification determinations under this
paragraph, the Secretary shall provide for
public involvement appropriate to the
metropolitan area under review.
``(l) Report on Performance-based Planning Processes.--
``(1) In general.--The Secretary shall submit to
Congress a report on the effectiveness of the
performance-based planning processes of metropolitan
planning organizations under this section, taking into
consideration the requirements of this subsection
``(2) Report.--Not later than 5 years after the
date of enactment of the MAP-21, the Secretary shall
submit to Congress a report evaluating--
``(A) the overall effectiveness of
performance-based planning as a tool for
guiding transportation investments;
``(B) the effectiveness of the performance-
based planning process of each metropolitan
planning organization under this section;
``(C) the extent to which metropolitan
planning organizations have achieved, or are
currently making substantial progress toward
achieving, the performance targets specified
under this section and whether metropolitan
planning organizations are developing
meaningful performance targets; and
``(D) the technical capacity of
metropolitan planning organizations that
operate within a metropolitan planning area of
less than 200,000 and their ability to carry
out the requirements of this section.
``(3) Publication.--The report under paragraph (2)
shall be published or otherwise made available in
electronically accessible formats and means, including
on the Internet.
``(m) Abbreviated Plans for Certain Areas.--
``(1) In general.--Subject to paragraph (2), in the
case of a metropolitan area not designated as a
transportation management area under this section, the
Secretary may provide for the development of an
abbreviated transportation plan and TIP for the
metropolitan planning area that the Secretary
determines is appropriate to achieve the purposes of
this section, taking into account the complexity of
transportation problems in the area.
``(2) Nonattainment areas.--The Secretary may not
permit abbreviated plans or TIPs for a metropolitan
area that is in nonattainment for ozone or carbon
monoxide under the Clean Air Act (42 U.S.C. 7401 et
seq.).
``(n) Additional Requirements for Certain Nonattainment
Areas.--
``(1) In general.--Notwithstanding any other
provisions of this title or chapter 53 of title, for
transportation management areas classified as
nonattainment for ozone or carbon monoxide pursuant to
the Clean Air Act (42 U.S.C. 7401 et seq.), Federal
funds may not be advanced in such area for any highway
project that will result in a significant increase in
the carrying capacity for single-occupant vehicles
unless the project is addressed through a congestion
management process.
``(2) Applicability.--This subsection applies to a
nonattainment area within the metropolitan planning
area boundaries determined under subsection (e).
``(o) Limitation on Statutory Construction.--Nothing in
this section shall be construed to confer on a metropolitan
planning organization the authority to impose legal
requirements on any transportation facility, provider, or
project not eligible under this title or chapter 53 of title
49.
``(p) Funding.--Funds set aside under section 104(f) of
this title or section 5305(g) of title 49 shall be available to
carry out this section.
``(q) Continuation of Current Review Practice.--Since plans
and TIPs described in this section are subject to a reasonable
opportunity for public comment, since individual projects
included in plans and TIPs are subject to review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), and since decisions by the Secretary concerning plans
and TIPs described in this section have not been reviewed under
that Act as of January 1, 1997, any decision by the Secretary
concerning a plan or TIP described in this section shall not be
considered to be a Federal action subject to review under that
Act.''.
(b) Study on Metropolitan Planning Scenario Development.--
(1) In general.--The Secretary shall evaluate the
costs and benefits associated with metropolitan
planning organizations developing multiple scenarios
for consideration as a part of the development of their
metropolitan transportation plan.
(2) Inclusions.--The evaluation shall include an
analysis of the technical and financial capacity of the
metropolitan planning organization needed to develop
scenarios described in paragraph (1).
SEC. 1202. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.
(a) In General.--Section 135 of title 23, United States
Code, is amended to read as follows:
``Sec. 135. Statewide and nonmetropolitan transportation planning
``(a) General Requirements.--
``(1) Development of plans and programs.--Subject
to section 134, to accomplish the objectives stated in
section 134(a), each State shall develop a statewide
transportation plan and a statewide transportation
improvement program for all areas of the State.
``(2) Contents.--The statewide transportation plan
and the transportation improvement program developed
for each State shall provide for the development and
integrated management and operation of transportation
systems and facilities (including accessible pedestrian
walkways and bicycle transportation facilities) that
will function as an intermodal transportation system
for the State and an integral part of an intermodal
transportation system for the United States.
``(3) Process of development.--The process for
developing the statewide plan and the transportation
improvement program shall provide for consideration of
all modes of transportation and the policies stated in
section 134(a) and shall be continuing, cooperative,
and comprehensive to the degree appropriate, based on
the complexity of the transportation problems to be
addressed.
``(b) Coordination With Metropolitan Planning; State
Implementation Plan.--A State shall--
``(1) coordinate planning carried out under this
section with the transportation planning activities
carried out under section 134 for metropolitan areas of
the State and with statewide trade and economic
development planning activities and related multistate
planning efforts; and
``(2) develop the transportation portion of the
State implementation plan as required by the Clean Air
Act (42 U.S.C. 7401 et seq.).
``(c) Interstate Agreements.--
``(1) In general.--Two or more States may enter
into agreements or compacts, not in conflict with any
law of the United States, for cooperative efforts and
mutual assistance in support of activities authorized
under this section related to interstate areas and
localities in the States and establishing authorities
the States consider desirable for making the agreements
and compacts effective.
``(2) Reservation of rights.--The right to alter,
amend, or repeal interstate compacts entered into under
this subsection is expressly reserved.
``(d) Scope of Planning Process.--
``(1) In general.--Each State shall carry out a
statewide transportation planning process that provides
for consideration and implementation of projects,
strategies, and services that will--
``(A) support the economic vitality of the
United States, the States, nonmetropolitan
areas, and metropolitan areas, especially by
enabling global competitiveness, productivity,
and efficiency;
``(B) increase the safety of the
transportation system for motorized and
nonmotorized users;
``(C) increase the security of the
transportation system for motorized and
nonmotorized users;
``(D) increase the accessibility and
mobility of people and freight;
``(E) protect and enhance the environment,
promote energy conservation, improve the
quality of life, and promote consistency
between transportation improvements and State
and local planned growth and economic
development patterns;
``(F) enhance the integration and
connectivity of the transportation system,
across and between modes throughout the State,
for people and freight;
``(G) promote efficient system management
and operation; and
``(H) emphasize the preservation of the
existing transportation system.
``(2) Performance-based approach.--
``(A) In general.--The statewide
transportation planning process shall provide
for the establishment and use of a performance-
based approach to transportation decisionmaking
to support the national goals described in
section 150(b) of this title and in section
5301(c) of title 49.
``(B) Performance targets.--
``(i) Surface transportation
performance targets.--
``(I) In general.--Each
State shall establish
performance targets that
address the performance
measures described in section
150(c), where applicable, to
use in tracking progress
towards attainment of critical
outcomes for the State.
``(II) Coordination.--
Selection of performance
targets by a State shall be
coordinated with the relevant
metropolitan planning
organizations to ensure
consistency, to the maximum
extent practicable.
``(ii) Public transportation
performance targets.--In urbanized
areas not represented by a metropolitan
planning organization, selection of
performance targets by a State shall be
coordinated, to the maximum extent
practicable, with providers of public
transportation to ensure consistency
with sections 5326(c) and 5329(d) of
title 49.
``(C) Integration of other performance-
based plans.--A State shall integrate into the
statewide transportation planning process,
directly or by reference, the goals,
objectives, performance measures, and targets
described in this paragraph, in other State
transportation plans and transportation
processes, as well as any plans developed
pursuant to chapter 53 of title 49 by providers
of public transportation in urbanized areas not
represented by a metropolitan planning
organization required as part of a performance-
based program.
``(D) Use of performance measures and
targets.--The performance measures and targets
established under this paragraph shall be
considered by a State when developing policies,
programs, and investment priorities reflected
in the statewide transportation plan and
statewide transportation improvement program.
``(3) Failure to consider factors.--The failure to
take into consideration the factors specified in
paragraphs (1) and (2) shall not be subject to review
by any court under this title, chapter 53 of title 49,
subchapter II of chapter 5 of title 5, or chapter 7 of
title 5 in any matter affecting a statewide
transportation plan, a statewide transportation
improvement program, a project or strategy, or the
certification of a planning process.
``(e) Additional Requirements.--In carrying out planning
under this section, each State shall, at a minimum--
``(1) with respect to nonmetropolitan areas,
cooperate with affected local officials with
responsibility for transportation or, if applicable,
through regional transportation planning organizations
described in subsection (m);
``(2) consider the concerns of Indian tribal
governments and Federal land management agencies that
have jurisdiction over land within the boundaries of
the State; and
``(3) consider coordination of transportation
plans, the transportation improvement program, and
planning activities with related planning activities
being carried out outside of metropolitan planning
areas and between States.
``(f) Long-range Statewide Transportation Plan.--
``(1) Development.--Each State shall develop a
long-range statewide transportation plan, with a
minimum 20-year forecast period for all areas of the
State, that provides for the development and
implementation of the intermodal transportation system
of the State.
``(2) Consultation with governments.--
``(A) Metropolitan areas.--The statewide
transportation plan shall be developed for each
metropolitan area in the State in cooperation
with the metropolitan planning organization
designated for the metropolitan area under
section 134.
``(B) Nonmetropolitan areas.--
``(i) In general.--With respect to
nonmetropolitan areas, the statewide
transportation plan shall be developed
in cooperation with affected
nonmetropolitan officials with
responsibility for transportation or,
if applicable, through regional
transportation planning organizations
described in subsection (m).
``(ii) Role of secretary.--The
Secretary shall not review or approve
the consultation process in each State.
``(C) Indian tribal areas.--With respect to
each area of the State under the jurisdiction
of an Indian tribal government, the statewide
transportation plan shall be developed in
consultation with the tribal government and the
Secretary of the Interior.
``(D) Consultation, comparison, and
consideration.--
``(i) In general.--The long-range
transportation plan shall be developed,
as appropriate, in consultation with
State, tribal, and local agencies
responsible for land use management,
natural resources, environmental
protection, conservation, and historic
preservation.
``(ii) Comparison and
consideration.--Consultation under
clause (i) shall involve comparison of
transportation plans to State and
tribal conservation plans or maps, if
available, and comparison of
transportation plans to inventories of
natural or historic resources, if
available.
``(3) Participation by interested parties.--
``(A) In general.--In developing the
statewide transportation plan, the State shall
provide to--
``(i) nonmetropolitan local elected
officials or, if applicable, through
regional transportation planning
organizations described in subsection
(m), an opportunity to participate in
accordance with subparagraph (B)(i);
and
``(ii) citizens, affected public
agencies, representatives of public
transportation employees, freight
shippers, private providers of
transportation, representatives of
users of public transportation,
representatives of users of pedestrian
walkways and bicycle transportation
facilities, representatives of the
disabled, providers of freight
transportation services, and other
interested parties a reasonable
opportunity to comment on the proposed
plan.
``(B) Methods.--In carrying out
subparagraph (A), the State shall, to the
maximum extent practicable--
``(i) develop and document a
consultative process to carry out
subparagraph (A)(i) that is separate
and discrete from the public
involvement process developed under
clause (ii);
``(ii) hold any public meetings at
convenient and accessible locations and
times;
``(iii) employ visualization
techniques to describe plans; and
``(iv) make public information
available in electronically accessible
format and means, such as the World
Wide Web, as appropriate to afford
reasonable opportunity for
consideration of public information
under subparagraph (A).
``(4) Mitigation activities.--
``(A) In general.--A long-range
transportation plan shall include a discussion
of potential environmental mitigation
activities and potential areas to carry out
these activities, including activities that may
have the greatest potential to restore and
maintain the environmental functions affected
by the plan.
``(B) Consultation.--The discussion shall
be developed in consultation with Federal,
State, and tribal wildlife, land management,
and regulatory agencies.
``(5) Financial plan.--The statewide transportation
plan may include--
``(A) a financial plan that--
``(i) demonstrates how the adopted
statewide transportation plan can be
implemented;
``(ii) indicates resources from
public and private sources that are
reasonably expected to be made
available to carry out the plan; and
``(iii) recommends any additional
financing strategies for needed
projects and programs; and
``(B) for illustrative purposes, additional
projects that would be included in the adopted
statewide transportation plan if reasonable
additional resources beyond those identified in
the financial plan were available.
``(6) Selection of projects from illustrative
list.--A State shall not be required to select any
project from the illustrative list of additional
projects included in the financial plan described in
paragraph (5).
``(7) Performance-based approach.--The statewide
transportation plan should include--
``(A) a description of the performance
measures and performance targets used in
assessing the performance of the transportation
system in accordance with subsection (d)(2);
and
``(B) a system performance report and
subsequent updates evaluating the condition and
performance of the transportation system with
respect to the performance targets described in
subsection (d)(2), including progress achieved
by the metropolitan planning organization in
meeting the performance targets in comparison
with system performance recorded in previous
reports;
``(8) Existing system.--The statewide
transportation plan should include capital, operations
and management strategies, investments, procedures, and
other measures to ensure the preservation and most
efficient use of the existing transportation system.
``(9) Publication of long-range transportation
plans.--Each long-range transportation plan prepared by
a State shall be published or otherwise made available,
including (to the maximum extent practicable) in
electronically accessible formats and means, such as
the World Wide Web.
``(g) Statewide Transportation Improvement Program.--
``(1) Development.--
``(A) In general.--Each State shall develop
a statewide transportation improvement program
for all areas of the State.
``(B) Duration and updating of program.--
Each program developed under subparagraph (A)
shall cover a period of 4 years and shall be
updated every 4 years or more frequently if the
Governor of the State elects to update more
frequently.
``(2) Consultation with governments.--
``(A) Metropolitan areas.--With respect to
each metropolitan area in the State, the
program shall be developed in cooperation with
the metropolitan planning organization
designated for the metropolitan area under
section 134.
``(B) Nonmetropolitan areas.--
``(i) In general.--With respect to
each nonmetropolitan area in the State,
the program shall be developed in
consultation with affected
nonmetropolitan local officials with
responsibility for transportation or,
if applicable, through regional
transportation planning organizations
described in subsection (m).
``(ii) Role of secretary.--The
Secretary shall not review or approve
the specific consultation process in
the State.
``(C) Indian tribal areas.--With respect to
each area of the State under the jurisdiction
of an Indian tribal government, the program
shall be developed in consultation with the
tribal government and the Secretary of the
Interior.
``(3) Participation by interested parties.--In
developing the program, the State shall provide
citizens, affected public agencies, representatives of
public transportation employees, freight shippers,
private providers of transportation, providers of
freight transportation services, representatives of
users of public transportation, representatives of
users of pedestrian walkways and bicycle transportation
facilities, representatives of the disabled, and other
interested parties with a reasonable opportunity to
comment on the proposed program.
``(4) Performance target achievement.--A statewide
transportation improvement program shall include, to
the maximum extent practicable, a discussion of the
anticipated effect of the statewide transportation
improvement program toward achieving the performance
targets established in the statewide transportation
plan, linking investment priorities to those
performance targets.
``(5) Included projects.--
``(A) In general.--A transportation
improvement program developed under this
subsection for a State shall include Federally
supported surface transportation expenditures
within the boundaries of the State.
``(B) Listing of projects.--
``(i) In general.--An annual
listing of projects for which funds
have been obligated for the preceding
year in each metropolitan planning area
shall be published or otherwise made
available by the cooperative effort of
the State, transit operator, and the
metropolitan planning organization for
public review.
``(ii) Funding categories.--The
listing described in clause (i) shall
be consistent with the funding
categories identified in each
metropolitan transportation improvement
program.
``(C) Projects under chapter 2.--
``(i) Regionally significant
projects.--Regionally significant
projects proposed for funding under
chapter 2 shall be identified
individually in the transportation
improvement program.
``(ii) Other projects.--Projects
proposed for funding under chapter 2
that are not determined to be
regionally significant shall be grouped
in 1 line item or identified
individually in the transportation
improvement program.
``(D) Consistency with statewide
transportation plan.--Each project shall be--
``(i) consistent with the statewide
transportation plan developed under
this section for the State;
``(ii) identical to the project or
phase of the project as described in an
approved metropolitan transportation
plan; and
``(iii) in conformance with the
applicable State air quality
implementation plan developed under the
Clean Air Act (42 U.S.C. 7401 et seq.),
if the project is carried out in an
area designated as a nonattainment area
for ozone, particulate matter, or
carbon monoxide under part D of title I
of that Act (42 U.S.C. 7501 et seq.).
``(E) Requirement of anticipated full
funding.--The transportation improvement
program shall include a project, or an
identified phase of a project, only if full
funding can reasonably be anticipated to be
available for the project within the time
period contemplated for completion of the
project.
``(F) Financial plan.--
``(i) In general.--The
transportation improvement program may
include a financial plan that
demonstrates how the approved
transportation improvement program can
be implemented, indicates resources
from public and private sources that
are reasonably expected to be made
available to carry out the
transportation improvement program, and
recommends any additional financing
strategies for needed projects and
programs.
``(ii) Additional projects.--The
financial plan may include, for
illustrative purposes, additional
projects that would be included in the
adopted transportation plan if
reasonable additional resources beyond
those identified in the financial plan
were available.
``(G) Selection of projects from
illustrative list.--
``(i) No required selection.--
Notwithstanding subparagraph (F), a
State shall not be required to select
any project from the illustrative list
of additional projects included in the
financial plan under subparagraph (F).
``(ii) Required action by the
secretary.--Action by the Secretary
shall be required for a State to select
any project from the illustrative list
of additional projects included in the
financial plan under subparagraph (F)
for inclusion in an approved
transportation improvement program.
``(H) Priorities.--The transportation
improvement program shall reflect the
priorities for programming and expenditures of
funds, including transportation enhancement
activities, required by this title and chapter
53 of title 49.
``(6) Project selection for areas of less than
50,000 population.--
``(A) In general.--Projects carried out in
areas with populations of less than 50,000
individuals shall be selected, from the
approved transportation improvement program
(excluding projects carried out on the National
Highway System and projects carried out under
the bridge program or the Interstate
maintenance program under this title or under
sections 5310 and 5311 of title 49), by the
State in cooperation with the affected
nonmetropolitan local officials with
responsibility for transportation or, if
applicable, through regional transportation
planning organizations described in subsection
(m).
``(B) Other projects.--Projects carried out
in areas with populations of less than 50,000
individuals on the National Highway System or
under the bridge program or the Interstate
maintenance program under this title or under
sections 5310, 5311, 5316, and 5317 of title 49
shall be selected, from the approved statewide
transportation improvement program, by the
State in consultation with the affected
nonmetropolitan local officials with
responsibility for transportation.
``(7) Transportation improvement program
approval.--Every 4 years, a transportation improvement
program developed under this subsection shall be
reviewed and approved by the Secretary if based on a
current planning finding.
``(8) Planning finding.--A finding shall be made by
the Secretary at least every 4 years that the
transportation planning process through which statewide
transportation plans and programs are developed is
consistent with this section and section 134.
``(9) Modifications to project priority.--
Notwithstanding any other provision of law, action by
the Secretary shall not be required to advance a
project included in the approved transportation
improvement program in place of another project in the
program.
``(h) Performance-based Planning Processes Evaluation.--
``(1) In general.--The Secretary shall establish
criteria to evaluate the effectiveness of the
performance-based planning processes of States, taking
into consideration the following:
``(A) The extent to which the State is
making progress toward achieving, the
performance targets described in subsection
(d)(2), taking into account whether the State
developed appropriate performance targets.
``(B) The extent to which the State has
made transportation investments that are
efficient and cost-effective.
``(C) The extent to which the State--
``(i) has developed an investment
process that relies on public input and
awareness to ensure that investments
are transparent and accountable; and
``(ii) provides reports allowing
the public to access the information
being collected in a format that allows
the public to meaningfully assess the
performance of the State.
``(2) Report.--
``(A) In general.--Not later than 5 years
after the date of enactment of the MAP-21, the
Secretary shall submit to Congress a report
evaluating--
``(i) the overall effectiveness of
performance-based planning as a tool
for guiding transportation investments;
and
``(ii) the effectiveness of the
performance-based planning process of
each State.
``(B) Publication.--The report under
subparagraph (A) shall be published or
otherwise made available in electronically
accessible formats and means, including on the
Internet.
``(i) Funding.--Funds apportioned under section 104(b)(5)
of this title and set aside under section 5305(g) of title 49
shall be available to carry out this section.
``(j) Treatment of Certain State Laws as Congestion
Management Processes.--For purposes of this section and section
134, and sections 5303 and 5304 of title 49, State laws, rules,
or regulations pertaining to congestion management systems or
programs may constitute the congestion management process under
this section and section 134, and sections 5303 and 5304 of
title 49, if the Secretary finds that the State laws, rules, or
regulations are consistent with, and fulfill the intent of, the
purposes of this section and section 134 and sections 5303 and
5304 of title 49, as appropriate.
``(k) Continuation of Current Review Practice.--Since the
statewide transportation plan and the transportation
improvement program described in this section are subject to a
reasonable opportunity for public comment, since individual
projects included in the statewide transportation plans and the
transportation improvement program are subject to review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.), and since decisions by the Secretary concerning
statewide transportation plans or the transportation
improvement program described in this section have not been
reviewed under that Act as of January 1, 1997, any decision by
the Secretary concerning a metropolitan or statewide
transportation plan or the transportation improvement program
described in this section shall not be considered to be a
Federal action subject to review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(l) Schedule for Implementation.--The Secretary shall
issue guidance on a schedule for implementation of the changes
made by this section, taking into consideration the established
planning update cycle for States. The Secretary shall not
require a State to deviate from its established planning update
cycle to implement changes made by this section. States shall
reflect changes made to their transportation plan or
transportation improvement program updates not later than 2
years after the date of issuance of guidance by the Secretary
under this subsection.
``(m) Designation of Regional Transportation Planning
Organizations.--
``(1) In general.--To carry out the transportation
planning process required by this section, a State may
establish and designate regional transportation
planning organizations to enhance the planning,
coordination, and implementation of statewide strategic
long-range transportation plans and transportation
improvement programs, with an emphasis on addressing
the needs of nonmetropolitan areas of the State.
``(2) Structure.--A regional transportation
planning organization shall be established as a
multijurisdictional organization of nonmetropolitan
local officials or their designees who volunteer for
such organization and representatives of local
transportation systems who volunteer for such
organization.
``(3) Requirements.--A regional transportation
planning organization shall establish, at a minimum--
``(A) a policy committee, the majority of
which shall consist of nonmetropolitan local
officials, or their designees, and, as
appropriate, additional representatives from
the State, private business, transportation
service providers, economic development
practitioners, and the public in the region;
and
``(B) a fiscal and administrative agent,
such as an existing regional planning and
development organization, to provide
professional planning, management, and
administrative support.
``(4) Duties.--The duties of a regional
transportation planning organization shall include--
``(A) developing and maintaining, in
cooperation with the State, regional long-range
multimodal transportation plans;
``(B) developing a regional transportation
improvement program for consideration by the
State;
``(C) fostering the coordination of local
planning, land use, and economic development
plans with State, regional, and local
transportation plans and programs;
``(D) providing technical assistance to
local officials;
``(E) participating in national,
multistate, and State policy and planning
development processes to ensure the regional
and local input of nonmetropolitan areas;
``(F) providing a forum for public
participation in the statewide and regional
transportation planning processes;
``(G) considering and sharing plans and
programs with neighboring regional
transportation planning organizations,
metropolitan planning organizations, and, where
appropriate, tribal organizations; and
``(H) conducting other duties, as
necessary, to support and enhance the statewide
planning process under subsection (d).
``(5) States without regional transportation
planning organizations.--If a State chooses not to
establish or designate a regional transportation
planning organization, the State shall consult with
affected nonmetropolitan local officials to determine
projects that may be of regional significance.''.
(b) Conforming Amendment.--The analysis for chapter 1 of
title 23, United States Code, is amended by striking the item
relating to section 135 and inserting the following:
``135. Statewide and nonmetropolitan transportation planning.''.
SEC. 1203. NATIONAL GOALS AND PERFORMANCE MANAGEMENT MEASURES.
(a) In General.--Section 150 of title 23, United States
Code, is amended to read as follows:
``Sec. 150. National goals and performance management measures
``(a) Declaration of Policy.--Performance management will
transform the Federal-aid highway program and provide a means
to the most efficient investment of Federal transportation
funds by refocusing on national transportation goals,
increasing the accountability and transparency of the Federal-
aid highway program, and improving project decisionmaking
through performance-based planning and programming.
``(b) National Goals.--It is in the interest of the United
States to focus the Federal-aid highway program on the
following national goals:
``(1) Safety.--To achieve a significant reduction
in traffic fatalities and serious injuries on all
public roads.
``(2) Infrastructure condition.--To maintain the
highway infrastructure asset system in a state of good
repair.
``(3) Congestion reduction.--To achieve a
significant reduction in congestion on the National
Highway System.
``(4) System reliability.--To improve the
efficiency of the surface transportation system.
``(5) Freight movement and economic vitality.--To
improve the national freight network, strengthen the
ability of rural communities to access national and
international trade markets, and support regional
economic development.
``(6) Environmental sustainability.--To enhance the
performance of the transportation system while
protecting and enhancing the natural environment.
``(7) Reduced project delivery delays.--To reduce
project costs, promote jobs and the economy, and
expedite the movement of people and goods by
accelerating project completion through eliminating
delays in the project development and delivery process,
including reducing regulatory burdens and improving
agencies' work practices.
``(c) Establishment of Performance Measures.--
``(1) In general.--Not later than 18 months after
the date of enactment of the MAP-21, the Secretary, in
consultation with State departments of transportation,
metropolitan planning organizations, and other
stakeholders, shall promulgate a rulemaking that
establishes performance measures and standards.
``(2) Administration.--In carrying out paragraph
(1), the Secretary shall--
``(A) provide States, metropolitan planning
organizations, and other stakeholders not less
than 90 days to comment on any regulation
proposed by the Secretary under that paragraph;
``(B) take into consideration any comments
relating to a proposed regulation received
during that comment period; and
``(C) limit performance measures only to
those described in this subsection.
``(3) National highway performance program.--
``(A) In general.--Subject to subparagraph
(B), for the purpose of carrying out section
119, the Secretary shall establish --
``(i) minimum standards for States
to use in developing and operating
bridge and pavement management systems;
``(ii) measures for States to use
to assess--
``(I) the condition of
pavements on the Interstate
system;
``(II) the condition of
pavements on the National
Highway System (excluding the
Interstate);
``(III) the condition of
bridges on the National Highway
System;
``(IV) the performance of
the Interstate System; and
``(V) the performance of
the National Highway System
(excluding the Interstate
System);
``(iii) minimum levels for the
condition of pavement on the Interstate
System, only for the purposes of
carrying out section 119(f)(1); and
``(iv) the data elements that are
necessary to collect and maintain
standardized data to carry out a
performance-based approach.
``(B) Regions.--In establishing minimum
condition levels under subparagraph (A)(iii),
if the Secretary determines that various
geographic regions of the United States
experience disparate factors contributing to
the condition of pavement on the Interstate
System in those regions, the Secretary may
establish different minimum levels for each
region;
``(4) Highway safety improvement program.--For the
purpose of carrying out section 148, the Secretary
shall establish measures for States to use to assess--
``(A) serious injuries and fatalities per
vehicle mile traveled; and
``(B) the number of serious injuries and
fatalities.
``(5) Congestion mitigation and air quality
program.--For the purpose of carrying out section 149,
the Secretary shall establish measures for States to
use to assess--
``(A) traffic congestion; and
``(B) on-road mobile source emissions.
``(6) National freight movement.--The Secretary
shall establish measures for States to use to assess
freight movement on the Interstate System.
``(d) Establishment of Performance Targets.--
``(1) In general.--Not later than 1 year after the
Secretary has promulgated the final rulemaking under
subsection (c), each State shall set performance
targets that reflect the measures identified in
paragraphs (3), (4), (5), and (6) of subsection (c).
``(2) Different approaches for urban and rural
areas.--In the development and implementation of any
performance target, a State may, as appropriate,
provide for different performance targets for urbanized
and rural areas.
``(e) Reporting on Performance Targets.--Not later than 4
years after the date of enactment of the MAP-21 and biennially
thereafter, a State shall submit to the Secretary a report that
describes--
``(1) the condition and performance of the National
Highway System in the State;
``(2) the effectiveness of the investment strategy
document in the State asset management plan for the
National Highway System;
``(3) progress in achieving performance targets
identified under subsection (d); and
``(4) the ways in which the State is addressing
congestion at freight bottlenecks, including those
identified in the National Freight Strategic Plan,
within the State.''.
(b) Conforming Amendment.--The analysis for chapter 1 of
title 23, United States Code, is amended by striking the item
relating to section 150 and inserting the following:
``150. National goals and performance management measures.''.
Subtitle C--Acceleration of Project Delivery
SEC. 1301. DECLARATION OF POLICY AND PROJECT DELIVERY INITIATIVE.
(a) In General.--It is the policy of the United States
that--
(1) it is in the national interest for the
Department, State departments of transportation,
transit agencies, and all other recipients of Federal
transportation funds--
(A) to accelerate project delivery and
reduce costs; and
(B) to ensure that the planning, design,
engineering, construction, and financing of
transportation projects is done in an efficient
and effective manner, promoting accountability
for public investments and encouraging greater
private sector involvement in project financing
and delivery while enhancing safety and
protecting the environment;
(2) delay in the delivery of transportation
projects increases project costs, harms the economy of
the United States, and impedes the travel of the people
of the United States and the shipment of goods for the
conduct of commerce; and
(3) the Secretary shall identify and promote the
deployment of innovation aimed at reducing the time and
money required to deliver transportation projects while
enhancing safety and protecting the environment.
(b) Project Delivery Initiative.--
(1) In general.--To advance the policy described in
subsection (a), the Secretary shall carry out a project
delivery initiative under this section.
(2) Purposes.--The purposes of the project delivery
initiative shall be--
(A) to develop and advance the use of best
practices to accelerate project delivery and
reduce costs across all modes of transportation
and expedite the deployment of technology and
innovation;
(B) to implement provisions of law designed
to accelerate project delivery; and
(C) to select eligible projects for
applying experimental features to test
innovative project delivery techniques.
(3) Advancing the use of best practices.--
(A) In general.--In carrying out the
initiative under this section, the Secretary
shall identify and advance best practices to
reduce delivery time and project costs, from
planning through construction, for
transportation projects and programs of
projects regardless of mode and project size.
(B) Administration.--To advance the use of
best practices, the Secretary shall--
(i) engage interested parties,
affected communities, resource
agencies, and other stakeholders to
gather information regarding
opportunities for accelerating project
delivery and reducing costs;
(ii) establish a clearinghouse for
the collection, documentation, and
advancement of existing and new
innovative approaches and best
practices;
(iii) disseminate information
through a variety of means to
transportation stakeholders on new
innovative approaches and best
practices; and
(iv) provide technical assistance
to assist transportation stakeholders
in the use of flexibility authority to
resolve project delays and accelerate
project delivery if feasible.
(4) Implementation of accelerated project
delivery.--The Secretary shall ensure that the
provisions of this subtitle designed to accelerate
project delivery are fully implemented, including--
(A) expanding eligibility of early
acquisition of property prior to completion of
environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.);
(B) allowing the use of the construction
manager or general contractor method of
contracting in the Federal-aid highway system;
and
(C) establishing a demonstration program to
streamline the relocation process by permitting
a lump-sum payment for acquisition and
relocation if elected by the displaced
occupant.
(c) Expedited Project Delivery.--Section 101(b) of title
23, United States Code, is amended by adding at the end the
following:
``(4) Expedited project delivery.--
``(A) In general.--Congress declares that
it is in the national interest to expedite the
delivery of surface transportation projects by
substantially reducing the average length of
the environmental review process.
``(B) Policy of the united states.--
Accordingly, it is the policy of the United
States that--
``(i) the Secretary shall have the
lead role among Federal agencies in
carrying out the environmental review
process for surface transportation
projects;
``(ii) each Federal agency shall
cooperate with the Secretary to
expedite the environmental review
process for surface transportation
projects;
``(iii) project sponsors shall not
be prohibited from carrying out
preconstruction project development
activities concurrently with the
environmental review process;
``(iv) programmatic approaches
shall be used to reduce the need for
project-by-project reviews and
decisions by Federal agencies; and
``(v) the Secretary shall identify
opportunities for project sponsors to
assume responsibilities of the
Secretary where such responsibilities
can be assumed in a manner that
protects public health, the
environment, and public
participation.''.
SEC. 1302. ADVANCE ACQUISITION OF REAL PROPERTY INTERESTS.
(a) Real Property Interests.--Section 108 of title 23,
United States Code, is amended--
(1) by striking ``real property'' each place it
appears and inserting ``real property interests'';
(2) by striking ``right-of-way'' each place it
appears and inserting ``real property interest''; and
(3) by striking ``rights-of-way'' each place it
appears and inserting ``real property interests''.
(b) State-funded Early Acquisition of Real Property
Interests.--Section 108(c) of title 23, United States Code, is
amended--
(1) in the subsection heading, by striking ``Early
Acquisition of Rights-of-way'' and inserting ``State-
funded Early Acquisition of Real Property Interests'';
(2) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (3), respectively;
(3) in paragraph (2) (as so redesignated)--
(A) in the heading, by striking ``General
rule'' and inserting ``Eligibility for
reimbursement''; and
(B) by striking ``Subject to paragraph
(2)'' and inserting ``Subject to paragraph
(3)'';
(4) by inserting before paragraph (2) (as so
redesignated) the following:
``(1) In general.--A State may carry out, at the
expense of the State, acquisitions of interests in real
property for a project before completion of the review
process required for the project under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) without affecting subsequent approvals required
for the project by the State or any Federal agency.'';
and
(5) in paragraph (3) (as so redesignated)--
(A) in the matter preceding subparagraph
(A), by striking ``in paragraph (1)'' and
inserting ``in paragraph (2)''; and
(B) in subparagraph (G), by striking ``both
the Secretary and the Administrator of the
Environmental Protection Agency have
concurred'' and inserting ``the Secretary has
determined''.
(c) Federally Funded Acquisition of Real Property
Interests.--Section 108 of title 23, United States Code, is
amended by adding at the end the following:
``(d) Federally Funded Early Acquisition of Real Property
Interests.--
``(1) Definition of acquisition of a real property
interest.--In this subsection, the term `acquisition of
a real property interest' includes the acquisition of--
``(A) any interest in land;
``(B) a contractual right to acquire any
interest in land; or
``(C) any other similar action to acquire
or preserve rights-of-way for a transportation
facility.
``(2) Authorization.--The Secretary may authorize
the use of funds apportioned to a State under this
title for the acquisition of a real property interest
by a State.
``(3) State certification.--A State requesting
Federal funding for an acquisition of a real property
interest shall certify in writing, with concurrence by
the Secretary, that--
``(A) the State has authority to acquire
the real property interest under State law; and
``(B) the acquisition of the real property
interest--
``(i) is for a transportation
purpose;
``(ii) will not cause any
significant adverse environmental
impact;
``(iii) will not limit the choice
of reasonable alternatives for the
project or otherwise influence the
decision of the Secretary on any
approval required for the project;
``(iv) does not prevent the lead
agency from making an impartial
decision as to whether to accept an
alternative that is being considered in
the environmental review process;
``(v) is consistent with the State
transportation planning process under
section 135;
``(vi) complies with other
applicable Federal laws (including
regulations);
``(vii) will be acquired through
negotiation, without the threat of
condemnation; and
``(viii) will not result in a
reduction or elimination of benefits or
assistance to a displaced person
required by the Uniform Relocation
Assistance and Real Property
Acquisition Policies Act of 1970 (42
U.S.C. 4601 et seq.) and title VI of
the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).
``(4) Environmental compliance.--
``(A) In general.--Before authorizing
Federal funding for an acquisition of a real
property interest, the Secretary shall complete
the review process under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) with respect to the acquisition
of the real property interest.
``(B) Independent utility.--The acquisition
of a real property interest--
``(i) shall be treated as having
independent utility for purposes of the
review process under the National
Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.); and
``(ii) shall not limit
consideration of alternatives for
future transportation improvements with
respect to the real property interest.
``(5) Programming.--
``(A) In general.--The acquisition of a
real property interest for which Federal
funding is requested shall be included as a
project in an applicable transportation
improvement program under sections 134 and 135
and sections 5303 and 5304 of title 49.
``(B) Acquisition project.--The acquisition
project may consist of the acquisition of a
specific parcel, a portion of a transportation
corridor, or an entire transportation corridor.
``(6) Development.--Real property interests
acquired under this subsection may not be developed in
anticipation of a project until all required
environmental reviews for the project have been
completed.
``(7) Reimbursement.--If Federal-aid reimbursement
is made for real property interests acquired early
under this section and the real property interests are
not subsequently incorporated into a project eligible
for surface transportation funds within the time
allowed by subsection (a)(2), the Secretary shall
offset the amount reimbursed against funds apportioned
to the State.
``(8) Other requirements and conditions.--
``(A) Applicable law.--The acquisition of a
real property interest shall be carried out in
compliance with all requirements applicable to
the acquisition of real property interests for
federally funded transportation projects.
``(B) Additional conditions.--The Secretary
may establish such other conditions or
restrictions on acquisitions under this
subsection as the Secretary determines to be
appropriate.''.
SEC. 1303. LETTING OF CONTRACTS.
(a) Efficiencies in Contracting.--Section 112(b) of title
23, United States Code, is amended by adding at the end the
following:
``(4) Method of contracting.--
``(A) In general.--
``(i) 2-phase contract.--A
contracting agency may award a 2-phase
contract to a construction manager or
general contractor for preconstruction
and construction services.
``(ii) Preconstruction services
phase.--In the preconstruction services
phase of a contract under this
paragraph, the contractor shall provide
the contracting agency with advice for
scheduling, work sequencing, cost
engineering, constructability, cost
estimating, and risk identification.
``(iii) Agreement.--Prior to the
start of the construction services
phase, the contracting agency and the
contractor may agree to a price and
other factors specified in regulation
for the construction of the project or
a portion of the project.
``(iv) Construction phase.--If an
agreement is reached under clause
(iii), the contractor shall be
responsible for the construction of the
project or portion of the project at
the negotiated price and in compliance
with the other factors specified in the
agreement.
``(B) Selection.--A contract shall be
awarded to a contractor under this paragraph
using a competitive selection process based on
qualifications, experience, best value, or any
other combination of factors considered
appropriate by the contracting agency.
``(C) Timing.--
``(i) Relationship to nepa
process.--Prior to the completion of
the environmental review process
required under section 102 of the
National Environmental Policy Act of
1969 (42 U.S.C. 4332), a contracting
agency may--
``(I) issue requests for
proposals;
``(II) proceed with the
award of a contract for
preconstruction services under
subparagraph (A)(ii); and
``(III) issue notices to
proceed with a preliminary
design and any work related to
preliminary design, to the
extent that those actions do
not limit any reasonable range
of alternatives.
``(ii) Construction services
phase.--A contracting agency shall not
proceed with the award of the
construction services phase of a
contract under subparagraph (A)(iv) and
shall not proceed, or permit any
consultant or contractor to proceed,
with final design or construction until
completion of the environmental review
process required under section 102 of
the National Environmental Policy Act
of 1969 (42 U.S.C. 4332).
``(iii) Approval requirement.--
Prior to authorizing construction
activities, the Secretary shall
approve--
``(I) the price estimate of
the contracting agency for the
entire project; and
``(II) any price agreement
with the general contractor for
the project or a portion of the
project.
``(iv) Design activities.--
``(I) In general.--A
contracting agency may proceed,
at the expense of the
contracting agency, with design
activities at any level of
detail for a project before
completion of the review
process required for the
project under the National
Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.)
without affecting subsequent
approvals required for the
project.
``(II) Reimbursement.--
Design activities carried out
under subclause (I) shall be
eligible for Federal
reimbursement as a project
expense in accordance with the
requirements under section
109(r).
``(v) Termination provision.--The
Secretary shall require a contract to
include an appropriate termination
provision in the event that a no-build
alternative is selected.''.
(b) Regulations.--The Secretary shall promulgate such
regulations as are necessary to carry out the amendment made by
subsection (a).
(c) Effect on Experimental Program.--Nothing in this
section or the amendment made by this section affects the
authority to carry out, or any project carried out under, any
experimental program concerning construction manager risk that
is being carried out by the Secretary as of the date of
enactment of this Act.
SEC. 1304. INNOVATIVE PROJECT DELIVERY METHODS.
(a) Declaration of Policy.--
(1) In general.--Congress declares that it is in
the national interest to promote the use of innovative
technologies and practices that increase the efficiency
of construction of, improve the safety of, and extend
the service life of highways and bridges.
(2) Inclusions.--The innovative technologies and
practices described in paragraph (1) include state-of-
the-art intelligent transportation system technologies,
elevated performance standards, and new highway
construction business practices that improve highway
safety and quality, accelerate project delivery, and
reduce congestion related to highway construction.
(b) Federal Share.--Section 120(c) of title 23, United
States Code, is amended by adding at the end the following:
``(3) Innovative project delivery.--
``(A) In general.--Except as provided in
subparagraph (C), the Federal share payable on
account of a project, program, or activity
carried out with funds apportioned under
paragraph (1), (2), or (5) of section 104(b)
may, at the discretion of the State, be up to
100 percent for any such project, program, or
activity that the Secretary determines--
``(i) contains innovative project
delivery methods that improve work zone
safety for motorists or workers and the
quality of the facility;
``(ii) contains innovative
technologies, manufacturing processes,
financing, or contracting methods that
improve the quality of, extend the
service life of, or decrease the long-
term costs of maintaining highways and
bridges;
``(iii) accelerates project
delivery while complying with other
applicable Federal laws (including
regulations) and not causing any
significant adverse environmental
impact; or
``(iv) reduces congestion related
to highway construction.
``(B) Examples.--Projects, programs, and
activities described in subparagraph (A) may
include the use of--
``(i) prefabricated bridge elements
and systems and other technologies to
reduce bridge construction time;
``(ii) innovative construction
equipment, materials, or techniques,
including the use of in-place recycling
technology and digital 3-dimensional
modeling technologies;
``(iii) innovative contracting
methods, including the design-build and
the construction manager-general
contractor contracting methods;
``(iv) intelligent compaction
equipment; or
``(v) contractual provisions that
offer a contractor an incentive payment
for early completion of the project,
program, or activity, subject to the
condition that the incentives are
accounted for in the financial plan of
the project, when applicable.
``(C) Limitations.--
``(i) In general.--In each fiscal
year, a State may use the authority
under subparagraph (A) for up to 10
percent of the combined apportionments
of the State under paragraphs (1), (2),
and (5) of section 104(b).
``(ii) Federal share increase.--The
Federal share payable on account of a
project, program, or activity described
in subparagraph (A) may be increased by
up to 5 percent of the total project
cost.''.
SEC. 1305. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT DECISIONMAKING.
(a) Flexibility.--Section 139(b) of title 23, United States
Code, is amended--
(1) in paragraph (2) by inserting ``, and any
requirements established under this section may be
satisfied,'' after ``exercised''; and
(2) by adding at the end the following:
``(3) Programmatic compliance.--
``(A) In general.--The Secretary shall
initiate a rulemaking to allow for the use of
programmatic approaches to conduct
environmental reviews that--
``(i) eliminate repetitive
discussions of the same issues;
``(ii) focus on the actual issues
ripe for analyses at each level of
review; and
``(iii) are consistent with--
``(I) the National
Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.);
and
``(II) other applicable
laws.
``(B) Requirements.--In carrying out
subparagraph (A), the Secretary shall--
``(i) before initiating the
rulemaking under that subparagraph,
consult with relevant Federal agencies
and State resource agencies, State
departments of transportation, Indian
tribes, and the public on the
appropriate use and scope of the
programmatic approaches;
``(ii) emphasize the importance of
collaboration among relevant Federal
agencies, State agencies, and Indian
tribes in undertaking programmatic
reviews, especially with respect to
including reviews with a broad
geographic scope;
``(iii) ensure that the
programmatic reviews--
``(I) promote transparency,
including of the analyses and
data used in the environmental
reviews, the treatment of any
deferred issues raised by
agencies or the public, and the
temporal and special scales to
be used to analyze such issues;
``(II) use accurate and
timely information in reviews,
including--
``(aa) criteria for
determining the general
duration of the
usefulness of the
review; and
``(bb) the timeline
for updating any out-
of-date review;
``(III) describe--
``(aa) the
relationship between
programmatic analysis
and future tiered
analysis; and
``(bb) the role of
the public in the
creation of future
tiered analysis; and
``(IV) are available to
other relevant Federal and
State agencies, Indian tribes,
and the public;
``(iv) allow not fewer than 60 days
of public notice and comment on any
proposed rule; and
``(v) address any comments received
under clause (iv).''.
(b) Federal Lead Agency.--Section 139(c) of title 23,
United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``The Department of
Transportation'' and inserting the following:
``(A) In general.--The Department of
Transportation''; and
(B) by adding at the end the following:
``(B) Modal administration.--If the project
requires approval from more than 1 modal
administration within the Department, the
Secretary may designate a single modal
administration to serve as the Federal lead
agency for the Department in the environmental
review process for the project.''.
(c) Participating Agencies.--Section 139(d) of title 23,
United States Code, is amended--
(1) by striking paragraph (4) and inserting the
following:
``(4) Effect of designation.--
``(A) Requirement.--A participating agency
shall comply with the requirements of this
section.
``(B) Implication.--Designation as a
participating agency under this subsection
shall not imply that the participating agency--
``(i) supports a proposed project;
or
``(ii) has any jurisdiction over,
or special expertise with respect to
evaluation of, the project.''; and
(2) by striking paragraph (7) and inserting the
following:
``(7) Concurrent reviews.--Each participating
agency and cooperating agency shall--
``(A) carry out the obligations of that
agency under other applicable law concurrently,
and in conjunction, with the review required
under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), unless doing so
would impair the ability of the Federal agency
to conduct needed analysis or otherwise carry
out those obligations; and
``(B) formulate and implement
administrative, policy, and procedural
mechanisms to enable the agency to ensure
completion of the environmental review process
in a timely, coordinated, and environmentally
responsible manner.''.
(d) Project Initiation.--Section 139(e) of title 23, United
States Code, is amended--
(1) by striking ``The project sponsor'' and
inserting the following:
``(1) In general.--The project sponsor''; and
(2) by adding at the end the following:
``(2) Submission of documents.--The project sponsor
may satisfy the requirement under paragraph (1) by
submitting to the Secretary any relevant documents
containing the information described in that paragraph,
including a draft notice for publication in the Federal
Register announcing the preparation of an environmental
review for the project.''.
(e) Coordination and Scheduling.--Section 139(g)(1)(B)(i)
of title 23, United States Code, is amended by inserting ``and
the concurrence of'' after ``consultation with''.
SEC. 1306. ACCELERATED DECISIONMAKING.
Section 139(h) of title 23, United States Code, is amended
by striking paragraph (4) and inserting the following:
``(4) Interim decision on achieving accelerated
decisionmaking.--
``(A) In general.--Not later than 30 days
after the close of the public comment period on
a draft environmental impact statement, the
Secretary may convene a meeting with the
project sponsor, lead agency, resource
agencies, and any relevant State agencies to
ensure that all parties are on schedule to meet
deadlines for decisions to be made regarding
the project.
``(B) Deadlines.--The deadlines referred to
in subparagraph (A) shall be those established
under subsection (g), or any other deadlines
established by the lead agency, in consultation
with the project sponsor and other relevant
agencies.
``(C) Failure to assure.--If the relevant
agencies cannot provide reasonable assurances
that the deadlines described in subparagraph
(B) will be met, the Secretary may initiate the
issue resolution and referral process described
under paragraph (5) and before the completion
of the record of decision.
``(5) Accelerated issue resolution and referral.--
``(A) Agency issue resolution meeting.--
``(i) In general.--A Federal agency
of jurisdiction, project sponsor, or
the Governor of a State in which a
project is located may request an issue
resolution meeting to be conducted by
the lead agency.
``(ii) Action by lead agency.--The
lead agency shall convene an issue
resolution meeting under clause (i)
with the relevant participating
agencies and the project sponsor,
including the Governor only if the
meeting was requested by the Governor,
to resolve issues that could--
``(I) delay completion of
the environmental review
process; or
``(II) result in denial of
any approvals required for the
project under applicable laws.
``(iii) Date.--A meeting requested
under this subparagraph shall be held
by not later than 21 days after the
date of receipt of the request for the
meeting, unless the lead agency
determines that there is good cause to
extend the time for the meeting.
``(iv) Notification.--On receipt of
a request for a meeting under this
subparagraph, the lead agency shall
notify all relevant participating
agencies of the request, including the
issue to be resolved, and the date for
the meeting.
``(v) Disputes.--If a relevant
participating agency with jurisdiction
over an approval required for a project
under applicable law determines that
the relevant information necessary to
resolve the issue has not been obtained
and could not have been obtained within
a reasonable time, but the lead agency
disagrees, the resolution of the
dispute shall be forwarded to the heads
of the relevant agencies for
resolution.
``(vi) Convention by lead agency.--
A lead agency may convene an issue
resolution meeting under this
subsection at any time without the
request of the Federal agency of
jurisdiction, project sponsor, or the
Governor of a State.
``(B) Elevation of issue resolution.--
``(i) In general.--If issue
resolution is not achieved by not later
than 30 days after the date of a
relevant meeting under subparagraph
(A), the Secretary shall notify the
lead agency, the heads of the relevant
participating agencies, and the project
sponsor (including the Governor only if
the initial issue resolution meeting
request came from the Governor) that an
issue resolution meeting will be
convened.
``(ii) Requirements.--The Secretary
shall identify the issues to be
addressed at the meeting and convene
the meeting not later than 30 days
after the date of issuance of the
notice.
``(C) Referral of issue resolution.--
``(i) Referral to council on
environmental quality.--
``(I) In general.--If
resolution is not achieved by
not later than 30 days after
the date of an issue resolution
meeting under subparagraph (B),
the Secretary shall refer the
matter to the Council on
Environmental Quality.
``(II) Meeting.--Not later
than 30 days after the date of
receipt of a referral from the
Secretary under subclause (I),
the Council on Environmental
Quality shall hold an issue
resolution meeting with the
lead agency, the heads of
relevant participating
agencies, and the project
sponsor (including the Governor
only if an initial request for
an issue resolution meeting
came from the Governor).
``(ii) Referral to the president.--
If a resolution is not achieved by not
later than 30 days after the date of
the meeting convened by the Council on
Environmental Quality under clause
(i)(II), the Secretary shall refer the
matter directly to the President.
``(6) Financial penalty provisions.--
``(A) In general.--A Federal agency of
jurisdiction over an approval required for a
project under applicable laws shall complete
any required approval on an expeditious basis
using the shortest existing applicable process.
``(B) Failure to decide.--
``(i) In general.--If an agency
described in subparagraph (A) fails to
render a decision under any Federal law
relating to a project that requires the
preparation of an environmental impact
statement or environmental assessment,
including the issuance or denial of a
permit, license, or other approval by
the date described in clause (ii), an
amount of funding equal to the amounts
specified in subclause (I) or (II)
shall be rescinded from the applicable
office of the head of the agency, or
equivalent office to which the
authority for rendering the decision
has been delegated by law by not later
than 1 day after the applicable date
under clause (ii), and once each week
thereafter until a final decision is
rendered, subject to subparagraph (C)--
``(I) $20,000 for any
project for which an annual
financial plan under section
106(i) is required; or
``(II) $10,000 for any
other project requiring
preparation of an environmental
assessment or environmental
impact statement.
``(ii) Description of date.--The
date referred to in clause (i) is the
later of--
``(I) the date that is 180
days after the date on which an
application for the permit,
license, or approval is
complete; and
``(II) the date that is 180
days after the date on which
the Federal lead agency issues
a decision on the project under
the National Environmental
Policy Act of 1969 (42 U.S.C.
4321 et seq.).
``(C) Limitations.--
``(i) In general.--No rescission of
funds under subparagraph (B) relating
to an individual project shall exceed,
in any fiscal year, an amount equal to
2.5 percent of the funds made available
for the applicable agency office.
``(ii) Failure to decide.--The
total amount rescinded in a fiscal year
as a result of a failure by an agency
to make a decision by an applicable
deadline shall not exceed an amount
equal to 7 percent of the funds made
available for the applicable agency
office for that fiscal year.
``(D) No fault of agency.--A rescission of
funds under this paragraph shall not be made if
the lead agency for the project certifies
that--
``(i) the agency has not received
necessary information or approvals from
another entity, such as the project
sponsor, in a manner that affects the
ability of the agency to meet any
requirements under State, local, or
Federal law; or
``(ii) significant new information
or circumstances, including a major
modification to an aspect of the
project, requires additional analysis
for the agency to make a decision on
the project application.
``(E) Limitation.--The Federal agency with
jurisdiction for the decision from which funds
are rescinded pursuant to this paragraph shall
not reprogram funds to the office of the head
of the agency, or equivalent office, to
reimburse that office for the loss of the
funds.
``(F) Audits.--In any fiscal year in which
any funds are rescinded from a Federal agency
pursuant to this paragraph, the Inspector
General of that agency shall--
``(i) conduct an audit to assess
compliance with the requirements of
this paragraph; and
``(ii) not later than 120 days
after the end of the fiscal year during
which the rescission occurred, submit
to the Committee on Environment and
Public Works of the Senate and the
Committee on Transportation and
Infrastructure of the House of
Representatives a report describing the
reasons why the transfers were levied,
including allocations of resources.
``(G) Effect of paragraph.--Nothing in this
paragraph affects or limits the application of,
or obligation to comply with, any Federal,
State, local, or tribal law.
``(7) Expedient decisions and reviews.--To ensure
that Federal environmental decisions and reviews are
expeditiously made--
``(A) adequate resources made available
under this title shall be devoted to ensuring
that applicable environmental reviews under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) are completed on an
expeditious basis and that the shortest
existing applicable process under that Act is
implemented; and
``(B) the President shall submit to the
Committee on Transportation and Infrastructure
of the House of Representatives and the
Committee on Environment and Public Works of
the Senate, not less frequently than once every
120 days after the date of enactment of the
MAP-21, a report on the status and progress of
the following projects and activities funded
under this title with respect to compliance
with applicable requirements under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.):
``(i) Projects and activities
required to prepare an annual financial
plan under section 106(i).
``(ii) A sample of not less than 5
percent of the projects requiring
preparation of an environmental impact
statement or environmental assessment
in each State.''.
SEC. 1307. ASSISTANCE TO AFFECTED FEDERAL AND STATE AGENCIES.
Section 139(j) of title 23, United States Code, is amended
by adding at the end the following:
``(6) Memorandum of understanding.--Prior to
providing funds approved by the Secretary for dedicated
staffing at an affected Federal agency under paragraphs
(1) and (2), the affected Federal agency and the State
agency shall enter into a memorandum of understanding
that establishes the projects and priorities to be
addressed by the use of the funds.''.
SEC. 1308. LIMITATIONS ON CLAIMS.
Section 139(l) of title 23, United States Code, is
amended--
(1) in paragraph (1) by striking ``180 days'' and
inserting ``150 days''; and
(2) in paragraph (2) by striking ``180 days'' and
inserting ``150 days''.
SEC. 1309. ACCELERATING COMPLETION OF COMPLEX PROJECTS WITHIN 4 YEARS.
Section 139 of title 23, United States Code, is amended by
adding at the end the following:
``(m) Enhanced Technical Assistance and Accelerated Project
Completion.--
``(1) Definition of covered project.--In this
subsection, the term `covered project' means a
project--
``(A) that has an ongoing environmental
impact statement under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.); and
``(B) for which at least 2 years, beginning
on the date on which a notice of intent is
issued, have elapsed without the issuance of a
record of decision.
``(2) Technical assistance.--At the request of a
project sponsor or the Governor of a State in which a
project is located, the Secretary shall provide
additional technical assistance to resolve for a
covered project any outstanding issues and project
delay, including by--
``(A) providing additional staff, training,
and expertise;
``(B) facilitating interagency
coordination;
``(C) promoting more efficient
collaboration; and
``(D) supplying specialized onsite
assistance.
``(3) Scope of work.--
``(A) In general.--In providing technical
assistance for a covered project under this
subsection, the Secretary shall establish a
scope of work that describes the actions that
the Secretary will take to resolve the
outstanding issues and project delays,
including establishing a schedule under
subparagraph (B).
``(B) Schedule.--
``(i) In general.--The Secretary
shall establish and meet a schedule for
the completion of any permit, approval,
review, or study, required for the
covered project by the date that is not
later than 4 years after the date on
which a notice of intent for the
covered project is issued.
``(ii) Inclusions.--The schedule
under clause (i) shall--
``(I) comply with all
applicable laws;
``(II) require the
concurrence of the Council on
Environmental Quality and each
participating agency for the
project with the State in which
the project is located or the
project sponsor, as applicable;
and
``(III) reflect any new
information that becomes
available and any changes in
circumstances that may result
in new significant impacts that
could affect the timeline for
completion of any permit,
approval, review, or study
required for the covered
project.
``(4) Consultation.--In providing technical
assistance for a covered project under this subsection,
the Secretary shall consult, if appropriate, with
resource and participating agencies on all methods
available to resolve the outstanding issues and project
delays for a covered project as expeditiously as
possible.
``(5) Enforcement.--
``(A) In general.--All provisions of this
section shall apply to this subsection,
including the financial penalty provisions
under subsection (h)(6).
``(B) Restriction.--If the Secretary
enforces this subsection under subsection
(h)(6), the Secretary may use a date included
in a schedule under paragraph (3)(B) that is
created pursuant to and is in compliance with
this subsection in lieu of the dates under
subsection (h)(6)(B)(ii).''.
SEC. 1310. INTEGRATION OF PLANNING AND ENVIRONMENTAL REVIEW.
(a) In General.--Chapter 1 of title 23, United States Code
(as amended by section 1115(a)), is amended by adding at the
end the following:
``Sec. 168. Integration of planning and environmental review
``(a) Definitions.--In this section, the following
definitions apply:
``(1) Environmental review process.--The term
`environmental review process' means the process for
preparing for a project an environmental impact
statement, environmental assessment, categorical
exclusion, or other document prepared under the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
``(2) Planning product.--The term `planning
product' means a detailed and timely decision,
analysis, study, or other documented information that--
``(A) is the result of an evaluation or
decisionmaking process carried out during
transportation planning, including a detailed
corridor plan or a transportation plan
developed under section 134 that fully analyzes
impacts on mobility, adjacent communities, and
the environment;
``(B) is intended to be carried into the
transportation project development process; and
``(C) has been approved by the State, all
local and tribal governments where the project
is located, and by any relevant metropolitan
planning organization.
``(3) Project.--The term `project' has the meaning
given the term in section 139(a).
``(4) Project sponsor.--The term `project sponsor'
has the meaning given the term in section 139(a).
``(b) Adoption of Planning Products for Use in NEPA
Proceedings.--
``(1) In general.--Subject to the conditions set
forth in subsection (d), the Federal lead agency for a
project may adopt and use a planning product in
proceedings relating to any class of action in the
environmental review process of the project.
``(2) Identification.--When the Federal lead agency
makes a determination to adopt and use a planning
product, the Federal lead agency shall identify those
agencies that participated in the development of the
planning products.
``(3) Partial adoption of planning products.--The
Federal lead agency may adopt a planning product under
paragraph (1) in its entirety or may select portions
for adoption.
``(4) Timing.--A determination under paragraph (1)
with respect to the adoption of a planning product may
be made at the time the lead agencies decide the
appropriate scope of environmental review for the
project but may also occur later in the environmental
review process, as appropriate.
``(c) Applicability.--
``(1) Planning decisions.--Planning decisions that
may be adopted pursuant to this section include--
``(A) whether tolling, private financial
assistance, or other special financial measures
are necessary to implement the project;
``(B) a decision with respect to modal
choice, including a decision to implement
corridor or subarea study recommendations to
advance different modal solutions as separate
projects with independent utility;
``(C) a basic description of the
environmental setting;
``(D) a decision with respect to
methodologies for analysis; and
``(E) an identification of programmatic
level mitigation for potential impacts that the
Federal lead agency, in consultation with
Federal, State, local, and tribal resource
agencies, determines are most effectively
addressed at a regional or national program
level, including--
``(i) system-level measures to
avoid, minimize, or mitigate impacts of
proposed transportation investments on
environmental resources, including
regional ecosystem and water resources;
and
``(ii) potential mitigation
activities, locations, and investments.
``(2) Planning analyses.--Planning analyses that
may be adopted pursuant to this section include studies
with respect to--
``(A) travel demands;
``(B) regional development and growth;
``(C) local land use, growth management,
and development;
``(D) population and employment;
``(E) natural and built environmental
conditions;
``(F) environmental resources and
environmentally sensitive areas;
``(G) potential environmental effects,
including the identification of resources of
concern and potential cumulative effects on
those resources, identified as a result of a
statewide or regional cumulative effects
assessment; and
``(H) mitigation needs for a proposed
action, or for programmatic level mitigation,
for potential effects that the Federal lead
agency determines are most effectively
addressed at a regional or national program
level.
``(d) Conditions.--Adoption and use of a planning product
under this section is subject to a determination by the Federal
lead agency, with the concurrence of other participating
agencies with relevant expertise and project sponsors as
appropriate, and with an opportunity for public notice and
comment and consideration of those comments by the Federal lead
agency, that the following conditions have been met:
``(1) The planning product was developed through a
planning process conducted pursuant to applicable
Federal law.
``(2) The planning product was developed by
engaging in active consultation with appropriate
Federal and State resource agencies and Indian tribes.
``(3) The planning process included broad
multidisciplinary consideration of systems-level or
corridor-wide transportation needs and potential
effects, including effects on the human and natural
environment.
``(4) During the planning process, notice was
provided through publication or other means to Federal,
State, local, and tribal governments that might have an
interest in the proposed project, and to members of the
general public, of the planning products that the
planning process might produce and that might be relied
on during any subsequent environmental review process,
and such entities have been provided an appropriate
opportunity to participate in the planning process
leading to such planning product.
``(5) After initiation of the environmental review
process, but prior to determining whether to rely on
and use the planning product, the lead Federal agency
has made documentation relating to the planning product
available to Federal, State, local, and tribal
governments that may have an interest in the proposed
action, and to members of the general public, and has
considered any resulting comments.
``(6) There is no significant new information or
new circumstance that has a reasonable likelihood of
affecting the continued validity or appropriateness of
the planning product.
``(7) The planning product has a rational basis and
is based on reliable and reasonably current data and
reasonable and scientifically acceptable methodologies.
``(8) The planning product is documented in
sufficient detail to support the decision or the
results of the analysis and to meet requirements for
use of the information in the environmental review
process.
``(9) The planning product is appropriate for
adoption and use in the environmental review process
for the project.
``(10) The planning product was approved not later
than 5 years prior to date on which the information is
adopted pursuant to this section.
``(e) Effect of Adoption.--Any planning product adopted by
the Federal lead agency in accordance with this section may be
incorporated directly into an environmental review process
document or other environmental document and may be relied upon
and used by other Federal agencies in carrying out reviews of
the project.
``(f) Rules of Construction.--
``(1) In general.--This section shall not be
construed to make the environmental review process
applicable to the transportation planning process
conducted under this title and chapter 53 of title 49.
``(2) Transportation planning activities.--
Initiation of the environmental review process as a
part of, or concurrently with, transportation planning
activities does not subject transportation plans and
programs to the environmental review process.
``(3) Planning products.--This section shall not be
construed to affect the use of planning products in the
environmental review process pursuant to other
authorities under any other provision of law or to
restrict the initiation of the environmental review
process during planning.''.
(b) Technical and Conforming Amendment.--The analysis for
chapter 1 of title 23, United States Code (as amended by
section 1115(b)), is amended by adding at end the following:
``Sec. 168. Integration of planning and environmental review.''.
SEC. 1311. DEVELOPMENT OF PROGRAMMATIC MITIGATION PLANS.
(a) In General.--Chapter 1 of title 23, United States Code
(as amended by section 1310(a)), is amended by adding at the
end the following:
``Sec. 169. Development of programmatic mitigation plans
``(a) In General.--As part of the statewide or metropolitan
transportation planning process, a State or metropolitan
planning organization may develop 1 or more programmatic
mitigation plans to address the potential environmental impacts
of future transportation projects.
``(b) Scope.--
``(1) Scale.--A programmatic mitigation plan may be
developed on a regional, ecosystem, watershed, or
statewide scale.
``(2) Resources.--The plan may encompass multiple
environmental resources within a defined geographic
area or may focus on a specific resource, such as
aquatic resources, parkland, or wildlife habitat.
``(3) Project impacts.--The plan may address
impacts from all projects in a defined geographic area
or may focus on a specific type of project.
``(4) Consultation.--The scope of the plan shall be
determined by the State or metropolitan planning
organization, as appropriate, in consultation with the
agency or agencies with jurisdiction over the resources
being addressed in the mitigation plan.
``(c) Contents.--A programmatic mitigation plan may
include--
``(1) an assessment of the condition of
environmental resources in the geographic area covered
by the plan, including an assessment of recent trends
and any potential threats to those resources;
``(2) an assessment of potential opportunities to
improve the overall quality of environmental resources
in the geographic area covered by the plan, through
strategic mitigation for impacts of transportation
projects;
``(3) standard measures for mitigating certain
types of impacts;
``(4) parameters for determining appropriate
mitigation for certain types of impacts, such as
mitigation ratios or criteria for determining
appropriate mitigation sites;
``(5) adaptive management procedures, such as
protocols that involve monitoring predicted impacts
over time and adjusting mitigation measures in response
to information gathered through the monitoring; and
``(6) acknowledgment of specific statutory or
regulatory requirements that must be satisfied when
determining appropriate mitigation for certain types of
resources.
``(d) Process.--Before adopting a programmatic mitigation
plan, a State or metropolitan planning organization shall--
``(1) consult with each agency with jurisdiction
over the environmental resources considered in the
programmatic mitigation plan;
``(2) make a draft of the plan available for review
and comment by applicable environmental resource
agencies and the public;
``(3) consider any comments received from such
agencies and the public on the draft plan; and
``(4) address such comments in the final plan.
``(e) Integration With Other Plans.--A programmatic
mitigation plan may be integrated with other plans, including
watershed plans, ecosystem plans, species recovery plans,
growth management plans, and land use plans.
``(f) Consideration in Project Development and
Permitting.--If a programmatic mitigation plan has been
developed pursuant to this section, any Federal agency
responsible for environmental reviews, permits, or approvals
for a transportation project may use the recommendations in a
programmatic mitigation plan when carrying out the
responsibilities under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
``(g) Preservation of Existing Authorities.--Nothing in
this section limits the use of programmatic approaches to
reviews under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).''.
(b) Technical and Conforming Amendment.--The analysis for
chapter 1 of title 23, United States Code (as amended by
section 1309(b)), is amended by adding at the end the
following:
``Sec. 169. Development of programmatic mitigation plans.''.
SEC. 1312. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL
EXCLUSIONS.
Section 326 of title 23, United States Code, is amended--
(1) in subsection (a) by adding at the end the
following:
``(4) Preservation of flexibility.--The Secretary
shall not require a State, as a condition of assuming
responsibility under this section, to forego project
delivery methods that are otherwise permissible for
highway projects.'';
(2) by striking subsection (d) and inserting the
following:
``(d) Termination.--
``(1) Termination by the secretary.--The Secretary
may terminate any assumption of responsibility under a
memorandum of understanding on a determination that the
State is not adequately carrying out the
responsibilities assigned to the State.
``(2) Termination by the state.--The State may
terminate the participation of the State in the program
at any time by providing to the Secretary a notice not
later than the date that is 90 days before the date of
termination, and subject to such terms and conditions
as the Secretary may provide.''; and
(3) by adding at the end the following:
``(f) Legal Fees.--A State assuming the responsibilities of
the Secretary under this section for a specific project may use
funds apportioned to the State under section 104(b)(2) for
attorney's fees directly attributable to eligible activities
associated with the project.''.
SEC. 1313. SURFACE TRANSPORTATION PROJECT DELIVERY PROGRAM.
(a) Program Name.--Section 327 of title 23, United States
Code, is amended--
(1) in the section heading by striking ``pilot'';
and
(2) in subsection (a)(1) by striking ``pilot''.
(b) Assumption of Responsibility.--Section 327(a)(2) of
title 23, United States Code, is amended--
(1) in subparagraph (B)--
(A) in clause (i) by striking ``but''; and
(B) by striking clause (ii) and inserting
the following:
``(ii) at the request of the State,
the Secretary may also assign to the
State, and the State may assume, the
responsibilities of the Secretary with
respect to 1 or more railroad, public
transportation, or multimodal projects
within the State under the National
Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
``(iii) in a State that has assumed
the responsibilities of the Secretary
under clause (ii), a recipient of
assistance under chapter 53 of title 49
may request that the Secretary maintain
the responsibilities of the Secretary
with respect to 1 or more public
transportation projects within the
State under the National Environmental
Policy Act of 1969 (42 U.S.C. 13 4321
et seq.); but
``(iv) the Secretary may not
assign--
``(I) any responsibility
imposed on the Secretary by
section 134 or 135 or section
5303 or 5304 of title 49; or
``(II) responsibility for
any conformity determination
required under section 176 of
the Clean Air Act (42 U.S.C.
7506).''; and
(2) by adding at the end the following:
``(F) Preservation of flexibility.--The
Secretary may not require a State, as a
condition of participation in the program, to
forego project delivery methods that are
otherwise permissible for projects.
``(G) Legal fees.--A State assuming the
responsibilities of the Secretary under this
section for a specific project may use funds
apportioned to the State under section
104(b)(2) for attorneys' fees directly
attributable to eligible activities associated
with the project.''.
(c) State Participation.--Section 327(b) of title 23,
United States Code, is amended--
(1) by striking paragraph (1) and inserting the
following:
``(1) Participating states.--All States are
eligible to participate in the program.''; and
(2) in paragraph (2) by striking ``date of
enactment of this section, the Secretary shall
promulgate'' and inserting ``date on which amendments
to this section by the MAP-21 take effect, the
Secretary shall amend, as appropriate,''.
(d) Written Agreement.--Section 327(c) of title 23, United
States Code, is amended--
(1) in paragraph (3)(D) by striking the period at
the end and inserting a semicolon; and
(2) by adding at the end the following:
``(4) require the State to provide to the Secretary
any information the Secretary considers necessary to
ensure that the State is adequately carrying out the
responsibilities assigned to the State;
``(5) have a term of not more than 5 years; and
``(6) be renewable.''.
(e) Conforming Amendment.--Section 327(e) of title 23,
United States Code, is amended by striking ``subsection (i)''
and inserting ``subsection (j)''.
(f) Audits.--Section 327(g)(1)(B) of title 23, United
States Code, is amended by striking ``subsequent year'' and
inserting ``of the third and fourth years''.
(g) Monitoring.--Section 327 of title 23, United States
Code, is amended--
(1) by redesignating subsections (h) and (i) as
subsections (i) and (j), respectively; and
(2) by inserting after subsection (g) the
following:
``(h) Monitoring.--After the fourth year of the
participation of a State in the program, the Secretary shall
monitor compliance by the State with the written agreement,
including the provision by the State of financial resources to
carry out the written agreement.''.
(h) Termination.--Section 327(j) of title 23, United States
Code (as so redesignated), is amended to read as follows:
``(j) Termination.--
``(1) Termination by the secretary.--The Secretary
may terminate the participation of any State in the
program if--
``(A) the Secretary determines that the
State is not adequately carrying out the
responsibilities assigned to the State;
``(B) the Secretary provides to the State--
``(i) notification of the
determination of noncompliance; and
``(ii) a period of at least 30 days
during which to take such corrective
action as the Secretary determines is
necessary to comply with the applicable
agreement; and
``(C) the State, after the notification and
period provided under subparagraph (B), fails
to take satisfactory corrective action, as
determined by the Secretary.
``(2) Termination by the state.--The State may
terminate the participation of the State in the program
at any time by providing to the Secretary a notice by
not later than the date that is 90 days before the date
of termination, and subject to such terms and
conditions as the Secretary may provide.''.
(i) Clerical Amendment.--The item relating to section 327
in the analysis of title 23, United States Code, is amended to
read as follows:
``327. Surface transportation project delivery program.''.
SEC. 1314. APPLICATION OF CATEGORICAL EXCLUSIONS FOR MULTIMODAL
PROJECTS.
(a) In General.--Section 304 of title 49, United States
Code, is amended to read as follows:
``Sec. 304. Application of categorical exclusions for multimodal
projects
``(a) Definitions.--In this section, the following
definitions apply:
``(1) Cooperating authority.--The term `cooperating
authority' means a Department of Transportation
operating authority that is not the lead authority with
respect to a project.
``(2) Lead authority.--The term `lead authority'
means a Department of Transportation operating
administration or secretarial office that--
``(A) is the lead authority over a proposed
multimodal project; and
``(B) has determined that the components of
the project that fall under the modal expertise
of the lead authority--
``(i) satisfy the conditions for a
categorical exclusion under
implementing regulations or procedures
of the lead authority under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.); and
``(ii) do not require the
preparation of an environmental
assessment or environmental impact
statement under that Act.
``(3) Multimodal project.--The term `multimodal
project' has the meaning given the term in section
139(a) of title 23.
``(b) Exercise of Authorities.--The authorities granted in
this section may be exercised for a multimodal project, class
of projects, or program of projects that are carried out under
this title.
``(c) Application of Categorical Exclusions for Multimodal
Projects.--In considering the environmental impacts of a
proposed multimodal project, a lead authority may apply a
categorical exclusion designated under the implementing
regulations or procedures of a cooperating authority for other
components of the project, subject to the conditions that--
``(1) the multimodal project is funded under 1
grant agreement administered by the lead authority;
``(2) the multimodal project has components that
require the expertise of a cooperating authority to
assess the environmental impacts of the components;
``(3) the component of the project to be covered by
the categorical exclusion of the cooperating authority
has independent utility;
``(4) the cooperating authority, in consultation
with the lead authority--
``(A) follows implementing regulations or
procedures under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.);
and
``(B) determines that a categorical
exclusion under that Act applies to the
components; and
``(5) the lead authority has determined that--
``(A) the project, using the categorical
exclusions of the lead authority and each
applicable cooperating authority, does not
individually or cumulatively have a significant
impact on the environment; and
``(B) extraordinary circumstances do not
exist that merit additional analysis and
documentation in an environmental impact
statement or environmental assessment required
under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
``(d) Modal Cooperation.--
``(1) In general.--A cooperating authority shall
provide modal expertise to the lead authority on such
aspects of the multimodal project in which the
cooperating authority has expertise.
``(2) Use of categorical exclusion.--In a case
described in paragraph (1), the 1 or more categorical
exclusions of a cooperating authority may be applied by
the lead authority once the cooperating authority
reviews the project on behalf of the lead authority and
determines the project satisfies the conditions for a
categorical exclusion under the implementing
regulations or procedures of the cooperating authority
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) and this section.''.
(b) Conforming Amendment.--The item relating to section 304
in the analysis for title 49, United States Code, is amended to
read as follows:
``304. Application of categorical exclusions for multimodal projects''.
SEC. 1315. CATEGORICAL EXCLUSIONS IN EMERGENCIES.
(a) In General.--Not later than 30 days after the date of
enactment of this Act, for the repair or reconstruction of any
road, highway, or bridge that is in operation or under
construction when damaged by an emergency declared by the
Governor of the State and concurred in by the Secretary, or for
a disaster or emergency declared by the President pursuant to
the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5121 et seq.), the Secretary shall publish a
notice of proposed rulemaking to treat any such repair or
reconstruction activity as a class of action categorically
excluded from the requirements relating to environmental
assessments or environmental impact statements under section
1508.4 of title 40, Code of Federal Regulations, and section
771.117 of title 23, Code of Federal Regulations (as in effect
on the date of enactment of this Act) if such repair or
reconstruction activity is--
(1) in the same location with the same capacity,
dimensions, and design as the original road, highway,
or bridge as before the declaration described in this
section; and
(2) commenced within a 2-year period beginning on
the date of a declaration described in this section.
(b) Rulemaking.--
(1) In general.--The Secretary shall ensure that
the rulemaking helps to conserve Federal resources and
protects public safety and health by providing for
periodic evaluations to determine if reasonable
alternatives exist to roads, highways, or bridges that
repeatedly require repair and reconstruction
activities.
(2) Reasonable alternatives.--The reasonable
alternatives described in paragraph (1) include actions
that could reduce the need for Federal funds to be
expended on such repair and reconstruction activities,
better protect public safety and health and the
environment, and meet transportation needs as described
in relevant and applicable Federal, State, local and
tribal plans.
SEC. 1316. CATEGORICAL EXCLUSIONS FOR PROJECTS WITHIN THE RIGHT-OF-WAY.
(a) In General.--The Secretary shall--
(1) not later than 180 days after the date of
enactment of this Act, designate any project (as
defined in section 101(a) of title 23, United States
Code) within an existing operational right-of-way as an
action categorically excluded from the requirements
relating to environmental assessments or environmental
impact statements under section 1508.4 of title 40,
Code of Federal Regulations, and section 771.117(c) of
title 23, Code of Federal Regulations; and
(2) not later than 150 days after the date of
enactment of this Act, promulgate regulations to carry
out paragraph (1).
(b) Definition of an Operational Right-of-way.--In this
section, the term ``operational right-of-way'' means all real
property interests acquired for the construction, operation, or
mitigation of a project (as defined in section 101(a) of title
23, United States Code), including the locations of the
roadway, bridges, interchanges, culverts, drainage, clear zone,
traffic control signage, landscaping, and any rest areas with
direct access to a controlled access highway.
SEC. 1317. CATEGORICAL EXCLUSION FOR PROJECTS OF LIMITED FEDERAL
ASSISTANCE.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall--
(1) designate as an action categorically excluded
from the requirements relating to environmental
assessments or environmental impact statements under
section 1508.4 of title 40, Code of Federal
Regulations, and section 771.117(c) of title 23, Code
of Federal Regulations, any project--
(A) that receives less than $5,000,000 of
Federal funds; or
(B) with a total estimated cost of not more
than $30,000,000 and Federal funds comprising
less than 15 percent of the total estimated
project cost; and
(2) not later than 150 days after the date of
enactment of this Act, promulgate regulations to carry
out paragraph (1).
SEC. 1318. PROGRAMMATIC AGREEMENTS AND ADDITIONAL CATEGORICAL
EXCLUSIONS.
(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall--
(1) survey the use by the Department of categorical
exclusions in transportation projects since 2005;
(2) publish a review of the survey that includes a
description of--
(A) the types of actions categorically
excluded; and
(B) any requests previously received by the
Secretary for new categorical exclusions; and
(3) solicit requests from State departments of
transportation, transit authorities, metropolitan
planning organizations, or other government agencies
for new categorical exclusions.
(b) New Categorical Exclusions.--Not later than 120 days
after the date of enactment of this Act, the Secretary shall
publish a notice of proposed rulemaking to propose new
categorical exclusions received by the Secretary under
subsection (a), to the extent that the categorical exclusions
meet the criteria for a categorical exclusion under section
1508.4 of title 40, Code of Federal Regulations, and section
771.117(a) of title 23, Code of Federal Regulations (as those
regulations are in effect on the date of the notice).
(c) Additional Actions.--The Secretary shall issue a
proposed rulemaking to move the following types of actions from
subsection (d) of section 771.117 of title 23, Code of Federal
Regulations (as in effect on the date of enactment of this
Act), to subsection (c) of that section, to the extent that
such movement complies with the criteria for a categorical
exclusion under section 1508.4 of title 40, Code of Federal
Regulations (as in effect on the date of enactment of this
Act):
(1) Modernization of a highway by resurfacing,
restoration, rehabilitation, reconstruction, adding
shoulders, or adding auxiliary lanes (including
parking, weaving, turning, and climbing).
(2) Highway safety or traffic operations
improvement projects, including the installation of
ramp metering control devices and lighting.
(3) Bridge rehabilitation, reconstruction, or
replacement or the construction of grade separation to
replace existing at-grade railroad crossings.
(d) Programmatic Agreements.--
(1) In general.--The Secretary shall seek
opportunities to enter into programmatic agreements
with the States that establish efficient administrative
procedures for carrying out environmental and other
required project reviews.
(2) Inclusions.--Programmatic agreements authorized
under paragraph (1) may include agreements that allow a
State to determine on behalf of the Federal Highway
Administration whether a project is categorically
excluded from the preparation of an environmental
assessment or environmental impact statement under the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
(3) Determinations.--An agreement described in
paragraph (2) may include determinations by the
Secretary of the types of projects categorically
excluded (consistent with section 1508.4 of title 40,
Code of Federal Regulations) in the State in addition
to the types listed in subsections (c) and (d) of
section 771.117 of title 23, Code of Federal
Regulations (as in effect on the date of enactment of
this Act).
SEC. 1319. ACCELERATED DECISIONMAKING IN ENVIRONMENTAL REVIEWS.
(a) In General.--In preparing a final environmental impact
statement under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), if the lead agency modifies the
statement in response to comments that are minor and are
confined to factual corrections or explanations of why the
comments do not warrant additional agency response, the lead
agency may write on errata sheets attached to the statement
instead of rewriting the draft statement, subject to the
condition that the errata sheets--
(1) cite the sources, authorities, or reasons that
support the position of the agency; and
(2) if appropriate, indicate the circumstances that
would trigger agency reappraisal or further response.
(b) Incorporation.--To the maximum extent practicable, the
lead agency shall expeditiously develop a single document that
consists of a final environmental impact statement and a record
of decision, unless--
(1) the final environmental impact statement makes
substantial changes to the proposed action that are
relevant to environmental or safety concerns; or
(2) there are significant new circumstances or
information relevant to environmental concerns and that
bear on the proposed action or the impacts of the
proposed action.
SEC. 1320. MEMORANDA OF AGENCY AGREEMENTS FOR EARLY COORDINATION.
(a) In General.--It is the sense of Congress that--
(1) the Secretary and other Federal agencies with
relevant jurisdiction in the environmental review
process should cooperate with each other and other
agencies on environmental review and project delivery
activities at the earliest practicable time to avoid
delays and duplication of effort later in the process,
head off potential conflicts, and ensure that planning
and project development decisions reflect environmental
values; and
(2) such cooperation should include the development
of policies and the designation of staff that advise
planning agencies or project sponsors of studies or
other information foreseeably required for later
Federal action and early consultation with appropriate
State and local agencies and Indian tribes.
(b) Technical Assistance.--If requested at any time by a
State or local planning agency, the Secretary and other Federal
agencies with relevant jurisdiction in the environmental review
process, shall, to the extent practicable and appropriate, as
determined by the agencies, provide technical assistance to the
State or local planning agency on accomplishing the early
coordination activities described in subsection (d).
(c) Memorandum of Agency Agreement.--If requested at any
time by a State or local planning agency, the lead agency, in
consultation with other Federal agencies with relevant
jurisdiction in the environmental review process, may establish
memoranda of agreement with the project sponsor, State, and
local governments and other appropriate entities to accomplish
the early coordination activities described in subsection (d).
(d) Early Coordination Activities.--Early coordination
activities shall include, to the maximum extent practicable,
the following:
(1) Technical assistance on identifying potential
impacts and mitigation issues in an integrated fashion.
(2) The potential appropriateness of using planning
products and decisions in later environmental reviews.
(3) The identification and elimination from
detailed study in the environmental review process of
the issues that are not significant or that have been
covered by prior environmental reviews.
(4) The identification of other environmental
review and consultation requirements so that the lead
and cooperating agencies may prepare, as appropriate,
other required analyses and studies concurrently with
planning activities.
(5) The identification by agencies with
jurisdiction over any permits related to the project of
any and all relevant information that will reasonably
be required for the project.
(6) The reduction of duplication between
requirements under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) and State and
local planning and environmental review requirements,
unless the agencies are specifically barred from doing
so by applicable law.
(7) Timelines for the completion of agency actions
during the planning and environmental review processes.
(8) Other appropriate factors.
SEC. 1321. ENVIRONMENTAL PROCEDURES INITIATIVE.
(a) Establishment.--For grant programs under which funds
are distributed by formula by the Department, the Secretary
shall establish an initiative to review and develop consistent
procedures for environmental permitting and procurement
requirements that apply to a project carried out under title
23, United States Code, or chapter 53 of title 49, United
States Code.
(b) Report.--The Secretary shall publish the results of the
initiative described in subsection (a) in an electronically
accessible format.
SEC. 1322. REVIEW OF STATE ENVIRONMENTAL REVIEWS AND APPROVALS FOR THE
PURPOSE OF ELIMINATING DUPLICATION OF ENVIRONMENTAL
REVIEWS.
For environmental reviews and approvals carried out on
projects funded under title 23, United States Code, the
Comptroller General of the United States shall--
(1) review State laws and procedures for conducting
environmental reviews with regard to such projects and
identify the States that have environmental laws that
provide environmental protections and opportunities for
public involvement that are equivalent to those
provided by Federal environmental laws;
(2) determine the frequency and cost of
environmental reviews carried out at the Federal level
that are duplicative of State reviews that provide
equivalent environmental protections and opportunities
for public involvement; and
(3) not later than 2 years after the date of
enactment of this Act, submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and
Public Works of the Senate a report that describes the
results of the review and determination made under this
section.
SEC. 1323. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY.
(a) Completion Time Assessments and Reports.--
(1) In general.--For projects funded under title
23, United States Code, the Secretary shall compare--
(A)(i) the completion times of categorical
exclusions, environmental assessments, and
environmental impact statements initiated after
calendar year 2005; to
(ii) the completion times of categorical
exclusions, environmental assessments, and
environmental impact statements initiated
during a period prior to calendar year 2005;
and
(B)(i) the completion times of categorical
exclusions, environmental assessments, and
environmental impact statements initiated
during the period beginning on January 1, 2005,
and ending on the date of enactment of this
Act; to
(ii) the completion times of categorical
exclusions, environmental assessments, and
environmental impact statements initiated after
the date of enactment of this Act.
(2) Report.--The Secretary shall submit to the
Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on
Environment and Public Works of the Senate--
(A) not later than 1 year after the date of
enactment of this Act, a report that--
(i) describes the results of the
review conducted under paragraph
(1)(A); and
(ii) identifies any change in the
timing for completions, including the
reasons for any such change and the
reasons for delays in excess of 5
years; and
(B) not later than 5 years after the date
of enactment of this Act, a report that--
(i) describes the results of the
review conducted under paragraph
(1)(B); and
(ii) identifies any change in the
timing for completions, including the
reasons for any such change and the
reasons for delays in excess of 5
years.
(b) Additional Report.--Not later than 2 years after the
date of enactment of this Act, the Secretary shall submit to
the Committee on Transportation and Infrastructure of the House
of Representatives and the Committee on Environment and Public
Works of the Senate a report on the types and justification for
the additional categorical exclusions granted under the
authority provided under sections 1316 and 1317.
(c) GAO Report.--The Comptroller General of the United
States shall--
(1) assess the reforms carried out under this
subtitle (including the amendments made by this
subtitle); and
(2) not later than 5 years after the date of
enactment of this Act, submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and
Public Works of the Senate a report that describes the
results of the assessment.
(d) Inspector General Report.--The Inspector General of the
Department of Transportation shall--
(1) assess the reforms carried out under this
subtitle (including the amendments made by this
subtitle); and
(2) submit to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Environment and Public Works of the
Senate--
(A) not later than 2 years after the date
of enactment of this Act, an initial report of
the findings of the Inspector General; and
(B) not later than 4 years after the date
of enactment of this Act, a final report of the
findings.
Subtitle D--Highway Safety
SEC. 1401. JASON'S LAW.
(a) In General.--It is the sense of Congress that it is a
national priority to address projects under this section for
the shortage of long-term parking for commercial motor vehicles
on the National Highway System to improve the safety of
motorized and nonmotorized users and for commercial motor
vehicle operators.
(b) Eligible Projects.--Eligible projects under this
section are those that--
(1) serve the National Highway System; and
(2) may include the following:
(A) Constructing safety rest areas (as
defined in section 120(c) of title 23, United
States Code) that include parking for
commercial motor vehicles.
(B) Constructing commercial motor vehicle
parking facilities adjacent to commercial truck
stops and travel plazas.
(C) Opening existing facilities to
commercial motor vehicle parking, including
inspection and weigh stations and park-and-ride
facilities.
(D) Promoting the availability of publicly
or privately provided commercial motor vehicle
parking on the National Highway System using
intelligent transportation systems and other
means.
(E) Constructing turnouts along the
National Highway System for commercial motor
vehicles.
(F) Making capital improvements to public
commercial motor vehicle parking facilities
currently closed on a seasonal basis to allow
the facilities to remain open year-round.
(G) Improving the geometric design of
interchanges on the National Highway System to
improve access to commercial motor vehicle
parking facilities.
(c) Survey and Comparative Assessment.--
(1) In general.--Not later than 18 months after the
date of enactment of this Act, the Secretary, in
consultation with relevant State motor carrier safety
personnel, shall conduct a survey of each State--
(A) to evaluate the capability of the State
to provide adequate parking and rest facilities
for commercial motor vehicles engaged in
interstate transportation;
(B) to assess the volume of commercial
motor vehicle traffic in the State; and
(C) to develop a system of metrics to
measure the adequacy of commercial motor
vehicle parking facilities in the State.
(2) Results.--The results of the survey under
paragraph (1) shall be made available to the public on
the website of the Department of Transportation.
(3) Periodic updates.--The Secretary shall
periodically update the survey under this subsection.
(d) Electric Vehicle and Natural Gas Vehicle
Infrastructure.--
(1) In general.--Except as provided in paragraph
(2), a State may establish electric vehicle charging
stations or natural gas vehicle refueling stations for
the use of battery-powered or natural gas-fueled trucks
or other motor vehicles at any parking facility funded
or authorized under this Act or title 23, United States
Code.
(2) Exception.--Electric vehicle battery charging
stations or natural gas vehicle refueling stations may
not be established or supported under paragraph (1) if
commercial establishments serving motor vehicle users
are prohibited by section 111 of title 23, United
States Code.
(3) Funds.--Charging or refueling stations
described in paragraph (1) shall be eligible for the
same funds as are available for the parking facilities
in which the stations are located.
(e) Treatment of Projects.--Notwithstanding any other
provision of law, projects funded through the authority
provided under this section shall be treated as projects on a
Federal-aid highway under chapter 1 of title 23, United States
Code.
SEC. 1402. OPEN CONTAINER REQUIREMENTS.
Section 154(c) of title 23, United States Code, is
amended--
(1) by striking paragraph (2) and inserting the
following:
``(2) Fiscal year 2012 and thereafter.--
``(A) Reservation of funds.--On October 1,
2011, and each October 1 thereafter, if a State
has not enacted or is not enforcing an open
container law described in subsection (b), the
Secretary shall reserve an amount equal to 2.5
percent of the funds to be apportioned to the
State on that date under each of paragraphs (1)
and (2) of section 104(b) until the State
certifies to the Secretary the means by which
the State will use those reserved funds in
accordance with subparagraphs (A) and (B) of
paragraph (1) and paragraph (3).
``(B) Transfer of funds.--As soon as
practicable after the date of receipt of a
certification from a State under subparagraph
(A), the Secretary shall--
``(i) transfer the reserved funds
identified by the State for use as
described in subparagraphs (A) and (B)
of paragraph (1) to the apportionment
of the State under section 402; and
``(ii) release the reserved funds
identified by the State as described in
paragraph (3).'';
(2) by striking paragraph (3) and inserting the
following:
``(3) Use for highway safety improvement program.--
``(A) In general.--A State may elect to use
all or a portion of the funds transferred under
paragraph (2) for activities eligible under
section 148.
``(B) State departments of
transportation.--If the State makes an election
under subparagraph (A), the funds shall be
transferred to the department of transportation
of the State, which shall be responsible for
the administration of the funds.''; and
(3) by striking paragraph (5) and inserting the
following:
``(5) Derivation of amount to be transferred.--The
amount to be transferred under paragraph (2) may be
derived from the following:
``(A) The apportionment of the State under
section 104(b)(l).
``(B) The apportionment of the State under
section 104(b)(2).''.
SEC. 1403. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE
INTOXICATED OR DRIVING UNDER THE INFLUENCE.
(a) Definitions.--Section 164(a) of title 23, United States
Code, is amended--
(1) by striking paragraph (3);
(2) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively; and
(3) in paragraph (4) (as so redesignated) by
striking subparagraph (A) and inserting the following:
``(A) receive--
``(i) a suspension of all driving
privileges for not less than 1 year; or
``(ii) a suspension of unlimited
driving privileges for 1 year, allowing
for the reinstatement of limited
driving privileges subject to
restrictions and limited exemptions as
established by State law, if an
ignition interlock device is installed
for not less than 1 year on each of the
motor vehicles owned or operated, or
both, by the individual;''.
(b) Transfer of Funds.--Section 164(b) of title 23, United
States Code, is amended--
(1) by striking paragraph (2) and inserting the
following:
``(2) Fiscal year 2012 and thereafter.--
``(A) Reservation of funds.--On October 1,
2011, and each October 1 thereafter, if a State
has not enacted or is not enforcing a repeat
intoxicated driver law, the Secretary shall
reserve an amount equal to 2.5 percent of the
funds to be apportioned to the State on that
date under each of paragraphs (1) and (2) of
section 104(b) until the State certifies to the
Secretary the means by which the States will
use those reserved funds among the uses
authorized under subparagraphs (A) and (B) of
paragraph (1), and paragraph (3).
``(B) Transfer of funds.--As soon as
practicable after the date of receipt of a
certification from a State under subparagraph
(A), the Secretary shall--
``(i) transfer the reserved funds
identified by the State for use as
described in subparagraphs (A) and (B)
of paragraph (1) to the apportionment
of the State under section 402; and
``(ii) release the reserved funds
identified by the State as described in
paragraph (3).'';
(2) by striking paragraph (3) and inserting the
following:
``(3) Use for highway safety improvement program.--
``(A) In general.--A State may elect to use
all or a portion of the funds transferred under
paragraph (2) for activities eligible under
section 148.
``(B) State departments of
transportation.--If the State makes an election
under subparagraph (A), the funds shall be
transferred to the department of transportation
of the State, which shall be responsible for
the administration of the funds.''; and
(3) by striking paragraph (5) and inserting the
following:
``(5) Derivation of amount to be transferred.--The
amount to be transferred under paragraph (2) may be
derived from the following:
``(A) The apportionment of the State under
section 104(b)(1).
``(B) The apportionment of the State under
section 104(b)(2).''.
SEC. 1404. ADJUSTMENTS TO PENALTY PROVISIONS.
(a) Vehicle Weight Limitations.--Section 127(a)(1) of title
23, United States Code, is amended by striking ``No funds shall
be apportioned in any fiscal year under section 104(b)(1) of
this title to any State which'' and inserting ``The Secretary
shall withhold 50 percent of the apportionment of a State under
section 104(b)(1) in any fiscal year in which the State''.
(b) Control of Junkyards.--Section 136 of title 23, United
States Code, is amended--
(1) in subsection (b), in the first sentence--
(A) by striking ``10 per centum'' and
inserting ``7 percent''; and
(B) by striking ``section 104 of this
title'' and inserting ``paragraphs (1) through
(5) of section 104(b)''; and
(2) by adding at the end the following:
``(n) Definitions.--For purposes of this section, the terms
`primary system' and `Federal-aid primary system' mean any
highway that is on the National Highway System, which includes
the Interstate Highway System.''.
(c) Enforcement of Vehicle Size and Weight Laws.--Section
141(b)(2) of title 23, United States Code, is amended--
(1) by striking ``10 per centum'' and inserting ``7
percent''; and
(2) by striking ``section 104 of this title'' and
inserting ``paragraphs (1) through (5) of section
104(b)''.
(d) Proof of Payment of the Heavy Vehicle Use Tax.--Section
141(c) of title 23, United States Code, is amended--
(1) by striking ``section 104(b)(4)'' each place it
appears and inserting ``section 104(b)(1)''; and
(2) in the first sentence by striking ``25 per
centum'' and inserting ``8 percent''.
(e) Use of Safety Belts.--Section 153(h) of title 23,
United States Code, is amended--
(1) by striking paragraph (1);
(2) by redesignating paragraph (2) as paragraph
(1);
(3) in paragraph (1) (as so redesignated)--
(A) by striking the paragraph heading and
inserting ``Prior to fiscal year 2012''; and
(B) by inserting ``and before October 1,
2011,'' after ``September 30, 1994,''; and
(4) by inserting after paragraph (1) (as so
redesignated) the following:
``(2) Fiscal year 2012 and thereafter.--If, at any
time in a fiscal year beginning after September 30,
2011, a State does not have in effect a law described
in subsection (a)(2), the Secretary shall transfer an
amount equal to 2 percent of the funds apportioned to
the State for the succeeding fiscal year under each of
paragraphs (1) through (3) of section 104(b) to the
apportionment of the State under section 402.''.
(f) National Minimum Drinking Age.--Section 158(a)(1) of
title 23, United States Code, is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(A) Fiscal years before 2012.--The
Secretary''; and
(2) by adding at the end the following:
``(B) Fiscal year 2012 and thereafter.--For
fiscal year 2012 and each fiscal year
thereafter, the amount to be withheld under
this section shall be an amount equal to 8
percent of the amount apportioned to the
noncompliant State, as described in
subparagraph (A), under paragraphs (1) and (2)
of section 104(b).''.
(g) Drug Offenders.--Section 159 of title 23, United States
Code, is amended--
(1) in subsection (a)--
(A) by striking paragraph (1);
(B) by redesignating paragraph (2) as
paragraph (1);
(C) in paragraph (1) (as so redesignated)
by striking ``(including any amounts withheld
under paragraph (1))''; and
(D) by inserting after paragraph (1) (as so
redesignated) the following:
``(2) Fiscal year 2012 and thereafter.--The
Secretary shall withhold an amount equal to 8 percent
of the amount required to be apportioned to any State
under each of paragraphs (1) and (2) of section 104(b)
on the first day of each fiscal year beginning after
September 30, 2011, if the State fails to meet the
requirements of paragraph (3) on the first day of the
fiscal year.''; and
(2) by striking subsection (b) and inserting the
following:
``(b) Effect of Noncompliance.--No funds withheld under
this section from apportionments to any State shall be
available for apportionment to that State.''.
(h) Zero Tolerance Blood Alcohol Concentration for
Minors.--Section 161(a) of title 23, United States Code, is
amended--
(1) by striking paragraph (1);
(2) by redesignating paragraph (2) as paragraph
(1);
(3) in paragraph (1) (as so redesignated)--
(A) by striking the paragraph heading and
inserting ``Prior to fiscal year 2012''; and
(B) by inserting ``through fiscal year
2011'' after ``each fiscal year thereafter'';
and
(4) by inserting after paragraph (1) (as so
redesignated) the following:
``(2) Fiscal year 2012 and thereafter.--The
Secretary shall withhold an amount equal to 8 percent
of the amount required to be apportioned to any State
under each of paragraphs (1) and (2) of section 104(b)
on October 1, 2011, and on October 1 of each fiscal
year thereafter, if the State does not meet the
requirement of paragraph (3) on that date.''.
(i) Operation of Motor Vehicles by Intoxicated Persons.--
Section 163(e) of title 23, United States Code, is amended by
striking paragraphs (1) and (2) and inserting the following:
``(1) Fiscal years 2007 through 2011.--On October
1, 2006, and October 1 of each fiscal year thereafter
through fiscal year 2011, if a State has not enacted or
is not enforcing a law described in subsection (a), the
Secretary shall withhold an amount equal to 8 percent
of the amounts to be apportioned to the State on that
date under each of paragraphs (1), (3), and (4) of
section 104(b).
``(2) Fiscal year 2012 and thereafter.--On October
1, 2011, and October 1 of each fiscal year thereafter,
if a State has not enacted or is not enforcing a law
described in subsection (a), the Secretary shall
withhold an amount equal to 6 percent of the amounts to
be apportioned to the State on that date under each of
paragraphs (1) and (2) of section 104(b).''.
(j) Commercial Driver's License.--Section 31314 of title
49, United States Code, is amended--
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the
following:
``(c) Penalties Imposed in Fiscal Year 2012 and
Thereafter.--Effective beginning on October 1, 2011--
``(1) the penalty for the first instance of
noncompliance by a State under this section shall be
not more than an amount equal to 4 percent of funds
required to be apportioned to the noncompliant State
under paragraphs (1) and (2) of section 104(b) of title
23; and
``(2) the penalty for subsequent instances of
noncompliance shall be not more than an amount equal to
8 percent of funds required to be apportioned to the
noncompliant State under paragraphs (1) and (2) of
section 104(b) of title 23.''.
SEC. 1405. HIGHWAY WORKER SAFETY.
Not later than 60 days after the date of enactment of this
Act, the Secretary shall modify section 630.1108(a) of title
23, Code of Federal Regulations (as in effect on the date of
enactment of this Act), to ensure that--
(1) at a minimum, positive protective measures are
used to separate workers on highway construction
projects from motorized traffic in all work zones
conducted under traffic in areas that offer workers no
means of escape (such as tunnels and bridges), unless
an engineering study determines otherwise;
(2) temporary longitudinal traffic barriers are
used to protect workers on highway construction
projects in long-duration stationary work zones when
the project design speed is anticipated to be high and
the nature of the work requires workers to be within 1
lane-width from the edge of a live travel lane,
unless--
(A) an analysis by the project sponsor
determines otherwise; or
(B) the project is outside of an urbanized
area and the annual average daily traffic load
of the applicable road is less than 100
vehicles per hour; and
(3) when positive protective devices are necessary
for highway construction projects, those devices are
paid for on a unit-pay basis, unless doing so would
create a conflict with innovative contracting
approaches, such as design-build or some performance-
based contracts under which the contractor is paid to
assume a certain risk allocation and payment is
generally made on a lump-sum basis.
Subtitle E--Miscellaneous
SEC. 1501. REAL-TIME RIDESHARING.
Paragraph (3) of section 101(a) of title 23, United States
Code (as redesignated by section 1103(a)(2)), is amended by
striking ``and designating existing facilities for use for
preferential parking for carpools'' and inserting ``designating
existing facilities for use for preferential parking for
carpools, and real-time ridesharing projects, such as projects
where drivers, using an electronic transfer of funds, recover
costs directly associated with the trip provided through the
use of location technology to quantify those direct costs,
subject to the condition that the cost recovered does not
exceed the cost of the trip provided''.
SEC. 1502. PROGRAM EFFICIENCIES.
The first sentence of section 102(b) of title 23, United
States Code, is amended by striking ``made available for such
engineering'' and inserting ``reimbursed for the preliminary
engineering''.
SEC. 1503. PROJECT APPROVAL AND OVERSIGHT.
(a) In General.--Section 106 of title 23, United States
Code, is amended--
(1) in subsection (a)(2) by inserting ``recipient''
before ``formalizing'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in the heading, by striking
``Non-interstate'';
(ii) by striking ``but not on the
Interstate System''; and inserting ``,
including projects on the Interstate
System''; and
(iii) by striking ``of projects''
and all that follows through the period
at the end and inserting ``with respect
to the projects unless the Secretary
determines that the assumption is not
appropriate.''; and
(B) by striking paragraph (4) and inserting
the following:
``(4) Limitation on interstate projects.--
``(A) In general.--The Secretary shall not
assign any responsibilities to a State for
projects the Secretary determines to be in a
high risk category, as defined under
subparagraph (B).
``(B) High risk categories.--The Secretary
may define the high risk categories under this
subparagraph on a national basis, a State-by-
State basis, or a national and State-by-State
basis, as determined to be appropriate by the
Secretary.'';
(3) in subsection (e)--
(A) in paragraph (1)(A)--
(i) in the matter preceding clause
(i)--
(I) by striking ``concept''
and inserting ``planning''; and
(II) by striking
``multidisciplined'' and
inserting
``multidisciplinary''; and
(ii) by striking clause (i) and
inserting the following:
``(i) providing the needed
functions safely, reliably, and at the
lowest overall lifecycle cost;'';
(B) in paragraph (2)--
(i) in the matter preceding
subparagraph (A) by striking ``or other
cost-reduction analysis'';
(ii) in subparagraph (A)--
(I) by striking ``Federal-
aid system'' and inserting
``National Highway System
receiving Federal assistance'';
and
(II) by striking
``$25,000,000'' and inserting
``$50,000,000''; and
(iii) in subparagraph (B)--
(I) by inserting ``on the
National Highway System
receiving Federal assistance''
after ``a bridge project''; and
(II) by striking
``$20,000,000'' and inserting
``$40,000,000''; and
(C) by striking paragraph (4) and inserting
the following:
``(4) Requirements.--
``(A) Value engineering program.--The State
shall develop and carry out a value engineering
program that--
``(i) establishes and documents
value engineering program policies and
procedures;
``(ii) ensures that the required
value engineering analysis is conducted
before completing the final design of a
project;
``(iii) ensures that the value
engineering analysis that is conducted,
and the recommendations developed and
implemented for each project, are
documented in a final value engineering
report; and
``(iv) monitors, evaluates, and
annually submits to the Secretary a
report that describes the results of
the value analyses that are conducted
and the recommendations implemented for
each of the projects described in
paragraph (2) that are completed in the
State.
``(B) Bridge projects.--The value
engineering analysis for a bridge project under
paragraph (2) shall--
``(i) include bridge superstructure
and substructure requirements based on
construction material; and
``(ii) be evaluated by the State--
``(I) on engineering and
economic bases, taking into
consideration acceptable
designs for bridges; and
``(II) using an analysis of
lifecycle costs and duration of
project construction.
``(5) Design-build projects.--A requirement to
provide a value engineering analysis under this
subsection shall not apply to a project delivered using
the design-build method of construction.'';
(4) in subsection (h)--
(A) in paragraph (1)(B) by inserting ``,
including a phasing plan when applicable''
after ``financial plan''; and
(B) by striking paragraph (3) and inserting
the following:
``(3) Financial plan.--A financial plan--
``(A) shall be based on detailed estimates
of the cost to complete the project;
``(B) shall provide for the annual
submission of updates to the Secretary that are
based on reasonable assumptions, as determined
by the Secretary, of future increases in the
cost to complete the project;
``(C) may include a phasing plan that
identifies fundable incremental improvements or
phases that will address the purpose and the
need of the project in the short term in the
event there are insufficient financial
resources to complete the entire project. If a
phasing plan is adopted for a project pursuant
to this section, the project shall be deemed to
satisfy the fiscal constraint requirements in
the statewide and metropolitan planning
requirements in sections 134 and 135; and
``(D) shall assess the appropriateness of a
public-private partnership to deliver the
project.''; and
(5) by adding at the end the following:
``(j) Use of Advanced Modeling Technologies.--
``(1) Definition of advanced modeling technology.--
In this subsection, the term `advanced modeling
technology' means an available or developing
technology, including 3-dimensional digital modeling,
that can--
``(A) accelerate and improve the
environmental review process;
``(B) increase effective public
participation;
``(C) enhance the detail and accuracy of
project designs;
``(D) increase safety;
``(E) accelerate construction, and reduce
construction costs; or
``(F) otherwise expedite project delivery
with respect to transportation projects that
receive Federal funding.
``(2) Program.--With respect to transportation
projects that receive Federal funding, the Secretary
shall encourage the use of advanced modeling
technologies during environmental, planning, financial
management, design, simulation, and construction
processes of the projects.
``(3) Activities.--In carrying out paragraph (2),
the Secretary shall--
``(A) compile information relating to
advanced modeling technologies, including
industry best practices with respect to the use
of the technologies;
``(B) disseminate to States information
relating to advanced modeling technologies,
including industry best practices with respect
to the use of the technologies; and
``(C) promote the use of advanced modeling
technologies.
``(4) Comprehensive plan.--The Secretary shall
develop and publish on the public website of the
Department of Transportation a detailed and
comprehensive plan for the implementation of paragraph
(2).''.
(b) Review of Oversight Program.--
(1) In general.--The Secretary shall review the
oversight program established under section 106(g) of
title 23, United States Code, to determine the efficacy
of the program in monitoring the effective and
efficient use of funds authorized to carry out title
23, United States Code.
(2) Minimum requirements for review.--At a minimum,
the review under paragraph (1) shall assess the
capability of the program to--
(A) identify projects funded under title
23, United States Code, for which there are
cost or schedule overruns; and
(B) evaluate the extent of such overruns.
(3) Report to congress.--Not later than 2 years
after the date of enactment of this Act, the Secretary
shall transmit to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Environment and Public Works of the Senate
a report on the results of the review conducted under
paragraph (1), which shall include recommendations for
legislative changes to improve the oversight program
established under section 106(g) of title 23, United
States Code.
(c) Transparency and Accountability.--
(1) Data collection.--The Secretary shall compile
and make available on the public website of the
Department of Transportation the annual expenditure
data for funds made available under title 23 and
chapter 53 of title 49, United States Code.
(2) Requirements.--In carrying out paragraph (1),
the Secretary shall ensure that the data made available
on the public website of the Department of
Transportation--
(A) is organized by project and State;
(B) to the maximum extent practicable, is
updated regularly to reflect the current status
of obligations, expenditures, and Federal-aid
projects; and
(C) can be searched and downloaded by users
of the website.
(3) Report to congress.--The Secretary shall
annually submit to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Environment and Public Works and the
Committee on Banking, Housing, and Urban Affairs of the
Senate a report containing a summary of the data
described in paragraph (1) for the 1-year period ending
on the date on which the report is submitted.
SEC. 1504. STANDARDS.
Section 109 of title 23, United States Code, is amended by
adding at the end the following:
``(r) Pavement Markings.--The Secretary shall not approve
any pavement markings project that includes the use of glass
beads containing more than 200 parts per million of arsenic or
lead, as determined in accordance with Environmental Protection
Agency testing methods 3052, 6010B, or 6010C.''.
SEC. 1505. JUSTIFICATION REPORTS FOR ACCESS POINTS ON THE INTERSTATE
SYSTEM.
Section 111 of title 23, United States Code, is amended by
adding at the end the following:
``(e) Justification Reports.--If the Secretary requests or
requires a justification report for a project that would add a
point of access to, or exit from, the Interstate System, the
Secretary may permit a State transportation department to
approve the report.''.
SEC. 1506. CONSTRUCTION.
Section 114(b) of title 23, United States Code, is
amended--
(1) in subsection (b)--
(A) by striking paragraph (1) and inserting
the following:
``(1) Limitation on convict labor.--Convict labor
shall not be used in construction of Federal-aid
highways or portions of Federal-aid highways unless the
labor is performed by convicts who are on parole,
supervised release, or probation.''; and
(B) in paragraph (3) by inserting ``in
existence during that period'' after ``located
on a Federal-aid system''; and
(2) by adding at the end the following:
``(d) Veterans Employment.---
``(1) In general.--Subject to paragraph (2), a
recipient of Federal financial assistance under this
chapter shall, to the extent practicable, encourage
contractors working on a highway project funded using
the assistance to make a best faith effort in the
hiring or referral of laborers on any project for the
construction of a highway to veterans (as defined in
section 2108 of title 5) who have the requisite skills
and abilities to perform the construction work required
under the contract.
``(2) Administration.--This subsection shall not--
``(A) apply to projects subject to section
140(d); or
``(B) be administered or enforced in any
manner that would require an employer to give a
preference to any veteran over any equally
qualified applicant who is a member of any
racial or ethnic minority, a female, or any
equally qualified former employee.''.
SEC. 1507. MAINTENANCE.
Section 116 of title 23, United States Code, is amended--
(1) by redesignating subsections (a) through (d) as
subsections (b) through (e), respectively;
(2) by inserting before subsection (b) (as so
redesignated) the following:
``(a) Definitions.--In this section, the following
definitions apply:
``(1) Preventive maintenance.--The term `preventive
maintenance' includes pavement preservation programs
and activities.
``(2) Pavement preservation programs and
activities.--The term `pavement preservation programs
and activities' means programs and activities employing
a network level, long-term strategy that enhances
pavement performance by using an integrated, cost-
effective set of practices that extend pavement life,
improve safety, and meet road user expectations.'';
(3) in subsection (b) (as so redesignated)--
(A) in the first sentence, by inserting
``or other direct recipient'' before ``to
maintain''; and
(B) by striking the second sentence;
(4) by striking subsection (c) (as so redesignated)
and inserting the following:
``(c) Agreement.--In any State in which the State
transportation department or other direct recipient is without
legal authority to maintain a project described in subsection
(b), the transportation department or direct recipient shall
enter into a formal agreement with the appropriate officials of
the county or municipality in which the project is located to
provide for the maintenance of the project.''; and
(5) in the first sentence of subsection (d) (as so
redesignated) by inserting ``or other direct
recipient'' after ``State transportation department''.
SEC. 1508. FEDERAL SHARE PAYABLE.
Section 120 of title 23, United States Code, is amended--
(1) in the first sentence of subsection (c)(1)--
(A) by inserting ``maintaining minimum
levels of retroreflectivity of highway signs or
pavement markings,'' after ``traffic control
signalization,'';
(B) by inserting ``shoulder and centerline
rumble strips and stripes,'' after ``pavement
marking,''; and
(C) by striking ``Federal-aid systems'' and
inserting ``Federal-aid programs'';
(2) by striking subsection (e) and inserting the
following:
``(e) Emergency Relief.--The Federal share payable for any
repair or reconstruction provided for by funds made available
under section 125 for any project on a Federal-aid highway,
including the Interstate System, shall not exceed the Federal
share payable on a project on the system as provided in
subsections (a) and (b), except that--
``(1) the Federal share payable for eligible
emergency repairs to minimize damage, protect
facilities, or restore essential traffic accomplished
within 180 days after the actual occurrence of the
natural disaster or catastrophic failure may amount to
100 percent of the cost of the repairs;
``(2) the Federal share payable for any repair or
reconstruction of Federal land transportation
facilities, Federal land access transportation
facilities, and tribal transportation facilities may
amount to 100 percent of the cost of the repair or
reconstruction;
``(3) the Secretary shall extend the time period in
paragraph (1) taking into consideration any delay in
the ability of the State to access damaged facilities
to evaluate damage and the cost of repair; and
``(4) the Federal share payable for eligible
permanent repairs to restore damaged facilities to
predisaster condition may amount to 90 percent of the
cost of the repairs if the eligible expenses incurred
by the State due to natural disasters or catastrophic
failures in a Federal fiscal year exceeds the annual
apportionment of the State under section 104 for the
fiscal year in which the disasters or failures
occurred.'';
(3) by striking subsection (g) and redesignating
subsections (h) through (l) as subsections (g) through
(k), respectively;
(4) in subsection (i)(1)(A) (as redesignated by
paragraph (3)) by striking ``and the Appalachian
development highway system program under section 14501
of title 40''; and
(5) by striking subsections (j) and (k) (as
redesignated by paragraph (3)) and inserting the
following:
``(j) Use of Federal Agency Funds.--Notwithstanding any
other provision of law, any Federal funds other than those made
available under this title and title 49 may be used to pay the
non-Federal share of the cost of any transportation project
that is within, adjacent to, or provides access to Federal
land, the Federal share of which is funded under this title or
chapter 53 of title 49.
``(k) Use of Federal Land and Tribal Transportation
Funds.--Notwithstanding any other provision of law, the funds
authorized to be appropriated to carry out the tribal
transportation program under section 202 and the Federal lands
transportation program under section 203 may be used to pay the
non-Federal share of the cost of any project that is funded
under this title or chapter 53 of title 49 and that provides
access to or within Federal or tribal land.''.
SEC. 1509. TRANSFERABILITY OF FEDERAL-AID HIGHWAY FUNDS.
(a) In General.--Section 126 of title 23, United States
Code, is amended to read as follows:
``Sec. 126. Transferability of Federal-aid highway funds
``(a) In General.--Notwithstanding any other provision of
law, subject to subsection (b), a State may transfer from an
apportionment under section 104(b) not to exceed 50 percent of
the amount apportioned for the fiscal year to any other
apportionment of the State under that section.
``(b) Application to Certain Set-asides.--
``(1) In general.--Funds that are subject to
sections 104(d) and 133(d) shall not be transferred
under this section.
``(2) Funds transferred by states.--Funds
transferred by a State under this section of the
funding reserved for the State under section 213 for a
fiscal year may only come from the portion of those
funds that are available for obligation in any area of
the State under section 213(c)(1)(B).''.
(b) Conforming Amendment.--The analysis for chapter 1 of
title 23, United States Code, is amended by striking the item
relating to section 126 and inserting the following:
``126. Transferability of Federal-aid highway funds.''.
SEC. 1510. IDLE REDUCTION TECHNOLOGY.
Section 127(a)(12) of title 23, United States Code, is
amended--
(1) in subparagraph (B), by striking ``400'' and
inserting ``550''; and
(2) in subparagraph (C)(ii), by striking ``400-
pound'' and inserting ``550-pound''.
SEC. 1511. SPECIAL PERMITS DURING PERIODS OF NATIONAL EMERGENCY.
Section 127 of title 23, United States Code, is amended by
inserting at the end the following:
``(i) Special Permits During Periods of National
Emergency.--
``(1) In general.--Notwithstanding any other
provision of this section, a State may issue special
permits during an emergency to overweight vehicles and
loads that can easily be dismantled or divided if--
``(A) the President has declared the
emergency to be a major disaster under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.);
``(B) the permits are issued in accordance
with State law; and
``(C) the permits are issued exclusively to
vehicles and loads that are delivering relief
supplies.
``(2) Expiration.--A permit issued under paragraph
(1) shall expire not later than 120 days after the date
of the declaration of emergency under subparagraph (A)
of that paragraph.''.
SEC. 1512. TOLLING.
(a) Amendment to Tolling Provision.--Section 129(a) of
title 23, United States Code, is amended to read as follows:
``(a) Basic Program.--
``(1) Authorization for federal participation.--
Subject to the provisions of this section, Federal
participation shall be permitted on the same basis and
in the same manner as construction of toll-free
highways is permitted under this chapter in the--
``(A) initial construction of a toll
highway, bridge, or tunnel or approach to the
highway, bridge, or tunnel;
``(B) initial construction of 1 or more
lanes or other improvements that increase
capacity of a highway, bridge, or tunnel (other
than a highway on the Interstate System) and
conversion of that highway, bridge, or tunnel
to a tolled facility, if the number of toll-
free lanes, excluding auxiliary lanes, after
the construction is not less than the number of
toll-free lanes, excluding auxiliary lanes,
before the construction;
``(C) initial construction of 1 or more
lanes or other improvements that increase the
capacity of a highway, bridge, or tunnel on the
Interstate System and conversion of that
highway, bridge, or tunnel to a tolled
facility, if the number of toll-free non-HOV
lanes, excluding auxiliary lanes, after such
construction is not less than the number of
toll-free non-HOV lanes, excluding auxiliary
lanes, before such construction;
``(D) reconstruction, resurfacing,
restoration, rehabilitation, or replacement of
a toll highway, bridge, or tunnel or approach
to the highway, bridge, or tunnel;
``(E) reconstruction or replacement of a
toll-free bridge or tunnel and conversion of
the bridge or tunnel to a toll facility;
``(F) reconstruction of a toll-free
Federal-aid highway (other than a highway on
the Interstate System) and conversion of the
highway to a toll facility;
``(G) reconstruction, restoration, or
rehabilitation of a highway on the Interstate
System if the number of toll-free non-HOV
lanes, excluding auxiliary lanes, after
reconstruction, restoration, or rehabilitation
is not less than the number of toll-free non-
HOV lanes, excluding auxiliary lanes, before
reconstruction, restoration, or rehabilitation;
``(H) conversion of a high occupancy
vehicle lane on a highway, bridge, or tunnel to
a toll facility; and
``(I) preliminary studies to determine the
feasibility of a toll facility for which
Federal participation is authorized under this
paragraph.
``(2) Ownership.--Each highway, bridge, tunnel, or
approach to the highway, bridge, or tunnel constructed
under this subsection shall--
``(A) be publicly owned; or
``(B) be privately owned if the public
authority with jurisdiction over the highway,
bridge, tunnel, or approach has entered into a
contract with 1 or more private persons to
design, finance, construct, and operate the
facility and the public authority will be
responsible for complying with all applicable
requirements of this title with respect to the
facility.
``(3) Limitations on use of revenues.--
``(A) In general.--A public authority with
jurisdiction over a toll facility shall use all
toll revenues received from operation of the
toll facility only for--
``(i) debt service with respect to
the projects on or for which the tolls
are authorized, including funding of
reasonable reserves and debt service on
refinancing;
``(ii) a reasonable return on
investment of any private person
financing the project, as determined by
the State or interstate compact of
States concerned;
``(iii) any costs necessary for the
improvement and proper operation and
maintenance of the toll facility,
including reconstruction, resurfacing,
restoration, and rehabilitation;
``(iv) if the toll facility is
subject to a public-private partnership
agreement, payments that the party
holding the right to toll revenues owes
to the other party under the public-
private partnership agreement; and
``(v) if the public authority
certifies annually that the tolled
facility is being adequately
maintained, any other purpose for which
Federal funds may be obligated by a
State under this title.
``(B) Annual audit.--
``(i) In general.--A public
authority with jurisdiction over a toll
facility shall conduct or have an
independent auditor conduct an annual
audit of toll facility records to
verify adequate maintenance and
compliance with subparagraph (A), and
report the results of the audits to the
Secretary.
``(ii) Records.--On reasonable
notice, the public authority shall make
all records of the public authority
pertaining to the toll facility
available for audit by the Secretary.
``(C) Noncompliance.--If the Secretary
concludes that a public authority has not
complied with the limitations on the use of
revenues described in subparagraph (A), the
Secretary may require the public authority to
discontinue collecting tolls until an agreement
with the Secretary is reached to achieve
compliance with the limitation on the use of
revenues described in subparagraph (A).
``(4) Limitations on conversion of high occupancy
vehicle facilities on interstate system.--
``(A) In general.--A public authority with
jurisdiction over a high occupancy vehicle
facility on the Interstate System may undertake
reconstruction, restoration, or rehabilitation
under paragraph (1)(G) on the facility, and may
levy tolls on vehicles, excluding high
occupancy vehicles, using the reconstructed,
restored, or rehabilitated facility, if the
public authority--
``(i) in the case of a high
occupancy vehicle facility that affects
a metropolitan area, submits to the
Secretary a written assurance that the
metropolitan planning organization
designated under section 5203 of title
49 for the area has been consulted
concerning the placement and amount of
tolls on the converted facility;
``(ii) develops, manages, and
maintains a system that will
automatically collect the toll; and
``(iii) establishes policies and
procedures--
``(I) to manage the demand
to use the facility by varying
the toll amount that is
charged; and
``(II) to enforce sanctions
for violations of use of the
facility.
``(B) Exemption from tolls.--In levying
tolls on a facility under subparagraph (A), a
public authority may designate classes of
vehicles that are exempt from the tolls or
charge different toll rates for different
classes of vehicles.
``(5) Special rule for funding.--
``(A) In general.--In the case of a toll
facility under the jurisdiction of a public
authority of a State (other than the State
transportation department), on request of the
State transportation department and subject to
such terms and conditions as the department and
public authority may agree, the Secretary,
working through the State department of
transportation, shall reimburse the public
authority for the Federal share of the costs of
construction of the project carried out on the
toll facility under this subsection in the same
manner and to the same extent as the department
would be reimbursed if the project was being
carried out by the department.
``(B) Source.--The reimbursement of funds
under this paragraph shall be from sums
apportioned to the State under this chapter and
available for obligations on projects on the
Federal-aid system in the State on which the
project is being carried out.
``(6) Limitation on federal share.--The Federal
share payable for a project described in paragraph (1)
shall be a percentage determined by the State, but not
to exceed 80 percent.
``(7) Modifications.--If a public authority
(including a State transportation department) with
jurisdiction over a toll facility subject to an
agreement under this section or section 119(e), as in
effect on the day before the effective date of title I
of the Intermodal Surface Transportation Efficiency Act
of 1991 (105 Stat. 1915), requests modification of the
agreement, the Secretary shall modify the agreement to
allow the continuation of tolls in accordance with
paragraph (3) without repayment of Federal funds.
``(8) Loans.--
``(A) In general.--
``(i) Loans.--Using amounts made
available under this title, a State may
loan to a public or private entity
constructing or proposing to construct
under this section a toll facility or
non-toll facility with a dedicated
revenue source an amount equal to all
or part of the Federal share of the
cost of the project if the project has
a revenue source specifically dedicated
to the project.
``(ii) Dedicated revenue sources.--
Dedicated revenue sources for non-toll
facilities include excise taxes, sales
taxes, motor vehicle use fees, tax on
real property, tax increment financing,
and such other dedicated revenue
sources as the Secretary determines
appropriate.
``(B) Compliance with federal laws.--As a
condition of receiving a loan under this
paragraph, the public or private entity that
receives the loan shall ensure that the project
will be carried out in accordance with this
title and any other applicable Federal law,
including any applicable provision of a Federal
environmental law.
``(C) Subordination of debt.--The amount of
any loan received for a project under this
paragraph may be subordinated to any other debt
financing for the project.
``(D) Obligation of funds loaned.--Funds
loaned under this paragraph may only be
obligated for projects under this paragraph.
``(E) Repayment.--The repayment of a loan
made under this paragraph shall commence not
later than 5 years after date on which the
facility that is the subject of the loan is
open to traffic.
``(F) Term of loan.--The term of a loan
made under this paragraph shall not exceed 30
years from the date on which the loan funds are
obligated.
``(G) Interest.--A loan made under this
paragraph shall bear interest at or below
market interest rates, as determined by the
State, to make the project that is the subject
of the loan feasible.
``(H) Reuse of funds.--Amounts repaid to a
State from a loan made under this paragraph may
be obligated--
``(i) for any purpose for which the
loan funds were available under this
title; and
``(ii) for the purchase of
insurance or for use as a capital
reserve for other forms of credit
enhancement for project debt in order
to improve credit market access or to
lower interest rates for projects
eligible for assistance under this
title.
``(I) Guidelines.--The Secretary shall
establish procedures and guidelines for making
loans under this paragraph.
``(9) State law permitting tolling.--If a State
does not have a highway, bridge, or tunnel toll
facility as of the date of enactment of the MAP-21,
before commencing any activity authorized under this
section, the State shall have in effect a law that
permits tolling on a highway, bridge, or tunnel.
``(10) Definitions.--In this subsection, the
following definitions apply:
``(A) High occupancy vehicle; hov.--The
term `high occupancy vehicle' or `HOV' means a
vehicle with not fewer than 2 occupants.
``(B) Initial construction.--
``(i) In general.--The term
`initial construction' means the
construction of a highway, bridge,
tunnel, or other facility at any time
before it is open to traffic.
``(ii) Exclusions.--The term
`initial construction' does not include
any improvement to a highway, bridge,
tunnel, or other facility after it is
open to traffic.
``(C) Public authority.--The term `public
authority' means a State, interstate compact of
States, or public entity designated by a State.
``(D) Toll facility.--The term `toll
facility' means a toll highway, bridge, or
tunnel or approach to the highway, bridge, or
tunnel constructed under this subsection.''.
(b) Electronic Toll Collection Interoperability
Requirements.--Not later than 4 years after the date of
enactment of this Act, all toll facilities on the Federal-aid
highways shall implement technologies or business practices
that provide for the interoperability of electronic toll
collection programs.
SEC. 1513. MISCELLANEOUS PARKING AMENDMENTS.
(a) Fringe and Corridor Parking Facilities.--Section 137 of
title 23, United States Code, is amended--
(1) in subsection (f)(1)--
(A) by striking ``104(b)(4)'' and inserting
``104(b)(1)''; and
(B) by inserting ``including the addition
of electric vehicle charging stations or
natural gas vehicle refueling stations,'' after
``new facilities,''; and
(2) by adding at the end the following:
``(g) Funding.--The addition of electric vehicle charging
stations or natural gas vehicle refueling stations to new or
previously funded parking facilities shall be eligible for
funding under this section.''.
(b) Public Transportation.--Section 142(a)(1) of title 23,
United States Code, is amended by inserting ``, which may
include electric vehicle charging stations or natural gas
vehicle refueling stations,'' after ``parking facilities''.
(c) Forest Development Roads and Trails.--Section 205(d) of
title 23, United States Code, is amended by inserting ``, which
may include electric vehicle charging stations or natural gas
vehicle refueling stations,'' after ``parking areas''.
SEC. 1514. HOV FACILITIES.
Section 166 of title 23, United States Code, is amended--
(1) in subsection (b)(5)--
(A) in subparagraph (A) by striking
``2009'' and inserting ``2017'';
(B) in subparagraph (B) by striking
``2009'' and inserting ``2017''; and
(C) in subparagraph (C)--
(i) by striking ``subparagraph
(B)'' and inserting ``this paragraph'';
and
(ii) by inserting ``or equal to''
after ``less than'';
(2) in subsection (c) by striking paragraph (3) and
inserting the following:
``(3) Toll revenue.--Toll revenue collected under
this section is subject to the requirements of section
129(a)(3).''; and
(3) in subsection (d)(1)--
(A) in the matter preceding subparagraph
(A)--
(i) by striking ``in a fiscal year
shall certify'' and inserting ``shall
submit to the Secretary a report
demonstrating that the facility is not
already degraded, and that the presence
of the vehicles will not cause the
facility to become degraded, and
certify''; and
(ii) by striking ``in the fiscal
year'';
(B) in subparagraph (A) by inserting ``and
submitting to the Secretary annual reports of
those impacts'' after ``adjacent highways'';
(C) in subparagraph (C) by striking ``if
the presence of the vehicles has degraded the
operation of the facility'' and inserting
``whenever the operation of the facility is
degraded''; and
(D) by adding at the end the following:
``(D) Maintenance of operating
performance.--Not later than 180 days after the
date on which a facility is degraded pursuant
to the standard specified in paragraph (2), the
State agency with jurisdiction over the
facility shall bring the facility into
compliance with the minimum average operating
speed performance standard through changes to
operation of the facility, including--
``(i) increasing the occupancy
requirement for HOV lanes;
``(ii) varying the toll charged to
vehicles allowed under subsection (b)
to reduce demand;
``(iii) discontinuing allowing non-
HOV vehicles to use HOV lanes under
subsection (b); or
``(iv) increasing the available
capacity of the HOV facility.
``(E) Compliance.--If the State fails to
bring a facility into compliance under
subparagraph (D), the Secretary shall subject
the State to appropriate program sanctions
under section 1.36 of title 23, Code of Federal
Regulations (or successor regulations), until
the performance is no longer degraded.''.
SEC. 1515. FUNDING FLEXIBILITY FOR TRANSPORTATION EMERGENCIES.
(a) In General.--Chapter 1 of title 23, United States Code
(as amended by section 1311(a)), is amended by adding at the
end the following:
``Sec. 170. Funding flexibility for transportation emergencies
``(a) In General.--Notwithstanding any other provision of
law, a State may use up to 100 percent of any covered funds of
the State to repair or replace a transportation facility that
has suffered serious damage as a result of a natural disaster
or catastrophic failure from an external cause.
``(b) Declaration of Emergency.--Funds may be used under
this section only for a disaster or emergency declared by the
President pursuant to the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
``(c) Repayment.--Funds used under subsection (a) shall be
repaid to the program from which the funds were taken in the
event that such repairs or replacement are subsequently covered
by a supplemental appropriation of funds.
``(d) Definitions.--In this section, the following
definitions apply:
``(1) Covered funds.--The term `covered funds'
means any amounts apportioned to a State under section
104(b), other than amounts suballocated to metropolitan
areas and other areas of the State under section
133(d), but including any such amounts required to be
set aside for a purpose other than the repair or
replacement of a transportation facility under this
section.
``(2) Transportation facility.--The term
`transportation facility' means any facility eligible
for assistance under section 125.''.
(b) Technical and Conforming Amendment.--The analysis for
chapter 1 of title 23, United States Code (as amended by
section 1311(b)), is amended by adding at the end the
following:
``170. Funding flexibility for transportation emergencies.''.
SEC. 1516. DEFENSE ACCESS ROAD PROGRAM ENHANCEMENTS TO ADDRESS
TRANSPORTATION INFRASTRUCTURE IN THE VICINITY OF
MILITARY INSTALLATIONS.
The second sentence of section 210(a)(2) of title 23,
United States Code, is amended by inserting ``, in consultation
with the Secretary of Transportation,'' before ``shall
determine''.
SEC. 1517. MAPPING.
(a) In General.--Section 306 of title 23, United States
Code, is amended--
(1) in subsection (a) by striking ``may'' and
inserting ``shall'';
(2) in subsection (b) in the second sentence by
striking ``State and'' and inserting ``State government
and''; and
(3) by adding at the end the following:
``(c) Implementation.--The Secretary shall develop a
process for the oversight and monitoring, on an annual basis,
of the compliance of each State with the guidance issued under
subsection (b).''.
(b) Survey.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall conduct a survey of
all States to determine what percentage of projects carried out
under title 23, United States Code, in each State utilize
private sector sources for surveying and mapping services.
SEC. 1518. BUY AMERICA PROVISIONS.
Section 313 of title 23, United States Code, is amended by
adding at the end the following:
``(g) Application to Highway Programs.--The requirements
under this section shall apply to all contracts eligible for
assistance under this chapter for a project carried out within
the scope of the applicable finding, determination, or decision
under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), regardless of the funding source of such
contracts, if at least 1 contract for the project is funded
with amounts made available to carry out this title.''.
SEC. 1519. CONSOLIDATION OF PROGRAMS; REPEAL OF OBSOLETE PROVISIONS.
(a) Consolidation of Programs.--From administrative funds
made available under section 104(a) of title 23, United States
Code, not less than $3,000,000 for each of fiscal years 2013
and 2014 shall be made available--
(1) to carry out safety-related activities,
including--
(A) to carry out the operation lifesaver
program--
(i) to provide public information
and education programs to help prevent
and reduce motor vehicle accidents,
injuries, and fatalities; and
(ii) to improve driver performance
at railway-highway crossings; and
(B) to provide work zone safety grants in
accordance with subsections (a) and (b) of
section 1409 of the SAFETEA-LU (23 U.S.C. 401
note; 119 Stat. 1232); and
(2) to operate authorized safety-related
clearinghouses, including--
(A) the national work zone safety
information clearinghouse authorized by section
358(b)(2) of the National Highway System
Designation Act of 1995 (23 U.S.C. 401 note;
109 Stat. 625); and
(B) a public road safety clearinghouse in
accordance with section 1411(a) of the SAFETEA-
LU (23 U.S.C. 402 note; 119 Stat. 1234).
(b) Repeals.--
(1) Title 23.--
(A) In general.--Sections 105, 110, 117,
124, 151, 155, 157, 160, 212, 216, 303, and 309
of title 23, United States Code, are repealed.
(B) Set asides.--Section 118 of title 23,
United States Code, is amended--
(i) by striking subsection (c); and
(ii) by redesignating subsections
(d) and (e) as subsections (c) and (d),
respectively.
(2) SAFETEA-LU.--Sections 1302, 1305, 1306, 1803,
1804, 1907, and 1958 of SAFETEA-LU (Public Law 109-59)
are repealed.
(3) Additional.--Section 1132 of the Energy
Independence and Security Act of 2007 (Public Law 110-
140; 121 Stat. 1763) is repealed.
(c) Conforming Amendments.--
(1) Title analysis.--
(A) Chapter 1.--The analysis for chapter 1
of title 23, United States Code, is amended by
striking the items relating to sections 105,
110, 117, 124, 151, 155, 157, and 160.
(B) Chapter 2.--The analysis for chapter 2
of title 23, United States Code, is amended by
striking the items relating to sections 212 and
216.
(C) Chapter 3.--The analysis for chapter 3
of title 23, United States Code, is amended by
striking the items relating to sections 303 and
309.
(2) Table of contents.--The table of contents
contained in section 1(b) of SAFETEA-LU (Public Law
109-59; 119 Stat. 1144) is amended by striking the
items relating to sections 1302, 1305, 1306, 1803,
1804, 1907, and 1958.
(3) Section 104.--Section 104(e) of title 23,
United States Code, is amended by striking ``, 105,''.
(4) Section 109.--Section 109(q) of title 23,
United States Code, is amended by striking ``in
accordance with section 303 or''.
(5) Section 118.--Section 118(b) of title 23,
United States Code, is amended--
(A) by striking paragraph (1) and all that
follows through the heading of paragraph (2);
and
(B) by striking ``(other than for
Interstate construction)''.
(6) Section 130.--Section 130 of title 23, United
States Code, is amended--
(A) in subsection (e) by striking ``section
104(b)(5)'' and inserting ``section
104(b)(3)'';
(B) in subsection (f)(1) by inserting ``as
in effect on the day before the date of
enactment of the MAP-21'' after ``section
104(b)(3)(A)''; and
(C) in subsection (l) by striking
paragraphs (3) and (4).
(7) Section 131.--Section 131(m) of title 23,
United States Code, is amended by striking ``Subject to
approval by the Secretary in accordance with the
program of projects approval process of section 105, a
State'' and inserting ``A State''.
(8) Section 133.--Paragraph (13) of section 133(b)
of title 23, United States Code (as amended by section
1108(a)(3)), is amended by striking ``under section
303.''
(9) Section 142.--Section 142 of title 23, United
States Code, is amended--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) by striking ``motor
vehicles (other than rail)''
and inserting ``buses'';
(II) by striking
``(hereafter in this section
referred to as `buses')'';
(III) by striking
``Federal-aid systems'' and
inserting ``Federal-aid
highways''; and
(IV) by striking ``Federal-
aid system'' and inserting
``Federal-aid highway''; and
(ii) in paragraph (2)--
(I) by striking ``as a
project on the the surface
transportation program for'';
and
(II) by striking ``section
104(b)(3)'' and inserting
``section 104(b)(2)'';
(B) in subsection (b) by striking
``104(b)(4)'' and inserting ``104(b)(1)'';
(C) in subsection (c)--
(i) by striking ``system'' in each
place it appears and inserting
``highway''; and
(ii) by striking ``highway
facilities'' and inserting ``highways
eligible under the program that is the
source of the funds'';
(D) in subsection (e)(2) by striking
``Notwithstanding section 209(f)(1) of the
Highway Revenue Act of 1956, the Highway Trust
Fund shall be available for making expenditures
to meet obligations resulting from projects
authorized by subsection (a)(2) of this section
and such projects'' and inserting ``Projects
authorized by subsection (a)(2)''; and
(E) in subsection (f) by striking ``exits''
and inserting ``exists''.
(10) Section 145.--Section 145(b) of title 23,
United States Code, is amended by striking ``section
117 of this title,''.
(11) Section 218.--Section 218 of title 23, United
States Code, is amended--
(A) in subsection (a)--
(i) by striking the first two
sentences;
(ii) in the third sentence--
(I) by striking ``, in
addition to such funds,''; and
(II) by striking ``such
highway or'';
(iii) by striking the fourth
sentence and fifth sentences;
(B) by striking subsection (b); and
(C) by redesignating subsection (c) as
subsection (b).
(12) Section 610.--Section 610(d)(1)(B) of title
23, United States Code, is amended by striking ``under
section 105''.
SEC. 1520. DENALI COMMISSION.
The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is
amended--
(1) in section 305, by striking subsection (c) and
inserting the following:
``(c) Gifts.--
``(1) In general.--Except as provided in paragraph
(2), the Commission, on behalf of the United States,
may accept use, and dispose of gifts or donations of
services, property, or money for purposes of carrying
out this Act.
``(2) Conditional.--With respect to conditional
gifts--
``(A)(i) the Commission, on behalf of the
United States, may accept conditional gifts for
purposes of carrying out this Act, if approved
by the Federal Cochairperson; and
``(ii) the principal of and income from any
such conditional gift shall be held, invested,
reinvested, and used in accordance with the
condition applicable to the gift; but
``(B) no gift shall be accepted that is
conditioned on any expenditure not to be funded
from the gift or from the income generated by
the gift unless the expenditure has been
approved by Act of Congress.''; and
(2) by adding at the end the following:
``SEC. 311. TRANSFER OF FUNDS FROM OTHER FEDERAL AGENCIES.
``(a) In General.--Subject to subsection (c), for purposes
of this Act, the Commission may accept transfers of funds from
other Federal agencies.
``(b) Transfers.--Any Federal agency authorized to carry
out an activity that is within the authority of the Commission
may transfer to the Commission any appropriated funds for the
activity.
``(c) Treatment.--Any funds transferred to the Commission
under this subsection--
``(1) shall remain available until expended; and
``(2) may, to the extent necessary to carry out
this Act, be transferred to, and merged with, the
amounts made available by appropriations Acts for the
Commission by the Federal Cochairperson.''.
SEC. 1521. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION
POLICIES ACT OF 1970 AMENDMENTS.
(a) Moving and Related Expenses.--Section 202 of the
Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (42 U.S.C. 4622) is amended--
(1) in subsection (a)(4) by striking ``$10,000''
and inserting ``$25,000, as adjusted by regulation, in
accordance with section 213(d)''; and
(2) in the second sentence of subsection (c) by
striking ``$20,000'' and inserting ``$40,000, as
adjusted by regulation, in accordance with section
213(d)''.
(b) Replacement Housing for Homeowners.--The first sentence
of section 203(a)(1) of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (42 U.S.C.
4623(a)(1)) is amended--
(1) by striking ``$22,500'' and inserting
``$31,000, as adjusted by regulation, in accordance
with 213(d),''; and
(2) by striking ``one hundred and eighty days prior
to'' and inserting ``90 days before''.
(c) Replacement Housing for Tenants and Certain Others.--
Section 204 of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (42 U.S.C. 4624) is
amended--
(1) in the second sentence of subsection (a) by
striking ``$5,250'' and inserting ``$7,200, as adjusted
by regulation, in accordance with section 213(d)''; and
(2) in the second sentence of subsection (b) by
striking ``, except'' and all that follows through the
end of the subsection and inserting a period.
(d) Duties of Lead Agency.--Section 213 of the Uniform
Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (42 U.S.C. 4633) is amended--
(1) in subsection (b)--
(A) in paragraph (2) by striking ``and'' at
the end;
(B) in paragraph (3) by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) that each Federal agency that has programs or
projects requiring the acquisition of real property or
causing a displacement from real property subject to
the provisions of this Act shall provide to the lead
agency an annual summary report the describes the
activities conducted by the Federal agency.''; and
(2) by adding at the end the following:
``(d) Adjustment of Payments.--The head of the lead agency
may adjust, by regulation, the amounts of relocation payments
provided under sections 202(a)(4), 202(c), 203(a), and 204(a)
if the head of the lead agency determines that cost of living,
inflation, or other factors indicate that the payments should
be adjusted to meet the policy objectives of this Act.''.
(e) Agency Coordination.--Title II of the Uniform
Relocation Assistance and Real Property Acquisition Policies
Act of 1970 is amended by inserting after section 213 (42
U.S.C. 4633) the following:
``SEC. 214. AGENCY COORDINATION.
``(a) Agency Capacity.--Each Federal agency responsible for
funding or carrying out relocation and acquisition activities
shall have adequately trained personnel and such other
resources as are necessary to manage and oversee the relocation
and acquisition program of the Federal agency in accordance
with this Act.
``(b) Interagency Agreements.--Not later than 1 year after
the date of enactment of this section, each Federal agency
responsible for funding relocation and acquisition activities
(other than the agency serving as the lead agency) shall enter
into a memorandum of understanding with the lead agency that--
``(1) provides for periodic training of the
personnel of the Federal agency, which in the case of a
Federal agency that provides Federal financial
assistance, may include personnel of any displacing
agency that receives Federal financial assistance;
``(2) addresses ways in which the lead agency may
provide assistance and coordination to the Federal
agency relating to compliance with the Act on a program
or project basis; and
``(3) addresses the funding of the training,
assistance, and coordination activities provided by the
lead agency, in accordance with subsection (c).
``(c) Interagency Payments.--
``(1) In general.--For the fiscal year that begins
1 year after the date of enactment of this section, and
each fiscal year thereafter, each Federal agency
responsible for funding relocation and acquisition
activities (other than the agency serving as the lead
agency) shall transfer to the lead agency for the
fiscal year, such funds as are necessary, but not less
than $35,000, to support the training, assistance, and
coordination activities of the lead agency described in
subsection (b).
``(2) Included costs.--The cost to a Federal agency
of providing the funds described in paragraph (1) shall
be included as part of the cost of 1 or more programs
or projects undertaken by the Federal agency or with
Federal financial assistance that result in the
displacement of persons or the acquisition of real
property.''.
(f) Cooperation With Federal Agencies.--Section 308 of
title 23, United States Code, is amended by striking subsection
(a) and inserting the following:
``(a) Authorized Activities.--
``(1) In general.--The Secretary may perform, by
contract or otherwise, authorized engineering or other
services in connection with the survey, construction,
maintenance, or improvement of highways for other
Federal agencies, cooperating foreign countries, and
State cooperating agencies.
``(2) Inclusions.--Services authorized under
paragraph (1) may include activities authorized under
section 214 of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970.
``(3) Reimbursement.--Reimbursement for services
carried out under this subsection (including
depreciation on engineering and road-building
equipment) shall be credited to the applicable
appropriation.''.
(g) Effective Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall take
effect on the date of enactment of this Act.
(2) Exception.--The amendments made by subsections
(a) through (c) shall take effect 2 years after the
date of enactment of this Act.
SEC. 1522. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE
WEIGHT RESTRICTIONS.
Section 1023(h) of the Intermodal Surface Transportation
Efficiency Act of 1991 (23 U.S.C. 127 note; Public Law 102-240)
is amended--
(1) in the heading of paragraph (1) by striking
``temporary exemption'' and inserting ``exemption'';
(2) in paragraph (1)--
(A) in the matter preceding subparagraph
(A) by striking ``, for the period beginning on
October 6, 1992, and ending on October 1,
2009,'';
(B) in subparagraph (A) by striking ``or''
at the end;
(C) in subparagraph (B) by striking the
period at the end and inserting ``; or''; and
(D) by adding at the end the following:
``(C) any motor home (as defined in section
571.3 of title 49, Code of Federal Regulations
(or successor regulation)).''; and
(3) in paragraph (2)(A) by striking ``For the
period beginning on the date of enactment of this
subparagraph and ending on September 30, 2009, a'' and
inserting ``A''.
SEC. 1523. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES.
Section 1805(a) of the SAFETEA-LU (23 U.S.C. 144 note; 119
Stat. 1459) is amended by striking ``highway bridge replacement
and rehabilitation program under section 144'' and inserting
``national highway performance program under section 119''.
SEC. 1524. USE OF YOUTH SERVICE AND CONSERVATION CORPS.
(a) In General.--The Secretary shall encourage the States
and regional transportation planning agencies to enter into
contracts and cooperative agreements with qualified youth
service or conservation corps, as defined in sections 122(a)(2)
of Public Law 101-610 (42 U.S.C. 12572(a)(2)) and 106(c)(3) of
Public Law 103-82 (42 U.S.C. 12656(c)(3)) to perform
appropriate projects eligible under sections 162, 206, 213, and
217 of title 23, United States Code, and under section 1404 of
the SAFETEA-LU (119 Stat. 1228).
(b) Requirements.--Under any contract or cooperative
agreement entered into with a qualified youth service or
conservation corps under this section, the Secretary shall--
(1) set the amount of a living allowance or rate of
pay for each participant in such corps at--
(A) such amount or rate as required under
State law in a State with such requirements; or
(B) for corps in States not described in
subparagraph (A), at such amount or rate as
determined by the Secretary, not to exceed the
maximum living allowance authorized by section
140 of Public Law 101-610 (42 U.S.C. 12594);
and
(2) not subject such corps to the requirements of
section 112 of title 23, United States Code.
SEC. 1525. STATE AUTONOMY FOR CULVERT PIPE SELECTION.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall modify section 635.411 of title 23,
Code of Federal Regulations (as in effect on the date of
enactment of this Act), to ensure that States shall have the
autonomy to determine culvert and storm sewer material types to
be included in the construction of a project on a Federal-aid
highway.
SEC. 1526. EVACUATION ROUTES.
Each State shall give adequate consideration to the needs
of evacuation routes in the State, including such routes
serving or adjacent to facilities operated by the Armed Forces,
when allocating funds apportioned to the State under title 23,
United States Code, for the construction of Federal-aid
highways.
SEC. 1527. CONSOLIDATION OF GRANTS.
(a) Definitions.--In this section, the term ``recipient''
means--
(1) a State, local, or tribal government,
including--
(A) a territory of the United States;
(B) a transit agency;
(C) a port authority;
(D) a metropolitan planning organization;
or
(E) any other political subdivision of a
State or local government;
(2) a multistate or multijurisdictional group, if
each member of the group is an entity described in
paragraph (1); and
(3) a public-private partnership, if both parties
are engaged in building the project.
(b) Consolidation.--
(1) In general.--A recipient that receives multiple
grant awards from the Department to support 1
multimodal project may request that the Secretary
designate 1 modal administration in the Department to
be the lead administering authority for the overall
project.
(2) New starts.--Any project that includes funds
awarded under section 5309 of title 49, United States
Code, shall be exempt from consolidation under this
section unless the grant recipient requests the Federal
Transit Administration to be the lead administering
authority.
(3) Review.--
(A) In general.--Not later than 30 days
after the date on which a request under
paragraph (1) is made, the Secretary shall
review the request and approve or deny the
designation of a single modal administration as
the lead administering authority and point of
contact for the Department.
(B) Notification.--
(i) In general.--The Secretary
shall notify the requestor of the
decision of the Secretary under
subparagraph (A) in such form and at
such time as the Secretary and the
requestor agree.
(ii) Denial.--If a request is
denied, the Secretary shall provide the
requestor with a detailed explanation
of the reasoning of the Secretary with
the notification under clause (i).
(c) Duties.--
(1) In general.--A modal administration designated
as a lead administering authority under this section
shall--
(A) be responsible for leading and
coordinating the integrated project management
team, which shall consist of all of the other
modal administrations in the Department
relating to the multimodal project; and
(B) to the extent feasible during the first
30 days of carrying out the multimodal project,
identify overlapping or duplicative regulatory
requirements that exist for the project and
propose a single, streamlined approach to
meeting all of the applicable regulatory
requirements through the activities described
in subsection (d).
(2) Administration.--
(A) In general.--The Secretary shall
transfer all amounts that have been awarded for
the multimodal project to the modal
administration designated as the lead
administering authority.
(B) Option.--
(i) In general.--Participation
under this section shall be optional
for recipients, and no recipient shall
be required to participate.
(ii) Secretarial duties.--The
Secretary is not required to identify
every recipient that may be eligible to
participate under this section.
(d) Cooperation.--
(1) In general.--The Secretary and modal
administrations with relevant jurisdiction over a
multimodal project should cooperate on project review
and delivery activities at the earliest practicable
time.
(2) Purposes.--The purposes of the cooperation
under paragraph (1) are--
(A) to avoid delays and duplication of
effort later in the process;
(B) to prevent potential conflicts; and
(C) to ensure that planning and project
development decisions are made in a streamlined
manner and consistent with applicable law.
(e) Applicability.--Nothing in this section shall--
(1) supersede, amend, or modify the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) or any other Federal environmental law; or
(2) affect the responsibility of any Federal
officer to comply with or enforce any law described in
paragraph (1).
SEC. 1528. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.
(a) Sense of the Senate.--It is the Sense of the Senate
that the timely completion of the Appalachian development
highway system is a transportation priority in the national
interest.
(b) Modified Federal Share for Projects on ADHS.--For
fiscal years 2012 through 2021, the Federal share payable for
the cost of constructing highways and access roads on the
Appalachian development highway system under section 14501 of
title 40, United States Code, with funds made available to a
State for fiscal year 2012 or a previous fiscal year for the
Appalachian development highway system program, or with funds
made available for fiscal year 2012 or a previous fiscal year
for a specific project, route, or corridor on that system,
shall be 100 percent.
(c) Federal Share for Other Funds Used on ADHS.--For fiscal
years 2012 through 2021, the Federal share payable for the cost
of constructing highways and access roads on the Appalachian
development highway system under section 14501 of title 40,
United States Code, with Federal funds apportioned to a State
for a program other than the Appalachian development highway
system program shall be 100 percent.
(d) Completion Plan.--
(1) In general.--Subject to paragraph (2), not
later than 1 year after the date of enactment of the
MAP-21, each State represented on the Appalachian
Regional Commission shall establish a plan for the
completion of the designated corridors of the
Appalachian development highway system within the
State, including annual performance targets, with a
target completion date.
(2) Significant uncompleted miles.--If the
percentage of remaining Appalachian development highway
system needs for a State, according to the latest cost
to complete estimate for the Appalachian development
highway system, is greater than 15 percent of the total
cost to complete estimate for the entire Appalachian
development highway system, the State shall not
establish a plan under paragraph (1) that would result
in a reduction of obligated funds for the Appalachian
development highway system within the State for any
subsequent fiscal year.
SEC. 1529. ENGINEERING JUDGMENT.
