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                                                       Calendar No. 188
105th Congress                                                   Report
                                SENATE

 1st Session                                                     105-95
_______________________________________________________________________


 
        INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1997

                               ----------                              

                              R E P O R T

                                 of the

                              COMMITTEE ON
                      ENVIRONMENT AND PUBLIC WORKS
                          UNITED STATES SENATE

                             together with

                            ADDITIONAL VIEWS

                              to accompany

                                S. 1173

                                     



                October 1, 1997.--Ordered to be printed



        INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1997



                                                       Calendar No. 188
105th Congress                                                   Report
                                SENATE

 1st Session                                                     105-95
_______________________________________________________________________


        INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1997

                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                      ENVIRONMENT AND PUBLIC WORKS

                          UNITED STATES SENATE

                             together with

                            ADDITIONAL VIEWS

                              to accompany

                                S. 1173





                October 1, 1997.--Ordered to be printed

                                     
               COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

                       ONE HUNDRED FIFTH CONGRESS

                 JOHN H. CHAFEE, Rhode Island, Chairman

JOHN W. WARNER, Virginia             MAX BAUCUS, Montana
ROBERT SMITH, New Hampshire          DANIEL PATRICK MOYNIHAN, New York
DIRK KEMPTHORNE, Idaho               FRANK R. LAUTENBERG, New Jersey
JAMES M. INHOFE, Oklahoma            HARRY REID, Nevada
CRAIG THOMAS, Wyoming                BOB GRAHAM, Florida
CHRISTOPHER S. BOND, Missouri        JOSEPH I. LIEBERMAN, Connecticut
TIM HUTCHINSON, Arkansas             BARBARA BOXER, California
WAYNE ALLARD, Colorado               RON WYDEN, Oregon
JEFF SESSIONS, Alabama

                     Jimmie Powell, Staff Director

               J. Thomas Sliter, Minority Staff Director



                            C O N T E N T S

                              ----------                              
                                                                   Page
General statement:
    Background...................................................     1
    Intermodal Surface Transportation Efficiency Act of 1991.....     1
    National Highway System Designation Act of 1995..............     2
    Intermodal Surface Transportation Efficiency Act of 1997.....     3
        Summary of Title I--Surface Transportation...............     6
        Summary of Title II--Research and Technology.............     7
    Committee consideration......................................     8
Section-by-section analysis:
    Section 1. Short title; table of contents....................     8
    Sec. 2. Definition...........................................     8

                    TITLE I--SURFACE TRANSPORTATION

Section:
    Sec. 1001. Short title.......................................     8

                     Subtitle A--General Provisions

Section:
    Sec. 1101. Authorizations....................................     8
    Sec. 1102. Apportionments....................................     9
    Sec. 1103. Obligation ceiling................................    11
    Sec. 1104. Obligation authority under surface transportation 
      program....................................................    11
    Sec. 1105. Emergency relief..................................    12
    Sec. 1106. Federal lands highways program....................    12
    Sec. 1107. Recreational trails program.......................    13
    Sec. 1108. Value pricing pilot program.......................    13
    Sec. 1109. Highway use tax evasion projects..................    14
    Sec. 1110. Bicycle transportation and pedestrian walkways....    15
    Sec. 1111. Disadvantaged business enterprises................    15
    Sec. 1112. Federal share payable.............................    16
    Sec. 1113. Studies and reports...............................    16
    Sec. 1114. Definitions.......................................    17
    Sec. 1115. Cooperative Federal Lands Transportation Program..    18
    Sec. 1116. Trade corridor and border crossing planning and 
      border infrastructure......................................    18
    Sec. 1117. Appalachian development highway system............    20
    Sec. 1118. Interstate 4R and bridge discretionary program....    20
    Sec. 1119. Magnetic levitation transportation technology 
      deployment program.........................................    21
    Sec. 1120. Woodrow Wilson Memorial Bridge....................    22
    Sec. 1121. National Highway System components................    23
    Sec. 1122. Highway bridge replacement and rehabilitation.....    24
    Sec. 1123. Congestion mitigation and air quality improvement 
      program....................................................    24
    Sec. 1124. Safety belt use law requirements..................    26
    Sec. 1125. Sense of the Senate concerning reliance on private 
      enterprise.................................................    26
    Sec. 1126. Study of use of uniformed police officers on 
      Federal-aid highway construction projects..................    26
    Sec. 1127. Contracting for engineering and design services...    27

            Subtitle B--Program Streamlining and Flexibility
                     Chapter 1--General Provisions

Section:
    Sec. 1201. Administrative expenses...........................    27
    Sec. 1202. Real property acquisition and corridor 
      preservation...............................................    27
    Sec. 1203. Availability of funds.............................    28
    Sec. 1204. Payments to States for construction...............    28
    Sec. 1205. Proceeds from the sale or lease of real property..    28
    Sec. 1206. Metric conversion at State option.................    29
    Sec. 1207. Report on obligations.............................    29
    Sec. 1208. Terminations......................................    29
    Sec. 1209. Interstate maintenance............................    30

                      Chapter 2--Project Approval

Section:
    Sec. 1221. Transfer of highway and transit funds.............    31
    Sec. 1222. Project approval and oversight....................    31
    Sec. 1223. Surface transportation program....................    32
    Sec. 1224. Design-build contracting..........................    33
    Sec. 1225. Integrated decisionmaking process.................    34

                 Chapter 3--Eligibility and Flexibility

Section:
    Sec. 1231. Definition of operational improvement.............    35
    Sec. 1232. Eligibility of ferry boats and ferry terminal 
      facilities.................................................    35
    Sec. 1233. Flexibility of safety programs....................    35
    Sec. 1234. Eligibility of projects on the National Highway 
      System.....................................................    36
    Sec. 1235. Eligibility of projects under the surface 
      transportation program.....................................    37
    Sec. 1236. Design flexibility................................    38

                          Subtitle C--Finance
                     Chapter 1--General Provisions

Section:
    Sec. 1301. State infrastructure bank program.................    38

    Chapter 2--Transportation Infrastructure Finance and Innovation

Section:
    Sec. 1311. Short title.......................................    40
    Sec. 1312. Findings..........................................    40
    Sec. 1313. Definitions.......................................    40
    Sec. 1314. Determination of eligibility and project selection    40
    Sec. 1315. Secured loans.....................................    40
    Sec. 1316. Lines of credit...................................    40
    Sec. 1317. Project servicing.................................    41
    Sec. 1318. Office of Infrastructure Finance..................    41
    Sec. 1319. State and local permits...........................    41
    Sec. 1320. Regulations.......................................    41
    Sec. 1321. Funding...........................................    41
    Sec. 1322. Report to Congress................................    41

                           Subtitle D--Safety

Section:
    Sec. 1401. Operation Lifesaver...............................    42
    Sec. 1402. Railway-highway crossing hazard elimination in 
      high speed rail corridors..................................    42
    Sec. 1403. Railway-highway crossings.........................    42
    Sec. 1404. Hazard elimination program........................    43
    Sec. 1405. Minimum penalties for repeat offenders for driving 
      while intoxicated or driving under the influence...........    43
    Sec. 1406. Safety incentive grants for use of seat belts.....    44
    Sec. 1407. Automatic crash protection unbelted testing 
      standard...................................................    45

                        Subtitle E--Environment

Section:
    Sec. 1501. National scenic byways program....................    46
    Sec. 1502. Public-private partnerships.......................    47
    Sec. 1503. Wetland restoration pilot program.................    47

                          Subtitle F--Planning

Section:
    Sec. 1601. Metropolitan planning.............................    48
    Sec. 1602. Statewide planning................................    49
    Sec. 1603. Advanced travel forecasting procedures program....    50
    Sec. 1604. Transportation and community and system 
      preservation pilot program.................................    50

                   Subtitle G--Technical Corrections

Section:
    Sec. 1701. Federal-aid systems...............................    52
    Sec. 1702. Miscellaneous technical corrections...............    52
    Sec. 1703. Nondiscrimination.................................    53
    Sec. 1704. State transportation department...................    53

                  Subtitle H--Miscellaneous Provisions

Section:
    Sec. 1801. Designation of portion of State Route 17 in New 
      York and Pennsylvania as Interstate Route 86...............    53

                   TITLE II--RESEARCH AND TECHNOLOGY
                   Subtitle A--Research and Training

Section:
    Sec. 2001. Strategic research plan...........................    54
    Sec. 2002. Multimodal Transportation Research and Development 
      Program....................................................    55
    Sec. 2003. National university transportation centers........    55
    Sec. 2004. Bureau of Transportation Statistics...............    55
    Sec. 2005. Research and technology program...................    56
    Sec. 2006. Advanced research program.........................    56
    Sec. 2007. Long-term pavement performance program............    56
    Sec. 2008. State planning and research program...............    56
    Sec. 2009. Education and training............................    56
    Sec. 2010. International highway transportation outreach 
      program....................................................    57
    Sec. 2011. National technology deployment initiatives and 
      partnerships program.......................................    57
    Sec. 2012. Infrastructure investment needs report............    58
    Sec. 2013. Innovative bridge research and construction 
      program....................................................    58
    Sec. 2014. Use of Bureau of Indian Affairs administrative 
      funds......................................................    58
    Sec. 2015. Study of future strategic highway research program    58
    Sec. 2016. Joint partnerships for advanced vehicles, 
      components, and infrastructure program.....................    58
    Sec. 2017. Transportation and environment cooperative 
      research program...........................................    59
    Sec. 2018. Conforming amendments.............................    59

             Subtitle B--Intelligent Transportation Systems

Section:
    Sec. 2101. Short title.......................................    61
    Sec. 2102. Findings..........................................    61
    Sec. 2103. Intelligent transportation systems................    61
    Sec. 2104. Conforming amendment..............................    61

                          Subtitle C--Funding

Section:
    Sec. 2201. Funding...........................................    66

Hearings.........................................................    66
Rollcall votes...................................................    70
Regulatory impact................................................    70
Mandates assessment..............................................    71
Cost of legislation..............................................    71
Additional views of:
    Senator Thomas...............................................    72
    Senator Sessions.............................................    75
    Senator Moynihan.............................................    76
    Senator Lautenberg...........................................    78
Changes in existing law..........................................    80


                                                       Calendar No. 188
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-95
_______________________________________________________________________


        INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1997

                                _______
                                

                October 1, 1997.--Ordered to be printed

_______________________________________________________________________


    Mr. Chafee, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1173]

      The Committee on Environment and Public Works, to which 
was referred the bill (S. 1173) to reauthorize funds for 
construction of highways, for highway safety programs, and for 
mass transit programs, and for other purposes, having 
considered the same, reports favorably thereon with amendments, 
and recommends that the bill, as amended, do pass.

                           General Statement

                               BACKGROUND

Intermodal Surface Transportation Efficiency Act of 1991
    The Intermodal Surface Transportation Efficiency Act of 
1991 (ISTEA) was signed into law by President Bush on December 
18, 1991. The Act developed a national intermodal 
transportation system, authorized funds for the construction of 
highways, for highway safety programs, and for mass transit 
programs.
    The policy behind the ISTEA was to develop a national 
intermodal system that is economically efficient and 
environmentally sound, provides the foundation for the Nation 
to compete in a global economy, and moves people and goods in 
an energy efficient manner.
    The three principal goals of ISTEA--intermodalism, 
flexibility and efficiency--were intended to carry out the 
larger policy goal of a productive and effective national 
transportation system. The national intermodal transportation 
system established in ISTEA connects all forms of surface 
transportation in a unified and integrated manner. It includes 
the National Highway System, which consists of the Interstate 
System and those principal arterial roads that are essential 
for the national defense, intermodal transfer facilities, and 
international commerce and border crossings. It also provides 
improved access to ports and airports to increase national and 
global commerce.
    A primary purpose of ISTEA was the efficient movement of 
passengers and freight. ISTEA emphasized the contributions of 
the transportation sectors to increased productivity growth. It 
recognized the external benefits of reduced air pollution, 
reduced traffic congestion, and other aspects of quality of 
life. Strategic investment in those components that would make 
the transportation system run most effectively was the hallmark 
of ISTEA.
National Highway System Designation Act of 1995
    The National Highway System Designation Act was signed into 
law by President Clinton on November 28, 1995. The purpose of 
the NHS Act was to designate the National Highway System, 
consisting of the Interstate System and those principal 
arterial routes that are essential for interstate and regional 
commerce and travel, national defense, intermodal transfer 
facilities and trade. The NHS Act also amended the Intermodal 
Surface Transportation Efficiency Act of 1991 to extend 
additional flexibility to the States on eligible uses of 
Federal transportation funds and to repeal Federal mandates.
    With the completion of the 43,000 mile Interstate System, 
the Congress recognized that the primary Federal responsibility 
to ensure adequate mobility on our transportation system for 
people and goods could be achieved on a larger network of 
roads. The 161,075-mile National Highway System, which 
encompasses the Interstate System, is to ``provide an 
interconnected system of principal arterial routes that will 
serve major population centers, international border crossings, 
ports, airports, pubic transportation facilities, and other 
intermodal transportation facilities, and other major travel 
destinations; meet national defense requirements and serve 
interstate and regional traffic.''
    The NHS carries more than 40 percent of the Nation's 
highway traffic and 70 percent of truck freight traffic. The 
NHS represents 4 percent of the Nation's most heavily traveled 
miles of the four million miles of public roads. Rural roads 
comprise 75 percent and urban roads comprise 25 percent of the 
National Highway System.
    Americans depend on an efficient NHS that provides critical 
connections between urban and rural communities. Over 90 
percent of the U.S. population lives within 5 miles of an NHS 
route. Nearly 90 percent of U.S. counties have NHS routes 
within their jurisdiction. These counties account for 99 
percent of all manufacturing jobs and 93 percent of all 
agricultural jobs.
    The further development of and improvement to the National 
Highway System is a fundamental principal of the Intermodal 
Surface Transportation Efficiency Act of 1997. ISTEA II will 
dedicate approximately 50 percent of total annual 
transportation funds provided in this bill to the maintenance 
and development of this premiere transportation network. This 
total funding represents an increase over the nearly 40 percent 
dedicated to the National Highway System in ISTEA 1991.
Intermodal Surface Transportation Efficiency Act of 1997
    The Intermodal Surface Transportation Efficiency Act of 
1997 continues the transportation policy of the United States 
to ``develop a National Intermodal Transportation System that 
is economically efficient and environmentally sound, provides 
the foundation for the Nation to compete in the global economy, 
and will move people and goods in an energy efficient manner.''
    ISTEA II is a comprehensive six-year measure to reauthorize 
the Nation's Federal-aid highways, highway safety, and other 
surface transportation programs. It provides $145 billion over 
the next 6 years to ensure that our State transportation 
partners have the financial resources and administrative 
flexibility essential to meet diverse regional challenges to 
the national transportation system.
    The funding provided in this legislation represents a 20 
percent increase over the funding level authorized in ISTEA 
1991. ISTEA II upholds and strengthens the laudable goals of 
mobility, intermodalism, efficiency and program flexibility 
that were the hallmarks of ISTEA I.
    According to the Bureau of Transportation Statistics, the 
United States has the largest transportation system in the 
world--170,000 miles of National Highway System routes, 900,000 
miles of other Federal-aid roads, and 3.7 million miles of 
other public roads. Our national network of highways carries 
136 million cars, 58 million light trucks, 6.9 million freight 
trucks and 686,000 buses. In 1995, cars and light trucks--
mostly personal vehicles--were driven 2.2 trillion miles. These 
figures illustrate that many key components of our highway 
network are severely strained. From the aging infrastructure in 
the Northeast, the capacity limitations in the growing South 
and Southwest, and the expansive rural features in the West, 
financial investments in transportation are critical to 
maintain and improve the performance of our national 
transportation system.
    Transportation provides the links between businesses, 
industries and consumers. The national economic benefits of a 
healthy and reliable Federal investment in transportation 
infrastructure are well documented. Transportation and related 
industries employ 9.9 million people in the United States--
slightly more than 7 percent of the total civilian work force. 
As one of the largest sectors of our economy, transportation 
accounts for nearly 11 percent of gross domestic product (GDP). 
Figure 1 below compares the transportation sector to other 
sectors in the economy.


 Figure 1. U.S. Gross Domestic Product by major social function, 1995.

    Transportation remains a sound investment for the American 
taxpayer. The Department of Transportation estimates that for 
every dollar invested, there is an economic return of $2.60.
    The Intermodal Surface Transportation Efficiency Act of 
1997 responds to the many competing demands on transportation 
by ensuring the efficient mobility of people and goods, and 
improving access to an interconnected, multimodal system in a 
safe, environmentally responsible manner.
    Foremost, ISTEA II provides a Federal investment level of 
$145 billion over the next 6 years for highway and highway 
safety programs that is consistent with our national goals to 
achieve a balanced budget by the year 2002.
    Second, it provides new financing tools and techniques to 
stimulate partnerships between traditional public resources and 
the private sector. An expansion and simplification of the 
State Infrastructure Bank Program and landmark financing 
options through new Federal secured loans and lines of credit 
will give our transportation partners new opportunities to 
finance high cost infrastructure projects. Clearly, many of 
these important projects promise significant public benefits, 
but, they are difficult to finance within the limitations of a 
State's annual Federal apportionment. These financing tools 
will be beneficial to States with older transportation 
facilities that require major rehabilitation and to States with 
significant capacity constraints that cause consumers and 
freight carriers hours of wasted time and productivity caused 
by gridlock.
    Third, ISTEA II maximizes State and local transportation 
decisionmaking, with full public participation, through a 
consolidated and streamlined program that recognizes diverse 
regional needs. It maintains our national commitment to enhance 
the development of the National Highway System, ensures the 
maintenance and preservation of the Interstate System, 
continues the investment in the Nation's bridges and increases 
the eligible uses of transportation funds. This expanded 
eligibility is essential for consumers and commercial truck 
traffic to realize the advantages of a seamless intermodal 
transportation system. States will enjoy the full authority, in 
partnership with local and regional governments, to decide the 
appropriate level of investment in additional roads, expanded 
transit services, or Amtrak services to improve mobility, 
expand access or stimulate economic development.
    The bridge program under ISTEA I is integrated as 
significant factors measuring the condition of bridges on our 
Interstate System, National Highway System, and other Federal-
aid roads. The funding level available to States to address 
functional or structural deficiencies is increased from 
approximately $3 billion per year under ISTEA I to more than $4 
billion in ISTEA II. Requirements that States maintain a level 
of spending on our Nation's bridges consistent with 1997 
apportionments will ensure a continued Federal interest in the 
preservation of all classes of bridges.
    Fourth, ISTEA II takes significant steps forward to address 
the safety of the traveling public. Accidents involving motor 
vehicles account for more than 40,000 deaths each year. Many 
fatalities could be avoided if more drivers, occupants and 
pedestrians followed well-known safety procedures. Abuse of 
alcohol remains a dominant factor in 40 percent of highway 
deaths. Although seat belt use is increasing, many passengers 
still do not buckle up. According to National Highway Traffic 
and Safety Administration (NHTSA) estimates, there would be 
more than 9,000 fewer fatalities if everyone used seat belts. 
ISTEA II establishes two new programs to encourage States to 
increase the use of seat belts and to enact minimum penalties 
for repeat drunk driving offenders. Financial incentives are 
provided to urge States to carry out these programs 
aggressively.
    Railway-highway grade crossings and hazard elimination 
programs remain a central feature of safety initiatives to 
improve our roadways. States are required to continue to 
dedicate funds to these important activities, but additional 
flexibility is provided to permit States to use these limited 
resources to address their individual safety problems.
    Fifth, ISTEA II retains a strong commitment of the 
transportation sector to finance and contribute to the 
protection of our environment. The Congestion Mitigation and 
Air Quality improvement program is continued with an increased 
funding level and expanded assistance for maintenance areas. 
Funds made available under this program are to be utilized in 
air quality nonattainment and maintenance areas on projects 
that will likely produce air quality benefits. The program is 
expanded to permit States to enter into partnerships with the 
private sector on beneficial projects such as alternative fuel 
vehicles. The enhancements program is continued with a 
dedicated funding source to ensure that transportation projects 
of historical, cultural, or environmental significance are 
fully integrated into the transportation process.
    Finally, ISTEA II also recognizes the strategic importance 
of technology in providing cost-effective solutions to 
congestion and safety problems of the 21st century. The bill 
builds on and expands research programs first authorized in 
ISTEA and encourages further research and demonstration of 
technology in vehicles, vehicle systems and infrastructure to 
increase safety, benefit the environment, and increase savings 
and investment in the use of advanced materials and 
construction techniques.

               Summary of Title I--Surface Transportation

    Title I reforms and enhances the Intermodal Surface 
Transportation Efficiency Act of 1991 in a number of ways. 
First, it significantly reforms ISTEA's funding formulas to 
balance the needs of the various regions throughout the Nation. 
It simplifies and streamlines the number of major program 
categories from five to three by incorporating the bridge 
program and the Interstate program into the two of the three 
other core programs.
    Second, title I includes innovative finance measures to 
maximize limited Federal resources. The bill establishes a new 
innovative financing program that will provide $500 million to 
leverage a $10 billion dollar Federal line of credit to support 
new transportation projects. It also expands the State 
Infrastructure Bank (SIB) program established in the NHS 
Designation Act.
    Third, title I provides increased flexibility and 
simplicity for States and localities in carrying out the 
program. It includes more than 20 measures to streamline and 
improve project approval and planning for surface 
transportation projects. It expands the eligibility of National 
Highway System program and Surface Transportation Program funds 
to increase the ability of States to meet their transportation 
needs.
    Fourth, title I strengthens ISTEA's commitment to the 
environment. It increases funding for the CMAQ program by an 
average of 18 percent over the level provided in ISTEA. It 
provides a 25 percent increase in the funds set-aside for 
transportation enhancement activities, such as bicycle 
pedestrian facilities and historic preservation. Title I also 
establishes a new wetlands restoration pilot program to help 
offset the loss or degradation of wetlands resulting from 
highway construction.
    Fifth, title I includes provisions to improve safety on the 
Nation's highways. It increases the funds set-aside for safety 
programs such as hazard elimination and railway-highway 
crossings by an average of 56 percent over the level provided 
in ISTEA. The bill establishes a new safety belt incentive 
program to provide performance grants to those States that 
increase their annual seat belt use rate or that surpasses the 
national average seat belt use rate. It establishes a new 
program to encourage States to enact laws with minimum 
penalties to target repeat drunk driving offenders.
    Sixth, title I preserves the strong metropolitan and 
statewide planning provisions of the original ISTEA and retains 
the set-aside for metropolitan planning. It also establishes a 
new pilot program to integrate transportation planning and 
community preservation.
    Seventh, title I establishes a trade corridor and border 
infrastructure, safety and congestion relief program to enhance 
the global competitiveness of the United States through the 
more efficient movement of goods.
    Finally, title I reauthorizes the Federal lands highway 
program and allows other Federal land management agencies to 
help contribute to Federal lands highway projects. It also 
creates a new cooperative Federal lands program to help improve 
those roads that provide access to Federal lands.

              Summary of Title II--Research and Technology

    Title II includes two components, Research and Training, 
and Intelligent Transportation Systems. Title II provides 
contract authority for a comprehensive surface transportation 
research, development, and technology transfer program. It 
authorizes a strategic planning process and funds advanced and 
multimodal research. It requires the Secretary to submit an 
annual report on the Department's research and development 
program. Title II also reauthorizes the University 
Transportation Centers program, the Long Term Pavement 
Performance program (LTPP), the State Planning and Research 
program, partnerships to implement the Strategic Highway 
Research Program (SHRP), and the National Technology Deployment 
Initiative (NTDI). Title II establishes an innovative bridge 
program to provide research and demonstration grants on the use 
of advanced materials, including advanced composites and steel, 
in bridge construction.
    With respect to the Intelligent Transportation Systems 
(ITS) program, title II has two purposes. The first purpose is 
to incorporate ITS into mainstream transportation planning and 
construction processes for all transportation modes at the 
Federal, State and local levels. The second purpose is to 
integrate or deploy ITS technologies in the Nation's 
infrastructure. The ultimate goal is to provide coordinated ITS 
systems that benefit the safe and efficient movement of both 
passengers and freight.

                        Committee Consideration

    On September 12, 1997, Senator Warner, chairman of the 
Subcommittee on Transportation and Infrastructure of the 
Committee on Environment and Public Works, introduced S. 1173, 
the Intermodal Transportation Act of 1997. Senators Chafee, 
Baucus, Bond, Smith of New Hampshire, Graham, Reid, Kempthorne, 
Thomas, Allard, Inhofe, Dorgan, Harkin, Grassley, and Johnson 
were original cosponsors of the legislation.
    On September 17, 1997, the Senate Committee on Environment 
and Public Works conducted a business meeting to consider S. 
1173. The bill, as amended, was ordered reported by a vote of 
18-0. During the business meeting, the committee adopted an 
amendment to change the name of the bill to the Intermodal 
Surface Transportation Efficiency Act of 1997 (ISTEA II).

                      Section-by-Section Analysis

                    TITLE I--SURFACE TRANSPORTATION

Section 1. Short Title; Table of Contents.
    This section designates the title of the bill as the 
``Intermodal Surface Transportation Efficiency Act of 1997,'' 
and lists the table of contents.
Sec. 2. Definition.
    This section defines the term ``Secretary'' for the 
purposes of this Act as the Secretary of Transportation.
Sec. 1001. Short Title.
    This section designates title I of this bill as the 
``Surface Transportation Act of 1997.''

                     Subtitle A--General Provisions

Sec. 1101. Authorizations.

                                Summary

    This section provides contract authority from the Highway 
Trust Fund for each of fiscal years 1998 through 2003 for the 
Interstate and National Highway System Program; the Surface 
Transportation Program; the Congestion Mitigation and Air 
Quality Improvement Program; and the Federal Lands Highways 
Program.
    Authorizations for other highway trust-funded programs not 
included in this section are included in the legislative 
provisions authorizing the programs themselves, such as the 
Federal Highway Administration's research and technology and 
Intelligent Transportation Systems.

                               Discussion

    The Interstate and National Highway System Program (INHS) 
is authorized at an average of $12.1 billion per year over the 
life of the program. Approximately $6.1 billion of the INHS 
program is reserved for the preservation of roads and bridges 
on the Interstate System. States may spend funds provided under 
the Interstate maintenance and Interstate bridge components for 
any eligible project on the Interstate system. There is no 
individual spending requirement for the Interstate maintenance 
component or the Interstate bridge component.
    An average of almost $7.2 billion is authorized each year 
from fiscal years 1998 through fiscal year 2003 for the Surface 
Transportation Program. Authorizations for the Congestion 
Mitigation and Air Quality improvement program average almost 
$1.2 billion per year over the six-year period. The Federal 
Lands Highway Program is authorized at $536 million per year, 
including $200 million for Indian Reservation Roads, $90 
million for Parkways and Park Roads, $172 million for Public 
Lands Highways, and $74 million for the Cooperative Federal 
Lands Transportation Program.
Sec. 1102. Apportionments.

                                Summary

    This section provides the basis for distributing 
apportioned funds among the States. It includes provisions for 
apportioning funds to the following programs: Interstate and 
National Highway System, Congestion Mitigation and Air Quality, 
Surface Transportation Program funds and other apportionment 
adjustments, using current indicators to measure the needs, 
extent, use, and condition of the Federal-aid highway System, 
and air quality severity in nonattainment and maintenance 
areas.

                               Discussion

    The section replaces the apportionment formulas provided in 
ISTEA with apportionments based on current transportation 
measurements in each State. By contrast, ISTEA apportioned a 
majority of funds to the States based on each State's 
historical share of apportionments received in 1987 through 
1991.
    To ensure an efficient and competitive transportation 
system into the 21st century, this section provides for the use 
of indicators that measure the needs, condition, extent and use 
of the Nation's transportation network today. Many 
apportionment factors used in this section draws upon the 
suggested alternatives of the General Accounting Office report, 
``Highway Funding, Alternatives for Distributing Federal 
Funds,'' November 1995.
    The Interstate and National Highway System (INHS) program 
funds are apportioned in three components. The Interstate 
maintenance component of INHS is apportioned based on a State's 
share of total Interstate lane miles and total Interstate 
vehicle miles traveled within the State. The Interstate bridge 
component of the INHS program is distributed according to the 
State's share of total square footage of structurally deficient 
and functionally obsolete Interstate bridges within the State. 
The National Highway System component of the INHS program is 
distributed based on a State's share of: (1) total lane miles 
of principal arterial routes (excluding Interstate lane miles), 
(2) total vehicle miles traveled on principal arterials 
(excluding Interstate lane miles), (3) total square footage of 
deficient bridges on principal arterials (excluding Interstate 
routes), (4) diesel fuel use, and (5) total lane miles of 
principal arterials per capita. Each State is guaranteed a 
minimum \1/2\ of 1 percent of funds apportioned under the INHS 
program.
    This section also preserves the basic structure of the 
current formula for the Congestion Mitigation and Air Quality 
(CMAQ) improvement program, using population and the severity 
of air pollution as the key apportionment factors. The 
apportionment formula for CMAQ adds a weighting for carbon 
monoxide nonattainment and maintenance areas, ozone maintenance 
areas, and submarginal ozone nonattainment areas. These areas 
were added because they are required under the Clean Air Act to 
adhere to maintenance plans in meeting air quality 
requirements. As in current law, each State is guaranteed a 
minimum share of \1/2\ of 1 percent of total annual CMAQ 
apportionments.
    The Surface Transportation Program (STP) funds are 
apportioned based on a State's share of the following: (1) 
total Federal-aid highway lane miles, (2) total vehicle miles 
traveled on Federal-aid highways, (3) total square footage of 
deficient bridges on Federal-aid highways (excluding deficient 
bridges on the Interstate and other principal arterials); and 
(4) contributions into the Highway Account of the Highway Trust 
Fund. Each State is guaranteed a minimum \1/2\ of 1 percent of 
funds apportioned under the STP program.
    This section replaces the existing five apportionment 
adjustments with two apportionment adjustments, the ISTEA 
transition and the Minimum Guarantee. The ISTEA transition 
adjustment provides a ceiling (a ``maximum transition'') and a 
floor (a ``minimum transition'') for this adjustment. The 
maximum transition provides that a State's apportionments under 
this section may not increase by more than a specified 
percentage (e.g., 45 percent in 1998) over its ISTEA average 
funding level. The minimum transition adjustment ensures that a 
State's apportioned funds will either: (1) increase by a 
specified percentage (e.g., at least 7 percent in fiscal year 
1998) from the average of its apportioned programs under ISTEA 
(excluding funds apportioned for Interstate Construction, 
Interstate Substitution, the so-called ``Hold Harmless'' 
program and Federal Lands) or (2) be equal to at least the 
amount that a State received in fiscal year 1997 from all 
apportioned programs in ISTEA, excluding Hold Harmless and 
demonstration projects.
    The other apportionment adjustment provides a Minimum 
Guarantee based on total apportioned funds. This Minimum 
Guarantee is divided into two components. The first component 
provides that a State will receive a minimum share of total 
apportioned funds equal to 90 percent of its share of 
contributions into the Highway Account of the Highway Trust 
Fund. Although similar to the 90 percent Minimum Allocation 
program under current law, it differs in several significant 
ways from current law.
    First, the Minimum Guarantee applies to 100 percent of 
apportioned funds rather than to only a portion of apportioned 
funds. The Minimum Allocation under current law only applied to 
less than 80 percent of apportioned funds in ISTEA, leaving 
some States to receive a percentage equal to 70-80 percent of 
their share of contributions. Second, the calculation is 
reformed so that the 90 percent guarantee is actually achieved. 
Even if the current Minimum Allocation calculation was modified 
to apply to all apportioned funds, States will come close to 
reaching a 90 percent guarantee, but will not reach a 90 
percent guarantee, because the 90 percent Minimum Allocation 
received by one State dilutes the percentage for all other 
States. The 90 percent guarantee calculation in ISTEA II 
eliminates this problem and achieves at least a 90 percent 
guarantee for all States.
    The amount apportioned to each State under the first 
component of the Minimum Guarantee calculation will vary as 
each State's share of contributions varies from year to year.
    The second component of the Minimum Guarantee provides a 
minimum share for States listed in the table in the new section 
105 (a)(2) of title 23. This calculation applies to States with 
unique characteristics such as low population density or small 
land areas.
    This section also continues the 1 percent set-aside for 
metropolitan planning that is consistent with current law. The 
purpose of the set-aside for metropolitan planning is to assist 
metropolitan areas with the metropolitan planning requirements 
continued from current law.
    In all cases, the factors to be used in the apportionment 
formulas are to be based on the latest available data and are 
to be updated each year.
Sec. 1103. Obligation Ceiling.

                                Summary

    This section sets the annual obligation limitation for the 
Federal-aid highway program, specifies the programs that are 
exempt from the obligation limitation, and includes the process 
for distributing the annual obligation limitation.

                               Discussion

    For fiscal years 1998 through 2003, the obligation 
limitation for Federal-aid highways is as follows: for fiscal 
year 1998, $21,800,000,000; for fiscal year 1999, 
$22,768,000,000; for fiscal year 2000, $22,901,000,000; for 
fiscal year 2001, $23,070,000,000; for fiscal year 2002, 
$23,511,000,000; and for fiscal year 2003, $24,259,000,000.
    Consistent with current law, this section continues the 
exemptions for programs that were exempt from the obligation 
limitation under ISTEA. This exemption includes the Emergency 
Relief program, unobligated balances for demonstration projects 
that were already exempt from the limitation in ISTEA, and 
funds apportioned under subsection (a) of the Minimum Guarantee 
adjustment.
    This section also continues the practice that directs the 
Secretary to distribute the annual obligation limitation 
imposed on the Federal-aid highway program. Consistent with 
current law, the Secretary will distribute the annual 
obligation authority to the States in the ratio that the total 
of Federal-aid highway funds and highway safety funds for each 
State bears to the total of Federal-aid highway funds and 
highway safety funds for all the States. After August 1 of each 
fiscal year, the Secretary is required to distribute the 
additional obligation authority from States unable to use their 
obligation authority by the end of the fiscal year to those 
States able to obligate the unused obligation authority.
Sec. 1104. Obligation Authority Under Surface Transportation Program.

                                Summary

    This section continues current procedures in section 133(f) 
of title 23, United States Code, regarding the sub-allocation 
of Surface Transportation Program (STP) funds to urbanized 
areas. The purpose of this requirement is to ensure that the 
obligation rate of the STP funds for urbanized areas within a 
State is consistent with the larger obligation rate for all 
Federal-aid highway apportionments within the State. This 
section amends current law to require States to comply with 
obligation rates over two equal three-year periods, as opposed 
to the existing requirement of complying over a single six-year 
period.

                               Discussion

    This change will strengthen the obligation rate 
requirements for the urban sub-allocation, ensuring that urban 
areas receive a pro-rata portion of funds throughout the six-
year authorization.
Sec. 1105. Emergency Relief.

                                Summary

    This section restates the eligibility for highway and 
bridge projects and the funding requirements for the emergency 
relief (ER) program. ER funds can be used only for emergency 
repairs done to restore essential highway traffic, to minimize 
the extent of damage, or to protect the remaining facility, 
resulting from a natural disaster or catastrophic failure. The 
Secretary is also authorized to obligate amounts necessary from 
any program under title 23 for emergency relief work. These 
additional funds shall be reimbursed with future ER 
appropriations. This section also makes ER funds available 
until expended, an increase from the 2 years provided under 
current law.
    This section clarifies eligibility under the ER program for 
a 600-foot bypass for Route 1, south of San Francisco, in San 
Mateo County, which was and still is subject to periodic 
landslides and closures.

                               Discussion

    This section continues the requirements of the Emergency 
Relief program.
Sec. 1106. Federal Lands Highway Program.

                                Summary

    This section retains the structure of the Federal Lands 
Highway Program (FLHP). The process for inclusions of FLHP 
projects in the Statewide and Metropolitan planning process has 
been streamlined.
    This section also allows Federal land management agencies 
to use their program funds to provide the non-Federal share for 
FLHP projects. FLHP project funds may be used to provide the 
non-Federal share for other title 23 projects undertaken on 
projects providing access to Federal lands.

                               Discussion

    The streamlining of the planning process under this section 
should be implemented through the notice, comment and 
rulemaking process. Because many FLHP projects are constructed, 
improved on or maintained by the States, the views of the 
States are to be considered in this process.
    Eligibility of FLHP funds is extended to include transit 
facilities found within public lands. This expanded eligibility 
is important, as bus systems can reduce congestion and other 
negative impacts of passenger vehicle traffic within our 
national parks and other Federal lands.
Sec. 1107. Recreational Trails Program.

                                Summary

    This section incorporates the existing Recreational Trails 
Program into the Federal-aid Highway Program. The Recreational 
Trails Program will now be funded through contract authority 
from the Highway Trust Fund. The Federal share payable for 
projects under the Recreational Trails Program is increased 
from 50 percent to 80 percent. In addition to the Department of 
Transportation, other Federal agencies may contribute 
additional funds for a Recreational Trails project. However, 
the Federal share from the Department for such projects shall 
not exceed 80 percent and the combined Federal share shall not 
exceed 95 percent.
    This section retains the current requirement regarding the 
States' use of annual apportionments: at least 30 percent of 
funds must be used to facilitate nonmotorized recreation and 30 
percent of the funds must be used for motorized recreational 
purposes. A State shall use the remaining funds for diverse 
recreational purposes, including both motorized and 
nonmotorized recreational trail use.
    This section provides contract authority from the Highway 
Trust Fund for the Recreational Trails program as follows: 
$17,000,000 for fiscal year 1998; $20,000,000 for fiscal year 
1999; $22,000,000 for fiscal year 2000; $23,000,000 for fiscal 
year 2001; $24,000,000 for fiscal year 2002; and $25,000,000 
for fiscal year 2003.

                               Discussion

    This section continues the Recreational Trails program and 
increases the Federal share payable on each project to 80 
percent. The Federal share for this program is consistent with 
the Federal share available for other Federal-aid projects. 
Experience with implementing Recreational Trails projects in 
the past has shown that project sponsors for nonmotorized trail 
projects were significantly disadvantaged in meeting the higher 
non-Federal matching requirements.
Sec. 1108. Value Pricing Pilot Program.

                                Summary

    This section changes the name of the congestion pricing 
pilot program in current law to the value pricing pilot 
program. The number of pilot programs eligible for funding 
under this section is increased from 5 to 15. A total of $8 
million in contract authority is made available for this 
program for each of the fiscal years 1998 through 2003. Funds 
shall remain available for 3 years after the last day of the 
fiscal year in which the funds are authorized.

                               Discussion

    A number of States and localities have used funds provided 
under ISTEA to complete feasibility studies and implementation 
of value pricing projects. This section provides funding and 
additional flexibility to allow these areas to continue value 
pricing projects and to allow additional areas to pursue these 
projects.
    Under the program, eligibility for value pricing program 
funds is extended to all preimplementation and design costs to 
give States more flexibility to study options for different 
types of value pricing projects.
    This section also includes an exemption from the high 
occupancy vehicle (HOV) requirement of subsection 102(b) of 
title 23, which will permit single occupancy vehicles to 
operate in high occupancy vehicle lanes if such vehicles are 
part of a value pricing program. High Occupancy Vehicle (HOV) 
lanes are required generally to have two occupants per vehicle.
    It is expected that all of the projects undertaken through 
funds provided under this section will include a thorough 
evaluation component that will evaluate the projects effects, 
including its impacts on congestion, air quality, transit 
usage, and socioeconomic effects.
Sec. 1109. Highway Use Tax Evasion Projects.

                                Summary

    This section eliminates two tax evasion study requirements 
in current law. First, it eliminates requirements for the 
Secretary of Transportation to report annually to Congress on 
motor fuel tax enforcement activities. The Department has found 
other methods of reporting program successes, such as 
Congressional hearings, an effective means of communicating 
this information to Congress. Second, it deletes out-of-date 
requirements that the Secretary, in consultation with the 
Internal Revenue Service (IRS), report to Congress on the 
feasibility and desirability of using dye and markers to aid in 
motor fuel tax enforcement activities.
    This section provides $5 million in contract authority, for 
each of fiscal years 1998 through 2003 to continue joint FHWA-
IRS-State motor fuel tax compliance projects across the Nation, 
as established in section 1040 of ISTEA. The Federal share of 
the cost of tax evasion projects shall be 100 percent. This 
section also authorizes appropriations for an additional $8 
million for the Secretary to enter into a memorandum of 
understanding with the Commissioner of the IRS for the purpose 
of the IRS' developing and maintaining an excise fuel reporting 
system (ExFIRs). The MOU shall require that the IRS develop and 
maintain the system, and that the system be under control of 
the IRS. The MOU also shall specify that the system is made 
available for use by appropriate State and Federal revenue tax 
or law enforcement authorities. Another $2 million for each of 
fiscal years 1998 through 2003 is authorized to be appropriated 
for the operation and maintenance of the system.

                               Discussion

    This section codifies and expands the successful tax 
evasion program in section 1040 of ISTEA. In addition to these 
provisions, the Omnibus Budget Reconciliation Act of 1993 (OBRA 
1993) resulted in additional successes. OBRA 1993 required the 
dying of untaxed diesel fuel to differentiate it from taxed 
fuel. To supplement the roadside inspection program, the IRS 
entered into an interagency agreement with FHWA to distribute 
nearly $4 million in IRS funds to States willing to conduct 
roadside diesel fuel inspections on behalf of the IRS. More 
than 25 States are participating in this initiative. In 1994, 
the Highway trust fund revenue from diesel fuel tax was 
increased more than $1 billion compared to 1993, with as much 
as $700 million attributed to improved compliance. The multi-
State nature of the enforcement and uniformity efforts first 
developed under ISTEA has been important to its effectiveness.
    In addition, the committee is providing a one-time 
authorization of appropriations to complete the development of 
an excise fuel reporting system and an annual amount for the 
operation and maintenance of the system. This system will 
provide essential information regarding data on import and 
refinery production of motor fuel to compare with terminal fuel 
receipts and fuel deliveries. This new program, along with the 
continuing program, is necessary to help ensure that the 
successful, coordinated regional and national approach to 
combat fuel tax fraud can continue and improve.
Sec. 1110. Bicycle Transportation and Pedestrian Walkways.

                                Summary

    This section amends section 217 of title 23, United States 
Code, to include the construction of pedestrian walkways as an 
eligible use of a State's National Highway System (NHS) 
apportionments under the same criteria by which bicycle 
transportation facilities currently are eligible. This section 
eliminates the restriction on the use of NHS funds for the 
construction of bicycle transportation facilities on land 
adjacent to the Interstate System and amends current law to 
allow the safe accommodation of bicycles on highway bridges 
located on fully access-controlled highways, if the bridge is 
being replaced or rehabilitated with Federal funds.
    The planning provisions in sections 134 and 135 of title 23 
are amended to provide that bicyclists and pedestrians shall be 
given consideration in the comprehensive Statewide and 
metropolitan planning processes, and that the inclusion of 
bicycle and pedestrian facilities shall be considered, where 
appropriate and permitted, in conjunction with all new 
construction and reconstruction of transportation facilities.

                               Discussion

    The Intermodal Surface Transportation Efficiency Act of 
1991 made progress to encourage bicycling and walking as 
alternative modes of transportation. This section builds on 
ISTEA by expanding the amount of funds available to be used for 
these purposes. The Department should work with the States to 
ensure that bicycling and pedestrian interests are represented 
in State and MPO decisionmaking.
Sec. 1111. Disadvantaged Business Enterprises.

