To provide a temporary waiver from certain transportation conformity requirements and metropolitan transportation planning requirements under the Clean Air Act and under other laws for certain areas in New York where the planning offices and resources have been destroyed by acts of terrorism, and for other purposes.

Waives, until September 30, 2005, application of: (1) Clean Air Act (CAA) provisions, and regulations thereunder, that prohibit Federal or metropolitan planning organization support for activities not conforming with approved State implementation plans for national primary and secondary ambient air quality standards to transportation projects, programs, and plans, for the Counties of New York, Queens, Kings, Bronx, Richmond, Nassau, Suffolk, Westchester, Rockland, and Putnam or the towns of Blooming Grove, Chester, Highlands, Monroe, Tuxedo, Warwick, and Woodbury in Orange County, New York; and (2) certain Federal-aid highway and general metropolitan transportation planning requirements to the New York Metropolitan Transportation Council or the Metropolitan Planning Organization designated under Federal-aid highway provisions.

Requires the Governor of New York to report to Congress, including a regional emissions analysis, on the status of the State's progress toward achieving compliance with such CAA provisions and regulations.

Prohibits during the waiver allowed under this Act: (1) addition of any regionally significant capacity expanding highway project to the Regional Transportation Plan for the counties referred to above; or (2) advancement of such a project from the out years of the Plan into the transportation improvement program for the area. Excepts from this prohibition a capacity expanding project south of Canal Street and West of Broadway in Manhattan if the project is part of a lower Manhattan redevelopment plan subject to Federal and State environmental assessment requirements and any projected increases in transportation-related emissions are offset by corresponding reductions within the affected county, with best efforts made to achieve reductions from within the immediate area affected by the project's emissions.