Not later than 90 days after the date of enactment of this
Act, the Secretary shall issue guidance to State transportation
departments clarifying that the standards, guidance, and
options for design and application of traffic control devices
provided in the Manual on Uniform Traffic Control Devices
should not be considered a substitute for engineering judgment.
SEC. 1530. TRANSPORTATION TRAINING AND EMPLOYMENT PROGRAMS.
To encourage the development of careers in the
transportation field, the Secretary of Education and the
Secretary of Labor are encouraged to use funds for training and
employment education programs--
(1) to develop programs for transportation-related
careers and trades; and
(2) to work with the Secretary to carry out
programs developed under paragraph (1).
SEC. 1531. NOTICE OF CERTAIN GRANT AWARDS.
(a) Definition of Covered Grant Award.--In this section,
the term ``covered grant award'' means a grant award--
(1) made--
(A) by the Department; and
(B) with funds made available under this
Act; and
(2) in an amount equal to or greater than $500,000.
(b) Notice.--Except to the extent otherwise expressly
provided in another provision of law, at least 3 business days
before a covered grant award is announced, the Secretary shall
provide to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on
Environment and Public Works of the Senate written notice of
the covered grant award.
SEC. 1532. BUDGET JUSTIFICATION.
The Secretary shall submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public
Works of the Senate a budget justification for each agency of
the Department concurrently with the annual budget submission
of the President to Congress under section 1105(a) of title 31,
United States Code.
SEC. 1533. PROHIBITION ON USE OF FUNDS FOR AUTOMATED TRAFFIC
ENFORCEMENT.
(a) Definition of Automated Traffic Enforcement System.--In
this section, the term ``automated traffic enforcement system''
means any camera that captures an image of a vehicle for the
purposes of traffic law enforcement.
(b) Use of Funds.--Except as provided in subsection (c),
for fiscal years 2013 and 2014, funds apportioned to a State
under section 104(b)(3) of title 23, United States Code, may
not be used for any program to purchase, operate, or maintain
an automated traffic enforcement system.
(c) Exception.--Subsection (b) shall not apply to automated
traffic enforcement systems used to improve safety in school
zones.
SEC. 1534. PUBLIC-PRIVATE PARTNERSHIPS.
(a) Best Practices.--The Secretary shall compile, and make
available to the public on the website of the Department, best
practices on how States, public transportation agencies, and
other public officials can work with the private sector in the
development, financing, construction, and operation of
transportation facilities.
(b) Contents.--The best practices compiled under subsection
(a) shall include polices and techniques to ensure that the
interests of the traveling public and State and local
governments are protected in any agreement entered into with
the private sector for the development, financing,
construction, and operation of transportation facilities.
(c) Technical Assistance.--The Secretary, on request, may
provide technical assistance to States, public transportation
agencies, and other public officials regarding proposed public-
private partnership agreements for the development, financing,
construction, and operation of transportation facilities,
including assistance in analyzing whether the use of a public-
private partnership agreement would provide value compared with
traditional public delivery methods.
(d) Standard Transaction Contracts.--
(1) Development.--Not later than 18 months after
the date of enactment of this Act, the Secretary shall
develop standard public-private partnership transaction
model contracts for the most popular types of public-
private partnerships for the development, financing,
construction, and operation of transportation
facilities.
(2) Use.--The Secretary shall encourage States,
public transportation agencies, and other public
officials to use the model contracts as a base template
when developing their own public-private partnership
agreements for the development, financing,
construction, and operation of transportation
facilities.
SEC. 1535. REPORT ON HIGHWAY TRUST FUND EXPENDITURES.
(a) Initial Report.--Not later than 150 days after the date
of enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report describing the
activities funded from the Highway Trust Fund during each of
fiscal years 2009 through 2011, including for purposes other
than construction and maintenance of highways and bridges.
(b) Updates.--Not later than 5 years after the date on
which the report is submitted under subsection (a) and every 5
years thereafter, the Comptroller General of the United States
shall submit to Congress a report that updates the information
provided in the report under that subsection for the applicable
5-year period.
(c) Inclusions.--A report submitted under subsection (a) or
(b) shall include information similar to the information
included in the report of the Government Accountability Office
numbered ``GAO-09-729R'' and entitled ``Highway Trust Fund
Expenditures on Purposes Other Than Construction and
Maintenance of Highways and Bridges During Fiscal Years 2004-
2008''.
SEC. 1536. SENSE OF CONGRESS ON HARBOR MAINTENANCE.
(a) Findings.--Congress finds that--
(1) there are 926 coastal, Great Lakes, and inland
harbors maintained by the Corps of Engineers;
(2) according to the Bureau of Transportation
Statistics--
(A) in 2009, the ports and waterways of the
United States handled more than 2,200,000,000
short tons of imports, exports, and domestic
shipments; and
(B) in 2010, United States ports were
responsible for more than $1,400,000,000,000 in
waterborne imports and exports;
(3) according to the Congressional Research
Service, full channel dimensions are, on average,
available approximately \1/3\ of the time at the 59
harbors of the United States with the highest use
rates;
(4) in 1986, Congress created the Harbor
Maintenance Trust Fund to provide funds for the
operation and maintenance of the navigation channels of
the United States;
(5) in fiscal year 2012, the Harbor Maintenance
Trust Fund is expected to grow from $6,280,000,000 to
$7,011,000,000, an increase of approximately 13
percent;
(6) despite growth of the Harbor Maintenance Trust
Fund, expenditures from the Harbor Maintenance Trust
Fund have not been sufficiently spent; and
(7) inadequate investment in dredging needs is
restricting access to the ports of the United States
for domestic shipping, imports, and exports and
therefore threatening the economic competitiveness of
the United States.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Administration should request full use of
the Harbor Maintenance Trust Fund for operating and
maintaining the navigation channels of the United
States;
(2) the amounts in the Harbor Maintenance Trust
Fund should be fully expended to operate and maintain
the navigation channels of the United States; and
(3) Congress should ensure that other programs,
projects, and activities of the Civil Works Program of
the Corps of Engineers, especially those programs,
projects, and activities relating to inland navigation
and flood control, are not adversely impacted.
SEC. 1537. ESTIMATE OF HARBOR MAINTENANCE NEEDS.
For fiscal year 2014 and each fiscal year thereafter, the
President's budget request submitted pursuant to section 1105
of title 31, United States Code, shall include--
(1) an estimate of the nationwide average
availability, expressed as a percentage, of the
authorized depth and authorized width of all navigation
channels authorized to be maintained using
appropriations from the Harbor Maintenance Trust Fund
that would result from harbor maintenance activities to
be funded by the budget request; and
(2) an estimate of the average annual amount of
appropriations from the Harbor Maintenance Trust Fund
that would be required to increase that average
availability to 95 percent over a 3-year period.
SEC. 1538. ASIAN CARP.
(a) Definitions.--In this section:
(1) Hydrological separation.--The term
``hydrological separation'' means a physical separation
on the Chicago Area Waterway System that--
(A) would disconnect the Mississippi River
watershed from the Lake Michigan watershed; and
(B) shall be designed to be adequate in
scope to prevent the transfer of all aquatic
species between each of those bodies of water.
(2) Secretary.--The term ``Secretary'' means the
Secretary of the Army, acting through the Chief of
Engineers.
(b) Expedited Study and Report.--
(1) In general.--The Secretary shall--
(A) expedite completion of the report for
the study authorized by section 3061(d) of the
Water Resources Development Act of 2007 (Public
Law 110-114; 121 Stat. 1121); and
(B) if the Secretary determines a project
is justified in the completed report, proceed
directly to project preconstruction engineering
and design.
(2) Focus.--In expediting the completion of the
study and report under paragraph (1), the Secretary
shall focus on--
(A) the prevention of the spread of aquatic
nuisance species between the Great Lakes and
Mississippi River Basins, such as through the
permanent hydrological separation of the Great
Lakes and Mississippi River Basins; and
(B) the watersheds of the following rivers
and tributaries associated with the Chicago
Area Waterway System:
(i) The Illinois River, at and in
the vicinity of Chicago, Illinois.
(ii) The Chicago River, Calumet
River, North Shore Channel, Chicago
Sanitary and Ship Canal, and Cal-Sag
Channel in the State of Illinois.
(iii) The Grand Calumet River and
Little Calumet River in the States of
Illinois and Indiana.
(3) Efficient use of funds.--The Secretary shall
ensure the efficient use of funds to maximize the
timely completion of the study and report under
paragraph (1).
(4) Deadline.--The Secretary shall complete the
report under paragraph (1) by not later than 18 months
after the date of enactment of this Act.
(5) Interim report.--Not later than 90 days after
the date of enactment of this Act, the Secretary shall
submit to the Committees on Appropriations of the House
of Representatives and Senate, the Committee on
Environment and Public Works of the Senate, and the
Committee on Transportation and Infrastructure of the
House of Representatives a report describing--
(A) interim milestones that will be met
prior to final completion of the study and
report under paragraph (1); and
(B) funding necessary for completion of the
study and report under paragraph (1), including
funding necessary for completion of each
interim milestone identified under subparagraph
(A).
SEC. 1539. REST AREAS.
(a) Agreements Relating to Use of and Access to Rights-of-
way--Interstate System.--Section 111 of title 23, United States
Code, is amended--
(1) in subsection (a) in the second sentence by
striking the period and inserting ``and will not change
the boundary of any right-of-way on the Interstate
System to accommodate construction of, or afford access
to, an automotive service station or other commercial
establishment.'';
(2) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(3) by inserting after subsection (a) the
following:
``(b) Rest Areas.--
``(1) In general.--Notwithstanding subsection (a),
the Secretary shall permit a State to acquire,
construct, operate, and maintain a rest area along a
highway on the Interstate System in such State.
``(2) Limited activities.--The Secretary shall
permit limited commercial activities within a rest area
under paragraph (1), if the activities are available
only to customers using the rest area and are limited
to--
``(A) commercial advertising and media
displays if such advertising and displays are--
``(i) exhibited solely within any
facility constructed in the rest area;
and
``(ii) not legible from the main
traveled way;
``(B) items designed to promote tourism in
the State, limited to books, DVDs, and other
media;
``(C) tickets for events or attractions in
the State of a historical or tourism-related
nature;
``(D) travel-related information, including
maps, travel booklets, and hotel coupon
booklets; and
``(E) lottery machines, provided that the
priority afforded to blind vendors under
subsection (c) applies to this subparagraph.
``(3) Private operators.--A State may permit a
private party to operate such commercial activities.
``(4) Limitation on use of revenues.--A State shall
use any revenues received from the commercial
activities in a rest area under this section to cover
the costs of acquiring, constructing, operating, and
maintaining rest areas in the State.''.
(b) Control of Outdoor Advertising.--Section 131(i) of
title 23, United States Code, is amended by adding at the end
the following:
``A State may permit the installation of signs that acknowledge
the sponsorship of rest areas within such rest areas or along
the main traveled way of the system, provided that such signs
shall not affect the safe and efficient utilization of the
Interstate System and the primary system. The Secretary shall
establish criteria for the installation of such signs on the
main traveled way, including criteria pertaining to the
placement of rest area sponsorship acknowledgment signs in
relation to the placement of advance guide signs for rest
areas.''.
Subtitle F--Gulf Coast Restoration
SEC. 1601. SHORT TITLE.
This subtitle may be cited as the ``Resources and
Ecosystems Sustainability, Tourist Opportunities, and Revived
Economies of the Gulf Coast States Act of 2012''.
SEC. 1602. GULF COAST RESTORATION TRUST FUND.
(a) Establishment.--There is established in the Treasury of
the United States a trust fund to be known as the ``Gulf Coast
Restoration Trust Fund'' (referred to in this section as the
``Trust Fund''), consisting of such amounts as are deposited in
the Trust Fund under this Act or any other provision of law.
(b) Transfers.--The Secretary of the Treasury shall deposit
in the Trust Fund an amount equal to 80 percent of all
administrative and civil penalties paid by responsible parties
after the date of enactment of this Act in connection with the
explosion on, and sinking of, the mobile offshore drilling unit
Deepwater Horizon pursuant to a court order, negotiated
settlement, or other instrument in accordance with section 311
of the Federal Water Pollution Control Act (33 U.S.C. 1321).
(c) Expenditures.--Amounts in the Trust Fund, including
interest earned on advances to the Trust Fund and proceeds from
investment under subsection (d), shall--
(1) be available for expenditure, without further
appropriation, solely for the purpose and eligible
activities of this subtitle and the amendments made by
this subtitle; and
(2) remain available until expended, without fiscal
year limitation.
(d) Investment.--Amounts in the Trust Fund shall be
invested in accordance with section 9702 of title 31, United
States Code, and any interest on, and proceeds from, any such
investment shall be available for expenditure in accordance
with this subtitle and the amendments made by this subtitle.
(e) Administration.--Not later than 180 days after the date
of enactment of this Act, after providing notice and an
opportunity for public comment, the Secretary of the Treasury,
in consultation with the Secretary of the Interior and the
Secretary of Commerce, shall establish such procedures as the
Secretary determines to be necessary to deposit amounts in, and
expend amounts from, the Trust Fund pursuant to this subtitle,
including--
(1) procedures to assess whether the programs and
activities carried out under this subtitle and the
amendments made by this subtitle achieve compliance
with applicable requirements, including procedures by
which the Secretary of the Treasury may determine
whether an expenditure by a Gulf Coast State or coastal
political subdivision (as those terms are defined in
section 311 of the Federal Water Pollution Control Act
(33 U.S.C. 1321)) pursuant to such a program or
activity achieves compliance;
(2) auditing requirements to ensure that amounts in
the Trust Fund are expended as intended; and
(3) procedures for identification and allocation of
funds available to the Secretary under other provisions
of law that may be necessary to pay the administrative
expenses directly attributable to the management of the
Trust Fund.
(f) Sunset.--The authority for the Trust Fund shall
terminate on the date all funds in the Trust Fund have been
expended.
SEC. 1603. GULF COAST NATURAL RESOURCES RESTORATION AND ECONOMIC
RECOVERY.
Section 311 of the Federal Water Pollution Control Act (33
U.S.C. 1321) is amended--
(1) in subsection (a)--
(A) in paragraph (25)(B), by striking
``and'' at the end;
(B) in paragraph (26)(D), by striking the
period at the end and inserting a semicolon;
and
(C) by adding at the end the following:
``(27) the term `best available science' means
science that--
``(A) maximizes the quality, objectivity,
and integrity of information, including
statistical information;
``(B) uses peer-reviewed and publicly
available data; and
``(C) clearly documents and communicates
risks and uncertainties in the scientific basis
for such projects;
``(28) the term `Chairperson' means the Chairperson
of the Council;
``(29) the term `coastal political subdivision'
means any local political jurisdiction that is
immediately below the State level of government,
including a county, parish, or borough, with a
coastline that is contiguous with any portion of the
United States Gulf of Mexico;
``(30) the term `Comprehensive Plan' means the
comprehensive plan developed by the Council pursuant to
subsection (t);
``(31) the term `Council' means the Gulf Coast
Ecosystem Restoration Council established pursuant to
subsection (t);
``(32) the term `Deepwater Horizon oil spill' means
the blowout and explosion of the mobile offshore
drilling unit Deepwater Horizon that occurred on April
20, 2010, and resulting hydrocarbon releases into the
environment;
``(33) the term `Gulf Coast region' means--
``(A) in the Gulf Coast States, the coastal
zones (as that term is defined in section 304
of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453)), except that, in this section,
the term `coastal zones' includes land within
the coastal zones that is held in trust by, or
the use of which is by law subject solely to
the discretion of, the Federal Government or
officers or agents of the Federal Government))
that border the Gulf of Mexico;
``(B) any adjacent land, water, and
watersheds, that are within 25 miles of the
coastal zones described in subparagraph (A) of
the Gulf Coast States; and
``(C) all Federal waters in the Gulf of
Mexico;
``(34) the term `Gulf Coast State' means any of the
States of Alabama, Florida, Louisiana, Mississippi, and
Texas; and
``(35) the term `Trust Fund' means the Gulf Coast
Restoration Trust Fund established pursuant to section
1602 of the Resources and Ecosystems Sustainability,
Tourist Opportunities, and Revived Economies of the
Gulf Coast States Act of 2012.'';
(2) in subsection (s), by inserting ``except as
provided in subsection (t)'' before the period at the
end; and
(3) by adding at the end the following:
``(t) Gulf Coast Restoration and Recovery.--
``(1) State allocation and expenditures.--
``(A) In general.--Of the total amounts
made available in any fiscal year from the
Trust Fund, 35 percent shall be available, in
accordance with the requirements of this
section, to the Gulf Coast States in equal
shares for expenditure for ecological and
economic restoration of the Gulf Coast region
in accordance with this subsection.
``(B) Use of funds.--
``(i) Eligible activities in the
gulf coast region.--Subject to clause
(iii), amounts provided to the Gulf
Coast States under this subsection may
only be used to carry out 1 or more of
the following activities in the Gulf
Coast region:
``(I) Restoration and
protection of the natural
resources, ecosystems,
fisheries, marine and wildlife
habitats, beaches, and coastal
wetlands of the Gulf Coast
region.
``(II) Mitigation of damage
to fish, wildlife, and natural
resources.
``(III) Implementation of a
federally approved marine,
coastal, or comprehensive
conservation management plan,
including fisheries monitoring.
``(IV) Workforce
development and job creation.
``(V) Improvements to or on
State parks located in coastal
areas affected by the Deepwater
Horizon oil spill.
``(VI) Infrastructure
projects benefitting the
economy or ecological
resources, including port
infrastructure.
``(VII) Coastal flood
protection and related
infrastructure.
``(VIII) Planning
assistance.
``(IX) Administrative costs
of complying with this
subsection.
``(ii) Activities to promote
tourism and seafood in the gulf coast
region.--Amounts provided to the Gulf
Coast States under this subsection may
be used to carry out 1 or more of the
following activities:
``(I) Promotion of tourism
in the Gulf Coast Region,
including recreational fishing.
``(II) Promotion of the
consumption of seafood
harvested from the Gulf Coast
Region.
``(iii) Limitation.--
``(I) In general.--Of the
amounts received by a Gulf
Coast State under this
subsection, not more than 3
percent may be used for
administrative costs eligible
under clause (i)(IX).
``(II) Claims for
compensation.--Activities
funded under this subsection
may not be included in any
claim for compensation paid out
by the Oil Spill Liability
Trust Fund after the date of
enactment of this subsection.
``(C) Coastal political subdivisions.--
``(i) Distribution.--In the case of
a State where the coastal zone includes
the entire State--
``(I) 75 percent of funding
shall be provided directly to
the 8 disproportionately
affected counties impacted by
the Deepwater Horizon oil
spill; and
``(II) 25 percent shall be
provided directly to
nondisproportionately impacted
counties within the State.
``(ii) Nondisproportionately
impacted counties.--The total amounts
made available to coastal political
subdivisions in the State of Florida
under clause (i)(II) shall be
distributed according to the following
weighted formula:
``(I) 34 percent based on
the weighted average of the
population of the county.
``(II) 33 percent based on
the weighted average of the
county per capita sales tax
collections estimated for
fiscal year 2012.
``(III) 33 percent based on
the inverse proportion of the
weighted average distance from
the Deepwater Horizon oil rig
to each of the nearest and
farthest points of the
shoreline.
``(D) Louisiana.--
``(i) In general.--Of the total
amounts made available to the State of
Louisiana under this paragraph:
``(I) 70 percent shall be
provided directly to the State
in accordance with this
subsection.
``(II) 30 percent shall be
provided directly to parishes
in the coastal zone (as defined
in section 304 of the Coastal
Zone Management Act of 1972 (16
U.S.C. 1453)) of the State of
Louisiana according to the
following weighted formula:
``(aa) 40 percent
based on the weighted
average of miles of the
parish shoreline oiled.
``(bb) 40 percent
based on the weighted
average of the
population of the
parish.
``(cc) 20 percent
based on the weighted
average of the land
mass of the parish.
``(ii) Conditions.--
``(I) Land use plan.--As a
condition of receiving amounts
allocated under this paragraph,
the chief executive of the
eligible parish shall certify
to the Governor of the State
that the parish has completed a
comprehensive land use plan.
``(II) Other conditions.--A
coastal political subdivision
receiving funding under this
paragraph shall meet all of the
conditions in subparagraph (E).
``(E) Conditions.--As a condition of
receiving amounts from the Trust Fund, a Gulf
Coast State, including the entities described
in subparagraph (F), or a coastal political
subdivision shall--
``(i) agree to meet such
conditions, including audit
requirements, as the Secretary of the
Treasury determines necessary to ensure
that amounts disbursed from the Trust
Fund will be used in accordance with
this subsection;
``(ii) certify in such form and in
such manner as the Secretary of the
Treasury determines necessary that the
project or program for which the Gulf
Coast State or coastal political
subdivision is requesting amounts--
``(I) is designed to
restore and protect the natural
resources, ecosystems,
fisheries, marine and wildlife
habitats, beaches, coastal
wetlands, or economy of the
Gulf Coast;
``(II) carries out 1 or
more of the activities
described in clauses (i) and
(ii) of subparagraph (B);
``(III) was selected based
on meaningful input from the
public, including broad-based
participation from individuals,
businesses, and nonprofit
organizations; and
``(IV) in the case of a
natural resource protection or
restoration project, is based
on the best available science;
``(iii) certify that the project or
program and the awarding of a contract
for the expenditure of amounts received
under this paragraph are consistent
with the standard procurement rules and
regulations governing a comparable
project or program in that State,
including all applicable competitive
bidding and audit requirements; and
``(iv) develop and submit a
multiyear implementation plan for the
use of such amounts, which may include
milestones, projected completion of
each activity, and a mechanism to
evaluate the success of each activity
in helping to restore and protect the
Gulf Coast region impacted by the
Deepwater Horizon oil spill.
``(F) Approval by state entity, task force,
or agency.--The following Gulf Coast State
entities, task forces, or agencies shall carry
out the duties of a Gulf Coast State pursuant
to this paragraph:
``(i) Alabama.--
``(I) In general.--In the
State of Alabama, the Alabama
Gulf Coast Recovery Council,
which shall be comprised of
only the following:
``(aa) The Governor
of Alabama, who shall
also serve as
Chairperson and preside
over the meetings of
the Alabama Gulf Coast
Recovery Council.
``(bb) The Director
of the Alabama State
Port Authority, who
shall also serve as
Vice Chairperson and
preside over the
meetings of the Alabama
Gulf Coast Recovery
Council in the absence
of the Chairperson.
``(cc) The Chairman
of the Baldwin County
Commission.
``(dd) The
President of the Mobile
County Commission.
``(ee) The Mayor of
the city of Bayou La
Batre.
``(ff) The Mayor of
the town of Dauphin
Island.
``(gg) The Mayor of
the city of Fairhope.
``(hh) The Mayor of
the city of Gulf
Shores.
``(ii) The Mayor of
the city of Mobile.
``(jj) The Mayor of
the city of Orange
Beach.
``(II) Vote.--Each member
of the Alabama Gulf Coast
Recovery Council shall be
entitled to 1 vote.
``(III) Majority vote.--All
decisions of the Alabama Gulf
Coast Recovery Council shall be
made by majority vote.
``(IV) Limitation on
administrative expenses.--
Administrative duties for the
Alabama Gulf Coast Recovery
Council may only be performed
by public officials and
employees that are subject to
the ethics laws of the State of
Alabama.
``(ii) Louisiana.--In the State of
Louisiana, the Coastal Protection and
Restoration Authority of Louisiana.
``(iii) Mississippi.--In the State
of Mississippi, the Mississippi
Department of Environmental Quality.
``(iv) Texas.--In the State of
Texas, the Office of the Governor or an
appointee of the Office of the
Governor.
``(G) Compliance with eligible
activities.--If the Secretary of the Treasury
determines that an expenditure by a Gulf Coast
State or coastal political subdivision of
amounts made available under this subsection
does not meet one of the activities described
in clauses (i) and (ii) of subparagraph (B),
the Secretary shall make no additional amounts
from the Trust Fund available to that Gulf
Coast State or coastal political subdivision
until such time as an amount equal to the
amount expended for the unauthorized use--
``(i) has been deposited by the
Gulf Coast State or coastal political
subdivision in the Trust Fund; or
``(ii) has been authorized by the
Secretary of the Treasury for
expenditure by the Gulf Coast State or
coastal political subdivision for a
project or program that meets the
requirements of this subsection.
``(H) Compliance with conditions.--If the
Secretary of the Treasury determines that a
Gulf Coast State or coastal political
subdivision does not meet the requirements of
this paragraph, including the conditions of
subparagraph (E), where applicable, the
Secretary of the Treasury shall make no amounts
from the Trust Fund available to that Gulf
Coast State or coastal political subdivision
until all conditions of this paragraph are met.
``(I) Public input.--In meeting any
condition of this paragraph, a Gulf Coast State
may use an appropriate procedure for public
consultation in that Gulf Coast State,
including consulting with one or more
established task forces or other entities, to
develop recommendations for proposed projects
and programs that would restore and protect the
natural resources, ecosystems, fisheries,
marine and wildlife habitats, beaches, coastal
wetlands, and economy of the Gulf Coast.
``(J) Previously approved projects and
programs.--A Gulf Coast State or coastal
political subdivision shall be considered to
have met the conditions of subparagraph (E) for
a specific project or program if, before the
date of enactment of the Resources and
Ecosystems Sustainability, Tourist
Opportunities, and Revived Economies of the
Gulf Coast States Act of 2012--
``(i) the Gulf Coast State or
coastal political subdivision has
established conditions for carrying out
projects and programs that are
substantively the same as the
conditions described in subparagraph
(E); and
``(ii) the applicable project or
program carries out 1 or more of the
activities described in clauses (i) and
(ii) of subparagraph (B).
``(K) Local preference.--In awarding
contracts to carry out a project or program
under this paragraph, a Gulf Coast State or
coastal political subdivision may give a
preference to individuals and companies that
reside in, are headquartered in, or are
principally engaged in business in the State of
project execution.
``(L) Unused funds.--Funds allocated to a
State or coastal political subdivision under
this paragraph shall remain in the Trust Fund
until such time as the State or coastal
political subdivision develops and submits a
plan identifying uses for those funds in
accordance with subparagraph (E)(iv).
``(M) Judicial review.--If the Secretary of
the Treasury determines that a Gulf Coast State
or coastal political subdivision does not meet
the requirements of this paragraph, including
the conditions of subparagraph (E), the Gulf
Coast State or coastal political subdivision
may obtain expedited judicial review within 90
days after that decision in a district court of
the United States, of appropriate jurisdiction
and venue, that is located within the State
seeking the review.
``(N) Cost-sharing.--
``(i) In general.--A Gulf Coast
State or coastal political subdivision
may use, in whole or in part, amounts
made available under this paragraph to
that Gulf Coast State or coastal
political subdivision to satisfy the
non-Federal share of the cost of any
project or program authorized by
Federal law that is an eligible
activity described in clauses (i) and
(ii) of subparagraph (B).
``(ii) Effect on other funds.--The
use of funds made available from the
Trust Fund to satisfy the non-Federal
share of the cost of a project or
program that meets the requirements of
clause (i) shall not affect the
priority in which other Federal funds
are allocated or awarded.
``(2) Council establishment and allocation.--
``(A) In general.--Of the total amount made
available in any fiscal year from the Trust
Fund, 30 percent shall be disbursed to the
Council to carry out the Comprehensive Plan.
``(B) Council expenditures.--
``(i) In general.--In accordance
with this paragraph, the Council shall
expend funds made available from the
Trust Fund to undertake projects and
programs, using the best available
science, that would restore and protect
the natural resources, ecosystems,
fisheries, marine and wildlife
habitats, beaches, coastal wetlands,
and economy of the Gulf Coast.
``(ii) Allocation and expenditure
procedures.--The Secretary of the
Treasury shall develop such conditions,
including audit requirements, as the
Secretary of the Treasury determines
necessary to ensure that amounts
disbursed from the Trust Fund to the
Council to implement the Comprehensive
Plan will be used in accordance with
this paragraph.
``(iii) Administrative expenses.--
Of the amounts received by the Council
under this paragraph, not more than 3
percent may be used for administrative
expenses, including staff.
``(C) Gulf coast ecosystem restoration
council.--
``(i) Establishment.--There is
established as an independent entity in
the Federal Government a council to be
known as the `Gulf Coast Ecosystem
Restoration Council'.
``(ii) Membership.--The Council
shall consist of the following members,
or in the case of a Federal agency, a
designee at the level of the Assistant
Secretary or the equivalent:
``(I) The Secretary of the
Interior.
``(II) The Secretary of the
Army.
``(III) The Secretary of
Commerce.
``(IV) The Administrator of
the Environmental Protection
Agency.
``(V) The Secretary of
Agriculture.
``(VI) The head of the
department in which the Coast
Guard is operating.
``(VII) The Governor of the
State of Alabama.
``(VIII) The Governor of
the State of Florida.
``(IX) The Governor of the
State of Louisiana.
``(X) The Governor of the
State of Mississippi.
``(XI) The Governor of the
State of Texas.
``(iii) Alternate.--A Governor
appointed to the Council by the
President may designate an alternate to
represent the Governor on the Council
and vote on behalf of the Governor.
``(iv) Chairperson.--From among the
Federal agency members of the Council,
the representatives of States on the
Council shall select, and the President
shall appoint, 1 Federal member to
serve as Chairperson of the Council.
``(v) Presidential appointment.--
All Council members shall be appointed
by the President.
``(vi) Council actions.--
``(I) In general.--The
following actions by the
Council shall require the
affirmative vote of the
Chairperson and a majority of
the State members to be
effective:
``(aa) Approval of
a Comprehensive Plan
and future revisions to
a Comprehensive Plan.
``(bb) Approval of
State plans pursuant to
paragraph (3)(B)(iv).
``(cc) Approval of
reports to Congress
pursuant to clause
(vii)(VII).
``(dd) Approval of
transfers pursuant to
subparagraph
(E)(ii)(I).
``(ee) Other
significant actions
determined by the
Council.
``(II) Quorum.--A majority
of State members shall be
required to be present for the
Council to take any significant
action.
``(III) Affirmative vote
requirement considered met.--
For approval of State plans
pursuant to paragraph
(3)(B)(iv), the certification
by a State member of the
Council that the plan satisfies
all requirements of clauses (i)
and (ii) of paragraph (3)(B),
when joined by an affirmative
vote of the Federal Chairperson
of the Council, shall be
considered to satisfy the
requirements for affirmative
votes under subclause (I).
``(IV) Public
transparency.--Appropriate
actions of the Council,
including significant actions
and associated deliberations,
shall be made available to the
public via electronic means
prior to any vote.
``(vii) Duties of council.--The
Council shall--
``(I) develop the
Comprehensive Plan and future
revisions to the Comprehensive
Plan;
``(II) identify as soon as
practicable the projects that--
``(aa) have been
authorized prior to the
date of enactment of
this subsection but not
yet commenced; and
``(bb) if
implemented quickly,
would restore and
protect the natural
resources, ecosystems,
fisheries, marine and
wildlife habitats,
beaches, barrier
islands, dunes, and
coastal wetlands of the
Gulf Coast region;
``(III) establish such
other 1 or more advisory
committees as may be necessary
to assist the Council,
including a scientific advisory
committee and a committee to
advise the Council on public
policy issues;
``(IV) collect and consider
scientific and other research
associated with restoration of
the Gulf Coast ecosystem,
including research,
observation, and monitoring
carried out pursuant to
sections 1604 and 1605 of the
Resources and Ecosystems
Sustainability, Tourist
Opportunities, and Revived
Economies of the Gulf Coast
States Act of 2012;
``(V) develop standard
terms to include in contracts
for projects and programs
awarded pursuant to the
Comprehensive Plan that provide
a preference to individuals and
companies that reside in, are
headquartered in, or are
principally engaged in business
in a Gulf Coast State;
``(VI) prepare an
integrated financial plan and
recommendations for coordinated
budget requests for the amounts
proposed to be expended by the
Federal agencies represented on
the Council for projects and
programs in the Gulf Coast
States; and
``(VII) submit to Congress
an annual report that--
``(aa) summarizes
the policies,
strategies, plans, and
activities for
addressing the
restoration and
protection of the Gulf
Coast region;
``(bb) describes
the projects and
programs being
implemented to restore
and protect the Gulf
Coast region,
including--
``(AA) a
list of each
project and
program;
``(BB) an
identification
of the funding
provided to
projects and
programs
identified in
subitem (AA);
``(CC) an
identification
of each
recipient for
funding
identified in
subitem (BB);
and
``(DD) a
description of
the length of
time and
funding needed
to complete the
objectives of
each project
and program
identified in
subitem (AA);
``(cc) makes such
recommendations to
Congress for
modifications of
existing laws as the
Council determines
necessary to implement
the Comprehensive Plan;
``(dd) reports on
the progress on
implementation of each
project or program--
``(AA)
after 3 years
of ongoing
activity of the
project or
program, if
applicable; and
``(BB) on
completion of
the project or
program;
``(ee) includes the
information required to
be submitted under
section 1605(c)(4) of
the Resources and
Ecosystems
Sustainability, Tourist
Opportunities, and
Revived Economies of
the Gulf Coast States
Act of 2012; and
``(ff) submits the
reports required under
item (dd) to--
``(AA) the
Committee on
Science, Space,
and Technology,
the Committee
on Natural
Resources, the
Committee on
Transportation
and
Infrastructure,
and the
Committee on
Appropriations
of the House of
Representatives;
and
``(BB) the
Committee on
Environment and
Public Works,
the Committee
on Commerce,
Science, and
Transportation,
the Committee
on Energy and
Natural
Resources, and
the Committee
on
Appropriations
of the Senate.
``(viii) Application of federal
advisory committee act.--The Council,
or any other advisory committee
established under this subparagraph,
shall not be considered an advisory
committee under the Federal Advisory
Committee Act (5 U.S.C. App.).
``(ix) Sunset.--The authority for
the Council, and any other advisory
committee established under this
subparagraph, shall terminate on the
date all funds in the Trust Fund have
been expended.
``(D) Comprehensive plan.--
``(i) Proposed plan.--
``(I) In general.--Not
later than 180 days after the
date of enactment of the
Resources and Ecosystems
Sustainability, Tourist
Opportunities, and Revived
Economies of the Gulf Coast
States Act of 2012, the
Chairperson, on behalf of the
Council and after appropriate
public input, review, and
comment, shall publish a
proposed plan to restore and
protect the natural resources,
ecosystems, fisheries, marine
and wildlife habitats, beaches,
and coastal wetlands of the
Gulf Coast region.
``(II) Inclusions.--The
proposed plan described in
subclause (I) shall include and
incorporate the findings and
information prepared by the
President's Gulf Coast
Restoration Task Force.
``(ii) Publication.--
``(I) Initial plan.--Not
later than 1 year after the
date of enactment of the
Resources and Ecosystems
Sustainability, Tourist
Opportunities, and Revived
Economies of the Gulf Coast
States Act of 2012 and after
notice and opportunity for
public comment, the
Chairperson, on behalf of the
Council and after approval by
the Council, shall publish in
the Federal Register the
initial Comprehensive Plan to
restore and protect the natural
resources, ecosystems,
fisheries, marine and wildlife
habitats, beaches, and coastal
wetlands of the Gulf Coast
region.
``(II) Cooperation with
gulf coast restoration task
force.--The Council shall
develop the initial
Comprehensive Plan in close
coordination with the
President's Gulf Coast
Restoration Task Force.
``(III) Considerations.--In
developing the initial
Comprehensive Plan and
subsequent updates, the Council
shall consider all relevant
findings, reports, or research
prepared or funded under
section 1604 or 1605 of the
Resources and Ecosystems
Sustainability, Tourist
Opportunities, and Revived
Economies of the Gulf Coast
States Act of 2012.
``(IV) Contents.--The
initial Comprehensive Plan
shall include--
``(aa) such
provisions as are
necessary to fully
incorporate in the
Comprehensive Plan the
strategy, projects, and
programs recommended by
the President's Gulf
Coast Restoration Task
Force;
``(bb) a list of
any project or program
authorized prior to the
date of enactment of
this subsection but not
yet commenced, the
completion of which
would further the
purposes and goals of
this subsection and of
the Resources and
Ecosystems
Sustainability, Tourist
Opportunities, and
Revived Economies of
the Gulf Coast States
Act of 2012;
``(cc) a
description of the
manner in which amounts
from the Trust Fund
projected to be made
available to the
Council for the
succeeding 10 years
will be allocated; and
``(dd) subject to
available funding in
accordance with clause
(iii), a prioritized
list of specific
projects and programs
to be funded and
carried out during the
3-year period
immediately following
the date of publication
of the initial
Comprehensive Plan,
including a table that
illustrates the
distribution of
projects and programs
by the Gulf Coast
State.
``(V) Plan updates.--The
Council shall update--
``(aa) the
Comprehensive Plan
every 5 years in a
manner comparable to
the manner established
in this subparagraph
for each 5-year period
for which amounts are
expected to be made
available to the Gulf
Coast States from the
Trust Fund; and
``(bb) the 3-year
list of projects and
programs described in
subclause (IV)(dd)
annually.
``(iii) Restoration priorities.--
Except for projects and programs
described in clause (ii)(IV)(bb), in
selecting projects and programs to
include on the 3-year list described in
clause (ii)(IV)(dd), based on the best
available science, the Council shall
give highest priority to projects that
address 1 or more of the following
criteria:
``(I) Projects that are
projected to make the greatest
contribution to restoring and
protecting the natural
resources, ecosystems,
fisheries, marine and wildlife
habitats, beaches, and coastal
wetlands of the Gulf Coast
region, without regard to
geographic location within the
Gulf Coast region.
``(II) Large-scale projects
and programs that are projected
to substantially contribute to
restoring and protecting the
natural resources, ecosystems,
fisheries, marine and wildlife
habitats, beaches, and coastal
wetlands of the Gulf Coast
ecosystem.
``(III) Projects contained
in existing Gulf Coast State
comprehensive plans for the
restoration and protection of
natural resources, ecosystems,
fisheries, marine and wildlife
habitats, beaches, and coastal
wetlands of the Gulf Coast
region.
``(IV) Projects that
restore long-term resiliency of
the natural resources,
ecosystems, fisheries, marine
and wildlife habitats, beaches,
and coastal wetlands most
impacted by the Deepwater
Horizon oil spill.
``(E) Implementation.--
``(i) In general.--The Council,
acting through the Federal agencies
represented on the Council and Gulf
Coast States, shall expend funds made
available from the Trust Fund to carry
out projects and programs adopted in
the Comprehensive Plan.
``(ii) Administrative
responsibility.--
``(I) In general.--Primary
authority and responsibility
for each project and program
included in the Comprehensive
Plan shall be assigned by the
Council to a Gulf Coast State
represented on the Council or a
Federal agency.
``(II) Transfer of
amounts.--Amounts necessary to
carry out each project or
program included in the
Comprehensive Plan shall be
transferred by the Secretary of
the Treasury from the Trust
Fund to that Federal agency or
Gulf Coast State as the project
or program is implemented,
subject to such conditions as
the Secretary of the Treasury,
in consultation with the
Secretary of the Interior and
the Secretary of Commerce,
established pursuant to section
1602 of the Resources and
Ecosystems Sustainability,
Tourist Opportunities, and
Revived Economies of the Gulf
Coast States Act of 2012.
``(III) Limitation on
transfers.--
``(aa) Grants to
nongovernmental
entities.--In the case
of funds transferred to
a Federal or State
agency under subclause
(II), the agency shall
not make 1 or more
grants or cooperative
agreements to a
nongovernmental entity
if the total amount
provided to the entity
would equal or exceed
10 percent of the total
amount provided to the
agency for that
particular project or
program, unless the 1
or more grants have
been reported in
accordance with item
(bb).
``(bb) Reporting of
grantees.--At least 30
days prior to making a
grant or entering into
a cooperative agreement
described in item (aa),
the name of each
grantee, including the
amount and purpose of
each grant or
cooperative agreement,
shall be published in
the Federal Register
and delivered to the
congressional
committees listed in
subparagraph
(C)(vii)(VII)(ff).
``(cc) Annual
reporting of
grantees.--Annually,
the name of each
grantee, including the
amount and purposes of
each grant or
cooperative agreement,
shall be published in
the Federal Register
and delivered to
Congress as part of the
report submitted
pursuant to
subparagraph
(C)(vii)(VII).
``(IV) Project and program
limitation.--The Council, a
Federal agency, or a State may
not carry out a project or
program funded under this
paragraph outside of the Gulf
Coast region.
``(F) Coordination.--The Council and the
Federal members of the Council may develop
memoranda of understanding establishing
integrated funding and implementation plans
among the member agencies and authorities.
``(3) Oil spill restoration impact allocation.--
``(A) In general.--
``(i) Disbursement.--Of the total
amount made available from the Trust
Fund, 30 percent shall be disbursed
pursuant to the formula in clause (ii)
to the Gulf Coast States on the
approval of the plan described in
subparagraph (B)(i).
``(ii) Formula.--Subject to
subparagraph (B), for each Gulf Coast
State, the amount disbursed under this
paragraph shall be based on a formula
established by the Council by
regulation that is based on a weighted
average of the following criteria:
``(I) 40 percent based on
the proportionate number of
miles of shoreline in each Gulf
Coast State that experienced
oiling on or before April 10,
2011, compared to the total
number of miles of shoreline
that experienced oiling as a
result of the Deepwater Horizon
oil spill.
``(II) 40 percent based on
the inverse proportion of the
average distance from the
mobile offshore drilling unit
Deepwater Horizon at the time
of the explosion to the nearest
and farthest point of the
shoreline that experienced
oiling of each Gulf Coast
State.
``(III) 20 percent based on
the average population in the
2010 decennial census of
coastal counties bordering the
Gulf of Mexico within each Gulf
Coast State.
``(iii) Minimum allocation.--The
amount disbursed to a Gulf Coast State
for each fiscal year under clause (ii)
shall be at least 5 percent of the
total amounts made available under this
paragraph.
``(B) Disbursement of funds.--
``(i) In general.--The Council
shall disburse amounts to the
respective Gulf Coast States in
accordance with the formula developed
under subparagraph (A) for projects,
programs, and activities that will
improve the ecosystems or economy of
the Gulf Coast region, subject to the
condition that each Gulf Coast State
submits a plan for the expenditure of
amounts disbursed under this paragraph
that meets the following criteria:
``(I) All projects,
programs, and activities
included in the plan are
eligible activities pursuant to
clauses (i) and (ii) of
paragraph (1)(B).
``(II) The projects,
programs, and activities
included in the plan contribute
to the overall economic and
ecological recovery of the Gulf
Coast.
``(III) The plan takes into
consideration the Comprehensive
Plan and is consistent with the
goals and objectives of the
Plan, as described in paragraph
(2)(B)(i).
``(ii) Funding.--
``(I) In general.--Except
as provided in subclause (II),
the plan described in clause
(i) may use not more than 25
percent of the funding made
available for infrastructure
projects eligible under
subclauses (VI) and (VII) of
paragraph (1)(B)(i).
``(II) Exception.--The plan
described in clause (i) may
propose to use more than 25
percent of the funding made
available for infrastructure
projects eligible under
subclauses (VI) and (VII) of
paragraph (1)(B)(i) if the plan
certifies that--
``(aa) ecosystem
restoration needs in
the State will be
addressed by the
projects in the
proposed plan; and
``(bb) additional
investment in
infrastructure is
required to mitigate
the impacts of the
Deepwater Horizon Oil
Spill to the ecosystem
or economy.
``(iii) Development.--The plan
described in clause (i) shall be
developed by--
``(I) in the State of
Alabama, the Alabama Gulf Coast
Recovery Council established
under paragraph (1)(F)(i);
``(II) in the State of
Florida, a consortia of local
political subdivisions that
includes at a minimum 1
representative of each affected
county;
``(III) in the State of
Louisiana, the Coastal
Protection and Restoration
Authority of Louisiana;
``(IV) in the State of
Mississippi, the Office of the
Governor or an appointee of the
Office of the Governor; and
``(V) in the State of
Texas, the Office of the
Governor or an appointee of the
Office of the Governor.
``(iv) Approval.--Not later than 60
days after the date on which a plan is
submitted under clause (i), the Council
shall approve or disapprove the plan
based on the conditions of clause (i).
``(C) Disapproval.--If the Council
disapproves a plan pursuant to subparagraph
(B)(iv), the Council shall--
``(i) provide the reasons for
disapproval in writing; and
``(ii) consult with the State to
address any identified deficiencies
with the State plan.
``(D) Failure to submit adequate plan.--If
a State fails to submit an adequate plan under
this paragraph, any funds made available under
this paragraph shall remain in the Trust Fund
until such date as a plan is submitted and
approved pursuant to this paragraph.
``(E) Judicial review.--If the Council
fails to approve or take action within 60 days
on a plan, as described in subparagraph
(B)(iv), the State may obtain expedited
judicial review within 90 days of that decision
in a district court of the United States, of
appropriate jurisdiction and venue, that is
located within the State seeking the review.
``(F) Cost-sharing.--
``(i) In general.--A Gulf Coast
State or coastal political subdivision
may use, in whole or in part, amounts
made available to that Gulf Coast State
or coastal political subdivision under
this paragraph to satisfy the non-
Federal share of any project or program
that--
``(I) is authorized by
other Federal law; and
``(II) is an eligible
activity described in clause
(i) or (ii) of paragraph
(1)(B).
``(ii) Effect on other funds.--The
use of funds made available from the
Trust Fund under this paragraph to
satisfy the non-Federal share of the
cost of a project or program described
in clause (i) shall not affect the
priority in which other Federal funds
are allocated or awarded.
``(4) Authorization of interest transfers.--Of the
total amount made available for any fiscal year from
the Trust Fund that is equal to the interest earned by
the Trust Fund and proceeds from investments made by
the Trust Fund in the preceding fiscal year--
``(A) 50 percent shall be divided equally
between--
``(i) the Gulf Coast Ecosystem
Restoration Science, Observation,
Monitoring, and Technology program
authorized in section 1604 of the
Resources and Ecosystems
Sustainability, Tourist Opportunities,
and Revived Economies of the Gulf Coast
States Act of 2012; and
``(ii) the centers of excellence
research grants authorized in section
1605 of that Act; and
``(B) 50 percent shall be made available to
the Gulf Coast Ecosystem Restoration Council to
carry out the Comprehensive Plan pursuant to
paragraph (2).''.
SEC. 1604. GULF COAST ECOSYSTEM RESTORATION SCIENCE, OBSERVATION,
MONITORING, AND TECHNOLOGY PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator''
means the Administrator of the National Oceanic and
Atmospheric Administration.
(2) Commission.--The term ``Commission'' means the
Gulf States Marine Fisheries Commission.
(3) Director.--The term ``Director'' means the
Director of the United States Fish and Wildlife
Service.
(4) Program.--The term ``program'' means the Gulf
Coast Ecosystem Restoration Science, Observation,
Monitoring, and Technology program established under
this section.
(b) Establishment of Program.--
(1) In general.--Not later than 180 days after the
date of enactment of this Act, the Administrator, in
consultation with the Director, shall establish the
Gulf Coast Ecosystem Restoration Science, Observation,
Monitoring, and Technology program to carry out
research, observation, and monitoring to support, to
the maximum extent practicable, the long-term
sustainability of the ecosystem, fish stocks, fish
habitat, and the recreational, commercial, and charter
fishing industry in the Gulf of Mexico.
(2) Expenditure of funds.--For each fiscal year,
amounts made available to carry out this subsection may
be expended for, with respect to the Gulf of Mexico--
(A) marine and estuarine research;
(B) marine and estuarine ecosystem
monitoring and ocean observation;
(C) data collection and stock assessments;
(D) pilot programs for--
(i) fishery independent data; and
(ii) reduction of exploitation of
spawning aggregations; and
(E) cooperative research.
(3) Cooperation with the commission.--For each
fiscal year, amounts made available to carry out this
subsection may be transferred to the Commission to
establish a fisheries monitoring and research program,
with respect to the Gulf of Mexico.
(4) Consultation.--The Administrator and the
Director shall consult with the Regional Gulf of Mexico
Fishery Management Council and the Commission in
carrying out the program.
(c) Species Included.--The research, monitoring,
assessment, and programs eligible for amounts made available
under the program shall include all marine, estuarine,
aquaculture, and fish species in State and Federal waters of
the Gulf of Mexico.
(d) Research Priorities.--In distributing funding under
this subsection, priority shall be given to integrated, long-
term projects that--
(1) build on, or are coordinated with, related
research activities; and
(2) address current or anticipated marine
ecosystem, fishery, or wildlife management information
needs.
(e) Duplication.--In carrying out this section, the
Administrator, in consultation with the Director, shall seek to
avoid duplication of other research and monitoring activities.
(f) Coordination With Other Programs.--The Administrator,
in consultation with the Director, shall develop a plan for the
coordination of projects and activities between the program and
other existing Federal and State science and technology
programs in the States of Alabama, Florida, Louisiana,
Mississippi, and Texas, as well as between the centers of
excellence.
(g) Limitation on Expenditures.--
(1) In general.--Not more than 3 percent of funds
provided in subsection (h) shall be used for
administrative expenses.
(2) NOAA.--The funds provided in subsection (h) may
not be used--
(A) for any existing or planned research
led by the National Oceanic and Atmospheric
Administration, unless agreed to in writing by
the grant recipient;
(B) to implement existing regulations or
initiate new regulations promulgated or
proposed by the National Oceanic and
Atmospheric Administration; or
(C) to develop or approve a new limited
access privilege program (as that term is used
in section 303A of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C.
1853a)) for any fishery under the jurisdiction
of the South Atlantic, Mid-Atlantic, New
England, or Gulf of Mexico Fishery Management
Councils.
(h) Funding.--Of the total amount made available for each
fiscal year for the Gulf Coast Restoration Trust Fund
established under section 1602, 2.5 percent shall be available
to carry out the program.
(i) Sunset.--The program shall cease operations when all
funds in the Gulf Coast Restoration Trust Fund established
under section 1602 have been expended.
SEC. 1605. CENTERS OF EXCELLENCE RESEARCH GRANTS.
(a) In General.--Of the total amount made available for
each fiscal year from the Gulf Coast Restoration Trust Fund
established under section 1602, 2.5 percent shall be made
available to the Gulf Coast States (as defined in section
311(a) of the Federal Water Pollution Control Act (as added by
section 1603 of the Resources and Ecosystems Sustainability,
Tourist Opportunities, and Revived Economies of the Gulf Coast
States Act of 2012)), in equal shares, exclusively for grants
in accordance with subsection (c) to establish centers of
excellence to conduct research only on the Gulf Coast Region
(as defined in section 311 of the Federal Water Pollution
Control Act (33. U.S.C. 1321)).
(b) Approval by State Entity, Task Force, or Agency.--The
duties of a Gulf Coast State under this section shall be
carried out by the applicable Gulf Coast State entities, task
forces, or agencies listed in section 311(t)(1)(F) of the
Federal Water Pollution Control Act (as added by section 1603
of the Resources and Ecosystems Sustainability, Tourist
Opportunities, and Revived Economies of the Gulf Coast States
Act of 2012), and for the State of Florida, a consortium of
public and private research institutions within the State,
which shall include the Florida Department of Environmental
Protection and the Florida Fish and Wildlife Conservation
Commission, for that Gulf Coast State.
(c) Grants.--
(1) In general.--A Gulf Coast State shall use the
amounts made available to carry out this section to
award competitive grants to nongovernmental entities
and consortia in the Gulf Coast region (including
public and private institutions of higher education)
for the establishment of centers of excellence as
described in subsection (d).
(2) Application.--To be eligible to receive a grant
under this subsection, an entity or consortium
described in paragraph (1) shall submit to a Gulf Coast
State an application at such time, in such manner, and
containing such information as the Gulf Coast State
determines to be appropriate.
(3) Priority.--In awarding grants under this
subsection, a Gulf Coast State shall give priority to
entities and consortia that demonstrate the ability to
establish the broadest cross-section of participants
with interest and expertise in any discipline described
in subsection (d) on which the proposal of the center
of excellence will be focused.
(4) Reporting.--
(A) In general.--Each Gulf Coast State
shall provide annually to the Gulf Coast
Ecosystem Restoration Council established under
section 311(t)(2)(C) of the Federal Water
Pollution Control Act (as added by section 1603
of the Resources and Ecosystems Sustainability,
Tourist Opportunities, and Revived Economies of
the Gulf Coast States Act of 2012) information
regarding all grants, including the amount,
discipline or disciplines, and recipients of
the grants, and in the case of any grant
awarded to a consortium, the membership of the
consortium.
(B) Inclusion.--The Gulf Coast Ecosystem
Restoration Council shall include the
information received under subparagraph (A) in
the annual report to Congress of the Council
required under section 311(t)(2)(C)(vii)(VII)
of the Federal Water Pollution Control Act (as
added by section 1603 of the Resources and
Ecosystems Sustainability, Tourist
Opportunities, and Revived Economies of the
Gulf Coast States Act of 2012).
(d) Disciplines.--Each center of excellence shall focus on
science, technology, and monitoring in at least 1 of the
following disciplines:
(1) Coastal and deltaic sustainability, restoration
and protection, including solutions and technology that
allow citizens to live in a safe and sustainable manner
in a coastal delta in the Gulf Coast Region.
(2) Coastal fisheries and wildlife ecosystem
research and monitoring in the Gulf Coast Region.
(3) Offshore energy development, including research
and technology to improve the sustainable and safe
development of energy resources in the Gulf of Mexico.
(4) Sustainable and resilient growth, economic and
commercial development in the Gulf Coast Region.
(5) Comprehensive observation, monitoring, and
mapping of the Gulf of Mexico.
SEC. 1606. EFFECT.
(a) Definition of Deepwater Horizon Oil Spill.--In this
section, the term ``Deepwater Horizon oil spill'' has the
meaning given the term in section 311(a) of the Federal Water
Pollution Control Act (33 U.S.C. 1321(a)).
(b) Effect and Application.--Nothing in this subtitle or
any amendment made by this subtitle--
(1) supersedes or otherwise affects any other
provision of Federal law, including, in particular,
laws providing recovery for injury to natural resources
under the Oil Pollution Act of 1990 (33 U.S.C. 2701 et
seq.) and laws for the protection of public health and
the environment; or
(2) applies to any fine collected under section 311
of the Federal Water Pollution Control Act (33 U.S.C.
1321) for any incident other than the Deepwater Horizon
oil spill.
(c) Use of Funds.--Funds made available under this subtitle
may be used only for eligible activities specifically
authorized by this subtitle and the amendments made by this
subtitle.
SEC. 1607. RESTORATION AND PROTECTION ACTIVITY LIMITATIONS.
(a) Willing Seller.--Funds made available under this
subtitle may only be used to acquire land or interests in land
by purchase, exchange, or donation from a willing seller.
(b) Acquisition of Federal Land.--None of the funds made
available under this subtitle may be used to acquire land in
fee title by the Federal Government unless--
(1) the land is acquired by exchange or donation;
or
(2) the acquisition is necessary for the
restoration and protection of the natural resources,
ecosystems, fisheries, marine and wildlife habitats,
beaches, and coastal wetlands of the Gulf Coast region
and has the concurrence of the Governor of the State in
which the acquisition will take place.
SEC. 1608. INSPECTOR GENERAL.
The Office of the Inspector General of the Department of
the Treasury shall have authority to conduct, supervise, and
coordinate audits and investigations of projects, programs, and
activities funded under this subtitle and the amendments made
by this subtitle.
TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION
SEC. 2001. SHORT TITLE.
This title may be cited as the ``America Fast Forward
Financing Innovation Act of 2012''.
SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT OF
1998 AMENDMENTS.
Sections 601 through 609 of title 23, United States Code,
are amended to read as follows:
``Sec. 601. Generally applicable provisions
``(a) Definitions.--In this chapter, the following
definitions apply:
``(1) Contingent commitment.--The term `contingent
commitment' means a commitment to obligate an amount
from future available budget authority that is--
``(A) contingent on those funds being made
available in law at a future date; and
``(B) not an obligation of the Federal
Government.
``(2) Eligible project costs.--The term `eligible
project costs' means amounts substantially all of which
are paid by, or for the account of, an obligor in
connection with a project, including the cost of--
``(A) development phase activities,
including planning, feasibility analysis,
revenue forecasting, environmental review,
permitting, preliminary engineering and design
work, and other preconstruction activities;
``(B) construction, reconstruction,
rehabilitation, replacement, and acquisition of
real property (including land relating to the
project and improvements to land),
environmental mitigation, construction
contingencies, and acquisition of equipment;
and
``(C) capitalized interest necessary to
meet market requirements, reasonably required
reserve funds, capital issuance expenses, and
other carrying costs during construction.
``(3) Federal credit instrument.--The term `Federal
credit instrument' means a secured loan, loan
guarantee, or line of credit authorized to be made
available under this chapter with respect to a project.
``(4) Investment-grade rating.--The term
`investment-grade rating' means a rating of BBB minus,
Baa3, bbb minus, BBB (low), or higher assigned by a
rating agency to project obligations.
``(5) Lender.--The term `lender' means any non-
Federal qualified institutional buyer (as defined in
section 230.144A(a) of title 17, Code of Federal
Regulations (or any successor regulation), known as
Rule 144A(a) of the Securities and Exchange Commission
and issued under the Securities Act of 1933 (15 U.S.C.
77a et seq.)), including--
``(A) a qualified retirement plan (as
defined in section 4974(c) of the Internal
Revenue Code of 1986) that is a qualified
institutional buyer; and
``(B) a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of
1986) that is a qualified institutional buyer.
``(6) Letter of interest.--The term `letter of
interest' means a letter submitted by a potential
applicant prior to an application for credit assistance
in a format prescribed by the Secretary on the website
of the TIFIA program that--
``(A) describes the project and the
location, purpose, and cost of the project;
``(B) outlines the proposed financial plan,
including the requested credit assistance and
the proposed obligor;
``(C) provides a status of environmental
review; and
``(D) provides information regarding
satisfaction of other eligibility requirements
of the TIFIA program.
``(7) Line of credit.--The term `line of credit'
means an agreement entered into by the Secretary with
an obligor under section 604 to provide a direct loan
at a future date upon the occurrence of certain events.
``(8) Limited buydown.--The term `limited buydown'
means, subject to the conditions described in section
603(b)(4)(C), a buydown of the interest rate by the
obligor if the interest rate has increased between--
``(A)(i) the date on which a project
application acceptable to the Secretary is
submitted; or
``(ii) the date on which the Secretary
entered into a master credit agreement; and
``(B) the date on which the Secretary
executes the Federal credit instrument.
``(9) Loan guarantee.--The term `loan guarantee'
means any guarantee or other pledge by the Secretary to
pay all or part of the principal of and interest on a
loan or other debt obligation issued by an obligor and
funded by a lender.
``(10) Master credit agreement.--The term `master
credit agreement' means an agreement to extend credit
assistance for a program of projects secured by a
common security pledge (which shall receive an
investment grade rating from a rating agency), or for a
single project covered under section 602(b)(2) that
would--
``(A) make contingent commitments of 1 or
more secured loans or other Federal credit
instruments at future dates, subject to the
availability of future funds being made
available to carry out this chapter;
``(B) establish the maximum amounts and
general terms and conditions of the secured
loans or other Federal credit instruments;
``(C) identify the 1 or more dedicated non-
Federal revenue sources that will secure the
repayment of the secured loans or secured
Federal credit instruments;
``(D) provide for the obligation of funds
for the secured loans or secured Federal credit
instruments after all requirements have been
met for the projects subject to the master
credit agreement, including--
``(i) completion of an
environmental impact statement or
similar analysis required under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.);
``(ii) compliance with such other
requirements as are specified in
section 602(c); and
``(iii) the availability of funds
to carry out this chapter; and
``(E) require that contingent commitments
result in a financial close and obligation of
credit assistance not later than 3 years after
the date of entry into the master credit
agreement, or release of the commitment, unless
otherwise extended by the Secretary.
``(11) Obligor.--The term `obligor' means a party
that--
``(A) is primarily liable for payment of
the principal of or interest on a Federal
credit instrument; and
``(B) may be a corporation, partnership,
joint venture, trust, or governmental entity,
agency, or instrumentality.
``(12) Project.--The term `project' means--
``(A) any surface transportation project
eligible for Federal assistance under this
title or chapter 53 of title 49;
``(B) a project for an international bridge
or tunnel for which an international entity
authorized under Federal or State law is
responsible;
``(C) a project for intercity passenger bus
or rail facilities and vehicles, including
facilities and vehicles owned by the National
Railroad Passenger Corporation and components
of magnetic levitation transportation systems;
and
``(D) a project that--
``(i) is a project--
``(I) for a public freight
rail facility or a private
facility providing public
benefit for highway users by
way of direct freight
interchange between highway and
rail carriers;
``(II) for an intermodal
freight transfer facility;
``(III) for a means of
access to a facility described
in subclause (I) or (II);
``(IV) for a service
improvement for a facility
described in subclause (I) or
(II) (including a capital
investment for an intelligent
transportation system); or
``(V) that comprises a
series of projects described in
subclauses (I) through (IV)
with the common objective of
improving the flow of goods;
``(ii) may involve the combining of
private and public sector funds,
including investment of public funds in
private sector facility improvements;
``(iii) if located within the
boundaries of a port terminal, includes
only such surface transportation
infrastructure modifications as are
necessary to facilitate direct
intermodal interchange, transfer, and
access into and out of the port; and
``(iv) is composed of related
highway, surface transportation,
transit, rail, or intermodal capital
improvement projects eligible for
assistance under this section in order
to meet the eligible project cost
threshold under section 602, by
grouping related projects together for
that purpose, subject to the condition
that the credit assistance for the
projects is secured by a common pledge.
``(13) Project obligation.--The term `project
obligation' means any note, bond, debenture, or other
debt obligation issued by an obligor in connection with
the financing of a project, other than a Federal credit
instrument.
``(14) Rating agency.--The term `rating agency'
means a credit rating agency registered with the
Securities and Exchange Commission as a nationally
recognized statistical rating organization (as that
term is defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a))).
``(15) Rural infrastructure project.--The term
`rural infrastructure project' means a surface
transportation infrastructure project located in any
area other than a city with a population of more than
250,000 inhabitants within the city limits.
``(16) Secured loan.--The term `secured loan' means
a direct loan or other debt obligation issued by an
obligor and funded by the Secretary in connection with
the financing of a project under section 603.
``(17) State.--The term `State' has the meaning
given the term in section 101.
``(18) Subsidy amount.--The term `subsidy amount'
means the amount of budget authority sufficient to
cover the estimated long-term cost to the Federal
Government of a Federal credit instrument--
``(A) calculated on a net present value
basis; and
``(B) excluding administrative costs and
any incidental effects on governmental receipts
or outlays in accordance with the Federal
Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.).
``(19) Substantial completion.--The term
`substantial completion' means--
``(A) the opening of a project to vehicular
or passenger traffic; or
``(B) a comparable event, as determined by
the Secretary and specified in the credit
agreement.
``(20) TIFIA program.--The term `TIFIA program'
means the transportation infrastructure finance and
innovation program of the Department.
``(b) Treatment of Chapter.--For purposes of this title,
this chapter shall be treated as being part of chapter 1.
``Sec. 602. Determination of eligibility and project selection
``(a) Eligibility.--
``(1) In general.--A project shall be eligible to
receive credit assistance under this chapter if--
``(A) the entity proposing to carry out the
project submits a letter of interest prior to
submission of a formal application for the
project; and
``(B) the project meets the criteria
described in this subsection.
``(2) Creditworthiness.--
``(A) In general.--To be eligible for
assistance under this chapter, a project shall
satisfy applicable creditworthiness standards,
which, at a minimum, shall include--
``(i) a rate covenant, if
applicable;
``(ii) adequate coverage
requirements to ensure repayment;
``(iii) an investment grade rating
from at least 2 rating agencies on debt
senior to the Federal credit
instrument; and
``(iv) a rating from at least 2
rating agencies on the Federal credit
instrument, subject to the condition
that, with respect to clause (iii), if
the total amount of the senior debt and
the Federal credit instrument is less
than $75,000,000, 1 rating agency
opinion for each of the senior debt and
Federal credit instrument shall be
sufficient.
``(B) Senior debt.--Notwithstanding
subparagraph (A), in a case in which the
Federal credit instrument is the senior debt,
the Federal credit instrument shall be required
to receive an investment grade rating from at
least 2 rating agencies, unless the credit
instrument is for an amount less than
$75,000,000, in which case 1 rating agency
opinion shall be sufficient.
``(3) Inclusion in transportation plans and
programs.--A project shall satisfy the applicable
planning and programming requirements of sections 134
and 135 at such time as an agreement to make available
a Federal credit instrument is entered into under this
chapter.
``(4) Application.--A State, local government,
public authority, public-private partnership, or any
other legal entity undertaking the project and
authorized by the Secretary shall submit a project
application that is acceptable to the Secretary.
``(5) Eligible project costs.--
``(A) In general.--Except as provided in
subparagraph (B), to be eligible for assistance
under this chapter, a project shall have
eligible project costs that are reasonably
anticipated to equal or exceed the lesser of--
``(i)(I) $50,000,000; or
``(II) in the case of a rural
infrastructure project, $25,000,000;
and
``(ii) 33\1/3\ percent of the
amount of Federal highway assistance
funds apportioned for the most recently
completed fiscal year to the State in
which the project is located.
``(B) Intelligent transportation system
projects.--In the case of a project principally
involving the installation of an intelligent
transportation system, eligible project costs
shall be reasonably anticipated to equal or
exceed $15,000,000.
``(6) Dedicated revenue sources.--The applicable
Federal credit instrument shall be repayable, in whole
or in part, from--
``(A) tolls;
``(B) user fees;
``(C) payments owing to the obligor under a
public-private partnership; or
``(D) other dedicated revenue sources that
also secure or fund the project obligations.
``(7) Public sponsorship of private entities.--In
the case of a project that is undertaken by an entity
that is not a State or local government or an agency or
instrumentality of a State or local government, the
project that the entity is undertaking shall be
publicly sponsored as provided in paragraph (3).
``(8) Applications where obligor will be identified
later.--A State, local government, agency or
instrumentality of a State or local government, or
public authority may submit to the Secretary an
application under paragraph (4), under which a private
party to a public-private partnership will be--
``(A) the obligor; and
``(B) identified later through completion
of a procurement and selection of the private
party.
``(9) Beneficial effects.--The Secretary shall
determine that financial assistance for the project
under this chapter will--
``(A) foster, if appropriate, partnerships
that attract public and private investment for
the project;
``(B) enable the project to proceed at an
earlier date than the project would otherwise
be able to proceed or reduce the lifecycle
costs (including debt service costs) of the
project; and
``(C) reduce the contribution of Federal
grant assistance for the project.
``(10) Project readiness.--To be eligible for
assistance under this chapter, the applicant shall
demonstrate a reasonable expectation that the
contracting process for construction of the project can
commence by not later than 90 days after the date on
which a Federal credit instrument is obligated for the
project under this chapter.
``(b) Selection Among Eligible Projects.--
``(1) Establishment.--The Secretary shall establish
a rolling application process under which projects that
are eligible to receive credit assistance under
subsection (a) shall receive credit assistance on terms
acceptable to the Secretary, if adequate funds are
available to cover the subsidy costs associated with
the Federal credit instrument.
``(2) Adequate funding not available.--If the
Secretary fully obligates funding to eligible projects
in a fiscal year, and adequate funding is not available
to fund a credit instrument, a project sponsor of an
eligible project may elect to enter into a master
credit agreement and wait until the earlier of--
``(A) the following fiscal year; and
``(B) the fiscal year during which
additional funds are available to receive
credit assistance.
``(3) Preliminary rating opinion letter.--The
Secretary shall require each project applicant to
provide a preliminary rating opinion letter from at
least 1 rating agency--
``(A) indicating that the senior
obligations of the project, which may be the
Federal credit instrument, have the potential
to achieve an investment-grade rating; and
``(B) including a preliminary rating
opinion on the Federal credit instrument.
``(c) Federal Requirements.--
``(1) In general.--In addition to the requirements
of this title for highway projects, the requirements of
chapter 53 of title 49 for transit projects, and the
requirements of section 5333(a) of title 49 for rail
projects, the following provisions of law shall apply
to funds made available under this chapter and projects
assisted with those funds:
``(A) Title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.).
``(B) The National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.).
``(C) The Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970
(42 U.S.C. 4601 et seq.).
``(2) NEPA.--No funding shall be obligated for a
project that has not received an environmental
categorical exclusion, a finding of no significant
impact, or a record of decision under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
``(d) Application Processing Procedures.--
``(1) Notice of complete application.--Not later
than 30 days after the date of receipt of an
application under this section, the Secretary shall
provide to the applicant a written notice to inform the
applicant whether--
``(A) the application is complete; or
``(B) additional information or materials
are needed to complete the application.
``(2) Approval or denial of application.--Not later
than 60 days after the date of issuance of the written
notice under paragraph (1), the Secretary shall provide
to the applicant a written notice informing the
applicant whether the Secretary has approved or
disapproved the application.
``(e) Development Phase Activities.--Any credit instrument
secured under this chapter may be used to finance up to 100
percent of the cost of development phase activities as
described in section 601(a)(1)(A).
``Sec. 603. Secured loans
``(a) In General.--
``(1) Agreements.--Subject to paragraphs (2) and
(3), the Secretary may enter into agreements with 1 or
more obligors to make secured loans, the proceeds of
which shall be used--
``(A) to finance eligible project costs of
any project selected under section 602;
``(B) to refinance interim construction
financing of eligible project costs of any
project selected under section 602;
``(C) to refinance existing Federal credit
instruments for rural infrastructure projects;
or
``(D) to refinance long-term project
obligations or Federal credit instruments, if
the refinancing provides additional funding
capacity for the completion, enhancement, or
expansion of any project that--
``(i) is selected under section
602; or
``(ii) otherwise meets the
requirements of section 602.
``(2) Limitation on refinancing of interim
construction financing.--A loan under paragraph (1)
shall not refinance interim construction financing
under paragraph (1)(B) later than 1 year after the date
of substantial completion of the project.
``(3) Risk assessment.--Before entering into an
agreement under this subsection, the Secretary, in
consultation with the Director of the Office of
Management and Budget, shall determine an appropriate
capital reserve subsidy amount for each secured loan,
taking into account each rating letter provided by an
agency under section 602(b)(3)(B).
``(b) Terms and Limitations.--
``(1) In general.--A secured loan under this
section with respect to a project shall be on such
terms and conditions and contain such covenants,
representations, warranties, and requirements
(including requirements for audits) as the Secretary
determines to be appropriate.
``(2) Maximum amount.--The amount of a secured loan
under this section shall not exceed the lesser of 49
percent of the reasonably anticipated eligible project
costs or if the secured loan does not receive an
investment grade rating, the amount of the senior
project obligations.
``(3) Payment.--A secured loan under this section--
``(A) shall--
``(i) be payable, in whole or in
part, from--
``(I) tolls;
``(II) user fees;
``(III) payments owing to
the obligor under a public-
private partnership; or
``(IV) other dedicated
revenue sources that also
secure the senior project
obligations; and
``(ii) include a rate covenant,
coverage requirement, or similar
security feature supporting the project
obligations; and
``(B) may have a lien on revenues described
in subparagraph (A), subject to any lien
securing project obligations.
``(4) Interest rate.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), the interest rate on
a secured loan under this section shall be not
less than the yield on United States Treasury
securities of a similar maturity to the
maturity of the secured loan on the date of
execution of the loan agreement.
``(B) Rural infrastructure projects.--
``(i) In general.--The interest
rate of a loan offered to a rural
infrastructure project under this
chapter shall be at \1/2\ of the
Treasury Rate in effect on the date of
execution of the loan agreement.
``(ii) Application.--The rate
described in clause (i) shall only
apply to any portion of a loan the
subsidy cost of which is funded by
amounts set aside for rural
infrastructure projects under section
608(a)(3)(A).
``(C) Limited buydowns.--The interest rate
of a secured loan under this section may not be
lowered by more than the lower of--
``(i) 1\1/2\ percentage points (150
basis points); or
``(ii) the amount of the increase
in the interest rate.
``(5) Maturity date.--The final maturity date of
the secured loan shall be the lesser of--
``(A) 35 years after the date of
substantial completion of the project; and
``(B) if the useful life of the capital
asset being financed is of a lesser period, the
useful life of the asset.
``(6) Nonsubordination.--
``(A) In general.--Except as provided in
subparagraph (B), the secured loan shall not be
subordinated to the claims of any holder of
project obligations in the event of bankruptcy,
insolvency, or liquidation of the obligor.
``(B) Preexisting indenture.--
``(i) In general.--The Secretary
shall waive the requirement under
subparagraph (A) for a public agency
borrower that is financing ongoing
capital programs and has outstanding
senior bonds under a preexisting
indenture, if--
``(I) the secured loan is
rated in the A category or
higher;
``(II) the secured loan is
secured and payable from
pledged revenues not affected
by project performance, such as
a tax-backed revenue pledge or
a system-backed pledge of
project revenues; and
``(III) the TIFIA program
share of eligible project costs
is 33 percent or less.
``(ii) Limitation.--If the
Secretary waives the nonsubordination
requirement under this subparagraph--
``(I) the maximum credit
subsidy to be paid by the
Federal Government shall be not
more than 10 percent of the
principal amount of the secured
loan; and
``(II) the obligor shall be
responsible for paying the
remainder of the subsidy cost,
if any.
``(7) Fees.--The Secretary may establish fees at a
level sufficient to cover all or a portion of the costs
to the Federal Government of making a secured loan
under this section.
``(8) Non-federal share.--The proceeds of a secured
loan under this chapter may be used for any non-Federal
share of project costs required under this title or
chapter 53 of title 49, if the loan is repayable from
non-Federal funds.
``(9) Maximum federal involvement.--The total
Federal assistance provided on a project receiving a
loan under this chapter shall not exceed 80 percent of
the total project cost.
``(c) Repayment.--
``(1) Schedule.--The Secretary shall establish a
repayment schedule for each secured loan under this
section based on--
``(A) the projected cash flow from project
revenues and other repayment sources; and
``(B) the useful life of the project.
``(2) Commencement.--Scheduled loan repayments of
principal or interest on a secured loan under this
section shall commence not later than 5 years after the
date of substantial completion of the project.
``(3) Deferred payments.--
``(A) In general.--If, at any time after
the date of substantial completion of the
project, the project is unable to generate
sufficient revenues to pay the scheduled loan
repayments of principal and interest on the
secured loan, the Secretary may, subject to
subparagraph (C), allow the obligor to add
unpaid principal and interest to the
outstanding balance of the secured loan.
``(B) Interest.--Any payment deferred under
subparagraph (A) shall--
``(i) continue to accrue interest
in accordance with subsection (b)(4)
until fully repaid; and
``(ii) be scheduled to be amortized
over the remaining term of the loan.
``(C) Criteria.--
``(i) In general.--Any payment
deferral under subparagraph (A) shall
be contingent on the project meeting
criteria established by the Secretary.
``(ii) Repayment standards.--The
criteria established pursuant to clause
(i) shall include standards for
reasonable assurance of repayment.
``(4) Prepayment.--
``(A) Use of excess revenues.--Any excess
revenues that remain after satisfying scheduled
debt service requirements on the project
obligations and secured loan and all deposit
requirements under the terms of any trust
agreement, bond resolution, or similar
agreement securing project obligations may be
applied annually to prepay the secured loan
without penalty.
``(B) Use of proceeds of refinancing.--The
secured loan may be prepaid at any time without
penalty from the proceeds of refinancing from
non-Federal funding sources.
``(d) Sale of Secured Loans.--
``(1) In general.--Subject to paragraph (2), as
soon as practicable after substantial completion of a
project and after notifying the obligor, the Secretary
may sell to another entity or reoffer into the capital
markets a secured loan for the project if the Secretary
determines that the sale or reoffering can be made on
favorable terms.
``(2) Consent of obligor.--In making a sale or
reoffering under paragraph (1), the Secretary may not
change the original terms and conditions of the secured
loan without the written consent of the obligor.
``(e) Loan Guarantees.--
``(1) In general.--The Secretary may provide a loan
guarantee to a lender in lieu of making a secured loan
under this section if the Secretary determines that the
budgetary cost of the loan guarantee is substantially
the same as that of a secured loan.
``(2) Terms.--The terms of a loan guarantee under
paragraph (1) shall be consistent with the terms
required under this section for a secured loan, except
that the rate on the guaranteed loan and any prepayment
features shall be negotiated between the obligor and
the lender, with the consent of the Secretary.
``Sec. 604. Lines of credit
``(a) In General.--
``(1) Agreements.--Subject to paragraphs (2)
through (4), the Secretary may enter into agreements to
make available to 1 or more obligors lines of credit in
the form of direct loans to be made by the Secretary at
future dates on the occurrence of certain events for
any project selected under section 602.
``(2) Use of proceeds.--The proceeds of a line of
credit made available under this section shall be
available to pay debt service on project obligations
issued to finance eligible project costs, extraordinary
repair and replacement costs, operation and maintenance
expenses, and costs associated with unexpected Federal
or State environmental restrictions.
``(3) Risk assessment.--Before entering into an
agreement under this subsection, the Secretary, in
consultation with the Director of the Office of
Management and Budget and each rating agency providing
a preliminary rating opinion letter under section
602(b)(3), shall determine an appropriate capital
reserve subsidy amount for each line of credit, taking
into account the rating opinion letter.
``(4) Investment-grade rating requirement.--The
funding of a line of credit under this section shall be
contingent on the senior obligations of the project
receiving an investment-grade rating from 2 rating
agencies.
``(b) Terms and Limitations.--
``(1) In general.--A line of credit under this
section with respect to a project shall be on such
terms and conditions and contain such covenants,
representations, warranties, and requirements
(including requirements for audits) as the Secretary
determines to be appropriate.
``(2) Maximum amounts.--The total amount of a line
of credit under this section shall not exceed 33
percent of the reasonably anticipated eligible project
costs.
``(3) Draws.--Any draw on a line of credit under
this section shall--
``(A) represent a direct loan; and
``(B) be made only if net revenues from the
project (including capitalized interest, but
not including reasonably required financing
reserves) are insufficient to pay the costs
specified in subsection (a)(2).
``(4) Interest rate.--Except as provided in
subparagraphs (B) and (C) of section 603(b)(4), the
interest rate on a direct loan resulting from a draw on
the line of credit shall be not less than the yield on
30-year United States Treasury securities, as of the
date of execution of the line of credit agreement.
``(5) Security.--A line of credit issued under this
section--
``(A) shall--
``(i) be payable, in whole or in
part, from--
``(I) tolls;
``(II) user fees;
``(III) payments owing to
the obligor under a public-
private partnership; or
``(IV) other dedicated
revenue sources that also
secure the senior project
obligations; and
``(ii) include a rate covenant,
coverage requirement, or similar
security feature supporting the project
obligations; and
``(B) may have a lien on revenues described
in subparagraph (A), subject to any lien
securing project obligations.
``(6) Period of availability.--The full amount of a
line of credit under this section, to the extent not
drawn upon, shall be available during the 10-year
period beginning on the date of substantial completion
of the project.
``(7) Rights of third-party creditors.--
``(A) Against federal government.--A third-
party creditor of the obligor shall not have
any right against the Federal Government with
respect to any draw on a line of credit under
this section.
``(B) Assignment.--An obligor may assign a
line of credit under this section to--
``(i) 1 or more lenders; or
``(ii) a trustee on the behalf of
such a lender.
``(8) Nonsubordination.--
``(A) In general.--Except as provided in
subparagraph (B), a direct loan under this
section shall not be subordinated to the claims
of any holder of project obligations in the
event of bankruptcy, insolvency, or liquidation
of the obligor.
``(B) Pre-existing indenture.--
``(i) In general.--The Secretary
shall waive the requirement of
subparagraph (A) for a public agency
borrower that is financing ongoing
capital programs and has outstanding
senior bonds under a preexisting
indenture, if--
``(I) the line of credit is
rated in the A category or
higher;
``(II) the TIFIA program
loan resulting from a draw on
the line of credit is payable
from pledged revenues not
affected by project
performance, such as a tax-
backed revenue pledge or a
system-backed pledge of project
revenues; and
``(III) the TIFIA program
share of eligible project costs
is 33 percent or less.
``(ii) Limitation.--If the
Secretary waives the nonsubordination
requirement under this subparagraph--
``(I) the maximum credit
subsidy to be paid by the
Federal Government shall be not
more than 10 percent of the
principal amount of the secured
loan; and
``(II) the obligor shall be
responsible for paying the
remainder of the subsidy cost.
``(9) Fees.--The Secretary may establish fees at a
level sufficient to cover all or a portion of the costs
to the Federal Government of providing a line of credit
under this section.
``(10) Relationship to other credit instruments.--A
project that receives a line of credit under this
section also shall not receive a secured loan or loan
guarantee under section 603 in an amount that, combined
with the amount of the line of credit, exceeds 49
percent of eligible project costs.
``(c) Repayment.--
``(1) Terms and conditions.--The Secretary shall
establish repayment terms and conditions for each
direct loan under this section based on--
``(A) the projected cash flow from project
revenues and other repayment sources; and
``(B) the useful life of the asset being
financed.
``(2) Timing.--All repayments of principal or
interest on a direct loan under this section shall be
scheduled--
``(A) to commence not later than 5 years
after the end of the period of availability
specified in subsection (b)(6); and
``(B) to conclude, with full repayment of
principal and interest, by the date that is 25
years after the end of the period of
availability specified in subsection (b)(6).
``Sec. 605. Program administration
``(a) Requirement.--The Secretary shall establish a uniform
system to service the Federal credit instruments made available
under this chapter.
``(b) Fees.--The Secretary may collect and spend fees,
contingent on authority being provided in appropriations Acts,
at a level that is sufficient to cover--
``(1) the costs of services of expert firms
retained pursuant to subsection (d); and
``(2) all or a portion of the costs to the Federal
Government of servicing the Federal credit instruments.
``(c) Servicer.--
``(1) In general.--The Secretary may appoint a
financial entity to assist the Secretary in servicing
the Federal credit instruments.
``(2) Duties.--A servicer appointed under paragraph
(1) shall act as the agent for the Secretary.
``(3) Fee.--A servicer appointed under paragraph
(1) shall receive a servicing fee, subject to approval
by the Secretary.
``(d) Assistance From Expert Firms.--The Secretary may
retain the services of expert firms, including counsel, in the
field of municipal and project finance to assist in the
underwriting and servicing of Federal credit instruments.
``(e) Expedited Processing.--The Secretary shall implement
procedures and measures to economize the time and cost involved
in obtaining approval and the issuance of credit assistance
under this chapter.
``Sec. 606. State and local permits
``The provision of credit assistance under this chapter
with respect to a project shall not--
``(1) relieve any recipient of the assistance of
any obligation to obtain any required State or local
permit or approval with respect to the project;
``(2) limit the right of any unit of State or local
government to approve or regulate any rate of return on
private equity invested in the project; or
``(3) otherwise supersede any State or local law
(including any regulation) applicable to the
construction or operation of the project.
``Sec. 607. Regulations
``The Secretary may promulgate such regulations as the
Secretary determines to be appropriate to carry out this
chapter.
``Sec. 608. Funding
``(a) Funding.--
``(1) Spending and borrowing authority.--Spending
and borrowing authority for a fiscal year to enter into
Federal credit instruments shall be promptly
apportioned to the Secretary on a fiscal-year basis.
``(2) Reestimates.--If the subsidy cost of a
Federal credit instrument is reestimated, the cost
increase or decrease of the reestimate shall be borne
by, or benefit, the general fund of the Treasury,
consistent with section 504(f) the Congressional Budget
Act of 1974 (2 U.S.C. 661c(f)).
``(3) Rural set-aside.--
``(A) In general.--Of the total amount of
funds made available to carry out this chapter
for each fiscal year, not more than 10 percent
shall be set aside for rural infrastructure
projects.
``(B) Reobligation.--Any amounts set aside
under subparagraph (A) that remain unobligated
by June 1 of the fiscal year for which the
amounts were set aside shall be available for
obligation by the Secretary on projects other
than rural infrastructure projects.
``(4) Redistribution of authorized funding.--
``(A) In general.--Beginning in fiscal year
2014, on April 1 of each fiscal year, if the
cumulative unobligated and uncommitted balance
of funding available exceeds 75 percent of the
amount made available to carry out this chapter
for that fiscal year, the Secretary shall
distribute to the States the amount of funds
and associated obligation authority in excess
of that amount.
``(B) Distribution.--The amounts and
obligation authority distributed under this
paragraph shall be distributed, in the same
manner as obligation authority is distributed
to the States for the fiscal year, based on the
proportion that--
``(i) the relative share of each
State of obligation authority for the
fiscal year; bears to
``(ii) the total amount of
obligation authority distributed to all
States for the fiscal year.
``(C) Purpose.--Funds distributed under
subparagraph (B) shall be available for any
purpose described in section 133(b).
``(5) Availability.--Amounts made available to
carry out this chapter shall remain available until
expended.
``(6) Administrative costs.--Of the amounts made
available to carry out this chapter, the Secretary may
use not more than 0.50 percent for each fiscal year for
the administration of this chapter.
``(b) Contract Authority.--
``(1) In general.--Notwithstanding any other
provision of law, execution of a term sheet by the
Secretary of a Federal credit instrument that uses
amounts made available under this chapter shall impose
on the United States a contractual obligation to fund
the Federal credit investment.
``(2) Availability.--Amounts made available to
carry out this chapter for a fiscal year shall be
available for obligation on October 1 of the fiscal
year.
``Sec. 609. Reports to Congress
``(a) In General.--On June 1, 2012, and every 2 years
thereafter, the Secretary shall submit to Congress a report
summarizing the financial performance of the projects that are
receiving, or have received, assistance under this chapter
(other than section 610), including a recommendation as to
whether the objectives of this chapter (other than section 610)
are best served by--
``(1) continuing the program under the authority of
the Secretary;
``(2) establishing a Federal corporation or
federally sponsored enterprise to administer the
program; or
``(3) phasing out the program and relying on the
capital markets to fund the types of infrastructure
investments assisted by this chapter (other than
section 610) without Federal participation.
``(b) Application Process Report.--
``(1) In general.--Not later than December 1, 2012,
and annually thereafter, the Secretary shall submit to
the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Environment and Public Works of the Senate a report
that includes a list of all of the letters of interest
and applications received from project sponsors for
assistance under this chapter (other than section 610)
during the preceding fiscal year.
``(2) Inclusions.--
``(A) In general.--Each report under
paragraph (1) shall include, at a minimum, a
description of, with respect to each letter of
interest and application included in the
report--
``(i) the date on which the letter
of interest or application was
received;
``(ii) the date on which a
notification was provided to the
project sponsor regarding whether the
application was complete or incomplete;
``(iii) the date on which a revised
and completed application was submitted
(if applicable);
``(iv) the date on which a
notification was provided to the
project sponsor regarding whether the
project was approved or disapproved;
and
``(v) if the project was not
approved, the reason for the
disapproval.
``(B) Correspondence.--Each report under
paragraph (1) shall include copies of any
correspondence provided to the project sponsor
in accordance with section 602(d).''.
DIVISION B--PUBLIC TRANSPORTATION
SEC. 20001. SHORT TITLE.
This division may be cited as the ``Federal Public
Transportation Act of 2012''.
SEC. 20002. REPEALS.
(a) Chapter 53.--Chapter 53 of title 49, United States
Code, is amended by striking sections 5308, 5316, 5317, 5320,
and 5328.
(b) Transportation Equity Act for the 21st Century.--
Section 3038 of the Transportation Equity Act for the 21st
Century (49 U.S.C. 5310 note) is repealed.
(c) SAFETEA-LU.--The following provisions are repealed:
(1) Section 3009(i) of SAFETEA-LU (Public Law 109-
59; 119 Stat. 1572).
(2) Section 3011(c) of SAFETEA-LU (49 U.S.C. 5309
note).
(3) Section 3012(b) of SAFETEA-LU (49 U.S.C. 5310
note).
(4) Section 3045 of SAFETEA-LU (49 U.S.C. 5308
note).
(5) Section 3046 of SAFETEA-LU (49 U.S.C. 5338
note).
SEC. 20003. POLICIES AND PURPOSES.
Section 5301 of title 49, United States Code, is amended to
read as follows:
``Sec. 5301. Policies and purposes
``(a) Declaration of Policy.--It is in the interest of the
United States, including the economic interest of the United
States, to foster the development and revitalization of public
transportation systems with the cooperation of both public
transportation companies and private companies engaged in
public transportation.
``(b) General Purposes.--The purposes of this chapter are
to--
``(1) provide funding to support public
transportation;
``(2) improve the development and delivery of
capital projects;
``(3) establish standards for the state of good
repair of public transportation infrastructure and
vehicles;
``(4) promote continuing, cooperative, and
comprehensive planning that improves the performance of
the transportation network;
``(5) establish a technical assistance program to
assist recipients under this chapter to more
effectively and efficiently provide public
transportation service;
``(6) continue Federal support for public
transportation providers to deliver high quality
service to all users, including individuals with
disabilities, seniors, and individuals who depend on
public transportation;
``(7) support research, development, demonstration,
and deployment projects dedicated to assisting in the
delivery of efficient and effective public
transportation service; and
``(8) promote the development of the public
transportation workforce.''.
SEC. 20004. DEFINITIONS.
Section 5302 of title 49, United States Code, is amended to
read as follows:
``Sec. 5302. Definitions
``Except as otherwise specifically provided, in this
chapter the following definitions apply:
``(1) Associated transit improvement.--The term
`associated transit improvement' means, with respect to
any project or an area to be served by a project,
projects that are designed to enhance public
transportation service or use and that are physically
or functionally related to transit facilities. Eligible
projects are--
``(A) historic preservation,
rehabilitation, and operation of historic
public transportation buildings, structures,
and facilities (including historic bus and
railroad facilities) intended for use in public
transportation service;
``(B) bus shelters;
``(C) landscaping and streetscaping,
including benches, trash receptacles, and
street lights;
``(D) pedestrian access and walkways;
``(E) bicycle access, including bicycle
storage facilities and installing equipment for
transporting bicycles on public transportation
vehicles;
``(F) signage; or
``(G) enhanced access for persons with
disabilities to public transportation.
``(2) Bus rapid transit system.--The term `bus
rapid transit system' means a bus transit system--
``(A) in which the majority of each line
operates in a separated right-of-way dedicated
for public transportation use during peak
periods; and
``(B) that includes features that emulate
the services provided by rail fixed guideway
public transportation systems, including--
``(i) defined stations;
``(ii) traffic signal priority for
public transportation vehicles;
``(iii) short headway bidirectional
services for a substantial part of
weekdays and weekend days; and
``(iv) any other features the
Secretary may determine are necessary
to produce high-quality public
transportation services that emulate
the services provided by rail fixed
guideway public transportation systems.
``(3) Capital project.--The term `capital project'
means a project for--
``(A) acquiring, constructing, supervising,
or inspecting equipment or a facility for use
in public transportation, expenses incidental
to the acquisition or construction (including
designing, engineering, location surveying,
mapping, and acquiring rights-of-way), payments
for the capital portions of rail trackage
rights agreements, transit-related intelligent
transportation systems, relocation assistance,
acquiring replacement housing sites, and
acquiring, constructing, relocating, and
rehabilitating replacement housing;
``(B) rehabilitating a bus;
``(C) remanufacturing a bus;
``(D) overhauling rail rolling stock;
``(E) preventive maintenance;
``(F) leasing equipment or a facility for
use in public transportation, subject to
regulations that the Secretary prescribes
limiting the leasing arrangements to those that
are more cost-effective than purchase or
construction;
``(G) a joint development improvement
that--
``(i) enhances economic development
or incorporates private investment,
such as commercial and residential
development;
``(ii)(I) enhances the
effectiveness of public transportation
and is related physically or
functionally to public transportation;
or
``(II) establishes new or enhanced
coordination between public
transportation and other
transportation;
``(iii) provides a fair share of
revenue that will be used for public
transportation;
``(iv) provides that a person
making an agreement to occupy space in
a facility constructed under this
paragraph shall pay a fair share of the
costs of the facility through rental
payments and other means;
``(v) may include--
``(I) property acquisition;
``(II) demolition of
existing structures;
``(III) site preparation;
``(IV) utilities;
``(V) building foundations;
``(VI) walkways;
``(VII) pedestrian and
bicycle access to a public
transportation facility;
``(VIII) construction,
renovation, and improvement of
intercity bus and intercity
rail stations and terminals;
``(IX) renovation and
improvement of historic
transportation facilities;
``(X) open space;
``(XI) safety and security
equipment and facilities
(including lighting,
surveillance, and related
intelligent transportation
system applications);
``(XII) facilities that
incorporate community services
such as daycare or health care;
``(XIII) a capital project
for, and improving, equipment
or a facility for an intermodal
transfer facility or
transportation mall; and
``(XIV) construction of
space for commercial uses; and
``(vi) does not include outfitting
of commercial space (other than an
intercity bus or rail station or
terminal) or a part of a public
facility not related to public
transportation;
``(H) the introduction of new technology,
through innovative and improved products, into
public transportation;
``(I) the provision of nonfixed route
paratransit transportation services in
accordance with section 223 of the Americans
with Disabilities Act of 1990 (42 U.S.C.
12143), but only for grant recipients that are
in compliance with applicable requirements of
that Act, including both fixed route and demand
responsive service, and only for amounts not to
exceed 10 percent of such recipient's annual
formula apportionment under sections 5307 and
5311;
``(J) establishing a debt service reserve,
made up of deposits with a bondholder's
trustee, to ensure the timely payment of
principal and interest on bonds issued by a
grant recipient to finance an eligible project
under this chapter;
``(K) mobility management--
``(i) consisting of short-range
planning and management activities and
projects for improving coordination
among public transportation and other
transportation service providers
carried out by a recipient or
subrecipient through an agreement
entered into with a person, including a
governmental entity, under this chapter
(other than section 5309); but
``(ii) excluding operating public
transportation services; or
``(L) associated capital maintenance,
including--
``(i) equipment, tires, tubes, and
material, each costing at least .5
percent of the current fair market
value of rolling stock comparable to
the rolling stock for which the
equipment, tires, tubes, and material
are to be used; and
``(ii) reconstruction of equipment
and material, each of which after
reconstruction will have a fair market
value of at least .5 percent of the
current fair market value of rolling
stock comparable to the rolling stock
for which the equipment and material
will be used.
``(4) Designated recipient.--The term `designated
recipient' means--
``(A) an entity designated, in accordance
with the planning process under sections 5303
and 5304, by the Governor of a State,
responsible local officials, and publicly owned
operators of public transportation, to receive
and apportion amounts under section 5336 to
urbanized areas of 200,000 or more in
population; or
``(B) a State or regional authority, if the
authority is responsible under the laws of a
State for a capital project and for financing
and directly providing public transportation.
``(5) Disability.--The term `disability' has the
same meaning as in section 3(1) of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12102).
``(6) Emergency regulation.--The term `emergency
regulation' means a regulation--
``(A) that is effective temporarily before
the expiration of the otherwise specified
periods of time for public notice and comment
under section 5334(c); and
``(B) prescribed by the Secretary as the
result of a finding that a delay in the
effective date of the regulation--
``(i) would injure seriously an
important public interest;
``(ii) would frustrate
substantially legislative policy and
intent; or
``(iii) would damage seriously a
person or class without serving an
important public interest.
``(7) Fixed guideway.--The term `fixed guideway'
means a public transportation facility--
``(A) using and occupying a separate right-
of-way for the exclusive use of public
transportation;
``(B) using rail;
``(C) using a fixed catenary system;
``(D) for a passenger ferry system; or
``(E) for a bus rapid transit system.
``(8) Governor.--The term `Governor'--
``(A) means the Governor of a State, the
mayor of the District of Columbia, and the
chief executive officer of a territory of the
United States; and
``(B) includes the designee of the
Governor.
``(9) Job access and reverse commute project.--
``(A) In general.--The term `job access and
reverse commute project' means a transportation
project to finance planning, capital, and
operating costs that support the development
and maintenance of transportation services
designed to transport welfare recipients and
eligible low-income individuals to and from
jobs and activities related to their
employment, including transportation projects
that facilitate the provision of public
transportation services from urbanized areas
and rural areas to suburban employment
locations.
``(B) Definitions.--In this paragraph:
``(i) Eligible low-income
individual.--The term `eligible low-
income individual' means an individual
whose family income is at or below 150
percent of the poverty line (as that
term is defined in section 673(2) of
the Community Service Block Grant Act
(42 U.S.C. 9902(2)), including any
revision required by that section) for
a family of the size involved.
``(ii) Welfare recipient.--The term
`welfare recipient' means an individual
who has received assistance under a
State or tribal program funded under
part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) at
any time during the 3-year period
before the date on which the applicant
applies for a grant under section 5307
or 5311.
``(10) Local governmental authority.--The term
`local governmental authority' includes--
``(A) a political subdivision of a State;
``(B) an authority of at least 1 State or
political subdivision of a State;
``(C) an Indian tribe; and
``(D) a public corporation, board, or
commission established under the laws of a
State.
``(11) Low-income individual.--The term `low-income
individual' means an individual whose family income is
at or below 150 percent of the poverty line, as that
term is defined in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)), including
any revision required by that section, for a family of
the size involved.
``(12) Net project cost.--The term `net project
cost' means the part of a project that reasonably
cannot be financed from revenues.
``(13) New bus model.--The term `new bus model'
means a bus model (including a model using alternative
fuel)--
``(A) that has not been used in public
transportation in the United States before the
date of production of the model; or
``(B) used in public transportation in the
United States, but being produced with a major
change in configuration or components.
``(14) Public transportation.--The term `public
transportation'--
``(A) means regular, continuing shared-ride
surface transportation services that are open
to the general public or open to a segment of
the general public defined by age, disability,
or low income; and
``(B) does not include--
``(i) intercity passenger rail
transportation provided by the entity
described in chapter 243 (or a
successor to such entity);
``(ii) intercity bus service;
``(iii) charter bus service;
``(iv) school bus service;
``(v) sightseeing service;
``(vi) courtesy shuttle service for
patrons of one or more specific
establishments; or
``(vii) intra-terminal or intra-
facility shuttle services.
``(15) Regulation.--The term `regulation' means any
part of a statement of general or particular
applicability of the Secretary designed to carry out,
interpret, or prescribe law or policy in carrying out
this chapter.
``(16) Rural area.--The term `rural area' means an
area encompassing a population of less than 50,000
people that has not been designated in the most recent
decennial census as an `urbanized area' by the
Secretary of Commerce.
``(17) Secretary.--The term `Secretary' means the
Secretary of Transportation.
``(18) Senior.--The term `senior' means an
individual who is 65 years of age or older.
``(19) State.--The term `State' means a State of
the United States, the District of Columbia, Puerto
Rico, the Northern Mariana Islands, Guam, American
Samoa, and the Virgin Islands.
``(20) State of good repair.--The term `state of
good repair' has the meaning given that term by the
Secretary, by rule, under section 5326(b).
``(21) Transit.--The term `transit' means public
transportation.
``(22) Urban area.--The term `urban area' means an
area that includes a municipality or other built-up
place that the Secretary, after considering local
patterns and trends of urban growth, decides is
appropriate for a local public transportation system to
serve individuals in the locality.
``(23) Urbanized area.--The term `urbanized area'
means an area encompassing a population of not less
than 50,000 people that has been defined and designated
in the most recent decennial census as an `urbanized
area' by the Secretary of Commerce.''.
SEC. 20005. METROPOLITAN TRANSPORTATION PLANNING.
(a) Amendment.--Section 5303 of title 49, United States
Code, is amended to read as follows:
``Sec. 5303. Metropolitan transportation planning
``(a) Policy.--It is in the national interest--
``(1) to encourage and promote the safe and
efficient management, operation, and development of
surface transportation systems that will serve the
mobility needs of people and freight and foster
economic growth and development within and between
States and urbanized areas, while minimizing
transportation-related fuel consumption and air
pollution through metropolitan and statewide
transportation planning processes identified in this
chapter; and
``(2) to encourage the continued improvement and
evolution of the metropolitan and statewide
transportation planning processes by metropolitan
planning organizations, State departments of
transportation, and public transit operators as guided
by the planning factors identified in subsection (h)
and section 5304(d).
``(b) Definitions.--In this section and section 5304, the
following definitions apply:
``(1) Metropolitan planning area.--The term
`metropolitan planning area' means the geographic area
determined by agreement between the metropolitan
planning organization for the area and the Governor
under subsection (e).
``(2) Metropolitan planning organization.--The term
`metropolitan planning organization' means the policy
board of an organization established as a result of the
designation process under subsection (d).
``(3) Nonmetropolitan area.--The term
`nonmetropolitan area' means a geographic area outside
designated metropolitan planning areas.
``(4) Nonmetropolitan local official.--The term
`nonmetropolitan local official' means elected and
appointed officials of general purpose local government
in a nonmetropolitan area with responsibility for
transportation.
``(5) Regional transportation planning
organization.--The term `regional transportation
planning organization' means a policy board of an
organization established as the result of a designation
under section 5304(l).
``(6) TIP.--The term `TIP' means a transportation
improvement program developed by a metropolitan
planning organization under subsection (j).
``(7) Urbanized area.--The term `urbanized area'
means a geographic area with a population of 50,000 or
more, as determined by the Bureau of the Census.
``(c) General Requirements.--
``(1) Development of long-range plans and tips.--To
accomplish the objectives in subsection (a),
metropolitan planning organizations designated under
subsection (d), in cooperation with the State and
public transportation operators, shall develop long-
range transportation plans and transportation
improvement programs through a performance-driven,
outcome-based approach to planning for metropolitan
areas of the State.
``(2) Contents.--The plans and TIPs for each
metropolitan area shall provide for the development and
integrated management and operation of transportation
systems and facilities (including accessible pedestrian
walkways and bicycle transportation facilities) that
will function as an intermodal transportation system
for the metropolitan planning area and as an integral
part of an intermodal transportation system for the
State and the United States.
``(3) Process of development.--The process for
developing the plans and TIPs shall provide for
consideration of all modes of transportation and shall
be continuing, cooperative, and comprehensive to the
degree appropriate, based on the complexity of the
transportation problems to be addressed.
``(d) Designation of Metropolitan Planning Organizations.--
``(1) In general.--To carry out the transportation
planning process required by this section, a
metropolitan planning organization shall be designated
for each urbanized area with a population of more than
50,000 individuals--
``(A) by agreement between the Governor and
units of general purpose local government that
together represent at least 75 percent of the
affected population (including the largest
incorporated city (based on population) as
determined by the Bureau of the Census); or
``(B) in accordance with procedures
established by applicable State or local law.
``(2) Structure.--Not later than 2 years after the
date of enactment of the Federal Public Transportation
Act of 2012, each metropolitan planning organization
that serves an area designated as a transportation
management area shall consist of--
``(A) local elected officials;
``(B) officials of public agencies that
administer or operate major modes of
transportation in the metropolitan area,
including representation by providers of public
transportation; and
``(C) appropriate State officials.
``(3) Limitation on statutory construction.--
Nothing in this subsection shall be construed to
interfere with the authority, under any State law in
effect on December 18, 1991, of a public agency with
multimodal transportation responsibilities--
``(A) to develop the plans and TIPs for
adoption by a metropolitan planning
organization; and
``(B) to develop long-range capital plans,
coordinate transit services and projects, and
carry out other activities pursuant to State
law.
``(4) Continuing designation.--A designation of a
metropolitan planning organization under this
subsection or any other provision of law shall remain
in effect until the metropolitan planning organization
is redesignated under paragraph (5).
``(5) Redesignation procedures.--
``(A) In general.--A metropolitan planning
organization may be redesignated by agreement
between the Governor and units of general
purpose local government that together
represent at least 75 percent of the existing
planning area population (including the largest
incorporated city (based on population) as
determined by the Bureau of the Census) as
appropriate to carry out this section.
``(B) Restructuring.--A metropolitan
planning organization may be restructured to
meet the requirements of paragraph (2) without
undertaking a redesignation.
``(6) Designation of more than 1 metropolitan
planning organization.--More than 1 metropolitan
planning organization may be designated within an
existing metropolitan planning area only if the
Governor and the existing metropolitan planning
organization determine that the size and complexity of
the existing metropolitan planning area make
designation of more than 1 metropolitan planning
organization for the area appropriate.
``(e) Metropolitan Planning Area Boundaries.--
``(1) In general.--For the purposes of this
section, the boundaries of a metropolitan planning area
shall be determined by agreement between the
metropolitan planning organization and the Governor.
``(2) Included area.--Each metropolitan planning
area--
``(A) shall encompass at least the existing
urbanized area and the contiguous area expected
to become urbanized within a 20-year forecast
period for the transportation plan; and
``(B) may encompass the entire metropolitan
statistical area or consolidated metropolitan
statistical area, as defined by the Bureau of
the Census.
``(3) Identification of new urbanized areas within
existing planning area boundaries.--The designation by
the Bureau of the Census of new urbanized areas within
an existing metropolitan planning area shall not
require the redesignation of the existing metropolitan
planning organization.
``(4) Existing metropolitan planning areas in
nonattainment.--
``(A) In general.--Notwithstanding
paragraph (2), except as provided in
subparagraph (B), in the case of an urbanized
area designated as a nonattainment area for
ozone or carbon monoxide under the Clean Air
Act (42 U.S.C. 7401 et seq.) as of the date of
enactment of the SAFETEA-LU, the boundaries of
the metropolitan planning area in existence as
of such date of enactment shall be retained.
``(B) Exception.--The boundaries described
in subparagraph (A) may be adjusted by
agreement of the Governor and affected
metropolitan planning organizations in the
manner described in subsection (d)(5).
``(5) New metropolitan planning areas in
nonattainment.--In the case of an urbanized area
designated after the date of enactment of the SAFETEA-
LU, as a nonattainment area for ozone or carbon
monoxide, the boundaries of the metropolitan planning
area--
``(A) shall be established in the manner
described in subsection (d)(1);
``(B) shall encompass the areas described
in paragraph (2)(A);
``(C) may encompass the areas described in
paragraph (2)(B); and
``(D) may address any nonattainment area
identified under the Clean Air Act (42 U.S.C.
7401 et seq.) for ozone or carbon monoxide.
``(f) Coordination in Multistate Areas.--
``(1) In general.--The Secretary shall encourage
each Governor with responsibility for a portion of a
multistate metropolitan area and the appropriate
metropolitan planning organizations to provide
coordinated transportation planning for the entire
metropolitan area.
``(2) Interstate compacts.--The consent of Congress
is granted to any 2 or more States--
``(A) to enter into agreements or compacts,
not in conflict with any law of the United
States, for cooperative efforts and mutual
assistance in support of activities authorized
under this section as the activities pertain to
interstate areas and localities within the
States; and
``(B) to establish such agencies, joint or
otherwise, as the States may determine
desirable for making the agreements and
compacts effective.
``(3) Reservation of rights.--The right to alter,
amend, or repeal interstate compacts entered into under
this subsection is expressly reserved.
``(g) MPO Consultation in Plan and TIP Coordination.--
``(1) Nonattainment areas.--If more than 1
metropolitan planning organization has authority within
a metropolitan area or an area which is designated as a
nonattainment area for ozone or carbon monoxide under
the Clean Air Act (42 U.S.C. 7401 et seq.), each
metropolitan planning organization shall consult with
the other metropolitan planning organizations
designated for such area and the State in the
coordination of plans and TIPs required by this
section.
``(2) Transportation improvements located in
multiple mpos.--If a transportation improvement, funded
under this chapter or title 23, is located within the
boundaries of more than 1 metropolitan planning area,
the metropolitan planning organizations shall
coordinate plans and TIPs regarding the transportation
improvement.
``(3) Relationship with other planning officials.--
``(A) In general.--The Secretary shall
encourage each metropolitan planning
organization to consult with officials
responsible for other types of planning
activities that are affected by transportation
in the area (including State and local planned
growth, economic development, environmental
protection, airport operations, and freight
movements) or to coordinate its planning
process, to the maximum extent practicable,
with such planning activities.
``(B) Requirements.--Under the metropolitan
planning process, transportation plans and TIPs
shall be developed with due consideration of
other related planning activities within the
metropolitan area, and the process shall
provide for the design and delivery of
transportation services within the metropolitan
area that are provided by--
``(i) recipients of assistance
under this chapter;
``(ii) governmental agencies and
nonprofit organizations (including
representatives of the agencies and
organizations) that receive Federal
assistance from a source other than the
Department of Transportation to provide
nonemergency transportation services;
and
``(iii) recipients of assistance
under section 204 of title 23.
``(h) Scope of Planning Process.--
``(1) In general.--The metropolitan planning
process for a metropolitan planning area under this
section shall provide for consideration of projects and
strategies that will--
``(A) support the economic vitality of the
metropolitan area, especially by enabling
global competitiveness, productivity, and
efficiency;
``(B) increase the safety of the
transportation system for motorized and
nonmotorized users;
``(C) increase the security of the
transportation system for motorized and
nonmotorized users;
``(D) increase the accessibility and
mobility of people and for freight;
``(E) protect and enhance the environment,
promote energy conservation, improve the
quality of life, and promote consistency
between transportation improvements and State
and local planned growth and economic
development patterns;
``(F) enhance the integration and
connectivity of the transportation system,
across and between modes, for people and
freight;
``(G) promote efficient system management
and operation; and
``(H) emphasize the preservation of the
existing transportation system.
``(2) Performance-based approach.--
``(A) In general.--The metropolitan
transportation planning process shall provide
for the establishment and use of a performance-
based approach to transportation decisionmaking
to support the national goals described in
section 150(b) of title 23 and the general
purposes described in section 5301.
``(B) Performance targets.--
``(i) Surface transportation
performance targets.--
``(I) In general.--Each
metropolitan planning
organization shall establish
performance targets that
address the performance
measures described in section
150(c) of title 23, where
applicable, to use in tracking
progress towards attainment of
critical outcomes for the
region of the metropolitan
planning organization.
``(II) Coordination.--
Selection of performance
targets by a metropolitan
planning organization shall be
coordinated with the relevant
State to ensure consistency, to
the maximum extent practicable.
``(ii) Public transportation
performance targets.--Selection of
performance targets by a metropolitan
planning organization shall be
coordinated, to the maximum extent
practicable, with providers of public
transportation to ensure consistency
with sections 5326(c) and 5329(d).
``(C) Timing.--Each metropolitan planning
organization shall establish the performance
targets under subparagraph (B) not later than
180 days after the date on which the relevant
State or provider of public transportation
establishes the performance targets.
``(D) Integration of other performance-
based plans.--A metropolitan planning
organization shall integrate in the
metropolitan transportation planning process,
directly or by reference, the goals,
objectives, performance measures, and targets
described in other State transportation plans
and transportation processes, as well as any
plans developed by recipients of assistance
under this chapter, required as part of a
performance-based program.
``(3) Failure to consider factors.--The failure to
consider any factor specified in paragraphs (1) and (2)
shall not be reviewable by any court under this
chapter, title 23, subchapter II of chapter 5 of title
5, or chapter 7 of title 5 in any matter affecting a
transportation plan, a TIP, a project or strategy, or
the certification of a planning process.
``(i) Development of Transportation Plan.--
``(1) Requirements.--
``(A) In general.--Each metropolitan
planning organization shall prepare and update
a transportation plan for its metropolitan
planning area in accordance with the
requirements of this subsection.
``(B) Frequency.--
``(i) In general.--The metropolitan
planning organization shall prepare and
update such plan every 4 years (or more
frequently, if the metropolitan
planning organization elects to update
more frequently) in the case of each of
the following:
``(I) Any area designated
as nonattainment, as defined in
section 107(d) of the Clean Air
Act (42 U.S.C. 7407(d)).
``(II) Any area that was
nonattainment and subsequently
designated to attainment in
accordance with section
107(d)(3) of that Act (42
U.S.C. 7407(d)(3)) and that is
subject to a maintenance plan
under section 175A of that Act
(42 U.S.C. 7505a).
``(ii) Other areas.--In the case of
any other area required to have a
transportation plan in accordance with
the requirements of this subsection,
the metropolitan planning organization
shall prepare and update such plan
every 5 years unless the metropolitan
planning organization elects to update
more frequently.
``(2) Transportation plan.--A transportation plan
under this section shall be in a form that the
Secretary determines to be appropriate and shall
contain, at a minimum, the following:
``(A) Identification of transportation
facilities.--
``(i) In general.--An
identification of transportation
facilities (including major roadways,
transit, multimodal and intermodal
facilities, nonmotorized transportation
facilities, and intermodal connectors)
that should function as an integrated
metropolitan transportation system,
giving emphasis to those facilities
that serve important national and
regional transportation functions.
``(ii) Factors.--In formulating the
transportation plan, the metropolitan
planning organization shall consider
factors described in subsection (h) as
the factors relate to a 20-year
forecast period.
``(B) Performance measures and targets.--A
description of the performance measures and
performance targets used in assessing the
performance of the transportation system in
accordance with subsection (h)(2).
``(C) System performance report.--A system
performance report and subsequent updates
evaluating the condition and performance of the
transportation system with respect to the
performance targets described in subsection
(h)(2), including--
``(i) progress achieved by the
metropolitan planning organization in
meeting the performance targets in
comparison with system performance
recorded in previous reports; and
``(ii) for metropolitan planning
organizations that voluntarily elect to
develop multiple scenarios, an analysis
of how the preferred scenario has
improved the conditions and performance
of the transportation system and how
changes in local policies and
investments have impacted the costs
necessary to achieve the identified
performance targets.
``(D) Mitigation activities.--
``(i) In general.--A long-range
transportation plan shall include a
discussion of types of potential
environmental mitigation activities and
potential areas to carry out these
activities, including activities that
may have the greatest potential to
restore and maintain the environmental
functions affected by the plan.
``(ii) Consultation.--The
discussion shall be developed in
consultation with Federal, State, and
tribal wildlife, land management, and
regulatory agencies.
``(E) Financial plan.--
``(i) In general.--A financial plan
that--
``(I) demonstrates how the
adopted transportation plan can
be implemented;
``(II) indicates resources
from public and private sources
that are reasonably expected to
be made available to carry out
the plan; and
``(III) recommends any
additional financing strategies
for needed projects and
programs.
``(ii) Inclusions.--The financial
plan may include, for illustrative
purposes, additional projects that
would be included in the adopted
transportation plan if reasonable
additional resources beyond those
identified in the financial plan were
available.
``(iii) Cooperative development.--
For the purpose of developing the
transportation plan, the metropolitan
planning organization, transit
operator, and State shall cooperatively
develop estimates of funds that will be
available to support plan
implementation.
``(F) Operational and management
strategies.--Operational and management
strategies to improve the performance of
existing transportation facilities to relieve
vehicular congestion and maximize the safety
and mobility of people and goods.
``(G) Capital investment and other
strategies.--Capital investment and other
strategies to preserve the existing and
projected future metropolitan transportation
infrastructure and provide for multimodal
capacity increases based on regional priorities
and needs.
``(H) Transportation and transit
enhancement activities.--Proposed
transportation and transit enhancement
activities.
``(3) Coordination with clean air act agencies.--In
metropolitan areas that are in nonattainment for ozone
or carbon monoxide under the Clean Air Act (42 U.S.C.
7401 et seq.), the metropolitan planning organization
shall coordinate the development of a transportation
plan with the process for development of the
transportation control measures of the State
implementation plan required by that Act.
``(4) Optional scenario development.--
``(A) In general.--A metropolitan planning
organization may, while fitting the needs and
complexity of its community, voluntarily elect
to develop multiple scenarios for consideration
as part of the development of the metropolitan
transportation plan, in accordance with
subparagraph (B).
``(B) Recommended components.--A
metropolitan planning organization that chooses
to develop multiple scenarios under
subparagraph (A) shall be encouraged to
consider--
``(i) potential regional investment
strategies for the planning horizon;
``(ii) assumed distribution of
population and employment;
``(iii) a scenario that, to the
maximum extent practicable, maintains
baseline conditions for the performance
measures identified in subsection
(h)(2);
``(iv) a scenario that improves the
baseline conditions for as many of the
performance measures identified in
subsection (h)(2) as possible;
``(v) revenue constrained scenarios
based on the total revenues expected to
be available over the forecast period
of the plan; and
``(vi) estimated costs and
potential revenues available to support
each scenario.
``(C) Metrics.--In addition to the
performance measures identified in section
150(c) of title 23, metropolitan planning
organizations may evaluate scenarios developed
under this paragraph using locally-developed
measures.
``(5) Consultation.--
``(A) In general.--In each metropolitan
area, the metropolitan planning organization
shall consult, as appropriate, with State and
local agencies responsible for land use
management, natural resources, environmental
protection, conservation, and historic
preservation concerning the development of a
long-range transportation plan.
``(B) Issues.--The consultation shall
involve, as appropriate--
``(i) comparison of transportation
plans with State conservation plans or
maps, if available; or
``(ii) comparison of transportation
plans to inventories of natural or
historic resources, if available.
``(6) Participation by interested parties.--
``(A) In general.--Each metropolitan
planning organization shall provide citizens,
affected public agencies, representatives of
public transportation employees, freight
shippers, providers of freight transportation
services, private providers of transportation,
representatives of users of public
transportation, representatives of users of
pedestrian walkways and bicycle transportation
facilities, representatives of the disabled,
and other interested parties with a reasonable
opportunity to comment on the transportation
plan.
``(B) Contents of participation plan.--A
participation plan--
``(i) shall be developed in
consultation with all interested
parties; and
``(ii) shall provide that all
interested parties have reasonable
opportunities to comment on the
contents of the transportation plan.
``(C) Methods.--In carrying out
subparagraph (A), the metropolitan planning
organization shall, to the maximum extent
practicable--
``(i) hold any public meetings at
convenient and accessible locations and
times;
``(ii) employ visualization
techniques to describe plans; and
``(iii) make public information
available in electronically accessible
format and means, such as the World
Wide Web, as appropriate to afford
reasonable opportunity for
consideration of public information
under subparagraph (A).
``(7) Publication.--A transportation plan involving
Federal participation shall be published or otherwise
made readily available by the metropolitan planning
organization for public review, including (to the
maximum extent practicable) in electronically
accessible formats and means, such as the World Wide
Web, approved by the metropolitan planning organization
and submitted for information purposes to the Governor
at such times and in such manner as the Secretary shall
establish.
``(8) Selection of projects from illustrative
list.--Notwithstanding paragraph (2)(C), a State or
metropolitan planning organization shall not be
required to select any project from the illustrative
list of additional projects included in the financial
plan under paragraph (2)(C).
``(j) Metropolitan TIP.--
``(1) Development.--
``(A) In general.--In cooperation with the
State and any affected public transportation
operator, the metropolitan planning
organization designated for a metropolitan area
shall develop a TIP for the metropolitan
planning area that--
``(i) contains projects consistent
with the current metropolitan
transportation plan;
``(ii) reflects the investment
priorities established in the current
metropolitan transportation plan; and
``(iii) once implemented, is
designed to make progress toward
achieving the performance targets
established under subsection (h)(2).
``(B) Opportunity for comment.--In
developing the TIP, the metropolitan planning
organization, in cooperation with the State and
any affected public transportation operator,
shall provide an opportunity for participation
by interested parties in the development of the
program, in accordance with subsection (i)(5).
``(C) Funding estimates.--For the purpose
of developing the TIP, the metropolitan
planning organization, public transportation
agency, and State shall cooperatively develop
estimates of funds that are reasonably expected
to be available to support program
implementation.
``(D) Updating and approval.--The TIP shall
be--
``(i) updated at least once every 4
years; and
``(ii) approved by the metropolitan
planning organization and the Governor.
``(2) Contents.--
``(A) Priority list.--The TIP shall include
a priority list of proposed Federally supported
projects and strategies to be carried out
within each 4-year period after the initial
adoption of the TIP.
``(B) Financial plan.--The TIP shall
include a financial plan that--
``(i) demonstrates how the TIP can
be implemented;
``(ii) indicates resources from
public and private sources that are
reasonably expected to be available to
carry out the program;
``(iii) identifies innovative
financing techniques to finance
projects, programs, and strategies; and
``(iv) may include, for
illustrative purposes, additional
projects that would be included in the
approved TIP if reasonable additional
resources beyond those identified in
the financial plan were available.
``(C) Descriptions.--Each project in the
TIP shall include sufficient descriptive
material (such as type of work, termini,
length, and other similar factors) to identify
the project or phase of the project.
``(D) Performance target achievement.--The
transportation improvement program shall
include, to the maximum extent practicable, a
description of the anticipated effect of the
transportation improvement program toward
achieving the performance targets established
in the metropolitan transportation plan,
linking investment priorities to those
performance targets.
``(3) Included projects.--
``(A) Projects under this chapter and title
23.--A TIP developed under this subsection for
a metropolitan area shall include the projects
within the area that are proposed for funding
under this chapter and chapter 1 of title 23.
``(B) Projects under chapter 2 of title
23.--
``(i) Regionally significant
projects.--Regionally significant
projects proposed for funding under
chapter 2 of title 23 shall be
identified individually in the
transportation improvement program.
``(ii) Other projects.--Projects
proposed for funding under chapter 2 of
title 23 that are not determined to be
regionally significant shall be grouped
in 1 line item or identified
individually in the transportation
improvement program.
``(C) Consistency with long-range
transportation plan.--Each project shall be
consistent with the long-range transportation
plan developed under subsection (i) for the
area.
``(D) Requirement of anticipated full
funding.--The program shall include a project,
or an identified phase of a project, only if
full funding can reasonably be anticipated to
be available for the project or the identified
phase within the time period contemplated for
completion of the project or the identified
phase.
``(4) Notice and comment.--Before approving a TIP,
a metropolitan planning organization, in cooperation
with the State and any affected public transportation
operator, shall provide an opportunity for
participation by interested parties in the development
of the program, in accordance with subsection (i)(5).
``(5) Selection of projects.--
``(A) In general.--Except as otherwise
provided in subsection (k)(4) and in addition
to the TIP development required under paragraph
(1), the selection of Federally funded projects
in metropolitan areas shall be carried out,
from the approved TIP--
``(i) by--
``(I) in the case of
projects under title 23, the
State; and
``(II) in the case of
projects under this chapter,
the designated recipients of
public transportation funding;
and
``(ii) in cooperation with the
metropolitan planning organization.
``(B) Modifications to project priority.--
Notwithstanding any other provision of law,
action by the Secretary shall not be required
to advance a project included in the approved
TIP in place of another project in the program.
``(6) Selection of projects from illustrative
list.--
``(A) No required selection.--
Notwithstanding paragraph (2)(B)(iv), a State
or metropolitan planning organization shall not
be required to select any project from the
illustrative list of additional projects
included in the financial plan under paragraph
(2)(B)(iv).
``(B) Required action by the secretary.--
Action by the Secretary shall be required for a
State or metropolitan planning organization to
select any project from the illustrative list
of additional projects included in the
financial plan under paragraph (2)(B)(iv) for
inclusion in an approved TIP.
``(7) Publication.--
``(A) Publication of tips.--A TIP involving
Federal participation shall be published or
otherwise made readily available by the
metropolitan planning organization for public
review.
``(B) Publication of annual listings of
projects.--
``(i) In general.--An annual
listing of projects, including
investments in pedestrian walkways and
bicycle transportation facilities, for
which Federal funds have been obligated
in the preceding year shall be
published or otherwise made available
by the cooperative effort of the State,
transit operator, and metropolitan
planning organization for public
review.
``(ii) Requirement.--The listing
shall be consistent with the categories
identified in the TIP.
``(k) Transportation Management Areas.--
``(1) Identification and designation.--
``(A) Required identification.--The
Secretary shall identify as a transportation
management area each urbanized area (as defined
by the Bureau of the Census) with a population
of over 200,000 individuals.
``(B) Designations on request.--The
Secretary shall designate any additional area
as a transportation management area on the
request of the Governor and the metropolitan
planning organization designated for the area.
``(2) Transportation plans.--In a transportation
management area, transportation plans shall be based on
a continuing and comprehensive transportation planning
process carried out by the metropolitan planning
organization in cooperation with the State and public
transportation operators.
``(3) Congestion management process.--
``(A) In general.--Within a metropolitan
planning area serving a transportation
management area, the transportation planning
process under this section shall address
congestion management through a process that
provides for effective management and
operation, based on a cooperatively developed
and implemented metropolitan-wide strategy, of
new and existing transportation facilities
eligible for funding under this chapter and
title 23 through the use of travel demand
reduction and operational management
strategies.
``(B) Schedule.--The Secretary shall
establish an appropriate phase-in schedule for
compliance with the requirements of this
section but no sooner than 1 year after the
identification of a transportation management
area.
``(4) Selection of projects.--
``(A) In general.--All Federally funded
projects carried out within the boundaries of a
metropolitan planning area serving a
transportation management area under title 23
(excluding projects carried out on the National
Highway System) or under this chapter shall be
selected for implementation from the approved
TIP by the metropolitan planning organization
designated for the area in consultation with
the State and any affected public
transportation operator.
``(B) National highway system projects.--
Projects carried out within the boundaries of a
metropolitan planning area serving a
transportation management area on the National
Highway System shall be selected for
implementation from the approved TIP by the
State in cooperation with the metropolitan
planning organization designated for the area.
``(5) Certification.--
``(A) In general.--The Secretary shall--
``(i) ensure that the metropolitan
planning process of a metropolitan
planning organization serving a
transportation management area is being
carried out in accordance with
applicable provisions of Federal law;
and
``(ii) subject to subparagraph (B),
certify, not less often than once every
4 years, that the requirements of this
paragraph are met with respect to the
metropolitan planning process.
``(B) Requirements for certification.--The
Secretary may make the certification under
subparagraph (A) if--
``(i) the transportation planning
process complies with the requirements
of this section and other applicable
requirements of Federal law; and
``(ii) there is a TIP for the
metropolitan planning area that has
been approved by the metropolitan
planning organization and the Governor.
``(C) Effect of failure to certify.--
``(i) Withholding of project
funds.--If a metropolitan planning
process of a metropolitan planning
organization serving a transportation
management area is not certified, the
Secretary may withhold up to 20 percent
of the funds attributable to the
metropolitan planning area of the
metropolitan planning organization for
projects funded under this chapter and
title 23.
``(ii) Restoration of withheld
funds.--The withheld funds shall be
restored to the metropolitan planning
area at such time as the metropolitan
planning process is certified by the
Secretary.
``(D) Review of certification.--In making
certification determinations under this
paragraph, the Secretary shall provide for
public involvement appropriate to the
metropolitan area under review.
``(l) Report on Performance-based Planning Processes.--
``(1) In general.--The Secretary shall submit to
Congress a report on the effectiveness of the
performance-based planning processes of metropolitan
planning organizations under this section, taking into
consideration the requirements of this subsection
``(2) Report.--Not later than 5 years after the
date of enactment of the Federal Public Transportation
Act of 2012, the Secretary shall submit to Congress a
report evaluating--
``(A) the overall effectiveness of
performance-based planning as a tool for
guiding transportation investments;
``(B) the effectiveness of the performance-
based planning process of each metropolitan
planning organization under this section;
``(C) the extent to which metropolitan
planning organizations have achieved, or are
currently making substantial progress toward
achieving, the performance targets specified
under this section and whether metropolitan
planning organizations are developing
meaningful performance targets; and
``(D) the technical capacity of
metropolitan planning organizations that
operate within a metropolitan planning area of
less than 200,000 and their ability to carry
out the requirements of this section.
``(3) Publication.--The report under paragraph (2)
shall be published or otherwise made available in
electronically accessible formats and means, including
on the Internet.
``(m) Abbreviated Plans for Certain Areas.--
``(1) In general.--Subject to paragraph (2), in the
case of a metropolitan area not designated as a
transportation management area under this section, the
Secretary may provide for the development of an
abbreviated transportation plan and TIP for the
metropolitan planning area that the Secretary
determines is appropriate to achieve the purposes of
this section, taking into account the complexity of
transportation problems in the area.
``(2) Nonattainment areas.--The Secretary may not
permit abbreviated plans or TIPs for a metropolitan
area that is in nonattainment for ozone or carbon
monoxide under the Clean Air Act (42 U.S.C. 7401 et
seq.).
``(n) Additional Requirements for Certain Nonattainment
Areas.--
``(1) In general.--Notwithstanding any other
provisions of this chapter or title 23, for
transportation management areas classified as
nonattainment for ozone or carbon monoxide pursuant to
the Clean Air Act (42 U.S.C. 7401 et seq.), Federal
funds may not be advanced in such area for any highway
project that will result in a significant increase in
the carrying capacity for single-occupant vehicles
unless the project is addressed through a congestion
management process.
``(2) Applicability.--This subsection applies to a
nonattainment area within the metropolitan planning
area boundaries determined under subsection (e).
``(o) Limitation on Statutory Construction.--Nothing in
this section shall be construed to confer on a metropolitan
planning organization the authority to impose legal
requirements on any transportation facility, provider, or
project not eligible under this chapter or title 23.
``(p) Funding.--Funds set aside under section 104(f) of
title 23 or section 5305(g) shall be available to carry out
this section.
``(q) Continuation of Current Review Practice.--Since plans
and TIPs described in this section are subject to a reasonable
opportunity for public comment, since individual projects
included in plans and TIPs are subject to review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), and since decisions by the Secretary concerning plans
and TIPs described in this section have not been reviewed under
that Act as of January 1, 1997, any decision by the Secretary
concerning a plan or TIP described in this section shall not be
considered to be a Federal action subject to review under that
Act.''.
(b) Pilot Program for Transit-oriented Development
Planning.--
(1) Definitions.--In this subsection the following
definitions shall apply:
(A) Eligible project.--The term ``eligible
project'' means a new fixed guideway capital
project or a core capacity improvement project,
as those terms are defined in section 5309 of
title 49, United States Code, as amended by
this division.
(B) Secretary.--The term ``Secretary''
means the Secretary of Transportation.
(2) General authority.--The Secretary may make
grants under this subsection to a State or local
governmental authority to assist in financing
comprehensive planning associated with an eligible
project that seeks to--
(A) enhance economic development,
ridership, and other goals established during
the project development and engineering
processes;
(B) facilitate multimodal connectivity and
accessibility;
(C) increase access to transit hubs for
pedestrian and bicycle traffic;
(D) enable mixed-use development;
(E) identify infrastructure needs
associated with the eligible project; and
(F) include private sector participation.
(3) Eligibility.--A State or local governmental
authority that desires to participate in the program
under this subsection shall submit to the Secretary an
application that contains, at a minimum--
(A) identification of an eligible project;
(B) a schedule and process for the
development of a comprehensive plan;
(C) a description of how the eligible
project and the proposed comprehensive plan
advance the metropolitan transportation plan of
the metropolitan planning organization;
(D) proposed performance criteria for the
development and implementation of the
comprehensive plan; and
(E) identification of--
(i) partners;
(ii) availability of and authority
for funding; and
(iii) potential State, local or
other impediments to the implementation
of the comprehensive plan.
SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.
Section 5304 of title 49, United States Code, is amended to
read as follows:
``Sec. 5304. Statewide and nonmetropolitan transportation planning
``(a) General Requirements.--
``(1) Development of plans and programs.--Subject
to section 5303, to accomplish the objectives stated in
section 5303(a), each State shall develop a statewide
transportation plan and a statewide transportation
improvement program for all areas of the State.
``(2) Contents.--The statewide transportation plan
and the transportation improvement program developed
for each State shall provide for the development and
integrated management and operation of transportation
systems and facilities (including accessible pedestrian
walkways and bicycle transportation facilities) that
will function as an intermodal transportation system
for the State and an integral part of an intermodal
transportation system for the United States.
``(3) Process of development.--The process for
developing the statewide plan and the transportation
improvement program shall provide for consideration of
all modes of transportation and the policies stated in
section 5303(a) and shall be continuing, cooperative,
and comprehensive to the degree appropriate, based on
the complexity of the transportation problems to be
addressed.
``(b) Coordination With Metropolitan Planning; State
Implementation Plan.--A State shall--
``(1) coordinate planning carried out under this
section with the transportation planning activities
carried out under section 5303 for metropolitan areas
of the State and with statewide trade and economic
development planning activities and related multistate
planning efforts; and
``(2) develop the transportation portion of the
State implementation plan as required by the Clean Air
Act (42 U.S.C. 7401 et seq.).
``(c) Interstate Agreements.--
``(1) In general.--Two or more States may enter
into agreements or compacts, not in conflict with any
law of the United States, for cooperative efforts and
mutual assistance in support of activities authorized
under this section related to interstate areas and
localities in the States and establishing authorities
the States consider desirable for making the agreements
and compacts effective.
``(2) Reservation of rights.--The right to alter,
amend, or repeal interstate compacts entered into under
this subsection is expressly reserved.
``(d) Scope of Planning Process.--
``(1) In general.--Each State shall carry out a
statewide transportation planning process that provides
for consideration and implementation of projects,
strategies, and services that will--
``(A) support the economic vitality of the
United States, the States, nonmetropolitan
areas, and metropolitan areas, especially by
enabling global competitiveness, productivity,
and efficiency;
``(B) increase the safety of the
transportation system for motorized and
nonmotorized users;
``(C) increase the security of the
transportation system for motorized and
nonmotorized users;
``(D) increase the accessibility and
mobility of people and freight;
``(E) protect and enhance the environment,
promote energy conservation, improve the
quality of life, and promote consistency
between transportation improvements and State
and local planned growth and economic
development patterns;
``(F) enhance the integration and
connectivity of the transportation system,
across and between modes throughout the State,
for people and freight;
``(G) promote efficient system management
and operation; and
``(H) emphasize the preservation of the
existing transportation system.
``(2) Performance-based approach.--
``(A) In general.--The statewide
transportation planning process shall provide
for the establishment and use of a performance-
based approach to transportation decisionmaking
to support the national goals described in
section 150(b) of title 23 and the general
purposes described in section 5301.
``(B) Performance targets.--
``(i) Surface transportation
performance targets.--
``(I) In general.--Each
State shall establish
performance targets that
address the performance
measures described in section
150(c) of title 23, where
applicable, to use in tracking
progress towards attainment of
critical outcomes for the
State.
``(II) Coordination.--
Selection of performance
targets by a State shall be
coordinated with the relevant
metropolitan planning
organizations to ensure
consistency, to the maximum
extent practicable.
``(ii) Public transportation
performance targets.--In urbanized
areas with a population of fewer than
200,000 individuals, as calculated
according to the most recent decennial
census, and not represented by a
metropolitan planning organization,
selection of performance targets by a
State shall be coordinated, to the
maximum extent practicable, with
providers of public transportation to
ensure consistency with sections
5326(c) and 5329(d).
``(C) Integration of other performance-
based plans.--A State shall integrate into the
statewide transportation planning process,
directly or by reference, the goals,
objectives, performance measures, and targets
described in this paragraph, in other State
transportation plans and transportation
processes, as well as any plans developed
pursuant to title 23 by providers of public
transportation in urbanized areas with a
population of fewer than 200,000 individuals,
as calculated according to the most recent
decennial census, and not represented by a
metropolitan planning organization, required as
part of a performance-based program.
``(D) Use of performance measures and
targets.--The performance measures and targets
established under this paragraph shall be
considered by a State when developing policies,
programs, and investment priorities reflected
in the statewide transportation plan and
statewide transportation improvement program.
``(3) Failure to consider factors.--The failure to
take into consideration the factors specified in
paragraphs (1) and (2) shall not be subject to review
by any court under this chapter, title 23, subchapter
II of chapter 5 of title 5, or chapter 7 of title 5 in
any matter affecting a statewide transportation plan, a
statewide transportation improvement program, a project
or strategy, or the certification of a planning
process.
``(e) Additional Requirements.--``In carrying out planning
under this section, each State shall, at a minimum--
``(1) with respect to nonmetropolitan areas,
cooperate with affected local officials with
responsibility for transportation or, if applicable,
through regional transportation planning organizations
described in subsection (l);
``(2) consider the concerns of Indian tribal
governments and Federal land management agencies that
have jurisdiction over land within the boundaries of
the State; and
``(3) consider coordination of transportation
plans, the transportation improvement program, and
planning activities with related planning activities
being carried out outside of metropolitan planning
areas and between States.
``(f) Long-range Statewide Transportation Plan.--
``(1) Development.--Each State shall develop a
long-range statewide transportation plan, with a
minimum 20-year forecast period for all areas of the
State, that provides for the development and
implementation of the intermodal transportation system
of the State.
``(2) Consultation with governments.--
``(A) Metropolitan areas.--The statewide
transportation plan shall be developed for each
metropolitan area in the State in cooperation
with the metropolitan planning organization
designated for the metropolitan area under
section 5303.
``(B) Nonmetropolitan areas.--
``(i) In general.--With respect to
nonmetropolitan areas, the statewide
transportation plan shall be developed
in cooperation with affected
nonmetropolitan officials with
responsibility for transportation or,
if applicable, through regional
transportation planning organizations
described in subsection (l).
``(ii) Role of secretary.--The
Secretary shall not review or approve
the consultation process in each State.
``(C) Indian tribal areas.--With respect to
each area of the State under the jurisdiction
of an Indian tribal government, the statewide
transportation plan shall be developed in
consultation with the tribal government and the
Secretary of the Interior.
``(D) Consultation, comparison, and
consideration.--
``(i) In general.--The long-range
transportation plan shall be developed,
as appropriate, in consultation with
State, tribal, and local agencies
responsible for land use management,
natural resources, environmental
protection, conservation, and historic
preservation.
``(ii) Comparison and
consideration.--Consultation under
clause (i) shall involve comparison of
transportation plans to State and
tribal conservation plans or maps, if
available, and comparison of
transportation plans to inventories of
natural or historic resources, if
available.
``(3) Participation by interested parties.--
``(A) In general.--In developing the
statewide transportation plan, the State shall
provide to--
``(i) nonmetropolitan local elected
officials, or, if applicable, through
regional transportation planning
organizations described in subsection
(l), an opportunity to participate in
accordance with subparagraph (B)(i);
and
``(ii) citizens, affected public
agencies, representatives of public
transportation employees, freight
shippers, private providers of
transportation, representatives of
users of public transportation,
representatives of users of pedestrian
walkways and bicycle transportation
facilities, representatives of the
disabled, providers of freight
transportation services, and other
interested parties a reasonable
opportunity to comment on the proposed
plan.
``(B) Methods.--In carrying out
subparagraph (A), the State shall, to the
maximum extent practicable--
``(i) develop and document a
consultative process to carry out
subparagraph (A)(i) that is separate
and discrete from the public
involvement process developed under
clause (ii);
``(ii) hold any public meetings at
convenient and accessible locations and
times;
``(iii) employ visualization
techniques to describe plans; and
``(iv) make public information
available in electronically accessible
format and means, such as the World
Wide Web, as appropriate to afford
reasonable opportunity for
consideration of public information
under subparagraph (A).
``(4) Mitigation activities.--
``(A) In general.--A long-range
transportation plan shall include a discussion
of potential environmental mitigation
activities and potential areas to carry out
these activities, including activities that may
have the greatest potential to restore and
maintain the environmental functions affected
by the plan.
``(B) Consultation.--The discussion shall
be developed in consultation with Federal,
State, and tribal wildlife, land management,
and regulatory agencies.
``(5) Financial plan.--The statewide transportation
plan may include--
``(A) a financial plan that--
``(i) demonstrates how the adopted
statewide transportation plan can be
implemented;
``(ii) indicates resources from
public and private sources that are
reasonably expected to be made
available to carry out the plan; and
``(iii) recommends any additional
financing strategies for needed
projects and programs; and
``(B) for illustrative purposes, additional
projects that would be included in the adopted
statewide transportation plan if reasonable
additional resources beyond those identified in
the financial plan were available.
``(6) Selection of projects from illustrative
list.--A State shall not be required to select any
project from the illustrative list of additional
projects included in the financial plan described in
paragraph (5).
``(7) Performance-based approach.--The statewide
transportation plan should include--
``(A) a description of the performance
measures and performance targets used in
assessing the performance of the transportation
system in accordance with subsection (d)(2);
and
``(B) a system performance report and
subsequent updates evaluating the condition and
performance of the transportation system with
respect to the performance targets described in
subsection (d)(2), including progress achieved
by the metropolitan planning organization in
meeting the performance targets in comparison
with system performance recorded in previous
reports;
``(8) Existing system.--The statewide
transportation plan should include capital, operations
and management strategies, investments, procedures, and
other measures to ensure the preservation and most
efficient use of the existing transportation system.
``(9) Publication of long-range transportation
plans.--Each long-range transportation plan prepared by
a State shall be published or otherwise made available,
including (to the maximum extent practicable) in
electronically accessible formats and means, such as
the World Wide Web.
``(g) Statewide Transportation Improvement Program.--
``(1) Development.--
``(A) In general.--Each State shall develop
a statewide transportation improvement program
for all areas of the State.
``(B) Duration and updating of program.--
Each program developed under subparagraph (A)
shall cover a period of 4 years and shall be
updated every 4 years or more frequently if the
Governor of the State elects to update more
frequently.
``(2) Consultation with governments.--
``(A) Metropolitan areas.--With respect to
each metropolitan area in the State, the
program shall be developed in cooperation with
the metropolitan planning organization
designated for the metropolitan area under
section 5303.
``(B) Nonmetropolitan areas.--
``(i) In general.--With respect to
each nonmetropolitan area in the State,
the program shall be developed in
cooperation with affected
nonmetropolitan local officials with
responsibility for transportation or,
if applicable, through regional
transportation planning organizations
described in subsection (l).
``(ii) Role of secretary.--The
Secretary shall not review or approve
the specific consultation process in
the State.
``(C) Indian tribal areas.--With respect to
each area of the State under the jurisdiction
of an Indian tribal government, the program
shall be developed in consultation with the
tribal government and the Secretary of the
Interior.
``(3) Participation by interested parties.--In
developing the program, the State shall provide
citizens, affected public agencies, representatives of
public transportation employees, freight shippers,
private providers of transportation, providers of
freight transportation services, representatives of
users of public transportation, representatives of
users of pedestrian walkways and bicycle transportation
facilities, representatives of the disabled, and other
interested parties with a reasonable opportunity to
comment on the proposed program.
``(4) Performance target achievement.--A statewide
transportation improvement program shall include, to
the maximum extent practicable, a discussion of the
anticipated effect of the statewide transportation
improvement program toward achieving the performance
targets established in the statewide transportation
plan, linking investment priorities to those
performance targets.
``(5) Included projects.--
``(A) In general.--A transportation
improvement program developed under this
subsection for a State shall include Federally
supported surface transportation expenditures
within the boundaries of the State.
``(B) Listing of projects.--
``(i) In general.--An annual
listing of projects for which funds
have been obligated for the preceding
year in each metropolitan planning area
shall be published or otherwise made
available by the cooperative effort of
the State, transit operator, and the
metropolitan planning organization for
public review.
``(ii) Funding categories.--The
listing described in clause (i) shall
be consistent with the funding
categories identified in each
metropolitan transportation improvement
program.
``(C) Projects under chapter 2.--
``(i) Regionally significant
projects.--Regionally significant
projects proposed for funding under
chapter 2 of title 23 shall be
identified individually in the
transportation improvement program.
``(ii) Other projects.--Projects
proposed for funding under chapter 2 of
title 23 that are not determined to be
regionally significant shall be grouped
in 1 line item or identified
individually in the transportation
improvement program.
``(D) Consistency with statewide
transportation plan.--Each project shall be--
``(i) consistent with the statewide
transportation plan developed under
this section for the State;
``(ii) identical to the project or
phase of the project as described in an
approved metropolitan transportation
plan; and
``(iii) in conformance with the
applicable State air quality
implementation plan developed under the
Clean Air Act (42 U.S.C. 7401 et seq.),
if the project is carried out in an
area designated as a nonattainment area
for ozone, particulate matter, or
carbon monoxide under part D of title I
of that Act (42 U.S.C. 7501 et seq.).
``(E) Requirement of anticipated full
funding.--The transportation improvement
program shall include a project, or an
identified phase of a project, only if full
funding can reasonably be anticipated to be
available for the project within the time
period contemplated for completion of the
project.
``(F) Financial plan.--
``(i) In general.--The
transportation improvement program may
include a financial plan that
demonstrates how the approved
transportation improvement program can
be implemented, indicates resources
from public and private sources that
are reasonably expected to be made
available to carry out the
transportation improvement program, and
recommends any additional financing
strategies for needed projects and
programs.
``(ii) Additional projects.--The
financial plan may include, for
illustrative purposes, additional
projects that would be included in the
adopted transportation plan if
reasonable additional resources beyond
those identified in the financial plan
were available.
``(G) Selection of projects from
illustrative list.--
``(i) No required selection.--
Notwithstanding subparagraph (F), a
State shall not be required to select
any project from the illustrative list
of additional projects included in the
financial plan under subparagraph (F).
``(ii) Required action by the
secretary.--Action by the Secretary
shall be required for a State to select
any project from the illustrative list
of additional projects included in the
financial plan under subparagraph (F)
for inclusion in an approved
transportation improvement program.
``(H) Priorities.--The transportation
improvement program shall reflect the
priorities for programming and expenditures of
funds, including transportation enhancement
activities, required by this chapter and title
23.
``(6) Project selection for areas of less than
50,000 population.--
``(A) In general.--Projects carried out in
areas with populations of less than 50,000
individuals shall be selected, from the
approved transportation improvement program
(excluding projects carried out on the National
Highway System and projects carried out under
the bridge program or the Interstate
maintenance program under title 23 or under
sections 5310 and 5311 of this chapter), by the
State in cooperation with the affected
nonmetropolitan local officials with
responsibility for transportation or, if
applicable, through regional transportation
planning organizations described in subsection
(l).
``(B) Other projects.--Projects carried out
in areas with populations of less than 50,000
individuals on the National Highway System or
under the bridge program or the Interstate
maintenance program under title 23 or under
sections 5310 and 5311 of this chapter shall be
selected, from the approved statewide
transportation improvement program, by the
State in consultation with the affected
nonmetropolitan local officials with
responsibility for transportation.
``(7) Transportation improvement program
approval.--Every 4 years, a transportation improvement
program developed under this subsection shall be
reviewed and approved by the Secretary if based on a
current planning finding.
``(8) Planning finding.--A finding shall be made by
the Secretary at least every 4 years that the
transportation planning process through which statewide
transportation plans and programs are developed is
consistent with this section and section 5303.
``(9) Modifications to project priority.--
Notwithstanding any other provision of law, action by
the Secretary shall not be required to advance a
project included in the approved transportation
improvement program in place of another project in the
program.
``(h) Performance-based Planning Processes Evaluation.--
``(1) In general.--The Secretary shall establish
criteria to evaluate the effectiveness of the
performance-based planning processes of States, taking
into consideration the following:
``(A) The extent to which the State is
making progress toward achieving, the
performance targets described in subsection
(d)(2), taking into account whether the State
developed appropriate performance targets.
``(B) The extent to which the State has
made transportation investments that are
efficient and cost-effective.
``(C) The extent to which the State--
``(i) has developed an investment
process that relies on public input and
awareness to ensure that investments
are transparent and accountable; and
``(ii) provides reports allowing
the public to access the information
being collected in a format that allows
the public to meaningfully assess the
performance of the State.
``(2) Report.--
``(A) In general.--Not later than 5 years
after the date of enactment of the Federal
Public Transportation Act of 2012, the
Secretary shall submit to Congress a report
evaluating--
``(i) the overall effectiveness of
performance-based planning as a tool
for guiding transportation investments;
and
``(ii) the effectiveness of the
performance-based planning process of
each State.
``(B) Publication.--The report under
subparagraph (A) shall be published or
otherwise made available in electronically
accessible formats and means, including on the
Internet.
``(i) Treatment of Certain State Laws as Congestion
Management Processes.--For purposes of this section and section
5303, and sections 134 and 135 of title 23, State laws, rules,
or regulations pertaining to congestion management systems or
programs may constitute the congestion management process under
this this section and section 5303, and sections 134 and 135 of
title 23, if the Secretary finds that the State laws, rules, or
regulations are consistent with, and fulfill the intent of, the
purposes of this section and section 5303, and sections 134 and
135 of title 23, as appropriate.
``(j) Continuation of Current Review Practice.--Since the
statewide transportation plan and the transportation
improvement program described in this section are subject to a
reasonable opportunity for public comment, since individual
projects included in the statewide transportation plans and the
transportation improvement program are subject to review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.), and since decisions by the Secretary concerning
statewide transportation plans or the transportation
improvement program described in this section have not been
reviewed under that Act as of January 1, 1997, any decision by
the Secretary concerning a metropolitan or statewide
transportation plan or the transportation improvement program
described in this section shall not be considered to be a
Federal action subject to review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(k) Schedule for Implementation.--The Secretary shall
issue guidance on a schedule for implementation of the changes
made by this section, taking into consideration the established
planning update cycle for States. The Secretary shall not
require a State to deviate from its established planning update
cycle to implement changes made by this section. States shall
reflect changes made to their transportation plan or
transportation improvement program updates not later than 2
years after the date of issuance of guidance by the Secretary
under this subsection.
``(l) Designation of Regional Transportation Planning
Organizations.--
``(1) In general.--To carry out the transportation
planning process required by this section, a State may
establish and designate regional transportation
planning organizations to enhance the planning,
coordination, and implementation of statewide strategic
long-range transportation plans and transportation
improvement programs, with an emphasis on addressing
the needs of nonmetropolitan areas of the State.
``(2) Structure.--A regional transportation
planning organization shall be established as a
multijurisdictional organization of nonmetropolitan
local officials or their designees who volunteer for
such organization and representatives of local
transportation systems who volunteer for such
organization.
``(3) Requirements.--A regional transportation
planning organization shall establish, at a minimum--
``(A) a policy committee, the majority of
which shall consist of nonmetropolitan local
officials, or their designees, and, as
appropriate, additional representatives from
the State, private business, transportation
service providers, economic development
practitioners, and the public in the region;
and
``(B) a fiscal and administrative agent,
such as an existing regional planning and
development organization, to provide
professional planning, management, and
administrative support.
``(4) Duties.--The duties of a regional
transportation planning organization shall include--
``(A) developing and maintaining, in
cooperation with the State, regional long-range
multimodal transportation plans;
``(B) developing a regional transportation
improvement program for consideration by the
State;
``(C) fostering the coordination of local
planning, land use, and economic development
plans with State, regional, and local
transportation plans and programs;
``(D) providing technical assistance to
local officials;
``(E) participating in national,
multistate, and State policy and planning
development processes to ensure the regional
and local input of nonmetropolitan areas;
``(F) providing a forum for public
participation in the statewide and regional
transportation planning processes;
``(G) considering and sharing plans and
programs with neighboring regional
transportation planning organizations,
metropolitan planning organizations, and, where
appropriate, tribal organizations; and
``(H) conducting other duties, as
necessary, to support and enhance the statewide
planning process under subsection (d).
``(5) States without regional transportation
planning organizations.--If a State chooses not to
establish or designate a regional transportation
planning organization, the State shall consult with
affected nonmetropolitan local officials to determine
projects that may be of regional significance.''.
SEC. 20007. URBANIZED AREA FORMULA GRANTS.
Section 5307 of title 49, United States Code, is amended to
read as follows:
``Sec. 5307. Urbanized area formula grants
``(a) General Authority.--
``(1) Grants.--The Secretary may make grants under
this section for--
``(A) capital projects;
``(B) planning;
``(C) job access and reverse commute
projects; and
``(D) operating costs of equipment and
facilities for use in public transportation in
an urbanized area with a population of fewer
than 200,000 individuals, as determined by the
Bureau of the Census.
``(2) Special rule.--The Secretary may make grants
under this section to finance the operating cost of
equipment and facilities for use in public
transportation, excluding rail fixed guideway, in an
urbanized area with a population of not fewer than
200,000 individuals, as determined by the Bureau of the
Census--
``(A) for public transportation systems
that operate 75 or fewer buses in fixed route
service during peak service hours, in an amount
not to exceed 75 percent of the share of the
apportionment which is attributable to such
systems within the urbanized area, as measured
by vehicle revenue hours; and
``(B) for public transportation systems
that operate a minimum of 76 buses and a
maximum of 100 buses in fixed route service
during peak service hours, in an amount not to
exceed 50 percent of the share of the
apportionment which is attributable to such
systems within the urbanized area, as measured
by vehicle revenue hours.
``(b) Program of Projects.--Each recipient of a grant
shall--
``(1) make available to the public information on
amounts available to the recipient under this section;
``(2) develop, in consultation with interested
parties, including private transportation providers, a
proposed program of projects for activities to be
financed;
``(3) publish a proposed program of projects in a
way that affected individuals, private transportation
providers, and local elected officials have the
opportunity to examine the proposed program and submit
comments on the proposed program and the performance of
the recipient;
``(4) provide an opportunity for a public hearing
in which to obtain the views of individuals on the
proposed program of projects;
``(5) ensure that the proposed program of projects
provides for the coordination of public transportation
services assisted under section 5336 of this title with
transportation services assisted from other United
States Government sources;
``(6) consider comments and views received,
especially those of private transportation providers,
in preparing the final program of projects; and
``(7) make the final program of projects available
to the public.