                                Summary

    This section continues the provisions in current law 
regarding the disadvantaged businesses enterprise (DBE) 
program. The DBE program, which originated in the Surface 
Transportation Assistance Act of 1982, requires that 10 percent 
of the funds provided under title I of this Act be expended 
with small business concerns owned and controlled by socially 
and economically disadvantaged individuals, except to the 
extent that the Secretary of Transportation determines 
otherwise.

                               Discussion

    In 1995, the Supreme Court decided Adarand v Pena, which 
heightened the standard of judicial review applicable to 
Federal affirmative action programs. The case involved a 
Caucasian subcontractor who submitted a low bid on a Federal 
lands highway construction contract, but lost to a company that 
was certified as ``disadvantaged.'' Adarand filed suit, 
alleging that he was denied the equal protection guaranteed by 
the Fifth amendment. The Court agreed in a 5-4 decision that 
Federal race classifications, such as the DBE program, must be 
subject to strict scrutiny. In other words, the program must: 
(1) serve a compelling government interest, and (2) be narrowly 
tailored to address that compelling interest, which in this 
case is fighting discrimination.
    It is important to note that the Supreme Court did not 
strike down the DBE program or any other Federal affirmative 
action program. That means that if the program in question 
meets the new test outlined by the Court, it is Constitutional 
and may continue to exist. In the case of the DBE program, the 
Department of Transportation has determined that the 
Constitutional concerns can be addressed through changes in the 
Department's regulations. To that end, the Department has 
proposed a number of regulations intended to address the 
``narrow tailoring'' requirements of ``strict scrutiny'' by (1) 
giving priority to race-neutral measures in meeting program 
goals, and (2) limiting the potential adverse effects of the 
program on other parties.
Sec. 1112. Federal Share Payable.

                                Summary

    This section amends section 120 of title 23, United States 
Code, to allow a State, if it chooses, to reduce the Federal 
share of a Federal-aid highway project. This section also 
codifies a provision established in ISTEA, which allows States 
to apply toll revenues used for specified capital improvements 
to their non-Federal share requirement for title 23 projects.

                               Discussion

    Nothing in this section is in intended to require a State 
to lower the Federal share payable on any project funded under 
this title.
Sec. 1113. Studies and Reports.

                                Summary

    This section includes a requirement for the General 
Accounting Office to complete certain program evaluations, and 
for the Secretary of Transportation to report to the Congress 
on obligations under the Federal-aid highway program.

                               Discussion

    This section requires the General Accounting Office (GAO) 
to report to Congress on the Department's methodology for 
determining highway needs using the Highway Economic 
Requirement System (HERS). HERS is a computer program developed 
to use economic criteria and engineering criteria in estimating 
highway investment requirements. The HERS selects the ``best'' 
set of highway improvements to satisfy economically sound 
highway performance objectives. The GAO is required to provide 
Congress with an assessment of the extent to which the model is 
useful in estimating an optimal level of highway infrastructure 
investment.
    The HERS approach, upon which analysis of the Economic 
Efficiency scenario is based, relies on Benefit/Cost Analysis 
to evaluate the attractiveness of potential highway 
improvements. The model will implement only those projects for 
which benefits exceed the initial cost of improvement.
    Since the HERS model is now the Department's primary tool 
for recommending to the Congress appropriate investment levels 
for highway needs, it is important that an evaluation be 
conducted by an independent entity on the reliability and 
accuracy of the model as a policy tool for determining 
infrastructure investment levels. The Comptroller General is 
encouraged to build upon the Department's own evaluation of 
this new investment analysis tool.
    This section also requires the Comptroller General to 
submit a report to the Congress on the International Roughness 
Index (IRI) that is being used currently to measure the 
pavement quality of the Federal-aid highway system. Concerns 
have been raised as to the reliability of the IRI measurement 
across different manufacturers and types of pavements. The IRI 
is one of the inputs used in the HERS model discussed above. 
The IRI study shall indicate usage of this index and the extent 
to which the IRI measurement is reliable.
    This section also requires the Secretary to report annually 
on the rates of obligation of funds apportioned under Federal-
aid highway programs. The report shall include information 
regarding funding category or subcategory, type of improvement, 
and substate geographic area. The report should provide a 
meaningful comparison of obligation rates and overall contract 
authority. No additional information is necessary from the 
States because of this reporting requirement on the Secretary.
Sec. 1114. Definitions.
    This section provides definitions for the terms ``Federal-
aid highway funds'' and ``Federal-aid highway program.''

                               Discussion

    These phrases are used throughout title 23, but are not 
defined in current law. The addition of these clarifying 
definitions is not intended to change the implementation of any 
section under current law.
Sec. 1115. Cooperative Federal Lands Transportation Program.

                                Summary

    This section establishes a new section 207 in chapter 2 of 
title 23, United States Code, which provides a funding source 
for public roads or bridges owned by States or their political 
subdivisions that crosses, are adjacent to, or provide access 
to, Federal lands and Indian reservations (including reservoirs 
owned by the Army Corps of Engineers). These roads help provide 
adequate and safe transportation and supplement the efforts of 
the Federal Government in developing and maintaining roads or 
bridges that serve federally owned land and Indian reservations 
(including reservoirs owned by the Army Corps of Engineers).
    States with more than 4.5 percent of their State land held 
in trust or owned by the Federal government are eligible to 
receive funding under this program. Funds provided under the 
program are to be used for improvements to roads and bridges 
providing access to Federal lands. Contract authority of $74 
million per year is provided for this program.

                               Discussion

    The Cooperative Federal Lands Transportation Program 
ensures that funding will be provided for projects in States 
with sizeable Federal lands holdings. Different from the 
regular Federal lands program, the Cooperative Federal Lands 
Transportation program provides funds directly to these States 
for projects that provide access to Federal lands and Indian 
reservations. Roads and bridges may be owned or maintained by 
the State or their political subdivisions.
    This program will help local jurisdictions maintain public 
roads that serve Indian reservations and are used by school 
buses to transport children to or from school or a Headstart 
program. Such jurisdictions, which comprise mostly Federal or 
tribal land, and may not do not have sufficient tax bases to 
support the maintenance of roads on these Federal lands.
    This section is not intended to replace any funding that a 
State may receive or seek from the Public Lands discretionary 
program. Funding provided under this section is intended to 
supplement efforts by States and Federal lands management 
agencies to meet the tremendous backlog of transportation 
projects in their jurisdictions. This section is to have a 
neutral impact on funding decisions made by the Federal lands 
management agencies in determining their priorities under the 
Federal Lands Highway Program.
Sec. 1116. Trade Corridors and Border Crossing Planning.

                                Summary

    This section authorizes the Secretary of Transportation to 
provide grants for planning and project implementation to 
improve the freight movement at international border crossings 
with Mexico and Canada, and along significant transportation 
trade corridors. Planning and implementation grants may be 
awarded to eligible States or metropolitan planning 
organizations.
    The section provides $1.4 million in contract authority for 
each fiscal years 1998 through 2003 for annual incentive grants 
to eligible States and metropolitan planning organizations for 
joint transportation planning to foster efficient and timely 
movement of goods at border gateways. An additional $3.0 
million in contract authority is made available for of each 
fiscal years 1998 through 2003 for grants to States who engage 
in cooperative, multistate corridor planning to promote the 
safe and efficient movement of goods along international trade 
corridors.
    A total of $125 million is authorized to be appropriated 
for each of fiscal years 1998 through 2003 for grants to States 
to help carry out transportation projects that will accommodate 
increased commercial traffic through border crossings, State 
ports of entry, and international trade corridors.
    The Federal share payable for grants awarded under this 
section shall not exceed 80 percent.
    The General Services Administration is the lead Federal 
agency in the planning and development of border stations. The 
Secretary, upon receiving a request from the Administrator of 
General Services and the U.S. Attorney General, is authorized 
to transfer up to $10 million in each of fiscal years 1998 
through 2003 to the General Services Administration for the 
purposes of constructing transportation facilities that are 
necessary for law enforcement in border States.

                               Discussion

    The growth in international trade following the 
implementation of the North American Free Trade Agreement 
(NAFTA) in 1994 and other trade agreements is straining key 
components of the transportation system in the United States.
    States along the Mexican and Canadian border have witnessed 
substantial increases in international commercial freight 
traffic exceeding the design capacity of State highway routes 
and city streets that can serve as the primary trade routes. 
For example, according to the Bureau of Transportation 
Statistics, truck freight movements have increased by 24 
percent from 1994 to 1996. Increased trade traffic also have 
placed heavy burdens on trade corridors connecting border 
locations and other ports of entry with major trade centers in 
the interior United States.
    Accordingly, a coordinated policy between Federal, State 
and local governments is needed to assimilate this growing 
trade into the national transportation system. Access must be 
improved to gateway facilities; the impacts of congestion must 
be reduced; creative alternatives to limited and costly 
physical infrastructure improvements must be addressed; and 
safety, environmental and commerce regulations must be 
enforced. Improvements in these areas will promote the 
efficient movement of goods and will reduce the environmental 
impacts associated with this increased trade.
    The Secretary may consider the State's own effort in 
providing improvements to border crossing facilities in 
awarding grants under this section.
    The funds provided in this section will assist States and 
metropolitan planning organizations with coordinated planning 
and infrastructure improvements in border communities with the 
highest percentage of commercial vehicle traffic. States with 
significant trade corridors also will receive planning and 
infrastructure assistance to facilitate the coordinated 
development of trade corridors with neighboring States.
    States along a trade corridor are encouraged to work in 
close cooperation with one another to ensure continuity in the 
planning of the corridor. The Secretary is to consider the use 
of the corridor by neighboring States when awarding a grant 
under this section.
Sec. 1117. Appalachian Development Highway System.

                                Summary

    This section provides funds to assist with the continued 
construction of the Appalachian Development Highway System 
located in regions of the 13 States that comprise the 
Appalachian Regional Commission. A total of $40 million for 
each of fiscal years 1998 though 2000; $50 million for fiscal 
year 2001; $60 million for fiscal year 2002; and $70 million 
for 2003 is authorized.
    The Federal share payable for pre-financing costs for 
Appalachian Development Highway projects is increased from 70 
percent to 80 percent.
    The Appalachian Development Highway System map is revised 
to substitute the Virginia portion of Corridor H with the 
Virginia portion of the Coalfields Expressway authorized in the 
National Highway System Designation Act of 1995.

                               Discussion

    The Appalachian Development Highway System was authorized 
in 1965 for the purpose of stimulating economic development in 
the geographically isolated Appalachian region. The system was 
designed primarily to provide efficient connections and access 
for the region to the Interstate system.
    The Appalachian Development Highway System consists of 
3,025 miles in areas of the 13 States which comprise the 
Appalachian Regional Commission. Today, 2,219 miles of the 
system are completed and another 137 miles are under 
construction. A total of 669 miles in each of the 13 
Appalachian States remains to be constructed to complete the 
system. Funds provided under this section will be distributed 
by the Appalachian Regional Commission to individual States 
based on the cost to complete remaining segments.
    In a report prepared by the Federal Highway Administration 
and the 13 Appalachian States entitled ``Appalachian 
Development Highway System 1997 Costs to Complete Report,'' the 
estimated Federal share of the cost to complete the remaining 
segments is $6.8 billion.
Sec. 1118. Interstate 4R and Bridge Discretionary Program.

                                Summary

    This section authorizes $140 million to be obligated at the 
discretion of the Secretary to States for the resurfacing, 
restoration, rehabilitation or reconstruction of any route on 
the Interstate system or for the replacement, rehabilitation or 
seismic retrofit of a highway bridge.
    The Secretary may award funds under this program for 
Interstate 4R projects to those States the Secretary 
determines: (1) have needs that exceed the apportionments 
provided under the Interstate components of the Interstate and 
National Highway System program; and (2) will obligate funds 
provided under the Interstate and National Highway System 
program in the fiscal year for which a grant application is 
submitted.
    The Secretary may award funds under this program to States 
for bridge projects that exceed $10 million in costs or 
represent costs which exceed twice the amount of funds that 
States are required to reserve under section 144 (c).
    The Secretary, using funds provided under this section, is 
required to allocate $20 million each year to any State that 
receives less in the bridge apportionment factors used in the 
Interstate and National Highway System program and the Surface 
Transportation Program compared with the funds a State received 
under the bridge program in 1997. States that have transferred 
more than 10 percent of the funds apportioned under the bridge 
program in 1995 through 1997 to other Federal-aid 
transportation projects are not eligible for an allocation from 
this program.
    The seismic retrofit of the Golden Gate Bridge in 
California is eligible for funds under this section.

                               Discussion

    The Interstate 4R and Bridge Discretionary Program will 
provide $140 million each fiscal year to the Secretary to 
assist States with high cost Interstate and bridge needs. The 
continuation of this discretionary program recognizes that 
States are challenged with individual high cost projects that 
are critical to maintaining the Interstate system or for the 
overall connectivity of our Nation's transportation system.
Sec. 1119. Magnetic Levitation Transportation Technology Deployment 
        Program.

                                Summary

    This section amends chapter 3 of title 23, United States 
Code, to add a new section 322, establishing the Magnetic 
Levitation transportation technology deployment program. The 
Secretary shall provide financial assistance, which shall not 
exceed two-thirds of total costs for eligible projects, which 
include: guideway, stations, vehicles and appurtenant 
facilities and equipment.
    For the MAGLEV program, this section provides a total of 
$10 million for fiscal year 1999 and $20 million for fiscal 
year 2000 in contract authority from the Highway Trust Fund for 
planning grants. This section also authorizes appropriations 
from the Highway Trust Fund of $200 million for each of fiscal 
years 2000 and 2001; $250 million for fiscal year 2002; and 
$300 million for fiscal year 2003. In addition, a State may use 
a portion of its Federal-aid highway funds made available under 
the CMAQ program or the STP program, to pay a portion of its 
share of MAGLEV project costs.

                               Discussion

    MAGLEV (Magnetic Levitation) is the first new 
transportation technology envisioned since the development of 
aviation in the early 1900s, and its adoption represents an 
opportunity for dramatic national gains in transportation 
efficiency and economic growth. This legislation proposes to 
demonstrate the feasibility of MAGLEV by authorizing limited 
Federal participation in financing one or more MAGLEV projects 
in the U.S.
    MAGLEV is an advanced technology in which magnetic forces 
lift, propel, and guide a vehicle over a guideway. Utilizing 
state-of-the-art electric power and control systems, this 
configuration eliminates the need for wheels and many other 
mechanical parts, thereby minimizing friction and permitting 
cruising speeds of 300 miles per hour or more three times the 
speed of conventional American train technology. Because of its 
high speeds and modest right-of-way requirements, MAGLEV offers 
significant advantages over auto, rail, and aviation modes in 
40-to 600-mile travel markets. MAGLEV is also a very safe 
technology. When properly designed, MAGLEV is virtually 
impossible to derail.
Sec. 1120. Woodrow Wilson Memorial Bridge.

                                Summary

    This section amends title IV of the National Highway System 
Designation Act of 1995 to require the Secretary to execute an 
agreement with the Woodrow Wilson Memorial Bridge Authority or 
any Capital Region jurisdiction, Virginia, Maryland or the 
District of Columbia before funds made available under this 
section are available for construction of the replacement 
bridge.
    The agreement is required to identify whether the Authority 
or an individual entity will accept ownership of the new 
facility, and to include a financial plan that identifies the 
total cost, schedule and source of funds necessary to complete 
the project. The Secretary is authorized to use the funds made 
available under this section for rehabilitation of the existing 
Woodrow Wilson Bridge and for the engineering, design, and 
construction of the replacement bridge.
    The definition of the project is modified to require that 
the replacement bridge will be the preferred alternative 
identified in the record of decision in compliance with the 
National Environmental Policy Act.
    This section authorizes $100 million for each of fiscal 
years 1998 and 1999; $125 million for fiscal year 2000; $175 
million for fiscal year 2001; and, $200 million for each of 
fiscal years 2002 and 2003.

                               Discussion

    The construction of the 6-lane Woodrow Wilson Memorial 
Bridge was authorized by Congress in 1954 to provide an 
interstate highway connection between Maryland and Virginia 
across the Potomac River. As owner of the bridge, the Federal 
government is responsible for annual rehabilitation costs to 
ensure that the bridge meets Federal safety standards. Since 
1961, Virginia, Maryland and the District of Columbia have 
financed the annual operation and maintenance costs.
    The Woodrow Wilson Memorial Bridge is the only segment of 
the 44,000 mile Interstate System that is owned by the Federal 
government. Today, the bridge carries 175,000 vehicles per day, 
more than twice its structural design capacity.
    Congress has recognized the responsibility of Federal 
ownership of the bridge and has provided funding for 
rehabilitation, restoration, and resurfacing work. The Federal-
Aid Highway Act of 1981 provided funds for the Department of 
Transportation to undertake a major resurfacing and redecking 
project. During the redecking work, the Department recognized 
that significant rehabilitation work was necessary for the 
bridge to meet Federal safety standards. A 1994 study 
commissioned by the Federal Highway Administration to assess 
the current condition of the bridge confirmed that annual 
repairs were failing to extend the useful life of the facility 
and were no longer cost-effective. The report concluded that 
unless a new facility was constructed within 7 years, possible 
vehicle weight restrictions may be imposed to address safety 
hazards.
    Since 1991, the Federal Highway Administration has analyzed 
alternatives to provide for the replacement of the Woodrow 
Wilson Memorial Bridge under the authority of the Woodrow 
Wilson Memorial Bridge Coordination Committee. The Coordination 
Committee consists of 14 elected officials from State and local 
governments in the metropolitan Washington region and State and 
Federal government officials. The Committee was formed by the 
Federal Highway Administration to identify a bridge replacement 
alternative, consistent with the NEPA process, to enhance 
mobility, and to address to community and environmental issues.
    The preferred alternative recommends side-by-side 
drawbridges to be built near the existing bridge on the current 
alignment. This section provides funds for the implementation 
of the project. The Secretary and Capital region jurisdictions 
are required to reach agreement on identified issues before 
funds provided under this section are available for 
construction.
    The Secretary and the Capital Region jurisdictions are to 
use the funds made available under this section for the 
construction of the bridge component of the project.
Sec. 1121. National Highway System Components.

                                Summary

    This section establishes the National Highway System (NHS) 
as those routes and transportation facilities depicted on maps 
submitted by the Secretary with the report ``Pulling Together: 
The National Highway System and its Connections to Major 
Terminals.''

                               Discussion

    ISTEA of 1991 required the Secretary to submit a proposal 
for the National Highway System that consisted of the current 
Interstate system and additional roads functionally classified 
as principal arterials. The National Highway System Designation 
Act of 1995 designated the NHS and required the Secretary to 
submit a proposal for NHS connectors. ISTEA II authorizes the 
designation of the connectors depicted on the afore mentioned 
map.
Sec. 1122. Highway Bridge Replacement and Rehabilitation.

                                Summary

    This section addresses highway bridge replacement and 
rehabilitation requirements. While the bridge program 
authorized in ISTEA is eliminated in the bill, it is replaced 
with a requirement that States maintain their current funding 
levels for bridges on the Federal-aid system. States must spend 
at least an amount equivalent to the funding a State received 
under the bridge program in fiscal year 1997 for bridges on 
either the Interstate, the National Highway System or other 
Federal-aid roads.
    States may meet this ``level-of-effort'' requirement 
annually or over a 4-year period.
    This requirement is extended to off-system bridges as well. 
An amount equivalent to at least 15 percent of a State's fiscal 
year 1997 bridge apportionment must be expended on bridges off 
the Federal-aid system.
    The current requirement that States with Indian 
reservations reserve 1 percent of their bridge program funds 
for Indian reservation bridges is replaced with a $9 million 
national program to fund improvements to Indian bridges.
    This section also makes eligible the cost to convert an 
historic bridge for alternative transportation purposes.
    This section amends section 144 of title 23, United States 
Code, to provide for a definition for bridge rehabilitation to 
include work necessary to address structural deficiencies, 
functional limitations and safety defects, including seismic 
deficiencies.
    The Secretary, in consultation with the States, is to 
inventory all bridges on public roads, including historic 
bridges on Indian reservation roads and park roads. The 
inventory will classify bridges based on safety and 
serviceability and assign each bridge a priority for 
replacement or rehabilitation.

                               Discussion

    States are not required to meet the spending requirements 
of this section by expending certain levels on any particular 
functional classification of bridges other than the spending 
requirement for the bridges off the Federal-aid system. Funds 
expended by a State on Interstate, NHS or Federal-aid system 
bridges will be credited toward the State's level of effort 
requirement. States may meet this requirement on a cumulative 
basis, including the spending requirement for off-system 
bridges.
Sec. 1123. Congestion Mitigation and Air Quality Improvement Program.

                                Summary

    This section continues the Congestion Mitigation and Air 
Quality Improvement (CMAQ) program and maintains the basic 
eligibility criteria for this program. As in current law, only 
those projects or programs that the Secretary, in consultation 
with the EPA Administrator, determines are likely to contribute 
to the attainment of a national ambient air quality standard or 
the maintenance of such a standard are eligible for CMAQ funds.
    This section amends current section 149(b) to extend the 
eligibility for CMAQ funding to include: (1) carbon monoxide 
nonattainment areas; (2) all carbon monoxide and ozone 
maintenance areas; (3) areas classified as submarginal ozone 
nonattainment areas; and (4) extreme cold start programs.
    Subsection (c) strikes current section 149(c) and inserts a 
new section that modifies the eligibility of CMAQ funds. 
Consistent with current law, a State that does not have and 
never has had a nonattainment area may use its CMAQ funds for 
any project eligible for Surface Transportation Program (STP) 
funds. A State with a nonattainment area or maintenance area 
that received the minimum apportionment from section 104(b)(2) 
can use that amount of its apportionment that is not 
attributable to its nonattainment or maintenance area 
population on any project in the State eligible for STP funds.
    Subsection (d) amends section 120(c) of title 23 to exclude 
projects funded with CMAQ apportionments from the list of 
safety projects eligible for 100 percent Federal participation. 
As a result, the standard 80 percent Federal share provision of 
section 120(c) that applies to all other CMAQ projects would 
apply to these projects as well.

                               Discussion

    The purpose of the Congestion Mitigation and Air Quality 
program, which was established in ISTEA, is to help States meet 
their air quality conformity requirements under the Clean Air 
Act. One of the major unintended consequences of motor vehicle 
transportation is its negative impact on air quality. The costs 
of air pollution that can be attributed to cars and trucks have 
been estimated to range from $30 billion to $200 billion per 
year. This program is intended to relieve a portion of those 
costs.
    This section continues the air quality emphasis of the 
current CMAQ program. CMAQ funds may be used on a wide array of 
purposes designed to improve air quality, including 
improvements to transit systems, capital improvements to 
Intelligent Transportation Systems (ITS) projects, bicycle and 
pedestrian facilities, traffic flow improvements, alternative 
fuels, inspection and maintenance programs, and shared ride 
services.
    This section includes several changes in eligibility of 
CMAQ funds to give the States more flexibility to decide where 
CMAQ funds are spent. Extreme cold start programs, which are a 
traffic control measure identified in the 1990 amendments to 
the Clean Air Act, are added as eligible for CMAQ funds. Also, 
to better reflect the air quality needs of the Nation, carbon 
monoxide nonattainment areas, carbon monoxide and ozone 
maintenance areas, and ozone submarginal areas are added to the 
areas currently eligible for CMAQ funds.
Sec. 1124. Safety Belt Use Law Requirements.

                                Summary

    This section modifies section 355 of the National Highway 
System Designation Act of 1995 to permit New Hampshire to meet 
the safety belt use law required under section 153 of title 49, 
United States Code, through a performance requirement.

                               Discussion

    Through the end of fiscal year 2000, New Hampshire is 
deemed to have met the safety belt use requirements of section 
153 upon certification by the Secretary that the State has 
achieved: (1) a safety belt use rate in each of fiscal years 
1997 through 2000 of not less than 50 percent; and (2) a safety 
belt use rate in each succeeding fiscal year thereafter of not 
less than the national average safety belt use rate.
Sec. 1125. Sense of the Senate Concerning Reliance on Private 
        Enterprise.

                                Summary

    This section expresses the sense of the Senate that Federal 
agencies receiving funds under this Act, in expending funds or 
providing assistance, should rely on the private sector to 
provide goods and services.

                               Discussion

    Funds provided in this Act shall not be used by government 
entities to duplicate or compete with the private sector. Since 
1955, it has been Federal policy that, ``* * * the Federal 
Government will not start or carry on any commercial activity 
to provide a service or product for its own use if such product 
or service can be procured from private enterprise through 
ordinary business channels.'' (Office of Management and Budget 
Circular A-76)
    This section reaffirms this longstanding Federal policy. 
Whether it is construction, engineering, surveying, mapping, 
aerial photography, paving, maintenance, or of other activities 
that go into successful transportation programs, there are many 
private firms, many of them small businesses, that can do this 
work at equal or higher quality and at lower prices.
Sec. 1126. Using Uniformed Police Officers on Federal-Aid Highway 
        Construction Projects.

                                Summary

    This section requires the Secretary of Transportation to 
conduct a study on the extent and effectiveness of the use by 
various States of uniformed police officers on Federal-aid 
highway construction projects.

                               Discussion

    Some States use police officers very extensively on their 
highway construction projects, while other States use virtually 
no police officers for work zone traffic control. Work zone 
safety has been a high priority issue for the Federal Highway 
Administration (FHWA), traffic engineering professionals, and 
highway agencies. This section requires the Department of 
Transportation to submit a report to Congress on the results of 
the study not later than 2 years after the effective date of 
this section.
Sec. 1127. Contracting for Engineering and Design Services.

                                Summary

    This section requires the engineering and design services 
for projects on the Federal-aid system, to be awarded and 
performed under the qualifications-based selection (QBS) 
procedures that utilize the Federal Acquisitions Regulations 
(FAR) process. The Secretary is to establish a certificate 
procedure to ensure that any legislation enacted by a State 
since November 28, 1995 as a substitute for the FAR contract 
administrative and audit complies with the substantive criteria 
law.

                               Discussion

    This section clarifies the intent of Congress regarding the 
QBS process to be used by the States. Use of this process will 
lead to more efficient estimates, accounting and administrative 
practices.

            Subtitle B--Program Streamlining and Flexibility

                     Chapter 1--General Provisions

Sec. 1201. Administrative Expenses.

                                Summary

    This section strikes and replaces subsection 104(a) of 
title 23, United States Code, which requires the Secretary to 
deduct funds from certain Federal-aid highway apportionments to 
administer the Federal-aid highway program. It reduces the 
current 3 \3/4\ percent administrative takedown, which has been 
used to administer the program and to fund other expenses and 
activities. Under this provision, the Secretary shall deduct a 
sum in an amount not to exceed 1 \1/2\ percent of such 
apportionments to administer the Federal-aid highway program.

                               Discussion

    Under ISTEA of 1991, activities other than administrative 
activities were paid for with the administrative takedown. The 
committee has provided these non-administrative items, such as 
research and intelligent transportation system activities, with 
separate funding elsewhere. This modification in the 
administrative takedown will provide a clear distinction 
between the Department's administrative expenses and its 
research activities and other expenses.
Sec. 1202. Real Property Acquisition and Corridor Preservation.

                                Summary

    This section amends section 108 of title 23, United States 
Code, to expand the flexibility provided to State and local 
governments to compete for land resources. It provides for the 
advanced acquisition of real property not only for highway 
projects, but for all transportation improvements under title 
23. This section removes restrictive language and outdated 
programs, revises language, and adds opportunities for States 
and local governments to utilize early property acquisition 
when necessary, while retaining maximum flexibility to leverage 
the use of Federal funds. section 323 of title 23 is amended to 
provide a credit based on the value of publicly owned lands 
incorporated within a federally funded project. This provision 
is consistent with the credits already permitted for donated 
real property and services.

                               Discussion

    The committee understands that development, when not 
coordinated with transportation needs, can often foreclose 
options available to transportation officials to avoid 
environmentally sensitive sites. Often in such cases, early 
planning and acquisition is an effective way to assure that 
lands can be purchased and reserved for future use. The changes 
made by this section will increase the flexibility for local 
and State governments to take action necessary to implement 
advanced planning and corridor preservation.
Sec. 1203. Availability of Funds.

                                Summary

    This section removes an outdated provision from section 118 
of title 23, United States Code and replaces it with a 
provision that permits obligations incurred in prior fiscal 
years released in a current fiscal year to be made available 
for re-obligation.
Sec. 1204. Payments to States for Construction.

                                Summary

    This section amends section 121 of title 23, United States 
Code to remove a restriction that applies the Federal/non-
Federal matching share requirement to each payment a State 
receives. The revised section 121 makes the requirement 
applicable to total project costs rather than to individual 
voucher payments.

                               Discussion

    The increased flexibility provided by these changes will 
result in a simplified program that is easier for State 
departments of transportation to administer. The changes 
recognize that the important restriction is that the total 
project meets the Federal share requirement. The changes also 
make the Federal-aid highway program more compatible with other 
Federal programs, particularly the Federal mass transportation 
program, where projects are often administered jointly by FHWA 
and Federal Transit Administration.
Sec. 1205. Proceeds from the Sale or Lease of Real Property.

                                Summary

    Current section 156 of title 23, United States Code, 
requires States to charge fair market value for the use of 
airspace acquired in connection with a federally funded 
project. This section expands the requirement in section 156 to 
apply to the net income generated by a State's lease, sale, or 
other use of all real property acquired with Federal financial 
assistance. The revised section applies the same standard to 
all real property interests acquired with Federal-aid highway 
funds.

                               Discussion

    This section will reduce a State transportation 
department's administrative overhead relating to property 
management practices. It will simplify such practices it by 
applying the same standard to all real property interests 
acquired with Federal-aid highway funds.
Sec. 1206. Metric Conversion at State Option.

                                Summary

    Section 205 of the National Highway System Designation Act 
of 1995 states that the Secretary shall not require States to 
use or plan to use the metric system before September 30, 2000.

                               Discussion

    This section revises section 205 of the NHS Act, giving 
States the flexibility to choose when and if to implement the 
metric system with respect to designing, advertising, or 
preparing plans, specifications, timetables, or other 
documents, for a Federal-aid highway project. This section does 
not require any State to modify its current use of the metric 
system for Federal-aid highway projects.
Sec. 1207. Report on Obligations.
    This section amends section 104 of title 23, United States 
Code, to require the Secretary to submit to Congress an annual, 
rather than monthly, report on States' obligations for Federal-
aid highways, highway safety construction programs, and 
unobligated balances.
Sec. 1208. Terminations.
    This section terminates the following obsolete or outdated 
provisions: (1) The right-of-way revolving fund, which is 
revised in section 108(c) of title 23, to provide an expiration 
and closeout period for obligations already authorized from the 
fund. This program was terminated as a revolving loan fund 
because of the new rules required of all credit programs in the 
Credit Reform Act of 1990. Credits based on conversion or 
reimbursements are to be applied to the Highway Trust Fund 
rather than to the revolving fund. Twenty-three States 
currently have active right-of-way revolving fund projects. 
This section provides for a 20-year close out period from the 
date that right-of-way funds were advanced to give these States 
sufficient time to complete these unfinished projects. (2) A 
tolling pilot program that has accomplished its intended 
purpose. Pilot toll agreements that were executed under 
subsection 129(k) of title 23 are still valid. (3) The National 
Recreational Trails Advisory committee, established in ISTEA, 
was tasked to review the allocation and utilization of moneys 
under the Recreational Trails program, establish some review 
criteria for trail-side and trail-head facilities, and 
recommend changes in Federal policy to advance the purposes of 
the program. The advisory committee has completed these tasks. 
Although the national committee is terminated in this section, 
the State advisory committees responsible for implementing the 
Recreational Trails program in each State are retained. (4) The 
1962 Bridge Commission Act, which provides Federal approval of 
bridge commission memberships. Today, only one of the original 
five commissions established in 1962 remains, the White County 
Bridge Commission, which operates the New Harmony Bridge across 
the Wabash River between Indiana and Illinois.
Sec. 1209. Interstate Maintenance.

                                Summary

    This section amends section 119 of title 23, United States 
Code, to (1) change the eligible uses of funds apportioned for 
the Interstate Maintenance component of the INHS program and 
(2) change the rules regarding the ability to transfer these 
funds to other Federal-aid highway programs and to use a 
portion of these funds for the construction of single occupant 
vehicle lanes.

                               Discussion

    Current law allows a State to transfer up to 20 percent of 
its Interstate Maintenance apportionment to other program 
categories without the Secretary's approval. Transfers above 
the 20 percent amount need to be approved by the Secretary. 
Section 1209 would increase the percentage of funds that a 
State may transfer from the Interstate components of the INHS 
program to 30 percent. Section 1209 also provides that if a 
State certifies to the Secretary that the sums apportioned to 
it for the Interstate component of the INHS program are in 
excess of its Interstate needs, it may transfer an additional 
20 percent of its Interstate component funds to its 
apportionments under the NHS or STP program.
    This section outlines the activities eligible to receive 
funds apportioned under the Interstate components, including 
intelligent transportation systems (ITS) capital improvements.
    In general, this section continues the prohibition against 
using apportionments provided under the Interstate components 
of the INHS program for the construction of new travel lanes 
that are not high-occupancy-vehicle (HOV) lanes. This section 
does allow, however, a State to use 30 percent of its funds 
apportioned on single-occupant vehicle capacity expansion. 
States are permitted to use a total of 30 percent of their 
funds apportioned under the Interstate components of the INHS 
program to be used either for new capacity projects or may be 
transferred to other program categories. This provision was 
added to allow Interstate reconstruction projects that may 
involve increased capacity to be managed as one contract rather 
than as two separate contracts, as may be required under some 
cases in current law.

                      Chapter 2--Project Approval

Sec. 1221. Transfer of Highway and Transit Funds.
    This section adds a new subsection to section 104 of title 
23, United States Code, to provide for the program-wide, rather 
than project-by-project, transfer and administration of transit 
funds made available for highway projects and highway funds 
made available for transit projects. This revision will 
streamline the administration of highway and transit funds by 
State departments of transportation.
    This section requires the Secretary to administer funds 
made available under title 23 or chapter 53 of title 49 and 
transferred to Amtrak in accordance with Subtitle V of title 
49. Funds made available under title 23 or chapter 53 of title 
49 and transferred to other eligible passenger rail projects 
and activities shall be administered as the Secretary 
determines appropriate. The non-Federal share provisions in 
title 23 or chapter 53 of title 49 will continue to apply to 
the transferred funds.
Sec. 1222. Project Approval and Oversight.

                                Summary

    This section amends section 106 of title 23, United States 
Code, which addresses Federal and State responsibilities for 
surface transportation projects. It retitles section 106 from 
``Plans, Specifications, and Estimates'' to ``Project Approval 
and Oversight'' to reflect the greater scope of this section, 
as revised.
    This section eliminates the current 15 percent limit on 
construction engineering. Repeal of this restriction will 
permit States to be reimbursed for their actual costs of 
construction engineering for each project without compiling the 
costs of construction engineering in an annual accounting to 
determine if the costs are, on average, within the 15 percent 
limitation.
    This section also combines the current two-step process for 
project plans, specification, and engineering and the execution 
of a project agreement into a one-step process.
    This section permits the Secretary to discharge to the 
States with their approval the Secretary's responsibilities 
under title 23 for the design, plans, specifications, 
estimates, contract awards, and inspection of projects on the 
National Highway System (NHS). Under current law, States 
voluntarily oversee such activities for projects carried out 
with Surface Transportation Program (STP) funds, but not for 
NHS projects.

                               Discussion

    Extension of this State authority to NHS projects will give 
significant flexibility to the States and the Secretary to 
discuss and determine mutually the appropriate balance between 
State and Federal (FHWA) oversight for Federal-aid highway 
projects, taking into account overall needs and resources. A 
threshold of responsibility for the States is ensured by 
providing that the Secretary's responsibilities under this 
provision shall be no greater than they are under current law, 
unless a different agreement is reached by the Secretary and 
the State. In discharging responsibilities to the States under 
new section 106, the Secretary is discharging only those title 
23 responsibilities listed in this section.
    To ensure greater accountability for large projects, this 
section includes a new provision that the Secretary shall 
require a financial plan for any project with an estimated 
total cost of $1 billion or more.
Sec. 1223. Surface Transportation Program.

                                Summary

    Subsection (a) of this section amends section 133 of title 
23, United States Code, to require States to set-aside 8 
percent of their Surface Transportation Program (STP) funds for 
transportation enhancement activities. This is a reduction from 
current law which requires a 10 percent set-aside.
    Paragraph (2)(A) of subsection (a) allows the Secretary to 
advance transportation enhancement funds without State 
certification of its public outreach and involvement process 
associated with transportation enhancement projects. Paragraph 
(2) (B) codifies the Department of Transportation's current 
administrative policy regarding innovative financing methods 
and mechanisms applicable to transportation enhancement 
projects. It allows the States to calculate their non-Federal 
share for enhancements projects in several ways; on a project, 
multiple project, or program basis.
    Subsection (b) of this section amends section 133 of title 
23 to reduce the current quarterly, project-by-project State 
certification and notification requirements to annual, program-
wide approval of each State's project agreement. The current 
requirement that payments made by the Secretary to the States 
under section 133 could not exceed the Federal share of costs 
incurred as of the date the State requested payment is 
eliminated.

                               Discussion

    Transportation enhancements were established in ISTEA as a 
10 percent set-aside of a State's Surface Transportation 
Program (STP) funds. The purpose of the transportation 
enhancements set-aside is to make the Nation's roads blend with 
and preserve the natural, social, and cultural environment. The 
transportation enhancements program has offered an opportunity 
for States and localities to use their Federal transportation 
dollars to preserve and create more livable communities. This 
section continues the current enhancements program as an 8 
percent set-aside of a State's STP funds. The adjustment in the 
set-aside percentage reflects the growth in STP funds over the 
next 6 years. The result is that actual funding for 
transportation enhancement activities increases by almost 25 
percent from the level provided in ISTEA.
    This section includes two new provisions to make the 
enhancements program less of a burden for State departments of 
transportation to administer. These modifications reduce the 
delays experienced by project sponsors in advancing the 
selection and completion of enhancements projects. States will 
be able to advance funds for enhancements activities without 
the current requirement that a State certify a public outreach 
and involvement processes before funds are advanced.
    Second, it codifies the Department of Transportation's 
current administrative policy regarding innovative financing 
mechanisms applicable to transportation enhancement projects. 
Innovative financing techniques will give States additional 
flexibility by allowing them to calculate the non-Federal share 
for enhancements projects on either a project, multiple 
project, or program basis. A State's average annual non-Federal 
share of transportation enhancement projects must be at least 
20 percent. A single project however may have a 100 percent 
Federal share, but each State's annual enhancements programs 
must comply with the 20 percent non-Federal match requirement.
    The section also clarifies that a State may allocate its 
enhancements funds to municipalities and nonprofit 
organizations for the restoration and historic preservation of 
recently acquired lighthouse facilities. The historic 
preservation of lighthouses and the conversion of historic 
buildings into transportation-related facilities has been and 
continues to be an activity that is eligible for enhancements 
funds. The construction of public walkways adjacent to 
transportation facilities that give the public access to scenic 
or historic sites, also remain eligible for transportation 
enhancements funding.
Sec. 1224. Design-Build Contracting.

                                Summary

    This section provides authority for States to use design-
build contracting for Federal-aid highway projects meeting 
minimum criteria specified in this section. Current law does 
not allow States to use design-build contracting. This section 
provides authority, after 3 years of enactment of this Act, for 
State departments of transportation to use the design-build 
approach for construction of eligible project segments that 
exceed $50 million in costs.

                               Discussion

    Design-build is an innovative method of highway 
contracting. It differs from traditional contracting in that it 
combines, rather than separates, responsibility for the design 
and construction phases of a highway project. The benefits of 
the design-build approach include greater accountability for 
quality and costs, less time spent coordinating designer and 
builder activities, firmer knowledge of project costs, and a 
reduced burden in administering contracts. Design-build is 
particularly advantageous for accelerating project delivery. 
For example, a study of 11 design-build projects in Florida 
found that this innovative contracting method produced 
significant improvements in project performance as compared to 
non-design-build projects. The average design-build 
construction time was 21.1 percent shorter than the average for 
non design-build projects. In addition, actual design-build 
procurement times were 54 percent less than the normal design 
procurement time allocated for projects using traditional 
contracting methods. The design-build projects also produced a 
4.7 percent reduction in after-bid changes to the contract.
    Despite the potential advantages of design-build, it is not 
an appropriate method for carrying out every highway project. 
Therefore, this section includes minimum cost requirements. To 
qualify for the award of a design-build contract, the cost of 
each usable segment of a highway project must be at least $50 
million. For an Intelligent Transportation Systems project, the 
total cost of the project must exceed $5 million.
Sec. 1225. Integrated Decisionmaking Process.

                                Summary

    Section 1225 requires the Secretary to develop an 
integrated decisionmaking process for surface transportation 
projects that encompasses both transportation and environmental 
requirements. It requires the Secretary to integrate 
requirements of transportation planning and decisionmaking with 
requirements of the National Environmental Policy Act (NEPA) 
and other environmental requirements. The process for complying 
with NEPA is to be used as a comprehensive decisionmaking 
process to address environmental and transportation 
requirements concurrently.
    Section 1225 includes the following specific provisions:
      When a surface transportation project is selected 
for study by a State, the Secretary of Transportation is 
responsible for notifying all Federal agencies that may be 
required to participate in the integrated decisionmaking 
process on the project within 60 days.
      The Secretary is required to afford State, 
regional, tribal and local governments with the opportunity to 
serve as cooperating agencies.
      The Secretary is responsible for bringing 
together all the relevant transportation and environmental 
decisionmakers as soon as practicable in the process.
      Existing, relevant data and analysis are required 
to be used, to the maximum extent possible, to meet all 
applicable requirements.
      Federal transportation funds made available to 
the States are authorized to be used to help permitting 
agencies conduct their reviews so they stay on the same 
schedule for making their decisions as the transportation 
agencies.
      A process for avoiding potential conflicts and 
resolution of conflicts that may arise among participating 
agencies is established. This process includes time frames for 
field level officers and agency heads to resolve conflicts. If 
these time frames are not met, unresolved issues are elevated 
and then ultimately referred to the Council on Environmental 
Quality for resolution.

                               Discussion

    Despite many successes and administrative initiatives by 
the U.S. Department of Transportation, the transportation 
decisionmaking and NEPA processes have not realized the full 
potential to integrate and unify all Federal, State and local 
decisionmaking and environmental reviews. Project decisions and 
environmental reviews are still duplicative, wasteful, and 
result in project delays and increased costs. Frequently, 
interagency coordination reviews are the basis for disputes and 
unresolved issues. The results often do not achieve the best 
overall public interest decisions.
    Section 1225 addresses these concerns with the current 
decisionmaking process for surface transportation projects. For 
transportation projects, including highway construction and 
capital projects, the Secretary of Transportation, in 
consultation with the Council on Environmental Quality, will 
develop a process for integrated decisionmaking that 
comprehensively addresses transportation and environmental 
requirements concurrently, rather than sequentially. This 
process must be consistent with the requirements of NEPA and 
other applicable laws.

                 Chapter 3--Eligibility and Flexibility

Sec. 1231. Definition of Operational Improvement.
    This section revises the definition of ``operational 
improvement'' found in section 101(a) of title 23, United 
States Code, to include the installation, operation, or 
maintenance of certain Intelligent Transportation Systems 
infrastructure projects. The installation, operation or 
maintenance of communications systems, roadway weather 
information and prediction systems, and other improvements 
designated by the Secretary that enhance roadway safety during 
adverse weather are also incorporated into the revised 
definition.
Sec. 1232. Eligibility of Ferry Boats and Ferry Terminal Facilities.
    This section clarifies that the construction of ferry boats 
and ferry terminal facilities are eligible uses of National 
Highway System (NHS), Surface Transportation Program (STP), and 
Congestion Mitigation and Air Quality Improvement program 
(CMAQ) funds. This clarification in eligibility does not amend 
any of the underlying eligibility requirements of the NHS, STP, 
or CMAQ programs.
Sec. 1233. Flexibility of Safety Programs.