``(c) Grant Recipient Requirements.--A recipient may
receive a grant in a fiscal year only if--
``(1) the recipient, within the time the Secretary
prescribes, submits a final program of projects
prepared under subsection (b) of this section and a
certification for that fiscal year that the recipient
(including a person receiving amounts from a Governor
under this section)--
``(A) has or will have the legal,
financial, and technical capacity to carry out
the program, including safety and security
aspects of the program;
``(B) has or will have satisfactory
continuing control over the use of equipment
and facilities;
``(C) will maintain equipment and
facilities;
``(D) will ensure that, during non-peak
hours for transportation using or involving a
facility or equipment of a project financed
under this section, a fare that is not more
than 50 percent of the peak hour fare will be
charged for any--
``(i) senior;
``(ii) individual who, because of
illness, injury, age, congenital
malfunction, or other incapacity or
temporary or permanent disability
(including an individual who is a
wheelchair user or has semiambulatory
capability), cannot use a public
transportation service or a public
transportation facility effectively
without special facilities, planning,
or design; and
``(iii) individual presenting a
Medicare card issued to that individual
under title II or XVIII of the Social
Security Act (42 U.S.C. 401 et seq. and
1395 et seq.);
``(E) in carrying out a procurement under
this section, will comply with sections 5323
and 5325;
``(F) has complied with subsection (b) of
this section;
``(G) has available and will provide the
required amounts as provided by subsection (d)
of this section;
``(H) will comply with sections 5303 and
5304;
``(I) has a locally developed process to
solicit and consider public comment before
raising a fare or carrying out a major
reduction of transportation;
``(J)(i) will expend for each fiscal year
for public transportation security projects,
including increased lighting in or adjacent to
a public transportation system (including bus
stops, subway stations, parking lots, and
garages), increased camera surveillance of an
area in or adjacent to that system, providing
an emergency telephone line to contact law
enforcement or security personnel in an area in
or adjacent to that system, and any other
project intended to increase the security and
safety of an existing or planned public
transportation system, at least 1 percent of
the amount the recipient receives for each
fiscal year under section 5336 of this title;
or
``(ii) has decided that the expenditure for
security projects is not necessary;
``(K) in the case of a recipient for an
urbanized area with a population of not fewer
than 200,000 individuals, as determined by the
Bureau of the Census--
``(i) will expend not less than 1
percent of the amount the recipient
receives each fiscal year under this
section for associated transit
improvements, as defined in section
5302; and
``(ii) will submit an annual report
listing projects carried out in the
preceding fiscal year with those funds;
and
``(L) will comply with section 5329(d); and
``(2) the Secretary accepts the certification.
``(d) Government Share of Costs.--
``(1) Capital projects.--A grant for a capital
project under this section shall be for 80 percent of
the net project cost of the project. The recipient may
provide additional local matching amounts.
``(2) Operating expenses.--A grant for operating
expenses under this section may not exceed 50 percent
of the net project cost of the project.
``(3) Remaining costs.--Subject to paragraph (4),
the remainder of the net project costs shall be
provided--
``(A) in cash from non-Government sources
other than revenues from providing public
transportation services;
``(B) from revenues from the sale of
advertising and concessions;
``(C) from an undistributed cash surplus, a
replacement or depreciation cash fund or
reserve, or new capital;
``(D) from amounts appropriated or
otherwise made available to a department or
agency of the Government (other than the
Department of Transportation) that are eligible
to be expended for transportation; and
``(E) from amounts received under a service
agreement with a State or local social service
agency or private social service organization.
``(4) Use of certain funds.--For purposes of
subparagraphs (D) and (E) of paragraph (3), the
prohibitions on the use of funds for matching
requirements under section 403(a)(5)(C)(vii) of the
Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall
not apply to Federal or State funds to be used for
transportation purposes.
``(e) Undertaking Projects in Advance.--
``(1) Payment.--The Secretary may pay the
Government share of the net project cost to a State or
local governmental authority that carries out any part
of a project eligible under subparagraph (A) or (B) of
subsection (a)(1) without the aid of amounts of the
Government and according to all applicable procedures
and requirements if--
``(A) the recipient applies for the
payment;
``(B) the Secretary approves the payment;
and
``(C) before carrying out any part of the
project, the Secretary approves the plans and
specifications for the part in the same way as
for other projects under this section.
``(2) Approval of application.--The Secretary may
approve an application under paragraph (1) of this
subsection only if an authorization for this section is
in effect for the fiscal year to which the application
applies. The Secretary may not approve an application
if the payment will be more than--
``(A) the recipient's expected
apportionment under section 5336 of this title
if the total amount authorized to be
appropriated for the fiscal year to carry out
this section is appropriated; less
``(B) the maximum amount of the
apportionment that may be made available for
projects for operating expenses under this
section.
``(3) Financing costs.--
``(A) In general.--The cost of carrying out
part of a project includes the amount of
interest earned and payable on bonds issued by
the recipient to the extent proceeds of the
bonds are expended in carrying out the part.
``(B) Limitation on the amount of
interest.--The amount of interest allowed under
this paragraph may not be more than the most
favorable financing terms reasonably available
for the project at the time of borrowing.
``(C) Certification.--The applicant shall
certify, in a manner satisfactory to the
Secretary, that the applicant has shown
reasonable diligence in seeking the most
favorable financing terms.
``(f) Reviews, Audits, and Evaluations.--
``(1) Annual review.--
``(A) In general.--At least annually, the
Secretary shall carry out, or require a
recipient to have carried out independently,
reviews and audits the Secretary considers
appropriate to establish whether the recipient
has carried out--
``(i) the activities proposed under
subsection (c) of this section in a
timely and effective way and can
continue to do so; and
``(ii) those activities and its
certifications and has used amounts of
the Government in the way required by
law.
``(B) Auditing procedures.--An audit of the
use of amounts of the Government shall comply
with the auditing procedures of the Comptroller
General.
``(2) Triennial review.--At least once every 3
years, the Secretary shall review and evaluate
completely the performance of a recipient in carrying
out the recipient's program, specifically referring to
compliance with statutory and administrative
requirements and the extent to which actual program
activities are consistent with the activities proposed
under subsection (c) of this section and the planning
process required under sections 5303, 5304, and 5305 of
this title. To the extent practicable, the Secretary
shall coordinate such reviews with any related State or
local reviews.
``(3) Actions resulting from review, audit, or
evaluation.--The Secretary may take appropriate action
consistent with a review, audit, and evaluation under
this subsection, including making an appropriate
adjustment in the amount of a grant or withdrawing the
grant.
``(g) Treatment.--For purposes of this section, the United
States Virgin Islands shall be treated as an urbanized area, as
defined in section 5302.
``(h) Passenger Ferry Grants.--
``(1) In general.--The Secretary may make grants
under this subsection to recipients for passenger ferry
projects that are eligible for a grant under subsection
(a).
``(2) Grant requirements.--Except as otherwise
provided in this subsection, a grant under this
subsection shall be subject to the same terms and
conditions as a grant under subsection (a).
``(3) Competitive process.--The Secretary shall
solicit grant applications and make grants for eligible
projects on a competitive basis.''.
SEC. 20008. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS.
(a) In General.--Section 5309 of title 49, United States
Code, is amended to read as follows:
``Sec. 5309. Fixed guideway capital investment grants
``(a) Definitions.--In this section, the following
definitions shall apply:
``(1) Applicant.--The term `applicant' means a
State or local governmental authority that applies for
a grant under this section.
``(2) Core capacity improvement project.--The term
`core capacity improvement project' means a substantial
corridor-based capital investment in an existing fixed
guideway system that increases the capacity of a
corridor by not less than 10 percent. The term does not
include project elements designed to maintain a state
of good repair of the existing fixed guideway system.
``(3) Corridor-based bus rapid transit project.--
The term `corridor-based bus rapid transit project'
means a small start project utilizing buses in which
the project represents a substantial investment in a
defined corridor as demonstrated by features that
emulate the services provided by rail fixed guideway
public transportation systems, including defined
stations; traffic signal priority for public
transportation vehicles; short headway bidirectional
services for a substantial part of weekdays and weekend
days; and any other features the Secretary may
determine support a long-term corridor investment, but
the majority of which does not operate in a separated
right-of-way dedicated for public transportation use
during peak periods.
``(4) Fixed guideway bus rapid transit project.--
The term `fixed guideway bus rapid transit project'
means a bus capital project--
``(A) in which the majority of the project
operates in a separated right-of-way dedicated
for public transportation use during peak
periods;
``(B) that represents a substantial
investment in a single route in a defined
corridor or subarea; and
``(C) that includes features that emulate
the services provided by rail fixed guideway
public transportation systems, including--
``(i) defined stations;
``(ii) traffic signal priority for
public transportation vehicles;
``(iii) short headway bidirectional
services for a substantial part of
weekdays and weekend days; and
``(iv) any other features the
Secretary may determine are necessary
to produce high-quality public
transportation services that emulate
the services provided by rail fixed
guideway public transportation systems.
``(5) New fixed guideway capital project.--The term
`new fixed guideway capital project' means--
``(A) a new fixed guideway project that is
a minimum operable segment or extension to an
existing fixed guideway system; or
``(B) a fixed guideway bus rapid transit
project that is a minimum operable segment or
an extension to an existing bus rapid transit
system.
``(6) Program of interrelated projects.--The term
`program of interrelated projects' means the
simultaneous development of--
``(A) 2 or more new fixed guideway capital
projects or core capacity improvement projects;
or
``(B) 1 or more new fixed guideway capital
projects and 1 or more core capacity
improvement projects.
``(7) Small start project.--The term `small start
project' means a new fixed guideway capital project or
corridor-based bus rapid transit project for which--
``(A) the Federal assistance provided or to
be provided under this section is less than
$75,000,000; and
``(B) the total estimated net capital cost
is less than $250,000,000.
``(b) General Authority.--The Secretary may make grants
under this section to State and local governmental authorities
to assist in financing--
``(1) new fixed guideway capital projects or small
start projects, including the acquisition of real
property, the initial acquisition of rolling stock for
the system, the acquisition of rights-of-way, and
relocation, for fixed guideway corridor development for
projects in the advanced stages of project development
or engineering; and
``(2) core capacity improvement projects, including
the acquisition of real property, the acquisition of
rights-of-way, double tracking, signalization
improvements, electrification, expanding system
platforms, acquisition of rolling stock associated with
corridor improvements increasing capacity, construction
of infill stations, and such other capacity improvement
projects as the Secretary determines are appropriate to
increase the capacity of an existing fixed guideway
system corridor by at least 10 percent. Core capacity
improvement projects do not include elements to improve
general station facilities or parking, or acquisition
of rolling stock alone.
``(c) Grant Requirements.--
``(1) In general.--The Secretary may make a grant
under this section for new fixed guideway capital
projects, small start projects, or core capacity
improvement projects, if the Secretary determines
that--
``(A) the project is part of an approved
transportation plan required under sections
5303 and 5304; and
``(B) the applicant has, or will have--
``(i) the legal, financial, and
technical capacity to carry out the
project, including the safety and
security aspects of the project;
``(ii) satisfactory continuing
control over the use of the equipment
or facilities; and
``(iii) the technical and financial
capacity to maintain new and existing
equipment and facilities.
``(2) Certification.--An applicant that has
submitted the certifications required under
subparagraphs (A), (B), (C), and (H) of section
5307(c)(1) shall be deemed to have provided sufficient
information upon which the Secretary may make the
determinations required under this subsection.
``(3) Technical capacity.--The Secretary shall use
an expedited technical capacity review process for
applicants that have recently and successfully
completed at least 1 new fixed guideway capital
project, or core capacity improvement project, if--
``(A) the applicant achieved budget, cost,
and ridership outcomes for the project that are
consistent with or better than projections; and
``(B) the applicant demonstrates that the
applicant continues to have the staff expertise
and other resources necessary to implement a
new project.
``(4) Recipient requirements.--A recipient of a
grant awarded under this section shall be subject to
all terms, conditions, requirements, and provisions
that the Secretary determines to be necessary or
appropriate for purposes of this section.
``(d) New Fixed Guideway Grants.--
``(1) Project development phase.--
``(A) Entrance into project development
phase.--A new fixed guideway capital project
shall enter into the project development phase
when--
``(i) the applicant--
``(I) submits a letter to
the Secretary describing the
project and requesting entry
into the project development
phase; and
``(II) initiates activities
required to be carried out
under the National
Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.)
with respect to the project;
and
``(ii) the Secretary--
``(I) responds in writing
to the applicant within 45 days
whether the information
provided is sufficient to enter
into the project development
phase, including, when
necessary, a detailed
description of any information
deemed insufficient; and
``(II) provides concurrent
notice to the Committee on
Banking, Housing, and Urban
Affairs of the Senate and the
Committee on Transportation and
Infrastructure of the House of
Representatives of whether the
new fixed guideway capital
project is entering the project
development phase.
``(B) Activities during project development
phase.--Concurrent with the analysis required
to be made under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.),
each applicant shall develop sufficient
information to enable the Secretary to make
findings of project justification, policies and
land use patterns that promote public
transportation, and local financial commitment
under this subsection.
``(C) Completion of project development
activities required.--
``(i) In general.--Not later than 2
years after the date on which a project
enters into the project development
phase, the applicant shall complete the
activities required to obtain a project
rating under subsection (g)(2) and
submit completed documentation to the
Secretary.
``(ii) Extension of time.--Upon the
request of an applicant, the Secretary
may extend the time period under clause
(i), if the applicant submits to the
Secretary--
``(I) a reasonable plan for
completing the activities
required under this paragraph;
and
``(II) an estimated time
period within which the
applicant will complete such
activities.
``(2) Engineering phase.--
``(A) In general.--A new fixed guideway
capital project may advance to the engineering
phase upon completion of activities required
under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), as demonstrated
by a record of decision with respect to the
project, a finding that the project has no
significant impact, or a determination that the
project is categorically excluded, only if the
Secretary determines that the project--
``(i) is selected as the locally
preferred alternative at the completion
of the process required under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.);
``(ii) is adopted into the
metropolitan transportation plan
required under section 5303;
``(iii) is justified based on a
comprehensive review of the project's
mobility improvements, the project's
environmental benefits, congestion
relief associated with the project,
economic development effects associated
with the project, policies and land use
patterns of the project that support
public transportation, and the
project's cost-effectiveness as
measured by cost per rider;
``(iv) is supported by policies and
land use patterns that promote public
transportation, including plans for
future land use and rezoning, and
economic development around public
transportation stations; and
``(v) is supported by an acceptable
degree of local financial commitment
(including evidence of stable and
dependable financing sources), as
required under subsection (f).
``(B) Determination that project is
justified.--In making a determination under
subparagraph (A)(iii), the Secretary shall
evaluate, analyze, and consider--
``(i) the reliability of the
forecasting methods used to estimate
costs and utilization made by the
recipient and the contractors to the
recipient; and
``(ii) population density and
current public transportation ridership
in the transportation corridor.
``(e) Core Capacity Improvement Projects.--
``(1) Project development phase.--
``(A) Entrance into project development
phase.--A core capacity improvement project
shall be deemed to have entered into the
project development phase if--
``(i) the applicant--
``(I) submits a letter to
the Secretary describing the
project and requesting entry
into the project development
phase; and
``(II) initiates activities
required to be carried out
under the National
Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.)
with respect to the project;
and
``(ii) the Secretary--
``(I) responds in writing
to the applicant within 45 days
whether the information
provided is sufficient to enter
into the project development
phase, including when necessary
a detailed description of any
information deemed
insufficient; and
``(II) provides concurrent
notice to the Committee on
Banking, Housing, and Urban
Affairs of the Senate and the
Committee on Transportation and
Infrastructure of the House of
Representatives of whether the
core capacity improvement
project is entering the project
development phase.
``(B) Activities during project development
phase.--Concurrent with the analysis required
to be made under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.),
each applicant shall develop sufficient
information to enable the Secretary to make
findings of project justification and local
financial commitment under this subsection.
``(C) Completion of project development
activities required.--
``(i) In general.--Not later than 2
years after the date on which a project
enters into the project development
phase, the applicant shall complete the
activities required to obtain a project
rating under subsection (g)(2) and
submit completed documentation to the
Secretary.
``(ii) Extension of time.--Upon the
request of an applicant, the Secretary
may extend the time period under clause
(i), if the applicant submits to the
Secretary--
``(I) a reasonable plan for
completing the activities
required under this paragraph;
and
``(II) an estimated time
period within which the
applicant will complete such
activities.
``(2) Engineering phase.--
``(A) In general.--A core capacity
improvement project may advance into the
engineering phase upon completion of activities
required under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), as
demonstrated by a record of decision with
respect to the project, a finding that the
project has no significant impact, or a
determination that the project is categorically
excluded, only if the Secretary determines that
the project--
``(i) is selected as the locally
preferred alternative at the completion
of the process required under the
National Environmental Policy Act of
1969;
``(ii) is adopted into the
metropolitan transportation plan
required under section 5303;
``(iii) is in a corridor that is--
``(I) at or over capacity;
or
``(II) projected to be at
or over capacity within the
next 5 years;
``(iv) is justified based on a
comprehensive review of the project's
mobility improvements, the project's
environmental benefits, congestion
relief associated with the project,
economic development effects associated
with the project, the capacity needs of
the corridor, and the project's cost-
effectiveness as measured by cost per
rider; and
``(v) is supported by an acceptable
degree of local financial commitment
(including evidence of stable and
dependable financing sources), as
required under subsection (f).
``(B) Determination that project is
justified.--In making a determination under
subparagraph (A)(iv), the Secretary shall
evaluate, analyze, and consider--
``(i) the reliability of the
forecasting methods used to estimate
costs and utilization made by the
recipient and the contractors to the
recipient;
``(ii) whether the project will
increase capacity at least 10 percent
in a corridor;
``(iii) whether the project will
improve interconnectivity among
existing systems; and
``(iv) whether the project will
improve environmental outcomes.
``(f) Financing Sources.--
``(1) Requirements.--In determining whether a
project is supported by an acceptable degree of local
financial commitment and shows evidence of stable and
dependable financing sources for purposes of subsection
(d)(2)(A)(v) or (e)(2)(A)(v), the Secretary shall
require that--
``(A) the proposed project plan provides
for the availability of contingency amounts
that the Secretary determines to be reasonable
to cover unanticipated cost increases or
funding shortfalls;
``(B) each proposed local source of capital
and operating financing is stable, reliable,
and available within the proposed project
timetable; and
``(C) local resources are available to
recapitalize, maintain, and operate the overall
existing and proposed public transportation
system, including essential feeder bus and
other services necessary to achieve the
projected ridership levels without requiring a
reduction in existing public transportation
services or level of service to operate the
project.
``(2) Considerations.--In assessing the stability,
reliability, and availability of proposed sources of
local financing for purposes of subsection (d)(2)(A)(v)
or (e)(2)(A)(v), the Secretary shall consider--
``(A) the reliability of the forecasting
methods used to estimate costs and revenues
made by the recipient and the contractors to
the recipient;
``(B) existing grant commitments;
``(C) the degree to which financing sources
are dedicated to the proposed purposes;
``(D) any debt obligation that exists, or
is proposed by the recipient, for the proposed
project or other public transportation purpose;
``(E) the extent to which the project has a
local financial commitment that exceeds the
required non-Government share of the cost of
the project; and
``(F) private contributions to the project,
including cost-effective project delivery,
management or transfer of project risks,
expedited project schedule, financial
partnering, and other public-private
partnership strategies.
``(g) Project Advancement and Ratings.--
``(1) Project advancement.--A new fixed guideway
capital project or core capacity improvement project
proposed to be carried out using a grant under this
section may not advance from the project development
phase to the engineering phase, or from the engineering
phase to the construction phase, unless the Secretary
determines that--
``(A) the project meets the applicable
requirements under this section; and
``(B) there is a reasonable likelihood that
the project will continue to meet the
requirements under this section.
``(2) Ratings.--
``(A) Overall rating.--In making a
determination under paragraph (1), the
Secretary shall evaluate and rate a project as
a whole on a 5-point scale (high, medium-high,
medium, medium-low, or low) based on--
``(i) in the case of a new fixed
guideway capital project, the project
justification criteria under subsection
(d)(2)(A)(iii), the policies and land
use patterns that support public
transportation, and the degree of local
financial commitment; and
``(ii) in the case of a core
capacity improvement project, the
capacity needs of the corridor, the
project justification criteria under
subsection (e)(2)(A)(iv), and the
degree of local financial commitment.
``(B) Individual ratings for each
criterion.--In rating a project under this
paragraph, the Secretary shall--
``(i) provide, in addition to the
overall project rating under
subparagraph (A), individual ratings
for each of the criteria established
under subsection (d)(2)(A)(iii) or
(e)(2)(A)(iv), as applicable; and
``(ii) give comparable, but not
necessarily equal, numerical weight to
each of the criteria established under
subsections (d)(2)(A)(iii) or
(e)(2)(A)(iv), as applicable, in
calculating the overall project rating
under clause (i).
``(C) Medium rating not required.--The
Secretary shall not require that any single
project justification criterion meet or exceed
a `medium' rating in order to advance the
project from one phase to another.
``(3) Warrants.--The Secretary shall, to the
maximum extent practicable, develop and use special
warrants for making a project justification
determination under subsection (d)(2) or (e)(2), as
applicable, for a project proposed to be funded using a
grant under this section, if--
``(A) the share of the cost of the project
to be provided under this section does not
exceed--
``(i) $100,000,000; or
``(ii) 50 percent of the total cost
of the project;
``(B) the applicant requests the use of the
warrants;
``(C) the applicant certifies that its
existing public transportation system is in a
state of good repair; and
``(D) the applicant meets any other
requirements that the Secretary considers
appropriate to carry out this subsection.
``(4) Letters of intent and early systems work
agreements.--In order to expedite a project under this
subsection, the Secretary shall, to the maximum extent
practicable, issue letters of intent and enter into
early systems work agreements upon issuance of a record
of decision for projects that receive an overall
project rating of medium or better.
``(5) Policy guidance.--The Secretary shall issue
policy guidance regarding the review and evaluation
process and criteria--
``(A) not later than 180 days after the
date of enactment of the Federal Public
Transportation Act of 2012; and
``(B) each time the Secretary makes
significant changes to the process and
criteria, but not less frequently than once
every 2 years.
``(6) Rules.--Not later than 1 year after the date
of enactment of the Federal Public Transportation Act
of 2012, the Secretary shall issue rules establishing
an evaluation and rating process for--
``(A) new fixed guideway capital projects
that is based on the results of project
justification, policies and land use patterns
that promote public transportation, and local
financial commitment, as required under this
subsection; and
``(B) core capacity improvement projects
that is based on the results of the capacity
needs of the corridor, project justification,
and local financial commitment.
``(7) Applicability.--This subsection shall not
apply to a project for which the Secretary issued a
letter of intent, entered into a full funding grant
agreement, or entered into a project construction
agreement before the date of enactment of the Federal
Public Transportation Act of 2012.
``(h) Small Start Projects.--
``(1) In general.--A small start project shall be
subject to the requirements of this subsection.
``(2) Project development phase.--
``(A) Entrance into project development
phase.--A new small starts project shall enter
into the project development phase when--
``(i) the applicant--
``(I) submits a letter to
the Secretary describing the
project and requesting entry
into the project development
phase; and
``(II) initiates activities
required to be carried out
under the National
Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.)
with respect to the project;
and
``(ii) the Secretary--
``(I) responds in writing
to the applicant within 45 days
whether the information
provided is sufficient to enter
into the project development
phase, including, when
necessary, a detailed
description of any information
deemed insufficient; and
``(II) provides concurrent
notice to the Committee on
Banking, Housing, and Urban
Affairs of the Senate and the
Committee on Transportation and
Infrastructure of the House of
Representatives of whether the
small starts project is
entering the project
development phase.
``(B) Activities during project development
phase.--Concurrent with the analysis required
to be made under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.),
each applicant shall develop sufficient
information to enable the Secretary to make
findings of project justification, policies and
land use patterns that promote public
transportation, and local financial commitment
under this subsection.
``(3) Selection criteria.--The Secretary may
provide Federal assistance for a small start project
under this subsection only if the Secretary determines
that the project--
``(A) has been adopted as the locally
preferred alternative as part of the
metropolitan transportation plan required under
section 5303;
``(B) is based on the results of an
analysis of the benefits of the project as set
forth in paragraph (4); and
``(C) is supported by an acceptable degree
of local financial commitment.
``(4) Evaluation of benefits and federal
investment.--In making a determination for a small
start project under paragraph (3)(B), the Secretary
shall analyze, evaluate, and consider the following
evaluation criteria for the project (as compared to a
no-action alternative): mobility improvements,
environmental benefits, congestion relief, economic
development effects associated with the project,
policies and land use patterns that support public
transportation and cost-effectiveness as measured by
cost per rider.
``(5) Evaluation of local financial commitment.--
For purposes of paragraph (3)(C), the Secretary shall
require that each proposed local source of capital and
operating financing is stable, reliable, and available
within the proposed project timetable.
``(6) Ratings.--In carrying out paragraphs (4) and
(5) for a small start project, the Secretary shall
evaluate and rate the project on a 5-point scale (high,
medium-high, medium, medium-low, or low) based on an
evaluation of the benefits of the project as compared
to the Federal assistance to be provided and the degree
of local financial commitment, as required under this
subsection. In rating the projects, the Secretary shall
provide, in addition to the overall project rating,
individual ratings for each of the criteria established
by this subsection and shall give comparable, but not
necessarily equal, numerical weight to the benefits
that the project will bring to the community in
calculating the overall project rating.
``(7) Grants and expedited grant agreements.--
``(A) In general.--The Secretary, to the
maximum extent practicable, shall provide
Federal assistance under this subsection in a
single grant. If the Secretary cannot provide
such a single grant, the Secretary may execute
an expedited grant agreement in order to
include a commitment on the part of the
Secretary to provide funding for the project in
future fiscal years.
``(B) Terms of expedited grant
agreements.--In executing an expedited grant
agreement under this subsection, the Secretary
may include in the agreement terms similar to
those established under subsection (k)(2).
``(C) Notice of proposed grants and
expedited grant agreements.--At least 10 days
before making a grant award or entering into a
grant agreement for a project under this
subsection, the Secretary shall notify, in
writing, the Committee on Transportation and
Infrastructure and the Committee on
Appropriations of the House of Representatives
and the Committee on Banking, Housing, and
Urban Affairs and the Committee on
Appropriations of the Senate of the proposed
grant or expedited grant agreement, as well as
the evaluations and ratings for the project.
``(i) Programs of Interrelated Projects.--
``(1) Project development phase.--A federally
funded project in a program of interrelated projects
shall advance through project development as provided
in subsection (d) or (e), as applicable.
``(2) Engineering phase.--A federally funded
project in a program of interrelated projects may
advance into the engineering phase upon completion of
activities required under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), as
demonstrated by a record of decision with respect to
the project, a finding that the project has no
significant impact, or a determination that the project
is categorically excluded, only if the Secretary
determines that--
``(A) the project is selected as the
locally preferred alternative at the completion
of the process required under the National
Environmental Policy Act of 1969;
``(B) the project is adopted into the
metropolitan transportation plan required under
section 5303;
``(C) the program of interrelated projects
involves projects that have a logical
connectivity to one another;
``(D) the program of interrelated projects,
when evaluated as a whole, meets the
requirements of subsection (d)(2) or (e)(2), as
applicable;
``(E) the program of interrelated projects
is supported by a program implementation plan
demonstrating that construction will begin on
each of the projects in the program of
interrelated projects within a reasonable time
frame; and
``(F) the program of interrelated projects
is supported by an acceptable degree of local
financial commitment, as described in
subsection (f).
``(3) Project advancement and ratings.--
``(A) Project advancement.--A project
receiving a grant under this section that is
part of a program of interrelated projects may
not advance from the project development phase
to the engineering phase, or from the
engineering phase to the construction phase,
unless the Secretary determines that the
program of interrelated projects meets the
applicable requirements of this section and
there is a reasonable likelihood that the
program will continue to meet such
requirements.
``(B) Ratings.--
``(i) Overall rating.--In making a
determination under subparagraph (A),
the Secretary shall evaluate and rate a
program of interrelated projects on a
5-point scale (high, medium-high,
medium, medium-low, or low) based on
the criteria described in paragraph
(2).
``(ii) Individual rating for each
criterion.--In rating a program of
interrelated projects, the Secretary
shall provide, in addition to the
overall program rating, individual
ratings for each of the criteria
described in paragraph (2) and shall
give comparable, but not necessarily
equal, numerical weight to each such
criterion in calculating the overall
program rating.
``(iii) Medium rating not
required.--The Secretary shall not
require that any single criterion
described in paragraph (2) meet or
exceed a `medium' rating in order to
advance the program of interrelated
projects from one phase to another.
``(4) Annual review.--
``(A) Review required.--The Secretary shall
annually review the program implementation plan
required under paragraph (2)(E) to determine
whether the program of interrelated projects is
adhering to its schedule.
``(B) Extension of time.--If a program of
interrelated projects is not adhering to its
schedule, the Secretary may, upon the request
of the applicant, grant an extension of time if
the applicant submits a reasonable plan that
includes--
``(i) evidence of continued
adequate funding; and
``(ii) an estimated time frame for
completing the program of interrelated
projects.
``(C) Satisfactory progress required.--If
the Secretary determines that a program of
interrelated projects is not making
satisfactory progress, no Federal funds shall
be provided for a project within the program of
interrelated projects.
``(5) Failure to carry out program of interrelated
projects.--
``(A) Repayment required.--If an applicant
does not carry out the program of interrelated
projects within a reasonable time, for reasons
within the control of the applicant, the
applicant shall repay all Federal funds
provided for the program, and any reasonable
interest and penalty charges that the Secretary
may establish.
``(B) Crediting of funds received.--Any
funds received by the Government under this
paragraph, other than interest and penalty
charges, shall be credited to the appropriation
account from which the funds were originally
derived.
``(6) Non-federal funds.--Any non-Federal funds
committed to a project in a program of interrelated
projects may be used to meet a non-Government share
requirement for any other project in the program of
interrelated projects, if the Government share of the
cost of each project within the program of interrelated
projects does not exceed 80 percent.
``(7) Priority.--In making grants under this
section, the Secretary may give priority to programs of
interrelated projects for which the non-Government
share of the cost of the projects included in the
programs of interrelated projects exceeds the non-
Government share required under subsection (l).
``(8) Non-government projects.--Including a project
not financed by the Government in a program of
interrelated projects does not impose Government
requirements that would not otherwise apply to the
project.
``(j) Previously Issued Letter of Intent or Full Funding
Grant Agreement.--Subsections (d) and (e) shall not apply to
projects for which the Secretary has issued a letter of intent,
approved entry into final design, entered into a full funding
grant agreement, or entered into a project construction grant
agreement before the date of enactment of the Federal Public
Transportation Act of 2012.
``(k) Letters of Intent, Full Funding Grant Agreements, and
Early Systems Work Agreements.--
``(1) Letters of intent.--
``(A) Amounts intended to be obligated.--
The Secretary may issue a letter of intent to
an applicant announcing an intention to
obligate, for a new fixed guideway capital
project or core capacity improvement project,
an amount from future available budget
authority specified in law that is not more
than the amount stipulated as the financial
participation of the Secretary in the project.
When a letter is issued for a capital project
under this section, the amount shall be
sufficient to complete at least an operable
segment.
``(B) Treatment.--The issuance of a letter
under subparagraph (A) is deemed not to be an
obligation under sections 1108(c), 1501, and
1502(a) of title 31 or an administrative
commitment.
``(2) Full funding grant agreements.--
``(A) In general.--A new fixed guideway
capital project or core capacity improvement
project shall be carried out through a full
funding grant agreement.
``(B) Criteria.--The Secretary shall enter
into a full funding grant agreement, based on
the evaluations and ratings required under
subsection (d), (e), or (i), as applicable,
with each grantee receiving assistance for a
new fixed guideway capital project or core
capacity improvement project that has been
rated as high, medium-high, or medium, in
accordance with subsection (g)(2)(A) or
(i)(3)(B), as applicable.
``(C) Terms.--A full funding grant
agreement shall--
``(i) establish the terms of
participation by the Government in a
new fixed guideway capital project or
core capacity improvement project;
``(ii) establish the maximum amount
of Federal financial assistance for the
project;
``(iii) include the period of time
for completing the project, even if
that period extends beyond the period
of an authorization; and
``(iv) make timely and efficient
management of the project easier
according to the law of the United
States.
``(D) Special financial rules.--
``(i) In general.--A full funding
grant agreement under this paragraph
obligates an amount of available budget
authority specified in law and may
include a commitment, contingent on
amounts to be specified in law in
advance for commitments under this
paragraph, to obligate an additional
amount from future available budget
authority specified in law.
``(ii) Statement of contingent
commitment.--The agreement shall state
that the contingent commitment is not
an obligation of the Government.
``(iii) Interest and other
financing costs.--Interest and other
financing costs of efficiently carrying
out a part of the project within a
reasonable time are a cost of carrying
out the project under a full funding
grant agreement, except that eligible
costs may not be more than the cost of
the most favorable financing terms
reasonably available for the project at
the time of borrowing. The applicant
shall certify, in a way satisfactory to
the Secretary, that the applicant has
shown reasonable diligence in seeking
the most favorable financing terms.
``(iv) Completion of operable
segment.--The amount stipulated in an
agreement under this paragraph for a
new fixed guideway capital project
shall be sufficient to complete at
least an operable segment.
``(E) Before and after study.--
``(i) In general.--A full funding
grant agreement under this paragraph
shall require the applicant to conduct
a study that--
``(I) describes and
analyzes the impacts of the new
fixed guideway capital project
or core capacity improvement
project on public
transportation services and
public transportation
ridership;
``(II) evaluates the
consistency of predicted and
actual project characteristics
and performance; and
``(III) identifies reasons
for differences between
predicted and actual outcomes.
``(ii) Information collection and
analysis plan.--
``(I) Submission of plan.--
Applicants seeking a full
funding grant agreement under
this paragraph shall submit a
complete plan for the
collection and analysis of
information to identify the
impacts of the new fixed
guideway capital project or
core capacity improvement
project and the accuracy of the
forecasts prepared during the
development of the project.
Preparation of this plan shall
be included in the full funding
grant agreement as an eligible
activity.
``(II) Contents of plan.--
The plan submitted under
subclause (I) shall provide
for--
``(aa) collection
of data on the current
public transportation
system regarding public
transportation service
levels and ridership
patterns, including
origins and
destinations, access
modes, trip purposes,
and rider
characteristics;
``(bb)
documentation of the
predicted scope,
service levels, capital
costs, operating costs,
and ridership of the
project;
``(cc) collection
of data on the public
transportation system 2
years after the opening
of a new fixed guideway
capital project or core
capacity improvement
project, including
analogous information
on public
transportation service
levels and ridership
patterns and
information on the as-
built scope, capital,
and financing costs of
the project; and
``(dd) analysis of
the consistency of
predicted project
characteristics with
actual outcomes.
``(F) Collection of data on current
system.--To be eligible for a full funding
grant agreement under this paragraph,
recipients shall have collected data on the
current system, according to the plan required
under subparagraph (E)(ii), before the
beginning of construction of the proposed new
fixed guideway capital project or core capacity
improvement project. Collection of this data
shall be included in the full funding grant
agreement as an eligible activity.
``(3) Early systems work agreements.--
``(A) Conditions.--The Secretary may enter
into an early systems work agreement with an
applicant if a record of decision under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) has been issued on the
project and the Secretary finds there is reason
to believe--
``(i) a full funding grant
agreement for the project will be made;
and
``(ii) the terms of the work
agreement will promote ultimate
completion of the project more rapidly
and at less cost.
``(B) Contents.--
``(i) In general.--An early systems
work agreement under this paragraph
obligates budget authority available
under this chapter and title 23 and
shall provide for reimbursement of
preliminary costs of carrying out the
project, including land acquisition,
timely procurement of system elements
for which specifications are decided,
and other activities the Secretary
decides are appropriate to make
efficient, long-term project management
easier.
``(ii) Contingent commitment.--An
early systems work agreement may
include a commitment, contingent on
amounts to be specified in law in
advance for commitments under this
paragraph, to obligate an additional
amount from future available budget
authority specified in law.
``(iii) Period covered.--An early
systems work agreement under this
paragraph shall cover the period of
time the Secretary considers
appropriate. The period may extend
beyond the period of current
authorization.
``(iv) Interest and other financing
costs.--Interest and other financing
costs of efficiently carrying out the
early systems work agreement within a
reasonable time are a cost of carrying
out the agreement, except that eligible
costs may not be more than the cost of
the most favorable financing terms
reasonably available for the project at
the time of borrowing. The applicant
shall certify, in a way satisfactory to
the Secretary, that the applicant has
shown reasonable diligence in seeking
the most favorable financing terms.
``(v) Failure to carry out
project.--If an applicant does not
carry out the project for reasons
within the control of the applicant,
the applicant shall repay all Federal
grant funds awarded for the project
from all Federal funding sources, for
all project activities, facilities, and
equipment, plus reasonable interest and
penalty charges allowable by law or
established by the Secretary in the
early systems work agreement.
``(vi) Crediting of funds
received.--Any funds received by the
Government under this paragraph, other
than interest and penalty charges,
shall be credited to the appropriation
account from which the funds were
originally derived.
``(4) Limitation on amounts.--
``(A) In general.--The Secretary may enter
into full funding grant agreements under this
subsection for new fixed guideway capital
projects and core capacity improvement projects
that contain contingent commitments to incur
obligations in such amounts as the Secretary
determines are appropriate.
``(B) Appropriation required.--An
obligation may be made under this subsection
only when amounts are appropriated for the
obligation.
``(5) Notification to congress.--At least 30 days
before issuing a letter of intent, entering into a full
funding grant agreement, or entering into an early
systems work agreement under this section, the
Secretary shall notify, in writing, the Committee on
Banking, Housing, and Urban Affairs and the Committee
on Appropriations of the Senate and the Committee on
Transportation and Infrastructure and the Committee on
Appropriations of the House of Representatives of the
proposed letter or agreement. The Secretary shall
include with the notification a copy of the proposed
letter or agreement as well as the evaluations and
ratings for the project.
``(l) Government Share of Net Capital Project Cost.--
``(1) In general.--Based on engineering studies,
studies of economic feasibility, and information on the
expected use of equipment or facilities, the Secretary
shall estimate the net capital project cost. A grant
for a fixed guideway project or small start project
shall not exceed 80 percent of the net capital project
cost. A grant for a core capacity project shall not
exceed 80 percent of the net capital project cost of
the incremental cost of increasing the capacity in the
corridor.
``(2) Adjustment for completion under budget.--The
Secretary may adjust the final net capital project cost
of a new fixed guideway capital project or core
capacity improvement project evaluated under subsection
(d), (e), or (i) to include the cost of eligible
activities not included in the originally defined
project if the Secretary determines that the originally
defined project has been completed at a cost that is
significantly below the original estimate.
``(3) Maximum government share.--The Secretary may
provide a higher grant percentage than requested by the
grant recipient if--
``(A) the Secretary determines that the net
capital project cost of the project is not more
than 10 percent higher than the net capital
project cost estimated at the time the project
was approved for advancement into the
engineering phase; and
``(B) the ridership estimated for the
project is not less than 90 percent of the
ridership estimated for the project at the time
the project was approved for advancement into
the engineering phase.
``(4) Remainder of net capital project cost.--The
remainder of the net capital project cost shall be
provided from an undistributed cash surplus, a
replacement or depreciation cash fund or reserve, or
new capital.
``(5) Limitation on statutory construction.--
Nothing in this section shall be construed as
authorizing the Secretary to require a non-Federal
financial commitment for a project that is more than 20
percent of the net capital project cost.
``(6) Special rule for rolling stock costs.--In
addition to amounts allowed pursuant to paragraph (1),
a planned extension to a fixed guideway system may
include the cost of rolling stock previously purchased
if the applicant satisfies the Secretary that only
amounts other than amounts provided by the Government
were used and that the purchase was made for use on the
extension. A refund or reduction of the remainder may
be made only if a refund of a proportional amount of
the grant of the Government is made at the same time.
``(7) Limitation on applicability.--This subsection
shall not apply to projects for which the Secretary
entered into a full funding grant agreement before the
date of enactment of the Federal Public Transportation
Act of 2012.
``(8) Special rule for fixed guideway bus rapid
transit projects.--For up to three fixed-guideway bus
rapid transit projects each fiscal year the Secretary
shall--
``(A) establish a Government share of at
least 80 percent; and
``(B) not lower the project's rating for
degree of local financial commitment for
purposes of subsections (d)(2)(A)(v) or
(h)(3)(C) as a result of the Government share
specified in this paragraph.
``(m) Undertaking Projects in Advance.--
``(1) In general.--The Secretary may pay the
Government share of the net capital project cost to a
State or local governmental authority that carries out
any part of a project described in this section without
the aid of amounts of the Government and according to
all applicable procedures and requirements if--
``(A) the State or local governmental
authority applies for the payment;
``(B) the Secretary approves the payment;
and
``(C) before the State or local
governmental authority carries out the part of
the project, the Secretary approves the plans
and specifications for the part in the same way
as other projects under this section.
``(2) Financing costs.--
``(A) In general.--The cost of carrying out
part of a project includes the amount of
interest earned and payable on bonds issued by
the State or local governmental authority to
the extent proceeds of the bonds are expended
in carrying out the part.
``(B) Limitation on amount of interest.--
The amount of interest under this paragraph may
not be more than the most favorable interest
terms reasonably available for the project at
the time of borrowing.
``(C) Certification.--The applicant shall
certify, in a manner satisfactory to the
Secretary, that the applicant has shown
reasonable diligence in seeking the most
favorable financing terms.
``(n) Availability of Amounts.--
``(1) In general.--An amount made available or
appropriated for a new fixed guideway capital project
or core capacity improvement project shall remain
available to that project for 5 fiscal years, including
the fiscal year in which the amount is made available
or appropriated. Any amounts that are unobligated to
the project at the end of the 5-fiscal-year period may
be used by the Secretary for any purpose under this
section.
``(2) Use of deobligated amounts.--An amount
available under this section that is deobligated may be
used for any purpose under this section.
``(o) Reports on New Fixed Guideway and Core Capacity
Improvement Projects.--
``(1) Annual report on funding recommendations.--
Not later than the first Monday in February of each
year, the Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs and the Committee
on Appropriations of the Senate and the Committee on
Transportation and Infrastructure and the Committee on
Appropriations of the House of Representatives a report
that includes--
``(A) a proposal of allocations of amounts
to be available to finance grants for projects
under this section among applicants for these
amounts;
``(B) evaluations and ratings, as required
under subsections (d), (e), and (i), for each
such project that is in project development,
engineering, or has received a full funding
grant agreement; and
``(C) recommendations of such projects for
funding based on the evaluations and ratings
and on existing commitments and anticipated
funding levels for the next 3 fiscal years
based on information currently available to the
Secretary.
``(2) Reports on before and after studies.--Not
later than the first Monday in August of each year, the
Secretary shall submit to the committees described in
paragraph (1) a report containing a summary of the
results of any studies conducted under subsection
(k)(2)(E).
``(3) Biennial gao review.--The Comptroller General
of the United States shall--
``(A) conduct a biennial review of--
``(i) the processes and procedures
for evaluating, rating, and
recommending new fixed guideway capital
projects and core capacity improvement
projects; and
``(ii) the Secretary's
implementation of such processes and
procedures; and
``(B) report to Congress on the results of
such review by May 31 of each year.''.
(b) Pilot Program for Expedited Project Delivery.--
(1) Definitions.--In this subsection the following
definitions shall apply:
(A) Eligible project.--The term ``eligible
project'' means a new fixed guideway capital
project or a core capacity improvement project,
as those terms are defined in section 5309 of
title 49, United States Code, as amended by
this section, that has not entered into a full
funding grant agreement with the Federal
Transit Administration before the date of
enactment of the Federal Public Transportation
Act of 2012.
(B) Program.--The term ``program'' means
the pilot program for expedited project
delivery established under this subsection.
(C) Recipient.--The term ``recipient''
means a recipient of funding under chapter 53
of title 49, United States Code.
(D) Secretary.--The term ``Secretary''
means the Secretary of Transportation.
(2) Establishment.--The Secretary shall establish
and implement a pilot program to demonstrate whether
innovative project development and delivery methods or
innovative financing arrangements can expedite project
delivery for certain meritorious new fixed guideway
capital projects and core capacity improvement
projects.
(3) Limitation on number of projects.--The
Secretary shall select 3 eligible projects to
participate in the program, of which--
(A) at least 1 shall be an eligible project
requesting more than $100,000,000 in Federal
financial assistance under section 5309 of
title 49, United States Code; and
(B) at least 1 shall be an eligible project
requesting less than $100,000,000 in Federal
financial assistance under section 5309 of
title 49, United States Code.
(4) Government share.--The Government share of the
total cost of an eligible project that participates in
the program may not exceed 50 percent.
(5) Eligibility.--A recipient that desires to
participate in the program shall submit to the
Secretary an application that contains, at a minimum--
(A) identification of an eligible project;
(B) a schedule and finance plan for the
construction and operation of the eligible
project;
(C) an analysis of the efficiencies of the
proposed project development and delivery
methods or innovative financing arrangement for
the eligible project; and
(D) a certification that the recipient's
existing public transportation system is in a
state of good repair.
(6) Selection criteria.--The Secretary may award a
full funding grant agreement under this subsection if
the Secretary determines that--
(A) the recipient has completed planning
and the activities required under the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.); and
(B) the recipient has the necessary legal,
financial, and technical capacity to carry out
the eligible project.
(7) Before and after study and report.--
(A) Study required.--A full funding grant
agreement under this paragraph shall require a
recipient to conduct a study that--
(i) describes and analyzes the
impacts of the eligible project on
public transportation services and
public transportation ridership;
(ii) describes and analyzes the
consistency of predicted and actual
benefits and costs of the innovative
project development and delivery
methods or innovative financing for the
eligible project; and
(iii) identifies reasons for any
differences between predicted and
actual outcomes for the eligible
project.
(B) Submission of report.--Not later than 9
months after an eligible project selected to
participate in the program begins revenue
operations, the recipient shall submit to the
Secretary a report on the results of the study
under subparagraph (A).
SEC. 20009. MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES.
Section 5310 of title 49, United States Code, is amended to
read as follows:
``Sec. 5310. Formula grants for the enhanced mobility of seniors and
individuals with disabilities
``(a) Definitions.--In this section, the following
definitions shall apply:
``(1) Recipient.--The term `recipient' means a
designated recipient or a State that receives a grant
under this section directly.
``(2) Subrecipient.--The term `subrecipient' means
a State or local governmental authority, a private
nonprofit organization, or an operator of public
transportation that receives a grant under this section
indirectly through a recipient.
``(b) General Authority.--
``(1) Grants.--The Secretary may make grants under
this section to recipients for--
``(A) public transportation projects
planned, designed, and carried out to meet the
special needs of seniors and individuals with
disabilities when public transportation is
insufficient, inappropriate, or unavailable;
``(B) public transportation projects that
exceed the requirements of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.);
``(C) public transportation projects that
improve access to fixed route service and
decrease reliance by individuals with
disabilities on complementary paratransit; and
``(D) alternatives to public transportation
that assist seniors and individuals with
disabilities with transportation.
``(2) Limitations for capital projects.--
``(A) Amount available.--The amount
available for capital projects under paragraph
(1)(A) shall be not less than 55 percent of the
funds apportioned to the recipient under this
section.
``(B) Allocation to subrecipients.--A
recipient of a grant under paragraph (1)(A) may
allocate the amounts provided under the grant
to--
``(i) a private nonprofit
organization; or
``(ii) a State or local
governmental authority that--
``(I) is approved by a
State to coordinate services
for seniors and individuals
with disabilities; or
``(II) certifies that there
are no private nonprofit
organizations readily available
in the area to provide the
services described in paragraph
(1)(A).
``(3) Administrative expenses.--A recipient may use
not more than 10 percent of the amounts apportioned to
the recipient under this section to administer, plan,
and provide technical assistance for a project funded
under this section.
``(4) Eligible capital expenses.--The acquisition
of public transportation services is an eligible
capital expense under this section.
``(5) Coordination.--
``(A) Department of transportation.--To the
maximum extent feasible, the Secretary shall
coordinate activities under this section with
related activities under other Federal
departments and agencies.
``(B) Other federal agencies and nonprofit
organizations.--A State or local governmental
authority or nonprofit organization that
receives assistance from Government sources
(other than the Department of Transportation)
for nonemergency transportation services
shall--
``(i) participate and coordinate
with recipients of assistance under
this chapter in the design and delivery
of transportation services; and
``(ii) participate in the planning
for the transportation services
described in clause (i).
``(6) Program of projects.--
``(A) In general.--Amounts made available
to carry out this section may be used for
transportation projects to assist in providing
transportation services for seniors and
individuals with disabilities, if such
transportation projects are included in a
program of projects.
``(B) Submission.--A recipient shall
annually submit a program of projects to the
Secretary.
``(C) Assurance.--The program of projects
submitted under subparagraph (B) shall contain
an assurance that the program provides for the
maximum feasible coordination of transportation
services assisted under this section with
transportation services assisted by other
Government sources.
``(7) Meal delivery for homebound individuals.--A
public transportation service provider that receives
assistance under this section or section 5311(c) may
coordinate and assist in regularly providing meal
delivery service for homebound individuals, if the
delivery service does not conflict with providing
public transportation service or reduce service to
public transportation passengers.
``(c) Apportionment and Transfers.--
``(1) Formula.--The Secretary shall apportion
amounts made available to carry out this section as
follows:
``(A) Large urbanized areas.--Sixty percent
of the funds shall be apportioned among
designated recipients for urbanized areas with
a population of 200,000 or more individuals, as
determined by the Bureau of the Census, in the
ratio that--
``(i) the number of seniors and
individuals with disabilities in each
such urbanized area; bears to
``(ii) the number of seniors and
individuals with disabilities in all
such urbanized areas.
``(B) Small urbanized areas.--Twenty
percent of the funds shall be apportioned among
the States in the ratio that--
``(i) the number of seniors and
individuals with disabilities in
urbanized areas with a population of
fewer than 200,000 individuals, as
determined by the Bureau of the Census,
in each State; bears to
``(ii) the number of seniors and
individuals with disabilities in
urbanized areas with a population of
fewer than 200,000 individuals, as
determined by the Bureau of the Census,
in all States.
``(C) Rural areas.--Twenty percent of the
funds shall be apportioned among the States in
the ratio that--
``(i) the number of seniors and
individuals with disabilities in rural
areas in each State; bears to
``(ii) the number of seniors and
individuals with disabilities in rural
areas in all States.
``(2) Areas served by projects.--
``(A) In general.--Except as provided in
subparagraph (B)--
``(i) funds apportioned under
paragraph (1)(A) shall be used for
projects serving urbanized areas with a
population of 200,000 or more
individuals, as determined by the
Bureau of the Census;
``(ii) funds apportioned under
paragraph (1)(B) shall be used for
projects serving urbanized areas with a
population of fewer than 200,000
individuals, as determined by the
Bureau of the Census; and
``(iii) funds apportioned under
paragraph (1)(C) shall be used for
projects serving rural areas.
``(B) Exceptions.--A State may use funds
apportioned to the State under subparagraph (B)
or (C) of paragraph (1)--
``(i) for a project serving an area
other than an area specified in
subparagraph (A)(ii) or (A)(iii), as
the case may be, if the Governor of the
State certifies that all of the
objectives of this section are being
met in the area specified in
subparagraph (A)(ii) or (A)(iii); or
``(ii) for a project anywhere in
the State, if the State has established
a statewide program for meeting the
objectives of this section.
``(C) Limited to eligible projects.--Any
funds transferred pursuant to subparagraph (B)
shall be made available only for eligible
projects selected under this section.
``(D) Consultation.--A recipient may
transfer an amount under subparagraph (B) only
after consulting with responsible local
officials, publicly owned operators of public
transportation, and nonprofit providers in the
area for which the amount was originally
apportioned.
``(d) Government Share of Costs.--
``(1) Capital projects.--A grant for a capital
project under this section shall be in an amount equal
to 80 percent of the net capital costs of the project,
as determined by the Secretary.
``(2) Operating assistance.--A grant made under
this section for operating assistance may not exceed an
amount equal to 50 percent of the net operating costs
of the project, as determined by the Secretary.
``(3) Remainder of net costs.--The remainder of the
net costs of a project carried out under this section--
``(A) may be provided from an undistributed
cash surplus, a replacement or depreciation
cash fund or reserve, a service agreement with
a State or local social service agency or a
private social service organization, or new
capital; and
``(B) may be derived from amounts
appropriated or otherwise made available--
``(i) to a department or agency of
the Government (other than the
Department of Transportation) that are
eligible to be expended for
transportation; or
``(ii) to carry out the Federal
lands highways program under section
204 of title 23.
``(4) Use of certain funds.--For purposes of
paragraph (3)(B)(i), the prohibition under section
403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C.
603(a)(5)(C)(vii)) on the use of grant funds for
matching requirements shall not apply to Federal or
State funds to be used for transportation purposes.
``(e) Grant Requirements.--
``(1) In general.--A grant under this section shall
be subject to the same requirements as a grant under
section 5307, to the extent the Secretary determines
appropriate.
``(2) Certification requirements.--
``(A) Project selection and plan
development.--Before receiving a grant under
this section, each recipient shall certify
that--
``(i) the projects selected by the
recipient are included in a locally
developed, coordinated public transit-
human services transportation plan;
``(ii) the plan described in clause
(i) was developed and approved through
a process that included participation
by seniors, individuals with
disabilities, representatives of
public, private, and nonprofit
transportation and human services
providers, and other members of the
public; and
``(iii) to the maximum extent
feasible, the services funded under
this section will be coordinated with
transportation services assisted by
other Federal departments and agencies,
including any transportation activities
carried out by a recipient of a grant
from the Department of Health and Human
Services.
``(B) Allocations to subrecipients.--If a
recipient allocates funds received under this
section to subrecipients, the recipient shall
certify that the funds are allocated on a fair
and equitable basis.
``(f) Competitive Process for Grants to Subrecipients.--
``(1) Areawide solicitations.--A recipient of funds
apportioned under subsection (c)(1)(A) may conduct, in
cooperation with the appropriate metropolitan planning
organization, an areawide solicitation for applications
for grants under this section.
``(2) Statewide solicitations.--A recipient of
funds apportioned under subparagraph (B) or (C) of
subsection (c)(1) may conduct a statewide solicitation
for applications for grants under this section.
``(3) Application.--If the recipient elects to
engage in a competitive process, a recipient or
subrecipient seeking to receive a grant from funds
apportioned under subsection (c) shall submit to the
recipient making the election an application in such
form and in accordance with such requirements as the
recipient making the election shall establish.
``(g) Transfers of Facilities and Equipment.--A recipient
may transfer a facility or equipment acquired using a grant
under this section to any other recipient eligible to receive
assistance under this chapter, if--
``(1) the recipient in possession of the facility
or equipment consents to the transfer; and
``(2) the facility or equipment will continue to be
used as required under this section.
``(h) Performance Measures.--
``(1) In general.--Not later than 1 year after the
date of enactment of the Federal Public Transportation
Act of 2012, the Secretary shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Transportation and
Infrastructure of the House of Representatives making
recommendations on the establishment of performance
measures for grants under this section. Such report
shall be developed in consultation with national
nonprofit organizations that provide technical
assistance and advocacy on issues related to
transportation services for seniors and individuals
with disabilities.
``(2) Measures.--The performance measures to be
considered in the report under paragraph (1) shall
require the collection of quantitative and qualitative
information, as available, concerning--
``(A) modifications to the geographic
coverage of transportation service, the quality
of transportation service, or service times
that increase the availability of
transportation services for seniors and
individuals with disabilities;
``(B) ridership;
``(C) accessibility improvements; and
``(D) other measures, as the Secretary
determines is appropriate.''.
SEC. 20010. FORMULA GRANTS FOR RURAL AREAS.
Section 5311 of title 49, United States Code, is amended to
read as follows:
``Sec. 5311. Formula grants for rural areas
``(a) Definitions.--As used in this section, the following
definitions shall apply:
``(1) Recipient.--The term `recipient' means a
State or Indian tribe that receives a Federal transit
program grant directly from the Government.
``(2) Subrecipient.--The term `subrecipient' means
a State or local governmental authority, a nonprofit
organization, or an operator of public transportation
or intercity bus service that receives Federal transit
program grant funds indirectly through a recipient.
``(b) General Authority.--
``(1) Grants authorized.--Except as provided by
paragraph (2), the Secretary may award grants under
this section to recipients located in rural areas for--
``(A) planning, provided that a grant under
this section for planning activities shall be
in addition to funding awarded to a State under
section 5305 for planning activities that are
directed specifically at the needs of rural
areas in the State;
``(B) public transportation capital
projects;
``(C) operating costs of equipment and
facilities for use in public transportation;
``(D) job access and reverse commute
projects; and
``(E) the acquisition of public
transportation services, including service
agreements with private providers of public
transportation service.
``(2) State program.--
``(A) In general.--A project eligible for a
grant under this section shall be included in a
State program for public transportation service
projects, including agreements with private
providers of public transportation service.
``(B) Submission to secretary.--Each State
shall submit to the Secretary annually the
program described in subparagraph (A).
``(C) Approval.--The Secretary may not
approve the program unless the Secretary
determines that--
``(i) the program provides a fair
distribution of amounts in the State,
including Indian reservations; and
``(ii) the program provides the
maximum feasible coordination of public
transportation service assisted under
this section with transportation
service assisted by other Federal
sources.
``(3) Rural transportation assistance program.--
``(A) In general.--The Secretary shall
carry out a rural transportation assistance
program in rural areas.
``(B) Grants and contracts.--In carrying
out this paragraph, the Secretary may use not
more than 2 percent of the amount made
available under section 5338(a)(2)(E) to make
grants and contracts for transportation
research, technical assistance, training, and
related support services in rural areas.
``(C) Projects of a national scope.--Not
more than 15 percent of the amounts available
under subparagraph (B) may be used by the
Secretary to carry out competitively selected
projects of a national scope, with the
remaining balance provided to the States.
``(4) Data collection.--Each recipient under this
section shall submit an annual report to the Secretary
containing information on capital investment,
operations, and service provided with funds received
under this section, including--
``(A) total annual revenue;
``(B) sources of revenue;
``(C) total annual operating costs;
``(D) total annual capital costs;
``(E) fleet size and type, and related
facilities;
``(F) vehicle revenue miles; and
``(G) ridership.
``(c) Apportionments.--
``(1) Public transportation on indian
reservations.--Of the amounts made available or
appropriated for each fiscal year pursuant to section
5338(a)(2)(E) to carry out this paragraph, the
following amounts shall be apportioned each fiscal year
for grants to Indian tribes for any purpose eligible
under this section, under such terms and conditions as
may be established by the Secretary:
``(A) $5,000,000 shall be distributed on a
competitive basis by the Secretary.
``(B) $25,000,000 shall be apportioned as
formula grants, as provided in subsection (j).
``(2) Appalachian development public transportation
assistance program.--
``(A) Definitions.--In this paragraph--
``(i) the term `Appalachian region'
has the same meaning as in section
14102 of title 40; and
``(ii) the term `eligible
recipient' means a State that
participates in a program established
under subtitle IV of title 40.
``(B) In general.--The Secretary shall
carry out a public transportation assistance
program in the Appalachian region.
``(C) Apportionment.--Of amounts made
available or appropriated for each fiscal year
under section 5338(a)(2)(E) to carry out this
paragraph, the Secretary shall apportion funds
to eligible recipients for any purpose eligible
under this section, based on the guidelines
established under section 9.5(b) of the
Appalachian Regional Commission Code.
``(D) Special rule.--An eligible recipient
may use amounts that cannot be used for
operating expenses under this paragraph for a
highway project if--
``(i) that use is approved, in
writing, by the eligible recipient
after appropriate notice and an
opportunity for comment and appeal are
provided to affected public
transportation providers; and
``(ii) the eligible recipient, in
approving the use of amounts under this
subparagraph, determines that the local
transit needs are being addressed.
``(3) Remaining amounts.--
``(A) In general.--The amounts made
available or appropriated for each fiscal year
pursuant to section 5338(a)(2)(E) that are not
apportioned under paragraph (1) or (2) shall be
apportioned in accordance with this paragraph.
``(B) Apportionment based on land area and
population in nonurbanized areas.--
``(i) In general.--83.15 percent of
the amount described in subparagraph
(A) shall be apportioned to the States
in accordance with this subparagraph.
``(ii) Land area.--
``(I) In general.--Subject
to subclause (II), each State
shall receive an amount that is
equal to 20 percent of the
amount apportioned under clause
(i), multiplied by the ratio of
the land area in rural areas in
that State and divided by the
land area in all rural areas in
the United States, as shown by
the most recent decennial
census of population.
``(II) Maximum
apportionment.--No State shall
receive more than 5 percent of
the amount apportioned under
subclause (I).
``(iii) Population.--Each State
shall receive an amount equal to 80
percent of the amount apportioned under
clause (i), multiplied by the ratio of
the population of rural areas in that
State and divided by the population of
all rural areas in the United States,
as shown by the most recent decennial
census of population.
``(C) Apportionment based on land area,
vehicle revenue miles, and low-income
individuals in nonurbanized areas.--
``(i) In general.--16.85 percent of
the amount described in subparagraph
(A) shall be apportioned to the States
in accordance with this subparagraph.
``(ii) Land area.--Subject to
clause (v), each State shall receive an
amount that is equal to 29.68 percent
of the amount apportioned under clause
(i), multiplied by the ratio of the
land area in rural areas in that State
and divided by the land area in all
rural areas in the United States, as
shown by the most recent decennial
census of population.
``(iii) Vehicle revenue miles.--
Subject to clause (v), each State shall
receive an amount that is equal to
29.68 percent of the amount apportioned
under clause (i), multiplied by the
ratio of vehicle revenue miles in rural
areas in that State and divided by the
vehicle revenue miles in all rural
areas in the United States, as
determined by national transit database
reporting.
``(iv) Low-income individuals.--
Each State shall receive an amount that
is equal to 40.64 percent of the amount
apportioned under clause (i),
multiplied by the ratio of low-income
individuals in rural areas in that
State and divided by the number of low-
income individuals in all rural areas
in the United States, as shown by the
Bureau of the Census.
``(v) Maximum apportionment.--No
State shall receive--
``(I) more than 5 percent
of the amount apportioned under
clause (ii); or
``(II) more than 5 percent
of the amount apportioned under
clause (iii).
``(d) Use for Local Transportation Service.--A State may
use an amount apportioned under this section for a project
included in a program under subsection (b) of this section and
eligible for assistance under this chapter if the project will
provide local transportation service, as defined by the
Secretary of Transportation, in a rural area.
``(e) Use for Administration, Planning, and Technical
Assistance.--The Secretary may allow a State to use not more
than 10 percent of the amount apportioned under this section to
administer this section and provide technical assistance to a
subrecipient, including project planning, program and
management development, coordination of public transportation
programs, and research the State considers appropriate to
promote effective delivery of public transportation to a rural
area.
``(f) Intercity Bus Transportation.--
``(1) In general.--A State shall expend at least 15
percent of the amount made available in each fiscal
year to carry out a program to develop and support
intercity bus transportation. Eligible activities under
the program include--
``(A) planning and marketing for intercity
bus transportation;
``(B) capital grants for intercity bus
facilities;
``(C) joint-use facilities;
``(D) operating grants through purchase-of-
service agreements, user-side subsidies, and
demonstration projects; and
``(E) coordinating rural connections
between small public transportation operations
and intercity bus carriers.
``(2) Certification.--A State does not have to
comply with paragraph (1) of this subsection in a
fiscal year in which the Governor of the State
certifies to the Secretary, after consultation with
affected intercity bus service providers, that the
intercity bus service needs of the State are being met
adequately.
``(g) Government Share of Costs.--
``(1) Capital projects.--
``(A) In general.--Except as provided by
subparagraph (B), a grant awarded under this
section for a capital project or project
administrative expenses shall be for 80 percent
of the net costs of the project, as determined
by the Secretary.
``(B) Exception.--A State described in
section 120(b) of title 23 shall receive a
Government share of the net costs in accordance
with the formula under that section.
``(2) Operating assistance.--
``(A) In general.--Except as provided by
subparagraph (B), a grant made under this
section for operating assistance may not exceed
50 percent of the net operating costs of the
project, as determined by the Secretary.
``(B) Exception.--A State described in
section 120(b) of title 23 shall receive a
Government share of the net operating costs
equal to 62.5 percent of the Government share
provided for under paragraph (1)(B).
``(3) Remainder.--The remainder of net project
costs--
``(A) may be provided from an undistributed
cash surplus, a replacement or depreciation
cash fund or reserve, a service agreement with
a State or local social service agency or a
private social service organization, or new
capital;
``(B) may be derived from amounts
appropriated or otherwise made available to a
department or agency of the Government (other
than the Department of Transportation) that are
eligible to be expended for transportation;
``(C) notwithstanding subparagraph (B), may
be derived from amounts made available to carry
out the Federal lands highway program
established by section 204 of title 23; and
``(D) in the case of an intercity bus
project that includes both feeder service and
an unsubsidized segment of intercity bus
service to which the feeder service connects,
may be derived from the costs of a private
operator for the unsubsidized segment of
intercity bus service as an in-kind match for
the operating costs of connecting rural
intercity bus feeder service funded under
subsection (f), if the private operator agrees
in writing to the use of the costs of the
private operator for the unsubsidized segment
of intercity bus service as an in-kind match.
``(4) Use of certain funds.--For purposes of
paragraph (3)(B), the prohibitions on the use of funds
for matching requirements under section
403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C.
603(a)(5)(C)(vii)) shall not apply to Federal or State
funds to be used for transportation purposes.
``(5) Limitation on operating assistance.--A State
carrying out a program of operating assistance under
this section may not limit the level or extent of use
of the Government grant for the payment of operating
expenses.
``(h) Transfer of Facilities and Equipment.--With the
consent of the recipient currently having a facility or
equipment acquired with assistance under this section, a State
may transfer the facility or equipment to any recipient
eligible to receive assistance under this chapter if the
facility or equipment will continue to be used as required
under this section.
``(i) Relationship to Other Laws.--
``(1) In general.--Section 5333(b) applies to this
section if the Secretary of Labor utilizes a special
warranty that provides a fair and equitable arrangement
to protect the interests of employees.
``(2) Rule of construction.--This subsection does
not affect or discharge a responsibility of the
Secretary of Transportation under a law of the United
States.
``(j) Formula Grants for Public Transportation on Indian
Reservations.--
``(1) Apportionment.--
``(A) In general.--Of the amounts described
in subsection (c)(1)(B)--
``(i) 50 percent of the total
amount shall be apportioned so that
each Indian tribe providing public
transportation service shall receive an
amount equal to the total amount
apportioned under this clause
multiplied by the ratio of the number
of vehicle revenue miles provided by an
Indian tribe divided by the total
number of vehicle revenue miles
provided by all Indian tribes, as
reported to the Secretary;
``(ii) 25 percent of the total
amount shall be apportioned equally
among each Indian tribe providing at
least 200,000 vehicle revenue miles of
public transportation service annually,
as reported to the Secretary; and
``(iii) 25 percent of the total
amount shall be apportioned among each
Indian tribe providing public
transportation on tribal lands (as
defined by the Bureau of the Census) on
which more than 1,000 low-income
individuals reside (as determined by
the Bureau of the Census) so that each
Indian tribe shall receive an amount
equal to the total amount apportioned
under this clause multiplied by the
ratio of the number of low-income
individuals residing on an Indian
tribe's lands divided by the total
number of low-income individuals on
tribal lands on which more than 1,000
low-income individuals reside.
``(B) Limitation.--No recipient shall
receive more than $300,000 of the amounts
apportioned under subparagraph (A)(iii) in a
fiscal year.
``(C) Remaining amounts.--Of the amounts
made available under subparagraph (A)(iii), any
amounts not apportioned under that subparagraph
shall be allocated among Indian tribes
receiving less than $300,000 in a fiscal year
according to the formula specified in that
clause.
``(D) Low-income individuals.--For purposes
of subparagraph (A)(iii), the term `low-income
individual' means an individual whose family
income is at or below 100 percent of the
poverty line, as that term is defined in
section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)), including any
revision required by that section, for a family
of the size involved.
``(2) Non-tribal service providers.--A recipient
that is an Indian tribe may use funds apportioned under
this subsection to finance public transportation
services provided by a non-tribal provider of public
transportation that connects residents of tribal lands
with surrounding communities, improves access to
employment or healthcare, or otherwise addresses the
mobility needs of tribal members.''.
SEC. 20011. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT
PROJECTS.
Section 5312 of title 49, United States Code, is amended to
read as follows:
``Sec. 5312. Research, development, demonstration, and deployment
projects
``(a) Research, Development, Demonstration, and Deployment
Projects.--
``(1) In general.--The Secretary may make grants
and enter into contracts, cooperative agreements, and
other agreements for research, development,
demonstration, and deployment projects, and evaluation
of research and technology of national significance to
public transportation, that the Secretary determines
will improve public transportation.
``(2) Agreements.--In order to carry out paragraph
(1), the Secretary may make grants to and enter into
contracts, cooperative agreements, and other agreements
with--
``(A) departments, agencies, and
instrumentalities of the Government, including
Federal laboratories;
``(B) State and local governmental
entities;
``(C) providers of public transportation;
``(D) private or non-profit organizations;
``(E) institutions of higher education; and
``(F) technical and community colleges.
``(3) Application.--
``(A) In general.--To receive a grant,
contract, cooperative agreement, or other
agreement under this section, an entity
described in paragraph (2) shall submit an
application to the Secretary.
``(B) Form and contents.--An application
under subparagraph (A) shall be in such form
and contain such information as the Secretary
may require, including--
``(i) a statement of purpose
detailing the need being addressed;
``(ii) the short- and long-term
goals of the project, including
opportunities for future innovation and
development, the potential for
deployment, and benefits to riders and
public transportation; and
``(iii) the short- and long-term
funding requirements to complete the
project and any future objectives of
the project.
``(b) Research.--
``(1) In general.--The Secretary may make a grant
to or enter into a contract, cooperative agreement, or
other agreement under this section with an entity
described in subsection (a)(2) to carry out a public
transportation research project that has as its
ultimate goal the development and deployment of new and
innovative ideas, practices, and approaches.
``(2) Project eligibility.--A public transportation
research project that receives assistance under
paragraph (1) shall focus on--
``(A) providing more effective and
efficient public transportation service,
including services to--
``(i) seniors;
``(ii) individuals with
disabilities; and
``(iii) low-income individuals;
``(B) mobility management and improvements
and travel management systems;
``(C) data and communication system
advancements;
``(D) system capacity, including--
``(i) train control;
``(ii) capacity improvements; and
``(iii) performance management;
``(E) capital and operating efficiencies;
``(F) planning and forecasting modeling and
simulation;
``(G) advanced vehicle design;
``(H) advancements in vehicle technology;
``(I) asset maintenance and repair systems
advancement;
``(J) construction and project management;
``(K) alternative fuels;
``(L) the environment and energy
efficiency;
``(M) safety improvements; or
``(N) any other area that the Secretary
determines is important to advance the
interests of public transportation.
``(c) Innovation and Development.--
``(1) In general.--The Secretary may make a grant
to or enter into a contract, cooperative agreement, or
other agreement under this section with an entity
described in subsection (a)(2) to carry out a public
transportation innovation and development project that
seeks to improve public transportation systems
nationwide in order to provide more efficient and
effective delivery of public transportation services,
including through technology and technological capacity
improvements.
``(2) Project eligibility.--A public transportation
innovation and development project that receives
assistance under paragraph (1) shall focus on--
``(A) the development of public
transportation research projects that received
assistance under subsection (b) that the
Secretary determines were successful;
``(B) planning and forecasting modeling and
simulation;
``(C) capital and operating efficiencies;
``(D) advanced vehicle design;
``(E) advancements in vehicle technology;
``(F) the environment and energy
efficiency;
``(G) system capacity, including train
control and capacity improvements; or
``(H) any other area that the Secretary
determines is important to advance the
interests of public transportation.
``(d) Demonstration, Deployment, and Evaluation.--
``(1) In general.--The Secretary may, under terms
and conditions that the Secretary prescribes, make a
grant to or enter into a contract, cooperative
agreement, or other agreement with an entity described
in paragraph (2) to promote the early deployment and
demonstration of innovation in public transportation
that has broad applicability.
``(2) Participants.--An entity described in this
paragraph is--
``(A) an entity described in subsection
(a)(2); or
``(B) a consortium of entities described in
subsection (a)(2), including a provider of
public transportation, that will share the
costs, risks, and rewards of early deployment
and demonstration of innovation.
``(3) Project eligibility.--A project that receives
assistance under paragraph (1) shall seek to build on
successful research, innovation, and development
efforts to facilitate--
``(A) the deployment of research and
technology development resulting from private
efforts or Federally funded efforts; and
``(B) the implementation of research and
technology development to advance the interests
of public transportation.
``(4) Evaluation.--Not later than 2 years after the
date on which a project receives assistance under
paragraph (1), the Secretary shall conduct a
comprehensive evaluation of the success or failure of
the projects funded under this subsection and any plan
for broad-based implementation of the innovation
promoted by successful projects.
``(5) Low or no emission vehicle deployment.--
``(A) Definitions.--In this paragraph, the
following definitions shall apply:
``(i) Eligible area.--The term
`eligible area' means an area that is--
``(I) designated as a
nonattainment area for ozone or
carbon monoxide under section
107(d) of the Clean Air Act (42
U.S.C. 7407(d)); or
``(II) a maintenance area,
as defined in section 5303, for
ozone or carbon monoxide.
``(ii) Eligible project.--The term
`eligible project' means a project or
program of projects in an eligible area
for--
``(I) acquiring or leasing
low or no emission vehicles;
``(II) constructing or
leasing facilities and related
equipment for low or no
emission vehicles;
``(III) constructing new
public transportation
facilities to accommodate low
or no emission vehicles; or
``(IV) rehabilitating or
improving existing public
transportation facilities to
accommodate low or no emission
vehicles.
``(iii) Direct carbon emissions.--
The term `direct carbon emissions'
means the quantity of direct greenhouse
gas emissions from a vehicle, as
determined by the Administrator of the
Environmental Protection Agency.
``(iv) Low or no emission bus.--The
term `low or no emission bus' means a
bus that is a low or no emission
vehicle.
``(v) Low or no emission vehicle.--
The term `low or no emission vehicle'
means--
``(I) a passenger vehicle
used to provide public
transportation that the
Administrator of the
Environmental Protection Agency
has certified sufficiently
reduces energy consumption or
reduces harmful emissions,
including direct carbon
emissions, when compared to a
comparable standard vehicle; or
``(II) a zero emission bus
used to provide public
transportation.
``(vi) Recipient.--The term
`recipient' means--
``(I) for an eligible area
that is an urbanized area with
a population of fewer than
200,000 individuals, as
determined by the Bureau of the
Census, the State in which the
eligible area is located; and
``(II) for an eligible area
not described in subparagraph
(A), the designated recipient
for the eligible area.
``(vii) Zero emission bus.--The
term `zero emission bus' means a low or
no emission bus that produces no carbon
or particulate matter.
``(B) Authority.--The Secretary may make
grants to recipients to finance eligible
projects under this paragraph.
``(C) Grant requirements.--
``(i) In general.--A grant under
this paragraph shall be subject to the
requirements of section 5307.
``(ii) Government share of costs
for certain projects.--Section 5323(j)
applies to projects carried out under
this paragraph, unless the grant
recipient requests a lower grant
percentage.
``(iii) Combination of funding
sources.--
``(I) Combination
permitted.--A project carried
out under this paragraph may
receive funding under section
5307, or any other provision of
law.
``(II) Government share.--
Nothing in this clause may be
construed to alter the
Government share required under
this section, section 5307, or
any other provision of law.
``(D) Minimum amounts.--Of amounts made
available by or appropriated under section
5338(b) in each fiscal year to carry out this
paragraph--
``(i) not less than 65 percent
shall be made available to fund
eligible projects relating to low or no
emission buses; and
``(ii) not less than 10 percent
shall be made available for eligible
projects relating to facilities and
related equipment for low or no
emission buses.
``(E) Competitive process.--The Secretary
shall solicit grant applications and make
grants for eligible projects on a competitive
basis.
``(F) Priority consideration.--In making
grants under this paragraph, the Secretary
shall give priority to projects relating to low
or no emission buses that make greater
reductions in energy consumption and harmful
emissions, including direct carbon emissions,
than comparable standard buses or other low or
no emission buses.
``(G) Availability of funds.--Any amounts
made available or appropriated to carry out
this paragraph--
``(i) shall remain available to an
eligible project for 2 years after the
fiscal year for which the amount is
made available or appropriated; and
``(ii) that remain unobligated at
the end of the period described in
clause (i) shall be added to the amount
made available to an eligible project
in the following fiscal year.
``(e) Annual Report on Research.--Not later than the first
Monday in February of each year, the Secretary shall submit to
the Committee on Banking, Housing, and Urban Affairs and the
Committee on Appropriations of the Senate and the Committee on
Transportation and Infrastructure, the Committee on Science,
Space, and Technology, and the Committee on Appropriations of
the House of Representatives a report that includes--
``(1) a description of each project that received
assistance under this section during the preceding
fiscal year;
``(2) an evaluation of each project described in
paragraph (1), including any evaluation conducted under
subsection (d)(4) for the preceding fiscal year; and
``(3) a proposal for allocations of amounts for
assistance under this section for the subsequent fiscal
year.
``(f) Government Share of Costs.--
``(1) In general.--The Government share of the cost
of a project carried out under this section shall not
exceed 80 percent.
``(2) Non-government share.--The non-Government
share of the cost of a project carried out under this
section may be derived from in-kind contributions.
``(3) Financial benefit.--If the Secretary
determines that there would be a clear and direct
financial benefit to an entity under a grant, contract,
cooperative agreement, or other agreement under this
section, the Secretary shall establish a Government
share of the costs of the project to be carried out
under the grant, contract, cooperative agreement, or
other agreement that is consistent with the benefit.''.
SEC. 20012. TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.
Section 5314 of title 49, United States Code, is amended to
read as follows:
``Sec. 5314. Technical assistance and standards development
``(a) Technical Assistance and Standards Development.--
``(1) In general.--The Secretary may make grants
and enter into contracts, cooperative agreements, and
other agreements (including agreements with
departments, agencies, and instrumentalities of the
Government) to carry out activities that the Secretary
determines will assist recipients of assistance under
this chapter to--
``(A) more effectively and efficiently
provide public transportation service;
``(B) administer funds received under this
chapter in compliance with Federal law; and
``(C) improve public transportation.
``(2) Eligible activities.--The activities carried
out under paragraph (1) may include--
``(A) technical assistance; and
``(B) the development of voluntary and
consensus-based standards and best practices by
the public transportation industry, including
standards and best practices for safety, fare
collection, Intelligent Transportation Systems,
accessibility, procurement, security, asset
management to maintain a state of good repair,
operations, maintenance, vehicle propulsion,
communications, and vehicle electronics.
``(b) Technical Assistance.--The Secretary, through a
competitive bid process, may enter into contracts, cooperative
agreements, and other agreements with national nonprofit
organizations that have the appropriate demonstrated capacity
to provide public transportation-related technical assistance
under this section. The Secretary may enter into such
contracts, cooperative agreements, and other agreements to
assist providers of public transportation to--
``(1) comply with the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.) through technical
assistance, demonstration programs, research, public
education, and other activities related to complying
with such Act;
``(2) comply with human services transportation
coordination requirements and to enhance the
coordination of Federal resources for human services
transportation with those of the Department of
Transportation through technical assistance, training,
and support services related to complying with such
requirements;
``(3) meet the transportation needs of elderly
individuals;
``(4) increase transit ridership in coordination
with metropolitan planning organizations and other
entities through development around public
transportation stations through technical assistance
and the development of tools, guidance, and analysis
related to market-based development around transit
stations;
``(5) address transportation equity with regard to
the effect that transportation planning, investment and
operations have for low-income and minority
individuals; and
``(6) any other technical assistance activity that
the Secretary determines is necessary to advance the
interests of public transportation.
``(c) Annual Report on Technical Assistance.--Not later
than the first Monday in February of each year, the Secretary
shall submit to the Committee on Banking, Housing, and Urban
Affairs and the Committee on Appropriations of the Senate and
the Committee on Transportation and Infrastructure, the
Committee on Science, Space, and Technology, and the Committee
on Appropriations of the House of Representatives a report that
includes--
``(1) a description of each project that received
assistance under this section during the preceding
fiscal year;
``(2) an evaluation of the activities carried out
by each organization that received assistance under
this section during the preceding fiscal year; and
``(3) a proposal for allocations of amounts for
assistance under this section for the subsequent fiscal
year.
``(d) Government Share of Costs.--
``(1) In general.--The Government share of the cost
of an activity carried out using a grant under this
section may not exceed 80 percent.
``(2) Non-government share.--The non-Government
share of the cost of an activity carried out using a
grant under this section may be derived from in-kind
contributions.''.
SEC. 20013. PRIVATE SECTOR PARTICIPATION.
(a) In General.--Section 5315 of title 49, United States
Code, is amended to read as follows:
``Sec. 5315. Private sector participation
``(a) General Purposes.--In the interest of fulfilling the
general purposes of this chapter under section 5301(b), the
Secretary shall--
``(1) better coordinate public and private sector-
provided public transportation services;
``(2) promote more effective utilization of private
sector expertise, financing, and operational capacity
to deliver costly and complex new fixed guideway
capital projects; and
``(3) promote transparency and public understanding
of public-private partnerships affecting public
transportation.
``(b) Actions to Promote Better Coordination Between Public
and Private Sector Providers of Public Transportation.--The
Secretary shall--
``(1) provide technical assistance to recipients of
Federal transit grant assistance, at the request of a
recipient, on practices and methods to best utilize
private providers of public transportation; and
``(2) educate recipients of Federal transit grant
assistance on laws and regulations under this chapter
that impact private providers of public transportation.
``(c) Actions to Provide Technical Assistance for
Alternative Project Delivery Methods.--Upon request by a
sponsor of a new fixed guideway capital project, the Secretary
shall--
``(1) identify best practices for public-private
partnerships models in the United States and in other
countries;
``(2) develop standard public-private partnership
transaction model contracts; and
``(3) perform financial assessments that include
the calculation of public and private benefits of a
proposed public-private partnership transaction.''.
(b) Public-private Partnership Procedures and Approaches.--
(1) Identify impediments.--The Secretary shall--
(A) except as provided in paragraph (6),
identify any provisions of chapter 53 of title
49, United States Code, and any regulations or
practices thereunder, that impede greater use
of public-private partnerships and private
investment in public transportation capital
projects; and
(B) develop and implement on a project
basis procedures and approaches that--
(i) address such impediments in a
manner similar to the Special
Experimental Project Number 15 of the
Federal Highway Administration
(commonly referred to as ``SEP-15'');
and
(ii) protect the public interest
and any public investment in public
transportation capital projects that
involve public-private partnerships or
private investment in public
transportation capital projects.
(2) Transparency.--The Secretary shall develop
guidance to promote greater transparency and public
access to public-private partnership agreements
involving recipients of Federal assistance under
chapter 53 of title 49, United States Code, including--
(A) any conflict of interest involving any
party involved in the public-private
partnership;
(B) tax and financing aspects related to a
public-private partnership agreement;
(C) changes in the workforce and wages,
benefits, or rules as a result of a public-
private partnership;
(D) estimates of the revenue or savings the
public-private partnership will produce for the
private entity and public entity;
(E) any impacts on other developments and
transportation modes as a result of non-compete
clauses contained in public-private partnership
agreements; and
(F) any other issues the Secretary believes
will increase transparency of public-private
partnership agreements and protect the public
interest.
(3) Assessment.--In developing and implementing the
guidance under paragraph (2), the Secretary shall
encourage project sponsors to conduct assessments to
determine whether use of a public-private partnership
represents a better public and financial benefit than a
similar transaction using public funding or public
project delivery.
(4) Report.--Not later than 4 years after the date
of enactment of this Act, the Secretary shall submit to
Congress a report on the status of the procedures,
approaches, and guidance developed and implemented
under paragraphs (1) and (2).
(5) Rulemaking.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall
issue rules to carry out the procedures and approaches
developed under paragraph (1).
(6) Rule of construction.--Nothing in this
subsection may be construed to allow the Secretary to
waive any requirement under--
(A) section 5333 of title 49, United States
Code;
(B) the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.); or
(C) any other provision of Federal law.
(c) Contracting Out Study.--
(1) In general.--Not later than 1 year after the
date of enactment of this Act, the Comptroller General
of the United States shall submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate a comprehensive report
on the effect of contracting out public transportation
operations and administrative functions on cost,
availability and level of service, efficiency, and
quality of service.
(2) Considerations.--In developing the report, the
Comptroller General shall consider--
(A) the number of grant recipients that
have contracted out services and the types of
public transportation services that are
performed under contract, including paratransit
service, fixed route bus service, commuter rail
operations, and administrative functions;
(B) the size of the populations served by
such grant recipients;
(C) the basis for decisions regarding
contracting out such services;
(D) comparative costs of providing service
under contract to providing the same service
through public transit agency employees, using
to the greatest extent possible a standard cost
allocation model;
(E) the extent of unionization among
privately contracted employees;
(F) the impact to wages and benefits of
employees when publicly provided public
transportation services are contracted out to a
private for-profit entity;
(G) the level of transparency and public
access to agreements and contracts related to
contracted out public transportation services;
(H) the extent of Federal law, regulations
and guidance prohibiting any conflicts of
interest for contractor employees and
businesses;
(I) the extent to which grant recipients
evaluate contracted out services before
selecting them and the extent to which grant
recipients conduct oversight of those services;
and
(J) barriers to contracting out public
transportation operations and administrative
functions.
(d) Guidance on Documenting Compliance.--Not later than 1
year after the date of enactment of this Act, the Secretary
shall publish in the Federal Register policy guidance regarding
how to best document compliance by recipients of Federal
assistance under chapter 53 of title 49, United States Code,
with the requirements regarding private enterprise
participation in public transportation planning and
transportation improvement programs under sections 5303(i)(6),
5306(a), and 5307(c) of such title 49.
SEC. 20014. BUS TESTING FACILITIES.
Section 5318 of title 49, United States Code, is amended by
striking subsection (e) and inserting the following:
``(e) Acquiring New Bus Models.--
``(1) In general.--Amounts appropriated or
otherwise made available under this chapter may be
obligated or expended to acquire a new bus model only
if--
``(A) a bus of that model has been tested
at a facility authorized under subsection (a);
and
``(B) the bus tested under subparagraph (A)
met--
``(i) performance standards for
maintainability, reliability,
performance (including braking
performance), structural integrity,
fuel economy, emissions, and noise, as
established by the Secretary by rule;
and
``(ii) the minimum safety
performance standards established by
the Secretary pursuant to section
5329(b).
``(2) Bus test `pass/fail' standard.--Not later
than 2 years after the date of enactment of the Federal
Public Transportation Act of 2012, the Secretary shall
issue a final rule under subparagraph (B)(i). The final
rule issued under paragraph (B)(i) shall include a bus
model scoring system that results in a weighted,
aggregate score that uses the testing categories under
subsection (a) and considers the relative importance of
each such testing category. The final rule issued under
subparagraph (B)(i) shall establish a `pass/fail'
standard that uses the aggregate score described in the
preceding sentence. Amounts appropriated or otherwise
made available under this chapter may be obligated or
expended to acquire a new bus model only if the new bus
model has received a passing aggregate test score. The
Secretary shall work with the bus testing facility, bus
manufacturers, and transit agencies to develop the bus
model scoring system under this paragraph. A passing
aggregate test score under the rule issued under
subparagraph (B)(i) indicates only that amounts
appropriated or made available under this chapter may
be obligated or expended to acquire a new bus model and
shall not be interpreted as a warranty or guarantee
that the new bus model will meet a purchaser's specific
requirements.''.
SEC. 20015. HUMAN RESOURCES AND TRAINING.
Section 5322 of title 49, United States Code, is amended to
read as follows:
``Sec. 5322. Human resources and training
``(a) In General.--The Secretary may undertake, or make
grants and contracts for, programs that address human resource
needs as they apply to public transportation activities. A
program may include--
``(1) an employment training program;
``(2) an outreach program to increase minority and
female employment in public transportation activities;
``(3) research on public transportation personnel
and training needs; and
``(4) training and assistance for minority business
opportunities.
``(b) Innovative Public Transportation Workforce
Development Program.--
``(1) Program established.--The Secretary shall
establish a competitive grant program to assist the
development of innovative activities eligible for
assistance under subsection (a).
``(2) Selection of recipients.--To the maximum
extent feasible, the Secretary shall select recipients
that--
``(A) are geographically diverse;
``(B) address the workforce and human
resources needs of large public transportation
providers;
``(C) address the workforce and human
resources needs of small public transportation
providers;
``(D) address the workforce and human
resources needs of urban public transportation
providers;
``(E) address the workforce and human
resources needs of rural public transportation
providers;
``(F) advance training related to
maintenance of alternative energy, energy
efficiency, or zero emission vehicles and
facilities used in public transportation;
``(G) target areas with high rates of
unemployment; and
``(H) address current or projected
workforce shortages in areas that require
technical expertise.
``(c) Government's Share of Costs.--The Government share of
the cost of a project carried out using a grant under
subsection (a) or (b) shall be 50 percent.
``(d) National Transit Institute.--
``(1) Establishment.--The Secretary shall establish
a national transit institute and award grants to a
public 4-year degree-granting institution of higher
education, as defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)), in order to
carry out the duties of the institute.
``(2) Duties.--
``(A) In general.--In cooperation with the
Federal Transit Administration, State
transportation departments, public
transportation authorities, and national and
international entities, the institute
established under paragraph (1) shall develop
and conduct training and educational programs
for Federal, State, and local transportation
employees, United States citizens, and foreign
nationals engaged or to be engaged in
Government-aid public transportation work.
``(B) Training and educational programs.--
The training and educational programs developed
under subparagraph (A) may include courses in
recent developments, techniques, and procedures
related to--
``(i) intermodal and public
transportation planning;
``(ii) management;
``(iii) environmental factors;
``(iv) acquisition and joint use
rights-of-way;
``(v) engineering and architectural
design;
``(vi) procurement strategies for
public transportation systems;
``(vii) turnkey approaches to
delivering public transportation
systems;
``(viii) new technologies;
``(ix) emission reduction
technologies;
``(x) ways to make public
transportation accessible to
individuals with disabilities;
``(xi) construction, construction
management, insurance, and risk
management;
``(xii) maintenance;
``(xiii) contract administration;
``(xiv) inspection;
``(xv) innovative finance;
``(xvi) workplace safety; and
``(xvii) public transportation
security.
``(3) Providing education and training.--Education
and training of Government, State, and local
transportation employees under this subsection shall be
provided--
``(A) by the Secretary at no cost to the
States and local governments for subjects that
are a Government program responsibility; or
``(B) when the education and training are
paid under paragraph (4) of this subsection, by
the State, with the approval of the Secretary,
through grants and contracts with public and
private agencies, other institutions,
individuals, and the institute.
``(4) Availability of amounts.--Not more than .5
percent of the amounts made available for a fiscal year
beginning after September 30, 1991, to a State or
public transportation authority in the State to carry
out sections 5307 and 5309 of this title is available
for expenditure by the State and public transportation
authorities in the State, with the approval of the
Secretary, to pay not more than 80 percent of the cost
of tuition and direct educational expenses related to
educating and training State and local transportation
employees under this subsection.
``(e) Report.--Not later than 2 years after the date of
enactment of the Federal Public Transportation Act of 2012, the
Secretary shall submit to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report concerning the measurable outcomes and
impacts of the programs funded under subsections (a) and
(b).''.
SEC. 20016. GENERAL PROVISIONS.
Section 5323 of title 49, United States Code, is amended to
read as follows:
``Sec. 5323. General provisions
``(a) Interests in Property.--
``(1) In general.--Financial assistance provided
under this chapter to a State or a local governmental
authority may be used to acquire an interest in, or to
buy property of, a private company engaged in public
transportation, for a capital project for property
acquired from a private company engaged in public
transportation after July 9, 1964, or to operate a
public transportation facility or equipment in
competition with, or in addition to, transportation
service provided by an existing public transportation
company, only if--
``(A) the Secretary determines that such
financial assistance is essential to a program
of projects required under sections 5303, 5304,
and 5306;
``(B) the Secretary determines that the
program provides for the participation of
private companies engaged in public
transportation to the maximum extent feasible;
and
``(C) just compensation under State or
local law will be paid to the company for its
franchise or property.
``(2) Limitation.--A governmental authority may not
use financial assistance of the United States
Government to acquire land, equipment, or a facility
used in public transportation from another governmental
authority in the same geographic area.
``(b) Relocation and Real Property Requirements.--The
Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to
financial assistance for capital projects under this chapter.
``(c) Consideration of Economic, Social, and Environmental
Interests.--
``(1) Cooperation and consultation.--The Secretary
shall cooperate and consult with the Secretary of the
Interior and the Administrator of the Environmental
Protection Agency on each project that may have a
substantial impact on the environment.
``(2) Compliance with nepa.--The National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) shall apply to financial assistance for capital
projects under this chapter.
``(d) Condition on Charter Bus Transportation Service.--
``(1) Agreements.--Financial assistance under this
chapter may be used to buy or operate a bus only if the
applicant, governmental authority, or publicly owned
operator that receives the assistance agrees that,
except as provided in the agreement, the governmental
authority or an operator of public transportation for
the governmental authority will not provide charter bus
transportation service outside the urban area in which
it provides regularly scheduled public transportation
service. An agreement shall provide for a fair
arrangement the Secretary of Transportation considers
appropriate to ensure that the assistance will not
enable a governmental authority or an operator for a
governmental authority to foreclose a private operator
from providing intercity charter bus service if the
private operator can provide the service.
``(2) Violations.--
``(A) Investigations.--On receiving a
complaint about a violation of the agreement
required under paragraph (1), the Secretary
shall investigate and decide whether a
violation has occurred.
``(B) Enforcement of agreements.--If the
Secretary decides that a violation has
occurred, the Secretary shall correct the
violation under terms of the agreement.
``(C) Additional remedies.--In addition to
any remedy specified in the agreement, the
Secretary shall bar a recipient or an operator
from receiving Federal transit assistance in an
amount the Secretary considers appropriate if
the Secretary finds a pattern of violations of
the agreement.
``(e) Bond Proceeds Eligible for Local Share.--
``(1) Use as local matching funds.--Notwithstanding
any other provision of law, a recipient of assistance
under section 5307, 5309, or 5337 may use the proceeds
from the issuance of revenue bonds as part of the local
matching funds for a capital project.
``(2) Maintenance of effort.--The Secretary shall
approve of the use of the proceeds from the issuance of
revenue bonds for the remainder of the net project cost
only if the Secretary finds that the aggregate amount
of financial support for public transportation in the
urbanized area provided by the State and affected local
governmental authorities during the next 3 fiscal
years, as programmed in the State transportation
improvement program under section 5304, is not less
than the aggregate amount provided by the State and
affected local governmental authorities in the
urbanized area during the preceding 3 fiscal years.
``(3) Debt service reserve.--The Secretary may
reimburse an eligible recipient for deposits of bond
proceeds in a debt service reserve that the recipient
establishes pursuant to section 5302(3)(J) from amounts
made available to the recipient under section 5309.
``(f) Schoolbus Transportation.--
``(1) Agreements.--Financial assistance under this
chapter may be used for a capital project, or to
operate public transportation equipment or a public
transportation facility, only if the applicant agrees
not to provide schoolbus transportation that
exclusively transports students and school personnel in
competition with a private schoolbus operator. This
subsection does not apply--
``(A) to an applicant that operates a
school system in the area to be served and a
separate and exclusive schoolbus program for
the school system; and
``(B) unless a private schoolbus operator
can provide adequate transportation that
complies with applicable safety standards at
reasonable rates.
``(2) Violations.--If the Secretary finds that an
applicant, governmental authority, or publicly owned
operator has violated the agreement required under
paragraph (1), the Secretary shall bar a recipient or
an operator from receiving Federal transit assistance
in an amount the Secretary considers appropriate.
``(g) Buying Buses Under Other Laws.--Subsections (d) and
(f) of this section apply to financial assistance to buy a bus
under sections 133 and 142 of title 23.
``(h) Grant and Loan Prohibitions.--A grant or loan may not
be used to--
``(1) pay ordinary governmental or nonproject
operating expenses; or
``(2) support a procurement that uses an
exclusionary or discriminatory specification.
``(i) Government Share of Costs for Certain Projects.--
``(1) Acquiring vehicles and vehicle-related
equipment or facilities.--
``(A) Vehicles.--A grant for a project to
be assisted under this chapter that involves
acquiring vehicles for purposes of complying
with or maintaining compliance with the
Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.) or the Clean Air Act is
for 85 percent of the net project cost.
``(B) Vehicle-related equipment or
facilities.--A grant for a project to be
assisted under this chapter that involves
acquiring vehicle-related equipment or
facilities required by the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.) or vehicle-related equipment or
facilities (including clean fuel or alternative
fuel vehicle-related equipment or facilities)
for purposes of complying with or maintaining
compliance with the Clean Air Act, is for 90
percent of the net project cost of such
equipment or facilities attributable to
compliance with those Acts. The Secretary shall
have discretion to determine, through
practicable administrative procedures, the
costs of such equipment or facilities
attributable to compliance with those Acts.
``(2) Costs incurred by providers of public
transportation by vanpool.--
``(A) Local matching share.--The local
matching share provided by a recipient of
assistance for a capital project under this
chapter may include any amounts expended by a
provider of public transportation by vanpool
for the acquisition of rolling stock to be used
by such provider in the recipient's service
area, excluding any amounts the provider may
have received in Federal, State, or local
government assistance for such acquisition.
``(B) Use of revenues.--A private provider
of public transportation by vanpool may use
revenues it receives in the provision of public
transportation service in the service area of a
recipient of assistance under this chapter that
are in excess of the provider's operating costs
for the purpose of acquiring rolling stock, if
the private provider enters into a legally
binding agreement with the recipient that
requires the provider to use the rolling stock
in the recipient's service area.
``(C) Definitions.--In this paragraph, the
following definitions apply:
``(i) Private provider of public
transportation by vanpool.--The term
`private provider of public
transportation by vanpool' means a
private entity providing vanpool
services in the service area of a
recipient of assistance under this
chapter using a commuter highway
vehicle or vanpool vehicle.
``(ii) Commuter highway vehicle;
vanpool vehicle.--The term `commuter
highway vehicle or vanpool vehicle'
means any vehicle--
``(I) the seating capacity
of which is at least 6 adults
(not including the driver); and
``(II) at least 80 percent
of the mileage use of which can
be reasonably expected to be
for the purposes of
transporting commuters in
connection with travel between
their residences and their
place of employment.
``(j) Buy America.--
``(1) In general.--The Secretary may obligate an
amount that may be appropriated to carry out this
chapter for a project only if the steel, iron, and
manufactured goods used in the project are produced in
the United States.
``(2) Waiver.--The Secretary may waive paragraph
(1) of this subsection if the Secretary finds that--
``(A) applying paragraph (1) would be
inconsistent with the public interest;
``(B) the steel, iron, and goods produced
in the United States are not produced in a
sufficient and reasonably available amount or
are not of a satisfactory quality;
``(C) when procuring rolling stock
(including train control, communication, and
traction power equipment) under this chapter--
``(i) the cost of components and
subcomponents produced in the United
States is more than 60 percent of the
cost of all components of the rolling
stock; and
``(ii) final assembly of the
rolling stock has occurred in the
United States; or
``(D) including domestic material will
increase the cost of the overall project by
more than 25 percent.
``(3) Written waiver determination and annual
report.--
``(A) Written determination.--Before
issuing a waiver under paragraph (2), the
Secretary shall--
``(i) publish in the Federal
Register and make publicly available in
an easily identifiable location on the
website of the Department of
Transportation a detailed written
explanation of the waiver
determination; and
``(ii) provide the public with a
reasonable period of time for notice
and comment.
``(B) Annual report.--Not later than 1 year
after the date of enactment of the Federal
Public Transportation Act of 2012, and annually
thereafter, the Secretary shall submit to the
Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on
Transportation and Infrastructure of the House
of Representatives a report listing any waiver
issued under paragraph (2) during the preceding
year.
``(4) Labor costs for final assembly.--In this
subsection, labor costs involved in final assembly are
not included in calculating the cost of components.
``(5) Waiver prohibited.--The Secretary may not
make a waiver under paragraph (2) of this subsection
for goods produced in a foreign country if the
Secretary, in consultation with the United States Trade
Representative, decides that the government of that
foreign country--
``(A) has an agreement with the United
States Government under which the Secretary has
waived the requirement of this subsection; and
``(B) has violated the agreement by
discriminating against goods to which this
subsection applies that are produced in the
United States and to which the agreement
applies.
``(6) Penalty for mislabeling and
misrepresentation.--A person is ineligible under
subpart 9.4 of the Federal Acquisition Regulation, or
any successor thereto, to receive a contract or
subcontract made with amounts authorized under the
Federal Public Transportation Act of 2012 if a court or
department, agency, or instrumentality of the
Government decides the person intentionally--
``(A) affixed a `Made in America' label, or
a label with an inscription having the same
meaning, to goods sold in or shipped to the
United States that are used in a project to
which this subsection applies but not produced
in the United States; or
``(B) represented that goods described in
subparagraph (A) of this paragraph were
produced in the United States.
``(7) State requirements.--The Secretary may not
impose any limitation on assistance provided under this
chapter that restricts a State from imposing more
stringent requirements than this subsection on the use
of articles, materials, and supplies mined, produced,
or manufactured in foreign countries in projects
carried out with that assistance or restricts a
recipient of that assistance from complying with those
State-imposed requirements.
``(8) Opportunity to correct inadvertent error.--
The Secretary may allow a manufacturer or supplier of
steel, iron, or manufactured goods to correct after bid
opening any certification of noncompliance or failure
to properly complete the certification (but not
including failure to sign the certification) under this
subsection if such manufacturer or supplier attests
under penalty of perjury that such manufacturer or
supplier submitted an incorrect certification as a
result of an inadvertent or clerical error. The burden
of establishing inadvertent or clerical error is on the
manufacturer or supplier.
``(9) Administrative review.--A party adversely
affected by an agency action under this subsection
shall have the right to seek review under section 702
of title 5.
``(k) Participation of Governmental Agencies in Design and
Delivery of Transportation Services.--Governmental agencies and
nonprofit organizations that receive assistance from Government
sources (other than the Department of Transportation) for
nonemergency transportation services shall--
``(1) participate and coordinate with recipients of
assistance under this chapter in the design and
delivery of transportation services; and
``(2) be included in the planning for those
services.
``(l) Relationship to Other Laws.--
``(1) Fraud and false statements.--Section 1001 of
title 18 applies to a certificate, submission, or
statement provided under this chapter. The Secretary
may terminate financial assistance under this chapter
and seek reimbursement directly, or by offsetting
amounts, available under this chapter if the Secretary
determines that a recipient of such financial
assistance has made a false or fraudulent statement or
related act in connection with a Federal public
transportation program.
``(2) Political activities of nonsupervisory
employees.--The provision of assistance under this
chapter shall not be construed to require the
application of chapter 15 of title 5 to any
nonsupervisory employee of a public transportation
system (or any other agency or entity performing
related functions) to whom such chapter does not
otherwise apply.
``(m) Preaward and Postdelivery Review of Rolling Stock
Purchases.--The Secretary shall prescribe regulations requiring
a preaward and postdelivery review of a grant under this
chapter to buy rolling stock to ensure compliance with
Government motor vehicle safety requirements, subsection (j) of
this section, and bid specifications requirements of grant
recipients under this chapter. Under this subsection,
independent inspections and review are required, and a
manufacturer certification is not sufficient. Rolling stock
procurements of 20 vehicles or fewer made for the purpose of
serving rural areas and urbanized areas with populations of
200,000 or fewer shall be subject to the same requirements as
established for procurements of 10 or fewer buses under the
post-delivery purchaser's requirements certification process
under section 663.37(c) of title 49, Code of Federal
Regulations.
``(n) Submission of Certifications.--A certification
required under this chapter and any additional certification or
assurance required by law or regulation to be submitted to the
Secretary may be consolidated into a single document to be
submitted annually as part of a grant application under this
chapter. The Secretary shall publish annually a list of all
certifications required under this chapter with the publication
required under section 5336(d)(2).
``(o) Grant Requirements.--The grant requirements under
sections 5307, 5309, and 5337 apply to any project under this
chapter that receives any assistance or other financing under
chapter 6 (other than section 609) of title 23.
``(p) Alternative Fueling Facilities.--A recipient of
assistance under this chapter may allow the incidental use of
federally funded alternative fueling facilities and equipment
by nontransit public entities and private entities if--
``(1) the incidental use does not interfere with
the recipient's public transportation operations;
``(2) all costs related to the incidental use are
fully recaptured by the recipient from the nontransit
public entity or private entity;
``(3) the recipient uses revenues received from the
incidental use in excess of costs for planning,
capital, and operating expenses that are incurred in
providing public transportation; and
``(4) private entities pay all applicable excise
taxes on fuel.
``(q) Corridor Preservation.--
``(1) In general.--The Secretary may assist a
recipient in acquiring right-of-way before the
completion of the environmental reviews for any project
that may use the right-of-way if the acquisition is
otherwise permitted under Federal law. The Secretary
may establish restrictions on such an acquisition as
the Secretary determines to be necessary and
appropriate.
``(2) Environmental reviews.--Right-of-way acquired
under this subsection may not be developed in
anticipation of the project until all required
environmental reviews for the project have been
completed.
``(r) Reasonable Access to Public Transportation
Facilities.--A recipient of assistance under this chapter may
not deny reasonable access for a private intercity or charter
transportation operator to federally funded public
transportation facilities, including intermodal facilities,
park and ride lots, and bus-only highway lanes. In determining
reasonable access, capacity requirements of the recipient of
assistance and the extent to which access would be detrimental
to existing public transportation services must be
considered.''.
SEC. 20017. PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM.
(a) In General.--Section 5324 of title 49, United States
Code, is amended to read as follows:
``Sec. 5324. Public transportation emergency relief program
``(a) Definition.--In this section the following
definitions shall apply:
``(1) Eligible operating costs.--The term `eligible
operating costs' means costs relating to--
``(A) evacuation services;
``(B) rescue operations;
``(C) temporary public transportation
service; or
``(D) reestablishing, expanding, or
relocating public transportation route service
before, during, or after an emergency.
``(2) Emergency.--The term `emergency' means a
natural disaster affecting a wide area (such as a
flood, hurricane, tidal wave, earthquake, severe storm,
or landslide) or a catastrophic failure from any
external cause, as a result of which--
``(A) the Governor of a State has declared
an emergency and the Secretary has concurred;
or
``(B) the President has declared a major
disaster under section 401 of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170).
``(b) General Authority.--The Secretary may make grants and
enter into contracts and other agreements (including agreements
with departments, agencies, and instrumentalities of the
Government) for--
``(1) capital projects to protect, repair,
reconstruct, or replace equipment and facilities of a
public transportation system operating in the United
States or on an Indian reservation that the Secretary
determines is in danger of suffering serious damage, or
has suffered serious damage, as a result of an
emergency; and
``(2) eligible operating costs of public
transportation equipment and facilities in an area
directly affected by an emergency during--
``(A) the 1-year period beginning on the
date of a declaration described in subsection
(a)(2); or
``(B) if the Secretary determines there is
a compelling need, the 2-year period beginning
on the date of a declaration described in
subsection (a)(2).
``(c) Coordination of Emergency Funds.--
``(1) Use of funds.--Funds appropriated to carry
out this section shall be in addition to any other
funds available under this chapter.
``(2) No effect on other government activity.--The
provision of funds under this section shall not affect
the ability of any other agency of the Government,
including the Federal Emergency Management Agency, or a
State agency, a local governmental entity,
organization, or person, to provide any other funds
otherwise authorized by law.
``(3) Notification.--The Secretary shall notify the
Secretary of Homeland Security of the purpose and
amount of any grant made or contract or other agreement
entered into under this section.
``(d) Grant Requirements.--A grant awarded under this
section or under section 5307 or 5311 that is made to address
an emergency defined under subsection (a)(2) shall be--
``(1) subject to the terms and conditions the
Secretary determines are necessary; and
``(2) made only for expenses that are not
reimbursed under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
``(e) Government Share of Costs.--
``(1) Capital projects and operating assistance.--A
grant, contract, or other agreement for a capital
project or eligible operating costs under this section
shall be, at the option of the recipient, for not more
than 80 percent of the net project cost, as determined
by the Secretary.
``(2) Non-federal share.--The remainder of the net
project cost may be provided from an undistributed cash
surplus, a replacement or depreciation cash fund or
reserve, or new capital.
``(3) Waiver.--The Secretary may waive, in whole or
part, the non-Federal share required under--
``(A) paragraph (2); or
``(B) section 5307 or 5311, in the case of
a grant made available under section 5307 or
5311, respectively, to address an emergency.''.
(b) Memorandum of Agreement.--
(1) Purposes.--The purposes of this subsection
are--
(A) to improve coordination between the
Department of Transportation and the Department
of Homeland Security; and
(B) to expedite the provision of Federal
assistance for public transportation systems
for activities relating to a major disaster or
emergency declared by the President under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.) (referred to in this subsection as a
``major disaster or emergency'').
(2) Agreement.--Not later than 180 days after the
date of enactment of this Act, the Secretary of
Transportation and the Secretary of Homeland Security
shall enter into a memorandum of agreement to
coordinate the roles and responsibilities of the
Department of Transportation and the Department of
Homeland Security in providing assistance for public
transportation, including the provision of public
transportation services and the repair and restoration
of public transportation systems in areas for which the
President has declared a major disaster or emergency.
(3) Contents of agreement.--The memorandum of
agreement required under paragraph (2) shall--
(A) provide for improved coordination and
expeditious use of public transportation, as
appropriate, in response to and recovery from a
major disaster or emergency;
(B) establish procedures to address--
(i) issues that have contributed to
delays in the reimbursement of eligible
transportation-related expenses
relating to a major disaster or
emergency;
(ii) any challenges identified in
the review under paragraph (4); and
(iii) the coordination of
assistance for public transportation
provided under the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act and section 5324 of
title 49, United States Code, as
amended by this Act, as appropriate;
and
(C) provide for the development and
distribution of clear guidelines for State,
local, and tribal governments, including public
transportation systems, relating to--
(i) assistance available for public
transportation systems for activities
relating to a major disaster or
emergency--
(I) under the Robert T.
Stafford Disaster Relief and
Emergency Assistance Act;
(II) under section 5324 of
title 49, United States Code,
as amended by this Act; and
(III) from other sources,
including other Federal
agencies; and
(ii) reimbursement procedures that
speed the process of--
(I) applying for assistance
under the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act and section 5324
of title 49, United States
Code, as amended by this Act;
and
(II) distributing
assistance for public
transportation systems under
the Robert T. Stafford Disaster
Relief and Emergency Assistance
Act and section 5324 of title
49, United States Code, as
amended by this Act.
(4) After action review.--Before entering into a
memorandum of agreement under paragraph (2), the
Secretary of Transportation and the Secretary of
Homeland Security (acting through the Administrator of
the Federal Emergency Management Agency), in
consultation with State, local, and tribal governments
(including public transportation systems) that have
experienced a major disaster or emergency, shall review
after action reports relating to major disasters,
emergencies, and exercises, to identify areas where
coordination between the Department of Transportation
and the Department of Homeland Security and the
provision of public transportation services should be
improved.
(5) Factors for declarations of major disasters and
emergencies.--The Administrator of the Federal
Emergency Management Agency shall make available to
State, local, and tribal governments, including public
transportation systems, a description of the factors
that the President considers in declaring a major
disaster or emergency, including any pre-disaster
emergency declaration policies.
(6) Briefings.--
(A) Initial briefing.--Not later than 180
days after the date of enactment of this Act,
the Secretary of Transportation and the
Secretary of Homeland Security shall jointly
brief the Committee on Banking, Housing, and
Urban Affairs and the Committee on Homeland
Security and Governmental Affairs of the Senate
on the memorandum of agreement required under
paragraph (2).
(B) Quarterly briefings.--Each quarter of
the 1-year period beginning on the date on
which the Secretary of Transportation and the
Secretary of Homeland Security enter into the
memorandum of agreement required under
paragraph (2), the Secretary of Transportation
and the Secretary of Homeland Security shall
jointly brief the Committee on Banking,
Housing, and Urban Affairs and the Committee on
Homeland Security and Governmental Affairs of
the Senate on the implementation of the
memorandum of agreement.
SEC. 20018. CONTRACT REQUIREMENTS.
Section 5325 of title 49, United States Code, is amended--
(1) in subsection (e), by striking paragraph (1)
and inserting the following:
``(1) Contracts.--A recipient procuring rolling
stock with Government financial assistance under this
chapter may make a multiyear contract to buy the
rolling stock and replacement parts under which the
recipient has an option to buy additional rolling stock
or replacement parts for--
``(A) not more than 5 years after the date
of the original contract for bus procurements;
and
``(B) not more than 7 years after the date
of the original contract for rail procurements,
provided that such option does not allow for
significant changes or alterations to the
rolling stock.''.
(2) in subsection (h), by striking ``Federal Public
Transportation Act of 2005'' and inserting ``Federal
Public Transportation Act of 2012'';
(3) in subsection (j)(2)(C), by striking ``,
including the performance reported in the Contractor
Performance Assessment Reports required under section
5309(l)(2)''; and
(4) by adding at the end the following:
``(k) Veterans Employment.--Recipients and subrecipients of
Federal financial assistance under this chapter shall ensure
that contractors working on a capital project funded using such
assistance give a hiring preference, to the extent practicable,
to veterans (as defined in section 2108 of title 5) who have
the requisite skills and abilities to perform the construction
work required under the contract. This subsection shall not be
understood, construed or enforced in any manner that would
require an employer to give a preference to any veteran over
any equally qualified applicant who is a member of any racial
or ethnic minority, female, an individual with a disability, or
a former employee.''.
SEC. 20019. TRANSIT ASSET MANAGEMENT.
Section 5326 of title 49, United States Code, is amended to
read as follows:
``Sec. 5326. Transit asset management
``(a) Definitions.--In this section the following
definitions shall apply:
``(1) Capital asset.--The term `capital asset'
includes equipment, rolling stock, infrastructure, and
facilities for use in public transportation and owned
or leased by a recipient or subrecipient of Federal
financial assistance under this chapter.
``(2) Transit asset management plan.--The term
`transit asset management plan' means a plan developed
by a recipient of funding under this chapter that--
``(A) includes, at a minimum, capital asset
inventories and condition assessments, decision
support tools, and investment prioritization;
and
``(B) the recipient certifies complies with
the rule issued under this section.
``(3) Transit asset management system.--The term
`transit asset management system' means a strategic and
systematic process of operating, maintaining, and
improving public transportation capital assets
effectively throughout the life cycle of such assets.
``(b) Transit Asset Management System.--The Secretary shall
establish and implement a national transit asset management
system, which shall include--
``(1) a definition of the term `state of good
repair' that includes objective standards for measuring
the condition of capital assets of recipients,
including equipment, rolling stock, infrastructure, and
facilities;
``(2) a requirement that recipients and
subrecipients of Federal financial assistance under
this chapter develop a transit asset management plan;
``(3) a requirement that each designated recipient
of Federal financial assistance under this chapter
report on the condition of the system of the recipient
and provide a description of any change in condition
since the last report;
``(4) an analytical process or decision support
tool for use by public transportation systems that--
``(A) allows for the estimation of capital
investment needs of such systems over time; and
``(B) assists with asset investment
prioritization by such systems; and
``(5) technical assistance to recipients of Federal
financial assistance under this chapter.
``(c) Performance Measures and Targets.--
``(1) In general.--Not later than 1 year after the
date of enactment of the Federal Public Transportation
Act of 2012, the Secretary shall issue a final rule to
establish performance measures based on the state of
good repair standards established under subsection
(b)(1).
``(2) Targets.--Not later than 3 months after the
date on which the Secretary issues a final rule under
paragraph (1), and each fiscal year thereafter, each
recipient of Federal financial assistance under this
chapter shall establish performance targets in relation
to the performance measures established by the
Secretary.
``(3) Reports.--Each designated recipient of
Federal financial assistance under this chapter shall
submit to the Secretary an annual report that
describes--
``(A) the progress of the recipient during
the fiscal year to which the report relates
toward meeting the performance targets
established under paragraph (2) for that fiscal
year; and
``(B) the performance targets established
by the recipient for the subsequent fiscal
year.
``(d) Rulemaking.--Not later than 1 year after the date of
enactment of the Federal Public Transportation Act of 2012, the
Secretary shall issue a final rule to implement the transit
asset management system described in subsection (b).''.
SEC. 20020. PROJECT MANAGEMENT OVERSIGHT.
Section 5327 of title 49, United States Code, is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1),
by striking ``United States'' and all that
follows through ``Secretary of Transportation''
and inserting the following: ``Federal
financial assistance for a major capital
project for public transportation under this
chapter or any other provision of Federal law,
a recipient must prepare a project management
plan approved by the Secretary and carry out
the project in accordance with the project
management plan''; and
(B) in paragraph (12), by striking ``each
month'' and inserting ``quarterly'';
(2) by striking subsections (c), (d), and (f);
(3) by inserting after subsection (b) the
following:
``(c) Access to Sites and Records.--Each recipient of
Federal financial assistance for public transportation under
this chapter or any other provision of Federal law shall
provide the Secretary and a contractor the Secretary chooses
under section 5338(i) with access to the construction sites and
records of the recipient when reasonably necessary.'';
(4) by redesignating subsection (e) as subsection
(d); and
(5) in subsection (d), as so redesignated--
(A) in paragraph (1), by striking
``subsection (c) of this section'' and
inserting ``section 5338(i)''; and
(B) in paragraph (2)--
(i) by striking ``preliminary
engineering stage'' and inserting
``project development phase''; and
(ii) by striking ``another stage''
and inserting ``another phase''.
SEC. 20021. PUBLIC TRANSPORTATION SAFETY.
(a) Public Transportation Safety Program.--Section 5329 of
title 49, United States Code, is amended to read as follows:
``Sec. 5329. Public transportation safety program
``(a) Definition.--In this section, the term `recipient'
means a State or local governmental authority, or any other
operator of a public transportation system, that receives
financial assistance under this chapter.
``(b) National Public Transportation Safety Plan.--
``(1) In general.--The Secretary shall create and
implement a national public transportation safety plan
to improve the safety of all public transportation
systems that receive funding under this chapter.
``(2) Contents of plan.--The national public
transportation safety plan under paragraph (1) shall
include--
``(A) safety performance criteria for all
modes of public transportation;
``(B) the definition of the term `state of
good repair' established under section 5326(b);
``(C) minimum safety performance standards
for public transportation vehicles used in
revenue operations that--
``(i) do not apply to rolling stock
otherwise regulated by the Secretary or
any other Federal agency; and
``(ii) to the extent practicable,
take into consideration--
``(I) relevant
recommendations of the National
Transportation Safety Board;
and
``(II) recommendations of,
and best practices standards
developed by, the public
transportation industry; and
``(D) a public transportation safety
certification training program, as described in
subsection (c).
``(c) Public Transportation Safety Certification Training
Program.--
``(1) In general.--The Secretary shall establish a
public transportation safety certification training
program for Federal and State employees, or other
designated personnel, who conduct safety audits and
examinations of public transportation systems and
employees of public transportation agencies directly
responsible for safety oversight.
``(2) Interim provisions.--Not later than 90 days
after the date of enactment of the Federal Public
Transportation Act of 2012, the Secretary shall
establish interim provisions for the certification and
training of the personnel described in paragraph (1),
which shall be in effect until the effective date of
the final rule issued by the Secretary to implement
this subsection.
``(d) Public Transportation Agency Safety Plan.--
``(1) In general.--Effective 1 year after the
effective date of a final rule issued by the Secretary
to carry out this subsection, each recipient or State,
as described in paragraph (3), shall certify that the
recipient or State has established a comprehensive
agency safety plan that includes, at a minimum--
``(A) a requirement that the board of
directors (or equivalent entity) of the
recipient approve the agency safety plan and
any updates to the agency safety plan;
``(B) methods for identifying and
evaluating safety risks throughout all elements
of the public transportation system of the
recipient;
``(C) strategies to minimize the exposure
of the public, personnel, and property to
hazards and unsafe conditions;
``(D) a process and timeline for conducting
an annual review and update of the safety plan
of the recipient;
``(E) performance targets based on the
safety performance criteria and state of good
repair standards established under
subparagraphs (A) and (B), respectively, of
subsection (b)(2);
``(F) assignment of an adequately trained
safety officer who reports directly to the
general manager, president, or equivalent
officer of the recipient; and
``(G) a comprehensive staff training
program for the operations personnel and
personnel directly responsible for safety of
the recipient that includes--
``(i) the completion of a safety
training program; and
``(ii) continuing safety education
and training.
``(2) Interim agency safety plan.--A system safety
plan developed pursuant to part 659 of title 49, Code
of Federal Regulations, as in effect on the date of
enactment of the Federal Public Transportation Act of
2012, shall remain in effect until such time as this
subsection takes effect.
``(3) Public transportation agency safety plan
drafting and certification.--
``(A) Section 5311.--For a recipient
receiving assistance under section 5311, a
State safety plan may be drafted and certified
by the recipient or a State.
``(B) Section 5307.--Not later than 120
days after the date of enactment of the Federal
Public Transportation Act of 2012, the
Secretary shall issue a rule designating
recipients of assistance under section 5307
that are small public transportation providers
or systems that may have their State safety
plans drafted or certified by a State.
``(e) State Safety Oversight Program.--
``(1) Applicability.--This subsection applies only
to eligible States.
``(2) Definition.--In this subsection, the term
`eligible State' means a State that has--
``(A) a rail fixed guideway public
transportation system within the jurisdiction
of the State that is not subject to regulation
by the Federal Railroad Administration; or
``(B) a rail fixed guideway public
transportation system in the engineering or
construction phase of development within the
jurisdiction of the State that will not be
subject to regulation by the Federal Railroad
Administration.
``(3) In general.--In order to obligate funds
apportioned under section 5338 to carry out this
chapter, effective 3 years after the date on which a
final rule under this subsection becomes effective, an
eligible State shall have in effect a State safety
oversight program approved by the Secretary under which
the State--
``(A) assumes responsibility for overseeing
rail fixed guideway public transportation
safety;
``(B) adopts and enforces Federal and
relevant State laws on rail fixed guideway
public transportation safety;
``(C) establishes a State safety oversight
agency;
``(D) determines, in consultation with the
Secretary, an appropriate staffing level for
the State safety oversight agency that is
commensurate with the number, size, and
complexity of the rail fixed guideway public
transportation systems in the eligible State;
``(E) requires that employees and other
designated personnel of the eligible State
safety oversight agency who are responsible for
rail fixed guideway public transportation
safety oversight are qualified to perform such
functions through appropriate training,
including successful completion of the public
transportation safety certification training
program established under subsection (c); and
``(F) prohibits any public transportation
agency from providing funds to the State safety
oversight agency or an entity designated by the
eligible State as the State safety oversight
agency under paragraph (4).
``(4) State safety oversight agency.--
``(A) In general.--Each State safety
oversight program shall establish a State
safety oversight agency that--
``(i) is financially and legally
independent from any public
transportation entity that the State
safety oversight agency oversees;
``(ii) does not directly provide
public transportation services in an
area with a rail fixed guideway public
transportation system subject to the
requirements of this section;
``(iii) does not employ any
individual who is also responsible for
the administration of rail fixed
guideway public transportation programs
subject to the requirements of this
section;
``(iv) has the authority to review,
approve, oversee, and enforce the
implementation by the rail fixed
guideway public transportation agency
of the public transportation agency
safety plan required under subsection
(d);
``(v) has investigative and
enforcement authority with respect to
the safety of rail fixed guideway
public transportation systems of the
eligible State;
``(vi) audits, at least once
triennially, the compliance of the rail
fixed guideway public transportation
systems in the eligible State subject
to this subsection with the public
transportation agency safety plan
required under subsection (d); and
``(vii) provides, at least once
annually, a status report on the safety
of the rail fixed guideway public
transportation systems the State safety
oversight agency oversees to--
``(I) the Federal Transit
Administration;
``(II) the Governor of the
eligible State; and
``(III) the board of
directors, or equivalent
entity, of any rail fixed
guideway public transportation
system that the State safety
oversight agency oversees.
``(B) Waiver.--At the request of an
eligible State, the Secretary may waive clauses
(i) and (iii) of subparagraph (A) for eligible
States with 1 or more rail fixed guideway
systems in revenue operations, design, or
construction, that--
``(i) have fewer than 1,000,000
combined actual and projected rail
fixed guideway revenue miles per year;
or
``(ii) provide fewer than
10,000,000 combined actual and
projected unlinked passenger trips per
year.
``(5) Programs for multi-state rail fixed guideway
public transportation systems.--An eligible State that
has within the jurisdiction of the eligible State a
rail fixed guideway public transportation system that
operates in more than 1 eligible State shall--
``(A) jointly with all other eligible
States in which the rail fixed guideway public
transportation system operates, ensure uniform
safety standards and enforcement procedures
that shall be in compliance with this section,
and establish and implement a State safety
oversight program approved by the Secretary; or
``(B) jointly with all other eligible
States in which the rail fixed guideway public
transportation system operates, designate an
entity having characteristics consistent with
the characteristics described in paragraph (3)
to carry out the State safety oversight program
approved by the Secretary.
``(6) Grants.--
``(A) In general.--The Secretary shall make
grants to eligible States to develop or carry
out State safety oversight programs under this
subsection. Grant funds may be used for program
operational and administrative expenses,
including employee training activities.
``(B) Apportionment.--
``(i) Formula.--The amount made
available for State safety oversight
under section 5336(h) shall be
apportioned among eligible States under
a formula to be established by the
Secretary. Such formula shall take into
account fixed guideway vehicle revenue
miles, fixed guideway route miles, and
fixed guideway vehicle passenger miles
attributable to all rail fixed guideway
systems not subject to regulation by
the Federal Railroad Administration
within each eligible State.
``(ii) Administrative
requirements.--Grant funds apportioned
to States under this paragraph shall be
subject to uniform administrative
requirements for grants and cooperative
agreements to State and local
governments under part 18 of title 49,
Code of Federal Regulations, and shall
be subject to the requirements of this
chapter as the Secretary determines
appropriate.
``(C) Government share.--
``(i) In general.--The Government
share of the reasonable cost of a State
safety oversight program developed or
carried out using a grant under this
paragraph shall be 80 percent.
``(ii) In-kind contributions.--Any
calculation of the non-Government share
of a State safety oversight program
shall include in-kind contributions by
an eligible State.
``(iii) Non-government share.--The
non-Government share of the cost of a
State safety oversight program
developed or carried out using a grant
under this paragraph may not be met
by--
``(I) any Federal funds;
``(II) any funds received
from a public transportation
agency; or
``(III) any revenues earned
by a public transportation
agency.
``(iv) Safety training program.--
Recipients of funds made available to
carry out sections 5307 and 5311 may
use not more than 0.5 percent of their
formula funds to pay not more than 80
percent of the cost of participation in
the public transportation safety
certification training program
established under subsection (c), by an
employee of a State safety oversight
agency or a recipient who is directly
responsible for safety oversight.
``(7) Certification process.--
``(A) In general.--Not later than 1 year
after the date of enactment of the Federal
Public Transportation Act of 2012, the
Secretary shall determine whether or not each
State safety oversight program meets the
requirements of this subsection and the State
safety oversight program is adequate to promote
the purposes of this section.
``(B) Issuance of certifications and
denials.--The Secretary shall issue a
certification to each eligible State that the
Secretary determines under subparagraph (A)
adequately meets the requirements of this
subsection, and shall issue a denial of
certification to each eligible State that the
Secretary determines under subparagraph (A)
does not adequately meet the requirements of
this subsection.
``(C) Disapproval.--If the Secretary
determines that a State safety oversight
program does not meet the requirements of this
subsection and denies certification, the
Secretary shall transmit to the eligible State
a written explanation and allow the eligible
State to modify and resubmit the State safety
oversight program for approval.
``(D) Failure to correct.--If the Secretary
determines that a modification by an eligible
State of the State safety oversight program is
not sufficient to certify the program, the
Secretary--
``(i) shall notify the Governor of
the eligible State of such denial of
certification and failure to adequately
modify the program, and shall request
that the Governor take all possible
actions to correct deficiencies in the
program to ensure the certification of
the program; and
``(ii) may--
``(I) withhold funds
available under paragraph (6)
in an amount determined by the
Secretary;
``(II) withhold not more
than 5 percent of the amount
required to be appropriated for
use in a State or urbanized
area in the State under section
5307 of this title, until the
State safety oversight program
has been certified; or
``(III) require fixed
guideway public transportation
systems under such State safety
oversight program to provide up
to 100 percent of Federal
assistance made available under
this chapter only for safety-
related improvements on such
systems, until the State safety
oversight program has been
certified.
``(8) Evaluation of program and annual report.--The
Secretary shall continually evaluate the implementation
of a State safety oversight program by a State safety
oversight agency, and shall submit on or before July 1
of each year to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report on--
``(A) the amount of funds apportioned to
each eligible State; and
``(B) the certification status of each
State safety oversight program, including what
steps a State program that has been denied
certification must take in order to be
certified.
``(9) Federal oversight.--The Secretary shall--
``(A) oversee the implementation of each
State safety oversight program under this
subsection;
``(B) audit the operations of each State
safety oversight agency at least once
triennially; and
``(C) issue rules to carry out this
subsection.
``(f) Authority of Secretary.--In carrying out this
section, the Secretary may--
``(1) conduct inspections, investigations, audits,
examinations, and testing of the equipment, facilities,
rolling stock, and operations of the public
transportation system of a recipient;
``(2) make reports and issue directives with
respect to the safety of the public transportation
system of a recipient;
``(3) in conjunction with an accident investigation
or an investigation into a pattern or practice of
conduct that negatively affects public safety, issue a
subpoena to, and take the deposition of, any employee
of a recipient or a State safety oversight agency, if--
``(A) before the issuance of the subpoena,
the Secretary requests a determination by the
Attorney General of the United States as to
whether the subpoena will interfere with an
ongoing criminal investigation; and
``(B) the Attorney General--
``(i) determines that the subpoena
will not interfere with an ongoing
criminal investigation; or
``(ii) fails to make a
determination under clause (i) before
the date that is 30 days after the date
on which the Secretary makes a request
under subparagraph (A);
``(4) require the production of documents by, and
prescribe recordkeeping and reporting requirements for,
a recipient or a State safety oversight agency;
``(5) investigate public transportation accidents
and incidents and provide guidance to recipients
regarding prevention of accidents and incidents;
``(6) at reasonable times and in a reasonable
manner, enter and inspect equipment, facilities,
rolling stock, operations, and relevant records of the
public transportation system of a recipient; and
``(7) issue rules to carry out this section.
``(g) Enforcement Actions.--
``(1) Types of enforcement actions.--The Secretary
may take enforcement action against an eligible State,
as defined in subsection (e), that does not comply with
Federal law with respect to the safety of the public
transportation system, including--
``(A) issuing directives;
``(B) requiring more frequent oversight of
the recipient by a State safety oversight
agency or the Secretary;
``(C) imposing more frequent reporting
requirements; and
``(D) requiring that any Federal financial
assistance provided under this chapter be spent
on correcting safety deficiencies identified by
the Secretary or the State safety oversight
agency before such funds are spent on other
projects.
``(2) Use or withholding of funds.--
``(A) In general.--The Secretary may
require the use of funds in accordance with
paragraph (1)(D) only if the Secretary finds
that a recipient is engaged in a pattern or
practice of serious safety violations or has
otherwise refused to comply with Federal law
relating to the safety of the public
transportation system.
``(B) Notice.--Before withholding funds
from a recipient, the Secretary shall provide
to the recipient--
``(i) written notice of a violation
and the amount proposed to be withheld;
and
``(ii) a reasonable period of time
within which the recipient may address
the violation or propose and initiate
an alternative means of compliance that
the Secretary determines is acceptable.
``(h) Cost-benefit Analysis.--
``(1) Analysis required.--In carrying out this
section, the Secretary shall take into consideration
the costs and benefits of each action the Secretary
proposes to take under this section.
``(2) Waiver.--The Secretary may waive the
requirement under this subsection if the Secretary
determines that such a waiver is in the public
interest.
``(i) Consultation by the Secretary of Homeland Security.--
The Secretary of Homeland Security shall consult with the
Secretary of Transportation before the Secretary of Homeland
Security issues a rule or order that the Secretary of
Transportation determines affects the safety of public
transportation design, construction, or operations.
``(j) Actions Under State Law.--
``(1) Rule of construction.--Nothing in this
section shall be construed to preempt an action under
State law seeking damages for personal injury, death,
or property damage alleging that a party has failed to
comply with--
``(A) a Federal standard of care
established by a regulation or order issued by
the Secretary under this section; or
``(B) its own program, rule, or standard
that it created pursuant to a rule or order
issued by the Secretary.
``(2) Effective date.--This subsection shall apply
to any cause of action under State law arising from an
event or activity occurring on or after the date of
enactment of the Federal Public Transportation Act of
2012.
``(3) Jurisdiction.--Nothing in this section shall
be construed to create a cause of action under Federal
law on behalf of an injured party or confer Federal
question jurisdiction for a State law cause of action.
``(k) National Public Transportation Safety Report.--Not
later than 3 years after the date of enactment of the Federal
Public Transportation Act of 2012, the Secretary shall submit
to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives a report that--
``(1) analyzes public transportation safety trends
among the States and documents the most effective
safety programs implemented using grants under this
section; and
``(2) describes the effect on public transportation
safety of activities carried out using grants under
this section.''.
(b) Bus Safety Study.--
(1) Definition.--In this subsection, the term
``highway route'' means a route where 50 percent or
more of the route is on roads having a speed limit of
more than 45 miles per hour.
(2) Study.--Not later than 180 days after the date
of enactment of this Act, the Secretary of
Transportation shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and
the Committee on Transportation and Infrastructure of
the House of Representatives a report that--
(A) examines the safety of public
transportation buses that travel on highway
routes;
(B) examines laws and regulations that
apply to commercial over-the-road buses; and
(C) makes recommendations as to whether
additional safety measures should be required
for public transportation buses that travel on
highway routes.
SEC. 20022. ALCOHOL AND CONTROLLED SUBSTANCES TESTING.
Section 5331 of title 49, United States Code, is amended by
striking subsection (g) and inserting the following:
``(g) Conditions on Federal Assistance.--
``(1) Ineligibility for assistance.--A person that
receives funds under this chapter is not eligible for
financial assistance under section 5307, 5309, or 5311
of this title if the person is required, under
regulations the Secretary prescribes under this
section, to establish a program of alcohol and
controlled substances testing and does not establish
the program in accordance with this section.
``(2) Additional remedies.--If the Secretary
determines that a person that receives funds under this
chapter is not in compliance with regulations
prescribed under this section, the Secretary may bar
the person from receiving Federal transit assistance in
an amount the Secretary considers appropriate.''.
SEC. 20023. NONDISCRIMINATION.
(a) Amendments.--Section 5332 of title 49, United States
Code, is amended--
(1) in subsection (b)--
(A) by striking ``creed'' and inserting
``religion''; and
(B) by inserting ``disability,'' after
``sex,''; and
(2) in subsection (d)(3), by striking ``and'' and
inserting ``or''.
(b) Evaluation and Report.--
(1) Evaluation.--The Comptroller General of the
United States shall evaluate the progress and
effectiveness of the Federal Transit Administration in
assisting recipients of assistance under chapter 53 of
title 49, United States Code, to comply with section
5332(b) of title 49, including--
(A) by reviewing discrimination complaints,
reports, and other relevant information
collected or prepared by the Federal Transit
Administration or recipients of assistance from
the Federal Transit Administration pursuant to
any applicable civil rights statute,
regulation, or other requirement; and
(B) by reviewing the process that the
Federal Transit Administration uses to resolve
discrimination complaints filed by members of
the public.
(2) Report.--Not later than 1 year after the date
of enactment of this Act, the Comptroller General shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report concerning the evaluation
under paragraph (1) that includes--
(A) a description of the ability of the
Federal Transit Administration to address
discrimination and foster equal opportunities
in federally funded public transportation
projects, programs, and activities;
(B) recommendations for improvements if the
Comptroller General determines that
improvements are necessary; and
(C) information upon which the evaluation
under paragraph (1) is based.
SEC. 20024. ADMINISTRATIVE PROVISIONS.
Section 5334 of title 49, United States Code, is amended--
(1) in subsection (a)(1), by striking ``under
sections 5307 and 5309-5311 of this title'' and
inserting ``that receives Federal financial assistance
under this chapter'';
(2) in subsection (b)(1)--
(A) by inserting after ``emergency,'' the
following: ``or for purposes of establishing
and enforcing a program to improve the safety
of public transportation systems in the United
States as described in section 5329,''; and
(B) by striking ``chapter, nor may the
Secretary'' and inserting ``chapter. The
Secretary may not'';
(3) in subsection (c)(4), by striking ``section
(except subsection (i)) and sections 5318(e),
5323(a)(2), 5325(a), 5325(b), and 5325(f)'' and
inserting ``subsection'';
(4) in subsection (h)(3), by striking ``another''
and inserting ``any other'';
(5) in subsection (i)(1), by striking ``title 23
shall'' and inserting ``title 23 may'';
(6) by striking subsection (j); and
(7) by redesignating subsections (k) and (l) as
subsections (j) and (k), respectively.
SEC. 20025. NATIONAL TRANSIT DATABASE.
(a) Amendments.--Section 5335 of title 49, United States
Code, is amended--
(1) in subsection (a), by striking ``public
transportation financial and operating information''
and inserting ``public transportation financial,
operating, and asset condition information''; and
(2) by adding at the end the following:
``(c) Data Required to Be Reported.--The recipient of a
grant under this chapter shall report to the Secretary, for
inclusion in the National Transit Database, any information
relating to a transit asset inventory or condition assessment
conducted by the recipient.''.
(b) Data Accuracy and Reliability.--The Secretary shall--
(1) develop and implement appropriate internal
control activities to ensure that public transportation
safety incident data is reported accurately and
reliably by public transportation systems and State
safety oversight agencies to the State Safety Oversight
Rail Accident Database; and
(2) report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives within 1 year of enactment of the
Federal Public Transportation Act of 2012 on the steps
taken to improve the accuracy and reliability of public
transportation safety incident data reported to the
State Safety Oversight Rail Accident Database.
SEC. 20026. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA GRANTS.
Section 5336 of title 49, United States Code, is amended to
read as follows:
``Sec. 5336. Apportionment of appropriations for formula grants
``(a) Based on Urbanized Area Population.--Of the amount
apportioned under subsection (h)(4) to carry out section 5307--
``(1) 9.32 percent shall be apportioned each fiscal
year only in urbanized areas with a population of less
than 200,000 so that each of those areas is entitled to
receive an amount equal to--
``(A) 50 percent of the total amount
apportioned multiplied by a ratio equal to the
population of the area divided by the total
population of all urbanized areas with
populations of less than 200,000 as shown in
the most recent decennial census; and
``(B) 50 percent of the total amount
apportioned multiplied by a ratio for the area
based on population weighted by a factor,
established by the Secretary, of the number of
inhabitants in each square mile; and
``(2) 90.68 percent shall be apportioned each
fiscal year only in urbanized areas with populations of
at least 200,000 as provided in subsections (b) and (c)
of this section.
``(b) Based on Fixed Guideway Vehicle Revenue Miles,
Directional Route Miles, and Passenger Miles.--(1) In this
subsection, `fixed guideway vehicle revenue miles' and `fixed
guideway directional route miles' include passenger ferry
operations directly or under contract by the designated
recipient.
``(2) Of the amount apportioned under subsection (a)(2) of
this section, 33.29 percent shall be apportioned as follows:
``(A) 95.61 percent of the total amount apportioned
under this subsection shall be apportioned so that each
urbanized area with a population of at least 200,000 is
entitled to receive an amount equal to--
``(i) 60 percent of the 95.61 percent
apportioned under this subparagraph multiplied
by a ratio equal to the number of fixed
guideway vehicle revenue miles attributable to
the area, as established by the Secretary,
divided by the total number of all fixed
guideway vehicle revenue miles attributable to
all areas; and
``(ii) 40 percent of the 95.61 percent
apportioned under this subparagraph multiplied
by a ratio equal to the number of fixed
guideway directional route miles attributable
to the area, established by the Secretary,
divided by the total number of all fixed
guideway directional route miles attributable
to all areas.
An urbanized area with a population of at least 750,000
in which commuter rail transportation is provided shall
receive at least .75 percent of the total amount
apportioned under this subparagraph.
``(B) 4.39 percent of the total amount apportioned
under this subsection shall be apportioned so that each
urbanized area with a population of at least 200,000 is
entitled to receive an amount equal to--
``(i) the number of fixed guideway vehicle
passenger miles traveled multiplied by the
number of fixed guideway vehicle passenger
miles traveled for each dollar of operating
cost in an area; divided by
``(ii) the total number of fixed guideway
vehicle passenger miles traveled multiplied by
the total number of fixed guideway vehicle
passenger miles traveled for each dollar of
operating cost in all areas.
An urbanized area with a population of at least 750,000
in which commuter rail transportation is provided shall
receive at least .75 percent of the total amount
apportioned under this subparagraph.
``(C) Under subparagraph (A) of this paragraph,
fixed guideway vehicle revenue or directional route
miles, and passengers served on those miles, in an
urbanized area with a population of less than 200,000,
where the miles and passengers served otherwise would
be attributable to an urbanized area with a population
of at least 1,000,000 in an adjacent State, are
attributable to the governmental authority in the State
in which the urbanized area with a population of less
than 200,000 is located. The authority is deemed an
urbanized area with a population of at least 200,000 if
the authority makes a contract for the service.
``(D) A recipient's apportionment under
subparagraph (A)(i) of this paragraph may not be
reduced if the recipient, after satisfying the
Secretary that energy or operating efficiencies would
be achieved, reduces vehicle revenue miles but provides
the same frequency of revenue service to the same
number of riders.
``(E) For purposes of subparagraph (A) and section
5337(c)(3), the Secretary shall deem to be attributable
to an urbanized area not less than 22.27 percent of the
fixed guideway vehicle revenue miles or fixed guideway
directional route miles in the public transportation
system of a recipient that are located outside the
urbanized area for which the recipient receives funds,
in addition to the fixed guideway vehicle revenue miles
or fixed guideway directional route miles of the
recipient that are located inside the urbanized area.
``(c) Based on Bus Vehicle Revenue Miles and Passenger
Miles.--Of the amount apportioned under subsection (a)(2) of
this section, 66.71 percent shall be apportioned as follows:
``(1) 90.8 percent of the total amount apportioned
under this subsection shall be apportioned as follows:
``(A) 73.39 percent of the 90.8 percent
apportioned under this paragraph shall be
apportioned so that each urbanized area with a
population of at least 1,000,000 is entitled to
receive an amount equal to--
``(i) 50 percent of the 73.39
percent apportioned under this
subparagraph multiplied by a ratio
equal to the total bus vehicle revenue
miles operated in or directly serving
the urbanized area divided by the total
bus vehicle revenue miles attributable
to all areas;
``(ii) 25 percent of the 73.39
percent apportioned under this
subparagraph multiplied by a ratio
equal to the population of the area
divided by the total population of all
areas, as shown in the most recent
decennial census; and
``(iii) 25 percent of the 73.39
percent apportioned under this
subparagraph multiplied by a ratio for
the area based on population weighted
by a factor, established by the
Secretary, of the number of inhabitants
in each square mile.
``(B) 26.61 percent of the 90.8 percent
apportioned under this paragraph shall be
apportioned so that each urbanized area with a
population of at least 200,000 but not more
than 999,999 is entitled to receive an amount
equal to--
``(i) 50 percent of the 26.61
percent apportioned under this
subparagraph multiplied by a ratio
equal to the total bus vehicle revenue
miles operated in or directly serving
the urbanized area divided by the total
bus vehicle revenue miles attributable
to all areas;
``(ii) 25 percent of the 26.61
percent apportioned under this
subparagraph multiplied by a ratio
equal to the population of the area
divided by the total population of all
areas, as shown by the most recent
decennial census; and
``(iii) 25 percent of the 26.61
percent apportioned under this
subparagraph multiplied by a ratio for
the area based on population weighted
by a factor, established by the
Secretary, of the number of inhabitants
in each square mile.
``(2) 9.2 percent of the total amount apportioned
under this subsection shall be apportioned so that each
urbanized area with a population of at least 200,000 is
entitled to receive an amount equal to--
``(A) the number of bus passenger miles
traveled multiplied by the number of bus
passenger miles traveled for each dollar of
operating cost in an area; divided by
``(B) the total number of bus passenger
miles traveled multiplied by the total number
of bus passenger miles traveled for each dollar
of operating cost in all areas.
``(d) Date of Apportionment.--The Secretary shall--
``(1) apportion amounts appropriated under section
5338(a)(2)(C) of this title to carry out section 5307
of this title not later than the 10th day after the
date the amounts are appropriated or October 1 of the
fiscal year for which the amounts are appropriated,
whichever is later; and
``(2) publish apportionments of the amounts,
including amounts attributable to each urbanized area
with a population of more than 50,000 and amounts
attributable to each State of a multistate urbanized
area, on the apportionment date.
``(e) Amounts Not Apportioned to Designated Recipients.--
The Governor of a State may expend in an urbanized area with a
population of less than 200,000 an amount apportioned under
this section that is not apportioned to a designated recipient,
as defined in section 5302(4).
``(f) Transfers of Apportionments.--(1) The Governor of a
State may transfer any part of the State's apportionment under
subsection (a)(1) of this section to supplement amounts
apportioned to the State under section 5311(c)(3). The Governor
may make a transfer only after consulting with responsible
local officials and publicly owned operators of public
transportation in each area for which the amount originally was
apportioned under this section.
``(2) The Governor of a State may transfer any part of the
State's apportionment under section 5311(c)(3) to supplement
amounts apportioned to the State under subsection (a)(1) of
this section.
``(3) The Governor of a State may use throughout the State
amounts of a State's apportionment remaining available for
obligation at the beginning of the 90-day period before the
period of the availability of the amounts expires.
``(4) A designated recipient for an urbanized area with a
population of at least 200,000 may transfer a part of its
apportionment under this section to the Governor of a State.
The Governor shall distribute the transferred amounts to
urbanized areas under this section.
``(5) Capital and operating assistance limitations
applicable to the original apportionment apply to amounts
transferred under this subsection.
``(g) Period of Availability to Recipients.--An amount
apportioned under this section may be obligated by the
recipient for 5 years after the fiscal year in which the amount
is apportioned. Not later than 30 days after the end of the 5-
year period, an amount that is not obligated at the end of that
period shall be added to the amount that may be apportioned
under this section in the next fiscal year.
``(h) Apportionments.--Of the amounts made available for
each fiscal year under section 5338(a)(2)(C)--
``(1) $30,000,000 shall be set aside to carry out
section 5307(h);
``(2) 3.07 percent shall be apportioned to
urbanized areas in accordance with subsection (j);
``(3) of amounts not apportioned under paragraphs
(1) and (2), 1.5 percent shall be apportioned to
urbanized areas with populations of less than 200,000
in accordance with subsection (i);
``(4) 0.5 percent shall be apportioned to eligible
States for State safety oversight program grants in
accordance with section 5329(e)(6); and
``(5) any amount not apportioned under paragraphs
(1), (2), (3), and (4) shall be apportioned to
urbanized areas in accordance with subsections (a)
through (c).
``(i) Small Transit Intensive Cities Formula.--
``(1) Definitions.--In this subsection, the
following definitions apply:
``(A) Eligible area.--The term `eligible
area' means an urbanized area with a population
of less than 200,000 that meets or exceeds in
one or more performance categories the industry
average for all urbanized areas with a
population of at least 200,000 but not more
than 999,999, as determined by the Secretary in
accordance with subsection (c)(2).
``(B) Performance category.--The term
`performance category' means each of the
following:
``(i) Passenger miles traveled per
vehicle revenue mile.
``(ii) Passenger miles traveled per
vehicle revenue hour.
``(iii) Vehicle revenue miles per
capita.
``(iv) Vehicle revenue hours per
capita.
``(v) Passenger miles traveled per
capita.
``(vi) Passengers per capita.
``(2) Apportionment.--
``(A) Apportionment formula.--The amount to
be apportioned under subsection (h)(3) shall be
apportioned among eligible areas in the ratio
that--
``(i) the number of performance
categories for which each eligible area
meets or exceeds the industry average
in urbanized areas with a population of
at least 200,000 but not more than
999,999; bears to
``(ii) the aggregate number of
performance categories for which all
eligible areas meet or exceed the
industry average in urbanized areas
with a population of at least 200,000
but not more than 999,999.
``(B) Data used in formula.--The Secretary
shall calculate apportionments under this
subsection for a fiscal year using data from
the national transit database used to calculate
apportionments for that fiscal year under this
section.
``(j) Apportionment Formula.--The amounts apportioned under
subsection (h)(2) shall be apportioned among urbanized areas as
follows:
``(1) 75 percent of the funds shall be apportioned
among designated recipients for urbanized areas with a
population of 200,000 or more in the ratio that--
``(A) the number of eligible low-income
individuals in each such urbanized area; bears
to
``(B) the number of eligible low-income
individuals in all such urbanized areas.
``(2) 25 percent of the funds shall be apportioned
among designated recipients for urbanized areas with a
population of less than 200,000 in the ratio that--
``(A) the number of eligible low-income
individuals in each such urbanized area; bears
to
``(B) the number of eligible low-income
individuals in all such urbanized areas.''.
SEC. 20027. STATE OF GOOD REPAIR GRANTS.
Section 5337 of title 49, United States Code, is amended to
read as follows:
``Sec. 5337. State of good repair grants
``(a) Definitions.--In this section, the following
definitions shall apply:
``(1) Fixed guideway.--The term `fixed guideway'
means a public transportation facility--
``(A) using and occupying a separate right-
of-way for the exclusive use of public
transportation;
``(B) using rail;
``(C) using a fixed catenary system;
``(D) for a passenger ferry system; or
``(E) for a bus rapid transit system.
``(2) State.--The term `State' means the 50 States,
the District of Columbia, and Puerto Rico.
``(3) State of good repair.--The term `state of
good repair' has the meaning given that term by the
Secretary, by rule, under section 5326(b).
``(4) Transit asset management plan.--The term
`transit asset management plan' means a plan developed
by a recipient of funding under this chapter that--
``(A) includes, at a minimum, capital asset
inventories and condition assessments, decision
support tools, and investment prioritization;
and
``(B) the recipient certifies that the
recipient complies with the rule issued under
section 5326(d).
``(b) General Authority.--
``(1) Eligible projects.--The Secretary may make
grants under this section to assist State and local
governmental authorities in financing capital projects
to maintain public transportation systems in a state of
good repair, including projects to replace and
rehabilitate--
``(A) rolling stock;
``(B) track;
``(C) line equipment and structures;
``(D) signals and communications;
``(E) power equipment and substations;
``(F) passenger stations and terminals;
``(G) security equipment and systems;
``(H) maintenance facilities and equipment;
``(I) operational support equipment,
including computer hardware and software;
``(J) development and implementation of a
transit asset management plan; and
``(K) other replacement and rehabilitation
projects the Secretary determines appropriate.
``(2) Inclusion in plan.--A recipient shall include
a project carried out under paragraph (1) in the
transit asset management plan of the recipient upon
completion of the plan.
``(c) High Intensity Fixed Guideway State of Good Repair
Formula.--
``(1) In general.--Of the amount authorized or made
available under section 5338(a)(2)(I), 97.15 percent
shall be apportioned to recipients in accordance with
this subsection.
``(2) Area share.--
``(A) In general.--50 percent of the amount
described in paragraph (1) shall be apportioned
for fixed guideway systems in accordance with
this paragraph.
``(B) Share.--A recipient shall receive an
amount equal to the amount described in
subparagraph (A), multiplied by the amount the
recipient would have received under this
section, as in effect for fiscal year 2011, if
the amount had been calculated in accordance
with section 5336(b)(1) and using the
definition of the term `fixed guideway' under
subsection (a) of this section, as such
sections are in effect on the day after the
date of enactment of the Federal Public
Transportation Act of 2012, and divided by the
total amount apportioned for all areas under
this section for fiscal year 2011.
``(C) Recipient.--For purposes of this
paragraph, the term `recipient' means an entity
that received funding under this section, as in
effect for fiscal year 2011.
``(3) Vehicle revenue miles and directional route
miles.--
``(A) In general.--50 percent of the amount
described in paragraph (1) shall be apportioned
to recipients in accordance with this
paragraph.
``(B) Vehicle revenue miles.--A recipient
in an urbanized area shall receive an amount
equal to 60 percent of the amount described in
subparagraph (A), multiplied by the number of
fixed guideway vehicle revenue miles
attributable to the urbanized area, as
established by the Secretary, divided by the
total number of all fixed guideway vehicle
revenue miles attributable to all urbanized
areas.
``(C) Directional route miles.--A recipient
in an urbanized area shall receive an amount
equal to 40 percent of the amount described in
subparagraph (A), multiplied by the number of
fixed guideway directional route miles
attributable to the urbanized area, as
established by the Secretary, divided by the
total number of all fixed guideway directional
route miles attributable to all urbanized
areas.
``(4) Limitation.--
``(A) In general.--Except as provided in
subparagraph (B), the share of the total amount
apportioned under this subsection that is
apportioned to an area under this subsection
shall not decrease by more than 0.25 percentage
points compared to the share apportioned to the
area under this subsection in the previous
fiscal year.
``(B) Special rule for fiscal year 2013.--
In fiscal year 2013, the share of the total
amount apportioned under this subsection that
is apportioned to an area under this subsection
shall not decrease by more than 0.25 percentage
points compared to the share that would have
been apportioned to the area under this
section, as in effect for fiscal year 2011, if
the share had been calculated using the
definition of the term `fixed guideway' under
subsection (a) of this section, as in effect on
the day after the date of enactment of the
Federal Public Transportation Act of 2012.
``(5) Use of funds.--Amounts made available under
this subsection shall be available for the exclusive
use of fixed guideway projects.
``(6) Receiving apportionment.--
``(A) In general.--Except as provided in
subparagraph (B), for an area with a fixed
guideway system, the amounts provided under
this subsection shall be apportioned to the
designated recipient for the urbanized area in
which the system operates.
``(B) Exception.--An area described in the
amendment made by section 3028(a) of the
Transportation Equity Act for the 21st Century
(Public Law 105-178; 112 Stat. 366) shall
receive an individual apportionment under this
subsection.
``(7) Apportionment requirements.--For purposes of
determining the number of fixed guideway vehicle
revenue miles or fixed guideway directional route miles
attributable to an urbanized area for a fiscal year
under this subsection, only segments of fixed guideway
systems placed in revenue service not later than 7
years before the first day of the fiscal year shall be
deemed to be attributable to an urbanized area.
``(d) High Intensity Motorbus State of Good Repair.--
``(1) Definition.--For purposes of this subsection,
the term `high intensity motorbus' means public
transportation that is provided on a facility with
access for other high-occupancy vehicles.
``(2) Apportionment.--Of the amount authorized or
made available under section 5338(a)(2)(I), 2.85
percent shall be apportioned to urbanized areas for
high intensity motorbus state of good repair in
accordance with this subsection.
``(3) Vehicle revenue miles and directional route
miles.--
``(A) In general.--The amount described in
paragraph (2) shall be apportioned to each area
in accordance with this paragraph.
``(B) Vehicle revenue miles.--Each area
shall receive an amount equal to 60 percent of
the amount described in subparagraph (A),
multiplied by the number of high intensity
motorbus vehicle revenue miles attributable to
the area, as established by the Secretary,
divided by the total number of all high
intensity motorbus vehicle revenue miles
attributable to all areas.
``(C) Directional route miles.--Each area
shall receive an amount equal to 40 percent of
the amount described in subparagraph (A),
multiplied by the number of high intensity
motorbus directional route miles attributable
to the area, as established by the Secretary,
divided by the total number of all high
intensity motorbus directional route miles
attributable to all areas.
``(4) Apportionment requirements.--For purposes of
determining the number of high intensity motorbus
vehicle revenue miles or high intensity motorbus
directional route miles attributable to an urbanized
area for a fiscal year under this subsection, only
segments of high intensity motorbus systems placed in
revenue service not later than 7 years before the first
day of the fiscal year shall be deemed to be
attributable to an urbanized area.''.
SEC. 20028. AUTHORIZATIONS.
Section 5338 of title 49, United States Code, is amended to
read as follows:
``Sec. 5338. Authorizations
``(a) Formula Grants.--
``(1) In general.--There shall be available from
the Mass Transit Account of the Highway Trust Fund to
carry out sections 5305, 5307, 5310, 5311, 5318,
5322(d), 5335, 5337, 5339, and 5340, and section
20005(b) of the Federal Public Transportation Act of
2012, $8,478,000,000 for fiscal year 2013 and
$8,595,000,000 for fiscal year 2014.
``(2) Allocation of funds.--Of the amounts made
available under paragraph (1)--
``(A) $126,900,000 for fiscal year 2013 and
$128,800,000 for fiscal year 2014 shall be
available to carry out section 5305;
``(B) $10,000,000 for each of fiscal years
2013 and 2014 shall be available to carry out
section 20005(b) of the Federal Public
Transportation Act of 2012;
``(C) $4,397,950,000 for fiscal year 2013
and $4,458,650,000 for fiscal year 2014 shall
be allocated in accordance with section 5336 to
provide financial assistance for urbanized
areas under section 5307;
``(D) $254,800,000 for fiscal year 2013 and
$258,300,000 for fiscal year 2014 shall be
available to provide financial assistance for
services for the enhanced mobility of seniors
and individuals with disabilities under section
5310;
``(E) $599,500,000 for fiscal year 2013 and
$607,800,000 for fiscal year 2014 shall be
available to provide financial assistance for
rural areas under section 5311, of which not
less than $30,000,000 for fiscal year 2013 and
$30,000,000 for fiscal year 2014 shall be
available to carry out section 5311(c)(1) and
$20,000,000 for fiscal year 2013 and
$20,000,000 for fiscal year 2014 shall be
available to carry out section 5311(c)(2);
``(F) $3,000,000 for each of fiscal years
2013 and 2014 shall be available for bus
testing under section 5318;
``(G) $5,000,000 for each of fiscal years
2013 and 2014 shall be available for the
national transit institute under section
5322(d);
``(H) $3,850,000 for each of fiscal years
2013 and 2014 shall be available to carry out
section 5335;
``(I) $2,136,300,000 for fiscal year 2013
and $2,165,900,000 for fiscal year 2014 shall
be available to carry out section 5337;
``(J) $422,000,000 for fiscal year 2013 and
$427,800,000 for fiscal year 2014 shall be
available for the bus and bus facilities
program under section 5339; and
``(K) $518,700,000 for fiscal year 2013 and
$525,900,000 for fiscal year 2014 shall be
allocated in accordance with section 5340 to
provide financial assistance for urbanized
areas under section 5307 and rural areas under
section 5311.
``(b) Research, Development Demonstration and Deployment
Projects.--There are authorized to be appropriated to carry out
section 5312, $70,000,000 for fiscal year 2013 and $70,000,000
for fiscal year 2014.
``(c) Transit Cooperative Research Program.--There are
authorized to be appropriated to carry out section 5313,
$7,000,000 for fiscal year 2013 and $7,000,000 for fiscal year
2014.
``(d) Technical Assistance and Standards Development.--
There are authorized to be appropriated to carry out section
5314, $7,000,000 for fiscal year 2013 and $7,000,000 for fiscal
year 2014.
``(e) Human Resources and Training.--There are authorized
to be appropriated to carry out subsections (a), (b), (c), and
(e) of section 5322, $5,000,000 for fiscal year 2013 and
$5,000,000 for fiscal year 2014.
``(f) Emergency Relief Program.--There are authorized to be
appropriated such sums as are necessary to carry out section
5324.
``(g) Capital Investment Grants.--There are authorized to
be appropriated to carry out section 5309, $1,907,000,000 for
fiscal year 2013 and $1,907,000,000 for fiscal year 2014.
``(h) Administration.--
``(1) In general.--There are authorized to be
appropriated to carry out section 5334, $104,000,000
for fiscal year 2013 and $104,000,000 for fiscal year
2014.
``(2) Section 5329.--Of the amounts authorized to
be appropriated under paragraph (1), not less than
$5,000,000 shall be available to carry out section
5329.
``(3) Section 5326.--Of the amounts made available
under paragraph (2), not less than $1,000,000 shall be
available to carry out section 5326.
``(i) Oversight.--
``(1) In general.--Of the amounts made available to
carry out this chapter for a fiscal year, the Secretary
may use not more than the following amounts for the
activities described in paragraph (2):
``(A) 0.5 percent of amounts made available
to carry out section 5305.
``(B) 0.75 percent of amounts made
available to carry out section 5307.
``(C) 1 percent of amounts made available
to carry out section 5309.
``(D) 1 percent of amounts made available
to carry out section 601 of the Passenger Rail
Investment and Improvement Act of 2008 (Public
Law 110-432; 126 Stat. 4968).
``(E) 0.5 percent of amounts made available
to carry out section 5310.
``(F) 0.5 percent of amounts made available
to carry out section 5311.
``(G) 0.75 percent of amounts made
available to carry out section 5337(c).
``(2) Activities.--The activities described in this
paragraph are as follows:
``(A) Activities to oversee the
construction of a major capital project.
``(B) Activities to review and audit the
safety and security, procurement, management,
and financial compliance of a recipient or
subrecipient of funds under this chapter.
``(C) Activities to provide technical
assistance generally, and to provide technical
assistance to correct deficiencies identified
in compliance reviews and audits carried out
under this section.
``(3) Government share of costs.--The Government
shall pay the entire cost of carrying out a contract
under this subsection.
``(4) Availability of certain funds.--Funds made
available under paragraph (1)(C) shall be made
available to the Secretary before allocating the funds
appropriated to carry out any project under a full
funding grant agreement.
``(j) Grants as Contractual Obligations.--
``(1) Grants financed from highway trust fund.--A
grant or contract that is approved by the Secretary and
financed with amounts made available from the Mass
Transit Account of the Highway Trust Fund pursuant to
this section is a contractual obligation of the
Government to pay the Government share of the cost of
the project.
``(2) Grants financed from general fund.--A grant
or contract that is approved by the Secretary and
financed with amounts appropriated in advance from the
General Fund of the Treasury pursuant to this section
is a contractual obligation of the Government to pay
the Government share of the cost of the project only to
the extent that amounts are appropriated for such
purpose by an Act of Congress.
``(k) Availability of Amounts.--Amounts made available by
or appropriated under this section shall remain available until
expended.''.
SEC. 20029. BUS AND BUS FACILITIES FORMULA GRANTS.
(a) In General.--Section 5339 of title 49, United States
Code, is amended to read as follows:
``Sec. 5339. Bus and bus facilities formula grants
``(a) General Authority.--The Secretary may make grants
under this section to assist eligible recipients described in
subsection (c)(1) in financing capital projects--
``(1) to replace, rehabilitate, and purchase buses
and related equipment; and
``(2) to construct bus-related facilities.
``(b) Grant Requirements.--The requirements of section 5307
apply to recipients of grants made under this section.
``(c) Eligible Recipients and Subrecipients.--
``(1) Recipients.--Eligible recipients under this
section are designated recipients that operate fixed
route bus service or that allocate funding to fixed
route bus operators.
``(2) Subrecipients.--A designated recipient that
receives a grant under this section may allocate
amounts of the grant to subrecipients that are public
agencies or private nonprofit organizations engaged in
public transportation.
``(d) Distribution of Grant Funds.--Funds allocated under
section 5338(a)(2)(J) shall be distributed as follows:
``(1) National distribution.--$65,500,000 shall be
allocated to all States and territories, with each
State receiving $1,250,000 and each territory receiving
$500,000.
``(2) Distribution using population and service
factors.--The remainder of the funds not otherwise
distributed under paragraph (1) shall be allocated
pursuant to the formula set forth in section 5336 other
than subsection (b).
``(e) Transfers of Apportionments.--
``(1) Transfer flexibility for national
distribution funds.--The Governor of a State may
transfer any part of the State's apportionment under
subsection (d)(1) to supplement amounts apportioned to
the State under section 5311(c) of this title or
amounts apportioned to urbanized areas under
subsections (a) and (c) of section 5336 of this title.
``(2) Transfer flexibility for population and
service factors funds.--The Governor of a State may
expend in an urbanized area with a population of less
than 200,000 any amounts apportioned under subsection
(d)(2) that are not allocated to designated recipients
in urbanized areas with a population of 200,000 or
more.
``(f) Government's Share of Costs.--
``(1) Capital projects.--A grant for a capital
project under this section shall be for 80 percent of
the net capital costs of the project. A recipient of a
grant under this section may provide additional local
matching amounts.
``(2) Remaining costs.--The remainder of the net
project cost shall be provided--
``(A) in cash from non-Government sources
other than revenues from providing public
transportation services;
``(B) from revenues derived from the sale
of advertising and concessions;
``(C) from an undistributed cash surplus, a
replacement or depreciation cash fund or
reserve, or new capital; or
``(D) from amounts received under a service
agreement with a State or local social service
agency or private social service organization.
``(g) Period of Availability to Recipients.--Amounts made
available under this section may be obligated by a recipient
for 3 years after the fiscal year in which the amount is
apportioned. Not later than 30 days after the end of the 3-year
period described in the preceding sentence, any amount that is
not obligated on the last day of that period shall be added to
the amount that may be apportioned under this section in the
next fiscal year.
``(h) Definitions.--For purposes of this section:
``(1) The term `State' means a State of the United
States.
``(2) The term `territory' means the District of
Columbia, Puerto Rico, the Northern Mariana Islands,
Guam, American Samoa, and the United States Virgin
Islands.''.
SEC. 20030. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 5305.--Section 5305 of title 49, United States
Code, is amended--
(1) in subsection (e)(1)(A), by striking ``sections
5304, 5306, 5315, and 5322'' and inserting ``section
5304 and 5306'';
(2) in subsection (f)--
(A) in the heading, by striking
``Government's'' and inserting ``Government'';
and
(B) by striking ``Government's'' and
inserting ``Government''; and
(3) in subsection (g), by striking ``section
5338(c) for fiscal years 2005 through 2012'' and
inserting ``section 5338(a)(2)(A) for a fiscal year''.
(b) Section 5313.--Section 5313(a) of title 49, United
States Code, is amended--
(1) in the first sentence, by striking
``subsections (a)(5)(C)(iii) and (d)(1) of section
5338'' and inserting section ``5338(c)''; and
(2) in the second sentence, by striking ``of
Transportation''.
(c) Section 5319.--Section 5319 of title 49, United States
Code, is amended, in the second sentence--
(1) by striking ``sections 5307(e), 5309(h), and
5311(g) of this title'' and inserting ``sections
5307(d), 5309(l), and 5311(g)''; and
(2) by striking ``of the United States'' and
inserting ``made by the''.
(d) Section 5325.--Section 5325(b)(2)(A) of title 49,
United States Code, is amended by striking ``title 48, Code of
Federal Regulations (commonly known as the Federal Acquisition
Regulation)'' and inserting ``the Federal Acquisition
Regulation, or any successor thereto''.
(e) Section 5330.--Effective 3 years after the effective
date of the final rules issued by the Secretary of
Transportation under section 5329(e) of title 49, United States
Code, as amended by this division, section 5330 of title 49,
United States Code, is repealed.
(f) Section 5331.--Section 5331 of title 49, United States
Code, is amended by striking ``Secretary of Transportation''
each place that term appears and inserting ``Secretary''.
(g) Section 5332.--Section 5332(c)(1) of title 49, United
States Code, is amended by striking ``of Transportation''.
(h) Section 5333.--Section 5333(a) of title 49, United
States Code, is amended by striking ``sections 3141-3144'' and
inserting ``sections 3141 through 3144''.
(i) Section 5334.--Section 5334 of title 49, United States
Code, is amended--
(1) in subsection (c)--
(A) by striking ``Secretary of
Transportation'' each place that term appears
and inserting ``Secretary''; and
(B) in paragraph (1), by striking
``Committees on Transportation and
Infrastructure and Appropriations of the House
of Representatives and the Committees on
Banking, Housing, and Urban Affairs and
Appropriations of the Senate'' and inserting
``Committee on Banking, Housing, and Urban
Affairs and the Committee on Appropriations of
the Senate and the Committee on Transportation
and Infrastructure and the Committee on
Appropriations of the House of
Representatives'';
(2) in subsection (d), by striking ``of
Transportation'';
(3) in subsection (e), by striking ``of
Transportation'';
(4) in subsection (f), by striking ``of
Transportation'';
(5) in subsection (g), in the matter preceding
paragraph (1)--
(A) by striking ``of Transportation''; and
(B) by striking ``subsection (a)(3) or (4)
of this section'' and inserting ``paragraph (3)
or (4) of subsection (a)'';
(6) in subsection (h)--
(A) in paragraph (1), in the matter
preceding subparagraph (A), by striking ``of
Transportation''; and
(B) in paragraph (2), by striking ``of this
section'';
(7) in subsection (i)(1), by striking ``of
Transportation''; and
(8) in subsection (j), as so redesignated by
section 20025 of this division, by striking
``Committees on Banking, Housing, and Urban Affairs and
Appropriations of the Senate and Committees on
Transportation and Infrastructure and Appropriations of
the House of Representatives'' and inserting
``Committee on Banking, Housing, and Urban Affairs and
the Committee on Appropriations of the Senate and the
Committee on Transportation and Infrastructure and the
Committee on Appropriations of the House of
Representatives''.
(j) Section 5335.--Section 5335(a) of title 49, United
States Code, is amended by striking ``of Transportation''.
(k) Analysis.--The analysis for chapter 53 of title 49,
United States Code, is amended to read as follows:
``Sec.
``5301. Policies and purposes.
``5302. Definitions.
``5303. Metropolitan transportation planning.
``5304. Statewide and nonmetropolitan transportation planning.
``5305. Planning programs.
``5306. Private enterprise participation in metropolitan planning and
transportation improvement programs and relationship to other
limitations.
``5307. Urbanized area formula grants.
``[5308. Repealed.]
``5309. Fixed guideway capital investment grants.
``5310. Formula grants for the enhanced mobility of seniors and
individuals with disabilities.
``5311. Formula grants for rural areas.
``5312. Research, development, demonstration, and deployment projects.
``5313. Transit cooperative research program.
``5314. Technical assistance and standards development.
``5315. Private sector participation.
``[5316. Repealed.]
``[5317. Repealed.]
``5318. Bus testing facility.
``5319. Bicycle facilities.
``[5320. Repealed.]
``5321. Crime prevention and security.
``5322. Human resources and training.
``5323. General provisions.
``5324. Public transportation emergency relief program.
``5325. Contract requirements.
``5326. Transit asset management.
``5327. Project management oversight.
``[5328. Repealed.]
``5329. Public transportation safety program.
``5330. State safety oversight.
``5331. Alcohol and controlled substances testing.
``5332. Nondiscrimination.
``5333. Labor standards.
``5334. Administrative provisions.
``5335. National transit database.
``5336. Apportionment of appropriations for formula grants.
``5337. State of good repair grants.
``5338. Authorizations.
``5339. Bus and bus facilities formula grants.
``5340. Apportionments based on growing States and high density States
formula factors.''.
DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY
TITLE I--MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012
SEC. 31001. SHORT TITLE.
This title may be cited as the ``Motor Vehicle and Highway
Safety Improvement Act of 2012'' or ``Mariah's Act''.
SEC. 31002. DEFINITION.
In this title, the term ``Secretary'' means the Secretary
of Transportation.
Subtitle A--Highway Safety
SEC. 31101. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass
Transit Account):
(1) Highway safety programs.--For carrying out
section 402 of title 23, United States Code--
(A) $235,000,000 for fiscal year 2013; and
(B) $235,000,000 for fiscal year 2014.
(2) Highway safety research and development.--For
carrying out section 403 of title 23, United States
Code--
(A) $110,500,000 for fiscal year 2013; and
(B) $113,500,000 for fiscal year 2014.
(3) National priority safety programs.--For
carrying out section 405 of title 23, United States
Code--
(A) $265,000,000 for fiscal year 2013; and
(B) $272,000,000 for fiscal year 2014.
(4) National driver register.--For the National
Highway Traffic Safety Administration to carry out
chapter 303 of title 49, United States Code--
(A) $5,000,000 for fiscal year 2013; and
(B) $5,000,000 for fiscal year 2014.
(5) High visibility enforcement program.--For
carrying out section 2009 of SAFETEA-LU (23 U.S.C. 402
note)--
(A) $29,000,000 for fiscal year 2013; and
(B) $29,000,000 for fiscal year 2014.
(6) Administrative expenses.--For administrative
and related operating expenses of the National Highway
Traffic Safety Administration in carrying out chapter 4
of title 23, United States Code, and this subtitle--
(A) $25,500,000 for fiscal year 2013; and
(B) $25,500,000 for fiscal year 2014.
(b) Prohibition on Other Uses.--Except as otherwise
provided in chapter 4 of title 23, United States Code, in this
subtitle, and in the amendments made by this subtitle, the
amounts made available from the Highway Trust Fund (other than
the Mass Transit Account) for a program under such chapter--
(1) shall only be used to carry out such program;
and
(2) may not be used by States or local governments
for construction purposes.
(c) Applicability of Title 23.--Except as otherwise
provided in chapter 4 of title 23, United States Code, and in
this subtitle, amounts made available under subsection (a) for
fiscal years 2013 and 2014 shall be available for obligation in
the same manner as if such funds were apportioned under chapter
1 of title 23, United States Code.
(d) Regulatory Authority.--Grants awarded under this
subtitle shall be in accordance with regulations issued by the
Secretary.
(e) State Matching Requirements.--If a grant awarded under
this subtitle requires a State to share in the cost, the
aggregate of all expenditures for highway safety activities
made during any fiscal year by the State and its political
subdivisions (exclusive of Federal funds) for carrying out the
grant (other than planning and administration) shall be
available for the purpose of crediting the State during such
fiscal year for the non-Federal share of the cost of any
project under this subtitle (other than planning or
administration) without regard to whether such expenditures
were actually made in connection with such project.
(f) Grant Application and Deadline.--To receive a grant
under this subtitle, a State shall submit an application, and
the Secretary shall establish a single deadline for such
applications to enable the award of grants early in the next
fiscal year.
SEC. 31102. HIGHWAY SAFETY PROGRAMS.
(a) Programs Included.--Section 402(a) of title 23, United
States Code, is amended to read as follows:
``(a) Program Required.--
``(1) In general.--Each State shall have a highway
safety program, approved by the Secretary, that is
designed to reduce traffic accidents and the resulting
deaths, injuries, and property damage.
``(2) Uniform guidelines.--Programs required under
paragraph (1) shall comply with uniform guidelines,
promulgated by the Secretary and expressed in terms of
performance criteria, that--
``(A) include programs--
``(i) to reduce injuries and deaths
resulting from motor vehicles being
driven in excess of posted speed
limits;
``(ii) to encourage the proper use
of occupant protection devices
(including the use of safety belts and
child restraint systems) by occupants
of motor vehicles;
``(iii) to reduce injuries and
deaths resulting from persons driving
motor vehicles while impaired by
alcohol or a controlled substance;
``(iv) to prevent accidents and
reduce injuries and deaths resulting
from accidents involving motor vehicles
and motorcycles;
``(v) to reduce injuries and deaths
resulting from accidents involving
school buses;
``(vi) to reduce accidents
resulting from unsafe driving behavior
(including aggressive or fatigued
driving and distracted driving arising
from the use of electronic devices in
vehicles); and
``(vii) to improve law enforcement
services in motor vehicle accident
prevention, traffic supervision, and
post-accident procedures;
``(B) improve driver performance,
including--
``(i) driver education;
``(ii) driver testing to determine
proficiency to operate motor vehicles;
and
``(iii) driver examinations
(physical, mental, and driver
licensing);
``(C) improve pedestrian performance and
bicycle safety;
``(D) include provisions for--
``(i) an effective record system of
accidents (including resulting injuries
and deaths);
``(ii) accident investigations to
determine the probable causes of
accidents, injuries, and deaths;
``(iii) vehicle registration,
operation, and inspection; and
``(iv) emergency services; and
``(E) to the extent determined appropriate
by the Secretary, are applicable to federally
administered areas where a Federal department
or agency controls the highways or supervises
traffic operations.''.
(b) Administration of State Programs.--Section 402(b) of
title 23, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking
``and'' at the end;
(B) by redesignating subparagraph (E) as
subparagraph (F);
(C) by inserting after subparagraph (D) the
following:
``(E) beginning on the first day of the
first fiscal year after the date of enactment
of the Motor Vehicle and Highway Safety
Improvement Act of 2012 in which a State
submits its highway safety plan under
subsection (f), provide for a data-driven
traffic safety enforcement program to prevent
traffic violations, crashes, and crash
fatalities and injuries in areas most at risk
for such incidents, to the satisfaction of the
Secretary;''; and
(D) in subparagraph (F), as redesignated--
(i) in clause (i), by inserting
``and high-visibility law enforcement
mobilizations coordinated by the
Secretary'' after ``mobilizations'';
(ii) in clause (iii), by striking
``and'' at the end;
(iii) in clause (iv), by striking
the period at the end and inserting ``;
and''; and
(iv) by adding at the end the
following:
``(v) ensuring that the State will
coordinate its highway safety plan,
data collection, and information
systems with the State strategic
highway safety plan (as defined in
section 148(a)).''; and
(2) by striking paragraph (3).
(c) Approved Highway Safety Programs.--Section 402(c) of
title 23, United States Code, is amended--
(1) by striking ``(c) Funds authorized'' and
inserting the following:
``(c) Use of Funds.--
``(1) In general.--Funds authorized'';
(2) by striking ``Such funds'' and inserting the
following:
``(2) Apportionment.--Except for amounts identified
in section 403(f), funds described in paragraph (1)'';
(3) by striking ``The Secretary shall not'' and all
that follows through ``subsection, a highway safety
program'' and inserting ``A highway safety program'';
(4) by inserting ``A State may use the funds
apportioned under this section, in cooperation with
neighboring States, for highway safety programs or
related projects that may confer benefits on such
neighboring States.'' after ``in every State.'';
(5) by striking ``50 per centum'' and inserting
``20 percent''; and
(6) by striking ``The Secretary shall promptly''
and all that follows and inserting the following:
``(3) Reapportionment.--The Secretary shall
promptly apportion the funds withheld from a State's
apportionment to the State if the Secretary approves
the State's highway safety program or determines that
the State has begun implementing an approved program,
as appropriate, not later than July 31st of the fiscal
year for which the funds were withheld. If the
Secretary determines that the State did not correct its
failure within such period, the Secretary shall
reapportion the withheld funds to the other States in
accordance with the formula specified in paragraph (2)
not later than the last day of the fiscal year.
``(4) Automated traffic enforcement systems.--
``(A) Prohibition.--A State may not expend
funds apportioned to that State under this
section to carry out a program to purchase,
operate, or maintain an automated traffic
enforcement system.
``(B) Automated traffic enforcement system
defined.--In this paragraph, the term
`automated traffic enforcement system' means
any camera which captures an image of a vehicle
for the purposes only of red light and speed
enforcement, and does not include hand held
radar and other devices operated by law
enforcement officers to make an on-the-scene
traffic stop, issue a traffic citation, or
other enforcement action at the time of the
violation.''.
(d) Use of Highway Safety Program Funds.--Section 402(g) of
title 23, United States Code, is amended to read as follows:
``(g) Savings Provision.--
``(1) In general.--Except as provided under
paragraph (2), nothing in this section may be construed
to authorize the appropriation or expenditure of funds
for--
``(A) highway construction, maintenance, or
design (other than design of safety features of
highways to be incorporated into guidelines);
or
``(B) any purpose for which funds are
authorized under section 403.
``(2) Demonstration projects.--A State may use
funds made available to carry out this section to
assist in demonstration projects carried out by the
Secretary under section 403.''.
(e) In General.--Section 402 of title 23, United States
Code, is amended--
(1) by striking subsections (k) and (m);
(2) by redesignating subsections (i) and (j) as
subsections (h) and (i), respectively; and
(3) by redesignating subsection (l) as subsection
(j).
(f) Highway Safety Plan and Reporting Requirements.--
Section 402 of title 23, United States Code, as amended by this
section, is further amended by adding at the end the following:
``(k) Highway Safety Plan and Reporting Requirements.--
``(1) In general.--With respect to fiscal year
2014, and each fiscal year thereafter, the Secretary
shall require each State, as a condition of the
approval of the State's highway safety program for that
fiscal year, to develop and submit to the Secretary for
approval a highway safety plan that complies with the
requirements under this subsection.
``(2) Timing.--Each State shall submit to the
Secretary the highway safety plan not later than July
1st of the fiscal year preceding the fiscal year to
which the plan applies.
``(3) Contents.--State highway safety plans
submitted under paragraph (1) shall include--
``(A) performance measures required by the
Secretary or otherwise necessary to support
additional State safety goals, including--
``(i) documentation of current
safety levels for each performance
measure;
``(ii) quantifiable annual
performance targets for each
performance measure; and
``(iii) a justification for each
performance target, that explains why
each target is appropriate and
evidence-based;
``(B) a strategy for programming funds
apportioned to the State under this section on
projects and activities that will allow the
State to meet the performance targets described
in subparagraph (A);
``(C) data and data analysis supporting the
effectiveness of proposed countermeasures;
``(D) a description of any Federal, State,
local, or private funds that the State plans to
use, in addition to funds apportioned to the
State under this section, to carry out the
strategy described in subparagraph (B);
``(E) for the fiscal year preceding the
fiscal year to which the plan applies, a report
on the State's success in meeting State safety
goals and performance targets set forth in the
previous year's highway safety plan; and
``(F) an application for any additional
grants available to the State under this
chapter.
``(4) Performance measures.--For the first highway
safety plan submitted under this subsection, the
performance measures required by the Secretary under
paragraph (2)(A) shall be limited to those developed by
the National Highway Traffic Safety Administration and
the Governor's Highway Safety Association and described
in the report, `Traffic Safety Performance Measures for
States and Federal Agencies' (DOT HS 811 025). For
subsequent highway safety plans, the Secretary shall
coordinate with the Governor's Highway Safety
Association in making revisions to the set of required
performance measures.
``(5) Review of highway safety plans.--
``(A) In general.--Not later than 60 days
after the date on which a State's highway
safety plan is received by the Secretary, the
Secretary shall review and approve or
disapprove the plan.
``(B) Approvals and disapprovals.--
``(i) Approvals.--The Secretary
shall approve a State's highway safety
plan if the Secretary determines that--
``(I) the plan and the
performance targets contained
in the plan are evidence-based
and supported by data; and
``(II) the plan, once
implemented, will allow the
State to meet the State's
performance targets.
``(ii) Disapprovals.--The Secretary
shall disapprove a State's highway
safety plan if the Secretary determines
that--
``(I) the plan and the
performance targets contained
in the plan are not evidence-
based or supported by data; or
``(II) the plan does not
provide for programming of
funding in a manner sufficient
to allow the State to meet the
State's performance targets.
``(C) Actions upon disapproval.--If the
Secretary disapproves a State's highway safety
plan, the Secretary shall--
``(i) inform the State of the
reasons for such disapproval; and
``(ii) require the State to
resubmit the plan with any
modifications that the Secretary
determines to be necessary.
``(D) Review of resubmitted plans.--If the
Secretary requires a State to resubmit a
highway safety plan, with modifications, the
Secretary shall review and approve or
disapprove the modified plan not later than 30
days after the date on which the Secretary
receives such plan.
``(E) Public notice.--A State shall make
the State's highway safety plan, and decisions
of the Secretary concerning approval or
disapproval of a revised plan, available to the
public.''.
(g) Teen Traffic Safety Program.--Section 402 of title 23,
United States Code, as amended by this section, is further
amended by adding at the end the following:
``(m) Teen Traffic Safety.--
``(1) In general.--Subject to the requirements of a
State's highway safety plan, as approved by the
Secretary under subsection (k), a State may use a
portion of the amounts received under this section to
implement statewide efforts to improve traffic safety
for teen drivers.
``(2) Use of funds.--Statewide efforts under
paragraph (1)--
``(A) shall include peer-to-peer education
and prevention strategies in schools and
communities designed to--
``(i) increase safety belt use;
``(ii) reduce speeding;
``(iii) reduce impaired and
distracted driving;
``(iv) reduce underage drinking;
and
``(v) reduce other behaviors by
teen drivers that lead to injuries and
fatalities; and
``(B) may include--
``(i) working with student-led
groups and school advisors to plan and
implement teen traffic safety programs;
``(ii) providing subgrants to
schools throughout the State to support
the establishment and expansion of
student groups focused on teen traffic
safety;
``(iii) providing support,
training, and technical assistance to
establish and expand school and
community safety programs for teen
drivers;
``(iv) creating statewide or
regional websites to publicize and
circulate information on teen safety
programs;
``(v) conducting outreach and
providing educational resources for
parents;
``(vi) establishing State or
regional advisory councils comprised of
teen drivers to provide input and
recommendations to the governor and the
governor's safety representative on
issues related to the safety of teen
drivers;
``(vii) collaborating with law
enforcement; and
``(viii) establishing partnerships
and promoting coordination among
community stakeholders, including
public, not-for-profit, and for profit
entities.''.
(h) Biennial Report to Congress.--Section 402 of title 23,
United States Code, as amended by this section, is further
amended by adding at the end the following:
``(n) Biennial Report to Congress.--Not later than October
1, 2015, and biennially thereafter, the Secretary shall submit
a report to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate that contains--
``(1) an evaluation of each State's performance
with respect to the State's highway safety plan under
subsection (k) and performance targets set by the
States in such plans; and
``(2) such recommendations as the Secretary may
have for improvements to activities carried out under
subsection (k).''.
SEC. 31103. HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.
Section 403 of title 23, United States Code, is amended--
(1) by striking subsections (a) through (f) and
inserting the following:
``(a) Defined Term.--In this section, the term `Federal
laboratory' includes--
``(1) a government-owned, government-operated
laboratory; and
``(2) a government-owned, contractor-operated
laboratory.
``(b) General Authority.--
``(1) Research and development activities.--The
Secretary may conduct research and development
activities, including demonstration projects and the
collection and analysis of highway and motor vehicle
safety data and related information needed to carry out
this section, with respect to--
``(A) all aspects of highway and traffic
safety systems and conditions relating to--
``(i) vehicle, highway, driver,
passenger, motorcyclist, bicyclist, and
pedestrian characteristics;
``(ii) accident causation and
investigations;
``(iii) communications; and
``(iv) emergency medical services,
including the transportation of the
injured;
``(B) human behavioral factors and their
effect on highway and traffic safety,
including--
``(i) driver education;
``(ii) impaired driving; and
``(iii) distracted driving;
``(C) an evaluation of the effectiveness of
countermeasures to increase highway and traffic
safety, including occupant protection and
alcohol- and drug-impaired driving technologies
and initiatives;
``(D) the development of technologies to
detect drug impaired drivers;
``(E) research on, evaluations of, and
identification of best practices related to
driver education programs (including driver
education curricula, instructor training and
certification, program administration, and
delivery mechanisms) and make recommendations
for harmonizing driver education and multistage
graduated licensing systems; and
``(F) the effect of State laws on any
aspects, activities, or programs described in
subparagraphs (A) through (E).
``(2) Cooperation, grants, and contracts.--The
Secretary may carry out this section--
``(A) independently;
``(B) in cooperation with other Federal
departments, agencies, and instrumentalities
and Federal laboratories;
``(C) by entering into contracts,
cooperative agreements, and other transactions
with the National Academy of Sciences, any
Federal laboratory, State or local agency,
authority, association, institution, or person
(as defined in chapter 1 of title 1); or
``(D) by making grants to the National
Academy of Sciences, any Federal laboratory,
State or local agency, authority, association,
institution, or person (as defined in chapter 1
of title 1).
``(c) Collaborative Research and Development.--
``(1) In general.--To encourage innovative
solutions to highway safety problems, stimulate
voluntary improvements in highway safety, and stimulate
the marketing of new highway safety related technology
by private industry, the Secretary is authorized to
carry out, on a cost-shared basis, collaborative
research and development with--
``(A) non-Federal entities, including State
and local governments, colleges, universities,
corporations, partnerships, sole
proprietorships, organizations, and trade
associations that are incorporated or
established under the laws of any State or the
United States; and
``(B) Federal laboratories.
``(2) Agreements.--In carrying out this subsection,
the Secretary may enter into cooperative research and
development agreements (as defined in section 12 of the
Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3710a)) in which the Secretary provides not more
than 50 percent of the cost of any research or
development project under this subsection.
``(3) Use of technology.--The research,
development, or use of any technology pursuant to an
agreement under this subsection, including the terms
under which technology may be licensed and the
resulting royalties may be distributed, shall be
subject to the provisions of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3701 et
seq.).
``(d) Title to Equipment.--In furtherance of the purposes
set forth in section 402, the Secretary may vest title to
equipment purchased for demonstration projects with funds
authorized under this section to State or local agencies on
such terms and conditions as the Secretary determines to be
appropriate.
``(e) Prohibition on Certain Disclosures.--Any report of
the National Highway Traffic Safety Administration, or of any
officer, employee, or contractor of the National Highway
Traffic Safety Administration, relating to any highway traffic
accident or the investigation of such accident conducted
pursuant to this chapter or chapter 301 may only be made
available to the public in a manner that does not identify
individuals.
``(f) Cooperative Research and Evaluation.--
``(1) Establishment and funding.--Notwithstanding
the apportionment formula set forth in section
402(c)(2), $2,500,000 of the total amount available for
apportionment to the States for highway safety programs
under subsection 402(c) in each fiscal year shall be
available for expenditure by the Secretary, acting
through the Administrator of the National Highway
Traffic Safety Administration, for a cooperative
research and evaluation program to research and
evaluate priority highway safety countermeasures.
``(2) Administration.--The program established
under paragraph (1)--
``(A) shall be administered by the
Administrator of the National Highway Traffic
Safety Administration; and
``(B) shall be jointly managed by the
Governors Highway Safety Association and the
National Highway Traffic Safety
Administration.''; and
(2) by adding at the end the following:
``(h) In-vehicle Alcohol Detection Device Research.--
``(1) In general.--The Administrator of the
National Highway Traffic Safety Administration may
carry out a collaborative research effort under chapter
301 of title 49 on in-vehicle technology to prevent
alcohol-impaired driving.
``(2) Funding.--Funds provided under section 405
may be made to be used by the Secretary to conduct the
research described in paragraph (1).
``(3) Privacy protection.--If the Administrator
utilizes the authority under paragraph (1), the
Administrator shall not develop requirements for any
device or means of technology to be installed in an
automobile intended for retail sale that records a
driver's blood alcohol concentration.
``(4) Reports.--If the Administrator conducts the
research authorized under paragraph (1), the
Administrator shall submit an annual report to the
Committee on Commerce, Science, and Transportation of
the Senate, the Committee on Transportation and
Infrastructure of the House of Representatives, and
Committee on Science, Space, and Technology of the
House of Representatives that--
``(A) describes the progress made in
carrying out the collaborative research effort;
and
``(B) includes an accounting for the use of
Federal funds obligated or expended in carrying
out that effort.
``(5) Definitions.--In this subsection:
``(A) Alcohol-impaired driving.--The term
`alcohol-impaired driving' means the operation
of a motor vehicle (as defined in section
30102(a)(6) of title 49) by an individual whose
blood alcohol content is at or above the legal
limit.
``(B) Legal limit.--The term `legal limit'
means a blood alcohol concentration of 0.08
percent or greater (as set forth in section
163(a)) or such other percentage limitation as
may be established by applicable Federal,
State, or local law.''.
SEC. 31104. NATIONAL DRIVER REGISTER.
Section 30302(b) of title 49, United States Code, is
amended by adding at the end the following: ``The Secretary
shall make continual improvements to modernize the Register's
data processing system.''.
SEC. 31105. NATIONAL PRIORITY SAFETY PROGRAMS.
(a) In General.--Section 405 of title 23, United States
Code, is amended to read as follows:
``Sec. 405. National priority safety programs
``(a) General Authority.--Subject to the requirements of
this section, the Secretary of Transportation shall manage
programs to address national priorities for reducing highway
deaths and injuries. Funds shall be allocated according to the
priorities set forth in paragraphs (1) and (2).
``(1) Grants to states.--
``(A) Occupant protection.--16 percent of
the funds provided under this section in each
fiscal year shall be allocated among States
that adopt and implement effective occupant
protection programs to reduce highway deaths
and injuries resulting from individuals riding
unrestrained or improperly restrained in motor
vehicles (as described in subsection (b)).
``(B) State traffic safety information
system improvements.--14.5 percent of the funds
provided under this section in each fiscal year
shall be allocated among States that meet the
requirements of the State traffic safety
information system improvements (as described
in subsection (c)).
``(C) Impaired driving countermeasures.--
52.5 percent of the funds provided under this
section in each fiscal year shall be allocated
among States that meet the requirements of the
impaired driving countermeasures (as described
in subsection (d)).
``(D) Distracted driving.--8.5 percent of
the funds provided under this section in each
fiscal year shall be allocated among States
that adopt and implement effective laws to
reduce distracted driving (as described in
subsection (e)).
``(E) Motorcyclist safety.--1.5 percent of
the funds provided under this section in each
fiscal year shall be allocated among States
that implement motorcyclist safety programs (as
described in subsection (f)).
``(F) State graduated driver licensing
laws.--5 percent of the funds provided under
this section in each fiscal year shall be
allocated among States that adopt and implement
graduated driver licensing laws (as described
in subsection (g)).
``(G) Transfers.--Notwithstanding
subparagraphs (A) through (F), the Secretary
may reallocate, before the last day of any
fiscal year, any amounts remaining available to
carry out any of the activities described in
subsections (b) through (g) to increase the
amount made available to carry out any of the
other activities described in such subsections,
or the amount made available under section 402,
in order to ensure, to the maximum extent
possible, that all such amounts are obligated
during such fiscal year.
``(H) Maintenance of effort.--
``(i) Requirements.--No grant may
be made to a State in any fiscal year
under subsection (b), (c), or (d)
unless the State enters into such
agreements with the Secretary as the
Secretary may require to ensure that
the State will maintain its aggregate
expenditures from all State and local
sources for programs described in those
sections at or above the average level
of such expenditures in its 2 fiscal
years preceding the date of enactment
of the Motor Vehicle and Highway Safety
Improvement Act of 2012.
``(ii) Waiver.--Upon the request of
a State, the Secretary may waive or
modify the requirements under clause
(i) for not more than 1 fiscal year if
the Secretary determines that such a
waiver would be equitable due to
exceptional or uncontrollable
circumstances.
``(2) Other priority programs.--Funds provided
under this section in each fiscal year may be used for
research into technology to prevent alcohol-impaired
driving (as described in subsection 403(h)).
``(b) Occupant Protection Grants.--
``(1) General authority.--Subject to the
requirements under this subsection, the Secretary of
Transportation shall award grants to States that adopt
and implement effective occupant protection programs to
reduce highway deaths and injuries resulting from
individuals riding unrestrained or improperly
restrained in motor vehicles.
``(2) Federal share.--The Federal share of the
costs of activities funded using amounts from grants
awarded under this subsection may not exceed 80 percent
for each fiscal year for which a State receives a
grant.
``(3) Eligibility.--
``(A) High seat belt use rate.--A State
with an observed seat belt use rate of 90
percent or higher, based on the most recent
data from a survey that conforms with national
criteria established by the National Highway
Traffic Safety Administration, shall be
eligible for a grant in a fiscal year if the
State--
``(i) submits an occupant
protection plan during the first fiscal
year;
``(ii) participates in the Click It
or Ticket national mobilization;
``(iii) has an active network of
child restraint inspection stations;
and
``(iv) has a plan to recruit,
train, and maintain a sufficient number
of child passenger safety technicians.
``(B) Lower seat belt use rate.--A State
with an observed seat belt use rate below 90
percent, based on the most recent data from a
survey that conforms with national criteria
established by the National Highway Traffic
Safety Administration, shall be eligible for a
grant in a fiscal year if--
``(i) the State meets all of the
requirements under clauses (i) through
(iv) of subparagraph (A); and
``(ii) the Secretary determines
that the State meets at least 3 of the
following criteria:
``(I) The State conducts
sustained (on-going and
periodic) seat belt enforcement
at a defined level of
participation during the year.
``(II) The State has
enacted and enforces a primary
enforcement seat belt use law.
``(III) The State has
implemented countermeasure
programs for high-risk
populations, such as drivers on
rural roadways, unrestrained
nighttime drivers, or teenage
drivers.
``(IV) The State has
enacted and enforces occupant
protection laws requiring front
and rear occupant protection
use by all occupants in an age-
appropriate restraint.
``(V) The State has
implemented a comprehensive
occupant protection program in
which the State has--
``(aa) conducted a
program assessment;
``(bb) developed a
statewide strategic
plan;
``(cc) designated
an occupant protection
coordinator; and
``(dd) established
a statewide occupant
protection task force.
``(VI) The State--
``(aa) completed an
assessment of its
occupant protection
program during the 3-
year period preceding
the grant year; or
``(bb) will conduct
such an assessment
during the first year
of the grant.
``(4) Use of grant amounts.--
``(A) In general.--Grant funds received
pursuant to this subsection may be used to--
``(i) carry out a program to
support high-visibility enforcement
mobilizations, including paid media
that emphasizes publicity for the
program, and law enforcement;
``(ii) carry out a program to train
occupant protection safety
professionals, police officers, fire
and emergency medical personnel,
educators, and parents concerning all
aspects of the use of child restraints
and occupant protection;
``(iii) carry out a program to
educate the public concerning the
proper use and installation of child
restraints, including related equipment
and information systems;
``(iv) carry out a program to
provide community child passenger
safety services, including programs
about proper seating positions for
children and how to reduce the improper
use of child restraints;
``(v) purchase and distribute child
restraints to low-income families,
provided that not more than 5 percent
of the funds received in a fiscal year
are used for such purpose; and
``(vi) establish and maintain
information systems containing data
concerning occupant protection,
including the collection and
administration of child passenger
safety and occupant protection surveys.
``(B) High seat belt use rate.--A State
that is eligible for funds under paragraph
(3)(A) may use up to 75 percent of such funds
for any project or activity eligible for
funding under section 402.
``(5) Grant amount.--The allocation of grant funds
to a State under this subsection for a fiscal year
shall be in proportion to the State's apportionment
under section 402 for fiscal year 2009.
``(6) Definitions.--In this subsection:
``(A) Child restraint.--The term `child
restraint' means any device (including child
safety seat, booster seat, harness, and
excepting seat belts) that is--
``(i) designed for use in a motor
vehicle to restrain, seat, or position
children who weigh 65 pounds (30
kilograms) or less; and
``(ii) certified to the Federal
motor vehicle safety standard
prescribed by the National Highway
Traffic Safety Administration for child
restraints.
``(B) Seat belt.--The term `seat belt'
means--
``(i) with respect to open-body
motor vehicles, including convertibles,
an occupant restraint system consisting
of a lap belt or a lap belt and a
detachable shoulder belt; and
``(ii) with respect to other motor
vehicles, an occupant restraint system
consisting of integrated lap and
shoulder belts.
``(c) State Traffic Safety Information System
Improvements.--
``(1) General authority.--Subject to the
requirements under this subsection, the Secretary of
Transportation shall award grants to States to support
the development and implementation of effective State
programs that--
``(A) improve the timeliness, accuracy,
completeness, uniformity, integration, and
accessibility of the State safety data that is
needed to identify priorities for Federal,
State, and local highway and traffic safety
programs;
``(B) evaluate the effectiveness of efforts
to make such improvements;
``(C) link the State data systems,
including traffic records, with other data
systems within the State, such as systems that
contain medical, roadway, and economic data;
``(D) improve the compatibility and
interoperability of the data systems of the
State with national data systems and data
systems of other States; and
``(E) enhance the ability of the Secretary
to observe and analyze national trends in crash
occurrences, rates, outcomes, and
circumstances.
``(2) Federal share.--The Federal share of the cost
of adopting and implementing in a fiscal year a State
program described in this subsection may not exceed 80
percent.
``(3) Eligibility.--A State is not eligible for a
grant under this subsection in a fiscal year unless the
State demonstrates, to the satisfaction of the
Secretary, that the State--
``(A) has a functioning traffic records
coordinating committee (referred to in this
paragraph as `TRCC') that meets at least 3
times each year;
``(B) has designated a TRCC coordinator;
``(C) has established a State traffic
record strategic plan that has been approved by
the TRCC and describes specific quantifiable
and measurable improvements anticipated in the
State's core safety databases, including crash,
citation or adjudication, driver, emergency
medical services or injury surveillance system,
roadway, and vehicle databases;
``(D) has demonstrated quantitative
progress in relation to the significant data
program attribute of--
``(i) accuracy;
``(ii) completeness;
``(iii) timeliness;
``(iv) uniformity;
``(v) accessibility; or
``(vi) integration of a core
highway safety database; and
``(E) has certified to the Secretary that
an assessment of the State's highway safety
data and traffic records system was conducted
or updated during the preceding 5 years.
``(4) Use of grant amounts.--Grant funds received
by a State under this subsection shall be used for
making data program improvements to core highway safety
databases related to quantifiable, measurable progress
in any of the 6 significant data program attributes set
forth in paragraph (3)(D).
``(5) Grant amount.--The allocation of grant funds
to a State under this subsection for a fiscal year
shall be in proportion to the State's apportionment
under section 402 for fiscal year 2009.
``(d) Impaired Driving Countermeasures.--
``(1) In general.--Subject to the requirements
under this subsection, the Secretary of Transportation
shall award grants to States that adopt and implement--
``(A) effective programs to reduce driving
under the influence of alcohol, drugs, or the
combination of alcohol and drugs; or
``(B) alcohol-ignition interlock laws.
``(2) Federal share.--The Federal share of the
costs of activities funded using amounts from grants
under this subsection may not exceed 80 percent in any
fiscal year in which the State receives a grant.
``(3) Eligibility.--
``(A) Low-range states.--Low-range States
shall be eligible for a grant under this
subsection.
``(B) Mid-range states.--A mid-range State
shall be eligible for a grant under this
subsection if--
``(i) a statewide impaired driving
task force in the State developed a
statewide plan during the most recent 3
calendar years to address the problem
of impaired driving; or
``(ii) the State will convene a
statewide impaired driving task force
to develop such a plan during the first
year of the grant.
``(C) High-range states.--A high-range
State shall be eligible for a grant under this
subsection if the State--
``(i)(I) conducted an assessment of
the State's impaired driving program
during the most recent 3 calendar
years; or
``(II) will conduct such an
assessment during the first year of the
grant;
``(ii) convenes, during the first
year of the grant, a statewide impaired
driving task force to develop a
statewide plan that--
``(I) addresses any
recommendations from the
assessment conducted under
clause (i);
``(II) includes a detailed
plan for spending any grant
funds provided under this
subsection; and
``(III) describes how such
spending supports the statewide
program; and
``(iii)(I) submits the statewide
plan to the National Highway Traffic
Safety Administration during the first
year of the grant for the agency's
review and approval;
``(II) annually updates the
statewide plan in each subsequent year
of the grant; and
``(III) submits each updated
statewide plan for the agency's review
and comment.
``(4) Use of grant amounts.--
``(A) Required programs.--High-range States
shall use grant funds for--
``(i) high visibility enforcement
efforts; and
``(ii) any of the activities
described in subparagraph (B) if--
``(I) the activity is
described in the statewide
plan; and
``(II) the Secretary
approves the use of funding for
such activity.
``(B) Authorized programs.--Medium-range
and low-range States may use grant funds for--
``(i) any of the purposes described
in subparagraph (A);
``(ii) hiring a full-time or part-
time impaired driving coordinator of
the State's activities to address the
enforcement and adjudication of laws
regarding driving while impaired by
alcohol;
``(iii) court support of high
visibility enforcement efforts,
training and education of criminal
justice professionals (including law
enforcement, prosecutors, judges, and
probation officers) to assist such
professionals in handling impaired
driving cases, hiring traffic safety
resource prosecutors, hiring judicial
outreach liaisons, and establishing
driving while intoxicated courts;
``(iv) alcohol ignition interlock
programs;
``(v) improving blood-alcohol
concentration testing and reporting;
``(vi) paid and earned media in
support of high visibility enforcement
efforts, and conducting standardized
field sobriety training, advanced
roadside impaired driving evaluation
training, and drug recognition expert
training for law enforcement, and
equipment and related expenditures used
in connection with impaired driving
enforcement in accordance with criteria
established by the National Highway
Traffic Safety Administration;
``(vii) training on the use of
alcohol screening and brief
intervention;
``(viii) developing impaired
driving information systems; and
``(ix) costs associated with a 24-7
sobriety program.
``(C) Other programs.--Low-range States may
use grant funds for any expenditure designed to
reduce impaired driving based on problem
identification. Medium and high-range States
may use funds for such expenditures upon
approval by the Secretary.
``(5) Grant amount.--Subject to paragraph (6), the
allocation of grant funds to a State under this section
for a fiscal year shall be in proportion to the State's
apportionment under section 402(c) for fiscal year
2009.
``(6) Grants to states that adopt and enforce
mandatory alcohol-ignition interlock laws.--
``(A) In general.--The Secretary shall make
a separate grant under this subsection to each
State that adopts and is enforcing a mandatory
alcohol-ignition interlock law for all
individuals convicted of driving under the
influence of alcohol or of driving while
intoxicated.
``(B) Use of funds.--Grants authorized
under subparagraph (A) may be used by recipient
States for any eligible activities under this
subsection or section 402.
``(C) Allocation.--Amounts made available
under this paragraph shall be allocated among
States described in subparagraph (A) on the
basis of the apportionment formula set forth in
section 402(c).
``(D) Funding.--Not more than 15 percent of
the amounts made available to carry out this
subsection in a fiscal year shall be made
available by the Secretary for making grants
under this paragraph.
``(7) Definitions.--In this subsection:
``(A) 24-7 sobriety program.--The term `24-
7 sobriety program' means a State law or
program that authorizes a State court or a
State agency, as a condition of sentence,
probation, parole, or work permit, to--
``(i) require an individual who
plead guilty or was convicted of
driving under the influence of alcohol
or drugs to totally abstain from
alcohol or drugs for a period of time;
and
``(ii) require the individual to be
subject to testing for alcohol or
drugs--
``(I) at least twice per
day;
``(II) by continuous
transdermal alcohol monitoring
via an electronic monitoring
device; or
``(III) by an alternate
method with the concurrence of
the Secretary.
``(B) Average impaired driving fatality
rate.--The term `average impaired driving
fatality rate' means the number of fatalities
in motor vehicle crashes involving a driver
with a blood alcohol concentration of at least
0.08 percent for every 100,000,000 vehicle
miles traveled, based on the most recently
reported 3 calendar years of final data from
the Fatality Analysis Reporting System, as
calculated in accordance with regulations
prescribed by the Administrator of the National
Highway Traffic Safety Administration.
``(C) High-range state.--The term `high-
range State' means a State that has an average
impaired driving fatality rate of 0.60 or
higher.
``(D) Low-range state.--The term `low-range
State' means a State that has an average
impaired driving fatality rate of 0.30 or
lower.
``(E) Mid-range state.--The term `mid-range
State' means a State that has an average
impaired driving fatality rate that is higher
than 0.30 and lower than 0.60.
``(e) Distracted Driving Grants.--
``(1) In general.--The Secretary shall award a
grant under this subsection to any State that enacts
and enforces a statute that meets the requirements set
forth in paragraphs (2) and (3).
``(2) Prohibition on texting while driving.--A
State statute meets the requirements set forth in this
paragraph if the statute--
``(A) prohibits drivers from texting
through a personal wireless communications
device while driving;
``(B) makes violation of the statute a
primary offense; and
``(C) establishes--
``(i) a minimum fine for a first
violation of the statute; and
``(ii) increased fines for repeat
violations.
``(3) Prohibition on youth cell phone use while
driving.--A State statute meets the requirements set
forth in this paragraph if the statute--
``(A) prohibits a driver who is younger
than 18 years of age from using a personal
wireless communications device while driving;
``(B) makes violation of the statute a
primary offense;
``(C) requires distracted driving issues to
be tested as part of the State driver's license
examination; and
``(D) establishes--
``(i) a minimum fine for a first
violation of the statute; and
``(ii) increased fines for repeat
violations.
``(4) Permitted exceptions.--A statute that meets
the requirements set forth in paragraphs (2) and (3)
may provide exceptions for--
``(A) a driver who uses a personal wireless
communications device to contact emergency
services;
``(B) emergency services personnel who use
a personal wireless communications device
while--
``(i) operating an emergency
services vehicle; and
``(ii) engaged in the performance
of their duties as emergency services
personnel; and
``(C) an individual employed as a
commercial motor vehicle driver or a school bus
driver who uses a personal wireless
communications device within the scope of such
individual's employment if such use is
permitted under the regulations promulgated
pursuant to section 31152 of title 49.
``(5) Use of grant funds.--Of the amounts received
by a State under this subsection--
``(A) at least 50 percent shall be used--
``(i) to educate the public through
advertising containing information
about the dangers of texting or using a
cell phone while driving;
``(ii) for traffic signs that
notify drivers about the distracted
driving law of the State; or
``(iii) for law enforcement costs
related to the enforcement of the
distracted driving law; and
``(B) up to 50 percent may be used for any
eligible project or activity under section 402.
``(6) Additional grants.--In the first fiscal year
that grants are awarded under this subsection, the
Secretary may use up to 25 percent of the amounts
available for grants under this subsection to award
grants to States that--
``(A) enacted statutes before the date of
enactment of the Motor Vehicle and Highway
Safety Improvement Act of 2012, which meet the
requirements set forth in subparagraphs (A) and
(B) of paragraph (2); and
``(B) are otherwise ineligible for a grant
under this subsection.
``(7) Allocation to support state distracted
driving laws.--Of the amounts available under this
subsection in a fiscal year for distracted driving
grants, the Secretary may expend up to $5,000,000 for
the development and placement of broadcast media to
support the enforcement of State distracted driving
laws.
``(8) Distracted driving study.--
``(A) In general.--The Secretary shall
conduct a study of all forms of distracted
driving.
``(B) Components.--The study conducted
under subparagraph (A) shall--
``(i) examine the effect of
distractions other than the use of
personal wireless communications on
motor vehicle safety;
``(ii) identify metrics to
determine the nature and scope of the
distracted driving problem;
``(iii) identify the most effective
methods to enhance education and
awareness; and
``(iv) identify the most effective
method of reducing deaths and injuries
caused by all forms of distracted
driving.
``(C) Report.--Not later than 1 year after
the date of enactment of the Motor Vehicle and
Highway Safety Improvement Act of 2012, the
Secretary shall submit a report containing the
results of the study conducted under this
paragraph to--
``(i) the Committee on Commerce,
Science, and Transportation of the
Senate; and
``(ii) the Committee on
Transportation and Infrastructure of
the House of Representatives.
``(9) Definitions.--In this subsection:
``(A) Driving.--The term `driving'--
``(i) means operating a motor
vehicle on a public road, including
operation while temporarily stationary
because of traffic, a traffic light or
stop sign, or otherwise; and
``(ii) does not include operating a
motor vehicle when the vehicle has
pulled over to the side of, or off, an
active roadway and has stopped in a
location where it can safely remain
stationary.
``(B) Personal wireless communications
device.--The term `personal wireless
communications device'--
``(i) means a device through which
personal wireless services (as defined
in section 332(c)(7)(C)(i) of the
Communications Act of 1934 (47 U.S.C.
332(c)(7)(C)(i))) are transmitted; and
``(ii) does not include a global
navigation satellite system receiver
used for positioning, emergency
notification, or navigation purposes.
``(C) Primary offense.--The term `primary
offense' means an offense for which a law
enforcement officer may stop a vehicle solely
for the purpose of issuing a citation in the
absence of evidence of another offense.
``(D) Public road.--The term `public road'
has the meaning given such term in section
402(c).
``(E) Texting.--The term `texting' means
reading from or manually entering data into a
personal wireless communications device,
including doing so for the purpose of SMS
texting, e-mailing, instant messaging, or
engaging in any other form of electronic data
retrieval or electronic data communication.
``(f) Motorcyclist Safety.--
``(1) Grants authorized.--Subject to the
requirements under this subsection, the Secretary shall
award grants to States that adopt and implement
effective programs to reduce the number of single- and
multi-vehicle crashes involving motorcyclists.
``(2) Allocation.--The amount of a grant awarded to
a State for a fiscal year under this subsection may not
exceed 25 percent of the amount apportioned to the
State for fiscal year 2003 under section 402.
``(3) Grant eligibility.--A State becomes eligible
for a grant under this subsection by adopting or
demonstrating to the satisfaction of the Secretary, at
least 2 of the following criteria:
``(A) Motorcycle rider training courses.--
An effective motorcycle rider training course
that is offered throughout the State, which--
``(i) provides a formal program of
instruction in accident avoidance and
other safety-oriented operational
skills to motorcyclists; and
``(ii) may include innovative
training opportunities to meet unique
regional needs.
``(B) Motorcyclists awareness program.--An
effective statewide program to enhance motorist
awareness of the presence of motorcyclists on
or near roadways and safe driving practices
that avoid injuries to motorcyclists.
``(C) Reduction of fatalities and crashes
involving motorcycles.--A reduction for the
preceding calendar year in the number of
motorcycle fatalities and the rate of motor
vehicle crashes involving motorcycles in the
State (expressed as a function of 10,000
motorcycle registrations).
``(D) Impaired driving program.--
Implementation of a statewide program to reduce
impaired driving, including specific measures
to reduce impaired motorcycle operation.
``(E) Reduction of fatalities and accidents
involving impaired motorcyclists.--A reduction
for the preceding calendar year in the number
of fatalities and the rate of reported crashes
involving alcohol- or drug-impaired motorcycle
operators (expressed as a function of 10,000
motorcycle registrations).
``(F) Fees collected from motorcyclists.--
All fees collected by the State from
motorcyclists for the purposes of funding
motorcycle training and safety programs will be
used for motorcycle training and safety
purposes.
``(4) Eligible uses.--
``(A) In general.--A State may use funds
from a grant under this subsection only for
motorcyclist safety training and motorcyclist
awareness programs, including--
``(i) improvements to motorcyclist
safety training curricula;
``(ii) improvements in program
delivery of motorcycle training to both
urban and rural areas, including--
``(I) procurement or repair
of practice motorcycles;
``(II) instructional
materials;
``(III) mobile training
units; and
``(IV) leasing or
purchasing facilities for
closed-course motorcycle skill
training;
``(iii) measures designed to
increase the recruitment or retention
of motorcyclist safety training
instructors; and
``(iv) public awareness, public
service announcements, and other
outreach programs to enhance driver
awareness of motorcyclists, such as the
`share-the-road' safety messages
developed under subsection (g).
``(B) Suballocations of funds.--An agency
of a State that receives a grant under this
subsection may suballocate funds from the grant
to a nonprofit organization incorporated in
that State to carry out this subsection.
``(5) Definitions.--In this subsection:
``(A) Motorcyclist awareness.--The term
`motorcyclist awareness' means individual or
collective awareness of--
``(i) the presence of motorcycles
on or near roadways; and
``(ii) safe driving practices that
avoid injury to motorcyclists.
``(B) Motorcyclist awareness program.--The
term `motorcyclist awareness program' means an
informational or public awareness program
designed to enhance motorcyclist awareness that
is developed by or in coordination with the
designated State authority having jurisdiction
over motorcyclist safety issues, which may
include the State motorcycle safety
administrator or a motorcycle advisory council
appointed by the governor of the State.
``(C) Motorcyclist safety training.--The
term `motorcyclist safety training' means a
formal program of instruction that is approved
for use in a State by the designated State
authority having jurisdiction over motorcyclist
safety issues, which may include the State
motorcycle safety administrator or a motorcycle
advisory council appointed by the governor of
the State.
``(D) State.--The term `State' has the
meaning given such term in section 101(a) of
title 23, United States Code.
``(g) State Graduated Driver Licensing Incentive Grant.--
``(1) Grants authorized.--Subject to the
requirements under this subsection, the Secretary shall
award grants to States that adopt and implement
graduated driver licensing laws in accordance with the
requirements set forth in paragraph (2).
``(2) Minimum requirements.--
``(A) In general.--A State meets the
requirements set forth in this paragraph if the
State has a graduated driver licensing law that
requires novice drivers younger than 21 years
of age to comply with the 2-stage licensing
process described in subparagraph (B) before
receiving an unrestricted driver's license.
``(B) Licensing process.--A State is in
compliance with the 2-stage licensing process
described in this subparagraph if the State's
driver's license laws include--
``(i) a learner's permit stage
that--
``(I) is at least 6 months
in duration;
``(II) prohibits the driver
from using a cellular telephone
or any communications device in
a nonemergency situation; and
``(III) remains in effect
until the driver--
``(aa) reaches 16
years of age and enters
the intermediate stage;
or
``(bb) reaches 18
years of age;
``(ii) an intermediate stage that--
``(I) commences immediately
after the expiration of the
learner's permit stage;
``(II) is at least 6 months
in duration;
``(III) prohibits the
driver from using a cellular
telephone or any communications
device in a nonemergency
situation;
``(IV) restricts driving at
night;
``(V) prohibits the driver
from operating a motor vehicle
with more than 1 nonfamilial
passenger younger than 21 years
of age unless a licensed driver
who is at least 21 years of age
is in the motor vehicle; and
``(VI) remains in effect
until the driver reaches 18
years of age; and
``(iii) any other requirement
prescribed by the Secretary of
Transportation, including--
``(I) in the learner's
permit stage--
``(aa) at least 40
hours of behind-the-
wheel training with a
licensed driver who is
at least 21 years of
age;
``(bb) a driver
training course; and
``(cc) a
requirement that the
driver be accompanied
and supervised by a
licensed driver, who is
at least 21 years of
age, at all times while
such driver is
operating a motor
vehicle; and
``(II) in the learner's
permit or intermediate stage, a
requirement, in addition to any
other penalties imposed by
State law, that the grant of an
unrestricted driver's license
be automatically delayed for
any individual who, during the
learner's permit or
intermediate stage, is
convicted of a driving-related
offense, including--
``(aa) driving
while intoxicated;
``(bb)
misrepresentation of
his or her true age;
``(cc) reckless
driving;
``(dd) driving
without wearing a seat
belt;
``(ee) speeding; or
``(ff) any other
driving-related
offense, as determined
by the Secretary.
``(3) Rulemaking.--
``(A) In general.--The Secretary shall
promulgate regulations necessary to implement
the requirements set forth in paragraph (2), in
accordance with the notice and comment
provisions under section 553 of title 5.
``(B) Exception.--A State that otherwise
meets the minimum requirements set forth in
paragraph (2) shall be deemed by the Secretary
to be in compliance with the requirement set
forth in paragraph (2) if the State enacted a
law before January 1, 2011, establishing a
class of license that permits licensees or
applicants younger than 18 years of age to
drive a motor vehicle--
``(i) in connection with work
performed on, or for the operation of,
a farm owned by family members who are
directly related to the applicant or
licensee; or
``(ii) if demonstrable hardship
would result from the denial of a
license to the licensees or applicants.
``(4) Allocation.--Grant funds allocated to a State
under this subsection for a fiscal year shall be in
proportion to a State's apportionment under section 402
for such fiscal year.
``(5) Use of funds.--Of the grant funds received by
a State under this subsection--
``(A) at least 25 percent shall be used
for--
``(i) enforcing a 2-stage licensing
process that complies with paragraph
(2);
``(ii) training for law enforcement
personnel and other relevant State
agency personnel relating to the
enforcement described in clause (i);
``(iii) publishing relevant
educational materials that pertain
directly or indirectly to the State
graduated driver licensing law;
``(iv) carrying out other
administrative activities that the
Secretary considers relevant to the
State's 2-stage licensing process; and
``(v) carrying out a teen traffic
safety program described in section
402(m); and
``(B) up to 75 percent may be used for any
eligible project or activity under section
402.''.
(b) Conforming Amendment.--The analysis for chapter 4 of
title 23, United States Code, is amended by striking the item
relating to section 405 and inserting the following:
``405. National priority safety programs.''.
SEC. 31106. HIGH VISIBILITY ENFORCEMENT PROGRAM.
Section 2009 of SAFETEA-LU (23 U.S.C. 402 note) is
amended--
(1) in subsection (a)--
(A) by striking ``at least 2'' and
inserting ``at least 3''; and
(B) by striking ``years 2006 through
2012.'' and inserting ``fiscal years 2013 and
2014. The Administrator may also initiate and
support additional campaigns in each of fiscal
years 2013 and 2014 for the purposes specified
in subsection (b).'';
(2) in subsection (b), by striking ``either or
both'' and inserting ``outcomes related to at least
1'';
(3) in subsection (c), by inserting ``and Internet-
based outreach'' after ``print media advertising'';
(4) in subsection (e), by striking ``subsections
(a), (c), and (f)'' and inserting ``subsection (c)'';
(5) by striking subsection (f); and
(6) by redesignating subsection (g) as subsection
(f).
SEC. 31107. AGENCY ACCOUNTABILITY.
Section 412 of title 23, United States Code, is amended--
(1) by amending subsection (a) to read as follows:
``(a) Triennial State Management Reviews.--
``(1) In general.--Except as provided under
paragraph (2), the Secretary shall conduct a review of
each State highway safety program at least once every 3
years.
``(2) Exceptions.--The Secretary may conduct
reviews of the highway safety programs of the United
States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands as often
as the Secretary determines to be appropriate.
``(3) Components.--Reviews under this subsection
shall include--
``(A) a management evaluation of all grant
programs funded under this chapter;
``(B) an assessment of State data
collection and evaluation relating to
performance measures established by the
Secretary;
``(C) a comparison of State efforts under
subparagraphs (A) and (B) to best practices and
programs that have been evaluated for
effectiveness; and
``(D) the development of recommendations on
how each State could--
``(i) improve the management and
oversight of its grant activities; and
``(ii) provide a management and
oversight plan for such grant
programs.''; and
(2) by striking subsection (f).
SEC. 31108. EMERGENCY MEDICAL SERVICES.
Section 10202 of Public Law 109-59 (42 U.S.C. 300d-4), is
amended by adding at the end the following:
``(b) National Emergency Medical Services Advisory
Council.--
``(1) Establishment.--The Secretary of
Transportation, in coordination with the Secretary of
Health and Human Services and the Secretary of Homeland
Security, shall establish a National Emergency Medical
Services Advisory Council (referred to in this
subsection as the `Advisory Council').
``(2) Membership.--The Advisory Council shall be
composed of 25 members, who--
``(A) shall be appointed by the Secretary
of Transportation; and
``(B) shall collectively be representative
of all sectors of the emergency medical
services community.
``(3) Purposes.--The purposes of the Advisory
Council are to advise and consult with--
``(A) the Federal Interagency Committee on
Emergency Medical Services on matters relating
to emergency medical services issues; and
``(B) the Secretary of Transportation on
matters relating to emergency medical services
issues affecting the Department of
Transportation.
``(4) Administration.--The Administrator of the
National Highway Traffic Safety Administration shall
provide administrative support to the Advisory Council,
including scheduling meetings, setting agendas, keeping
minutes and records, and producing reports.
``(5) Leadership.--The members of the Advisory
Council shall annually select a chairperson of the
Advisory Council.
``(6) Meetings.--The Advisory Council shall meet as
frequently as is determined necessary by the
chairperson of the Advisory Council.
``(7) Annual reports.--The Advisory Council shall
prepare an annual report to the Secretary of
Transportation regarding the Advisory Council's actions
and recommendations.''.
SEC. 31109. REPEAL OF PROGRAMS.
(a) General Provision.--A repeal made by this section shall
not affect amounts apportioned or allocated before the
effective date of such repeal, provided that such apportioned
or allocated funds continue to be subject to the requirements
to which such funds were subject under the repealed section as
in effect on the day before the date of the repeal.
(b) Safety Belt Performance Grants.--Section 406 of title
23, United States Code, and the item relating to section 406 in
the analysis for chapter 4 of title 23, United States Code, are
repealed.
(c) Innovative Project Grants.--Section 407 of title 23,
United States Code, and the item relating to section 407 in the
analysis for chapter 4, are repealed.
(d) State Traffic Safety Information System Improvements.--
Section 408 of title 23, United States Code, and the item
relating to section 408 in the analysis for chapter 4, are
repealed.
(e) Alcohol-impaired Driving Countermeasures.--Section 410
of title 23, United States Code, and the item relating to
section 410 in the analysis for chapter 4, are repealed.
(f) State Highway Safety Data Improvements.--Section 411 of
title 23, United States Code, and the item relating to section
411 in the analysis for chapter 4, are repealed.
(g) Motorcyclist Safety.--Section 2010 of SAFETEA-LU (23
U.S.C. 402 note), and the item relating to section 2010 in the
table of contents under section 1(b) of such Act, are repealed.
(h) Child Safety and Child Booster Seat Incentive Grants.--
Section 2011 of SAFETEA-LU (23 U.S.C. 405 note), and the item
relating to section 2011 in the table of contents under section
1(b) of that Act, are repealed.
(i) Drug-impaired Driving Enforcement.--Section 2013 of
SAFETEA-LU (23 U.S.C. 403 note), and the item relating to
section 2013 in the table of contents under section 1(b) of
that Act, are repealed.
(j) First Responder Vehicle Safety Program.--Section 2014
of SAFETEA-LU (23 U.S.C. 402 note), and the item relating to
section 2014 in the table of contents under section 1(b) of
that Act, are repealed.
(k) Rural State Emergency Medical Services Optimization
Pilot Program.--Section 2016 of SAFETEA-LU (119 Stat. 1541),
and the item relating to section 2016 in the table of contents
under section 1(b) of that Act, are repealed.
(l) Older Driver Safety; Law Enforcement Training.--Section
2017 of SAFETEA-LU (119 Stat. 1541), and the item relating to
section 2017 in the table of contents under section 1(b) of
that Act, are repealed.
Subtitle B--Enhanced Safety Authorities
SEC. 31201. DEFINITION OF MOTOR VEHICLE EQUIPMENT.
Section 30102(a)(7)(C) of title 49, United States Code, is
amended to read as follows:
``(C) any device or an article or apparel,
including a motorcycle helmet and excluding
medicine or eyeglasses prescribed by a licensed
practitioner, that--
``(i) is not a system, part, or
component of a motor vehicle; and
``(ii) is manufactured, sold,
delivered, or offered to be sold for
use on public streets, roads, and
highways with the apparent purpose of
safeguarding users of motor vehicles
against risk of accident, injury, or
death.''.
SEC. 31202. PERMIT REMINDER SYSTEM FOR NON-USE OF SAFETY BELTS.
(a) In General.--Chapter 301 of title 49, United States
Code, is amended--
(1) in section 30122, by striking subsection (d);
and
(2) by amending section 30124 to read as follows:
``Sec. 30124. Nonuse of safety belts
``A motor vehicle safety standard prescribed under this
chapter may not require a manufacturer to comply with the
standard by using a safety belt interlock designed to prevent
starting or operating a motor vehicle if an occupant is not
using a safety belt.''.
(b) Conforming Amendment.--The analysis for chapter 301 of
title 49, United States Code, is amended by striking the item
relating to section 30124 and inserting the following:
``Sec. 30124. Nonuse of safety belts.''.
SEC. 31203. CIVIL PENALTIES.
(a) In General.--Section 30165 of title 49, United States
Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``30123(d)'' and
inserting ``30123(a)''; and
(ii) by striking ``$15,000,000''
and inserting ``$35,000,000''; and
(B) in paragraph (3), by striking
``$15,000,000'' and inserting ``$35,000,000'';
and
(2) by amending subsection (c) to read as follows:
``(c) Relevant Factors in Determining Amount of Penalty or
Compromise.--In determining the amount of a civil penalty or
compromise under this section, the Secretary of Transportation
shall consider the nature, circumstances, extent, and gravity
of the violation. Such determination shall include, as
appropriate--
``(1) the nature of the defect or noncompliance;
``(2) knowledge by the person charged of its
obligations under this chapter;
``(3) the severity of the risk of injury;
``(4) the occurrence or absence of injury;
``(5) the number of motor vehicles or items of
motor vehicle equipment distributed with the defect or
noncompliance;
``(6) actions taken by the person charged to
identify, investigate, or mitigate the condition;
``(7) the appropriateness of such penalty in
relation to the size of the business of the person
charged, including the potential for undue adverse
economic impacts;
``(8) whether the person has been assessed civil
penalties under this section during the most recent 5
years; and
``(9) other appropriate factors.''.
(b) Civil Penalty Criteria.--Not later than 1 year after
the date of enactment of this Act, the Secretary shall issue a
final rule, in accordance with the procedures of section 553 of
title 5, United States Code, which provides an interpretation
of the penalty factors described in section 30165(c) of title
49, United States Code.
(c) Effective Date.--The amendments made by subsection (a)
shall take effect on the date that is the earlier of the date
on which final regulations are issued under subsection (b) or 1
year after the date of enactment of this Act.
SEC. 31204. MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT.
(a) In General.--Chapter 301 of title 49, United States
Code, is amended by adding at the end the following:
``SUBCHAPTER V--MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT
``Sec. 30181. Policy
``The Secretary of Transportation shall conduct research,
development, and testing on any area or aspect of motor vehicle
safety necessary to carry out this chapter.
``Sec. 30182. Powers and duties
``(a) In General.--The Secretary of Transportation shall--
``(1) conduct motor vehicle safety research,
development, and testing programs and activities,
including activities related to new and emerging
technologies that impact or may impact motor vehicle
safety;
``(2) collect and analyze all types of motor
vehicle and highway safety data and related information
to determine the relationship between motor vehicle or
motor vehicle equipment performance characteristics
and--
``(A) accidents involving motor vehicles;
and
``(B) deaths or personal injuries resulting
from those accidents.
``(b) Activities.--In carrying out a program under this
section, the Secretary of Transportation may--
``(1) promote, support, and advance the education
and training of motor vehicle safety staff of the
National Highway Traffic Safety Administration in motor
vehicle safety research programs and activities,
including using program funds for planning,
implementing, conducting, and presenting results of
program activities, and for related expenses;
``(2) obtain experimental and other motor vehicles
and motor vehicle equipment for research or testing;
``(3)(A) use any test motor vehicles and motor
vehicle equipment suitable for continued use, as
determined by the Secretary to assist in carrying out
this chapter or any other chapter of this title; or
``(B) sell or otherwise dispose of test motor
vehicles and motor vehicle equipment and use the
resulting proceeds to carry out this chapter;
``(4) award grants to States and local governments,
interstate authorities, and nonprofit institutions; and
``(5) enter into cooperative agreements,
collaborative research, or contracts with Federal
agencies, interstate authorities, State and local
governments, other public entities, private
organizations and persons, nonprofit institutions,
colleges and universities, consumer advocacy groups,
corporations, partnerships, sole proprietorships, trade
associations, Federal laboratories (including
government-owned, government-operated laboratories and
government-owned, contractor-operated laboratories),
and research organizations.
``(c) Use of Public Agencies.--In carrying out this
subchapter, the Secretary shall avoid duplication by using the
services, research, and testing facilities of public agencies,
as appropriate.
``(d) Facilities.--The Secretary may plan, design, and
construct a new facility or modify an existing facility to
conduct research, development, and testing in traffic safety,
highway safety, and motor vehicle safety. An expenditure of
more than $1,500,000 for planning, design, or construction may
be made only if 60 days prior notice of the planning, design,
or construction is provided to the Committees on Science,
Space, and Technology and Transportation and Infrastructure of
the House of Representatives and the Committees on Commerce,
Science, and Transportation and Environment and Public Works of
the Senate. The notice shall include--
``(1) a brief description of the facility being
planned, designed, or constructed;
``(2) the location of the facility;
``(3) an estimate of the maximum cost of the
facility;
``(4) a statement identifying private and public
agencies that will use the facility and the
contribution each agency will make to the cost of the
facility; and
``(5) a justification of the need for the facility.
``(e) Increasing Costs of Approved Facilities.--The
estimated maximum cost of a facility noticed under subsection
(d) may be increased by an amount equal to the percentage
increase in construction costs from the date the notice is
submitted to Congress. However, the increase in the cost of the
facility may not be more than 10 percent of the estimated
maximum cost included in the notice. The Secretary shall decide
what increase in construction costs has occurred.
``(f) Availability of Information, Patents, and
Developments.--When the United States Government makes more
than a minimal contribution to a research or development
activity under this chapter, the Secretary shall include in the
arrangement for the activity a provision to ensure that all
information, patents, and developments related to the activity
are available to the public. The owner of a background patent
may not be deprived of a right under the patent.
``Sec. 30183. Prohibition on certain disclosures.
``Any report of the National Highway Traffic Safety
Administration, or of any officer, employee, or contractor of
the National Highway Traffic Safety Administration, relating to
any highway traffic accident or the investigation of such
accident conducted pursuant to this chapter or section 403 of
title 23, may be made available to the public only in a manner
that does not identify individuals.''.
(b) Conforming Amendments.--
(1) Amendment of chapter analysis.--The chapter
analysis for chapter 301 of title 49, United States
Code, is amended by adding at the end the following:
``subchapter v--motor vehicle safety research and development
``30181. Policy.
``30182. Powers and duties.
``30183. Prohibition on certain disclosures.''.
(2) Deletion of redundant material.--Chapter 301 of
title 49, United States Code, is amended--
(A) in the chapter analysis, by striking
the item relating to section 30168; and
(B) by striking section 30168.
SEC. 31205. ODOMETER REQUIREMENTS.
(a) Definition.--Section 32702(5) of title 49, United
States Code, is amended by inserting ``or system of
components'' after ``instrument''.
(b) Electronic Disclosures of Odometer Information.--
Section 32705 of title 49, United States Code, is amended by
adding at the end the following:
``(g) Electronic Disclosures.--Not later than 18 months
after the date of enactment of the Motor Vehicle and Highway
Safety Improvement Act of 2012, in carrying out this section,
the Secretary shall prescribe regulations permitting any
written disclosures or notices and related matters to be
provided electronically.''.
SEC. 31206. INCREASED PENALTIES AND DAMAGES FOR ODOMETER FRAUD.
Chapter 327 of title 49, United States Code, is amended--
(1) in section 32709(a)(1)--
(A) by striking ``$2,000'' and inserting
``$10,000''; and
(B) by striking ``$100,000'' and inserting
``$1,000,000''; and
(2) in section 32710(a), by striking ``$1,500'' and
inserting ``$10,000''.
SEC. 31207. EXTEND PROHIBITIONS ON IMPORTING NONCOMPLIANT VEHICLES AND
EQUIPMENT TO DEFECTIVE VEHICLES AND EQUIPMENT.
Section 30112 of title 49, United States Code, is amended--
(1) in subsection (a), by adding at the end the
following:
``(3) Except as provided in this section, section 30114,
subsections (i) and (j) of section 30120, and subchapter III, a
person may not sell, offer for sale, introduce or deliver for
introduction in interstate commerce, or import into the United
States any motor vehicle or motor vehicle equipment if the
vehicle or equipment contains a defect related to motor vehicle
safety about which notice was given under section 30118(c) or
an order was issued under section 30118(b). Nothing in this
paragraph may be construed to prohibit the importation of a new
motor vehicle that receives a required recall remedy before
being sold to a consumer in the United States.''; and
(2) in subsection (b)(2)--
(A) in subparagraph (A), by striking ``or''
at the end;
(B) in subparagraph (B), by adding ``or''
at the end; and
(C) by adding at the end the following:
``(C) having no reason to know, despite
exercising reasonable care, that a motor
vehicle or motor vehicle equipment contains a
defect related to motor vehicle safety about
which notice was given under section 30118(c)
or an order was issued under section
30118(b);''.
SEC. 31208. CONDITIONS ON IMPORTATION OF VEHICLES AND EQUIPMENT.
Chapter 301 of title 49, United States Code, is amended--
(1) in the chapter analysis, by striking the item
relating to section 30164 and inserting the following:
``30164. Service of process; conditions on importation of vehicles and
equipment.'';
and
(2) in section 30164--
(A) in the section heading, by adding ``;
CONDITIONS ON IMPORTATION OF VEHICLES AND
EQUIPMENT'' at the end; and
(B) by adding at the end the following:
``(c) Identifying Information.--A manufacturer (including
an importer) offering a motor vehicle or motor vehicle
equipment for import shall provide, upon request, such
information that is necessary to identify and track the
products as the Secretary, by rule, may specify, including--
``(1) the product by name and the manufacturer's
address; and
``(2) each retailer or distributor to which the
manufacturer directly supplied motor vehicles or motor
vehicle equipment over which the Secretary has
jurisdiction under this chapter.
``(d) Regulations on the Import of a Motor Vehicle.--The
Secretary may issue regulations that--
``(1) condition the import of a motor vehicle or
motor vehicle equipment on the manufacturer's
compliance with--
``(A) the requirements under this section;
``(B) paragraph (1) or (3) of section
30112(a) with respect to such motor vehicle or
motor vehicle equipment;
``(C) the provision of reports and records
required to be maintained with respect to such
motor vehicle or motor vehicle equipment under
this chapter;
``(D) a request for inspection of premises,
vehicle, or equipment under section 30166;
``(E) an order or voluntary agreement to
remedy such vehicle or equipment; or
``(F) any rules implementing the
requirements described in this subsection;
``(2) provide an opportunity for the manufacturer
to present information before the Secretary's
determination as to whether the manufacturer's imports
should be restricted; and
``(3) establish a process by which a manufacturer
may petition for reinstatement of its ability to import
motor vehicles or motor vehicle equipment.
``(e) Exception.--The requirements of subsections (c) and
(d) shall not apply to original manufacturers (or wholly owned
subsidiaries) of motor vehicles that, prior to the date of
enactment of the Motor Vehicle and Highway Safety Improvement
Act of 2012--
``(1) have imported motor vehicles into the United
States that are certified to comply with all applicable
Federal motor vehicle safety standards;
``(2) have submitted to the Secretary appropriate
manufacturer identification information under part 566
of title 49, Code of Federal Regulations; and
``(3) if applicable, have identified a current
agent for service of process in accordance with part
551 of title 49, Code of Federal Regulations.
``(f) Rulemaking.--In issuing regulations under this
section, the Secretary shall seek to reduce duplicative
requirements by coordinating with the Department of Homeland
Security.''.
SEC. 31209. PORT INSPECTIONS; SAMPLES FOR EXAMINATION OR TESTING.
Section 30166(c) of title 49, United States Code, is
amended--
(1) in paragraph (2), by striking ``and'' at the
end;
(2) in paragraph (3)--
(A) in subparagraph (A), by inserting
``(including at United States ports of entry)''
after ``held for introduction in interstate
commerce''; and
(B) in subparagraph (D), by striking the
period at the end and inserting a semicolon;
and
(3) by adding at the end the following:
``(4) shall enter into a memorandum of
understanding with the Secretary of Homeland Security
for inspections and sampling of motor vehicle equipment
being offered for import to determine compliance with
this chapter or a regulation or order issued under this
chapter.''.
Subtitle C--Transparency and Accountability
SEC. 31301. PUBLIC AVAILABILITY OF RECALL INFORMATION.
(a) Vehicle Recall Information.--Not later than 1 year
after the date of enactment of this Act, the Secretary shall
require that motor vehicle safety recall information--
(1) be available to the public on the Internet;
(2) be searchable by vehicle make and model and
vehicle identification number;
(3) be in a format that preserves consumer privacy;
and
(4) includes information about each recall that has
not been completed for each vehicle.
(b) Rulemaking.--The Secretary may initiate a rulemaking
proceeding to require each manufacturer to provide the
information described in subsection (a), with respect to that
manufacturer's motor vehicles, on a publicly accessible
Internet website. Any rules promulgated under this subsection--
(1) shall limit the information that must be made
available under this section to include only those
recalls issued not more than 15 years prior to the date
of enactment of this Act;
(2) may require information under paragraph (1) to
be provided to a dealer or an owner of a vehicle at no
charge; and
(3) shall permit a manufacturer a reasonable period
of time after receiving information from a dealer with
respect to a vehicle to update the information about
the vehicle on the publicly accessible Internet
website.
(c) Promotion of Public Awareness.--The Secretary, in
consultation with the heads of other relevant agencies, shall
promote consumer awareness of the information made available to
the public pursuant to this section.
SEC. 31302. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION OUTREACH TO
MANUFACTURER, DEALER, AND MECHANIC PERSONNEL.
The Secretary shall publicize the means for contacting the
National Highway Traffic Safety Administration in a manner that
targets mechanics, passenger motor vehicle dealership
personnel, and manufacturer personnel.
SEC. 31303. PUBLIC AVAILABILITY OF COMMUNICATIONS TO DEALERS.
(a) Internet Accessibility.--Section 30166(f) of title 49,
United States Code, is amended--
(1) by striking ``A manufacturer shall give the
Secretary of Transportation'' and inserting the
following:
``(1) In general.--A manufacturer shall give the
Secretary of Transportation, and the Secretary shall
make available on a publicly accessible Internet
website,''; and
(2) by adding at the end the following:
``(2) Index.--Communications required to be
submitted to the Secretary under this subsection shall
be accompanied by an index to each communication,
that--
``(A) identifies the make, model, and model
year of the affected vehicles;
``(B) includes a concise summary of the
subject matter of the communication; and
``(C) shall be made available by the
Secretary to the public on the Internet in a
searchable format.''.
SEC. 31304. CORPORATE RESPONSIBILITY FOR NATIONAL HIGHWAY TRAFFIC
SAFETY ADMINISTRATION REPORTS.
(a) In General.--Section 30166 of title 49, United States
Code, is amended by adding at the end the following:
``(o) Corporate Responsibility for Reports.--
``(1) In general.--The Secretary may promulgate
rules requiring a senior official responsible for
safety in any company submitting information to the
Secretary in response to a request for information in a
safety defect or compliance investigation under this
chapter to certify that--
``(A) the signing official has reviewed the
submission; and
``(B) based on the official's knowledge,
the submission does not--
``(i) contain any untrue statement
of a material fact; or
``(ii) omit to state a material
fact necessary in order to make the
statements made not misleading, in
light of the circumstances under which
such statements were made.
``(2) Notice.--The certification requirements of
this section shall be clearly stated on any request for
information under paragraph (1).''.
(b) Civil Penalty.--Section 30165(a) of title 49, United
States Code, is amended--
(1) in paragraph (3), by striking ``A person'' and
inserting ``Except as provided in paragraph (4), a
person''; and
(2) by adding at the end the following:
``(4) False or misleading reports.--A person who
knowingly and willfully submits materially false or
misleading information to the Secretary, after
certifying the same information as accurate under the
certification process established pursuant to section
30166(o), shall be subject to a civil penalty of not
more than $5,000 per day. The maximum penalty under
this paragraph for a related series of daily violations
is $1,000,000.''.
SEC. 31305. PASSENGER MOTOR VEHICLE INFORMATION PROGRAM.
(a) Definition.--Section 32301 of title 49, United States
Code, is amended--
(1) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (3), respectively;
(2) by inserting before paragraph (2), as
redesignated, the following:
``(1) `crash avoidance' means preventing or
mitigating a crash;''; and
(3) in paragraph (2), as redesignated, by striking
the period at the end and inserting ``; and''.
(b) Information Included.--Section 32302(a) of title 49,
United States Code, is amended--
(1) in paragraph (2), by inserting ``, crash
avoidance, and any other areas the Secretary determines
will improve the safety of passenger motor vehicles''
after ``crashworthiness''; and
(2) by striking paragraph (4).
SEC. 31306. PROMOTION OF VEHICLE DEFECT REPORTING.
Section 32302 of title 49, United States Code, is amended
by adding at the end the following:
``(d) Motor Vehicle Defect Reporting Information.--
``(1) Rulemaking required.--Not later than 1 year
after the date of enactment of the Motor Vehicle and
Highway Safety Improvement Act of 2012, the Secretary
shall prescribe regulations that require passenger
motor vehicle manufacturers--
``(A) to affix, in the glove compartment or
in another readily accessible location on the
vehicle, a sticker, decal, or other device that
provides, in simple and understandable
language, information about how to submit a
safety-related motor vehicle defect complaint
to the National Highway Traffic Safety
Administration;
``(B) to prominently print the information
described in subparagraph (A) within the
owner's manual; and
``(C) to not place such information on the
label required under section 3 of the
Automobile Information Disclosure Act (15
U.S.C. 1232).
``(2) Application.--The requirements under
paragraph (1) shall apply to passenger motor vehicles
manufactured in any model year beginning more than 1
year after the date on which a final rule is published
under paragraph (1).''.
SEC. 31307. WHISTLEBLOWER PROTECTIONS FOR MOTOR VEHICLE MANUFACTURERS,
PART SUPPLIERS, AND DEALERSHIP EMPLOYEES.
(a) In General.--Subchapter IV of chapter 301 of title 49,
United States Code, is amended by adding at the end the
following:
``Sec. 30171. Protection of employees providing motor vehicle safety
information
``(a) Discrimination Against Employees of Manufacturers,
Part Suppliers, and Dealerships.--No motor vehicle
manufacturer, part supplier, or dealership may discharge an
employee or otherwise discriminate against an employee with
respect to compensation, terms, conditions, or privileges of
employment because the employee (or any person acting pursuant
to a request of the employee)--
``(1) provided, caused to be provided, or is about
to provide (with any knowledge of the employer) or
cause to be provided to the employer or the Secretary
of Transportation information relating to any motor
vehicle defect, noncompliance, or any violation or
alleged violation of any notification or reporting
requirement of this chapter;
``(2) has filed, caused to be filed, or is about to
file (with any knowledge of the employer) or cause to
be filed a proceeding relating to any violation or
alleged violation of any motor vehicle defect,
noncompliance, or any violation or alleged violation of
any notification or reporting requirement of this
chapter;
``(3) testified or is about to testify in such a
proceeding;
``(4) assisted or participated or is about to
assist or participate in such a proceeding; or
``(5) objected to, or refused to participate in,
any activity that the employee reasonably believed to
be in violation of any provision of chapter 301 of this
title, or any order, rule, regulation, standard, or ban
under such provision.
``(b) Complaint Procedure.--
``(1) Filing and notification.--A person who
believes that he or she has been discharged or
otherwise discriminated against by any person in
violation of subsection (a) may file (or have any
person file on his or her behalf), not later than 180
days after the date on which such violation occurs, a
complaint with the Secretary of Labor (hereinafter in
this section referred to as the `Secretary') alleging
such discharge or discrimination. Upon receipt of such
a complaint, the Secretary shall notify, in writing,
the person named in the complaint of the filing of the
complaint, of the allegations contained in the
complaint, of the substance of evidence supporting the
complaint, and of the opportunities that will be
afforded to such person under paragraph (2).
``(2) Investigation; preliminary order.--
``(A) In general.--Not later than 60 days
after the date of receipt of a complaint filed
under paragraph (1) and after affording the
person named in the complaint an opportunity to
submit to the Secretary a written response to
the complaint and an opportunity to meet with a
representative of the Secretary to present
statements from witnesses, the Secretary shall
conduct an investigation and determine whether
there is reasonable cause to believe that the
complaint has merit and notify, in writing, the
complainant and the person alleged to have
committed a violation of subsection (a) of the
Secretary's findings. If the Secretary
concludes that there is a reasonable cause to
believe that a violation of subsection (a) has
occurred, the Secretary shall accompany the
Secretary's findings with a preliminary order
providing the relief prescribed by paragraph
(3)(B). Not later than 30 days after the date
of notification of findings under this
paragraph, either the person alleged to have
committed the violation or the complainant may
file objections to the findings or preliminary
order, or both, and request a hearing on the
record. The filing of such objections shall not
operate to stay any reinstatement remedy
contained in the preliminary order. Such
hearings shall be conducted expeditiously. If a
hearing is not requested in such 30-day period,
the preliminary order shall be deemed a final
order that is not subject to judicial review.
``(B) Requirements.--
``(i) Required showing by
complainant.--The Secretary shall
dismiss a complaint filed under this
subsection and shall not conduct an
investigation otherwise required under
subparagraph (A) unless the complainant
makes a prima facie showing that any
behavior described in paragraphs (1)
through (5) of subsection (a) was a
contributing factor in the unfavorable
personnel action alleged in the
complaint.
``(ii) Showing by employer.--
Notwithstanding a finding by the
Secretary that the complainant has made
the showing required under clause (i),
no investigation otherwise required
under subparagraph (A) shall be
conducted if the employer demonstrates,
by clear and convincing evidence, that
the employer would have taken the same
unfavorable personnel action in the
absence of that behavior.
``(iii) Criteria for determination
by secretary.--The Secretary may
determine that a violation of
subsection (a) has occurred only if the
complainant demonstrates that any
behavior described in paragraphs (1)
through (5) of subsection (a) was a
contributing factor in the unfavorable
personnel action alleged in the
complaint.
``(iv) Prohibition.--Relief may not
be ordered under subparagraph (A) if
the employer demonstrates, by clear and
convincing evidence, that the employer
would have taken the same unfavorable
personnel action in the absence of that
behavior.
``(3) Final order.--
``(A) Deadline for issuance; settlement
agreements.--Not later than 120 days after the
date of conclusion of a hearing under paragraph
(2), the Secretary shall issue a final order
providing the relief prescribed by this
paragraph or denying the complaint. At any time
before issuance of a final order, a proceeding
under this subsection may be terminated on the
basis of a settlement agreement entered into by
the Secretary, the complainant, and the person
alleged to have committed the violation.
``(B) Remedy.--If, in response to a
complaint filed under paragraph (1), the
Secretary determines that a violation of
subsection (a) has occurred, the Secretary
shall order the person who committed such
violation--
``(i) to take affirmative action to
abate the violation;
``(ii) to reinstate the complainant
to his or her former position together
with the compensation (including back
pay) and restore the terms, conditions,
and privileges associated with his or
her employment; and
``(iii) to provide compensatory
damages to the complainant.
``(C) Attorneys' fees.--If such an order is
issued under this paragraph, the Secretary, at
the request of the complainant, shall assess
against the person against whom the order is
issued a sum equal to the aggregate amount of
all costs and expenses (including attorneys'
and expert witness fees) reasonably incurred,
as determined by the Secretary, by the
complainant for, or in connection with,
bringing the complaint upon which the order was
issued.
``(D) Frivolous complaints.--If the
Secretary determines that a complaint under
paragraph (1) is frivolous or has been brought
in bad faith, the Secretary may award to the
prevailing employer a reasonable attorney's fee
not exceeding $1,000.
``(E) De novo review.--With respect to a
complaint under paragraph (1), if the Secretary
has not issued a final decision within 210 days
after the filing of the complaint and if the
delay is not due to the bad faith of the
employee, the employee may bring an original
action at law or equity for de novo review in
the appropriate district court of the United
States, which shall have jurisdiction over such
an action without regard to the amount in
controversy, and which action shall, at the
request of either party to the action, be tried
by the court with a jury. The action shall be
governed by the same legal burdens of proof
specified in paragraph (2)(B) for review by the
Secretary.
``(4) Review.--
``(A) Appeal to court of appeals.--Any
person adversely affected or aggrieved by an
order issued under paragraph (3) may obtain
review of the order in the United States Court
of Appeals for the circuit in which the
violation, with respect to which the order was
issued, allegedly occurred or the circuit in
which the complainant resided on the date of
such violation. The petition for review shall
be filed not later than 60 days after the date
of the issuance of the final order of the
Secretary. Review shall conform to chapter 7 of
title 5. The commencement of proceedings under
this subparagraph shall not, unless ordered by
the court, operate as a stay of the order.
``(B) Limitation on collateral attack.--An
order of the Secretary with respect to which
review could have been obtained under
subparagraph (A) shall not be subject to
judicial review in any criminal or other civil
proceeding.
``(5) Enforcement of order by secretary.--Whenever
any person fails to comply with an order issued under
paragraph (3), the Secretary may file a civil action in
the United States district court for the district in
which the violation was found to occur to enforce such
order. In actions brought under this paragraph, the
district courts shall have jurisdiction to grant all
appropriate relief, including injunctive relief and
compensatory damages.
``(6) Enforcement of order by parties.--
``(A) Commencement of action.--A person on
whose behalf an order was issued under
paragraph (3) may commence a civil action
against the person to whom such order was
issued to require compliance with such order.
The appropriate United States district court
shall have jurisdiction, without regard to the
amount in controversy or the citizenship of the
parties, to enforce such order.
``(B) Attorney fees.--The court, in issuing
any final order under this paragraph, may award
costs of litigation (including reasonable
attorney and expert witness fees) to any party
whenever the court determines such award is
appropriate.
``(c) Mandamus.--Any nondiscretionary duty imposed under
this section shall be enforceable in a mandamus proceeding
brought under section 1361 of title 28.
``(d) Nonapplicability To Deliberate Violations.--
Subsection (a) shall not apply with respect to an employee of a
motor vehicle manufacturer, part supplier, or dealership who,
acting without direction from such motor vehicle manufacturer,
part supplier, or dealership (or such person's agent),
deliberately causes a violation of any requirement relating to
motor vehicle safety under this chapter.''.
(b) Government Accountability Office Report.--Not later
than 2 years after the date of enactment of this Act, the
Comptroller General of the United States shall--
(1) conduct a study of the whistleblower
protections established by law with respect to this
program, and update its study of other such programs
administered by the Secretary of Transportation; and
(2) submit to Congress a report of the results of
the study under paragraph (1), including--
(A) an identification of the differences
between the provisions applicable to different
programs, the number of claims brought pursuant
to each provision, and the outcome of each
claim; and
(B) any recommendations for program changes
that the Comptroller General considers
appropriate based on the study under paragraph
(1).
(c) Conforming Amendment.--The table of sections for
chapter 301 of title 49, United States Code, is amended by
inserting after the item relating to section 30170 the
following:
``30171. Protection of employees providing motor vehicle safety
information.''.
SEC. 31308. ANTI-REVOLVING DOOR.
(a) Study of Department of Transportation Policies on
Official Communication With Former Motor Vehicle Safety Issue
Employees.--Not later than 1 year after the date of enactment
of this Act, the Inspector General of the Department of
Transportation shall--
(1) review the Department of Transportation's
policies and procedures applicable to official
communication with former employees concerning motor
vehicle safety compliance matters for which they had
responsibility during the last 12 months of their
tenure at the Department, including any limitations on
the ability of such employees to submit comments, or
otherwise communicate directly with the Department, on
motor vehicle safety issues; and
(2) submit a report to the Committee on Commerce,
Science, and Transportation of the Senate and the
Committee on Energy and Commerce of the House of
Representatives that contains the Inspector General's
findings, conclusions, and recommendations for
strengthening those policies and procedures to minimize
the risk of undue influence without compromising the
ability of the Department to employ and retain highly
qualified individuals for such responsibilities.
(b) Post-Employment Policy Study.--
(1) In general.--The Inspector General of the
Department of Transportation shall conduct a study of
the Department's policies relating to post-employment
restrictions on employees who perform functions related
to transportation safety.
(2) Report.--Not later than 1 year after the date
of enactment of this Act, the Inspector General shall
submit a report containing the results of the study
conducted under paragraph (1) to--
(A) the Committee on Commerce, Science, and
Transportation of the Senate;
(B) the Committee on Energy and Commerce of
the House of Representatives; and
(C) the Secretary of Transportation.
(3) Use of results.--The Secretary of
Transportation shall review the results of the study
conducted under paragraph (1) and take whatever action
the Secretary determines to be appropriate.
SEC. 31309. STUDY OF CRASH DATA COLLECTION.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit a report to
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House of
Representatives regarding the quality of data collected through
the National Automotive Sampling System, including the Special
Crash Investigations Program.
(b) Review.--The Administrator of the National Highway
Traffic Safety Administration (referred to in this section as
the ``Administration'') shall conduct a comprehensive review of
the data elements collected from each crash to determine if
additional data should be collected. The review under this
subsection shall include input from interested parties,
including suppliers, automakers, safety advocates, the medical
community, and research organizations.
(c) Contents.--The report issued under this section shall
include--
(1) the analysis and conclusions the Administration
can reach from the amount of motor vehicle crash data
collected in a given year;
(2) the additional analysis and conclusions the
Administration could reach if more crash investigations
were conducted each year;
(3) the number of investigations per year that
would allow for optimal data analysis and crash
information;
(4) the results of the comprehensive review
conducted pursuant to subsection (b);
(5) the incremental costs of collecting and
analyzing additional data, as well as data from
additional crashes;
(6) the potential for obtaining private funding for
all or a portion of the costs under paragraph (5);
(7) the potential for recovering any additional
costs from high volume users of the data, while
continuing to make the data available to the general
public free of charge;
(8) the advantages or disadvantages of expanding
collection of non-crash data instead of crash data;
(9) recommendations for improvements to the
Administration's data collection program; and
(10) the resources needed by the Administration to
implement such recommendations.
SEC. 31310. UPDATE MEANS OF PROVIDING NOTIFICATION; IMPROVING EFFICACY
OF RECALLS.
(a) Update of Means of Providing Notification.--Section
30119(d) of title 49, United States Code, is amended--
(1) in paragraph (1), by striking ``by first class
mail'' and inserting ``in the manner prescribed by the
Secretary, by regulation'';
(2) in paragraph (2)--
(A) by striking ``(except a tire) shall be
sent by first class mail'' and inserting
``shall be sent in the manner prescribed by the
Secretary, by regulation,''; and
(B) by striking the second sentence;
(3) in paragraph (3)--
(A) by striking the first sentence;
(B) by inserting ``to the notification
required under paragraphs (1) and (2)'' after
``addition''; and
(C) by inserting ``by the manufacturer''
after ``given''; and
(4) in paragraph (4), by striking ``by certified
mail or quicker means if available'' and inserting ``in
the manner prescribed by the Secretary, by
regulation''.
(b) Improving Efficacy of Recalls.--Section 30119(e) of
title 49, United States Code, is amended--
(1) in the subsection heading, by striking
``Second'' and inserting ``Additional'';
(2) by striking ``If the Secretary'' and inserting
the following:
``(1) Second notification.--If the Secretary''; and
(3) by adding at the end the following:
``(2) Additional notifications.--If the Secretary
determines, after taking into account the severity of
the defect or noncompliance, that the second
notification by a manufacturer does not result in an
adequate number of motor vehicles or items of
replacement equipment being returned for remedy, the
Secretary may order the manufacturer--
``(A)(i) to send additional notifications
in the manner prescribed by the Secretary, by
regulation; or
``(ii) to take additional steps to locate
and notify each person registered under State
law as the owner or lessee or the most recent
purchaser or lessee, as appropriate; and
``(B) to emphasize the magnitude of the
safety risk caused by the defect or
noncompliance in such notification.''.
SEC. 31311. EXPANDING CHOICES OF REMEDY AVAILABLE TO MANUFACTURERS OF
REPLACEMENT EQUIPMENT.
Section 30120 of title 49, United States Code, is amended--
(1) in subsection (a)(1), by amending subparagraph
(B) to read as follows:
``(B) if replacement equipment, by
repairing the equipment, replacing the
equipment with identical or reasonably
equivalent equipment, or by refunding the
purchase price.'';
(2) in the heading of subsection (i), by adding
``of New Vehicles or Equipment'' at the end; and
(3) in the heading of subsection (j), by striking
``replaced'' and inserting ``replacement''.
SEC. 31312. RECALL OBLIGATIONS AND BANKRUPTCY OF MANUFACTURER.
(a) In General.--Chapter 301 of title 49, United States
Code, is amended by inserting the following after section
30120:
``Sec. 30120A. Recall obligations and bankruptcy of a manufacturer
``A manufacturer's filing of a petition in bankruptcy under
chapter 11 of title 11, does not negate the manufacturer's duty
to comply with section 30112 or sections 30115 through 30120 of
this title. In any bankruptcy proceeding, the manufacturer's
obligations under such sections shall be treated as a claim of
the United States Government against such manufacturer, subject
to subchapter II of chapter 37 of title 31, United States Code,
and given priority pursuant to section 3713(a)(1)(A) of such
chapter, notwithstanding section 3713(a)(2), to ensure that
consumers are adequately protected from any safety defect or
noncompliance determined to exist in the manufacturer's
products. This section shall apply equally to actions of a
manufacturer taken before or after the filing of a petition in
bankruptcy.''.
(b) Conforming Amendment.--The chapter analysis of chapter
301 of title 49, United States Code, is amended by inserting
after the item relating to section 30120 the following:
``30120A. Recall obligations and bankruptcy of a manufacturer.''.
SEC. 31313. REPEAL OF INSURANCE REPORTS AND INFORMATION PROVISION.
Chapter 331 of title 49, United States Code, is amended--
(1) in the chapter analysis, by striking the item
relating to section 33112; and
(2) by striking section 33112.
SEC. 31314. MONRONEY STICKER TO PERMIT ADDITIONAL SAFETY RATING
CATEGORIES.
Section 3(g)(2) of the Automobile Information Disclosure
Act (15 U.S.C. 1232(g)(2)), is amended by inserting ``safety
rating categories that may include'' after ``refers to''.
Subtitle D--Vehicle Electronics and Safety Standards
SEC. 31401. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ELECTRONICS,
SOFTWARE, AND ENGINEERING EXPERTISE.
(a) Council for Vehicle Electronics, Vehicle Software, and
Emerging Technologies.--
(1) In general.--The Secretary shall establish,
within the National Highway Traffic Safety
Administration, a Council for Vehicle Electronics,
Vehicle Software, and Emerging Technologies (referred
to in this section as the ``Council'') to build,
integrate, and aggregate the Administration's expertise
in passenger motor vehicle electronics and other new
and emerging technologies.
(2) Implementation of roadmap.--The Council shall
research the inclusion of emerging lightweight plastic
and composite technologies in motor vehicles to
increase fuel efficiency, lower emissions, meet fuel
economy standards, and enhance passenger motor vehicle
safety through continued utilization of the
Administration's Plastic and Composite Intensive
Vehicle Safety Roadmap (Report No. DOT HS 810 863).
(3) Intra-agency coordination.--The Council shall
coordinate with all components of the Administration
responsible for vehicle safety, including research and
development, rulemaking, and defects investigation.
(b) Honors Recruitment Program.--
(1) Establishment.--The Secretary shall establish,
within the National Highway Traffic Safety
Administration, an honors program for engineering
students, computer science students, and other students
interested in vehicle safety that will enable such
students to train with engineers and other safety
officials for careers in vehicle safety.
(2) Stipend.--The Secretary is authorized to
provide a stipend to any student during the student's
participation in the program established under
paragraph (1).
(c) Assessment.--The Council, in consultation with affected
stakeholders, shall periodically assess the implications of
emerging safety technologies in passenger motor vehicles,
including the effect of such technologies on consumers, product
availability, and cost.
SEC. 31402. ELECTRONIC SYSTEMS PERFORMANCE.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall complete an
examination of the need for safety standards with regard to
electronic systems in passenger motor vehicles. In conducting
this examination, the Secretary shall--
(1) consider the electronic components, the
interaction of electronic components, the security
needs for those electronic systems to prevent
unauthorized access, and the effect of surrounding
environments on the electronic systems; and
(2) allow for public comment.
(b) Report.--Upon completion of the examination under
subsection (a), the Secretary shall submit a report on the
highest priority areas for safety with regard to the electronic
systems to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and
Commerce of the House of Representatives.
Subtitle E--Child Safety Standards
SEC. 31501. CHILD SAFETY SEATS.
(a) Side Impact Crashes.--Not later than 2 years after the
date of enactment of this Act, the Secretary shall issue a
final rule amending Federal Motor Vehicle Safety Standard
Number 213 to improve the protection of children seated in
child restraint systems during side impact crashes.
(b) Frontal Impact Test Parameters.--
(1) Commencement.--Not later than 2 years after the
date of enactment of this Act, the Secretary shall
commence a rulemaking proceeding to amend the standard
seat assembly specifications under Federal Motor
Vehicle Safety Standard Number 213 to better simulate a
single representative motor vehicle rear seat.
(2) Final rule.--Not later than 4 years after the
date of enactment of this Act, the Secretary shall
issue a final rule pursuant to paragraph (1).
SEC. 31502. CHILD RESTRAINT ANCHORAGE SYSTEMS.
(a) Initiation of Rulemaking Proceeding.--Not later than 1
year after the date of enactment of this Act, the Secretary
shall initiate a rulemaking proceeding to amend Federal Motor
Vehicle Safety Standard Number 225 (relating to child restraint
anchorage systems) to improve the ease of use for lower
anchorages and tethers in all rear seat seating positions if
such anchorages and tethers are feasible.
(b) Final Rule.--
(1) In general.--Except as provided under paragraph
(2) and section 31505, the Secretary shall issue a
final rule under subsection (a) not later than 3 years
after the date of enactment of this Act.
(2) Report.--If the Secretary determines that an
amendment to the standard referred to in subsection (a)
does not meet the requirements and considerations set
forth in subsections (a) and (b) of section 30111 of
title 49, United States Code, the Secretary shall
submit a report describing the reasons for not
prescribing such a standard to--
(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
(B) the Committee on Energy and Commerce of
the House of Representatives.
SEC. 31503. REAR SEAT BELT REMINDERS.
(a) Initiation of Rulemaking Proceeding.--Not later than 2
years after the date of enactment of this Act, the Secretary
shall initiate a rulemaking proceeding to amend Federal Motor
Vehicle Safety Standard Number 208 (relating to occupant crash
protection) to provide a safety belt use warning system for
designated seating positions in the rear seat.
(b) Final Rule.--
(1) In general.--Except as provided under paragraph
(2) and section 31505, the Secretary shall issue a
final rule under subsection (a) not later than 3 years
after the date of enactment of this Act.
(2) Report.--If the Secretary determines that an
amendment to the standard referred to in subsection (a)
does not meet the requirements and considerations set
forth in subsections (a) and (b) of section 30111 of
title 49, United States Code, the Secretary shall
submit a report describing the reasons for not
prescribing such a standard to--
(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
(B) the Committee on Energy and Commerce of
the House of Representatives.
SEC. 31504. UNATTENDED PASSENGER REMINDERS.
(a) Safety Research Initiative.--The Secretary may initiate
research into effective ways to minimize the risk of
hyperthermia or hypothermia to children or other unattended
passengers in rear seating positions.
(b) Research Areas.--In carrying out subsection (a), the
Secretary may conduct research into the potential viability
of--
(1) vehicle technology to provide an alert that a
child or unattended passenger remains in a rear seating
position after the vehicle motor is disengaged; or
(2) public awareness campaigns to educate drivers
on the risks of leaving a child or unattended passenger
in a vehicle after the vehicle motor is disengaged; or
(3) other ways to mitigate risk.
(c) Coordination With Other Agencies.--The Secretary may
collaborate with other Federal agencies in conducting the
research under this section.
SEC. 31505. NEW DEADLINE.
If the Secretary determines that any deadline for issuing a
final rule under this Act cannot be met, the Secretary shall--
(1) provide the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Energy and Commerce of the House of Representatives
with an explanation for why such deadline cannot be
met; and
(2) establish a new deadline for that rule.
Subtitle F--Improved Daytime and Nighttime Visibility of Agricultural
Equipment
SEC. 31601. RULEMAKING ON VISIBILITY OF AGRICULTURAL EQUIPMENT.
(a) Definitions.--In this section:
(1) Agricultural equipment.--The term
``agricultural equipment'' has the meaning given the
term ``agricultural field equipment'' in ASABE Standard
390.4, entitled ``Definitions and Classifications of
Agricultural Field Equipment'', which was published in
January 2005 by the American Society of Agriculture and
Biological Engineers, or any successor standard.
(2) Public road.--The term ``public road'' has the
meaning given the term in section 101(a)(27) of title
23, United States Code.
(b) Rulemaking.--
(1) In general.--Not later than 2 years after the
date of enactment of this Act, the Secretary of
Transportation, after consultation with representatives
of the American Society of Agricultural and Biological
Engineers and appropriate Federal agencies, and with
other appropriate persons, shall promulgate a rule to
improve the daytime and nighttime visibility of
agricultural equipment that may be operated on a public
road.
(2) Minimum standards.--The rule promulgated
pursuant to this subsection shall--
(A) establish minimum lighting and marking
standards for applicable agricultural equipment
manufactured at least 1 year after the date on
which such rule is promulgated; and
(B) provide for the methods, materials,
specifications, and equipment to be employed to
comply with such standards, which shall be
equivalent to ASABE Standard 279.14, entitled
``Lighting and Marking of Agricultural
Equipment on Highways'', which was published in
July 2008 by the American Society of
Agricultural and Biological Engineers, or any
successor standard.
(c) Review.--Not less frequently than once every 5 years,
the Secretary of Transportation shall--
(1) review the standards established pursuant to
subsection (b); and
(2) revise such standards to reflect the revision
of ASABE Standard 279 that is in effect at the time of
such review.
(d) Limitations.--
(1) Compliance with successor standards.--Any rule
promulgated pursuant to this section may not prohibit
the operation on public roads of agricultural equipment
that is equipped in accordance with any adopted
revision of ASABE Standard 279 that is later than the
revision of such standard that was referenced during
the promulgation of the rule.
(2) No retrofitting required.--Any rule promulgated
pursuant to this section may not require the
retrofitting of agricultural equipment that was
manufactured before the date on which the lighting and
marking standards are enforceable under subsection
(b)(2)(A).
(3) No effect on additional materials and
equipment.--Any rule promulgated pursuant to this
section may not prohibit the operation on public roads
of agricultural equipment that is equipped with
materials or equipment that are in addition to the
minimum materials and equipment specified in the
standard upon which such rule is based.
TITLE II--COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012
SEC. 32001. SHORT TITLE.
This title may be cited as the ``Commercial Motor Vehicle
Safety Enhancement Act of 2012''.
SEC. 32002. REFERENCES TO TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or a repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of title 49, United States Code.
Subtitle A--Commercial Motor Vehicle Registration
SEC. 32101. REGISTRATION OF MOTOR CARRIERS.
(a) Registration Requirements.--Section 13902(a)(1) is
amended to read as follows:
``(1) In general.--Except as otherwise provided in
this section, the Secretary of Transportation shall
register a person to provide transportation subject to
jurisdiction under subchapter I of chapter 135 as a
motor carrier only if the Secretary determines that the
person--
``(A) is willing and able to comply with--
``(i) this part and the applicable
regulations of the Secretary and the
Board;
``(ii) any safety regulations
imposed by the Secretary;
``(iii) the duties of employers and
employees established by the Secretary
under section 31135;
``(iv) the safety fitness
requirements established by the
Secretary under section 31144;
``(v) the accessibility
requirements established by the
Secretary under subpart H of part 37 of
title 49, Code of Federal Regulations
(or successor regulations), for
transportation provided by an over-the-
road bus; and
``(vi) the minimum financial
responsibility requirements established
by the Secretary under sections 13906,
31138, and 31139;
``(B) has been issued a USDOT number under
section 31134;
``(C) has disclosed any relationship
involving common ownership, common management,
common control, or common familial relationship
between that person and any other motor
carrier, freight forwarder, or broker, or any
other applicant for motor carrier, freight
forwarder, or broker registration, if the
relationship occurred in the 3-year period
preceding the date of the filing of the
application for registration; and
``(D) after the Secretary establishes a
written proficiency examination pursuant to
section 32101(b) of the Commercial Motor
Vehicle Safety Enhancement Act of 2012, has
passed the written proficiency examination.''.
(b) Written Proficiency Examination.--
Not later than 18 months after the date of
enactment of this Act, the Secretary shall establish
through a rulemaking a written proficiency examination
for applicant motor carriers pursuant to section
13902(a)(1)(D) of title 49, United States Code. The
written proficiency examination shall test a person's
knowledge of applicable safety regulations, standards,
and orders of the Federal government.
(c) Conforming Amendment.--Section 210(b) of the Motor
Carrier Safety Improvement Act of 1999 (49 U.S.C. 31144 note)
is amended--
(1) by inserting ``, commercial regulations, and
provisions of subpart H of part 37 of title 49, Code of
Federal Regulations, or successor regulations'' after
``applicable safety regulations''; and
(2) by striking ``consider the establishment of''
and inserting ``establish''.
(d) Transportation of Agricultural Commodities and Farm
Supplies.--Section 229(a)(1) of the Motor Carrier Safety
Improvement Act of 1999 (49 U.S.C. 31136 note) is amended to
read as follows:
``(1) Transportation of agricultural commodities
and farm supplies.--Regulations prescribed by the
Secretary under sections 31136 and 31502 regarding
maximum driving and on-duty time for drivers used by
motor carriers shall not apply during planting and
harvest periods, as determined by each State, to--
``(A) drivers transporting agricultural
commodities from the source of the agricultural
commodities to a location within a 150 air-mile
radius from the source;
``(B) drivers transporting farm supplies
for agricultural purposes from a wholesale or
retail distribution point of the farm supplies
to a farm or other location where the farm
supplies are intended to be used within a 150
air-mile radius from the distribution point; or
``(C) drivers transporting farm supplies
for agricultural purposes from a wholesale
distribution point of the farm supplies to a
retail distribution point of the farm supplies
within a 150 air-mile radius from the wholesale
distribution point.''.
SEC. 32102. SAFETY FITNESS OF NEW OPERATORS.
(a) Safety Reviews of New Operators.--Section 31144(g)(1)
is amended to read as follows:
``(1) Safety review.--
``(A) In general.--Except as provided under
subparagraph (B), the Secretary shall require,
by regulation, each owner and each operator
granted new registration under section 13902 or
31134 to undergo a safety review not later than
12 months after the owner or operator, as the
case may be, begins operations under such
registration.
``(B) Providers of motorcoach services.--
The Secretary shall require, by regulation,
each owner and each operator granted new
registration to transport passengers under
section 13902 or 31134 to undergo a safety
review not later than 120 days after the owner
or operator, as the case may be, begins
operations under such registration.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect 1 year after the date of enactment of this
Act.
SEC. 32103. REINCARNATED CARRIERS.
(a) Effective Periods of Registration.--
(1) Suspensions, amendments, and revocations.--
Section 13905(d) is amended--
(A) by redesignating paragraph (2) as
paragraph (4);
(B) by striking paragraph (1) and inserting
the following:
``(1) Applications.--On application of the
registrant, the Secretary may amend or revoke a
registration.
``(2) Complaints and actions on secretary's own
initiative.--On complaint or on the Secretary's own
initiative and after notice and an opportunity for a
proceeding, the Secretary may--
``(A) suspend, amend, or revoke any part of
the registration of a motor carrier, broker, or
freight forwarder for willful failure to comply
with--
``(i) this part;
``(ii) an applicable regulation or
order of the Secretary or the Board,
including the accessibility
requirements established by the
Secretary under subpart H of part 37 of
title 49, Code of Federal Regulations
(or successor regulations), for
transportation provided by an over-the-
road bus; or
``(iii) a condition of its
registration;
``(B) withhold, suspend, amend, or revoke
any part of the registration of a motor
carrier, broker, or freight forwarder for
failure--
``(i) to pay a civil penalty
imposed under chapter 5, 51, 149, or
311;
``(ii) to arrange and abide by an
acceptable payment plan for such civil
penalty, not later than 90 days after
the date specified by order of the
Secretary for the payment of such
penalty; or
``(iii) for failure to obey a
subpoena issued by the Secretary;
``(C) withhold, suspend, amend, or revoke
any part of a registration of a motor carrier,
broker, or freight forwarder following a
determination by the Secretary that the motor
carrier, broker, or freight forwarder failed to
disclose, in its application for registration,
a material fact relevant to its willingness and
ability to comply with--
``(i) this part;
``(ii) an applicable regulation or
order of the Secretary or the Board; or
``(iii) a condition of its
registration; or
``(D) withhold, suspend, amend, or revoke
any part of a registration of a motor carrier,
broker, or freight forwarder if the Secretary
finds that--
``(i) the motor carrier, broker, or
freight forwarder does not disclose any
relationship through common ownership,
common management, common control, or
common familial relationship to any
other motor carrier, broker, or freight
forwarder, or any other applicant for
motor carrier, broker, or freight
forwarder registration that the
Secretary determines is or was
unwilling or unable to comply with the
relevant requirements listed in section
13902, 13903, or 13904
``(3) Limitation.--Paragraph (2)(B) shall not apply
to a person who is unable to pay a civil penalty
because the person is a debtor in a case under chapter
11 of title 11.''; and
(C) in paragraph (4), as redesignated by
section 32103(a)(1)(A) of this Act, by striking
``paragraph (1)(B)'' and inserting ``paragraph
(2)(B)''.
(2) Procedure.--Section 13905(e) is amended by
inserting ``or if the Secretary determines that the
registrant failed to disclose a material fact in an
application for registration in accordance with
subsection (d)(2)(C),'' after ``registrant,''.
(b) Information Systems.--Section 31106(a)(3) is amended--
(1) in subparagraph (F), by striking ``and'' at the
end;
(2) in subparagraph (G), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(H) determine whether a person or
employer is or was related, through common
ownership, common management, common control,
or common familial relationship, to any other
person, employer, or any other applicant for
registration under section 13902 or 31134.''.
SEC. 32104. FINANCIAL RESPONSIBILITY REQUIREMENTS.
Not later than 6 months after the date of enactment of this
Act, and every 4 years thereafter, the Secretary shall--
(1) issue a report on the appropriateness of--
(A) the current minimum financial
responsibility requirements under sections
31138 and 31139 of title 49, United States
Code; and
(B) the current bond and insurance
requirements under sections 13904(f), 13903,
and 13906 of title 49, United States Code; and
(2) submit the report issued under paragraph (1) to
the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives.
SEC. 32105. USDOT NUMBER REGISTRATION REQUIREMENT.
(a) In General.--Chapter 311 is amended by inserting after
section 31133 the following:
``Sec. 31134. Requirement for registration and USDOT number
``(a) In General.--Upon application, and subject to
subsections (b) and (c), the Secretary shall register an
employer or person subject to the safety jurisdiction of this
subchapter. An employer or person may operate a commercial
motor vehicle in interstate commerce only if the employer or
person is registered by the Secretary under this section and
receives a USDOT number. Nothing in this section shall preclude
registration by the Secretary of an employer or person not
engaged in interstate commerce. An employer or person subject
to jurisdiction under subchapter I of chapter 135 of this title
shall apply for commercial registration under section 13902 of
this title.
``(b) Withholding Registration.--The Secretary shall
register an employer or person under subsection (a) only if the
Secretary determines that--
``(1) the employer or person seeking registration
is willing and able to comply with the requirements of
this subchapter and the regulations prescribed
thereunder and chapter 51 and the regulations
prescribed thereunder;
``(2)(A) during the 3-year period before the date
of the filing of the application, the employer or
person is not or was not related through common
ownership, common management, common control, or common
familial relationship to any other person or applicant
for registration subject to this subchapter who, during
such 3-year period, is or was unfit, unwilling, or
unable to comply with the requirements listed in
subsection (b)(1); or
``(B) the employer or person has disclosed to the
Secretary any relationship involving common ownership,
common management, common control, or common familial
relationship to any other person or applicant for
registration subject to this subchapter.
``(c) Revocation or Suspension of Registration.--The
Secretary shall revoke the registration of an employer or
person issued under subsection (a) after notice and an
opportunity for a proceeding, or suspend the registration after
giving notice of the suspension to the employer or person, if
the Secretary determines that--
``(1) the employer's or person's authority to
operate pursuant to chapter 139 of this title is
subject to revocation or suspension under sections
13905(d)(1) or 13905(f) of this title;
``(2) the employer or person has knowingly failed
to comply with the requirements listed in subsection
(b)(1);
``(3) the employer or person has not disclosed any
relationship through common ownership, common
management, common control, or common familial
relationship to any other person or applicant for
registration subject to this subchapter that the
Secretary determines is or was unfit, unwilling, or
unable to comply with the requirements listed in
subsection (b)(1);
``(4) the employer or person refused to submit to
the safety review required by section 31144(g) of this
title.
``(d) Periodic Registration Update.--The Secretary may
require an employer to update a registration under this section
not later than 30 days after a change in the employer's
address, other contact information, officers, process agent, or
other essential information, as determined by the Secretary.
``(e) State Authority.--Nothing in this section shall be
construed as affecting the authority of a State to issue a
Department of Transportation number under State law to a person
operating in intrastate commerce.''.
(b) Conforming Amendment.--The analysis of chapter 311 is
amended by inserting after the item relating to section 31133
the following:
``31134. Requirement for registration and USDOT number.''.
SEC. 32106. REGISTRATION FEE SYSTEM.
Section 13908(d)(1) is amended by striking ``but shall not
exceed $300''.
SEC. 32107. REGISTRATION UPDATE.
(a) Motor Carrier Update.--Section 13902 is amended by
adding at the end the following:
``(h) Update of Registration.--
``(1) In general.--The Secretary shall require a
registrant to update its registration under this
section not later than 30 days after a change in the
registrant's address, other contact information,
officers, process agent, or other essential
information, as determined by the Secretary.
``(2) Motor carriers of passengers.--In addition to
the requirements of paragraph (1), the Secretary shall
require a motor carrier of passengers to update its
registration information, including numbers of
vehicles, annual mileage, and individuals responsible
for compliance with Federal safety regulations
quarterly for the first 2 years after being issued a
registration under this section.''.
(b) Freight Forwarder Update.--Section 13903 is amended by
adding at the end the following:
``(c) Update of Registration.--The Secretary shall require
a freight forwarder to update its registration under this
section not later than 30 days after a change in the freight
forwarder's address, other contact information, officers,
process agent, or other essential information, as determined by
the Secretary.''.
(c) Broker Update.--Section 13904 is amended by adding at
the end the following:
``(e) Update of Registration.--The Secretary shall require
a broker to update its registration under this section not
later than 30 days after a change in the broker's address,
other contact information, officers, process agent, or other
essential information, as determined by the Secretary.''.
SEC. 32108. INCREASED PENALTIES FOR OPERATING WITHOUT REGISTRATION.
(a) Penalties.--Section 14901(a) is amended--
(1) by striking ``$500'' and inserting ``$1,000'';
(2) by striking ``who is not registered under this
part to provide transportation of passengers,'';
(3) by striking ``with respect to providing
transportation of passengers,'' and inserting ``or
section 13902(c) of this title,''; and
(4) by striking ``$2,000 for each violation and
each additional day the violation continues'' and
inserting ``$10,000 for each violation, or $25,000 for
each violation relating to providing transportation of
passengers''.
(b) Transportation of Hazardous Wastes.--Section 14901(b)
is amended by striking ``not to exceed $20,000'' and inserting
``not less than $20,000, but not to exceed $40,000''.
SEC. 32109. REVOCATION OF REGISTRATION FOR IMMINENT HAZARD.
Section 13905(f)(2) is amended to read as follows:
``(2) Imminent hazard to public health.--
Notwithstanding subchapter II of chapter 5 of title 5,
the Secretary shall revoke the registration of a motor
carrier if the Secretary finds that the carrier is or
was conducting unsafe operations that are or were an
imminent hazard to public health or property.''.
SEC. 32110. REVOCATION OF REGISTRATION AND OTHER PENALTIES FOR FAILURE
TO RESPOND TO SUBPOENA.
Section 525 is amended--
(1) by striking ``subpenas'' in the section heading
and inserting ``subpoenas'';
(2) by striking ``subpena'' and inserting
``subpoena'';
(3) by striking ``$100'' and inserting ``$1,000'';
(4) by striking ``$5,000'' and inserting
``$10,000''; and
(5) by adding at the end the following:
``The Secretary may withhold, suspend, amend, or revoke any
part of the registration of a person required to register under
chapter 139 for failing to obey a subpoena or requirement of
the Secretary under this chapter to appear and testify or
produce records.''.
SEC. 32111. FLEETWIDE OUT OF SERVICE ORDER FOR OPERATING WITHOUT
REQUIRED REGISTRATION.
Section 13902(e)(1) is amended--
(1) by striking ``motor vehicle'' and inserting
``motor carrier'' after ``the Secretary determines that
a''; and
(2) by striking ``order the vehicle'' and inserting
``order the motor carrier operations'' after ``the
Secretary may''.
SEC. 32112. MOTOR CARRIER AND OFFICER PATTERNS OF SAFETY VIOLATIONS.
Section 31135 is amended--
(1) by striking subsection (b) and inserting the
following:
``(b) Noncompliance.--
``(1) Motor carriers.--Two or more motor carriers,
employers, or persons shall not use common ownership,
common management, common control, or common familial
relationship to enable any or all such motor carriers,
employers, or persons to avoid compliance, or mask or
otherwise conceal non-compliance, or a history of non-
compliance, with regulations prescribed under this
subchapter or an order of the Secretary issued under
this subchapter.
``(2) Pattern.--If the Secretary finds that a motor
carrier, employer, or person engaged in a pattern or
practice of avoiding compliance, or masking or
otherwise concealing noncompliance, with regulations
prescribed under this subchapter, the Secretary--
``(A) may withhold, suspend, amend, or
revoke any part of the motor carrier's,
employer's, or person's registration in
accordance with section 13905 or 31134; and
``(B) shall take into account such non-
compliance for purposes of determining civil
penalty amounts under section 521(b)(2)(D).
``(3) Officers.--If the Secretary finds, after
notice and an opportunity for proceeding, that an
officer of a motor carrier, employer, or owner or
operator has engaged in a pattern or practice of, or
assisted a motor carrier, employer, or owner or
operator in avoiding compliance, or masking or
otherwise concealing noncompliance, while serving as an
officer or such motor carrier, employer, or owner or
operator, the Secretary may suspend, amend, or revoke
any part of a registration granted to the officer
individually under section 13902 or 31134.''.
Subtitle B--Commercial Motor Vehicle Safety
SEC. 32201. CRASHWORTHINESS STANDARDS.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall conduct a
comprehensive analysis on the need for crashworthiness
standards on property-carrying commercial motor vehicles with a
gross vehicle weight rating or gross vehicle weight of at least
26,001 pounds involved in interstate commerce, including an
evaluation of the need for roof strength, pillar strength, air
bags, and other occupant protections standards, and frontal and
back wall standards.
(b) Report.--Not later than 90 days after completing the
comprehensive analysis under subsection (a), the Secretary
shall report the results of the analysis and any
recommendations to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
SEC. 32202. CANADIAN SAFETY RATING RECIPROCITY.
Section 31144 is amended by adding at the end the
following:
``(h) Recognition of Canadian Motor Carrier Safety Fitness
Determinations.--
``(1) If an authorized agency of the Canadian
federal government or a Canadian Territorial or
Provincial government determines, by applying the
procedure and standards prescribed by the Secretary
under subsection (b) or pursuant to an agreement under
paragraph (2), that a Canadian employer is unfit and
prohibits the employer from operating a commercial
motor vehicle in Canada or any Canadian Province, the
Secretary may prohibit the employer from operating such
vehicle in interstate and foreign commerce until the
authorized Canadian agency determines that the employer
is fit.
``(2) The Secretary may consult and participate in
negotiations with authorized officials of the Canadian
federal government or a Canadian Territorial or
Provincial government, as necessary, to provide
reciprocal recognition of each country's motor carrier
safety fitness determinations. An agreement shall
provide, to the maximum extent practicable, that each
country will follow the procedure and standards
prescribed by the Secretary under subsection (b) in
making motor carrier safety fitness determinations.''.
SEC. 32203. STATE REPORTING OF FOREIGN COMMERCIAL DRIVER CONVICTIONS.
(a) Definition of Foreign Commercial Driver.--Section 31301
is amended--
(1) by redesignating paragraphs (10) through (14)
as paragraphs (11) through (15), respectively; and
(2) by inserting after paragraph (9) the following:
``(10) `foreign commercial driver' means an
individual licensed to operate a commercial motor
vehicle by an authority outside the United States, or a
citizen of a foreign country who operates a commercial
motor vehicle in the United States.''.
(b) State Reporting of Convictions.--Section 31311(a) is
amended by adding after paragraph (21) the following:
``(22) The State shall report a conviction of a
foreign commercial driver by that State to the Federal
Convictions and Withdrawal Database, or another
information system designated by the Secretary to
record the convictions. A report shall include--
``(A) for a driver holding a foreign
commercial driver's license--
``(i) each conviction relating to
the operation of a commercial motor
vehicle; and
``(ii) each conviction relating to
the operation of a non-commercial motor
vehicle; and
``(B) for an unlicensed driver or a driver
holding a foreign non-commercial driver's
license, each conviction relating to the
operation of a commercial motor vehicle.''.
SEC. 32204. AUTHORITY TO DISQUALIFY FOREIGN COMMERCIAL DRIVERS.
Section 31310 is amended by adding at the end the
following:
``(k) Foreign Commercial Drivers.--A foreign commercial
driver shall be subject to disqualification under this
section.''.
SEC. 32205. REVOCATION OF FOREIGN MOTOR CARRIER OPERATING AUTHORITY FOR
FAILURE TO PAY CIVIL PENALTIES.
Section 13905(d)(2), as amended by section 32103(a) of this
Act, is amended by inserting ``foreign motor carrier, foreign
motor private carrier,'' after ``registration of a motor
carrier,'' each place it appears.
SEC. 32206. RENTAL TRUCK ACCIDENT STUDY.
(a) Definitions.--In this section:
(1) Rental truck.--The term ``rental truck'' means
a motor vehicle with a gross vehicle weight rating of
between 10,000 and 26,000 pounds that is made available
for rental by a rental truck company.
(2) Rental truck company.--The term ``rental truck
company'' means a person or company that is in the
business of renting or leasing rental trucks to the
public or for private use.
(b) Study.--
(1) In general.--The Secretary shall conduct a
study of the safety of rental trucks during the 7-year
period ending on December 31, 2011.
(2) Requirements.--The study conducted under
paragraph (1) shall--
(A) evaluate available data on the number
of crashes, fatalities, and injuries involving
rental trucks and the cause of such crashes,
utilizing police accident reports and other
sources;
(B) estimate the property damage and costs
resulting from a subset of crashes involving
rental truck operations, which the Secretary
believes adequately reflect all crashes
involving rental trucks;
(C) analyze State and local laws regulating
rental truck companies, including safety and
inspection requirements;
(D) assess the rental truck maintenance
programs of a selection of small, medium, and
large rental truck companies, as selected by
the Secretary, including the frequency of
rental truck maintenance inspections, and
compare such programs with inspection
requirements for passenger vehicles and
commercial motor vehicles;
(E) include any other information available
regarding the safety of rental trucks; and
(F) review any other information that the
Secretary determines to be appropriate.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit a report to
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives that contains--
(1) the findings of the study conducted pursuant to
subsection (b); and
(2) any recommendations for legislation that the
Secretary determines to be appropriate.
Subtitle C--Driver Safety
SEC. 32301. HOURS OF SERVICE STUDY AND ELECTRONIC LOGGING DEVICES.
(a) Hours of Service Study.--
(1) Field study.--
(A) In general.--Not later than March 31,
2013, the Secretary shall complete a field
study on the efficacy of the restart rule
published on December 27, 2011 (in this section
referred to as the ``2011 restart rule''),
applicable to operators of commercial motor
vehicles of property subject to maximum driving
time requirements of the Secretary.
(B) Requirement.--The field study shall
expand upon the results of the laboratory-based
study relating to commercial motor vehicle
driver fatigue sponsored by the Federal Motor
Carrier Safety Administration presented in the
report of December 2010 titled ``Investigation
into Motor Carrier Practices to Achieve Optimal
Commercial Motor Vehicle Driver Performance:
Phase I''.
(C) Criteria.--In conducting the field
study, the Secretary shall ensure that--
(i) the methodology for the field
study is consistent, to the maximum
extent possible, with the laboratory-
based study methodology;
(ii) the data collected is
representative of the drivers and motor
carriers regulated by the hours of
service regulations, including those
drivers and carriers affected by the
maximum driving time requirements;
(iii) the analysis is statistically
valid; and
(iv) the field study follows the
plan for the ``Scheduling and Fatigue
Recovery Project'' developed by the
Federal Motor Carrier Safety
Administration.
(D) Report to congress.--Not later than
September 30, 2013, the Secretary shall submit
to the Committee on Transportation and
Infrastructure of the House of Representatives
and the Committee on Commerce, Science, and
Transportation of the Senate a report detailing
the results of the field study.
(b) General Authority.--Section 31137 is amended--
(1) by amending the section heading to read as
follows:
``Sec. 31137. Electronic logging devices and brake maintenance
regulations'';
(2) by redesignating subsection (b) as subsection
(g); and
(3) by amending (a) to read as follows:
``(a) Use of Electronic Logging Devices.--Not later than 1
year after the date of enactment of the Commercial Motor
Vehicle Safety Enhancement Act of 2012, the Secretary of
Transportation shall prescribe regulations--
``(1) requiring a commercial motor vehicle involved
in interstate commerce and operated by a driver subject
to the hours of service and the record of duty status
requirements under part 395 of title 49, Code of
Federal Regulations, be equipped with an electronic
logging device to improve compliance by an operator of
a vehicle with hours of service regulations prescribed
by the Secretary; and
``(2) ensuring that an electronic logging device is
not used to harass a vehicle operator.
``(b) Electronic Logging Device Requirements.--
``(1) In general.--The regulations prescribed under
subsection (a) shall--
``(A) require an electronic logging
device--
``(i) to accurately record
commercial driver hours of service;
``(ii) to record the location of a
commercial motor vehicle;
``(iii) to be tamper resistant; and
``(iv) to be synchronized to the
operation of the vehicle engine or be
capable of recognizing when the vehicle
is being operated;
``(B) allow law enforcement to access the
data contained in the device during a roadside
inspection; and
``(C) apply to a commercial motor vehicle
beginning on the date that is 2 years after the
date that the regulations are published as a
final rule.
``(2) Performance and design standards.--The
regulations prescribed under subsection (a) shall
establish performance standards--
``(A) defining a standardized user
interface to aid vehicle operator compliance
and law enforcement review;
``(B) establishing a secure process for
standardized--
``(i) and unique vehicle operator
identification;
``(ii) data access;
``(iii) data transfer for vehicle
operators between motor vehicles;
``(iv) data storage for a motor
carrier; and
``(v) data transfer and
transportability for law enforcement
officials;
``(C) establishing a standard security
level for an electronic logging device and
related components to be tamper resistant by
using a methodology endorsed by a nationally
recognized standards organization; and
``(D) identifying each driver subject to
the hours of service and record of duty status
requirements under part 395 of title 49, Code
of Federal Regulations.
``(c) Certification Criteria.--
``(1) In general.--The regulations prescribed by
the Secretary under this section shall establish the
criteria and a process for the certification of
electronic logging devices to ensure that the device
meets the performance requirements under this section.
``(2) Effect of noncertification.--Electronic
logging devices that are not certified in accordance
with the certification process referred to in paragraph
(1) shall not be acceptable evidence of hours of
service and record of duty status requirements under
part 395 of title 49, Code of Federal Regulations.
``(d) Additional Considerations.--The Secretary, in
prescribing the regulations described in subsection (a), shall
consider how such regulations may--
``(1) reduce or eliminate requirements for drivers
and motor carriers to retain supporting documentation
associated with paper-based records of duty status if--
``(A) data contained in an electronic
logging device supplants such documentation;
and
``(B) using such data without paper-based
records does not diminish the Secretary's
ability to audit and review compliance with the
Secretary's hours of service regulations; and
``(2) include such measures as the Secretary
determines are necessary to protect the privacy of each
individual whose personal data is contained in an
electronic logging device.
``(e) Use of Data.--
``(1) In general.--The Secretary may utilize
information contained in an electronic logging device
only to enforce the Secretary's motor carrier safety
and related regulations, including record-of-duty
status regulations.
``(2) Measures to preserve confidentiality of
personal data.--The Secretary shall institute
appropriate measures to preserve the confidentiality of
any personal data contained in an electronic logging
device and disclosed in the course of an action taken
by the Secretary or by law enforcement officials to
enforce the regulations referred to in paragraph (1).
``(3) Enforcement.--The Secretary shall institute
appropriate measures to ensure any information
collected by electronic logging devices is used by
enforcement personnel only for the purpose of
determining compliance with hours of service
requirements.
``(f) Definitions.--In this section:
``(1) Electronic logging device.--The term
`electronic logging device' means an electronic device
that--
``(A) is capable of recording a driver's
hours of service and duty status accurately and
automatically; and
``(B) meets the requirements established by
the Secretary through regulation.
``(2) Tamper resistant.--The term `tamper
resistant' means resistant to allowing any individual
to cause an electronic device to record the incorrect
date, time, and location for changes to on-duty driving
status of a commercial motor vehicle operator under
part 395 of title 49, Code of Federal Regulations, or
to subsequently alter the record created by that
device.''.
(c) Civil Penalties.--Section 30165(a)(1) is amended by
striking ``or 30141 through 30147'' and inserting ``30141
through 30147, or 31137''.
(d) Conforming Amendment.--The analysis for chapter 311 is
amended by striking the item relating to section 31137 and
inserting the following:
``31137. Electronic logging devices and brake maintenance
regulations.''.
SEC. 32302. DRIVER MEDICAL QUALIFICATIONS.
(a) Deadline for Establishment of National Registry of
Medical Examiners.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a national
registry of medical examiners in accordance with section
31149(d)(1) of title 49, United States Code.
(b) Examination Requirement for National Registry of
Medical Examiners.--Section 31149(c)(1)(D) is amended to read
as follows:
``(D) not later than 1 year after enactment
of the Commercial Motor Vehicle Safety
Enhancement Act of 2012, develop requirements
for a medical examiner to be listed in the
national registry under this section,
including--
``(i) the completion of specific
courses and materials;
``(ii) certification, including, at
a minimum, self-certification, if the
Secretary determines that self-
certification is necessary for
sufficient participation in the
national registry, to verify that a
medical examiner completed specific
training, including refresher courses,
that the Secretary determines necessary
to be listed in the national registry;
``(iii) an examination that
requires a passing grade; and
``(iv) demonstration of a medical
examiner's willingness to meet the
reporting requirements established by
the Secretary;''.
(c) Additional Oversight of Licensing Authorities.--
(1) In general.--Section 31149(c)(1) is amended--
(A) by amending subparagraph (E) to read as
follows:
``(E) require medical examiners to transmit
electronically, on a monthly basis, the name of
the applicant, a numerical identifier, and
additional information contained on the medical
examiner's certificate for any completed
medical examination report required under
section 391.43 of title 49, Code of Federal
Regulations, to the chief medical examiner;'';
(B) in subparagraph (F), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(G) annually review the implementation of
commercial driver's license requirements by not
fewer than 10 States to assess the accuracy,
validity, and timeliness of--
``(i) the submission of physical
examination reports and medical
certificates to State licensing
agencies; and
``(ii) the processing of the
submissions by State licensing
agencies.''.
(2) Internal oversight policy.--
(A) In general.--Not later than 2 years
after the date of enactment of this Act, the
Secretary shall establish an oversight policy
and procedure to carry out section
31149(c)(1)(G) of title 49, United States Code,
as added by section 32302(c)(1) of this Act.
(B) Effective date.--The amendments made by
section 32303(c)(1) of this Act shall take
effect on the date the oversight policies and
procedures are established pursuant to
subparagraph (A).
(d) Electronic Filing of Medical Examination
Certificates.--Section 31311(a), as amended by sections
32203(b) and 32305(b) of this Act, is amended by adding at the
end the following:
``(25) Not later than 5 years after the date of
enactment of the Commercial Motor Vehicle Safety
Enhancement Act of 2012, the State shall establish and
maintain, as part of its driver information system, the
capability to receive an electronic copy of a medical
examiner's certificate, from a certified medical
examiner, for each holder of a commercial driver's
license issued by the State who operates or intends to
operate in interstate commerce.''.
(e) Funding.--The Secretary is authorized to utilize funds
provided under section 4101(c)(1) of SAFETEA-LU (119 Stat.
1715) to support development of costs of the information
technology needed to carry out section 31311(a)(25) of title
49, United States Code.
SEC. 32303. COMMERCIAL DRIVER'S LICENSE NOTIFICATION SYSTEM.
(a) In General.--Section 31304 is amended--
(1) by striking ``An employer'' and inserting the
following:
``(a) In General.--An employer''; and
(2) by adding at the end the following:
``(b) Driver Violation Records.--
``(1) Periodic review.--Except as provided in
paragraph (3), an employer shall ascertain the driving
record of each driver it employs--
``(A) by making an inquiry at least once
every 12 months to the appropriate State agency
in which the driver held or holds a commercial
driver's license or permit during such time
period;
``(B) by receiving occurrence-based reports
of changes in the status of a driver's record
from 1 or more driver record notification
systems that meet minimum standards issued by
the Secretary; or
``(C) by a combination of inquiries to
States and reports from driver record
notification systems.
``(2) Record keeping.--A copy of the reports
received under paragraph (1) shall be maintained in the
driver's qualification file.
``(3) Exceptions to record review requirement.--
Paragraph (1) shall not apply to a driver employed by
an employer who, in any 7-day period, is employed or
used as a driver by more than 1 employer--
``(A) if the employer obtains the driver's
identification number, type, and issuing State
of the driver's commercial motor vehicle
license; or
``(B) if the information described in
subparagraph (A) is furnished by another
employer and the employer that regularly
employs the driver meets the other requirements
under this section.
``(4) Driver record notification system defined.--
In this section, the term `driver record notification
system' means a system that automatically furnishes an
employer with a report, generated by the appropriate
agency of a State, on the change in the status of an
employee's driver's license due to a conviction for a
moving violation, a failure to appear, an accident,
driver's license suspension, driver's license
revocation, or any other action taken against the
driving privilege.''.
(b) Standards for Driver Record Notification Systems.--Not
later than 1 year after the date of enactment of this Act, the
Secretary shall issue minimum standards for driver notification
systems, including standards for the accuracy, consistency, and
completeness of the information provided.
(c) Plan for National Notification System.--
(1) Development.--Not later than 2 years after the
date of enactment of this Act, the Secretary shall
develop recommendations and a plan for the development
and implementation of a national driver record
notification system, including--
(A) an assessment of the merits of
achieving a national system by expanding the
Commercial Driver's License Information System;
and
(B) an estimate of the fees that an
employer will be charged to offset the
operating costs of the national system.
(2) Submission to congress.--Not later than 90 days
after the recommendations and plan are developed under
paragraph (1), the Secretary shall submit a report on
the recommendations and plan to the Committee on
Commerce, Science, and Transportation of the Senate and
the Committee on Transportation and Infrastructure of
the House of Representatives.
SEC. 32304. COMMERCIAL MOTOR VEHICLE OPERATOR TRAINING.
(a) In General.--Section 31305 is amended by adding at the
end the following:
``(c) Standards for Training.--Not later than 1 year after
the date of enactment of the Commercial Motor Vehicle Safety
Enhancement Act of 2012, the Secretary shall issue final
regulations establishing minimum entry-level training
requirements for an individual operating a commercial motor
vehicle--
``(1) addressing the knowledge and skills that--
``(A) are necessary for an individual
operating a commercial motor vehicle to safely
operate a commercial motor vehicle; and
``(B) must be acquired before obtaining a
commercial driver's license for the first time
or upgrading from one class of commercial
driver's license to another class;
``(2) addressing the specific training needs of a
commercial motor vehicle operator seeking passenger or
hazardous materials endorsements;
``(3) requiring effective instruction to acquire
the knowledge, skills, and training referred to in
paragraphs (1) and (2), including classroom and behind-
the-wheel instruction;
``(4) requiring certification that an individual
operating a commercial motor vehicle meets the
requirements established by the Secretary; and
``(5) requiring a training provider (including a
public or private driving school, motor carrier, or
owner or operator of a commercial motor vehicle) that
offers training that results in the issuance of a
certification to an individual under paragraph (4) to
demonstrate that the training meets the requirements of
the regulations, through a process established by the
Secretary.''.
(b) Commercial Driver's License Uniform Standards.--Section
31308(1) is amended to read as follows:
``(1) an individual issued a commercial driver's
license--
``(A) pass written and driving tests for
the operation of a commercial motor vehicle
that comply with the minimum standards
prescribed by the Secretary under section
31305(a); and
``(B) present certification of completion
of driver training that meets the requirements
established by the Secretary under section
31305(c);''.
(c) Conforming Amendment.--The section heading for section
31305 is amended to read as follows:
``Sec. 31305. General driver fitness, testing, and training''.
(d) Conforming Amendment.--The analysis for chapter 313 is
amended by striking the item relating to section 31305 and
inserting the following:
``31305. General driver fitness, testing, and training.''.
SEC. 32305. COMMERCIAL DRIVER'S LICENSE PROGRAM.
(a) In General.--Section 31309 is amended--
(1) in subsection (e)(4), by amending subparagraph
(A) to read as follows:
``(A) In general.--The plan shall specify--
``(i) a date by which all States
shall be operating commercial driver's
license information systems that are
compatible with the modernized
information system under this section;
and
``(ii) that States must use the
systems to receive and submit
conviction and disqualification
data.''; and
(2) in subsection (f), by striking ``use'' and
inserting ``use, subject to section 31313(a),''.