                                Summary

    This section amends subsection 133(d) of title 23, United 
States Code, and requires each State to set aside 2 percent of 
its Surface Transportation Program (STP) apportionment for 
railway-highway crossings; 2 percent of its STP funds for 
hazard elimination activities; and 6 percent of its STP funds 
for railway-highway crossings or hazard elimination activities.
    Additional discretion is given to each State to transfer up 
to 100 percent of its 6 percent STP safety set-aside funds to 
its section 402 safety program or to its Motor Carrier Safety 
program allocation. The requirement that half the funds 
authorized and expended under section 130 be available for 
installation of protective devices at railway-highway crossings 
is eliminated. The revised section, however, retains this use 
as an eligible activity.

                               Discussion

    It is a national priority to eliminate roadside hazards and 
to reduce dangers at railway-highway crossings. This section, 
therefore, provides dedicated funding for these important 
priorities. The committee also understands that States have 
different needs. To accommodate the various needs throughout 
the Nation, this section allows a State to transfer its 2 
percent set-aside for railway-highway crossings to hazard 
elimination activities if it certifies to the Secretary that 
the railway-highway funds are in excess of its railway-highway 
needs. The committee has not provided a parallel transfer of 
hazard elimination funds to railway-highway crossings because 
installing protective devices at railway-highway crossings is 
already an eligible use of hazard elimination funds under 
section 152(b).
Sec. 1234. Eligibility of Projects on the National Highway System.

                                Summary

    This section amends section 103 of title 23, United States 
Code, to include publicly owned intra city or intercity 
passenger rail capital projects, including Amtrak, as an 
eligible activity for National Highway System (NHS) program 
funds under the same criteria that apply currently to transit 
and non-NHS highway projects. NHS funding eligibility is 
amended also to include natural habitat enhancement and 
mitigation under the same circumstances in which wetlands 
mitigation is currently eligible for funding under section 103.
    This section also adds the following new items to the list 
of projects eligible for NHS funding: (1) publicly owned intra 
city or intercity passenger rail or bus terminals, including 
those owned by Amtrak; (2) publicly owned intermodal surface 
freight transfer facilities, other than seaports and airports 
located at, or adjacent to, the NHS or connections to the NHS; 
(3) infrastructure-based Intelligent Transportation Systems 
capital improvements; and (4) publicly owned components of 
magnetic levitation (MAGLEV) systems.
    This section also adds to the list of eligible NHS projects 
a paragraph applicable only to projects on the Virgin Islands, 
Guam, American Samoa, and the Commonwealth of the Northern 
Mariana Islands, permitting these territories to use their NHS 
apportionments for any STP-eligible project, any airport, and 
any seaport.

                               Discussion

    The Intermodal Surface Transportation Efficiency Act of 
1991 (ISTEA) was a landmark law in that it gave the States 
unprecedented flexibility in spending their Federal-aid highway 
funds. This section increases the flexibility of the original 
ISTEA by allowing States to use their NHS funds on passenger 
rail, intermodal freight transfer facilities, natural habitat 
mitigation, capital costs of ITS improvements, and publicly 
owned components of magnetic levitation (MAGLEV) systems.
    This section recognizes the diversity and uniqueness of the 
Nation and all of its transportation needs. The demands of the 
various regions throughout the United States are different. In 
the South and Southwest, the sharp growth in population 
continues to put a strain on that area's transportation 
infrastructure. In the Northeast, older infrastructure and 
acute congestion increases the need for non-highway modes such 
as transit and Amtrak. Many Western States, by contrast, with 
their low population density and the great distances involved 
in travel, rely on highways as their major mode of 
transportation. The flexibility provided in this section will 
permit States to use transportation funds to meet their diverse 
needs.
Sec. 1235. Eligibility of Projects Under the Surface Transportation 
        Program.

                                Summary

    This section amends section 133 of title 23, United States 
Code, to clarify that the eligibility for publicly or privately 
owned vehicles and facilities used to provide intercity 
passenger service by bus or rail under the STP program 
parallels the eligibility of such vehicles and facilities under 
chapter 53 of title 49, as revised by this Act. It clarifies 
that the current eligibility under the STP program of highway 
and transit safety improvements generally includes non 
infrastructure highway safety improvements. This section also 
amends paragraph 133(b)(3) to make clear that STP funds may be 
used to fund the modification of existing public sidewalks to 
comply with the requirements of the Americans with Disabilities 
Act.
    The following new items are added to the list of projects 
eligible for STP funds: (1) publicly owned intercity passenger 
rail infrastructure, including Amtrak; (2) publicly or 
privately owned passenger rail vehicles, including Amtrak; (3) 
infrastructure-based intelligent transportation systems capital 
improvements; and (4) publicly owned magnetic levitation 
transportation systems. This section expands STP funding 
eligibility to include natural habitat mitigation under the 
same circumstances in which wetlands mitigation is currently 
eligible for STP funds.

                               Discussion

    The Intermodal Surface Transportation Efficiency Act of 
1991 (ISTEA) was a landmark law in that it gave the States 
unprecedented flexibility in spending their Federal-aid highway 
funds. This section increases the flexibility of the original 
ISTEA by allowing States to use their STP funds on publicly or 
privately owned passenger rail, including Amtrak, intermodal 
freight transfer facilities, natural habitat mitigation, 
capital costs of ITS improvements, and publicly owned 
components of magnetic levitation (MAGLEV) systems.
    This section recognizes the diversity and uniqueness of the 
Nation and all of its transportation needs. The demands of the 
various regions throughout the United States are different. In 
the South and Southwest, the sharp growth in population 
continues to put a strain on that area's transportation 
infrastructure. In the Northeast United States, older 
infrastructure and acute congestion increases the need for non-
highway modes such as transit and Amtrak. Many of the Western 
States, by contrast, with their low population density and the 
great distances involved in travel, rely on highways as their 
major mode of transportation. The flexibility provided in this 
section will permit States to use transportation funds to meet 
their diverse needs.
Sec. 1236. Design Flexibility.

                                Summary

    This section clarifies section 109 of title 23, United 
States Code, regarding planned future traffic needs and the 
Secretary's responsibilities in reviewing State plans for 
proposed highway projects. This modification eliminates the 
requirement that the Secretary ensure that a State plan for a 
highway project must accommodate future traffic demands. The 
revised section only requires that the Secretary ensure that 
future traffic needs were considered.

                               Discussion

    This change gives States and localities additional 
flexibility in designing and constructing highway projects 
under this title.

                          Subtitle C--Finance

                     Chapter 1--General Provisions

    A considerable gap exists between transportation 
infrastructure needs and available Federal resources. It is 
important that national transportation policy anticipate the 
future and reach out for ideas on creative ways to finance our 
infrastructure needs. The programs provided in this subtitle 
will increase the strategic investment in transportation 
infrastructure.
Sec. 1301. State Infrastructure Bank Program.

                                Summary

    This section codifies the State Infrastructure Bank (SIB) 
Pilot Program authorized in the NHS Designation Act of 1995.

                               Discussion

    This section includes modifications to increase the 
flexibility of the SIB program. The current 10-State limit on 
the number of participants in the SIB program is eliminated, 
thus enabling any State to establish a State Infrastructure 
Bank. The percentage limitation regarding funds a State can 
transfer to use State infrastructure banks is eliminated. The 
need to maintain separate highway and transit accounts within a 
SIB is also terminated.
    The 10-state limit unnecessarily restricted States from 
pursuing this financial mechanism and the percentage limitation 
unnecessarily limits States' use of this mechanism. The need to 
maintain separate highway and transit accounts also imposed an 
accounting burden on States that was inconsistent with 
financial flexibility desired in a financing entity such as a 
State Infrastructure Bank.

    Chapter 2--Transportation Infrastructure Finance and Innovation

                                Summary

    This chapter establishes a Federal credit program for 
surface transportation, entitled the ``Transportation 
Infrastructure Finance and Innovation Act.'' The program is 
designed to provide funding for large projects with their own 
revenue streams, which can obtain and leverage substantial 
private capital with a limited Federal investment.

                               Discussion

    This program offers the sponsors of major transportation 
projects a new tool to enhance limited Federal resources, 
stimulate additional investment in our Nation's infrastructure, 
and encourage greater private sector participation in meeting 
our transportation needs.
    The TIFIA program is targeted toward projects that have 
been difficult to finance through traditional means due to 
their scale and complexity. Projects must be designated by the 
Secretary as ``regionally'' or ``nationally'' significant, and 
they must have the potential to be self-supporting from user 
charges or other non-Federal dedicated funding sources. In 
addition, eligible projects must cost more than $100 million or 
represent an amount greater than 50 percent of a State's annual 
apportionment. For ITS projects, the cost must be at lease $30 
million.
    Forms of assistance that can be provided under this program 
include loans, loan guarantees, and lines of credit. In all 
cases the Federal participation will be as a minor investor. 
Federal participation is limited to 33 percent of total project 
costs. The $530 million total program over the six-year 
authorization can leverage total Federal assistance of up to 
$10.6 billion in loans and lines of credit.
    This new credit assistance program is a limited, six-year 
pilot program. The ultimate objective of the program is to 
phase out Federal participation in these large projects and 
encourage private capital investment to fulfill this function.
    The provision allows the Secretary to provide to all title 
23-eligible projects (including highways, transit, high speed 
rail, railroad highway crossing projects, and others) Federal 
credit assistance if the projects meet the eligibility criteria 
outlined in the provision.
    For example, some States are pursuing major initiatives to 
establish high speed rail systems. The State of Florida reports 
that its proposed high speed rail project would require Federal 
credit assistance financing support. The 320-mile system from 
Miami to Orlando to Tampa would introduce 200 mile-per-hour 
trains to the United States and operate on right-of-way 
exclusively reserved for its trains. The State of Florida plans 
to allocate funds from its transportation trust fund over a 40-
year period for this project. This investment will establish an 
innovative partnership with the private sector that is 
contributing significant equity to the project and is intending 
to operate the system over a 40-year period. Such projects that 
demonstrate new technology in the United States marketplace and 
are financed with significant private sector capital comprise 
the types of projects envisioned to receive credit assistance 
authorized under this provision.
    As introduced, the bill also contained two provisions 
expressly applying the ``Davis-Bacon'' prevailing wage 
requirement to funds made available under this chapter and to 
projects assisted with those funds: Section 1314(c)(1) would 
have applied the provisions of title 23, United States Code, 
section 113, thereby expressly applying the prevailing wage 
requirement to highway projects undertaken under TIFIA; section 
1314(c)(5) would have applied the provisions of title 49, 
United States Code, section 5333, thereby expressly applying 
the prevailing wage requirement to mass transportation projects 
undertaken under TIFIA. These two provisions were deleted from 
the reported bill. For highway projects, the provision applying 
title 23, United States Code, section 113 was considered 
redundant, because section 113 already applies by its own 
terms. For mass transportation projects, the committee deferred 
consideration of the application of title 49, United States 
Code, section 5333 to the Committee on Banking, Housing, and 
Urban Affairs, which has jurisdiction over mass transportation 
projects.
Sec. 1311. Short Title.
    This section identifies a new Federal credit assistance 
program for surface transportation facilities as the 
``Transportation Infrastructure Finance and Innovation Act of 
1997.''
Sec. 1312. Findings.
    This section recites Congressional findings that a 
comprehensive surface transportation infrastructure system is 
crucial to the economic health of the Nation and that 
traditional methods of funding transportation projects, 
including Federal grants, are insufficient to meet the Nation's 
infrastructure investment needs.
Sec. 1313. Definitions.
    This section sets forth the definitions for terms used in 
this chapter, including ``project,'' ``eligible project 
costs,'' ``obligor,'' ``local servicer,'' and ``substantial 
completion.''
Sec. 1314. Determination of Eligibility and Project Selection.
    This section defines the threshold eligibility criteria for 
a project to receive Federal credit assistance and outlines the 
basis upon which the Secretary will select among potential 
candidates. The Secretary's determination of a project's 
eligibility will be based on both quantitative and qualitative 
factors, including State and local support, project size, 
whether the project has a revenue stream, and whether the 
project is of national or regional significance.
Sec. 1315. Secured Loans.
    This section establishes a temporary lending program 
whereby the Secretary may make direct Federal loans or 
guarantee loans from private lenders in fiscal years 1998 
through 2003 to demonstrate to the capital markets the 
viability of making transportation infrastructure investments 
where returns depend on excess project cash flows. It is 
intended to help the capital markets develop the capability to 
replace the role of the Federal government by the end of the 
authorization period in helping finance the costs of large 
projects of national significance.
Sec. 1316. Lines of Credit.
    This section authorizes the Secretary to enter into 
agreements to make direct loans to projects at future dates 
upon certain conditions occurring. Such agreement would be in 
the form of a standby line of credit.
Sec. 1317. Project Servicing.
    The program will use State or local governmental agencies 
to assist the Secretary in servicing each credit instrument. 
The State may designate its State infrastructure bank or 
another public agency to serve as the local servicing agent for 
the credit instrument.
Sec. 1318. Office of Infrastructure Finance.
    This section adds a new section to chapter 1 of title 49, 
requiring the Secretary to establish an Office of 
Infrastructure Finance to manage the credit program and provide 
related technical and educational assistance.
Sec. 1319. State and Local Permits.
    This section states that this title in no way supersedes 
any existing State or local laws, regulations, or project 
approval requirements.
Sec. 1320. Regulations.
    This section provides that the Secretary can issue 
regulations that are appropriate concerning this chapter.
Sec. 1321. Funding.
    This section provides contract authority to fund the 
budgetary or subsidy costs of the Federal credit instruments. 
Subsidy costs, which are defined in and required to be funded 
by budget authority under the Federal Credit Reform Act of 
1990, represent the present value of expected cash flows for 
each credit instrument, taking into account the default risk as 
well as any interest rate subsidy. Since this title requires 
all secured loans to be made at a rate equal to the comparable 
term U.S. Treasury rate, there will be no interest subsidy 
element. A total of $60 million for each of fiscal years 1998 
and 1999; $90 million for each of fiscal years 2000 and 2001; 
and $115 million for each of fiscal years 2002 and 2003 is 
authorized under this title. The contract authority would 
remain available until expended and would be derived from the 
Highway Trust Fund.
    The bill caps the nominal amount of credit instruments 
supported by this contract authority at $1.2 million for each 
of fiscal years 1998 and 1999; $1.8 million for fiscal years 
2000 and 2001; and $2.0 million for fiscal years 2002 and 2003.
Sec. 1322. Report to Congress.
    This section requires the Secretary to summarize the 
activities and results of the assistance programs and 
mechanisms provided under this title, including whether they 
are succeeding in encouraging the private capital markets to 
invest in large transportation infrastructure projects. The 
report shall be made within 4 years of enactment of the 
subtitle and include recommendations on whether the program 
should be continued or phased out by the end of the 
authorization period as planned.

                           Subtitle D--Safety

Sec. 1401. Operation Lifesaver.

                                Summary

    A total of $500,000 for each of fiscal years 1998 through 
2003 is required to be set-aside by the Secretary from Surface 
Transportation Program funds. The funds shall be used for 
public education programs designed to reduce the number of 
accidents, deaths and injuries at highway-rail intersections 
and within railroad rights-of-way.

                               Discussion

    This section continues funding for the Operation Lifesaver 
program that is jointly sponsored by Federal, State and local 
government agencies, highway safety organizations and the 
Nation's railroads.
Sec. 1402. Railway-Highway Crossing Hazard Elimination in High Speed 
        Rail Corridors.

                                Summary

    This section authorizes $5 million to be set-aside from 
Surface Transportation Program funds in each of fiscal years 
1998 to 2003 to be allocated by the Secretary to address 
railway-highway crossing hazards in five existing high speed 
rail passenger corridors.
    This section also gives the Secretary authority to select 
an additional three high-speed rail corridors. In designating 
three additional corridors, the Secretary is to consider 
ridership volume, maximum speeds, benefits to nonriders such as 
congestion relief, State and local financial support and the 
cooperation of the owner of the right-of-way.

                               Discussion

    The Secretary is provided $5 million each year to continue 
to address rail-highway crossing hazards in high speed rail 
passenger corridors. This section allows the Secretary to 
continue the five previously selected rail corridors under the 
program: (1) San Diego to Sacramento, CA; (2) Detroit, MI to 
Milwaukee, WI; (3) Miami to Tampa, FL; (4) Washington, D.C. to 
Charlotte, NC; (5) Vancouver, B.C. to Eugene, OR.
    The Secretary is also permitted to select another three 
corridors based on criteria provided in this section. In 
selecting railway corridors for inclusion in this program, the 
Secretary shall consider the New York City-Albany-Buffalo high 
speed Empire Corridor as an example of a project that meets the 
intent of this section because of its current travel at high 
rates of speed and its level of ridership.
Sec. 1403. Railway-Highway Crossings.

                                Summary

    This section amends section 130 of title 23 United States 
Code, and expands the eligibility of railway-highway funds to 
include trespassing countermeasures in the vicinity of the 
crossing, safety education, enforcement of traffic laws and 
publicly sponsored projects at privately owned railway-highway 
crossings. States are required to report to the Department on 
completed crossing projects funded under this subsection for 
inclusion in the DOT/American Association of Railroads National 
Grade Crossing Inventory.
    This section eliminates the requirement that half the funds 
authorized under section 130 be available for installation of 
protective devices at railway-highway crossings. These 
activities remain eligible for funding under this section

                               Discussion

    This section expands the eligible uses of funds for 
additional projects that have a public benefit.
    It also continues the report, based on information from the 
States, on the progress being made to implement the railway-
highway grade crossing program and the effectiveness of such 
improvements. The purpose of this program is to continue to 
address the high number of deaths from accidents at railway-
highway crossings. In 1996, 30 children died and 133 children 
were injured as a result of mostly preventable highway-rail 
crossing accidents.
Sec. 1404. Hazard Elimination Program.

                                Summary

    This section expands the eligibility of the current hazard 
elimination program to include projects that would remove road 
hazards to bicyclists. This section also makes traffic calming 
measures eligible for hazard elimination funds. The prohibition 
on States using hazard elimination funds to correct hazards on 
routes on the Interstate system is eliminated.

                               Discussion

    Providing additional protection for bicyclists is 
important, particularly for bicyclists riding near the 
Interstate and on highway bridges. A full range of safety 
improvements for bicyclists and pedestrians, including 
multimodal and community safety programs, and spot improvement 
programs for rapid-response of low costs hazards, such as 
potholes, roadway and trail debris, and unsafe drainage gates 
is eligible for funding under this program. This section also 
revises the reference to ``highway safety improvement project'' 
in subsection 152(b) to read ``safety improvement project'' to 
reflect the multimodal focus of the hazard elimination program.
Section 1405. Minimum Penalties for Repeat Offenders for Driving While 
        Intoxicated or Driving Under the Influence

                                Summary

    This section establishes a new program to address the 
growing problem of repeat, hardcore drunk drivers with high 
alcohol concentrations. The section requires States to enact 
and enforce penalties for drunk drivers who have an alcohol 
concentration of .15 or greater, and who have been convicted of 
a second or subsequent drunk driving offense within 5 years. 
Minimum penalties shall include a license suspension of not 
less than 1 year, an assessment of the individual's abuse of 
alcohol and recommended treatment regimes as appropriate, and 
either an assignment of 30 days community service or 5 days of 
imprisonment.
    States failing to enact or enforce the described minimum 
penalties for repeat drunk drivers with high alcohol 
concentrations by fiscal year 2000, will have 1 \1/2\ percent 
of their INHS and STP funds transferred to fund alcohol-
impaired driving programs. For fiscal year 2002 and 2003, 
States that have failed to enact or enforce a repeat 
intoxicated driver law will be required to transfer 3 percent 
of their NHS and STP funds for alcohol-impaired driving 
programs.

                               Discussion

    This section addresses the problem that hardcore drunk 
drivers continue to account for a disproportionate share of the 
alcohol-related injuries and fatalities that occur on our 
highways each year. According to the National Highway Traffic 
and Safety Administration's (NHTSA) Fatal Accident Reporting 
System, 54 percent of the drivers involved in alcohol-related 
traffic fatalities had measured alcohol concentrations greater 
than .15, the latest available data year.
    This section does not address the appropriate alcohol 
concentration that a State should adopt to determine when a 
driver who drinks alcohol is intoxicated.
Sec. 1406. Safety Belt Incentive Grants for Use of Seat Belts.

                                Summary

    This section establishes a new program to encourage States 
to promote and increase seat belt usage in passenger motor 
vehicles. This new program provides incentive grants to States 
that either obtain a State seat belt use rate above the 
national average, or increase the State seat belt usage. The 
Secretary shall determine annually: 1) those States that 
achieved a usage rate higher than the national average, and the 
amount of Federal government budget savings from Federal 
medical insurance programs associated with the higher seat belt 
usage rate; or 2) those States that realized an increase in the 
seat belt rate compared with the State's base rate, and the 
resulting Federal government budget savings from Federal 
medical insurance programs.
    Under this section, the Secretary is required to allocate 
to each State in fiscal years 1999 through 2003, the amount of 
Federal medical savings that resulted from either increases in 
seat belt usage over the national average or increases over the 
State's base rate. This section provides $60 million for fiscal 
year 1998; $70 million for fiscal year 1999; $80 million for 
fiscal year 2000; $90 million for fiscal year 2001; and $100 
million for each of fiscal years 2002 and 2003.

                               Discussion

    According to the National Highway Traffic Safety 
Administration (NHTSA), seat belt usage is by far the most 
important step that vehicle occupants can take to protect 
themselves in the event of a crash. Wearing these devices 
increases a person's chance of surviving a crash by 45 percent, 
and of avoiding a serious injury by 50 percent. Deaths and 
injuries that could have been prevented by employing seat belts 
cost society billions of dollars annually in economic 
consequences including lost wages, medical expenses, insurance 
costs and other costs. The Federal and State governments pick 
up a total of 10.1 percent and 4.6 percent, respectively, of 
all injury-related crash costs incurred by individual motor 
vehicle crash victims. Federal and State medical costs 
represent 2.6 percent and 1.77 percent of these total costs, 
respectively.
    This new provision will reward States that increase their 
seat belt usage rate either over the national average or over 
their base rate, regardless of what measures the State has 
employed to realize these increases. The amount of the 
incentive grant that a State receives is linked to the amount 
of Federal budget savings related to medical costs from the 
increase in seat belt usage achieved. Not only will successful 
States receive this incentive grant, but also they will realize 
reduced State-related medical costs, productivity losses, 
insurance administration costs, as well as other costs.
Sec. 1407. Automatic Crash Protection Unbelted Standard.

                                Summary

    This section ensures that the current testing standard for 
air bags is based on the simultaneous use of the air bag or 
supplemental restraint system and a manual seat belt.

                               Discussion

    This section changes current Federal regulations that 
govern safety standards of supplemental restraint systems, 
commonly known as air bags, installed in motor vehicles.
    The current standard requires that the automatic occupant 
crash protection system for passengers sitting in the front 
seat of all vehicles (including trucks, buses and multipurpose 
vehicles) with a gross weight of less than 8,500 pounds must be 
an inflatable restraint complying with the occupant protection 
requirements under section 4.1.2.1 of the standard. Section 
4.1.2.1 requires that all air bags must be designed to deploy 
at a force great enough to protect an average sized male not 
wearing his seat belt.
    The current standard protects adults who deliberately 
choose not to obey seat belt laws while it jeopardizes the 
lives of children, and small statured adults. This is an 
unacceptable policy choice. Although it is estimated that 
passenger side air bags deployed in crashes have saved about 
200 people, it is a fact that 45 children and three adults have 
been killed by overly aggressive air bags. A Federal policy 
that kills one person for every four lives saved is 
unacceptable. Because the current Federal policy requires air 
bags to protect adult males who do not wear seat belts, air 
bags are treated as primary restraint systems. Air bags, 
however, are supposed to be, and are in fact called, 
supplemental restraint systems, not primary restraint systems.
    Section 1407 restores the automatic restraint system to its 
intended role as a supplemental restraint device. It affirms 
that air bags do not substitute for lap and shoulder belts and 
that all occupants should always wear lap and shoulder belts 
regardless of whether there is an inflatable restraint in the 
vehicle. The section requires that beginning on the date of the 
enactment of this Act, manufacturers of motor vehicles shall be 
deemed to be in compliance with applicable performance 
standards for occupant crash protection if the motor vehicle 
meets the applicable requirements for testing with the 
simultaneous use of both an automatic restraint system and a 
manual seat belt. The Secretary of Transportation is directed 
to issue revised standards that are consistent with this 
section.

                        Subtitle E--Environment

Sec. 1501. National Scenic Byways Program.

                                Summary

    This section codifies the National Scenic Byways program as 
a new section 163 of title 23, United States Code. Subsection 
(a) directs the Secretary to carry out the National Scenic 
Byways program and designate roads having outstanding scenic, 
historic, cultural, natural or archaeological qualities as 
National Scenic Byways or All-American Roads. Criteria for 
designation have been defined in an FHWA interim policy notice, 
which was published in the Federal Register in May 1995.
    Subsection (b) directs the Secretary to make grants and 
provide technical assistance to the States to implement 
National Scenic Byways, State scenic byways, and All-American 
Roads projects and to plan, design, and develop State scenic 
byways programs. Subsection (c) lists the eight categories of 
projects eligible for scenic byways funding under this section. 
Subsection (d) allows the Secretary to authorize scenic byways 
funds only for projects that protect the scenic, historic, 
recreational cultural, natural and archaeological integrity of 
a highway and adjacent areas.
    Subsection (e) provides that the Federal share payable on 
account of any project under this section shall be 80 percent, 
except that, for projects on Federal or Indian Lands, a Federal 
land management agency may contribute the non-Federal share 
payable on such projects. Subsection (f) provides contract 
authority from the Highway Trust Fund of $17 million in each of 
fiscal years 1998 and 1999; $19 million for each of fiscal 
years 2000 and 2001; $21 million for fiscal year 2002; and $23 
million for fiscal year 2003.

                               Discussion

    The National Scenic Byways Program established in ISTEA has 
successfully combined economic development with the 
conservation of important scenic, historic, natural and other 
resources.
    The Federal Highway Administration should implement 
aggressive technical assistance and outreach efforts. These 
efforts should educate citizens and communities about this 
program and aid them in accomplishing their conservation and 
economic development goals along scenic byways.
    The criteria used by the Secretary for the designation of a 
scenic byway by a Federal land management agency should include 
consideration of the support or lack thereof by a State or 
States within which the road lies. The nomination for 
designation of a road by a Federal land management agency 
should not override or disrupt the transportation planning of a 
State.
Sec. 1502. Public-Private Partnerships.

                                Summary

    This section amends section 140 of title 23, United States 
Code, by adding a new subsection (e) to allow a metropolitan 
planning organization (MPO), State department of 
transportation, or other project sponsor to enter into 
agreements with any public, private, or nonprofit entity to 
cooperatively implement any project carried out under the 
Congestion Mitigation and Air Quality Improvement (CMAQ) 
program. Paragraph (e)(2) lists forms of participation into 
agreements which can be entered.
    Paragraph (e)(4) specifies that those eligible activities 
for projects using alternative fuels by privately owned 
vehicles or vehicle fleets shall include costs of vehicle 
refueling infrastructure and other capital investments 
associated with the project that would not be borne or 
otherwise offset under any other Federal, State, or local 
program. A public-private partnership may not use CMAQ funds 
for any activity required by the Clean Air Act or any other 
Federal law.

                               Discussion

    As another means to further the goals of environmental 
protection and improved air quality, this section authorizes 
States or MPOs to enter into public-private partnerships using 
CMAQ funds. Expanding the use of CMAQ dollars will allow 
Federal dollars to leverage private sector dollars. This seed 
money will produce public benefits not only by increasing 
overall available funding but also by broadening participation 
and support for government activities that promote clean air.
    Examples of public-private or public-non-profit 
partnerships eligible under this section include public-access 
refueling and recharging facilities for alternative fuel 
vehicles; redevelopment projects at rail and subway stops; 
people movers and infrastructure that promote pedestrian and 
bicycle access to mass transit, reducing the cost of 
alternative fuel vehicles; jitneys and private rail stops, 
public or private passenger rail projects, telecommuting 
projects, remote vehicle sensing programs; remote vehicle 
sensing programs; and other innovative programs.
    This provision also prohibits States from using CMAQ funds 
to enter into a partnership with a private entity for projects 
already required under Federal law and requires the private 
sector entity to participate through cost-sharing, management, 
in-kind services or other participation approved by the 
Secretary.
Sec. 1503. Wetland Restoration Pilot Program.

                                Summary

    This section authorizes the Secretary to establish a 
national wetland restoration pilot program. Subsection (b) 
establishes the discretionary pilot program to fund restoration 
projects to offset the degradation of wetlands resulting from 
highway construction projects carried out before December 27, 
1977. Subsection (c) lists the components of applications 
States are to submit to the Secretary to qualify for funds 
provided in this section.
    Subsection (d) requires the Secretary to select projects, 
in consultation with the Secretary of the Army, the Secretary 
of the Interior, the Secretary of Agriculture, and the 
Administrator of the Environmental Protection Agency. This 
subsection also sets forth the criteria to be addressed in 
States' applications for funds provided in this section, 
including project description, estimated project cost, 
description of a State's level of commitment to the project, 
and the expected benefits of the project.
    Subsection (e) requires the Secretary to submit every 3 
years a report on the results of the program. Subsection (f) 
provides contract authority in the amount of $12 million for 
fiscal year 1998; $13 million for fiscal year 1999; $14 million 
for fiscal year 2000; $17 million for fiscal year 2001; $20 
million for fiscal year 2002; and $24 million for fiscal year 
2003 to carry out this program.

                               Discussion

    The role of wetlands in providing habitat for fish and 
wildlife, water purification, groundwater recharge, and flood 
control is well established. This provision is about 
transportation impacts on wetlands.
    The purpose of the new pilot program created in this 
section is to fund projects to offset the loss or degradation 
of wetlands resulting from surface transportation projects 
carried out before the passage of the Clean Water Act 
amendments in 1977. This section is devoted to historic losses 
of wetlands only. Funds provided in this program are not 
intended to reward State departments of transportation for 
knowingly degrading wetlands through highway construction. 
Therefore, the funds provided in this section are not to be 
used to mitigate wetlands losses from current and future 
highway projects or from projects carried out after December 
1977.

                          Subtitle F--Planning

Sec. 1601. Metropolitan Planning.

                                Summary

    This section retains the current structure and most of the 
metropolitan planning provisions found in section 134 of title 
23. It retains the current project selection process set forth 
in ISTEA. This section makes the following substantive changes 
to current law. First, this section streamlines the 16 
metropolitan planning factors found in current law into seven 
broader issues to be considered in the planning process. 
Second, it gives States flexibility to move projects within a 
3-year Transportation Improvement Program without FHWA approval 
or action if the Governor and metropolitan planning 
organization agree. Third, it eliminates the requirement that 
transportation improvement programs must identify the source of 
funds for individual projects by Federal funding category. 
Fourth, this section adds freight shippers to the list of 
stakeholders to be given opportunities to comment on plans and 
transportation improvement programs (TIPs). Finally, it 
provides that, for urbanized areas designated after the 
enactment of this Act, metropolitan planning area boundaries 
shall cover at least the urbanized area and the area expected 
to become urbanized within the 20-year forecast period and 
shall require the agreement of the Governor and MPO. 
Nevertheless, such boundaries are not required to include the 
entire ozone or carbon monoxide nonattainment, as identified 
under the Clean Air Act.

                               Discussion

    The committee believes that the metropolitan planning 
provisions established in ISTEA of 1991 have been extremely 
successful in practice. When ISTEA was enacted in 1991, 
transportation decisions became part of a larger planning 
process that recognized haw transportation touches every corner 
of our lives. The metropolitan planning requirements have 
yielded high returns bu brining all interests to the table and 
increasing the public's input into the decisionmaking process.
    Finding the right solutions for our transportation 
infrastructure needs requires a comprehensive and strategic 
policy at all levels of government. ISTEA of 1991 created a 
real partnership among the Federal, State and local governments 
and the public in transportation decisionmaking. The committee 
intends for this partnership to be continued and strengthened 
through the six-year life of ISTEA II.
Sec. 1602. Statewide Planning.

                                Summary

    This section retains the current structure and most of the 
statewide planning provisions found in section 135 of title 23. 
It retains the current project selection process set forth in 
ISTEA. This section makes the following substantive changes to 
current law. First, it streamlines the 20 statewide planning 
factors found in current law into seven broader issues to be 
considered in the planning process. Second, it gives States 
flexibility to move projects within a 3-year Transportation 
Improvement Program (TIP) without FHWA approval or action if 
the Governor and metropolitan planning organization agree. 
Third, it eliminates the requirement that transportation 
improvement programs must identify the source of funds for 
individual projects by Federal funding category. Finally, this 
section adds freight shippers to the list of stakeholders to be 
given opportunities to comment on plans and statewide 
transportation improvement programs (STIPs).

                               Discussion

    The committee believes that the metropolitan planning 
provisions established in ISTEA of 1991 have been extremely 
successful in practice. When ISTEA was enacted in 1991, 
transportation decisions became part of a larger planning 
process that recognized haw transportation touches every corner 
of our lives. The metropolitan planning requirements have 
yielded high returns bu brining all interests to the table and 
increasing the public's input into the decisionmaking process.
    Finding the right solutions for our transportation 
infrastructure needs requires a comprehensive and strategic 
policy at all levels of government. ISTEA of 1991 created a 
real partnership among the Federal, State and local governments 
and the public in transportation decisionmaking. The committee 
intends for this partnership to be continued and strengthened 
through the six-year life of ISTEA II.
Sec. 1603. Advanced Travel Forecasting Procedures Program.

                                Summary

    This section establishes a new program, the purpose of 
which is to provide for the completion of Advanced Travel 
Forecasting Procedures (ATFP), formerly known as the 
Transportation Analysis Simulation System (TRANSIMS), and to 
provide support for early deployment of ATFP programs to State 
governments, metropolitan planning organizations, and other 
transportation management areas. The ATFP model is a large-
scale travel simulation that will provide a practical mechanism 
for transportation planning, particularly with respect to 
congestion, air quality and safety, including crash prevention. 
A total of $4 million for fiscal year 1998; $3 million for 
fiscal year 1999; $6.5 million for fiscal year 2000; $5 million 
for fiscal year 2001; $4 million for fiscal year 2002; and $2.5 
million for fiscal year 2003 in contract authority is provided 
for this section.

                               Discussion

    The ATFP model is a large-scale vehicle-specific travel 
simulation that overcomes many problems with current models. It 
provides a more detailed level of information and updates that 
data every second. It provides the opportunity to understand 
and to mitigate congestion and reduce air pollution, and 
information on how some traffic accidents emerge. This analytic 
tool will provide practical apparatus for transportation 
planning by advancing the underlying science to improve 
transportation products and address objectives of ISTEA and the 
Clean Air Act Amendments. It also will enhance partnerships 
involving national laboratories, universities, States, MPOs, 
and the private sector. Formerly funded from the administrative 
takedown, the committee has provided the ATFP model contract 
authority to reflect its potential. Funds are to be allocated 
to no more than 12 entities that represent a diversity of 
populations and geographic regions.
Sec. 1604. Transportation and Community and System Preservation Pilot 
        Program.

                                Summary

    This section authorizes a new Transportation and Community 
and System Preservation Pilot Program to investigate and 
address the relationships between transportation projects, 
community preservation and the environment. The Pilot Program 
consists of three parts: 1) a comprehensive research program; 
2) a planning assistance program to provide funding to States, 
metropolitan planning organizations (MPOs), and local 
governments that want to begin integrating their transportation 
planning with community preservation, environmental protection 
and land use policies; and 3) an implementation assistance 
program to provide funding to States, MPOs and local 
governments that have developed state-of-the-art approaches to 
integrate their transportation plans and programs with their 
community preservation, and environmental planning programs.
    The research program established by subsection (b) examines 
the experiences of communities in uniting transportation, 
community preservation, and environmental goals with 
decisionmaking processes. As part of this research, projects 
carried out with planning or implementation assistance funds 
made available by this section are monitored and analyzed.
    The planning assistance authorized in subsection (c) is 
intended to provide financial resources to States and 
communities that wish to explore integrating their 
transportation programs with community preservation, and 
environmental programs. In providing this planning assistance, 
the Secretary is directed to give priority consideration to 
applicants that demonstrate commitments to public involvement 
and to bring non-Federal resources to the proposed projects.
    The implementation assistance authorized in subsection (d) 
provides financial resources to States and communities that 
have established community preservation programs to enable them 
to carry out projects that address transportation efficiency 
while meeting community preservation, and environmental goals. 
Any activities eligible for funding under title 23 or chapter 
53 of title 49 would be eligible for assistance under this 
program, including corridor preservation activities necessary 
to carry out transit-oriented development plans or traffic 
calming measures.

                               Discussion

    The Transportation and Community and System Preservation 
Pilot Program is authorized as part of the committee's overall 
effort to recognize the potential value of innovation for 
surface transportation systems. This pilot program will explore 
the potential for integrated transportation, community 
preservation and environmental programs to meet these goals at 
lower cost and with reduced environmental impacts. The 
committee expects this pilot program will increase 
significantly the knowledge at the Federal level about the 
feasibility and desirability of coordinated transportation, 
environmental and land use programs, the cost and benefits of 
different approaches, and the implications for Federal 
transportation and environmental policies.
    The research component of this program will identify 
benchmarks for measuring the performance of communities' 
experiences in integrating transportation, community and system 
preservation goals. Performance indicators to be considered 
include the ability to meet access needs with lower 
environmental impacts, improvements in transportation 
efficiency, lower infrastructure construction and maintenance 
costs, and public attitudes toward transportation systems and 
their community and environmental impacts. The committee also 
expects that the initiatives applicants undertake through 
participation in this planning assistance program will enable 
them to be eligible in the future for consideration by the 
Secretary to receive implementation grants authorized by 
subsection (d).
    In providing implementation assistance under subsection 
(d), the Secretary is directed to give priority consideration 
to applicants that have instituted policies such as directing 
funds to high growth areas, urban growth boundaries to guide 
metropolitan expansion, and ``green corridors'' programs. Funds 
allocated under this section are to be distributed in an 
equitable manner by diversity of population and geographical 
region.

                   Subtitle G--Technical Corrections

Sec. 1701. Federal-aid Systems.

                                Summary

    This section updates section 103 of title 23 to reflect 
that the National Highway System, including its connectors to 
intermodal terminals, has been designated by Congress and that 
the Interstate Construction program has been completed. Section 
103, as revised by this section, defines both the National 
Highway System and the Interstate System, and includes 
processes for modifying either system. The revised section 103 
incorporates language regarding designations of Interstates and 
future Interstates from the current section 139. This section 
also addresses unobligated balances of Interstate Construction 
funds and interstate substitute funds, as these programs are 
not continued.

                               Discussion

    The revised section 103 does not make substantive changes 
to the processes for modifying the Interstate or National 
Highway Systems.
Sec. 1702. Miscellaneous Technical Corrections.

                                Summary

    This section makes a number of technical corrections to 
title 23, eliminating outdated provisions, definitions, and 
programs. It replaces ``Federal-aid systems'' with ``Federal-
aid highways,'' ``municipality'' and ``county or municipality'' 
with ``jurisdiction,'' and strikes ``he'' when referencing the 
Secretary of Transportation and replaces with ``the 
Secretary.'' It removes provisions to reflect the fact that the 
Interstate system is complete, and that the surface 
transportation system has been established. It also strikes 
outdated apportionment formulas contained in subsection 130(f) 
and 152(e). It amends section 116 to clarify when a State's 
duty to maintain a Federal-aid highway shall cease, but does 
not impose any additional requirement on the State to maintain 
a highway nor does it relieve any maintenance requirements in 
current law. It simply clarifies existing policy.

                               Discussion

    These changes are technical amendments and involve no 
policy implications.
Sec. 1703. Nondiscrimination.

                                Summary

    This section moves the section in current law on 
nondiscrimination on the basis of sex, to section 140 of title 
23, which concerns all nondiscrimination.

                               Discussion

    This change was made simply to consolidate these sections. 
No substantive changes are made to this section. No policy 
implications are intended.
Sec. 1704. State Transportation Department.
    This section makes technical corrections and changes the 
term ``State highway department'' to ``State transportation 
department'' to emphasize and reflect the intermodal focus of 
these departments.

                  Subtitle H--Miscellaneous Provisions

Sec. 1801. Designation of Portion of State Route 17 in New York and 
        Pennsylvania as Interstate Route 86.

                                Summary

    This section designates the portion of State Route 17 
between the junction of State Route 17 and Interstate Route 87 
in Harriman, New York, and the junction of State Route 17 and 
Interstate Route 90 near Erie, Pennsylvania, as Interstate 
Route 86. However, each segment not meeting specified criteria 
on the date of the Act is designated as a future Interstate 
System route, until upgraded substantially to meet Interstate 
System design standards.