(b) Requirements for State Participation.--Section 31311 is
amended--
(1) in subsection (a), as amended by section
32203(b) of this Act--
(A) in paragraph (5), by striking ``At
least'' and all that follows through
``regulation),'' and inserting: ``Not later
than the time period prescribed by the
Secretary by regulation,''; and
(B) by adding at the end the following:
``(23) Not later than 1 year after the date of
enactment of the Commercial Motor Vehicle Safety
Enhancement Act of 2012, the State shall implement a
system and practices for the exclusive electronic
exchange of driver history record information on the
system the Secretary maintains under section 31309,
including the posting of convictions, withdrawals, and
disqualifications.
``(24) Before renewing or issuing a commercial
driver's license to an individual, the State shall
request information pertaining to the individual from
the drug and alcohol clearinghouse maintained under
section 31306a.''; and
(2) by adding at the end the following:
``(d) State Commercial Driver's License Program Plan.--
``(1) In general.--A State shall submit a plan to
the Secretary for complying with the requirements under
this section during the period beginning on the date
the plan is submitted and ending on September 30, 2016.
``(2) Contents.--A plan submitted by a State under
paragraph (1) shall identify--
``(A) the actions that the State will take
to address any deficiencies in the State's
commercial driver's license program, as
identified by the Secretary in the most recent
audit of the program; and
``(B) other actions that the State will
take to comply with the requirements under
subsection (a).
``(3) Priority.--
``(A) Implementation schedule.--A plan
submitted by a State under paragraph (1) shall
include a schedule for the implementation of
the actions identified under paragraph (2). In
establishing the schedule, the State shall
prioritize actions to address any deficiencies
highlighted by the Secretary as critical in the
most recent audit of the program.
``(B) Deadline for compliance with
requirements.--A plan submitted by a State
under paragraph (1) shall include assurances
that the State will take the necessary actions
to comply with the requirements of subsection
(a) not later than September 30, 2015.
``(4) Approval and disapproval.--The Secretary
shall--
``(A) review each plan submitted under
paragraph (1);
``(B)(i) approve a plan if the Secretary
determines that the plan meets the requirements
under this subsection and promotes the goals of
this chapter; and
``(ii) disapprove a plan that the Secretary
determines does not meet the requirements or
does not promote the goals.
``(5) Modification of disapproved plans.--If the
Secretary disapproves a plan under paragraph (4), the
Secretary shall--
``(A) provide a written explanation of the
disapproval to the State; and
``(B) allow the State to modify the plan
and resubmit it for approval.
``(6) Plan updates.--The Secretary may require a
State to review and update a plan, as appropriate.
``(e) Annual Comparison of State Levels of Compliance.--The
Secretary shall annually--
``(1) compare the relative levels of compliance by
States with the requirements under subsection (a); and
``(2) make the results of the comparison available
to the public.''.
SEC. 32306. COMMERCIAL MOTOR VEHICLE DRIVER INFORMATION SYSTEMS.
Section 31106(c) is amended--
(1) by striking the heading and inserting ``(1) In
General.'';
(2) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D); and
(3) by adding at the end the following:
``(2) Access to records.--The Secretary may require
a State, as a condition of an award of grant money
under this section, to provide the Secretary access to
all State licensing status and driver history records
via an electronic information system, subject to
section 2721 of title 18.''.
SEC. 32307. EMPLOYER RESPONSIBILITIES.
Section 31304, as amended by section 32303 of this Act, is
amended in subsection (a)--
(1) by striking ``knowingly''; and
(2) by striking ``in which'' and inserting ``that
the employer knows or should reasonably know that''.
SEC. 32308. PROGRAM TO ASSIST VETERANS TO ACQUIRE COMMERCIAL DRIVER'S
LICENSES.
(a) Study.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary, in
coordination with the Secretary of Defense, and in
consultation with the States and other relevant
stakeholders, shall commence a study to assess Federal
and State regulatory, economic, and administrative
challenges faced by members and former members of the
Armed Forces, who received safety training and operated
qualifying motor vehicles during their service, in
obtaining commercial driver's licenses (as defined in
section 31301(3) of title 49, United States Code).
(2) Requirements.--The study under this subsection
shall--
(A) identify written and behind-the-wheel
safety training, qualification standards,
knowledge and skills tests, or other operating
experience members of the Armed Forces must
meet that satisfy the minimum standards
prescribed by the Secretary of Transportation
for the operation of commercial motor vehicles
under section 31305 of title 49, United States
Code;
(B) compare the alcohol and controlled
substances testing requirements for members of
the Armed Forces with those required for
holders of a commercial driver's license;
(C) evaluate the cause of delays in
reviewing applications for commercial driver's
licenses of members and former members of the
Armed Forces;
(D) identify duplicative application costs;
(E) identify residency, domicile, training
and testing requirements, and other safety or
health assessments that affect or delay the
issuance of commercial driver's licenses to
members and former members of the Armed Forces;
and
(F) include other factors that the
Secretary determines to be appropriate to meet
the requirements of the study.
(b) Report.--
(1) In general.--Not later than 180 days after the
commencement of the study under subsection (a), the
Secretary shall submit a report to the Committee on
Commerce, Science, and Transportation of the Senate and
the Committee on Financial Services of the House of
Representatives that contains the findings and
recommendations from the study.
(2) Elements.--The report under paragraph (1) shall
include--
(A) findings related to the study
requirements under subsection (a)(2);
(B) recommendations for the Federal and
State legislative, regulatory, and
administrative actions necessary to address
challenges identified in subparagraph (A); and
(C) a plan to implement the recommendations
for which the Secretary has authority.
(c) Implementation.--Not later than 1 year after the date
of enactment of this Act, the Secretary, in consultation with
the Secretary of Defense and in cooperation with the States,
shall implement the recommendations identified in subsection
(b) and establish accelerated licensing procedures to assist
veterans to acquire commercial driver's licenses.
(d) Accelerated Licensing Procedures.--The procedures
established under subsection (a) shall be designed to be
applicable to any veteran who--
(1) is attempting to acquire a commercial driver's
license; and
(2) obtained, during military service, documented
driving experience that, in the determination of the
Secretary, makes the use of accelerated licensing
procedures appropriate.
(e) Definitions.--In this section:
(1) Commercial driver's license.--The term
``commercial driver's license'' has the meaning given
that term in section 31301 of title 49, United States
Code.
(2) State.--The term ``State'' has the meaning
given that term in section 31301 of title 49, United
States Code.
(3) Veteran.--The term ``veteran'' has the meaning
given that term in section 101 of title 38, United
States Code.
Subtitle D--Safe Roads Act of 2012
SEC. 32401. SHORT TITLE.
This subtitle may be cited as the ``Safe Roads Act of
2012''.
SEC. 32402. NATIONAL CLEARINGHOUSE FOR CONTROLLED SUBSTANCE AND ALCOHOL
TEST RESULTS OF COMMERCIAL MOTOR VEHICLE OPERATORS.
(a) In General.--Chapter 313 is amended--
(1) in section 31306(a), by inserting ``and section
31306a'' after ``this section''; and
(2) by inserting after section 31306 the following:
``Sec. 31306a. National clearinghouse for controlled substance and
alcohol test results of commercial motor vehicle
operators
``(a) Establishment.--
``(1) In general.--Not later than 2 years after the
date of enactment of the Safe Roads Act of 2012, the
Secretary of Transportation shall establish, operate,
and maintain a national clearinghouse for records
relating to alcohol and controlled substances testing
of commercial motor vehicle operators.
``(2) Purposes.--The purposes of the clearinghouse
shall be--
``(A) to improve compliance with the
Department of Transportation's alcohol and
controlled substances testing program
applicable to commercial motor vehicle
operators; and
``(B) to enhance the safety of our United
States roadways by reducing accident and
injuries involving the misuse of alcohol or use
of controlled substances by operators of
commercial motor vehicles.
``(3) Contents.--The clearinghouse shall function
as a repository for records relating to the positive
test results and test refusals of commercial motor
vehicle operators and violations by such operators of
prohibitions set forth in subpart B of part 382 of
title 49, Code of Federal Regulations (or any
subsequent corresponding regulations).
``(4) Electronic exchange of records.--The
Secretary shall ensure that records can be
electronically submitted to, and requested from, the
clearinghouse by authorized users.
``(5) Authorized operator.--The Secretary may
authorize a qualified private entity to operate and
maintain the clearinghouse and to collect fees on
behalf of the Secretary under subsection (e). The
entity shall operate and maintain the clearinghouse and
permit access to driver information and records from
the clearinghouse in accordance with this section.
``(b) Design of Clearinghouse.--
``(1) Use of federal motor carrier safety
administration recommendations.--In establishing the
clearinghouse, the Secretary shall consider--
``(A) the findings and recommendations
contained in the Federal Motor Carrier Safety
Administration's March 2004 report to Congress
required under section 226 of the Motor Carrier
Safety Improvement Act of 1999 (49 U.S.C. 31306
note); and
``(B) the findings and recommendations
contained in the Government Accountability
Office's May 2008 report to Congress entitled
`Motor Carrier Safety: Improvements to Drug
Testing Programs Could Better Identify Illegal
Drug Users and Keep Them off the Road.'.
``(2) Development of secure processes.--In
establishing the clearinghouse, the Secretary shall
develop a secure process for--
``(A) administering and managing the
clearinghouse in compliance with applicable
Federal security standards;
``(B) registering and authenticating
authorized users of the clearinghouse;
``(C) registering and authenticating
persons required to report to the clearinghouse
under subsection (g);
``(D) preventing the unauthorized access of
information from the clearinghouse;
``(E) storing and transmitting data;
``(F) persons required to report to the
clearinghouse under subsection (g) to timely
and accurately submit electronic data to the
clearinghouse;
``(G) generating timely and accurate
reports from the clearinghouse in response to
requests for information by authorized users;
and
``(H) updating an individual's record upon
completion of the return-to-duty process
described in title 49, Code of Federal
Regulations.
``(3) Employer alert of positive test result.--In
establishing the clearinghouse, the Secretary shall
develop a secure method for electronically notifying an
employer of each additional positive test result or
other noncompliance--
``(A) for an employee, that is entered into
the clearinghouse during the 7-day period
immediately following an employer's inquiry
about the employee; and
``(B) for an employee who is listed as
having multiple employers.
``(4) Archive capability.--In establishing the
clearinghouse, the Secretary shall develop a process
for archiving all clearinghouse records for the
purposes of auditing and evaluating the timeliness,
accuracy, and completeness of data in the
clearinghouse.
``(5) Future needs.--
``(A) Interoperability with other data
systems.--In establishing the clearinghouse,
the Secretary shall consider--
``(i) the existing data systems
containing regulatory and safety data
for commercial motor vehicle operators;
``(ii) the efficacy of using or
combining clearinghouse data with 1 or
more of such systems; and
``(iii) the potential
interoperability of the clearinghouse
with such systems.
``(B) Specific considerations.--In carrying
out subparagraph (A), the Secretary shall
determine--
``(i) the clearinghouse's
capability for interoperability with--
``(I) the National Driver
Register established under
section 30302;
``(II) the Commercial
Driver's License Information
System established under
section 31309;
``(III) the Motor Carrier
Management Information System
for preemployment screening
services under section 31150;
and
``(IV) other data systems,
as appropriate; and
``(ii) any change to the
administration of the current testing
program, such as forms, that is
necessary to collect data for the
clearinghouse.
``(c) Standard Formats.--The Secretary shall develop
standard formats to be used--
``(1) by an authorized user of the clearinghouse
to--
``(A) request a record from the
clearinghouse; and
``(B) obtain the consent of an individual
who is the subject of a request from the
clearinghouse, if applicable; and
``(2) to notify an individual that a positive
alcohol or controlled substances test result, refusing
to test, and a violation of any of the prohibitions
under subpart B of part 382 of title 49, Code of
Federal Regulations (or any subsequent corresponding
regulations), will be reported to the clearinghouse.
``(d) Privacy.--A release of information from the
clearinghouse shall--
``(1) comply with applicable Federal privacy laws,
including the fair information practices under the
Privacy Act of 1974 (5 U.S.C. 552a);
``(2) comply with applicable sections of the Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.); and
``(3) not be made to any person or entity unless
expressly authorized or required by law.
``(e) Fees.--
``(1) Authority to collect fees.--Except as
provided under paragraph (3), the Secretary may collect
a reasonable, customary, and nominal fee from an
authorized user of the clearinghouse for a request for
information from the clearinghouse.
``(2) Use of fees.--Fees collected under this
subsection shall be used for the operation and
maintenance of the clearinghouse.
``(3) Limitation.--The Secretary may not collect a
fee from an individual requesting information from the
clearinghouse that pertains to the record of that
individual.
``(f) Employer Requirements.--
``(1) Determination concerning use of
clearinghouse.--The Secretary shall determine if an
employer is authorized to use the clearinghouse to meet
the alcohol and controlled substances testing
requirements under title 49, Code of Federal
Regulations.
``(2) Applicability of existing requirements.--Each
employer and service agent shall continue to comply
with the alcohol and controlled substances testing
requirements under title 49, Code of Federal
Regulations.
``(3) Employment prohibitions.--After the
clearinghouse is established under subsection (a), at a
date determined to be appropriate by the Secretary and
published in the Federal Register, an employer shall
utilize the clearinghouse to determine whether any
employment prohibitions exist and shall not hire an
individual to operate a commercial motor vehicle unless
the employer determines that the individual, during the
preceding 3-year period--
``(A) if tested for the use of alcohol and
controlled substances, as required under title
49, Code of Federal Regulations--
``(i) did not test positive for the
use of alcohol or controlled substances
in violation of the regulations; or
``(ii) tested positive for the use
of alcohol or controlled substances and
completed the required return-to-duty
process under title 49, Code of Federal
Regulations;
``(B)(i) did not refuse to take an alcohol
or controlled substance test under title 49,
Code of Federal Regulations; or
``(ii) refused to take an alcohol or
controlled substance test and completed the
required return-to-duty process under title 49,
Code of Federal Regulations; and
``(C) did not violate any other provision
of subpart B of part 382 of title 49, Code of
Federal Regulations (or any subsequent
corresponding regulations).
``(4) Annual review.--After the clearinghouse is
established under subsection (a), at a date determined
to be appropriate by the Secretary and published in the
Federal Register, an employer shall request and review
a commercial motor vehicle operator's record from the
clearinghouse annually for as long as the commercial
motor vehicle operator is under the employ of the
employer.
``(g) Reporting of Records.--
``(1) In general.--Beginning 30 days after the date
that the clearinghouse is established under subsection
(a), a medical review officer, employer, service agent,
and other appropriate person, as determined by the
Secretary, shall promptly submit to the Secretary any
record generated after the clearinghouse is initiated
of an individual who--
``(A) refuses to take an alcohol or
controlled substances test required under title
49, Code of Federal Regulations;
``(B) tests positive for alcohol or a
controlled substance in violation of the
regulations; or
``(C) violates any other provision of
subpart B of part 382 of title 49, Code of
Federal Regulations (or any subsequent
corresponding regulations).
``(2) Inclusion of records in clearinghouse.--The
Secretary shall include in the clearinghouse the
records of positive test results and test refusals
received under paragraph (1).
``(3) Modifications and deletions.--If the
Secretary determines that a record contained in the
clearinghouse is not accurate, the Secretary shall
modify or delete the record, as appropriate.
``(4) Notification.--The Secretary shall
expeditiously notify an individual, unless such
notification would be duplicative, when--
``(A) a record relating to the individual
is received by the clearinghouse;
``(B) a record in the clearinghouse
relating to the individual is modified or
deleted, and include in the notification the
reason for the modification or deletion; or
``(C) a record in the clearinghouse
relating to the individual is released to an
employer and specify the reason for the
release.
``(5) Data quality and security standards for
reporting and releasing.--The Secretary may establish
additional requirements, as appropriate, to ensure
that--
``(A) the submission of records to the
clearinghouse is timely and accurate;
``(B) the release of data from the
clearinghouse is timely, accurate, and released
to the appropriate authorized user under this
section; and
``(C) an individual with a record in the
clearinghouse has a cause of action for any
inappropriate use of information included in
the clearinghouse.
``(6) Retention of records.--The Secretary shall--
``(A) retain a record submitted to the
clearinghouse for a 5-year period beginning on
the date the record is submitted;
``(B) remove the record from the
clearinghouse at the end of the 5-year period,
unless the individual fails to meet a return-
to-duty or follow-up requirement under title
49, Code of Federal Regulations; and
``(C) retain a record after the end of the
5-year period in a separate location for
archiving and auditing purposes.
``(h) Authorized Users.--
``(1) Employers.--The Secretary shall establish a
process for an employer, or an employer's designated
agent, to request and receive an individual's record
from the clearinghouse.
``(A) Consent.--An employer may not access
an individual's record from the clearinghouse
unless the employer--
``(i) obtains the prior written or
electronic consent of the individual
for access to the record; and
``(ii) submits proof of the
individual's consent to the Secretary.
``(B) Access to records.--After receiving a
request from an employer for an individual's
record under subparagraph (A), the Secretary
shall grant access to the individual's record
to the employer as expeditiously as
practicable.
``(C) Retention of record requests.--The
Secretary shall require an employer to retain
for a 3-year period--
``(i) a record of each request made
by the employer for records from the
clearinghouse; and
``(ii) the information received
pursuant to the request.
``(D) Use of records.--An employer may use
an individual's record received from the
clearinghouse only to assess and evaluate
whether a prohibition applies with respect to
the individual to operate a commercial motor
vehicle for the employer.
``(E) Protection of privacy of
individuals.--An employer that receives an
individual's record from the clearinghouse
under subparagraph (B) shall--
``(i) protect the privacy of the
individual and the confidentiality of
the record; and
``(ii) ensure that information
contained in the record is not divulged
to a person or entity that is not
directly involved in assessing and
evaluating whether a prohibition
applies with respect to the individual
to operate a commercial motor vehicle
for the employer.
``(2) State licensing authorities.--The Secretary
shall establish a process for the chief commercial
driver's licensing official of a State to request and
receive an individual's record from the clearinghouse
if the individual is applying for a commercial driver's
license from the State.
``(A) Consent.--The Secretary may grant
access to an individual's record in the
clearinghouse under this paragraph without the
prior written or electronic consent of the
individual. An individual who holds a
commercial driver's license shall be deemed to
consent to such access by obtaining a
commercial driver's license.
``(B) Protection of privacy of
individuals.--A chief commercial driver's
licensing official of a State that receives an
individual's record from the clearinghouse
under this paragraph shall--
``(i) protect the privacy of the
individual and the confidentiality of
the record; and
``(ii) ensure that the information
in the record is not divulged to any
person that is not directly involved in
assessing and evaluating the
qualifications of the individual to
operate a commercial motor vehicle.
``(i) National Transportation Safety Board.--The Secretary
shall establish a process for the National Transportation
Safety Board to request and receive an individual's record from
the clearinghouse if the individual is involved in an accident
that is under investigation by the National Transportation
Safety Board.
``(j) Access to Clearinghouse by Individuals.--
``(1) In general.--The Secretary shall establish a
process for an individual to request and receive
information from the clearinghouse--
``(A) to determine whether the
clearinghouse contains a record pertaining to
the individual;
``(B) to verify the accuracy of a record;
``(C) to update an individual's record,
including completing the return-to-duty process
described in title 49, Code of Federal
Regulations; and
``(D) to determine whether the
clearinghouse received requests for the
individual's information.
``(2) Dispute procedure.--The Secretary shall
establish a procedure, including an appeal process, for
an individual to dispute and remedy an administrative
error in the individual's record.
``(k) Penalties.--
``(1) In general.--An employer, employee, medical
review officer, or service agent who violates any
provision of this section shall be subject to civil
penalties under section 521(b)(2)(C) and criminal
penalties under section 521(b)(6)(B), and any other
applicable civil and criminal penalties, as determined
by the Secretary.
``(2) Violation of privacy.--The Secretary shall
establish civil and criminal penalties, consistent with
paragraph (1), for an authorized user who violates
paragraph (1) or (2) of subsection (h).
``(l) Compatibility of State and Local Laws.--
``(1) Preemption.--Except as provided under
paragraph (2), any law, regulation, order, or other
requirement of a State, political subdivision of a
State, or Indian tribe related to a commercial driver's
license holder subject to alcohol or controlled
substance testing under title 49, Code of Federal
Regulations, that is inconsistent with this section or
a regulation issued pursuant to this section is
preempted.
``(2) Applicability.--The preemption under
paragraph (1) shall include--
``(A) the reporting of valid positive
results from alcohol screening tests and drug
tests;
``(B) the refusal to provide a specimen for
an alcohol screening test or drug test; and
``(C) other violations of subpart B of part
382 of title 49, Code of Federal Regulations
(or any subsequent corresponding regulations).
``(3) Exception.--A law, regulation, order, or
other requirement of a State, political subdivision of
a State, or Indian tribe shall not be preempted under
this subsection to the extent it relates to an action
taken with respect to a commercial motor vehicle
operator's commercial driver's license or driving
record as a result of the driver's--
``(A) verified positive alcohol or drug
test result;
``(B) refusal to provide a specimen for the
test; or
``(C) other violations of subpart B of part
382 of title 49, Code of Federal Regulations
(or any subsequent corresponding regulations).
``(m) Definitions.--In this section--
``(1) Authorized user.--The term `authorized user'
means an employer, State licensing authority, or other
person granted access to the clearinghouse under
subsection (h).
``(2) Chief commercial driver's licensing
official.--The term `chief commercial driver's
licensing official' means the official in a State who
is authorized to--
``(A) maintain a record about commercial
driver's licenses issued by the State; and
``(B) take action on commercial driver's
licenses issued by the State.
``(3) Clearinghouse.--The term `clearinghouse'
means the clearinghouse established under subsection
(a).
``(4) Commercial motor vehicle operator.--The term
`commercial motor vehicle operator' means an individual
who--
``(A) possesses a valid commercial driver's
license issued in accordance with section
31308; and
``(B) is subject to controlled substances
and alcohol testing under title 49, Code of
Federal Regulations.
``(5) Employer.--The term `employer' means a person
or entity employing, or seeking to employ, 1 or more
employees (including an individual who is self-
employed) to be commercial motor vehicle operators.
``(6) Medical review officer.--The term `medical
review officer' means a licensed physician who is
responsible for--
``(A) receiving and reviewing a laboratory
result generated under the testing program;
``(B) evaluating a medical explanation for
a controlled substances test under title 49,
Code of Federal Regulations; and
``(C) interpreting the results of a
controlled substances test.
``(7) Secretary.--The term `Secretary' means the
Secretary of Transportation.
``(8) Service agent.--The term `service agent'
means a person or entity, other than an employee of the
employer, who provides services to employers or
employees under the testing program.
``(9) Testing program.--The term `testing program'
means the alcohol and controlled substances testing
program required under title 49, Code of Federal
Regulations.''.
(b) Conforming Amendment.--The analysis for chapter 313 is
amended by inserting after the item relating to section 31306
the following:
``31306a. National clearinghouse for positive controlled substance and
alcohol test results of commercial motor vehicle operators.''.
Subtitle E--Enforcement
SEC. 32501. INSPECTION DEMAND AND DISPLAY OF CREDENTIALS.
(a) Safety Investigations.--Section 504(c) is amended--
(1) by inserting ``, or an employee of the
recipient of a grant issued under section 31102 of this
title'' after ``a contractor''; and
(2) by inserting ``, in person or in writing''
after ``proper credentials''.
(b) Civil Penalty.--Section 521(b)(2)(E) is amended--
(1) by redesignating subparagraph (E) as
subparagraph (E)(i); and
(2) by adding at the end the following:
``(ii) Place out of service.--The
Secretary may by regulation adopt
procedures for placing out of service
the commercial motor vehicle of a
foreign-domiciled motor carrier that
fails to promptly allow the Secretary
to inspect and copy a record or inspect
equipment, land, buildings, or other
property.''.
(c) Hazardous Materials Investigations.--Section 5121(c)(2)
is amended by inserting ``, in person or in writing,'' after
``proper credentials''.
(d) Commercial Investigations.--Section 14122(b) is amended
by inserting ``, in person or in writing'' after ``proper
credentials''.
SEC. 32502. OUT OF SERVICE PENALTY FOR DENIAL OF ACCESS TO RECORDS.
Section 521(b)(2)(E) is amended--
(1) by inserting after ``$10,000.'' the following:
``In the case of a motor carrier, the Secretary may
also place the violator's motor carrier operations out
of service.''; and
(2) by striking ``such penalty'' after ``It shall
be a defense to'' and inserting ``a penalty''.
SEC. 32503. PENALTIES FOR VIOLATION OF OPERATION OUT OF SERVICE ORDERS.
Section 521(b)(2) is amended by adding at the end the
following:
``(F) Penalty for violations relating to
out of service orders.--A motor carrier or
employer (as defined in section 31132) that
operates a commercial motor vehicle in commerce
in violation of a prohibition on transportation
under section 31144(c) of this title or an
imminent hazard out of service order issued
under subsection (b)(5) of this section or
section 5121(d) of this title shall be liable
for a civil penalty not to exceed $25,000.''.
SEC. 32504. IMPOUNDMENT AND IMMOBILIZATION OF COMMERCIAL MOTOR VEHICLES
FOR IMMINENT HAZARD.
Section 521(b) is amended by adding at the end the
following:
``(15) Impoundment of commercial motor vehicles.--
``(A) Enforcement of imminent hazard out-
of-service orders.--
``(i) The Secretary, or an
authorized State official carrying out
motor carrier safety enforcement
activities under section 31102, may
enforce an imminent hazard out-of-
service order issued under chapters 5,
51, 131 through 149, 311, 313, or 315
of this title, or a regulation
promulgated thereunder, by towing and
impounding a commercial motor vehicle
until the order is rescinded.
``(ii) Enforcement shall not
unreasonably interfere with the ability
of a shipper, carrier, broker, or other
party to arrange for the alternative
transportation of any cargo or
passenger being transported at the time
the commercial motor vehicle is
immobilized. In the case of a
commercial motor vehicle transporting
passengers, the Secretary or authorized
State official shall provide
reasonable, temporary, and secure
shelter and accommodations for
passengers in transit.
``(iii) The Secretary's designee or
an authorized State official carrying
out motor carrier safety enforcement
activities under section 31102, shall
immediately notify the owner of a
commercial motor vehicle of the
impoundment and the opportunity for
review of the impoundment. A review
shall be provided in accordance with
section 554 of title 5, except that the
review shall occur not later than 10
days after the impoundment.
``(B) Issuance of regulations.--The
Secretary shall promulgate regulations on the
use of impoundment or immobilization of
commercial motor vehicles as a means of
enforcing additional out-of-service orders
issued under chapters 5, 51, 131 through 149,
311, 313, or 315 of this title, or a regulation
promulgated thereunder. Regulations promulgated
under this subparagraph shall include
consideration of public safety, the protection
of passengers and cargo, inconvenience to
passengers, and the security of the commercial
motor vehicle.
``(C) Definition.--In this paragraph, the
term `impoundment' or 'impounding' means the
seizing and taking into custody of a commercial
motor vehicle or the immobilizing of a
commercial motor vehicle through the attachment
of a locking device or other mechanical or
electronic means.''.
SEC. 32505. INCREASED PENALTIES FOR EVASION OF REGULATIONS.
(a) Penalties.--Section 524 is amended--
(1) by striking ``knowingly and willfully'';
(2) by inserting after ``this chapter'' the
following: ``, chapter 51, subchapter III of chapter
311 (except sections 31138 and 31139) or section 31302,
31303, 31304, 31305(b), 31310(g)(1)(A), or 31502 of
this title, or a regulation issued under any of those
provisions,'';
(3) by striking ``$200 but not more than $500'' and
inserting ``$2,000 but not more than $5,000''; and
(4) by striking ``$250 but not more than $2,000''
and inserting ``$2,500 but not more than $7,500''.
(b) Evasion of Regulation.--Section 14906 is amended--
(1) by striking ``$200'' and inserting ``at least
$2,000'';
(2) by striking ``$250'' and inserting ``$5,000'';
and
(3) by inserting after ``a subsequent violation''
the following:
``, and may be subject to criminal penalties''.
SEC. 32506. VIOLATIONS RELATING TO COMMERCIAL MOTOR VEHICLE SAFETY
REGULATION AND OPERATORS.
Section 521(b)(2)(D) is amended by striking ``ability to
pay,''.
SEC. 32507. EMERGENCY DISQUALIFICATION FOR IMMINENT HAZARD.
Section 31310(f) is amended--
(1) in paragraph (1) by inserting ``section 521
or'' before ``section 5102''; and
(2) in paragraph (2) by inserting ``section 521
or'' before ``section 5102''.
SEC. 32508. DISCLOSURE TO STATE AND LOCAL LAW ENFORCEMENT AGENCIES.
Section 31106(e) is amended--
(1) by redesignating subsection (e) as subsection
(e)(1); and
(2) by inserting at the end the following:
``(2) In general.--Notwithstanding any prohibition
on disclosure of information in section 31105(h) or
31143(b) of this title or section 552a of title 5, the
Secretary may disclose information maintained by the
Secretary pursuant to chapters 51, 135, 311, or 313 of
this title to appropriate personnel of a State agency
or instrumentality authorized to carry out State
commercial motor vehicle safety activities and
commercial driver's license laws, or appropriate
personnel of a local law enforcement agency, in
accordance with standards, conditions, and procedures
as determined by the Secretary. Disclosure under this
section shall not operate as a waiver by the Secretary
of any applicable privilege against disclosure under
common law or as a basis for compelling disclosure
under section 552 of title 5.''.
SEC. 32509. GRADE CROSSING SAFETY REGULATIONS.
Section 112(2) of the Hazardous Materials Transportation
Authorization Act of 1994 (Public Law 103-311) is amended by
striking ``315 of such title (relating to motor carrier
safety)'' and inserting ``311 of such title (relating to
commercial motor vehicle safety)''.
Subtitle F--Compliance, Safety, Accountability
SEC. 32601. MOTOR CARRIER SAFETY ASSISTANCE PROGRAM.
(a) In General.--Section 31102(b) is amended--
(1) by amending the heading to read as follows:
``(b) Motor Carrier Safety Assistance Program.--'';
(2) by redesignating paragraphs (1) through (3) as
(2) through (4), respectively;
(3) by inserting before paragraph (2), as
redesignated, the following:
``(1) Program goal.--The goal of the Motor Carrier
Safety Assistance Program is to ensure that the
Secretary, States, local government agencies, and other
political jurisdictions work in partnership to
establish programs to improve motor carrier, commercial
motor vehicle, and driver safety to support a safe and
efficient surface transportation system by--
``(A) making targeted investments to
promote safe commercial motor vehicle
transportation, including transportation of
passengers and hazardous materials;
``(B) investing in activities likely to
generate maximum reductions in the number and
severity of commercial motor vehicle crashes
and fatalities resulting from such crashes;
``(C) adopting and enforcing effective
motor carrier, commercial motor vehicle, and
driver safety regulations and practices
consistent with Federal requirements; and
``(D) assessing and improving statewide
performance by setting program goals and
meeting performance standards, measures, and
benchmarks.'';
(4) in paragraph (2), as redesignated--
(A) by striking ``make a declaration of''
in subparagraph (I) and inserting
``demonstrate'';
(B) by amending subparagraph (M) to read as
follows:
``(M) ensures participation in appropriate
Federal Motor Carrier Safety Administration
systems and other information systems by all
appropriate jurisdictions receiving Motor
Carrier Safety Assistance Program funding;'';
(C) in subparagraph (Q), by inserting ``and
dedicated sufficient resources to'' between
``established'' and ``a program'';
(D) in subparagraph (W), by striking
``and'' after the semicolon;
(E) in subparagraph (X), by striking the
period and inserting ``; and''; and
(F) by adding after subparagraph (X) the
following:
``(Y) ensures that the State will transmit
to its roadside inspectors the notice of each
Federal exemption granted pursuant to section
31315(b) and provided to the State by the
Secretary, including the name of the person
granted the exemption and any terms and
conditions that apply to the exemption.''; and
(5) by amending paragraph (4), as redesignated, to
read as follows:
``(4) Maintenance of effort.--
``(A) In general.--A plan submitted by a
State under paragraph (2) shall provide that
the total expenditure of amounts of the lead
State agency responsible for implementing the
plan will be maintained at a level at least
equal to the average level of that expenditure
for fiscal years 2004 and 2005.
``(B) Average level of state
expenditures.--In estimating the average level
of State expenditure under subparagraph (A),
the Secretary--
``(i) may allow the State to
exclude State expenditures for
Government-sponsored demonstration or
pilot programs; and
``(ii) shall require the State to
exclude State matching amounts used to
receive Government financing under this
subsection.
``(C) Waiver.--Upon the request of a State,
the Secretary may waive or modify the
requirements of this paragraph for 1 fiscal
year, if the Secretary determines that a waiver
is equitable due to exceptional or
uncontrollable circumstances, such as a natural
disaster or a serious decline in the financial
resources of the State motor carrier safety
assistance program agency.''.
SEC. 32602. PERFORMANCE AND REGISTRATION INFORMATION SYSTEMS MANAGEMENT
PROGRAM.
Section 31106(b) is amended by amending paragraph (3)(C) to
read as follows:
``(C) establish and implement a process--
``(i) to cancel the motor vehicle
registration and seize the registration
plates of a vehicle when an employer is
found liable under section
31310(i)(2)(C) for knowingly allowing
or requiring an employee to operate
such a commercial motor vehicle in
violation of an out-of-service order;
and
``(ii) to reinstate the vehicle
registration or return the registration
plates of the commercial motor vehicle,
subject to sanctions under clause (i),
if the Secretary permits such carrier
to resume operations after the date of
issuance of such order.''.
SEC. 32603. AUTHORIZATION OF APPROPRIATIONS.
(a) Motor Carrier Safety Grants.--Section 31104(a) is
amended--
(1) by striking ``and'' at the end of paragraph
(7);
(2) by striking paragraph (8); and
(3) by inserting after paragraph (7) the following:
``(8) $215,000,000 for fiscal year 2013; and
``(9) $218,000,000 for fiscal year 2014.''.
(b) Administrative Expenses.--Section 31104(i)(1) is
amended--
(1) by striking ``and'' at the end of subparagraph
(G); and
(2) by striking subparagraph (H); and
(3) by inserting after subparagraph (G) the
following:
``(H) $251,000,000 for fiscal year 2013;
and
``(I) $259,000,000 for fiscal year 2014.''.
(c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119
Stat. 1715) is amended to read as follows:
``(c) Grant Programs.--There are authorized to be
appropriated from the Highway Trust Fund (other than the Mass
Transit Account) the following sums for the following Federal
Motor Carrier Safety Administration programs:
``(1) Commercial driver's license program
improvement grants.--For commercial driver's license
program improvement grants under section 31313 of title
49, United States Code $30,000,000 for each of fiscal
years 2013 and 2014.
``(2) Border enforcement grants.--For border
enforcement grants under section 31107 of such title
$32,000,000 for each of fiscal years 2013 and 2014.
``(3) Performance and registration information
system management grant program.--For the performance
and registration information system management grant
program under section 31109 of such title $5,000,000
for each of fiscal years 2013 and 2014.
``(4) Commercial vehicle information systems and
networks deployment.--For carrying out the commercial
vehicle information systems and networks deployment
program under section 4126 of this Act, $25,000,000 for
each of fiscal years 2013 and 2014.
``(5) Safety data improvement grants.--For safety
data improvement grants under section 4128 of this Act,
$3,000,000 for each of fiscal years 2013 and 2014.''.
(d) High-priority Activities.--Section 31104(k)(2) is
amended by striking ``2011 and $11,250,000 for the period
beginning on October 1, 2011, and ending on June 30, 2012,''
and inserting ``2014''.
(e) New Entrant Audits.--Section 31144(g)(5)(B) is amended
to read as follows:
``(B) Set aside.--The Secretary shall set
aside from amounts made available by section
31104(a) up to $32,000,000 per fiscal year for
audits of new entrant motor carriers conducted
pursuant to this paragraph.''.
(f) Outreach and Education.--Section 4127(e) of SAFETEA-LU
(119 Stat. 1741) is amended to read as follows:
``(e) Funding.--From amounts made available under section
31104(i) of title 49, United States Code, the Secretary shall
make available $4,000,000 to the Federal Motor Carrier Safety
Administration for each of fiscal years 2013 and 2014 to carry
out this section (other than subsection (f)).''.
(g) Grant Program for Commercial Motor Vehicle Operators.--
Section 4134(c) of SAFETEA-LU (49 U.S.C. 31301 note) is amended
by striking ``2011 and $750,000 for the period beginning on
October 1, 2011, and ending on June 30, 2012,'' and inserting
``2014''.
(h) Border Enforcement Grants.--Section 31107 is amended--
(1) by striking subsection (b); and
(2) redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(i) Administration of Grant Programs.--The Secretary is
authorized to identify and implement processes to reduce the
administrative burden on the States and the Department of
Transportation concerning the application and management of the
grant programs authorized under chapter 311 and chapter 313 of
title 49, United States Code.
SEC. 32604. GRANTS FOR COMMERCIAL DRIVER'S LICENSE PROGRAM
IMPLEMENTATION.
(a) Grants for Commercial Driver's License Program
Implementation.--Section 31313(a) is amended to read as
follows:
``(a) Commercial Driver's License Program Improvement
Grants.--
``(1) Program goal.--The Secretary of
Transportation may make a grant to a State in a fiscal
year--
``(A) to comply with the requirements of
section 31311;
``(B) in the case of a State that is making
a good faith effort toward substantial
compliance with the requirements of this
section and section 31311, to improve its
implementation of its commercial driver's
license program, including expenses--
``(i) for computer hardware and
software;
``(ii) for publications, testing,
personnel, training, and quality
control;
``(iii) for commercial driver's
license program coordinators;
``(iv) to implement or maintain a
system to notify an employer of an
operator of a commercial motor vehicle
of the suspension or revocation of the
operator's commercial driver's license
consistent with the standards developed
under section 32303(b) of the
Commercial Motor Vehicle Safety
Enhancement Act of 2012.
``(2) Prohibitions.--A State may not use grant
funds under this subsection to rent, lease, or buy land
or buildings.''.
(b) Conforming Amendment.--
(1) The heading for section 31313 is amended by
striking ``improvements'' and inserting
``implementation''.
(2) The analysis of chapter 313 is amended by
striking the item relating to section 31313 and
inserting the following:
``31313. Grants for commercial driver's license program
implementation.''.
SEC. 32605. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS.
Not later than 6 months after the date of enactment of this
Act, the Secretary shall submit a report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives that includes--
(1) established time frames and milestones for
resuming the Commercial Vehicle Information Systems and
Networks Program; and
(2) a strategic workforce plan for its grants
management office to ensure that it has determined the
skills and competencies that are critical to achieving
its mission goals.
Subtitle G--Motorcoach Enhanced Safety Act of 2012
SEC. 32701. SHORT TITLE.
This subtitle may be cited as the ``Motorcoach Enhanced
Safety Act of 2012''.
SEC. 32702. DEFINITIONS.
In this subtitle:
(1) Advanced glazing.--The term ``advanced
glazing'' means glazing installed in a portal on the
side or the roof of a motorcoach that is designed to be
highly resistant to partial or complete occupant
ejection in all types of motor vehicle crashes.
(2) Bus.--The term ``bus'' has the meaning given
the term in section 571.3(b) of title 49, Code of
Federal Regulations (as in effect on the day before the
date of enactment of this Act).
(3) Commercial motor vehicle.--Except as otherwise
specified, the term ``commercial motor vehicle'' has
the meaning given the term in section 31132(1) of title
49, United States Code.
(4) Direct tire pressure monitoring system.--The
term ``direct tire pressure monitoring system'' means a
tire pressure monitoring system that is capable of
directly detecting when the air pressure level in any
tire is significantly under-inflated and providing the
driver a low tire pressure warning as to which specific
tire is significantly under-inflated.
(5) Motor carrier.--The term ``motor carrier''
means--
(A) a motor carrier (as defined in section
13102(14) of title 49, United States Code); or
(B) a motor private carrier (as defined in
section 13102(15) of that title).
(6) Motorcoach.--The term ``motorcoach'' has the
meaning given the term ``over-the-road bus'' in section
3038(a)(3) of the Transportation Equity Act for the
21st Century (49 U.S.C. 5310 note), but does not
include--
(A) a bus used in public transportation
provided by, or on behalf of, a public
transportation agency; or
(B) a school bus, including a multifunction
school activity bus.
(7) Motorcoach services.--The term ``motorcoach
services'' means passenger transportation by motorcoach
for compensation.
(8) Multifunction school activity bus.--The term
``multifunction school activity bus'' has the meaning
given the term in section 571.3(b) of title 49, Code of
Federal Regulations (as in effect on the day before the
date of enactment of this Act).
(9) Portal.--The term ``portal'' means any opening
on the front, side, rear, or roof of a motorcoach that
could, in the event of a crash involving the
motorcoach, permit the partial or complete ejection of
any occupant from the motorcoach, including a young
child.
(10) Provider of motorcoach services.--The term
``provider of motorcoach services'' means a motor
carrier that provides passenger transportation services
with a motorcoach, including per-trip compensation and
contracted or chartered compensation.
(11) Public transportation.--The term ``public
transportation'' has the meaning given the term in
section 5302 of title 49, United States Code.
(12) Safety belt.--The term ``safety belt'' has the
meaning given the term in section 153(i)(4)(B) of title
23, United States Code.
(13) Secretary.--The term ``Secretary'' means the
Secretary of Transportation.
SEC. 32703. REGULATIONS FOR IMPROVED OCCUPANT PROTECTION, PASSENGER
EVACUATION, AND CRASH AVOIDANCE.
(a) Regulations Required Within 1 Year.--Not later than 1
year after the date of enactment of this Act, the Secretary
shall prescribe regulations requiring safety belts to be
installed in motorcoaches at each designated seating position.
(b) Regulations Required Within 2 Years.--Not later than 2
years after the date of enactment of this Act, the Secretary
shall prescribe regulations that address the following
commercial motor vehicle standards, if the Secretary determines
that such standards meet the requirements and considerations
set forth in subsections (a) and (b) of section 30111 of title
49, United States Code:
(1) Roof strength and crush resistance.--The
Secretary shall establish improved roof and roof
support standards for motorcoaches that substantially
improve the resistance of motorcoach roofs to
deformation and intrusion to prevent serious occupant
injury in rollover crashes involving motorcoaches.
(2) Anti-ejection safety countermeasures.--The
Secretary shall consider requiring advanced glazing
standards for each motorcoach portal and shall consider
other portal improvements to prevent partial and
complete ejection of motorcoach passengers, including
children. In prescribing such standards, the Secretary
shall consider the impact of such standards on the use
of motorcoach portals as a means of emergency egress.
(3) Rollover crash avoidance.--The Secretary shall
consider requiring motorcoaches to be equipped with
stability enhancing technology, such as electronic
stability control and torque vectoring, to reduce the
number and frequency of rollover crashes among
motorcoaches.
(c) Commercial Motor Vehicle Tire Pressure Monitoring
Systems.--Not later than 3 years after the date of enactment of
this Act, the Secretary shall prescribe the following
commercial vehicle regulation:
(1) In general.--The Secretary shall consider
requiring motorcoaches to be equipped with direct tire
pressure monitoring systems that warn the operator of a
commercial motor vehicle when any tire exhibits a level
of air pressure that is below a specified level of air
pressure established by the Secretary, if the Secretary
determines that such standards meet the requirements
and considerations set forth in subsections (a) and (b)
of section 30111 of title 49, United States Code.
(2) Performance requirements.--In any standard
adopted under paragraph (1), the Secretary shall
include performance requirements to meet the objectives
identified in paragraph (1) of this subsection.
(d) Tire Performance Standard.--Not later than 3 years
after the date of enactment of this Act, the Secretary shall
consider--
(1) issuing a rule to upgrade performance standards
for tires used on motorcoaches, including an enhanced
endurance test and a new high-speed performance test;
or
(2) if the Secretary determines that a standard
does not meet the requirements and considerations set
forth in subsections (a) and (b) of section 30111 of
title 49, United States Code, submit a report that
describes the reasons for not prescribing such a
standard to--
(A) the Committee on Commerce, Science, and
Transportation of the Senate;
(B) the Committee on Transportation and
Infrastructure of the House of Representatives;
and
(C) the Committee on Energy and Commerce of
the House of Representatives.
(e) Application of Regulations.--
(1) New motorcoaches.--Any regulation prescribed in
accordance with subsection (a), (b), (c), or (d)
shall--
(A) apply to all motorcoaches manufactured
more than 3 years after the date on which the
regulation is published as a final rule;
(B) take into account the impact to seating
capacity of changes to size and weight of
motorcoaches and the ability to comply with
State and Federal size and weight requirements;
and
(C) be based on the best available science.
(2) Retrofit assessment for existing
motorcoaches.--
(A) In general.--The Secretary may assess
the feasibility, benefits, and costs with
respect to the application of any requirement
established under subsection (a) or (b)(2) to
motorcoaches manufactured before the date on
which the requirement applies to new
motorcoaches under paragraph (1).
(B) Report.--The Secretary shall submit a
report on the assessment to the Committee on
Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and
Infrastructure and the Committee on Energy and
Commerce of the House of Representatives not
later than 2 years after the date of enactment
of this Act.
SEC. 32704. FIRE PREVENTION AND MITIGATION.
(a) Research and Testing.--The Secretary shall conduct
research and testing to determine the most prevalent causes of
motorcoach fires and the best methods to prevent such fires and
to mitigate the effect of such fires, both inside and outside
the motorcoach. Such research and testing shall consider
flammability of exterior components, smoke suppression,
prevention of and resistance to wheel well fires, automatic
fire suppression, passenger evacuation, causation and
prevention of motorcoach fires, and improved fire
extinguishers.
(b) Standards.--Not later than 3 years after the date of
enactment of this Act, the Secretary may issue fire prevention
and mitigation standards for motorcoaches, based on the results
of the Secretary's research and testing, taking into account
highway size and weight restrictions applicable to
motorcoaches, if the Secretary determines that such standards
meet the requirements and considerations set forth in
subsections (a) and (b) of section 30111 of title 49, United
States Code.
SEC. 32705. OCCUPANT PROTECTION, COLLISION AVOIDANCE, FIRE CAUSATION,
AND FIRE EXTINGUISHER RESEARCH AND TESTING.
(a) Safety Research Initiatives.--Not later than 3 years
after the date of enactment of this Act, the Secretary shall
complete the following research and testing:
(1) Interior impact protection.--The Secretary
shall research and test enhanced occupant impact
protection technologies for motorcoach interiors to
reduce serious injuries for all passengers of
motorcoaches.
(2) Compartmentalization safety countermeasures.--
The Secretary shall research and test enhanced
compartmentalization safety countermeasures for
motorcoaches, including enhanced seating designs.
(3) Collision avoidance systems.--The Secretary
shall research and test forward and lateral crash
warning systems applications for motorcoaches.
(b) Rulemaking.--Not later than 2 years after the
completion of each research and testing initiative required
under subsection (a), the Secretary shall issue final motor
vehicle safety standards if the Secretary determines that such
standards meet the requirements and considerations set forth in
subsections (a) and (b) of section 30111 of title 49, United
States Code.
SEC. 32706. CONCURRENCE OF RESEARCH AND RULEMAKING.
(a) Requirements.--To the extent feasible, the Secretary
shall ensure that research programs are carried out
concurrently, and in a manner that concurrently assesses
results, potential countermeasures, costs, and benefits.
(b) Authority to Combine Rulemakings.--When considering
each of the rulemaking provisions, the Secretary may initiate a
single rulemaking proceeding encompassing all aspects or may
combine the rulemakings as the Secretary deems appropriate.
(c) Considerations.--If the Secretary undertakes separate
rulemaking proceedings, the Secretary shall--
(1) consider whether each added aspect of
rulemaking may contribute to addressing the safety need
determined to require rulemaking;
(2) consider the benefits obtained through the
safety belts rulemaking in section 32703(a); and
(3) avoid duplicative benefits, costs, and
countermeasures.
SEC. 32707. IMPROVED OVERSIGHT OF MOTORCOACH SERVICE PROVIDERS.
(a) Safety Reviews.--Section 31144, as amended by section
32202 of this Act, is amended by adding at the end the
following:
``(i) Periodic Safety Reviews of Owners and Operators of
Interstate For-hire Commercial Motor Vehicles Designed or Used
to Transport Passengers.--
``(1) Safety review.--
``(A) In general.--The Secretary shall--
``(i) determine the safety fitness
of each motor carrier of passengers who
the Secretary registers under section
13902 or 31134 through a simple and
understandable rating system that
allows passengers to compare the safety
performance of each such motor carrier;
and
``(ii) assign a safety fitness
rating to each such motor carrier.
``(B) Applicability.--Subparagraph (A)
shall apply--
``(i) to any provider of motorcoach
services registered with the
Administration after the date of
enactment of the Motorcoach Enhanced
Safety Act of 2012 beginning not later
than 2 years after the date of such
registration; and
``(ii) to any provider of
motorcoach services registered with the
Administration on or before the date of
enactment of that Act beginning not
later than 3 years after the date of
enactment of that Act.
``(2) Periodic review.--The Secretary shall
establish, by regulation, a process for monitoring the
safety performance of each motor carrier of passengers
on a regular basis following the assignment of a safety
fitness rating, including progressive intervention to
correct unsafe practices.
``(3) Enforcement strike forces.--In addition to
the enhanced monitoring and enforcement actions
required under paragraph (2), the Secretary may
organize special enforcement strike forces targeting
motor carriers of passengers.
``(4) Periodic update of safety fitness rating.--In
conducting the safety reviews required under this
subsection, the Secretary shall--
``(A) reassess the safety fitness rating of
each motor carrier of passengers not less
frequently than once every 3 years; and
``(B) annually assess the safety fitness of
certain motor carriers of passengers that serve
primarily urban areas with high passenger
loads.''.
(b) Disclosure of Safety Performance Ratings of Motorcoach
Services and Operations.--
(1) Definitions.--In this subsection:
(A) Motorcoach.--
(i) In general.--Except as provided
in clause (ii), the term ``motorcoach''
has the meaning given the term ``over-
the-road bus'' in section 3038(a)(3) of
the Transportation Equity Act for the
21st Century (49 U.S.C. 5310 note).
(ii) Exclusions.--The term
``motorcoach'' does not include--
(I) a bus used in public
transportation that is provided
by a State or local government;
or
(II) a school bus (as
defined in section 30125(a)(1)
of title 49, United States
Code), including a
multifunction school activity
bus.
(B) Motorcoach services and operations.--
The term ``motorcoach services and operations''
means passenger transportation by a motorcoach
for compensation.
(2) Requirements for the disclosure of safety
performance ratings of motorcoach services and
operations.--
(A) In general.--Not later than 1 year
after the date of enactment of this Act, the
Secretary shall establish, through notice and
opportunity for public to comment, requirements
to improve the accessibility to the public of
safety rating information of motorcoach
services and operations.
(B) Display.--In establishing the
requirements under subparagraph (A), the
Secretary shall consider requirements for each
motor carrier that owns or leases 1 or more
motorcoaches that transport passengers subject
to the Secretary's jurisdiction under section
13501 of title 49, United States Code, to
prominently display safety fitness information
pursuant to section 31144 of title 49, United
States Code--
(i) in each terminal of departure;
(ii) in the motorcoach and visible
from a position exterior to the vehicle
at the point of departure, if the
motorcoach does not depart from a
terminal; and
(iii) at all points of sale for
such motorcoach services and
operations.
SEC. 32708. REPORT ON FEASIBILITY, BENEFITS, AND COSTS OF ESTABLISHING
A SYSTEM OF CERTIFICATION OF TRAINING PROGRAMS.
Not later than 2 years after the date of enactment of this
Act, the Secretary of Transportation shall submit a report to
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives that describes the feasibility,
benefits, and costs of establishing a system of certification
of public and private schools and of motor carriers and
motorcoach operators that provide motorcoach driver training.
SEC. 32709. COMMERCIAL DRIVER'S LICENSE PASSENGER ENDORSEMENT
REQUIREMENTS.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Transportation shall
review and assess the current knowledge and skill testing
requirements for a commercial driver's license passenger
endorsement to determine what improvements to the knowledge
test, the examination of driving skills, and the application of
such requirements are necessary to ensure the safe operation of
commercial motor vehicles designed or used to transport
passengers.
(b) Report.--Not later than 120 days after completion of
the review and assessment under subsection (a), the Secretary
of Transportation shall submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate--
(1) a report on the review and assessment conducted
under subsection (a);
(2) a plan to implement any changes to the
knowledge and skills tests; and
(3) a timeframe by which the Secretary will
implement the changes.
SEC. 32710. SAFETY INSPECTION PROGRAM FOR COMMERCIAL MOTOR VEHICLES OF
PASSENGERS.
Not later than 3 years after the date of enactment of this
Act, the Secretary of Transportation shall complete a
rulemaking proceeding to consider requiring States to establish
a program for annual inspections of commercial motor vehicles
designed or used to transport passengers, including an
assessment of--
(1) the risks associated with improperly maintained
or inspected commercial motor vehicles designed or used
to transport passengers;
(2) the effectiveness of existing Federal standards
for the inspection of such vehicles in--
(A) mitigating the risks described in
paragraph (1); and
(B) ensuring the safe and proper operation
condition of such vehicles; and
(3) the costs and benefits of a mandatory
inspection program.
SEC. 32711. REGULATIONS.
Any standard or regulation prescribed or modified pursuant
to the Motorcoach Enhanced Safety Act of 2012 shall be
prescribed or modified in accordance with section 553 of title
5, United States Code.
Subtitle H--Safe Highways and Infrastructure Preservation
SEC. 32801. COMPREHENSIVE TRUCK SIZE AND WEIGHT LIMITS STUDY.
(a) Truck Size and Weight Limits Study.--Not later than 45
days after the date of enactment of this Act, the Secretary, in
consultation with each relevant State and other applicable
Federal agencies, shall commence a comprehensive truck size and
weight limits study. The study shall--
(1) provide data on accident frequency and evaluate
factors related to accident risk of vehicles that
operate with size and weight limits that are in excess
of the Federal law and regulations in each State that
allows vehicles to operate with size and weight limits
that are in excess of the Federal law and regulations,
or to operate under a Federal exemption or grandfather
right, in comparison to vehicles that do not operate in
excess of Federal law and regulations (other than
vehicles with exemptions or grandfather rights);
(2) evaluate the impacts to the infrastructure in
each State that allows a vehicle to operate with size
and weight limits that are in excess of the Federal law
and regulations, or to operate under a Federal
exemption or grandfather right, in comparison to
vehicles that do not operate in excess of Federal law
and regulations (other than vehicles with exemptions or
grandfather rights), including--
(A) the cost and benefits of the impacts in
dollars;
(B) the percentage of trucks operating in
excess of the Federal size and weight limits;
and
(C) the ability of each State to recover
the cost for the impacts, or the benefits
incurred;
(3) evaluate the frequency of violations in excess
of the Federal size and weight law and regulations, the
cost of the enforcement of the law and regulations, and
the effectiveness of the enforcement methods;
(4) assess the impacts that vehicles that operate
with size and weight limits in excess of the Federal
law and regulations, or that operate under a Federal
exemption or grandfather right, in comparison to
vehicles that do not operate in excess of Federal law
and regulations (other than vehicles with exemptions or
grandfather rights), have on bridges, including the
impacts resulting from the number of bridge loadings;
(5) compare and contrast the potential safety and
infrastructure impacts of the current Federal law and
regulations regarding truck size and weight limits in
relation to--
(A) six-axle and other alternative
configurations of tractor-trailers; and
(B) where available, safety records of
foreign nations with truck size and weight
limits and tractor-trailer configurations that
differ from the Federal law and regulations;
and
(6) estimate--
(A) the extent to which freight would
likely be diverted from other surface
transportation modes to principal arterial
routes and National Highway System intermodal
connectors if alternative truck configuration
is allowed to operate and the effect that any
such diversion would have on other modes of
transportation;
(B) the effect that any such diversion
would have on public safety, infrastructure,
cost responsibilities, fuel efficiency, freight
transportation costs, and the environment;
(C) the effect on the transportation
network of the United States that allowing
alternative truck configuration to operate
would have; and
(D) whether allowing alternative truck
configuration to operate would result in an
increase or decrease in the total number of
trucks operating on principal arterial routes
and National Highway System intermodal
connectors; and
(7) identify all Federal rules and regulations
impacted by changes in truck size and weight limits.
(b) Report.--Not later than 2 years after the date that the
study is commenced under subsection (a), the Secretary shall
submit a final report on the study, including all findings and
recommendations, to the Committee on Commerce, Science, and
Transportation and the Committee on Environment and Public
Works of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives.
SEC. 32802. COMPILATION OF EXISTING STATE TRUCK SIZE AND WEIGHT LIMIT
LAWS.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary, in consultation with the
States, shall begin to compile--
(1) a list for each State, as applicable, that
describes each route of the National Highway System
that allows a vehicle to operate in excess of the
Federal truck size and weight limits that--
(A) was authorized under State law on or
before the date of enactment of this Act; and
(B) was in actual and lawful operation on a
regular or periodic basis (including seasonal
operations) on or before the date of enactment
of this Act;
(2) a list for each State, as applicable, that
describes--
(A) the size and weight limitations
applicable to each segment of the National
Highway System in that State as listed under
paragraph (1);
(B) each combination that exceeds the
Interstate weight limit, but that the
Department of Transportation, other Federal
agency, or a State agency has determined on or
before the date of enactment of this Act, could
be or could have been lawfully operated in the
State; and
(C) each combination that exceeds the
Interstate weight limit, but that the Secretary
determines could have been lawfully operated on
a non-Interstate segment of the National
Highway System in the State on or before the
date of enactment of this Act; and
(3) a list of each State law that designates or
allows designation of size and weight limitations in
excess of Federal law and regulations on routes of the
National Highway System, including nondivisible loads.
(b) Specifications.--The Secretary, in consultation with
the States, shall specify whether the determinations under
paragraphs (1) and (2) of subsection (a) were made by the
Department of Transportation, other Federal agency, or a State
agency.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit a final
report of the compilation under subsection (a) to the Committee
on Commerce, Science, and Transportation and the Committee on
Environment and Public Works of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
Subtitle I--Miscellaneous
PART I--MISCELLANEOUS
SEC. 32911. PROHIBITION OF COERCION.
Section 31136(a) is amended by--
(1) striking ``and'' at the end of paragraph (3);
(2) striking the period at the end of paragraph (4)
and inserting ``; and''; and
(3) adding after subsection (4) the following:
``(5) an operator of a commercial motor vehicle is
not coerced by a motor carrier, shipper, receiver, or
transportation intermediary to operate a commercial
motor vehicle in violation of a regulation promulgated
under this section, or chapter 51 or chapter 313 of
this title.''.
SEC. 32912. MOTOR CARRIER SAFETY ADVISORY COMMITTEE.
Section 4144(d) of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (49
U.S.C. 31100 note), is amended by striking ``June 30, 2012''
and inserting ``September 30, 2013''.
SEC. 32913. WAIVERS, EXEMPTIONS, AND PILOT PROGRAMS.
(a) Exemption Standards.--Section 31315(b)(4) is amended--
(1) in subparagraph (A), by inserting ``(or, in the
case of a request for an exemption from the physical
qualification standards for commercial motor vehicle
drivers, post on a web site established by the
Secretary to implement the requirements of section
31149)'' after ``Federal Register'';
(2) by amending subparagraph (B) to read as
follows:
``(B) Upon granting a request.--Upon
granting a request and before the effective
date of the exemption, the Secretary shall
publish in the Federal Register (or, in the
case of an exemption from the physical
qualification standards for commercial motor
vehicle drivers, post on a web site established
by the Secretary to implement the requirements
of section 31149) the name of the person
granted the exemption, the provisions from
which the person is exempt, the effective
period, and the terms and conditions of the
exemption.''; and
(3) in subparagraph (C), by inserting ``(or, in the
case of a request for an exemption from the physical
qualification standards for commercial motor vehicle
drivers, post on a web site established by the
Secretary to implement the requirements of section
31149)'' after ``Federal Register''.
(b) Providing Notice of Exemptions to State Personnel.--
Section 31315(b)(7) is amended to read as follows:
``(7) Notification of state compliance and
enforcement personnel.--Before the effective date of an
exemption, the Secretary shall notify a State safety
compliance and enforcement agency, and require the
agency to notify the State's roadside inspectors, that
a person will be operating pursuant to an exemption and
the terms and conditions that apply to the
exemption.''.
(c) Pilot Programs.--Section 31315(c)(1) is amended by
striking ``in the Federal Register''.
(d) Report to Congress.--Section 31315 is amended by adding
after subsection (d) the following:
``(e) Report to Congress.--The Secretary shall submit an
annual report to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives listing the waivers, exemptions, and pilot
programs granted under this section, and any impacts on safety.
``(f) Web Site.--The Secretary shall ensure that the
Federal Motor Carrier Safety Administration web site includes a
link to the web site established by the Secretary to implement
the requirements under sections 31149 and 31315. The link shall
be in a clear and conspicuous location on the home page of the
Federal Motor Carrier Safety Administration web site and be
easily accessible to the public.''.
SEC. 32914. REGISTRATION REQUIREMENTS.
(a) Requirements for Registration.--Section 13901 is
amended to read as follows:
``Sec. 1A13901. Requirements for registration
``(a) In General.--A person may provide transportation as a
motor carrier subject to jurisdiction under subchapter I of
chapter 135 or service as a freight forwarder subject to
jurisdiction under subchapter III of such chapter, or service
as a broker for transportation subject to jurisdiction under
subchapter I of such chapter only if the person is registered
under this chapter to provide such transportation or service.
``(b) Registration Numbers.--
``(1) In general.--If the Secretary registers a
person under this chapter to provide transportation or
service, including as a motor carrier, freight
forwarder, or broker, the Secretary shall issue a
distinctive registration number to the person for each
such authority to provide transportation or service for
which the person is registered.
``(2) Transportation or service type indicator.--A
number issued under paragraph (1) shall include an
indicator of the type of transportation or service for
which the registration number is issued, including
whether the registration number is issued for
registration of a motor carrier, freight forwarder, or
broker.
``(c) Specification of Authority.--For each agreement to
provide transportation or service for which registration is
required under this chapter, the registrant shall specify, in
writing, the authority under which the person is providing such
transportation or service.''.
(b) Availability of Information.--
(1) In general.--Chapter 139 is amended by adding
at the end the following:
``Sec. 13909. Availability of information
``The Secretary shall make information relating to
registration and financial security required by this chapter
publicly available on the Internet, including--
``(1) the names and business addresses of the
principals of each entity holding such registration;
``(2) the status of such registration; and
``(3) the electronic address of the entity's surety
provider for the submission of claims.''.
(2) Conforming amendment.--The analysis for chapter
139 is amended by adding at the end the following:
``13909. Availability of information.''.
SEC. 32915. ADDITIONAL MOTOR CARRIER REGISTRATION REQUIREMENTS.
Section 13902, as amended by sections 32101 and 32107(a) of
this Act, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``using
self-propelled vehicles the motor carrier owns,
rents, or leases'' after ``motor carrier''; and
(B) by adding at the end the following:
``(6) Separate registration required.--A motor
carrier may not broker transportation services unless
the motor carrier has registered as a broker under this
chapter.''; and
(2) by inserting after subsection (h) the
following:
``(i) Registration as Freight Forwarder or Broker
Required.--A motor carrier registered under this chapter--
``(1) may only provide transportation of property
with--
``(A) self-propelled motor vehicles owned
or leased by the motor carrier; or
``(B) interchanges under regulations issued
by the Secretary if the originating carrier--
``(i) physically transports the
cargo at some point; and
``(ii) retains liability for the
cargo and for payment of interchanged
carriers; and
``(2) may not arrange transportation described in
paragraph (1) unless the motor carrier has obtained a
separate registration as a freight forwarder or broker
for transportation under section 13903 or 13904, as
applicable.''.
SEC. 32916. REGISTRATION OF FREIGHT FORWARDERS AND BROKERS.
(a) Registration of Freight Forwarders.--Section 13903, as
amended by section 32107(b) of this Act, is amended--
(1) in subsection (a)--
(A) by striking ``finds that the person is
fit'' and inserting the following: ``determines
that the person--
``(1) has sufficient experience to qualify the
person to act as a freight forwarder; and
``(2) is fit''; and
(B) by striking ``and the Board'';
(2) by redesignating subsections (b) and (c) as
subsections (d) and (e), respectively;
(3) by inserting after subsection (a) the
following:
``(b) Duration.--A registration issued under subsection (a)
shall only remain in effect while the freight forwarder is in
compliance with section 13906(c).
``(c) Experience or Training Requirement.--Each freight
forwarder shall employ, as an officer, an individual who--
``(1) has at least 3 years of relevant experience;
or
``(2) provides the Secretary with satisfactory
evidence of the individual's knowledge of related
rules, regulations, and industry practices.''; and
(4) by amending subsection (d), as redesignated, to
read as follows:
``(d) Registration as Motor Carrier Required.--
``(1) In general.--A freight forwarder may not
provide transportation as a motor carrier unless the
freight forwarder has registered separately under this
chapter to provide transportation as a motor
carrier.''.
(b) Registration of Brokers.--Section 13904, as amended by
section 32107(c) of this Act, is amended--
(1) in subsection (a), by striking ``finds that the
person is fit'' and inserting the following:
``determines that the person--
``(1) has sufficient experience to qualify the
person to act as a broker for transportation; and
``(2) is fit'';
(2) by redesignating subsections (b), (c), (d), and
(e) as subsections (d), (e), (f), and (g) respectively;
(3) by inserting after subsection (a) the
following:
``(b) Duration.--A registration issued under subsection (a)
shall only remain in effect while the broker for transportation
is in compliance with section 13906(b).
``(c) Experience or Training Requirements.--Each broker
shall employ, as an officer, an individual who--
``(1) has at least 3 years of relevant experience;
or
``(2) provides the Secretary with satisfactory
evidence of the individual's knowledge of related
rules, regulations, and industry practices.'';
(4) by amending subsection (d), as redesignated, to
read as follows:
``(d) Registration as Motor Carrier Required.--
``(1) In general.--A broker for transportation may
not provide transportation as a motor carrier unless
the broker has registered separately under this chapter
to provide transportation as a motor carrier.
``(2) Limitation.--This subsection does not apply
to a motor carrier registered under this chapter or to
an employee or agent of the motor carrier to the extent
the transportation is to be provided entirely by the
motor carrier, with other registered motor carriers, or
with rail or water carriers.''; and
(5) by amending subsection (e), as redesignated, to
read as follows:
``(e) Regulation to Protect Motor Carriers and Shippers.--
Regulations of the Secretary applicable to brokers registered
under this section shall provide for the protection of motor
carriers and shippers by motor vehicle.''.
SEC. 32917. EFFECTIVE PERIODS OF REGISTRATION.
Section 13905(c) is amended to read as follows:
``(c) Effective Period.--
``(1) In general.--Except as otherwise provided in
this part, each registration issued under section
13902, 13903, or 13904--
``(A) shall be effective beginning on the
date specified by the Secretary; and
``(B) shall remain in effect for such
period as the Secretary determines appropriate
by regulation.
``(2) Reissuance of registration.--
``(A) Requirement.--Not later than 4 years
after the date of enactment of the Commercial
Motor Vehicle Safety Enhancement Act of 2012,
the Secretary shall require a freight forwarder
or broker to renew its registration issued
under this chapter.
``(B) Effective period.--Each registration
renewal under subparagraph (A)--
``(i) shall expire not later than 5
years after the date of such renewal;
and
``(ii) may be further renewed as
provided under this chapter.''.
SEC. 32918. FINANCIAL SECURITY OF BROKERS AND FREIGHT FORWARDERS.
(a) In General.--Section 13906 is amended by striking
subsections (b) and (c) and inserting the following:
``(b) Broker Financial Security Requirements.--
``(1) Requirements.--
``(A) In general.--The Secretary may
register a person as a broker under section
13904 only if the person files with the
Secretary a surety bond, proof of trust fund,
or other financial security, or a combination
thereof, in a form and amount, and from a
provider, determined by the Secretary to be
adequate to ensure financial responsibility.
``(B) Use of a group surety bond, trust
fund, or other surety.--In implementing the
standards established by subparagraph (A), the
Secretary may authorize the use of a group
surety bond, trust fund, or other financial
security, or a combination thereof, that meets
the requirements of this subsection.
``(C) Proof of trust or other financial
security.--For purposes of subparagraph (A), a
trust fund or other financial security may be
acceptable to the Secretary only if the trust
fund or other financial security consists of
assets readily available to pay claims without
resort to personal guarantees or collection of
pledged accounts receivable.
``(2) Scope of financial responsibility.--
``(A) Payment of claims.--A surety bond,
trust fund, or other financial security
obtained under paragraph (1) shall be available
to pay any claim against a broker arising from
its failure to pay freight charges under its
contracts, agreements, or arrangements for
transportation subject to jurisdiction under
chapter 135 if--
``(i) subject to the review by the
surety provider, the broker consents to
the payment;
``(ii) in any case in which the
broker does not respond to adequate
notice to address the validity of the
claim, the surety provider determines
that the claim is valid; or
``(iii) the claim is not resolved
within a reasonable period of time
following a reasonable attempt by the
claimant to resolve the claim under
clauses (i) and (ii), and the claim is
reduced to a judgment against the
broker.
``(B) Response of surety providers to
claims.--If a surety provider receives notice
of a claim described in subparagraph (A), the
surety provider shall--
``(i) respond to the claim on or
before the 30th day following the date
on which the notice was received; and
``(ii) in the case of a denial, set
forth in writing for the claimant the
grounds for the denial.
``(C) Costs and attorney's fees.--In any
action against a surety provider to recover on
a claim described in subparagraph (A), the
prevailing party shall be entitled to recover
its reasonable costs and attorney's fees.
``(3) Minimum financial security.--Each broker
subject to the requirements of this section shall
provide financial security of $75,000 for purposes of
this subsection, regardless of the number of branch
offices or sales agents of the broker.
``(4) Cancellation notice.--If a financial security
required under this subsection is canceled--
``(A) the holder of the financial security
shall provide electronic notification to the
Secretary of the cancellation not later than 30
days before the effective date of the
cancellation; and
``(B) the Secretary shall immediately post
such notification on the public Internet
Website of the Department of Transportation.
``(5) Suspension.--The Secretary shall immediately
suspend the registration of a broker issued under this
chapter if the available financial security of that
person falls below the amount required under this
subsection.
``(6) Payment of claims in cases of financial
failure or insolvency.--If a broker registered under
this chapter experiences financial failure or
insolvency, the surety provider of the broker shall--
``(A) submit a notice to cancel the
financial security to the Administrator in
accordance with paragraph (4);
``(B) publicly advertise for claims for 60
days beginning on the date of publication by
the Secretary of the notice to cancel the
financial security; and
``(C) pay, not later than 30 days after the
expiration of the 60-day period for submission
of claims--
``(i) all uncontested claims
received during such period; or
``(ii) a pro rata share of such
claims if the total amount of such
claims exceeds the financial security
available.
``(7) Penalties.--
``(A) Civil actions.--Either the Secretary
or the Attorney General of the United States
may bring a civil action in an appropriate
district court of the United States to enforce
the requirements of this subsection or a
regulation prescribed or order issued under
this subsection. The court may award
appropriate relief, including injunctive
relief.
``(B) Civil penalties.--If the Secretary
determines, after notice and opportunity for a
hearing, that a surety provider of a broker
registered under this chapter has violated the
requirements of this subsection or a regulation
prescribed under this subsection, the surety
provider shall be liable to the United States
for a civil penalty in an amount not to exceed
$10,000.
``(C) Eligibility.--If the Secretary
determines, after notice and opportunity for a
hearing, that a surety provider of a broker
registered under this chapter has violated the
requirements of this subsection or a regulation
prescribed under this subsection, the surety
provider shall be ineligible to provider broker
financial security for 3 years.
``(8) Deduction of costs prohibited.--The amount of
the financial security required under this subsection
may not be reduced by deducting attorney's fees or
administrative costs.
``(c) Freight Forwarder Financial Security Requirements.--
``(1) Requirements.--
``(A) In general.--The Secretary may
register a person as a freight forwarder under
section 13903 only if the person files with the
Secretary a surety bond, proof of trust fund,
other financial security, or a combination of
such instruments, in a form and amount, and
from a provider, determined by the Secretary to
be adequate to ensure financial responsibility.
``(B) Use of a group surety bond, trust
fund, or other financial security.--In
implementing the standards established under
subparagraph (A), the Secretary may authorize
the use of a group surety bond, trust fund,
other financial security, or a combination of
such instruments, that meets the requirements
of this subsection.
``(C) Surety bonds.--A surety bond obtained
under this section may only be obtained from a
bonding company that has been approved by the
Secretary of the Treasury.
``(D) Proof of trust or other financial
security.--For purposes of subparagraph (A), a
trust fund or other financial security may not
be accepted by the Secretary unless the trust
fund or other financial security consists of
assets readily available to pay claims without
resort to personal guarantees or collection of
pledged accounts receivable.
``(2) Scope of financial responsibility.--
``(A) Payment of claims.--A surety bond,
trust fund, or other financial security
obtained under paragraph (1) shall be available
to pay any claim against a freight forwarder
arising from its failure to pay freight charges
under its contracts, agreements, or
arrangements for transportation subject to
jurisdiction under chapter 135 if--
``(i) subject to the review by the
surety provider, the freight forwarder
consents to the payment;
``(ii) in the case the freight
forwarder does not respond to adequate
notice to address the validity of the
claim, the surety provider determines
the claim is valid; or
``(iii) the claim--
``(I) is not resolved
within a reasonable period of
time following a reasonable
attempt by the claimant to
resolve the claim under clauses
(i) and (ii); and
``(II) is reduced to a
judgment against the freight
forwarder.
``(B) Response of surety providers to
claims.--If a surety provider receives notice
of a claim described in subparagraph (A), the
surety provider shall--
``(i) respond to the claim on or
before the 30th day following receipt
of the notice; and
``(ii) in the case of a denial, set
forth in writing for the claimant the
grounds for the denial.
``(C) Costs and attorney's fees.--In any
action against a surety provider to recover on
a claim described in subparagraph (A), the
prevailing party shall be entitled to recover
its reasonable costs and attorney's fees.
``(3) Freight forwarder insurance.--
``(A) In general.--The Secretary may
register a person as a freight forwarder under
section 13903 only if the person files with the
Secretary a surety bond, insurance policy, or
other type of financial security that meets
standards prescribed by the Secretary.
``(B) Liability insurance.--A financial
security filed by a freight forwarder under
subparagraph (A) shall be sufficient to pay an
amount, not to exceed the amount of the
financial security, for each final judgment
against the freight forwarder for bodily injury
to, or death of, an individual, or loss of, or
damage to, property (other than property
referred to in subparagraph (C)), resulting
from the negligent operation, maintenance, or
use of motor vehicles by, or under the
direction and control of, the freight forwarder
while providing transfer, collection, or
delivery service under this part.
``(C) Cargo insurance.--The Secretary may
require a registered freight forwarder to file
with the Secretary a surety bond, insurance
policy, or other type of financial security
approved by the Secretary, that will pay an
amount, not to exceed the amount of the
financial security, for loss of, or damage to,
property for which the freight forwarder
provides service.
``(4) Minimum financial security.--Each freight
forwarder subject to the requirements of this section
shall provide financial security of $75,000, regardless
of the number of branch offices or sales agents of the
freight forwarder.
``(5) Cancellation notice.--If a financial security
required under this subsection is canceled--
``(A) the holder of the financial security
shall provide electronic notification to the
Secretary of the cancellation not later than 30
days before the effective date of the
cancellation; and
``(B) the Secretary shall immediately post
such notification on the public Internet web
site of the Department of Transportation.
``(6) Suspension.--The Secretary shall immediately
suspend the registration of a freight forwarder issued
under this chapter if its available financial security
falls below the amount required under this subsection.
``(7) Payment of claims in cases of financial
failure or insolvency.--If a freight forwarder
registered under this chapter experiences financial
failure or insolvency, the surety provider of the
freight forwarder shall--
``(A) submit a notice to cancel the
financial security to the Administrator in
accordance with paragraph (5);
``(B) publicly advertise for claims for 60
days beginning on the date of publication by
the Secretary of the notice to cancel the
financial security; and
``(C) pay, not later than 30 days after the
expiration of the 60-day period for submission
of claims--
``(i) all uncontested claims
received during such period; or
``(ii) a pro rata share of such
claims if the total amount of such
claims exceeds the financial security
available.
``(8) Penalties.--
``(A) Civil actions.--Either the Secretary
or the Attorney General may bring a civil
action in an appropriate district court of the
United States to enforce the requirements of
this subsection or a regulation prescribed or
order issued under this subsection. The court
may award appropriate relief, including
injunctive relief.
``(B) Civil penalties.--If the Secretary
determines, after notice and opportunity for a
hearing, that a surety provider of a freight
forwarder registered under this chapter has
violated the requirements of this subsection or
a regulation prescribed under this subsection,
the surety provider shall be liable to the
United States for a civil penalty in an amount
not to exceed $10,000.
``(C) Eligibility.--If the Secretary
determines, after notice and opportunity for a
hearing, that a surety provider of a freight
forwarder registered under this chapter has
violated the requirements of this subsection or
a regulation prescribed under this subsection,
the surety provider shall be ineligible to
provide freight forwarder financial security
for 3 years
``(9) Deduction of costs prohibited.--The amount of
the financial security required under this subsection
may not be reduced by deducting attorney's fees or
administrative costs.''.
(b) Rulemaking.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall issue regulations to
implement and enforce the requirements under subsections (b)
and (c) of section 13906 of title 49, United States Code, as
amended by subsection (a).
(c) Effective Date.--The amendments made by subsection (a)
shall take effect on the date that is 1 year after the date of
enactment of this Act.
SEC. 32919. UNLAWFUL BROKERAGE ACTIVITIES.
(a) In General.--Chapter 149 is amended by adding at the
end the following:
``SEC. 14916. UNLAWFUL BROKERAGE ACTIVITIES.
``(a) Prohibited Activities.--A person may provide
interstate brokerage services as a broker only if that person--
``(1) is registered under, and in compliance with,
section 13904; and
``(2) has satisfied the financial security
requirements under section 13906.
``(b) Exceptions.--Subsection (a) shall not apply to--
``(1) a non-vessel-operating common carrier (as
defined in section 40102 of title 46) or an ocean
freight forwarder (as defined in section 40102 of title
46) when arranging for inland transportation as part of
an international through movement involving ocean
transportation between the United States and a foreign
port;
``(2) a customs broker licensed in accordance with
section 111.2 of title 19, Code of Federal Regulations,
only to the extent that the customs broker is engaging
in a movement under a customs bond or in a transaction
involving customs business, as defined by section 111.1
of title 19, Code of Federal Regulations; or
``(3) an indirect air carrier holding a Standard
Security Program approved by the Transportation
Security Administration, only to the extent that the
indirect air carrier is engaging in the activities as
an air carrier as defined in section 40102(2) or in the
activities defined in section 40102(3).
``(c) Civil Penalties and Private Cause of Action.--Any
person who knowingly authorizes, consents to, or permits,
directly or indirectly, either alone or in conjunction with any
other person, a violation of subsection (a) is liable--
``(1) to the United States Government for a civil
penalty in an amount not to exceed $10,000 for each
violation; and
``(2) to the injured party for all valid claims
incurred without regard to amount.
``(d) Liable Parties.--The liability for civil penalties
and for claims under this section for unauthorized brokering
shall apply, jointly and severally--
``(1) to any corporate entity or partnership
involved; and
``(2) to the individual officers, directors, and
principals of such entities.''.
(b) Clerical Amendment.--The analysis for chapter 149 is
amended by adding at the end the following:
``14916. Unlawful brokerage activities.''.
PART II--HOUSEHOLD GOODS TRANSPORTATION
SEC. 32921. ADDITIONAL REGISTRATION REQUIREMENTS FOR HOUSEHOLD GOODS
MOTOR CARRIERS.
(a) Section 13902(a)(2) is amended--
(1) in subparagraph (B), by striking ``section
13702(c);'' and inserting ``section 13702(c); and'';
(2) by amending subparagraph (C) to read as
follows:
``(C) demonstrates, before being
registered, through successful completion of a
proficiency examination established by the
Secretary, knowledge and intent to comply with
applicable Federal laws relating to consumer
protection, estimating, consumers' rights and
responsibilities, and options for limitations
of liability for loss and damage.''; and
(3) by striking subparagraph (D).
(b) Compliance Reviews of New Household Goods Motor
Carriers.--Section 31144(g), as amended by section 32102 of
this Act, is amended by adding at the end the following:
``(6) Additional requirements for household goods
motor carriers.--(A) In addition to the requirements of
this subsection, the Secretary shall require, by
regulation, each registered household goods motor
carrier to undergo a consumer protection standards
review not later than 18 months after the household
goods motor carrier begins operations under such
authority.
``(B) Elements.--In the regulations issued
pursuant to subparagraph (A), the Secretary
shall establish the elements of the consumer
protections standards review, including basic
management controls. In establishing the
elements, the Secretary shall consider the
effects on small businesses and shall consider
establishing alternate locations where such
reviews may be conducted for the convenience of
small businesses.''.
(c) Effective Date.--The amendments made by this section
shall take effect 2 years after the date of enactment of this
Act.
SEC. 32922. FAILURE TO GIVE UP POSSESSION OF HOUSEHOLD GOODS.
(a) Injunctive Relief.--Section 14704(a)(1) is amended by
striking ``and 14103'' and inserting ``, 14103, and 14915(c)''.
(b) Civil Penalties.--Section 14915(a)(1) is amended by
adding at the end the following:
``The United States may assign all or a portion of the
civil penalty to an aggrieved shipper. The Secretary of
Transportation shall establish criteria upon which such
assignments shall be made. The Secretary may order, after
notice and an opportunity for a proceeding, that a person found
holding a household goods shipment hostage return the goods to
an aggrieved shipper.''.
SEC. 32923. SETTLEMENT AUTHORITY.
(a) Settlement of General Civil Penalties.--Section 14901
is amended by adding at the end the following:
``(h) Settlement of Household Goods Civil Penalties.--
Nothing in this section shall be construed to prohibit the
Secretary from accepting partial payment of a civil penalty as
part of a settlement agreement in the public interest, or from
holding imposition of any part of a civil penalty in
abeyance.''.
(b) Settlement of Household Goods Civil Penalties.--Section
14915(a) is amended by adding at the end the following:
``(4) Settlement authority.--Nothing in this
section shall be construed as prohibiting the Secretary
from accepting partial payment of a civil penalty as
part of a settlement agreement in the public interest,
or from holding imposition of any part of a civil
penalty in abeyance.''.
PART III--TECHNICAL AMENDMENTS
SEC. 32931. UPDATE OF OBSOLETE TEXT.
(a) Section 31137(g), as redesignated by section 32301 of
this Act, is amended by striking ``Not later than December 1,
1990, the Secretary shall prescribe'' and inserting ``The
Secretary shall maintain''.
(b) Section 31151(a) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) In general.--The Secretary of Transportation
shall maintain a program to ensure that intermodal
equipment used to transport intermodal containers is
safe and systematically maintained.''; and
(2) by striking paragraph (4).
(c) Section 31307(b) is amended by striking ``Not later
than December 18, 1994, the Secretary shall prescribe'' and
inserting ``The Secretary shall maintain''.
(d) Section 31310(g)(1) is amended by striking ``Not later
than 1 year after the date of enactment of this Act, the'' and
inserting ``The''.
SEC. 32932. CORRECTION OF INTERSTATE COMMERCE COMMISSION REFERENCES.
(a) Safety Information and Intervention in Interstate
Commerce Commission Proceedings.--Chapter 3 is amended--
(1) by repealing section 307;
(2) in the analysis, by striking the item relating
to section 307;
(3) in section 333(d)(1)(C), by striking
``Interstate Commerce Commission'' and inserting
``Surface Transportation Board''; and
(4) in section 333(e)--
(A) by striking ``Interstate Commerce
Commission'' and inserting ``Surface
Transportation Board''; and
(B) by striking ``Commission'' and
inserting ``Board''.
(b) Filing and Procedure for Application to Abandon or
Discontinue.--Section 10903(b)(2) is amended by striking
``24706(c) of this title'' and inserting ``24706(c) of this
title before May 31, 1998''.
(c) Technical Amendments to Part C of Subtitle V.--
(1) Section 24307(b)(3) is amended by striking
``Interstate Commerce Commission'' and inserting
``Surface Transportation Board''.
(2) Section 24311 is amended--
(A) by striking ``Interstate Commerce
Commission'' and inserting ``Surface
Transportation Board'';
(B) by striking ``Commission'' each place
it appears and inserting ``Board''; and
(C) by striking ``Commission's'' and
inserting ``Board's''.
(3) Section 24902 is amended--
(A) by striking ``Interstate Commerce
Commission'' each place it appears and
inserting ``Surface Transportation Board''; and
(B) by striking ``Commission'' each place
it appears and inserting ``Board''.
(4) Section 24904 is amended--
(A) by striking ``Interstate Commerce
Commission'' and inserting ``Surface
Transportation Board''; and
(B) by striking ``Commission'' each place
it appears and inserting ``Board''.
SEC. 32933. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 13905(f)(1)(A) is amended by striking ``section
13904(c)'' and inserting ``section 13904(e)'';
(b) Section 14504a(c)(1) is amended--
(1) in subparagraph (C), by striking ``sections''
and inserting ``section''; and
(2) in subparagraph (D)(ii)(II) by striking the
period at the end and inserting ``; and''.
(c) Section 31103(a) is amended by striking ``section
31102(b)(1)(E)'' and inserting ``section 31102(b)(2)(E)''.
(d) Section 31103(b) is amended by striking ``authorized by
section 31104(f)(2)''.
(e) Section 31309(b)(2) is amended by striking ``31308(2)''
and inserting ``31308(3)''.
SEC. 32934. EXEMPTIONS FROM REQUIREMENTS FOR COVERED FARM VEHICLES.
(a) Federal Requirements.--A covered farm vehicle,
including the individual operating that vehicle, shall be
exempt from the following:
(1) Any requirement relating to commercial driver's
licenses established under chapter 313 of title 49,
United States Code.
(2) Any requirement relating to drug-testing
established under chapter 313 of title 49, United
States Code.
(3) Any requirement relating to medical
certificates established under--
(A) subchapter III of chapter 311 of title
49, United States Code; or
(B) chapter 313 of title 49, United States
Code.
(4) Any requirement relating to hours of service
established under--
(A) subchapter III of chapter 311 of title
49, United States Code; or
(B) chapter 315 of title 49, United States
Code.
(5) Any requirement relating to vehicle inspection,
repair, and maintenance established under--
(A) subchapter III of chapter 311 of title
49, United States Code; or
(B) chapter 315 of title 49, United States
Code.
(b) State Requirements.--
(1) In general.--Federal transportation funding to
a State may not be terminated, limited, or otherwise
interfered with as a result of the State exempting a
covered farm vehicle, including the individual
operating that vehicle, from any State requirement
relating to the operation of that vehicle.
(2) Exception.--Paragraph (1) does not apply with
respect to a covered farm vehicle transporting
hazardous materials that require a placard.
(c) Covered Farm Vehicle Defined.--
(1) In general.--In this section, the term
``covered farm vehicle'' means a motor vehicle
(including an articulated motor vehicle)--
(A) that--
(i) is traveling in the State in
which the vehicle is registered or
another State;
(ii) is operated by--
(I) a farm owner or
operator;
(II) a ranch owner or
operator; or
(III) an employee or family
member of an individual
specified in subclause (I) or
(II);
(iii) is transporting to or from a
farm or ranch--
(I) agricultural
commodities;
(II) livestock; or
(III) machinery or
supplies;
(iv) except as provided in
paragraph (2), is not used in the
operations of a for-hire motor carrier;
and
(v) is equipped with a special
license plate or other designation by
the State in which the vehicle is
registered to allow for identification
of the vehicle as a farm vehicle by law
enforcement personnel; and
(B) that has a gross vehicle weight rating
or gross vehicle weight, whichever is greater,
that is--
(i) 26,001 pounds or less; or
(ii) greater than 26,001 pounds and
traveling within the State or within
150 air miles of the farm or ranch with
respect to which the vehicle is being
operated.
(2) Inclusion.--In this section, the term ``covered
farm vehicle'' includes a motor vehicle that meets the
requirements of paragraph (1) (other than paragraph
(1)(A)(iv)) and--
(A) is operated pursuant to a crop share
farm lease agreement;
(B) is owned by a tenant with respect to
that agreement; and
(C) is transporting the landlord's portion
of the crops under that agreement.
(d) Safety Study.--The Secretary of Transportation shall
conduct a study of the exemption required by subsection (a) as
follows:
(1) Data and analysis of covered farm vehicles
shall include--
(A) the number of vehicles that are
operated subject to each of the regulatory
exemptions permitted under subsection (a);
(B) the number of drivers that operate
covered farm vehicles subject to each of the
regulatory exemptions permitted under
subsection (a);
(C) the number of crashes involving covered
farm vehicles;
(D) the number of occupants and non-
occupants injured in crashes involving covered
farm vehicles;
(E) the number of fatalities of occupants
and non-occupants killed in crashes involving
farm vehicles;
(F) crash investigations and accident
reconstruction investigations of all fatalities
in crashes involving covered farm vehicles;
(G) overall operating mileage of covered
farm vehicles;
(H) numbers of covered farm vehicles that
operate in neighboring States; and
(I) any other data the Secretary deems
necessary to analyze and include.
(2) A listing of State regulations issued and
maintained in each State that are identical to the
Federal regulations that are subject to exemption in
subsection (a).
(3) The Secretary shall report the findings of the
study to the appropriate committees of Congress not
later than 18 months after the date of enactment of
this Act.
(e) Construction.--Nothing in this section shall be
construed as authority for the Secretary of Transportation to
prescribe regulations.
TITLE III--HAZARDOUS MATERIALS TRANSPORTATION SAFETY IMPROVEMENT ACT OF
2012
SEC. 33001. SHORT TITLE.
This title may be cited as the ``Hazardous Materials
Transportation Safety Improvement Act of 2012''.
SEC. 33002. DEFINITION.
In this title, the term ``Secretary'' means the Secretary
of Transportation.
SEC. 33003. REFERENCES TO TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of title 49, United States Code.
SEC. 33004. TRAINING FOR EMERGENCY RESPONDERS.
(a) Training Curriculum.--Section 5115 is amended--
(1) in subsection (b)(1)(B), by striking ``basic'';
(2) in subsection (b)(2), by striking ``basic'';
and
(3) in subsection (c), by striking ``basic''.
(b) Operations Level Training.--Section 5116 is amended--
(1) in subsection (b)(1), by adding at the end the
following: ``To the extent that a grant is used to
train emergency responders, the State or Indian tribe
shall provide written certification to the Secretary
that the emergency responders who receive training
under the grant will have the ability to protect nearby
persons, property, and the environment from the effects
of accidents or incidents involving the transportation
of hazardous material in accordance with existing
regulations or National Fire Protection Association
standards for competence of responders to accidents and
incidents involving hazardous materials.'';
(2) in subsection (j)--
(A) in paragraph (1), by striking ``funds''
and all that follows through ``fighting fires
for'' and inserting ``funds and through a
competitive process, make a grant or make
grants to national nonprofit fire service
organizations for'';
(B) in paragraph (3)(A), by striking
``train'' and inserting ``provide training,
including portable training, for'';
(C) in paragraph (4)--
(i) by striking ``train'' and
inserting ``provide training, including
portable training, for''; and
(ii) by inserting ``comply with
Federal regulations and national
consensus standards for hazardous
materials response and'' after
``training course shall'';
(D) by redesignating paragraph (5) as
paragraph (8); and
(E) by inserting after paragraph (4) the
following:
``(5) The Secretary may not award a grant to an
organization under this subsection unless the
organization ensures that emergency responders who
receive training under the grant will have the ability
to protect nearby persons, property, and the
environment from the effects of accidents or incidents
involving the transportation of hazardous material in
accordance with existing regulations or National Fire
Protection Association standards for competence of
responders to accidents and incidents involving
hazardous materials.
``(6) Notwithstanding paragraphs (1) and (3), to
the extent determined appropriate by the Secretary, a
grant awarded by the Secretary to an organization under
this subsection to conduct hazardous material response
training programs may be used to train individuals with
responsibility to respond to accidents and incidents
involving hazardous material.
``(7) For the purposes of this subsection, the term
`portable training' means live, instructor-led training
provided by certified fire service instructors that can
be offered in any suitable setting, rather than
specific designated facilities. Under this training
delivery model, instructors travel to locations
convenient to students and utilize local facilities and
resources.''; and
(3) in subsection (k)--
(A) by striking ``annually'' and inserting
``an annual report'';
(B) by inserting ``the report'' after
``make available'';
(C) by striking ``information'' and
inserting ``. The report submitted under this
subsection shall include information''; and
(D) by striking ``The report shall
identify'' and all that follows and inserting
the following: ``The report submitted under
this subsection shall identify the ultimate
recipients of such grants and include--
``(A) a detailed accounting and description
of each grant expenditure by each grant
recipient, including the amount of, and purpose
for, each expenditure;
``(B) the number of persons trained under
the grant program, by training level;
``(C) an evaluation of the efficacy of such
planning and training programs; and
``(D) any recommendations the Secretary may
have for improving such grant programs.''.
SEC. 33005. PAPERLESS HAZARD COMMUNICATIONS PILOT PROGRAM.
(a) In General.--The Secretary may conduct pilot projects
to evaluate the feasibility and effectiveness of using
paperless hazard communications systems. At least 1 of the
pilot projects under this section shall take place in a rural
area.
(b) Requirements.--In conducting pilot projects under this
section, the Secretary--
(1) may not waive the requirements under section
5110 of title 49, United States Code; and
(2) shall consult with organizations representing--
(A) fire services personnel;
(B) law enforcement and other appropriate
enforcement personnel;
(C) other emergency response providers;
(D) persons who offer hazardous material
for transportation;
(E) persons who transport hazardous
material by air, highway, rail, and water; and
(F) employees of persons who transport or
offer for transportation hazardous material by
air, highway, rail, and water.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall--
(1) prepare a report on the results of the pilot
projects carried out under this section, including--
(A) a detailed description of the pilot
projects;
(B) an evaluation of each pilot project,
including an evaluation of the performance of
each paperless hazard communications system in
such project;
(C) an assessment of the safety and
security impact of using paperless hazard
communications systems, including any impact on
the public, emergency response, law
enforcement, and the conduct of inspections and
investigations;
(D) an analysis of the associated benefits
and costs of using the paperless hazard
communications systems for each mode of
transportation; and
(E) a recommendation that incorporates the
information gathered in subparagraphs (A), (B),
(C), and (D) on whether paperless hazard
communications systems should be permanently
incorporated into the Federal hazardous
material transportation safety program under
chapter 51 of title 49, United States Code; and
(2) submit a final report to the Committee on
Commerce, Science, and Transportation of the Senate and
the Committee on Transportation and Infrastructure of
the House of Representatives that contains the results
of the pilot projects carried out under this section,
including the matters described in paragraph (1).
(d) Paperless Hazard Communications System Defined.--In
this section, the term ``paperless hazard communications
system'' means the use of advanced communications methods, such
as wireless communications devices, to convey hazard
information between all parties in the transportation chain,
including emergency responders and law enforcement personnel.
The format of communication may be equivalent to that used by
the carrier.
SEC. 33006. IMPROVING DATA COLLECTION, ANALYSIS, AND REPORTING.
(a) Assessment.--
(1) In general.--Not later than 6 months after the
date of enactment of this Act, the Secretary, in
consultation with the Commandant of the United States
Coast Guard, as appropriate, shall conduct an
assessment to improve the collection, analysis,
reporting, and use of data related to accidents and
incidents involving the transportation of hazardous
material.
(2) Review.--The assessment conducted under this
subsection shall review the methods used by the
Pipeline and Hazardous Materials Safety Administration
(referred to in this section as the ``Administration'')
for collecting, analyzing, and reporting accidents and
incidents involving the transportation of hazardous
material, including the adequacy of--
(A) information requested on the accident
and incident reporting forms required to be
submitted to the Administration;
(B) methods used by the Administration to
verify that the information provided on such
forms is accurate and complete;
(C) accident and incident reporting
requirements, including whether such
requirements should be expanded to include
shippers and consignees of hazardous materials;
(D) resources of the Administration related
to data collection, analysis, and reporting,
including staff and information technology; and
(E) the database used by the Administration
for recording and reporting such accidents and
incidents, including the ability of users to
adequately search the database and find
information.
(b) Development of Action Plan.--Not later than 9 months
after the date of enactment of this Act, the Secretary shall
develop an action plan and timeline for improving the
collection, analysis, reporting, and use of data by the
Administration, including revising the database of the
Administration, as appropriate.
(c) Submission to Congress.--Not later than 15 days after
the completion of the action plan and timeline under subsection
(c), the Secretary shall submit the action plan and timeline to
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives.
(d) Reporting Requirements.--Section 5125(b)(1)(D) is
amended by inserting ``and other written hazardous materials
transportation incident reporting involving State or local
emergency responders in the initial response to the incident''
before the period at the end.
SEC. 33007. HAZARDOUS MATERIAL TECHNICAL ASSESSMENT, RESEARCH AND
DEVELOPMENT, AND ANALYSIS PROGRAM.
(a) In General.--Chapter 51 is amended by inserting after
section 5117 the following:
``Sec. 5118. Hazardous material technical assessment, research and
development, and analysis program
``(a) Risk Reduction.--
``(1) Program authorized.--The Secretary of
Transportation may develop and implement a hazardous
material technical assessment, research and
development, and analysis program for the purpose of--
``(A) reducing the risks associated with
the transportation of hazardous material; and
``(B) identifying and evaluating new
technologies to facilitate the safe, secure,
and efficient transportation of hazardous
material.
``(2) Coordination.--In developing the program
under paragraph (1), the Secretary shall--
``(A) utilize information gathered from
other modal administrations with similar
programs; and
``(B) coordinate with other modal
administrations, as appropriate.
``(b) Cooperation.--In carrying out subsection (a), the
Secretary shall work cooperatively with regulated and other
entities, including shippers, carriers, emergency responders,
State and local officials, and academic institutions.''.
(b) Conforming Amendment.--The chapter analysis for chapter
51 is amended by inserting after the item relating to section
5117 the following:
``5118. Hazardous material technical assessment, research and
development, and analysis program.''.
SEC. 33008. HAZARDOUS MATERIAL ENFORCEMENT TRAINING.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall develop uniform
performance standards for training hazardous material
inspectors and investigators on--
(1) how to collect, analyze, and publish findings
from inspections and investigations of accidents or
incidents involving the transportation of hazardous
material; and
(2) how to identify noncompliance with regulations
issued under chapter 51 of title 49, United States
Code, and take appropriate enforcement action.
(b) Standards and Guidelines.--The Secretary may develop--
(1) guidelines for hazardous material inspector and
investigator qualifications;
(2) best practices and standards for hazardous
material inspector and investigator training programs;
and
(3) standard protocols to coordinate investigation
efforts among Federal, State, and local jurisdictions
on accidents or incidents involving the transportation
of hazardous material.
(c) Availability.--The standards, protocols, and guidelines
established under this section--
(1) shall be mandatory for--
(A) the Department of Transportation's
multimodal personnel conducting hazardous
material enforcement inspections or
investigations; and
(B) State employees who conduct federally
funded compliance reviews, inspections, or
investigations; and
(2) shall be made available to Federal, State, and
local hazardous material safety enforcement personnel.
SEC. 33009. INSPECTIONS.
(a) Notice of Enforcement Measures.--Section 5121(c)(1) is
amended--
(1) in subparagraph (E), by striking ``and'' at the
end;
(2) in subparagraph (F), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(G) shall provide to the affected
offeror, carrier, packaging manufacturer or
tester, or other person responsible for the
package reasonable notice of--
``(i) his or her decision to
exercise his or her authority under
paragraph (1);
``(ii) any findings made; and
``(iii) any actions being taken as
a result of a finding of
noncompliance.''.
(b) Regulations.--
(1) Matters to be addressed.--Section 5121(e) is
amended by adding at the end the following:
``(3) Matters to be addressed.--The regulations
issued under this subsection shall address--
``(A) the safe and expeditious resumption
of transportation of perishable hazardous
material, including radiopharmaceuticals and
other medical products, that may require timely
delivery due to life-threatening situations;
``(B) the means by which--
``(i) noncompliant packages that
present an imminent hazard are placed
out-of-service until the condition is
corrected; and
``(ii) noncompliant packages that
do not present a hazard are moved to
their final destination;
``(C) appropriate training and equipment
for inspectors; and
``(D) the proper closure of packaging in
accordance with the hazardous material
regulations.''.
(2) Finalizing regulations.--In accordance with
section 5103(b)(2) of title 49, United States Code, not
later than 1 year after the date of enactment of this
Act, the Secretary shall take all actions necessary to
finalize a regulation under paragraph (1) of this
subsection.
(c) Grants and Cooperative Agreements.--Section 5121(g)(1)
is amended by inserting ``safety and'' before ``security''.
SEC. 33010. CIVIL PENALTIES.
Section 5123 is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``at least $250
but''; and
(ii) by striking ``$50,000'' and
inserting ``$75,000'';
(B) in paragraph (2), by striking
``$100,000'' and inserting ``$175,000''; and
(C) by amending paragraph (3) to read as
follows:
``(3) If the violation is related to training, a
person described in paragraph (1) shall be liable for a
civil penalty of at least $450.''; and
(2) by adding at the end the following:
``(h) Penalty for Obstruction of Inspections and
Investigations.--
``(1) The Secretary may impose a penalty on a
person who obstructs or prevents the Secretary from
carrying out inspections or investigations under
subsection (c) or (i) of section 5121.
``(2) For the purposes of this subsection, the term
`obstructs' means actions that were known, or
reasonably should have been known, to prevent, hinder,
or impede an investigation.
``(i) Prohibition on Hazardous Material Operations After
Nonpayment of Penalties.--
``(1) In general.--Except as provided under
paragraph (2), a person subject to the jurisdiction of
the Secretary under this chapter who fails to pay a
civil penalty assessed under this chapter, or fails to
arrange and abide by an acceptable payment plan for
such civil penalty, may not conduct any activity
regulated under this chapter beginning on the 91st day
after the date specified by order of the Secretary for
payment of such penalty unless the person has filed a
formal administrative or judicial appeal of the
penalty.
``(2) Exception.--Paragraph (1) shall not apply to
any person who is unable to pay a civil penalty because
such person is a debtor in a case under chapter 11 of
title 11.
``(3) Rulemaking.--Not later than 2 years after the
date of enactment of this subsection, the Secretary,
after providing notice and an opportunity for public
comment, shall issue regulations that--
``(A) set forth procedures to require a
person who is delinquent in paying civil
penalties to cease any activity regulated under
this chapter until payment has been made or an
acceptable payment plan has been arranged; and
``(B) ensures that the person described in
subparagraph (A)--
``(i) is notified in writing; and
``(ii) is given an opportunity to
respond before the person is required
to cease the activity.''.
SEC. 33011. REPORTING OF FEES.
Section 5125(f)(2) is amended by striking ``, upon the
Secretary's request,'' and inserting ``biennially''.
SEC. 33012. SPECIAL PERMITS, APPROVALS, AND EXCLUSIONS.
(a) Rulemaking.--Not later than 2 years after the date of
enactment of this Act, the Secretary, after providing notice
and an opportunity for public comment, shall issue regulations
that establish--
(1) standard operating procedures to support
administration of the special permit and approval
programs; and
(2) objective criteria to support the evaluation of
special permit and approval applications.
(b) Review of Special Permits.--
(1) Review.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall conduct a
review and analysis of special permits that have been
in continuous effect for a 10-year period to determine
which special permits may be converted into the
hazardous materials regulations.
(2) Factors.--In conducting the review and analysis
under paragraph (1), the Secretary may consider--
(A) the safety record for hazardous
materials transported under the special permit;
(B) the application of a special permit;
(C) the suitability of provisions in the
special permit for incorporation into the
hazardous materials regulations; and
(D) rulemaking activity in related areas.
(3) Rulemaking.--After completing the review and
analysis under paragraph (1), but not later than 3
years after the date of enactment of this Act, and
after providing notice and opportunity for public
comment, the Secretary shall issue regulations to
incorporate into the hazardous materials regulations
any special permits identified in the review under
paragraph (1) that the Secretary determines are
appropriate for incorporation, based on the factors
identified in paragraph (2).
(c) Incorporation Into Regulation.--Section 5117 is amended
by adding at the end the following:
``(f) Incorporation Into Regulations.--
``(1) In general.--Not later than 1 year after the
date on which a special permit has been in continuous
effect for a 10-year period, the Secretary shall
conduct a review and analysis of that special permit to
determine whether it may be converted into the
hazardous materials regulations.
``(2) Factors.--In conducting the review and
analysis under paragraph (1), the Secretary may
consider--
``(A) the safety record for hazardous
materials transported under the special permit;
``(B) the application of a special permit;
``(C) the suitability of provisions in the
special permit for incorporation into the
hazardous materials regulations; and
``(D) rulemaking activity in related areas.
``(3) Rulemaking.--After completing the review and
analysis under paragraph (1) and after providing notice
and opportunity for public comment, the Secretary shall
either institute a rulemaking to incorporate the
special permit into the hazardous materials regulations
or publish in the Federal Register the Secretary's
justification for why the special permit is not
appropriate for incorporation into the regulations.''.
SEC. 33013. HIGHWAY ROUTING DISCLOSURES.
(a) List of Route Designations.--Section 5112(c) is
amended--
(1) by striking ``In coordination'' and inserting
the following:
``(1) In general.--In coordination''; and
(2) by adding at the end the following:
``(2) State responsibilities.--
``(A) In general.--Each State shall submit
to the Secretary, in a form and manner to be
determined by the Secretary and in accordance
with subparagraph (B)--
``(i) the name of the State agency
responsible for hazardous material
highway route designations; and
``(ii) a list of the State's
currently effective hazardous material
highway route designations.
``(B) Frequency.--Each State shall submit
the information described in subparagraph
(A)(ii)--
``(i) at least once every 2 years;
and
``(ii) not later than 60 days after
a hazardous material highway route
designation is established, amended, or
discontinued.''.
(b) Compliance With Section 5112.--Section 5125(c)(1) is
amended by inserting ``, and is published in the Department's
hazardous materials route registry under section 5112(c)''
before the period at the end.
SEC. 33014. MOTOR CARRIER SAFETY PERMITS.
(a) Review.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall conduct a study of,
and transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report on, the implementation of the
hazardous material safety permit program under section 5109 of
title 49, United States Code. In conducting the study, the
Secretary shall review, at a minimum--
(1) the list of hazardous materials requiring a
safety permit;
(2) the number of permits that have been issued,
denied, revoked, or suspended since inception of the
program and the number of commercial motor carriers
that have never had a permit denied, revoked, or
suspended since inception of the program;
(3) the reasons for such denials, revocations, or
suspensions;
(4) the criteria used by the Federal Motor Carrier
Safety Administration to determine whether a hazardous
material safety permit issued by a State is equivalent
to the Federal permit; and
(5) actions the Secretary could implement to
improve the program, including whether to provide
opportunities for an additional level of fitness review
prior to the denial, revocation, or suspension of a
safety permit.
(b) Actions Taken.--Not later than 2 years after the date
of enactment of this Act, based on the study conducted under
subsection (a), the Secretary shall either institute a
rulemaking to make any necessary improvements to the hazardous
materials safety permit program under section 5109 of title 49,
United States Code or publish in the Federal Register the
Secretary's justification for why a rulemaking is not
necessary.
SEC. 33015. WETLINES.
(a) Evaluation.--Not later than 1 year after the date of
enactment of this Act, the United States Government
Accountability Office shall evaluate, and transmit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives, a report on the safety of
transporting flammable liquids in the external product piping
of cargo tank motor vehicles (commonly referred to as
wetlines). The evaluation shall--
(1) review the safety of transporting flammable
liquids in the external product piping of cargo tank
motor vehicles;
(2) accurately quantify the number of incidents
involving the transportation of flammable liquids in
external product piping of cargo tank motor vehicles;
(3) identify various alternatives to loading,
transporting, and unloading flammable liquids in such
piping;
(4) examine the costs and benefits of each
alternative; and
(5) identify any obstacles to implementing each
alternative.
(b) Regulations.--The Secretary may not issue a final rule
regarding transporting flammable liquids in the external
product piping of cargo tank motor vehicles prior to completion
of the evaluation conducted under subsection (a), or 2 years
after the date of enactment of this Act, whichever is earlier,
unless the Secretary determines that a risk to public safety,
property, or the environment is present or an imminent hazard
(as defined in section 5102 of title 49, United States Code)
exists and that the regulations will address the risk or
hazard.
SEC. 33016. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND GRANTS.
Section 5107(e)(2) is amended--
(1) by inserting ``through a competitive process''
between ``made'' and ``to''; and
(2) by striking ``hazmat employee''.
SEC. 33017. AUTHORIZATION OF APPROPRIATIONS.
Section 5128 is amended to read as follows:
``Sec. 5128. Authorization of appropriations
``(a) In General.--There are authorized to be appropriated
to the Secretary to carry out this chapter (except sections
5107(e), 5108(g)(2), 5113, 5115, 5116, and 5119)--
``(1) $42,338,000 for fiscal year 2013; and
``(2) $42,762,000 for fiscal year 2014.
``(b) Hazardous Materials Emergency Preparedness Fund.--
From the Hazardous Materials Emergency Preparedness Fund
established under section 5116(i), the Secretary may expend,
during each of fiscal years 2013 and 2014--
``(1) $188,000 to carry out section 5115;
``(2) $21,800,000 to carry out subsections (a) and
(b) of section 5116, of which not less than $13,650,000
shall be available to carry out section 5116(b);
``(3) $150,000 to carry out section 5116(f);
``(4) $625,000 to publish and distribute the
Emergency Response Guidebook under section 5116(i)(3);
and
``(5) $1,000,000 to carry out section 5116(j).
``(c) Hazardous Materials Training Grants.--From the
Hazardous Materials Emergency Preparedness Fund established
pursuant to section 5116(i), the Secretary may expend
$4,000,000 for each of the fiscal years 2013 and 2014 to carry
out section 5107(e).
``(d) Credits to Appropriations.--
``(1) Expenses.--In addition to amounts otherwise
made available to carry out this chapter, the Secretary
may credit amounts received from a State, Indian tribe,
or other public authority or private entity for
expenses the Secretary incurs in providing training to
the State, authority, or entity.
``(2) Availability of amounts.--Amounts made
available under this section shall remain available
until expended.''.
TITLE IV--SPORT FISH RESTORATION AND RECREATIONAL BOATING SAFETY ACT OF
2012
SEC. 34001. SHORT TITLE.
This title may be cited as the ``Sport Fish Restoration and
Recreational Boating Safety Act of 2012''.
SEC. 34002. AMENDMENT OF FEDERAL AID IN SPORT FISH RESTORATION ACT.
Section 4 of the Federal Aid in Fish Restoration Act (16
U.S.C. 777c) is amended--
(1) in subsection (a), by striking ``of fiscal
years 2006 through 2011 and for the period beginning on
October 1, 2011, and ending on June 30, 2012,'' and
inserting ``fiscal year through 2014,''; and
(2) in subsection (b)(1)(A), by striking ``of
fiscal years 2006 through 2011 and for the period
beginning on October 1, 2011, and ending on March 31,
2012,'' and inserting ``fiscal year through 2014,''.
TITLE V--MISCELLANEOUS
SEC. 35001. OVERFLIGHTS IN GRAND CANYON NATIONAL PARK.
(a) Determinations With Respect to Substantial Restoration
of Natural Quiet and Experience.--
(1) In general.--Notwithstanding any other
provision of law, for purposes of section 3(b)(1) of
Public Law 100-91 (16 U.S.C. 1a-1 note), the
substantial restoration of the natural quiet and
experience of the Grand Canyon National Park (in this
section referred to as the ``Park'') shall be
considered to be achieved in the Park if, for at least
75 percent of each day, 50 percent of the Park is free
of sound produced by commercial air tour operations
that have an allocation to conduct commercial air tours
in the Park as of the date of enactment of this Act.
(2) Considerations.--
(A) In general.--For purposes of
determining whether substantial restoration of
the natural quiet and experience of the Park
has been achieved in accordance with paragraph
(1), the Secretary of the Interior (in this
section referred to as the ``Secretary'') shall
use--
(i) the 2-zone system for the Park
in effect on the date of enactment of
this Act to assess impacts relating to
substantial restoration of natural
quiet at the Park, including--
(I) the thresholds for
noticeability and audibility;
and
(II) the distribution of
land between the 2 zones; and
(ii) noise modeling science that
is--
(I) developed for use at
the Park, specifically
Integrated Noise Model Version
6.2;
(II) validated by
reasonable standards for
conducting field observations
of model results; and
(III) accepted and
validated by the Federal
Interagency Committee on
Aviation Noise.
(B) Sound from other sources.--The
Secretary shall not consider sound produced by
sources other than commercial air tour
operations, including sound emitted by other
types of aircraft operations or other noise
sources, for purposes of--
(i) making recommendations,
developing a final plan, or issuing
regulations relating to commercial air
tour operations in the Park; or
(ii) determining under paragraph
(1) whether substantial restoration of
the natural quiet and experience of the
Park has been achieved.
(3) Continued monitoring.--The Secretary shall
continue monitoring noise from aircraft operating over
the Park below 17,999 feet MSL to ensure continued
compliance with the substantial restoration of natural
quiet and experience of the Park.
(4) Day defined.--For purposes of this section, the
term ``day'' means the hours between 7:00 a.m. and 7:00
p.m.
(b) Conversion to Quiet Technology Aircraft.--
(1) In general.--Not later than 15 years after the
date of enactment of this Act, all commercial air tour
aircraft operating in the Grand Canyon National Park
Special Flight Rules Area shall be required to fully
convert to quiet aircraft technology (as determined in
accordance with regulations in effect on the day before
the date of enactment of this Act).
(2) Conversion incentives.--Not later than 60 days
after the date of enactment of this Act, the Secretary
and the Administrator of the Federal Aviation
Administration shall provide incentives for commercial
air tour operators that convert to quiet aircraft
technology (as determined in accordance with the
regulations in effect on the day before the date of
enactment of this Act) before the date specified in
paragraph (1), such as increasing the flight
allocations for such operators on a net basis
consistent with section 804(c) of the National Park Air
Tours Management Act of 2000 (title VIII of Public Law
106-181), provided that the cumulative impact of such
operations does not increase noise at Grand Canyon
National Park.
SEC. 35002. COMMERCIAL AIR TOUR OPERATIONS.
Section 40128(b)(1)(C) of title 49, United States Code, is
amended to read as follows:
``(C) Exception.--An application to begin
or expand commercial air tour operations at
Crater Lake National Park or Great Smoky
Mountains National Park may be denied without
the establishment of an air tour management
plan by the Director of the National Park
Service if the Director determines that such
operations would adversely affect park
resources or visitor experiences.''.
SEC. 35003. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS.
Section 40125 of title 49, United States Code, is amended
by adding at the end the following:
``(d) Search and Rescue Purposes.--An aircraft described in
section 40102(a)(41)(D) that is not exclusively leased for at
least 90 continuous days by the government of a State, the
District of Columbia, or a territory or possession of the
United States or a political subdivision of 1 of those
governments, qualifies as a public aircraft if the
Administrator determines that--
``(1) there are extraordinary circumstances;
``(2) the aircraft will be used for the performance
of search and rescue missions;
``(3) a community would not otherwise have access
to search and rescue services; and
``(4) a government entity demonstrates that
granting the waiver is necessary to prevent an undue
economic burden on that government.''.
DIVISION D--FINANCE
SEC. 40001. SHORT TITLE.
This division may be cited as the ``Highway Investment, Job
Creation, and Economic Growth Act of 2012''.
TITLE I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND
RELATED TAXES
SEC. 40101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.
(a) Highway Trust Fund.--Section 9503 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``July 1, 2012'' in subsections
(b)(6)(B), (c)(1), and (e)(3) and inserting ``October
1, 2014'', and
(2) by striking ``Surface Transportation Extension
Act of 2012'' in subsections (c)(1) and (e)(3) and
inserting ``MAP-21''.
(b) Sport Fish Restoration and Boating Trust Fund.--Section
9504 of the Internal Revenue Code of 1986 is amended--
(1) by striking ``Surface Transportation Extension
Act of 2012'' each place it appears in subsection
(b)(2) and inserting ``MAP-21'', and
(2) by striking ``July 1, 2012'' in subsection
(d)(2) and inserting ``October 1, 2014''.
(c) Leaking Underground Storage Tank Trust Fund.--Paragraph
(2) of section 9508(e) of the Internal Revenue Code of 1986 is
amended by striking ``July 1, 2012'' and inserting ``October 1,
2014''.
(d) Effective Date.--The amendments made by this section
shall take effect on July 1, 2012.
SEC. 40102. EXTENSION OF HIGHWAY-RELATED TAXES.
(a) In General.--
(1) Each of the following provisions of the
Internal Revenue Code of 1986 is amended by striking
``June 30, 2012'' and inserting ``September 30, 2016'':
(A) Section 4041(a)(1)(C)(iii)(I).
(B) Section 4041(m)(1)(B).
(C) Section 4081(d)(1).
(2) Each of the following provisions of such Code
is amended by striking ``July 1, 2012'' and inserting
``October 1, 2016'':
(A) Section 4041(m)(1)(A).
(B) Section 4051(c).
(C) Section 4071(d).
(D) Section 4081(d)(3).
(b) Extension of Tax, etc., on Use of Certain Heavy
Vehicles.--
(1) In general.--Each of the following provisions
of the Internal Revenue Code of 1986 is amended by
striking ``2013'' each place it appears and inserting
``2017'':
(A) Section 4481(f).
(B) Section 4482(d).
(2) Extension and technical correction.--
(A) In general.--Paragraph (4) of section
4482(c) of such Code is amended to read as
follows:
``(4) Taxable period.--The term `taxable period'
means any year beginning before July 1, 2017, and the
period which begins on July 1, 2017, and ends at the
close of September 30, 2017.''.
(B) Effective date.--The amendment made by
this paragraph shall take effect as if included
in the amendments made by section 142 of the
Surface Transportation Extension Act of 2011,
Part II.
(c) Floor Stocks Refunds.--Section 6412(a)(1) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``July 1, 2012'' each place it
appears and inserting ``October 1, 2016'',
(2) by striking ``December 31, 2012'' each place it
appears and inserting ``March 31, 2017'', and
(3) by striking ``October 1, 2012'' and inserting
``January 1, 2017''.
(d) Extension of Certain Exemptions.--
(1) Section 4221(a) of the Internal Revenue Code of
1986 is amended by striking ``July 1, 2012'' and
inserting ``October 1, 2016''.
(2) Section 4483(i) of such Code is amended by
striking ``July 1, 2012'' and inserting ``October 1,
2017''.
(e) Extension of Transfers of Certain Taxes.--
(1) In general.--Section 9503 of the Internal
Revenue Code of 1986 is amended--
(A) in subsection (b)--
(i) by striking ``July 1, 2012''
each place it appears in paragraphs (1)
and (2) and inserting ``October 1,
2016'',
(ii) by striking ``July 1, 2012''
in the heading of paragraph (2) and
inserting ``October 1, 2016'',
(iii) by striking ``June 30, 2012''
in paragraph (2) and inserting
``September 30, 2016'', and
(iv) by striking ``April 1, 2013''
in paragraph (2) and inserting ``July
1, 2017'', and
(B) in subsection (c)(2), by striking
``April 1, 2013'' and inserting ``July 1,
2017''.
(2) Motorboat and small-engine fuel tax
transfers.--
(A) In general.--Paragraphs (3)(A)(i) and
(4)(A) of section 9503(c) of such Code are each
amended by striking ``July 1, 2012'' and
inserting ``October 1, 2016''.
(B) Conforming amendments to land and water
conservation fund.--Section 201(b) of the Land
and Water Conservation Fund Act of 1965 (16
U.S.C. 460l-11(b)) is amended--
(i) by striking ``July 1, 2013''
each place it appears and inserting
``October 1, 2017'', and
(ii) by striking ``July 1, 2012''
and inserting ``October 1, 2016''.
(f) Effective Date.--Except as otherwise provided in this
section, the amendments made by this section shall take effect
on July 1, 2012.
TITLE II--REVENUE PROVISIONS
Subtitle A--Leaking Underground Storage Tank Trust Fund
SEC. 40201. TRANSFER FROM LEAKING UNDERGROUND STORAGE TANK TRUST FUND
TO HIGHWAY TRUST FUND.
(a) In General.--Subsection (c) of section 9508 of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``Amounts'' and inserting:
``(1) In general.--Except as provided in paragraph
(2), amounts'', and
(2) by adding at the end the following new
paragraph:
``(2) Transfer to highway trust fund.--Out of
amounts in the Leaking Underground Storage Tank Trust
Fund there is hereby appropriated $2,400,000,000 to be
transferred under section 9503(f)(3) to the Highway
Account (as defined in section 9503(e)(5)(B)) in the
Highway Trust Fund.''.
(b) Transfer to Highway Trust Fund.--
(1) In general.--Subsection (f) of section 9503 of
the Internal Revenue Code of 1986 is amended by
inserting after paragraph (2) the following new
paragraph:
``(3) Increase in fund balance.--There is hereby
transferred to the Highway Account (as defined in
subsection (e)(5)(B)) in the Highway Trust Fund amounts
appropriated from the Leaking Underground Storage Tank
Trust Fund under section 9508(c)(2).''.
(2) Conforming amendments.--Paragraph (4) of
section 9503(f) of such Code is amended--
(A) by inserting ``or transferred'' after
``appropriated'', and
(B) by striking ``appropriated'' in the
heading thereof.
Subtitle B--Pension Provisions
PART I--PENSION FUNDING STABILIZATION
SEC. 40211. PENSION FUNDING STABILIZATION.
(a) Amendments to Internal Revenue Code of 1986.--
(1) In general.--Subparagraph (C) of section
430(h)(2) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new clause:
``(iv) Segment rate
stabilization.--
``(I) In general.--If a
segment rate described in
clause (i), (ii), or (iii) with
respect to any applicable month
(determined without regard to
this clause) is less than the
applicable minimum percentage,
or more than the applicable
maximum percentage, of the
average of the segment rates
described in such clause for
years in the 25-year period
ending with September 30 of the
calendar year preceding the
calendar year in which the plan
year begins, then the segment
rate described in such clause
with respect to the applicable
month shall be equal to the
applicable minimum percentage
or the applicable maximum
percentage of such average,
whichever is closest. The
Secretary shall determine such
average on an annual basis and
may prescribe equivalent rates
for years in any such 25-year
period for which the rates
described in any such clause
are not available.
``(II) Applicable minimum
percentage; applicable maximum
percentage.--For purposes of
subclause (I), the applicable
minimum percentage and the
applicable maximum percentage
for a plan year beginning in a
calendar year shall be
determined in accordance with
the following table:
------------------------------------------------------------------------
The
The applicable applicable
``If the calendar year is: minimum maximum
percentage is: percentage
is:
------------------------------------------------------------------------
2012..................................... 90% 110%
2013..................................... 85% 115%
2014..................................... 80% 120%
2015..................................... 75% 125%
After 2015............................... 70% 130%.''.
------------------------------------------------------------------------
(2) Conforming amendments.--
(A) Paragraph (6) of section 404(o) of such
Code is amended by inserting ``(determined by
not taking into account any adjustment under
clause (iv) of subsection (h)(2)(C) thereof)''
before the period.
(B) Subparagraph (F) of section 430(h)(2)
of such Code is amended by inserting ``and the
averages determined under subparagraph
(C)(iv)'' after ``subparagraph (C)''.
(C) Subparagraphs (C) and (D) of section
417(e)(3) of such Code are each amended by
striking ``section 430(h)(2)(C)'' and inserting
``section 430(h)(2)(C) (determined by not
taking into account any adjustment under clause
(iv) thereof)''.
(D) Section 420 of such Code is amended by
adding at the end the following new subsection:
``(g) Segment Rates Determined Without Pension
Stabilization.--For purposes of this section, section 430 shall
be applied without regard to subsection (h)(2)(C)(iv)
thereof.''.
(b) Amendments to Employee Retirement Income Security Act
of 1974.--
(1) In general.--Subparagraph (C) of section
303(h)(2) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1083(h)(2)) is amended by adding
at the end the following new clause:
``(iv) Segment rate
stabilization.--
``(I) In general.--If a
segment rate described in
clause (i), (ii), or (iii) with
respect to any applicable month
(determined without regard to
this clause) is less than the
applicable minimum percentage,
or more than the applicable
maximum percentage, of the
average of the segment rates
described in such clause for
years in the 25-year period
ending with September 30 of the
calendar year preceding the
calendar year in which the plan
year begins, then the segment
rate described in such clause
with respect to the applicable
month shall be equal to the
applicable minimum percentage
or the applicable maximum
percentage of such average,
whichever is closest. The
Secretary of the Treasury shall
determine such average on an
annual basis and may prescribe
equivalent rates for years in
any such 25-year period for
which the rates described in
any such clause are not
available.
``(II) Applicable minimum
percentage; applicable maximum
percentage.--For purposes of
subclause (I), the applicable
minimum percentage and the
applicable maximum percentage
for a plan year beginning in a
calendar year shall be
determined in accordance with
the following table:
------------------------------------------------------------------------
The
The applicable applicable
``If the calendar year is: minimum maximum
percentage is: percentage
is:
------------------------------------------------------------------------
2012..................................... 90% 110%
2013..................................... 85% 115%
2014..................................... 80% 120%
2015..................................... 75% 125%
After 2015............................... 70% 130%.''.
------------------------------------------------------------------------
(2) Disclosure of effect of segment rate
stabilization on plan funding.--
(A) In general.--Paragraph (2) of section
101(f) of such Act (29 U.S.C. 1021(f)) is
amended by adding at the end the following new
subparagraph:
``(D) Effect of segment rate stabilization
on plan funding.--
``(i) In general.--In the case of a
single-employer plan for an applicable
plan year, each notice under paragraph
(1) shall include--
``(I) a statement that the
MAP-21 modified the method for
determining the interest rates
used to determine the actuarial
value of benefits earned under
the plan, providing for a 25-
year average of interest rates
to be taken into account in
addition to a 2-year average,
``(II) a statement that, as
a result of the MAP-21, the
plan sponsor may contribute
less money to the plan when
interest rates are at
historical lows, and
``(III) a table which shows
(determined both with and
without regard to section
303(h)(2)(C)(iv)) the funding
target attainment percentage
(as defined in section
303(d)(2)), the funding
shortfall (as defined in
section 303(c)(4)), and the
minimum required contribution
(as determined under section
303), for the applicable plan
year and each of the 2
preceding plan years.
``(ii) Applicable plan year.--For
purposes of this subparagraph, the term
`applicable plan year' means any plan
year beginning after December 31, 2011,
and before January 1, 2015, for which--
``(I) the funding target
(as defined in section
303(d)(2)) is less than 95
percent of such funding target
determined without regard to
section 303(h)(2)(C)(iv),
``(II) the plan has a
funding shortfall (as defined
in section 303(c)(4) and
determined without regard to
section 303(h)(2)(C)(iv))
greater than $500,000, and
``(III) the plan had 50 or
more participants on any day
during the preceding plan year.
For purposes of any determination under
subclause (III), the aggregation rule
under the last sentence of section
303(g)(2)(B) shall apply.
``(iii) Special rule for plan years
beginning before 2012.--In the case of
a preceding plan year referred to in
clause (i)(III) which begins before
January 1, 2012, the information
described in such clause shall be
provided only without regard to section
303(h)(2)(C)(iv).''.
(B) Model notice.--The Secretary of Labor
shall modify the model notice required to be
published under section 501(c) of the Pension
Protection Act of 2006 to prominently include
the information described in section
101(f)(2)(D) of the Employee Retirement Income
Security Act of 1974, as added by this
paragraph.
(3) Conforming amendments.--
(A) Subparagraph (F) of section 303(h)(2)
of such Act (29 U.S.C. 1083(h)(2)) is amended
by inserting ``and the averages determined
under subparagraph (C)(iv)'' after
``subparagraph (C)''.
(B) Clauses (ii) and (iii) of section
205(g)(3)(B) of such Act (29 U.S.C.
1055(g)(3)(B)) are each amended by striking
``section 303(h)(2)(C)'' and inserting
``section 303(h)(2)(C) (determined by not
taking into account any adjustment under clause
(iv) thereof)''.
(C) Clause (iv) of section 4006(a)(3)(E) of
such Act (29 U.S.C. 1306(a)(3)(E)) is amended
by striking ``section 303(h)(2)(C)'' and
inserting ``section 303(h)(2)(C)
(notwithstanding any regulations issued by the
corporation, determined by not taking into
account any adjustment under clause (iv)
thereof)''.
(D) Section 4010(d) of such Act (29 U.S.C.
1310(d)) is amended by adding at the end the
following:
``(3) Pension stabilization disregarded.--For
purposes of this section, the segment rates used in
determining the funding target and funding target
attainment percentage shall be determined by not taking
into account any adjustment under section
302(h)((2)(C)(iv).''.
(c) Effective Date.--
(1) In general.--The amendments made by this
section shall apply with respect to plan years
beginning after December 31, 2011.
(2) Rules with respect to elections.--
(A) Adjusted funding target attainment
percentage.--A plan sponsor may elect not to
have the amendments made by this section apply
to any plan year beginning before January 1,
2013, either (as specified in the election)--
(i) for all purposes for which such
amendments apply, or
(ii) solely for purposes of
determining the adjusted funding target
attainment percentage under sections
436 of the Internal Revenue Code of
1986 and 206(g) of the Employee
Retirement Income Security Act of 1974
for such plan year.
A plan shall not be treated as failing to meet
the requirements of sections 204(g) of such Act
and 411(d)(6) of such Code solely by reason of
an election under this paragraph.
(B) Opt out of existing elections.--If, on
the date of the enactment of this Act, an
election is in effect with respect to any plan
under sections 303(h)((2)(D)(ii) of the
Employee Retirement Income Security Act of 1974
and 430(h)((2)(D)(ii) of the Internal Revenue
Code of 1986, then, notwithstanding the last
sentence of each such section, the plan sponsor
may revoke such election without the consent of
the Secretary of the Treasury. The plan sponsor
may make such revocation at any time before the
date which is 1 year after such date of
enactment and such revocation shall be
effective for the 1st plan year to which the
amendments made by this section apply and all
subsequent plan years. Nothing in this
subparagraph shall preclude a plan sponsor from
making a subsequent election in accordance with
such sections.
PART II--PBGC PREMIUMS
SEC. 40221. SINGLE EMPLOYER PLAN ANNUAL PREMIUM RATES.
(a) Flat-rate Premium.--
(1) In general.--Clause (i) of section
4006(a)(3)(A) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)) is
amended to read as follows:
``(i) in the case of a single-employer plan, an
amount for each individual who is a participant in such
plan during the plan year equal to the sum of the
additional premium (if any) determined under
subparagraph (E) and--
``(I) for plan years beginning after
December 31, 2005, and before January 1, 2013,
$30;
``(II) for plan years beginning after
December 31, 2012, and before January 1, 2014,
$42; and
``(III) for plan years beginning after
December 31, 2013, $49.''.
(2) Adjustment for inflation.--Subparagraph (F) of
section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3))
is amended--
(A) in clause (i)(II), by inserting ``(2012
in the case of plan years beginning after
calendar year 2014)'' after ``2004''; and
(B) by adding at the end the following new
sentence: ``This subparagraph shall not apply
to plan years beginning in 2013 or 2014.''.
(b) Variable-rate Premium.--
(1) In general.--Subparagraph (E)(ii) of section
4006(a)(3) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1306(a)(3)) is amended by
striking ``$9.00'' and inserting ``the applicable
dollar amount under paragraph (8)''.
(2) Applicable dollar amount.--Section 4006(a) of
such Act (29 U.S.C. 1306(a)) is amended by adding at
the end the following:
``(8) Applicable dollar amount for variable rate
premium.--For purposes of paragraph (3)(E)(ii)--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), the applicable
dollar amount shall be--
``(i) $9 for plan years beginning
in a calendar year before 2015;
``(ii) for plan years beginning in
calendar year 2015, the amount in
effect for plan years beginning in 2014
(determined after application of
subparagraph (C)); and
``(iii) for plan years beginning
after calendar year 2015, the amount in
effect for plan years beginning in 2015
(determined after application of
subparagraph (C)).
``(B) Adjustment for inflation.--For each
plan year beginning in a calendar year after
2012, there shall be substituted for the
applicable dollar amount specified under
subparagraph (A) an amount equal to the greater
of--
``(i) the product derived by
multiplying such applicable dollar
amount for plan years beginning in that
calendar year by the ratio of--
``(I) the national average
wage index (as defined in
section 209(k)(1) of the Social
Security Act) for the first of
the 2 calendar years preceding
the calendar year in which such
plan year begins, to
``(II) the national average
wage index (as so defined) for
the base year; and
``(ii) such applicable dollar
amount in effect for plan years
beginning in the preceding calendar
year.
If the amount determined under this
subparagraph is not a multiple of $1, such
product shall be rounded to the nearest
multiple of $1.
``(C) Additional increase in 2014 and
2015.--The applicable dollar amount determined
under subparagraph (A) (after the application
of subparagraph (B)) shall be increased--
``(i) in the case of plan years
beginning in calendar year 2014, by $4;
and
``(ii) in the case of plan years
beginning in calendar year 2015, by $5.
``(D) Base year.--For purposes of
subparagraph (B), the base year is--
``(i) 2010, in the case of plan
years beginning in calendar year 2013
or 2014;
``(ii) 2012, in the case of plan
years beginning in calendar year 2015;
and
``(iii) 2013, in the case of plan
years beginning after calendar year
2015.''.
(3) Cap.--
(A) In general.--Subparagraph (E)(i) of
section 4006(a)(3) of such Act (29 U.S.C.
1306(a)(3)) is amended by striking ``for any
plan year shall be'' and all that follows
through the end and inserting the following
``for any plan year--
``(I) shall be an amount equal to the amount
determined under clause (ii) divided by the number of
participants in such plan as of the close of the
preceding plan year; and
``(II) in the case of plan years beginning in a
calendar year after 2012, shall not exceed $400.''.
(B) Adjustment for inflation.--Paragraph
(3) of section 4006(a) of such Act (29 U.S.C.
1306(a)(3)), as amended by this Act, is amended
by adding at the end the following:
``(J) For each plan year beginning in a calendar year after
2013, there shall be substituted for the dollar amount
specified in subclause (II) of subparagraph (E)(i) an amount
equal to the greater of--
``(i) the product derived by multiplying such
dollar amount by the ratio of--
``(I) the national average wage index (as
defined in section 209(k)(1) of the Social
Security Act) for the first of the 2 calendar
years preceding the calendar year in which such
plan year begins, to
``(II) the national average wage index (as
so defined) for 2011; and
``(ii) such dollar amount for plan years beginning
in the preceding calendar year.
If the amount determined under this subparagraph is not a
multiple of $1, such product shall be rounded to the nearest
multiple of $1.''.
SEC. 40222. MULTIEMPLOYER ANNUAL PREMIUM RATES.
(a) In General.--Subparagraph (A) of section 4006(a)(3) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1306(a)(3)) is amended--
(1) by inserting ``and before January 1, 2013,''
after ``December 31, 2005,'' in clause (iv),
(2) by striking ``or'' at the end of clause (iii),
(3) by striking the period at the end of clause
(iv) and inserting ``, or'', and
(4) by adding at the end the following new clause:
``(v) in the case of a multiemployer plan, for plan
years beginning after December 31, 2012, $12.00 for
each individual who is a participant in such plan
during the applicable plan year.''.
(b) Inflation Adjustment.--Paragraph (3) of section 4006(a)
of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1306(a)(3)) is amended by adding at the end the
following:
``(I) For each plan year beginning in a calendar year after
2013, there shall be substituted for the premium rate specified
in clause (v) of subparagraph (A) an amount equal to the
greater of--
``(i) the product derived by multiplying the
premium rate specified in clause (v) of subparagraph
(A) by the ratio of--
``(I) the national average wage index (as
defined in section 209(k)(1) of the Social
Security Act) for the first of the 2 calendar
years preceding the calendar year in which such
plan year begins, to
``(II) the national average wage index (as
so defined) for 2011; and
``(ii) the premium rate in effect under clause (v)
of subparagraph (A) for plan years beginning in the
preceding calendar year.
If the amount determined under this subparagraph is not a
multiple of $1, such product shall be rounded to the nearest
multiple of $1.''.
PART III--IMPROVEMENTS OF PBGC
SEC. 40231. PENSION BENEFIT GUARANTY CORPORATION GOVERNANCE
IMPROVEMENT.
(a) Board of Directors of the Pension Benefit Guaranty
Corporation.--
(1) In general.--Section 4002(d) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1302(d)) is amended--
(A) by striking ``(d) The board of
directors'' and inserting ``(d)(1) The board of
directors''; and
(B) by adding at the end the following:
``(2) A majority of the members of the board of directors
in office shall constitute a quorum for the transaction of
business. The vote of the majority of the members present and
voting at a meeting at which a quorum is present shall be the
act of the board of directors.
``(3) Each member of the board of directors shall designate
in writing an official, not below the level of Assistant
Secretary, to serve as the voting representative of such member
on the board. Such designation shall be effective until revoked
or until a date or event specified therein. Any such
representative may refer for board action any matter under
consideration by the designating board member, but such
representative shall not count toward establishment of a quorum
as described under paragraph (2).
``(4) The Inspector General of the corporation shall report
to the board of directors, and not less than twice a year,
shall attend a meeting of the board of directors to provide a
report on the activities and findings of the Inspector General,
including with respect to monitoring and review of the
operations of the corporation.
``(5) The General Counsel of the corporation shall--
``(A) serve as the secretary to the board of
directors, and advise such board as needed; and
``(B) have overall responsibility for all legal
matters affecting the corporation and provide the
corporation with legal advice and opinions on all
matters of law affecting the corporation, except that
the authority of the General Counsel shall not extend
to the Office of Inspector General and the independent
legal counsel of such Office.
``(6) Notwithstanding any other provision of this Act, the
Office of Inspector General and the legal counsel of such
Office are independent of the management of the corporation and
the General Counsel of the corporation.
``(7) The board of directors may appoint and fix the
compensation of employees as may be required to enable the
board of directors to perform its duties. The board of
directors shall determine the qualifications and duties of such
employees and may appoint and fix the compensation of experts
and consultants in accordance with the provisions of section
3109 of title 5, United States Code.''.
(2) Number of meetings; public availability.--
Section 4002(e) of such Act (29 U.S.C. 1302(e)) is
amended--
(A) by striking ``The board'' and inserting
``(1) The board'';
(B) by striking ``the corporation.'' and
inserting ``the corporation, but in no case
less than 4 times a year with not fewer than 2
members present. Not less than 1 meeting of the
board of directors during each year shall be a
joint meeting with the advisory committee under
subsection (h).''; and
(C) by adding at the end the following:
``(2)(A) Except as provided in subparagraph (B), the
chairman of the board of directors shall make available to the
public the minutes from each meeting of the board of directors.
``(B) The minutes of a meeting of the board of directors,
or a portion thereof, shall not be subject to disclosure under
subparagraph (A) if the chairman reasonably determines that
such minutes, or portion thereof, contain confidential employer
information including information obtained under section 4010,
information about the investment activities of the corporation,
or information regarding personnel decisions of the
corporation.
``(C) The minutes of a meeting, or portion of thereof,
exempt from disclosure pursuant to subparagraph (B) shall be
exempt from disclosure under section 552(b) of title 5, United
States Code. For purposes of such section 552, this
subparagraph shall be considered a statute described in
subsection (b)(3) of such section 552.''.
(3) Advisory committee.--
(A) Issues considered by the committee.--
Section 4002(h)(1) of such Act (29 U.S.C.
1302(h)(1)) is amended--
(i) by striking ``, and (D)'' and
inserting ``, (D)''; and
(ii) by striking ``time to time.''
and inserting ``time to time, and (E)
other issues as determined appropriate
by the advisory committee.''.
(B) Joint meeting.--Section 4002(h)(3) of
such Act (29 U.S.C. 1302(h)(3)) is amended by
adding at the end the following: ``Not less
than 1 meeting of the advisory committee during
each year shall be a joint meeting with the
board of directors under subsection (e).''.
(b) Avoiding Conflicts of Interest.--Section 4002 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1302) is amended by adding at the end the following:
``(j) Conflicts of Interest.--
``(1) In general.--The Director of the corporation
and each member of the board of directors shall not
participate in a decision of the corporation in which
the Director or such member has a direct financial
interest. The Director of the corporation shall not
participate in any activities that would present a
potential conflict of interest or appearance of a
conflict of interest without approval of the board of
directors.
``(2) Establishment of policy.--The board of
directors shall establish a policy that will inform the
identification of potential conflicts of interests of
the members of the board of directors and mitigate
perceived conflicts of interest of such members and the
Director of the corporation.''.
(c) Risk Mitigation.--Section 4002 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1302), as
amended by subsection (b), is further amended by adding at the
end the following:
``(k) Risk Management Officer.--The corporation shall have
a risk management officer whose duties include evaluating and
mitigating the risk that the corporation might experience. The
individual in such position shall coordinate the risk
management efforts of the corporation, explain risks and
controls to senior management and the board of directors of the
corporation, and make recommendations.''.
(d) Director.--Section 4002(c) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1302(c)) is amended to
read as follows:
``(c) The Director shall be accountable to the board of
directors. The Director shall serve for a term of 5 years
unless removed by the President or the board of directors
before the expiration of such 5-year term.''.
(e) Senses of Congress.--
(1) Formation of committees.--It is the sense of
Congress that the board of directors of the Pension
Benefit Guaranty Corporation established under section
4002 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1302), as amended by this section,
should form committees, including an audit committee
and an investment committee composed of not less than 2
members, to enhance the overall effectiveness of the
board of directors.
(2) Advisory committee.--It is the sense of
Congress that the advisory committee to the Pension
Benefit Guaranty Corporation established under section
4002 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1302), as amended by this section,
should provide to the board of directors of such
corporation policy recommendations regarding changes to
the law that would be beneficial to the corporation or
the voluntary private pension system.
(f) Study Regarding Governance Structures.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Pension Benefit
Guaranty Corporation shall enter into a contract with
the National Academy of Public Administration to
conduct the study described in paragraph (2) with
respect to the Pension Benefit Guaranty Corporation.
(2) Content of study.--The study conducted under
paragraph (1) shall include--
(A) a review of the governance structures
of governmental and nongovernmental
organizations that are analogous to the Pension
Benefit Guaranty Corporation; and
(B) recommendations regarding--
(i) the ideal size and composition
of the board of directors of the
Pension Benefit Guaranty Corporation;
(ii) procedures to select and
remove members of such board;
(iii) qualifications and term
lengths of members of such board; and
(iv) policies necessary to enhance
Congressional oversight and
transparency of such board and to
mitigate potential conflicts of
interest of the members of such board.
(3) Submission to congress.--Not later than 1 year
after the initiation of the study under paragraph (1),
the National Academy of Public Administration shall
submit the results of the study to the Committees on
Health, Education, Labor, and Pensions and Finance of
the Senate and the Committees on Education and the
Workforce and Ways and Means of the House of
Representatives.
SEC. 40232. PARTICIPANT AND PLAN SPONSOR ADVOCATE.
(a) In General.--Title IV of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1301 et seq.) is amended by
inserting after section 4003 the following:
``SEC. 4004. PARTICIPANT AND PLAN SPONSOR ADVOCATE.
``(a) In General.--The board of directors of the
corporation shall select a Participant and Plan Sponsor
Advocate from the candidates nominated by the advisory
committee to the corporation under section 4002(h)(1) and
without regard to the provisions of title 5, United States
Code, relating to appointments in the competitive service or
Senior Executive Service.
``(b) Duties.--The Participant and Plan Sponsor Advocate
shall--
``(1) act as a liaison between the corporation,
sponsors of defined benefit pension plans insured by
the corporation, and participants in pension plans
trusteed by the corporation;
``(2) advocate for the full attainment of the
rights of participants in plans trusteed by the
corporation;
``(3) assist pension plan sponsors and participants
in resolving disputes with the corporation;
``(4) identify areas in which participants and plan
sponsors have persistent problems in dealings with the
corporation;
``(5) to the extent possible, propose changes in
the administrative practices of the corporation to
mitigate problems;
``(6) identify potential legislative changes which
may be appropriate to mitigate problems; and
``(7) refer instances of fraud, waste, and abuse,
and violations of law to the Office of the Inspector
General of the corporation.
``(c) Removal.--If the Participant and Plan Sponsor
Advocate is removed from office or is transferred to another
position or location within the corporation or the Department
of Labor, the board of the directors of the corporation shall
communicate in writing the reasons for any such removal or
transfer to Congress not less than 30 days before the removal
or transfer. Nothing in this subsection shall prohibit a
personnel action otherwise authorized by law, other than
transfer or removal.
``(d) Compensation.--The annual rate of basic pay for the
Participant and Plan Sponsor Advocate shall be the same rate as
the highest rate of basic pay established for the Senior
Executive Service under section 5382 of title 5, United States
Code, or, if the board of directors of the corporation so
determines, at a rate fixed under section 9503 of such title.
``(e) Annual Report.--
``(1) In general.--Not later than December 31 of
each calendar year, the Participant and Plan Sponsor
Advocate shall report to the Health, Education, Labor,
and Pensions Committee of the Senate, the Committee on
Finance of the Senate, the Committee on Education and
the Workforce of the House of Representatives, and the
Committee on Ways and Means of the House of
Representatives on the activities of the Office of the
Participant and Plan Sponsor Advocate during the fiscal
year ending during such calendar year.
``(2) Content.--Each report submitted under
paragraph (1) shall--
``(A) summarize the assistance requests
received from participants and plan sponsors
and describe the activities, and evaluate the
effectiveness, of the Participant and Plan
Sponsor Advocate during the preceding year;
``(B) identify significant problems the
Participant and Plan Sponsor Advocate has
identified;
``(C) include specific legislative and
regulatory changes to address the problems; and
``(D) identify any actions taken to correct
problems identified in any previous report.
``(3) Concurrent submission.--The Participant and
Plan Sponsor Advocate shall submit a copy of each
report to the Secretary of Labor, the Director of the
corporation, and any other appropriate official at the
same time such report is submitted to the committees of
Congress under paragraph (1).''.
(b) Advisory Committee Nominations.--Section 4002(h)(1) of
the Employee Retirement Income Security Act of 1974 (29
U.S.C.1302(h)(1)) is amended by adding at the end the following
new sentence: ``In the event of a vacancy or impending vacancy
in the office of the Participant and Plan Sponsor Advocate
established under section 4004, the Advisory Committee shall,
in consultation with the Director of the corporation and
participant and plan sponsor advocacy groups, nominate at least
two but no more than three individuals to serve as the
Participant and Plan Sponsor Advocate.''.
(c) Clerical Amendment.--The table of contents in section 1
of the Employee Retirement Income Security Act of 1974 is
amended by inserting after the item relating to section 4003
the following new item:
``4004. Participant and Plan Sponsor Advocate.''.
SEC. 40233. QUALITY CONTROL PROCEDURES FOR THE PENSION BENEFIT GUARANTY
CORPORATION.
(a) Annual Peer Review of Insurance Modeling Systems.--The
Pension Benefit Guaranty Corporation shall contract with a
capable agency or organization that is independent from the
Corporation, such as the Social Security Administration, to
conduct an annual peer review of the Corporation's Single-
Employer Pension Insurance Modeling System and the
Corporation's Multiemployer Pension Insurance Modeling System.
The board of directors of the Corporation shall designate the
agency or organization with which any such contract is entered
into. The first of such annual peer reviews shall be initiated
no later than 3 months after the date of enactment of this Act.
(b) Policies and Procedures Relating to the Policy,
Research, and Analysis Department.--The Pension Benefit
Guaranty Corporation shall--
(1) develop written quality review policies and
procedures for all modeling and actuarial work
performed by the Corporation's Policy, Research, and
Analysis Department; and
(2) conduct a record management review of such
Department to determine what records must be retained
as Federal records.
(c) Report Relating to OIG Recommendations.--Not later than
2 months after the date of enactment of this Act, the Pension
Benefit Guaranty Corporation shall submit to Congress a report,
approved by the board of directors of the Corporation, setting
forth a timetable for addressing the outstanding
recommendations of the Office of the Inspector General relating
to the Policy, Research, and Analysis Department and the
Benefits Administration and Payment Department.
SEC. 40234. LINE OF CREDIT REPEAL.
(a) In General.--Subsection (c) of section 4005 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1305) is repealed.
(b) Conforming Amendments.--
(1) Section 4005 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1305) is amended--
(A) in subsection (b)--
(i) paragraph (1)--
(I) by striking
subparagraph (A); and
(II) by redesignating
subparagraphs (B) through (G)
as subparagraphs (A) through
(F), respectively;
(ii) in paragraph (2)--
(I) by striking
subparagraph (C); and
(II) by redesignating
subparagraphs (D) and (E) as
subparagraphs (C) and (D),
respectively; and
(iii) in paragraph (3), by striking
``but,'' and all that follows through
the end and inserting a period; and
(B) in subsection (g)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3)
as paragraph (2).
(2) Section 4402 of such Act (29 U.S.C. 1461) is
amended--
(A) in subsection (c)(4)--
(i) by striking subparagraph (C);
and
(ii) by redesignating subparagraph
(D) as subparagraph (C); and
(B) in subsection (d), by striking ``or
(D)''.
PART IV--TRANSFERS OF EXCESS PENSION ASSETS
SEC. 40241. EXTENSION FOR TRANSFERS OF EXCESS PENSION ASSETS TO RETIREE
HEALTH ACCOUNTS.
(a) In General.--Paragraph (5) of section 420(b) of the
Internal Revenue Code of 1986 is amended by striking ``December
31, 2013'' and inserting ``December 31, 2021''.
(b) Conforming ERISA Amendments.--
(1) Sections 101(e)(3), 403(c)(1), and 408(b)(13)
of the Employee Retirement Income Security Act of 1974
are each amended by striking ``Pension Protection Act
of 2006'' and inserting ``MAP-21''.
(2) Section 408(b)(13) of such Act (29 U.S.C.
1108(b)(13)) is amended by striking ``January 1, 2014''
and inserting ``January 1, 2022''.
(c) Effective Date.--The amendments made by this Act shall
take effect on the date of the enactment of this Act.
SEC. 40242. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE GROUP TERM
LIFE INSURANCE ACCOUNTS.
(a) In General.--Subsection (a) of section 420 of the
Internal Revenue Code of 1986 is amended by inserting ``, or an
applicable life insurance account,'' after ``health benefits
account''.
(b) Applicable Life Insurance Account Defined.--
(1) In general.--Subsection (e) of section 420 of
the Internal Revenue Code of 1986 is amended by
redesignating paragraphs (4) and (5) as paragraphs (5)
and (6), respectively, and by inserting after paragraph
(3) the following new paragraph:
``(4) Applicable life insurance account.--The term
`applicable life insurance account' means a separate
account established and maintained for amounts
transferred under this section for qualified current
retiree liabilities based on premiums for applicable
life insurance benefits.''.
(2) Applicable life insurance benefits defined.--
Paragraph (1) of section 420(e) of such Code is amended
by redesignating subparagraph (D) as subparagraph (E)
and by inserting after subparagraph (C) the following
new subparagraph:
``(D) Applicable life insurance benefits.--
The term `applicable life insurance benefits'
means group-term life insurance coverage
provided to retired employees who, immediately
before the qualified transfer, are entitled to
receive such coverage by reason of retirement
and who are entitled to pension benefits under
the plan, but only to the extent that such
coverage is provided under a policy for retired
employees and the cost of such coverage is
excludable from the retired employee's gross
income under section 79.''.
(3) Collectively bargained life insurance benefits
defined.--
(A) In general.--Paragraph (6) of section
420(f) of such Code is amended by redesignating
subparagraph (D) as subparagraph (E) and by
inserting after subparagraph (C) the following
new subparagraph:
``(D) Collectively bargained life insurance
benefits.--The term `collectively bargained
life insurance benefits' means, with respect to
any collectively bargained transfer--
``(i) applicable life insurance
benefits which are provided to retired
employees who, immediately before the
transfer, are entitled to receive such
benefits by reason of retirement, and
``(ii) if specified by the
provisions of the collective bargaining
agreement governing the transfer,
applicable life insurance benefits
which will be provided at retirement to
employees who are not retired employees
at the time of the transfer.''.
(B) Conforming amendments.--
(i) Clause (i) of section
420(e)(1)(C) of such Code is amended by
striking ``upon retirement'' and
inserting ``by reason of retirement''.
(ii) Subparagraph (C) of section
420(f)(6) of such Code is amended--
(I) by striking ``which are
provided to'' in the matter
preceding clause (i),
(II) by inserting ``which
are provided to'' before
``retired employees'' in clause
(i),
(III) by striking ``upon
retirement'' in clause (i) and
inserting ``by reason of
retirement'', and
(IV) by striking ``active
employees who, following their
retirement,'' and inserting
``which will be provided at
retirement to employees who are
not retired employees at the
time of the transfer and who''.
(c) Maintenance of Effort.--
(1) In general.--Subparagraph (A) of section
420(c)(3) of the Internal Revenue Code of 1986 is
amended by inserting ``, and each group-term life
insurance plan under which applicable life insurance
benefits are provided,'' after ``health benefits are
provided''.
(2) Conforming amendments.--
(A) Subparagraph (B) of section 420(c)(3)
of such Code is amended--
(i) by redesignating subclauses (I)
and (II) of clause (i) as subclauses
(II) and (III) of such clause,
respectively, and by inserting before
subclause (II) of such clause, as so
redesignated, the following new
subclause:
``(I) separately with
respect to applicable health
benefits and applicable life
insurance benefits,'', and
(ii) by striking ``for applicable
health benefits'' and all that follows
in clause (ii) and inserting ``was
provided during such taxable year for
the benefits with respect to which the
determination under clause (i) is
made.''.
(B) Subparagraph (C) of section 420(c)(3)
of such Code is amended--
(i) by inserting ``for applicable
health benefits'' after ``applied
separately'', and
(ii) by inserting ``, and
separately for applicable life
insurance benefits with respect to
individuals age 65 or older at any time
during the taxable year and with
respect to individuals under age 65
during the taxable year'' before the
period.
(C) Subparagraph (E) of section 420(c)(3)
of such Code is amended--
(i) in clause (i), by inserting
``or retiree life insurance coverage,
as the case may be,'' after ``retiree
health coverage'',
(ii) in clause (ii), by inserting
``for retiree health coverage'' after
``cost reductions'' in the heading
thereof, and
(iii) in clause (ii)(II), by
inserting ``with respect to applicable
health benefits'' after ``liabilities
of the employer''.
(D) Paragraph (2) of section 420(f) of such
Code is amended by striking ``collectively
bargained retiree health liabilities'' each
place it occurs and inserting ``collectively
bargained retiree liabilities''.
(E) Clause (i) of section 420(f)(2)(D) of
such Code is amended--
(i) by inserting ``, and each
group-term life insurance plan or
arrangement under which applicable life
insurance benefits are provided,'' in
subclause (I) after ``applicable health
benefits are provided'',
(ii) by inserting ``or applicable
life insurance benefits, as the case
may be,'' in subclause (I) after
``provides applicable health
benefits'',
(iii) by striking ``group health''
in subclause (II), and
(iv) by inserting ``or collectively
bargained life insurance benefits'' in
subclause (II) after ``collectively
bargained health benefits''.
(F) Clause (ii) of section 420(f)(2)(D) of
such Code is amended--
(i) by inserting ``with respect to
applicable health benefits or
applicable life insurance benefits''
after ``requirements of subsection
(c)(3)'', and
(ii) by adding at the end the
following: ``Such election may be made
separately with respect to applicable
health benefits and applicable life
insurance benefits. In the case of an
election with respect to applicable
life insurance benefits, the first
sentence of this clause shall be
applied as if subsection (c)(3) as in
effect before the amendments made by
such Act applied to such benefits.''.
(G) Clause (iii) of section 420(f)(2)(D) of
such Code is amended--
(i) by striking ``retiree'' each
place it occurs, and
(ii) by inserting ``, collectively
bargained life insurance benefits, or
both, as the case may be,'' after
``health benefits'' each place it
occurs.
(d) Coordination With Section 79.--Section 79 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subsection:
``(f) Exception for Life Insurance Purchased in Connection
With Qualified Transfer of Excess Pension Assets.--Subsection
(b)(3) and section 72(m)(3) shall not apply in the case of any
cost paid (whether directly or indirectly) with assets held in
an applicable life insurance account (as defined in section
420(e)(4)) under a defined benefit plan.''.
(e) Conforming Amendments.--
(1) Section 420 of the Internal Revenue Code of
1986 is amended by striking ``qualified current retiree
health liabilities'' each place it appears and
inserting ``qualified current retiree liabilities''.
(2) Section 420 of such Code is amended by
inserting ``, or an applicable life insurance
account,'' after ``a health benefits account'' each
place it appears in subsection (b)(1)(A), subparagraphs
(A), (B)(i), and (C) of subsection (c)(1), subsection
(d)(1)(A), and subsection (f)(2)(E)(ii).
(3) Section 420(b) of such Code is amended--
(A) by adding the following at the end of
paragraph (2)(A): ``If there is a transfer from
a defined benefit plan to both a health
benefits account and an applicable life
insurance account during any taxable year, such
transfers shall be treated as 1 transfer for
purposes of this paragraph.'', and
(B) by inserting ``to an account'' after
``may be transferred'' in paragraph (3).
(4) The heading for section 420(c)(1)(B) of such
Code is amended by inserting ``or life insurance''
after ``health benefits''.
(5) Paragraph (1) of section 420(e) of such Code is
amended--
(A) by inserting ``and applicable life
insurance benefits'' in subparagraph (A) after
``applicable health benefits'', and
(B) by striking ``health'' in the heading
thereof.
(6) Subparagraph (B) of section 420(e)(1) of such
Code is amended--
(A) in the matter preceding clause (i), by
inserting ``(determined separately for
applicable health benefits and applicable life
insurance benefits)'' after ``shall be reduced
by the amount'',
(B) in clause (i), by inserting ``or
applicable life insurance accounts'' after
``health benefit accounts'', and
(C) in clause (i), by striking ``qualified
current retiree health liability'' and
inserting ``qualified current retiree
liability''.
(7) The heading for subsection (f) of section 420
of such Code is amended by striking ``health'' each
place it occurs.
(8) Subclause (II) of section 420(f)(2)(B)(ii) of
such Code is amended by inserting ``or applicable life
insurance account, as the case may be,'' after ``health
benefits account''.
(9) Subclause (III) of section 420(f)(2)(E)(i) of
such Code is amended--
(A) by inserting ``defined benefit'' before
``plan maintained by an employer'', and
(B) by inserting ``health'' before
``benefit plans maintained by the employer''.
(10) Paragraphs (4) and (6) of section 420(f) of
such Code are each amended by striking ``collectively
bargained retiree health liabilities'' each place it
occurs and inserting ``collectively bargained retiree
liabilities''.
(11) Subparagraph (A) of section 420(f)(6) of such
Code is amended--
(A) in clauses (i) and (ii), by inserting
``, in the case of a transfer to a health
benefits account,'' before ``his covered spouse
and dependents'', and
(B) in clause (ii), by striking ``health
plan'' and inserting ``plan''.
(12) Subparagraph (B) of section 420(f)(6) of such
Code is amended--
(A) in clause (i), by inserting ``, and
collectively bargained life insurance
benefits,'' after ``collectively bargained
health benefits'',
(B) in clause (ii)--
(i) by adding at the end the
following: ``The preceding sentence
shall be applied separately for
collectively bargained health benefits
and collectively bargained life
insurance benefits.'', and
(ii) by inserting ``, applicable
life insurance accounts,'' after
``health benefit accounts'', and
(C) by striking ``health'' in the heading
thereof.
(13) Subparagraph (E) of section 420(f)(6) of such
Code, as redesignated by subsection (b), is amended--
(A) by striking ``bargained health'' and
inserting ``bargained'',
(B) by inserting ``, or a group-term life
insurance plan or arrangement for retired
employees,'' after ``dependents'', and
(C) by striking ``health'' in the heading
thereof.
(14) Section 101(e) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1021(e)) is
amended--
(A) in paragraphs (1) and (2), by inserting
``or applicable life insurance account'' after
``health benefits account'' each place it
appears, and
(B) in paragraph (1), by inserting ``or
applicable life insurance benefit liabilities''
after ``health benefits liabilities''.
(f) Technical Correction.--Clause (iii) of section
420(f)(6)(B) of the Internal Revenue Code of 1986 is amended by
striking ``416(I)(1)'' and inserting ``416(i)(1)''.
(g) Repeal of Deadwood.--
(1) Subparagraph (A) of section 420(b)(1) of the
Internal Revenue Code of 1986 is amended by striking
``in a taxable year beginning after December 31,
1990''.
(2) Subsection (b) of section 420 of such Code is
amended by striking paragraph (4) and by redesignating
paragraph (5), as amended by this Act, as paragraph
(4).
(3) Paragraph (2) of section 420(b) of such Code,
as amended by this section, is amended--
(A) by striking subparagraph (B), and
(B) by striking ``per year.--'' and all
that follows through ``No more than'' and
inserting ``per year.--No more than''.
(4) Paragraph (2) of section 420(c) of such Code is
amended--
(A) by striking subparagraph (B),
(B) by moving subparagraph (A) two ems to
the left, and
(C) by striking ``before transfer.--'' and
all that follows through ``The requirements of
this paragraph'' and inserting the following:
``before transfer.--The requirements of this
paragraph''.
(5) Paragraph (2) of section 420(d) of such Code is
amended by striking ``after December 31, 1990''.
(h) Effective Date.--
(1) In general.--The amendments made by this
section shall apply to transfers made after the date of
the enactment of this Act.
(2) Conforming amendments relating to pension
protection act.--The amendments made by subsections
(b)(3)(B) and (f) shall take effect as if included in
the amendments made by section 841(a) of the Pension
Protection Act of 2006.
Subtitle C--Additional Transfers to Highway Trust Fund
SEC. 40251. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND.
Subsection (f) of section 9503 of the Internal Revenue Code
of 1986, as amended by this Act, is amended by redesignating
paragraph (4) as paragraph (5) and by inserting after paragraph
(3) the following new paragraph:
``(4) Additional appropriations to trust fund.--Out
of money in the Treasury not otherwise appropriated,
there is hereby appropriated to--
``(A) the Highway Account (as defined in
subsection (e)(5)(B)) in the Highway Trust
Fund--
``(i) for fiscal year 2013,
$6,200,000,000, and
``(ii) for fiscal year 2014,
$10,400,000,000, and
``(B) the Mass Transit Account in the
Highway Trust Fund, for fiscal year 2014,
$2,200,000,000.''.
DIVISION E--RESEARCH AND EDUCATION
SEC. 50001. SHORT TITLE.
This division may be cited as the ``Transportation Research
and Innovative Technology Act of 2012''.
TITLE I--FUNDING
SEC. 51001. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--The following amounts are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass
Transit Account):
(1) Highway research and development program.--To
carry out sections 503(b), 503(d), and 509 of title 23,
United States Code, $115,000,000 for each of fiscal
years 2013 and 2014.
(2) Technology and innovation deployment program.--
To carry out section 503(c) of title 23, United States
Code, $62,500,000 for each of fiscal years 2013 and
2014.
(3) Training and education.--To carry out section
504 of title 23, United States Code, $24,000,000 for
each of fiscal years 2013 and 2014.
(4) Intelligent transportation systems program.--To
carry out sections 512 through 518 of title 23, United
States Code, $100,000,000 for each of fiscal years 2013
and 2014.
(5) University transportation centers program.--To
carry out section 5505 of title 49, United States Code,
$72,500,000 for each of fiscal years 2013 and 2014.
(6) Bureau of transportation statistics.--To carry
out chapter 63 of title 49, United States Code,
$26,000,000 for each of fiscal years 2013 and 2014.
(b) Applicability of Title 23, United States Code.--Funds
authorized to be appropriated by subsection (a) shall--
(1) be available for obligation in the same manner
as if those funds were apportioned under chapter 1 of
title 23, United States Code, except that the Federal
share of the cost of a project or activity carried out
using those funds shall be 80 percent, unless otherwise
expressly provided by this Act (including the
amendments by this Act) or otherwise determined by the
Secretary; and
(2) remain available until expended and not be
transferable.
TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION
SEC. 52001. RESEARCH, TECHNOLOGY, AND EDUCATION.
Section 501 of title 23, United States Code, is amended--
(1) by redesignating paragraph (2) as paragraph
(8);
(2) by inserting after paragraph (1) the following:
``(2) Incident.--The term `incident' means a crash,
natural disaster, workzone activity, special event, or
other emergency road user occurrence that adversely
affects or impedes the normal flow of traffic.
``(3) Innovation lifecycle.--The term `innovation
lifecycle' means the process of innovating through--
``(A) the identification of a need;
``(B) the establishment of the scope of
research to address that need;
``(C) setting an agenda;
``(D) carrying out research, development,
deployment, and testing of the resulting
technology or innovation; and
``(E) carrying out an evaluation of the
costs and benefits of the resulting technology
or innovation.
``(4) Intelligent transportation infrastructure.--
The term `intelligent transportation infrastructure'
means fully integrated public sector intelligent
transportation system components, as defined by the
Secretary.
``(5) Intelligent transportation system.--The terms
`intelligent transportation system' and `ITS' mean
electronics, photonics, communications, or information
processing used singly or in combination to improve the
efficiency or safety of a surface transportation
system.
``(6) National architecture.--For purposes of this
chapter, the term `national architecture' means the
common framework for interoperability that defines--
``(A) the functions associated with
intelligent transportation system user
services;
``(B) the physical entities or subsystems
within which the functions reside;
``(C) the data interfaces and information
flows between physical subsystems; and
``(D) the communications requirements
associated with the information flows.
``(7) Project.--The term `project' means an
undertaking to research, develop, or operationally test
intelligent transportation systems or any other
undertaking eligible for assistance under this
chapter.''; and
(3) by inserting after paragraph (8) (as so
redesignated) the following:
``(9) Standard.--The term `standard' means a
document that--
``(A) contains technical specifications or
other precise criteria for intelligent
transportation systems that are to be used
consistently as rules, guidelines, or
definitions of characteristics so as to ensure
that materials, products, processes, and
services are fit for the intended purposes of
the materials, products, processes, and
services; and
``(B) may support the national architecture
and promote--
``(i) the widespread use and
adoption of intelligent transportation
system technology as a component of the
surface transportation systems of the
United States; and
``(ii) interoperability among
intelligent transportation system
technologies implemented throughout the
States.''.
SEC. 52002. SURFACE TRANSPORTATION RESEARCH, DEVELOPMENT, AND
TECHNOLOGY.
(a) Surface Transportation Research, Development, and
Technology.--Section 502 of title 23, United States Code, is
amended--
(1) in the section heading by inserting ``,
DEVELOPMENT, AND TECHNOLOGY'' after ``SURFACE
TRANSPORTATION RESEARCH'';
(2) in subsection (a)--
(A) by redesignating paragraphs (1) through
(8) as paragraphs (2) through (9),
respectively;
(B) by inserting before paragraph (2) (as
redesignated by subparagraph (A)) the
following:
``(1) Applicability.--The research, development,
and technology provisions of this section shall apply
throughout this chapter.'';
(C) in paragraph (2) (as redesignated by
subparagraph (A))--
(i) by inserting ``within the
innovation lifecycle'' after
``activities''; and
(ii) by inserting ``communications,
impact analysis,'' after ``training,'';
(D) in paragraph (3) (as redesignated by
subparagraph (A))--
(i) in subparagraph (B) by striking
``supports research in which there is a
clear public benefit and'' and
inserting ``delivers a clear public
benefit and occurs where'';
(ii) in subparagraph (C) by
striking ``or'' after the semicolon;
(iii) by redesignating subparagraph
(D) as subparagraph (I); and
(iv) by inserting after
subparagraph (C) the following:
``(D) meets and addresses current or
emerging needs;
``(E) addresses current gaps in research;
``(F) presents the best means to align
resources with multiyear plans and priorities;
``(G) ensures the coordination of highway
research and technology transfer activities,
including through activities performed by
university transportation centers;
``(H) educates transportation
professionals; or'';
(E) in paragraph (4) (as redesignated by
subparagraph (A)) by striking subparagraphs (B)
through (D) and inserting the following:
``(B) partner with State highway agencies
and other stakeholders as appropriate to
facilitate research and technology transfer
activities;
``(C) communicate the results of ongoing
and completed research;
``(D) lead efforts to coordinate national
emphasis areas of highway research, technology,
and innovation deployment;
``(E) leverage partnerships with industry,
academia, international entities, and State
departments of transportation;
``(F) lead efforts to reduce unnecessary
duplication of effort; and
``(G) lead efforts to accelerate innovation
delivery.'';
(F) in paragraph (5)(C) (as redesignated by
subparagraph (A)) by striking ``policy and
planning'' and inserting ``all highway
objectives seeking to improve the performance
of the transportation system'';
(G) in paragraph (6) (as redesignated by
subparagraph (A)) in the second sentence, by
inserting ``tribal governments,'' after ``local
governments,'';
(H) in paragraph (8) (as redesignated by
subparagraph (A))--
(i) in the first sentence, by
striking ``To the maximum'' and
inserting the following:
``(A) In general.--To the maximum'';
(ii) in the second sentence, by
striking ``Performance measures'' and
inserting the following:
``(B) Performance measures.--Performance
measures'';
(iii) in the third sentence, by
striking ``All evaluations'' and
inserting the following:
``(D) Availability of evaluations.--All
evaluations under this paragraph''; and
(iv) by inserting after
subparagraph (B) the following:
``(C) Program plan.--To the maximum extent
practicable, each program pursued under this
chapter shall be part of a data-driven,
outcome-oriented program plan.''; and
(I) in paragraph (9) (as redesignated by
subparagraph (A)), by striking ``surface'';
(3) in subsection (b)--
(A) in paragraph (4) by striking ``surface
transportation research and technology
development strategic plan developed under
section 508'' and inserting ``transportation
research and development strategic plan of the
Secretary developed under section 508'';
(B) in paragraph (5) by striking
``section'' each place it appears and inserting
``chapter'';
(C) in paragraph (6) by adding at the end
the following:
``(C) Transfer of amounts among states or
to federal highway administration.--The
Secretary may, at the request of a State,
transfer amounts apportioned or allocated to
that State under this chapter to another State
or the Federal Highway Administration to fund
research, development, and technology transfer
activities of mutual interest on a pooled funds
basis.
``(D) Transfer of obligation authority.--
Obligation authority for amounts transferred
under this subsection shall be disbursed in the
same manner and for the same amount as provided
for the project being transferred.''; and
(D) by adding at the end the following:
``(7) Prize competitions.--
``(A) In general.--The Secretary may use up
to 1 percent of the funds made available under
section 51001 of the Transportation Research
and Innovative Technology Act of 2012 to carry
out a program to competitively award cash
prizes to stimulate innovation in basic and
applied research and technology development
that has the potential for application to the
national transportation system.
``(B) Topics.--In selecting topics for
prize competitions under this paragraph, the
Secretary shall--
``(i) consult with a wide variety
of governmental and nongovernmental
representatives; and
``(ii) give consideration to prize
goals that demonstrate innovative
approaches and strategies to improve
the safety, efficiency, and
sustainability of the national
transportation system.
``(C) Advertising.--The Secretary shall
encourage participation in the prize
competitions through advertising efforts.
``(D) Requirements and registration.--For
each prize competition, the Secretary shall
publish a notice on a public website that
describes--
``(i) the subject of the
competition;
``(ii) the eligibility rules for
participation in the competition;
``(iii) the amount of the prize;
and
``(iv) the basis on which a winner
will be selected.
``(E) Eligibility.--An individual or entity
may not receive a prize under this paragraph
unless the individual or entity--
``(i) has registered to participate
in the competition pursuant to any
rules promulgated by the Secretary
under this section;
``(ii) has complied with all
requirements under this paragraph;
``(iii)(I) in the case of a private
entity, is incorporated in, and
maintains a primary place of business
in, the United States; or
``(II) in the case of an
individual, whether participating
singly or in a group, is a citizen or
permanent resident of the United
States;
``(iv) is not a Federal entity or
Federal employee acting within the
scope of his or her employment; and
``(v) has not received a grant to
perform research on the same issue for
which the prize is awarded.
``(F) Liability.--
``(i) Assumption of risk.--
``(I) In general.--A
registered participant shall
agree to assume any and all
risks and waive claims against
the Federal Government and its
related entities, except in the
case of willful misconduct, for
any injury, death, damage, or
loss of property, revenue, or
profits, whether direct,
indirect, or consequential,
arising from participation in a
competition, whether such
injury, death, damage, or loss
arises through negligence or
otherwise.
``(II) Related entity.--In
this subparagraph, the term
`related entity' means a
contractor, subcontractor (at
any tier), supplier, user,
customer, cooperating party,
grantee, investigator, or
detailee.
``(ii) Financial responsibility.--A
participant shall obtain liability
insurance or demonstrate financial
responsibility, in amounts determined
by the Secretary, for claims by--
``(I) a third party for
death, bodily injury, or
property damage, or loss
resulting from an activity
carried out in connection with
participation in a competition,
with the Federal Government
named as an additional insured
under the registered
participant's insurance policy
and registered participants
agreeing to indemnify the
Federal Government against
third party claims for damages
arising from or related to
competition activities; and
``(II) the Federal
Government for damage or loss
to Government property
resulting from such an
activity.
``(G) Judges.--
``(i) Selection.--Subject to clause
(iii), for each prize competition, the
Secretary, either directly or through
an agreement under subparagraph (H),
may appoint 1 or more qualified judges
to select the winner or winners of the
prize competition on the basis of the
criteria described in subparagraph (D).
``(ii) Selection.--Judges for each
competition shall include individuals
from outside the Federal Government,
including the private sector.
``(iii) Limitations.--A judge
selected under this subparagraph may
not--
``(I) have personal or
financial interests in, or be
an employee, officer, director,
or agent of, any entity that is
a registered participant in a
prize competition under this
paragraph; or
``(II) have a familial or
financial relationship with an
individual who is a registered
participant.
``(H) Administering the competition.--The
Secretary may enter into an agreement with a
private, nonprofit entity to administer the
prize competition, subject to the provisions of
this paragraph.
``(I) Funding.--
``(i) In general.--
``(I) Private sector
funding.--A cash prize under
this paragraph may consist of
funds appropriated by the
Federal Government and funds
provided by the private sector.
``(II) Government
funding.--The Secretary may
accept funds from other Federal
agencies, State and local
governments, and metropolitan
planning organizations for a
cash prize under this
paragraph.
``(III) No special
consideration.--The Secretary
may not give any special
consideration to any private
sector entity in return for a
donation under this
subparagraph.
``(ii) Availability of funds.--
Notwithstanding any other provision of
law, amounts appropriated for prize
awards under this paragraph--
``(I) shall remain
available until expended; and
``(II) may not be
transferred, reprogrammed, or
expended for other purposes
until after the expiration of
the 10-year period beginning on
the last day of the fiscal year
for which the funds were
originally appropriated.
``(iii) Savings provision.--Nothing
in this subparagraph may be construed
to permit the obligation or payment of
funds in violation of the Anti-
Deficiency Act (31 U.S.C. 1341).
``(iv) Prize announcement.--A prize
may not be announced under this
paragraph until all the funds needed to
pay out the announced amount of the
prize have been appropriated by a
governmental source or committed to in
writing by a private source.
``(v) Prize increases.--The
Secretary may increase the amount of a
prize after the initial announcement of
the prize under this paragraph if--
``(I) notice of the
increase is provided in the
same manner as the initial
notice of the prize; and
``(II) the funds needed to
pay out the announced amount of
the increase have been
appropriated by a governmental
source or committed to in
writing by a private source.
``(vi) Congressional
notification.--A prize competition
under this paragraph may offer a prize
in an amount greater than $1,000,000
only after 30 days have elapsed after
written notice has been transmitted to
the Committee on Commerce, Science, and
Transportation of the Senate and the
Committees on Transportation and
Infrastructure and Science, Space, and
Technology of the House of
Representatives.
``(vii) Award limit.--A prize
competition under this section may not
result in the award of more than
$25,000 in cash prizes without the
approval of the Secretary.
``(J) Compliance with existing law.--The
Federal Government shall not, by virtue of
offering or providing a prize under this
paragraph, be responsible for compliance by
registered participants in a prize competition
with Federal law, including licensing, export
control, and non-proliferation laws, and
related regulations.
``(K) Notice and annual report.--
``(i) In general.--Not later than
30 days prior to carrying out an
activity under subparagraph (A), the
Secretary shall notify the Committees
on Transportation and Infrastructure
and Science, Space, and Technology of
the House of Representatives and the
Committees on Environment and Public
Works and Commerce, Science, and
Transportation of the Senate of the
intent to use such authority.
``(ii) Reports.--
``(I) In general.--The
Secretary shall submit to the
committees described in clause
(i) on an annual basis a report
on the activities carried out
under subparagraph (A) in the
preceding fiscal year if the
Secretary exercised the
authority under subparagraph
(A) in that fiscal year.
``(II) Information
included.--A report under this
subparagraph shall include, for
each prize competition under
subparagraph (A)--
``(aa) a
description of the
proposed goals of the
prize competition;
``(bb) an analysis
of why the use of the
authority under
subparagraph (A) was
the preferable method
of achieving the goals
described in item (aa)
as opposed to other
authorities available
to the Secretary, such
as contracts, grants,
and cooperative
agreements;
``(cc) the total
amount of cash prizes
awarded for each prize
competition, including
a description of the
amount of private funds
contributed to the
program, the source of
such funds, and the
manner in which the
amounts of cash prizes
awarded and claimed
were allocated among
the accounts of the
Department for
recording as
obligations and
expenditures;
``(dd) the methods
used for the
solicitation and
evaluation of
submissions under each
prize competition,
together with an
assessment of the
effectiveness of such
methods and lessons
learned for future
prize competitions;
``(ee) a
description of the
resources, including
personnel and funding,
used in the execution
of each prize
competition together
with a detailed
description of the
activities for which
such resources were
used and an accounting
of how funding for
execution was allocated
among the accounts of
the agency for
recording as
obligations and
expenditures; and
``(ff) a
description of how each
prize competition
advanced the mission of
the Department.'';
(4) in subsection (c)--
(A) in paragraph (3)(A)--
(i) by striking ``subsection'' and
inserting ``chapter''; and
(ii) by striking ``50'' and
inserting ``80''; and
(B) in paragraph (4) by striking
``subsection'' and inserting ``chapter''; and
(5) by striking subsections (d) through (j).
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by striking the item
relating to section 502 and inserting the following:
``502. Surface transportation research, development, and technology.''
SEC. 52003. RESEARCH AND TECHNOLOGY DEVELOPMENT AND DEPLOYMENT.
(a) In General.--Section 503 of title 23, United States
Code, is amended to read as follows:
``Sec. 503. Research and technology development and deployment
``(a) In General.--The Secretary shall--
``(1) carry out research, development, and
deployment activities that encompass the entire
innovation lifecycle; and
``(2) ensure that all research carried out under
this section aligns with the transportation research
and development strategic plan of the Secretary under
section 508.
``(b) Highway Research and Development Program.--
``(1) Objectives.--In carrying out the highway
research and development program, the Secretary, to
address current and emerging highway transportation
needs, shall--
``(A) identify research topics;
``(B) coordinate research and development
activities;
``(C) carry out research, testing, and
evaluation activities; and
``(D) provide technology transfer and
technical assistance.
``(2) Improving highway safety.--
``(A) In general.--The Secretary shall
carry out research and development activities
from an integrated perspective to establish and
implement systematic measures to improve
highway safety.
``(B) Objectives.--In carrying out this
paragraph, the Secretary shall carry out
research and development activities--
``(i) to achieve greater long-term
safety gains;
``(ii) to reduce the number of
fatalities and serious injuries on
public roads;
``(iii) to fill knowledge gaps that
limit the effectiveness of research;
``(iv) to support the development
and implementation of State strategic
highway safety plans;
``(v) to advance improvements in,
and use of, performance prediction
analysis for decisionmaking; and
``(vi) to expand technology
transfer to partners and stakeholders.
``(C) Contents.--Research and technology
activities carried out under this paragraph may
include--
``(i) safety assessments and
decisionmaking tools;
``(ii) data collection and
analysis;
``(iii) crash reduction
projections;
``(iv) low-cost safety
countermeasures;
``(v) innovative operational
improvements and designs of roadway and
roadside features;
``(vi) evaluation of countermeasure
costs and benefits;
``(vii) development of tools for
projecting impacts of safety
countermeasures;
``(viii) rural road safety
measures;
``(ix) safety measures for
vulnerable road users, including
bicyclists and pedestrians;
``(x) safety policy studies;
``(xi) human factors studies and
measures;
``(xii) safety technology
deployment;
``(xiii) safety workforce
professional capacity building
initiatives;
``(xiv) safety program and process
improvements; and
``(xv) tools and methods to enhance
safety performance, including
achievement of statewide safety
performance targets.
``(3) Improving infrastructure integrity.--
``(A) In general.--The Secretary shall
carry out and facilitate highway and bridge
infrastructure research and development
activities--
``(i) to maintain infrastructure
integrity;
``(ii) to meet user needs; and
``(iii) to link Federal
transportation investments to
improvements in system performance.
``(B) Objectives.--In carrying out this
paragraph, the Secretary shall carry out
research and development activities--
``(i) to reduce the number of
fatalities attributable to
infrastructure design characteristics
and work zones;
``(ii) to improve the safety and
security of highway infrastructure;
``(iii) to increase the reliability
of lifecycle performance predictions
used in infrastructure design,
construction, and management;
``(iv) to improve the ability of
transportation agencies to deliver
projects that meet expectations for
timeliness, quality, and cost;
``(v) to reduce user delay
attributable to infrastructure system
performance, maintenance,
rehabilitation, and construction;
``(vi) to improve highway condition
and performance through increased use
of design, materials, construction, and
maintenance innovations;
``(vii) to reduce the environmental
impacts of highway infrastructure
through innovations in design,
construction, operation, preservation,
and maintenance; and
``(viii) to study vulnerabilities
of the transportation system to seismic
activities and extreme events and
methods to reduce those
vulnerabilities.
``(C) Contents.--Research and technology
activities carried out under this paragraph may
include--
``(i) long-term infrastructure
performance programs addressing
pavements, bridges, tunnels, and other
structures;
``(ii) short-term and accelerated
studies of infrastructure performance;
``(iii) research to develop more
durable infrastructure materials and
systems;
``(iv) advanced infrastructure
design methods;
``(v) accelerated highway and
bridge construction;
``(vi) performance-based
specifications;
``(vii) construction and materials
quality assurance;
``(viii) comprehensive and
integrated infrastructure asset
management;
``(ix) infrastructure safety
assurance;
``(x) sustainable infrastructure
design and construction;
``(xi) infrastructure
rehabilitation and preservation
techniques, including techniques to
rehabilitate and preserve historic
infrastructure;
``(xii) hydraulic, geotechnical,
and aerodynamic aspects of
infrastructure;
``(xiii) improved highway
construction technologies and
practices;
``(xiv) improved tools,
technologies, and models for
infrastructure management, including
assessment and monitoring of
infrastructure condition;
``(xv) studies to improve
flexibility and resiliency of
infrastructure systems to withstand
climate variability;
``(xvi) studies on the
effectiveness of fiber-based additives
to improve the durability of surface
transportation materials in various
geographic regions;
``(xvii) studies of infrastructure
resilience and other adaptation
measures;
``(xviii) maintenance of seismic
research activities, including research
carried out in conjunction with other
Federal agencies to study the
vulnerability of the transportation
system to seismic activity and methods
to reduce that vulnerability; and
``(xix) technology transfer and
adoption of permeable, pervious, or
porous paving materials, practices, and
systems that are designed to minimize
environmental impacts, stormwater
runoff, and flooding and to treat or
remove pollutants by allowing
stormwater to infiltrate through the
pavement in a manner similar to
predevelopment hydrologic conditions.
``(D) Lifecycle costs analysis study.--
``(i) In general.--In this
subparagraph, the term `lifecycle costs
analysis' means a process for
evaluating the total economic worth of
a usable project segment by analyzing
initial costs and discounted future
costs, such as maintenance, user,
reconstruction, rehabilitation,
restoring, and resurfacing costs, over
the life of the project segment.
``(ii) Study.--The Comptroller
General shall conduct a study of the
best practices for calculating
lifecycle costs and benefits for
federally funded highway projects,
which shall include, at a minimum, a
thorough literature review and a survey
of current lifecycle cost practices of
State departments of transportation.
``(iii) Consultation.--In carrying
out the study, the Comptroller shall
consult with, at a minimum--
``(I) the American
Association of State Highway
and Transportation Officials;
``(II) appropriate experts
in the field of lifecycle cost
analysis; and
``(III) appropriate
industry experts and research
centers.
``(E) Report.--Not later than 1 year after
the date of enactment of the Transportation
Research and Innovative Technology Act of 2012,
the Comptroller General shall submit to the
Committee on Environment and Public Works of
the Senate and the Committees on Transportation
and Infrastructure and Science, Space, and
Technology of the House of Representatives a
report on the results of the study which shall
include--
``(i) a summary of the latest
research on lifecycle cost analysis;
and
``(ii) recommendations on the
appropriate--
``(I) period of analysis;
``(II) design period;
``(III) discount rates; and
``(IV) use of actual
material life and maintenance
cost data.
``(4) Strengthening transportation planning and
environmental decisionmaking.--
``(A) In general.--The Secretary may carry
out research--
``(i) to minimize the cost of
transportation planning and
environmental decisionmaking processes;
``(ii) to improve transportation
planning and environmental
decisionmaking processes; and
``(iii) to minimize the potential
impact of surface transportation on the
environment.
``(B) Objectives.--In carrying out this
paragraph the Secretary may carry out research
and development activities--
``(i) to minimize the cost of
highway infrastructure and operations;
``(ii) to reduce the potential
impact of highway infrastructure and
operations on the environment;
``(iii) to advance improvements in
environmental analyses and processes
and context sensitive solutions for
transportation decisionmaking;
``(iv) to improve construction
techniques;
``(v) to accelerate construction to
reduce congestion and related
emissions;
``(vi) to reduce the impact of
highway runoff on the environment;
``(vii) to improve understanding
and modeling of the factors that
contribute to the demand for
transportation; and
``(viii) to improve transportation
planning decisionmaking and
coordination.
``(C) Contents.--Research and technology
activities carried out under this paragraph may
include--
``(i) creation of models and tools
for evaluating transportation measures
and transportation system designs,
including the costs and benefits;
``(ii) congestion reduction
efforts;
``(iii) transportation and economic
development planning in rural areas and
small communities;
``(iv) improvement of State, local,
and tribal government capabilities
relating to surface transportation
planning and the environment; and
``(v) streamlining of project
delivery processes.
``(5) Reducing congestion, improving highway
operations, and enhancing freight productivity.--
``(A) In general.--The Secretary shall
carry out research under this paragraph with
the goals of--
``(i) addressing congestion
problems;
``(ii) reducing the costs of
congestion;
``(iii) improving freight movement;
``(iv) increasing productivity; and
``(v) improving the economic
competitiveness of the United States.
``(B) Objectives.--In carrying out this
paragraph, the Secretary shall carry out
research and development activities to
identify, develop, and assess innovations that
have the potential--
``(i) to reduce traffic congestion;
``(ii) to improve freight movement;
and
``(iii) to reduce freight-related
congestion throughout the
transportation network.
``(C) Contents.--Research and technology
activities carried out under this paragraph may
include--
``(i) active traffic and demand
management;
``(ii) acceleration of the
implementation of Intelligent
Transportation Systems technology;
``(iii) advanced transportation
concepts and analysis;
``(iv) arterial management and
traffic signal operation;
``(v) congestion pricing;
``(vi) corridor management;
``(vii) emergency operations;
``(viii) research relating to
enabling technologies and applications;
``(ix) freeway management;
``(x) evaluation of enabling
technologies;
``(xi) impacts of vehicle size and
weight on congestion;
``(xii) freight operations and
technology;
``(xiii) operations and freight
performance measurement and management;
``(xiv) organization and planning
for operations;
``(xv) planned special events
management;
``(xvi) real-time transportation
information;
``(xvii) road weather management;
``(xviii) traffic and freight data
and analysis tools;
``(xix) traffic control devices;
``(xx) traffic incident management;
``(xxi) work zone management;
``(xxii) communication of travel,
roadway, and emergency information to
persons with disabilities;
``(xxiii) research on enhanced mode
choice and intermodal connectivity;
``(xxiv) techniques for estimating
and quantifying public benefits derived
from freight transportation projects;
and
``(xxv) other research areas to
identify and address emerging needs
related to freight transportation by
all modes.
``(6) Exploratory advanced research.--The Secretary
shall carry out research and development activities
relating to exploratory advanced research--
``(A) to leverage the targeted capabilities
of the Turner-Fairbank Highway Research Center
to develop technologies and innovations of
national importance; and
``(B) to develop potentially
transformational solutions to improve the
durability, efficiency, environmental impact,
productivity, and safety aspects of highway and
intermodal transportation systems.
``(7) Turner-fairbank highway research center.--
``(A) In general.--The Secretary shall
continue to operate in the Federal Highway
Administration a Turner-Fairbank Highway
Research Center.
``(B) Uses of the center.--The Turner-
Fairbank Highway Research Center shall
support--
``(i) the conduct of highway
research and development relating to
emerging highway technology;
``(ii) the development of
understandings, tools, and techniques
that provide solutions to complex
technical problems through the
development of economical and
environmentally sensitive designs,
efficient and quality-controlled
construction practices, and durable
materials;
``(iii) the development of
innovative highway products and
practices; and
``(iv) the conduct of long-term,
high-risk research to improve the
materials used in highway
infrastructure.
``(8) Infrastructure investment needs report.--
``(A) In general.--Not later than July 31,
2013, and July 31 of every second year
thereafter, the Secretary shall submit to the
Committee on Transportation and Infrastructure
of the House of Representatives and the
Committee on Environment and Public Works of
the Senate a report that describes estimates of
the future highway and bridge needs of the
United States and the backlog of current
highway and bridge needs.
``(B) Comparisons.--Each report under
subparagraph (A) shall include all information
necessary to relate and compare the conditions
and service measures used in the previous
biennial reports to conditions and service
measures used in the current report.
``(C) Inclusions.--Each report under
subparagraph (A) shall provide recommendations
to Congress on changes to the highway
performance monitoring system that address--
``(i) improvements to the quality
and standardization of data collection
on all functional classifications of
Federal-aid highways for accurate
system length, lane length, and
vehicle-mile of travel; and
``(ii) changes to the reporting
requirements authorized under section
315, to reflect recommendations under
this paragraph for collection, storage,
analysis, reporting, and display of
data for Federal-aid highways and, to
the maximum extent practical, all
public roads.
``(c) Technology and Innovation Deployment Program.--
``(1) In general.--The Secretary shall carry out a
technology and innovation deployment program relating
to all aspects of highway transportation, including
planning, financing, operation, structures, materials,
pavements, environment, construction, and the duration
of time between project planning and project delivery,
with the goals of--
``(A) significantly accelerating the
adoption of innovative technologies by the
surface transportation community;
``(B) providing leadership and incentives
to demonstrate and promote state-of-the-art
technologies, elevated performance standards,
and new business practices in highway
construction processes that result in improved
safety, faster construction, reduced congestion
from construction, and improved quality and
user satisfaction;
``(C) constructing longer-lasting highways
through the use of innovative technologies and
practices that lead to faster construction of
efficient and safe highways and bridges;
``(D) improving highway efficiency, safety,
mobility, reliability, service life,
environmental protection, and sustainability;
and
``(E) developing and deploying new tools,
techniques, and practices to accelerate the
adoption of innovation in all aspects of
highway transportation.
``(2) Implementation.--
``(A) In general.--The Secretary shall
promote, facilitate, and carry out the program
established under paragraph (1) to distribute
the products, technologies, tools, methods, or
other findings that result from highway
research and development activities, including
research and development activities carried out
under this chapter.
``(B) Accelerated innovation deployment.--
In carrying out the program established under
paragraph (1), the Secretary shall--
``(i) establish and carry out
demonstration programs;
``(ii) provide technical
assistance, and training to researchers
and developers; and
``(iii) develop improved tools and
methods to accelerate the adoption of
proven innovative practices and
technologies as standard practices.
``(C) Implementation of future strategic
highway research program findings and
results.--
``(i) In general.--The Secretary,
in consultation with the American
Association of State Highway and
Transportation Officials and the
Transportation Research Board of the
National Academy of Sciences, shall
promote research results and products
developed under the future strategic
highway research program administered
by the Transportation Research Board of
the National Academy of Sciences.
``(ii) Basis for findings.--The
activities carried out under this
subparagraph shall be based on the
report submitted to Congress by the
Transportation Research Board of the
National Academy of Sciences under
section 510(e).
``(iii) Personnel.--The Secretary
may use funds made available to carry
out this subsection for administrative
costs under this subparagraph.
``(3) Accelerated implementation and deployment of
pavement technologies.--
``(A) In general.--The Secretary shall
establish and implement a program under the
technology and innovation deployment program to
promote, implement, deploy, demonstrate,
showcase, support, and document the application
of innovative pavement technologies, practices,
performance, and benefits.
``(B) Goals.--The goals of the accelerated
implementation and deployment of pavement
technologies program shall include--
``(i) the deployment of new, cost-
effective designs, materials, recycled
materials, and practices to extend the
pavement life and performance and to
improve user satisfaction;
``(ii) the reduction of initial
costs and lifecycle costs of pavements,
including the costs of new
construction, replacement, maintenance,
and rehabilitation;
``(iii) the deployment of
accelerated construction techniques to
increase safety and reduce construction
time and traffic disruption and
congestion;
``(iv) the deployment of
engineering design criteria and
specifications for new and efficient
practices, products, and materials for
use in highway pavements;
``(v) the deployment of new
nondestructive and real-time pavement
evaluation technologies and
construction techniques; and
``(vi) effective technology
transfer and information dissemination
to accelerate implementation of new
technologies and to improve life,
performance, cost effectiveness,
safety, and user satisfaction.
``(C) Funding.--The Secretary shall
obligate for each of fiscal years 2013 through
2014 from funds made available to carry out
this subsection $12,000,000 to accelerate the
deployment and implementation of pavement
technology.''.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by striking the item
relating to section 503 and inserting the following:
``503. Research and technology development and deployment.''.
SEC. 52004. TRAINING AND EDUCATION.
Section 504 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2)(A) by inserting ``and
the employees of any other applicable Federal
agency'' before the semicolon at the end; and
(B) in paragraph (3)(A)(ii)(V) by striking
``expediting'' and inserting ``reducing the
amount of time required for'';
(2) in subsection (b) by striking paragraph (3) and
inserting the following:
``(3) Federal share.--
``(A) Local technical assistance centers.--
``(i) In general.--Subject to
subparagraph (B), the Federal share of
the cost of an activity carried out by
a local technical assistance center
under paragraphs (1) and (2) shall be
50 percent.
``(ii) Non-federal share.--The non-
Federal share of the cost of an
activity described in clause (i) may
consist of amounts provided to a
recipient under subsection (e) or
section 505, up to 100 percent of the
non-Federal share.
``(B) Tribal technical assistance
centers.--The Federal share of the cost of an
activity carried out by a tribal technical
assistance center under paragraph (2)(D)(ii)
shall be 100 percent.'';
(3) in subsection (c)(2)--
(A) by striking ``The Secretary'' and
inserting the following:
``(A) In general.--The Secretary'';
(B) in subparagraph (A) (as designated by
subparagraph (A)) by striking ``. The program''
and inserting ``, which program''; and
(C) by adding at the end the following:
``(B) Use of amounts.--Amounts provided to
institutions of higher education to carry out
this paragraph shall be used to provide direct
support of student expenses.'';
(4) in subsection (e)--
(A) in paragraph (1)--
(i) in the matter preceding
subparagraph (A) by striking ``sections
104(b)(1), 104(b)(2), 104(b)(3),
104(b)(4), and 144(e)'' and inserting
``paragraphs (1) through (4) of section
104(b)'';
(ii) in subparagraph (D) by
striking ``and'' at the end;
(iii) in subparagraph (E) by
striking the period and inserting a
semicolon; and
(iv) by adding at the end the
following:
``(F) activities carried out by the
National Highway Institute under subsection
(a); and
``(G) local technical assistance programs
under subsection (b).''; and
(B) in paragraph (2) by inserting ``,
except for activities carried out under
paragraph (1)(G), for which the Federal share
shall be 50 percent'' before the period at the
end;
(5) in subsection (f) in the heading, by striking
``Pilot'';
(6) in subsection (g)(4)(F) by striking
``excellence'' and inserting ``stewardship''; and
(7) by adding at the end the following:
``(h) Centers for Surface Transportation Excellence.--
``(1) In general.--The Secretary shall make grants
under this section to establish and maintain centers
for surface transportation excellence.
``(2) Goals.--The goals of a center referred to in
paragraph (1) shall be to promote and support strategic
national surface transportation programs and activities
relating to the work of State departments of
transportation in the areas of environment, surface
transportation safety, rural safety, and project
finance.
``(3) Role of the centers.--To achieve the goals
set forth in paragraph (2), any centers established
under paragraph (1) shall provide technical assistance,
information sharing of best practices, and training in
the use of tools and decisionmaking processes that can
assist States in effectively implementing surface
transportation programs, projects, and policies.
``(4) Program administration.--
``(A) Competition.--A party entering into a
contract, cooperative agreement, or other
transaction with the Secretary under this
subsection, or receiving a grant to perform
research or provide technical assistance under
this subsection, shall be selected on a
competitive basis.
``(B) Strategic plan.--The Secretary shall
require each center to develop a multiyear
strategic plan, that--
``(i) is submitted to the Secretary
at such time as the Secretary requires;
and
``(ii) describes--
``(I) the activities to be
undertaken by the center; and
``(II) how the work of the
center will be coordinated with
the activities of the Federal
Highway Administration and the
various other research,
development, and technology
transfer activities authorized
under this chapter.''.
SEC. 52005. STATE PLANNING AND RESEARCH.
Section 505 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)
by striking ``section 104 (other than sections
104(f) and 104(h)) and under section 144'' and
inserting ``paragraphs (1) through (4) of
section 104(b)''; and
(B) in paragraph (3) by striking ``under
section 303'' and inserting ``, plans, and
processes under sections 119, 148, 149, and
167'';
(2) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively;
(3) by inserting after subsection (b) the
following:
``(c) Implementation of Future Strategic Highway Research
Program Findings and Results.--
``(1) Funds.--A State shall make available to the
Secretary to carry out section 503(c)(2)(C) a
percentage of funds subject to subsection (a) that are
apportioned to that State, that is agreed to by \3/4\
of States for each of fiscal years 2013 and 2014.
``(2) Treatment of funds.--Funds expended under
paragraph (1) shall not be considered to be part of the
extramural budget of the agency for the purpose of
section 9 of the Small Business Act (15 U.S.C. 638).'';
and
(4) in subsection (e) (as so redesignated) by
striking ``section 118(b)(2)'' and inserting ``section
118(b)''.
SEC. 52006. INTERNATIONAL HIGHWAY TRANSPORTATION PROGRAM.
(a) In General.--Section 506 of title 23, United States
Code, is repealed.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by striking the item
relating to section 506.
SEC. 52007. SURFACE TRANSPORTATION ENVIRONMENTAL COOPERATIVE RESEARCH
PROGRAM.
(a) In General.--Section 507 of title 23, United States
Code, is repealed.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by striking the item
relating to section 507.
SEC. 52008. NATIONAL COOPERATIVE FREIGHT RESEARCH.
(a) In General.--Section 509 of title 23, United States
Code, is repealed.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by striking the item
relating to section 509.
SEC. 52009. UNIVERSITY TRANSPORTATION CENTERS PROGRAM.
(a) In General.--Section 5505 of title 49, United States
Code, is amended to read as follows:
``Sec. 5505. University transportation centers program
``(a) University Transportation Centers Program.--
``(1) Establishment and operation.--The Secretary
shall make grants under this section to eligible
nonprofit institutions of higher education to establish
and operate university transportation centers.
``(2) Role of centers.--The role of each university
transportation center referred to in paragraph (1)
shall be--
``(A) to advance transportation expertise
and technology in the varied disciplines that
comprise the field of transportation through
education, research, and technology transfer
activities;
``(B) to provide for a critical
transportation knowledge base outside of the
Department of Transportation; and
``(C) to address critical workforce needs
and educate the next generation of
transportation leaders.
``(b) Competitive Selection Process.--
``(1) Applications.--To receive a grant under this
section, a nonprofit institution of higher education
shall submit to the Secretary an application that is in
such form and contains such information as the
Secretary may require.
``(2) Restriction.--A nonprofit institution of
higher education or the lead institution of a
consortium of nonprofit institutions of higher
education, as applicable, that receives a grant for a
national transportation center or a regional
transportation center in a fiscal year shall not be
eligible to receive as a lead institution or member of
a consortium an additional grant in that fiscal year
for a national transportation center or a regional
transportation center.
``(3) Coordination.--The Secretary shall solicit
grant applications for national transportation centers,
regional transportation centers, and Tier 1 university
transportation centers with identical advertisement
schedules and deadlines.
``(4) General selection criteria.--
``(A) In general.--Except as otherwise
provided by this section, the Secretary shall
award grants under this section in nonexclusive
candidate topic areas established by the
Secretary that address the research priorities
identified in section 503 of title 23.
``(B) Criteria.--The Secretary, in
consultation as appropriate with the
Administrators of the Federal Highway
Administration and the Federal Transit
Administration, shall select each recipient of
a grant under this section through a
competitive process based on the assessment of
the Secretary relating to--
``(i) the demonstrated ability of
the recipient to address each specific
topic area described in the research
and strategic plans of the recipient;
``(ii) the demonstrated research,
technology transfer, and education
resources available to the recipient to
carry out this section;
``(iii) the ability of the
recipient to provide leadership in
solving immediate and long-range
national and regional transportation
problems;
``(iv) the ability of the recipient
to carry out research, education, and
technology transfer activities that are
multimodal and multidisciplinary in
scope;
``(v) the demonstrated commitment
of the recipient to carry out
transportation workforce development
programs through--
``(I) degree-granting
programs; and
``(II) outreach activities
to attract new entrants into
the transportation field;
``(vi) the demonstrated ability of
the recipient to disseminate results
and spur the implementation of
transportation research and education
programs through national or statewide
continuing education programs;
``(vii) the demonstrated commitment
of the recipient to the use of peer
review principles and other research
best practices in the selection,
management, and dissemination of
research projects;
``(viii) the strategic plan
submitted by the recipient describing
the proposed research to be carried out
by the recipient and the performance
metrics to be used in assessing the
performance of the recipient in meeting
the stated research, technology
transfer, education, and outreach
goals; and
``(ix) the ability of the recipient
to implement the proposed program in a
cost-efficient manner, such as through
cost sharing and overall reduced
overhead, facilities, and
administrative costs.
``(5) Transparency.--
``(A) In general.--The Secretary shall
provide to each applicant, upon request, any
materials, including copies of reviews (with
any information that would identify a reviewer
redacted), used in the evaluation process of
the proposal of the applicant.
``(B) Reports.--The Secretary shall submit
to the Committees on Transportation and
Infrastructure and Science, Space, and
Technology of the House of Representatives and
the Committee on Environment and Public Works
of the Senate a report describing the overall
review process under paragraph (3) that
includes--
``(i) specific criteria of
evaluation used in the review;
``(ii) descriptions of the review
process; and
``(iii) explanations of the
selected awards.
``(6) Outside stakeholders.--The Secretary shall,
to the maximum extent practicable, consult external
stakeholders such as the Transportation Research Board
of the National Academy of Sciences to evaluate and
competitively review all proposals.
``(c) Grants.--
``(1) In general.--Not later than 1 year after the
date of enactment of the Transportation Research and
Innovative Technology Act of 2012, the Secretary, in
consultation as appropriate with the Administrators of
the Federal Highway Administration and the Federal
Transit Administration, shall select grant recipients
under subsection (b) and make grant amounts available
to the selected recipients.
``(2) National transportation centers.--
``(A) In general.--Subject to subparagraph
(B), the Secretary shall provide grants to 5
recipients that the Secretary determines best
meet the criteria described in subsection
(b)(3).
``(B) Restrictions.--
``(i) In general.--For each fiscal
year, a grant made available under this
paragraph shall be $3,000,000 per
recipient.
``(ii) Focused research.--The grant
recipients under this paragraph shall
focus research on national
transportation issues, as determined by
the Secretary.
``(C) Matching requirement.--
``(i) In general.--As a condition
of receiving a grant under this
paragraph, a grant recipient shall
match 100 percent of the amounts made
available under the grant.
``(ii) Sources.--The matching
amounts referred to in clause (i) may
include amounts made available to the
recipient under section 504(b) or 505
of title 23.
``(3) Regional university transportation centers.--
``(A) Location of regional centers.--One
regional university transportation center shall
be located in each of the 10 Federal regions
that comprise the Standard Federal Regions
established by the Office of Management and
Budget in the document entitled `Standard
Federal Regions' and dated April, 1974
(circular A-105).
``(B) Selection criteria.--In conducting a
competition under subsection (b), the Secretary
shall provide grants to 10 recipients on the
basis of--
``(i) the criteria described in
subsection (b)(3);
``(ii) the location of the center
within the Federal region to be served;
and
``(iii) whether the institution
(or, in the case of consortium of
institutions, the lead institution)
demonstrates that the institution has a
well-established, nationally recognized
program in transportation research and
education, as evidenced by--
``(I) recent expenditures
by the institution in highway
or public transportation
research;
``(II) a historical track
record of awarding graduate
degrees in professional fields
closely related to highways and
public transportation; and
``(III) an experienced
faculty who specialize in
professional fields closely
related to highways and public
transportation.
``(C) Restrictions.--For each fiscal year,
a grant made available under this paragraph
shall be $2,750,000 for each recipient.
``(D) Matching requirements.--
``(i) In general.--As a condition
of receiving a grant under this
paragraph, a grant recipient shall
match 100 percent of the amounts made
available under the grant.
``(ii) Sources.--The matching
amounts referred to in the clause (i)
may include amounts made available to
the recipient under section 504(b) or
505 of title 23.
``(E) Focused research.--The Secretary
shall make a grant to 1 of the 10 regional
university transportation centers established
under this paragraph for the purpose of
furthering the objectives described in
subsection (a)(2) in the field of comprehensive
transportation safety.
``(4) Tier 1 university transportation centers.--
``(A) In general.--The Secretary shall
provide grants of $1,500,000 each to not more
than 20 recipients to carry out this paragraph.
``(B) Restriction.--A lead institution of a
consortium that receives a grant under
paragraph (2) or (3) shall not be eligible to
receive a grant under this paragraph.
``(C) Matching requirement.--
``(i) In general.--Subject to
clause (iii), as a condition of
receiving a grant under this paragraph,
a grant recipient shall match 50
percent of the amounts made available
under the grant.
``(ii) Sources.--The matching
amounts referred to in clause (i) may
include amounts made available to the
recipient under section 504(b) or 505
of title 23.
``(iii) Exemption.--This
subparagraph shall not apply on a
demonstration of financial hardship by
the applicant institution.
``(D) Focused research.--In awarding grants
under this paragraph, consideration shall be
given to minority institutions, as defined by
section 365 of the Higher Education Act of 1965
(20 U.S.C. 1067k), or consortia that include
such institutions that have demonstrated an
ability in transportation-related research.
``(d) Program Coordination.--
``(1) In general.--The Secretary shall--
``(A) coordinate the research, education,
and technology transfer activities carried out
by grant recipients under this section; and
``(B) disseminate the results of that
research through the establishment and
operation of an information clearinghouse.
``(2) Annual review and evaluation.--Not less
frequently than annually, and consistent with the plan
developed under section 508 of title 23, the Secretary
shall--
``(A) review and evaluate the programs
carried out under this section by grant
recipients; and
``(B) submit to the Committees on
Transportation and Infrastructure and Science,
Space, and Technology of the House of
Representatives and the Committee on
Environment and Public Works of the Senate a
report describing that review and evaluation.
``(3) Program evaluation and oversight.--For each
of fiscal years 2013 and 2014, the Secretary shall
expend not more than 1\1/2\ percent of the amounts made
available to the Secretary to carry out this section
for any coordination, evaluation, and oversight
activities of the Secretary under this section.
``(e) Limitation on Availability of Amounts.--Amounts made
available to the Secretary to carry out this section shall
remain available for obligation by the Secretary for a period
of 3 years after the last day of the fiscal year for which the
amounts are appropriated.
``(f) Information Collection.--Any survey, questionnaire,
or interview that the Secretary determines to be necessary to
carry out reporting requirements relating to any program
assessment or evaluation activity under this section, including
customer satisfaction assessments, shall not be subject to
chapter 35 of title 44.''.
(b) Conforming Amendment.--The analysis for chapter 55 of
title 49, United States Code, is amended by striking the item
relating to section 5505 and inserting the following:
``5505. University transportation centers program.''.
SEC. 52010. UNIVERSITY TRANSPORTATION RESEARCH.
(a) In General.--Section 5506 of title 49, United States
Code, is repealed.
(b) Conforming Amendment.--The analysis for chapter 55 of
title 49, United States Code, is amended by striking the item
relating to section 5506.
SEC. 52011. BUREAU OF TRANSPORTATION STATISTICS.
(a) In General.--Subtitle III of title 49, United States
Code, is amended by adding at the end the following:
``CHAPTER 63--BUREAU OF TRANSPORTATION STATISTICS
``Sec.
``6301. Definitions.
``6302. Bureau of Transportation Statistics.
``6303. Intermodal transportation database.
``6304. National Transportation Library.
``6305. Advisory council on transportation statistics.
``6306. Transportation statistical collection, analysis, and
dissemination.
``6307. Furnishing of information, data, or reports by Federal agencies.
``6308. Proceeds of data product sales.
``6309. National transportation atlas database.
``6310. Limitations on statutory construction.
``6311. Research and development grants.
``6312. Transportation statistics annual report.
``6313. Mandatory response authority for freight data collection.
``Sec. 6301. Definitions
``In this chapter, the following definitions apply:
``(1) Bureau.--The term `Bureau' means the Bureau
of Transportation Statistics established by section
6302(a).
``(2) Department.--The term `Department' means the
Department of Transportation.
``(3) Director.--The term `Director' means the
Director of the Bureau.
``(4) Library.--The term `Library' means the
National Transportation Library established by section
6304(a).
``(5) Secretary.--The term `Secretary' means the
Secretary of Transportation.
``Sec. 6302. Bureau of Transportation Statistics
``(a) Establishment.--There is established in the Research
and Innovative Technology Administration the Bureau of
Transportation Statistics.
``(b) Director.--
``(1) Appointment.--The Bureau shall be headed by a
Director, who shall be appointed in the competitive
service by the Secretary.
``(2) Qualifications.--The Director shall be
appointed from among individuals who are qualified to
serve as the Director by virtue of their training and
experience in the collection, analysis, and use of
transportation statistics.
``(3) Duties.--
``(A) In general.--The Director shall--
``(i) serve as the senior advisor
to the Secretary on data and
statistics; and
``(ii) be responsible for carrying
out the duties described in
subparagraph (B).
``(B) Duties.--The Director shall--
``(i) ensure that the statistics
compiled under clause (vi) are designed
to support transportation
decisionmaking by--
``(I) the Federal
Government;
``(II) State and local
governments;
``(III) metropolitan
planning organizations;
``(IV) transportation-
related associations;
``(V) the private sector,
including the freight
community; and
``(VI) the public;
``(ii) establish on behalf of the
Secretary a program--
``(I) to effectively
integrate safety data across
modes; and
``(II) to address gaps in
existing safety data programs
of the Department;
``(iii) work with the operating
administrations of the Department--
``(I) to establish and
implement the data programs of
the Bureau; and
``(II) to improve the
coordination of information
collection efforts with other
Federal agencies;
``(iv) continually improve surveys
and data collection methods of the
Department to improve the accuracy and
utility of transportation statistics;
``(v) encourage the standardization
of data, data collection methods, and
data management and storage
technologies for data collected by--
``(I) the Bureau;
``(II) the operating
administrations of the
Department;
``(III) State and local
governments;
``(IV) metropolitan
planning organizations; and
``(V) private sector
entities;
``(vi) collect, compile, analyze,
and publish a comprehensive set of
transportation statistics on the
performance and impacts of the national
transportation system, including
statistics on--
``(I) transportation safety
across all modes and
intermodally;
``(II) the state of good
repair of United States
transportation infrastructure;
``(III) the extent,
connectivity, and condition of
the transportation system,
building on the national
transportation atlas database
developed under section 6310;
``(IV) economic efficiency
across the entire
transportation sector;
``(V) the effects of the
transportation system on global
and domestic economic
competitiveness;
``(VI) demographic,
economic, and other variables
influencing travel behavior,
including choice of
transportation mode and goods
movement;
``(VII) transportation-
related variables that
influence the domestic economy
and global competitiveness;
``(VIII) economic costs and
impacts for passenger travel
and freight movement;
``(IX) intermodal and
multimodal passenger movement;
``(X) intermodal and
multimodal freight movement;
and
``(XI) consequences of
transportation for the human
and natural environment;
``(vii) build and disseminate the
transportation layer of the National
Spatial Data Infrastructure developed
under Executive Order 12906 (59 Fed.
Reg. 17671) (or a successor Executive
Order), including by coordinating the
development of transportation
geospatial data standards, compiling
intermodal geospatial data, and
collecting geospatial data that is not
being collected by other entities;
``(viii) issue guidelines for the
collection of information by the
Department that the Director determines
necessary to develop transportation
statistics and carry out modeling,
economic assessment, and program
assessment activities to ensure that
such information is accurate, reliable,
relevant, uniform, and in a form that
permits systematic analysis by the
Department;
``(ix) review and report to the
Secretary on the sources and
reliability of--
``(I) the statistics
proposed by the heads of the
operating administrations of
the Department to measure
outputs and outcomes as
required by the Government
Performance and Results Act of
1993 (Public Law 103-62;107
Stat. 285); and
``(II) at the request of
the Secretary, any other data
collected or statistical
information published by the
heads of the operating
administrations of the
Department; and
``(x) ensure that the statistics
published under this section are
readily accessible to the public,
consistent with applicable security
constraints and confidentiality
interests.
``(c) Access to Federal Data.--In carrying out subsection
(b)(3)(B)(ii), the Director shall be given access to all safety
data that the Director determines necessary to carry out that
subsection that is held by the Department or any other Federal
agency upon written request and subject to any statutory or
regulatory restrictions.
``Sec. 6303. Intermodal transportation database
``(a) In General.--In consultation with the Under Secretary
Transportation for Policy, the Assistant Secretaries of the
Department, and the heads of the operating administrations of
the Department, the Director shall establish and maintain a
transportation database for all modes of transportation.
``(b) Use.--The database established under this section
shall be suitable for analyses carried out by the Federal
Government, the States, and metropolitan planning
organizations.
``(c) Contents.--The database established under this
section shall include--
``(1) information on the volumes and patterns of
movement of goods, including local, interregional, and
international movement, by all modes of transportation,
intermodal combinations, and relevant classification;
``(2) information on the volumes and patterns of
movement of people, including local, interregional, and
international movements, by all modes of transportation
(including bicycle and pedestrian modes), intermodal
combinations, and relevant classification;
``(3) information on the location and connectivity
of transportation facilities and services; and
``(4) a national accounting of expenditures and
capital stocks on each mode of transportation and
intermodal combination.
``Sec. 6304. National Transportation Library
``(a) Purpose and Establishment.--To support the
information management and decisionmaking needs of
transportation officials at the Federal, State, and local
levels, there is established in the Bureau a National
Transportation Library which shall--
``(1) be headed by an individual who is highly
qualified in library and information science;
``(2) acquire, preserve, and manage transportation
information and information products and services for
use by the Department, other Federal agencies, and the
general public;
``(3) provide reference and research assistance;
``(4) serve as a central depository for research
results and technical publications of the Department;
``(5) provide a central clearinghouse for
transportation data and information of the Federal
Government;
``(6) serve as coordinator and policy lead for
transportation information access;
``(7) provide transportation information and
information products and services to--
``(A) the Department;
``(B) other Federal agencies;
``(C) public and private organizations; and
``(D) individuals, within the United States
and internationally;
``(8) coordinate efforts among, and cooperate with,
transportation libraries, information providers, and
technical assistance centers, in conjunction with
private industry and other transportation library and
information centers, with the goal of developing a
comprehensive transportation information and knowledge
network that supports the activities described in
section 6302(b)(3)(B)(vi); and
``(9) engage in such other activities as the
Director determines to be necessary and as the
resources of the Library permit.
``(b) Access.--The Director shall publicize, facilitate,
and promote access to the information products and services
described in subsection (a), to improve the ability of the
transportation community to share information and the ability
of the Director to make statistics and other information
readily accessible as required under section 6302(b)(3)(B)(x).
``(c) Agreements.--
``(1) In general.--To carry out this section, the
Director may enter into agreements with, award grants
to, and receive amounts from, any--
``(A) State or local government;
``(B) organization;
``(C) business; or
``(D) individual.
``(2) Contracts, grants, and agreements.--The
Library may initiate and support specific information
and data management, access, and exchange activities in
connection with matters relating to the Department's
strategic goals, knowledge networking, and national and
international cooperation, by entering into contracts
or other agreements or awarding grants for the conduct
of such activities.
``(3) Amounts.--Any amounts received by the Library
as payment for library products and services or other
activities shall be made available to the Director to
carry out this section, deposited in the Research and
Innovative Technology Administration's general fund
account, and remain available until expended.
``Sec. 6305. Advisory council on transportation statistics
``(a) In General.--The Director shall establish and consult
with an advisory council on transportation statistics.
``(b) Function.--The advisory council established under
this section shall advise the Director on--
``(1) the quality, reliability, consistency,
objectivity, and relevance of transportation statistics
and analyses collected, supported, or disseminated by
the Bureau and the Department; and
``(2) methods to encourage cooperation and
interoperability of transportation data collected by
the Bureau, the operating administrations of the
Department, States, local governments, metropolitan
planning organizations, and private sector entities.
``(c) Membership.--
``(1) In general.--The advisory council shall be
composed of not fewer than 9 and not more than 11
members appointed by the Director.
``(2) Selection.--In selecting members for the
advisory council, the Director shall appoint
individuals who--
``(A) are not officers or employees of the
United States;
``(B) possess expertise in--
``(i) transportation data
collection, analysis, or application;
``(ii) economics; or
``(iii) transportation safety; and
``(C) represent a cross section of
transportation stakeholders, to the greatest
extent possible.
``(d) Terms of Appointment.--
``(1) In general.--Except as provided in paragraph
(2), members of the advisory council shall be appointed
to staggered terms not to exceed 3 years.
``(2) Additional terms.--A member may be
renominated for 1 additional 3-year term.
``(3) Current members.--A member serving on an
advisory council on transportation statistics on the
day before the date of enactment of the Transportation
Research and Innovative Technology Act of 2012 shall
serve until the end of the appointed term of the
member.
``(e) Applicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall apply to
the advisory council established under this section, except
that section 14 of that Act shall not apply.
``Sec. 6306. Transportation statistical collection, analysis, and
dissemination
``To ensure that all transportation statistical collection,
analysis, and dissemination is carried out in a coordinated
manner, the Director may--
``(1) use the services, equipment, records,
personnel, information, and facilities of other Federal
agencies, or State, local, and private agencies and
instrumentalities, subject to the conditions that the
applicable agency or instrumentality consents to that
use and with or without reimbursement for such use;
``(2) enter into agreements with the agencies and
instrumentalities described in paragraph (1) for
purposes of data collection and analysis;
``(3) confer and cooperate with foreign
governments, international organizations, and State,
municipal, and other local agencies;
``(4) request such information, data, and reports
from any Federal agency as the Director determines
necessary to carry out this chapter;
``(5) encourage replication, coordination, and
sharing of information among transportation agencies
regarding information systems, information policy, and
data; and
``(6) confer and cooperate with Federal statistical
agencies as the Director determines necessary to carry
out this chapter, including by entering into
cooperative data sharing agreements in conformity with
all laws and regulations applicable to the disclosure
and use of data.
``Sec. 6307. Furnishing of information, data, or reports by Federal
agencies
``(a) In General.--Except as provided in subsection (b), a
Federal agency requested to furnish information, data, or
reports by the Director under section 6302(b)(3)(B) shall
provide the information to the Director.
``(b) Prohibition on Certain Disclosures.--
``(1) In general.--An officer, employee, or
contractor of the Bureau may not--
``(A) make any disclosure in which the data
provided by an individual or organization under
section 6302(b)(3)(B) can be identified;
``(B) use the information provided under
section 6302(b)(3)(B) for a nonstatistical
purpose; or
``(C) permit anyone other than an
individual authorized by the Director to
examine any individual report provided under
section 6302(b)(3)(B).
``(2) Copies of reports.--
``(A) In general.--No department, bureau,
agency, officer, or employee of the United
States (except the Director in carrying out
this chapter) may require, for any reason, a
copy of any report that has been filed under
section 6302(b)(3)(B) with the Bureau or
retained by an individual respondent.
``(B) Limitation on judicial proceedings.--
A copy of a report described in subparagraph
(A) that has been retained by an individual
respondent or filed with the Bureau or any of
the employees, contractors, or agents of the
Bureau--
``(i) shall be immune from legal
process; and
``(ii) shall not, without the
consent of the individual concerned, be
admitted as evidence or used for any
purpose in any action, suit, or other
judicial or administrative proceedings.
``(C) Applicability.--This paragraph shall
apply only to reports that permit information
concerning an individual or organization to be
reasonably determined by direct or indirect
means.
``(3) Informing respondent of use of data.--If the
Bureau is authorized by statute to collect data or
information for a nonstatistical purpose, the Director
shall clearly distinguish the collection of the data or
information, by rule and on the collection instrument,
in a manner that informs the respondent who is
requested or required to supply the data or information
of the nonstatistical purpose.
``(c) Transportation and Transportation-related Data
Access.--The Director shall be provided access to any
transportation and transportation-related information in the
possession of any Federal agency, except--
``(1) information that is expressly prohibited by
law from being disclosed to another Federal agency; or
``(2) information that the agency possessing the
information determines could not be disclosed without
significantly impairing the discharge of authorities
and responsibilities which have been delegated to, or
vested by law, in such agency.
``Sec. 6308. Proceeds of data product sales
``Notwithstanding section 3302 of title 31, amounts
received by the Bureau from the sale of data products for
necessary expenses incurred may be credited to the Highway
Trust Fund (other than the Mass Transit Account) for the
purpose of reimbursing the Bureau for those expenses.
``Sec. 6309. National transportation atlas database
``(a) In General.--The Director shall develop and maintain
a national transportation atlas database that is comprised of
geospatial databases that depict--
``(1) transportation networks;
``(2) flows of people, goods, vehicles, and craft
over the transportation networks; and
``(3) social, economic, and environmental
conditions that affect or are affected by the
transportation networks.
``(b) Intermodal Network Analysis.--The databases referred
to in subsection (a) shall be capable of supporting intermodal
network analysis.
``Sec. 6310. Limitations on statutory construction
``Nothing in this chapter--
``(1) authorizes the Bureau to require any other
Federal agency to collect data; or
``(2) alters or diminishes the authority of any
other officer of the Department to collect and
disseminate data independently.
``Sec. 6311. Research and development grants
``The Secretary may make grants to, or enter into
cooperative agreements or contracts with, public and nonprofit
private entities (including State transportation departments,
metropolitan planning organizations, and institutions of higher
education) for--
``(1) investigation of the subjects described in
section 6302(b)(3)(B)(vi);
``(2) research and development of new methods of
data collection, standardization, management,
integration, dissemination, interpretation, and
analysis;
``(3) demonstration programs by States, local
governments, and metropolitan planning organizations to
coordinate data collection, reporting, management,
storage, and archiving to simplify data comparisons
across jurisdictions;
``(4) development of electronic clearinghouses of
transportation data and related information, as part of
the Library; and
``(5) development and improvement of methods for
sharing geographic data, in support of the database
under section 6310 and the National Spatial Data
Infrastructure developed under Executive Order 12906
(59 Fed. Reg. 17671) (or a successor Executive Order).
``Sec. 6312. Transportation statistics annual report
``The Director shall submit to the President and Congress a
transportation statistics annual report, which shall include--
``(1) information on the progress of the Director
in carrying out the duties described in section
6302(b)(3)(B);
``(2) documentation of the methods used to obtain
and ensure the quality of the statistics presented in
the report; and
``(3) any recommendations of the Director for
improving transportation statistical information.
``Sec. 6313. Mandatory response authority for freight data collection
``(a) Freight Data Collection.--
``(1) In general.--An owner, official, agent,
person in charge, or assistant to the person in charge
of a freight corporation, company, business,
institution, establishment, or organization described
in paragraph (2) shall be fined in accordance with
subsection (b) if that individual neglects or refuses,
when requested by the Director or other authorized
officer, employee, or contractor of the Bureau to
submit data under section 6302(b)(3)(B)--
``(A) to answer completely and correctly to
the best knowledge of that individual all
questions relating to the corporation, company,
business, institution, establishment, or other
organization; or
``(B) to make available records or
statistics in the official custody of the
individual.
``(2) Description of entities.--A freight
corporation, company, business, institution,
establishment, or organization referred to in paragraph
(1) is a corporation, company, business, institution,
establishment, or organization that--
``(A) receives Federal funds relating to
the freight program; and
``(B) has consented to be subject to a fine
under this subsection on--
``(i) refusal to supply any data
requested; or
``(ii) failure to respond to a
written request.
``(b) Fines.--
``(1) In general.--Subject to paragraph (2), an
individual described in subsection (a) shall be fined
not more than $500.
``(2) Willful actions.--If an individual willfully
gives a false answer to a question described in
subsection (a)(1), the individual shall be fined not
more than $10,000.''.
(b) Rules of Construction.--If the provisions of section
111 of title 49, United States Code, are transferred to chapter
63 of that title, the following rules of construction apply:
(1) For purposes of determining whether 1 provision
of law supersedes another based on enactment later in
time, a chapter 63 provision is deemed to have been
enacted on the date of enactment of the corresponding
section 111 provision.
(2) A reference to a section 111 provision,
including a reference in a regulation, order, or other
law, is deemed to refer to the corresponding chapter 63
provision.
(3) A regulation, order, or other administrative
action in effect under a section 111 provision
continues in effect under the corresponding chapter 63
provision.
(4) An action taken or an offense committed under a
section 111 provision is deemed to have been taken or
committed under the corresponding chapter 63 provision.
(c) Conforming Amendments.--
(1) Repeal.--Section 111 of title 49, United States
Code, is repealed, and the item relating to section 111
in the analysis for chapter 1 of that title is deleted.
(2) Analysis for subtitle iii.--The analysis for
subtitle III of title 49, United States Code, is
amended by inserting after the items for chapter 61 the
following:
``Chapter 63--Bureau of Transportation Statistics.''.
SEC. 52012. ADMINISTRATIVE AUTHORITY.
Section 112 of title 49, United States Code, is amended by
adding at the end the following:
``(f) Program Evaluation and Oversight.--For each of fiscal
years 2013 and 2014, the Administrator is authorized to expend
not more than 1\1/2\ percent of the amounts authorized to be
appropriated for necessary expenses for administration and
operations of the Research and Innovative Technology
Administration for the coordination, evaluation, and oversight
of the programs administered by the Administration.
``(g) Collaborative Research and Development.--
``(1) In general.--To encourage innovative
solutions to multimodal transportation problems and
stimulate the deployment of new technology, the
Administrator may carry out, on a cost-shared basis,
collaborative research and development with--
``(A) non-Federal entities, including State
and local governments, foreign governments,
institutions of higher education, corporations,
institutions, partnerships, sole
proprietorships, and trade associations that
are incorporated or established under the laws
of any State;
``(B) Federal laboratories; and
``(C) other Federal agencies.
``(2) Cooperation, grants, contracts, and
agreements.--Notwithstanding any other provision of
law, the Administrator may directly initiate contracts,
grants, cooperative research and development agreements
(as defined in section 12 of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3710a)),
and other agreements to fund, and accept funds from,
the Transportation Research Board of the National
Research Council of the National Academy of Sciences,
State departments of transportation, cities, counties,
institutions of higher education, associations, and the
agents of those entities to carry out joint
transportation research and technology efforts.
``(3) Federal share.--
``(A) In general.--Subject to subparagraph
(B), the Federal share of the cost of an
activity carried out under paragraph (2) shall
not exceed 50 percent.
``(B) Exception.--If the Secretary
determines that the activity is of substantial
public interest or benefit, the Secretary may
approve a greater Federal share.
``(C) Non-federal share.--All costs
directly incurred by the non-Federal partners,
including personnel, travel, facility, and
hardware development costs, shall be credited
toward the non-Federal share of the cost of an
activity described in subparagraph (A).
``(4) Use of technology.--The research,
development, or use of a technology under a contract,
grant, cooperative research and development agreement,
or other agreement entered into under this subsection,
including the terms under which the technology may be
licensed and the resulting royalties may be
distributed, shall be subject to the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3701 et
seq.).
``(5) Waiver of advertising requirements.--Section
6101 of title 41 shall not apply to a contract, grant,
or other agreement entered into under this section.''.
SEC. 52013. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC PLANNING.
Section 508(a) of title 23, United States Code, is
amended--
(1) in paragraph (1), by striking ``SAFETEA-LU''
and inserting ``Transportation Research and Innovative
Technology Act of 2012''; and
(2) in paragraph (2), by striking subparagraph (A)
and inserting the following:
``(A) describe the primary purposes of the
transportation research and development
program, which shall include, at a minimum--
``(i) promoting safety;
``(ii) reducing congestion and
improving mobility;
``(iii) preserving the environment;
``(iv) preserving the existing
transportation system;
``(v) improving the durability and
extending the life of transportation
infrastructure; and
``(vi) improving goods movement.''.
TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH
SEC. 53001. USE OF FUNDS FOR ITS ACTIVITIES.
Section 513 of title 23, United States Code, is amended to
read as follows:
``Sec. 513. Use of funds for ITS activities
``(a) Definitions.--In this section, the following
definitions apply:
``(1) Eligible entity.--The term `eligible entity'
means a State or local government, tribal government,
transit agency, public toll authority, metropolitan
planning organization, other political subdivision of a
State or local government, or a multistate or
multijurisdictional group applying through a single
lead applicant.
``(2) Multijurisdictional group.--The term
`multijurisdictional group' means a combination of
State governments, local governments, metropolitan
planning agencies, transit agencies, or other political
subdivisions of a State that--
``(A) have signed a written agreement to
implement an activity that meets the grant
criteria under this section; and
``(B) is comprised of at least 2 members,
each of whom is an eligible entity.
``(b) Purpose.--The purpose of this section is to develop,
administer, communicate, and promote the use of products of
research, technology, and technology transfer programs.
``(c) ITS Adoption.--
``(1) Innovative technologies and strategies.--The
Secretary shall encourage the deployment of ITS
technologies that will improve the performance of the
National Highway System in such areas as traffic
operations, emergency response, incident management,
surface transportation network management, freight
management, traffic flow information, and congestion
management by accelerating the adoption of innovative
technologies through the use of--
``(A) demonstration programs;
``(B) grant funding;
``(C) incentives to eligible entities; and
``(D) other tools, strategies, or methods
that will result in the deployment of
innovative ITS technologies.
``(2) Comprehensive plan.--To carry out this
section, the Secretary shall develop a detailed and
comprehensive plan that addresses the manner in which
incentives may be adopted, as appropriate, through the
existing deployment activities carried out by surface
transportation modal administrations.''.
SEC. 53002. GOALS AND PURPOSES.
(a) In General.--Chapter 5 of title 23, United States Code,
is amended by adding after section 513 the following:
``Sec. 514. Goals and purposes
``(a) Goals.--The goals of the intelligent transportation
system program include--
``(1) enhancement of surface transportation
efficiency and facilitation of intermodalism and
international trade to enable existing facilities to
meet a significant portion of future transportation
needs, including public access to employment, goods,
and services and to reduce regulatory, financial, and
other transaction costs to public agencies and system
users;
``(2) achievement of national transportation safety
goals, including enhancement of safe operation of motor
vehicles and nonmotorized vehicles and improved
emergency response to collisions, with particular
emphasis on decreasing the number and severity of
collisions;
``(3) protection and enhancement of the natural
environment and communities affected by surface
transportation, with particular emphasis on assisting
State and local governments to achieve national
environmental goals;
``(4) accommodation of the needs of all users of
surface transportation systems, including operators of
commercial motor vehicles, passenger motor vehicles,
motorcycles, bicycles, and pedestrians (including
individuals with disabilities); and
``(5) enhancement of national defense mobility and
improvement of the ability of the United States to
respond to security-related or other manmade
emergencies and natural disasters.
``(b) Purposes.--The Secretary shall implement activities
under the intelligent transportation system program, at a
minimum--
``(1) to expedite, in both metropolitan and rural
areas, deployment and integration of intelligent
transportation systems for consumers of passenger and
freight transportation;
``(2) to ensure that Federal, State, and local
transportation officials have adequate knowledge of
intelligent transportation systems for consideration in
the transportation planning process;
``(3) to improve regional cooperation and
operations planning for effective intelligent
transportation system deployment;
``(4) to promote the innovative use of private
resources in support of intelligent transportation
system development;
``(5) to facilitate, in cooperation with the motor
vehicle industry, the introduction of vehicle-based
safety enhancing systems;
``(6) to support the application of intelligent
transportation systems that increase the safety and
efficiency of commercial motor vehicle operations;
``(7) to develop a workforce capable of developing,
operating, and maintaining intelligent transportation
systems;
``(8) to provide continuing support for operations
and maintenance of intelligent transportation systems;
and
``(9) to ensure a systems approach that includes
cooperation among vehicles, infrastructure, and
users.''.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by adding after the
item relating to section 513 the following:
``514. Goals and purposes.''.
SEC. 53003. GENERAL AUTHORITIES AND REQUIREMENTS.
(a) In General.--Chapter 5 of title 23, United States Code,
is amended by adding after section 514 (as added by section
53002) the following:
``Sec. 515. General authorities and requirements
``(a) Scope.--Subject to the provisions of this chapter,
the Secretary shall conduct an ongoing intelligent
transportation system program--
``(1) to research, develop, and operationally test
intelligent transportation systems; and
``(2) to provide technical assistance in the
nationwide application of those systems as a component
of the surface transportation systems of the United
States.
``(b) Policy.--Intelligent transportation system research
projects and operational tests funded pursuant to this chapter
shall encourage and not displace public-private partnerships or
private sector investment in those tests and projects.
``(c) Cooperation With Governmental, Private, and
Educational Entities.--The Secretary shall carry out the
intelligent transportation system program in cooperation with
State and local governments and other public entities, the
private sector firms of the United States, the Federal
laboratories, and institutions of higher education, including
historically Black colleges and universities and other minority
institutions of higher education.
``(d) Consultation With Federal Officials.--In carrying out
the intelligent transportation system program, the Secretary
shall consult with the heads of other Federal agencies, as
appropriate.
``(e) Technical Assistance, Training, and Information.--The
Secretary may provide technical assistance, training, and
information to State and local governments seeking to
implement, operate, maintain, or evaluate intelligent
transportation system technologies and services.
``(f) Transportation Planning.--The Secretary may provide
funding to support adequate consideration of transportation
systems management and operations, including intelligent
transportation systems, within metropolitan and statewide
transportation planning processes.
``(g) Information Clearinghouse.--
``(1) In general.--The Secretary shall--
``(A) maintain a repository for technical
and safety data collected as a result of
federally sponsored projects carried out under
this chapter; and
``(B) make, on request, that information
(except for proprietary information and data)
readily available to all users of the
repository at an appropriate cost.
``(2) Agreement.--
``(A) In general.--The Secretary may enter
into an agreement with a third party for the
maintenance of the repository for technical and
safety data under paragraph (1)(A).
``(B) Federal financial assistance.--If the
Secretary enters into an agreement with an
entity for the maintenance of the repository,
the entity shall be eligible for Federal
financial assistance under this section.
``(3) Availability of information.--Information in
the repository shall not be subject to sections 552 and
555 of title 5, United States Code.
``(h) Advisory Committee.--
``(1) In general.--The Secretary shall establish an
Advisory Committee to advise the Secretary on carrying
out this chapter.
``(2) Membership.--The Advisory Committee shall
have no more than 20 members, be balanced between
metropolitan and rural interests, and include, at a
minimum--
``(A) a representative from a State highway
department;
``(B) a representative from a local highway
department who is not from a metropolitan
planning organization;
``(C) a representative from a State, local,
or regional transit agency;
``(D) a representative from a metropolitan
planning organization;
``(E) a private sector user of intelligent
transportation system technologies;
``(F) an academic researcher with expertise
in computer science or another information
science field related to intelligent
transportation systems, and who is not an
expert on transportation issues;
``(G) an academic researcher who is a civil
engineer;
``(H) an academic researcher who is a
social scientist with expertise in
transportation issues;
``(I) a representative from a nonprofit
group representing the intelligent
transportation system industry;
``(J) a representative from a public
interest group concerned with safety;
``(K) a representative from a public
interest group concerned with the impact of the
transportation system on land use and
residential patterns; and
``(L) members with expertise in planning,
safety, telecommunications, utilities, and
operations.
``(3) Duties.--The Advisory Committee shall, at a
minimum, perform the following duties:
``(A) Provide input into the development of
the intelligent transportation system aspects
of the strategic plan under section 508.
``(B) Review, at least annually, areas of
intelligent transportation systems research
being considered for funding by the Department,
to determine--
``(i) whether these activities are
likely to advance either the state-of-
the-practice or state-of-the-art in
intelligent transportation systems;
``(ii) whether the intelligent
transportation system technologies are
likely to be deployed by users, and if
not, to determine the barriers to
deployment; and
``(iii) the appropriate roles for
government and the private sector in
investing in the research and
technologies being considered.
``(4) Report.--Not later than February 1 of each
year after the date of enactment of the Transportation
Research and Innovative Technology Act of 2012, the
Secretary shall submit to Congress a report that
includes--
``(A) all recommendations made by the
Advisory Committee during the preceding
calendar year;
``(B) an explanation of the manner in which
the Secretary has implemented those
recommendations; and
``(C) for recommendations not implemented,
the reasons for rejecting the recommendations.
``(5) Applicability of federal advisory committee
act.--The Advisory Committee shall be subject to the
Federal Advisory Committee Act (5 U.S.C. App.).
``(i) Reporting.--
``(1) Guidelines and requirements.--
``(A) In general.--The Secretary shall
issue guidelines and requirements for the
reporting and evaluation of operational tests
and deployment projects carried out under this
chapter.
``(B) Objectivity and independence.--The
guidelines and requirements issued under
subparagraph (A) shall include provisions to
ensure the objectivity and independence of the
reporting entity so as to avoid any real or
apparent conflict of interest or potential
influence on the outcome by parties to any such
test or deployment project or by any other
formal evaluation carried out under this
chapter.
``(C) Funding.--The guidelines and
requirements issued under subparagraph (A)
shall establish reporting funding levels based
on the size and scope of each test or project
that ensure adequate reporting of the results
of the test or project.
``(2) Special rule.--Any survey, questionnaire, or
interview that the Secretary considers necessary to
carry out the reporting of any test, deployment
project, or program assessment activity under this
chapter shall not be subject to chapter 35 of title 44,
United States Code.''.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by adding after the
item relating to section 514 (as added by section 53002) the
following:
``515. General authorities and requirements.''.
SEC. 53004. RESEARCH AND DEVELOPMENT.
(a) In General.--Chapter 5 of title 23, United States Code,
is amended by adding after section 515 (as added by section
53003) the following:
``Sec. 516. Research and development
``(a) In General.--The Secretary shall carry out a
comprehensive program of intelligent transportation system
research and development, and operational tests of intelligent
vehicles, intelligent infrastructure systems, and other similar
activities that are necessary to carry out this chapter.
``(b) Priority Areas.--Under the program, the Secretary
shall give higher priority to funding projects that--
``(1) enhance mobility and productivity through
improved traffic management, incident management,
transit management, freight management, road weather
management, toll collection, traveler information, or
highway operations systems and remote sensing products;
``(2) use interdisciplinary approaches to develop
traffic management strategies and tools to address
multiple impacts of congestion concurrently;
``(3) address traffic management, incident
management, transit management, toll collection
traveler information, or highway operations systems;
``(4) incorporate research on the potential impact
of environmental, weather, and natural conditions on
intelligent transportation systems, including the
effects of cold climates;
``(5) enhance intermodal use of intelligent
transportation systems for diverse groups, including
for emergency and health-related services;
``(6) enhance safety through improved crash
avoidance and protection, crash and other notification,
commercial motor vehicle operations, and
infrastructure-based or cooperative safety systems; or
``(7) facilitate the integration of intelligent
infrastructure, vehicle, and control technologies.
``(c) Federal Share.--The Federal share payable on account
of any project or activity carried out under subsection (a)
shall not exceed 80 percent.''.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by adding after the
item relating to section 515 (as added by section 53003) the
following:
``516. Research and development.''.
SEC. 53005. NATIONAL ARCHITECTURE AND STANDARDS.
(a) In General.--Chapter 5 of title 23, United States Code,
is amended by adding after section 516 (as added by section
53004) the following:
``Sec. 517. National architecture and standards
``(a) In General.--
``(1) Development, implementation, and
maintenance.--In accordance with section 12(d) of the
National Technology Transfer and Advancement Act of
1995 (15 U.S.C. 272 note; 110 Stat. 783; 115 Stat.
1241), the Secretary shall develop and maintain a
national ITS architecture and supporting ITS standards
and protocols to promote the use of systems engineering
methods in the widespread deployment and evaluation of
intelligent transportation systems as a component of
the surface transportation systems of the United
States.
``(2) Interoperability and efficiency.--To the
maximum extent practicable, the national ITS
architecture and supporting ITS standards and protocols
shall promote interoperability among, and efficiency
of, intelligent transportation systems and technologies
implemented throughout the United States.
``(3) Use of standards development organizations.--
In carrying out this section, the Secretary shall
support the development and maintenance of standards
and protocols using the services of such standards
development organizations as the Secretary determines
to be necessary and whose memberships are comprised of,
and represent, the surface transportation and
intelligent transportation systems industries.
``(b) Standards for National Policy Implementation.--If the
Secretary finds that a standard is necessary for implementation
of a nationwide policy relating to user fee collection or other
capability requiring nationwide uniformity, the Secretary,
after consultation with stakeholders, may establish and require
the use of that standard.
``(c) Provisional Standards.--
``(1) In general.--If the Secretary finds that the
development or balloting of an intelligent
transportation system standard jeopardizes the timely
achievement of the objectives described in subsection
(a), the Secretary may establish a provisional
standard, after consultation with affected parties,
using, to the maximum extent practicable, the work
product of appropriate standards development
organizations.
``(2) Period of effectiveness.--A provisional
standard established under paragraph (1) shall be
published in the Federal Register and remain in effect
until the appropriate standards development
organization adopts and publishes a standard.
``(d) Conformity With National Architecture.--
``(1) In general.--Except as provided in paragraph
(2), the Secretary shall ensure that intelligent
transportation system projects carried out using
amounts made available from the Highway Trust Fund,
including amounts made available to deploy intelligent
transportation systems, conform to the appropriate
regional ITS architecture, applicable standards, and
protocols developed under subsection (a) or (c).
``(2) Discretion of the secretary.--The Secretary,
at the discretion of the Secretary, may offer an
exemption from paragraph (1) for projects designed to
achieve specific research objectives outlined in the
national intelligent transportation system program plan
or the surface transportation research and development
strategic plan developed under section 508.''.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by adding after the
item relating to section 516 (as added by section 53004) the
following:
``517. National architecture and standards.''.
SEC. 53006. VEHICLE-TO-VEHICLE AND VEHICLE-TO-INFRASTRUCTURE
COMMUNICATIONS SYSTEMS DEPLOYMENT.
(a) In General.--Chapter 5 of title 23, United States Code,
is amended by adding after section 517 (as added by section
53005) the following:
``Sec. 518. Vehicle-to-vehicle and vehicle-to-infrastructure
communications systems deployment
``(a) In General.--Not later than 3 years after the date of
enactment of this section, the Secretary shall submit to the
Committees on Commerce, Science, and Transportation and
Environment and Public Works of the Senate and the Committees
on Transportation and Infrastructure, Energy and Commerce, and
Science, Space, and Technology of the House of Representatives
that--
``(1) assesses the status of dedicated short-range
communications technology and applications developed
through research and development;
``(2) analyzes the known and potential gaps in
short-range communications technology and applications;
``(3) defines a recommended implementation path for
dedicated short-range communications technology and
applications that--
``(A) is based on the assessment described
in paragraph (1); and
``(B) takes into account the analysis
described in paragraph (2);
``(4) includes guidance on the relationship of the
proposed deployment of dedicated short-range
communications to the National ITS Architecture and ITS
Standards; and
``(5) ensures competition by not preferencing the
use of any particular frequency for vehicle to
infrastructure operations.
``(b) Report Review.--The Secretary shall enter into
agreements with the National Research Council and an
independent third party with subject matter expertise for the
review of the report described in subsection (a).''.
(b) Conforming Amendment.--The analysis for chapter 5 of
title 23, United States Code, is amended by adding after
section 517 (as added by section 53005) the following:
``518. Vehicle-to-vehicle and vehicle-to-infrastructure communications
systems deployment.''.
DIVISION F--MISCELLANEOUS
TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS
Subtitle A--Secure Rural Schools and Community Self-determination
Program
SEC. 100101. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION
PROGRAM.
(a) Amendments.--The Secure Rural Schools and Community
Self-Determination Act of 2000 (16 U.S.C. 7101 et seq.) is
amended--
(1) in section 3(11)--
(A) in subparagraph (A), by striking
``and'' after the semicolon at the end;
(B) in subparagraph (B)--
(i) by striking ``fiscal year 2009
and each fiscal year thereafter'' and
inserting ``each of fiscal years 2009
through 2011''; and
(ii) by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) for fiscal year 2012 and each fiscal
year thereafter, the amount that is equal to 95
percent of the full funding amount for the
preceding fiscal year.'';
(2) in sections 101, 102, 203, 207, 208, 304, and
402, by striking ``2011'' each place it appears and
inserting ``2012'';
(3) in section 102--
(A) by striking ``2008'' each place it
appears and inserting ``2012'';
(B) in subsection (b)(2)(B), by inserting
``in 2012'' before ``, the election''; and
(C) in subsection (d)--
(i) in paragraph (1)(A), by
striking ``paragraph (3)(B)'' and
inserting ``subparagraph (D)''; and
(ii) in paragraph (3)--
(I) by striking
subparagraph (A) and inserting
the following:
``(A) Notification.--The Governor of each
eligible State shall notify the Secretary
concerned of an election by an eligible county
under this subsection not later than September
30, 2012, and each September 30 thereafter for
each succeeding fiscal year.'';
(II) by redesignating
subparagraph (B) as
subparagraph (D) and moving the
subparagraph so as to appear at
the end of paragraph (1) of
subsection (d); and
(III) by inserting after
subparagraph (A) the following:
``(B) Failure to elect.--If the Governor of
an eligible State fails to notify the Secretary
concerned of the election for an eligible
county by the date specified in subparagraph
(A)--
``(i) the eligible county shall be
considered to have elected to expend 80
percent of the funds in accordance with
paragraph (1)(A); and
``(ii) the remainder shall be
available to the Secretary concerned to
carry out projects in the eligible
county to further the purpose described
in section 202(b).'';
(4) in section 103(d)(2), by striking ``fiscal year
2011'' and inserting ``each of fiscal years 2011 and
2012'';
(5) in section 202, by adding at the end the
following:
``(c) Administrative Expenses.--A resource advisory
committee may, in accordance with section 203, propose to use
not more than 10 percent of the project funds of an eligible
county for any fiscal year for administrative expenses
associated with operating the resource advisory committee under
this title.'';
(6) in section 204(e)(3)(B)(iii), by striking ``and
2011'' and inserting ``through 2012'';
(7) in section 205(a)(4), by striking ``2006'' each
place it appears and inserting ``2011'';
(8) in section 208(b), by striking ``2012'' and
inserting ``2013'';
(9) in section 302(a)(2)(A), by inserting ``and''
after the semicolon; and
(10) in section 304(b), by striking ``2012'' and
inserting ``2013''.
(b) Failure To Make Election.--For each county that failed
to make an election for fiscal year 2011 in accordance with
section 102(d)(3)(A) of the Secure Rural Schools and Community
Self-Determination Act of 2000 (16 U.S.C. 7112(d)(3)(A)), there
shall be available to the Secretary of Agriculture to carry out
projects to further the purpose described in section 202(b) of
that Act (16 U.S.C. 7122(b)), from amounts in the Treasury not
otherwise appropriated, the amount that is equal to 15 percent
of the total share of the State payment that otherwise would
have been made to the county under that Act for fiscal year
2011.
Subtitle B--Payment in Lieu of Taxes Program
SEC. 100111. PAYMENTS IN LIEU OF TAXES.
Section 6906 of title 31, United States Code, is amended by
striking ``2012'' and inserting ``2013''.
Subtitle C--Offsets
SEC. 100121. PHASED RETIREMENT AUTHORITY.
(a) CSRS.--Chapter 83 of title 5, United States Code, is
amended--
(1) in section 8331--
(A) in paragraph (30) by striking ``and''
at the end;
(B) in paragraph (31) by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(32) `Director' means the Director of the Office
of Personnel Management.'';
(2) by inserting after section 8336 the following:
``Sec. 8336a. Phased retirement
``(a) For the purposes of this section--
``(1) the term `composite retirement annuity' means
the annuity computed when a phased retiree attains full
retirement status;
``(2) the term `full retirement status' means that
a phased retiree has ceased employment and is entitled,
upon application, to a composite retirement annuity;
``(3) the term `phased employment' means the less-
than-full-time employment of a phased retiree;
``(4) the term `phased retiree' means a retirement-
eligible employee who--
``(A) makes an election under subsection
(b); and
``(B) has not entered full retirement
status;
``(5) the term `phased retirement annuity' means
the annuity payable under this section before full
retirement;
``(6) the term `phased retirement percentage' means
the percentage which, when added to the working
percentage for a phased retiree, produces a sum of 100
percent;
``(7) the term `phased retirement period' means the
period beginning on the date on which an individual
becomes entitled to receive a phased retirement annuity
and ending on the date on which the individual dies or
separates from phased employment;
``(8) the term `phased retirement status' means
that a phased retiree is concurrently employed in
phased employment and eligible to receive a phased
retirement annuity;
``(9) the term `retirement-eligible employee'--
``(A) means an individual who, if the
individual separated from the service, would
meet the requirements for retirement under
subsection (a) or (b) of section 8336; but
``(B) does not include an employee
described in section 8335 after the date on
which the employee is required to be separated
from the service by reason of such section; and
``(10) the term `working percentage' means the
percentage of full-time employment equal to the
quotient obtained by dividing--
``(A) the number of hours per pay period to
be worked by a phased retiree, as scheduled in
accordance with subsection (b)(2); by
``(B) the number of hours per pay period to
be worked by an employee serving in a
comparable position on a full-time basis.
``(b)(1) With the concurrence of the head of the employing
agency, and under regulations promulgated by the Director, a
retirement-eligible employee who has been employed on a full-
time basis for not less than the 3-year period ending on the
date on which the retirement-eligible employee makes an
election under this subsection may elect to enter phased
retirement status.
``(2)(A) Subject to subparagraph (B), at the time of
entering phased retirement status, a phased retiree shall be
appointed to a position for which the working percentage is 50
percent.
``(B) The Director may, by regulation, provide for working
percentages different from the percentage specified under
subparagraph (A), which shall be not less than 20 percent and
not more than 80 percent.
``(C) The working percentage for a phased retiree may not
be changed during the phased retiree's phased retirement
period.
``(D)(i) Not less than 20 percent of the hours to be worked
by a phased retiree shall consist of mentoring.
``(ii) The Director may, by regulation, provide for
exceptions to the requirement under clause (i).
``(iii) Clause (i) shall not apply to a phased retiree
serving in the United States Postal Service. Nothing in this
clause shall prevent the application of clause (i) or (ii) with
respect to a phased retiree serving in the Postal Regulatory
Commission.
``(3) A phased retiree--
``(A) may not be employed in more than one position
at any time; and
``(B) may transfer to another position in the same
or a different agency, only if the transfer does not
result in a change in the working percentage.
``(4) A retirement-eligible employee may make not more than
one election under this subsection during the retirement-
eligible employee's lifetime.
``(5) A retirement-eligible employee who makes an election
under this subsection may not make an election under section
8343a.
``(c)(1) Except as otherwise provided under this
subsection, the phased retirement annuity for a phased retiree
is the product obtained by multiplying--
``(A) the amount of an annuity computed under
section 8339 that would have been payable to the phased
retiree if, on the date on which the phased retiree
enters phased retirement status, the phased retiree had
separated from service and retired under section
8336(a) or (b); by
``(B) the phased retirement percentage for the
phased retiree.
``(2) A phased retirement annuity shall be paid in addition
to the basic pay for the position to which a phased retiree is
appointed during phased employment.
``(3) A phased retirement annuity shall be adjusted in
accordance with section 8340.
``(4)(A) A phased retirement annuity shall not be subject
to reduction for any form of survivor annuity, shall not serve
as the basis of the computation of any survivor annuity, and
shall not be subject to any court order requiring a survivor
annuity to be provided to any individual.
``(B) A phased retirement annuity shall be subject to a
court order providing for division, allotment, assignment,
execution, levy, attachment, garnishment, or other legal
process on the same basis as other annuities.
``(5) Any reduction of a phased retirement annuity based on
an election under section 8334(d)(2) shall be applied to the
phased retirement annuity after computation under paragraph
(1).
``(6)(A) Any deposit, or election of an actuarial annuity
reduction in lieu of a deposit, for military service or for
creditable civilian service for which retirement deductions
were not made or refunded shall be made by a retirement-
eligible employee at or before the time the retirement-eligible
employee enters phased retirement status. No such deposit may
be made, or actuarial adjustment in lieu thereof elected, at
the time a phased retiree enters full retirement status.
``(B) Notwithstanding subparagraph (A), if a phased retiree
does not make such a deposit and dies in service as a phased
retiree, a survivor of the phased retiree shall have the same
right to make such deposit as would have been available had the
employee not entered phased retirement status and died in
service.
``(C) If a phased retiree makes an election for an
actuarial annuity reduction under section 8334(d)(2) and dies
in service as a phased retiree, the amount of any deposit upon
which such actuarial reduction shall have been based shall be
deemed to have been fully paid.
``(7) A phased retirement annuity shall commence on the
date on which a phased retiree enters phased employment.
``(8) No unused sick leave credit may be used in the
computation of the phased retirement annuity.
``(d) All basic pay not in excess of the full-time rate of
pay for the position to which a phased retiree is appointed
shall be deemed to be basic pay for purposes of section 8334.
``(e) Under such procedures as the Director may prescribe,
a phased retiree may elect to enter full retirement status at
any time. Upon making such an election, a phased retiree shall
be entitled to a composite retirement annuity.
``(f)(1) Except as provided otherwise under this
subsection, a composite retirement annuity is a single annuity
computed under regulations prescribed by the Director, equal to
the sum of--
``(A) the amount of the phased retirement annuity
as of the date of full retirement, before any reduction
based on an election under section 8334(d)(2), and
including any adjustments made under section 8340; and
``(B) the product obtained by multiplying--
``(i) the amount of an annuity computed
under section 8339 that would have been payable
at the time of full retirement if the
individual had not elected a phased retirement
and as if the individual was employed on a
full-time basis in the position occupied during
the phased retirement period and before any
reduction for survivor annuity or reduction
based on an election under section 8334(d)(2);
by
``(ii) the working percentage.
``(2) After computing a composite retirement annuity under
paragraph (1), the Director shall adjust the amount of the
annuity for any applicable reductions for a survivor annuity
and any previously elected actuarial reduction under section
8334(d)(2).
``(3) A composite retirement annuity shall be adjusted in
accordance with section 8340, except that subsection (c)(1) of
that section shall not apply.
``(4) In computing a composite retirement annuity under
paragraph (1)(B)(i), the unused sick leave to the credit of a
phased retiree at the time of entry into full retirement status
shall be adjusted by dividing the number of hours of unused
sick leave by the working percentage.
``(g)(1) Under such procedures and conditions as the
Director may provide, and with the concurrence of the head of
the employing agency, a phased retiree may elect to terminate
phased retirement status and return to a full-time work
schedule.
``(2) Upon entering a full-time work schedule based upon an
election under paragraph (1), the phased retirement annuity of
a phased retiree shall terminate.
``(3) After the termination of a phased retirement annuity
under this subsection, the individual's rights under this
subchapter shall be determined based on the law in effect at
the time of any subsequent separation from service. For
purposes of this subchapter or chapter 84, at time of the
subsequent separation from service, the phased retirement
period shall be treated as if it had been a period of part-time
employment with the work schedule described in subsection
(b)(2).
``(h) For purposes of section 8341--
``(1) the death of a phased retiree shall be deemed
to be the death in service of an employee; and
``(2) the phased retirement period shall be deemed
to have been a period of part-time employment with the
work schedule described in subsection (b)(2).
``(i) Employment of a phased retiree shall not be deemed to
be part-time career employment, as defined in section 3401(2).
``(j) A phased retiree is not eligible to apply for an
annuity under section 8337.
``(k) For purposes of section 8341(h)(4), retirement shall
be deemed to occur on the date on which a phased retiree enters
into full retirement status.
``(l) For purposes of sections 8343 and 8351, and
subchapter III of chapter 84, a phased retiree shall be deemed
to be an employee.
``(m) A phased retiree is not subject to section 8344.
``(n) For purposes of chapter 87, a phased retiree shall be
deemed to be receiving basic pay at the rate of a full-time
employee in the position to which the phased retiree is
appointed.''; and
(3) in the table of sections by inserting after the
item relating to section 8336 the following:
``8336a. Phased retirement.''.
(b) FERS.--Chapter 84 of title 5, United States Code, is
amended--
(1) by inserting after section 8412 the following
new section:
``Sec. 8412a. Phased retirement
``(a) For the purposes of this section--
``(1) the term `composite retirement annuity' means
the annuity computed when a phased retiree attains full
retirement status;
``(2) the term `full retirement status' means that
a phased retiree has ceased employment and is entitled,
upon application, to a composite retirement annuity;
``(3) the term `phased employment' means the less-
than-full-time employment of a phased retiree;
``(4) the term `phased retiree' means a retirement-
eligible employee who--
``(A) makes an election under subsection
(b); and
``(B) has not entered full retirement
status;
``(5) the term `phased retirement annuity' means
the annuity payable under this section before full
retirement;
``(6) the term `phased retirement percentage' means
the percentage which, when added to the working
percentage for a phased retiree, produces a sum of 100
percent;
``(7) the term `phased retirement period' means the
period beginning on the date on which an individual
becomes entitled to receive a phased retirement annuity
and ending on the date on which the individual dies or
separates from phased employment;
``(8) the term `phased retirement status' means
that a phased retiree is concurrently employed in
phased employment and eligible to receive a phased
retirement annuity;
``(9) the term `retirement-eligible employee'--
``(A) means an individual who, if the
individual separated from the service, would
meet the requirements for retirement under
subsection (a) or (b) of section 8412; and
``(B) does not include--
``(i) an individual who, if the
individual separated from the service,
would meet the requirements for
retirement under subsection (d) or (e)
of section 8412; but
``(ii) does not include an employee
described in section 8425 after the
date on which the employee is required
to be separated from the service by
reason of such section; and
``(10) the term `working percentage' means the
percentage of full-time employment equal to the
quotient obtained by dividing--
``(A) the number of hours per pay period to
be worked by a phased retiree, as scheduled in
accordance with subsection (b)(2); by
``(B) the number of hours per pay period to
be worked by an employee serving in a
comparable position on a full-time basis.
``(b)(1) With the concurrence of the head of the employing
agency, and under regulations promulgated by the Director, a
retirement-eligible employee who has been employed on a full-
time basis for not less than the 3-year period ending on the
date on which the retirement-eligible employee makes an
election under this subsection may elect to enter phased
retirement status.
``(2)(A) Subject to subparagraph (B), at the time of
entering phased retirement status, a phased retiree shall be
appointed to a position for which the working percentage is 50
percent.
``(B) The Director may, by regulation, provide for working
percentages different from the percentage specified under
subparagraph (A), which shall be not less than 20 percent and
not more than 80 percent.
``(C) The working percentage for a phased retiree may not
be changed during the phased retiree's phased retirement
period.
``(D)(i) Not less than 20 percent of the hours to be worked
by a phased retiree shall consist of mentoring.
``(ii) The Director may, by regulation, provide for
exceptions to the requirement under clause (i).
``(iii) Clause (i) shall not apply to a phased retiree
serving in the United States Postal Service. Nothing in this
clause shall prevent the application of clause (i) or (ii) with
respect to a phased retiree serving in the Postal Regulatory
Commission.
``(3) A phased retiree--
``(A) may not be employed in more than one position
at any time; and
``(B) may transfer to another position in the same
or a different agency, only if the transfer does not
result in a change in the working percentage.
``(4) A retirement-eligible employee may make not more than
one election under this subsection during the retirement-
eligible employee's lifetime.
``(5) A retirement-eligible employee who makes an election
under this subsection may not make an election under section
8420a.
``(c)(1) Except as otherwise provided under this
subsection, the phased retirement annuity for a phased retiree
is the product obtained by multiplying--
``(A) the amount of an annuity computed under
section 8415 that would have been payable to the phased
retiree if, on the date on which the phased retiree
enters phased retirement status, the phased retiree had
separated from service and retired under section 8412
(a) or (b); by
``(B) the phased retirement percentage for the
phased retiree.
``(2) A phased retirement annuity shall be paid in addition
to the basic pay for the position to which a phased retiree is
appointed during the phased employment.
``(3) A phased retirement annuity shall be adjusted in
accordance with section 8462.
``(4)(A) A phased retirement annuity shall not be subject
to reduction for any form of survivor annuity, shall not serve
as the basis of the computation of any survivor annuity, and
shall not be subject to any court order requiring a survivor
annuity to be provided to any individual.
``(B) A phased retirement annuity shall be subject to a
court order providing for division, allotment, assignment,
execution, levy, attachment, garnishment, or other legal
process on the same basis as other annuities.
``(5)(A) Any deposit, or election of an actuarial annuity
reduction in lieu of a deposit, for military service or for
creditable civilian service for which retirement deductions
were not made or refunded, shall be made by a retirement-
eligible employee at or before the time the retirement-eligible
employee enters phased retirement status. No such deposit may
be made, or actuarial adjustment in lieu thereof elected, at
the time a phased retiree enters full retirement status.
``(B) Notwithstanding subparagraph (A), if a phased retiree
does not make such a deposit and dies in service as a phased
retiree, a survivor of the phased retiree shall have the same
right to make such deposit as would have been available had the
employee not entered phased retirement status and died in
service.
``(6) A phased retirement annuity shall commence on the
date on which a phased retiree enters phased employment.
``(7) No unused sick leave credit may be used in the
computation of the phased retirement annuity.
``(d) All basic pay not in excess of the full-time rate of
pay for the position to which a phased retiree is appointed
shall be deemed to be basic pay for purposes of sections 8422
and 8423.
``(e) Under such procedures as the Director may prescribe,
a phased retiree may elect to enter full retirement status at
any time. Upon making such an election, a phased retiree shall
be entitled to a composite retirement annuity.
``(f)(1) Except as provided otherwise under this
subsection, a composite retirement annuity is a single annuity
computed under regulations prescribed by the Director, equal to
the sum of--
``(A) the amount of the phased retirement annuity
as of the date of full retirement, including any
adjustments made under section 8462; and
``(B) the product obtained by multiplying--
``(i) the amount of an annuity computed
under section 8412 that would have been payable
at the time of full retirement if the
individual had not elected a phased retirement
and as if the individual was employed on a
full-time basis in the position occupied during
the phased retirement period and before any
adjustment to provide for a survivor annuity;
by
``(ii) the working percentage.
``(2) After computing a composite retirement annuity under
paragraph (1), the Director shall adjust the amount of the
annuity for any applicable reductions for a survivor annuity.
``(3) A composite retirement annuity shall be adjusted in
accordance with section 8462, except that subsection (c)(1) of
that section shall not apply.
``(4) In computing a composite retirement annuity under
paragraph (1)(B)(i), the unused sick leave to the credit of a
phased retiree at the time of entry into full retirement status
shall be adjusted by dividing the number of hours of unused
sick leave by the working percentage.
``(g)(1) Under such procedures and conditions as the
Director may provide, and with the concurrence of the head of
employing agency, a phased retiree may elect to terminate
phased retirement status and return to a full-time work
schedule.
``(2) Upon entering a full-time work schedule based on an
election under paragraph (1), the phased retirement annuity of
a phased retiree shall terminate.
``(3) After termination of the phased retirement annuity
under this subsection, the individual's rights under this
chapter shall be determined based on the law in effect at the
time of any subsequent separation from service. For purposes of
this chapter, at the time of the subsequent separation from
service, the phased retirement period shall be treated as if it
had been a period of part-time employment with the work
schedule described in subsection (b)(2).
``(h) For purposes of subchapter IV--
``(1) the death of a phased retiree shall be deemed
to be the death in service of an employee;
``(2) except for purposes of section
8442(b)(1)(A)(i), the phased retirement period shall be
deemed to have been a period of part-time employment
with the work schedule described in subsection (b)(2)
of this section; and
``(3) for purposes of section 8442(b)(1)(A)(i), the
phased retiree shall be deemed to have been at the
full-time rate of pay for the position occupied.
``(i) Employment of a phased retiree shall not be deemed to
be part-time career employment, as defined in section 3401(2).
``(j) A phased retiree is not eligible to receive an
annuity supplement under section 8421.
``(k) For purposes of subchapter III, a phased retiree
shall be deemed to be an employee.
``(l) For purposes of section 8445(d), retirement shall be
deemed to occur on the date on which a phased retiree enters
into full retirement status.
``(m) A phased retiree is not eligible to apply for an
annuity under subchapter V.
``(n) A phased retiree is not subject to section 8468.
``(o) For purposes of chapter 87, a phased retiree shall be
deemed to be receiving basic pay at the rate of a full-time
employee in the position to which the phased retiree is
appointed.''; and
(2) in the table of sections by inserting after the
item relating to section 8412 the following:
``8412a. Phased retirement.''.
(c) Exemption From 10-percent Additional Tax on Early
Distributions.--Section 72(t)(2)(A) of the Internal Revenue
Code of 1986 is amended by striking ``or'' at the end of clause
(vi), by striking the period at the end of clause (vii) and
inserting ``, or'', and by adding at the end the following:
``(viii) payments under a phased
retirement annuity under section
8366a(a)(5) or 8412a(a)(5) of title 5,
United States Code, or a composite
retirement annuity under section
8366a(a)(1) or 8412a(a)(1) of such
title.''.
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the effective date of the
implementing regulations issued by the Director of the Office
of Personnel Management.
SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES.
(a) In General.--Subsection (d) of section 5702 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new flush sentence:
``Such term shall include any person who for commercial
purposes makes available for consumer use (including such
consumer's personal consumption or use under paragraph (1)) a
machine capable of making cigarettes, cigars, or other tobacco
products. A person making such a machine available for consumer
use shall be deemed the person making the removal as defined by
subsection (j) with respect to any tobacco products
manufactured by such machine. A person who sells a machine
directly to a consumer at retail for a consumer's personal home
use is not making a machine available for commercial purposes
if such machine is not used at a retail premises and is
designed to produce tobacco products only in personal use
quantities.''.
(b) Effective Date.--The amendment made by this section
shall apply to articles removed after the date of the enactment
of this Act.
SEC. 100123. CHANGE IN FMAP INCREASE FOR DISASTER RECOVERY STATES.
(a) Accelerated Date for Prior Amendments.--Section 3204(b)
of the Middle Class Tax Relief and Job Creation Act of 2012
(Public Law 112-96) is amended by striking ``October 1, 2013''
and inserting ``October 1, 2012''.
(b) Application of 50 Percent in Fiscal Year 2013.--
Subparagraph (B) of section 1905(aa)(1) of the Social Security
Act (42 U.S.C. 1396d(aa)(1)), as amended by section 3204(a) of
Public Law 112-96, is amended by striking ``25 percent'' and
inserting ``25 percent (or 50 percent in the case of fiscal
year 2013)''.
(c) Effective Date.--The amendments made by this section
shall be effective as if included in the enactment of section
3204 of Public Law 112-96.
SEC. 100124. REPEALS.
(a) Transportation Requirements for Certain Exports
Sponsored by the Secretary of Agriculture.--
(1) Repeal.--Subsections (a) and (c) of section
55314 of title 46, United States Code, are repealed.
(2) Activities described.--Subsection (b) of
section 55314 of title 46, United States Code, is
amended by striking ``This section applies to export
activity'' and inserting ``The activities specified in
this subsection are export activities''.
(b) Financing the Transportation of Agricultural
Commodities.--Subsection (a) of section 55316 of title 46,
United States Code, is repealed.
(c) Conforming Amendments.--
(1) Minimum tonnage.--Section 55315(b) of title 46,
United States Code, is amended by striking ``subject to
section 55314'' and inserting ``specified in section
55314(b)''.
(2) Issuance and purchase of obligations and
notification to congress of insufficiency.--Section
55316 of title 46, United States Code, is amended--
(A) in subsection (c)(1) by striking
``under subsections (a) and (b)'' and inserting
``under subsection (b)''; and
(B) in subsection (f) by striking
``subsections (a) and (b) and section 55314(a)
of this title'' and inserting ``subsection
(b)''.
(3) Termination of subchapter.--Section 55317 of
title 46, United States Code, is amended by striking
``sections 55314(a) and 55316(a) and (b)'' and
inserting ``section 55316(b)''.
SEC. 100125. LIMITATION ON PAYMENTS FROM THE ABANDONED MINE RECLAMATION
FUND.
Section 411(h) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1240a(h)) is amended by
adding at the end the following:
``(5) Limitation on annual payments.--
Notwithstanding any other provision of this subsection,
the total annual payment to a certified State or Indian
tribe under this subsection shall be not more than
$15,000,000.''.
TITLE II--FLOOD INSURANCE
Subtitle A--Flood Insurance Reform and Modernization
SEC. 100201. SHORT TITLE.
This subtitle may be cited as the ``Biggert-Waters Flood
Insurance Reform Act of 2012''.
SEC. 100202. DEFINITIONS.
(a) In General.--In this subtitle, the following
definitions shall apply:
(1) 100-year floodplain.--The term ``100-year
floodplain'' means that area which is subject to
inundation from a flood having a 1-percent chance of
being equaled or exceeded in any given year.
(2) 500-year floodplain.--The term ``500-year
floodplain'' means that area which is subject to
inundation from a flood having a 0.2-percent chance of
being equaled or exceeded in any given year.
(3) Administrator.--The term ``Administrator''
means the Administrator of the Federal Emergency
Management Agency.
(4) National flood insurance program.--The term
``National Flood Insurance Program'' means the program
established under the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.).
(5) Write your own.--The term ``Write Your Own''
means the cooperative undertaking between the insurance
industry and the Federal Insurance Administration which
allows participating property and casualty insurance
companies to write and service standard flood insurance
policies.
(b) Common Terminology.--Except as otherwise provided in
this subtitle, any terms used in this subtitle shall have the
meaning given to such terms under section 1370 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4121).
SEC. 100203. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.
(a) Financing.--Section 1309(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by
striking ``July 31, 2012'' and inserting ``September 30,
2017''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``July 31, 2012'' and inserting ``September 30, 2017''.
SEC. 100204. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.
Section 1305 of the National Flood Insurance Act of 1968
(42 U.S.C. 4012) is amended--
(1) in subsection (b)(2)(A), by inserting ``not
described in subsection (a) or (d)'' after
``properties''; and
(2) by adding at the end the following:
``(d) Availability of Insurance for Multifamily
Properties.--
``(1) In general.--The Administrator shall make
flood insurance available to cover residential
properties of 5 or more residences. Notwithstanding any
other provision of law, the maximum coverage amount
that the Administrator may make available under this
subsection to such residential properties shall be
equal to the coverage amount made available to
commercial properties.
``(2) Rule of construction.--Nothing in this
subsection shall be construed to limit the ability of
individuals residing in residential properties of 5 or
more residences to obtain insurance for the contents
and personal articles located in such residences.''.
SEC. 100205. REFORM OF PREMIUM RATE STRUCTURE.
(a) To Exclude Certain Properties From Receiving Subsidized
Premium Rates.--
(1) In general.--Section 1307 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014) is amended--
(A) in subsection (a)(2), by striking ``for
any residential property which is not the
primary residence of an individual; and'' and
inserting the following: ``for--
``(A) any residential property which is not
the primary residence of an individual;
``(B) any severe repetitive loss property;
``(C) any property that has incurred flood-
related damage in which the cumulative amounts
of payments under this title equaled or
exceeded the fair market value of such
property;
``(D) any business property; or
``(E) any property which on or after the
date of enactment of the Biggert-Waters Flood
Insurance Reform Act of 2012 has experienced or
sustained--
``(i) substantial damage exceeding
50 percent of the fair market value of
such property; or
``(ii) substantial improvement
exceeding 30 percent of the fair market
value of such property; and''; and
(B) by adding at the end the following:
``(g) No Extension of Subsidy to New Policies or Lapsed
Policies.--The Administrator shall not provide flood insurance
to prospective insureds at rates less than those estimated
under subsection (a)(1), as required by paragraph (2) of that
subsection, for--
``(1) any property not insured by the flood
insurance program as of the date of enactment of the
Biggert-Waters Flood Insurance Reform Act of 2012;
``(2) any property purchased after the date of
enactment of the Biggert-Waters Flood Insurance Reform
Act of 2012;
``(3) any policy under the flood insurance program
that has lapsed in coverage, as a result of the
deliberate choice of the holder of such policy; or
``(4) any prospective insured who refuses to accept
any offer for mitigation assistance by the
Administrator (including an offer to relocate),
including an offer of mitigation assistance--
``(A) following a major disaster, as
defined in section 102 of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122); or
``(B) in connection with--
``(i) a repetitive loss property;
or
``(ii) a severe repetitive loss
property.
``(h) Definition.--In this section, the term `severe
repetitive loss property' has the following meaning:
``(1) Single-family properties.--In the case of a
property consisting of 1 to 4 residences, such term
means a property that--
``(A) is covered under a contract for flood
insurance made available under this title; and
``(B) has incurred flood-related damage--
``(i) for which 4 or more separate
claims payments have been made under
flood insurance coverage under this
chapter, with the amount of each such
claim exceeding $5,000, and with the
cumulative amount of such claims
payments exceeding $20,000; or
``(ii) for which at least 2
separate claims payments have been made
under such coverage, with the
cumulative amount of such claims
exceeding the value of the property.
``(2) Multifamily properties.--In the case of a
property consisting of 5 or more residences, such term
shall have such meaning as the Director shall by
regulation provide.''.
(2) Effective date.--The amendments made by
paragraph (1) shall become effective 90 days after the
date of enactment of this Act.
(b) Estimates of Premium Rates.--Section 1307(a)(1)(B) of
the National Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)(B)) is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by adding ``and'' at the end;
and
(3) by inserting after clause (iii) the following:
``(iv) all costs, as prescribed by
principles and standards of practice in
ratemaking adopted by the American
Academy of Actuaries and the Casualty
Actuarial Society, including--
``(I) an estimate of the
expected value of future costs,
``(II) all costs associated
with the transfer of risk, and
``(III) the costs
associated with an individual
risk transfer with respect to
risk classes, as defined by the
Administrator,''.
(c) Increase in Annual Limitation on Premium Increases.--
Section 1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``or (3)''; and
(B) by inserting ``any properties'' after
``under this title for'';
(2) in paragraph (1)--
(A) by striking ``any properties within any
single'' and inserting ``within any single'';
and
(B) by striking ``10 percent'' and
inserting ``20 percent''; and
(3) by striking paragraph (2) and inserting the
following:
``(2) described in subparagraphs (A) through (E) of
section 1307(a)(2) shall be increased by 25 percent
each year, until the average risk premium rate for such
properties is equal to the average of the risk premium
rates for properties described under paragraph (1).''.
(d) Premium Payment Flexibility for New and Existing
Policyholders.--Section 1308 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015) is amended by adding at the end
the following:
``(g) Frequency of Premium Collection.--With respect to any
chargeable premium rate prescribed under this section, the
Administrator shall provide policyholders that are not required
to escrow their premiums and fees for flood insurance as set
forth under section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a) with the option of paying their premiums
either annually or in more frequent installments.''.
(e) Rule of Construction.--Nothing in this section or the
amendments made by this section may be construed to affect the
requirement under section 2(c) of the Act entitled ``An Act to
extend the National Flood Insurance Program, and for other
purposes'', approved May 31, 2012 (Public Law 112-123), that
the first increase in chargeable risk premium rates for
residential properties which are not the primary residence of
an individual take effect on July 1, 2012.
SEC. 100207. PREMIUM ADJUSTMENT.
Section 1308 of the National Flood Insurance Act of 1968
(42 U.S.C. 4015), as amended by section 100205, is further
amended by adding at the end the following:
``(h) Premium Adjustment To Reflect Current Risk of
Flood.--Notwithstanding subsection (f), upon the effective date
of any revised or updated flood insurance rate map under this
Act, the Flood Disaster Protection Act of 1973, or the Biggert-
Waters Flood Insurance Reform Act of 2012, any property located
in an area that is participating in the national flood
insurance program shall have the risk premium rate charged for
flood insurance on such property adjusted to accurately reflect
the current risk of flood to such property, subject to any
other provision of this Act. Any increase in the risk premium
rate charged for flood insurance on any property that is
covered by a flood insurance policy on the effective date of
such an update that is a result of such updating shall be
phased in over a 5-year period, at the rate of 20 percent for
each year following such effective date. In the case of any
area that was not previously designated as an area having
special flood hazards and that, pursuant to any issuance,
revision, updating, or other change in a flood insurance map,
becomes designated as such an area, the chargeable risk premium
rate for flood insurance under this title that is purchased on
or after the date of enactment of this subsection with respect
to any property that is located within such area shall be
phased in over a 5-year period, at the rate of 20 percent for
each year following the effective date of such issuance,
revision, updating, or change.''.
SEC. 100208. ENFORCEMENT.
Section 102(f)(5) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(f)(5)) is amended--
(1) in the first sentence, by striking ``$350'' and
inserting ``$2,000''; and
(2) by striking the second sentence.
SEC. 100209. ESCROW OF FLOOD INSURANCE PAYMENTS.
(a) In General.--Paragraph (1) of section 102(d) of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is
amended to read as follows:
``(1) Regulated lending institutions.--
``(A) Federal entities responsible for
lending regulations.--Each Federal entity for
lending regulation (after consultation and
coordination with the Federal Financial
Institutions Examination Council) shall, by
regulation, direct that all premiums and fees
for flood insurance under the National Flood
Insurance Act of 1968, for improved real estate
or a mobile home, shall be paid to the
regulated lending institution or servicer for
any loan secured by the improved real estate or
mobile home, with the same frequency as
payments on the loan are made, for the duration
of the loan. Except as provided in subparagraph
(C), upon receipt of any premiums or fees, the
regulated lending institution or servicer shall
deposit such premiums and fees in an escrow
account on behalf of the borrower. Upon receipt
of a notice from the Administrator or the
provider of the flood insurance that insurance
premiums are due, the premiums deposited in the
escrow account shall be paid to the provider of
the flood insurance.
``(B) Limitation.--Except as may be
required under applicable State law, a Federal
entity for lending regulation may not direct or
require a regulated lending institution to
deposit premiums or fees for flood insurance
under the National Flood Insurance Act of 1968
in an escrow account on behalf of a borrower
under subparagraph (A) or (B), if--
``(i) the regulated lending
institution has total assets of less
than $1,000,000,000; and
``(ii) on or before the date of
enactment of the Biggert-Waters Flood
Insurance Reform Act of 2012, the
regulated lending institution--
``(I) in the case of a loan
secured by residential improved
real estate or a mobile home,
was not required under Federal
or State law to deposit taxes,
insurance premiums, fees, or
any other charges in an escrow
account for the entire term of
the loan; and
``(II) did not have a
policy of consistently and
uniformly requiring the deposit
of taxes, insurance premiums,
fees, or any other charges in
an escrow account for loans
secured by residential improved
real estate or a mobile
home.''.
(b) Applicability.--The amendment made by subsection (a)
shall apply to any mortgage outstanding or entered into on or
after the expiration of the 2-year period beginning on the date
of enactment of this Act.
SEC. 100210. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL FLOOD
INSURANCE PROGRAM.
Section 1312 of the National Flood Insurance Act of 1968
(42 U.S.C. 4019) is amended--
(1) by striking ``The Director is'' and inserting
the following:
``(a) In General.--The Administrator is''; and
(2) by adding at the end the following:
``(b) Minimum Annual Deductible.--
``(1) Pre-firm properties.--For any structure which
is covered by flood insurance under this title, and on
which construction or substantial improvement occurred
on or before December 31, 1974, or before the effective
date of an initial flood insurance rate map published
by the Administrator under section 1360 for the area in
which such structure is located, the minimum annual
deductible for damage to such structure shall be--
``(A) $1,500, if the flood insurance
coverage for such structure covers loss of, or
physical damage to, such structure in an amount
equal to or less than $100,000; and
``(B) $2,000, if the flood insurance
coverage for such structure covers loss of, or
physical damage to, such structure in an amount
greater than $100,000.
``(2) Post-firm properties.--For any structure
which is covered by flood insurance under this title,
and on which construction or substantial improvement
occurred after December 31, 1974, or after the
effective date of an initial flood insurance rate map
published by the Administrator under section 1360 for
the area in which such structure is located, the
minimum annual deductible for damage to such structure
shall be--
``(A) $1,000, if the flood insurance
coverage for such structure covers loss of, or
physical damage to, such structure in an amount
equal to or less than $100,000; and
``(B) $1,250, if the flood insurance
coverage for such structure covers loss of, or
physical damage to, such structure in an amount
greater than $100,000.''.
SEC. 100211. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM RATES.
Section 1308 of the National Flood Insurance Act of 1968
(42 U.S.C. 4015), as amended by this Act, is amended--
(1) in subsection (a), by striking ``, after
consultation with'' and all that follows through ``by
regulation'' and inserting ``prescribe, after providing
notice'';
(2) in subsection (b)--
(A) in paragraph (1), by striking the
period at the end and inserting a semicolon;
(B) in paragraph (2), by striking the comma
at the end and inserting a semicolon;
(C) in paragraph (3), by striking ``, and''
and inserting a semicolon;
(D) in paragraph (4), by striking the
period at the end and inserting ``; and''; and
(E) by adding at the end the following:
``(5) adequate, on the basis of accepted actuarial
principles, to cover the average historical loss year
obligations incurred by the National Flood Insurance
Fund.''; and
(3) by adding at the end the following:
``(i) Rule of Construction.--For purposes of this section,
the calculation of an `average historical loss year'--
``(1) includes catastrophic loss years; and
``(2) shall be computed in accordance with
generally accepted actuarial principles.''.
SEC. 100212. RESERVE FUND.
Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) is amended by inserting after section 1310
(42 U.S.C. 4017) the following:
``SEC. 1310A. RESERVE FUND.
``(a) Establishment of Reserve Fund.--In carrying out the
flood insurance program authorized by this chapter, the
Administrator shall establish in the Treasury of the United
States a National Flood Insurance Reserve Fund (in this section
referred to as the `Reserve Fund') which shall--
``(1) be an account separate from any other
accounts or funds available to the Administrator; and
``(2) be available for meeting the expected future
obligations of the flood insurance program, including--
``(A) the payment of claims;
``(B) claims adjustment expenses; and
``(C) the repayment of amounts outstanding
under any note or other obligation issued by
the Administrator under section 1309(a).
``(b) Reserve Ratio.--Subject to the phase-in requirements
under subsection (d), the Reserve Fund shall maintain a balance
equal to--
``(1) 1 percent of the sum of the total potential
loss exposure of all outstanding flood insurance
policies in force in the prior fiscal year; or
``(2) such higher percentage as the Administrator
determines to be appropriate, taking into consideration
any circumstance that may raise a significant risk of
substantial future losses to the Reserve Fund.
``(c) Maintenance of Reserve Ratio.--
``(1) In general.--The Administrator shall have the
authority to establish, increase, or decrease the
amount of aggregate annual insurance premiums to be
collected for any fiscal year necessary--
``(A) to maintain the reserve ratio
required under subsection (b); and
``(B) to achieve such reserve ratio, if the
actual balance of such reserve is below the
amount required under subsection (b).
``(2) Considerations.--In exercising the authority
granted under paragraph (1), the Administrator shall
consider--
``(A) the expected operating expenses of
the Reserve Fund;
``(B) the insurance loss expenditures under
the flood insurance program;
``(C) any investment income generated under
the flood insurance program; and
``(D) any other factor that the
Administrator determines appropriate.
``(3) Limitations.--
``(A) Rates.--In exercising the authority
granted under paragraph (1), the Administrator
shall be subject to all other provisions of
this Act, including any provisions relating to
chargeable premium rates or annual increases of
such rates.
``(B) Use of additional annual insurance
premiums.--Notwithstanding any other provision
of law or any agreement entered into by the
Administrator, the Administrator shall ensure
that all amounts attributable to the
establishment or increase of annual insurance
premiums under paragraph (1) are transferred to
the Administrator for deposit into the Reserve
Fund, to be available for meeting the expected
future obligations of the flood insurance
program as described in subsection (a)(2).
``(d) Phase-in Requirements.--The phase-in requirements
under this subsection are as follows:
``(1) In general.--Beginning in fiscal year 2013
and not ending until the fiscal year in which the ratio
required under subsection (b) is achieved, in each such
fiscal year the Administrator shall place in the
Reserve Fund an amount equal to not less than 7.5
percent of the reserve ratio required under subsection
(b).
``(2) Amount satisfied.--As soon as the ratio
required under subsection (b) is achieved, and except
as provided in paragraph (3), the Administrator shall
not be required to set aside any amounts for the
Reserve Fund.
``(3) Exception.--If at any time after the ratio
required under subsection (b) is achieved, the Reserve
Fund falls below the required ratio under subsection
(b), the Administrator shall place in the Reserve Fund
for that fiscal year an amount equal to not less than
7.5 percent of the reserve ratio required under
subsection (b).
``(e) Limitation on Reserve Ratio.--In any given fiscal
year, if the Administrator determines that the reserve ratio
required under subsection (b) cannot be achieved, the
Administrator shall submit a report to Congress that--
``(1) describes and details the specific concerns
of the Administrator regarding the consequences of the
reserve ratio not being achieved;
``(2) demonstrates how such consequences would harm
the long-term financial soundness of the flood
insurance program; and
``(3) indicates the maximum attainable reserve
ratio for that particular fiscal year.
``(f) Investment.--The Secretary of the Treasury shall
invest such amounts of the Reserve Fund as the Secretary
determines advisable in obligations issued or guaranteed by the
United States.''.
SEC. 100213. REPAYMENT PLAN FOR BORROWING AUTHORITY.
(a) Repayment Plan Required.--Section 1309 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4016) is amended by
adding at the end the following:
``(c) Upon the exercise of the authority established under
subsection (a), the Administrator shall transmit a schedule for
repayment of such amounts to--
``(1) the Secretary of the Treasury;
``(2) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
``(3) the Committee on Financial Services of the
House of Representatives.
``(d) In connection with any funds borrowed by the
Administrator under the authority established in subsection
(a), the Administrator, beginning 6 months after the date on
which such funds are borrowed, and continuing every 6 months
thereafter until such borrowed funds are fully repaid, shall
submit a report on the progress of such repayment to--
``(1) the Secretary of the Treasury;
``(2) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
``(3) the Committee on Financial Services of the
House of Representatives.''.
(b) Report.--Not later than the expiration of the 6-month
period beginning on the date of enactment of this Act, the
Administrator shall submit a report to the Congress setting
forth options for repaying within 10 years all amounts,
including any amounts previously borrowed but not yet repaid,
owed pursuant to clause (2) of subsection (a) of section 1309
of the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a)(2)).
SEC. 100214. PAYMENT OF CONDOMINIUM CLAIMS.
Section 1312 of the National Flood Insurance Act of 1968
(42 U.S.C. 4019), as amended by section 100210, is amended by
adding at the end the following:
``(c) Payment of Claims to Condominium Owners.--The
Administrator may not deny payment for any damage to or loss of
property which is covered by flood insurance to condominium
owners who purchased such flood insurance separate and apart
from the flood insurance purchased by the condominium
association in which such owner is a member, based solely, or
in any part, on the flood insurance coverage of the condominium
association or others on the overall property owned by the
condominium association.''.
SEC. 100215. TECHNICAL MAPPING ADVISORY COUNCIL.
(a) Establishment.--There is established a council to be
known as the Technical Mapping Advisory Council (in this
section referred to as the ``Council'').
(b) Membership.--
(1) In general.--The Council shall consist of--
(A) the Administrator (or the designee
thereof);
(B) the Secretary of the Interior (or the
designee thereof);
(C) the Secretary of Agriculture (or the
designee thereof);
(D) the Under Secretary of Commerce for
Oceans and Atmosphere (or the designee
thereof); and
(E) 16 additional members appointed by the
Administrator or the designee of the
Administrator, who shall be--
(i) a member of a recognized
professional surveying association or
organization;
(ii) a member of a recognized
professional mapping association or
organization;
(iii) a member of a recognized
professional engineering association or
organization;
(iv) a member of a recognized
professional association or
organization representing flood hazard
determination firms;
(v) a representative of the United
States Geological Survey;
(vi) a representative of a
recognized professional association or
organization representing State
geographic information;
(vii) a representative of State
national flood insurance coordination
offices;
(viii) a representative of the
Corps of Engineers;
(ix) a member of a recognized
regional flood and storm water
management organization;
(x) 2 representatives of different
State government agencies that have
entered into cooperating technical
partnerships with the Administrator and
have demonstrated the capability to
produce flood insurance rate maps;
(xi) 2 representatives of different
local government agencies that have
entered into cooperating technical
partnerships with the Administrator and
have demonstrated the capability to
produce flood insurance maps;
(xii) a member of a recognized
floodplain management association or
organization;
(xiii) a member of a recognized
risk management association or
organization; and
(xiv) a State mitigation officer.
(2) Qualifications.--Members of the Council shall
be appointed based on their demonstrated knowledge and
competence regarding surveying, cartography, remote
sensing, geographic information systems, or the
technical aspects of preparing and using flood
insurance rate maps. In appointing members under
paragraph (1)(E), the Administrator shall, to the
maximum extent practicable, ensure that the membership
of the Council has a balance of Federal, State, local,
tribal, and private members, and includes geographic
diversity, including representation from areas with
coastline on the Gulf of Mexico and other States
containing areas identified by the Administrator as at
high risk for flooding or as areas having special flood
hazards.
(c) Duties.--The Council shall--
(1) recommend to the Administrator how to improve
in a cost-effective manner the--
(A) accuracy, general quality, ease of use,
and distribution and dissemination of flood
insurance rate maps and risk data; and
(B) performance metrics and milestones
required to effectively and efficiently map
flood risk areas in the United States;
(2) recommend to the Administrator mapping
standards and guidelines for--
(A) flood insurance rate maps; and
(B) data accuracy, data quality, data
currency, and data eligibility;
(3) recommend to the Administrator how to maintain,
on an ongoing basis, flood insurance rate maps and
flood risk identification;
(4) recommend procedures for delegating mapping
activities to State and local mapping partners;
(5) recommend to the Administrator and other
Federal agencies participating in the Council--
(A) methods for improving interagency and
intergovernmental coordination on flood mapping
and flood risk determination; and
(B) a funding strategy to leverage and
coordinate budgets and expenditures across
Federal agencies; and
(6) submit an annual report to the Administrator
that contains--
(A) a description of the activities of the
Council;
(B) an evaluation of the status and
performance of flood insurance rate maps and
mapping activities to revise and update flood
insurance rate maps, as required under section
100216; and
(C) a summary of recommendations made by
the Council to the Administrator.
(d) Future Conditions Risk Assessment and Modeling
Report.--
(1) In general.--The Council shall consult with
scientists and technical experts, other Federal
agencies, States, and local communities to--
(A) develop recommendations on how to--
(i) ensure that flood insurance
rate maps incorporate the best
available climate science to assess
flood risks; and
(ii) ensure that the Federal
Emergency Management Agency uses the
best available methodology to consider
the impact of--
(I) the rise in the sea
level; and
(II) future development on
flood risk; and
(B) not later than 1 year after the date of
enactment of this Act, prepare written
recommendations in a future conditions risk
assessment and modeling report and to submit
such recommendations to the Administrator.
(2) Responsibility of the administrator.--The
Administrator, as part of the ongoing program to review
and update National Flood Insurance Program rate maps
under section 100216, shall incorporate any future risk
assessment submitted under paragraph (1)(B) in any such
revision or update.
(e) Chairperson.--The members of the Council shall elect 1
member to serve as the chairperson of the Council (in this
section referred to as the ``Chairperson'').
(f) Coordination.--To ensure that the Council's
recommendations are consistent, to the maximum extent
practicable, with national digital spatial data collection and
management standards, the Chairperson shall consult with the
Chairperson of the Federal Geographic Data Committee
(established pursuant to Office of Management and Budget
Circular A-16).
(g) Compensation.--Members of the Council shall receive no
additional compensation by reason of their service on the
Council.
(h) Meetings and Actions.--
(1) In general.--The Council shall meet not less
frequently than twice each year at the request of the
Chairperson or a majority of its members, and may take
action by a vote of the majority of the members.
(2) Initial meeting.--The Administrator, or a
person designated by the Administrator, shall request
and coordinate the initial meeting of the Council.
(i) Officers.--The Chairperson may appoint officers to
assist in carrying out the duties of the Council under
subsection (c).
(j) Staff.--
(1) Staff of fema.--Upon the request of the
Chairperson, the Administrator may detail, on a
nonreimbursable basis, personnel of the Federal
Emergency Management Agency to assist the Council in
carrying out its duties.
(2) Staff of other federal agencies.--Upon request
of the Chairperson, any other Federal agency that is a
member of the Council may detail, on a nonreimbursable
basis, personnel to assist the Council in carrying out
its duties.
(k) Powers.--In carrying out this section, the Council may
hold hearings, receive evidence and assistance, provide
information, and conduct research, as it considers appropriate.
(l) Report to Congress.--The Administrator, on an annual
basis, shall report to the Committee on Banking, Housing, and
Urban Affairs of the Senate, the Committee on Financial
Services of the House of Representatives, and the Office of
Management and Budget on the--
(1) recommendations made by the Council;
(2) actions taken by the Federal Emergency
Management Agency to address such recommendations to
improve flood insurance rate maps and flood risk data;
and
(3) any recommendations made by the Council that
have been deferred or not acted upon, together with an
explanatory statement.
SEC. 100216. NATIONAL FLOOD MAPPING PROGRAM.
(a) Reviewing, Updating, and Maintaining Maps.--The
Administrator, in coordination with the Technical Mapping
Advisory Council established under section 100215, shall
establish an ongoing program under which the Administrator
shall review, update, and maintain National Flood Insurance
Program rate maps in accordance with this section.
(b) Mapping.--
(1) In general.--In carrying out the program
established under subsection (a), the Administrator
shall--
(A) identify, review, update, maintain, and
publish National Flood Insurance Program rate
maps with respect to--
(i) all populated areas and areas
of possible population growth located
within the 100-year floodplain;
(ii) all populated areas and areas
of possible population growth located
within the 500-year floodplain;
(iii) areas of residual risk,
including areas that are protected by
levees, dams, and other flood control
structures;
(iv) areas that could be inundated
as a result of the failure of a levee,
dam, or other flood control structure;
and
(v) the level of protection
provided by flood control structures;
(B) establish or update flood-risk zone
data in all such areas, and make estimates with
respect to the rates of probable flood caused
loss for the various flood risk zones for each
such area; and
(C) use, in identifying, reviewing,
updating, maintaining, or publishing any
National Flood Insurance Program rate map
required under this section or under the
National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.), the most accurate topography and
elevation data available.
(2) Mapping elements.--Each map updated under this
section shall--
(A) assess the accuracy of current ground
elevation data used for hydrologic and
hydraulic modeling of flooding sources and
mapping of the flood hazard and wherever
necessary acquire new ground elevation data
utilizing the most up-to-date geospatial
technologies in accordance with guidelines and
specifications of the Federal Emergency
Management Agency; and
(B) develop National Flood Insurance
Program flood data on a watershed basis--
(i) to provide the most technically
effective and efficient studies and
hydrologic and hydraulic modeling; and
(ii) to eliminate, to the maximum
extent possible, discrepancies in base
flood elevations between adjacent
political subdivisions.
(3) Other inclusions.--In updating maps under this
section, the Administrator shall include--
(A) any relevant information on coastal
inundation from--
(i) an applicable inundation map of
the Corps of Engineers; and
(ii) data of the National Oceanic
and Atmospheric Administration relating
to storm surge modeling;
(B) any relevant information of the United
States Geological Survey on stream flows,
watershed characteristics, and topography that
is useful in the identification of flood hazard
areas, as determined by the Administrator;
(C) any relevant information on land
subsidence, coastal erosion areas, changing
lake levels, and other flood-related hazards;
(D) any relevant information or data of the
National Oceanic and Atmospheric Administration
and the United States Geological Survey
relating to the best available science
regarding future changes in sea levels,
precipitation, and intensity of hurricanes; and
(E) any other relevant information as may
be recommended by the Technical Mapping
Advisory Committee.
(c) Standards.--In updating and maintaining maps under this
section, the Administrator shall--
(1) establish standards to--
(A) ensure that maps are adequate for--
(i) flood risk determinations; and
(ii) use by State and local
governments in managing development to
reduce the risk of flooding; and
(B) facilitate identification and use of
consistent methods of data collection and
analysis by the Administrator, in conjunction
with State and local governments, in developing
maps for communities with similar flood risks,
as determined by the Administrator; and
(2) publish maps in a format that is--
(A) digital geospatial data compliant;
(B) compliant with the open publishing and
data exchange standards established by the Open
Geospatial Consortium; and
(C) aligned with official data defined by
the National Geodetic Survey.
(d) Communication and Outreach.--
(1) In general.--The Administrator shall--
(A) work to enhance communication and
outreach to States, local communities, and
property owners about the effects--
(i) of any potential changes to
National Flood Insurance Program rate
maps that may result from the mapping
program required under this section;
and
(ii) that any such changes may have
on flood insurance purchase
requirements;
(B) engage with local communities to
enhance communication and outreach to the
residents of such communities, including
tenants (with regard to contents insurance), on
the matters described under subparagraph (A);
and
(C) upon the issuance of any proposed map
and any notice of an opportunity to make an
appeal relating to the proposed map, notify the
Senators for each State affected and each
Member of the House of Representatives for each
congressional district affected by the proposed
map of any action taken by the Administrator
with respect to the proposed map or an appeal
relating to the proposed map.
(2) Required activities.--The communication and
outreach activities required under paragraph (1) shall
include--
(A) notifying property owners when their
properties become included in, or when they are
excluded from, an area covered by the mandatory
flood insurance purchase requirement under
section 102 of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a);
(B) educating property owners regarding the
flood risk and reduction of this risk in their
community, including the continued flood risks
to areas that are no longer subject to the
flood insurance mandatory purchase requirement;
(C) educating property owners regarding the
benefits and costs of maintaining or acquiring
flood insurance, including, where applicable,
lower-cost preferred risk policies under the
National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) for such properties and the
contents of such properties;
(D) educating property owners about flood
map revisions and the process available to such
owners to appeal proposed changes in flood
elevations through their community, including
by notifying local radio and television
stations; and
(E) encouraging property owners to maintain
or acquire flood insurance coverage.
(e) Community Remapping Request.--Upon the adoption by the
Administrator of any recommendation by the Technical Mapping
Advisory Council for reviewing, updating, or maintaining
National Flood Insurance Program rate maps in accordance with
this section, a community that believes that its flood
insurance rates in effect prior to adoption would be affected
by the adoption of such recommendation may submit a request for
an update of its rate maps, which may be considered at the
Administrator's sole discretion. The Administrator shall
establish a protocol for the evaluation of such community map
update requests.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to the Administrator to carry out this
section $400,000,000 for each of fiscal years 2013 through
2017.
SEC. 100217. SCOPE OF APPEALS.
Section 1363 of the National Flood Insurance Act of 1968
(42 U.S.C. 4104) is amended--
(1) in subsection (a)--
(A) by inserting ``and designating areas
having special flood hazards'' after ``flood
elevations''; and
(B) by striking ``such determinations'' and
inserting ``such determinations and
designations''; and
(2) in subsection (b)--
(A) in the first sentence, by inserting
``and designations of areas having special
flood hazards'' after ``flood elevation
determinations''; and
(B) by amending the third sentence to read
as follows: ``The sole grounds for appeal shall
be the possession of knowledge or information
indicating that (1) the elevations being
proposed by the Administrator with respect to
an identified area having special flood hazards
are scientifically or technically incorrect, or
(2) the designation of an identified special
flood hazard area is scientifically or
technically incorrect.''.
SEC. 100218. SCIENTIFIC RESOLUTION PANEL.
(a) Establishment.--Chapter III of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amended by
inserting after section 1363 (42 U.S.C. 4104) the following:
``SEC. 1363A. SCIENTIFIC RESOLUTION PANEL.
``(a) Availability.--
``(1) In general.--Pursuant to the authority
provided under section 1363(e), the Administrator shall
make available an independent review panel, to be known
as the Scientific Resolution Panel, to any community--
``(A) that has--
``(i) filed a timely map appeal in
accordance with section 1363;
``(ii) completed 60 days of
consultation with the Federal Emergency
Management Agency on the appeal; and
``(iii) not allowed more than 120
days, or such longer period as may be
provided by the Administrator by
waiver, to pass since the end of the
appeal period; or
``(B) that has received an unsatisfactory
ruling under the map revision process
established pursuant to section 1360(f).
``(2) Appeals by owners and lessees.--If a
community and an owner or lessee of real property
within the community appeal a proposed determination of
a flood elevation under section 1363(b), upon the
request of the community--
``(A) the owner or lessee shall submit
scientific and technical data relating to the
appeals to the Scientific Resolution Panel; and
``(B) the Scientific Resolution Panel shall
make a determination with respect to the
appeals in accordance with subsection (c).
``(3) Definition.--For purposes of paragraph
(1)(B), an `unsatisfactory ruling' means that a
community--
``(A) received a revised Flood Insurance
Rate Map from the Federal Emergency Management
Agency, via a Letter of Final Determination,
after September 30, 2008, and prior to the date
of enactment of this section;
``(B) has subsequently applied for a Letter
of Map Revision or Physical Map Revision with
the Federal Emergency Management Agency; and
``(C) has received an unfavorable ruling on
their request for a map revision.
``(b) Membership.--The Scientific Resolution Panel made
available under subsection (a) shall consist of 5 members with
expertise that relates to the creation and study of flood
hazard maps and flood insurance. The Scientific Resolution
Panel may include representatives from Federal agencies not
involved in the mapping study in question and from other
impartial experts. Employees of the Federal Emergency
Management Agency may not serve on the Scientific Resolution
Panel.
``(c) Determination.--
``(1) In general.--Following deliberations, and not
later than 90 days after its formation, the Scientific
Resolution Panel shall issue a determination of
resolution of the dispute. Such determination shall set
forth recommendations for the base flood elevation
determination or the designation of an area having
special flood hazards that shall be reflected in the
Flood Insurance Rate Maps.
``(2) Basis.--The determination of the Scientific
Resolution Panel shall be based on--
``(A) data previously provided to the
Administrator by the community, and, in the
case of a dispute submitted under subsection
(a)(2), an owner or lessee of real property in
the community; and
``(B) data provided by the Administrator.
``(3) No alternative determinations permissible.--
The Scientific Resolution Panel--
``(A) shall provide a determination of
resolution of a dispute that--
``(i) is either in favor of the
Administrator or in favor of the
community on each distinct element of
the dispute; or
``(ii) in the case of a dispute
submitted under subsection (a)(2), is
in favor of the Administrator, in favor
of the community, or in favor of the
owner or lessee of real property in the
community on each distinct element of
the dispute; and
``(B) may not offer as a resolution any
other alternative determination.
``(4) Effect of determination.--
``(A) Binding.--The recommendations of the
Scientific Resolution Panel shall be binding on
all appellants and not subject to further
judicial review unless the Administrator
determines that implementing the determination
of the panel would--
``(i) pose a significant threat due
to failure to identify a substantial
risk of special flood hazards; or
``(ii) violate applicable law.
``(B) Written justification not to
enforce.--If the Administrator elects not to
implement the determination of the Scientific
Resolution Panel pursuant to subparagraph (A),
then not later than 60 days after the issuance
of the determination, the Administrator shall
issue a written justification explaining such
election.