                   TITLE II--RESEARCH AND TECHNOLOGY

                   Subtitle A--Research and Training

    Subtitle A of title II provides contract authority from the 
Highway Trust Fund to conduct a comprehensive surface 
transportation research, development, deployment, and 
technology transfer program. A carefully delineated strategic 
planning process and segregated funds for advanced and 
multimodal research is authorized. These initiatives will 
address the concerns raised by the General Accounting Office in 
its 1997 report on the Department's surface transportation 
research and development program. The bill requires the 
Secretary to submit annually to Congress a report on strategic 
plans, goals, and milestones to help guide research, 
development, and technology transfer activities during a five-
year period beginning on the date of the report. The 
preparation and implementation of this report will ensure 
continuity of research, stimulate appropriate Departmental 
management of the research and development (R&D;) process, more 
closely couple R&D; planning and management with the budget 
process, and allow for effective congressional oversight of the 
use of research and technology contract funds.
    One of the strengths of the Federally-supported surface 
transportation research and technology program is the diversity 
of approaches used to achieve national goals and the diversity 
of organizations participating in these activities. To this 
end, the committee has reauthorized such programs as the 
University Transportation Centers, the Long-Term Pavement 
Performance Program, the State Planning and Research Program, 
as well as continuation of partnerships to implement the 
technologies originally developed by the Strategic Highway 
Research Program.
    As soon as feasible, the FHWA Administrator and the 
Director of the Intelligent Transportation System (ITS) Joint 
Program Office will seek to expand rapidly the number of States 
deploying the Commercial Vehicle Information Systems and 
Networks (CVISN), rather than concentrating assistance in those 
States now participating in the pilot and prototype tests.
Sec. 2001. Strategic Research Plan.
    This section adds a new chapter 52 to subtitle III of title 
49, United States Code. The authority provided in this section, 
however, is not new, as the Department is already carrying out 
strategic research and planning.
            49 U.S.C. Sec. 5201. Definitions
    Section 5201 provides definitions for terms used in this 
chapter.
            49 U.S.C. Sec. 5211. Transactional Authority
    This section authorizes the Secretary to enter into grants, 
cooperative agreements, and other transactions with States, 
industry, educational or other nonprofit institutions, and 
other entities to further strategic research and planning under 
this chapter.
            49 U.S.C. Sec. 5221. Strategic Planning
    This section requires the Secretary to establish a 
strategic planning process to determine national priorities for 
transportation research and development, coordinate Federal 
activities in the area, and evaluate the impact of the Federal 
investment in research. The Secretary also is required to 
submit to Congress a report on strategic plans, goals, and 
milestones to help guide research, development, and technology 
transfer activities during a five-year period beginning on the 
date of the report. The preparation and implementation of this 
report will ensure continuity of research, stimulate vigorous 
Departmental management of the research and development (R&D;) 
process, more closely tie this management process to the budget 
process, and allow for effective congressional oversight on the 
use of research and technology contract funds.
            49 U.S.C. Sec. 5222. Authorization of Contract Authority
    This section provides $1.5 million in contract authority 
from the Highway Trust Fund for strategic planning for each 
fiscal years 1998 through 2003.
Sec. 2002. Multimodal Research and Development Program.
    49 U.S.C. Sec. 5231. Multimodal Transportation Research and 
Development Program
    This section establishes the multimodal transportation 
research and development program to recognize the need for 
research and technology development for intermodal or 
multimodal projects. It requires the Secretary to consult among 
the Administrators of the operating administrations of the 
Department and other Federal officials with research 
responsibilities to establish program priorities. These monies 
will be used for research important to more than one mode of 
transportation.
            49 U.S.C. Sec. 5232. Authorization of Contract Authority
    This section provides $2.5 million in contract authority 
from the Highway Trust Fund for each of fiscal years 1998 
through 2003 to carry out this program.
Sec. 2003. National University Transportation Centers.
    This section consolidates and modifies two current 
programs: the University Research Institutes program and the 
University Transportation Centers program. It retains the ten 
currently existing regional university transportation centers. 
It also designates six university transportation institutes: 
the Mack-Blackwell National Rural Transportation Study Center; 
the National Center for Transportation and Industrial 
Productivity; the Institute for Surface Transportation Policy 
Studies; the Urban Transit Institute at the University of South 
Florida; the National Center for Advanced Transportation 
Technology; and the University of Alabama Transportation 
Research Center. The Secretary is authorized to fund up to four 
additional national centers to address transportation issues 
specifically identified in this section. A total of $12 million 
in contract authority is provided for each of fiscal years 1998 
through 2003 to carry out this section.
Sec. 2004. Bureau of Transportation Statistics.
    This section expands the list of topics to be covered by 
the Bureau of Transportation Statistics (BTS) to include 
transportation-related variables influencing global 
competitiveness, the impact of international trade on the 
Nation's economy and on domestic transportation facilities and 
services, and transportation's impact on the ability of 
domestic U.S. businesses to reach foreign markets. This section 
also requires the BTS Director to coordinate responsibilities 
for long-term data collection with other efforts to implement 
the Government Performance and Results Act (GPRA).
    This section codifies the following existing BTS 
initiatives: (1) the BTS' Transportation Data Base, including 
various data on competing and complementary modes of 
transportation, intermodal combinations, international 
movement, and local and intercity movements; (2) the BTS' 
National Transportation Library; and (3) the general content of 
the BTS' National Transportation Atlas Data Base (NTAD). This 
section requires the Director of BTS to study freight factors, 
such as diesel fuel data and miles of international trade 
traffic. The BTS Director also is required to report to 
Congress and to recommend what improvements are needed in such 
data collection for use in the highway apportionment formula.
    This section authorizes the BTS to establish grants and 
enter into cooperative agreements with public and nonprofit 
organizations to conduct research and development for BTS' 
major activities. Contract authority of $26 million for fiscal 
year 1998; $27 million for fiscal year 1999; $28 million for 
fiscal year 2000; $29 million for fiscal year 2001; $30 million 
for fiscal year 2002; and $31 million for fiscal year 2003 is 
provided for BTS activities.
Sec. 2005. Research and Technology Program.
    This section amends title 23 by adding a new chapter, 
``Chapter 5--Research and Technology,'' and provides a 
definition for the term ``safety.'' It also authorizes the 
Secretary to carry out research, development, and technology 
transfer activities with respect to motor carrier 
transportation and all phases of highway planning and 
development. It requires the Secretary to develop and carry out 
programs to facilitate the application of products that will 
improve the safety, efficiency, and effectiveness of the 
Nation's transportation system. Mandatory elements of the 
research program are delineated and appropriate reporting 
requirements are specified.
Sec. 2006. Advanced Research Program.
    This section requires the Secretary to establish a program 
to address longer-term, higher-risk research that will result 
in potential benefits for improving the durability, mobility, 
efficiency, environmental impact, productivity, and safety of 
transportation systems. The Secretary shall attempt to develop 
partnerships with the public and private sectors to carry out 
this program. A total of $5 million for fiscal year 1998; $7 
million for fiscal year 1999; $9 million for fiscal year 2000; 
and $10 million for each of fiscal years 2001 through 2003 in 
contract authority from the Highway Trust Fund is provided for 
activities under this program. In coordinating and managing 
this program, the Administrator of the Federal Highway 
Administration will ensure that research concerning human 
factors and materials sciences is considered.
Sec. 2007. Long-Term Pavement Performance Program.
    This section directs the Secretary to complete the Long 
Term Pavement Performance (LTPP) program, now at the midpoint 
of its 20-year schedule, and it provides $15 million in 
contract authority from the Highway Trust Fund for fiscal years 
1998 through 2003 for LTPP. One key purpose of the LTPP program 
is to extend the life of highway pavements by developing 
improved pavement design methodologies and strategies for the 
rehabilitation of existing pavements.
Sec. 2008. State Planning and Research Program (SP&R;).
    This section continues the provision under current law that 
directs 2 percent of certain categories of funds apportioned to 
the States for each fiscal year to be available to fund 
planning and research.
Sec. 2009. Education and Training.
    This new section consolidates the legal authority for 
various technology transfer programs and activities, including 
education and training efforts. The Secretary is authorized to 
make grants and enter into cooperative agreements and 
contracts: (1) to assist rural local transportation agencies, 
tribal governments, and consultants; (2) to deliver 
transportation technology and traffic safety information to 
local jurisdictions; (3) to operate local technical assistance 
program centers; and (4) to allow local transportation agencies 
and tribal governments to enhance new technology 
implementation. A total of $7 million for fiscal years 1998 
through 2000 and $8 million for fiscal years 2001 through 2003 
in contract authority from the Highway Trust Fund is provided. 
Up to \1/4\ of 1 percent (up from \1/16\ of 1 percent in 
current law), of all funds apportioned to a State for the STP 
program may be available for the State transportation agencies' 
payment for up to 80 percent of the cost of their employees' 
educational expenses.
    This section requires the Secretary to continue to operate 
the National Highway Institute (NHI) within the FHWA, and lists 
the duties and programs of the NHI, the purpose of which is to 
develop and administer education and training programs. A total 
of $5 million for fiscal years 1998 through 2000 and $6 million 
for fiscal years 2001 through 2003 in contract authority from 
the Highway Trust Fund is provided for the NHI.
    This section continues the authority of the Secretary to 
make grants for research fellowships under the Dwight David 
Eisenhower Transportation Fellowship Program to attract 
qualified college and graduate students to the field of 
transportation. A total of $2 million in contract authority 
from the Highway Trust Fund is provided for each of fiscal 
years 1998 through 2003 for the Eisenhower Fellowship program.
    This section continues to allow the Secretary to develop 
and administer highway construction and technology training 
programs and permissive authority to develop and fund the 
Summer Transportation Institutes. This section allows the 
Secretary to deduct up to $10 million each year before making 
apportionments under section 104(b) for these programs. In 
developing and administering these training programs, the 
Secretary may reserve training positions for individuals who 
receive welfare assistance from a State.
Sec. 2010. International Highway Transportation Outreach.
    This section continues the current authorization for the 
Secretary to conduct activities aimed at improving U.S. firms' 
access to foreign markets. This section also adds a new 
provision to enable States to use their State Planning and 
Research Program funds for international highway transportation 
activities.
Sec. 2011. National Technology Deployment Initiatives and Partnership 
        Program.

                                Summary

    This section directs the Secretary to develop and 
administer a National Technology Deployment Initiatives (NTDI) 
program to significantly expand the adoption of innovative 
technologies by the surface transportation community to 
increase the efficiency and durability and improve the safety 
of the Nation's transportation system. The Secretary shall 
continue deployment partnerships established through the 
strategic highway research program (SHRP). A total of $50 
million in contract authority from the Highway Trust Fund is 
provided for each of the fiscal years 1998 through 2003 for the 
NTDI program and continuation of the SHRP partnerships.

                               Discussion

    In carrying out this section the Secretary should promote 
the demonstration and deployment of technologies identified 
through the Strategic Highway Research Program, including the 
use of the Superpave system and other long-term pavement 
technologies, as well as the use of lithium salts to mitigate 
alkali silica reactivity.
Sec. 2012. Infrastructure Investment Needs Report.
    This section continues the requirement under current law 
that the Secretary submit a report every 2 years to Congress on 
estimates of the future highway and bridge needs of the Nation. 
These reports are due on January 31, beginning in 1999.
Sec. 2013. Innovative Bridge Research and Construction Program.
    This section requires the Secretary to establish and carry 
out a new program to demonstrate the application of innovative 
technology in the construction of bridges and other structures. 
Entities are required to submit an application to receive a 
grant under this program. A total of $10 million for fiscal 
year 1998; $15 million for fiscal year 1999; $17 million for 
fiscal year 2000; and $20 million for each of the fiscal years 
2001 through 2003 in contract authority from the Highway Trust 
Fund is provided for this program.
Sec. 2014. U.S. Bureau of Indian Affairs Administrative Funds.
    This section corrects a section reference.
Sec. 2015. Study of Future Strategic Highway Research Program.
    This section requires the Secretary to enter into grants, 
cooperative agreements or contracts with the National Academy 
of Sciences to carry out a study on the goals, purposes and 
needs for a new Strategic Highway Research program and shall 
report on the results of its study to Congress. In conducting 
the study, the Board shall consult with the American 
Association of State Highway and Transportation Officials 
(AASHTO) and other entities as the Board determines is 
necessary.
Sec. 2016. Joint Partnerships for Advanced Vehicles, Components, and 
        Infrastructure Program.

                                Summary

    This section requires the Secretary, in coordination with 
government agencies and private consortia, to promote the 
research, development and deployment of advanced vehicle 
transportation technologies. The Secretary is required to 
report to Congress annually on projects undertaken by eligible 
consortia and progress made under this section. Funds from the 
General Treasury are authorized to carry out the requirements 
set forth in this section.

                               Discussion

    The committee has included this provision to continue 
support for the advanced transportation technology consortia 
program, which was first established in ISTEA. The program 
develops advanced transportation technologies to help reduce 
vehicle emissions, enhance U.S. competitiveness, and decrease 
the Nation's reliance on foreign fuel.
Sec. 2017. Transportation and Environment Cooperative Research Program.

                                Summary

    This section establishes a Transportation and Environment 
Cooperative Research Program. Five million dollars per year is 
authorized to be appropriated for this program.
    Under this section, the Secretary, in consultation with the 
Secretary of Energy and the Administrator of the Environmental 
Protection Agency, will establish an Advisory Board that will 
recommend environmental and energy conservation research, 
technology and technology transfer activities related to 
surface transportation. The section directs the Secretary to 
enter into cooperative agreements with the National Academy of 
Sciences to carry out the activities as determined by the 
Advisory Board. Priority is given to researching and reporting 
on the relationship between highway density and ecosystem 
integrity, and in developing a methodology for transportation 
managers and regulatory agencies to allow for integration of 
the report in the planning and development of solutions and 
alternatives for transportation needs.

                               Discussion

    The program allows DOT to work with researchers and 
scientists outside the Department, to consider the relationship 
between transportation and the environment. As transportation 
significantly affects the environment, it is important to 
develop objective scientific bases on which to better 
understand the effects of transportation -- modes, designs, 
materials, emissions -- on the environment. This program will 
allow the Department to work cooperatively with scientists and 
researchers outside the Department on these important topics.
Sec. 2018. Conforming Amendments.
    This section repeals sections 307, 321 and 326 of title 23, 
which have been incorporated elsewhere in this title.

             Subtitle B--Intelligent Transportation Systems

    This subtitle builds upon the goals established in the 
Intelligent Transportation Systems Act of 1991 (23 U.S.C. 307 
note; 105 Stat. 2189) and the progress achieved over the past 6 
years in the emerging field of Intelligent Transportation 
Systems (ITS). The title provides sufficient, sustained funding 
and strong programmatic direction to the ITS Joint Program 
Office in the U.S. Department of Transportation. With this 
direction, the Federal government will continue to provide the 
leadership in advancing technologies that improve 
transportation safety and in ensuring compatibility with the 
established ITS national architecture. Intelligent 
Transportation Systems provide cost-effective ways to achieve 
the Nation's transportation goals of mobility, efficiency, 
national and international productivity, safety and 
environmental protection. The goals of the subtitle are 
twofold: 1) to incorporate ITS into mainstream transportation 
planning and construction processes for all modes at the local, 
State and Federal levels; and 2) to integrate--or deploy--ITS 
technologies in the Nation's infrastructure, resulting in 
coordinated ITS systems that benefit the safe and efficient 
movement of both passengers and freight in localities, States, 
regions and corridors.
    Intelligent Transportation Systems (ITS) are groups of 
technologies that use sensors, computer networks, and related 
information/communications systems that work together to 
improve surface transportation and safety. State and local 
governments, the U.S. Department of Transportation and over 200 
companies have participated in over 240 ITS projects. This 
initiative is providing the technologies, institutional 
framework and experience needed to make the Nation's surface 
infrastructure easier to use and more efficient. Evaluations of 
many projects indicate that ITS locations reduce traffic 
congestion, improve transit services, decrease the number of 
traffic accidents, or reduce emissions and conserve fuel. While 
the more than 6 years of effort have shown progress in 
advancing ITS technologies beyond the research arena toward 
deployment, many institutional and financial challenges 
continue to constrain the widespread integration of current 
systems.
    The Secretary is provided authority to utilize 25 percent 
of the funds authorized for various ITS activities to provide 
credit assistance toward title 23-eligible projects with 
significant ITS elements consistent with provisions of title I, 
subchapter C, chapter 2 of this bill. The ITS elements 
authorized may be applicable to highways, transit, rail or 
other projects.
    The purpose of this provision is to allow the Secretary to 
advance ITS implementation by taking advantage of the ability 
of many ITS projects to support credit assistance in lieu of 
grant assistance. ITS has been used with facilities that 
generate project revenue sufficient to repay bonds and loans, 
such as toll roads. Other types of projects contain significant 
ITS elements and promise to generate project revenue sufficient 
to repay loans or support lines of credit or loan guarantees.
    By utilizing ITS funds to provide credit assistance to ITS 
projects, the Secretary would be able to support significantly 
more ITS development than with grant funds alone. Under this 
provision, assuming the same degree of leveraging consistent 
with the Transportation Infrastructure Finance and Innovation 
program, the Secretary could provide up to $10 billion in 
credit assistance versus $500 million in grants by utilizing 
the full flexibility provided in this provision. The Secretary 
will also be able to use credit assistance under this section 
to support projects also receiving assistance provided through 
the Transportation Infrastructure Finance and Innovation 
program provisions of this bill.
    Sections 2101 through 2104 replace sections 6051 through 
6059 of title VI, Part B of the Intermodal Surface 
Transportation Efficiency Act of 1991 (``ITS Act of 1991''). 
The ITS program is a key forward-looking initiative of ISTEA 
that continues to serve an integral role in enhancing traffic 
safety and efficiency. ITS technologies provide new options for 
transportation planners to address safety and capacity concerns 
without the negative environmental and social effects of 
expanding the physical footprint of a highway. Notable ITS 
technologies include in-vehicle navigation systems, traffic and 
incident management systems, and ``fast toll'' technologies.
Sec. 2101. Short Title.
    This subsection designates the name of subtitle B of 
chapter 5 as the ``Intelligent Transportation Systems Act of 
1997'' (ITS Act).
Sec. 2102. Findings.
    This section lists Congress' findings with respect to the 
ITS program.
Sec. 2103. Intelligent Transportation Systems.
            23 U.S.C. Sec. 521. Purposes

                                Summary

    This section sets forth the purposes of the ITS Act of 
1997, which are: (1) to provide for accelerated deployment of 
proven technologies and concepts and increased Federal 
commitment to improving surface transportation safety, and (2) 
to expedite deployment and integration of basic ITS services 
for consumers of passenger and freight transportation across 
the Nation.

                               Discussion

    During the past 6 years of the authorized program, the 
Federal government and industry have worked to define the 
parameters of a successful ITS program, by identifying the 
potential for ITS within the national transportation 
infrastructure and the appropriate role of the Federal 
government in ITS. The purposes provide general direction to 
ensure that ITS reach their potential in advancing 
transportation safety, efficiency, economic productivity, 
technological advancement and environmental protection, and in 
ensuring that ITS is mainstreamed so that ITS becomes another 
tool in the range of options when transportation planners at 
all levels of government and industry consider approaches to 
addressing the need to increase capacity, improve safety or 
improve efficiency.
            23 U.S.C. Sec. 522. Definitions
    This section provides definitions for terms used in this 
subchapter. The key ITS technologies can be grouped into 
several broad categories according to intended functions: (1) 
Advanced Traveler Information Systems help travelers by 
providing real-time routing, scheduling and congestion 
information relevant to transportation systems; (2) Advanced 
Traffic Management Systems help State departments of 
transportation departments manage surface transportation 
systems through surveillance, signal coordination, electronic 
payment services, ramp metering, and incident response; (3) 
Advanced Public Transportation Systems improve the scheduling 
and transfers as well as on time performance of transit systems 
and provide improved schedule information to users; (4) 
Commercial Vehicle Operations help safety inspectors and 
economic regulators efficiently conduct their responsibilities 
pertaining to commercial buses and trucks; (5) Advanced Vehicle 
Control Systems seek to improve driver information and 
functions or facilitate emergency response of drivers; and (6) 
Automated Highway Systems intend to increase the operating 
efficiency or throughput of highways by automating cars, 
allowing them to be driven in closely spaced platoons under 
roadway controlled and safe conditions.
            23 U.S.C. Sec. 523. Cooperation, Consultation, and Analysis
    This section requires the Secretary to foster enhanced 
operation and management of the national surface transportation 
system, promote the widespread deployment of ITS, and advance 
emerging technologies in cooperation with State and local 
governments and the private sector.
            23 U.S.C. Sec. 524. Research, Development, and Training

                                Summary

    This section requires the Secretary to undertake 
comprehensive research, development, testing and technical 
assistance to carry out the purposes of the ITS Act. It 
encourages projects that improve mobility, the quality of the 
environment, and safety, such as advanced vehicle controls and 
roadway safety systems linked to the vehicle. Programs shall be 
consistent with the national ITS architecture and shall 
maintain an appropriate balance between near-term safety spin-
off systems and longer-term fully automated systems.
    The Secretary is required to submit a 6-year plan to 
Congress within 1 year of enactment of this subtitle, and 
annually thereafter. This document will report on progress in 
meeting program goals, objectives, and milestones. The 
Secretary also is required to establish and maintain an 
informational clearinghouse containing technical and safety 
data collected from Federal projects. A total of $120 million 
for fiscal year 1998; $125 million for fiscal year 1999; $130 
million for fiscal year 2000; $135 million for fiscal year 
2001; $140 million for fiscal year 2002; and $150 million for 
fiscal year 2003 in contract authority from the Highway Trust 
Fund is provided to carry out the requirements set forth in 
this section.

                               Discussion

    This section provides guidance to the Secretary in 
directing the resources toward programs and projects that meet 
the goals of the program and satisfy the Federal role in ITS. 
This section focuses on intelligent vehicles and intelligent 
infrastructure and gives examples of those projects. While 
substantial investment is needed to ensure that ITS 
technologies reach their potential, the Secretary is expected 
to work with industry and research partners in leveraging 
scarce Federal funds to advance the most promising fields and 
technologies. While the most promising projects involve short-
term benefits, the Secretary is also encouraged to move ahead 
on technologies, such as automated highway systems, that may 
offer long-term safety benefits.
    While the Federal/non-Federal cost share for research 
projects is 80 percent-20 percent, the Secretary may waive the 
non-Federal share for high-risk research projects. Because the 
ITS field is dynamic and emerging, the Secretary has the option 
of moving ahead on innovative, high-risk projects that are 
consistent with the goals of the title, but that may not have a 
sufficient level of support within industry or local or State 
governments.
    Many advances in successfully implementing ITS have been 
achieved through operational tests and projects. While research 
and development is important, the ultimate test for the 
potential of ITS has been in the field of implementation. 
Consequently, the Secretary is allowed to allocate funds for 
evaluations, to ensure that the States and localities are able 
to understand what has worked and what has not worked.
            23 U.S.C. Sec. 525. Intelligent Transportation System 
                    Integration Program

                                Summary

    This section requires the Secretary to conduct a 
comprehensive program to accelerate the integration and 
compatibility of ITS technologies. The Secretary is required to 
encourage private sector involvement through public private 
partnerships and other innovative financial arrangements. A 
total of $100 million for fiscal year 1998; $110 million for 
fiscal year 1999; $115 million for fiscal year 2000; $130 
million for fiscal year 2001; $135 million for fiscal year 
2002; and $145 million for fiscal year 2003 in contract 
authority from the Highway Trust Fund is provided to carry out 
this program.

                               Discussion

    The ITS field has witnessed significant advances during the 
past 6 years. Much of the program's focus has been on research, 
development and operational tests. These efforts have produced 
proven technologies that can be deployed today. Thus, the ITS 
program must move from a primarily research-driven program to 
one of integration. This integration program will assist in 
this aggressive implementation of model deployment projects. In 
order to provide guidance to States and localities, the section 
identifies priorities for integrating projects, and requires a 
financing and operations plan.
            23 U.S.C. Sec. 526. Integration Program for Rural Areas

                                Summary

    This section requires the Secretary to conduct a 
comprehensive program to accelerate the integration and 
deployment of ITS in rural areas. The Secretary is required to 
promote private sector involvement in the project by using 
public private partnerships or other innovative financial 
arrangements. A total of $10 million for each of fiscal years 
1998 through 2000; $15 million for fiscal year 2000; and $20 
million for each of fiscal years 2002 and 2003 in contract 
authority is provided to carry out this program. If funds made 
available under this section are used, the Federal share shall 
not exceed 50 percent. If other program funds are used, the 
normal Federal share of 80 percent applies.

                               Discussion

    While much of the focus of ITS projects has tended to be in 
metropolitan areas, ITS technologies have shown significant 
benefits for rural communities, regions and corridors. Projects 
such as Road Weather Information Services, Tourism Information 
Systems, Mayday Services, and In-Vehicle Navigation Systems 
have been carried out with success. In order to encourage the 
use of ITS to improve safety, encourage tourism and improve 
efficiencies, this section provides the Secretary with separate 
funding to integrate ITS in rural areas.
            23 U.S.C. Sec. 527. Commercial Vehicle Intelligent 
                    Transportation System Infrastructure

                                Summary

    This section requires the Secretary to deploy intelligent 
transportation systems (ITS) to promote the safety and 
productivity of commercial vehicles and drivers, and to reduce 
administrative costs associated with commercial vehicle 
operations. A total of $25 million for each of fiscal years 
1998 through 2000; $35 million for each of the fiscal years 
2001 and 2002; and $40 million for fiscal year 2003 in contract 
authority is provided to carry out this section. If funds made 
available under this section are used, the Federal share shall 
not exceed 50 percent. If other program funds are used, the 
normal Federal share of 80 percent applies. The section focuses 
on CVO safety and programs that advance onboard driver and 
vehicle safety monitor systems. The funds will be used 
primarily for safety, efficiency of enforcement efforts, 
electronic processing of registration, driver licensing and 
fuel tax, and communication with other States

                               Discussion

    The Secretary is directed to continue to research and then 
deploy the Commercial Vehicle Intelligent System Network 
(CVISN) program, to promote safety and productivity of 
commercial vehicles and drivers, and to reduce costs associated 
with commercial vehicle operations (CVO). These systems will be 
deployed along corridors and will link States' records on CVO 
companies and compliance. Private companies using computing and 
communications technology for their truck fleets are realizing 
productivity gains, for example, increasing pickups and 
deliveries per day. Cost savings have also been predicted for 
States using CVO at weigh stations. One study found that ITS 
holds promise for improving the efficiency of regulatory and 
enforcement agencies. The program eventually will allow State 
regulators near real-time access to records and information in 
other States and agencies. This information will allow the 
regulators to both target carriers with poor safety records and 
better enforce violators off the highway.
            23 U.S.C. Sec. 528. Standards

                                Summary

    This section requires the Secretary to develop, implement 
and maintain a national architecture and supporting standards 
to promote the widespread use and evaluation of ITS technology 
as a component of the national surface transportation system 
that will promote interoperabililty among and efficiency of ITS 
technologies. Highway Trust Fund monies cannot be used to 
deploy ITS technology that does not comply with each 
provisional or completed standard established under this 
section. This restriction does not apply to upgrades, 
expansions, operation, and maintenance of ITS in existence 
before the date of enactment of this subchapter.
    This section gives the DOT Secretary the ability to secure 
the necessary spectrum from the FCC for nationwide ITS 
technologies. The Secretary is to consult with the Secretaries 
of Defense, Commerce, and the Chairman of the Federal 
Communications Commission (FCC) to determine the best means for 
securing spectrums needed to carry out this subsection and 
shall submit a report on the progress within 1 year of 
enactment of this subchapter. Within 2 years of enactment of 
this subchapter, the FCC shall allocate the necessary spectrum 
for the near-term establishment of a dedicated short-range 
vehicle-to-wayside wireless standard. The Secretary is 
authorized to use funds available under section 524 for 
Research, Development, and Technology to carry out this 
section.
    This section continues the Priority Corridor program 
established in ISTEA. Established corridor coalitions have 
shown success in managing traffic congestion and emergency 
response.

                               Discussion

    Standards can facilitate innovation and promote 
interoperability among ITS. The Secretary has engaged in an 
aggressive campaign to develop standards through consensus-
based method via established standards developing organizations 
(SDOs). However, there is a general concern within industry and 
governmental agencies that those standards that are critical to 
ensuring national and regional interoperability will not be 
completed in a timely fashion. To address this concern, the 
section establishes a process for the Secretary to identify 
critical standards to ensure interoperability, and then sets a 
deadline (January 1, 2001) for the SDO to issue a final 
standard. If the SDO does not meet that deadline, then the 
Secretary can set a temporary, or ``provisional'' standard. The 
provisional standard is immediately replaced by the consensus 
standard when adopted by the SDO. The bill also provides a 
waiver to this process if the Secretary deems it to be 
appropriate.
    In recent correspondence, the JPO identified a list of 21 
standards that it believes is currently critical to ensuring 
interoperability. They include: National Transportation 
Communications for ITS Protocol, CVO Safety and Credentials 
Information, In-Vehicle Navigation and Related Advanced 
Traveler Information System, and Mayday Reporting Interface. 
The JPO also identified a list of eight standards that will be 
critical to achieving interoperability in the future, and a 
list of potential standards that may be relevant more than 2 
years in the future. The JPO also stated that, except for any 
new starts after the beginning of 1999, there are expected to 
be few, if any, critical standards' activities that will extend 
past 2001.
    The section also prohibits the use of Federal funds to 
deploy ITS technologies if they do not comply with the 
provisional or completed standard. This prevents an infusion of 
Federal funds on technologies that are counter to the national 
ITS architecture. However, funds can be used for operation and 
maintenance of existing projects, so that those that have 
already been deployed are not discriminated against; and for 
upgrade or expansion of an existing system if the Secretary 
determines that it meets stated criteria.
            23 U.S.C.Sec. 529. Funding limitations
    This new section includes several limitations on ITS 
funding. (1) It requires that any funds made available under 
this subtitle must be consistent with the national 
architecture. (2) It prohibits the Secretary from funding any 
ITS operational test or deployment that competes with a similar 
privately funded project. (3) It prohibits the used of ITS 
funds for the construction of physical highway and transit 
infrastructure. (4) It limits the funds available for ITS 
outreach, public relations, and training activities.
            23 U.S.C. Sec. 530. Advisory Committees
    This section that the Secretary may use one or more 
advisory committees to carry out ITS activities, but specifies 
that any advisory committee so utilized shall be subject to the 
Federal Advisory Committee Act.

                          Subtitle C--Funding

Sec. 2201. Funding (23 U.S.C. Sec. 541).
    This section provides contract authority for fiscal years 
1998 through 2003 to carry out the Research and Technology 
program, the International Highway Transportation Outreach 
Program, the Infrastructure Investment Needs Report, and the 
study on the Strategic Highway Program. A total of $98,000,000 
is authorized for fiscal year 1998; $101,000,000 for fiscal 
year 1999; $104,000,000 for fiscal year 2000; $107,000,000 for 
fiscal year 2001; $110,000,000 for fiscal year 2002; and 
$114,000,000 in fiscal year 2003. This section also provides an 
equal amount of obligation limitations for funds authorized by 
this section.

                                Hearings

    Prior to the introduction of S. 1173, the Subcommittee on 
Transportation and Infrastructure held seven oversight hearings 
and four field hearings on the reauthorization of the 
Intermodal Surface Transportation Efficiency Act. The full 
Committee on Environment and Public Works held a field hearing 
in Warwick, RI.
    The first hearing was held on February 13, 1997, in 
Washington, DC. The purpose of the first hearing was to receive 
testimony on transportation trends, funding requirements and 
the economic returns from transportation infrastructure 
investment. Testimony was given by Mortimer Downey, Deputy 
Secretary of the U.S. Department of Transportation; Andrew H. 
Card, Jr., president and CEO, American Automobile Manufacturers 
Association; Darrel Resnick, president, American Association of 
State Highway and Transportation Officials; Alan E. Pisarski, 
author of Commuting in America; and Damian Kulash, president 
and CEO, ENO Transportation Foundation Inc.
    The purpose of the second hearing, which was held on 
February 26, 1997, was to receive testimony of the Department 
of Transportation's ISTEA reauthorization proposal and ISTEA 
program performance. Testimony was received by Rodney E. 
Slater, Secretary, U.S. Department of Transportation; William 
D. Fay, president and CEO, American Highway Users Alliance; and 
Hank Dittmar, executive director, Surface Transportation Policy 
Project.
    The third hearing was held on March 6, 1997 in Washington, 
DC. The purpose of the third hearing was to examine innovative 
financing technology, construction and design practices. 
Testimony was received by Representatative Rosa L. De Lauro; 
Mortimer Downey, Deputy Secretary of Transportation, 
accompanied by Jane Garvey, Deputy Federal Highway 
Administrator, and Christine Johnson, Director of the Joint 
Program Office, Intelligent Transportation Systems; Phyllis F. 
Scheinberg, associate director, Transportation and 
Telecommunications Issues, General Accounting Office (GAO), 
accompanied by Joseph Christoff, assistant director, GAO, and 
Yvonne Pufahl, senior evaluator, GAO; Gerald Pfeiffer, senior 
vice president, United Infrastructure Company, Chicago, IL; 
Daniel V. Flanagan, president, The Flanagan Consulting Group, 
Inc.; James Constantino, Ph.D., P.E., president and CEO, ITS 
America; and Robert Skinner, executive director, Transportation 
Research Board.
    The fourth hearing was held on March 13, 1997. The purpose 
of the hearing was to examine program eligibility under ISTEA. 
Testimony was received from Senator William V. Roth Jr.; 
Senator James M. Jeffords; Senator John McCain; Senator Joseph 
R. Biden, Jr.; Michael Huerta, Associate Deputy Secretary of 
Transportation; Leslie White, chairperson, American Public 
Transit Association; Tom M. Downs, chairman, President and 
Chief Executive Officer, Amtrak, National Railroad Passenger 
Corporation; Karen B. Phillips, senior vice president, American 
Association of Railroads; William E. Loftus, president, 
American Short Line Railroad Association; and Thomas Donohue, 
president and CEO, American Trucking Associations.
    The fifth hearing was held on March 19, 1997, and focused 
on environmental programs and statewide and metorpolitan 
planning under ISTEA. Testimony was received from Jane Garvey, 
Acting Federal Highway Administrator; David M. Gardiner, 
Assistant Administrator for Policy, Planning, and Evaluation, 
U.S. Environmental Protection Agency; Thomas Walker, executive 
director, Wisconsin Road Builders Association, on behalf of the 
American Road and Transportation Builders Association; Hal 
Hiemstra, vice president of national policy, Rails to Trails; 
Meg Maguire, president, Scenic America; Hank Dittmar, executive 
director, Surface Transportation Policy Project; Leon Kenison, 
commissioner, New Hampshire Department of Transportation, 
Lawrence D. Dahms, executive director, Metropolitan 
Transportation Commission, San Francisco, CA; M. Michael Cooke, 
chair, Board of County Commissioners, Douglas County, CO; 
Guillermo Vidal, executive director, Colorado Department of 
Transportation; and Timothy S. Stowe, vice president, Anderson 
and Associates, Inc., on behalf of the American Consulting 
Engineers Council.
    The sixth hearing was a field hearing held in Coeur 
d'Alene, ID, on March 22, 1997. The hearing examined rural 
transportation issues in light of the ISTEA reauthorization. 
Testimony was received from Governor Phillip Batt of Idaho; 
Jane Garvey, Acting Federal Highway Administrator; the Idaho 
State Senator Evan Frasure; Idaho State Representative Jim 
Kempton; Jack King, County Commissioner, Shoshone County, 
Idaho; Dwight Bowers, director, Idaho Department of 
Transportation; Marvin Dye, director, Montana Department of 
Transportation; Yvonne Ferrell, director, Idaho Department of 
Parks and Recreation; Michael Kyle, director, National Center 
for Transportation Technologies, University of Idaho, Moscow, 
ID; Steve Albert, director, Western Transportation Institute, 
Bozeman, MT; Basil Barna, manager, Transportation and 
Infrastructure Department, Lockheed Idaho Technologies; Jim 
Mannion, Idaho Division President, AAA Oregon-Idaho, Boise, ID; 
Tom Arnold, Idaho Department of Commerce, Boise, ID; Dave 
Doeringsfeld, port manager, Port of Lewiston, Lewiston, ID; Ron 
McMurray, past president, U.S. Highway 95 Coalition, Lewiston, 
ID; Kermit Kiebert, Association of Idaho Highway Districts, 
Sandpoint, ID; Dave Cook, Regional vice President, Swift 
Transportation Co., Inc., Lewiston, ID; and Carl Schweizer, 
director of government relations, Montana Contractors 
Association, Helena, MT.
    The seventh hearing was a field hearing held in Kansas 
City, MO on March 26, 1997. Testimony on safety issues in the 
context of ISTEA reauthorization was received from Carolyn 
Winkler, private citizen, Huntsville, MO; Mike Right, vice 
president, Public Affairs, American Automobile Association, 
Missouri, St. Louis, MO; Barry Seward, president, Missouri 
Transportation Development Council, Jefferson City, MO; Tom 
Boland, chairman, Missouri Highway and Transportation 
Commission, Hanibal, MO; John J. Wagner, Jr., chairman, Greater 
Kansas City Chamber of Commerce Surface Transportation 
Committee; Richard C.D. Fleming, president and CEO, St. Louis 
Regional Commerce and Growth Association, Kansas City, MO; Don 
Clarkson, Clarkson Construction Company, Kansas City, MO; Peter 
Herschend, Vice Chairman, Silver Dollar City, Inc., Branson, 
MO; Gary Evans, executive vice president and CEO, Farmland 
Industries, Kansas City, MO; Malcomb McCance, existing building 
manager, St. Joseph Chamber of Commerce, St. Joseph, MO; Brian 
Mills, Cass County Commissioner, Northern District, 
Harrisonville, MO; and John Lieber, Deputy Assistant Secretary 
of Transportation Policy, Missouri Department of Transportation 
Policy.
    The eighth hearing was a field hearing held in Las Vegas, 
NV on March 28, 1997. The purpose of the hearing was to examine 
innovative technologies in the context of the ISTEA 
reauthorization. Testimony was received from Governor Robert 
Miller of Nevada; Senator Richard Bryan; Representative John 
Ensign; Representative Jim Gibbons; Yvonne Atkinson Gates, 
Clark County commissioner, Las Vegas, NV; Bruce Woodbury, Clark 
County commissioner, Las Vegas, NV; Celia G. Kupersmith, 
executive director, Reno Regional Transportation Commission, 
Reno, NV; Christine Johnson, director of Intelligent 
Transportation Systems, Joint Program Office, Federal Highway 
Administration; Bob McClellan, general manager, Metropolican 
Transit Authority of Harris County, Houston, TX; Dick Howard, 
director, Intergovernmental Relations, South Dakota Department 
of Transportation, Pierre, SD; Pete Rahn, cabinet secretary, 
New Mexico State Highway And Transportation Department, Santa 
Fe, NM; Deborah Redman, Senior Planner, South California 
Association of Governments, Los Angeles, CA; P.D. Kiser, 
Parsons Transportation, Reno, NV; Steve Teshara, executive 
director, Lake Tahoe Gaming Alliance; Manfred Wackers, 
president, Transrapid International, Washington, DC; Glen 
Schaeffer, president and CEO, Circus Circus Enterprises, Las 
Vegas, NV; and Dick Landis, Director of Transportation 
Programs, Heavy Vehicle Electric License Plate Inc., Las Vegas, 
NV.
    The ninth hearing, which was chaired by the committee 
chairman, Senator John H. Chafee, was held on April 21, 1997 in 
Warwick, RI. Testimony was received from Senator Jack Reed; 
Representative Robert Weygand; Governor Lincoln Almond of Rhode 
Island; Rodney E. Slater, Secretary. U.S. Department of 
Transportation; William Ankner, director, Rhode Island 
Department of Transportation, Providence, RI; Beverly Scott, 
director, Rhode Island Public Transit Authority, Providence, 
RI; Colonel Edmond S. Culhane, Jr., superintendent, Rhode 
Island State Police, Providence, RI; Edward S. Sanderson, 
executive director, Rhode Island Preservationa and Heritage 
Commission, Providence, RI; Barry Schiller, Sierra Club, 
Providence, RI; Dan Baudoin, executive director, Providence 
Foundation, Providence, RI; Kenneth Bianchi, DOT Watch; Curt 
Spalding, executive director, Save the Bay, Providence, RI; and 
James RePass, president and CEO, The Northeast Corridor 
Initiative, Inc.
    The tenth hearing was a field hearing held in New York, NY 
on April 7, 1997. Testimony was received from Governor George 
E. Pataki of New York; Governor Christine Todd Whitman of New 
Jersey; Mayor Rudolph W. Giuliani of New York, NY; Mortimer L. 
Downey, Deputy Secretary, U.S. Department of Transportation; 
Thomas M. Downs, chairman, President and CEO, Amtrak; James 
Sullivan, acting commissioner, Connecticut Department of 
Transportation, Newington, Connecticut; Robert E. Boyle, 
executive director, Port Authority of New York and New Jersey, 
New York, NY; E. Virgil Conway, chairman, Metropolitan 
Transportation Authority, New York, NY; J. William Van Dyke, 
chairman, North Jersey Planning Authority, Inc., Newark, NJ; 
Janine Bauer, executive director, Tri-State Transportation 
Campaign, New York, NY; Robert Kiley, president, New York City 
Partnership and Chamber of Commerce, Inc.; Lew Rudin, Rudin 
Management, New York, NY; Philip Beachem, executive director, 
New Jersey Alliance for Action on ISTEA, Edison, NJ; Ed Cleary, 
president, New York State AFL-CIO; and Raymond Pocino, Regional 
Manager, Laborers International Union of North America, 
Cranbury, NJ.
    The eleventh hearing was held in Washington, DC on May 7, 
1997. The purpose of the hearing was to receive testimony on 
ISTEA and safety issues and programs. Testimony was presented 
by the Senator Richard G. Lugar; Senator Frank R. Lautenberg; 
Senator Mike DeWine; Representative Nita Lowey; Phillip R. 
Recht, Deputy Administrator, National Highway Traffic and 
Safety Administration; Anthony R. Kane, Executive Director, 
Federal Highway Administration, accompanied by George L. 
Reagle, Associate Administrator for Motor Carriers, Federal 
Highway Administration; Richard Crabtree, president and COO, 
Nationwide Mutual Insurance Company representing ADVOCATES for 
Highway and Auto Safety, accompanied by Joan Claybrook, 
president, Public Citizen; Katherine P. Prescott, national 
president, Mothers Against Drunk Drivers; Thomas Donohue, 
president and CEO, American Trucking Associations; James L. 
Kolstad, vice president, American Automobile Association; 
Brenda Berry, board member, CRASH, Woodbridge, VA; Bob 
Bartlett, mayor of Monrovia, CA, representing Southern 
California Association of Governments; Barbara Harsha, 
executive director, representing the National Association of 
Governors' Highway and Safety Representatives; Robert Georgine, 
President, Building and Construction Trades Department, AFL-
CIO; and Edward Wytkind, Executive Director, Transportation 
Trades Department.
    The twelfth hearing was held on June 6, 1997 in Washington, 
DC. The purpose of the hearing was to receive testimony on 
ISTEA and the replacement of the Woodrow Wilson Memorial 
Bridge. Testimony was presented by the Jane Garvey, Acting 
Administrator, Federal Highway Administration; Robert Martinez, 
secretary of transportation, Commonwealth of Virginia; David 
Winstead, secretary of transportation, State of Maryland; 
Kenneth Laden, administrator of the office of policy and 
planning, Department Public Works, District of Columbia; Kerry 
J. Donley, mayor, Alexandria, VA; Katherine K. Hanley, 
chairman, Fairfax County, Virginia, Board of Supervisors; John 
J. Collins, senior vice president, American Trucking 
Associations; Wayne Curry county executive, Prince Georges 
County, Maryland; Susan Williams, chairman, Greater Washington 
Board of Trade; Jonas Neihardt, president, Old Town Alexandria 
Civic Association; Robert Montague, Alexandria Historical 
Restoration and Preservation Commission; Randal Kell, vice 
chairman of government affairs, Alexandria Chamber of Commerce; 
and Mike Lewis, chairman of legislative affairs, Fairfax County 
Chamber of Commerce.

                             Rollcall Votes

      Section 7(b) of rule XXVI of the Standing Rules of the 
Senate and the rules of the Committee on Environment and Public 
Works require that any rollcall votes taken during the 
committee's consideration of a bill be noted in the report.
      The committee met to consider the S. 1173 on September 
17, 1997, and ordered the bill reported, as amended, by a 
rollcall vote of 18-0. The short title of the bill was amended 
to ``Intermodal Surface Transportation Efficiency Act of 
1997.''

                           Regulatory Impact

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee makes the following 
evaluation of the regulatory impact of the reported bill. The 
regulatory impact of the reported bill is expected to be 
minimal. This bill will not have any effect on the personal 
privacy of individuals.
    Other than current regulations and those regulations 
affecting the eligibility and use of funds provided in the 
bill, the only provision having a regulatory impact of 
significance is section 1407, which changes current Federal 
regulations that govern safety standards of supplemental 
restraint systems, commonly known as air bags, installed in 
motor vehicles. This section ensures that the testing standard 
for air bags will be based on the simultaneous use of the air 
bag or supplemental restraint system and a manual seat belt.
    Section 1407 requires that on the date of the enactment of 
this Act, manufacturers of motor vehicles shall be deemed to be 
in compliance with applicable performance standards for 
occupant crash protection if the motor vehicle meets the 
applicable requirements for testing with the simultaneous use 
of both an automatic restraint system and a manual seat belt. 
The Secretary of Transportation is directed to issue revised 
standards that are consistent with this section.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee makes the following 
evaluation of the Federal mandates contained in the reported 
bill.
    S. 1173 imposes no Federal intergovernmental unfunded 
mandates on State, local, or tribal governments. All of the 
bill's governmental directives are imposed on Federal agencies. 
In addition, this bill does not impose any Federal private 
sector mandates. Finally, the reported bill will have no 
discernable effect on the competitive balance between the 
public and private sectors.

                          Cost of Legislation

    Senate Rule XXVI, section 11(b) of the Standing Rules of 
the Senate, and section 403 of the Congressional Budget 
Impoundment and Control Act, require that each committee report 
on a bill contain a statement estimating the cost of the 
proposed legislation, which was prepared by the Congressional 
Budget Office. This statement has been requested from the 
Congressional Budget Office, but it was not available at the 
date of filing this report. When the information is made 
available to the committee, it will be placed in the 
Congressional Record.
                ADDITIONAL VIEWS OF SENATOR CRAIG THOMAS

    S. 1173, the Intermodal Transportation Act, would advance 
the national interest in increasing investment in 
transportation facilities and in making Federal transportation 
programs work more effectively. I commend Senators Chafee, 
Warner and Baucus for reaching across party and State lines to 
craft this compromise legislation.
    In my view, the current ISTEA law was a helpful first step 
toward shaping transportation policy to take this country into 
the next century. It maintained a national commitment to 
transportation, but made some necessary changes to surface 
transportation policies. However, it failed to address 
important issues that will make our transportation program more 
flexible and efficient in order to respond to changing 
transportation needs. This bill, ``ISTEA II,'' makes those 
necessary changes to help us build the roads and bridges of the 
21st Century.

                  INFRASTRUCTURE NEEDS/FUNDING FORMULA

    S. 1173 achieves a funding distribution that is fair and 
based on the national interest. It represents a balance between 
transportation factors and policy and equity considerations. It 
includes factors based on the extent and usage of Federal-aid 
highways, urban concerns such as the Congestion Mitigation and 
Air Quality (CMAQ) program and rural policy factors such as low 
population density. It rightly emphasizes the National Highway 
System (NHS), ensuring that people and goods can be moved 
safely and efficiently across this country. The NHS represents 
the strong Federal interest in making sure the entire nation is 
well connected.
    Wyoming is a ``bridge'' State; goods are transported from 
their source, across Wyoming, and to their final destination. A 
set of efficient and well maintained roads are as important to 
the cities that export goods across the country and around the 
world as they are to the people in Wyoming. The former director 
of the Wyoming Department of Transportation, Don Diller, said 
last year, ``On I-80 in Wyoming, more than 50 percent of the 
traffic is trucks, and those trucks are not serviced in 
Wyoming. The goods are not manufactured in Wyoming, and the 
economy of Wyoming is not improved by their manufacture. The 
goods are not delivered in Wyoming, but add to the economy of 
some other area.''
    Clearly, it is important that this legislation meet 
Wyoming's needs--44 percent of our roads are in fair to poor 
condition. But writing a new formula is also about fairness, in 
fact, my constituents contribute more per capita to the highway 
trust fund than any other State, over $200 per person. 
Appropriately, S. 1173 moves toward bringing these dollars back 
to the State.
    In addition, Wyoming gets only pennies back on the dollar 
it sends to the transit account of the trust fund. I am hopeful 
the transit provisions of ISTEA II address this inequity.

                             FEDERAL LANDS

    I am also concerned about the infrastructure needs in our 
national parks. In fact, the majority of Yellowstone's roads 
are structurally deficient. As one of the crown jewels of the 
national park system and host of more than three million 
visitors annually, this situation is unacceptable. In fact, the 
Park's 10 year plan includes $250 million in road funding 
requirements. However, Yellowstone only receives roughly $8 
million annually to meet these needs. In addition, the National 
Park Service (NPS) faces a $2 billion backlog in road needs 
overall.
    I am pleased that S. 1173 begins to meet these needs with 
the creation of the Cooperative Federal Lands Program. This 
provision will help ensure adequate access to and across 
Federal lands by giving States a more significan role in 
Federal lands highway funding than under present law. In 
addition, the legislation continues funding for the existing 
Federal lands program.
    Clearly, more work needs to be done to help the parks with 
road improvement and maintenance, but I commend the committee 
for taking this first step.

                    STREAMLINING/PROGRAM FLEXIBILITY

    The Intermodal Transportation Act streamlines the five 
major programs into three; the National Highway System (NHS), 
Surface Transportation Program (STP) and the Congestion 
Mitigation and Air Quality (CMAQ) program. This change gives 
State and local governments more flexibility by placing a 
greater percentage of overall funding within their discretion. 
It will also ensure that American taxpayers will get more for 
their fuel tax dollars.
    While providing flexibility to State and local governments, 
the bill also maintains a strong commitment to the interstate 
and bridges. In fact, the S. 1173 will require more to be spent 
on these priorities than is the case under current law.
    Another flexibility issue involves the safety program. My 
State is concerned about the current prohibition on using 
safety set-aside money on the interstate system. In Wyoming, 
one of the most useful safety features on our system is the 
addition of ``rumble strips'' on the shoulders of our 
interstate highways. They are particularly effective on rural 
interstate highways. The use of safety set-aside money for this 
type of work would be ideal and I am pleased this flexibility 
is granted in S. 1173.
    In addition, the legislation brings some needed flexibility 
to the safety program. It requires States to spend 20 percent 
of this money on railway-highway crossing projects, 20 percent 
on hazard elimination projects and the remaining 60 percent may 
be used for either program at State discretion. This 
flexibility will ensure that each State's individual safety 
needs are met.

                     RELIANCE ON PRIVATE ENTERPRISE

    Enactment of S. 1173 will provide billions of dollars in 
funds to Federal and State agencies and other governmental 
organizations. Some of these funds will be used to perform 
inherently governmental functions that only government agencies 
can perform, such as basic research, setting and administering 
standards, safety administration, contract management and 
program management. Much of the money, however, will be used 
for activities that are commercial in nature, to provide goods 
and services that can and should be performed by the private 
sector.
    Section 1125 expresses the opinion of the committee that 
those activities which can be performed by the private sector 
should be performed by the private sector. The funds in the 
bill should not be used by government entities to duplicate or 
compete with the private sector.
    Since 1955, it has been Federal policy that ``the Federal 
Government will not start or carry on any commercial activity 
to provide a service or product for its own use if such product 
or service can be procured from private enterprise through 
ordinary business channels.'' (Office of Management Budget 
Circular A-76).
    This section reaffirms that policy in the transportation 
bill. Whether it is construction, engineering, surveying, 
mapping, aerial photography, paving, maintenance or dozens of 
other activities that go into successful transportation 
programs, there are hundreds of private firms, many of them 
small business, that can do this work at equal or higher 
quality and at lower prices.
               ADDITIONAL VIEWS OF SENATOR JEFF SESSIONS

    We believe that the committee report misrepresents the 
effect of Adarand Constructors, Inc. v. Pena, 115 S.Ct. 2097 
(1995) on the disadvantaged business enterprise (DBE) program. 
Adarand involved the same (DBE) program that this legislation 
seeks to continue. In Adarand, the Court ruled that all 
government racial classifications are subject to the strictest 
judicial scrutiny. The Court held that ``Federal racial 
classifications, like those of a State, must serve a compelling 
governmental interest and must be narrowly tailored to further 
that interest.'' (Id. at 2118.)
    The report is technically correct when it states that the 
Supreme Court did not strike down the DBE program in Adarand. 
The Court did not uphold the DBE program, either. The report is 
misleading because the Court in Adarand remanded the case to 
allow the lower court to develop the factual record. (Id. at 
2118). As Justice Scalia noted in concurrence, ``[i]t is 
unlikely, if not impossible, that the challenged program would 
survive under this understanding of strict scrutiny, but I am 
content to leave that to be decided on remand.'' (Id. at 2118-
2119.)
    Not surprisingly, on remand, the Federal district court 
ruled on summary judgment that the (DBE) program was 
unconstitutional. Adarand Constructors, Inc. v. Pena, 965 
F.Supp. 1556 (1997). Leaving no doubt concerning the 
constitutionality of this program, the court stated that ``I 
find it difficult to envisage a race-based classification that 
is narrowly tailored. By its very nature, such program is both 
underinclusive and overinclusive.'' (Id. 1580.) The court also 
enjoined the defendants from administering Sec. 1003(b) of 
ISTEA.
    Moreover, other recent Supreme Court cases such as Bush v. 
Vera, 116 S.Ct. 1941 (1996), Miller v. Johnson, 115 S.Ct. 2475 
(1995), Shaw v. Reno, 509 U.S. 630 (1993), and Richmond v. J.A. 
Croson Co., 488 U.S. 469 (1989), have subjected government 
racial preferences and classifications to the strictest 
scrutiny. In each case, the racial classification was ruled 
unconstitutional.
    Section 1111 simply reenacts without change the same 
statutory language that was invalidated in Adarand 
Constructors, Inc. v. Pena. As a consequence, nothing in this 
reenactment does anything to strengthen the argument that this 
section is constitutional. This committee held no hearings 
examining the constitutionality of this provision or 
establishing the need for such a provision.
    The committee report suggests that the new regulations 
promulgated by the Department of Transportation somehow 
strengthen the case for the constitutionality of this 
provision. Putting to one side the very real question whether 
subsequent regulations can provide narrow tailoring that is 
lacking in a statute, I am at a loss as to the report's 
conclusions. We did not hear any testimony concerning the 
constitutionality of this section or the regulations 
promulgated pursuant to its identically-worded predecessor.
    In conclusion, I have no doubt but that this section is 
unconstitutional. This section is neither supported by a 
compelling government interest, nor narrowly tailored. 
Therefore, I urged the committee to reconsider this provision.
          ADDITIONAL VIEWS OF SENATOR DANIEL PATRICK MOYNIHAN

    When we crafted the Intermodal Surface Transportation 
Efficiency Act of 1991, we declared that, as a matter of 
policy, the era of Interstate Highway construction was over. We 
set about writing a bill to take us to the next era of national 
transportation policy. In ISTEA, we streamlined existing 
programs, granted States considerable flexibility with regard 
to the use of funds, incorporated municipalities and 
environmental interstes in transportation planning and 
decision-making, and promoted intermodalism. We acknowledged, 
for the first time, the devastating impact the Federal highway 
program had on our inner cities and took steps to repair some 
of the damage.
    I am especially proud of the principles we set out in ISTEA 
6 years ago and wish to include them in this bill.
    ``It is the policy of the United States to develop a 
National Intermodal Transportation System that is economically 
efficient and environmentally sound, provides the foundation 
for the Nation to compete in the global economy, and will move 
people and goods in an energy efficient manner.
    ``The National Intermodal Transportation System shall 
consist of all forms of transportation in a unified, 
interconnected manner, including the transportation systems of 
the future, to reduce energy consumption and air pollution 
while promoting economic development and supporting the 
Nation's preeminent position in international commerce.
    ``The National Intermodal Transportation System shall 
include a National Highway System which consists of the 
National System of Interstate and Defense Highways and those 
principal arterial roads which are essential for interstate and 
regional commerce and travel national defense, intermodal 
transfer facilities, and international commerce and border 
crossings.
    ``The National Intermodal Transportation System shall 
include significant improvements in public transportation 
necessary to achieve national goals for improved air quality, 
energy conservation, international competitiveness, and 
mobility for elderly persons, persons with disabilities, and 
economically disadvantaged persons in urban and rural areas of 
the country.
    ``The National Intermodal Transportation System shall 
provide improved access to ports and airports, the Nation's 
link to world commerce.
    ``The National Intermodal Transportation System shall give 
special emphasis to the contributions of the transportation 
sectors to increased productivity growth. Social benefits must 
be considered with particular attention to the external 
benefits of reduced air pollution, reduced traffic congestion 
and other aspects of the quality of life in the United States.
    ``The National Intermodal Transportation System must be 
operated and maintained with insistent attention to the 
concepts of innovation, competition, energy efficiency, 
productivity, growth, and accountability. Practices that 
resulted in the lengthy and overly costly construction of the 
Interstate and Defense Highway System must be confronted and 
ceased.
    ``The National Intermodal Transportation System shall be 
adapted to ``intelligent vehicles'', ``magnetic levitation 
systems'', and other new technologies wherever feasible and 
economical, with benefit cost estimates given special emphasis 
concerning safety considerations and techniques for cost 
allocation.
    ``The National Intermodal Transportation System, where 
appropriate, will be financed, as regards Federal 
apportionments and reimbursements, by the Highway Trust Fund. 
Financial assistance will be provided to State and local 
governments and their instrumentalities to help implement 
national goals relating to mobility for elderly persons, 
persons with disabilities, and economically disadvantaged 
persons.
    ``The National Intermodal Transportation System must be the 
centerpiece of a national investment commitment to create the 
new wealth of the Nation for the 21st century.
    ``The Secretary shall distribute copies of this Declaration 
of Policy to each employee of the Department of Transportation 
and shall ensure that such Declaration of Policy is posted in 
all offices of the Department of Transportation.''
            ADDITIONAL VIEWS OF SENATOR FRANK R. LAUTENBERG

    As a cosponsor of the Intermodal Surface Transportation 
Efficiency Act of 1991, I am pleased that this bill generally 
holds to the structure of ISTEA and aims to continue the thrust 
of the 1991 Act, in ensuring that our Nation's transportation 
infrastructure system is developed in an economically efficient 
and environmentally sound manner. I am pleased that the bill 
includes the programs that benefit the environment, and that 
move forward on important programs such as Intelligent 
Transportation Systems. However, I am disappointed that the 
bill eliminates the national focus on bridges, does not 
adequately address infrastructure needs, and unfairly 
shortchanges certain States.
    The 1991 ISTEA launched a new era of transportation 
investment that reached out to incorporate nontraditional 
interests and views in transportation planning and 
construction. ISTEA brought new thinking into transportation 
planning that has benefitted the entire country. ISTEA's bold 
policy statement is one that still has resonance today. I 
encourage everyone to re-read that statement and consider 
whether the bill before us this session meets those goals and 
fully addresses both today's and tomorrow's transportation 
needs.
    While this bill attempts to embrace ISTEA's policy 
statement, I must express serious disappointment with how 
funding is distributed among the States. This bill does not 
treat States fairly. Instead, this bill shortchanges the 
transportation needs of 96 million people in the 15 States. 
Simply put, the bill does not balance the needs among the 
States, and certainly does not meet the transportation needs 
that exist in some States. And, in that respect, it fails all 
Americans.
    The funding authorization for the next 6 years of highway 
spending will increase by 20 percent over the funding 
authorized in ISTEA. With this significant funding increase, no 
State should have to endure a cut in transportation spending 
over the previous fiscal year, and every State should share in 
the program's significant growth. I am disappointed that the 
bill fails to meet this basic test of sound policy and 
fairness.
    Many of the States left out of the scheme are those with 
aging, heavily used infrastructure. Many of these States serve 
as heavily used corridors, transporting goods that benefit not 
just those States, but the entire country. And those are the 
States with some of the greatest needs.
    For instance, the roadways that run from Pennsylvania 
through Ohio, Indiana and Illinois make up one of the busiest 
trucking corridors in the United States. Yet every one of those 
States, except Indiana, is slated to lose under this bill. Have 
we considered the consequences of cutting these States, despite 
their obvious future needs?
    Also, 14 cities that are ranked among the top 50 for 
traffic congestion are in States that do not benefit from the 
increase in the program. Think of the millions of productive 
hours wasted and the millions of gallons of gasoline 
squandered. Isn't it in our national interest to do something 
about situations like these?
    Consider my State of New Jersey. Densely populated, with 
aging, weathered infrastructure, New Jersey's roads, bridges 
and ports are among the most heavily used in the nation. There 
are more vehicles on New Jersey's roads than any other State.
    New Jersey is one of the most critical links in the 
Nation's transportation system. New Jersey is a corridor State, 
linking commerce and travel to the Northeast and the rest of 
the country. Over 60 billion vehicle miles are traveled on the 
State's roads annually. Ten percent of the Nation's total 
freight either originates, terminates or passes through New 
Jersey, and almost 60 percent of this tonnage is strictly 
through-traffic. Goods traveling just 24 hours on a truck from 
New Jersey will reach a market of 40 percent of the populations 
of the United States and Canada--over 100 million people.
    Travelers in both cars and trucks struggle with New 
Jersey's congestion and with its heavily used roads and bridges 
that need a high level of maintenance. The status of New 
Jersey's transportation infrastructure has a direct effect on 
the State and region's economic vitality and on every 
resident's quality of life. According to a recent study by the 
Transportation Construction Coalition, congestion and roads 
that are not repaired cost motorists $74.7 billion in lost 
time, wasted fuel and extra vehicle operating costs.
    A long-term national transportation bill should allocate 
funding based on usage and should reflect the needs and costs 
of repair for each State. I am sorry to say that this bill does 
not do that.
    I voted to report this bill from committee after 
significant consideration was given to New Jersey's 
transportation needs. However, I am not yet satisfied. I hope 
and expect that when this bill is signed into law, it will have 
been revised to adequately fund States that were shortchanged.
                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: existing law as proposed to 
be omitted is enclosed between [bold brackets]; new matter 
proposed to be added to existing law is printed in italic; and 
existing law in which no change is proposed is shown in roman.

                      TITLE 23--UNITED STATES CODE

                                HIGHWAYS

Chap.                                                               Sec.
    1. Federal-Aid Highways.......................................   101
    2. Other Highways.............................................   201
    3. General Provisions.........................................   301
    4. Highway Safety.............................................   401
    5. Research and Technology....................................   501

                     CHAPTER 1--FEDERAL-AID HIGHWAYS

Sec.

101. [Definitions and declaration of policy.] Definitions.
102. [Program efficiencies.] Declaration of policy.
103. Federal-aid systems.
104. Apportionment.
105. [Programs.] Minimum guarantee.
106. Plans, specifications, and estimates.
107. Acquisition of rights-of-way--Interstate System.
108. Advance acquisition of [rights-of-way] real property.
109. Standards.
110. [Project agreements] Repealed.
111. Agreements relating to use of and access to rights-of-way--
          Interstate System.
112. Letting of contracts.
113. Prevailing rate of wage.
114. Construction.
115. Advance construction.
116. [Maintenance] Project approval and oversight.
117. [Certification acceptance] [Repealed]
118. Availability of funds.
119. Interstate maintenance program.
120. Federal share payable.
121. Payment to States for construction.
122. Payments to States for bond and other debt instrument financing.
123. Relocation of utility facilities.
124. Advances to States.
125. Emergency relief.
126. [Diversion.] [Repealed]
127. Vehicle weight limitations--Interstate System.
128. Public hearings.
129. Toll roads, bridges, tunnels, and ferries.
130. Railway-highway crossings.
131. Control of outdoor advertising.
132. Payments on Federal-aid projects undertaken by a Federal agency.
133. Surface transportation program.
134. [Transportation planning in certain urban centers.] Metropolitan 
          planning.
135. Statewide planning.
136. Control of junkyards.
137. Fringe and corridor parking facilities.
138. Preservation of parklands.
139. [Additions to Interstate System.] [Repealed]
140. Nondiscrimination.
141. Enforcement of requirements.
142. Public transportation.
143. [Economic growth center development highways.] Highway use tax 
          evasion projects.
144. Highway bridge replacement and rehabilitation [program].
145. Federal-State relationship.
146. Carpool and vanpool projects.
147. [Priority primary routes.] [Repealed]
148. [Development of a national scenic and recreational highway.] 
          [Repealed]
149. Congestion mitigation and air quality improvement program.
150.[ Allocation of urban system funds.] [Repealed]
151. National bridge inspection program.
152. Hazard elimination program.
153. Use of safety belts and motorcycle helmets.
155. [Access highways to public recreation areas on certain lakes.] 
          [Repealed]
156. [Income from airspace rights-of-way] Proceeds from the sale or 
          lease of real property.
157. [Minimum allocation.] [Repealed]
158. National minimum drinking age.
159. Revocation or suspension of drivers' licenses of individuals 
          convicted of drug offenses.
160. Reimbursement for segments of the Interstate System constructed 
          without Federal assistance.
161. Operation of motor vehicles by intoxicated minors.
162. State infrastructure bank program.
163. Minimum penalties for repeat offenders for driving while 
          intoxicated or driving under the influence.
164. Safety incentive grants for use of seat belts.
165. National scenic byways program.

Sec. 101. [Definitions and declaration of policy] Definitions

    [(a)] As used in this title, unless the context requires 
otherwise--
    The term ``apportionment'' in accordance with section 104 
of this title includes unexpended apportionments made under 
prior acts.
    The term ``carpool project'' means any project to encourage 
the use of carpools and vanpools, including but not limited to 
provision of carpooling opportunities to the elderly and 
handicapped, systems for locating potential riders and 
informing them of carpool opportunities, acquiring vehicles for 
carpool use, designating existing highway lanes as preferential 
carpool highway lanes, providing related traffic control 
devices, and designating existing facilities for use for 
preferential parking for carpools.
    The term ``construction'' means the supervising, 
inspecting, actual building, and all expenses incidental to the 
construction or reconstruction of a highway, including bond 
costs and other costs relating to the issuance in accordance 
with section 122 of bonds or other debt financing instruments, 
locating, surveying, and mapping (including the establishment 
of temporary and permanent geodetic markers in accordance with 
specifications of the National Oceanic and Atmospheric 
Administration in the Department of Commerce), resurfacing, 
restoration, and rehabilitation, acquisition of rights-of-way, 
relocation assistance, elimination of hazards of railway grade 
crossings, elimination of roadside obstacles, acquisition of 
replacement housing sites, acquisition and rehabilitation, 
relocation, and construction of replacement housing, and 
improvements which directly facilitate and control traffic 
flow, such as grade separation of intersections, widening of 
lanes, channelization of traffic, traffic control systems, and 
passenger loading and unloading areas. The term also includes 
capital improvements which directly facilitate an effective 
vehicle weight enforcement program, such as scales (fixed and 
portable), scale pits, scale installation, and scale houses and 
also includes costs incurred by the State in performing 
Federal-aid project related audits which directly benefit the 
Federal-aid highway program.
    The term ``county'' includes corresponding units of 
government under any other name in States which do not have 
county organizations, and likewise in those States in which the 
county government does not have jurisdiction over highways it 
may be construed to mean any local government unit vested with 
jurisdiction over local highways.
    The term ``Federal-aid highway funds'' means funds made 
available to carry out the Federal-aid highway program.
    The term ``Federal-aid highway program'' means all programs 
authorized under chapters 1, 3, and 5.
    The term ``Federal-aid highways'' means highways eligible 
for assistance under this chapter other than highways 
classified as local roads or rural minor collectors.
    The term ``Federal-aid system'' means any one of the 
Federal-aid highway systems described in section 103 of this 
title.
    The term ``Federal lands highways'' means forest highways, 
public lands highways, park roads, parkways, and Indian 
reservation roads which are public roads.
    [The term ``forest road or trail'' means a road or trail 
wholly or partly within, or adjacent to, and serving the 
National Forest system and which is necessary for the 
protection, administration, and utilization of the National 
Forest system and the use and development of its resources.]
    The term ``forest development roads and trails'' means a 
forest road or trail under the jurisdiction of the Forest 
Service.
    The term ``forest highway'' means a forest road under the 
jurisdiction of, and maintained by, a public authority and open 
to public travel.
    The term ``forest road or trail'' means a road or trail 
wholly or partly within, or adjacent to, and serving the 
National Forest system and which is necessary for the 
protection, administration, and utilization of the National 
Forest system and the use and development of its resources.
    The term ``highway'' includes roads, streets, and parkways, 
and also includes rights-of-way, bridges, railroad-highway 
crossings, tunnels, drainage structures, signs, guardrails, and 
protective structures, in connection with highways. It further 
includes that portion of any interstate or international bridge 
or tunnel and the approaches thereto, the cost of which is 
assumed by a [State highway department]State transportation 
department including such facilities as may be required by the 
United States Customs and Immigration Services in connection 
with the operation of an international bridge or tunnel.
    [The term ``Federal-aid highways'' means highways eligible 
for assistance under this chapter other than highways 
classified as local roads or rural minor collectors.]
    [The term ``[highway safety] safety improvement project'' 
means a project which corrects or improves high hazard 
locations, eliminates roadside obstacles, improves highway 
signing and pavement marking, installs priority control systems 
for emergency vehicles at signalized intersections, installs or 
replaces emergency motorist aid call boxes, or installs traffic 
control or warning devices at high accident potential 
locations.]
    The term ``Indian reservation roads'' means public roads 
that are located within or provide access to an Indian 
reservation or Indian trust land or restricted Indian land 
which is not subject to fee title alienation without the 
approval of the Federal Government, or Indian and Alaska Native 
villages, groups, or communities in which Indians and Alaskan 
Natives reside, whom the Secretary of the Interior has 
determined are eligible for services generally available to 
Indians under Federal laws specifically applicable to Indians.
    The term ``Interstate System'' means the Dwight D. 
Eisenhower National System of Interstate and Defense Highways 
described in subsection [(e) of section 103 of this title] 
section 103(c).
    The term ``maintenance'' means the preservation of the 
entire highway, including surface, shoulders, roadsides, 
structures, and such traffic-control devices as are necessary 
for its safe and efficient utilization.
    The term ``maintenance area'' means an area that was 
designated as a nonattainment area, but was later redesignated 
by the Administrator of the Environmental Protection Agency as 
an attainment area, under section 107(d) of the Clean Air Act 
(42 U.S.C. 7407(d)).
    The term ``National Highway System'' means the Federal-aid 
highway system described in subsection (b) of section 103 of 
this title.
    The term ``operating costs for traffic monitoring, 
management, and control'' includes labor costs, administrative 
costs, costs of utilities and rent, and other costs associated 
with the continuous operation of traffic control, such as 
integrated traffic control systems, incident management 
programs, and traffic control centers.
    [The term ``operational improvement'' means a capital 
improvement for installation of traffic surveillance and 
control equipment, computerized signal systems, motorist 
information systems, integrated traffic control systems, 
incident management programs, and transportation demand 
management facilities, strategies, and programs and such other 
capital improvements to public roads as the Secretary may 
designate, by regulation; except that such term does not 
include resurfacing, restoring, or rehabilitating improvements, 
construction of additional lanes, interchanges, and grade 
separations, and construction of a new facility on a new 
location.]
    The term ``operational improvement'' means the 
installation, operation, or maintenance, in accordance with 
subchapter II of chapter 5, of public infrastructure to support 
intelligent transportation systems and includes the 
installation or operation of any traffic management activity, 
communication system, or roadway weather information and 
prediction system, and any other improvement that the Secretary 
may designate that enhances roadway safety and mobility during 
adverse weather.
    The term ``park road'' means a public road, including a 
bridge built primarily for pedestrian use, but with capacity 
for use by emergency vehicles, that is located within, or 
provides access to, an area in the national park system with 
title and maintenance responsibilities vested in the United 
States.
    The term ``parkway'' as used in chapter 2 of this title, 
means a parkway authorized by an Act of Congress on lands to 
which title is vested in the United States.
    The term ``project'' means an undertaking to construct a 
particular portion of a highway, or if the context so implies, 
the particular portion of a highway so constructed or any other 
undertaking eligible for assistance under this title.
    The term ``project agreement'' means the formal instrument 
to be executed by the [State highway department]State 
transportation department and the Secretary as required by [the 
provisions of subsection (a) of section 110 of this title] 
section 106.
    The term ``public lands highway'' means a forest road under 
the jurisdiction of and maintained by a public authority and 
open to public travel or any highway through unappropriated or 
unreserved public lands, nontaxable Indian lands, or other 
Federal reservations under the jurisdiction of and maintained 
by a public authority and open to public travel.
    The term ``public lands development roads and trails'' 
means those roads or trails which the Secretary of the Interior 
determines are of primary importance for the development, 
protection, administration, and utilization of public lands and 
resources under his control.
    The term ``public lands highways'' means those main 
highways through unappropriated or unreserved public lands, 
nontaxable Indian lands, or other Federal reservations, which 
are on the Federal-aid systems.
    The term ``public authority'' means a Federal, State, 
county, town, or township, Indian tribe, municipal or other 
local government or instrumentality with authority to finance, 
build, operate, or maintain toll or toll-free facilities.
    The term ``public road'' means any road or street under the 
jurisdiction of and maintained by a public authority and open 
to public travel.
    The term ``rural areas'' means all areas of a State not 
included in urban areas.
    The term ``[highway safety] safety improvement project'' 
means a project which corrects or improves high hazard 
locations, eliminates roadside obstacles, improves highway 
signing and pavement marking, installs priority control systems 
for emergency vehicles at signalized intersections, installs or 
replaces emergency motorist aid call boxes, or installs traffic 
control or warning devices at high accident potential 
locations.
    The term ``Secretary'' means Secretary of Transportation.
    The term ``State'' means any one of the fifty States, the 
District of Columbia, or Puerto Rico.
    The term ``State funds'' includes funds raised under the 
authority of the State or any political or other subdivision 
thereof, and made available for expenditure under the direct 
control of the [State highway department]State transportation 
department.
    The term ``[State highway department]State transportation 
department'' means that department, commission, board, or 
official of any State charged by its laws with the 
responsibility for highway construction.
    The term ``transportation enhancement activities'' means, 
with respect to any project or the area to be served by the 
project, provision of facilities for pedestrians and bicycles, 
acquisition of scenic easements and scenic or historic sites, 
scenic or historic highway programs, landscaping and other 
scenic beautification, historic preservation, rehabilitation 
and operation of historic transportation buildings, structures, 
or facilities (including historic railroad facilities and 
canals), preservation of abandoned railway corridors (including 
the conversion and use thereof for pedestrian or bicycle 
trails), control and removal of outdoor advertising, 
archaeological planning and research, and mitigation of water 
pollution due to highway runoff.
    The term ``urban area'' means an urbanized area or, in the 
case of an urbanized area encompassing more than one State that 
part of the urbanized area in each such State, or urban place 
as designated by the Bureau of the Census having a population 
of five thousand or more and not within any urbanized area, 
within boundaries to be fixed by responsible State and local 
officials in cooperation with each other, subject to approval 
by the Secretary. Such boundaries shall, as a minimum, 
encompass the entire urban place designated by the Bureau of 
the Census, except in the case of cities in the State of Maine 
and in the State of New Hampshire.
    The term ``urbanized area'' means an area with a population 
of 50,000 or more designated by the Bureau of the Census, 
within boundaries to be fixed by responsible State and local 
officials in cooperation with each other, subject to approval 
by the Secretary. Boundaries shall, at a minimum, encompass the 
entire urbanized area within a State as designated by the 
Bureau of the Census.
    [The term ``State'' means any one of the fifty States, the 
District of Columbia, or Puerto Rico.]
    [The term ``State funds'' includes funds raised under the 
authority of the State or any political or other subdivision 
thereof, and made available for expenditure under the direct 
control of the [State highway department]State transportation 
department.]
    [The term ``[State highway department]State transportation 
department'' means that department, commission, board, or 
official of any State charged by its laws with the 
responsibility for highway construction.]
    [The term ``Federal-aid system'' means any one of the 
Federal-aid highway systems described in section 103 of this 
title.]
    [The term ``National Highway System'' means the Federal-aid 
highway system described in subsection (b) of section 103 of 
this title.]
    [The term ``Interstate System'' means the Dwight D. 
Eisenhower National System of Interstate and Defense Highways 
described in subsection (e) of section 103 of this title.]
    [The term ``operating costs for traffic monitoring, 
management, and control'' includes labor costs, administrative 
costs, costs of utilities and rent, and other costs associated 
with the continuous operation of traffic control, such as 
integrated traffic control systems, incident management 
programs, and traffic control centers.]
    [The term ``carpool project'' means any project to 
encourage the use of carpools and vanpools, including but not 
limited to provision of carpooling opportunities to the elderly 
and handicapped, systems for locating potential riders and 
informing them of carpool opportunities, acquiring vehicles for 
carpool use, designating existing highway lanes as preferential 
carpool highway lanes, providing related traffic control 
devices, and designating existing facilities for use for 
preferential parking for carpools.]
    [The term ``public authority'' means a Federal, State, 
county, town, or township, Indian tribe, municipal or other 
local government or instrumentality with authority to finance, 
build, operate, or maintain toll or toll-free facilities.]
    [The term ``public lands highway'' means a forest road 
under the jurisdiction of and maintained by a public authority 
and open to public travel or any highway through unappropriated 
or unreserved public lands, nontaxable Indian lands, or other 
Federal reservations under the jurisdiction of and maintained 
by a public authority and open to public travel.]
    [The term ``operational improvement'' means a capital 
improvement for installation of traffic surveillance and 
control equipment, computerized signal systems, motorist 
information systems, integrated traffic control systems, 
incident management programs, and transportation demand 
management facilities, strategies, and programs and such other 
capital improvements to public roads as the Secretary may 
designate, by regulation; except that such term does not 
include resurfacing, restoring, or rehabilitating improvements, 
construction of additional lanes, interchanges, and grade 
separations, and construction of a new facility on a new 
location.]
    [The term ``urban area'' means an urbanized area or, in the 
case of an urbanized area encompassing more than one State that 
part of the urbanized area in each such State, or urban place 
as designated by the Bureau of the Census having a population 
of five thousand or more and not within any urbanized area, 
within boundaries to be fixed by responsible State and local 
officials in cooperation with each other, subject to approval 
by the Secretary. Such boundaries shall, as a minimum, 
encompass the entire urban place designated by the Bureau of 
the Census, except in the case of cities in the State of Maine 
and in the State of New Hampshire.]
    [The term ``transportation enhancement activities'' means, 
with respect to any project or the area to be served by the 
project, provision of facilities for pedestrians and bicycles, 
acquisition of scenic easements and scenic or historic sites, 
scenic or historic highway programs, landscaping and other 
scenic beautification, historic preservation, rehabilitation 
and operation of historic transportation buildings, structures, 
or facilities (including historic railroad facilities and 
canals), preservation of abandoned railway corridors (including 
the conversion and use thereof for pedestrian or bicycle 
trails), control and removal of outdoor advertising, 
archaeological planning and research, and mitigation of water 
pollution due to highway runoff.]
    [(b) It is hereby declared to be in the national interest 
to accelerate the construction of the Federal-aid highway 
systems, including the National System of Interstate and 
Defense Highways, since many of such highways, or portions 
thereof, are in fact inadequate to meet the needs of local and 
interstate commerce, for the national and civil defense.
    [It is hereby declared that the prompt and early completion 
of the National System of Interstate and Defense Highways, so 
named because of its primary importance to the national defense 
and hereafter referred to as the ``Interstate System'', is 
essential to the national interest and is one of the most 
important objectives of this Act. It is the intent of Congress 
that the Interstate System be completed as nearly as 
practicable over the period of availability of the forty years' 
appropriations authorized for the purpose of expediting its 
construction, reconstruction, or improvement, inclusive of 
necessary tunnels and bridges, through the fiscal year ending 
September 30, 1996, under section 108(b) of the Federal-Aid 
Highway Act of 1956 (70 Stat. 374), and that the entire system 
in all States be brought to simultaneous completion. Insofar as 
possible in consonance with this objective, existing highways 
located on an interstate route shall be used to the extent that 
such use is practicable, suitable, and feasible, it being the 
intent that local needs, to the extent practicable, suitable, 
and feasible, shall be given equal consideration with the needs 
of interstate commerce.
    It is further declared that since the Interstate System is 
now in the final phase of completion it shall be the national 
policy that increased emphasis be placed on the construction 
and reconstruction of the other Federal-aid systems in 
accordance with the first paragraph of this subsection, in 
order to bring all of the Federal-aid systems up to standards 
and to increase the safety of these systems to the maximum 
extent.

Sec. 102. [Program efficiencies] Declaration of policy

    [[(a)] (c) HOV Passenger Requirements.--A [State highway 
department]State transportation department shall establish the 
occupancy requirements of vehicles operating in high occupancy 
vehicle lanes; except that no fewer than 2 occupants per 
vehicle may be required and, subject to section 163 of the 
Surface Transportation Assistance Act of 1982, motorcycles and 
bicycles shall not be considered single occupant vehicles.]
    [(c)] \1\ (a) It is the sense of Congress that under 
existing law no part of any sums authorized to be appropriated 
for expenditure upon any Federal-aid system which has been 
apportioned pursuant to the provisions of this title shall be 
impounded or withheld from obligation, for purposes and 
projects as provided in this title, by any officer or employee 
in the executive branch of the Federal Government, except such 
specific sums as may be determined by the Secretary of the 
Treasury, after consultation with the Secretary of 
Transportation, are necessary to be withheld from obligation 
for specific periods of time to assure that sufficient amounts 
will be available in the Highway Trust Fund to defray the 
expenditures which will be required to be made from such fund.
---------------------------------------------------------------------------
    \1\ Subparagraphs (a)-(c) were moved from old Section 101 and 
renamed.
---------------------------------------------------------------------------
    [(d)] (b) No funds authorized to be appropriated from the 
Highway Trust Fund shall be expended by or on behalf of any 
Federal department, agency, or instrumentality other than the 
Federal Highway Administration unless funds for such 
expenditure are identified and included as a line item in an 
appropriation Act and are to meet obligations of the United 
States heretofore or hereafter incurred under this title 
attributable to [the construction of Federal-aid highways or 
highway planning, research, or development] Federal-aid highway 
program, or as otherwise specifically authorized to be 
appropriated from the Highway Trust Fund by Federal-aid highway 
legislation.
    [(e)] (c) It is the national policy that to the maximum 
extent possible the procedures to be utilized by the Secretary 
and all other affected heads of Federal departments, agencies, 
and instrumentalities for carrying out this title and any other 
provision of law relating to the Federal highway programs shall 
encourage the substantial minimization of paperwork and 
interagency decision procedures and the best use of available 
manpower and funds so as to prevent needless duplication and 
unnecessary delays at all levels of government.

[Sec. 103. Federal-aid systems

    [(a) In General.--For purposes of this title, the Federal-
aid systems are the Interstate System and the National Highway 
System.
    [(b) National Highway System.--
            [(1) Purpose.--The purpose of the National Highway 
        System is to provide an interconnected system of 
        principal arterial routes which will serve major 
        population centers, international border crossings, 
        ports, airports, public transportation facilities, and 
        other intermodal transportation facilities and other 
        major travel destinations; meet national defense 
        requirements; and serve interstate and interregional 
        travel.
            [(2) Components.--The National Highway System shall 
        consist of the following:
                    [(A) Highways designated as part of the 
                Interstate System under subsection (e) and 
                section 139 of this title.
                    [(B) Other urban and rural principal 
                arterials and highways (including toll 
                facilities) which provide motor vehicle access 
                between such an arterial and a major port, 
                airport, public transportation facility, or 
                other intermodal transportation facility. The 
                States, in cooperation with local and regional 
                officials, shall propose to the Secretary 
                arterials and highways for designation to the 
                National Highway System under this paragraph. 
                In urbanized areas, the local officials shall 
                act through the metropolitan planning 
                organizations designated for such areas under 
                section 134 of this title. The routes on the 
                National Highway System, as shown on the map 
                submitted by the Secretary to the Committee on 
                Public Works and Transportation of the House of 
                Representatives and the Committee on 
                Environment and Public Works of the Senate in 
                1991, illustrating the National Highway System, 
                shall serve as the basis for the States in 
                proposing arterials and highways for 
                designation to such system. The Secretary may 
                modify or revise such proposals and submit such 
                modified or revised proposals to Congress for 
                approval in accordance with paragraph (3).
                    [(C) A strategic highway network which is a 
                network of highways which are important to the 
                United States strategic defense policy and 
                which provide defense access, continuity, and 
                emergency capabilities for the movement of 
                personnel, materiels, and equipment in both 
                peace time and war time. Such highways may 
                include highways on and off the Interstate 
                System and shall be designated by the Secretary 
                in consultation with appropriate Federal 
                agencies and the States and be subject to 
                approval by Congress in accordance with 
                paragraph (3).
                    [(D) Major strategic highway network 
                connectors which are highways that provide 
                motor vehicle access between major military 
                installations and highways which are part of 
                the strategic highway network. Such highways 
                shall be designated by the Secretary in 
                consultation with appropriate Federal agencies 
                and the States and subject to approval by 
                Congress in accordance with paragraph (3).
            [(3) Approval of designations.--
                    [(A) Proposed designations.--Not later than 
                2 years after the date of the enactment of this 
                section, the Secretary shall submit for 
                approval to the Committee on Environment and 
                Public Works of the Senate and the Committee on 
                Public Works and Transportation of the House of 
                Representatives a proposed National Highway 
                System with a list and description of highways 
                proposed to be designated to the National 
                Highway System under this subsection and a map 
                showing such proposed designations. In 
                preparing the proposed system, the Secretary 
                shall consult appropriate local officials and 
                shall use the functional reclassification of 
                roads and streets carried out under subsection 
                (c) of section 1006 of the Intermodal Surface 
                Transportation Efficiency Act of 1991.
                    [(B) Approval of congress required.--After 
                September 30, 1995, no funds made available for 
                carrying out this title may be apportioned for 
                the National Highway System or the Interstate 
                maintenance program under this title unless a 
                law has been approved designating the National 
                Highway System.
                    [(C) Maximum mileage.--The mileage of 
                highways on the National Highway System shall 
                not exceed 155,000 miles; except that the 
                Secretary may increase or decrease such maximum 
                mileage by not to exceed 15 percent.
                    [(D) Equitable allocations of highway 
                mileage.--The Secretary shall provide for 
                equitable allocation of highway mileage on the 
                National Highway System among the States.
            [(4) Interim system.--For fiscal years 1992, 1993, 
        1994, and 1995, highways classified as principal 
        arterials by the States shall be treated as being on 
        the National Highway System for purposes of this title.
            [(5) Designation of nhs.--The National Highway 
        System as submitted by the Secretary of Transportation 
        on the map entitled ``Official Submission, National 
        Highway System, Federal Highway Administration'', and 
        dated November 13, 1995, is hereby designated within 
        the United States, including the District of Columbia 
        and the Commonwealth of Puerto Rico.]