``(C) Appeal of determination not to
enforce.--If the Administrator elects not to
implement the determination of the Scientific
Resolution Panel pursuant to subparagraph (A),
the community may appeal the determination of
the Administrator as provided for under section
1363(g).
``(d) Maps Used for Insurance and Mandatory Purchase
Requirements.--With respect to any community that has a dispute
that is being considered by the Scientific Resolution Panel
formed pursuant to this subsection, the Federal Emergency
Management Agency shall ensure that for each such community
that--
``(1) the Flood Insurance Rate Map described in the
most recently issued Letter of Final Determination
shall be in force and effect with respect to such
community; and
``(2) flood insurance shall continue to be made
available to the property owners and residents of the
participating community.''.
(b) Conforming Amendments.--
(1) Administrative review.--Section 1363(e) of the
National Flood Insurance Act of 1968 (42 U.S.C.
4104(e)) is amended, in the second sentence, by
striking ``an independent scientific body or
appropriate Federal agency for advice'' and inserting
``the Scientific Resolution Panel provided for in
section 1363A''.
(2) Judicial review.--The first sentence of section
1363(g) of the National Flood Insurance Act of 1968 (42
U.S.C. 4104(g)) is amended by striking ``Any
appellant'' and inserting ``Except as provided in
section 1363A, any appellant''.
SEC. 100219. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR UPDATING
FLOOD MAPS.
Section 1360(f)(2) of the National Flood Insurance Act of
1968 (42 U.S.C. 4101(f)(2)) is amended by striking ``, but
which may not exceed 50 percent of the cost of carrying out the
requested revision or update''.
SEC. 100220. COORDINATION.
(a) Interagency Budget Crosscut and Coordination Report.--
(1) In general.--The Secretary of Homeland
Security, the Administrator, the Director of the Office
of Management and Budget, and the heads of each Federal
department or agency carrying out activities under
sections 100215 and 100216 shall work together to
ensure that flood risk determination data and
geospatial data are shared among Federal agencies in
order to coordinate the efforts of the Nation to reduce
its vulnerability to flooding hazards.
(2) Report.--Not later than 30 days after the
submission of the budget of the United States
Government by the President to Congress, the Director
of the Office of Management and Budget, in coordination
with the Federal Emergency Management Agency, the
United States Geological Survey, the National Oceanic
and Atmospheric Administration, the Corps of Engineers,
and other Federal agencies, as appropriate, shall
submit to the appropriate authorizing and appropriating
committees of the Senate and the House of
Representatives an interagency budget crosscut and
coordination report, certified by the Secretary or head
of each such agency, that--
(A) contains an interagency budget crosscut
report that displays relevant sections of the
budget proposed for each of the Federal
agencies working on flood risk determination
data and digital elevation models, including
any planned interagency or intra-agency
transfers; and
(B) describes how the efforts aligned with
such sections complement one another.
(b) Duties of the Administrator.--In carrying out sections
100215 and 100216, the Administrator shall--
(1) participate, pursuant to section 216 of the E-
Government Act of 2002 (44 U.S.C. 3501 note), in the
establishment of such standards and common protocols as
are necessary to assure the interoperability of
geospatial data for all users of such information;
(2) coordinate with, seek assistance and
cooperation of, and provide a liaison to the Federal
Geographic Data Committee pursuant to the Office of
Management and Budget Circular A-16 and Executive Order
12906 (43 U.S.C. 1457 note; relating to the National
Spatial Data Infrastructure) for the implementation of
and compliance with such standards;
(3) integrate with, leverage, and coordinate
funding of, to the maximum extent practicable, the
current flood mapping activities of each unit of State
and local government;
(4) integrate with, leverage, and coordinate, to
the maximum extent practicable, the current geospatial
activities of other Federal agencies and units of State
and local government; and
(5) develop a funding strategy to leverage and
coordinate budgets and expenditures, and to maintain or
establish joint funding and other agreement mechanisms
with other Federal agencies and units of State and
local government to share in the collection and
utilization of geospatial data among all governmental
users.
SEC. 100221. INTERAGENCY COORDINATION STUDY.
(a) In General.--The Administrator shall enter into a
contract with the National Academy of Public Administration to
conduct a study on how the Federal Emergency Management
Agency--
(1) should improve interagency and
intergovernmental coordination on flood mapping,
including a funding strategy to leverage and coordinate
budgets and expenditures; and
(2) can establish joint funding mechanisms with
other Federal agencies and units of State and local
government to share the collection and utilization of
data among all governmental users.
(b) Timing.--A contract entered into under subsection (a)
shall require that, not later than 180 days after the date of
enactment of this subtitle, the National Academy of Public
Administration shall report the findings of the study required
under subsection (a) to--
(1) the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(2) the Committee on Financial Services of the
House of Representatives;
(3) the Committee on Appropriations of the Senate;
and
(4) the Committee on Appropriations of the House of
Representatives.
SEC. 100222. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.
Section 5(b) of the Real Estate Settlement Procedures Act
of 1974 (12 U.S.C. 2604(b)), as amended by section 1450 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act
(Public Law 111-203; 124 Stat. 2174), is amended by adding at
the end the following:
``(14) An explanation of flood insurance and the
availability of flood insurance under the National
Flood Insurance Program or from a private insurance
company, whether or not the real estate is located in
an area having special flood hazards.''.
SEC. 100223. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION PROGRAMS.
Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) is amended by inserting after section 1313
(42 U.S.C. 4020) the following:
``SEC. 1314. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION PROGRAMS.
``(a) Requirement To Participate.--In the case of the
occurrence of a major disaster, as defined in section 102 of
the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122), that may have resulted in flood damage
covered under the national flood insurance program established
under this title and other personal lines residential property
insurance coverage offered by a State regulated insurer, upon a
request made by the insurance commissioner of a State (or such
other official responsible for regulating the business of
insurance in the State) for the participation of
representatives of the Administrator in a program sponsored by
such State for nonbinding mediation of insurance claims
resulting from a major disaster, the Administrator shall cause
representatives of the national flood insurance program to
participate in such a State program where claims under the
national flood insurance program are involved to expedite
settlement of flood damage claims resulting from such disaster.
``(b) Extent of Participation.--In satisfying the
requirements of subsection (a), the Administrator shall require
that each representative of the Administrator--
``(1) be certified for purposes of the national
flood insurance program to settle claims against such
program resulting from such disaster in amounts up to
the limits of policies under such program;
``(2) attend State-sponsored mediation meetings
regarding flood insurance claims resulting from such
disaster at such times and places as may be arranged by
the State;
``(3) participate in good-faith negotiations toward
the settlement of such claims with policyholders of
coverage made available under the national flood
insurance program; and
``(4) finalize the settlement of such claims on
behalf of the national flood insurance program with
such policyholders.
``(c) Coordination.--Representatives of the Administrator
shall at all times coordinate their activities with insurance
officials of the State and representatives of insurers for the
purposes of consolidating and expediting settlement of claims
under the national flood insurance program resulting from such
disaster.
``(d) Qualifications of Mediators.--Each State mediator
participating in State-sponsored mediation under this section
shall be--
``(1)(A) a member in good standing of the State bar
in the State in which the mediation is to occur with at
least 2 years of practical experience; and
``(B) an active member of such bar for at least 1
year prior to the year in which such mediator's
participation is sought; or
``(2) a retired trial judge from any United States
jurisdiction who was a member in good standing of the
bar in the State in which the judge presided for at
least 5 years prior to the year in which such
mediator's participation is sought.
``(e) Mediation Proceedings and Documents Privileged.--As a
condition of participation, all statements made and documents
produced pursuant to State-sponsored mediation involving
representatives of the Administrator shall be deemed privileged
and confidential settlement negotiations made in anticipation
of litigation.
``(f) Liability, Rights, or Obligations Not Affected.--
Participation in State-sponsored mediation, as described in
this section does not--
``(1) affect or expand the liability of any party
in contract or in tort; or
``(2) affect the rights or obligations of the
parties, as established--
``(A) in any regulation issued by the
Administrator, including any regulation
relating to a standard flood insurance policy;
``(B) under this title; and
``(C) under any other provision of Federal
law.
``(g) Exclusive Federal Jurisdiction.--Participation in
State-sponsored mediation shall not alter, change, or modify
the original exclusive jurisdiction of United States courts, as
set forth in this title.
``(h) Cost Limitation.--Nothing in this section shall be
construed to require the Administrator or a representative of
the Administrator to pay additional mediation fees relating to
flood insurance claims associated with a State-sponsored
mediation program in which such representative of the
Administrator participates.
``(i) Exception.--In the case of the occurrence of a major
disaster that results in flood damage claims under the national
flood insurance program and that does not result in any loss
covered by a personal lines residential property insurance
policy--
``(1) this section shall not apply; and
``(2) the provisions of the standard flood
insurance policy under the national flood insurance
program and the appeals process established under
section 205 of the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004 (42 U.S.C. 4011 note) and
the regulations issued pursuant to such section shall
apply exclusively.
``(j) Representatives of the Administrator.--For purposes
of this section, the term `representatives of the
Administrator' means representatives of the national flood
insurance program who participate in the appeals process
established under section 205 of the Bunning-Bereuter-
Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011
note).''.
SEC. 100224. OVERSIGHT AND EXPENSE REIMBURSEMENTS OF INSURANCE
COMPANIES.
(a) Submission of Biennial Reports.--
(1) To the administrator.--Not later than 20 days
after the date of enactment of this Act, each property
and casualty insurance company participating in the
Write Your Own program shall submit to the
Administrator any biennial report required by the
Federal Emergency Management Agency to be prepared in
the prior 5 years by such company.
(2) To gao.--Not later than 10 days after the
submission of the biennial reports under paragraph (1),
the Administrator shall submit all such reports to the
Comptroller General of the United States.
(3) Notice to congress of failure to comply.--The
Administrator shall notify and report to the Committee
on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives on any property and casualty insurance
company participating in the Write Your Own program
that failed to submit its biennial reports as required
under paragraph (1).
(4) Failure to comply.--A property and casualty
insurance company participating in the Write Your Own
program which fails to comply with the reporting
requirement under this subsection or the requirement
under section 62.23(j)(1) of title 44, Code of Federal
Regulations (relating to biennial audit of the flood
insurance financial statements) shall be subject to a
civil penalty in an amount of not more than $1,000 per
day for each day that the company remains in
noncompliance with either such requirement.
(b) Methodology To Determine Reimbursed Expenses.--Not
later than 180 days after the date of enactment of this Act,
the Administrator shall develop a methodology for determining
the appropriate amounts that property and casualty insurance
companies participating in the Write Your Own program should be
reimbursed for selling, writing, and servicing flood insurance
policies and adjusting flood insurance claims on behalf of the
National Flood Insurance Program. The methodology shall be
developed using actual expense data for the flood insurance
line and can be derived from--
(1) flood insurance expense data produced by the
property and casualty insurance companies;
(2) flood insurance expense data collected by the
National Association of Insurance Commissioners; or
(3) a combination of the methodologies described in
paragraphs (1) and (2).
(c) Submission of Expense Reports.--To develop the
methodology established under subsection (b), the Administrator
may require each property and casualty insurance company
participating in the Write Your Own program to submit a report
to the Administrator, in a format determined by the
Administrator and within 60 days of the request, that details
the expense levels of each such company for selling, writing,
and servicing standard flood insurance policies and adjusting
and servicing claims.
(d) FEMA Rulemaking on Reimbursement of Expenses Under the
Write Your Own Program.--Not later than 12 months after the
date of enactment of this Act, the Administrator shall issue a
rule to formulate revised expense reimbursements to property
and casualty insurance companies participating in the Write
Your Own program for their expenses (including their operating
and administrative expenses for adjustment of claims) in
selling, writing, and servicing standard flood insurance
policies, including how such companies shall be reimbursed in
both catastrophic and noncatastrophic years. Such
reimbursements shall be structured to ensure reimbursements
track the actual expenses, including standard business costs
and operating expenses, of such companies as closely as
practicably possible.
(e) Report of the Administrator.--Not later than 60 days
after the effective date of the final rule issued pursuant to
subsection (d), the Administrator shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
a report containing--
(1) the specific rationale and purposes of such
rule;
(2) the reasons for the adoption of the policies
contained in such rule; and
(3) the degree to which such rule accurately
represents the true operating costs and expenses of
property and casualty insurance companies participating
in the Write Your Own program.
(f) GAO Study and Report on Expenses of Write Your Own
Program.--
(1) Study.--Not later than 180 days after the
effective date of the final rule issued pursuant to
subsection (d), the Comptroller General of the United
States shall--
(A) conduct a study on the efficacy,
adequacy, and sufficiency of the final rules
issued pursuant to subsection (d); and
(B) report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the
House of Representatives on the findings of the
study conducted under subparagraph (A).
(2) GAO authority.--In conducting the study and
report required under paragraph (1), the Comptroller
General--
(A) may use any previous findings, studies,
or reports that the Comptroller General
previously completed on the Write Your Own
program;
(B) shall determine if--
(i) the final rule issued pursuant
to subsection (d) allows the Federal
Emergency Management Agency to access
adequate information regarding the
actual expenses of property and
casualty insurance companies
participating in the Write Your Own
program; and
(ii) the actual reimbursements paid
out under the final rule issued
pursuant to subsection (d) accurately
reflect the expenses reported by
property and casualty insurance
companies participating in the Write
Your Own program, including the
standard business costs and operating
expenses of such companies; and
(C) shall analyze the effect of the final
rule issued pursuant to subsection (d) on the
level of participation of property and casualty
insurers in the Write Your Own program.
SEC. 100225. MITIGATION.
(a) Mitigation Assistance Grants.--Section 1366 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is
amended--
(1) by striking subsections (b), (d), (f), (g),
(h), (k), and (m);
(2) by redesignating subsections (c), (e), (i), and
(j) as subsections (b), (c), (e), and (f),
respectively;
(3) in subsection (a), by striking the last
sentence and inserting the following: ``Such financial
assistance shall be made available--
``(1) to States and communities in the form of
grants under this section for carrying out mitigation
activities;
``(2) to States and communities in the form of
grants under this section for carrying out mitigation
activities that reduce flood damage to severe
repetitive loss structures; and
``(3) to property owners in the form of direct
grants under this section for carrying out mitigation
activities that reduce flood damage to individual
structures for which 2 or more claim payments for
losses have been made under flood insurance coverage
under this title if the Administrator, after
consultation with the State and community, determines
that neither the State nor community in which such a
structure is located has the capacity to manage such
grants.'';
(4) in subsection (b), as so redesignated, in the
first sentence--
(A) by striking ``and provides protection
against'' and inserting ``provides for
reduction of''; and
(B) by inserting before the period at the
end the following: ``, and may be included in a
multihazard mitigation plan'';
(5) in subsection (c), as so redesignated--
(A) in paragraph (1), by striking ``(1) Use
of amounts.--'' and all that follows through
the end of the first sentence and inserting the
following:
``(1) Requirement of consistency with approved
mitigation plan.--Amounts provided under this section
may be used only for mitigation activities that are
consistent with mitigation plans that are approved by
the Administrator and identified under paragraph
(4).'';
(B) by striking paragraphs (2), (3), and
(4) and inserting the following new paragraphs:
``(2) Requirements of technical feasibility, cost
effectiveness, and interest of national flood insurance
fund.--
``(A) In general.--The Administrator may
approve only mitigation activities that the
Administrator determines--
``(i) are technically feasible and
cost-effective; or
``(ii) will eliminate future
payments from the National Flood
Insurance Fund for severe repetitive
loss structures through an acquisition
or relocation activity.
``(B) Considerations.--In making a
determination under subparagraph (A), the
Administrator shall take into consideration
recognized ancillary benefits.'';
(C) by redesignating paragraph (5) as
paragraph (3);
(D) in paragraph (3), as so redesignated--
(i) in the matter preceding
subparagraph (A), by striking ``The
Director'' and all that follows through
``Such activities may'' and inserting
``Eligible activities under a
mitigation plan may'';
(ii) by striking subparagraphs (E)
and (H);
(iii) by redesignating
subparagraphs (D), (F), and (G) as
subparagraphs (E), (G), and (H),
respectively;
(iv) by inserting after
subparagraph (C) the following new
subparagraph:
``(D) elevation, relocation, or
floodproofing of utilities (including equipment
that serves structures);'';
(v) by inserting after subparagraph
(E), as so redesignated, the following
new subparagraph:
``(F) the development or update of
mitigation plans by a State or community which
meet the planning criteria established by the
Administrator, except that the amount from
grants under this section that may be used
under this subparagraph may not exceed $50,000
for any mitigation plan of a State or $25,000
for any mitigation plan of a community;'';
(vi) in subparagraph (H); as so
redesignated, by striking ``and'' at
the end; and
(vii) by adding at the end the
following new subparagraphs:
``(I) other mitigation activities not
described in subparagraphs (A) through (G) or
the regulations issued under subparagraph (H),
that are described in the mitigation plan of a
State or community; and
``(J) without regard to the requirements
under paragraphs (1) and (2) of subsection (d),
and if the State applied for and was awarded at
least $1,000,000 in grants available under this
section in the prior fiscal year, technical
assistance to communities to identify eligible
activities, to develop grant applications, and
to implement grants awarded under this section,
not to exceed $50,000 to any 1 State in any
fiscal year.''; and
(E) by striking paragraph (6) and inserting
the following:
``(4) Eligibility of demolition and rebuilding of
properties.--The Administrator shall consider as an
eligible activity the demolition and rebuilding of
properties to at least base flood elevation or greater,
if required by the Administrator or if required by any
State regulation or local ordinance, and in accordance
with criteria established by the Administrator.'';
(6) by inserting after subsection (c), as so
redesignated, the following new subsection:
``(d) Matching Requirement.--The Administrator may provide
grants for eligible mitigation activities as follows:
``(1) Severe repetitive loss structures.--In the
case of mitigation activities to severe repetitive loss
structures, in an amount up to--
``(A) 100 percent of all eligible costs, if
the activities are approved under subsection
(c)(2)(A)(i); or
``(B) the expected savings to the National
Flood Insurance Fund from expected avoided
damages through acquisition or relocation
activities, if the activities are approved
under subsection (c)(2)(A)(ii).
``(2) Repetitive loss structures.--In the case of
mitigation activities to repetitive loss structures, in
an amount up to 90 percent of all eligible costs.
``(3) Other mitigation activities.--In the case of
all other mitigation activities, in an amount up to 75
percent of all eligible costs.'';
(7) in subsection (e)(2), as so redesignated--
(A) by striking ``certified under
subsection (g)'' and inserting ``required under
subsection (d)''; and
(B) by striking ``3 times the amount'' and
inserting ``the amount'';
(8) in subsection (f), as so redesignated, by
striking ``Riegle Community Development and Regulatory
Improvement Act of 1994'' and inserting ``Biggert-
Waters Flood Insurance Reform Act of 2012''; and
(9) by adding at the end the following new
subsections:
``(g) Failure To Make Grant Award Within 5 Years.--For any
application for a grant under this section for which the
Administrator fails to make a grant award within 5 years of the
date of the application, the grant application shall be
considered to be denied and any funding amounts allocated for
such grant applications shall remain in the National Flood
Mitigation Fund under section 1367 of this title and shall be
made available for grants under this section.
``(h) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Community.--The term `community' means--
``(A) a political subdivision that--
``(i) has zoning and building code
jurisdiction over a particular area
having special flood hazards; and
``(ii) is participating in the
national flood insurance program; or
``(B) a political subdivision of a State,
or other authority, that is designated by
political subdivisions, all of which meet the
requirements of subparagraph (A), to administer
grants for mitigation activities for such
political subdivisions.
``(2) Repetitive loss structure.--The term
`repetitive loss structure' has the meaning given such
term in section 1370.
``(3) Severe repetitive loss structure.--The term
`severe repetitive loss structure' means a structure
that--
``(A) is covered under a contract for flood
insurance made available under this title; and
``(B) has incurred flood-related damage--
``(i) for which 4 or more separate
claims payments have been made under
flood insurance coverage under this
title, with the amount of each such
claim exceeding $5,000, and with the
cumulative amount of such claims
payments exceeding $20,000; or
``(ii) for which at least 2
separate claims payments have been made
under such coverage, with the
cumulative amount of such claims
exceeding the value of the insured
structure.''.
(b) Elimination of Grants Program for Repetitive Insurance
Claims Properties.--Chapter I of the National Flood Insurance
Act of 1968 is amended by striking section 1323 (42 U.S.C.
4030).
(c) Elimination of Pilot Program for Mitigation of Severe
Repetitive Loss Properties.--Chapter III of the National Flood
Insurance Act of 1968 is amended by striking section 1361A (42
U.S.C. 4102a).
(d) National Flood Insurance Fund.--Section 1310(a) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is
amended--
(1) in paragraph (6), by inserting ``and'' after
the semicolon;
(2) in paragraph (7), by striking the semicolon and
inserting a period; and
(3) by striking paragraphs (8) and (9).
(e) National Flood Mitigation Fund.--Section 1367 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104d) is
amended--
(1) in subsection (b)--
(A) by striking paragraph (1) and inserting
the following new paragraph:
``(1) in each fiscal year, amounts from the
National Flood Insurance Fund not to exceed $90,000,000
and to remain available until expended, of which--
``(A) not more than $40,000,000 shall be
available pursuant to subsection (a) of this
section for assistance described in section
1366(a)(1);
``(B) not more than $40,000,000 shall be
available pursuant to subsection (a) of this
section for assistance described in section
1366(a)(2); and
``(C) not more than $10,000,000 shall be
available pursuant to subsection (a) of this
section for assistance described in section
1366(a)(3);''; and
(B) in paragraph (3), by striking ``section
1366(i)'' and inserting ``section 1366(e)'';
(2) in subsection (c), by striking ``sections 1366
and 1323'' and inserting ``section 1366'';
(3) by redesignating subsections (d) and (e) as
subsections (f) and (g), respectively; and
(4) by inserting after subsection (c) the following
new subsections:
``(d) Prohibition on Offsetting Collections.--
Notwithstanding any other provision of this title, amounts made
available pursuant to this section shall not be subject to
offsetting collections through premium rates for flood
insurance coverage under this title.
``(e) Continued Availability and Reallocation.--Any amounts
made available pursuant to subparagraph (A), (B), or (C) of
subsection (b)(1) that are not used in any fiscal year shall
continue to be available for the purposes specified in the
subparagraph of subsection (b)(1) pursuant to which such
amounts were made available, unless the Administrator
determines that reallocation of such unused amounts to meet
demonstrated need for other mitigation activities under section
1366 is in the best interest of the National Flood Insurance
Fund.''.
(f) Increased Cost of Compliance Coverage.--Section
1304(b)(4) of the National Flood Insurance Act of 1968 (42
U.S.C. 4011(b)(4)) is amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraphs (C), (D), and
(E) as subparagraphs (B), (C), and (D), respectively.
SEC. 100226. FLOOD PROTECTION STRUCTURE ACCREDITATION TASK FORCE.
(a) Definitions.--In this section--
(1) the term ``flood protection structure
accreditation requirements'' means the requirements
established under section 65.10 of title 44, Code of
Federal Regulations, for levee systems to be recognized
on maps created for purposes of the National Flood
Insurance Program;
(2) the term ``National Committee on Levee Safety''
means the Committee on Levee Safety established under
section 9003 of the National Levee Safety Act of 2007
(33 U.S.C. 3302); and
(3) the term ``task force'' means the Flood
Protection Structure Accreditation Task Force
established under subsection (b).
(b) Establishment.--
(1) In general.--The Administrator and the
Secretary of the Army, acting through the Chief of
Engineers, in cooperation with the National Committee
on Levee Safety, shall jointly establish a Flood
Protection Structure Accreditation Task Force.
(2) Duties.--
(A) Developing process.--The task force
shall develop a process to better align the
information and data collected by or for the
Corps of Engineers under the Inspection of
Completed Works Program with the flood
protection structure accreditation requirements
so that--
(i) information and data collected
for either purpose can be used
interchangeably; and
(ii) information and data collected
by or for the Corps of Engineers under
the Inspection of Completed Works
Program is sufficient to satisfy the
flood protection structure
accreditation requirements.
(B) Gathering recommendations.--The task
force shall gather, and consider in the process
developed under subparagraph (A),
recommendations from interested persons in each
region relating to the information, data, and
accreditation requirements described in
subparagraph (A).
(3) Considerations.--In developing the process
under paragraph (2), the task force shall consider
changes to--
(A) the information and data collected by
or for the Corps of Engineers under the
Inspection of Completed Works Program; and
(B) the flood protection structure
accreditation requirements.
(4) Rule of construction.--Nothing in this section
shall be construed to require a reduction in the level
of public safety and flood control provided by
accredited levees, as determined by the Administrator
for purposes of this section.
(c) Implementation.--The Administrator and the Secretary of
the Army, acting through the Chief of Engineers, shall
implement the process developed by the task force under
subsection (b) not later than 1 year after the date of
enactment of this Act and shall complete the process under
subsection (b) not later than 2 years after the date of
enactment of this Act.
(d) Reports.--The Administrator and the Secretary of the
Army, acting through the Chief of Engineers, in cooperation
with the National Committee on Levee Safety, shall jointly
submit to the Committee on Banking, Housing, and Urban Affairs
and the Committee on Environment and Public Works of the Senate
and the Committee on Financial Services, the Committee on
Transportation and Infrastructure, and the Committee on Natural
Resources of the House of Representatives reports concerning
the activities of the task force and the implementation of the
process developed by the task force under subsection (b),
including--
(1) an interim report, not later than 180 days
after the date of enactment of this Act; and
(2) a final report, not later than 1 year after the
date of enactment of this Act.
(e) Termination.--The task force shall terminate on the
date of submission of the report under subsection (d)(2).
SEC. 100227. FLOOD IN PROGRESS DETERMINATIONS.
(a) Report.--
(1) Review.--The Administrator shall review--
(A) the processes and procedures for
determining that a flood event has commenced or
is in progress for purposes of flood insurance
coverage made available under the National
Flood Insurance Program;
(B) the processes and procedures for
providing public notification that such a flood
event has commenced or is in progress;
(C) the processes and procedures regarding
the timing of public notification of flood
insurance requirements and availability; and
(D) the effects and implications that
weather conditions, including rainfall,
snowfall, projected snowmelt, existing water
levels, and other conditions, have on the
determination that a flood event has commenced
or is in progress.
(2) Report.--Not later than 6 months after the date
of enactment of this Act, the Administrator shall
submit a report to Congress that describes--
(A) the results and conclusions of the
review under paragraph (1); and
(B) any actions taken, or proposed actions
to be taken, by the Administrator to provide
for more precise and technical processes and
procedures for determining that a flood event
has commenced or is in progress.
(b) Effective Date of Policies Covering Properties Affected
by Flooding of the Missouri River in 2011.--
(1) Eligible coverage.--For purposes of this
subsection, the term ``eligible coverage'' means
coverage under a new contract for flood insurance
coverage under the National Flood Insurance Program, or
a modification to coverage under an existing flood
insurance contract, for property damaged by the
flooding of the Missouri River that commenced on June
1, 2011, that was purchased or made during the period
beginning May 1, 2011, and ending June 6, 2011.
(2) Effective dates.--Notwithstanding section
1306(c) of the National Flood Insurance Act of 1968 (42
U.S.C. 4013(c)), or any other provision of law, any
eligible coverage shall--
(A) be deemed to take effect on the date
that is 30 days after the date on which all
obligations for the eligible coverage
(including completion of the application and
payment of any initial premiums owed) are
satisfactorily completed; and
(B) cover damage to property occurring
after the effective date described in
subparagraph (A) that resulted from the
flooding of the Missouri River that commenced
on June 1, 2011, if the property did not suffer
damage or loss as a result of such flooding
before the effective date described in
subparagraph (A).
(c) Timely Notification.--Not later than 90 days after the
date on which the Administrator submits the report required
under subsection (a)(2), the Administrator shall, taking into
consideration the results of the review under subsection
(a)(1)(B), develop procedures for providing timely
notification, to the extent practicable, to policyholders who
have purchased flood insurance coverage under the National
Flood Insurance Program within 30 days of a determination of a
flood in progress and who may be affected by the flood of the
determination and how the determination may affect their
coverage.
SEC. 100228. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL COVERAGE
LIMITS.
Section 1306(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4013(b)) is amended--
(1) in paragraph (2)--
(A) by striking ``in the case of any
residential property'' and inserting ``in the
case of any residential building designed for
the occupancy of from 1 to 4 families''; and
(B) by striking ``shall be made available
to every insured upon renewal and every
applicant for insurance so as to enable such
insured or applicant to receive coverage up to
a total amount (including such limits specified
in paragraph (1)(A)(i)) of $250,000'' and
inserting ``shall be made available, with
respect to any single such building, up to an
aggregate liability (including such limits
specified in paragraph (1)(A)(i)) of
$250,000''; and
(2) in paragraph (4)--
(A) by striking ``in the case of any
nonresidential property, including churches,''
and inserting ``in the case of any
nonresidential building, including a church,'';
and
(B) by striking ``shall be made available
to every insured upon renewal and every
applicant for insurance, in respect to any
single structure, up to a total amount
(including such limit specified in subparagraph
(B) or (C) of paragraph (1), as applicable) of
$500,000 for each structure and $500,000 for
any contents related to each structure'' and
inserting ``shall be made available with
respect to any single such building, up to an
aggregate liability (including such limits
specified in subparagraph (B) or (C) of
paragraph (1), as applicable) of $500,000, and
coverage shall be made available up to a total
of $500,000 aggregate liability for contents
owned by the building owner and $500,000
aggregate liability for each unit within the
building for contents owned by the tenant''.
SEC. 100229. LOCAL DATA REQUIREMENT.
(a) In General.--Notwithstanding any other provision of
this subtitle, no area or community participating in the
National Flood Insurance Program that is or includes a
community that is identified by the Administrator as Community
Identification Number 360467 and impacted by the Jamaica Bay
flooding source or identified by the Administrator as Community
Identification Number 360495 may be or become designated as an
area having special flood hazards for purposes of the National
Flood Insurance Program, unless the designation is made on the
basis of--
(1) flood hazard analyses of hydrologic, hydraulic,
or coastal flood hazards that have been properly
calibrated and validated, and are specific and directly
relevant to the geographic area being studied; and
(2) ground elevation information of sufficient
accuracy and precision to meet the guidelines of the
Administration for accuracy at the 95 percent
confidence level.
(b) Remapping.--
(1) Remapping required.--If the Administrator
determines that an area described in subsection (a) has
been designated as an area of special flood hazard on
the basis of information that does not comply with the
requirements under subsection (a), the Administrator
shall revise and update any National Flood Insurance
Program rate map for the area--
(A) using information that complies with
the requirements under subsection (a); and
(B) in accordance with the procedures
established under section 1363 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4104)
for flood elevation determinations.
(2) Interim period.--A National Flood Insurance
Program rate map in effect on the date of enactment of
this Act for an area for which the Administrator has
made a determination under paragraph (1) shall continue
in effect with respect to the area during the period--
(A) beginning on the date of enactment of
this Act; and
(B) ending on the date on which the
Administrator determines that the requirements
under section 1363 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104) for
flood elevation determinations have been met
with respect to a revision and update under
paragraph (1) of a National Flood Insurance
Program rate map for the area.
(3) Deadline.--The Administrator shall issue a
preliminary National Flood Insurance Program rate map
resulting from a revision and update required under
paragraph (1) not later than 1 year after the date of
enactment of this Act.
(4) Risk premium rate clarification.--
(A) In general.--If a revision and update
required under paragraph (1) results in a
reduction in the risk premium rate for a
property in an area for which the Administrator
has made a determination under paragraph (1),
the Administrator shall--
(i) calculate the difference
between the reduced risk premium rate
and the risk premium rate paid by a
policyholder with respect to the
property during the period--
(I) beginning on the date
on which the National Flood
Insurance Program rate map in
effect for the area on the date
of enactment of this Act took
effect; and
(II) ending on the date on
which the revised or updated
National Flood Insurance
Program rate map takes effect;
and
(ii) reimburse the policyholder an
amount equal to such difference.
(B) Funding.--Notwithstanding section 1310
of the National Flood Insurance Act of 1968 (42
U.S.C. 4017), there shall be available to the
Administrator from premiums deposited in the
National Flood Insurance Fund pursuant to
subsection (d) of such section 1310, of amounts
not otherwise obligated, the amount necessary
to carry out this paragraph.
(c) Termination.--
(1) In general.--Except as provided in paragraph
(2), this section shall cease to have effect on the
effective date of a National Flood Insurance Program
rate map revised and updated under subsection (b)(1).
(2) Reimbursements.--Subsection (b)(4) shall cease
to have effect on the date on which the Administrator
has made all reimbursements required under subsection
(b)(4).
SEC. 100230. ELIGIBILITY FOR FLOOD INSURANCE FOR PERSONS RESIDING IN
COMMUNITIES THAT HAVE MADE ADEQUATE PROGRESS ON THE
RECONSTRUCTION OR IMPROVEMENT OF A FLOOD PROTECTION
SYSTEM.
(a) Eligibility for Flood Insurance Coverage.--
(1) In general.--Notwithstanding any other
provision of law (including section 1307(e) of the
National Flood Insurance Act of 1968 (42 U.S.C.
4014(e))), a person residing in a community that the
Administrator determines has made adequate progress on
the reconstruction or improvement of a flood protection
system that will afford flood protection for a 100-year
floodplain (without regard to the level of Federal
funding of or participation in the construction,
reconstruction, or improvement), shall be eligible for
flood insurance coverage under the National Flood
Insurance Program--
(A) if the person resides in a community
that is a participant in the National Flood
Insurance Program; and
(B) at a risk premium rate that does not
exceed the risk premium rate that would be
chargeable if the flood protection system had
been completed.
(2) Adequate progress.--
(A) Reconstruction or improvement.--For
purposes of paragraph (1), the Administrator
shall determine that a community has made
adequate progress on the reconstruction or
improvement of a flood protection system if--
(i) 100 percent of the project cost
has been authorized;
(ii) not less than 60 percent of
the project cost has been secured or
appropriated;
(iii) not less than 50 percent of
the flood protection system has been
assessed as being without deficiencies;
and
(iv) the reconstruction or
improvement has a project schedule that
does not exceed 5 years, beginning on
the date on which the reconstruction or
construction of the improvement
commences.
(B) Considerations.--In determining whether
a flood protection system has been assessed as
being without deficiencies, the Administrator
shall consider the requirements under section
65.10 of chapter 44, Code of Federal
Regulations, or any successor thereto.
(C) Date of commencement.--For purposes of
subparagraph (A)(iv) of this paragraph and
subsection (b)(2)(B), the date of commencement
of the reconstruction or improvement of a flood
protection system that is undergoing
reconstruction or improvement on the date of
enactment of this Act shall be deemed to be the
date on which the owner of the flood protection
system submits a request under paragraph (3).
(3) Request for determination.--The owner of a
flood protection system that is undergoing
reconstruction or improvement on the date of enactment
of this Act may submit to the Administrator a request
for a determination under paragraph (2) that the
community in which the flood protection system is
located has made adequate progress on the
reconstruction or improvement of the flood protection
system.
(4) Rule of construction.--Nothing in this
subsection shall be construed to prohibit the
Administrator from making a determination under
paragraph (2) for any community in which a flood
protection system is not undergoing reconstruction or
improvement on the date of enactment of this Act.
(b) Termination of Eligibility.--
(1) Adequate continuing progress.--The
Administrator shall issue rules to establish a method
of determining whether a community has made adequate
continuing progress on the reconstruction or
improvement of a flood protection system that
includes--
(A) a requirement that the Administrator
shall--
(i) consult with the owner of the
flood protection system--
(I) 6 months after the date
of a determination under
subsection (a);
(II) 18 months after the
date of a determination under
subsection (a); and
(III) 36 months after the
date of a determination under
subsection (a); and
(ii) after each consultation under
clause (i), determine whether the
reconstruction or improvement is
reasonably likely to be completed in
accordance with the project schedule
described in subsection (a)(2)(A)(iv);
and
(B) a requirement that, if the
Administrator makes a determination under
subparagraph (A)(ii) that reconstruction or
improvement is not reasonably likely to be
completed in accordance with the project
schedule, the Administrator shall--
(i) not later than 30 days after
the date of the determination, notify
the owner of the flood protection
system of the determination and provide
the rationale and evidence for the
determination; and
(ii) provide the owner of the flood
protection system the opportunity to
appeal the determination.
(2) Termination.--The Administrator shall terminate
the eligibility for flood insurance coverage under
subsection (a) for persons residing in a community with
respect to which the Administrator made a determination
under subsection (a) if--
(A) the Administrator determines that the
community has not made adequate continuing
progress; or
(B) on the date that is 5 years after the
date on which the reconstruction or
construction of the improvement commences, the
project has not been completed.
(3) Waiver.--A person whose eligibility would
otherwise be terminated under paragraph (2)(B) shall
continue to be eligible to purchase flood insurance
coverage described in subsection (a) if the
Administrator determines--
(A) the community has made adequate
continuing progress on the reconstruction or
improvement of a flood protection system; and
(B) there is a reasonable expectation that
the reconstruction or improvement of the flood
protection system will be completed not later
than 1 year after the date of the determination
under this paragraph.
(4) Risk premium rate.--If the Administrator
terminates the eligibility of persons residing in a
community to purchase flood insurance coverage
described in subsection (a), the Administrator shall
establish an appropriate risk premium rate for flood
insurance coverage under the National Flood Insurance
Program for persons residing in the community that
purchased flood insurance coverage before the date on
which the termination of eligibility takes effect,
taking into consideration the then-current state of the
flood protection system.
(c) Additional Authority.--
(1) Additional authority.--Notwithstanding
subsection (a), in exceptional and exigent
circumstances, the Administrator may, in the
Administrator's sole discretion, determine that a
person residing in a community, which is a participant
in the National Flood Insurance Program, that has begun
reconstruction or improvement of a flood protection
system that will afford flood protection for a 100-year
floodplain (without regard to the level of Federal
funding of or participation in the reconstruction or
improvement) shall be eligible for flood insurance
coverage under the National Flood Insurance Program at
a risk premium rate that does not exceed the risk
premium rate that would be chargeable if the flood
protection system had been completed, provided--
(A) the community makes a written request
for the determination setting forth the
exceptional and exigent circumstances,
including why the community cannot meet the
criteria for adequate progress set forth in
under subsection (a)(2)(A) and why immediate
relief is necessary;
(B) the Administrator submits a written
report setting forth findings of the
exceptional and exigent circumstances on which
the Administrator based an affirmative
determination to the Committee on Banking,
Housing, and Urban Affairs of the Senate, and
the Committee on Financial Services of the
House of Representatives not later than 15 days
before making the determination; and
(C) the eligibility for flood insurance
coverage at a risk premium rate determined
under this subsection terminates no later than
1 year after the date on which the
Administrator makes the determination.
(2) Limitation.--Upon termination of eligibility
under paragraph (1)(C), a community may submit another
request pursuant to paragraph (1)(A). The Administrator
may make no more than two determinations under
paragraph (1) with respect to persons residing within
any single requesting community.
(3) Termination.--The authority provided under
paragraphs (1) and (2) shall terminate two years after
the enactment of this Act.
SEC. 100231. STUDIES AND REPORTS.
(a) Report on Improving the National Flood Insurance
Program.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall
conduct a study and submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives, on--
(1) the number of flood insurance policy holders
currently insuring--
(A) a residential structure up to the
maximum available coverage amount, as
established in section 61.6 of title 44, Code
of Federal Regulations, of--
(i) $250,000 for the structure; and
(ii) $100,000 for the contents of
such structure; or
(B) a commercial structure up to the
maximum available coverage amount, as
established in section 61.6 of title 44, Code
of Federal Regulations, of $500,000;
(2) the increased losses the National Flood
Insurance Program would have sustained during the 2004
and 2005 hurricane season if the National Flood
Insurance Program had insured all policyholders up to
the maximum conforming loan limit for fiscal year 2006
of $417,000, as established under section 302(b)(2) of
the Federal National Mortgage Association Charter Act
(12 U.S.C. 1717(b)(2));
(3) the availability in the private marketplace of
flood insurance coverage in amounts that exceed the
current limits of coverage amounts established in
section 61.6 of title 44, Code of Federal Regulations;
and
(4) what effect, if any--
(A) raising the current limits of coverage
amounts established in section 61.6 of title
44, Code of Federal Regulations, would have on
the ability of private insurers to continue
providing flood insurance coverage; and
(B) reducing the current limits of coverage
amounts established in section 61.6 of title
44, Code of Federal Regulations, would have on
the ability of private insurers to provide
sufficient flood insurance coverage to
effectively replace the current level of flood
insurance coverage being provided under the
National Flood Insurance Program.
(b) Report of the Administrator on Activities Under the
National Flood Insurance Program.--
(1) In general.--The Administrator shall, on an
annual basis, submit a full report on the operations,
activities, budget, receipts, and expenditures of the
National Flood Insurance Program for the preceding 12-
month period to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.
(2) Timing.--Each report required under paragraph
(1) shall be submitted to the committees described in
paragraph (1) not later than 3 months following the end
of each fiscal year.
(3) Contents.--Each report required under paragraph
(1) shall include--
(A) the current financial condition and
income statement of the National Flood
Insurance Fund established under section 1310
of the National Flood Insurance Act of 1968 (42
U.S.C. 4017), including--
(i) premiums paid into such Fund;
(ii) policy claims against such
Fund; and
(iii) expenses in administering
such Fund;
(B) the number and face value of all
policies issued under the National Flood
Insurance Program that are in force;
(C) a description and summary of the losses
attributable to repetitive loss structures;
(D) a description and summary of all losses
incurred by the National Flood Insurance
Program due to--
(i) hurricane related damage; and
(ii) nonhurricane related damage;
(E) the amounts made available by the
Administrator for mitigation assistance under
section 1366(c)(4) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104c(c)(4)),
as so redesignated by this Act, for the
purchase of properties substantially damaged by
flood for that fiscal year, and the actual
number of flood damaged properties purchased
and the total cost expended to purchase such
properties;
(F) the estimate of the Administrator as to
the average historical loss year, and the basis
for that estimate;
(G) the estimate of the Administrator as to
the maximum amount of claims that the National
Flood Insurance Program would have to expend in
the event of a catastrophic year;
(H) the average--
(i) amount of insurance carried per
flood insurance policy;
(ii) premium per flood insurance
policy; and
(iii) loss per flood insurance
policy; and
(I) the number of claims involving damages
in excess of the maximum amount of flood
insurance available under the National Flood
Insurance Program and the sum of the amount of
all damages in excess of such amount.
(c) GAO Study on Pre-FIRM Structures.--Not later than 1
year after the date of enactment of this Act, the Comptroller
General of the United States shall conduct a study and submit a
report to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the
House of Representatives, on the--
(1) composition of the remaining pre-FIRM
structures that are explicitly receiving discounted
premium rates under section 1307 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014), including the
historical basis for the receipt of such subsidy and
the extent to which pre-FIRM structures are currently
owned by the same owners of the property at the time of
the original National Flood Insurance Program rate map;
(2) number and fair market value of such
structures;
(3) respective income level of the owners of such
structures;
(4) number of times each such structure has been
sold since 1968, including specific dates, sales price,
and any other information the Secretary determines
appropriate;
(5) total losses incurred by such structures since
the establishment of the National Flood Insurance
Program compared to the total losses incurred by all
structures that are charged a nondiscounted premium
rate;
(6) total cost of foregone premiums since the
establishment of the National Flood Insurance Program,
as a result of the subsidies provided to such
structures;
(7) annual cost as a result of the subsidies
provided to such structures;
(8) the premium income collected and the losses
incurred by the National Flood Insurance Program as a
result of such explicitly subsidized structures
compared to the premium income collected and the losses
incurred by such Program as a result of structures that
are charged a nondiscounted premium rate, on a State-
by-State basis; and
(9) the options for eliminating the subsidy to such
structures.
(d) GAO Review of FEMA Contractors.--The Comptroller
General of the United States, in conjunction with the Office of
the Inspector General of the Department of Homeland Security,
shall--
(1) conduct a review of the 3 largest contractors
the Administrator uses in administering the National
Flood Insurance Program; and
(2) not later than 18 months after the date of
enactment of this Act, submit a report on the findings
of such review to the Administrator, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and
the Committee on Financial Services of the House of
Representatives.
(e) Study and Report on Graduated Risk.--
(1) Study.--
(A) Study required.--The Administrator
shall enter into a contract under which the
National Academy of Sciences shall conduct a
study exploring methods for understanding
graduated risk behind levees and the associated
land development, insurance, and risk
communication dimensions.
(B) Contents of study.--The study under
this paragraph shall--
(i) research, review, and recommend
current best practices for estimating
direct annualized flood losses behind
levees for residential and commercial
structures;
(ii) rank each best practice
recommended under clause (i) based on
the best value, balancing cost,
scientific integrity, and the inherent
uncertainties associated with all
aspects of the loss estimate, including
geotechnical engineering, flood
frequency estimates, economic value,
and direct damages;
(iii) research, review, and
identify current best floodplain
management and land use practices
behind levees that effectively balance
social, economic, and environmental
considerations as part of an overall
flood risk management strategy;
(iv) identify areas in which the
best floodplain management and land use
practices described in clause (iii)
have proven effective and recommend
methods and processes by which such
practices could be applied more broadly
across the United States, given the
variety of different flood risks, State
and local legal frameworks, and
evolving judicial opinions;
(v) research, review, and identify
a variety of flood insurance pricing
options for flood hazards behind levees
that are actuarially sound and based on
the flood risk data developed using the
3 best practices recommended under
clause (i) that have the best value as
determined under clause (ii);
(vi) evaluate and recommend methods
to reduce insurance costs through
creative arrangements between insureds
and insurers while keeping a clear
accounting of how much financial risk
is being borne by various parties such
that the entire risk is accounted for,
including establishment of explicit
limits on disaster aid or other
assistance in the event of a flood; and
(vii) taking into consideration the
recommendations under clauses (i)
through (iii), recommend approaches to
communicate the associated risks to
community officials, homeowners, and
other residents of communities.
(2) Report.--The contract under paragraph (1)(A)
shall provide that not later than 12 months after the
date of enactment of this Act, the National Academy of
Sciences shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the
Committee on Financial Services and the Committee on
Science, Space, and Technology of the House of
Representatives a report on the study under paragraph
(1) that includes the information and recommendations
required under paragraph (1).
SEC. 100232. REINSURANCE.
(a) FEMA and GAO Reports on Privatization.--Not later than
18 months after the date of enactment of this Act, the
Administrator and the Comptroller General of the United States
shall each--
(1) conduct a separate study to assess a broad
range of options, methods, and strategies for
privatizing the National Flood Insurance Program; and
(2) submit a report to the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate with recommendations for the best manner to
accomplish the privatization described in paragraph
(1).
(b) Private Risk-management Initiatives.--The Administrator
may carry out such private risk-management initiatives as are
otherwise authorized under applicable law, as the Administrator
considers appropriate to determine the capacity of private
insurers, reinsurers, and financial markets to assist
communities, on a voluntary basis only, in managing the full
range of financial risks associated with flooding.
(c) Reinsurance Assessment.--
(1) Private market pricing assessment.--Not later
than 12 months after the date of enactment of this Act,
the Administrator shall submit to Congress a report
that--
(A) assesses the capacity of the private
reinsurance, capital, and financial markets to
assist communities, on a voluntary basis, in
managing the full range of financial risks
associated with flooding by requesting
proposals to assume a portion of the insurance
risk of the National Flood Insurance Program;
(B) describes any responses to the request
for proposals under subparagraph (A);
(C) assesses whether the rates and terms
contained in any proposals received by the
Administrator are--
(i) reasonable and appropriate; and
(ii) in an amount sufficient to
maintain the ability of the National
Flood Insurance Program to pay claims;
(D) describes the extent to which carrying
out the proposals received by the Administrator
would minimize the likelihood that the
Administrator would use the borrowing authority
under section 1309 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016);
(E) describes fluctuations in historical
reinsurance rates; and
(F) includes an economic cost-benefit
analysis of the impact on the National Flood
Insurance Program if the Administrator were to
exercise the authority under section 1335(a)(2)
of the National Flood Insurance Act of 1968 (42
U.S.C. 4055(a)(2)), as added by this section,
to secure reinsurance of coverage provided by
the National Flood Insurance Program from the
private market.
(2) Protocol for release of data.--The
Administrator shall develop a protocol, including
adequate privacy protections, to provide for the
release of data sufficient to conduct the assessment
required under paragraph (1).
(d) Reinsurance.--The National Flood Insurance Act of 1968
(42 U.S.C. 4001 et seq.) is amended--
(1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)),
by inserting ``, including as reinsurance of coverage
provided by the flood insurance program'' before ``, on
such terms'';
(2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)),
by inserting ``or reinsurance'' after ``flood insurance
coverage'';
(3) in section 1335(a) (42 U.S.C. 4055(a))--
(A) by striking ``The Director'' and
inserting the following:
``(1) In general.--The Administrator''; and
(B) by adding at the end the following:
``(2) Private reinsurance.--The Administrator is
authorized to secure reinsurance of coverage provided
by the flood insurance program from the private market
at rates and on terms determined by the Administrator
to be reasonable and appropriate, in an amount
sufficient to maintain the ability of the program to
pay claims.'';
(4) in section 1346(a) (42 U.S.C. 4082(a))--
(A) in the matter preceding paragraph (1),
by inserting after ``for the purpose of'' the
following: ``securing reinsurance of insurance
coverage provided by the program or for the
purpose of'';
(B) in paragraph (1)--
(i) by striking ``estimating'' and
inserting ``Estimating''; and
(ii) by striking the semicolon at
the end and inserting a period;
(C) in paragraph (2)--
(i) by striking ``receiving'' and
inserting ``Receiving''; and
(ii) by striking the semicolon at
the end and inserting a period;
(D) in paragraph (3)--
(i) by striking ``making'' and
inserting ``Making''; and
(ii) by striking `` 1A`; and' 1A''
and inserting a period;
(E) by redesignating paragraph (4) as
paragraph (5);
(F) in paragraph (5), as so redesignated,
by striking ``otherwise'' and inserting
``Otherwise''; and
(G) by inserting after paragraph (3) the
following new paragraph:
``(4) Placing reinsurance coverage on insurance
provided by such program.''; and
(5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)),
by striking ``include any'' and all that follows and
inserting the following: ``include any organization or
person that is authorized to engage in the business of
insurance under the laws of any State, subject to the
reporting requirements of the Securities Exchange Act
of 1934 pursuant to section 13(a) or 15(d) of such Act
(15 U.S.C. 78m(a) and 78o(d)), or authorized by the
Administrator to assume reinsurance on risks insured by
the flood insurance program;''.
(e) Assessment of Claims-paying Ability.--
(1) Assessment.--
(A) Assessment required.--
(i) In general.--Not later than
September 30 of each year, the
Administrator shall conduct an
assessment of the ability of the
National Flood Insurance Program to pay
claims.
(ii) Private market reinsurance.--
The assessment under this paragraph for
any year in which the Administrator
exercises the authority under section
1335(a)(2) of the National Flood
Insurance Act of 1968 (42 U.S.C.
4055(a)(2)), as added by this section,
to secure reinsurance of coverage
provided by the National Flood
Insurance Program from the private
market shall include information
relating the use of private sector
reinsurance and reinsurance equivalents
by the Administrator, whether or not
the Administrator used the borrowing
authority under section 1309 of the
National Flood Insurance Act of 1968
(42 U.S.C. 4016).
(iii) First assessment.--The
Administrator shall conduct the first
assessment required under this
paragraph not later than September 30,
2012.
(B) Considerations.--In conducting an
assessment under subparagraph (A), the
Administrator shall take into consideration
regional concentrations of coverage written by
the National Flood Insurance Program, peak
flood zones, and relevant mitigation measures.
(2) Annual report of the administrator of
activities under the national flood insurance
program.--The Administrator shall--
(A) include the results of each assessment
in the report required under section 100231(b);
and
(B) not later than 30 days after the date
on which the Administrator completes an
assessment required under paragraph (1), make
the results of the assessment available to the
public.
SEC. 100233. GAO STUDY ON BUSINESS INTERRUPTION AND ADDITIONAL LIVING
EXPENSES COVERAGES.
(a) Study.--The Comptroller General of the United States
shall conduct a study concerning--
(1) the availability of additional living expenses
and business interruption coverage in the private
marketplace for flood insurance;
(2) the feasibility of allowing the National Flood
Insurance Program to offer such coverage at the option
of the consumer;
(3) the estimated cost to consumers if the National
Flood Insurance Program priced such optional coverage
at true actuarial rates;
(4) the impact such optional coverage would have on
consumer participation in the National Flood Insurance
Program; and
(5) the fiscal impact such optional coverage would
have upon the National Flood Insurance Fund if such
optional coverage were included in the National Flood
Insurance Program, as described in paragraph (2), at
the price described in paragraph (3).
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall submit to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives a report containing the results of the study
under subsection (a).
SEC. 100234. POLICY DISCLOSURES.
(a) In General.--Notwithstanding any other provision of
law, in addition to any other disclosures that may be required,
each policy under the National Flood Insurance Program shall
state all conditions, exclusions, and other limitations
pertaining to coverage under the subject policy, regardless of
the underlying insurance product, in plain English, in boldface
type, and in a font size that is twice the size of the text of
the body of the policy.
(b) Violations.--The Administrator may impose a civil
penalty of not more than $50,000 on any person that fails to
comply with subsection (a).
SEC. 100235. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN
MANAGEMENT CRITERIA.
Not later than 6 months after the date of enactment of this
Act, the Administrator of the Federal Emergency Management
Agency shall conduct a study and submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives regarding the impact, effectiveness, and
feasibility of amending section 1361 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4102) to include widely used
and nationally recognized building codes as part of the
floodplain management criteria developed under such section,
and shall determine--
(1) the regulatory, financial, and economic impacts
of such a building code requirement on homeowners,
States and local communities, local land use policies,
and the Federal Emergency Management Agency;
(2) the resources required of State and local
communities to administer and enforce such a building
code requirement;
(3) the effectiveness of such a building code
requirement in reducing flood-related damage to
buildings and contents;
(4) the impact of such a building code requirement
on the actuarial soundness of the National Flood
Insurance Program;
(5) the effectiveness of nationally recognized
codes in allowing innovative materials and systems for
flood-resistant construction;
(6) the feasibility and effectiveness of providing
an incentive in lower premium rates for flood insurance
coverage under such Act for structures meeting
whichever of such widely used and nationally recognized
building codes or any applicable local building codes
provides greater protection from flood damage;
(7) the impact of such a building code requirement
on rural communities with different building code
challenges than urban communities; and
(8) the impact of such a building code requirement
on Indian reservations.
SEC. 100236. STUDY OF PARTICIPATION AND AFFORDABILITY FOR CERTAIN
POLICYHOLDERS.
(a) FEMA Study.--The Administrator shall conduct a study
of--
(1) methods to encourage and maintain participation
in the National Flood Insurance Program;
(2) methods to educate consumers about the National
Flood Insurance Program and the flood risk associated
with their property;
(3) methods for establishing an affordability
framework for the National Flood Insurance Program,
including methods to aid individuals to afford risk-
based premiums under the National Flood Insurance
Program through targeted assistance rather than
generally subsidized rates, including means-tested
vouchers; and
(4) the implications for the National Flood
Insurance Program and the Federal budget of using each
such method.
(b) National Academy of Sciences Economic Analysis.--To
inform the Administrator in the conduct of the study under
subsection (a), the Administrator shall enter into a contract
under which the National Academy of Sciences, in consultation
with the Comptroller General of the United States, shall
conduct and submit to the Administrator an economic analysis of
the costs and benefits to the Federal Government of a flood
insurance program with full risk-based premiums, combined with
means-tested Federal assistance to aid individuals who cannot
afford coverage, through an insurance voucher program. The
analysis shall compare the costs of a program of risk-based
rates and means-tested assistance to the current system of
subsidized flood insurance rates and federally funded disaster
relief for people without coverage.
(c) Report.--Not later than 270 days after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report that contains the results of the study
and analysis under this section.
(d) Funding.--Notwithstanding section 1310 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4017), there shall be
available to the Administrator from the National Flood
Insurance Fund, of amounts not otherwise obligated, not more
than $750,000 to carry out this section.
SEC. 100237. STUDY AND REPORT CONCERNING THE PARTICIPATION OF INDIAN
TRIBES AND MEMBERS OF INDIAN TRIBES IN THE NATIONAL
FLOOD INSURANCE PROGRAM.
(a) Definition.--In this section, the term ``Indian tribe''
has the meaning given that term in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b).
(b) Findings.--Congress finds that participation by Indian
tribes in the National Flood Insurance Program is low. Only 45
of 565 Indian tribes participate in the National Flood
Insurance Program.
(c) Study.--The Comptroller General of the United States,
in coordination and consultation with Indian tribes and members
of Indian tribes throughout the United States, shall carry out
a study that examines--
(1) the factors contributing to the current rates
of participation by Indian tribes and members of Indian
tribes in the National Flood Insurance Program; and
(2) methods of encouraging participation by Indian
tribes and members of Indian tribes in the National
Flood Insurance Program.
(d) Report.--Not later than 6 months after the date of
enactment of this Act, the Comptroller General shall submit to
Congress a report that--
(1) contains the results of the study carried out
under subsection (c);
(2) describes the steps that the Administrator
should take to increase awareness and encourage
participation by Indian tribes and members of Indian
tribes in the National Flood Insurance Program; and
(3) identifies any legislative changes that would
encourage participation by Indian tribes and members of
Indian tribes in the National Flood Insurance Program.
SEC. 100238. TECHNICAL CORRECTIONS.
(a) Flood Disaster Protection Act of 1973.--The Flood
Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.) is
amended--
(1) by striking ``Director'' each place that term
appears, except in section 102(f)(3) (42 U.S.C.
4012a(f)(3)), and inserting ``Administrator''; and
(2) in section 201(b) (42 U.S.C. 4105(b)), by
striking ``Director's'' and inserting
``Administrator's''.
(b) National Flood Insurance Act of 1968.--The National
Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is
amended--
(1) by striking ``Director'' each place that term
appears and inserting ``Administrator'';
(2) in section 1363 (42 U.S.C. 4104), by striking
``Director's'' each place that term appears and
inserting ``Administrator's''; and
(3) in section 1370(a)(9) (42 U.S.C. 4121(a)(9)),
by striking ``the Office of Thrift Supervision,''.
(c) Federal Flood Insurance Act of 1956.--Section 15(e) of
the Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is
amended by striking ``Director'' each place that term appears
and inserting ``Administrator''.
SEC. 100239. USE OF PRIVATE INSURANCE TO SATISFY MANDATORY PURCHASE
REQUIREMENT.
(a) Amendments.--Section 102(b) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(b)) is amended--
(1) in paragraph (1)--
(A) by striking the period at the end and
inserting ``; and'';
(B) by striking ``lending institutions not
to make'' and inserting ``lending
institutions--
``(A) not to make''; and
(C) by adding at the end the following:
``(B) to accept private flood insurance as
satisfaction of the flood insurance coverage
requirement under subparagraph (A) if the
coverage provided by such private flood
insurance meets the requirements for coverage
under such subparagraph.'';
(2) in paragraph (2)--
(A) by striking ``paragraph (1)'' each
place that term appears and inserting
``paragraph (1)(A)''; and
(B) by inserting after the first sentence
the following: ``Each Federal agency lender
shall accept private flood insurance as
satisfaction of the flood insurance coverage
requirement under the preceding sentence if the
flood insurance coverage provided by such
private flood insurance meets the requirements
for coverage under such sentence.'';
(3) in paragraph (3), in the matter following
subparagraph (B), by striking ``paragraph (1).'' and
inserting ``paragraph (1)(A). The Federal National
Mortgage Association and the Federal Home Loan Mortgage
Corporation shall accept private flood insurance as
satisfaction of the flood insurance coverage
requirement under paragraph (1)(A) if the flood
insurance coverage provided by such private flood
insurance meets the requirements for coverage under
such paragraph and any requirements established by the
Federal National Mortgage Association or the Federal
Home Loan Mortgage Corporation, respectively, relating
to the financial solvency, strength, or claims-paying
ability of private insurance companies from which the
Federal National Mortgage Association or the Federal
Home Loan Mortgage Corporation will accept private
flood insurance.''; and
(4) by adding at the end the following:
``(5) Rule of construction.--Nothing in this
subsection shall be construed to supersede or limit the
authority of a Federal entity for lending regulation,
the Federal Housing Finance Agency, a Federal agency
lender, the Federal National Mortgage Association, or
the Federal Home Loan Mortgage Corporation to establish
requirements relating to the financial solvency,
strength, or claims-paying ability of private insurance
companies from which the entity or agency will accept
private flood insurance.
``(6) Notice.--
``(A) In general.--Each lender shall
disclose to a borrower that is subject to this
subsection that--
``(i) flood insurance is available
from private insurance companies that
issue standard flood insurance policies
on behalf of the national flood
insurance program or directly from the
national flood insurance program;
``(ii) flood insurance that
provides the same level of coverage as
a standard flood insurance policy under
the national flood insurance program
may be available from a private
insurance company that issues policies
on behalf of the company; and
``(iii) the borrower is encouraged
to compare the flood insurance
coverage, deductibles, exclusions,
conditions and premiums associated with
flood insurance policies issued on
behalf of the national flood insurance
program and policies issued on behalf
of private insurance companies and to
direct inquiries regarding the
availability, cost, and comparisons of
flood insurance coverage to an
insurance agent.
``(B) Rule of construction.--Nothing in
this paragraph shall be construed as affecting
or otherwise limiting the authority of a
Federal entity for lending regulation to
approve any disclosure made by a regulated
lending institution for purposes of complying
with subparagraph (A).
``(7) Private flood insurance defined.--In this
subsection, the term `private flood insurance' means an
insurance policy that--
``(A) is issued by an insurance company
that is--
``(i) licensed, admitted, or
otherwise approved to engage in the
business of insurance in the State or
jurisdiction in which the insured
building is located, by the insurance
regulator of that State or
jurisdiction; or
``(ii) in the case of a policy of
difference in conditions, multiple
peril, all risk, or other blanket
coverage insuring nonresidential
commercial property, is recognized, or
not disapproved, as a surplus lines
insurer by the insurance regulator of
the State or jurisdiction where the
property to be insured is located;
``(B) provides flood insurance coverage
which is at least as broad as the coverage
provided under a standard flood insurance
policy under the national flood insurance
program, including when considering
deductibles, exclusions, and conditions offered
by the insurer;
``(C) includes--
``(i) a requirement for the insurer
to give 45 days' written notice of
cancellation or non-renewal of flood
insurance coverage to--
``(I) the insured; and
``(II) the regulated
lending institution or Federal
agency lender;
``(ii) information about the
availability of flood insurance
coverage under the national flood
insurance program;
``(iii) a mortgage interest clause
similar to the clause contained in a
standard flood insurance policy under
the national flood insurance program;
and
``(iv) a provision requiring an
insured to file suit not later than 1
year after date of a written denial of
all or part of a claim under the
policy; and
``(D) contains cancellation provisions that
are as restrictive as the provisions contained
in a standard flood insurance policy under the
national flood insurance program.''.
(b) Technical and Conforming Amendment.--Section
1364(a)(3)(C) of the National Flood Insurance Act of 1968 (42
U.S.C. 4104a(a)(3)(C)) is amended by inserting after ``private
insurers'' the following: ``, as required under section
102(b)(6) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(b)(6))''.
SEC. 100240. LEVEES CONSTRUCTED ON CERTAIN PROPERTIES.
(a) Definition.--In this section, the term ``covered hazard
mitigation land'' means land that--
(1) was acquired and deed restricted under section
1366 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104c) during the period beginning on January 1,
1999, and ending December 31, 2011;
(2) is located at--
(A) 1029 Oak Street, Fargo, North Dakota;
(B) 27 South Terrace, Fargo, North Dakota;
(C) 1033 Oak Street, Fargo, North Dakota;
(D) 308 Schnell Drive, Oxbow, North Dakota;
or
(E) 306 Schnell Drive, Oxbow, North Dakota;
and
(3) is located in a community that--
(A) is participating in the National Flood
Insurance Program on the date on which a State,
local, or tribal government submits an
application requesting to construct a permanent
flood risk reduction levee under subsection
(b); and
(B) certifies to the Administrator and the
Chief of Engineers that the community will
continue to participate in the National Flood
Insurance Program.
(b) Authority.--Notwithstanding any other prohibition on
construction on property acquired with funding from the Federal
Emergency Management Agency for conversion to open space
purposes, the Administrator shall allow the construction of a
permanent flood risk reduction levee by a State, local, or
tribal government on covered hazard mitigation land if--
(1) the Administrator and the Chief of Engineers
make a determination that--
(A) construction of the proposed permanent
flood risk reduction levee would more
effectively mitigate against flooding risk than
an open floodplain or other flood risk
reduction measures;
(B) the proposed permanent flood risk
reduction levee complies with Federal, State,
and local requirements, including mitigation of
adverse impacts and implementation of
floodplain management requirements, which shall
include an evaluation of whether the
construction, operation, and maintenance of the
proposed levee--
(i) would continue to meet best
available industry standards and
practices;
(ii) would be the most cost-
effective measure to protect against
the assessed flood risk; and
(iii) minimizes future costs to the
Federal Government;
(C) the State, local, or tribal government
seeking to construct the proposed permanent
flood risk reduction levee has provided an
adequate maintenance plan that documents the
procedures the State, local, or tribal
government will use to ensure that the
stability, height, and overall integrity of the
proposed levee and the structure and systems of
the proposed levee are maintained, including--
(i) specifying the maintenance
activities to be performed;
(ii) specifying the frequency with
which maintenance activities will be
performed;
(iii) specifying the person
responsible for performing each
maintenance activity (by name or
title);
(iv) detailing the plan for
financing the maintenance of the levee;
and
(v) documenting the ability of the
State, local, or tribal government to
finance the maintenance of the levee;
and
(2) before the commencement of construction, the
State, local, or tribal government provides to the
Administrator an amount--
(A) equal to the Federal share of all
project costs previously provided by the
Administrator under the applicable program for
each deed restricted parcel of the covered
hazard mitigation land, which the Administrator
shall deposit in the National Flood Insurance
Fund; and
(B) that does not include any Federal
funds.
(c) Maintenance Certification.--
(1) In general.--A State, local, or tribal
government that constructs a permanent flood risk
reduction levee under subsection (b) shall submit to
the Administrator and the Chief of Engineers an annual
certification indicating whether the State, local, or
tribal government is in compliance with the maintenance
plan provided under subsection (b)(1)(C).
(2) Review.--The Chief of Engineers shall review
each certification submitted under paragraph (1) and
determine whether the State, local, or tribal
government has complied with the maintenance plan.
SEC. 100241. INSURANCE COVERAGE FOR PRIVATE PROPERTIES AFFECTED BY
FLOODING FROM FEDERAL LANDS.
Section 1306(c)(2) of the National Flood Insurance Act of
1968 (42 U.S.C. 4013(c)(2)) is amended--
(1) in subparagraph (A), by striking ``or'' at the
end;
(2) in subparagraph (B), by striking the period at
the end and inserting ``; or''; and
(3) by adding at the end the following:
``(C) the initial purchase of flood
insurance coverage for private property if--
``(i) the Administrator determines
that the property is affected by
flooding on Federal land that is a
result of, or is exacerbated by, post-
wildfire conditions, after consultation
with an authorized employee of the
Federal agency that has jurisdiction of
the land on which the wildfire that
caused the post-wildfire conditions
occurred; and
``(ii) the flood insurance coverage
was purchased not later than 60 days
after the fire containment date, as
determined by the appropriate Federal
employee, relating to the wildfire that
caused the post-wildfire conditions
described in clause (i).''.
SEC. 100242. PERMISSIBLE LAND USE UNDER FEDERAL FLOOD INSURANCE PLAN.
Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) is amended by adding at the end the
following:
``SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE
SEASON.
``(a) In General.--Notwithstanding any other provision of
law, including the adequate land use and control measures
developed pursuant to section 1361 and applicable to non-one-
and two-family structures located within coastal areas, as
identified by the Administrator, the following may be
permitted:
``(1) Nonsupporting breakaway walls in the space
below the lowest elevated floor of a building, if the
space is used solely for a swimming pool between
November 30 and June 1 of any year, in an area
designated as Zone V on a flood insurance rate map.
``(2) Openings in walls in the space below the
lowest elevated floor of a building, if the space is
used solely for a swimming pool between November 30 and
June 1 of any year, in an area designated as Zone A on
a flood insurance rate map.
``(b) Rule of Construction.--Nothing in subsection (a)
shall be construed to alter the terms and conditions of
eligibility and insurability of coverage for a building under
the standard flood insurance policy under the national flood
insurance program.''.
SEC. 100243. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH ACTIVITIES
AND COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.
(a) Amendments.--Section 105(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)) is
amended--
(1) by redesignating paragraph (25) as paragraph
(26);
(2) by redesignating the second paragraph
designated as paragraph (24) (relating to tornado-safe
shelters) as paragraph (25);
(3) in paragraph (24) (relating to homeownership
among persons with low and moderate income), by
striking ``and'' at the end;
(4) in paragraph (25), as so redesignated, by
striking ``and'' at the end;
(5) in paragraph (26), as so redesignated, by
striking the period at the end and inserting a
semicolon; and
(6) by adding at the end the following new
paragraphs:
``(27) supplementing existing State or local
funding for administration of building code enforcement
by local building code enforcement departments,
including for increasing staffing, providing staff
training, increasing staff competence and professional
qualifications, and supporting individual certification
or departmental accreditation, and for capital
expenditures specifically dedicated to the
administration of the building code enforcement
department, except that, to be eligible to use amounts
as provided in this paragraph--
``(A) a building code enforcement
department shall provide matching, non-Federal
funds to be used in conjunction with amounts
used under this paragraph in an amount--
``(i) in the case of a building
code enforcement department serving an
area with a population of more than
50,000, equal to not less than 50
percent of the total amount of any
funds made available under this title
that are used under this paragraph;
``(ii) in the case of a building
code enforcement department serving an
area with a population of between
20,001 and 50,000, equal to not less
than 25 percent of the total amount of
any funds made available under this
title that are used under this
paragraph; and
``(iii) in the case of a building
code enforcement department serving an
area with a population of less than
20,000, equal to not less than 12.5
percent of the total amount of any
funds made available under this title
that are used under this paragraph,
except that the Secretary may waive the
matching fund requirements under this
subparagraph, in whole or in part, based upon
the level of economic distress of the
jurisdiction in which is located the local
building code enforcement department that is
using amounts for purposes under this
paragraph, and shall waive such matching fund
requirements in whole for any recipient
jurisdiction that has dedicated all building
code permitting fees to the conduct of local
building code enforcement; and
``(B) any building code enforcement
department using funds made available under
this title for purposes under this paragraph
shall empanel a code administration and
enforcement team consisting of at least 1 full-
time building code enforcement officer, a city
planner, and a health planner or similar
officer; and
``(28) provision of assistance to local
governmental agencies responsible for floodplain
management activities (including such agencies of
Indians tribes, as such term is defined in section 4 of
the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103)) in
communities that participate in the national flood
insurance program under the National Flood Insurance
Act of 1968 (42 U.S.C. 4001 et seq.), only for carrying
out outreach activities to encourage and facilitate the
purchase of flood insurance protection under such Act
by owners and renters of properties in such communities
and to promote educational activities that increase
awareness of flood risk reduction; except that--
``(A) amounts used as provided under this
paragraph shall be used only for activities
designed to--
``(i) identify owners and renters
of properties in communities that
participate in the national flood
insurance program, including owners of
residential and commercial properties;
``(ii) notify such owners and
renters when their properties become
included in, or when they are excluded
from, an area having special flood
hazards and the effect of such
inclusion or exclusion on the
applicability of the mandatory flood
insurance purchase requirement under
section 102 of the Flood Disaster
Protection Act of 1973 (42 U.S.C.
4012a) to such properties;
``(iii) educate such owners and
renters regarding the flood risk and
reduction of this risk in their
community, including the continued
flood risks to areas that are no longer
subject to the flood insurance
mandatory purchase requirement;
``(iv) educate such owners and
renters regarding the benefits and
costs of maintaining or acquiring flood
insurance, including, where applicable,
lower-cost preferred risk policies
under this title for such properties
and the contents of such properties;
``(v) encourage such owners and
renters to maintain or acquire such
coverage;
``(vi) notify such owners of where
to obtain information regarding how to
obtain such coverage, including a
telephone number, mailing address, and
Internet site of the Administrator of
the Federal Emergency Management Agency
(in this paragraph referred to as the
`Administrator') where such information
is available; and
``(vii) educate local real estate
agents in communities participating in
the national flood insurance program
regarding the program and the
availability of coverage under the
program for owners and renters of
properties in such communities, and
establish coordination and liaisons
with such real estate agents to
facilitate purchase of coverage under
the National Flood Insurance Act of
1968 and increase awareness of flood
risk reduction;
``(B) in any fiscal year, a local
governmental agency may not use an amount under
this paragraph that exceeds 3 times the amount
that the agency certifies, as the Secretary, in
consultation with the Administrator, shall
require, that the agency will contribute from
non-Federal funds to be used with such amounts
used under this paragraph only for carrying out
activities described in subparagraph (A); and
for purposes of this subparagraph, the term
`non-Federal funds' includes State or local
government agency amounts, in-kind
contributions, any salary paid to staff to
carry out the eligible activities of the local
governmental agency involved, the value of the
time and services contributed by volunteers to
carry out such services (at a rate determined
by the Secretary), and the value of any donated
material or building and the value of any lease
on a building;
``(C) a local governmental agency that uses
amounts as provided under this paragraph may
coordinate or contract with other agencies and
entities having particular capacities,
specialties, or experience with respect to
certain populations or constituencies,
including elderly or disabled families or
persons, to carry out activities described in
subparagraph (A) with respect to such
populations or constituencies; and
``(D) each local government agency that
uses amounts as provided under this paragraph
shall submit a report to the Secretary and the
Administrator, not later than 12 months after
such amounts are first received, which shall
include such information as the Secretary and
the Administrator jointly consider appropriate
to describe the activities conducted using such
amounts and the effect of such activities on
the retention or acquisition of flood insurance
coverage.''.
(b) Sunset.--Effective on the date that is 2 years after
the date of enactment of this Act, section 105(a) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5305(a)) is amended--
(1) in paragraph (25), as so redesignated by
subsection (a) of this subsection, by adding ``and'' at
the end;
(2) in paragraph (26), as so redesignated by
subsection (a) of this subsection, by striking the
semicolon at the end and inserting a period; and
(3) by striking paragraphs (27) and (28), as added
by subsection (a) of this subsection.
SEC. 100244. TERMINATION OF FORCE-PLACED INSURANCE.
(a) In General.--Section 102(e) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(e)) is amended--
(1) in paragraph (2), by striking ``purchasing the
insurance'' and inserting ``purchasing the insurance,
including premiums or fees incurred for coverage
beginning on the date on which flood insurance coverage
lapsed or did not provide a sufficient coverage
amount'';
(2) by redesignating paragraphs (3) and (4) as
paragraphs (5) and (6), respectively; and
(3) by inserting after paragraph (2) the following
new paragraphs:
``(3) Termination of force-placed insurance.--
Within 30 days of receipt by the lender or servicer of
a confirmation of a borrower's existing flood insurance
coverage, the lender or servicer shall--
``(A) terminate any insurance purchased by
the lender or servicer under paragraph (2); and
``(B) refund to the borrower all premiums
paid by the borrower for any insurance
purchased by the lender or servicer under
paragraph (2) during any period during which
the borrower's flood insurance coverage and the
insurance coverage purchased by the lender or
servicer were each in effect, and any related
fees charged to the borrower with respect to
the insurance purchased by the lender or
servicer during such period.
``(4) Sufficiency of demonstration.--For purposes
of confirming a borrower's existing flood insurance
coverage, a lender or servicer for a loan shall accept
from the borrower an insurance policy declarations page
that includes the existing flood insurance policy
number and the identity of, and contact information
for, the insurance company or agent.''.
SEC. 100245. FEMA AUTHORITY ON TRANSFER OF POLICIES.
Section 1345 of the National Flood Insurance Act of 1968
(42 U.S.C. 4081) is amended by adding at the end the following
new subsection:
``(d) FEMA Authority on Transfer of Policies.--
Notwithstanding any other provision of this title, the
Administrator may, at the discretion of the Administrator,
refuse to accept the transfer of the administration of policies
for coverage under the flood insurance program under this title
that are written and administered by any insurance company or
other insurer, or any insurance agent or broker.''.
SEC. 100246. REIMBURSEMENT OF CERTAIN EXPENSES.
Section 1363 of the National Flood Insurance Act of 1968
(42 U.S.C. 4104) is amended by striking subsection (f) and
inserting the following:
``(f) Reimbursement of Certain Expenses.--When, incident to
any appeal under subsection (b) or (c) of this section, the
owner or lessee of real property or the community, as the case
may be, incurs expense in connection with the services of
surveyors, engineers, or similar services, but not including
legal services, in the effecting of an appeal based on a
scientific or technical error on the part of the Federal
Emergency Management Agency, which is successful in whole or
part, the Administrator shall reimburse such individual or
community to an extent measured by the ratio of the successful
portion of the appeal as compared to the entire appeal and
applying such ratio to the reasonable value of all such
services, but no reimbursement shall be made by the
Administrator in respect to any fee or expense payment, the
payment of which was agreed to be contingent upon the result of
the appeal. The amounts available for implementing this
subsection shall not exceed $250,000. The Administrator shall
promulgate regulations to carry out this subsection.''.
SEC. 100247. FIO STUDY ON RISKS, HAZARDS, AND INSURANCE.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Director of the Federal Insurance
Office shall conduct a study and submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
a report providing an assessment of the current state of the
market for natural catastrophe insurance in the United States.
(b) Factors.--The study and report required under
subsection (a) shall assess--
(1) the current condition of, as well as the
outlook for, the availability and affordability of
insurance for natural catastrophe perils in all regions
of the United States;
(2) the current ability of States, communities, and
individuals to mitigate their natural catastrophe
risks, including the affordability and feasibility of
such mitigation activities;
(3) the current state of catastrophic insurance and
reinsurance markets and the current approaches in
providing insurance protection to different sectors of
the population of the United States;
(4) the current financial condition of State
residual markets and catastrophe funds in high-risk
regions, including the likelihood of insolvency
following a natural catastrophe, the concentration of
risks within such funds, the reliance on post-event
assessments and State funding, and the adequacy of
rates; and
(5) the current role of the Federal Government and
State and local governments in providing incentives for
feasible risk mitigation efforts and the cost of
providing post-natural catastrophe aid in the absence
of insurance.
(c) Additional Factors.--The study and report required
under subsection (a) shall also contain an assessment of
current approaches to insuring natural catastrophe risks in the
United States and such other information as the Director of the
Federal Insurance Office determines necessary or appropriate.
(d) Consultation.--In carrying out the study and report
under subsection (a), the Director of the Federal Insurance
Office shall consult with the National Academy of Sciences,
State insurance regulators, consumer organizations,
representatives of the insurance and reinsurance industry,
policyholders, and other organizations and experts, as
appropriate.
SEC. 100248. FLOOD PROTECTION IMPROVEMENTS CONSTRUCTED ON CERTAIN
PROPERTIES.
(a) Definition.--In this section, the term ``covered hazard
mitigation land'' means land that--
(1) was acquired and deed restricted under section
1366 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104c) during the period beginning on March 1,
2008, and ending on December 31, 2008;
(2) is located at--
(A) 809 East Main Cross Street, Findlay,
Ohio, 45840;
(B) 801 East Main Cross Street, Findlay,
Ohio, 45840;
(C) 725 East Main Cross Street, Findlay,
Ohio, 45840; or
(D) 631 East Main Cross Street, Findlay,
Ohio, 45840; and
(3) is located in a community that--
(A) is participating in the National Flood
Insurance Program on the date on which a State,
local, or tribal government submits an
application requesting to construct a flood
protection improvement under subsection (b);
and
(B) certifies to the Administrator and the
Chief of Engineers that the community will
continue to participate in the National Flood
Insurance Program.
(b) Authority.--Notwithstanding any other prohibition on
construction on property acquired with funding from the Federal
Emergency Management Agency for conversion to open space
purposes, the Administrator shall allow the construction of a
flood protection improvement by a State, local, or tribal
government on covered hazard mitigation land if--
(1) the Administrator and the Chief of Engineers
make a determination that--
(A) construction of the proposed flood
protection improvement would more effectively
mitigate against flooding risk than an open
floodplain or other flood risk reduction
measures;
(B) the proposed flood protection
improvement complies with Federal, State, and
local requirements, including mitigation of
adverse impacts and implementation of
floodplain management requirements, which shall
include an evaluation of whether the
construction, operation, and maintenance of the
proposed flood protection improvement--
(i) would continue to meet best
available industry standards and
practices;
(ii) would be the most cost-
effective measure to protect against
the assessed flood risk; and
(iii) minimizes future costs to the
Federal Government;
(C) the State, local, or tribal government
seeking to construct the flood protection
improvement has provided an adequate
maintenance plan that documents the procedures
the State, local, or tribal government will use
to ensure that the stability, height, and
overall integrity of the proposed flood
protection improvement and the structure and
systems of the proposed flood protection
improvement are maintained, including--
(i) specifying the maintenance
activities to be performed;
(ii) specifying the frequency with
which maintenance activities will be
performed;
(iii) specifying the person
responsible for performing each
maintenance activity (by name or
title);
(iv) detailing the plan for
financing the maintenance of the flood
protection improvement; and
(v) documenting the ability of the
State, local, or tribal government to
finance the maintenance of the flood
protection improvement; and
(2) before the commencement of construction, the
State, local, or tribal government provides to the
Administrator an amount--
(A) equal to the Federal share of all
project costs previously provided by the
Administrator under the applicable program for
each deed restricted parcel of the covered
hazard mitigation land, which the Administrator
shall deposit in the National Flood Insurance
Fund; and
(B) that does not include any Federal
funds.
(c) Maintenance Certification.--
(1) In general.--A State, local, or tribal
government that constructs a flood protection
improvement under subsection (b) shall submit to the
Administrator and the Chief of Engineers an annual
certification indicating whether the State, local, or
tribal government is in compliance with the maintenance
plan provided under subsection (b)(1)(C).
(2) Review.--The Chief of Engineers shall review
each certification submitted under paragraph (1) and
determine whether the State, local, or tribal
government has complied with the maintenance plan.
SEC. 100249. NO CAUSE OF ACTION.
No cause of action shall exist and no claim may be brought
against the United States for violation of any notification
requirement imposed upon the United States by this subtitle or
any amendment made by this subtitle.
Subtitle B--Alternative Loss Allocation
SEC. 100251. SHORT TITLE.
This subtitle may be cited as the ``Consumer Option for an
Alternative System to Allocate Losses Act of 2012'' or the
``COASTAL Act of 2012''.
SEC. 100252. ASSESSING AND MODELING NAMED STORMS OVER COASTAL STATES.
Subtitle C of title XII of the Omnibus Public Land
Management Act of 2009 (33 U.S.C. 3601 et seq.) (also known as
the ``Integrated Coastal and Ocean Observation System Act of
2009'') is amended by adding at the end the following:
``SEC. 12312. ASSESSING AND MODELING NAMED STORMS OVER COASTAL STATES.
``(a) Definitions.--In this section:
``(1) COASTAL formula.--The term `COASTAL Formula'
has the meaning given the term in section 1337(a) of
the National Flood Insurance Act of 1968.
``(2) Coastal state.--The term `coastal State' has
the meaning given the term `coastal state' in section
304 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453).
``(3) Coastal waters.--The term `coastal waters'
has the meaning given the term in such section.
``(4) Covered data.--The term `covered data' means,
with respect to a named storm identified by the
Administrator under subsection (b)(2)(A), empirical
data that are--
``(A) collected before, during, or after
such storm; and
``(B) necessary to determine magnitude and
timing of wind speeds, rainfall, the barometric
pressure, river flows, the extent, height, and
timing of storm surge, topographic and
bathymetric data, and other measures required
to accurately model and assess damage from such
storm.
``(5) Indeterminate loss.--The term `indeterminate
loss' has the meaning given the term in section 1337(a)
of the National Flood Insurance Act of 1968.
``(6) Named storm.--The term `named storm' means
any organized weather system with a defined surface
circulation and maximum winds of at least 39 miles per
hour which the National Hurricane Center of the United
States National Weather Service names as a tropical
storm or a hurricane.
``(7) Named storm event model.--The term `Named
Storm Event Model' means the official meteorological
and oceanographic computerized model, developed by the
Administrator under subsection (b)(1)(A), which
utilizes covered data to replicate the magnitude,
timing, and spatial variations of winds, rainfall, and
storm surges associated with named storms that threaten
any portion of a coastal State.
``(8) Participant.--The term `participant' means a
Federal, State, or private entity that chooses to
cooperate with the Administrator in carrying out the
provisions of this section by collecting, contributing,
and maintaining covered data.
``(9) Post-storm assessment.--The term `post-storm
assessment' means a scientific assessment produced and
certified by the Administrator to determine the
magnitude, timing, and spatial variations of winds,
rainfall, and storm surges associated with a specific
named storm to be used in the COASTAL Formula.
``(10) State.--The term `State' means a State of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
``(b) Named Storm Event Model and Post-storm Assessment.--
``(1) Establishment of named storm event model.--
``(A) In general.--Not later than 540 days
after the date of the enactment of the Consumer
Option for an Alternative System to Allocate
Losses Act of 2012, the Administrator shall
develop by regulation the Named Storm Event
Model.
``(B) Accuracy.--The Named Storm Event
Model shall be designed to generate post-storm
assessments, as provided in paragraph (2), that
have a degree of accuracy of not less than 90
percent for every indeterminate loss for which
a post-storm assessment is utilized.
``(2) Post-storm assessment.--
``(A) Identification of named storms
threatening coastal states.--After the
establishment of the COASTAL Formula, the
Administrator shall, in consultation with the
Secretary of Homeland Security, identify named
storms that may reasonably constitute a threat
to any portion of a coastal State.
``(B) Post-storm assessment required.--Upon
identification of a named storm under
subparagraph (A), the Administrator shall
develop a post-storm assessment for such named
storm using the Named Storm Event Model and
covered data collected for such named storm
pursuant to the protocol established under
subsection (c)(1).
``(C) Submittal of post-storm assessment.--
Not later than 90 days after an identification
of a named storm is made under subparagraph
(A), the Administrator shall submit to the
Secretary of Homeland Security the post-storm
assessment developed for such storm under
subparagraph (B).
``(3) Accuracy.--The Administrator shall ensure, to
the greatest extent practicable, that each post-storm
assessment developed under paragraph (2) has a degree
of accuracy of not less than 90 percent.
``(4) Certification.--For each post-storm
assessment carried out under paragraph (2), the
Administrator shall--
``(A) certify the degree of accuracy for
such assessment, including specific reference
to any segments or geographic areas for which
the assessment is less than 90 percent
accurate; and
``(B) report such certification to the
Secretary of Homeland Security for the purposes
of use with indeterminate loss claims under
section 1337 of the National Flood Insurance
Act of 1968.
``(5) Finality of determinations.--A certification
of the degree of accuracy of a post-storm assessment
under this subsection by the Administrator shall be
final and shall not be subject to judicial review.
``(6) Availability.--The Administrator shall make
available to the public the Named Storm Event Model and
any post-storm assessment developed under this
subsection.
``(c) Establishment of a Protocol for Post-storm
Assessment.--
``(1) In general.--Not later than 540 days after
the date of the enactment of the Consumer Option for an
Alternative System to Allocate Losses Act of 2012, the
Administrator shall establish a protocol, based on the
plan submitted under subsection (d)(3), to collect and
assemble all covered data required by the Administrator
to produce post-storm assessments required by
subsection (b), including assembling data collected by
participants and stored in the database established
under subsection (f) and from such other sources as the
Administrator considers appropriate.
``(2) Acquisition of sensors and structures.--If
the Administrator is unable to use a public or private
asset to obtain covered data as part of the protocol
established under paragraph (1), the Administrator may
acquire such sensors and structures for the placement
of sensors as may be necessary to obtain such data.
``(3) Use of federal assets.--If the protocol
requires placement of a sensor to develop assessments
pursuant to subsection (b), the Administrator shall, to
the extent practicable, use Federal assets for the
placement of such sensors.
``(4) Use of acquired structures.--
``(A) In general.--If the Administrator
acquires a structure for the placement of a
sensor for purposes of such protocol, the
Administrator shall to the extent practical
permit other public and private entities to
place sensors on such structure to collect--
``(i) meteorological data;
``(ii) national security-related
data;
``(iii) navigation-related data;
``(iv) hydrographic data; or
``(v) such other data as the
Administrator considers appropriate.
``(B) Receipt of consideration.--The
Administrator may receive consideration for the
placement of a sensor on a structure under
subparagraph (A).
``(C) In-kind consideration.--Consideration
received under subparagraph (B) may be received
in-kind.
``(D) Use of consideration.--To the extent
practicable, consideration received under
subparagraph (B) shall be used for the
maintenance of sensors used to collect covered
data.
``(5) Coordinated deployments and data collection
practices.--The Administrator shall, in consultation
with the Office of the Federal Coordinator for
Meteorology, coordinate the deployment of sensors as
part of the protocol established under paragraph (1)
and related data collection carried out by Federal,
State, academic, and private entities who choose to
cooperate with the Administrator in carrying out this
subsection.
``(6) Priority acquisition and deployment.--The
Administrator shall give priority in the acquisition
for and deployment of sensors under the protocol
required by paragraph (1) to areas of coastal States
that have the highest risk of being harmed by named
storms.
``(d) Assessment of Systems and Efforts to Collect Covered
Data.--
``(1) Identification of systems and efforts to
collect covered data.--Not later than 180 days after
the date of the enactment of the Consumer Option for an
Alternative System to Allocate Losses Act of 2012, the
Administrator shall, in consultation with the Office of
the Federal Coordinator for Meteorology--
``(A) carry out a survey to identify all
Federal and State efforts and systems that are
capable of collecting covered data; and
``(B) consult with private and academic
sector entities to identify domestic private
and academic systems that are capable of
collecting covered data.
``(2) Identification of gaps.--The Administrator
shall, in consultation with the Office of the Federal
Coordinator for Meteorology and individuals and
entities consulted under subsection (e)(3), assess the
systems identified under paragraph (1) and identify
which systems meet the needs of the National Oceanic
and Atmospheric Administration for the collection of
covered data, including with respect to the accuracy
requirement for post-storm assessment under subsection
(b)(3).
``(3) Plan.--Not later than 270 days after the date
of the enactment of the Consumer Option for an
Alternative System to Allocate Losses Act of 2012, the
Administrator shall, in consultation with the Office of
the Federal Coordinator for Meteorology, submit to
Congress a plan for the collection of covered data
necessary to develop the Named Storm Event Model and
post-storm assessment required by subsection (b) that
addresses any gaps identified in paragraph (2).
``(e) Coordination of Covered Data Collection and
Maintenance by Participants.--
``(1) In general.--The Administrator shall, in
consultation with the Office of the Federal Coordinator
for Meteorology, coordinate the collection and
maintenance of covered data by participants under this
section--
``(A) to streamline the process of
collecting covered data in accordance with the
protocol established under subsection (c)(1);
and
``(B) to maintain transparency of such
process and the database established under
subsection (f).
``(2) Sharing information.--The Administrator shall
establish a process for sharing among participants
information relevant to collecting and using covered
data for--
``(A) academic research;
``(B) private sector use;
``(C) public outreach; and
``(D) such other purposes as the
Administrator considers appropriate.
``(3) Consultation.--In carrying out paragraphs (1)
and (2), the Administrator shall consult with the
following:
``(A) The Commanding General of the Corps
of Engineers.
``(B) The Administrator of the Federal
Emergency Management Agency.
``(C) The Commandant of the Coast Guard.
``(D) The Director of the United States
Geological Survey.
``(E) The Office of the Federal Coordinator
for Meteorology.
``(F) The Director of the National Science
Foundation.
``(G) The Administrator of the National
Aeronautics and Space Administration.
``(H) Such public, private, and academic
sector entities as the Administrator considers
appropriate for purposes of carrying out the
provisions of this section.
``(f) Establishment of Coastal Wind and Water Event
Database.--
``(1) In general.--Not later than 1 year after the
date of the enactment of the Consumer Option for an
Alternative System to Allocate Losses Act of 2012, the
Administrator shall establish a database for the
collection and compilation of covered data--
``(A) to support the protocol established
under subsection (c)(1); and
``(B) for the purposes listed in subsection
(e)(2).
``(2) Designation.--The database established under
paragraph (1) shall be known as the `Coastal Wind and
Water Event Database'.
``(g) Comptroller General Study.--Not later than 1 year
after the date of the enactment of the Consumer Option for an
Alternative System to Allocate Losses Act of 2012, the
Comptroller General of the United States shall--
``(1) complete an audit of Federal efforts to
collect covered data for purposes of the Consumer
Option for an Alternative System to Allocate Losses Act
of 2012, which audit shall--
``(A) examine duplicated Federal efforts to
collect covered data; and
``(B) determine the cost effectiveness of
such efforts; and
``(2) submit to the Committee on Banking, Housing,
and Urban Affairs and the Commerce, Science, and
Transportation of the Senate and the Committee on
Financial Services and the Committee on Science, Space,
and Technology of the House of Representatives a report
on the findings of the Comptroller General with respect
to the audit completed under paragraph (1).''.
SEC. 100253. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE
CLAIMS.
Part A of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4051 et seq.) is amended by adding at the end
the following:
``SEC. 1337. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE
CLAIMS.
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator'
means the Administrator of the Federal Emergency
Management Agency.
``(2) COASTAL formula.--The term `COASTAL Formula'
means the formula established under subsection (b).
``(3) Coastal state.--The term `coastal State' has
the meaning given the term `coastal state' in section
304 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453).
``(4) Indeterminate loss.--
``(A) In general.--The term `indeterminate
loss' means, as determined by an insurance
claims adjuster certified under the national
flood insurance program and in consultation
with an engineer as appropriate, a loss
resulting from physical damage to, or loss of,
property located in any coastal State arising
from the combined perils of flood and wind
associated with a named storm.
``(B) Requirements.--An insurance claims
adjuster certified under the national flood
insurance program shall only determine that a
loss is an indeterminate loss if the claims
adjuster determines that--
``(i) no material remnant of
physical buildings or man-made
structures remain except building
foundations for the specific property
for which the claim is made; and
``(ii) there is insufficient or no
tangible evidence created, yielded, or
otherwise left behind of the specific
property for which the claim is made as
a result of the named storm.
``(5) Named storm.--The term `named storm' means
any organized weather system with a defined surface
circulation and maximum winds of not less than 39 miles
per hour which the National Hurricane Center of the
United States National Weather Service names as a
tropical storm or a hurricane.
``(6) Post-storm assessment.--The term `post-storm
assessment' means the post-storm assessment developed
under section 12312(b) of the Omnibus Public Land
Management Act of 2009.
``(7) State.--The term `State' means a State of the
United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
``(8) Secretary.--The term `Secretary' means the
Secretary of Homeland Security.
``(9) Standard insurance policy.--The term
`standard insurance policy' means any insurance policy
issued under the national flood insurance program that
covers loss or damage to property resulting from water
peril.
``(10) Property.--The term `property' means real or
personal property that is insured under a standard
insurance policy for loss or damage to structure or
contents.
``(11) Under secretary.--The term `Under Secretary'
means the Under Secretary of Commerce for Oceans and
Atmosphere, in the Under Secretary's capacity as
Administrator of the National Oceanic and Atmospheric
Administration.
``(b) Establishment of Flood Loss Allocation Formula for
Indeterminate Claims.--
``(1) In general.--Not later than 180 days after
the date on which the protocol is established under
section 12312(c)(1) of the Omnibus Public Land
Management Act of 2009, the Secretary, acting through
the Administrator and in consultation with the Under
Secretary, shall establish by rule a standard formula
to determine and allocate wind losses and flood losses
for claims involving indeterminate losses.
``(2) Contents.--The standard formula established
under paragraph (1) shall--
``(A) incorporate data available from the
Coastal Wind and Water Event Database
established under section 12312(f) of the
Omnibus Public Land Management Act of 2009;
``(B) use relevant data provided on the
National Flood Insurance Program Elevation
Certificate for each indeterminate loss for
which the formula is used;
``(C) consider any sufficient and credible
evidence, approved by the Administrator, of the
pre-event condition of a specific property,
including the findings of any policyholder or
insurance claims adjuster in connection with
the indeterminate loss to that specific
property;
``(D) include other measures, as the
Administrator considers appropriate, required
to determine and allocate by mathematical
formula the property damage caused by flood or
storm surge associated with a named storm; and
``(E) subject to paragraph (3), for each
indeterminate loss, use the post-storm
assessment to allocate water damage (flood or
storm surge) associated with a named storm.
``(3) Degree of accuracy required.--The standard
formula established under paragraph (1) shall specify
that the Administrator may only use the post-storm
assessment for purposes of the formula if the Under
Secretary certifies that the post-storm assessment has
a degree of accuracy of not less than 90 percent in
connection with the specific indeterminate loss for
which the assessment and formula are used.
``(c) Authorized Use of Post-storm Assessment and COASTAL
Formula.--
``(1) In general.--Subject to paragraph (3), the
Administrator may use the post-storm assessment and the
COASTAL Formula to--
``(A) review flood loss payments for
indeterminate losses, including as part of the
quality assurance reinspection program of the
Federal Emergency Management Agency for claims
under the national flood insurance program and
any other process approved by the Administrator
to review and validate payments under the
national flood insurance program for
indeterminate losses following a named storm;
and
``(B) assist the national flood insurance
program to--
``(i) properly cover qualified
flood loss for claims for indeterminate
losses; and
``(ii) avoid paying for any loss or
damage to property caused by any peril
(including wind), other than flood or
storm surge, that is not covered under
a standard policy under the national
flood insurance program.
``(2) Federal disaster declaration.--Subject to
paragraph (3), in order to expedite claims and reduce
costs to the national flood insurance program,
following any major disaster declared by the President
under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5170)
relating to a named storm in a coastal State, the
Administrator may use the COASTAL Formula to determine
and pay for any flood loss covered under a standard
insurance policy under the national flood insurance
program, if the loss is an indeterminate loss.
``(3) National academy of sciences evaluation.--
``(A) Evaluation required.--
``(i) Evaluation.--Upon the
issuance of the rule establishing the
COASTAL Formula, and each time the
Administrator modifies the COASTAL
Formula, the National Academy of
Sciences shall--
``(I) evaluate the expected
financial impact on the
national flood insurance
program of the use of the
COASTAL Formula as so
established or modified; and
``(II) evaluate the
validity of the scientific
assumptions upon which the
formula is based and determine
whether the COASTAL formula can
achieve a degree of accuracy of
not less than 90 percent in
allocating flood losses for
indeterminate losses.
``(ii) Report.--The National
Academy of Sciences shall submit a
report containing the results of each
evaluation under clause (i) to the
Administrator, the Committee on
Banking, Housing, and Urban Affairs and
the Committee on Commerce, Science, and
Transportation of the Senate, and the
Committee on Financial Services and the
Committee on Science, Space, and
Technology of the House of
Representatives.
``(B) Effective date and applicability.--
``(i) Effective date.--Paragraphs
(1) and (2) of this subsection shall
not take effect unless the report under
subparagraph (A) relating to the
establishment of the COASTAL Formula
concludes that the use of the COASTAL
Formula for purposes of paragraph (1)
and (2) would not have an adverse
financial impact on the national flood
insurance program and that the COASTAL
Formula is based on valid scientific
assumptions that would allow a degree
of accuracy of not less than 90 percent
to be achieved in allocating flood
losses for indeterminate losses.
``(ii) Effect of modifications.--
Unless the report under subparagraph
(A) relating to a modification of the
COASTAL Formula concludes that the use
of the COASTAL Formula, as so modified,
for purposes of paragraphs (1) and (2)
would not have an adverse financial
impact on the national flood insurance
program and that the COASTAL Formula is
based on valid scientific assumptions
that would allow a degree of accuracy
of not less than 90 percent to be
achieved in allocating flood losses for
indeterminate losses the Administrator
may not use the COASTAL Formula, as so
modified, for purposes of paragraphs
(1) and (2).
``(C) Funding.--Notwithstanding section
1310 of the National Flood Insurance Act of
1968 (42 U.S.C. 4017), there shall be available
to the Administrator from the National Flood
Insurance Fund, of amounts not otherwise
obligated, not more than $750,000 to carry out
this paragraph.
``(d) Disclosure of COASTAL Formula.--Not later than 30
days after the date on which a post-storm assessment is
submitted to the Secretary under section 12312(b)(2)(C) of the
Omnibus Public Land Management Act of 2009, for each
indeterminate loss for which the COASTAL Formula is used
pursuant to subsection (c)(2), the Administrator shall disclose
to the policyholder that makes a claim relating to the
indeterminate loss--
``(1) that the Administrator used the COASTAL
Formula with respect to the indeterminate loss; and
``(2) a summary of the results of the use of the
COASTAL Formula.
``(e) Consultation.--In carrying out subsections (b) and
(c), the Secretary shall consult with--
``(1) the Under Secretary for Oceans and
Atmosphere;
``(2) the Director of the National Institute of
Standards and Technology;
``(3) the Chief of Engineers of the Corps of
Engineers;
``(4) the Director of the United States Geological
Survey;
``(5) the Office of the Federal Coordinator for
Meteorology;
``(6) State insurance regulators of coastal States;
and
``(7) such public, private, and academic sector
entities as the Secretary considers appropriate for
purposes of carrying out such subsections.
``(f) Recordkeeping.--Each consideration and measure the
Administrator determines necessary to carry out subsection (b)
may be required, with advanced approval of the Administrator,
to be provided for on the National Flood Insurance Program
Elevation Certificate, or maintained otherwise on record if
approved by the Administrator, for any property that qualifies
for the COASTAL Formula under subsection (c).
``(g) Civil Penalty.--
``(1) In general.--If an insurance claims adjuster
knowingly and willfully makes a false or inaccurate
determination relating to an indeterminate loss, the
Administrator may, after notice and opportunity for
hearing, impose on the insurance claims adjuster a
civil penalty of not more than $1,000.
``(2) Deposit.--Notwithstanding section 3302 of
title 31, United States Code, or any other law relating
to the crediting of money, the Administrator shall
deposit in the National Flood Insurance Fund any
amounts received under this subsection, which shall
remain available until expended and be available to the
Administrator for purposes authorized for the National
Flood Insurance Fund without further appropriation.
``(h) Rule of Construction.--Nothing in this subsection
shall be construed to require the Administrator to make any
payment under the national flood insurance program, or an
insurance company to make any payment, for an indeterminate
loss based upon post-storm assessment or the COASTAL Formula.
``(i) Applicability.--Subsection (c) shall apply with
respect to an indeterminate loss associated with a named storm
that occurs after the date on which the Administrator issues
the rule establishing the COASTAL Formula under subsection (b).
``(j) Rule of Construction.--Nothing in this subsection
shall be construed to negate, set aside, or void any policy
limit, including any loss limitation, set forth in a standard
insurance policy.''.
Subtitle C--HEARTH Act Amendment
SEC. 100261. HEARTH ACT TECHNICAL CORRECTIONS.
For purposes of title IV of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360 et seq.)--
(1) the term ``local government'' includes an
instrumentality of a unit of general purpose local
government other than a public housing agency that is
established pursuant to legislation and designated by
the chief executive to act on behalf of the local
government with regard to activities funded under such
title IV and includes a combination of general purpose
local governments, such as an association of
governments, that is recognized by the Secretary of
Housing and Urban Development;
(2) the term ``State'' includes any instrumentality
of any of the several States designated by the Governor
to act on behalf of the State and does not include the
District of Columbia;
(3) for purposes of environmental review, the
Secretary of Housing and Urban Development shall
continue to permit assistance and projects to be
treated as assistance for special projects that are
subject to section 305(c) of the Multifamily Housing
Property Disposition Reform Act of 1994 (42 U.S.C.
3547), and subject to the regulations issued by the
Secretary of Housing and Urban Development to implement
such section; and
(4) a metropolitan city and an urban county that
each receive an allocation under such title IV and are
located within a geographic area that is covered by a
single continuum of care may jointly request the
Secretary of Housing and Urban Development to permit
the urban county or the metropolitan city, as agreed to
by such county and city, to receive and administer
their combined allocations under a single grant.
TITLE III--STUDENT LOAN INTEREST RATE EXTENSION
SEC. 100301. FEDERAL DIRECT STAFFORD LOAN INTEREST RATE EXTENSION.
Section 455(b)(7)(D) of the Higher Education Act of 1965
(20 U.S.C. 1087e(b)(7)(D)) is amended--
(1) in the matter preceding clause (i), by striking
``and before July 1, 2012,'' and inserting ``and before
July 1, 2013,''; and
(2) in clause (v), by striking ``and before July 1,
2012,'' and inserting ``and before July 1, 2013,''.
SEC. 100302. ELIGIBILITY FOR, AND INTEREST CHARGES ON, FEDERAL DIRECT
STAFFORD LOANS FOR NEW BORROWERS ON OR AFTER JULY
1, 2013.
(a) In General.--Section 455 of the Higher Education Act of
1965 (20 U.S.C. 1087e) is amended by adding at the end the
following:
``(q) Eligibility for, and Interest Charges on, Federal
Direct Stafford Loans for New Borrowers on or After July 1,
2013.--
``(1) In general.--Notwithstanding subsection (a)
or any other provision of this title, any borrower who
was a new borrower on or after July 1, 2013, shall not
be eligible for a Federal Direct Stafford Loan if the
period of time for which the borrower has received
Federal Direct Stafford Loans, in the aggregate,
exceeds the period of enrollment described in paragraph
(3). Such borrower may still receive any Federal Direct
Unsubsidized Stafford Loan for which such borrower is
otherwise eligible.
``(2) Accrual of interest on federal direct
stafford loans.--Notwithstanding subsection (f)(1)(A)
or any other provision of this title and beginning on
the date upon which a borrower who is enrolled in a
program of education or training (including a course of
study or program described in paragraph (3)(B) or
(4)(B) of section 484(b)) for which borrowers are
otherwise eligible to receive Federal Direct Stafford
Loans, becomes ineligible for such loan as a result of
paragraph (1), interest on all Federal Direct Stafford
Loans that were disbursed to such borrower on or after
July 1, 2013, shall accrue. Such interest shall be paid
or capitalized in the same manner as interest on a
Federal Direct Unsubsidized Stafford Loan is paid or
capitalized under section 428H(e)(2).
``(3) Period of enrollment.--
``(A) In general.--The aggregate period of
enrollment referred to in paragraph (1) shall
not exceed the lesser of--
``(i) a period equal to 150 percent
of the published length of the
educational program in which the
student is enrolled; or
``(ii) in the case of a borrower
who was previously enrolled in one or
more other educational programs that
began on or after July 1, 2013, and
subject to subparagraph (B), a period
of time equal to the difference
between--
``(I) 150 percent of the
published length of the longest
educational program in which
the borrower was, or is,
enrolled; and
``(II) any periods of
enrollment in which the
borrower received a Federal
Direct Stafford Loan.
``(B) Regulations.--The Secretary shall
specify in regulation--
``(i) how the aggregate period
described in subparagraph (A) shall be
calculated with respect to a borrower
who was or is enrolled on less than a
full-time basis; and
``(ii) how such aggregate period
shall be calculated to include a course
of study or program described in
paragraph (3)(B) or (4)(B) of section
484(b), respectively.''.
(b) Inapplicability of Title IV Negotiated Rulemaking
Requirement and Master Calendar Exception.--Sections 482(c) and
492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c),
1098a) shall not apply to the amendment made by subsection (a),
or to any regulations promulgated under such amendment.
DIVISION G--SURFACE TRANSPORTATION EXTENSION
SEC. 110001. SHORT TITLE.
This division may be cited as the ``Surface Transportation
Extension Act of 2012, Part II''.
TITLE I--FEDERAL-AID HIGHWAYS
SEC. 111001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS.
(a) In General.--Section 111 of the Surface Transportation
Extension Act of 2011, Part II (Public Law 112-30; 125 Stat.
343; 126 Stat. 272) is amended--
(1) by striking ``the period beginning on October
1, 2011, and ending on June 30, 2012,'' each place it
appears and inserting ``fiscal year 2012'';
(2) by striking ``\3/4\ of'' each place it appears;
and
(3) in subsection (a) by striking ``June 30, 2012''
and inserting ``September 30, 2012''.
(b) Use of Funds.--Section 111(c) of the Surface
Transportation Extension Act of 2011, Part II (125 Stat. 343;
126 Stat. 272) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A) by striking ``,
except that during such period'' and all that
follows before the period at the end; and
(B) in subparagraph (B)(ii) by striking
``$479,250,000'' and inserting
``$639,000,000''; and
(2) by striking paragraph (4).
(c) Extension of Authorizations Under Title V of SAFETEA-
LU.--Section 111(e)(2) of the Surface Transportation Extension
Act of 2011, Part II (125 Stat. 346; 126 Stat. 272) is amended
by striking ``the period beginning on October 1, 2011, and
ending on June 30, 2012.'' and inserting ``fiscal year 2012.''.
(d) Administrative Expenses.--Section 112(a) of the Surface
Transportation Extension Act of 2011, Part II (125 Stat. 346;
126 Stat. 272) is amended by striking ``$294,641,438 for the
period beginning on October 1, 2011, and ending on June 30,
2012.'' and inserting ``$392,855,250 for fiscal year 2012.''.
TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS
SEC. 112001. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY
ADMINISTRATION HIGHWAY SAFETY PROGRAMS.
(a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1)
of SAFETEA-LU (119 Stat. 1519) is amended by striking
``$235,000,000 for each of fiscal years 2009 through 2011'' and
all that follows through the period at the end and inserting
``and $235,000,000 for each of fiscal years 2009 through
2012.''.
(b) Highway Safety Research and Development.--Section
2001(a)(2) of SAFETEA-LU (119 Stat. 1519) is amended by
striking ``and $81,183,000 for the period beginning on October
1, 2011, and ending on June 30, 2012.'' and inserting ``and
$108,244,000 for fiscal year 2012.''.
(c) Occupant Protection Incentive Grants.--Section
2001(a)(3) of SAFETEA-LU (119 Stat. 1519) is amended by
striking ``$25,000,000 for each of fiscal years 2006 through
2011'' and all that follows through the period at the end and
inserting ``and $25,000,000 for each of fiscal years 2006
through 2012.''.
(d) Safety Belt Performance Grants.--Section 2001(a)(4) of
SAFETEA-LU (119 Stat. 1519) is amended by striking ``and
$36,375,000 for the period beginning on October 1, 2011, and
ending on June 30, 2012.'' and inserting ``and $48,500,000 for
fiscal year 2012.''.
(e) State Traffic Safety Information System Improvements.--
Section 2001(a)(5) of SAFETEA-LU (119 Stat. 1519) is amended by
striking ``for each of fiscal years 2006 through 2011'' and all
that follows through the period at the end and inserting ``for
each of fiscal years 2006 through 2012.''.
(f) Alcohol-impaired Driving Countermeasures Incentive
Grant Program.--Section 2001(a)(6) of SAFETEA-LU (119 Stat.
1519) is amended by striking ``$139,000,000 for each of fiscal
years fiscal years 2009 through 2011'' and all that follows
through the period at the end and inserting ``and $139,000,000
for each of fiscal years 2009 through 2012.''.
(g) National Driver Register.--Section 2001(a)(7) of
SAFETEA-LU (119 Stat. 1520) is amended by striking ``and
$3,087,000 for the period beginning on October 1, 2011, and
ending on June 30, 2012.'' and inserting ``and $4,116,000 for
fiscal year 2012.''.
(h) High Visibility Enforcement Program.--Section
2001(a)(8) of SAFETEA-LU (119 Stat. 1520) is amended by
striking ``for each of fiscal years 2006 through 2011'' and all
that follows through the period at the end and inserting ``for
each of fiscal years 2006 through 2012.''.
(i) Motorcyclist Safety.--Section 2001(a)(9) of SAFETEA-LU
(119 Stat. 1520) is amended by striking ``$7,000,000 for each
of fiscal years 2009 through 2011'' and all that follows
through the period at the end and inserting ``and $7,000,000
for each of fiscal years 2009 through 2012.''.
(j) Child Safety and Child Booster Seat Safety Incentive
Grants.--Section 2001(a)(10) of SAFETEA-LU (119 Stat. 1520) is
amended by striking ``$7,000,000 for each of fiscal years 2009
through 2011'' and all that follows through the period at the
end and inserting ``and $7,000,000 for each of fiscal years
2009 through 2012.''.
(k) Administrative Expenses.--Section 2001(a)(11) of
SAFETEA-LU (119 Stat. 1520) is amended by striking
``$25,328,000 for fiscal year 2011'' and all that follows
through the period at the end and inserting ``and $25,328,000
for each of fiscal years 2011 and 2012.''.
SEC. 112002. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION
PROGRAMS.
(a) Federal Motor Carrier Safety Administration Grants.--
Section 31104(a)(8) of title 49, United States Code, is amended
to read as follows:
``(8) $212,000,000 for fiscal year 2012.''.
(b) Administrative Expenses.--
(1) In general.--Section 31104(i)(1)(H) of title
49, United States Code, is amended to read as follows:
``(H) $244,144,000 for fiscal year 2012.''.
(2) Technical correction.--Section 31104(i)(1)(F)
of title 49, United States Code, is amended to read as
follows:
``(F) $239,828,000 for fiscal year 2010;''.
(c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119
Stat. 1715) is amended--
(1) in paragraph (1) by striking ``and $22,500,000
for the period beginning on October 1, 2011, and ending
on June 30, 2012.'' and inserting ``and $30,000,000 for
fiscal year 2012.'';
(2) in paragraph (2) by striking ``2011 and
$24,000,000 for the period beginning on October 1,
2011, and ending on June 30, 2012.'' and inserting
``2012.'';
(3) in paragraph (3) by striking ``2011 and
$3,750,000 for the period beginning on October 1, 2011,
and ending on June 30, 2012.'' and inserting ``2012.'';
(4) in paragraph (4) by striking ``2011 and
$18,750,000 for the period beginning on October 1,
2011, and ending on June 30, 2012.'' and inserting
``2012.''; and
(5) in paragraph (5) by striking ``2011 and
$2,250,000 for the period beginning on October 1, 2011,
and ending on June 30, 2012.'' and inserting ``2012.''.
(d) New Entrant Audits.--Section 31144(g)(5)(B) of title
49, United States Code, is amended by striking ``and up to
$21,750,000 for the period beginning on October 1, 2011, and
ending on June 30, 2012,''.
(e) Outreach and Education.--Section 4127(e) of SAFETEA-LU
(119 Stat. 1741) is amended by striking ``and 2011 (and
$750,000 to the Federal Motor Carrier Safety Administration,
and $2,250,000 to the National Highway Traffic Safety
Administration, for the period beginning on October 1, 2011,
and ending on June 30, 2012)'' and inserting ``2011, and
2012''.
(f) Working Group for Development of Practices and
Procedures to Enhance Federal-State Relations.--Section 4213(d)
of SAFETEA-LU (49 U.S.C. 14710 note; 119 Stat. 1759) is amended
by striking ``June 30, 2012'' and inserting ``September 30,
2012''.
SEC. 112003. ADDITIONAL PROGRAMS.
Section 7131(c) of SAFETEA-LU (119 Stat. 1910) is amended
by striking ``and $870,000 for the period beginning on October
1, 2011, and ending on June 30, 2012,'' and inserting ``and
$1,160,000 for fiscal year 2012''.
TITLE III--PUBLIC TRANSPORTATION PROGRAMS
SEC. 113001. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.
Section 5305(g) of title 49, United States Code, is amended
by striking ``2011 and for the period beginning on October 1,
2011, and ending on June 30, 2012'' and inserting ``2012''.
SEC. 113002. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.
Section 5307(b)(2) of title 49, United States Code, is
amended--
(1) by striking the paragraph heading and inserting
``special rule for fiscal years 2005 through 2012.--''
;
(2) in subparagraph (A) by striking ``2011 and the
period beginning on October 1, 2011, and ending on June
30, 2012,'' and inserting ``2012,''; and
(3) in subparagraph (E)--
(A) by striking the subparagraph heading
and inserting ``maximum amounts in fiscal years
2008 through 2012 .--''; and
(B) in the matter preceding clause (i) by
striking ``2011 and during the period beginning
on October 1, 2011, and ending on June 30,
2012'' and inserting ``2012''.
SEC. 113003. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.
Section 5309(m) of title 49, United States Code, is
amended--
(1) in paragraph (2)--
(A) by striking the paragraph heading and
inserting ``fiscal years 2006 through 2012.--
'';
(B) in the matter preceding subparagraph
(A) by striking ``2011 and the period beginning
on October 1, 2011, and ending on June 30,
2012,'' and inserting ``2012''; and
(C) in subparagraph (A)(i) by striking
``2011 and $150,000,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``2012'';
(2) in paragraph (6)--
(A) in subparagraph (B) by striking ``2011
and $11,250,000 shall be available for the
period beginning on October 1, 2011, and ending
on June 30, 2012,'' and inserting ``2012''; and
(B) in subparagraph (C) by striking
``though 2011 and $3,750,000 shall be available
for the period beginning on October 1, 2011,
and ending on June 30, 2012,'' and inserting
``through 2012''; and
(3) in paragraph (7)--
(A) in subparagraph (A)--
(i) in the matter preceding clause
(i)--
(I) in the first sentence
by striking ``2011 and
$7,500,000 shall be available
for the period beginning on
October 1, 2011, and ending on
June 30, 2012,'' and inserting
``2012''; and
(II) in the second sentence
by inserting ``each fiscal
year'' before the colon;
(ii) in clause (i) by striking
``for each fiscal year and $1,875,000
for the period beginning on October 1,
2011, and ending on June 30, 2012,'';
(iii) in clause (ii) by striking
``for each fiscal year and $1,875,000
for the period beginning on October 1,
2011, and ending on June 30, 2012,'';
(iv) in clause (iii) by striking
``for each fiscal year and $750,000 for
the period beginning on October 1,
2011, and ending on June 30, 2012,'';
(v) in clause (iv) by striking
``for each fiscal year and $750,000 for
the period beginning on October 1,
2011, and ending on June 30, 2012,'';
(vi) in clause (v) by striking
``for each fiscal year and $750,000 for
the period beginning on October 1,
2011, and ending on June 30, 2012,'';
(vii) in clause (vi) by striking
``for each fiscal year and $750,000 for
the period beginning on October 1,
2011, and ending on June 30, 2012,'';
(viii) in clause (vii) by striking
``for each fiscal year and $487,500 for
the period beginning on October 1,
2011, and ending on June 30, 2012,'';
and
(ix) in clause (viii) by striking
``for each fiscal year and $262,500 for
the period beginning on October 1,
2011, and ending on June 30, 2012,'';
(B) in subparagraph (B) by striking clause
(vii) and inserting the following:
``(vii) $13,500,000 for fiscal year
2012.'';
(C) in subparagraph (C) by striking ``and
during the period beginning on October 1, 2011,
and ending on June 30, 2012,'';
(D) in subparagraph (D) by striking ``and
not less than $26,250,000 shall be available
for the period beginning on October 1, 2011,
and ending on June 30, 2012,''; and
(E) in subparagraph (E) by striking ``and
$2,250,000 shall be available for the period
beginning on October 1, 2011, and ending on
June 30, 2012,''.
SEC. 113004. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN URBANIZED
AREAS.
Section 5311(c)(1)(G) of title 49, United States Code, is
amended to read as follows:
``(G) $15,000,000 for fiscal year 2012.''.
SEC. 113005. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.
Section 5337 of title 49, United States Code, is amended by
striking subsection (g).
SEC. 113006. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION.
(a) Formula and Bus Grants.--Section 5338(b) of title 49,
United States Code, is amended--
(1) in paragraph (1) by striking subparagraph (G)
and inserting the following:
``(G) $8,360,565,000 for fiscal year
2012.''; and
(2) in paragraph (2)--
(A) in subparagraph (A) by striking
``$113,500,000 for each of fiscal years 2009
through 2011, and $85,125,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$113,500,000 for each of fiscal years 2009
through 2012'';
(B) in subparagraph (B) by striking
``$4,160,365,000 for each of fiscal years 2009
through 2011, and $3,120,273,750 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$4,160,365,000 for each of fiscal years 2009
through 2012'';
(C) in subparagraph (C) by striking
``$51,500,000 for each of fiscal years 2009
through 2011, and $38,625,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$51,500,000 for each of fiscal years 2009
through 2012'';
(D) in subparagraph (D) by striking
``$1,666,500,000 for each of fiscal years 2009
through 2011, and $1,249,875,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$1,666,500,000 for each of fiscal years 2009
through 2012'';
(E) in subparagraph (E) by striking
``$984,000,000 for each of fiscal years 2009
through 2011, and $738,000,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$984,000,000 for each of fiscal years 2009
through 2012'';
(F) in subparagraph (F) by striking
``$133,500,000 for each of fiscal years 2009
through 2011, and $100,125,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$133,500,000 for each of fiscal years 2009
through 2012'';
(G) in subparagraph (G) by striking
``$465,000,000 for each of fiscal years 2009
through 2011, and $348,750,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$465,000,000 for each of fiscal years 2009
through 2012'';
(H) in subparagraph (H) by striking
``$164,500,000 for each of fiscal years 2009
through 2011, and $123,375,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$164,500,000 for each of fiscal years 2009
through 2012'';
(I) in subparagraph (I) by striking
``$92,500,000 for each of fiscal years 2009
through 2011, and $69,375,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$92,500,000 for each of fiscal years 2009
through 2012'';
(J) in subparagraph (J) by striking
``$26,900,000 for each of fiscal years 2009
through 2011, and $20,175,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$26,900,000 for each of fiscal years 2009
through 2012'';
(K) in subparagraph (K) by striking ``for
each of fiscal years 2006 through 2011 and
$2,625,000 for the period beginning on October
1, 2011, and ending on June 30, 2012,'' and
inserting ``for each of fiscal years 2006
through 2012'';
(L) in subparagraph (L) by striking ``for
each of fiscal years 2006 through 2011 and
$18,750,000 for the period beginning on October
1, 2011, and ending on June 30, 2012,'' and
inserting ``for each of fiscal years 2006
through 2012'';
(M) in subparagraph (M) by striking
``$465,000,000 for each of fiscal years 2009
through 2011, and $348,750,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and
$465,000,000 for each of fiscal years 2009
through 2012''; and
(N) in subparagraph (N) by striking
``$8,800,000 for each of fiscal years 2009
through 2011, and $6,600,000 for the period
beginning on October 1, 2011, and ending on
June 30, 2012,'' and inserting ``and $8,800,000
for each of fiscal years 2009 through 2012''.
(b) Capital Investment Grants.--Section 5338(c)(7) of title
49, United States Code, is amended to read as follows:
``(7) $1,955,000,000 for fiscal year 2012.''.
(c) Research and University Research Centers.--Section
5338(d) of title 49, United States Code, is amended--
(1) in paragraph (1), in the matter preceding
subparagraph (A), by striking ``through 2011, and
$33,000,000 for the period beginning on October 1,
2011, and ending on June 30, 2012,'' and inserting
``through 2011, and $44,000,000 for fiscal year
2012,''; and
(2) by striking paragraph (3) and inserting the
following:
``(3) Additional authorizations.--
``(A) Research.--Of amounts authorized to
be appropriated under paragraph (1) for fiscal
year 2012, the Secretary shall allocate for
each of the activities and projects described
in subparagraphs (A) through (F) of paragraph
(1) an amount equal to 63 percent of the amount
allocated for fiscal year 2009 under each such
subparagraph.
``(B) University centers program.--
``(i) Fiscal year 2012.--Of the
amounts allocated under paragraph
(1)(C) for the university centers
program under section 5506 for fiscal
year 2012, the Secretary shall allocate
for each program described in clauses
(i) through (iii) and (v) through
(viii) of paragraph (2)(A) an amount
equal to 63 percent of the amount
allocated for fiscal year 2009 under
each such clause.
``(ii) Funding.--If the Secretary
determines that a project or activity
described in paragraph (2) received
sufficient funds in fiscal year 2011,
or a previous fiscal year, to carry out
the purpose for which the project or
activity was authorized, the Secretary
may not allocate any amounts under
clause (i) for the project or activity
for fiscal year 2012 or any subsequent
fiscal year.''.
(d) Administration.--Section 5338(e)(7) of title 49, United
States Code, is amended to read as follows:
``(7) $98,713,000 for fiscal year 2012.''.
SEC. 113007. AMENDMENTS TO SAFETEA-LU.
(a) Contracted Paratransit Pilot.--Section 3009(i)(1) of
SAFETEA-LU (119 Stat. 1572) is amended by striking ``2011 and
the period beginning on October 1, 2011, and ending on June 30,
2012,'' and inserting ``2012,''.
(b) Public-private Partnership Pilot Program.--Section 3011
of SAFETEA-LU (49 U.S.C. 5309 note; 119 Stat. 1588) is
amended--
(1) in subsection (c)(5) by striking ``2011 and the
period beginning on October 1, 2011, and ending on June
30, 2012'' and inserting ``2012''; and
(2) in the second sentence of subsection (d) by
striking ``2011 and the period beginning on October 1,
2011, and ending on June 30, 2012,'' and inserting
``2012''.
(c) Elderly Individuals and Individuals With Disabilities
Pilot Program.--Section 3012(b)(8) of SAFETEA-LU (49 U.S.C.
5310 note; 119 Stat. 1593) is amended by striking ``June 30,
2012'' and inserting ``September 30, 2012''.
(d) Obligation Ceiling.--Section 3040(8) of SAFETEA-LU (119
Stat. 1639) is amended to read as follows:
``(8) $10,458,278,000 for fiscal year 2012, of
which not more than $8,360,565,000 shall be from the
Mass Transit Account.''.
(e) Project Authorizations for New Fixed Guideway Capital
Projects.--Section 3043 of SAFETEA-LU (119 Stat. 1640) is
amended--
(1) in subsection (b), in the matter preceding
paragraph (1), by striking ``2011 and the period
beginning on October 1, 2011, and ending on June 30,
2012,'' and inserting ``2012''; and
(2) in subsection (c), in the matter preceding
paragraph (1), by striking ``2011 and the period
beginning on October 1, 2011, and ending on June 30,
2012,'' and inserting ``2012''.
(f) Allocations for National Research and Technology
Programs.--Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note; 119
Stat. 1706) is amended--
(1) in subsection (b) by striking ``fiscal year or
period'' and inserting ``fiscal year''; and
(2) by striking subsection (c)(2) and inserting the
following:
``(2) for fiscal year 2012, in amounts equal to 63
percent of the amounts allocated for fiscal year 2009
under each of paragraphs (2), (3), (5), and (8) through
(25) of subsection (a).''.
TITLE IV--EFFECTIVE DATE
SEC. 114001. EFFECTIVE DATE.
This division and the amendments made by this division
shall take effect on July 1, 2012.
DIVISION H--BUDGETARY EFFECTS
SEC. 120001. BUDGETARY EFFECTS.
(a) PAYGO Scorecard.--The budgetary effects of this Act
shall not be entered on either PAYGO scorecard maintained
pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of
2010.
(b) Senate PAYGO Scorecard.--The budgetary effects of this
Act shall not be recorded on any PAYGO scorecard maintained for
purposes of section 201 of S. Con. Res. 21 (110th Congress).
Amend the title so as to read: ``An Act to authorize funds
for Federal-aid highways, highway safety programs, and transit
programs, and for other purposes.''.
And the Senate agree to the same.
From the Committee on Transportation and
Infrastructure, for consideration of the House
bill (except section 141) and the Senate
amendment (except secs. 1801, 40102, 40201,
40202, 40204, 40205, 40305, 40307, 40309-40312,
100112-100114, and 100116), and modifications
committed to conference:
John L. Mica,
Don Young,
John J. Duncan, Jr.,
Bill Shuster,
Shelley Moore Capito,
Eric A. ``Rick'' Crawford,
Jaime Herrera Beutler,
Larry Bucshon,
Richard L. Hanna,
Steve Southerland II,
James Lankford,
Reid J. Ribble,
From the Committee on Energy and Commerce, for
consideration of sec. 142 and titles II and V
of the House bill, and secs. 1113, 1201, 1202,
subtitles B, C, D, and E of title I of Division
C, secs, 32701-32705, 32710, 32713, 40101, and
40301 of the Senate amendment, and
modifications committed to conference:
Fred Upton,
Ed Whitfield,
Henry A. Waxman,
From the Committee on Natural Resources, for
consideration of secs. 123, 142, 204, and
titles III and VI of the House bill, and sec.
1116, subtitles C, F, and G of title I of
Division A, sec. 33009, titles VI and VII of
Division C, sec. 40101, subtitles A and B of
title I of Division F, and sec. 100301 of the
Senate amendment, and modifications committed
to converence:
Doc Hastings,
Rob Bishop,
From the Committee on Science, Space, and
Technology for consideration of secs. 121, 123,
136, and 137 of the House bill, and sec. 1534,
subtitle F of title I of Division A, secs.
20013, 20014, 20029, 31101, 31103, 31111,
31204, 31504, 32705, 33009, 34008, and Division
E of the Senate amendment, and modifications
committed to conference:
Ralph M. Hall,
Chip Cravaack,
From the Committee on Ways and Means, for
consideration of secs. 141 and 142 of the House
bill, and secs. 1801, 40101, 40102, 40201,
40202, 40204, 40205, 40301-40307, 40309-40314,
100112-100114, and 100116 of the Senate
amendment, and modifications committed to
conference:
Dave Camp,
Patrick J. Tiberi,
Managers on the Part of the House.
Barbara Boxer,
Max Baucus,
John D. Rockefeller IV,
Richard J. Durbin, (with the
exception of: Div. A, Title I,
Sec. 1538--Asian Carp and Div.
F, Title II, Sec. 100206--
Residual Risk)
Tim Johnson,
Charles E. Schumer,
Bill Nelson,
Robert Menendez,
James M. Inhofe,
David Vitter,
Richard C. Shelby,
Kay Bailey Hutchison,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF THE CONFERENCE
The managers on the part of the Senate and the House at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill ( H.R. 4348), to
provide an extension of Federal-aid highway, highway safety,
motor carrier safety, transit, and other programs funded out of
the Highway Trust Fund pending enactment of a multiyear law
reauthorizing such programs, and for other purposes, submit the
following joint statement to the House and the Senate in
explanation of the effect of the action agreed upon by the
managers and recommended in the accompanying conference report:
The House recedes from its disagreement to the amendment
of the Senate to the text of the bill and agrees to the same
with an amendment.
A summary of the bill agreed to in conference is set
forth below:
Moving Ahead for Progress in the 21st Century (MAP-21)
replaces the previous authorization, the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for
Users (SAFETEA-LU), that expired on September 30, 2009 and
which has been continued with a series of short-term
extensions. MAP-21 will modernize and reform our current
transportation system to help create jobs, accelerate economic
recovery, and build the foundation for long-term prosperity.
This conference report makes a number of necessary changes in
the Federal-aid highway program structure to increase State
flexibility and better serve the American people.
DIVISION A--FEDERAL-AID HIGHWAYS AND HIGHWAY SAFETY CONSTRUCTION
PROGRAMS
Highway funding levels
The conference report provides funding for the federal-
aid highway program through fiscal 2014 at current funding
levels with a small inflationary adjustment.
Program consolidation
The Senate and the House both sought to consolidate the
number of programs in the federal-aid highway program to focus
priorities and resources on key national goals. The conference
report consolidates the number of highway programs by two-
thirds. The elimination of dozens of programs makes more
resources available to States and metropolitan areas to invest
in their most critical needs to improve the condition and
performance of their transportation system.
Project delivery
The conference report combined provisions from the House
and Senate bills focusing on the shared priority of
accelerating project delivery. It maintains the vast majority
of project acceleration provisions from S. 1813 and provisions
from the House bill in addition to new provisions that will
maintain substantive environment and public health protections
while streamlining the creation and use of documents and
environmental reviews, enhancing efficiency and accountability
in the project delivery process.
The conference report adopts and modifies provisions from
the House bill directing the Secretary to designate, through
rulemaking, certain activities as categorical exclusions under
the National Environmental Policy Act. The Secretary is
directed to designate the repair or reconstruction of a road,
highway, or bridge damaged by a declared emergency or disaster
as a categorical exclusion, if the repair or reconstruction
project is in the same location and with the same
specifications as the original project and is commenced within
two years of the declaration of emergency or disaster. The
Secretary is also directed to designate any project within the
existing operational right-of-way as a categorical exclusion
and defines the term ``operational right-of-way''.
Additionally, the Secretary is directed to designate projects
receiving limited Federal assistance as a categorical
exclusion. The categorical exclusion applies to any project
that receives less than $5,000,000 in Federal funds and any
project with a total estimated cost of not more than
$30,000,000 receiving Federal funds comprising less than 15
percent of the total estimated project costs.
Performance measures
The nation's surface transportation programs have not
provided sufficient accountability for how tax dollars are
being spent on transportation projects and would benefit from a
greater focus on key national priorities. The conference report
focuses the highway program on key outcomes, such as reducing
fatalities, improving road and bridge conditions, reducing
congestion, increasing system reliability, and improving
freight movement and economic vitality.
Focus on the National Highway System
The conference report combines the old interstate
maintenance program into a new program called the National
Highway Performance Program to address both the interstate
system as well as an extended National Highway System. It is
these roads that are most critical to our economic vitality,
and the conference report ensures the roads and bridges that
make up this system will be better maintained.
Freight policy
A top priority of the nation's transportation system
should be the safe and efficient movement of goods. The
nation's economic health is reliant upon a transportation
system that provides for reliable and timely goods movement.
This conference report establishes policies to improve
freight movement. It calls for the development of a National
Freight Strategic Plan, encourages state freight plans and
advisory committees, and provides incentives for states that
fund projects to improve freight movement.
America fast forward
Given our massive investment needs and the limited
funding available, we need to find ways to better leverage
Federal dollars by encouraging additional non-Federal
investment and helping to accelerate the benefits of State and
locally funded transportation projects.
This conference report builds upon the success of the
TIFIA program to help communities leverage their transportation
resources and stretch Federal dollars further than they have
been stretched before. The conference report modifies the TIFIA
program by increasing funding for the program to $1 billion per
year, by increasing the maximum share of project costs from 33
percent to 49 percent, by allowing TIFIA to be used to support
a related set of projects, and by setting aside funding for
projects in rural areas at more favorable terms.
Gulf Coast restoration
The conference report modifies a Senate provision related
to Gulf Coast restoration known as the Resources and Ecosystems
Sustainability, Tourism Opportunities and Revived Economies of
the Gulf Coast States Act of 2012 (RESTORE Act). The provision
establishes the Gulf Coast Restoration Trust Fund and places in
the Trust Fund 80% of all civil penalties paid by responsible
parties in connection with the Deepwater Horizon oil spill.
Funding may be used to invest in projects and activities to
restore the long-term health of the coastal ecosystem and local
economies in the Gulf Coast Region, which includes the states
of Mississippi, Louisiana, Alabama, Florida, and Texas. A
portion of the funds will be allocated directly and equally to
the five Gulf Coast states for ecological and economic recovery
along the coast. A portion will be provided to the Gulf Coast
Ecosystem Restoration Council established by the bill to
develop and fund a comprehensive plan for the restoration of
Gulf Coast ecosystems. A portion will be allocated among the
states using an impact-based formula to implement state plans
that have been approved by the Council. Finally, a portion of
the fines will be allocated to a Gulf Coast ecosystem
restoration, science, observation, monitoring and technology
program and for grants to nongovernmental entities for the
establishment of Gulf Coast centers of excellence.
Harbor maintenance
The Conference report modifies a Senate provision
highlighting the significance of the nation's ports for
efficient movement of goods and products and the need for
increased investment in the maintenance of these ports to
promote the economic competiveness of the United States. The
provision states the Sense of Congress that the Administration
should request and the Congress should fully expend each year
all of the revenues collected in the Harbor Maintenance Trust
Fund (HMTF) for the operation and maintenance of the nation's
federally maintained ports. The provision also expresses the
importance of protecting other critical Army Corps programs,
including inland navigation, flood and coastal storm
protection, and ecosystem restoration, from funding reductions.
Finally, the provision directs the Administration to
provide an annual estimate of national harbor maintenance
needs, including an estimate of the percentage of waterways
that will be available for use based on the annual budget
request as well as how much funding would be needed to achieve
95 percent availability of the nation's ports and waterways
within 3 years.
DIVISION B--FEDERAL PUBLIC TRANSPORTATION ACT OF 2012
The Federal Public Transportation Act of 2012 contains
historic improvements in safety oversight, streamlined review
of new capital projects, program consolidation, and a shift
from earmarks and discretionary programs to robust formula
programs that public transportation systems can rely on to
upgrade and improve aging infrastructure and vehicles. The Act
provides increased funding levels for fiscal years 2013 and
2014 based on expected inflation, giving public transportation
providers the stable funding needed to make essential
investments.
Secs. 20005 and 20006, 49 U.S.C. 5303/5304, metropolitan and statewide
transportation planning
The Conference report improves metropolitan and statewide
planning processes to incorporate a more comprehensive
performance-based approach. The conference committee requires
the structure of all Metropolitan Planning Organizations
include officials of public agencies that administer or operate
public transportation systems within two years of enactment.
The conference report creates a pilot program for
transit-oriented development planning to advance planning
efforts that support transit-oriented development around fixed
guideway capital investment projects. Grants for planning will
help communities develop strategies to facilitate transit-
oriented development.
Secs. 20007 and 20026, 49 U.S.C. 5307 and 5336, urbanized area formula
grants
Maintains the basic structure for urbanized area grants
under Section 5307. The program continues to be the largest
program for federal investment in public transportation. The
``Job Access and Reverse Commute'' program (JARC) has been
moved to Section 5307 and the conferees have removed the Senate
bill set-aside for JARC activities.
Maintains the existing criteria for use of 5307 funds for
capital projects (operating expenses continue to be ineligible)
in urban areas with a population greater than 200,000. In
addition, the bill maintains language allowing small urbanized
areas with populations under 200,000 to use up to 100 percent
of their 5307 funding for operating expenses. A modified ``100
bus rule'' has been included, allowing systems with 76-100
buses operating in peak service to use up to 50% of their 5307
funding for operating expenses and those operating 75 or fewer
buses to use up to 75% for operating expenses.
The Senate receded to the House request to remove a
provision in the Senate bill establishing a program to allow
public transportation providers temporary flexibility during
periods of high unemployment to use a limited portion of their
5307 funds for up to two years for operating expenses.
Sec. 20008, 49 U.S.C. 5309, Fixed Guideway Capital Investment Grants
(new starts)
Reforms and streamlines the ``Fixed Guideway Capital
Investment Grant'' program (previously the ``Major Capital
Investment Grant'' or ``New Starts'' program). Based on
extensive feedback from project sponsors and other
stakeholders, the bill streamlines the New Starts process to
accelerate project delivery by eliminating duplicative steps in
project development and instituting a modified program
structure that will allow the Federal Transit Administration to
review proposals quickly, without sacrificing effective project
oversight.
Projects under $100 million can utilize an expedited
review process if they meet standards of similar highly
qualified projects. The bill also creates a category of
demonstration projects for sponsors that propose a significant
amount of local and/or private funding and reduce the federal
commitment required for the projects.
Establishes a new category for capital investment
projects by authorizing core capacity projects, which will
undergo the same process as other ``new starts'' projects but
provide an opportunity for existing systems to make necessary
but significant investments that were not previously eligible
for funding. The conference report requires that eligible
activities under a core capacity project achieve at least a 10%
increase in capacity along a corridor.
The Senate agreed to a House request to modify the
definition of Bus Rapid Transit projects in the Senate bill to
allow broader use of the program. The conference report also
includes incentives for the development of bus rapid transit
projects that incorporate elements of fixed-guideway transit
like light rail.
Sec. 20009, 49 U.S.C. 5310, formula grants for the enhanced mobility of
seniors and individuals with disabilities
Consolidates the existing ``Elderly and Disabled'' (Sec.
5310) and ``New Freedom'' (Sec. 5317) programs into a single
program that increases the level of resources available beyond
the level of funding available under existing programs. The
consolidated program will continue to ensure support for non-
profit providers of transportation, and it will continue to
make available funds for public transportation services that
exceed the requirements of the Americans with Disabilities Act,
as previously provided under the ``New Freedom'' program.
Sec. 20010, 49 U.S.C. 5311, formula grants for rural areas
Maintains the existing structure providing funding to
states for public transportation in rural areas. The 5311
formula is expanded to include the rural component of the ``Job
Access and Reverse Commute'' program, and the level of public
transportation service that is provided within a state's rural
areas is considered in the distribution of new funds.
Funding for the ``Public Transportation on Indian
Reservations'' program is increased to $30 million. The
Secretary will distribute $5 million competitively each fiscal
year, and $25 million will be available to Indian Tribes as
formula grants to continue and expand public transportation
services.
The conference report also establishes a new
``Appalachian Development Public Transportation Program'' to
distribute $20 million to states within the Appalachian region
with a goal of providing greater public transportation
opportunities to residents in these challenged areas.
Sec. 20011, 49 U.S.C. 5312, research, development, demonstration, and
deployment projects
Modifies the existing research program by eliminating
earmarks and reforming the program to provide research focused
on public transportation with a goal of providing meaningful
results.
Creates a clearly delineated pipeline with criteria for
continued progress with a goal of taking an idea from the
research phase through to demonstration and deployment in the
field. For the first time, the program specifically provides
funding for demonstration and deployment of products and
services that may benefit public transportation; a major
impediment to putting new technology to use in the field often
cited by public transportation providers.
Creates a section of the deployment program dedicated to
low or no emission public transportation vehicles. Grants will
be available for the acquisition of low or no emission vehicles
and related equipment, the construction of facilities for low
or no emission vehicles, and the rehabilitation of existing
facilities to accommodate the use of low or no emission
vehicles.
Sec. 20012, 49 U.S.C. 5314, technical assistance and standards
development
Provides grants for activities that help public
transportation systems more effectively and efficiently provide
public transportation service and helps grant recipients
administer funds received under this chapter. Authorizes the
Federal Transit Administration to continue making grants for
the development of voluntary standards by the public
transportation industry related to procurement, safety and
other subjects and authorizes the Secretary to fund technical
assistance centers to assist grant recipients following a
competitive process.
Sec. 20014, 49 U.S.C. 5318, bus testing facilities
Instructs the Secretary to certify one facility for
testing new bus models. Requires the Secretary to work with the
bus industry to develop a mutually agreed upon pass/fail test
for vehicles to ensure the safety and reliability of buses
purchased with federal funds.
Sec. 20015, 49 U.S.C. 5322, public transportation workforce development
and human resource programs
Authorizes the Secretary to make grants, or enter into
contracts for, activities that address human resource and
workforce needs as they apply to public transportation
activities. Creates the Innovative Public Transportation
Workforce Development Program, a competitive grant program to
promote and assist the development of innovative workforce
development and human resource activities within the public
transportation industry.
Sec. 20017, 49 U.S.C. 5324, public transportation emergency relief
program
Establishes a program to assist States and public
transportation systems pay for protecting, repairing, or
replacing equipment and facilities that are in danger of
suffering serious damage or have suffered serious damage as a
result of an emergency.
Sec. 20019, 49 U.S.C. 5326, transit asset management
Establishes a system to monitor and manage public
transportation assets to improve safety and increase
reliability and performance. Recipients are required to
establish and use an asset management system to develop capital
asset inventories and condition assessments, and report on the
condition of their system as a whole, including a description
of the change in overall condition since the last report. The
Secretary of Transportation is also required to define the term
`state of good repair,' including objective standards for
measuring the condition of capital assets.
Sec. 20021, 49 U.S.C. 5329, public transportation safety program
Establishes a National Public Transportation Safety Plan
to improve the safety of all public transportation systems that
receive Federal funding. The Secretary will develop minimum
performance standards for vehicles used in public
transportation and establish a training program for Federal and
State employees who conduct safety audits and examinations of
public transportation systems.
Requires public transportation agencies to establish
comprehensive safety plans, thus encouraging a ``culture of
safety'' in which each employee completes a safety training
program that includes continuing safety education and training.
The Senate receded to a House request to give smaller systems
the option to rely on states to prepare these plans.
Improves the effectiveness of State Safety Oversight
Agencies and increases federal funding for safety. States will
submit proposals for state safety oversight programs for rail
fixed guideway public transportation systems to the Secretary,
and upon approval, receive funding at an 80 percent Federal
share. The Act builds on the existence of State safety
oversight agencies and requires them to be legally and
financially independent from the rail fixed guideway systems
they oversee, and have the authority, staff training and
expertise to enforce Federal and state safety laws.
At the request of the House the conference changes the
nature of the enforcement powers contained in the Senate bill.
Instead of direct oversight of public transportation agencies,
the program relies on State Safety Oversight Agencies to
provide direct oversight of rail fixed guideway public
transportation providers.
Sec. 20027, 49 U.S.C. 5337, state of good repair grant program
Modernizes, renames, and provides historic levels of
funding for the old ``Rail Modernization'' program by
establishing a program structure and defining eligible expenses
under the program with a goal of moving all systems towards a
state of good repair and enabling systems to maintain a state
of good repair.
The program has two major components: a rail fixed
guideway state of good repair formula program and a high
intensity bus state of good repair formula program. Funding
tiers and earmarks in the old rail modernization program have
been eliminated and replaced with a new structure that focuses
on the age of the system, revenue vehicle miles and directional
route miles.
DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY
Title I--Motor Vehicle and Highway Safety Improvement Act
Highway Safety Grant Programs. The conference report
includes provisions that restructure the existing highway
safety grant programs administered by the National Highway
Traffic Safety Administration (NHTSA). The conference report
largely reflects the Senate approach on modifications to the
existing formula grant programs, including the establishment of
a single grant application and reporting process for all grants
received under this title, the adoption of performance
measures, and the establishment of planning and reporting
requirements for the states. In addition, the conference report
inserts a prohibition on state use of these formula grant funds
to pay for red light or speed cameras. The report moves a
provision establishing a cooperative research and evaluation
program into a different section, but continues to fund it from
the funds provided for the formula grant program.
The conference report accepts the Senate approach on
incentive grants, but consolidates all of those grants into a
single section in Code. The new Section 405 of Title 23,
``National Priority Safety Programs,'' allocates funds across
six incentive grant programs and allows such funds to be used
for a research program on technology to prevent impaired
driving. The conference report retains the Senate language with
respect to state traffic safety information system improvement
grants, the motorcycle safety grant program, and the high
visibility enforcement program.
The conference report retains the Senate language with
respect to an occupant protection incentive grant with two
modifications. First, the report provides the highest
performing states with additional flexibility in spending grant
funds. Second, the report does not specifically state that
education to the public concerning the dangers of children left
unattended in vehicles is an allowable use of these funds,
however the conferees agree that such education efforts could
be carried out under other allowable uses, including education
to the public concerning the proper use of child restraints.
The conference report reflects the Senate approach with
regard to the impaired driving countermeasures and teen driver
safety grants with one modification made to each that allows
states additional flexibility in spending a percentage of funds
received through these programs. The report also accepts the
Senate approach on distracted driving incentive grants, with
one change to the eligibility requirements for the grants.
Highway Safety Research. The conference report accepts
the Senate approach to modifying the highway safety research
authorities provided to NHTSA. The report strikes provisions in
the Senate bill that authorized additional collaborative
research and development with non-federal entities, allowed the
Secretary to establish an international highway safety
information and cooperation program, funded training for
highway safety personnel, and created a clearinghouse for
information about best practices for driver's licensing
concerning drivers with medical issues. The report removes
language in the Senate bill that allowed NHTSA to develop model
specifications for devices. The conferees understand the
removal of this language does not alter the current authority
of NHTSA in this area.
The conference report modifies Senate language providing
NHTSA with the authority to conduct research into advanced
technology to prevent impaired driving, and allows the
Secretary to use funds from the National Priority Safety
Programs to fund this research.
Enhanced Safety Authorities. The conference report
includes several provisions intended to enhance NHTSA's safety
authorities. The conference report revises the Senate language
on civil penalties and sets the maximum penalty at $35 million
for a related series of violations. The increase will take
effect one year after enactment or when NHTSA issues a rule
interpreting the new civil penalty factors, whichever is
earlier, and the conferees agree that the new penalty amount
will only be subject to adjustment for inflation occurring
thereafter. The conference report maintains the Senate approach
on motor vehicle safety research and development with
modification, including to NHTSA's authority to plan, design,
or build facilities. The conference report largely maintains
the Senate approach providing NHTSA additional authority over
imported motor vehicles and motor vehicle equipment, though it
strikes a provision related to financial responsibility
requirements for importers and modifies a provision relating to
conditions of importation.
Transparency and Accountability. The conference report
contains several provisions designed to increase transparency
and accountability at NHTSA and in the auto industry. The
conference report adopts a modified Senate approach on
establishing public accessibility to vehicle recall information
and further modifies Senate provisions addressing the set of
communications with dealers that must be made available to the
public. The report strikes the provision regarding public
availability of early warning reporting data. The report
strikes a provision imposing new post-employment restrictions
for vehicle safety officials at NHTSA, but retains language
calling on the inspector general to report on the issue. The
report slightly modifies the whistleblower protection provision
and calls on the Government Accountability Office to examine
this and other such provisions. The report slightly modifies
the provision directing NHTSA to study crash data collection.
And the report makes slight modifications to NHTSA's authority
to require additional recall notifications.
Vehicle Electronics and Safety Standards. The conference
report maintains a Senate provision that establishes a Council
for Vehicle Electronics, Vehicle Software, and Emerging
Technologies to build, implement, and aggregate NHTSA's
expertise in passenger motor vehicle electronics and other new
and emerging technologies. The conference report includes a
provision calling on NHTSA to evaluate vehicle electronic
systems and report to Congress on highest priority areas for
safety. The conference report strikes all other safety mandates
contained in Subtitle D of the Senate bill.
Child Safety Standards. The conference report maintains
the Senate approach with regard to child safety. The report
strikes mandates for new safety standards for booster seats and
child restraint anchorage systems because conferees understand
that NHTSA has completed a rulemaking that achieves these
goals. The report modifies the mandate that NHTSA update its
frontal impact test parameters for child safety seats to
clarify that the mandate only applies to the seat assembly
specifications. The report revises the provision relating to
unattended passengers to a discretionary research effort
without any mandate for NHTSA to begin a rulemaking process.
Improved Daytime and Nighttime Visibility of Agricultural
Equipment. The Conference report accepts the Senate language.
Title II--Commercial Motor Vehicle Safety Enhancement Act of 2012
Commercial Motor Vehicle Registration requirements. The
conference report includes several provisions amending
registration requirements under federal law for commercial
motor vehicles (CMV), freight forwarders, and brokers. The
conference report largely adopts the Senate registration
provisions. The provisions include new requirements, such as
completing a written examination and applying for a US DOT
number, as a precondition for being registered. The included
provisions amend safety fitness requirements and require
license holders to provide registration updates. The conference
report also includes Senate provisions for registering
household goods motor carriers, but removes provisions
directing the Secretary to establish education and assistance
programs to address the problems of household property being
held hostage.
The conference report makes changes to some Senate
registration provisions. It retains the current presumption in
favor of registration, removes a management plan requirement,
and changes written examination provisions. For providers of
motorcoach services, the conference report also replaces a pre-
authorization audit requirement with a requirement that new
operators undergo a safety review within 120 days of beginning
operations. The conference report also removes requirements to
periodically update registration information when no changes
have been made.
The conference report includes a number of Senate
provisions to address motor carrier companies that mask prior
noncompliance and adverse safety history. The provisions
authorize the Secretary to withhold, suspend, amend, or revoke
a motor carrier's registration if the carrier failed to
disclose an adverse safety history or other facts relevant to
its past regulatory compliance. The provisions authorize
similar action where the Secretary finds that within the
previous 3 years the carrier: (1) was closely related to
another motor carrier with a poor compliance history; and (2)
did not disclose this relationship in its application. The
Secretary is granted authority to refuse or revoke a USDOT
number to an applicant that is unfit, unwilling or unable to
comply with the safety regulations. The conference report
amends some of the Senate provisions to limit the unintended
results of punishing individuals who were not guilty parties in
previous companies.
The conference report adopts several Senate penalty
provisions for operations in violation of registration
requirements. The conference report includes civil penalties
and revocation authority for operating without registration,
operating as imminent hazard, and transporting hazardous wastes
without necessary registration. Provisions increase the civil
penalties for motor carriers, motor carriers of migrant workers
and private motor carriers that disobey a subpoena or a
requirement of the Secretary to produce witnesses or records.