Sec. 103. Federal-aid systems

    (a) In General.--For the purposes of this title, the 
Federal-aid systems are the Interstate System and the National 
Highway System.
    (b) National Highway System.--
            (1) Description.--The National Highway System 
        consists of an interconnected system of major routes 
        and connectors that--
                    (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.
            (2) Components.--The National Highway System 
        consists of the following:
                    (A) The Interstate System described in 
                subsection (c).
                    (B) Other urban and rural principal 
                arterial routes.
                    (C) Other connector highways (including 
                toll facilities) that provide motor vehicle 
                access between arterial routes on the National 
                Highway System and a major intermodal 
                transportation facility.
                    (D) A strategic highway network consisting 
                of a network of highways that are important to 
                the United States strategic defense policy and 
                that provide defense access, continuity, and 
                emergency capabilities for the movement of 
                personnel, materials, and equipment in both 
                peacetime and wartime. The highways may be 
                highways on or off the Interstate System and 
                shall be designated by the Secretary in 
                consultation with appropriate Federal agencies 
                and the States.
                    (E) Major strategic highway network 
                connectors consisting of highways that provide 
                motor vehicle access between major military 
                installations and highways that are part of the 
                strategic highway network. The highways shall 
                be designated by the Secretary in consultation 
                with appropriate Federal agencies and the 
                States.
            (3) Maximum mileage.--The mileage of highways on 
        the National Highway System shall not exceed 178,250 
        miles.
            (4) 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 or that is proposed by a 
                State and revised by the Secretary if the 
                Secretary determines that the modification--
                            (i) meets the criteria established 
                        for the National Highway System under 
                        this title; 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.
            (5) Eligible projects for nhs.--Subject to approval 
        by the Secretary, funds apportioned to a State under 
        section 104(b)(1)(C) for the National Highway System 
        may be obligated for any of the following:
                    (A) Construction, reconstruction, 
                resurfacing, restoration, and rehabilitation of 
                segments of the National Highway System.
                    (B) Operational improvements for segments 
                of the National Highway System.
                    (C) Construction of, and operational 
                improvements for, a Federal-aid highway not on 
                the National Highway System, construction of a 
                transit project eligible for assistance under 
                chapter 53 of title 49, and capital 
                improvements to any National Railroad Passenger 
                Corporation passenger rail line or any 
                publicly-owned intercity passenger rail line, 
                if--
                            (i) the highway, transit, or rail 
                        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 improve the level of 
                        service 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 
                        than an improvement to the fully 
                        access-controlled highway described in 
                        clause (i).
                    (D) Highway safety improvements for 
                segments of the National Highway System.
                    (E) Transportation planning in accordance 
                with sections 134 and 135.
                    (F) Highway research and planning in 
                accordance with chapter 5.
                    (G) Highway-related technology transfer 
                activities.
                    (H) Capital and operating costs for traffic 
                monitoring, management, and control facilities 
                and programs.
                    (I) Fringe and corridor parking facilities.
                    (J) Carpool and vanpool projects.
                    (K) Bicycle transportation and pedestrian 
                walkways in accordance with section 217.
                    (L) Development, establishment, and 
                implementation of management systems under 
                section 303.
                    (M) In accordance with all applicable 
                Federal law (including regulations), 
                participation in natural habitat and wetland 
                mitigation efforts related to projects funded 
                under this title, which may include 
                participation in natural habitat and wetland 
                mitigation banks, contributions to statewide 
                and regional efforts to conserve, restore, 
                enhance, and create natural habitats and 
                wetland, and development of statewide and 
                regional natural habitat and wetland 
                conservation and mitigation plans, including 
                any such banks, efforts, and plans authorized 
                under the Water Resources Development Act of 
                1990 (Public Law 101-640) (including crediting 
                provisions). Contributions to the mitigation 
                efforts described in the preceding sentence may 
                take place concurrent with or in advance of 
                project construction, except that contributions 
                in advance of project construction may occur 
                only if the efforts are consistent with all 
                applicable requirements of Federal law 
                (including regulations) and State 
                transportation planning processes.
                    (N) Publicly-owned intracity or intercity 
                passenger rail or bus terminals, including 
                terminals of the National Railroad Passenger 
                Corporation and publicly-owned intermodal 
                surface freight transfer facilities, other than 
                seaports and airports, if the terminals and 
                facilities are located on or adjacent to 
                National Highway System routes or connections 
                to the National Highway System selected in 
                accordance with paragraph (2).
                    (O) Infrastructure-based intelligent 
                transportation systems capital improvements.
                    (P) In the Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern 
                Mariana Islands, any project eligible for 
                funding under section 133, any airport, and any 
                seaport.
                    (Q) Publicly owned components of magnetic 
                levitation transportation systems.
                    (R) Construction of ferry boats and ferry 
                terminal facilities, if the conditions 
                described in section 129(c) are met.
            [(6) Modifications to nhs.--
                    [(A) In general.--Subject to paragraph (7), 
                the Secretary may make modifications to the 
                National Highway System that are proposed by a 
                State or that are proposed by the State and 
                revised by the Secretary if the Secretary 
                determines that each of the modifications--
                            (i) meets the criteria established 
                        for the National Highway System under 
                        this title; and
                            [(ii) enhances the national 
                        transportation characteristics of the 
                        National Highway System.
                    [(B) Cooperation.--In proposing 
                modifications under this paragraph, a State 
                shall cooperate with local and regional 
                officials. In urbanized areas, the local 
                officials shall act through the metropolitan 
                planning organizations designated for such 
                areas under section 134.
            [(7) Transitional rules for intermodal 
        connectors.--
                    [(A) Required submission.--Not later than 
                180 days after the date of the enactment of the 
                National Highway System Designation Act of 
                1995, the Secretary shall submit for approval 
                to the Committee on Environment and Public 
                Works of the Senate and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives modifications to the 
                National Highway System that are proposed by a 
                State or that are proposed by the State and 
                revised by the Secretary and that consist of 
                connectors to major ports, airports, 
                international border crossings, public 
                transportation and transit facilities, 
                interstate bus terminals, and rail and other 
                intermodal transportation facilities.
                    [(B) Cooperation.--Paragraph (6)(B) shall 
                apply to modifications proposed by a State 
                under this paragraph.
                    [(C) Eligibility.--
                            [(i) Initial approval by law.--
                        Modifications proposed under 
                        subparagraph (A) may take effect only 
                        if a law has been enacted approving 
                        such modifications.
                            [(ii) Interim eligibility.--
                        Notwithstanding clause (i), a project 
                        to construct a connector to an 
                        intermodal transportation facility 
                        described in subparagraph (A) shall be 
                        eligible for funds apportioned under 
                        section 104(b)(1) for the National 
                        Highway System if the Secretary finds 
                        that the project is consistent with 
                        criteria developed by the Secretary for 
                        construction of such connectors.
                            [(iii) Period of eligibility.--A 
                        project which is eligible under clause 
                        (ii) for funds apportioned under 
                        section 104(b)(1) shall remain eligible 
                        for such funds pursuant to clause (ii) 
                        only until the date of the enactment of 
                        a law described in clause (i).
                    [(D) Modifications after initial 
                approval.--After the date of the enactment of a 
                law described in subparagraph (C)(i), a 
                modification consisting of a connector to an 
                intermodal transportation facility described in 
                subparagraph (A) may be made in accordance with 
                paragraph (6).
            [(8) Congressional high priority corridors.--Upon 
        the completion of feasibility studies, the Secretary 
        shall add to the National Highway System any 
        congressional high priority corridor or any segment 
        thereof established by section 1105 of the Intermodal 
        Surface Transportation Efficiency Act of 1991 (105 
        Stat. 2031-2037) which was not identified on the 
        National Highway System designated by paragraph (5).
      [Subsections (c) and (d) repealed by section 1006(b)(1) 
of P.L. 102-240, 105 Stat. 1925]
    (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--
                            (i) designed--
                                    (I) in accordance with the 
                                standards of section 109(b); or
                                    (II) in the case of 
                                highways in Alaska and Puerto 
                                Rico, 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; 
                                and
                            (ii) 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.
                    (B) Selection of routes.--To the maximum 
                extent practicable, each route of the 
                Interstate System shall be selected by joint 
                action of the State transportation agencies 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.--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), 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 of states.--
                        A designation under clause (i) shall be 
                        made only upon the written agreement of 
                        the State or States described in that 
                        clause that the highway will be 
                        constructed to meet all standards of a 
                        highway on the Interstate System by the 
                        date that is 12 years after the date of 
                        the agreement.
                            (iii) Removal of designation.--
                                    (I) In general.--If the 
                                State or States described in 
                                clause (i) have not 
                                substantially completed the 
                                construction of a highway 
                                designated under this 
                                subparagraph within the time 
                                provided for in the agreement 
                                between the Secretary and the 
                                State or States under clause 
                                (ii), the Secretary shall 
                                remove the designation of the 
                                highway as a future Interstate 
                                System route.
                                    (II) Effect of removal.--
                                Removal of the designation of a 
                                highway under subclause (I) 
                                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.
                            (iv) Prohibition on referral as 
                        interstate system route.--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, 
                        nor shall any such highway be signed or 
                        marked, as a highway on the Interstate 
                        System until such time as the highway 
                        is constructed to the geometric and 
                        construction standards for the 
                        Interstate System and has been 
                        designated as a route on the Interstate 
                        System.
                    (C) Financial responsibility.--
                            (i) In general.--Except as provided 
                        in clause (ii), the designation of a 
                        highway under this paragraph shall 
                        create no additional Federal financial 
                        responsibility with respect to the 
                        highway.
                            (ii) Certain highways.--Subject to 
                        section 119(b)(1)(B), a State may use 
                        funds available to the State under 
                        paragraphs (1) and (3) of section 
                        104(b) for the resurfacing, 
                        restoration, rehabilitation, and 
                        reconstruction of a highway--
                                    (I) designated before March 
                                9, 1984, as a route on the 
                                Interstate System under 
                                subparagraph (A) or as a future 
                                Interstate System route under 
                                subparagraph (B); or
                                    (II) designated under 
                                subparagraph (A) and located in 
                                Alaska or Puerto Rico.
    (d) Transfer of Interstate Construction Funds.--
            (1) Interstate construction funds not in surplus.--
                    (A) In general.--Upon application by a 
                State and approval by the Secretary, the 
                Secretary may transfer to the apportionment of 
                the State under section 104(b)(1) any amount of 
                funds apportioned to the State under section 
                104(b)(5)(A) (as in effect on the day before 
                the date of enactment of the Intermodal Surface 
                Transportation Efficiency Act of 1997), if the 
                amount does not exceed the Federal share of the 
                costs of construction of segments of the 
                Interstate System in the State included in the 
                most recent Interstate System cost estimate.
                    (B) Effect of transfer.--Upon transfer of 
                an amount under subparagraph (A), the 
                construction on which the amount is based, as 
                included in the most recent Interstate System 
                cost estimate, shall be ineligible for funding 
                under section 104(b)(5)(A) (as in effect on the 
                day before the date of enactment of the 
                Intermodal Surface Transportation Efficiency 
                Act of 1997) or 104(k).
            (2) Surplus interstate construction funds.--Upon 
        application by a State and approval by the Secretary, 
        the Secretary may transfer to the apportionment of the 
        State under section 104(b)(1) any amount of surplus 
        funds apportioned to the State under section 
        104(b)(5)(A) (as in effect on the day before the date 
        of enactment of the Intermodal Surface Transportation 
        Efficiency Act of 1997), if the State has fully 
        financed all work eligible under the most recent 
        Interstate System cost estimate.
            (3) Applicability of certain laws.--Funds 
        transferred under this subsection shall be subject to 
        the laws (including regulations, policies, and 
        procedures) relating to the apportionment to which the 
        funds are transferred.
    (e) Unobligated Balances of Interstate Substitute Funds.--
Unobligated balances of funds apportioned to a State under 
section 103(e)(4)(H) (as in effect on the day before the date 
of enactment of the Intermodal Surface Transportation 
Efficiency Act of 1997) shall be available for obligation by 
the State under the law (including regulations, policies, and 
procedures) relating to the obligation and expenditure of the 
funds in effect on that date.
      (e) Interstate System.--
            (1) Designation; mileage limitation.--The 
        Interstate System shall be designated within the United 
        States, including the District of Columbia, and, except 
        as provided in paragraphs (2) and (3) of this 
        subsection, it shall not exceed forty-one thousand 
        miles in total extent. It shall be so located as to 
        connect by routes, as direct as practicable, the 
        principal metropolitan areas, cities, and industrial 
        centers, to serve the national defense, and to the 
        greatest extent possible, to connect at suitable border 
        points with routes of continental importance in the 
        Dominion of Canada and the Republic of Mexico. The 
        routes of this system, to the greatest extent possible, 
        shall be selected by joint action of the [State highway 
        departments]State transportation departments of its 
        State and the adjoining States, subject to the approval 
        by the Secretary as provided in subsection (f) of this 
        section. All highways or routes included in the 
        Interstate System as finally approved, if not already 
        coincident with the primary system, shall be added to 
        said system without regard to the mileage limitation 
        set forth in subsection (b) of this section. This 
        system may be located both in rural and urban areas.
            (2) Modifications.--In addition to the mileage 
        authorized by the first sentence of paragraph (1) of 
        this subsection, there is hereby authorized additional 
        mileage for the Interstate System of five hundred 
        miles, to be used in making modifications or revisions 
        in the Interstate System as provided in this paragraph. 
        Upon the request of a [State highway department]State 
        transportation department the Secretary may withdraw 
        his approval of any route or portion thereof on the 
        Interstate System within that State selected and 
        approved in accordance with this title, if he 
        determines that such route or portion thereof is not 
        essential to completion of a unified and connected 
        Interstate System (including urban routes necessary for 
        metropolitan transportation) and will not be 
        constructed as a part of the Interstate System, and if 
        he receives assurances that the State does not intend 
        to construct a toll road in the traffic corridor which 
        would be served by such route or portion thereof. After 
        the Secretary has withdrawn his approval of any such 
        route or portion thereof the mileage of such route or 
        portion thereof and the additional mileage authorized 
        by the first sentence of this paragraph shall be 
        available for the designation of interstate routes or 
        portions thereof as provided in this subsection. The 
        provisions of this title applicable to the Interstate 
        System shall apply to all mileage designated under the 
        third sentence of this paragraph. The Secretary shall 
        not designate any Interstate route or portion thereof 
        under authority of this paragraph after the date of 
        enactment of the Federal Aid Highway Act of 1978.
            (3) Additional mileage for improved efficiency.--In 
        addition to the mileage authorized by paragraphs (1) 
        and (2) of this subsection, there is hereby authorized 
        additional mileage of not to exceed 1,500 miles for the 
        designation of routes in the same manner as set forth 
        in paragraph (1), in order to improve the efficiency 
        and service of the Interstate System to better 
        accomplish the purposes of that System.
            (4) Interstate substitute program.--
                    (A) Withdrawal of approval.--Upon the joint 
                request of a State Governor and the local 
                governments concerned, the Secretary may 
                withdraw approval of any route or portion 
                thereof on the Interstate System which was 
                selected and approved in accordance with this 
                title, if the Secretary determines that such 
                route or portion thereof is not essential to 
                completion of a unified and connected 
                Interstate System and if the Secretary receives 
                assurances that the State does not intend to 
                construct a toll road in the traffic corridor 
                which would be served by the route or portion 
                thereof.
                    (B) Substitute projects.--When the 
                Secretary withdraws approval under this 
                paragraph, a sum equal to the Federal share of 
                the cost to complete the withdrawn route or 
                portion thereof, as that cost is included in 
                the latest Interstate System cost estimate 
                approved by Congress, or up to and including 
                the 1983 interstate cost estimate, whichever is 
                earlier, subject to increase or decrease, as 
                determined by the Secretary based on changes in 
                construction costs of the withdrawn route or 
                portion thereof as of the date of approval of 
                each substitute project under this paragraph, 
                or the date of approval of the 1983 interstate 
                cost estimate, whichever is earlier, shall be 
                available to the Secretary to incur obligations 
                for the Federal share of either public mass 
                transit projects involving the construction of 
                fixed rail facilities or the purchase of 
                passenger equipment including rolling stock, 
                for any mode of mass transit, or both, or 
                highway construction projects on any public 
                road, or both, which will serve the area or 
                areas from which the interstate route or 
                portion thereof was withdrawn, which are 
                selected by the responsible local officials of 
                the area or areas to be served, and which are 
                selected by the Governor or the Governors of 
                the State or the States in which the withdrawn 
                route was located if the withdrawn route was 
                not within an urbanized area or did not pass 
                through and connect urbanized areas, and which 
                are submitted by the Governors of the States in 
                which the withdrawn route was located. Each 
                project constructed under this paragraph on a 
                Federal-aid system shall be subject to the 
                provisions of this title applicable to such 
                system. Each project constructed under this 
                paragraph not on a Federal-aid system shall be 
                subject to the provisions of this title 
                applicable to projects on the Federal-aid 
                secondary system.
                    (C) Deadline for withdrawal.--The Secretary 
                shall not approve any withdrawal of a route 
                under this paragraph after September 30, 1983--
                            (i) except that with respect to any 
                        route which on November 6, 1978, is 
                        under judicial injunction prohibiting 
                        its construction the Secretary may 
                        approve withdrawals until September 30, 
                        1986, and
                            (ii) except that with respect to 
                        any route which on May 12, 1982, is 
                        under judicial injunction prohibiting 
                        its construction, the Secretary may 
                        approve withdrawals on such route until 
                        September 30, 1985.
                    (D) Project approval; federal share.--
                Approval by the Secretary of the plans, 
                specifications, and estimates for a substitute 
                project shall be deemed to be a contractual 
                obligation of the Federal Government. The 
                Federal share of each substitute project shall 
                not exceed 85 percent of the cost thereof.
                    (E) Availability of funds for substitute 
                projects.--
                            (i) Time period.--The sums 
                        apportioned and the sums allocated 
                        under this paragraph for public mass 
                        transit projects and for highway 
                        construction projects in a State shall 
                        remain available for obligation in such 
                        State for the fiscal year for which 
                        apportioned or allocated, as the case 
                        may be, and for the succeeding fiscal 
                        year. In the case of funds authorized 
                        to be appropriated for substitute 
                        transit projects under this paragraph 
                        for fiscal year 1993 and for substitute 
                        highway projects under this paragraph 
                        for fiscal year 1995, such funds shall 
                        remain available until expended.
                            (ii) Reapportionment or 
                        reallocation.--Any sums which are 
                        apportioned or allocated to a State and 
                        are unobligated (other than an amount 
                        which, by itself, is insufficient to 
                        pay the Federal share of the cost of a 
                        substitute project which has been 
                        submitted by the State to the Secretary 
                        for approval) at the end of the period 
                        of availability established by clause 
                        (i) shall be apportioned or allocated, 
                        as the case may be, among those States 
                        which have obligated all sums (other 
                        than such an amount) apportioned or 
                        allocated, as the case may be, to them. 
                        Such reapportionments shall be in 
                        accordance with the latest approved or 
                        adjusted estimate of the cost of 
                        completing substitute projects, and 
                        such reallocations shall be at the 
                        discretion of the Secretary.
                    (F) Administration of transit funds.--The 
                sums obligated for mass transit projects under 
                this paragraph shall become part of, and be 
                administered through, the Urban Mass 
                Transportation Fund.
                    (G) Authorization of appropriations for 
                highway projects.--For the fiscal year ending 
                September 30, 1983, $257,000,000 shall be 
                available out of the Highway Trust Fund for 
                expenditure at the discretion of the Secretary 
                for projects under highway assistance programs. 
                There shall be available, out of the Highway 
                Trust Fund (other than the Mass Transit 
                Account), to the Secretary for expenditure 
                under this paragraph for projects under highway 
                assistance programs $700,000,000 per fiscal 
                year for each of fiscal years 1984 and 1985, 
                $693,825,000 for fiscal year 1986, $740,000,000 
                per fiscal year for each of fiscal years 1987, 
                1988, 1989, 1990, and 1991, $240,000,000 per 
                fiscal year for each of fiscal years 1992, 
                1993, 1994, and 1995. Such sums may be 
                obligated for transit substitute projects under 
                this paragraph.
                    (H) Distribution of substitute highway 
                funds.--
                            (i) Between discretionary and 
                        apportioned programs.--Subject to 
                        section 149(d) of the Federal-Aid 
                        Highway Act of 1987, 25 percent of the 
                        funds made available by subparagraph 
                        (G) for each of fiscal years 1984, 
                        1985, 1986, 1987, 1988, 1989, 1990, and 
                        1991 for substitute highway projects 
                        under this paragraph shall be 
                        distributed at the discretion of the 
                        Secretary. The remaining 75 percent of 
                        such funds shall be apportioned in 
                        accordance with cost estimates approved 
                        by Congress or adjusted by the 
                        Secretary. For each of fiscal years 
                        1992, 1993, 1994, and 1995, all funds 
                        made available by subparagraph (G) 
                        shall be apportioned in accordance with 
                        cost estimates adjusted by the 
                        Secretary.
                            (ii) Fiscal years 1985, 1986, and 
                        1987 apportionments.--The Secretary 
                        shall make a revised estimate of the 
                        cost of completing substitute highway 
                        projects under this paragraph and 
                        transmit the same to the Senate and the 
                        House of Representatives within 10 days 
                        subsequent to January 2, 1984, and upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute highway 
                        projects for fiscal years 1985, 1986, 
                        and 1987.
                            (iii) Fiscal years 1988-1995 
                        apportionments.--The Secretary shall 
                        make a revised estimate of the cost of 
                        completing substitute highway projects 
                        under this paragraph and transmit the 
                        same to the Senate and the House of 
                        Representatives as soon as practicable 
                        after the date of the enactment of the 
                        Federal-Aid Highway Act of 1987. Upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute highway 
                        projects for fiscal year 1988. If such 
                        estimate is not approved by Congress by 
                        September 30, 1987, the Secretary shall 
                        adjust such estimate in accordance with 
                        this clause and use the Federal share 
                        of the adjusted estimate in making 
                        apportionments for fiscal year 1988. 
                        The Secretary shall adjust such 
                        estimate annually thereafter in 
                        accordance with this clause and shall 
                        use the Federal share of such adjusted 
                        estimate in making apportionments for 
                        substitute highway projects for fiscal 
                        years 1989, 1990, 1991, 1992, 1993, 
                        1994, and 1995. The adjustments 
                        required by this clause shall reflect 
                        previous withdrawals of interstate 
                        segments, changes in State estimates in 
                        the division of funds between 
                        substitute highway and transit 
                        projects, amounts made available in 
                        prior fiscal years, and the 
                        availability and reapportionment of 
                        funds under subparagraph (E).
                    (I) Authorization of appropriations for 
                transit projects.--There are authorized to be 
                appropriated for liquidation of obligations 
                incurred for substitute transit projects under 
                this paragraph the sums provided in section 
                4(g) of the Urban Mass Transportation Act of 
                1964.
                    (J) Distribution of substitute transit 
                funds.--
                            (i) Between discretionary and 
                        apportioned programs.--Fifty percent of 
                        the funds appropriated for each fiscal 
                        year beginning after September 30, 
                        1983, and ending before October 1, 1991 
                        \1\ for carrying out substitute transit 
                        projects under this paragraph shall be 
                        distributed at the discretion of the 
                        Secretary. The remaining 50 percent of 
                        such funds shall be apportioned in 
                        accordance with cost estimates approved 
                        by Congress or adjusted by the 
                        Secretary. 100 percent of funds 
                        appropriated for each of fiscal years 
                        1992 and 1993 shall be apportioned in 
                        accordance with cost estimates adjusted 
                        by the Secretary.
---------------------------------------------------------------------------
    \1\ So in law. Section 1011(b)(1) of P.L. 102-240, added ``and 
ending before October 1, 1991'' after ``1983,''. The inserted material 
probably should have ended with a comma.
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                            (ii) Fiscal years 1985, 1986, and 
                        1987 apportionments.--The Secretary 
                        shall make a revised estimate of the 
                        cost of completing substitute transit 
                        projects under this paragraph and 
                        transmit the same to the Senate and the 
                        House of Representatives within 10 days 
                        subsequent to January 2, 1984, and upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute transit 
                        projects for fiscal years 1985, 1986, 
                        and 1987.
                            (iii) Fiscal years 1988-1993 
                        apportionments.--The Secretary shall 
                        make a revised estimate of the cost of 
                        completing substitute transit projects 
                        under this paragraph and transmit the 
                        same to the Senate and the House of 
                        Representatives as soon as practicable 
                        after the date of the enactment of the 
                        Federal-Aid Highway Act of 1987. Upon 
                        approval by Congress, the Secretary 
                        shall use the Federal share of such 
                        approved estimate in making 
                        apportionments for substitute transit 
                        projects for fiscal year 1988. If such 
                        estimate is not approved by Congress by 
                        September 30, 1987, the Secretary shall 
                        adjust such estimate in accordance with 
                        this clause and use the Federal share 
                        of the adjusted estimate in making 
                        apportionments for fiscal year 1988. 
                        The Secretary shall adjust such 
                        estimate annually thereafter in 
                        accordance with this clause and shall 
                        use the Federal share of such adjusted 
                        estimate in making apportionments for 
                        substitute transit projects for fiscal 
                        years 1989, 1990, 1991, 1992, and 1993. 
                        The adjustments required by this clause 
                        shall reflect previous withdrawals of 
                        Interstate segments, changes in State 
                        estimates in the division of funds 
                        between substitute highway and transit 
                        projects, amounts made available in 
                        prior fiscal years, and the 
                        availability and reapportionment of 
                        funds under subparagraph (E).
                    (K) Reduction of interstate 
                apportionment.--
                            (i) In general.--Unobligated 
                        apportionments for the Interstate 
                        System in any State where a withdrawal 
                        is approved under this paragraph shall, 
                        on the date of such approval, be 
                        reduced in the proportion that the 
                        Federal share of the cost of the 
                        withdrawn route or portion thereof 
                        bears to the Federal share of the total 
                        cost of all interstate routes in that 
                        State as reflected in the latest cost 
                        estimate approved by the Congress.
                            (ii) Exception.--In any State where 
                        the withdrawal of an interstate route 
                        or portion thereof has been approved 
                        under this section prior to the date of 
                        the enactment of the Federal-Aid 
                        Highway Act of 1976, the unobligated 
                        apportionments for the Interstate 
                        System in that State on such date of 
                        enactment shall be reduced in the 
                        proportion that the Federal share of 
                        the cost to complete such route or 
                        portion thereof, as shown in the latest 
                        cost estimate approved by Congress 
                        prior to such approval of withdrawal, 
                        bears to the Federal share of the cost 
                        of all interstate routes in that State, 
                        as shown in such cost estimate; except 
                        that the amount of such proportional 
                        reduction shall be credited with the 
                        amount of any reduction in such State's 
                        Interstate apportionment which was 
                        attributable to the Federal share of 
                        any substitute project approved under 
                        this paragraph before such date of 
                        enactment.
                    (L) Applicability of chapter 53 of title 
                49.--
                            (i) Supplementary funds.--Funds 
                        available for expenditure to carry out 
                        the purposes of this paragraph shall be 
                        supplementary to and not in 
                        substitution for funds authorized and 
                        available for obligation pursuant to 
                        chapter 53 of title 49.
                            (ii) Labor protection.--The 
                        provisions of section 5323(a)(1)(D) of 
                        title 49 shall apply in carrying out 
                        this paragraph.
                    (M) Limitation on interstate 
                designations.--After the date of the enactment 
                of the Federal-Aid Highway Act of 1978, the 
                Secretary may not designate any mileage as part 
                of the Interstate System pursuant to this 
                paragraph or under any other provision of law. 
                The preceding sentence shall not apply to a 
                designation made under section 139 of this 
                title.
                    (N) Open to traffic requirement.--After 
                September 30, 1979, the Secretary shall not 
                withdraw his approval under this paragraph of 
                any route or portion thereof on the Interstate 
                System open to traffic before the date of the 
                proposed withdrawal. Any withdrawal of approval 
                of any such route or portion thereof before 
                September 30, 1979, is hereby determined to be 
                authorized by this paragraph.
                    (O) Limitation on substitution for 
                statutorily designated routes.--Any route or 
                segment which was statutorily designated after 
                March 7, 1978, to be on the Interstate System 
                shall not be eligible for withdrawal or 
                substitution under this subsection.
                    (P) Right-of-way payback.--
                            (i) Enforcement.--Of sums 
                        apportioned or allocated under this 
                        paragraph to a State, the Secretary 
                        shall not obligate for projects in such 
                        State an amount equal to the amount of 
                        Federal funds expended to purchase the 
                        right-of-way for any withdrawn route or 
                        portion thereof if the right-of-way is 
                        not first disposed of (or applied to a 
                        project in accordance with paragraph 
                        (5)(B), (6)(B), or (7)) by the State.
                            (ii) Limitation on applicability.--
                        Clause (i) shall not apply to sums 
                        apportioned or allocated under this 
                        paragraph to a State for a fiscal year 
                        if the projected total amount of funds 
                        to be apportioned and allocated under 
                        this paragraph to such State in 
                        succeeding fiscal years exceeds the 
                        amount of Federal funds expended to 
                        purchase the right-of-way.
                            (iii) Release of funds.--The 
                        Secretary may obligate for projects in 
                        a State under this paragraph any funds 
                        withheld from obligation in such State 
                        if the State repays an equivalent 
                        amount in accordance with paragraph 
                        (5)(B), (6)(B), or (7), as the case may 
                        be, or if the Secretary determines that 
                        such repayment is not required under 
                        such paragraph.
            (5) Limitation on refunds for withdrawals before 
        november 6, 1978.--Notwithstanding any other provision 
        of law, in the case of any withdrawal of approval 
        before November 6, 1978--
                    (A) upon the withdrawal of approval of any 
                route or portion thereof on the Interstate 
                System under this section, a State, subject to 
                the approval of the Secretary, shall not be 
                required to refund to the Highway Trust Fund 
                any sums paid to the State for intangible 
                costs;
                    (B) refund will not be required for the 
                costs of construction items, materials, or 
                rights-of-way of the withdrawn route or portion 
                of the Interstate System which will be or have 
                been applied (i) to a transportation project 
                permissible under this title, (ii) to a public 
                conservation or public recreation purpose, or 
                (iii) to such other public purpose as may be 
                determined by the Secretary to be in the public 
                interest on condition that the State shall make 
                assurances satisfactory to the Secretary that 
                such construction items or materials or rights-
                of-way have been or will be so applied by the 
                State of any political subdivision thereof to a 
                project under clause (i), (ii), or (iii) within 
                10 years from the date of the withdrawal of 
                approval.
            (6) Limitation on refunds for withdrawals on and 
        after november 6, 1978.--Notwithstanding any other 
        provision of law--
                    (A) in the case of any withdrawal of 
                approval on or after November 6, 1978, of a 
                route or portion thereof on the Interstate 
                System, a State, subject to the approval of the 
                Secretary, shall not be required to refund to 
                the Highway Trust Fund any sums paid to the 
                State for intangible costs;
                    (B) in the case of any withdrawal of 
                approval on or after November 6, 1978, of any 
                route or portion thereof on the Interstate 
                System under this section, a State shall not be 
                required to refund to the Highway Trust Fund 
                the costs of construction items, materials, or 
                rights-of-way of the withdrawn route or portion 
                thereof if such items, materials, and rights-
                of-way were acquired before November 6, 1978, 
                if by the date of withdrawal of approval the 
                Secretary has not approved the environmental 
                impact statement required by the National 
                Environmental Policy Act of 1969, and if such 
                construction items, materials, or rights-of-way 
                will be or have been applied (i) to a 
                transportation project permissible under this 
                title, (ii) to a public conservation or public 
                recreation purpose, or (iii) to any other 
                public purpose determined by the Secretary to 
                be in the public interest on condition that the 
                State gives assurances satisfactory to the 
                Secretary that such construction items, 
                materials, or rights-of-way have been or will 
                be so applied by the State, or any political 
                subdivision thereof, to a project under clause 
                (i), (ii), or (iii) within ten years from the 
                date of withdrawal of approval.
            (7) Additional limitation on refunds.--In any case 
        where a withdrawal of approval of a route or portion 
        thereof on the Interstate System on or after November 
        6, 1978, does not come within the provisions of 
        paragraph (6)(B) of this subsection, the State shall 
        refund to the Highway Trust Fund the costs of 
        construction items, materials, and rights-of-way of the 
        withdrawn route or portion thereof, except if the State 
        gives assurances satisfactory to the Secretary that 
        such items, materials, and rights-of-way have been or 
        will be applied to a transportation project permissible 
        under this title within ten years from the date of 
        withdrawal of approval, the amount of such repayment 
        shall be the difference between the amount received for 
        such items, materials, and rights-of-way and the amount 
        which would be received in accordance with the current 
        Federal share applicable to the transportation project 
        to which such items, materials, and rights-of-way were 
        or are to be applied.
            (8) Protection of property rights.--Nothing in this 
        subsection shall in any way alter rights under State 
        law of persons owning property within the right-of-way 
        immediately prior to such property being obtained by 
        the State. The Federal share of the cost of property 
        sold or otherwise transferred to previous owners under 
        State law shall be refunded and credited to the 
        unobligated balance of the State's apportionment for 
        interstate highways.
            (9) Limitation on funding of modified mileage 
        projects.--Interstate mileage authorized for any State 
        and withdrawn and transferred under the provisions of 
        paragraph (2) of this subsection after the date of 
        enactment of the Federal-Aid Highway Act of 1976, must 
        be constructed by the State receiving such mileage as 
        part of its Interstate System. Any State receiving such 
        transfer of mileage may not, with respect to that 
        transfer, avail itself of the optional use of 
        Interstate funds under the second sentence of paragraph 
        (4) of this subsection.
    (f) The Secretary shall have authority to approve in whole 
or in part the Interstate System, as and when such systems or 
portions thereof are designated, or to require modifications or 
revisions thereof.
    (g) The Secretary, on July 1, 1974, shall remove from 
designation as a part of the Interstate System each segment of 
such system for which a State has not notified the Secretary 
that such State intends to construct such segment, and which 
the Secretary finds is not essential to completion of a unified 
and connected Interstate System. Any segment of the Interstate 
System, with respect to which a State has not submitted by July 
1, 1975, a schedule for the expenditure of funds for completion 
of construction of such segment or alternative segment within 
the period of availability of funds authorized to be 
appropriated for completion of the Interstate System, and with 
respect to which the State has not provided the Secretary with 
assurances satisfactory to him that such schedule will be met, 
shall be removed from designation, as a part of the Interstate 
System. No segment of the Interstate System removed under the 
authority of the preceding sentence shall thereafter be 
designated as a part of the Interstate System except as the 
Secretary finds necessary in the interest of national defense 
or for other reasons of national interest. This subsection 
shall not be applicable to any segment of the Interstate System 
referred to in section 23(a) of the Federal-Aid Highway Act of 
1968.
    (h) Notwithstanding subsections (e)(2) and (g) of this 
section, in any case where a segment of the Interstate System 
was a designated part of such System on June 1, 1973, and is 
entirely within the boundaries of an incorporated city and such 
city enters into an agreement with the Secretary to pay all 
non-Federal costs of construction of such segment, such segment 
shall be constructed.
    (i) Eligible Projects for NHS.--Subject to project approval 
by the Secretary, funds apportioned to a State under section 
104(b)(1) for the National Highway System may be obligated for 
any of the following:
            (1) Construction, reconstruction, resurfacing, 
        restoration, and rehabilitation of segments of such 
        system.
            (2) Operational improvements for segments of such 
        system.
            (3) Construction 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--
                    (A) if such highway or transit project is 
                in the same corridor as, and in proximity to, a 
                fully access controlled highway designated to 
                the National Highway System;
                    (B) if the construction or improvements 
                will improve the level of service on the fully 
                access controlled highway and improve regional 
                travel; and
                    (C) if the construction or improvements are 
                more cost effective than an improvement to the 
                fully access controlled highway that has 
                benefits comparable to the benefits which will 
                be achieved by the construction of, or 
                improvements to, the highway not on the 
                National Highway System.
            (4) Highway safety improvements for segments of the 
        National Highway System.
            (5) Transportation planning in accordance with 
        sections 134 and 135.
            (6) Highway research and planning in accordance 
        with section 307.
            (7) Highway-related technology transfer activities.
            (8) Capital and operating costs for traffic 
        monitoring, management, and control facilities and 
        programs.
            (9) Fringe and corridor parking facilities.
            (10) Carpool and vanpool projects.
            (11) Bicycle transportation and pedestrian walkways 
        in accordance with section 217.
            (12) Development and establishment of management 
        systems under section 303.
            (13) In accordance with all applicable Federal law 
        and regulations, participation in wetlands mitigation 
        efforts related to projects funded under this title, 
        which may include participation in wetlands mitigation 
        banks; contributions to statewide and regional efforts 
        to conserve, restore, enhance and create wetlands; and 
        development of statewide and regional wetlands 
        conservation and mitigation plans, including any such 
        banks, efforts, and plans authorized pursuant to the 
        Water Resources Development Act of 1990 (including 
        crediting provisions). Contributions to such mitigation 
        efforts may take place concurrent with or in advance of 
        project construction. Contributions toward these 
        efforts may occur in advance of project construction 
        only if such efforts are consistent with all applicable 
        requirements of Federal law and regulations and State 
        transportation planning processes.

Sec. 104. Apportionment

    [(a) Whenever an apportionment is made of the sums 
authorized to be appropriated for expenditure on the surface 
transportation program, the congestion mitigation and air 
quality improvement program, the National Highway System, and 
the Interstate System, the Secretary shall deduct a sum, in 
such amount not to exceed 3\3/4\ per centum of all sums so 
authorized, as the Secretary may deem necessary for 
administering the provisions of law to be financed from 
appropriations for the Federal-aid systems and for carrying on 
the research authorized by subsections (a) and (b) of section 
307 of this title. In making such determination, the Secretary 
shall take into account the unexpended balance of any sums 
deducted for such purposes in prior years. The sum so deducted 
shall be available for expenditure from the unexpended balance 
of any appropriation made at any time for expenditure upon the 
Federal-aid systems, until such sum has been expended.]
    (a) Administrative Expenses.--
            (1) In general.--Whenever an apportionment is made 
        of the sums made available for expenditure on the 
        surface transportation program under section 133, the 
        congestion mitigation and air quality improvement 
        program under section 149, or the Interstate and 
        National Highway System program under section 103, the 
        Secretary shall deduct a sum, in an amount not to 
        exceed 1\1/2\ percent of all sums so made available, as 
        the Secretary determines necessary to administer the 
        provisions of law to be financed from appropriations 
        for the Federal-aid highway program and programs 
        authorized under chapter 2.
            (2) Consideration of unobligated balances.--In 
        making the determination described in paragraph (1), 
        the Secretary shall take into account the unobligated 
        balance of any sums deducted under this subsection in 
        prior fiscal years.
            (3) Availability.--The sum deducted under paragraph 
        (1) shall remain available until expended.
    [(b) On October 1 of each fiscal year except as provided in 
paragraph (5)(A) of this subsection, the Secretary, after 
making the deduction authorized by subsection (a) of this 
section and the set asides authorized by subsection (f) of this 
section and section 307 of this title, shall apportion the 
remainder of the sums authorized to be appropriated for 
expenditure on the surface transportation program, the 
congestion mitigation and air quality improvement program, the 
National Highway System, and the Interstate System for that 
fiscal year, among the several States in the following manner:
            [(1) National highway system.--For the National 
        Highway System 1 percent to the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of Northern 
        Mariana Islands and the remaining 99 percent 
        apportioned in the same ratio as funds are apportioned 
        under paragraph (3).
            [(2) Congestion mitigation and air quality 
        improvement program.--For the congestion mitigation and 
        air quality improvement program, in the ratio which the 
        weighted nonattainment area population of each State 
        bears to the total weighted nonattainment area 
        population of all States. The weighted nonattainment 
        area population shall be calculated by multiplying the 
        population of each area within any State that was a 
        nonattainment area (as defined in section 171(2) of the 
        Clean Air Act (42 U.S.C. 7501(2))) for ozone during any 
        part of fiscal year 1994 by a factor of--
                    [(A) 1.0 if the area is classified as a 
                marginal ozone nonattainment area under subpart 
                2 of part D of title I of the Clean Air Act;
                    [(B) 1.1 if the area is classified as a 
                moderate ozone nonattainment area under such 
                subpart;
                    [(C) 1.2 if the area is classified as a 
                serious ozone nonattainment area under such 
                subpart;
                    [(D) 1.3 if the area is classified as a 
                severe ozone nonattainment area under such 
                subpart; or
                    [(E) 1.4 if the area is classified as an 
                extreme ozone nonattainment area under such 
                subpart.
        [If the area was also classified under subpart 3 of 
        part D of title I of such Act as a nonattainment area 
        for carbon monoxide during any part of fiscal year 
        1994, for purposes of calculating the weighted 
        nonattainment area population, the weighted 
        nonattainment area population of the area, as 
        determined under the preceding provisions of this 
        paragraph, shall be further multiplied by a factor of 
        1.2. Notwithstanding any provision of this paragraph, 
        in the case of States with a total 1990 census 
        population of 15,000,000 or greater, the amount 
        apportioned under this paragraph in a fiscal year to 
        all of such States in the aggregate, shall be 
        distributed among such States based on their relative 
        populations; except that none of such States shall be 
        distributed more than 42 percent of the aggregate 
        amount so apportioned to all of such States. 
        Notwithstanding any other provision of this paragraph, 
        each State shall receive a minimum apportionment of \1/
        2\ of 1 percent of the funds apportioned under this 
        paragraph. The Secretary shall use estimates prepared 
        by the Secretary of Commerce when determining 
        population figures.
            [(3) Surface transportation program.--
                    [(A) General rule.--For the surface 
                transportation program in a manner so that a 
                State's current percentage share of 
                apportionments is equal to the State's 1987-
                1991 percentage share of apportionments. For 
                purposes of this paragraph--
                            [(i) a State's current percentage 
                        share of apportionments is the State's 
                        percentage share of all funds 
                        apportioned for a fiscal year under 
                        paragraph (1) for the National Highway 
                        System, under section 144 for the 
                        bridge program, under paragraph (5)(B) 
                        for Interstate maintenance, and under 
                        this paragraph; and
                            [(ii) a State's 1987-1991 
                        percentage share of apportionments is 
                        the State's percentage share of all 
                        apportionments and allocations under 
                        this title for fiscal years 1987, 1988, 
                        1989, 1990, and 1991 (except 
                        apportionments and allocations for 
                        Interstate construction under sections 
                        104(b)(5)(A) and 118, Interstate 
                        highway substitute under section 
                        103(e)(4), Federal lands highways under 
                        section 202, and emergency relief under 
                        section 125, all allocations under 
                        section 149 of the Surface 
                        Transportation and Uniform Relocation 
                        Assistance Act of 1987, and the portion 
                        of allocations under section 157 
                        (relating to minimum allocation) that 
                        would be attributable to apportionments 
                        made under Interstate construction and 
                        Interstate highway substitute programs 
                        under sections 104(b)(5)(A) and 
                        103(e)(4), respectively, for such 
                        fiscal years if the minimum allocation 
                        percentage for such fiscal years had 
                        been 90 percent instead of 85 percent).
                    [(B) Calculation rules.--In calculating a 
                State's percentage share under this paragraph 
                for the purpose of making apportionments for 
                fiscal years 1992, 1993, 1994, 1995, 1996, and 
                1997, each State shall be treated as having 
                received \1/2\ of 1 percent of all funds 
                apportioned for the Interstate construction 
                program under section 104(b)(5)(A) in fiscal 
                years 1987, 1988, 1989, 1990, and 1991. 
                Notwithstanding any other provision of this 
                paragraph, in any fiscal year no State shall 
                receive a percentage of total apportionments 
                and allocations that is less than 70 percent of 
                its percentage of total apportionments and 
                allocations for fiscal years 1987, 1988, 1989, 
                1990, and 1991, except for those States that 
                receive an apportionment for Interstate 
                construction under paragraph (5)(A) of more 
                than $50,000,000 for fiscal year 1992.
      [(4) For the Interstate System, for the fiscal years 
ending June 30, 1957, June 30, 1958, and June 30, 1959:
      [One-half in the ratio which the population of each State 
bears to the total population of all the States as shown by the 
latest available Federal census, except that no States shall 
receive less than three-fourths of 1 per centum of the funds so 
apportioned; and one-half in the manner provided in paragraph 
(1) of this subsection. The sums authorized by section 108(b) 
of the Federal-Aid Highway Act of 1956 for the fiscal years 
ending June 30, 1958, and June 30, 1959, shall be apportioned 
on a date not less than six months and not more than twelve 
months in advance of the beginning of the fiscal year for which 
authorized.
      [(5)(A) Except as provided in subparagraph (B)--For the 
Interstate System for the fiscal years 1960 through 1996:
      [For the fiscal years 1960 through 1966, in the ratio 
which the estimated cost of completing the Interstate System in 
such State, as determined and approved in the manner provided 
in this paragraph, bears to the sum of the estimated cost of 
completing the Interstate System in all of the States. For the 
fiscal year 1967 through 1990, in the ratio which the Federal 
share of the estimated cost of completing the Interstate System 
in such State, as determined and approved in the manner 
provided in this paragraph, bears to the sum of the estimated 
cost of the Federal share of completing the Interstate System 
in all of the States. Each apportionment herein authorized for 
the fiscal years 1960 through 1996, inclusive, shall be made on 
October 1 of the year preceding the fiscal year for which 
authorized.
      [As soon as the standards provided for in subsection (b) 
of section 109 of this title have been adopted, the Secretary, 
in cooperation with the [State highway departments]State 
transportation departments, shall make a detailed estimate of 
the cost of completing the Interstate System as then 
designated, after taking into account all previous 
apportionments made under this section, based upon such 
standards and in accordance with rules and regulations adopted 
by him and applied uniformly to all of the States. The 
Secretary shall transmit such estimates to the Senate and the 
House of Representatives within ten days subsequent to January 
2, 1958. Upon approval of such estimate by the Congress by 
concurrent resolution, the Secretary shall use such approved 
estimate in making apportionments for the fiscal years ending 
June 30, 1960, June 30, 1961, and June 30, 1962. The Secretary 
shall make a revised estimate of the cost of completing the 
then designated Interstate System, after taking into account 
all previous apportionments made under this section, in the 
same manner as stated above, and transmit the same to the 
Senate and the House of Representatives within ten days 
subsequent to January 2, 1961. Upon approval of such estimate 
by the Congress by concurrent resolution, the Secretary shall 
use such approved estimate in making apportionments for the 
fiscal years ending June 30, 1963, June 30, 1964, June 30, 
1965, and June 30, 1966. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System, after taking into account all previous 
apportionments made under this section, in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1965. Upon the approval of such estimate by the Congress, the 
Secretary shall use the Federal share of such approved estimate 
in making apportionments for the fiscal years ending June 30, 
1967; June 30, 1968; and June 30, 1969. The Secretary shall 
make a revised estimate of the cost of completing the then 
designated Interstate System after taking into account all 
previous apportionments made under this section, in the same 
manner as stated above, and transmit the same to the Senate and 
the House of Representatives within ten days subsequent to 
January 2, 1968. Upon the approval by the Congress, the 
Secretary shall use the Federal share of such approved estimate 
in making apportionments for the fiscal years ending June 30, 
1970, and June 30, 1971. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives on April 20, 1970. Upon the approval by the 
Congress, the Secretary shall use the Federal share of such 
approved estimate in making apportionments for the fiscal years 
ending June 30, 1972, and June 30, 1973. The Secretary shall 
make a revised estimate of the cost of completing the then 
designated Interstate System after taking into account all 
previous apportionments made under this section in the same 
manner as stated above, and transmit the same to the Senate and 
the House of Representatives within ten days subsequent to 
January 2, 1972. Upon the approval by Congress, the Secretary 
shall use the Federal share of such approved estimate in making 
apportionments for the fiscal years ending June 30, 1974, June 
30, 1975, and June 30, 1976. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section, in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1975. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimate in making the 
apportionment for the fiscal year ending September 30, 1977. 
The Secretary shall make the apportionment for the fiscal year 
ending September 30, 1978, in accordance with section 103 of 
the Federal-Aid Highway Act of 1976. The Secretary shall make a 
revised estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section, in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1977. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimates in making 
apportionments for the fiscal years ending September 30, 1979, 
and September 30, 1980. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1979. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimates in making 
apportionments for the fiscal years ending September 30, 1981, 
and September 30, 1982. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1981. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimate in making 
apportionments for the fiscal years ending September 30, 1983, 
and September 30, 1984. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section, in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1983. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimates in making 
apportionments for the fiscal years ending September 30, 1985, 
and September 30, 1986. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1985. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimates in making 
apportionments for the fiscal years ending September 30, 1987, 
and September 30, 1988. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within ten days subsequent to January 2, 
1987. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimates in making 
apportionments for the fiscal years ending September 30, 1989, 
and September 30, 1990. The Secretary shall make a revised 
estimate of the cost of completing the then designated 
Interstate System after taking into account all previous 
apportionments made under this section in the same manner as 
stated above, and transmit the same to the Senate and the House 
of Representatives within 10 days subsequent to January 2, 
1989. Upon the approval by Congress, the Secretary shall use 
the Federal share of such approved estimates in making 
apportionments for the fiscal years 1991 and 1992. The 
Secretary shall make a revised estimate of the cost of 
completing the then designated Interstate System after taking 
into account all previous apportionments made under this 
section in the same manner as stated above, and transmit the 
same to the Senate and the House of Representatives within 10 
days subsequent to January 2, 1991. Upon the approval by 
Congress, the Secretary shall use the Federal share of such 
approved estimates in making apportionments for the fiscal year 
1993. Whenever the Secretary, pursuant to this subsection, 
requests and receives estimates of cost from the [State highway 
departments]State transportation departments, he shall furnish 
copies of such estimates at the same time to the Senate and the 
House of Representatives. The Secretary shall not include in 
any estimate submitted under this provision after December 31, 
1978, any cost of a project to expand or clear zones 
immediately adjacent to the paved roadway of routes designed 
prior to February, 1967. Notwithstanding any other provisions 
of this subparagraph, the Secretary in making the revised 
estimate of the cost of completing the then designated 
Interstate System for the purpose of transmitting it to the 
Senate and House of Representatives within ten days subsequent 
to January 2, 1983, or thereafter, shall include only those 
costs eligible for funds authorized by subsection (b) of 
section 108 of the Federal-Aid Highway Act of 1956, as amended, 
including the amendments made by section 4 of the Federal-Aid 
Highway Act of 1981. As soon as practicable after the date of 
the enactment of the Intermodal Surface Transportation 
Efficiency Act of 1991 for fiscal year 1992, and on October 1 
of each of fiscal years 1993, 1994, and 1995, the Secretary 
shall make the apportionment required by this subparagraph for 
all States (other than Massachusetts) using the Federal share 
of the last estimate submitted to Congress, adjusted to reflect 
(i) all previous credits, apportionments of interstate 
construction funds, and lapses of previous apportionments of 
interstate construction funds, (ii) previous withdrawals of 
interstate segments, (iii) previous allocations of interstate 
discretionary funds, and (iv) transfers of interstate 
construction funds. Notwithstanding any other provision of this 
subparagraph or any cost estimate approved or adjusted pursuant 
to this subparagraph, subject to the deductions under this 
section, the amounts to be apportioned to the State of 
Massachusetts pursuant to this subparagraph for fiscal years 
1993, 1994, 1995, and 1996 shall be as follows: $450,000,000 
for fiscal year 1993, $800,000,000 for fiscal year 1994, 
$800,000,000 for fiscal year 1995, and $500,000,000 for fiscal 
year 1996. If, before apportionment of funds under this 
subparagraph for any fiscal year, the Secretary and a [State 
highway department]State transportation department agree that a 
portion of the apportionment to such State is not needed for 
such fiscal year, the amount of such portion shall be made 
available under section 118(b)(2) of this title.
      [(B) For resurfacing, restoring, rehabilitating, and 
reconstructing the Interstate System:
      [55 per centum in the ratio that lane miles on the 
Interstate routes designated under sections 103 and 139(c) of 
this title and routes on the Interstate System designated under 
section 139(a) of this title before March 9, 1984, (other than 
those on toll roads not subject to a Secretarial agreement 
provided for in section 105 of the Federal-Aid Highway Act of 
1978) in each State bears to the total of all such lane miles 
in all States; and 45 per centum in the ratio that vehicle 
miles traveled on lanes on the Interstate routes designated 
under sections 103 and 139(c) of this title and routes on the 
Interstate System designated under section 139(a) of this title 
before March 9, 1984, (other than those on toll roads not 
subject to a Secretarial agreement provided for in section 105 
of the Federal-Aid Highway Act of 1978) in each State bears to 
the total of all such vehicle miles in all States. 
Notwithstanding the preceding sentence, no State excluding any 
State that has no interstate lane miles shall receive less than 
one-half of 1 per centum of the total apportionment made by 
this subparagraph for any fiscal year.
      [(6) For the Federal-aid urban system:
      [In the ratio which the population in urban areas, or 
parts thereof, in each State bears to the total population in 
such urban areas, or parts thereof, in all the States as shown 
by the latest available Federal census. No State shall receive 
less than one-half of 1 per centum of each year's 
apportionment.]
    (b) Apportionments.--On October 1 of each fiscal year, the 
Secretary, after making the deduction authorized by subsection 
(a) and the set-asides authorized by [subsection (f)] 
subsections (d) and (f), shall apportion the remainder of the 
sums authorized to be appropriated for expenditure on the 
National Highway System, the congestion mitigation and air 
quality improvement program, and the surface transportation 
program, for that fiscal year, among the States in the 
following manner:
            (1) Interstate and national highway system 
        program.--
                    (A) Interstate maintenance component.--For 
                resurfacing, restoring, rehabilitating, and 
                reconstructing the Interstate System--
                            (i) 50 percent in the ratio that--
                                    (I) the total lane miles on 
                                Interstate System routes 
                                designated under--
                                            (aa) section 103;
                                            (bb) section 139(a) 
                                        before March 9, 1984 
                                        (other than routes on 
                                        toll roads not subject 
                                        to a Secretarial 
                                        agreement under section 
                                        105 of the Federal-Aid 
                                        Highway Act of 1978 (92 
                                        Stat. 2692)); and
                                            (cc) section 139(c) 
                                        (as in effect on the 
                                        day before the date of 
                                        enactment of the 
                                        Intermodal Surface 
                                        Transportation 
                                        Efficiency Act of 
                                        1997);
                                in each State; bears to
                                    (II) the total of all such 
                                lane miles in all States; and
                            (ii) 50 percent in the ratio that--
                                    (I) the total vehicle miles 
                                traveled on lanes on Interstate 
                                System routes designated 
                                under--
                                            (aa) section 103;
                                            (bb) section 139(a) 
                                        before March 9, 1984 
                                        (other than routes on 
                                        toll roads not subject 
                                        to a Secretarial 
                                        agreement under section 
                                        105 of the Federal-Aid 
                                        Highway Act of 1978 (92 
                                        Stat. 2692)); and
                                            (cc) section 139(c) 
                                        (as in effect on the 
                                        day before the date of 
                                        enactment of the 
                                        Intermodal Surface 
                                        Transportation 
                                        Efficiency Act of 
                                        1997);
                                in each State; bears to
                                    (II) the total of all such 
                                vehicle miles traveled in all 
                                States.
                    (B) Interstate bridge component.--For 
                resurfacing, restoring, rehabilitating, and 
                reconstructing bridges on the Interstate 
                System, in the ratio that--
                            (i) the total square footage of 
                        structurally deficient and functionally 
                        obsolete bridges on the Interstate 
                        System (other than bridges on toll 
                        roads not subject to a Secretarial 
                        agreement under section 105 of the 
                        Federal-Aid Highway Act of 1978 (92 
                        Stat. 2692)) in each State; bears to
                            (ii) the total square footage of 
                        structurally deficient and functionally 
                        obsolete bridges on the Interstate 
                        System (other than bridges on toll 
                        roads not subject to a Secretarial 
                        agreement under section 105 of the 
                        Federal-Aid Highway Act of 1978 (92 
                        Stat. 2692)) in all States.
                    (C) Other national highway system 
                component.--
                            (i) In general.--For the National 
                        Highway System (excluding funds 
                        apportioned under subparagraph (A) or 
                        (B)), $36,400,000 for each fiscal year 
                        to the Virgin Islands, Guam, American 
                        Samoa, and the Commonwealth of Northern 
                        Mariana Islands and the remainder 
                        apportioned as follows:
                                    (I) 20 percent of the 
                                apportionments in the ratio 
                                that--
                                            (aa) the total lane 
                                        miles of principal 
                                        arterial routes 
                                        (excluding Interstate 
                                        System routes) in each 
                                        State; bears to
                                            (bb) the total lane 
                                        miles of principal 
                                        arterial routes 
                                        (excluding Interstate 
                                        System routes) in all 
                                        States.
                                    (II) 29 percent of the 
                                apportionments in the ratio 
                                that--
                                            (aa) the total 
                                        vehicle miles traveled 
                                        on lanes on principal 
                                        arterial routes 
                                        (excluding Interstate 
                                        System routes) in each 
                                        State; bears to
                                            (bb) the total 
                                        vehicle miles traveled 
                                        on lanes on principal 
                                        arterial routes 
                                        (excluding Interstate 
                                        System routes) in all 
                                        States.
                                    (III) 18 percent of the 
                                apportionments in the ratio 
                                that--
                                            (aa) the total 
                                        square footage of 
                                        structurally deficient 
                                        and functionally 
                                        obsolete bridges on 
                                        principal arterial 
                                        routes (excluding 
                                        bridges on Interstate 
                                        System routes (other 
                                        than bridges on toll 
                                        roads not subject to a 
                                        Secretarial agreement 
                                        under section 105 of 
                                        the Federal-Aid Highway 
                                        Act of 1978 (92 Stat. 
                                        2692))) in each State; 
                                        bears to
                                            (bb) the total 
                                        square footage of 
                                        structurally deficient 
                                        and functionally 
                                        obsolete bridges on 
                                        principal arterial 
                                        routes (excluding 
                                        bridges on Interstate 
                                        System routes (other 
                                        than bridges on toll 
                                        roads not subject to a 
                                        Secretarial agreement 
                                        under section 105 of 
                                        the Federal-Aid Highway 
                                        Act of 1978 (92 Stat. 
                                        2692))) in all States.
                                    (IV) 24 percent of the 
                                apportionments in the ratio 
                                that--
                                            (aa) the total 
                                        diesel fuel used on 
                                        highways in each State; 
                                        bears to
                                            (bb) the total 
                                        diesel fuel used on 
                                        highways in all States.
                                    (V) 9 percent of the 
                                apportionments in the ratio 
                                that--
                                            (aa) the quotient 
                                        obtained by dividing 
                                        the total lane miles on 
                                        principal arterial 
                                        highways in each State 
                                        by the total population 
                                        of the State; bears to
                                            (bb) the quotient 
                                        obtained by dividing 
                                        the total lane miles on 
                                        principal arterial 
                                        highways in all States 
                                        by the total population 
                                        of all States.
                            (ii) Data.--Each calculation under 
                        clause (i) shall be based on the latest 
                        available data.
                    (D) Minimum apportionment.--Notwithstanding 
                subparagraphs (A) through (C), each State shall 
                receive a minimum of \1/2\ of 1 percent of the 
                funds apportioned under this paragraph.
            (2) Congestion mitigation and air quality 
        improvement program.--
                    (A) In general.--For the congestion 
                mitigation and air quality improvement program, 
                in the ratio that--
                            (i) the total of all weighted 
                        nonattainment and maintenance area 
                        populations in each State; bears to
                            (ii) the total of all weighted 
                        nonattainment and maintenance area 
                        populations in all States.
                    (B) Calculation of weighted nonattainment 
                and maintenance area population.--Subject to 
                subparagraph (C), for the purpose of 
                subparagraph (A), the weighted nonattainment 
                and maintenance area population shall be 
                calculated by multiplying the population of 
                each area in a State that was a nonattainment 
                area or maintenance area as described in 
                section 149(b) for ozone or carbon monoxide by 
                a factor of--
                            (i) 0.8 if--
                                    (I) at the time of the 
                                apportionment, the area is a 
                                maintenance area; or
                                    (II) at the time of the 
                                apportionment, the area is 
                                classified as a submarginal 
                                ozone nonattainment area under 
                                the Clean Air Act (42 U.S.C. 
                                7401 et seq.);
                            (ii) 1.0 if, at the time of the 
                        apportionment, the area is classified 
                        as a marginal ozone nonattainment area 
                        under subpart 2 of part D of title I of 
                        the Clean Air Act (42 U.S.C. 7511 et 
                        seq.);
                            (iii) 1.1 if, at the time of the 
                        apportionment, the area is classified 
                        as a moderate ozone nonattainment area 
                        under that subpart;
                            (iv) 1.2 if, at the time of the 
                        apportionment, the area is classified 
                        as a serious ozone nonattainment area 
                        under that subpart;
                            (v) 1.3 if, at the time of the 
                        apportionment, the area is classified 
                        as a severe ozone nonattainment area 
                        under that subpart;
                            (vi) 1.4 if, at the time of the 
                        apportionment, the area is classified 
                        as an extreme ozone nonattainment area 
                        under that subpart; or
                            (vii) 1.0 if, at the time of the 
                        apportionment, the area is not a 
                        nonattainment or maintenance area as 
                        described in section 149(b) for ozone, 
                        but is classified under subpart 3 of 
                        part D of title I of that Act (42 
                        U.S.C. 7512 et seq.) as a nonattainment 
                        area described in section 149(b) for 
                        carbon monoxide.
                    (C) Additional adjustment for carbon 
                monoxide areas.--
                            (i) Carbon monoxide nonattainment 
                        areas.--If, in addition to being 
                        classified as a nonattainment or 
                        maintenance area for ozone, the area 
                        was also classified under subpart 3 of 
                        part D of title I of that Act (42 
                        U.S.C. 7512 et seq.) as a nonattainment 
                        area described in section 149(b) for 
                        carbon monoxide, the weighted 
                        nonattainment or maintenance area 
                        population of the area, as determined 
                        under clauses (i) through (vi) of 
                        subparagraph (B), shall be further 
                        multiplied by a factor of 1.2.
                            (ii) Carbon monoxide maintenance 
                        areas.--If, in addition to being 
                        classified as a nonattainment or 
                        maintenance area for ozone, the area 
                        was at one time also classified under 
                        subpart 3 of part D of title I of that 
                        Act (42 U.S.C. 7512 et seq.) as a 
                        nonattainment area described in section 
                        149(b) for carbon monoxide but has been 
                        redesignated as a maintenance area, the 
                        weighted nonattainment or maintenance 
                        area population of the area, as 
                        determined under clauses (i) through 
                        (vi) of subparagraph (B), shall be 
                        further multiplied by a factor of 1.1.
                    (D) Minimum apportionment.--Notwithstanding 
                any other provision of this paragraph, each 
                State shall receive a minimum of \1/2\ of 1 
                percent of the funds apportioned under this 
                paragraph.
                    (E) Determinations of population.--In 
                determining population figures for the purposes 
                of this paragraph, the Secretary shall use the 
                latest available annual estimates prepared by 
                the Secretary of Commerce.
            (3) Surface transportation program.--
                    (A) In general.--For the surface 
                transportation program, in accordance with the 
                following formula:
                            (i) 20 percent of the 
                        apportionments in the ratio that--
                                    (I) the total lane miles of 
                                Federal-aid highways in each 
                                State; bears to
                                    (II) the total lane miles 
                                of Federal-aid highways in all 
                                States.
                            (ii) 30 percent of the 
                        apportionments in the ratio that--
                                    (I) the total vehicle miles 
                                traveled on lanes on Federal-
                                aid highways in each State; 
                                bears to
                                    (II) the total vehicle 
                                miles traveled on lanes on 
                                Federal-aid highways in all 
                                States.
                            (iii) 25 percent of the 
                        apportionments in the ratio that--
                                    (I) the total square 
                                footage of structurally 
                                deficient and functionally 
                                obsolete bridges on Federal-aid 
                                highways (excluding bridges 
                                described in subparagraphs (B) 
                                and (C)(i)(III) of paragraph 
                                (1)) in each State; bears to
                                    (II) the total square 
                                footage of structurally 
                                deficient and functionally 
                                obsolete bridges on Federal-aid 
                                highways (excluding bridges 
                                described in subparagraphs (B) 
                                and (C)(i)(III) of paragraph 
                                (1)) in all States.
                            (iv) 25 percent of the 
                        apportionments in the ratio that--
                                    (I) the estimated tax 
                                payments attributable to 
                                highway users in each State 
                                paid into the Highway Trust 
                                Fund (other than the Mass 
                                Transit Account) in the latest 
                                fiscal year for which data are 
                                available; bears to
                                    (II) the estimated tax 
                                payments attributable to 
                                highway users in all States 
                                paid into the Highway Trust 
                                Fund (other than the Mass 
                                Transit Account) in the latest 
                                fiscal year for which data are 
                                available.
                    (B) Data.--Each calculation under 
                subparagraph (A) shall be based on the latest 
                available data.
                    (C) Minimum apportionment.--Notwithstanding 
                subparagraph (A), each State shall receive a 
                minimum of \1/2\ of 1 percent of the funds 
                apportioned under this paragraph.
    (c) Transferability of NHS Apportionments.--A State may 
transfer not to exceed 50 percent of the State's apportionment 
under subsection (b)(1) to the apportionment of the State under 
subsection (b)(3). A State may transfer not to exceed 100 
percent of the State's apportionment under subsection (b)(1) to 
the apportionment of the State under subsection (b)(3) if the 
State requests to make such transfer and the Secretary approves 
such transfer as being in the public interest, after providing 
notice and sufficient opportunity for public comment. Section 
133(d) shall not apply to funds transferred under this 
subsection.
    (d) Operation Lifesaver and High Speed Rail Corridors.--
            [(1) Operation lifesaver.--The Secretary shall 
        expend, from administrative funds deducted under 
        subsection (a), $300,000 for each fiscal year for 
        carrying out a public information and education program 
        to help prevent and reduce motor vehicle accidents, 
        injuries, and fatalities and to improve driver 
        performance at railway-highway crossings.]
            (1) Operation lifesaver.--Before making an 
        apportionment of funds under subsection (b)(3) for a 
        fiscal year, the Secretary shall set aside $500,000 of 
        the funds authorized to be appropriated for the surface 
        transportation program for the fiscal year to carry out 
        a public information and education program to help 
        prevent and reduce motor vehicle accidents, injuries, 
        and fatalities and to improve driver performance at 
        railway-highway crossings.
            [(2) Railway-highway crossing hazard elimination in 
        high speed rail corridors.--(A) Before making an 
        apportionment of funds under subsection (b)(3) for a 
        fiscal year, the Secretary shall set aside $5,000,000 
        of the funds authorized to be appropriated for the 
        surface transportation program for such fiscal year for 
        elimination of hazards of railway-highway crossings in 
        not to exceed 5 railway corridors selected by the 
        Secretary in accordance with the criteria set forth in 
        this paragraph.
            [(B) A corridor selected by the Secretary under 
        subparagraph (A) must include rail lines where railroad 
        speeds of 90 miles per hour are occurring or can 
        reasonably be expected to occur in the future.
    [(3) In making the determination required by paragraph 
(2)(A), the Secretary shall consider projected rail ridership 
volumes in such corridors, the percentage of the corridor over 
which a train will be capable of operating at its maximum 
cruise speed taking into account such factors as topography and 
other traffic on the line, projected benefits to nonriders such 
as congestion relief on other modes of transportation serving 
the corridors (including congestion in heavily traveled air 
passenger corridors), the amount of State and local financial 
support that can reasonably be anticipated for the improvement 
of the line and related facilities, and the cooperation of the 
owner of the right-of-way that can reasonably be expected in 
the operation of high speed rail passenger service in such 
corridors.]
            (2) Railway-highway crossing hazard elimination in 
        high speed rail corridors.--
                    (A) In general.--Before making an 
                apportionment of funds under subsection (b)(3) 
                for a fiscal year, the Secretary shall set 
                aside $5,000,000 of the funds authorized to be 
                appropriated for the surface transportation 
                program for the fiscal year for elimination of 
                hazards of railway-highway crossings.
                    (B) Eligible corridors.--Funds made 
                available under subparagraph (A) shall be 
                expended for projects in--
                            (i) 5 railway corridors selected by 
                        the Secretary in accordance with this 
                        subsection (as in effect on the day 
                        before the date of enactment of this 
                        clause); and
                            (ii) 3 railway corridors selected 
                        by the Secretary in accordance with 
                        subparagraphs (C) and (D).
                    (C) Required inclusion of high speed rail 
                lines.--A corridor selected by the Secretary 
                under subparagraph (B) shall include rail lines 
                where railroad speeds of 90 miles or more per 
                hour are occurring or can reasonably be 
                expected to occur in the future.
                    (D) Considerations in corridor selection.--
                In selecting corridors under subparagraph (B), 
                the Secretary shall consider--
                            (i) projected rail ridership volume 
                        in each corridor;
                            (ii) the percentage of each 
                        corridor over which a train will be 
                        capable of operating at its maximum 
                        cruise speed taking into account such 
                        factors as topography and other traffic 
                        on the line;
                            (iii) projected benefits to 
                        nonriders such as congestion relief on 
                        other modes of transportation serving 
                        each corridor (including congestion in 
                        heavily traveled air passenger 
                        corridors);
                            (iv) the amount of State and local 
                        financial support that can reasonably 
                        be anticipated for the improvement of 
                        the line and related facilities; and
                            (v) the cooperation of the owner of 
                        the right-of-way that can reasonably be 
                        expected in the operation of high speed 
                        rail passenger service in each 
                        corridor.
    (e) Notification to States.--On October 1 of each fiscal 
year the Secretary shall certify to each of the [State highway 
departments]State transportation departments the sums which he 
has apportioned hereunder [(other than under subsection (b)(5) 
of this section)] to each State for such fiscal year, and also 
the sums which he has deducted for administration [and 
research] pursuant to subsection (a) of this section. [On 
October 1 of the year preceding the fiscal year for which 
authorized, the Secretary shall certify to each of the [State 
highway departments]State transportation departments the sums 
which he has apportioned under subsection (b)(5) of this 
section to each State for such fiscal year, and also the sums 
which he has deducted for administration and research pursuant 
to subsection (a) of this section.] To permit the States to 
develop adequate plans for the utilization of apportioned sums 
the Secretary shall advise each State of the amount that will 
be apportioned each year under this section not later than 
ninety days before the beginning of the fiscal year for which 
the sums to be apportioned are authorized[, except that in the 
case of the Interstate System the Secretary shall advise each 
State ninety days prior to the apportionment of such funds].
    [(f)(1) On] (f) Metropolitan Planning._
             Set-Aside.--On October 1 of each fiscal year, the 
        Secretary, after making the deduction authorized by 
        subsection (a) of this section, shall set aside not to 
        exceed 1 percent of the remaining funds authorized to 
        be appropriated for expenditure upon programs 
        authorized under this title, for the purpose of 
        carrying out the requirements of section 134 of this 
        title[, except that the amount from which such set 
        aside is made shall not include funds authorized to be 
        appropriated for the Interstate construction and 
        Interstate substitute programs].
    [(2) These] (2)     Apportionment to states of set-aside 
funds._These funds shall be apportioned to the States in the 
ratio which the population in urbanized areas or parts thereof, 
in each State bears to the total population in such urbanized 
areas in all the States as shown by the latest available 
census, except that no State shall receive less than one-half 
per centum of the amount apportioned.
    [(3) The] (3) Use of Funds._The funds apportioned to any 
State under paragraph (2) of this subsection shall be made 
available by the State to the metropolitan planning 
organizations responsible for carrying out the provisions of 
section 134 of this title, except that States receiving the 
minimum apportionment underparagraph (2) may, in addition, 
subject to the approval of the Secretary, use the funds 
apportioned to finance transportation planning outside of 
urbanized areas. These funds shall be matched in accordance 
with section 120(j) of this title unless the Secretary 
determines that the interests of the Federal-aid highway 
program would be best served without such matching.
    [(4) The] (4) Distribution of funds within states._The 
distribution within any State of the planning funds made 
available to agencies under paragraph (3) of this subsection 
shall be in accordance with a formula developed by each State 
and approved by the Secretary which shall consider but not 
necessarily be limited to, population, status of planning, 
attainment of air quality standards, metropolitan area 
transportation needs, and other factors necessary to provide 
for an appropriate distribution of funds to carry out the 
requirements of section 134 and other applicable requirements 
of Federal law.
            (5) Determination of population figures.--For the 
        purposes of determining population figures under this 
        subsection, the Secretary shall use the most recent 
        estimate published by the Secretary of Commerce.
    (g) Not more than 40 per centum of the amount apportioned 
in any fiscal year to each State in accordance with [sections 
130, 144, and 152 of this title] subsection (b)(1)(B) and 
sections 130 and 152 may be transferred from the apportionment 
under one [section] provision to the apportionment under any 
other of [such sections] those provisions if such a transfer is 
requested by the [State highway department]State transportation 
department and is approved by the Secretary as being in the 
public interest. The Secretary may approve the transfer of 100 
per centum of the apportionment under one such [section] 
provision to the apportionment under any other of [such 
sections] those provisions if such transfer is requested by the 
[State highway department]State transportation department, and 
is approved by the Secretary as being in the public interest, 
if he has received satisfactory assurances from such [State 
highway department]State transportation department that the 
purposes of the program from which such funds are to be 
transferred have been met. A State may transfer not to exceed 
50 percent of the State's apportionment under [section 144] 
subsection (b)(1)(B) in any fiscal year to the apportionment of 
such State under [subsection (b)(1)] subsection (B)(1)(C) or 
subsection (b)(3) of this section. Any transfer to subsection 
(b)(3) shall not be subject to section 133(d). Nothing in this 
subsection authorizes the transfer of any amount apportioned 
from the Highway Trust Fund to any apportionment the funds for 
which were not from the Highway Trust Fund, and nothing in this 
subsection authorizes the transfer of any amount apportioned 
from funds not from the Highway Trust Fund to any apportionment 
the funds for which were from the Highway Trust Fund.
    [(h) National Recreational Trails Funding.--In addition to 
funds made available from the National Recreational Trails 
Trust Fund, the Secretary shall obligate, from administrative 
funds (contract authority) deducted under subsection (a), to 
carry out section 1302 of the Intermodal Surface Transportation 
Efficiency Act of 1991 (16 U.S.C. 1261) $15,000,000 for each of 
fiscal years 1996 and 1997.]
    (h) Effect of Certain Amendments.--Notwithstanding any 
other provision of law, deposits into the Highway Trust Fund 
resulting from the amendments made by section 901 of the 
Taxpayer Relief Act of 1997 shall not be taken into account in 
determining the apportionments and allocations that any State 
shall be entitled to receive under the Intermodal Surface 
Transportation Efficiency Act of 1997 and this title.
    [(i) Woodrow Wilson Memorial Bridge.--
            [(1) Expenditure.--From any available 
        administrative funds deducted under subsection (a), the 
        Secretary shall obligate such sums as are necessary for 
        each of fiscal years 1996 and 1997 for the 
        rehabilitation of the Woodrow Wilson Memorial Bridge 
        and for environmental studies and documentation, 
        planning, preliminary engineering and design, and final 
        engineering for a new crossing of the Potomac River as 
        part of the Project, as defined by section 404 of the 
        Woodrow Wilson Memorial Bridge Authority Act of 1995.
            [(2) Federal share.--The Federal share of the cost 
        of any project funded with amounts expended under 
        paragraph (1) shall be 100 percent.]
    (i) Audits of Highway Trust Fund.--From available 
administrative funds deducted under subsection (a), the 
Secretary may reimburse the Office of Inspector General of the 
Department of Transportation for the conduct of annual audits 
of financial statements in accordance with section 3521 of 
title 31.
    (j) Reporting of Rates of Obligation.--On an annual basis, 
the Secretary shall publish or otherwise report rates of 
obligation of funds apportioned or set aside under this section 
and sections 103 and 133 according to--
            (1) program;
            (2) funding category or subcategory;
            (3) type of improvement;
            (4) State; and
            (5) sub-State geographic area, including urbanized 
        and rural areas, on the basis of the population of each 
        such area.
    (k) Set-Aside for Interstate 4R and Bridge Projects.--
            (1) In general.--For each of fiscal years 1998 
        through 2003, before any apportionment is made under 
        subsection (b)(1), the Secretary shall set aside 
        $70,000,000 from amounts to be apportioned under 
        subsection (b)(1)(A), and $70,000,000 from amounts to 
        be apportioned under subsection (b)(1)(B), for 
        allocation by the Secretary--
                    (A) for projects for resurfacing, 
                restoring, rehabilitating, or reconstructing 
                any route or portion of a route on the 
                Interstate System (other than any highway 
                designated as a part of the Interstate System 
                under section 103(c)(4) and any toll road on 
                the Interstate System that is not subject to an 
                agreement under section 119(e) (as in effect on 
                December 17, 1991) or an agreement under 
                section 129(a));
                    (B) for projects for a highway bridge the 
                replacement, rehabilitation, or seismic 
                retrofit cost of which is more than 
                $10,000,000; and
                    (C) for projects for a highway bridge the 
                replacement, or rehabilitation, or seismic 
                retrofit cost of which is less than $10,000,000 
                if the cost is at least twice the amount 
                reserved under section 144(c) by the State in 
                which the bridge is located for the fiscal year 
                in which application is made for an allocation 
                for the bridge under this subsection.
            (2) Required allocation.--
                    (A) In general.--Subject to subparagraph 
                (B), for each of fiscal years 1998 through 
                2003, the Secretary shall allocate on October 
                1, for use for highway bridge projects, at 
                least $20,000,000 of the amounts set aside 
                under paragraph (1) to any State that--
                            (i) is apportioned for fiscal year 
                        1998 under paragraphs (1)(B), 
                        (1)(C)(i)(III), and (3)(A)(iii) of 
                        subsection (b) an amount that is less 
                        than the amount apportioned to the 
                        State for the highway bridge 
                        replacement and rehabilitation program 
                        under section 144 for fiscal year 1997; 
                        and
                            (ii) was apportioned for that 
                        program for fiscal year 1997 an amount 
                        greater than $125,000,000.
                    (B) Exception.--A State that transferred 
                funds from the highway bridge replacement and 
                rehabilitation program during any of fiscal 
                years 1995 through 1997 in an amount greater 
                than 10 percent of the apportionments for that 
                program for the fiscal year shall not be 
                eligible for an allocation under subparagraph 
                (A).
                    (C) Additional allocation.--An allocation 
                to a State under subparagraph (A) shall be in 
                addition to any allocation to the State under 
                paragraph (1).
            (3) Availability to states of interstate 4r 
        funds.--The Secretary may grant the application of a 
        State for funds made available for a fiscal year for a 
        project described in paragraph (1)(A) if the Secretary 
        determines that--
                    (A) the State has obligated or demonstrates 
                that it will obligate for the fiscal year all 
                of the apportionments to the State under 
                subparagraphs (A) and (B) of subsection (b)(1) 
                other than an amount that, by itself, is 
                insufficient to pay the Federal share of the 
                cost of a project described in paragraph (1)(A) 
                that has been submitted by the State to the 
                Secretary for approval; and
                    (B) the State is willing and able to--
                            (i) obligate the funds within 1 
                        year after the date on which the funds 
                        are made available;
                            (ii) apply the funds to a project 
                        that is ready to be commenced; and
                            (iii) in the case of construction 
                        work, begin work within 90 days after 
                        the date of obligation of the funds.
            (4) Eligibility of certain bridges.--
                    (A) 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 subsection.
                    (B) Limitation.--The amount of assistance 
                under subparagraph (A) shall not exceed the 
                cumulative amount that the agency has expended 
                for capital and operating costs to subsidize 
                the transit system.
                    (C) Determination by the secretary.--Before 
                authorizing an expenditure of funds under this 
                paragraph, the Secretary shall make a 
                determination 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 necessary bridge replacement, 
                seismic retrofitting, or rehabilitation 
                project.
                    (D) 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 expenditure.
            (5) Period of availability of discretionary 
        funds.--Amounts made available under this subsection 
        shall remain available until expended.
    (l) Transfer of Highway and Transit Funds.--
            (1) Transfer of highway funds.--Funds made 
        available under this title and transferred for transit 
        projects shall be administered by the Secretary in 
        accordance with chapter 53 of title 49, except that the 
        provisions of this title relating to the non-Federal 
        share shall apply to the transferred funds.
            (2) Transfer of transit funds.--Funds made 
        available under chapter 53 of title 49 and transferred 
        for highway projects shall be administered by the 
        Secretary in accordance with this title, except that 
        the provisions of that chapter relating to the non-
        Federal share shall apply to the transferred funds.
            (3) Transfer to amtrak and publicly-owned passenger 
        rail lines.--Funds made available under this title or 
        chapter 53 of title 49 and transferred to the National 
        Railroad Passenger Corporation or to any publicly-owned 
        intercity or intracity passenger rail line shall be 
        administered by the Secretary in accordance with 
        subtitle V of title 49, except that the provisions of 
        this title or chapter 53 of title 49, as applicable, 
        relating to the non-Federal share shall apply to the 
        transferred funds.
            (4) Transfer of obligation authority.--Obligation 
        authority provided for projects described in paragraphs 
        (1) through (3) shall be transferred in the same manner 
        and amount as the funds for the projects are 
        transferred.
    [(j)] (m) Report to Congress._The Secretary shall submit to 
Congress [not later than the 20th day of each calendar month 
which begins after the date of enactment of this subsection a 
report] a report for eacg fiscal year on (1) the amount of 
obligation, by State, for [Federal-aid highways and the highway 
safety construction programs] the Federal-aid highway program 
during the preceding [calendar month] fiscal year, [(2) the 
cumulative amount of obligation, by State, for that fiscal 
year,] [(3)] (2) the balance as of the last day of [such 
preceding month] that preceding fiscal year of the unobligated 
apportionment of each State by fiscal year, and [(4)] (3) the 
balance of unobligated sums available for expenditure at the 
discretion of the Secretary for such highways and programs for 
the fiscal year.

Sec. 105. [Programs

    [(a) As soon as practicable after the apportionments for 
the Federal-aid systems have been made for any fiscal year, the 
[State highway department]State transportation department of 
any State desiring to avail itself of the benefits of this 
chapter shall submit to the Secretary for his approval a 
program or programs of proposed projects for the utilization of 
the funds apportioned. The Secretary shall act upon programs 
submitted to him as soon as practicable after the same have 
been submitted. The Secretary may approve a program in whole or 
in part, but he shall not approve any project in a proposed 
program which is not located upon an approved Federal-aid 
system.
    [(b) In approving programs for projects on the Federal-aid 
secondary system, the Secretary shall require that such 
projects be selected by the [State highway department]State 
transportation department and the appropriate local officials 
in cooperation with each other, except in States where all 
public roads and highways are under the control and supervision 
of the [State highway department]State transportation 
department, such selection shall be made after consultation 
with appropriate local officials.
    [(c) In approving programs for projects on the Federal-aid 
primary system, the Secretary shall give preference to such 
projects as will expedite the completion of an adequate and 
connected system of highways interstate in character.
    [(d) In approving programs for projects on the Federal-aid 
urban system, the Secretary shall require that such projects be 
selected by the appropriate local officials with the 
concurrence of the [State highway department]State 
transportation department of each State and, in urbanized 
areas, also in accordance with the planning process required 
pursuant to section 134 of this title.
    [(e) In approving programs for projects under this chapter, 
the Secretary may give priority of approval to, and expedite 
the construction of, projects that are recommended as important 
to the national defense by the Secretary of Defense, or other 
official authorized by the President to make such 
recommendation.
    [(f) In approving programs for projects on the Federal-aid 
systems pursuant to chapter 1 of this title, the Secretary 
shall give priority to those projects which incorporate 
improved standards and features with safety benefits.
    [(g) In preparing programs to submit in accordance with 
subsection (a) of this section, the [State highway 
departments]State transportation departments shall give 
consideration to projects providing direct and convenient 
public access to public airports, public ports for water 
transportation, new town communities, and new town-intown 
communities, and in approving such programs the Secretary shall 
give consideration to such projects.
    [(h) In preparing programs to submit in accordance with 
subsection (a) of this section, the [State highway 
departments]State transportation departments may give priority 
to projects for the reconstruction, resurfacing, restoration, 
or rehabilitation of highways which are incurring a substantial 
use as a result of transportation activities to meet national 
energy requirements and which will continue to incur such use, 
and in approving such programs the Secretary may give priority 
to such projects.
    [(k) Priority for High Priority Segments of Corridors of 
National Significance.--In selecting projects for inclusion in 
a program of projects under this section, the State may give 
priority to high priority segments of corridors identified 
under section 1105(f) of the Intermodal Surface Transportation 
Efficiency Act of 1991. In approving programs of projects under 
this section, the Secretary may give priority of approval to, 
and expedite construction of, projects to complete construction 
of such segments.]

Sec. 105. Minimum guarantee

    (a) Adjustment.--
            (1) In general.--In fiscal year 1998 and each 
        fiscal year thereafter on October 1, or as soon as 
        practicable thereafter, the Secretary shall allocate 
        among the States amounts sufficient to ensure that--
                    (A) the ratio that--
                            (i) each State's percentage of the 
                        total apportionments for the fiscal 
                        year--
                                    (I) under section 104 for 
                                the Interstate and National 
                                Highway System program, the 
                                surface transportation program, 
                                metropolitan planning, and the 
                                congestion mitigation and air 
                                quality improvement program; 
                                and
                                    (II) under this section and 
                                section 1102(c) of the 
                                Intermodal Surface 
                                Transportation Efficiency Act 
                                of 1997 for ISTEA transition; 
                                bears to
                            (ii) each State's percentage of 
                        estimated tax payments attributable to 
                        highway users in the State paid into 
                        the Highway Trust Fund (other than the 
                        Mass Transit Account) in the latest 
                        fiscal year for which data are 
                        available;
                is not less than 0.90; and
                    (B) in the case of a State specified in 
                paragraph (2)--
                            (i) the State's percentage of the 
                        total apportionments for the fiscal 
                        year described in subclauses (I) and 
                        (II) of subparagraph (A)(i) is not less 
                        than the percentage specified for the 
                        State in paragraph (2); but
                            (ii) the State's total 
                        apportionments for the fiscal year 
                        described in subclauses (I) and (II) of 
                        subparagraph (A)(i) is not greater than 
                        the product determined for the State 
                        under section 1102(c)(1)(D) of the 
                        Intermodal Surface Transportation 
                        Efficiency Act of 1997 for the fiscal 
                        year.
            (2) State percentages.--The percentage referred to 
        in paragraph (1)(B) for a specified State shall be 
        determined in accordance with the following table:

State                                                        Percentage
        Alaska....................................                1.24 
        Arkansas..................................                1.33 
        Delaware..................................                0.47 
        Hawaii....................................                0.55 
        Idaho.....................................                0.82 
        Montana...................................                1.06 
        Nevada....................................                0.73 
        New Hampshire.............................                0.52 
        New Jersey................................                2.41 
        New Mexico................................                1.05 
        North Dakota..............................                0.73 
        Rhode Island..............................                0.58 
        South Dakota..............................                0.78 
        Vermont...................................                0.47 
        Wyoming...................................                0.76.
    (b) Treatment of Allocations.--
            (1) Obligation.--Amounts allocated under subsection 
        (a)--
                    (A) shall be available for obligation when 
                allocated and shall remain available for 
                obligation for a period of 3 years after the 
                last day of the fiscal year for which the 
                amounts are allocated; and
                    (B) shall be available for any purpose 
                eligible for funding under this title.
            (2) Set-aside.--Fifty percent of the amounts 
        allocated under subsection (a) shall be subject to 
        section 133(d)(3).
    (c) Treatment of Withheld Apportionments.--For the purpose 
of subsection (a), any funds that, but for section 158(b) or 
any other provision of law under which Federal-aid highway 
funds are withheld from apportionment, would be apportioned to 
a State for a fiscal year under a section referred to in 
subsection (a) shall be treated as being apportioned in that 
fiscal year.
    (d) Authorization of Contract Authority.--There shall be 
available from the Highway Trust Fund (other than the Mass 
Transit Account) such sums as are necessary to carry out this 
section.