Other provisions included authorize the Secretary to suspend,
amend or revoke the registration of a motor carrier, broker or
freight forwarder for failing to obey an administrative
subpoena. Another provision authorizes the Secretary to place
out of service the operations of a motor carrier discovered to
be operating vehicles without the required registration, or
operating beyond the scope of the registration granted. The
conference report amends the Senate provision for hazardous
waste transportation penalties and sets the penalty range at
not less than $20,000 but not to exceed $40,000.
Electronic logging devices. The conference report
includes provisions directing the Secretary to issue
regulations requiring electronic logging devices for recording
hours of service in commercial motor vehicles and sets basic
performance standards for the device. The conference report
adopted the Senate approach with some amendments. The
conference report adds an hours of service field study to
expand on a previous Federal Motor Carrier Safety
Administration (FMCSA) report on driver fatigue and maximum
driving time requirements focusing on the 34-hour restart rule.
The conference report directs the Secretary, in prescribing
regulations, to consider how the rule may reduce or eliminate
requirements for drivers and motor carriers to retain
supporting documentation associated with paper-based records.
The conference report changes the name of the device and adds
other language to make clear that the devices are to be used
only to enforce federal regulations. The report also includes a
definition of ``tamper resistant'' and provisions to ensure
that appropriate measures are taken to protect the privacy of
individuals and the confidentiality of the data.
Commercial motor vehicle driver safety. The conference
report includes several Senate provisions to address commercial
driver safety: driver medical qualifications, operator
training, driver's license program, driver's requirements and
driver information systems. The conference report removes a
Senate provision that would have directed the development of
driver safety fitness ratings. The report also removes a study
and report to Congress examining the extent to which detention
time contributes to drivers violating hours of service
requirements and driver fatigue. The conference report removes
a Senate provision that would have amended the membership of
the Motor Carrier Safety Advisory Committee to specifically
include non-profit employee organization representation.
The provisions included direct the Secretary to establish
a national registry of medical examiners, issue regulations to
establish minimum entry-level training requirements for all CMV
operators, require States to modernize commercial driver's
license (CDL) information systems, and add disqualification
standards for drivers. The conference report includes Senate
provisions for the commercial driver's license program, but
removes language for federal guidance on critical requirements
for effective State CDL programs. The conference report
includes alternate language directing states to prioritize
areas that the Secretary has identified as critical in the most
recent audit of their programs.
The conference report also includes language for
streamlining the process by which military members and veterans
who operate heavy trucks during duty are able to obtain
commercial driver's licenses. The conference provision includes
Senate language directing the Secretary to complete a study and
report to Congress on what can be done to streamline the
process. The report adds new language requiring the Secretary,
based on recommendations of the report, to establish
accelerated licensing procedures within 1 year of enactment.
Drug and Alcohol Clearinghouse. The conference report
includes Senate provisions directing the Secretary to establish
a national repository for records relating to alcohol and
controlled substances testing of CMV drivers. The records will
be used to determine the qualifications for operating a CMV.
The clearinghouse will include safeguards to protect the
privacy of individuals to whom the information pertains and
ensure that the information is not divulged to anyone not
directly involved in evaluating the individual's qualifications
to drive a CMV. The conference report also includes Senate
provisions for prohibiting an employer from hiring a driver
unless he or she has determined that during the preceding three
years that such driver: did not test positive in violation of
the regulations at title 49, Code of Federal Regulations; and
did not refuse a test under these regulations. Other included
provisions grant preemption authority to the Secretary in
regard to the reporting of valid positive results or refusals
to take alcohol screening and drug tests, and apply civil
penalties to any violators of privacy and reporting
requirements.
The conference report amends Senate provisions for
archiving personal records to ensure further individual privacy
protections. The conference report also includes amendments to
the National Transportation Safety Board's access to
clearinghouse records. The conference report makes amendments
to clarify that the clearinghouse will be used to determine
whether individuals have existing employment prohibitions at
the time of making hiring decisions.
Motor Carrier Grant programs. The conference report does
not include Senate provisions updating and consolidating grant
programs and processes. While the conference believes that
reducing administrative burdens on the states and local
governments by streamlining grants processes is beneficial, the
short time frame of the legislation does not allow for these
changes. In that regard, the conference agrees to retain
existing grant programs and authorizes them for FY 2013 and FY
2014 at current funding levels. The conference report adds
language allowing the Secretary to examine methods and
approaches for streamlining grants administration and processes
to reduce burdens for the states and local governments. The
conference report makes some administrative amendments to the
existing commercial driver license program improvement grant
that was included in the Senate bill. The conference also
retains the Senate provision requiring a report to Congress on
resuming the commercial vehicle information systems and
networks program.
Motorcoach Safety. The conference report includes
provisions addressing the safety of motorcoach operations. The
conference adopts the Senate approach, but modifies some
rulemaking and research requirements and removes registration
provisions. The conference report consolidates several research
and rulemakings related to fire prevention and mitigation. The
report amends language on assessing the feasibility of
retrofitting existing motorcoaches with safety requirements.
The report makes conforming definition changes regarding the
registration of motorcoaches. The registration provisions were
not included in the conference report because they are largely
redundant to the provisions in the report updating registration
requirements for all motor carriers.
The conference report also includes a Senate provision
for oversight of motorcoaches. The provision directs the
Secretary to establish a safety fitness system to rate motor
coaches, determine and assign a fitness rating for each motor
coach, periodically review the safety ratings and make public
the fitness ratings of each motorcoach.
The conference report includes a new provision that
directs the Secretary, to the extent feasible, to ensure that
motorcoach research programs and rulemaking are carried out
concurrently. The report also includes a provision requiring
the Secretary to review and report to Congress on the current
knowledge and skill testing requirements for a commercial
driver's license passenger endorsement. The conference
agreement removes a Senate rulemaking requirement on distracted
driving because FMCSA has already addressed this issue.
Truck, Size and Weight. The conference report includes
provisions directing the Secretary to study the effects of
truck, size and weight on highway safety and infrastructure and
compile a list of existing state truck size and weight laws.
The conference report amends the Senate study provisions. The
conference report includes language directing the Secretary to
consider the effects of trucks operating in excess of federal
law and regulations in comparison to those trucks that do not
operate in excess of federal law and regulations, when
assessing accident frequency and impacts to highway and bridge
infrastructure. The conference report adopts the Senate
requirement that the report must be submitted to Congress not
later than 2 years after enactment.
Financial responsibility requirements. The conference
report includes provisions addressing the financial
responsibility of freight-forwarders and brokers. These
provisions direct rulemakings to establish minimum financial
solvency and bonding requirements for these entities. The
conference agreement includes exemptions for air carrier and
customs brokers who are already subject to financial
responsibility requirements under federal law.
Enforcement. The Senate bill included several provisions
amending and updating FMCSA's enforcement authorities. The
conference report includes nine of the Senate provisions. Five
of the Senate enforcement provisions were not included in the
conference report: minimum prohibition on operation of unfit
carriers, minimum out of service penalties, failure to pay
civil penalty as a disqualifying offense, intrastate operations
of interstate motor carriers and enforcement of safety laws and
regulations.
Exemptions. The conference report amends an exemption for
the transportation of agricultural commodities by increasing
the permitted travel radius from 100 air-miles to 150 air-
miles. The conference report includes Senate language for a
narrow exemption from federal requirements for covered farm
vehicles. This conference report adopts the Senate language
directing the Secretary to study and report to Congress on the
safety impacts of the covered farm vehicle exemption.
Title III--Surface Transportation and Freight Policy Act of 2012
The Senate legislation included provisions establishing a
comprehensive national surface transportation system and
freight transportation policy. The policy would have provided
certainty to states and localities by requiring the development
of long term, strategic plans and directing transportation
investment data collection and evaluation efforts. This Senate
title had included provisions for safety standards to ensure
that the design of federal transportation projects provides for
adequate consideration of non-motorized users. The conference
report does not include this title.
Title IV--Hazardous Materials Transportation Safety Improvement Act of
2012
Training Programs. There is currently no uniform training
standard for hazardous materials (``hazmat'') inspectors and
investigators. The conference bill requires the Secretary to
establish standards for training these inspectors and
investigators. The conference report modifies the Senate bill
to require that the standards be developed not later than 18
months after enactment, and to clarify that the standards are
established as guidelines.
The conference report includes Senate provisions that
amend training requirements for emergency responders of
hazardous materials. These provisions direct that organizations
receiving grant funding to train emergency responders have the
ability to protect against accidents or incidents involving the
transportation of hazardous material in accordance with
existing regulations and standards.
The conference report adds language to permit ``portable
training'' which can be offered in any suitable setting rather
than specific, designated facilities. This provision is
included to allow training at locations and times convenient to
students and instructors. The conference report also adds
requirements to ensure that the emergency responder and hazmat
employee training grants be awarded through a competitive
process.
Data Collection and Research. The Senate bill recognized
the need for increased research and data collection on
hazardous materials programs and included a new pilot program
for paperless hazard communications. The program would permit
the Secretary to conduct pilot projects to evaluate the
feasibility and effectiveness of using paperless hazard
communications systems. The conference report includes these
provisions and adds a requirement to conduct a cost-benefit
analysis of the pilot projects and submit recommendations on
the analysis and other findings in the report to Congress.
The conference report includes Senate provisions
requiring an assessment of the Pipeline and Hazardous Materials
Safety Administration's (PHMSA) hazmat data collection,
analysis and reporting. These provisions require PHMSA to
develop an action plan and timeline to make improvements to its
systems. The conference report directs PHMSA to conduct the
assessment in consultation with Commandant of the Coast Guard,
in lieu of in coordination with the Secretary of Homeland
Security. This amendment was included because the Coast Guard
is more specifically involved in handling accidents and
investigations in the transportation of hazardous materials.
Hazmat Transportation. The conference report includes a
new requirement for the Secretary to study the safety of
transporting flammable liquids in the external pipes of cargo
tanks, ``wetlines.'' The report specifies that the Secretary
may not issue a rulemaking on ``wetlines'' until the study is
complete, but no later than two years after the date of
enactment. The conference report also modifies Senate
provisions that direct the Secretary to address transportation
of perishable material after inspection, training for
inspectors and the proper closing of packaging after
inspections, by requiring that these regulations be issued
within a year after enactment.
The Senate bill included a provision that requires
uniform regulations for the safe loading and unloading of
hazardous materials on and off tank cars and cargo tank trucks.
The provision was not included in the conference report due to
an ongoing rulemaking addressing the matter.
The conference report includes a Senate provision that
ensures States update the hazardous materials route registry
kept by the Department of Transportation.
Special permitting. The conference report amends
provisions included in the Senate bill on special permits. The
conference report removes some language regarding criteria for
special permits but includes the rulemaking provision for
special permit and approvals procedures. It directs a review
and analysis of special permits that have been in continuous
effect for a 10-year period to determine which permits can be
converted into the hazardous materials regulations (HMR). It
includes factors that the Secretary may consider in reviewing
special permits. After the analysis is complete, but no later
than 3 years after enactment, the report authorizes the
Secretary to issue regulations for incorporating special
permits into the HMR. The amended language also directs the
Secretary to publish in the Federal Register justification in
the case of special permits that are not appropriate for
incorporation into the HMR. Similarly, the amended language
includes a process to review a special permit for incorporation
into the regulations once that permit has been in effect for 10
years.
Motor carrier safety permits. The conference report
includes a provision directing the Secretary to conduct a
review of the implementation of the hazardous material safety
permit program. The conference report directs the Secretary to
consider factors, including the list of hazardous materials
requiring a safety permit, the criteria used by PHMSA to
determine whether a hazardous material safety permit issued by
a State is equivalent to the Federal permit, and actions to
improve the program including an additional level of fitness
review. Based on the findings of the review, the Secretary may
either issue a rulemaking to make any necessary improvements to
the program, or publish in the Federal Register justification
for why a rulemaking is not necessary.
Civil penalties. The conference report adds new language
amending civil penalties by removing the minimum penalty amount
for violations of hazardous materials laws and regulations. The
conference report also adds language amending penalties for
training violations. It includes a definition of ``obstruct''
regarding penalties for obstruction of inspections and
investigations.
Title V--National Rail System Preservation, Expansion and Development
Act of 2012
The Senate legislation included provisions that would
direct the Secretary, in collaboration with stakeholders, to
develop a long-range, national rail plan. Other provisions in
this title would amend statutory requirements for
implementation of positive train control, refine Surface
Transportation Board authorities and amend and update Amtrak's
environmental review, capital planning and financing, and
inspector general authorities. The conference report does not
include any of the provisions in this title.
Title VI--Sport Fish Restoration and Recreational Boating Safety Act of
2012
Sport Fish Restoration and Boating Trust Fund. The
conference report adopts Senate provisions to authorize
appropriations and amounts for administrative costs through FY
2013 for the Sport Fish Restoration and Boating Trust Fund. The
Trust Fund, often referred to as Wallop-Breaux, is the mainstay
of funding for State and Federal sport fish conservation and
recreational boating safety programs. Funds go to projects that
support sport fish conservation and habitat conservation in the
States, and to assist States in establishing and maintaining
recreational boating safety and boater education programs. The
Trust Fund receives income from the following five sources: (1)
motorboat fuel taxes; (2) annual tax receipts from small engine
fuel used for outdoor power equipment; (3) a manufacturers'
excise tax on sport fishing equipment; (4) import duties on
fishing tackle and on yachts and pleasure craft; and (5)
interest on funds invested prior to disbursal. All moneys
received in a given fiscal year are apportioned to the States
in the following fiscal year.
Title VII--Miscellaneous
Overflights in Grand Canyon National Park. The conference
report makes amendments to a Senate provision on aircraft noise
abatement at Grand Canyon National Park (GCNP). The provision
establishes standards to be used by the National Park Service
(NPS) in restoring natural quiet at GCNP, defines the term
``substantial restoration of natural quiet'' for the park, and
directs the NPS to take measures that promote adoption of quiet
technology aircraft at GCNP.
Commercial air tour operations. The conference report
amends a Senate provision for commercial air tour operations at
national parks. The report modifies existing statutory
authority to clarify the conditions under which the Director of
the NPS may deny an application to begin or expand commercial
air tour operations without developing an air tour management
plan at Crater Lake National Park and Great Smoky Mountains
National Park only.
PART I--EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY AND
RELATED TAXES
A. Extension of Highway Trust Fund Expenditure Authority and Extension
of Highway-Related Taxes
(secs. 141 and 142 of the House bill, secs. 40101 and 40102 of the
Senate amendment, secs. 40101 and 40102 of the conference agreement,
and secs. 4041, 4051, 4071, 4081, 4221, 4481, 4483, 6412, 9503, 9504,
and 9508 of the Code)\1\
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\1\Except where otherwise stated, all section references are to the
Internal Revenue Code of 1986, as amended (the ``Code'').
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PRESENT LAW HIGHWAY TRUST FUND EXCISE TAXES
In general
Six separate excise taxes are imposed to finance the
Federal Highway Trust Fund program. Three of these taxes are
imposed on highway motor fuels. The remaining three are a
retail sales tax on heavy highway vehicles, a manufacturers'
excise tax on heavy vehicle tires, and an annual use tax on
heavy vehicles. A substantial majority of the revenues produced
by the Highway Trust Fund excise taxes are derived from the
taxes on motor fuels. The annual use tax on heavy vehicles
expires October 1, 2013. Except for 4.3 cents per gallon of the
Highway Trust Fund fuels tax rates, the remaining taxes are
scheduled to expire after June 30, 2012. The 4.3-cents-per-
gallon portion of the fuels tax rates is permanent.\2\ The six
taxes are summarized below.
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\2\This portion of the tax rates was enacted as a deficit reduction
measure in 1993. Receipts from it were retained in the General Fund
until 1997 legislation provided for their transfer to the Highway Trust
Fund.
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Highway motor fuels taxes
The Highway Trust Fund motor fuels tax rates are as
follows:\3\
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\3\Secs. 4081(a)(2)(A)(i), 4081(a)(2)(A)(iii), 4041(a)(2),
4041(a)(3), and 4041(m). Some of these fuels also are subject to an
additional 0.1-cent-per-gallon excise tax to fund the Leaking
Underground Storage Tank Trust Fund (secs. 4041(d) and 4081(a)(2)(B)).
------------------------------------------------------------------------
------------------------------------------------------------------------
Gasoline....................... 18.3 cents per gallon
Diesel fuel and kerosene....... 24.3 cents per gallon
Alternative fuels.............. 18.3 or 24.3 cents per gallon
generally\4\
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\4\See secs. 4041(a)(2), 4041(a)(3), and 4041(m).
Non-fuel highway trust fund excise taxes
In addition to the highway motor fuels excise tax
revenues, the Highway Trust Fund receives revenues produced by
three excise taxes imposed exclusively on heavy highway
vehicles or tires. These taxes are:
1. A 12-percent excise tax imposed on the first retail
sale of heavy highway vehicles, tractors, and trailers
(generally, trucks having a gross vehicle weight in excess of
33,000 pounds and trailers having such a weight in excess of
26,000 pounds);\5\
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\5\Sec. 4051.
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2. An excise tax imposed on highway tires with a rated
load capacity exceeding 3,500 pounds, generally at a rate of
0.945 cents per 10 pounds of excess;\6\ and
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\6\Sec. 4071.
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3. An annual use tax imposed on highway vehicles having a
taxable gross weight of 55,000 pounds or more.\7\ (The maximum
rate for this tax is $550 per year, imposed on vehicles having
a taxable gross weight over 75,000 pounds.)
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\7\Sec. 4481.
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The taxable year for the annual use tax is from July 1st
through June 30th of the following year. For the period July 1,
2013, through September 30, 2013, the amount of the annual use
tax is reduced by 75 percent.\8\
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\8\Sec. 4482(c)(4) and (d).
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PRESENT LAW HIGHWAY TRUST FUND EXPENDITURE PROVISIONS
In general
Under present law, revenues from the highway excise
taxes, as imposed through June 30, 2012, generally are
dedicated to the Highway Trust Fund. Dedication of excise tax
revenues to the Highway Trust Fund and expenditures from the
Highway Trust Fund are governed by the Code.\9\ The Code
authorizes expenditures (subject to appropriations) from the
Highway Trust Fund through June 30, 2012, for the purposes
provided in authorizing legislation, as such legislation was in
effect on the date of enactment of the Surface Transportation
Extension Act of 2012.
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\9\Sec. 9503. The Highway Trust Fund statutory provisions were
placed in the Internal Revenue Code in 1982.
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Highway Trust Fund expenditure purposes
The Highway Trust Fund has a separate account for mass
transit, the Mass Transit Account.\10\ The Highway Trust Fund
and the Mass Transit Account are funding sources for specific
programs.
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\10\Sec. 9503(e)(1).
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Highway Trust Fund expenditure purposes have been revised
with each authorization Act enacted since establishment of the
Highway Trust Fund in 1956. In general, expenditures authorized
under those Acts (as the Acts were in effect on the date of
enactment of the most recent such authorizing Act) are
specified by the Code as Highway Trust Fund expenditure
purposes.\11\ The Code provides that the authority to make
expenditures from the Highway Trust Fund expires after June 30,
2012. Thus, no Highway Trust Fund expenditures may occur after
June 30, 2012, without an amendment to the Code.
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\11\The authorizing Acts that currently are referenced in the
Highway Trust Fund provisions of the Code are: the Highway Revenue Act
of 1956; Titles I and II of the Surface Transportation Assistance Act
of 1982; the Surface Transportation and Uniform Relocation Act of 1987;
the Intermodal Surface Transportation Efficiency Act of 1991; the
Transportation Equity Act for the 21st Century, the Surface
Transportation Extension Act of 2003, the Surface Transportation
Extension Act of 2004; the Surface Transportation Extension Act of
2004, Part II; the Surface Transportation Extension Act of 2004, Part
III; the Surface Transportation Extension Act of 2004, Part IV; the
Surface Transportation Extension Act of 2004, Part V; the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users; the SAFETEA-LU Technical Corrections Act of 2008; the
Surface Transportation Extension Act of 2010; the Surface
Transportation Extension Act of 2010, Part II; the Surface
Transportation Extension Act of 2011; the Surface Transportation
Extension Act of 2011, Part II, and the Surface Transportation
Extension Act of 2012.
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As noted above, section 9503 appropriates to the Highway
Trust Fund amounts equivalent to the taxes received from the
following: the taxes on diesel, gasoline, kerosene and special
motor fuel, the tax on tires, the annual heavy vehicle use tax,
and the tax on the retail sale of heavy trucks and
trailers.\12\ Section 9601 provides that amounts appropriated
to a trust fund pursuant to sections 9501 through 9511, are to
be transferred at least monthly from the General Fund of the
Treasury to such trust fund on the basis of estimates made by
the Secretary of the Treasury of the amounts referred to in the
Code section appropriating the amounts to such trust fund. The
Code requires that proper adjustments be made in amounts
subsequently transferred to the extent prior estimates were in
excess of, or less than, the amounts required to be
transferred.
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\12\Sec. 9503(b)(1).
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HOUSE BILL
Present-law expenditure authority and taxes are extended
for an additional three months, through September 30, 2012.
Effective date.--The provision is effective July 1, 2012.
SENATE AMENDMENT
The expenditure authority for the Highway Trust Fund is
extended through September 30, 2013. The Code provisions
governing the purposes for which monies in the Highway Trust
Fund may be spent are updated to include the reauthorization
bill, Moving Ahead for Progress for the 21st Century (MAP-
21).\13\
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\13\The provision also replaces cross-references to the Surface
Transportation Extension Act of 2011, Part II, with MAP-21, and
replaces April 1, 2012 references with October 1, 2013 in the Code
provisions governing the Leaking Underground Storage Tank Trust Fund,
and the Sport Fish Restoration and Boating Trust Fund.
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The provision extends the motor fuel taxes, and all three
non-fuel excise taxes at their current rates through September
30, 2015.\14\ The provision resolves the projected deficit in
the Highway Trust Fund, assures a cushion of $2.8 billion in
each account of the Highway Trust Fund, and creates a solvency
account available for use by either highways or mass transit.
Specifically, the Secretary of the Treasury is to transfer the
excess of (1) any amount appropriated to the Highway Trust Fund
before October 1, 2013, by reason of the provisions of this
bill, over (2) the amount necessary to meet the required
expenditures from the Highway Trust Fund as authorized in
section 9503(c) of the Code (which provides expenditure
authority from the Highway Trust Fund) for the period ending
before October 1, 2013. Amounts in the solvency account are
available for transfers to the Highway Account and the Mass
Transit Account in such amounts as determined necessary by the
Secretary to ensure that each account has a surplus balance of
$2.8 billion on September 30, 2013. The solvency account
terminates on September 30, 2013 and any remainder in the
solvency account remains in the Highway Trust Fund. The
Committee expects that the Secretary of the Treasury will
consult with the Secretary of Transportation in making
determinations concerning amounts necessary to meet required
expenditures and amounts necessary to ensure the cushion of
$2.8 billion.
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\14\The Leaking Underground Storage Tank Trust Fund financing rate
of 0.1 cent per gallon also is extended through September 30, 2015.
---------------------------------------------------------------------------
Effective date.--The provision is effective on April 1,
2012.
CONFERENCE AGREEMENT
The conference agreement provides for expenditure
authority through September 30, 2014. The Code provisions
governing the purposes for which monies in the Highway Trust
Fund may be spent are updated to include the conference
agreement bill, MAP-21. Cross-references to the reauthorization
bill in the Code provisions governing the Sport Fish
Restoration and Boating Trust Fund are also updated to include
the conference agreement bill. In general, the provision
extends the taxes dedicated to the Highway Trust Fund at their
present law rates through September 30, 2016, and for the heavy
vehicle use tax, through September 30, 2017.\15\
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\15\The Leaking Underground Storage Tank Trust Fund financing rate
also is extended through September 30, 2016. The provision also
corrects a potential drafting ambiguity regarding the taxable period as
reflected in prior legislation. The provision is effective as if
included in section 142 of the Surface Transportation Extension Act of
2011, Part II.
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Effective date.--The provision is effective July 1, 2012.
PART II--REVENUE PROVISIONS
A. Leaking Underground Storage Tank Trust Fund
(secs. 40301 and 40302 of the Senate amendment, sec. 40201 of the
conference agreement and secs. 9503 and 9508 of the Code)
PRESENT LAW
Leaking Underground Storage Tank Trust Fund financing rate
Fuels of a type subject to other trust fund excise taxes
generally are subject to an add-on excise tax of 0.1-cent-per-
gallon to fund the Leaking Underground Storage Tank (``LUST'')
Trust Fund.\16\ For example, the LUST excise tax applies to
gasoline, diesel fuel, kerosene, and most alternative fuels
subject to highway and aviation fuels excise taxes, and to
fuels subject to the inland waterways fuel excise tax. This
excise tax is imposed on both uses and parties subject to the
other taxes, and to situations (other than export) in which the
fuel otherwise is tax-exempt. For example, off-highway business
use of gasoline and off-highway use of diesel fuel and kerosene
generally are exempt from highway motor fuels excise tax.
Similarly, States and local governments and certain other
parties are exempt from such tax. Nonetheless, all such uses
and parties are subject to the 0.1-cent-per-gallon LUST excise
tax.
---------------------------------------------------------------------------
\16\Secs. 4041, 4042, and 4081.
---------------------------------------------------------------------------
Liquefied natural gas, compressed natural gas, and
liquefied petroleum gas are exempt from the LUST tax.
Additionally, methanol and ethanol fuels produced from coal
(including peat) are taxed at a reduced rate of 0.05 cents per
gallon.
The LUST tax is scheduled to expire after June 30,
2012.\17\
---------------------------------------------------------------------------
\17\For Federal budget scorekeeping purposes, the LUST Trust Fund
tax, like other excise taxes dedicated to trust funds, is assumed to be
permanent.
---------------------------------------------------------------------------
Overview of Leaking Underground Storage Tank Trust Fund expenditure
provisions
Amounts in the LUST Trust Fund are available, as provided
in appropriations Acts, for purposes of making expenditures to
carry out sections 9003(h)-(j), 9004(f), 9005(c), and 9010-9013
of the Solid Waste Disposal Act as in effect on the date of
enactment of Public Law 109-168. Any claim filed against the
LUST Trust Fund may be paid only out of such fund, and the
liability of the United States for claims is limited to the
amount in the fund.
The monies in the LUST Trust Fund are used to pay
expenses incurred by the Environmental Protection Agency (the
``EPA'') and the States for preventing, detecting, and cleaning
up leaks from petroleum underground storage tanks, as well as
programs to evaluate the compatibility of fuel storage tanks
with alternative fuels, MTBE additives, and ethanol and
biodiesel blends.
The EPA makes grants to States to implement the program,
and States use cleanup funds primarily to oversee and enforce
corrective actions by responsible parties. States and EPA also
use cleanup funds to conduct corrective actions where no
responsible party has been identified, where a responsible
party fails to comply with a cleanup order, in the event of an
emergency, and to take cost recovery actions against parties.
In 2005, Congress authorized the EPA and States to use trust
fund monies for non-cleanup purposes as well, specifically for
administration and enforcement of the leak prevention
requirements of the UST program.\18\
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\18\Pub. L. No. 109-58.
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HOUSE BILL
No provision.
SENATE AMENDMENT
The provision transfers $3 billion from the LUST Trust
Fund to the Highway Trust Fund. The provision also provides
that 0.033 cent of the 0.1 cent LUST Trust Fund financing rate
is dedicated to the Highway Trust Fund.\19\
---------------------------------------------------------------------------
\19\As noted above, the Leaking Underground Storage Tank Trust Fund
financing rate of 0.1 cent per gallon is also extended through
September 30, 2015.
---------------------------------------------------------------------------
Effective date.--The provision is effective on the date
of enactment.
CONFERENCE AGREEMENT
The conference agreement transfers $2.4 billion from the
LUST Trust Fund to the Highway Account of the Highway Trust
Fund.
The conference agreement does not include the Senate
amendment provision to transfer 0.033 cent of the 0.1 cent LUST
Trust Fund financing rate to the Highway Trust Fund.
Effective date.--The provision is effective on the date
of enactment.
B. Pension Funding Stabilization
(sec. 40312 of the Senate amendment, sec. 40211 of the conference
agreement, Code sec. 430, and ERISA secs. 101(f) and 303)
PRESENT LAW
Minimum funding rules
Defined benefit plans generally are subject to minimum
funding rules that require the sponsoring employer generally to
make a contribution for each plan year to fund plan
benefits.\20\ Parallel rules apply under the Employee
Retirement Income Security Act of 1974 (``ERISA''), which is
generally in the jurisdiction of the Department of Labor.\21\
The minimum funding rules for single-employer defined benefit
plans were substantially revised by the Pension Protection Act
of 2006 (``PPA'').\22\
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\20\Sec. 412. A number of exceptions to the minimum funding rules
apply. For example, governmental plans (within the meaning of section
414(d) and church plans (within the meaning of section 414(e)) are
generally not subject to the minimum funding rules. Under section 4971,
an excise tax applies to an employer maintaining a single-employer plan
if the minimum funding requirements are not satisfied.
\21\Sec. 302 of ERISA.
\22\Pub. L. No. 109-280. The PPA minimum funding rules for single-
employer plans are generally effective for plan years beginning after
December 31, 2007. Delayed effective dates apply to single-employer
plans sponsored by certain large defense contractors, multiple-employer
plans of some rural cooperatives, eligible charity plans, and single-
employer plans affected by settlement agreements with the Pension
Benefit Guaranty Corporation. Subsequent changes to the single-employer
plan and multiemployer plan funding rules (including temporary funding
relief) were made by the Worker, Retiree, and Employer Recovery Act of
2008 (``WRERA''), Pub. L. No. 110-458, and the Preservation of Access
to Care for Medicare Beneficiaries and Pension Relief Act of 2010
(``PRA 2010''), Public Law 111-192.
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Minimum required contributions
In general
The minimum required contribution for a plan year for a
single-employer defined benefit plan generally depends on a
comparison of the value of the plan's assets, reduced by any
prefunding balance or funding standard carryover balance (``net
value of plan assets''),\23\ with the plan's funding target and
target normal cost. The plan's funding target for a plan year
is the present value of all benefits accrued or earned as of
the beginning of the plan year. A plan's target normal cost for
a plan year is generally the present value of benefits expected
to accrue or to be earned during the plan year.
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\23\The value of plan assets is generally reduced by any prefunding
balance or funding standard carryover balance in determining minimum
required contributions, including for this purpose. A prefunding
balance results from contributions to a plan that exceed the minimum
required contributions. A funding standard carryover balance results
from a positive balance in the funding standard account that applied
under the funding requirements in effect before PPA. Subject to certain
conditions, a prefunding balance or funding standard carryover balance
may be credited against the minimum required contribution for a year,
reducing the amount that must be contributed.
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If the net value of plan assets is less than the plan's
funding target, so that the plan has a funding shortfall
(discussed further below), the minimum required contribution is
the sum of the plan's target normal cost and the shortfall
amortization charge for the plan year (determined as described
below).\24\ If the net value of plan assets is equal to or
exceeds the plan's funding target, the minimum required
contribution is the plan's target normal cost, reduced by the
amount, if any, by which the net value of plan assets exceeds
the plan's funding target.
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\24\If the plan has obtained a waiver of the minimum required
contribution (a funding waiver) within the past five years, the minimum
required contribution also includes the related waiver amortization
charge, that is, the annual installment needed to amortize the waived
amount in level installments over the five years following the year of
the waiver.
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Shortfall amortization charge
The shortfall amortization charge for a plan year is the
sum of the annual shortfall amortization installments
attributable to the shortfall bases for that plan year and the
six previous plan years. Generally, if a plan has a funding
shortfall for the plan year, a shortfall amortization base must
be established for the plan year.\25\ A plan's funding
shortfall is the amount by which the plan's funding target
exceeds the net value of plan assets. The shortfall
amortization base for a plan year is: (1) the plan's funding
shortfall, minus (2) the present value, determined using the
segment interest rates (discussed below), of the aggregate
total of the shortfall amortization installments that have been
determined for the plan year and any succeeding plan year with
respect to any shortfall amortization bases for the six
previous plan years. The shortfall amortization base is
amortized in level annual installments (``shortfall
amortization installments'') over a seven-year period beginning
with the current plan year and using the segment interest rates
(discussed below).\26\
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\25\If the value of plan assets, reduced only by any prefunding
balance if the employer elects to apply the prefunding balance against
the required contribution for the plan year, is at least equal to the
plan's funding target, no shortfall amortization base is established
for the year.
\26\Under PRA 2010, employers were permitted to elect to use one of
two alternative extended amortization schedules for up to two
``eligible'' plan years during the period 2008-2011. The use of an
extended amortization schedule has the effect of reducing the amount of
the shortfall amortization installments attributable to the shortfall
amortization base for the eligible plan year. However, the shortfall
amortization installments attributable to an eligible plan year may be
increased by an additional amount, an ``installment acceleration
amount,'' in the case of employee compensation exceeding $1 million,
extraordinary dividends, or stock redemptions within a certain period
of the eligible plan year.
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The shortfall amortization base for a plan year may be
positive or negative, depending on whether the present value of
remaining installments with respect to amortization bases for
previous years is more or less than the plan's funding
shortfall. If the shortfall amortization base is positive (that
is, the funding shortfall exceeds the present value of the
remaining installments), the related shortfall amortization
installments are positive. If the shortfall amortization base
is negative, the related shortfall amortization installments
are negative. The positive and negative shortfall amortization
installments for a particular plan year are netted when adding
them up in determining the shortfall amortization charge for
the plan year, but the resulting shortfall amortization charge
cannot be less than zero (i.e., negative amortization
installments may not offset normal cost).
If the net value of plan assets for a plan year is at
least equal to the plan's funding target for the year, so the
plan has no funding shortfall, any shortfall amortization bases
and related shortfall amortization installments are
eliminated.\27\ As indicated above, if the net value of plan
assets exceeds the plan's funding target, the excess is applied
against target normal cost in determining the minimum required
contribution.
---------------------------------------------------------------------------
\27\Any amortization base relating to a funding waiver for a
previous year is also eliminated.
---------------------------------------------------------------------------
Interest rate used to determine target normal cost and funding
target
The minimum funding rules for single-employer plans
specify the interest rates and other actuarial assumptions that
must be used in determining the present value of benefits for
purposes of a plan's target normal cost and funding target.
Present value is determined using three interest rates
(``segment'' rates), each of which applies to benefit payments
expected to be made from the plan during a certain period. The
first segment rate applies to benefits reasonably determined to
be payable during the five-year period beginning on the first
day of the plan year; the second segment rate applies to
benefits reasonably determined to be payable during the 15-year
period following the initial five-year period; and the third
segment rate applies to benefits reasonably determined to be
payable at the end of the 15-year period. Each segment rate is
a single interest rate determined monthly by the Secretary of
the Treasury (``Secretary'') on the basis of a corporate bond
yield curve, taking into account only the portion of the yield
curve based on corporate bonds maturing during the particular
segment rate period. The corporate bond yield curve used for
this purpose reflects the average, for the 24-month period
ending with the preceding month, of yields on investment grade
corporate bonds with varying maturities and that are in the top
three quality levels available. The Internal Revenue Service
(IRS) publishes the segment rates each month.
The present value of liabilities under a plan is
determined using the segment rates for the ``applicable month''
for the plan year. The applicable month is the month that
includes the plan's valuation date for the plan year, or, at
the election of the employer, any of the four months preceding
the month that includes the valuation date.
Solely for purposes of determining minimum required
contributions, in lieu of the segment rates described above, an
employer may elect to use interest rates on a yield curve based
on the yields on investment grade corporate bonds for the month
preceding the month in which the plan year begins (i.e.,
without regard to the 24-month averaging described above)
(``monthly yield curve''). If an election to use a monthly
yield curve is made, it cannot be revoked without IRS approval.
Use of segment rates for other purposes
In general
In addition to being used to determine a plan's funding
target and target normal cost, the segment rates are used also
for other purposes, either directly because the segment rates
themselves are specifically cross-referenced or indirectly
because funding target, target normal cost, or some other
concept, such as funding target attainment percentage
(discussed below) in which funding target or target normal cost
is an element, is cross-referenced elsewhere.
Funding target attainment percentage
A plan's funding target attainment percentage for a plan
year is the ratio, expressed as a percentage, that the net
value of plan assets bears to the plan's funding target for the
year. Special rules may apply to a plan if its funding target
attainment percentage is below a certain level. For example,
funding target attainment percentage is used to determine
whether a plan is in ``at-risk'' status, so that special
actuarial assumptions (``at-risk assumptions'') must be used in
determining the plan's funding target and target normal
cost.\28\ A plan is in at risk status for a plan year if, for
the preceding year: (1) the plan's funding target attainment
percentage, determined without regard to the at-risk
assumptions, was less than 80 percent, and (2) the plan's
funding target attainment percentage, determined using the at-
risk assumptions (without regard to whether the plan was in at-
risk status for the preceding year), was less than 70
percent.\29\ In addition, special reporting to the Pension
Benefit Guaranty Corporation (``PBGC'') may be required if a
plan's funding target attainment percentage is less than 80
percent.\30\
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\28\If a plan is in at-risk status, under section 409A(b)(3),
limitations apply on the employer's ability to set aside assets to
provide benefits under a nonqualified deferred compensation plan.
\29\A similar test applies in order for an employer to be permitted
to apply a prefunding balance against its required contribution, that
is, for the preceding year, the ratio of the value of plan assets
(reduced by any prefunding balance) must be at least 80 percent of the
plan's funding target (determined without regard to the at-risk rules).
\30\ERISA sec. 4010.
---------------------------------------------------------------------------
Restrictions on benefit increases, certain types of
benefits and benefit accruals (collectively referred to as
``benefit restrictions'') may apply to a plan if the plan's
adjusted funding target attainment percentage is below a
certain level.\31\ Adjusted funding target attainment
percentage is determined in the same way as funding target
attainment percentage, except that the net value of plan assets
and the plan's funding target are both increased by the
aggregate amount of purchases of annuities for employees, other
than highly compensated employees, made by the plan during the
two preceding plan years. Although anti-cutback rules generally
prohibit reductions in benefits that have already been earned
under a plan,\32\ reductions required to comply with the
benefit restrictions are permitted.
---------------------------------------------------------------------------
\31\Code sec. 436 and ERISA sec. 206(g).
\32\Code sec. 411(d)(6) and ERISA sec. 204(g).
---------------------------------------------------------------------------
Minimum and maximum lump sums, limits on deductible
contributions, retiree health
Defined benefit plans commonly allow a participant to
choose among various forms of benefit offered under the plan,
such as a lump-sum distribution. These optional forms of
benefit generally must be actuarially equivalent to the life
annuity benefit payable to the participant at normal retirement
age. For certain forms of benefit, such as lump sums, the
benefit amount cannot be less than the amount determined using
the segment rates and a specified mortality table.\33\ For this
purpose, however, the segment rates are determined on a monthly
basis, rather than using a 24-month average of corporate bond
rates.
---------------------------------------------------------------------------
\33\Code sec. 417(e) and ERISA sec. 205(g).
---------------------------------------------------------------------------
The amount of benefits under a defined benefit plan are
subject to certain limits.\34\ The segment rates used in
determining minimum lump sums (and certain other forms of
benefit) are also used in applying the benefit limits to lump
sums (and the certain other forms of benefit).
---------------------------------------------------------------------------
\34\Sec. 415(b).
---------------------------------------------------------------------------
Limits apply to the amount of plan contributions that may
be deducted by an employer.\35\ In the case of a single-
employer defined benefit plan, the plan's funding target and
target normal cost, determined using the segment rates that
apply for funding purposes, are taken into account in
calculating the limit on deductible contributions.
---------------------------------------------------------------------------
\35\Sec. 404.
---------------------------------------------------------------------------
Subject to various conditions, a qualified transfer of
excess assets of a single-employer defined benefit plan to a
retiree medical account within the plan may be made in order to
fund retiree health benefits.\36\ For this purpose, excess
assets generally means the excess, if any, of the value of the
plan's assets over 125 percent of the sum of the plan's funding
target and target normal cost for the plan year.
---------------------------------------------------------------------------
\36\Sec. 420. Under present law, a qualified transfer is not
permitted after December 31, 2013.
---------------------------------------------------------------------------
PBGC premiums and 4010 reporting
PBGC premiums apply with respect to defined benefit plans
covered by ERISA.\37\ In the case of a single-employer defined
benefit plan, flat-rate premiums apply at a rate of $35.00 per
participant for 2012.\38\ If a single-employer defined benefit
plan has unfunded vested benefits, variable-rate premiums also
apply at a rate of $9 per $1,000 of unfunded vested benefits
divided by the number of participants. For purposes of
determining variable-rate premiums, unfunded vested benefits
are equal to the excess (if any) of (1) the plan's funding
target for the year determined as under the minimum funding
rules, but taking into account only vested benefits, over (2)
the fair market value of plan assets. In determining the plan's
funding target for this purpose, the interest rates used are
segment rates determined as under the minimum funding rules,
but determined on a monthly basis, rather than using a 24-month
average of corporate bond rates.
---------------------------------------------------------------------------
\37\ERISA sec. 4006.
\38\Flat-rate premiums apply also to multiemployer defined benefit
plans at a rate of $9.00 per participant. Single-employer and
multiemployer flat-rate premium rates are indexed for inflation. The
rate of variable-rate premiums is not indexed.
---------------------------------------------------------------------------
In certain circumstances, the contributing sponsor of a
single-employer plan defined benefit pension plan covered by
the PBGC (and members of the contributing sponsor's controlled
group) must provide certain information to the PBGC (referred
to as ``section 4010 reporting'').\39\ This information
includes actuarial information with respect to single-employer
plans maintained by the contributing sponsor (and controlled
group members). Section 4010 reporting is required if: (1) the
funding target attainment percentage at the end of the
preceding plan year of a plan maintained by the contributing
sponsor or any member of its controlled group is less than 80
percent; (2) the conditions for imposition of a lien (i.e.,
required contributions totaling more than $1 million have not
been made) have occurred with respect to a plan maintained by
the contributing sponsor or any member of its controlled group;
or (3) minimum funding waivers in excess of $1 million have
been granted with respect to a plan maintained by the
contributing sponsor or any member of its controlled group and
any portion of the waived amount is still outstanding.
---------------------------------------------------------------------------
\39\ERISA sec. 4010.
---------------------------------------------------------------------------
Annual funding notice
The plan administrator of a defined benefit plan must
provide an annual funding notice to: (1) each participant and
beneficiary; (2) each labor organization representing such
participants or beneficiaries; and (4) the PBGC.\40\
---------------------------------------------------------------------------
\40\ERISA sec. 101(f). In the case of a multiemployer plan, the
notice must also be sent to each employer that has an obligation to
contribute under the plan;
---------------------------------------------------------------------------
In addition to the information required to be provided in
all funding notices, certain information must be provided in
the case of a single-employer defined benefit plan, including:
a statement as to whether the plan's funding target
attainment percentage (as defined under the minimum funding
rules) for the plan year to which the notice relates and the
two preceding plan years, is at least 100 percent (and, if not,
the actual percentages); and
a statement of (a) the total assets (separately stating
any funding standard carryover or prefunding balance) and the
plan's liabilities for the plan year and the two preceding
years, determined in the same manner as under the funding
rules, and (b) the value of the plan's assets and liabilities
as of the last day of the plan year to which the notice
relates, determined using fair market value and the interest
rate used in determining variable rate premiums.
A funding notice may also include any additional
information that the plan administrator elects to include to
the extent not inconsistent with regulations. The notice must
be written so as to be understood by the average plan
participant. As required under PPA, the Secretary of Labor has
issued a model funding notice that can be used to satisfy the
notice requirement.
HOUSE BILL
No provision.
SENATE AMENDMENT
The Senate amendment revises the rules for determining
the segment rates under the single-employer plan funding rules
by adjusting a segment rate if the rate determined under the
regular rules is outside a specified range of the average of
the segment rates for the preceding 25-year period (``average''
segment rates). In particular, if a segment rate determined for
an applicable month under the regular rules is less than the
applicable minimum percentage, the segment rate is adjusted
upward to match that percentage. If a segment rate determined
for an applicable month under the regular rules is more than
the applicable maximum percentage, the segment rate is adjusted
downward to match that percentage. For this purpose, the
average segment rate is the average of the segment rates
determined under the regular rules for the 25-year period
ending September 30 of the calendar year preceding the calendar
year in which the plan year begins. The Secretary is to
determine average segment rates on an annual basis and may
prescribe equivalent rates for any years in the 25-year period
for which segment rates determined under the regular rules are
not available. The Secretary is directed to publish the average
segment rates each month.
The applicable minimum percentage and the applicable
maximum percentage depend on the calendar year in which the
plan year begins as shown by the following table:
------------------------------------------------------------------------
The applicable The applicable
If the calendar year is: minimum maximum
percentage is: percentage is:
------------------------------------------------------------------------
2012............................ 90 percent........ 110 percent
2013............................ 85 percent........ 115 percent
2014............................ 80 percent........ 120 percent
2015............................ 75 percent........ 125 percent
2016 or later................... 70 percent........ 130 percent
------------------------------------------------------------------------
Thus, for example, if the first segment rate determined
for an applicable month under the regular rules for a plan year
beginning in 2012 is less than 90 percent of the average of the
first segment rates determined under the regular rules for the
25-year period ending September 30, 2011, the segment rate is
adjusted to 90 percent of the 25-year average.
The change in the method of determining segment rates
generally applies for the purposes for which segment rates are
used under present law, except for purposes of determining
minimum and maximum lump-sum benefits,\41\ limits on deductible
contributions to single-employer defined benefit plans, and
PBGC variable-rate premiums.
---------------------------------------------------------------------------
\41\The provision does not provide a specific exception for
determining maximum lump sum benefits. However, the exception for
minimum lump sum benefits applies by cross-reference.
---------------------------------------------------------------------------
Effective date.--The provision in the Senate Amendment is
generally effective for plan years beginning after December 31,
2011. Under a special rule, an employer may elect, for any plan
year beginning on or before the date of enactment and solely
for purposes of determining the plan's adjusted funding target
attainment percentage (used in applying the benefit
restrictions) for that year, not to have the provision apply. A
plan is not treated as failing to meet the requirements of the
anti-cutback rules solely by reason of an election under the
special rule.
CONFERENCE AGREEMENT
The conference agreement follows the Senate amendment
with several modifications.
Average segment rates
The change in the method of determining segment rates
generally applies for the purposes for which segment rates are
used under present law, except for purposes of minimum and
maximum lump-sum benefits,\42\ limits on deductible
contributions to single-employer defined benefit plans,
qualified transfers of excess pension assets to retiree medical
accounts,\43\ PBGC variable-rate premiums,\44\ and 4010
reporting to the PBGC.
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\42\The provision does not provide a specific exception for
determining maximum lump sum benefits. However, the exception for
minimum lump sum benefits applies by cross-reference.
\43\Another provision of the conference agreement extends to
December 31, 2021, the ability to make a qualified transfer. In
addition, another provision of the conference agreement allows
qualified transfers to be made to provide group-term life insurance
benefits.
\44\Another provision of the conference agreement increases PBGC
flat-rate and variable-rate premiums.
---------------------------------------------------------------------------
The special effective date rule is modified under the
conference agreement so that an employer may elect, for any
plan year beginning before January 1, 2013, not to have the
provision apply either (1) for all purposes for which the
provision would otherwise apply, or (2) solely for purposes of
determining the plan's adjusted funding target attainment
percentage (used in applying the benefit restrictions) for that
year. A plan is not treated as failing to meet the requirements
of the anti-cutback rules solely by reason of an election under
the special rule.
Under the conference agreement, if, as of the date of
enactment, an employer election is in effect to use a monthly
yield curve in determining minimum required contributions,
rather than segment rates, the employer may revoke the election
(and use segment rates, as modified by the conference agreement
provision) without obtaining IRS approval. The revocation must
be made at any time before the date that is one year after the
date of enactment, and the revocation will be effective for the
first plan year to which the amendments made by the provision
apply and all subsequent plan years. The employer is not
precluded from making a subsequent election to use a monthly
yield curve in determining minimum required contributions in
accordance with present law.
Annual funding notice
The conference agreement requires additional information
to be included in the annual funding notice in the case of an
applicable plan year. For this purpose, an applicable plan year
is any plan year beginning after December 31, 2011, and before
January 1, 2015, for which (1) the plan's funding target,
determined using segment rates as adjusted to reflect average
segment rates (``adjusted'' segment rates), is less than 95
percent of the funding target determined without regard to
adjusted segment rates (that is, determined as under present
law), (2) the plan has a funding shortfall, determined without
regard to adjusted segment rates, greater than $500,000 and (3)
the plan had 50 or more participants on any day during the
preceding plan year.
The additional information that must be provided is:
a statement that MAP-21 modified the method for
determining the interest rates used to determine the actuarial
value of benefits earned under the plan, providing for a 25-
year average of interest rates to be taken into account in
addition to a 2-year average;
a statement that, as a result of MAP-21, the plan sponsor
may contribute less money to the plan when interest rates are
at historical lows, and
a table showing, for the applicable plan year and each of
the two preceding plan years, the plan's funding target
attainment percentage, funding shortfall, and the employer's
minimum required contribution, each determined both using
adjusted segment rates and without regard to adjusted segment
rates (that is, as under present law). In the case of a
preceding plan year beginning before January 1, 2012, the
plan's funding target attainment percentage, funding shortfall,
and the employer's minimum required contribution provided are
determined only without regard to adjusted segment rates (that
is, as under present law).
As under present law, a funding notice may also include
any additional information that the plan administrator elects
to include to the extent not inconsistent with regulations. For
example, a funding notice may include a statement of the amount
of the employer's actual or planned contributions to the plan.
The Secretary of Labor is directed to modify the model
funding notice required so that the model includes the
additional information in a prominent manner, for example, on a
separate first page before the remainder of the notice.
C. Transfer of Excess Pension Assets
(secs. 40310 and 40311 of the Senate amendment, secs. 40241 and 40242
of the conference agreement, and sec. 420 of the Code)
PRESENT LAW
Defined benefit pension plan reversions
Defined benefit plan assets generally may not revert to
an employer prior to termination of the plan and satisfaction
of all plan liabilities.\45\ Upon plan termination, the accrued
benefits of all plan participants are required to be 100-
percent vested. A reversion prior to plan termination may
constitute a prohibited transaction and may result in plan
disqualification. Any assets that revert to the employer upon
plan termination are includible in the gross income of the
employer and subject to an excise tax. The excise tax rate is
20 percent if the employer maintains a replacement plan or
makes certain benefit increases in connection with the
termination; if not, the excise tax rate is 50 percent. Medical
benefits and life insurance benefits provided under a pension
plan
---------------------------------------------------------------------------
\45\In addition, a reversion may occur only if the terms of the
plan so provide.
---------------------------------------------------------------------------
Retiree medical accounts
A pension plan may provide medical benefits to retired
employees through a separate account that is part of a defined
benefit plan (``retiree medical accounts'').\46\ Medical
benefits provided through a retiree medical account are
generally not includible in the retired employee's gross
income.\47\
---------------------------------------------------------------------------
\46\Sec. 401(h) and Treas. Reg. sec. 1.401-1(b).
\47\Treas. Reg. sec. 1.72-15(h).
---------------------------------------------------------------------------
Transfers of excess pension assets
In general
A qualified transfer of excess assets of a defined
benefit plan, including a multiemployer plan,\48\ to a retiree
medical account within the plan may be made in order to fund
retiree health benefits.\49\ A qualified transfer does not
result in plan disqualification, is not a prohibited
transaction, and is not treated as a reversion. Thus,
transferred assets are not includible in the gross income of
the employer and are not subject to the excise tax on
reversions. No more than one qualified transfer may be made in
any taxable year. No qualified transfer may be made after
December 31, 2013.
---------------------------------------------------------------------------
\48\The Pension Protection Act of 2006 (``PPA''), Pub. L. No. 109-
280, extended the application of the rules for qualified transfers to
multiemployer plans with respect to transfers made in taxable years
beginning after December 31, 2006. However, the rules for qualified
future transfers and collectively bargained transfers do not apply to
multiemployer plans.
\49\Sec. 420.
---------------------------------------------------------------------------
Excess assets generally means the excess, if any, of the
value of the plan's assets\50\ over 125 percent of the sum of
the plan's funding target and target normal cost for the plan
year. In addition, excess assets transferred in a qualified
transfer may not exceed the amount reasonably estimated to be
the amount that the employer will pay out of such account
during the taxable year of the transfer for qualified current
retiree health liabilities. No deduction is allowed to the
employer for (1) a qualified transfer, or (2) the payment of
qualified current retiree health liabilities out of transferred
funds (and any income thereon). In addition, no deduction is
allowed for amounts paid other than from transferred funds for
qualified current retiree health liabilities to the extent such
amounts are not greater than the excess of (1) the amount
transferred (and any income thereon), over (2) qualified
current retiree health liabilities paid out of transferred
assets (and any income thereon). An employer may not contribute
any amount to a health benefits account or welfare benefit fund
with respect to qualified current retiree health liabilities
for which transferred assets are required to be used.
---------------------------------------------------------------------------
\50\The value of plan assets for this purpose is the lesser of fair
market value or actuarial value.
---------------------------------------------------------------------------
Transferred assets (and any income thereon) must be used
to pay qualified current retiree health liabilities for the
taxable year of the transfer. Transferred amounts generally
must benefit pension plan participants, other than key
employees, who are entitled upon retirement to receive retiree
medical benefits through the separate account. Retiree health
benefits of key employees may not be paid out of transferred
assets.
Amounts not used to pay qualified current retiree health
liabilities for the taxable year of the transfer are to be
returned to the general assets of the plan. These amounts are
not includible in the gross income of the employer, but are
treated as an employer reversion and are subject to a 20-
percent excise tax.
In order for the transfer to be qualified, accrued
retirement benefits under the pension plan generally must be
100-percent vested as if the plan terminated immediately before
the transfer (or in the case of a participant who separated in
the one-year period ending on the date of the transfer,
immediately before the separation).
In order for a transfer to be qualified, there is
maintenance of effort requirement under which, the employer
generally must maintain retiree health benefits at the same
level for the taxable year of the transfer and the following
four years.
In addition, the Employee Retirement Income Security Act
of 1974 (``ERISA'')\51\ provides that, at least 60 days before
the date of a qualified transfer, the employer must notify the
Secretary of Labor, the Secretary of the Treasury, employee
representatives, and the plan administrator of the transfer,
and the plan administrator must notify each plan participant
and beneficiary of the transfer.\52\
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\51\Pub. L. No. 93-406.
\52\ERISA sec. 101(e). ERISA also provides that a qualified
transfer is not a prohibited transaction under ERISA or a prohibited
reversion.
---------------------------------------------------------------------------
Qualified future transfers and collectively bargained
transfers
If certain requirements are satisfied, transfers of
excess pension assets under a single-employer plan to retiree
medical accounts to fund the expected cost of retiree medical
benefits are permitted for the current and future years (a
``qualified future transfer'') and such transfers are also
allowed in the case of benefits provided under a collective
bargaining agreement (a ``collectively bargained
transfer'').\53\ Transfers must be made for at least a two-year
period. An employer can elect to make a qualified future
transfer or a collectively bargained transfer rather than a
qualified transfer. A qualified future transfer or collectively
bargained transfer must meet the requirements applicable to
qualified transfers, except that the provision modifies the
rules relating to: (1) the determination of excess pension
assets; (2) the limitation on the amount transferred; and (3)
the maintenance of effort requirement. The general sunset
applicable to qualified transfer applies (i.e., no transfers
can be made after December 31, 2013).
---------------------------------------------------------------------------
\53\The rules for qualified transfers and collectively bargained
transfers were added by the PPA and apply to transfers after the date
of enactment (August 17, 2006).
---------------------------------------------------------------------------
Qualified future transfers and collectively bargained
transfers can be made to the extent that plan assets exceed 120
percent of the sum of the plan's funding target and the normal
cost for the plan year. During the transfer period, the plan's
funded status must be maintained at the minimum level required
to make transfers. If the minimum level is not maintained, the
employer must make contributions to the plan to meet the
minimum level or an amount required to meet the minimum level
must be transferred from the health benefits account. The
transfer period is the period not to exceed a total of ten
consecutive taxable years beginning with the taxable year of
the transfer. As previously discussed, the period must be not
less than two consecutive years.
Employer provided group-term life insurance
Group-term life insurance coverage provided under a
policy carried by an employer is includible in the gross income
of an employee (including a former employee) but only to the
extent that the cost exceeds the sum of the cost of $50,000 of
such insurance plus the amount, if any, paid by the employee
toward the purchase of such insurance.\54\ Special rules apply
for determining the cost of group-term life insurance that is
includible in gross income under a discriminatory group-term
life insurance plan.
---------------------------------------------------------------------------
\54\Sec. 79.
---------------------------------------------------------------------------
A pension plan may provide life insurance benefits for
employees (including retirees) but only to the extent that the
benefits are incidental to the retirement benefits provided
under the plan.\55\ The cost of term life insurance provided
through a pension plan is includible in the employee's gross
income.\56\
---------------------------------------------------------------------------
\55\Treas. Reg. sec. 1.401-1(b).
\56\Secs. 72(m)(3) and 79(b)(3).
---------------------------------------------------------------------------
HOUSE BILL
No provision.
SENATE AMENDMENT
Extension of existing provisions
The provision allows qualified transfers, qualified
future transfers, and collectively bargained transfers to
retiree medical accounts to be made through December 31, 2021.
No transfers are permitted after that date.
Transfers to fund retiree group-term life insurance permitted
The provision allows qualified transfers, qualified
future transfers, and collectively bargained transfers to be
made to fund the purchase of retiree group-term life insurance.
The assets transferred for the purchase of group-term life
insurance must be maintained in a separate account within the
plan (``retiree life insurance account''), which must be
separate both from the assets in the retiree medical account
and from the other assets in the defined benefit plan.
Under the provision, the general rule that the cost of
group-term life insurance coverage provided under a defined
benefit plan is includable in gross income of the participant
does not apply to group-term life insurance provided through a
retiree life insurance account. Instead, the general rule for
determining the amount of employer-provided group-term life
insurance that is includible in gross income applies. However,
group-term life insurance coverage is permitted to be provided
through a retiree life insurance account only to the extent
that it is not includible in gross income. Thus, generally,
only group-term life insurance not in excess of $50,000 may be
purchased with such transferred assets.
Generally, the present law rules for transfers of excess
pension assets to retiree medical accounts to fund retiree
health benefits also apply to transfers to retiree life
insurance accounts to fund retiree group-term life. However,
generally, the rules are applied separately. Thus, for example,
the one-transfer-a-year rule generally applies separately to
transfers to retiree life insurance accounts and transfers to
retiree medical accounts. Further, the maintenance of effort
requirement for qualified transfers applies separately to life
insurance benefits and health benefits. Similarly, for
qualified future transfers and collectively bargained transfers
for retiree group-term life insurance, the maintenance of
effort and other special rules are applied separately to
transfers to retiree life insurance accounts and retiree
medical accounts.
Reflecting the inherent differences between life
insurance coverage and health coverage, certain rules are not
applied to transfers to retiree life insurance accounts, such
as the special rules allowing the employer to elect to
determine the applicable employer cost for health coverage
during the cost maintenance period separately for retirees
eligible for Medicare and retirees not eligible for Medicare.
However, a separate test is allowed for the cost of retiree
group-term life insurance for retirees under age 65 and those
retirees who have reached age 65.
The provision makes other technical and conforming
changes to the rules for transfers to fund retiree health
benefits and removes certain obsolete (``deadwood'') rules.
The same sunset applicable to qualified transfers,
qualified future transfers, and collectively bargained
transfers to retiree medical accounts applies to transfers to
retiree life insurance accounts (i.e., no transfers can be made
after December 31, 2021).
Effective date.--The provision applies to transfers made
after the date of enactment.
CONFERENCE AGREEMENT
The conference agreement includes the Senate amendment
provision.
D. Exception from Early Distribution Tax for Annuities Under Phased
Retirement Program
(sec. 100111 of conference agreement and sec. 72(t) of the Code)
PRESENT LAW
The Code imposes an early distribution tax on
distributions made from qualified retirement plans before an
employee attains age 59\1/2\.\57\ The tax is equal to 10
percent of the amount of the distribution that is includible in
gross income. The 10-percent tax is in addition to the taxes
that would otherwise be due on distribution. Certain exceptions
to the early distribution tax apply including an exception for
distributions after separation from service with the employer
after attaining age 55, or in the form of substantially equal
periodic payments from the qualified retirement plan commencing
after separation from service at any age. However, there is no
exception for annuity payments that commence before separating
from service with the employer.
---------------------------------------------------------------------------
\57\Sec. 72(t). The early distribution tax also applies to
distributions from section 403(b) plans and IRAs but does not apply to
distributions from governmental section 457(b) plans.
---------------------------------------------------------------------------
HOUSE BILL
No provision.
SENATE AMENDMENT
No provision.
CONFERENCE AGREEMENT
The Senate amendment and the Conference agreement include
a new Federal Phased Retirement Program under which a Federal
agency may allow a full-time retirement eligible employee to
elect to enter phased retirement status in accordance with
regulations issued by the Office of Personnel Management
(OPM).\58\ During that status, generally, the employee's work
schedule is a percentage of a full time work schedule, and the
employee receives a phased retirement annuity. At full-time
retirement, the phased retiree is entitled to a composite
retirement annuity that also includes the portion of the
employee's retirement annuity attributable to the reduced work
schedule. The Conference agreement includes an exception to the
early distribution tax for payments under a phased retirement
annuity and a composite retirement annuity received by an
employee participating in this new Federal Phased Retirement
Program.
---------------------------------------------------------------------------
\58\See the explanation for section 100111 of the Conference
agreement for a description of the new Federal Phased Retirement
Program.
---------------------------------------------------------------------------
Effective date.--The provision is effective on the
effective date of implementing regulations issued by OPM
implementing the Federal Phased Retirement Program.
E. Additional Transfers to the Highway Trust Fund
(sec. 40313 of the Senate amendment, sec. 40251 of the conference
agreement, and sec. 9503 of the Code)
PRESENT LAW
Public Law No. 111-46, an Act to restore funds to the
Highway Trust Fund, provided that out of money in the Treasury
not otherwise appropriated, $7 billion was appropriated to the
Highway Trust Fund effective August 7, 2009. The Hiring
Incentives to Restore Employment Act (the ``HIRE Act'')
provided that out of money in the Treasury not otherwise
appropriated, $14,700,000,000 is appropriated to the Highway
Trust Fund and $4,800,000,000 is appropriated to the Mass
Transit Account in the Highway Trust Fund.
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision provides that out of money in the Treasury
not otherwise appropriated, the following transfers are to be
made from the General Fund to the Highway Trust Fund: $2,183
million in FY 2012, $2,277 million in FY 2013, and $510 million
in FY 2014.
Effective date.--The provision is effective on the date
of enactment.
CONFERENCE AGREEMENT
The conference agreement provides that out of money in
the Treasury not otherwise appropriated, the following
transfers are to be made from the General Fund to the Highway
Trust Fund:
------------------------------------------------------------------------
FY 2013 FY 2014
------------------------------------------------------------------------
Highway Account......................... $6.2 billion $10.4 billion
Mass Transit Account.................... .............. $2.2 billion
------------------------------------------------------------------------
Effective date.--The provision is effective on the date
of enactment.
F. Expand the Definition of a Tobacco Manufacturer to Include
Businesses Making Available Roll-Your-Own Cigarette Machines for
Consumer Use
(sec. 100116 of the Senate amendment, section 100112 of the conference
agreement, and sec. 5702(d) of the Code)
PRESENT LAW
Tobacco products and cigarette papers and tubes
manufactured in the United States or imported into the United
States are subject to Federal excise tax at the following
rates:\59\
---------------------------------------------------------------------------
\59\Sec. 5701.
---------------------------------------------------------------------------
Cigars weighing not more than three pounds per
thousand (``small cigars'') are taxed at the rate of
$50.33 per thousand;
Cigars weighing more than three pounds per thousand
(``large cigars'') are taxed at the rate equal to 52.75
percent of the manufacturer's or importer's sales price
but not more than 40.26 cents per cigar;
Cigarettes weighing not more than three pounds per
thousand (``small cigarettes'') are taxed at the rate
of $50.33 per thousand ($1.0066 per pack);
Cigarettes weighing more than three pounds per
thousand (``large cigarettes'') are taxed at the rate
of $105.69 per thousand, except that, if they measure
more than six and one-half inches in length, they are
taxed at the rate applicable to small cigarettes,
counting each two and three-quarter inches (or fraction
thereof) of the length of each as one cigarette;
Cigarette papers are taxed at the rate of 3.15
cents for each 50 papers or fractional part thereof,
except that, if they measure more than six and one-half
inches in length, they are taxable by counting each two
and three-quarter inches (or fraction thereof) of the
length of each as one cigarette paper;
Cigarette tubes are taxed at the rate of 6.30 cents
for each 50 tubes or fractional part thereof, except
that, if they measure more than six and one-half inches
in length, they are taxable by counting each two and
three-quarter inches (or fraction thereof) of the
length of each as one cigarette tube;
Snuff is taxed at the rate of $1.51 per pound, and
proportionately at that rate on all fractional parts of
a pound;
Chewing tobacco is taxed at the rate of 50.33 cents
per pound, and proportionately at that rate on all
fractional parts of a pound;
Pipe tobacco is taxed at the rate of $2.8311 per
pound, and proportionately at that rate on all
fractional parts of a pound; and
Roll-your-own tobacco is taxed at the rate of
$24.78 per pound, and proportionately at that rate on
all fractional parts of a pound.
In general, the excise tax on tobacco products and
cigarette papers and tubes manufactured in the United States
comes into existence when the products are manufactured and is
determined and payable when the tobacco products or cigarette
papers and tubes are removed from the bonded premises of the
manufacturer. ``Tobacco products'' means cigars, cigarettes,
smokeless tobacco (snuff and chewing tobacco), pipe tobacco,
and roll your own tobacco. Processed tobacco is regulated under
the internal revenue laws but no excise tax is imposed. Tobacco
products and cigarette papers and tubes may be exported from
the United States without payment of tax.
Manufacturers and importers of tobacco products or
processed tobacco are subject to certain permitting, bonding,
reporting, and record keeping requirements. ``Manufacturer of
tobacco products'' means any person who manufactures cigars,
cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own
tobacco. There is an exception for a person who produces these
products for their own personal consumption or use.
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision amends the definition of manufacturer of
tobacco products to include any person who for commercial
purposes makes available machines capable of making tobacco
products for consumer use. This includes making a machine
available for consumers to produce tobacco products for
personal consumption or use. The addition of this provision is
not intended to change the treatment of such machines under
present law, or to make taxable the sale, at retail, for a
consumer's personal home use, a machine designed to produce
tobacco only in personal use quantities, where the machine is
not used on the retail premises.
For purposes of imposing the tax liability, the person
making the machine available for consumer use is deemed to be
the person making the removal with respect to any tobacco
products manufactured by the machine.
Effective date.--The provision is effective for articles
removed after the date of enactment.
CONFERENCE AGREEMENT
The conference agreement includes the Senate amendment
with the following modification. The provision is modified to
clarify that a person who sells a machine directly to a
consumer at retail for the consumer's personal home use is not
a manufacturer of tobacco products under the provision if the
machine is not used at a retail establishment and is designed
to produce only personal use quantities.
PART III--OTHER ITEMS
A. Small Issuer Exception to Tax-Exempt Interest Expense Allocation
Rules for Financial Institutions
(sec. 40201 of the Senate amendment and sec. 265 of the Code)
PRESENT LAW
Present law disallows a deduction for interest on
indebtedness incurred or continued to purchase or carry
obligations the interest on which is exempt from tax.\60\ In
general, an interest deduction is disallowed only if the
taxpayer has a purpose of using borrowed funds to purchase or
carry tax-exempt obligations; a determination of the taxpayer's
purpose in borrowing funds is made based on all of the facts
and circumstances.\61\
---------------------------------------------------------------------------
\60\Sec. 265(a).
\61\See Rev. Proc. 72-18, 1972-1 C.B. 740.
---------------------------------------------------------------------------
Financial institutions
In the case of a financial institution, the Code
generally disallows that portion of the taxpayer's interest
expense that is allocable to tax-exempt interest.\62\ The
amount of interest that is disallowed is an amount which bears
the same ratio to such interest expense as the taxpayer's
average adjusted bases of tax-exempt obligations acquired after
August 7, 1986, bears to the average adjusted bases for all
assets of the taxpayer.
---------------------------------------------------------------------------
\62\Sec. 265(b)(1). A ``financial institution'' is any person that
(1) accepts deposits from the public in the ordinary course of such
person's trade or business and is subject to Federal or State
supervision as a financial institution or (2) is a corporation
described by section 585(a)(2). Sec. 265(b)(5).
---------------------------------------------------------------------------
Exception for certain obligations of qualified small
issuers
The general rule in section 265(b), denying financial
institutions' interest expense deductions allocable to tax-
exempt obligations, does not apply to ``qualified tax-exempt
obligations.''\63\ Instead, as discussed in the next section,
only 20 percent of the interest expense allocable to
``qualified tax-exempt obligations'' is disallowed.\64\ A
``qualified tax-exempt obligation'' is a tax-exempt obligation
that is (1) issued after August 7, 1986, by a qualified small
issuer, (2) not a private activity bond, and (3) designated by
the issuer as qualifying for the exception from the general
rule of section 265(b).
---------------------------------------------------------------------------
\63\Sec. 265(b)(3).
\64\Secs. 265(b)(3)(A), 291(a)(3) and 291(e)(1).
---------------------------------------------------------------------------
A ``qualified small issuer'' is an issuer that reasonably
anticipates that the amount of tax-exempt obligations that it
will issue during the calendar year will be $10 million or
less.\65\ The Code specifies the circumstances under which an
issuer and all subordinate entities are aggregated.\66\ For
purposes of the $10 million limitation, an issuer and all
entities that issue obligations on behalf of such issuer are
treated as one issuer. All obligations issued by a subordinate
entity are treated as being issued by the entity to which it is
subordinate. An entity formed (or availed of) to avoid the $10
million limitation and all entities benefiting from the device
are treated as one issuer.
---------------------------------------------------------------------------
\65\Sec. 265(b)(3)(C).
\66\Sec. 265(b)(3)(E).
---------------------------------------------------------------------------
Composite issues (i.e., combined issues of bonds for
different entities) qualify for the ``qualified tax-exempt
obligation'' exception only if the requirements of the
exception are met with respect to (1) the composite issue as a
whole (determined by treating the composite issue as a single
issue) and (2) each separate lot of obligations that is part of
the issue (determined by treating each separate lot of
obligations as a separate issue).\67\ Thus a composite issue
may qualify for the exception only if the composite issue
itself does not exceed $10 million, and if each issuer
benefitting from the composite issue reasonably anticipates
that it will not issue more than $10 million of tax-exempt
obligations during the calendar year, including through the
composite arrangement.
---------------------------------------------------------------------------
\67\Sec. 265(b)(3)(F).
---------------------------------------------------------------------------
Special rules providing modifications to qualified small
issuer exception for certain issues in 2009 and
2010
With respect to tax-exempt obligations issued during 2009
and 2010, the special rules increased from $10 million to $30
million the annual limit for qualified small issuers.
In addition, in the case of a ``qualified financing
issue'' issued in 2009 or 2010, the special rules applied the
$30 million annual volume limitation at the borrower level
(rather than at the level of the pooled financing issuer).
Thus, for the purpose of applying the requirements of the
section 265(b)(3) qualified small issuer exception, the portion
of the proceeds of a qualified financing issue that are loaned
to a ``qualified borrower'' that participates in the issue were
treated as a separate issue with respect to which the qualified
borrower is deemed to be the issuer.
A ``qualified financing issue'' was any composite,
pooled, or other conduit financing issue the proceeds of which
were used directly or indirectly to make or finance loans to
one or more ultimate borrowers all of whom are qualified
borrowers. A ``qualified borrower'' meant (1) a State or
political subdivision of a State or (2) an organization
described in section 501(c)(3) and exempt from tax under
section 501(a). Thus, for example, a $100 million pooled
financing issue that was issued in 2009 would qualify for the
section 265(b)(3) exception if the proceeds of such issue were
used to make four equal loans of $25 million to four qualified
borrowers. However, if (1) more than $30 million were loaned to
any qualified borrower, (2) any borrower were not a qualified
borrower, or (3) any borrower would, if it were the issuer of a
separate issue in an amount equal to the amount loaned to such
borrower, fail to meet any of the other requirements of section
265(b)(3), the entire $100 million pooled financing issue
failed to qualify for the exception.
For purposes of determining whether an issuer meets the
requirements of the small issuer exception, under the special
rules, qualified 501(c)(3) bonds issued in 2009 or 2010 were
treated as if they were issued by the 501(c)(3) organization
for whose benefit they were issued (and not by the actual
issuer of such bonds). In addition, in the case of an
organization described in section 501(c)(3) and exempt from
taxation under section 501(a), requirements for ``qualified
financing issues'' were applied as if the section 501(c)(3)
organization were the issuer. Thus, in any event, an
organization described in section 501(c)(3) and exempt from
taxation under section 501(a) was limited to the $30 million
per issuer cap for qualified tax exempt obligations described
in section 265(b)(3).
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision extends the special rules providing
modifications to the qualified small issuer exception to bonds
issued after June 30, 2012 and before July 1, 2013.
Effective date.--The provision is effective for
obligations issued after June 30, 2012.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
B. Temporary Modification of Alternative Minimum Tax Limitations on
Tax-Exempt Bonds (sec. 40202 of the Senate amendment and secs. 56 and
57 of the Code)
PRESENT LAW
Present law imposes an alternative minimum tax (``AMT'')
on individuals and corporations. AMT is the amount by which the
tentative minimum tax exceeds the regular income tax. The
tentative minimum tax is computed based upon a taxpayer's
alternative minimum taxable income (``AMTI''). AMTI is the
taxpayer's taxable income modified to take into account certain
preferences and adjustments. One of the preference items is
tax-exempt interest on certain tax-exempt bonds issued for
private activities.\68\ Also, in the case of a corporation, an
adjustment based on current earnings is determined, in part, by
taking into account 75 percent of certain items, including tax-
exempt interest, excluded from taxable income but included in
the corporation's earnings and profits.\69\
---------------------------------------------------------------------------
\68\Sec. 57(a)(5).
\69\Sec. 56(g)(4)(B).
---------------------------------------------------------------------------
The American Recovery and Reinvestment Act of 2009
(``2009 Act'') provided that tax-exempt interest on private
activity bonds issued in 2009 and 2010 is not an item of tax
preference for purposes of the AMTI and interest on tax exempt
bonds issued in 2009 and 2010 is not included in the corporate
adjustment based on current earnings.
For these purposes, a refunding bond generally is treated
as issued on the date of the issuance of the refunded bond (or
in the case of a series of refundings, the original bond).
However, the 2009 Act provided that tax-exempt interest on
bonds issued in 2009 and 2010 to currently refund a bond issued
after December 31, 2003, and before January 1, 2009, is not an
item of tax preference for purposes of the AMT and is not
included in the corporate adjustment based on current earnings.
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision provides that tax-exempt interest on
private activity bonds issued after the date of enactment and
before January 1, 2013, is not an item of tax preference for
purposes of the AMT and interest on tax exempt bonds issued
during this period is not included in the corporate adjustment
based on current earnings. For these purposes, a refunding bond
is treated as issued on the date of the issuance of the
refunded bond (or in the case of a series of refundings, the
original bond).
Effective date.--The provision applies to interest on
bonds issued after the date of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
C. Issuance of TRIP Bonds by State Infrastructure Banks (sec. 40203 of
the Senate amendment)
PRESENT LAW
There are no Code provisions for the issuance of
transportation and regional infrastructure project (``TRIP'')
bonds.
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision amends Title 23 to provide that a State,
through a State infrastructure bank, may issue TRIP bonds and
deposit the proceeds from such bonds into a TRIP bond account
of the bank. A ``TRIP bond'' means any bond issued as part of
an issue if (1) 100 percent of the available project proceeds
of such issue are to be used for expenditures incurred after
the date of enactment for one or more qualified projects
pursuant to an allocation of such proceeds to such project or
projects by a State infrastructure bank, (2) the bond is issued
by a State infrastructure bank and is in registered form
(within the meaning of section 149 of the Internal Revenue
Code), (3) the State infrastructure bank designates such bond
for purposes of the provision and (4) the term of each bond
that is part of such issue does not exceed 30 years. A
``qualified project'' means the capital improvements to any
transportation infrastructure project of any governmental unit
or other person, including roads, bridges, rail and transit
systems, ports, and inland waterways proposed and approved by a
State infrastructure bank, but does not include costs of
operations or maintenance with respect to such project.
The provision requires a State to develop a transparent
and competitive process for the award of funds deposited into
the TRIP bond account that considers the impact of qualified
projects on the economy, the environment, state of good repair,
and equity. The requirements of any Federal law, including
Title 23 and Titles 40 and 49, which would otherwise apply to
projects to which the United States is a party or to funds made
available under such law and projects assisted with those funds
shall apply to (1) funds made available under the TRIP bond
account for similar qualified projects and (2) similar
qualified projects assisted through the use of such funds.
Effective date.--The provision is effective on the date
of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
D. Mass Transit and Parking Benefits (sec. 40204 of the Senate
amendment, and sec. 132(f) of the Code)
PRESENT LAW
Qualified transportation fringe benefits provided by an
employer are excluded from an employee's gross income for
income tax purposes and from an employee's wages for payroll
tax purposes.\70\ Qualified transportation fringe benefits
include parking, transit passes, vanpool benefits, and
qualified bicycle commuting reimbursements. No amount is
includible in the income of an employee merely because the
employer offers the employee a choice between cash and
qualified transportation fringe benefits (other than a
qualified bicycle commuting reimbursement). Qualified
transportation fringe benefits also include a cash
reimbursement by an employer to an employee. In the case of
transit passes, however, a cash reimbursement is considered a
qualified transportation fringe benefit only if a voucher or
similar item which may be exchanged only for a transit pass is
not readily available for direct distribution by the employer
to the employee.
---------------------------------------------------------------------------
\70\Secs. 132(f), 3121(b)(2), and 3306(b)(16) and 3401(a)(19).
---------------------------------------------------------------------------
Prior to February 17, 2009, the amount that could be
excluded as qualified transportation fringe benefits was
limited to $100 per month in combined vanpooling and transit
pass benefits and $175 per month in qualified parking benefits.
All limits are adjusted annually for inflation, using 1998 as
the base year (for 2012 the limits are $125 and $240,
respectively). The American Recovery and Reinvestment Act of
2009\71\ provided parity in qualified transportation fringe
benefits by temporarily increasing the monthly exclusion for
employer-provided vanpool and transit pass benefits to the same
level as the exclusion for employer-provided parking, effective
for months beginning on or after the date of enactment
(February 17, 2009) and before January 1, 2011. The Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of
2010\72\ extended the parity in qualified transportation fringe
benefits through December 31, 2011.
---------------------------------------------------------------------------
\71\Pub. L. No. 111-5.
\72\Pub. L. No. 111-312.
---------------------------------------------------------------------------
Effective January 1, 2012, the amount that could be
excluded as qualified transportation fringe benefits is limited
to $125 per month in combined vanpooling and transit pass
benefits and $240 per month in qualified parking benefits.
HOUSE BILL
No provision.
SENATE AMENDMENT
The Senate amendment extends the parity in qualified
transportation fringe benefits for the entirety of 2012. In
order for the extension to be effective retroactive to January
1, 2012, it is intended that expenses incurred prior to
enactment by an employee for employer-provided vanpool and
transit benefits may be reimbursed by employers on a tax free
basis to the extent they exceed $125 per month and are less
than $240 per month, but only to the extent that such amount
has not already been excluded from such employee's taxable
compensation.
Effective date.--The provision in the Senate amendment is
effective for months after December 31, 2011.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
E. Private Activity Volume Cap Exemption for Sewage and Water Facility
Bonds (sec. 40205 of the Senate amendment and sec. 146(g) of the Code)
In general
Subject to certain Code restrictions, interest on bonds
issued by State and local government generally is excluded from
gross income for Federal income tax purposes. Bonds issued by
State and local governments may be classified as either
governmental bonds or private activity bonds. Governmental
bonds are bonds the proceeds of which are primarily used to
finance governmental functions or which are repaid with
governmental funds. Private activity bonds are bonds in which
the State or local government serves as a conduit providing
financing to nongovernmental persons. For this purpose, the
term ``nongovernmental person'' generally includes the Federal
Government and all other individuals and entities other than
State or local governments. The exclusion from income for
interest on State and local bonds does not apply to private
activity bonds, unless the bonds are issued for certain
permitted purposes (``qualified private activity bonds'') and
other Code requirements are met.
Qualified private activity bonds
Interest on private activity bonds is taxable unless the
bonds meet the requirements for qualified private activity
bonds. Qualified private activity bonds permit States or local
governments to act as conduits providing tax-exempt financing
for certain private activities. The definition of qualified
private activity bonds includes an exempt facility bond, or
qualified mortgage, veterans' mortgage, small issue,
redevelopment, qualified 501(c)(3), or student loan bond.\73\
The definition of exempt facility bond includes bonds issued to
finance certain transportation facilities (airports, ports,
mass commuting, and high-speed intercity rail facilities);
qualified residential rental projects; privately owned and/or
operated utility facilities (sewage, water, solid waste
disposal, and local district heating and cooling facilities,
certain private electric and gas facilities, and hydroelectric
dam enhancements); public/private educational facilities;
qualified green building and sustainable design projects; and
qualified highway or surface freight transfer facilities.\74\
---------------------------------------------------------------------------
\73\Sec. 141(e).
\74\Sec. 142(a).
---------------------------------------------------------------------------
In most cases, the aggregate volume of these tax-exempt
private activity bonds is restricted by annual aggregate volume
limits imposed on bonds issued by issuers within each State.
Certain types of private activity bonds are exempted from the
annual volume limits.
For calendar year 2012, the State volume cap, which is
indexed for inflation, equals $95 per resident of the State, or
$284,560,000, whichever is greater.
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision exempts two types of exempt facility bonds
from the annual private activity volume limits. The newly-
exempted bonds are exempt facility bonds for sewage and water
facilities.
The provision only applies to bonds issued before January
1, 2018.
Effective date.--The provision is effective for bonds
issued after the date of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
F. Dedication of Gas Guzzler Tax to the Highway Trust Fund (sec. 40303
of the Senate amendment and sec. 9503 of the Code)
PRESENT LAW
Under present law, the Code imposes a tax (``the gas
guzzler tax'') on automobiles that are manufactured primarily
for use on public streets, roads, and highways and that are
rated at 6,000 pounds unloaded gross vehicle weight or
less.\75\ The tax is imposed on the sale by the manufacturer of
each automobile of a model type with a fuel economy of 22.5
miles per gallon or less. The tax range begins at $1,000 and
increases to $7,700 for models with a fuel economy less than
12.5 miles per gallon.
---------------------------------------------------------------------------
\75\Sec. 4064.
---------------------------------------------------------------------------
Emergency vehicles and non-passenger automobiles are
exempt from the tax. The tax also does not apply to non-
passenger automobiles. The Secretary of Transportation
determines which vehicles are ``non-passenger'' automobiles,
thereby exempting these vehicles from the gas guzzler tax based
on regulations in effect on the date of enactment of the gas
guzzler tax.\76\ Hence, vehicles defined in Title 49 CFR sec.
523.5 (relating to light trucks) are exempt. These vehicles
include those designed to transport property on an open bed
(e.g., pick-up trucks) or provide greater cargo-carrying than
passenger carrying volume including the expanded cargo-carrying
space created through the removal of readily detachable seats
(e.g., pick-up trucks, vans, and most minivans, sports utility
vehicles, and station wagons). Additional vehicles that meet
the ``non-passenger'' requirements are those with at least four
of the following characteristics: (1) an angle of approach of
not less than 28 degrees; (2) a breakover angle of not less
than 14 degrees; (3) a departure angle of not less than 20
degrees; (4) a running clearance of not less than 20
centimeters; and (5) front and rear axle clearances of not less
than 18 centimeters each. These vehicles would include many
sports utility vehicles.
---------------------------------------------------------------------------
\76\Sec. 4064(b)(1)(A).
---------------------------------------------------------------------------
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision requires that amounts equivalent to the gas
guzzler taxes received in the Treasury be transferred to the
Highway Trust Fund.
Effective date.--The provision is effective on the date
of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
G. Revocation or Denial of Passport in Case of Certain Unpaid Taxes
(sec. 40304 of the Senate amendment and new secs. 7345 and 6103(l)(23)
of the Code)
PRESENT LAW
The administration of passports is the responsibility of
the Department of State.\77\ State may refuse to issue or renew
a passport if the applicant owes child support in excess of
$2,500 or owes certain types of Federal debts, such as expenses
incurred in providing assistance to an applicant to return to
the United States. The scope of this authority does not extend
to rejection or revocation of a passport on the basis of
delinquent Federal taxes. Issuance of a passport does not
require the applicant to provide a social security number or
taxpayer identification number.
---------------------------------------------------------------------------
\77\``Passport Act of 1926,'' 22 U.S.C. sec. 211a, et seq.
---------------------------------------------------------------------------
Returns and return information are confidential and may
not be disclosed by the IRS, other Federal employees, State
employees, and certain others having access to such information
except as provided in the Internal Revenue Code.\78\ There are
a number of exceptions to the general rule of nondisclosure
that authorize disclosure in specifically identified
circumstances, including disclosure of information about
Federal tax debts for purposes of reviewing an application for
a Federal loan\79\ and for purposes of enhancing the integrity
of the Medicare program.\80\
---------------------------------------------------------------------------
\78\Sec. 6103.
\79\Sec. 6103(l)(3).
\80\Sec. 6103(l)(22).
---------------------------------------------------------------------------
HOUSE PROVISION
No provision.
SENATE AMENDMENT
If the Commissioner of Internal Revenue certifies to the
Secretary of the Treasury the identity of persons who have
seriously delinquent Federal taxes, the Secretary of Treasury
or his delegate is authorized to transmit such certification to
the Secretary of State for use in determining whether to issue,
renew, or revoke a passport. Applicants whose names are
included on the certifications provided to the Secretary of
State are ineligible for a passport. The provision bars the
Secretary of State from issuing a passport to any individual
who has a seriously delinquent tax debt. It also requires
revocation of a passport previously issued to any such
individual. Exceptions are permitted for emergency or
humanitarian circumstances, as well as short term use of a
passport for return travel to the United States by the
delinquent taxpayer.
A seriously delinquent tax debt generally includes any
outstanding debt for Federal tax in excess of $50,000,
including interest and any penalties, for which a notice of
lien or a notice of levy has been filed. This amount is to be
adjusted for inflation annually, using calendar year 2011, and
a cost-of-living adjustment. Even if a tax debt otherwise meets
the statutory threshold, it may not be considered seriously
delinquent if (1) the debt is being paid in a timely manner
pursuant to an installment agreement or offer-in-compromise, or
(2) collection action with respect to the debt is suspended
because a collection due process hearing or innocent spouse
relief has been requested or is pending.
Effective date.--The provision is effective on January 1,
2013.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
H. 100 Percent Continuous Levy on Payments to Medicare Providers and
Suppliers (sec. 40305 of the Senate amendment and sec. 6331(h) of the
Code)
PRESENT LAW
In general
Levy is the administrative authority of the IRS to seize
a taxpayer's property, or rights to property, to pay the
taxpayer's tax liability.\81\ Generally, the IRS is entitled to
seize a taxpayer's property by levy if a Federal tax lien has
attached to such property,\82\ the property is not exempt from
levy,\83\ and the IRS has provided both notice of intention to
levy\84\ and notice of the right to an administrative hearing
(the notice is referred to as a ``collections due process
notice'' or ``CDP notice'' and the hearing is referred to as
the ``CDP hearing'')\85\ at least 30 days before the levy is
made. A levy on salary or wages generally is continuously in
effect until released.\86\ A Federal tax lien arises
automatically when: (1) a tax assessment has been made; (2) the
taxpayer has been given notice of the assessment stating the
amount and demanding payment; and (3) the taxpayer has failed
to pay the amount assessed within 10 days after the notice and
demand.\87\
---------------------------------------------------------------------------
\81\Sec. 6331(a). Levy specifically refers to the legal process by
which the IRS orders a third party to turn over property in its
possession that belongs to the delinquent taxpayer named in a notice of
levy.
\82\Ibid.
\83\Sec. 6334.
\84\Sec. 6331(d).
\85\Sec. 6330. The notice and the hearing are referred to
collectively as the CDP requirements.
\86\Secs. 6331(e) and 6343.
\87\Sec. 6321.
---------------------------------------------------------------------------
The notice of intent to levy is not required if the
Secretary finds that collection would be jeopardized by delay.
The standard for determining whether jeopardy exists is similar
to the standard applicable when determining whether assessment
of tax without following the normal deficiency procedures is
permitted.\88\
---------------------------------------------------------------------------
\88\Secs. 6331(d)(3), 6861.
---------------------------------------------------------------------------
The CDP notice (and pre-levy CDP hearing) is not required
if: (1) the Secretary finds that collection would be
jeopardized by delay; (2) the Secretary has served a levy on a
State to collect a Federal tax liability from a State tax
refund; (3) the taxpayer subject to the levy requested a CDP
hearing with respect to unpaid employment taxes arising in the
two-year period before the beginning of the taxable period with
respect to which the employment tax levy is served; or (4) the
Secretary has served a Federal contractor levy. In each of
these four cases, however, the taxpayer is provided an
opportunity for a hearing within a reasonable period of time
after the levy.\89\
---------------------------------------------------------------------------
\89\Sec. 6330(f).
---------------------------------------------------------------------------
Federal payment levy program
To help the IRS collect taxes more effectively, the
Taxpayer Relief Act of 1997\90\ authorized the establishment of
the Federal Payment Levy Program (``FPLP''), which allows the
IRS to continuously levy up to 15 percent of certain
``specified payments'' by the Federal government if the payees
are delinquent on their tax obligations. With respect to
payments to vendors of goods, services, or property sold or
leased to the Federal government, the continuous levy may be up
to 100 percent of each payment.\91\ The levy (either up to 15
percent or up to 100 percent) generally continues in effect
until the liability is paid or the IRS releases the levy.
---------------------------------------------------------------------------
\90\Pub. L. No. 105-34.
\91\Sec. 6331(h)(3). The word ``property'' was added to ``goods or
services'' in section 301 of the ``3% Withholding Repeal and Job
Creation Act,'' Pub. L. No. 112-56.
---------------------------------------------------------------------------
Under FPLP, the IRS matches its accounts receivable
records with Federal payment records maintained by the
Department of the Treasury's Financial Management Service
(``FMS''), such as certain Social Security benefit and Federal
wage records. When these records match, the delinquent taxpayer
is provided both the notice of intention to levy and the CDP
notice. If the taxpayer does not respond after 30 days, the IRS
can instruct FMS to levy the taxpayer's Federal payments.
Subsequent payments are continuously levied until such time
that the tax debt is paid or the IRS releases the levy.
Payments to Medicare providers
In 2008, the Government Accountability Office (``GAO'')
found that over 27,000 Medicare providers (i.e., about six
percent of all such providers) owed more than $2 billion of tax
debt, consisting largely of individual income and payroll
taxes.\92\ In one case, a home health company received over $15
million in Medicare payments but did not pay $7 million in
Federal taxes.\93\ As of 2008, the Centers for Medicare &
Medicaid Services (``CMS'') had not incorporated most of its
Medicare payments into the continuous levy program, despite the
IRS authority to continuously levy up to 15 percent of these
payments. Thus, for calendar year 2006, the government lost the
chance to possibly collect over $140 million in unpaid Federal
taxes.\94\ The GAO noted that CMS officials promised to
incorporate about 60 percent of all Medicare fee-for-service
payments into the levy program by October 2008 and the
remaining 40 percent in the next several years.
---------------------------------------------------------------------------
\92\Government Accountability Office, Medicare: Thousands of
Medicare Providers Abuse the Federal Tax System (GAO-08-618), June 13,
2008.
\93\Ibid., p. 4.
\94\Ibid.
---------------------------------------------------------------------------
Following the GAO study, Congress directed CMS to
participate in the FPLP and ensure that all Medicare provider
and supplier payments are processed through it, in specified
graduated percentages, by the end of fiscal year 2011.\95\
---------------------------------------------------------------------------
\95\Medicare Improvement for Patients and Providers Act of 2008,
Pub. L. No. 110-275, sec. 189.
---------------------------------------------------------------------------
HOUSE PROVISION
No provision.
SENATE AMENDMENT
The provision allows Treasury to levy up to 100 percent
of a payment to a Medicare provider to collect unpaid taxes.
Effective date.--The provision is effective for payments
made after the date of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
I. Appropriation to the Highway Trust Fund of Amounts Attributable to
Certain Duties on Imported Vehicles (sec. 40306 of the Senate
amendment)
PRESENT LAW
Customs duties are deposited into the general fund of the
Treasury of the United States. This includes customs duties
collected on imported vehicles classified under Chapter 87 of
the Harmonized Tariff Schedule of the United States.
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision would appropriate from the General Fund and
deposit into the Highway Trust Fund amounts equivalent to
amounts received in the General Fund, for FY 2012 through FY
2016, on articles classified under subheadings 8703.22.00 and
8703.24.00 of Chapter 87.
Effective date.--The provision is effective on the date
of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
J. Treatment of Securities of a Controlled Corporation Exchanged for
Assets in Certain Reorganizations (sec. 40307 of the Senate amendment
and sec. 361 of the Code)
PRESENT LAW
The transfer of assets by a transferor corporation to
another corporation, controlled (immediately after the
transfer) by the transferor or one or more of its shareholders,
qualifies as a tax-free reorganization if the transfer is made
by one corporation (``distributing'') to a controlled
subsidiary corporation (``controlled''), followed by the
distribution of the stock and securities of the controlled
subsidiary in a divisive spin-off, split-off, or split-up which
meets the requirements of section 355, including an active
business requirement and a requirement that the transaction is
not used principally as a device for the distribution of
earnings and profits (``divisive D reorganization'').\96\
---------------------------------------------------------------------------
\96\Secs. 355 and 368(a)(1)(D). Section 355 imposes requirements
for a qualified spin-off, split-off, or split-up. Among other
requirements, in order for a transaction to qualify under section 355,
the distributing corporation must either (i) distribute all of the
stock and securities of the controlled corporation that it holds, or
(ii) distribute at least an amount of stock constituting control under
section 368(c) and establish to the satisfaction of the Secretary of
the Treasury that the retention of stock (or stock and securities) was
not in pursuance of a plan having as one of its principal purposes the
avoidance of Federal income tax. Sec. 355(a)(1)(D). Section 355 imposes
other requirements to avoid gain recognition at the corporate level
with respect to the spin-off, split-up, or split-off, e.g., secs.
355(d) and (e).
---------------------------------------------------------------------------
No gain or loss is recognized to a corporation if the
corporation is a party to a reorganization and exchanges
property, in pursuance of the plan of reorganization, solely
for stock or securities in another corporation that is a party
to the reorganization.\97\ If property other than stock or
securities is received (``other property''), the transferor
corporation recognizes gain (if any) to the extent the other
property is not distributed.\98\
---------------------------------------------------------------------------
\97\Sec. 361(a).
\98\Sec. 361(b).
---------------------------------------------------------------------------
In addition, in a divisive D reorganization, if there is
a transfer to the transferor corporation's creditors of money
or other property received from the controlled corporation in
the exchange in connection with the reorganization, the
transferor distributing corporation recognizes gain to the
extent the sum of the money and the fair market value of the
other property exceeds the adjusted bases of the assets
transferred (reduced by the amount of liabilities assumed by
the transferee under section 357(c)).\99\ Thus, such a transfer
to creditors is aggregated with other assumptions of the
transferor corporation's liabilities by the transferee, and the
transferor corporation recognizes gain to the extent this
aggregate amount exceeds the adjusted basis of assets
transferred.\100\
---------------------------------------------------------------------------
\99\The last sentence of sec. 361(b)(3).
\100\Sec. 357(c) and the last sentence of sec. 361(b)(3).
---------------------------------------------------------------------------
For example, if in a divisive D reorganization the
controlled corporation either (1) directly assumes the debt of
the distributing corporation, or (2) borrows and distributes
cash to the distributing corporation to pay the distributing
corporation's creditors, such debt assumption or cash
distribution is treated as money received by the distributing
corporation, and the aggregate amount of such debt assumptions
and distributions is taxable to the extent it exceeds the
distributing corporation's basis in the assets transferred to
the controlled corporation. However, if the controlled
corporation issues its own debt securities and such securities
are distributed to the creditors of the distributing
corporation, the controlled corporation's debt securities are
not treated as money or other property received by the
distributing corporation. Thus, the distributing corporation
could use the controlled corporation's securities to retire the
distributing corporation's own debt, recognize no gain, and be
in the same economic position as if its debt had been directly
assumed by the controlled corporation or as if it had retired
its debt with cash received from the controlled corporation. In
addition, to the extent that such debt securities of the
controlled corporation are permitted to be retained by the
distributing corporation, such securities are not treated as
taxable property.
HOUSE BILL
No provision.
SENATE AMENDMENT
Under the Senate amendment, in the case of a divisive D
reorganization, no gain or loss is recognized to a corporation
if the corporation is a party to a reorganization and exchanges
property, in pursuance of the plan of reorganization, solely
for stock other than nonqualified preferred stock (as defined
in section 351(g)(2)).\101\ Thus, under the provision,
securities and nonqualified preferred stock are treated as
``other property.''
---------------------------------------------------------------------------
\101\Section 351(g)(2) defines nonqualified preferred stock as
preferred stock if (i) the holder has a right to require the issuer or
a related person to redeem or purchase the stock, which right may be
exercised within the 20 year period beginning on the issue date and is
not subject to a contingency which, as of the issue date, makes remote
the likelihood of redemption or purchase; (ii) the issuer or a related
person is required to redeem or purchase the stock (within such 20 year
period and not subject to such a contingency); (iii) the issuer or a
related person has the right to redeem or purchase the stock (which
right is exercisable within such 20 year period and not subject to such
a contingency) and as of the issue date, it is more likely than not
that such right will be exercised, or (iv) the dividend on such stock
varies in whole or in part (directly or indirectly) with reference to
interest rates, commodity prices, or other similar indices. There are
exceptions for certain rights that are exercisable only on the death,
disability or mental incompetency of the holder, or only upon the
separation from service of a service provider who received the right as
reasonable compensation for services, and for certain situations
involving publicly traded stock. Nonqualified preferred stock is
treated in the same manner as securities under section 351 and thus is
not qualified consideration that may be received tax free by a
contributing shareholder. Sections 354(a)(2)(C) and 356(e) treat
nonqualified preferred stock as taxable consideration if received in
exchange for stock by shareholders of a corporation that itself is a
party to a reorganization (except to the extent received in exchange
for other nonqualified preferred stock); and section 355 contains a
similar rule (sec. 355(a)(3)(D)).
---------------------------------------------------------------------------
The transferor corporation's gain on the exchange is
recognized to the extent of the sum of money and the value of
other property, including securities and nonqualified preferred
stock, not distributed in pursuance of the plan of
reorganization. A distribution to creditors of the transferor
corporation is not treated as a distribution for this purpose.
The value of controlled corporation securities or
nonqualified preferred stock transferred to creditors of the
distributing corporation is treated in the same manner as a
direct assumption of distributing corporation's debt by the
controlled corporation, or as a distribution of cash (or other
nonqualified property) from the controlled corporation that is
paid to the distributing corporation's creditors, so that the
distributing corporation recognizes gain on the exchange to the
extent that the sum of such amounts exceeds the adjusted bases
of the assets transferred.
Effective date.--The provision generally applies to
exchanges occurring after the date of enactment.
However, the provision does not apply to any exchange in
connection with a transaction which is (1) made pursuant to a
written agreement which was binding on February 6, 2012 and at
all times thereafter, (2) described in a ruling request
submitted to the IRS on or before such date, or (3) described
on or before such date in a public announcement or in a filing
with the Securities and Exchange Commission.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
K. Internal Revenue Service Levies and Thrift Savings Plan Accounts
(sec. 40308 of the Senate amendment)
PRESENT LAW
In general
Levy is the IRS's administrative authority to seize a
taxpayer's property, or rights to property, to pay the
taxpayer's tax liability.\102\ Generally, the IRS is entitled
to seize a taxpayer's property by levy if a Federal tax lien
has attached to such property,\103\ the property is not exempt
from levy,\104\ and the IRS has provided both notice of
intention to levy\105\ and notice of the right to an
administrative hearing (the notice is referred to as a
``collections due process notice'' or ``CDP notice'' and the
hearing is referred to as the ``CDP hearing'')\106\ at least 30
days before the levy is made. A levy on salary or wages is
generally continuously in effect until released.\107\ A Federal
tax lien arises automatically when: (1) a tax assessment has
been made; (2) the taxpayer has been given notice of the
assessment stating the amount and demanding payment; and (3)
the taxpayer has failed to pay the amount assessed within 10
days after the notice and demand.\108\
---------------------------------------------------------------------------
\102\Sec. 6331(a). Levy specifically refers to the legal process by
which the IRS orders a third party to turn over property in its
possession that belongs to the delinquent taxpayer named in a notice of
levy.
\103\Ibid.
\104\Sec. 6334.
\105\Sec. 6331(d).
\106\Sec. 6330. The notice and the hearing are referred to
collectively as the CDP requirements.
\107\Secs. 6331(e) and 6343.
\108\Sec. 6321.
---------------------------------------------------------------------------
The notice of intent to levy is not required if the
Secretary finds that collection would be jeopardized by delay.
The standard for determining whether jeopardy exists is similar
to the standard applicable when determining whether assessment
of tax without following the normal deficiency procedures is
permitted.\109\
---------------------------------------------------------------------------
\109\Secs. 6331(d)(3) and 6861.
---------------------------------------------------------------------------
The CDP notice (and pre-levy CDP hearing) is not required
if: (1) the Secretary finds that collection would be
jeopardized by delay; (2) the Secretary has served a levy on a
State to collect a Federal tax liability from a State tax
refund; (3) the taxpayer subject to the levy requested a CDP
hearing with respect to unpaid employment taxes arising in the
two-year period before the beginning of the taxable period with
respect to which the employment tax levy is served; or (4) the
Secretary has served a Federal contractor levy. In each of
these four cases, however, the taxpayer is provided an
opportunity for a hearing within a reasonable period of time
after the levy.\110\
---------------------------------------------------------------------------
\110\Sec. 6330(f).
---------------------------------------------------------------------------
Thrift Savings Plan
Present law includes an anti-alienation rule that
provides that the balance of an employee's Thrift Savings Plan
(``TSP'') Account is subject to taking only for the enforcement
of one's obligations to provide for child support or alimony
payments, restitution orders, certain forfeitures, or certain
obligations of the Executive Director.\111\ The authority for
the IRS to levy an employee's TSP Account to satisfy tax
liabilities is not mentioned in the anti-alienation rule; TSP
Accounts are not specifically enumerated in the Code provisions
identifying property that is exempt from levy.
---------------------------------------------------------------------------
\111\5 U.S.C. sec. 8437(e)(3).
---------------------------------------------------------------------------
HOUSE PROVISION
No provision.
senate amendment
The provision amends the statutory provisions governing
the TSP to clarify that the anti-alienation provisions therein
do not bar the IRS from issuing a notice of levy on a TSP
Account.
Effective date.--The provision is effective upon date of
enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
L. Depreciation and Amortization Rules for Highway and Related Property
Subject to Long-Term Leases (sec. 40309 of the Senate amendment and
secs. 168, 197, and 147 of the Code)
PRESENT LAW
Depreciation and amortization for highways and related property
A taxpayer generally must capitalize the cost of property
used in a trade or business and recover such cost over time
through annual deductions for depreciation or amortization.
Tangible property generally is depreciated under the modified
accelerated cost recovery system (``MACRS''), which determines
depreciation by applying specific recovery periods, placed-in-
service conventions, and depreciation methods to the cost of
various types of depreciable property.\112\ The alternative
depreciation system (``ADS'') applies with respect to tangible
property used predominantly outside the United States during
the taxable year, tax-exempt use property, tax-exempt bond
financed property, and certain other property. ADS generally
requires the use of the straight-line method without regard to
salvage value, and requires longer recovery periods than MACRS.
---------------------------------------------------------------------------
\112\Sec. 168.
---------------------------------------------------------------------------
Under MACRS, the cost of land improvements (such as roads
and fences) is recovered over 15 years.\113\ Land improvements
subject to ADS are recovered over 20 years using the straight-
line method.\114\
---------------------------------------------------------------------------
\113\Rev. Proc. 87-56, 1987--42 I.R.B. 4.
\114\Ibid. The longest MACRS recovery period is 50 years and
applies to railroad gradings and tunnel bores. Sec. 168(c).
---------------------------------------------------------------------------
Amortization of intangible property
The cost recovery of many intangible assets is governed
by the rules of section 197. In particular, section 197
provides that any amortizable section 197 intangible, including
rights granted by a governmental unit and franchise rights, is
amortized over a 15-year period.\115\
---------------------------------------------------------------------------
\115\Secs. 197(d)(1)(D) and (F). The 15-year amortization provision
does not apply to various types of rights, including any interest in
land. Sec. 197(e)(2).
---------------------------------------------------------------------------
Private activity bond financing for highways
In general, interest on a private activity bond that is a
qualified bond is excludable from taxable income.\116\ Under
present law, a private activity bond is not a qualified bond,
interest on which is tax-exempt, if any portion of the proceeds
of the issue of which the bond is a part is used to provide any
airplane, skybox, or other private luxury box, health club
facility, facility primarily used for gambling, or store the
principal business of which is the sale of alcoholic beverages
for consumption off premises.\117\
---------------------------------------------------------------------------
\116\Sec. 141.
\117\Sec. 147(e).
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HOUSE BILL
No provision.
SENATE AMENDMENT
Under this provision, the depreciation for applicable
leased highway property is determined under ADS with a
statutory 45-year recovery period and requirement to use the
straight-line method. Further, this provision requires that any
amortizable section 197 intangible acquired in connection with
an applicable lease must be recovered over a period not less
than the term of the applicable lease.
Under this provision, private activity bonds are not
qualified bonds, interest on which is tax-exempt, if the bonds
are part of an issue, any portion of the proceeds of which is
used to finance any applicable leased highway property.
For purposes of this provision, applicable leased highway
property is defined as property subject to an applicable lease
and placed in service before the date of such lease. An
applicable lease is defined as an arrangement between the
taxpayer and a State or political subdivision thereof, or any
agency or instrumentality of either, under which the taxpayer
leases a highway and associated improvements, receives a right-
of-way on the public lands underlying such highway and
improvements, and receives a grant of a franchise or other
intangible right permitting the taxpayer to receive funds
relating to the operation of such highway. As under present
law, a contract that purports to be a service contract or other
arrangement (including a partnership or other passthrough
entity) is treated as a lease if the contract or arrangement is
properly treated as a lease.\118\
---------------------------------------------------------------------------
\118\Sec. 7701(e).
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Effective date.--The provision is effective for leases
entered into, and private activity bonds issued, after the date
of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
M. Transfers to Federal Old-Age and Survivors Insurance Trust Fund and
Federal Disability Insurance Trust Fund
(sec. 40314 of the Senate amendment)
PRESENT LAW
To finance Social Security and Medicare benefits, taxes
under the Federal Insurance Contributions Act (``FICA'') are
imposed on employers and employees with respect to employee
wages.\119\ Similar taxes are imposed under the Self-Employment
Contributions Act (``SECA'') on self-employed individuals with
respect to their self-employment income.\120\ These taxes
consist of two parts: (1) old-age, survivors, and disability
insurance (``OASDI''), which correlates to the Social Security
program that provides monthly benefits after retirement, death
or disability; and (2) Medicare hospital insurance (``HI'').
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\119\Secs. 3101 and 3111.
\120\Sec. 1401.
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HOUSE BILL
No provision.
SENATE AMENDMENT
Under the Senate amendment, the following amounts are
transferred from the General Fund to the OASDI Trust Funds: $27
million in fiscal year 2012, and $82 million in fiscal year
2014.
Effective date.--The Senate amendment provision is
effective on the date of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
N. Modify Rules that Apply to Sales of Life Insurance Contracts
(secs. 100112-4 of the Senate amendment and new sec. 6050X of the Code)
PRESENT LAW
An exclusion from Federal income tax is provided for
amounts received under a life insurance contract paid by reason
of the death of the insured.\121\
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\121\Sec. 101(a)(1). In the case of certain accelerated death
benefits and viatical settlements, special rules treat certain amounts
as amounts paid by reason of the death of an insured (that is,
generally, excludable from income). Sec. 101(g). The rules relating to
accelerated death benefits provide that amounts treated as paid by
reason of the death of the insured include any amount received under a
life insurance contract on the life of an insured who is a terminally
ill individual, or who is a chronically ill individual (provided
certain requirements are met). For this purpose, a terminally ill
individual is one who has been certified by a physician as having an
illness or physical condition which can reasonably be expected to
result in death in 24 months or less after the date of the
certification. A chronically ill individual is one who has been
certified by a licensed health care practitioner within the preceding
12-month period as meeting certain ability-related requirements. In the
case of a viatical settlement, if any portion of the death benefit
under a life insurance contract on the life of an insured who is
terminally ill or chronically ill is sold to a viatical settlement
provider, the amount paid for the sale or assignment of that portion is
treated as an amount paid under the life insurance contract by reason
of the death of the insured (that is, generally, excludable from
income). For this purpose, a viatical settlement provider is a person
regularly engaged in the trade or business of purchasing, or taking
assignments of, life insurance contracts on the lives of terminally ill
or chronically ill individuals (provided certain requirements are met).
---------------------------------------------------------------------------
Under rules known as the transfer for value rules, if a
life insurance contract is sold or otherwise transferred for
valuable consideration, the amount paid by reason of the death
of the insured that is excludable generally is limited.\122\
Under the limitation, the excludable amount may not exceed the
sum of (1) the actual value of the consideration, and (2) the
premiums or other amounts subsequently paid by the transferee
of the contract. Thus, for example, if a person buys a life
insurance contract, and the consideration he pays combined with
his subsequent premium payments on the contract are less than
the amount of the death benefit he later receives under the
contract, then the difference is includable in the buyer's
income.
---------------------------------------------------------------------------
\122\Sec. 101(a)(2).
---------------------------------------------------------------------------
Exceptions are provided to the limitation on the
excludable amount. The limitation on the excludable amount does
not apply if (1) the transferee's basis in the contract is
determined in whole or in part by reference to the transferor's
basis in the contract,\123\ or (2) the transfer is to the
insured, to a partner of the insured, to a partnership in which
the insured is a partner, or to a corporation in which the
insured is a shareholder or officer.\124\
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\123\Sec. 101(a)(2)(A).
\124\Sec. 101(a)(2)(B).
---------------------------------------------------------------------------
IRS guidance sets forth more details of the tax treatment
of a life insurance policyholder who sells or surrenders the
life insurance contract and the tax treatment of other sellers
and of buyers of life insurance contracts. The guidance relates
to the character of taxable amounts (ordinary or capital) and
to the taxpayer's basis in the life insurance contract.
In Revenue Ruling 2009-13,\125\ the IRS ruled that income
recognized under section 72(e) on surrender to the life
insurance company of a life insurance contract with cash value
is ordinary income. In the case of sale of a cash value life
insurance contract, the IRS ruled that the insured's (seller's)
basis is reduced by the cost of insurance, and the gain on sale
of the contract is ordinary income to the extent of the amount
that would be recognized as ordinary income if the contract
were surrendered (the ``inside buildup''), and any excess is
long-term capital gain. Gain on the sale of a term life
insurance contract (without cash surrender value) is long-term
capital gain under the ruling.
---------------------------------------------------------------------------
\125\2009-21 I.R.B. 1029.
---------------------------------------------------------------------------
In Revenue Ruling 2009-14,\126\ the IRS ruled that under
the transfer for value rules, a portion of the death benefit
received by a buyer of a life insurance contract on the death
of the insured is includable as ordinary income. The portion is
the excess of the death benefit over the consideration and
other amounts (e.g., premiums) paid for the contract. Upon sale
of the contract by the purchaser of the contract, the ruling
concludes that the gain is long-term capital gain, and in
determining the gain, the basis of the contract is not reduced
by the cost of insurance.
---------------------------------------------------------------------------
\126\2009-21 I.R.B. 1031.
---------------------------------------------------------------------------
HOUSE BILL
No provision.
SENATE AMENDMENT
In general
The provision imposes reporting requirements in the case
of the purchase of an existing life insurance contract in a
reportable policy sale and imposes reporting requirements on
the payor in the case of the payment of reportable death
benefits. The provision sets forth rules for determining the
basis of a life insurance or annuity contract. Lastly, the
provision modifies the transfer for value rules in a transfer
of an interest in a life insurance contract that is a
reportable policy sale.
Reporting requirements for acquisitions of life insurance contracts
Reporting upon acquisition of life insurance contract
The reporting requirement applies to every person who
acquires a life insurance contract, or any interest in a life
insurance contract, in a reportable policy sale during the
taxable year. A reportable policy sale means the acquisition of
an interest in a life insurance contract, directly or
indirectly, if the acquirer has no substantial family,
business, or financial relationship with the insured (apart
from the acquirer's interest in the life insurance contract).
An indirect acquisition includes the acquisition of an interest
in a partnership, trust, or other entity that holds an interest
in the life insurance contract.
Under the reporting requirement, the acquiror of the
contract reports information about the acquisition to the IRS,
to the insurance company that issued the contract, and to the
person or persons receiving a payment. The information reported
by the acquiror about the acquisition of the contract is (1)
the acquiror's name, address, and taxpayer identification
number (``TIN''), (2) the name, address, and TIN of each
recipient of payment in the reportable policy sale, (3) the
date of the reportable policy sale, (4) the name of the issuer
and the policy number of the life insurance contract, and (5)
the amount of each payment.
The statement the acquiror provides to any issuer of a
life insurance contract is not required to include the amount
of the payment or payments for the acquisition of the contract.
The statement the acquiror provides to any issuer of a life
insurance contract or recipient of a payment in the reportable
policy sale also includes the name, address, and phone number
of the acquiror's information contact.
Reporting of seller's basis in the life insurance contract
On receipt of a report described above, or on any notice
of the transfer of a life insurance contract to a foreign
person, each issuer is required to report to the IRS and to the
seller or transferor (1) the basis of the contract (i.e., the
investment in the contract within the meaning of section
72(e)(6)), (2) the name, address, and TIN of the seller or the
transferor to a foreign person, and (3) the policy number of
the contract. Notice of the transfer of a life insurance
contract to a foreign person is intended to include any sort of
notice, including information provided for nontax purposes such
as change of address notices for purposes of sending statements
or for other purposes, or information relating to loans,
premiums, or death benefits with respect to the contract.
The statement the issuer provides to any seller or
transferor to a foreign person also includes the name, address,
and phone number of the issuer's information contact.
Reporting with respect to reportable death benefits
When a reportable death benefit is paid under a life
insurance contract, the payor insurance company is required to
report information about the payment to the IRS and to the
payee. Under this reporting requirement, the payor reports (1)
the payor's name, address, and TIN; (2) the name, address, and
TIN of each recipient of payment; (3) the date of each payment;
and (4) the amount of each payment. A reportable death benefit
means an amount paid by reason of the death of the insured
under a life insurance contract that has been transferred in a
reportable policy sale.
The statement the payor provides to any payee also
includes the name, address, and phone number of the payor's
information contact.
Payment
For purposes of these reporting requirements, payment
means the amount of cash and the fair market value of any
consideration transferred in a reportable policy sale.
Determination of basis
The provision provides that in determining the basis of a
life insurance or annuity contract, no adjustment is made for
mortality, expense, or other reasonable charges incurred under
the contract (known as ``cost of insurance''). This reverses
the position of the IRS in Revenue Ruling 2009-13 that on sale
of a cash value life insurance contract, the insured's
(seller's) basis is reduced by the cost of insurance.
Scope of transfer for value rules
The provision provides that the exceptions to the
transfer for value rules do not apply in the case of a transfer
of a life insurance contract, or any interest in a life
insurance contract, in a reportable policy sale. Thus, some
portion of the death benefit ultimately payable under such a
contract may be includable in income.
Effective date
Under the provision, the reporting requirement is
effective for reportable policy sales occurring after December
31, 2012, and reportable death benefits paid after December 31,
2012. The clarification of the basis rules for life insurance
and annuity contracts is effective for transactions entered
into after August 25, 2009. The modification of exception to
the transfer for value rules is effective for transfers
occurring after December 31, 2012.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
O. Authorizing Special Measures Against Foreign Jurisdictions,
Financial Institutions, and Others That Significantly Impede U.S. Tax
Enforcement
(sec. 100201 of the Senate amendment and 31 U.S.C. sec. 5138A)
PRESENT LAW
Cross-border transfers of assets to, and interests held
in, foreign bank accounts or foreign entities are subject to
reporting requirements under Title 31 (the Bank Secrecy Act) of
the United States Code. The Bank Secrecy Act requires both
financial institutions and account holders to report
information that has ``a high degree of usefulness in criminal,
tax, or regulatory investigations or proceedings.''\127\
Citizens and residents of the United States as well as persons
doing business in the United States are required to keep
records and file reports that contain the following information
``in the way and to the extent the Secretary prescribes'' if
they enter into a transaction or maintain an account with a
foreign financial agency: (1) the identity and address of
participants in a transaction or relationship; (2) the legal
capacity in which a participant is acting; (3) the identity of
real parties in interest; and (4) a description of the
transaction, as specified by the Secretary.\128\ Regulations
promulgated pursuant to broad regulatory authority granted to
the Secretary in the Bank Secrecy Act\129\ provide additional
guidance regarding the disclosure obligation with respect to
foreign accounts.
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\127\31 U.S.C. sec. 5311.
\128\31 U.S.C. sec. 5314. The term ``agency'' in the Bank Secrecy
Act includes financial institutions.
\129\31 U.S.C. sec. 5314(a) provides: ``Considering the need to
avoid impeding or controlling the export or import of monetary
instruments and the need to avoid burdening unreasonably a person
making a transaction with a foreign financial agency, the Secretary of
the Treasury shall require a resident or citizen of the United States
or a person in, and doing business in, the United States, to keep
records, file reports, or keep records and file reports, when the
resident, citizen, or person makes a transaction or maintains a
relation for any person with a foreign financial agency.''
---------------------------------------------------------------------------
As part of a series of reforms directed at international
financing of terrorism,\130\ the Bank Secrecy Act authorizes
the Secretary of the Treasury to impose special measures on
certain domestic institutions or agencies if, after
consultation with the Secretary of State and the Attorney
General, the Secretary of the Treasury determines that there
are reasonable grounds to conclude that a jurisdiction or
institution operating outside the United States, or accounts or
transactions involving such jurisdictions or institutions, are
of primary money laundering concern.\131\
---------------------------------------------------------------------------
\130\See, e.g., Title III of the USA PATRIOT Act, Pub. L. No. 107-
56 (October 26, 2001) (sections 351 through 366).
\131\31 U.S.C. sec. 5318A.
---------------------------------------------------------------------------
In determining whether a particular jurisdiction is of
primary money laundering concern, the Secretary considers
multiple factors that may evidence that the jurisdiction lacks
adequate transparency and may be a haven for criminal
activities. Evidence that groups involved in organized crime,
international terrorism or proliferation of weapons of mass
destruction have transacted business in that jurisdiction as
well as the degree of corruption among high-level officials
must be considered. With respect to assessing the fiscal
transparency of the jurisdiction, factors include the domestic
laws of that jurisdiction and their administration; the
reputation of the jurisdiction as an offshore banking haven by
credible international organizations; the extent to which the
jurisdiction offers regulatory advantages to nonresidents; and
whether the United States has a Mutual Legal Assistance Treaty
(``MLAT'') with the jurisdiction, and if so, experience of U.S.
officials in obtaining information under that agreement.
In determining whether to apply one or more special
measure to a particular institution, or with respect to a type
of account or transaction, the Secretary considers whether the
transactions, accounts or institutions facilitate money
laundering through a particular jurisdiction. The Secretary
also looks at evidence that organized criminal groups or
terrorists have been able to avail themselves of such
institution, accounts or transactions. The extent to which
legitimate business is conducted through the accounts or
institutions is also considered.
The selection of the specific measures is made after
consultation with other financial regulatory agencies and the
Secretary of State.\132\ The factors that must be considered in
selecting which of the measures to invoke are enumerated and
include U.S. national security and foreign policy; the cost and
burden of compliance with the measures; whether U.S. financial
institutions will be placed at a competitive disadvantage as a
result; the impact of the measure on the international payment,
clearance and settlement system; and whether any similar
sanction has been imposed by another nation or multilateral
group. Increased reporting obligations with respect to types of
transactions or accounts involving a foreign jurisdiction,
mandatory collection of information about beneficial ownership
of certain types of accounts, and prohibitions against opening
or maintaining payable-through or correspondent accounts with a
nexus to foreign jurisdictions are among the measures
permitted. These measures may be imposed separately or in
combination.
---------------------------------------------------------------------------
\132\Section 5318A(4)(A) requires consultation with Board of the
Governors of the Federal Reserve System, the Securities and Exchange
Commission, the Commodity Futures Trading Commission, the National
Credit Union Administration Board, any other appropriate Federal
banking agency and any other interested party identified by the
Secretary.
---------------------------------------------------------------------------
Cross-border payment flows are also subject to reporting
obligations for tax purposes.\133\ Those reporting obligations
and related provisions are commonly referred to as FATCA,\134\
which added new Chapter 4, a reporting and withholding regime,
to Subtitle A of the Code. Chapter 4 requires reporting of
specific information by third parties for certain U.S. accounts
held in foreign financial institutions (``FFIs'').\135\
Information reporting is encouraged through the withholding of
tax on payments to FFIs unless the FFI enters into and complies
with an information reporting agreement with the Secretary of
the Treasury.\136\
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\133\Hiring Incentives to Restore Employment Act (``HIRE''), Pub.
L. No. 111-147 (2010).
\134\Subtitle A of Title V of the HIRE Act, entitled ``Foreign
Account Tax Compliance,'' was based on legislative proposals in the
Foreign Account Tax Compliance Act (``FATCA''), a bill introduced in
both the House and Senate on October 27, 2009. See H.R. 3933 and S.
1934, respectively.
\135\Under section 1471(c), an FFI must report (1) the name,
address, and taxpayer identification number of each U.S. person or a
foreign entity with one or more substantial U.S. owners holding an
account, (2) the account number, (3) the account balance or value, and
(4) except as provided by the Secretary, the gross receipts and gross
withdrawals or payments from the account.
\136\The information reporting requirement under the HIRE Act
generally applies to payments made after December 31, 2012.
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Access to the foreign-based documents necessary to combat
money laundering and tax evasion is secured through information
exchanges with foreign jurisdictions under the terms of various
treaties and international agreements, such as MLAT, tax
treaties, or tax information exchange agreements
(``TIEA'').\137\ International norms regarding fiscal
transparency and exchange of information for tax administration
purposes are reflected in the standards developed by the
Organization for Economic Cooperation and Development
(``OECD''). The OECD Standards have been endorsed by the G-20
Ministers of Finance. Whether by tax treaty or TIEA, the OECD
Standards require that a jurisdiction (1) exchange information
where it is ``foreseeably relevant'' to the administration and
enforcement of the domestic laws of a requesting State; (2) not
restrict exchanges on the basis of bank secrecy or domestic tax
interest requirements; (3) have powers to enforce access to
reliable information; (4) respect taxpayer rights; and (5)
maintain strict confidentiality of information exchanged.\138\
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\137\TIEAs are entered into by the Administration, without the
advice and consent of the Senate. In contrast to the bilateral tax
treaties, TIEAs are generally limited in scope to mutual exchange of
information. Since the 1980s, the United States has entered into over
20 such agreements.
\138\Overview of the OECD's Work on International Tax Evasion (A
note by the OECD Secretariat), p. 3, March 23, 2009.
---------------------------------------------------------------------------
HOUSE BILL
No provision.
SENATE AMENDMENT
The provision expands the special measures powers under
the Bank Secrecy Act by authorizing use of the powers based on
a finding, made in consultation with the Commissioner of the
IRS, the Secretary of State and the Attorney General, that an
institution, jurisdiction or international transaction is
significantly impeding tax enforcement. In making such a
finding, cooperation of an institution or jurisdiction with the
implementation of FATCA may be favorably considered. The
information and consultations to be considered in making a
finding to support use of the special measures on the basis of
either money-laundering or tax enforcement concerns are
expanded to require consideration of U.S. experience with
administrative assistance requests under a tax treaty or tax
information exchange agreement. Furthermore, a number of
conforming changes are made to the enumeration of
considerations to ensure that factors relevant to tax
enforcement are considered.
The process for selection of special measures to be taken
and the considerations for their selection remain the same as
under present law, except for the identity of the persons or
agencies to be consulted in the process when the use of special
measures is based on a finding that U.S. tax enforcement is
being significantly impeded. In that case, the Secretary of the
Treasury is required to consult only with the Commissioner of
IRS, the Secretary of State and the Attorney General. The
Secretary of the Treasury has sole discretion whether to
consult any other agencies.
All special measures under present law are available for
both anti-money-laundering and tax enforcement-based findings.
The ability to prohibit or impose conditions on the use of
correspondent or payable-through accounts is expanded to
include the authorization, approval or use in the United States
of a credit card, charge card, debit card or other similar
financial instrument.
Effective date.--The provision is effective upon date of
enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
P. Delay in Application of Worldwide Interest
(sec. 1801 of the Senate amendment and sec. 864(f) of the Code)
PRESENT LAW
In general
To compute the foreign tax credit limitation, a taxpayer
must determine the amount of its taxable income from foreign
sources. Thus, the taxpayer must allocate and apportion
deductions between items of U.S.-source gross income, on the
one hand, and items of foreign-source gross income, on the
other.
In the case of interest expense, the rules generally are
based on the approach that money is fungible and that interest
expense is properly attributable to all business activities and
property of a taxpayer, regardless of any specific purpose for
incurring an obligation on which interest is paid.\139\ For
interest allocation purposes, all members of an affiliated
group of corporations generally are treated as a single
corporation (the so-called ``one-taxpayer rule'') and
allocation must be made on the basis of assets rather than
gross income. The term ``affiliated group'' in this context
generally is defined by reference to the rules for determining
whether corporations are eligible to file consolidated returns.
---------------------------------------------------------------------------
\139\However, exceptions to the fungibility principle are provided
in particular cases, some of which are described below.
---------------------------------------------------------------------------
For consolidation purposes, the term ``affiliated group''
means one or more chains of includible corporations connected
through stock ownership with a common parent corporation that
is an includible corporation, but only if: (1) the common
parent owns directly stock possessing at least 80 percent of
the total voting power and at least 80 percent of the total
value of at least one other includible corporation; and (2)
stock meeting the same voting power and value standards with
respect to each includible corporation (excluding the common
parent) is directly owned by one or more other includible
corporations.
Generally, the term ``includible corporation'' means any
domestic corporation except certain corporations exempt from
tax under section 501 (for example, corporations organized and
operated exclusively for charitable or educational purposes),
certain life insurance companies, corporations electing
application of the possession tax credit, regulated investment
companies, real estate investment trusts, and domestic
international sales corporations. A foreign corporation
generally is not an includible corporation.
Subject to exceptions, the consolidated return and
interest allocation definitions of affiliation generally are
consistent with each other. For example, both definitions
generally exclude all foreign corporations from the affiliated
group. Thus, while debt generally is considered fungible among
the assets of a group of domestic affiliated corporations, the
same rules do not apply as between the domestic and foreign
members of a group with the same degree of common control as
the domestic affiliated group.
Banks, savings institutions, and other financial affiliates
The affiliated group for interest allocation purposes
generally excludes what are referred to in the Treasury
regulations as ``financial corporations.''\140\ A financial
corporation includes any corporation, otherwise a member of the
affiliated group for consolidation purposes, that is a
financial institution (described in section 581 or section
591), the business of which is predominantly with persons other
than related persons or their customers, and which is required
by State or Federal law to be operated separately from any
other entity that is not a financial institution.\141\ The
category of financial corporations also includes, to the extent
provided in regulations, bank holding companies (including
financial holding companies), subsidiaries of banks and bank
holding companies (including financial holding companies), and
savings institutions predominantly engaged in the active
conduct of a banking, financing, or similar business.\142\
---------------------------------------------------------------------------
\140\Temp. Treas. Reg. sec. 1.861-11T(d)(4).
\141\Sec. 864(e)(5)(C).
\142\Sec. 864(e)(5)(D).
---------------------------------------------------------------------------
A financial corporation is not treated as a member of the
regular affiliated group for purposes of applying the one-
taxpayer rule to other nonfinancial members of that group.
Instead, all such financial corporations that would be so
affiliated are treated as a separate single corporation for
interest allocation purposes.
Worldwide interest allocation
In general
The American Jobs Creation Act of 2004 (``AJCA'')\143\
modified the interest expense allocation rules described above
(which generally apply for purposes of computing the foreign
tax credit limitation) by providing a one-time election (the
``worldwide affiliated group election'') under which the
taxable income of the domestic members of an affiliated group
from sources outside the United States generally is determined
by allocating and apportioning interest expense of the domestic
members of a worldwide affiliated group on a worldwide-group
basis (i.e., as if all members of the worldwide group were a
single corporation). If a group makes this election, the
taxable income of the domestic members of a worldwide
affiliated group from sources outside the United States is
determined by allocating and apportioning the third-party
interest expense of those domestic members to foreign-source
income in an amount equal to the excess (if any) of (1) the
worldwide affiliated group's worldwide third-party interest
expense multiplied by the ratio that the foreign assets of the
worldwide affiliated group bears to the total assets of the
worldwide affiliated group,\144\ over (2) the third-party
interest expense incurred by foreign members of the group to
the extent such interest would be allocated to foreign sources
if the principles of worldwide interest allocation were applied
separately to the foreign members of the group.\145\
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\143\Pub. L. No. 108-357, sec. 401.
\144\For purposes of determining the assets of the worldwide
affiliated group, neither stock in corporations within the group nor
indebtedness (including receivables) between members of the group is
taken into account.
\145\Although the interest expense of a foreign subsidiary is taken
into account for purposes of allocating the interest expense of the
domestic members of the electing worldwide affiliated group for foreign
tax credit limitation purposes, the interest expense incurred by a
foreign subsidiary is not deductible on a U.S. return.
---------------------------------------------------------------------------
For purposes of the new elective rules based on worldwide
fungibility, the worldwide affiliated group means all
corporations in an affiliated group as well as all controlled
foreign corporations that, in the aggregate, either directly or
indirectly,\146\ would be members of such an affiliated group
if section 1504(b)(3) did not apply (i.e., in which at least 80
percent of the vote and value of the stock of such corporations
is owned by one or more other corporations included in the
affiliated group). Thus, if an affiliated group makes this
election, the taxable income from sources outside the United
States of domestic group members generally is determined by
allocating and apportioning interest expense of the domestic
members of the worldwide affiliated group as if all of the
interest expense and assets of 80-percent or greater owned
domestic corporations (i.e., corporations that are part of the
affiliated group, as modified to include insurance companies)
and certain controlled foreign corporations were attributable
to a single corporation.
---------------------------------------------------------------------------
\146\Indirect ownership is determined under the rules of section
958(a)(2) or through applying rules similar to those of section
958(a)(2) to stock owned directly or indirectly by domestic
partnerships, trusts, or estates.
---------------------------------------------------------------------------
Financial institution group election
Taxpayers are allowed to apply the bank group rules to
exclude certain financial institutions from the affiliated
group for interest allocation purposes under the worldwide
fungibility approach. The rules also provide a one-time
``financial institution group'' election that expands the bank
group. At the election of the common parent of the pre-election
worldwide affiliated group, the interest expense allocation
rules are applied separately to a subgroup of the worldwide
affiliated group that consists of (1) all corporations that are
part of the bank group, and (2) all ``financial corporations.''
For this purpose, a corporation is a financial corporation if
at least 80 percent of its gross income is financial services
income (as described in section 904(d)(2)(D)(ii) and the
regulations thereunder) that is derived from transactions with
unrelated persons.\147\ For these purposes, items of income or
gain from a transaction or series of transactions are
disregarded if a principal purpose for the transaction or
transactions is to qualify any corporation as a financial
corporation.
---------------------------------------------------------------------------
\147\See Treas. Reg. sec. 1.904-4(e)(2).
---------------------------------------------------------------------------
In addition, anti-abuse rules are provided under which
certain transfers from one member of a financial institution
group to a member of the worldwide affiliated group outside of
the financial institution group are treated as reducing the
amount of indebtedness of the separate financial institution
group. Regulatory authority is provided with respect to the
election to provide for the direct allocation of interest
expense in circumstances in which such allocation is
appropriate to carry out the purposes of these rules, to
prevent assets or interest expense from being taken into
account more than once, or to address changes in members of any
group (through acquisitions or otherwise) treated as affiliated
under these rules.
Effective date of worldwide interest allocation
The common parent of the domestic affiliated group must
make the worldwide affiliated group election. It must be made
for the first taxable year beginning after December 31, 2020,
in which a worldwide affiliated group exists that includes at
least one foreign corporation that meets the requirements for
inclusion in a worldwide affiliated group.\148\ The common
parent of the pre-election worldwide affiliated group must make
the election for the first taxable year beginning after
December 31, 2020, in which a worldwide affiliated group
includes a financial corporation. Once either election is made,
it applies to the common parent and all other members of the
worldwide affiliated group or to all members of the financial
institution group, as applicable, for the taxable year for
which the election is made and all subsequent taxable years,
unless revoked with the consent of the Secretary of the
Treasury.
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\148\As originally enacted under AJCA, the worldwide interest
allocation rules were effective for taxable years beginning after
December 31, 2008. However, section 3093 of the Housing and Economic
Recovery Act of 2008, Pub. L. No. 110-289, delayed the implementation
of the worldwide interest allocation rules for two years, until taxable
years beginning after December 31, 2010; section 15 of the Worker,
Homeownership, and Business Assistance Act of 2009, Pub. L. No. 111-92,
delayed the implementation of the worldwide interest allocation rules
for seven years, until taxable years beginning after December 31, 2017;
and section 551 of the Hiring Incentives to Restore Employment Act,
Pub. L. No. 111-126, further delayed implementation of the worldwide
interest allocation rules for three years, until taxable years
beginning after December 31, 2020.
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HOUSE BILL
No provision.
SENATE AMENDMENT
The provision delays the effective date of the worldwide
interest allocation rules for one year, until taxable years
beginning after December 31, 2021. The required dates for
making the worldwide affiliated group election and the
financial institution group election are changed accordingly.
Effective date.--The provision is effective on the date
of enactment.
CONFERENCE AGREEMENT
The conference agreement does not include the Senate
amendment provision.
PART IV--TAX COMPLEXITY ANALYSIS
Section 4022(b) of the Internal Revenue Service Reform
and Restructuring Act of 1998 (the ``IRS Reform Act'') requires
the Joint Committee on Taxation (in consultation with the
Internal Revenue Service and the Department of the Treasury) to
provide a tax complexity analysis. The complexity analysis is
required for all legislation reported by the Senate Committee
on Finance, the House Committee on Ways and Means, or any
committee of conference if the legislation includes a provision
that directly or indirectly amends the Internal Revenue Code
(the ``Code'') and has widespread applicability to individuals
or small businesses.
The staff of the Joint Committee on Taxation has
determined that a complexity analysis is not required under
section 4022(b) of the IRS Reform Act because the bill contains
no provisions that have ``widespread applicability'' to
individuals or small businesses.
A. PBGC Premiums (secs. 40221-40222 of the conference agreement and
ERISA sec. 4006)
PRESENT LAW
Defined benefit plans subject to ERISA are covered by the
Pension Benefit Guaranty Corporation (``PBGC'') insurance
program and related premium requirements.
In the case of a single-employer defined benefit plan,
flat-rate premiums apply at a rate of $35.00 per participant
for 2012. Single-employer flat-rate premium rates are indexed
for inflation.
If a single-employer defined benefit plan has unfunded
vested benefits, variable-rate premiums also apply at a rate of
$9 per $1,000 of unfunded vested benefits divided by the number
of participants. Variable-rate premiums are not indexed for
inflation. For purposes of determining variable-rate premiums,
unfunded vested benefits are equal to the excess (if any) of
(1) the plan's funding target for the year, as determined under
the minimum funding rules, but taking into account only vested
benefits, over (2) the fair market value of plan assets. In
determining the plan's funding target for this purpose, the
interest rates used are segment rates determined as under the
minimum funding rules, but determined on a monthly basis,
rather than using a 24-month average of corporate bond rates.
In the case of a multiemployer defined benefit plan,
flat-rate premiums apply at a rate of $9.00 per participant for
2012. Multiemployer flat-rate premium rates are indexed for
inflation and are expected to increase to $10 for 2013.
HOUSE BILL
No provision.
SENATE AMENDMENT
No provision.
CONFERENCE AGREEMENT
The conference agreement increases PBGC premiums for
single-employer plans and multiemployer plans.
Single-employer plan flat-rate premiums are increased to
$42 per participant for 2013 and $49 per participant for 2014
with indexing thereafter.
For plan years beginning after 2012, the rate for
variable-rate premiums ($9 per $1,000 of unfunded vested
benefits) is indexed and the per-participant variable-rate
premium is subject to a limit. The limit is $400 for 2013 with
indexing thereafter. In addition, the rate for variable-rate
premiums per $1,000 of unfunded vested benefits is increased by
$4 for 2014 and another $5 for 2015. These increases are
applied to the rate applicable for the preceding year (that is,
$9 as indexed for the preceding year per $1,000 of unfunded
vested benefits) and indexing continues to apply thereafter.
Multiemployer plan flat-rate premiums are increased by $2
per participant for 2013.
B. Improvements of PBGC (secs. 40231-40234 of the conference agreement
and ERISA sec. 4002, new sec. 4004 and sec. 4005)--Draft of 6/27/12,
9:00 PM
PRESENT LAW
The Pension Benefit Guaranty Corporation (``PBGC''),
which was created by the Employee Retirement Income Security
Act of 1974 (``ERISA''), insures benefits provided under
defined benefit plans covered by ERISA, collects premiums with
respect to such plans, and manages assets and pays benefits
with respect to certain terminated plans. PBGC's purposes are
to encourage the continuation and maintenance of voluntary
private defined benefit plans, provide timely and uninterrupted
payment of pension benefits to participants and beneficiaries,
and maintain premiums at the lowest level consistent with
carrying out its obligations under ERISA.\149\
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\149\ERISA sec. 4002(a).
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PBGC is administered by a director, who is appointed by
the President with the advice and consent of the Senate. PBGC's
board of directors consists of the Secretary of the Treasury,
the Secretary of Labor, and the Secretary of Commerce, with the
Secretary of Labor serving as chair. An advisory committee has
been established for the purpose of advising the PBGC as to
various policies and procedures. ERISA contains general
provisions as to the board of directors and advisory committee.
HOUSE BILL
No provision.
SENATE AMENDMENT
No provision.
CONFERENCE AGREEMENT
PBGC governance improvement
The conference agreement expands the ERISA provisions
relating to the PBGC board of directors, advisory committee,
director and other PBGC officials.
With respect to the board of directors, the conference
agreement addresses timing and procedures for meetings
(including a joint meeting with the advisory committee). It
also ensures that the PBGC inspector general has direct access
to the board, clarifies the role of the General Counsel, and
provides authority to the board to hire its own employees,
experts and consultants as may be required to enable the board
to perform its duties. The conference agreement includes
specific rules on conflicts of interest with respect to the
board of directors and the director of PBGC and provides for
the PBGC to have a risk management officer. It further
clarifies that the PBGC board of directors is ultimately
responsible for overseeing PBGC and that the director is
directly accountable to the board of directors and can be
removed by the board of directors or the president. It also
sets the director's term at five years unless removed before
the expiration of the term by the President or the board of
directors.
The conference agreement states the sense of Congress
that (1) the board of directors should form committees,
including an audit committee and an investment committee
composed of at least two members, to enhance the overall
effectiveness of the board, and (2) the advisory committee
should provide the board with policy recommendations regarding
changes to the law that would be beneficial to the PBGC or the
voluntary private pension system.
The conference agreement also directs the PBGC, not later
than 90 days after enactment, to contract with the National
Academy of Public Administration to conduct a study of the PBGC
to include (1) a review of governance structures of
organizations (governmental and nongovernmental) that are
analogous to the PBGC and (2) recommendations with respect to
various topics relating to the board of directors, such as
composition, procedures, and policies to enhance Congressional
oversight. The results of the study are to be reported within a
year of initiation of the study to the Committee on Health,
Education, Labor, and Pensions and Committee on Finance of the
Senate and the Committee on Education and the Workforce and
Committee on Ways and Means of the House of Representatives.
Participant and plan sponsor advocate
The conference agreement establishes a new Participant
and Plan Sponsor Advocate. The Advocate is chosen by the Board
of Directors from the candidates nominated by the advisory
committee. This individual will act as a liaison between the
corporation and participants in terminated pension plans. The
Advocate will ensure that participants receive everything they
are entitled to under the law. The Advocate will also provide
plan sponsors with assistance in resolving disputes with the
corporation. Each year, the Advocate will provide a report on
their activities to the Committee on Health, Education, Labor,
and Pensions and Committee on Finance of the Senate, the
Committee on Education and the Workforce of the House of
Representatives, and the Committee on Ways and Means of the
House of Representatives summarizing the issues raised by
participants and plan sponsors and making recommendations for
changes to improve the system.
Quality control procedures for the PBGC
The conference agreement states that the PBGC will
contract with an outside agency (such as the Social Security
Administration) to conduct an annual review of the
Corporation's Single-Employer and Multiemployer Pension
Insurance Modeling Systems (``PIMS''). The first reviews will
be initiated no later than 3 months after the enactment of this
Act.
The conference agreement also states that the PBGC will
make its own efforts to develop review policies to examine
actuarial work, management, and record keeping. Finally, the
conference agreement instructs the PBGC to provide a specific
report addressing outstanding recommendations made by the
Office of the Inspector General (``OIG'') relating to the
Policy, Research, and Analysis Department and the Benefits
Administration and Payment Department.
Line of credit repeal
The conference agreement repeals section 4005(c) of
ERISA, which provides authority for the PBGC to issue notes or
other obligations in an amount up to $100,000,000.
Natural resource provisions
Secure rural schools
The conference report includes Senate language that
extends by one year, through fiscal year 2012, the Secure Rural
Schools program. The program funds county outlays for public
schools, road improvement and maintenance projects, and forest
restoration and improvement projects in and around National
Forests. The conference report clarifies that funds for
eligible Title III projects under the program must be obligated
by the end of the following fiscal year but not necessarily
initiated.
Payment-in-lieu of taxes
The conference report also includes Senate language to
extend by one year, through fiscal year 2013, full funding for
the Payment in Lieu of Taxes program. The program provides
federal payments to local governments to help offset losses in
property taxes due to nontaxable federal land within their
boundaries.
Gulf coast restoration
The conference report modifies a Senate provision related
to Gulf Coast restoration known as the Resources and Ecosystems
Sustainability, Tourism Opportunities and Revived Economies of
the Gulf Coast States Act of 2012 (RESTORE Act). The provision
establishes the Gulf Coast Restoration Trust Fund and places in
the Trust Fund 80% of all civil penalties paid by responsible
parties in connection with the Deepwater Horizon oil spill.
Funding may be used to invest in projects and activities to
restore the long-term health of the coastal ecosystem and local
economies in the Gulf Coast Region, which includes the states
of Mississippi, Louisiana, Alabama, Florida, and Texas. A
portion of the funds will be allocated directly and equally to
the five Gulf Coast states for ecological and economic recovery
along the coast. A portion will be provided to the Gulf Coast
Ecosystem Restoration Council established by the bill to
develop and fund a comprehensive plan for the restoration of
Gulf Coast ecosystems. A portion will be allocated among the
states using an impact-based formula to implement state plans
that have been approved by the Council. Finally, a portion of
the fines will be allocated to a Gulf Coast ecosystem
restoration, science, observation, monitoring and technology
program and for grants to nongovernmental entities for the
establishment of Gulf Coast centers of excellence.
Phased retirement
PRESENT LAW
Under current law, Federal agencies may offer part-time
employment to retirement-eligible workers, but the employee may
not begin receiving accrued pension benefits. Currently,
Federal employees face one of three choices upon reaching
retirement age: (1) voluntarily retire and collect an annuity
based on the pension computation formula, (2) continue to work
full time, in most cases increasing the number of service years
used in calculating their pension, or (3) voluntarily retire
and return to Federal employment as a reemployed annuitant. As
a result, most experienced Federal employees elect to retire.
Under Internal Revenue Code section 72(t), certain
distributions from a qualified retirement plan prior to age
59\1/2\ are subject to an additional tax of 10 percent of the
taxable amount of the distribution.
HOUSE BILL
No provision.
SENATE AMENDMENT
The Senate amendment provides the Office of Personnel
Management the authority to establish a phased retirement
program for qualified Federal employees. The amendment allows
Federal employees to retire from a portion of their full time
employment and receive a prorated pension for that service.
During phased retirement, Federal employees may work 20 to 80
percent of their full-time schedule and continue to receive a
prorated salary and pension credit for the time worked. At
least 20 percent of the time worked must be used to mentor new
employees. When the phased retiree fully retires, their annuity
would be adjusted, increasing the employee's lifetime
retirement income. The Senate amendment excludes from
eligibility law enforcement officers, firefighters, nuclear
materials couriers, air traffic controllers, customs and border
protection officers, or members of the Capital Police or
Supreme Court Police.
CONFERENCE REPORT
The conference report follows the Senate amendment with
three changes. First, Postal Service employees are exempted
from the requirement to spend 20 percent of their time
mentoring. Second, the provision provides that certain law
enforcement officers such as Customs and Border Protection
Officers hired before 2008 (when they were granted law-
enforcement type status which makes them ineligible for phased
retirement under the Senate Amendment because they are subject
to mandatory retirement) are eligible for phased retirement.
Finally, the conference agreement provides an exception to the
additional tax under section 72(t) of the Internal Revenue Code
for distributions from federal retirement plans to qualified
phased retirees.
Effective date.--The provision is effective on the date
the implementing regulations are issued by the Director of the
Office of Personnel Management.
Technical correction to the disaster recovery FMAP
provision
The ACA included a provision known as the `disaster-
recovery FMAP' designed to help states adjust to drastic
changes in FMAP following a statewide disaster. Once triggered,
the policy would provide assistance for as many as seven years
following the disaster, as long as the state continued to
experience an FMAP drop of more than three percentage points.
The Middle Class Tax Relief and Job Creation Act of 2012
corrected the formula. This policy moves the effective date to
October 1, 2012 and adjusts the formula for fiscal year 2013.
Ocean freight differential
The United States provides humanitarian food aid to
developing countries. This assistance is subject to an
additional cargo preference, which requires 75% of food
assistance be shipped from U.S. flagged vessels. The Maritime
Administration at the Department of Transportation is required
to reimburse the U.S. agencies that sponsor food aid shipments
for the increased costs associated with the U.S. flag shipping
requirement. This proposal would reduce to 50% the incremental
ocean freight differential, which would reduce the amount of
quarterly payments made by Maritime Administration at the
Department of Transportation.
Abandoned mine land
This proposal would cap abandoned mine land (AML)
reclamation payments to states that have completed all high-
priority abandoned coal mine reclamation projects. Under this
proposal, payments to those states (certified states) would be
capped at $15 million annually.
Pursuant to the order of the House on April 25,
2012, the Speaker appointed the following
conferees from the Committee on Transportation
and Infrastructure for consideration of the
House bill (except section 141) and the Senate
amendment (except secs. 1801, 40102, 40201,
40202, 40204, 40205, 40305, 40307, 40309,
40312, 100112, 100114, and 100116), and
modifications committed to conference:
John Mica,
Don Young,
John Duncan,
Bill Shuster,
Shelley Moore Capito,
Rick Crawford,
Jaime Herrera Beutler,
Larry Bucshon,
Richard Hanna,
Steve Southerland,
James Lankford,
Reid Ribble,
Nick Rahall,
Peter DeFazio,
Jerry Costello,
Eleanor Holmes Norton,
Jerrold Nadler,
Corrine Brown,
Elijah Cummings,
Leonard Boswell,
Tim Bishop,
As additional conferees from the Committee on
Commerce, for consideration of sec. 142 and
titles II and V of the House bill, and secs.
1113, 1201, 1202, subtitles B, C, D, and E of
title I of Division C, secs. 32701, 32705,
32710, 32713, 40101, and 40301 of the Senate
amendment, and modifications committed to
conference:
Fred Upton,
Ed Whitfield,
Henry Waxman,
As additional conferees from the Committee on
Natural Resources, for consideration of secs.
123, 142, 204, and titles III and VI of the
House bill, and sec. 1116, subtitles C, F, and
G of title I of Division A, sec. 33009, titles
VI and VII of Division C, sec. 40101, subtitles
A and B of title I of Division F, and sec.
100301 of the Senate amendment, and
modifications committed to conference:
Doc Hastings,
Rob Bishop,
Ed Markey,
As additional conferees from the Committee on
Science, Space, and Technology for
consideration of secs. 121, 123, 136, and 137
of the House bill, and sec. 1534, subtitle F of
title I of Division A, secs. 20013, 20014,
20029, 31101, 31103, 31111, 31204, 31504,
32705, 33009, 34008, and Division E of the
Senate amendment, and modifications committed
to conference:
Ralph Hall,
Chip Cravaack,
Eddie Bernice Johnson,
As additional conferees from the Committee on
Ways and Means, for consideration of secs. 141
and 142 of the House bill, and secs. 1801,
40101, 40102, 40201, 40202, 40204, 40205,
40301, 40307, 40309, 40314, 100112, 100114, and
100116 of the Senate amendment, and
modifications committed to conference:
Dave Camp,
Pat Tiberi,
Earl Blumenauer,
Managers on the Part of the House.
Barbara Boxer,
Max Baucus,
John Rockefeller,
Dick Durbin,
Tim Johnson,
Chuck Schumer,
Bill Nelson,
Robert Menendez,
James Inhofe,
David Vitter,
Orrin Hatch,
Richard Shelby,
Kay Bailey Hutchison,
John Hoeven,
Managers on the Part of the Senate.
From the Committee on Transportation and
Infrastructure, for consideration of the House
bill (except section 141) and the Senate
amendment (except secs. 1801, 40102, 40201,
40202, 40204, 40205, 40305, 40307, 40309-40312,
100112-100114, and 100116), and modifications
committed to conference:
John L. Mica,
Don Young,
John J. Duncan, Jr.,
Bill Shuster,
Shelley Moore Capito,
Eric A. ``Rick'' Crawford,
Jaime Herrera Beutler,
Larry Bucshon,
Richard L. Hanna,
Steve Southerland II,
James Lankford,
Reid J. Ribble,
From the Committee on Energy and Commerce, for
consideration of sec. 142 and titles II and V
of the House bill, and secs. 1113, 1201, 1202,
subtitles B, C, D, and E of title I of Division
C, secs. 32701-32705, 32710, 32713, 40101, and
40301 of the Senate amendment, and
modifications committed to the conference:
Fred Upton,
Ed Whitfield,
Henry A. Waxman,
From the Committee on Natural Resources, for
consideration of secs. 123, 142, 204, and
titles III and VI of the House bill, and sec.
1116, subtitles C, F, and G of title I of
Division A, sec. 33009, titles VI and VII of
Division C, sec. 40101, subtitles A and B of
title I of Division F, and sec. 100301 of the
Senate amendment, and modifications committed
to conference:
Doc Hastings,
Rob Bishop,
From the Committee on Science, Space, and
Technology for consideration of secs. 121, 123,
136, and 137 of the House bill, and sec. 1534,
subtitle F of title I of Division A, secs.
20013, 20014, 20029, 31101, 31103, 31111,
31204, 31504, 32705, 33009, 34008, and Division
E of the Senate amendment, and modifications
committed to conference:
Ralph M. Hall,
Chip Cravaack,
From the Committee on Ways and Means, for
consideration of secs. 141 and 142 of the House
bill, and secs. 1801, 40101, 40102, 40201,
40202, 40204, 40205, 40301-40307, 40309-40314,
100112-100114, and 100116 of the Senate
amendment, and modifications committed to
conference:
Dave Camp,
Patrick J. Tiberi,
Managers on the Part of the House.
Barbara Boxer,
Max Baucus,
John D. Rockefeller IV,
Richard J. Durbin, (with the
exception of: Div. A, Title I,
Sec. 1538--Asian Carp and Div.
F, Title II, Sec. 100206--
Residual Risk)
Tim Johnson,
Charles E. Schumer,
Bill Nelson,
Robert Menendez,
James M. Inhofe,
David Vitter,
Richard C. Shelby,
Kay Bailey Hutchison,
Managers on the Part of the Senate.