[Sec. 106. Plans, specifications, and estimates

    [(a) Except as provided in this section and section 117 of 
this title, the [State highway department]State transportation 
department shall submit to the Secretary for his approval, as 
soon as practicable after program approval, such surveys, 
plans, specifications, and estimates for each proposed project 
included in an approved program as the Secretary may require. 
The Secretary shall act upon such surveys, plans, 
specifications, and estimates as soon as practicable after the 
same have been submitted, and his approval of any such project 
shall be deemed a contractual obligation of the Federal 
Government for the payment of its proportional contribution 
thereto. In taking such action, the Secretary shall be guided 
by the provisions of section 109 of this title.
    [(b) Special Rules.--
            [(1) 3R projects on nhs.--Notwithstanding any other 
        provision of this title, a [State highway 
        department]State transportation department may approve, 
        on a project by project basis, plans, specifications, 
        and estimates for projects to resurface, restore, and 
        rehabilitate highways on the National Highway System if 
        the State certifies that all work will meet or exceed 
        the standards approved by the Secretary under section 
        109(c).
            [(2) Non-nhs projects and low-cost nhs projects.--
        Any State may request that the Secretary no longer 
        review and approve plans, specifications, and estimates 
        for any project (including any highway project on the 
        National Highway System with an estimated construction 
        cost of less than $1,000,000 but excluding any other 
        highway project on the National Highway System). After 
        receiving any such notification, the Secretary shall 
        undertake project review only as requested by the 
        State.
            [(3) Safety considerations.--Safety considerations 
        for projects subject to this subsection may be met by 
        phase construction consistent with an operative safety 
        management system established in accordance with 
        section 303.
    [(c) Limitation on Estimates for Construction 
Engineering.--Items included in all such estimates for 
construction engineering for a State for a fiscal year shall 
not exceed, in the aggregate, 15 percent of the total estimated 
costs of all projects financed within the boundaries of the 
State with Federal-aid highway funds in such fiscal year, after 
excluding from such total estimate costs, the estimated costs 
of rights-of-way, preliminary engineering, and construction 
engineering.
    [(d) In such cases as the Secretary determines advisable, 
plans, specifications, and estimates for proposed projects on 
any Federal-aid system shall be accompanied by a value 
engineering or other cost reduction analysis.]

Sec. 106. Project approval and oversight

    (a) In General.--Except as otherwise provided in this 
section, the State transportation department shall submit to 
the Secretary for approval such plans, specifications, and 
estimates for each proposed project as the Secretary may 
require. The Secretary shall act upon such plans, 
specifications, and estimates as soon as practicable after they 
have been submitted, and shall enter into a formal project 
agreement with the State transportation department formalizing 
the conditions of the project approval. The execution of such 
project agreement shall be deemed a contractual obligation of 
the Federal Government for the payment of its proportional 
contribution thereto. In taking such action, the Secretary 
shall be guided by the provisions of section 109 of this title.
    (b) Project Agreement.--The project agreement shall make 
provision for State funds required for the State's pro rata 
share of the cost of construction of the project and for the 
maintenance of the project after completion of construction. 
The Secretary may rely upon representations made by the State 
transportation department with respect to the arrangements or 
agreements made by the State transportation department and 
appropriate local officials where a part of the project is to 
be constructed at the expense of, or in cooperation with, local 
subdivisions of the State.
    (c) Special Rules for Project Oversight.--
            (1) NHS projects.--Except as otherwise provided in 
        subsection (d) of this section, the Secretary may 
        discharge to the State any of the Secretary's 
        responsibilities for the design, plans, specifications, 
        estimates, contract awards, and inspection of projects 
        under this title on the National Highway System. Before 
        discharging responsibilities to the State, the 
        Secretary shall reach agreement with the State as to 
        the extent to which the State may assume the 
        responsibilities of the Secretary under this 
        subsection. The Secretary may not assume any greater 
        responsibility than the Secretary is permitted under 
        this title as of September 30, 1997, except upon 
        agreement by the Secretary and the State.
            (2) Non-nhs projects.--For all projects under this 
        title that are off the National Highway System, the 
        State may request that the Secretary no longer review 
        and approve the design, plans, specifications, 
        estimates, contract awards, and inspection of projects 
        under this title. After receiving any such request, the 
        Secretary shall undertake project review only as 
        requested by the State.
    (d) Responsibilities of the Secretary.--
            (1) In general.--Subject to paragraph (2), nothing 
        in this section, section 133, or section 149 shall 
        affect or discharge any responsibility or obligation of 
        the Secretary under any Federal law other than this 
        title.
            (2) Limitation.--Any responsibility or obligation 
        of the Secretary under sections 113 and 114 of this 
        title shall not be affected and may not be discharged 
        under this section, section 133, or section 149.
    (e) Value Engineering Analysis.--In such cases as the 
Secretary determines advisable, plans, specifications, and 
estimates for proposed projects on any Federal-aid highway 
shall be accompanied by a value engineering or other cost 
reduction analysis.
    (f) Financial Plan.--The Secretary shall require a 
financial plan to be prepared for any project with an estimated 
total cost of $1,000,000,000 or more.
    [(e)] (g) Life-Cycle Cost Analysis.--
            (1) Establishment.--The Secretary shall establish a 
        program to require States to conduct an analysis of the 
        life-cycle costs of each usable project segment on the 
        National Highway System with a cost of $25,000,000 or 
        more.
            (2) Analysis of the life-cycle costs defined.--In 
        this subsection, the term ``analysis of the life-cycle 
        costs'' 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, reconstruction, rehabilitation, restoring, 
        and resurfacing costs, over the life of the project 
        segment.
    [(f)] (h) Value Engineering for NHS.--
            (1) Requirement.--The Secretary shall establish a 
        program to require States to carry out a value 
        engineering analysis for all projects on the National 
        Highway System with an estimated total cost of 
        $25,000,000 or more.
            (2) Value engineering defined.--In this subsection, 
        the term ``value engineering analysis'' means a 
        systematic process of review and analysis of a project 
        during its design phase by a multidisciplined team of 
        persons not involved in the project in order to provide 
        suggestions for reducing the total cost of the project 
        and providing a project of equal or better quality. 
        Such suggestions may include combining or eliminating 
        otherwise inefficient or expensive parts of the 
        original proposed design for the project and total 
        redesign of the proposed project using different 
        technologies, materials, or methods so as to accomplish 
        the original purpose of the project.]

Sec. 107. Acquisition of rights-of-way--Interstate System

    (a) In any case in which the Secretary is requested by a 
State to acquire lands or interests in lands (including within 
the term ``interests in lands'', the control of access thereto 
from adjoining lands) required by such State for right-of-way 
or other purposes in connection with the prosecution of any 
project for the construction, reconstruction, or improvement of 
any section of the Interstate System, the Secretary is 
authorized, in the name of the United States and prior to the 
approval of title by the Attorney General, to acquire, enter 
upon, and take possession of such lands or interests in lands 
by purchase, donation, condemnation, or otherwise in accordance 
with the laws of the United States (including the Act of 
February 26, 1931, 46 Stat. 1421), if--
            (1) the Secretary has determined either that the 
        State is unable to acquire necessary lands or interests 
        in lands, or is unable to acquire such lands or 
        interests in lands with sufficient promptness; and
            (2) the State has agreed with the Secretary to pay, 
        at such time as may be specified by the Secretary an 
        amount equal to 10 per centum of the costs incurred by 
        the Secretary, in acquiring such lands or interests in 
        lands, or such lesser percentage which represents the 
        State's pro rata share of project costs as determined 
        in accordance with subsection (c) of section 120 of 
        this title.
    The authority granted by this section shall also apply to 
lands and interests in lands received as grants of land from 
the United States and owned or held by railroads or other 
corporations.
    (b) The costs incurred by the Secretary in acquiring any 
such lands or interests in lands may include the cost of 
examination and abstract of title, certificate of title, 
advertising, and any fees incidental to such acquisition. All 
costs incurred by the Secretary in connection with the 
acquisition of any such lands or interests in lands shall be 
paid from the funds for construction, reconstruction, or 
improvement of the Interstate System apportioned to the State 
upon the request of which such lands or interests in lands are 
acquired, and any sums paid to the Secretary by such State as 
its share of the costs of acquisition of such lands or 
interests in lands shall be deposited in the Treasury to the 
credit of the appropriation of [Federal-aid highways] the 
Federal-aid highway program and shall be credited to the amount 
apportioned to such State as its apportionment of funds for 
construction, reconstruction, or improvement of the Interstate 
System, or shall be deducted from other moneys due the State 
for reimbursement from funds authorized to be appropriated 
under section 108(b) of the Federal-Aid Highway Act of 1956.
    (c) The Secretary is further authorized and directed by 
proper deed, executed in the name of the United States, to 
convey any such lands or interests in lands acquired in any 
State under the provisions of this section, except the outside 
five feet of any such right-of-way in any State which does not 
provide control of access, to the [State highway 
department]State transportation department of such State or 
such political subdivision thereof as its laws may provide, 
upon such terms and conditions as to such lands or interests in 
lands as may be agreed upon by the Secretary and the [State 
highway department]State transportation department or political 
subdivisions to which the conveyance is to be made. Whenever 
the State makes provision for control of access satisfactory to 
the Secretary, the outside five feet then shall be conveyed to 
the State by the Secretary, as herein provided.
    (d) Whenever rights-of-way, including control of access, on 
the Interstate System are required over lands or interests in 
lands owned by the United States, the Secretary may make such 
arrangements with the agency having jurisdiction over such 
lands as may be necessary to give the State or other person 
constructing the projects on such lands adequate rights-of-way 
and control of access thereto from adjoining lands, and any 
such agency is directed to cooperate with the Secretary in this 
connection.

Sec. 108. [Advance acquisition of rights-of-way] Advance acquisition of 
                    real property

    [(a) For the purpose of facilitating the acquisition of 
rights-of-way on any Federal-aid highway in the most 
expeditious and economical manner, and recognizing that the 
acquisition of rights-of-way requires lengthy planning and 
negotiations if it is to be done at a reasonable cost, the 
Secretary, upon the request of the [State highway 
department]State transportation department, is authorized to 
make available the funds apportioned to any State which may be 
expended on such highway for acquisition of rights-of-way, in 
anticipation of construction and under such rules and 
regulations as the Secretary may prescribe. The agreement 
between the Secretary and the [State highway department]State 
transportation department for the reimbursement of the cost of 
such rights-of-way shall provide for the actual construction of 
a road on such rights-of-way within a period not exceeding 20 
years following the fiscal year in which such request is made 
unless a longer period is determined to be reasonable by the 
Secretary.]
    (a) In General.--
            (1) Availability of funds.--For the purpose of 
        facilitating the timely and economical acquisition of 
        real property for a transportation improvement eligible 
        for funding under this title, the Secretary, upon the 
        request of a State, may make available, for the 
        acquisition of real property, such funds apportioned to 
        the State as may be expended on the transportation 
        improvement, under such rules and regulations as the 
        Secretary may issue.
            (2) Construction.--The agreement between the 
        Secretary and the State for the reimbursement of the 
        cost of the real property shall provide for the actual 
        construction of the transportation improvement within a 
        period not to exceed 20 years following the fiscal year 
        for which the request is made, unless the Secretary 
        determines that a longer period is reasonable.
    (b) Federal participation in the cost of rights-of-way 
acquired under subsection (a) of this section shall not exceed 
the Federal pro rata share applicable to the class of funds 
from which Federal reimbursement is made.
    [(c)(1) There is hereby established in the Treasury of the 
United States a revolving fund to be known as the right-of-way 
revolving fund which shall be administered by the Secretary in 
carrying out the provisions of this subsection. Sums authorized 
to be appropriated to the right-of-way revolving fund shall be 
available for expenditure without regard to the fiscal year for 
which such sums are authorized.
    [(2) For the purpose of acquiring rights-of-way for future 
construction of highways and passenger transit facilities on 
any Federal-aid system and for making payments for the moving 
or relocation of persons, businesses, farms, and other existing 
uses of real property caused by the acquisition of such rights-
of-way, in addition to the authority contained in subsection 
(a) of this section, the Secretary, upon request of a [State 
highway department]State transportation department, is 
authorized to advance funds, without interest, to the State 
from amounts available in the right-of-way revolving fund, in 
accordance with rules and regulations prescribed by the 
Secretary. Funds so advanced may be used to pay the entire 
costs of projects for the acquisition of rights-of-way, 
including the net cost to the State of property management, if 
any, and related moving and relocation payments.
    [(3) Actual construction of a project on rights-of-way, 
with respect to which funds are advanced under this subsection, 
shall be commenced within a period of not less than two years 
nor more than 20 years following the end of the fiscal year in 
which the Secretary approves such advance of funds, unless the 
Secretary, in his discretion, shall provide for an earlier or 
later termination date. Immediately upon the termination of the 
period of time within which actual construction must be 
commenced, in the case of any project where such construction 
is not commenced before such termination, or upon approval by 
the Secretary of the plans, specifications, and estimates for 
such project for the actual construction of a project on 
rights-of-way with respect to which funds are advanced under 
this subsection, whichever shall occur first, the right-of-way 
revolving fund shall be credited with an amount equal to the 
Federal share of the funds advanced, as provided in section 120 
of this title, out of any Federal-aid highway funds apportioned 
to the State in which such project is located and available for 
obligation for projects on the Federal-aid system of which such 
project is to be a part and the State shall reimburse the 
Secretary in an amount equal to the non-Federal share of the 
funds advanced for deposit in, and credit to, the right-of-way 
revolving fund.]
    (c) Termination of Right-of-Way Revolving Fund.--
            (1) In general.--Funds apportioned and advanced to 
        a State by the Secretary from the right-of-way 
        revolving fund established by this section prior to the 
        date of enactment of the Intermodal Surface 
        Transportation Efficiency Act of 1997 shall remain 
        available to the State for use on the projects for 
        which the funds were advanced for a period of 20 years 
        from the date on which the funds were advanced.
            (2) Credit to highway trust fund.--With respect to 
        a project for which funds have been advanced from the 
        right-of-way revolving fund, upon the termination of 
        the 20-year period referred to in paragraph (1), when 
        actual construction is commenced, or upon approval by 
        the Secretary of the plans, specifications, and 
        estimates for the actual construction of the project on 
        the right-of-way, whichever occurs first--
                    (A) the Highway Trust Fund shall be 
                credited with an amount equal to the Federal 
                share of the funds advanced, as provided in 
                section 120, out of any Federal-aid highway 
                funds apportioned to the State in which the 
                project is located and available for obligation 
                for projects of the type funded; and
                    (B) the State shall reimburse the Secretary 
                in an amount equal to the non-Federal share of 
                the funds advanced for deposit in, and credit 
                to, the Highway Trust Fund.
    (d) Early Acquisition of Rights-of-Way.--
            (1) General rule.--Subject to paragraph (2), funds 
        apportioned to a State under this title may be used to 
        participate in the payment of--
                    (A) costs incurred by the State for 
                acquisition of rights-of-way, acquired in 
                advance of any Federal approval or 
                authorization, if the rights-of-way are 
                subsequently incorporated into a project 
                eligible for surface transportation program 
                funds; and
                    (B) costs incurred by the State for the 
                acquisition of land necessary to preserve 
                environmental and scenic values.
            (2) Terms and conditions.--The Federal share 
        payable of the costs described in paragraph (1) shall 
        be eligible for reimbursement out of funds apportioned 
        to a State under this title when the rights-of-way 
        acquired are incorporated into a project eligible for 
        surface transportation program funds, if the State 
        demonstrates to the Secretary and the Secretary finds 
        that--
                    (A) any land acquired, and relocation 
                assistance provided, complied with the Uniform 
                Relocation Assistance and Real Property 
                Acquisition Policies Act of 1970;
                    (B) the requirements of title VI of the 
                Civil Rights Act of 1964 have been complied 
                with;
                    (C) the State has a mandatory comprehensive 
                and coordinated land use, environment, and 
                transportation planning process under State law 
                and the acquisition is certified by the 
                Governor as consistent with the State plans 
                before the acquisition;
                    (D) the acquisition is determined in 
                advance by the Governor to be consistent with 
                the State transportation planning process 
                pursuant to section 135 of this title;
                    (E) the alternative for which the right-of-
                way is acquired is selected by the State 
                pursuant to regulations to be issued by the 
                Secretary which provide for the consideration 
                of the environmental impacts of various 
                alternatives;
                    (F) before the time that the cost incurred 
                by a State is approved for Federal 
                participation, environmental compliance 
                pursuant to the National Environmental Policy 
                Act has been completed for the project for 
                which the right-of-way was acquired by the 
                State, and the acquisition has been approved by 
                the Secretary under this Act, and in compliance 
                with section 303 of title 49, section 7 of the 
                Endangered Species Act, and all other 
                applicable environmental laws shall be 
                identified by the Secretary in regulations; and
                    (G) before the time that the cost incurred 
                by a State is approved for Federal 
                participation, both the Secretary and the 
                Administrator of the Environmental Protection 
                Agency have concurred that the property 
                acquired in advance of Federal approval or 
                authorization did not influence the 
                environmental assessment of the project, the 
                decision relative to the need to construct the 
                project, or the selection of the project design 
                or location.

Sec. 109. Standards

    [(a) In General.--The Secretary shall ensure that the plans 
and specifications for each proposed highway project under this 
chapter provide for a facility that will--
            [(1) adequately serve the existing and planned 
        future traffic of the highway in a manner that is 
        conducive to safety, durability, and economy of 
        maintenance; and
            [(2) be designed and constructed in accordance with 
        criteria best suited to accomplish the objectives 
        described in paragraph (1) and to conform to the 
        particular needs of each locality.]
    (a) In General.--
            (1) Requirements for facilities.--The Secretary 
        shall ensure that the plans and specifications for each 
        proposed highway project under this chapter provide for 
        a facility that will--
                    (A) adequately serve the existing traffic 
                of the highway in a manner that is conducive to 
                safety, durability, and economy of maintenance; 
                and
                    (B) be designed and constructed in 
                accordance with criteria best suited to 
                accomplish the objectives described in 
                subparagraph (A) and to conform to the 
                particular needs of each locality.
            (2) Consideration of planned future traffic 
        demands.--In carrying out paragraph (1), the Secretary 
        shall ensure the consideration of the planned future 
        traffic demands of the facility.
    (b) The geometric and construction standards to be adopted 
for the Interstate System shall be those approved by the 
Secretary in cooperation with the [State highway 
departments]State transportation departments. Such standards, 
as applied to each actual construction project, shall be 
adequate to enable such project to accommodate the types and 
volumes of traffic anticipated for such project for the twenty-
year period commencing on the date of approval by the 
Secretary, under section 106 of this title, of the plans, 
specifications, and estimates for actual construction of such 
project. Such standards shall in all cases provide for at least 
four lanes of traffic. The right-of-way width of the Interstate 
System shall be adequate to permit construction of projects on 
the Interstate System to such standards. The Secretary shall 
apply such standards uniformly throughout all the States.
    (c) Design Criteria for National Highway System.--
            (1) In general.--A design for new construction, 
        reconstruction, resurfacing (except for maintenance 
        resurfacing), restoration, or rehabilitation of a 
        highway on the National Highway System (other than a 
        highway also on the Interstate System) may take into 
        account, in addition to the criteria described in 
        subsection (a)--
                    (A) the constructed and natural environment 
                of the area;
                    (B) the environmental, scenic, aesthetic, 
                historic, community, and preservation impacts 
                of the activity; and
                    (C) access for other modes of 
                transportation.
            (2) Development of criteria.--The Secretary, in 
        cooperation with [State highway departments]State 
        transportation departments, may develop criteria to 
        implement paragraph (1). In developing criteria under 
        this paragraph, the Secretary shall consider the 
        results of the committee process of the American 
        Association of State Highway and Transportation 
        Officials as used in adopting and publishing ``A Policy 
        on Geometric Design of Highways and Streets'', 
        including comments submitted by interested parties as 
        part of such process.
    (d) On any highway project in which Federal funds hereafter 
participate, or on any such project constructed since December 
20, 1944, the location, form and character of informational, 
regulatory and warning signs, curb and pavement or other 
markings, and traffic signals installed or placed by any public 
authority or other agency, shall be subject to the approval of 
the [State highway department]State transportation department 
with the concurrence of the Secretary, who is directed to 
concur only in such installations as will promote the safe and 
efficient utilization of the highways.
    (e) No funds shall be approved for expenditure on any 
Federal-aid highway, or highway affected under chapter 2 of 
this title, unless proper safety protective devices complying 
with safety standards determined by the Secretary at that time 
as being adequate shall be installed or be in operation at any 
highway and railroad grade crossing or drawbridge on that 
portion of the highway with respect to which such expenditures 
are to be made.
    (f) The Secretary shall not, as a condition precedent to 
his approval under section 106 of this title, require any State 
to acquire title to, or control of, any marginal land along the 
proposed highway in addition to that reasonably necessary for 
road surfaces, median strips, bikeways, gutters, ditches, and 
side slopes, and of sufficient width to provide service roads 
to adjacent property to permit safe access at controlled 
locations in order to expedite traffic, promote safety, and 
minimize roadside parking.
    (g) The Secretary shall issue within 30 days after the day 
of enactment of the Federal-Aid Highway Act of 1970 guidelines 
for minimizing possible soil erosion from highway construction. 
Such guidelines shall apply to all proposed projects with 
respect to which plans, specifications, and estimates are 
approved by the Secretary after the issuance of such 
guidelines.
    (h) Not later than July 1, 1972, the Secretary, after 
consultation with appropriate Federal and State officials, 
shall submit to Congress, and not later than 90 days after such 
submission, promulgate guidelines designed to assure that 
possible adverse economic, social, and environmental effects 
relating to any proposed project on any Federal-aid system have 
been fully considered in developing such project, and that the 
final decision on the project are made in the best overall 
public interest, taking into consideration the need for fast, 
safe and efficient transportation, public services, and the 
costs of eliminating or minimizing such adverse effects and the 
following:
            (1) air, noise, and water pollution;
            (2) destruction or disruption of man-made and 
        natural resources, aesthetic values, community cohesion 
        and the availability of public facilities and services;
            (3) adverse employment effects, and tax and 
        property values losses;
            (4) injurious displacement of people, businesses 
        and farms; and
            (5) disruption of desirable community and regional 
        growth.
Such guidelines shall apply to all proposed projects with 
respect to which plans, specifications, and estimates are 
approved by the Secretary after the issuance of such 
guidelines.
    (i) The Secretary, after consultation with appropriate 
Federal, State, and local officials, shall develop and 
promulgate standards for highway noise levels compatible with 
different land uses and after July 1, 1972, shall not approve 
plans and specifications for any proposed project on any 
Federal-aid system for which location approval has not yet been 
secured unless he determines that such plans and specifications 
include adequate measures to implement the appropriate noise 
level standards. The Secretary, after consultation with the 
Administrator of the Environmental Protection Agency and 
appropriate Federal, State, and local officials, may promulgate 
standards for the control of highway noise levels for highways 
in any Federal-aid system for which project approval has been 
secured prior to July 1, 1972. The Secretary may approve any 
project on a Federal-aid system to which noise-level standards 
are made applicable under the preceding sentence for the 
purpose of carrying out such standards. Such project may 
include, but is not limited to, the acquisition of additional 
rights-of-way, the construction of physical barriers, and 
landscaping. Sums apportioned for the Federal-aid system on 
which such project will be located shall be available to 
finance the Federal share of such project. Such project shall 
be deemed a highway project for all purposes of this title.
    (j) The Secretary, after consultation with the 
Administrator of the Environmental Protection Agency, shall 
develop and promulgate guidelines to assure that highways 
constructed pursuant to this title are consistent with any 
approved plan for--
            (1) the implementation of a national ambient air 
        quality standard for each pollutant for which an area 
        is designated as a nonattainment area under section 
        107(d) of the Clean Air Act (42 U.S.C. 7407(d)); or
            (2) the maintenance of a national ambient air 
        quality standard in an area that was designated as a 
        nonattainment area but that was later redesignated by 
        the Administrator as an attainment area for the 
        standard and that is required to develop a maintenance 
        plan under section 175A of the Clean Air Act (42 U.S.C. 
        7505a).
    (k) The Secretary shall not approve any project involving 
approaches to a bridge under this title, if such project and 
bridge will significantly affect the traffic volume and the 
highway system of a contiguous State without first taking into 
full consideration the views of that State.
    (l)(1) In determining whether any right-of-way on any 
Federal-aid highway should be used for accommodating any 
utility facility, the Secretary shall--
            (A) first ascertain the effect such use will have 
        on highway and traffic safety, since in no case shall 
        any use be authorized or otherwise permitted, under 
        this or any other provision of law, which would 
        adversely affect safety;
            (B) evaluate the direct and indirect environmental 
        and economic effects of any loss of productive 
        agricultural land or any impairment of the productivity 
        of any agricultural land which would result from the 
        disapproval of the use of such right-of-way for the 
        accommodation of such utility facility; and
            (C) consider such environmental and economic 
        effects together with any interference with or 
        impairment of the use of the highway in such right-of-
        way which would result from the use of such right-of-
        way for the accommodation of such utility facility.
    (2) For the purpose of this subsection--
            (A) the term ``utility facility'' means any 
        privately, publicly, or cooperatively owned line, 
        facility, or system for producing, transmitting, or 
        distributing communications, power, electricity, light, 
        heat, gas, oil, crude products, water, steam, waste, 
        storm water not connected with highway drainage, or any 
        other similar commodity, including any fire or police 
        signal system or street lighting system, which directly 
        or indirectly serves the public; and
            (B) the term ``right-of-way'' means any real 
        property, or interest therein, acquired, dedicated, or 
        reserved for the construction, operation, and 
        maintenance of a highway.
    [(m) The Secretary shall issue guidelines describing the 
criteria applicable to the Interstate System in order to insure 
that the condition of these routes is maintained at the level 
required by the purposes for which they were designed. The 
initial guidelines shall be issued no later than October 1, 
1979.]
    [(n)] (m) The Secretary shall not approve any project under 
this title that will result in the severance or destruction of 
an existing major route for nonmotorized transportation traffic 
and light motorcycles, unless such project provides a 
reasonably alternate route or such a route exists.
    [(o)] (n) It is the intent of Congress that any project for 
resurfacing, restoring, or rehabilitating any highway, other 
than a highway access to which is fully controlled, in which 
Federal funds participate shall be constructed in accordance 
with standards to preserve and extend the service life of 
highways and enhance highway safety.
    [(p)] (o) Compliance With State Laws for Non-NHS 
Projects.--Projects (other than highway projects on the 
National Highway System) shall be designed, constructed, 
operated, and maintained in accordance with State laws, 
regulations, directives, safety standards, design standards, 
and construction standards.
    [(q)] (p) Scenic and Historic Values.--Notwithstanding 
subsections (b) and (c), the Secretary may approve a project 
for the National Highway System if the project is designed to--
            (1) allow for the preservation of environmental, 
        scenic, or historic values;
            (2) ensure safe use of the facility; and
            (3) comply with subsection (a).
    (q) Phase Construction.--Safety considerations for a 
project under this title may be met by phase construction.

[Sec. 110. Project agreements

    [(a) As soon as practicable after the plans, 
specifications, and estimates for a specific project have been 
approved, the Secretary shall enter into a formal project 
agreement with the [State highway department]State 
transportation department concerning the construction and 
maintenance of such project. Such project agreement shall make 
provision for State funds required for the State's pro rata 
share of the cost of construction of such project and for the 
maintenance thereof after completion of construction.
    [(b) The Secretary may rely upon representations made by 
the [State highway department]State transportation department 
with respect to the arrangements or agreements made by the 
[State highway department]State transportation department and 
appropriate local officials where a part of the project is to 
be constructed at the expense of, or in cooperation with, local 
subdivisions of the State.]

Sec. 110. Repealed

Sec. 111. Agreements relating to use of and access to rights-of-way--
                    Interstate System

    (a) In General.--All agreements between the Secretary and 
the [State highway department]State transportation department 
for the construction of projects on the Interstate System shall 
contain a clause providing that the State will not add any 
points of access to, or exit from, the project in addition to 
those approved by the Secretary in the plans for such project, 
without the prior approval of the Secretary. Such agreements 
shall also contain a clause providing that the State will not 
permit automotive service stations or other commercial 
establishments for serving motor vehicle users to be 
constructed or located on the rights-of-way of the Interstate 
System. Such agreements may, however, authorize a State or 
political subdivision thereof to use or permit the use of the 
airspace above and below the established grade line of the 
highway pavement for such purposes as will not impair the full 
use and safety of the highway, as will not require or permit 
vehicular access to such space directly from such established 
grade line of the highway, or otherwise interfere in any way 
with the free flow of traffic on the Interstate System. Nothing 
in this section, or in any agreement entered into under this 
section, shall require the discontinuance, obstruction, or 
removal of any establishment for serving motor vehicle users on 
any highway which has been, or is hereafter, designated as a 
highway or route on the Interstate System (1) if such 
establishment (A) was in existence before January 1, 1960, (B) 
is owned by a State, and (C) is operated through 
concessionaries or otherwise, and (2) if all access to, and 
exits from, such establishment conform to the standards 
established for such a highway under this title.
    (b) Vending Machines.--Notwithstanding subsection (a), any 
State may permit the placement of vending machines in rest and 
recreation areas, and in safety rest areas, constructed or 
located on rights-of-way of the Interstate System in such 
State. Such vending machines may only dispense such food, 
drink, and other articles as the [State highway 
department]State transportation department determines are 
appropriate and desirable. Such vending machines may only be 
operated by the State. In permitting the placement of vending 
machines, the State shall give priority to vending machines 
which are operated through the State licensing agency 
designated pursuant to section 2(a)(5) of the Act of June 20, 
1936, commonly known as the ``Randolph-Sheppard Act'' (20 
U.S.C. 107a(a)(5)). The costs of installation, operation, and 
maintenance of vending machines shall not be eligible for 
Federal assistance under this title.
    (c) Motorist Call Boxes.--
            (1) In general.--Notwithstanding subsection (a), a 
        State may permit the placement of motorist call boxes 
        on rights-of-way of the National Highway System. Such 
        motorist call boxes may include the identification and 
        sponsorship logos of such call boxes.
            (2) Sponsorship logos.--
                    (A) Approval by state and local agencies.--
                All call box installations displaying 
                sponsorship logos under this subsection shall 
                be approved by the highway agencies having 
                jurisdiction of the highway on which they are 
                located.
                    (B) Size on box.--A sponsorship logo may be 
                placed on the call box in a dimension not to 
                exceed the size of the call box or a total 
                dimension in excess of 12 inches by 18 inches.
                    (C) Size on identification sign.--
                Sponsorship logos in a dimension not to exceed 
                12 inches by 30 inches may be displayed on a 
                call box identification sign affixed to the 
                call box post.
                    (D) Spacing of signs.--Sponsorship logos 
                affixed to an identification sign on a call box 
                post may be located on the rights-of-way at 
                intervals not more frequently than 1 per every 
                5 miles.
                    (E) Distribution throughout state.--Within 
                a State, at least 20 percent of the call boxes 
                displaying sponsorship logos shall be located 
                on highways outside of urbanized areas with a 
                population greater than 50,000.
            (3) Nonsafety hazards.--The call boxes and their 
        location, posts, foundations, and mountings shall be 
        consistent with requirements of the Manual on Uniform 
        Traffic Control Devices or any requirements deemed 
        necessary by the Secretary to assure that the call 
        boxes shall not be a safety hazard to motorists.

Sec. 112. Letting of contracts

    (a) In all cases where the construction is to be performed 
by the [State highway department]State transportation 
department or under its supervision, a request for submission 
of bids shall be made by advertisement unless some other method 
is approved by the Secretary. The Secretary shall require such 
plans and specifications and such methods of bidding as shall 
be effective in securing competition.
    (b) Bidding Requirements.--
            (1) In general.--Subject to [paragraph (2)] 
        paragraphs (2) and (3), construction of each project, 
        subject to the provisions of subsection (a) of this 
        section, shall be performed by contract awarded by 
        competitive bidding, unless the [State highway 
        department]State transportation department 
        demonstrates, to the satisfaction of the Secretary, 
        that some other method is more cost effective or that 
        an emergency exists. Contracts for the construction of 
        each project shall be awarded only on the basis of the 
        lowest responsive bid submitted by a bidder meeting 
        established criteria of responsibility. No requirement 
        or obligation shall be imposed as a condition precedent 
        to the award of a contract to such bidder for a 
        project, or to the Secretary's concurrence in the award 
        of a contract to such bidder, unless such requirement 
        or obligation is otherwise lawful and is specifically 
        set forth in the advertised specifications.
            (2) Contracting for engineering and design 
        services.--
                    (A) General rule.--[Each] Subject to 
                paragraph (3), each contract for program 
                management, construction management, 
                feasibility studies, preliminary engineering, 
                design, engineering, surveying, mapping, or 
                architectural related services with respect to 
                a project subject to the provisions of 
                subsection (a) of this section shall be awarded 
                in the same manner as a contract for 
                architectural and engineering services is 
                negotiated under title IX of the Federal 
                Property and Administrative Services Act of 
                1949 or equivalent State qualifications-based 
                requirements.
                    (B) Applicability.--
                            (i) In a complying state.--If, on 
                        the date of the enactment of this 
                        paragraph, the services described in 
                        subparagraph (A) may be awarded in a 
                        State in the manner described in 
                        subparagraph (A), subparagraph (A) 
                        shall apply in such State beginning on 
                        such date of enactment[, except to the 
                        extent that such State adopts by 
                        statute a formal procedure for the 
                        procurement of such services].
                            (ii) In a noncomplying state.--In 
                        the case of any other State, 
                        subparagraph (A) shall apply in such 
                        State beginning on the earlier of (I) 
                        August 1, 1989, or (II) the 10th day 
                        following the close of the 1st regular 
                        session of the legislature of a State 
                        which begins after the date of the 
                        enactment of this paragraph, except to 
                        the extent that such State adopts or 
                        has adopted by statute a formal 
                        procedure for the procurement of the 
                        services described in subparagraph (A).
                    [(C) Performance and audits.--Any contract 
                or subcontract awarded in accordance with 
                subparagraph (A), whether funded in whole or in 
                part with Federal-aid highway funds, shall be 
                performed and audited in compliance with cost 
                principles contained in the Federal Acquisition 
                Regulations of part 31 of title 48, Code of 
                Federal Regulations.]
                    (C) Selection, performance, and audits.--
                            (i) In general.--All requirements 
                        for architectural, engineering, and 
                        related services at any phase of a 
                        highway project funded in whole or in 
                        part with Federal-aid highway funds 
                        shall be performed by a contract 
                        awarded in accordance with subparagraph 
                        (A).
                            (ii) Prohibition on state 
                        restriction.--A State shall not impose 
                        any overhead restriction that would 
                        preclude any qualified firm from being 
                        eligible to compete for contracts 
                        awarded in accordance with subparagraph 
                        (A).
                            (iii) Compliance with federal 
                        acquisition regulations.--The process 
                        for selection, award, performance, 
                        administration, and audit of the 
                        resulting contracts shall comply with 
                        the cost principles and cost accounting 
                        principles of the Federal Acquisition 
                        Regulations, including parts 30, 31, 
                        and 36 of the Regulations.''; and
            (3) by adding at the end the following:
                    (H) Compliance.--
                            (i) In general.--A State shall 
                        comply with the qualifications-based 
                        selection process, contracting based on 
                        the Federal Acquisition Regulations, 
                        and the single audit procedures 
                        required under this paragraph, or with 
                        an existing State law or a statute 
                        enacted in accordance with the 
                        legislative session exemption under 
                        subparagraph (G), with respect to any 
                        architecture, engineering, or related 
                        service contract for any phase of a 
                        Federal-aid highway project.
                            (ii) States with alternative 
                        process.--Any State that, after 
                        November 28, 1995, enacted legislation 
                        to establish an alternative State 
                        process as a substitute for the 
                        contract administration and audit 
                        procedures required under this 
                        paragraph or was granted a waiver under 
                        subparagraph (G) shall submit the 
                        legislation to the Secretary, not later 
                        than 60 days after the date of 
                        enactment of this subparagraph, for 
                        certification that the State 
                        legislation is in compliance with the 
                        statutory timetable and substantive 
                        criteria specified in subparagraph (G).
                    (D) Indirect cost rates.--Instead of 
                performing its own audits, a recipient of funds 
                under a contract or subcontract awarded in 
                accordance with subparagraph (A) shall accept 
                indirect cost rates established in accordance 
                with the Federal Acquisition Regulations for 1-
                year applicable accounting periods by a 
                cognizant Federal or State government agency, 
                if such rates are not currently under dispute.
                    (E) Application of rates.--Once a firm's 
                indirect cost rates are accepted under this 
                paragraph, the recipient of the funds shall 
                apply such rates for the purposes of contract 
                estimation, negotiation, administration, 
                reporting, and contract payment and shall not 
                be limited by administrative or de facto 
                ceilings of any kind.
                    (F) Prenotification; confidentiality of 
                data.--A recipient of funds requesting or using 
                the cost and rate data described in 
                subparagraph (E) shall notify any affected firm 
                before such request or use. Such data shall be 
                confidential and shall not be accessible or 
                provided, in whole or in part, to another firm 
                or to any government agency which is not part 
                of the group of agencies sharing cost data 
                under this paragraph, except by written 
                permission of the audited firm. If prohibited 
                by law, such cost and rate data shall not be 
                disclosed under any circumstances.
                    (G) State option.--Subparagraphs (C), (D), 
                (E), and (F) shall take effect 1 year after the 
                date of the enactment of this subparagraph; 
                except that if a State, during such 1-year 
                period, adopts by statute an alternative 
                process intended to promote engineering and 
                design quality and ensure maximum competition 
                by professional companies of all sizes 
                providing engineering and design services, such 
                subparagraphs shall not apply with respect to 
                the State. If the Secretary determines that the 
                legislature of the State did not convene and 
                adjourn a full regular session during such 1-
                year period, the Secretary may extend such 1-
                year period until the adjournment of the next 
                regular session of the legislature.
            (3) Design-build contracting.--
                    (A) In general.--A State transportation 
                department may award a contract for the design 
                and construction of a qualified project 
                described in subparagraph (B) using competitive 
                selection procedures approved by the Secretary.
                    (B) Qualified projects.--A qualified 
                project referred to in subparagraph (A) is a 
                project under this chapter that involves 
                installation of an intelligent transportation 
                system or that consists of a usable project 
                segment and for which--
                            (i) the Secretary has approved the 
                        use of design-build contracting 
                        described in subparagraph (A) under 
                        criteria specified in regulations 
                        promulgated by the Secretary; and
                            (ii) the total costs are estimated 
                        to exceed--
                                    (I) in the case of a 
                                project that involves 
                                installation of an intelligent 
                                transportation system, 
                                $5,000,000; and
                                    (II) in the case of a 
                                usable project segment, 
                                $50,000,000.
    (c) The Secretary shall require as a condition precedent to 
his approval of each contract awarded by competitive bidding 
pursuant to subsection (b) of this section, and subject to the 
provisions of this section, a sworn statement, executed by, or 
on behalf of, the person, firm, association, or corporation to 
whom such contract is to be awarded, certifying that such 
person, firm, association, or corporation has not, either 
directly or indirectly, entered into any agreement, 
participated in any collusion, or otherwise taken any action in 
restraint of free competitive bidding in connection with such 
contract.
    (d) No contract awarded by competitive bidding pursuant to 
subsection (b) of this section, and subject to the provisions 
of this section, shall be entered into by any [State highway 
department]State transportation department or local subdivision 
of the State without compliance with the provisions of this 
section, and without the prior concurrence of the Secretary in 
the award thereof.
    (e) Standardized Contract Clause Concerning Site 
Conditions.--
            (1) General rule.--The Secretary shall issue 
        regulations establishing and requiring, for inclusion 
        in each contract entered into with respect to any 
        project approved under section 106 of this title a 
        contract clause, developed in accordance with 
        guidelines established by the Secretary, which 
        equitably addresses each of the following:
                    (A) Site conditions.
                    (B) Suspensions of work ordered by the 
                State (other than a suspension of work caused 
                by the fault of the contractor or by weather).
                    (C) Material changes in the scope of work 
                specified in the contract.
        The guidelines established by the Secretary shall not 
        require arbitration.
            (2) Limitation on applicability.--Paragraph (1) 
        shall apply in a State except to the extent that such 
        State adopts or has adopted by statute a formal 
        procedure for the development of a contract clause 
        described in paragraph (1) or adopts or has adopted a 
        statute which does not permit inclusion of such a 
        contract clause.
    [(f) The provisions of this section shall not be applicable 
to contracts for projects on the Federal-aid secondary system 
in those States where the Secretary has discharged his 
responsibility pursuant to section 117 of this title, except 
where employees of a political subdivision of a State are 
working on a project outside of such political subdivision.]
    (f) Competitive Bidding Defined.--In this section, the term 
``competitive bidding'' means the procedures used to award 
contracts for engineering and design services under subsection 
(b)(2) and design-build contracts under subsection (b)(3).

Sec. 113. Prevailing rate of wage

    (a) The Secretary shall take such action as may be 
necessary to insure that all laborers and mechanics employed by 
contractors or subcontractors on the construction work 
performed on highway projects on the Federal-aid highways 
authorized under the highway laws providing for the expenditure 
of Federal funds upon the Federal-aid systems, shall be paid 
wages at rates not less than those prevailing on the same type 
of work on similar construction in the immediate locality as 
determined by the Secretary of Labor in accordance with the Act 
of March 3, 1931, known as the Davis-Bacon Act (40 U.S.C. 
276a).
    (b) In carrying out the duties of subsection (a) of this 
section, the Secretary of Labor shall consult with the highway 
department of the State in which a project on any of the 
Federal-aid systems is to be performed. After giving due regard 
to the information thus obtained, he shall make a 
predetermination of the minimum wages to be paid laborers and 
mechanics in accordance with the provisions of subsection (a) 
of this section which shall be set out in each project 
advertisement for bids and in each bid proposal form and shall 
be made a part of the contract covering the project.
    (c) The provisions of the section shall not be applicable 
to employment pursuant to apprenticeship and skill training 
programs which have been certified by the Secretary of 
Transportation as promoting equal employment opportunity in 
connection with Federal-aid highway construction programs.

Sec. 114. Construction

    (a) Construction Work In General.--The construction of any 
highways or portions of highways located on a Federal-aid 
system shall be undertaken by the respective [State highway 
departments]State transportation departments or under their 
direct supervision. Except as provided in [section 117 of this 
title] section 106, such construction shall be subject to the 
inspection and approval of the Secretary. The construction work 
and labor in each State shall be performed under the direct 
supervision of the [State highway department]State 
transportation department and in accordance with the laws of 
that State and applicable Federal laws. Construction may be 
begun as soon as funds are available for expenditure pursuant 
to subsection (a) of section 118 of this title. After July 1, 
1973, the [State highway department]State transportation 
department shall not erect on any project where actual 
construction is in progress and visible to highway users any 
informational signs other than official traffic control devices 
conforming with standards developed by the Secretary of 
Transportation.
      (b) Convict Labor and Convict Produced Materials.--
            (1) Limitation on convict labor.--Convict labor 
        shall not be used if construction of highways or 
        portions of highways located on a Federal-aid system 
        unless it is labor performed by convicts who are on 
        parole, supervised release, or probation.
            (2) Limitation on convict produced materials.--
        Materials produced after July 1, 1991, by convict labor 
        may only be used in such construction--
                    (A) if such materials are produced by 
                convicts who are on parole, supervised release, 
                or probation from a prison; or
                    (B) if such materials are produced by 
                convicts in a qualified prison facility and the 
                amount of such materials produced in such 
                facility for use in such construction during 
                any 12-month period does not exceed the amount 
                of such materials produced in such facility for 
                use in such construction during the 12-month 
                period ending July 1, 1987.
            (3) Qualified prison facility defined.--As used in 
        this subsection, ``qualified prison facility'' means 
        any prison facility in which convicts, during the 12-
        month period ending July 1, 1987, produced materials 
        for use in construction of highways or portions of 
        highways located on a Federal-aid system.

Sec. 115. Advance construction

    (a) [Substitute,] Congestion Mitigation and Air Quality 
Improvement, Surface Transportation, Bridge, Planning, and 
Research Projects.--
            (1) General rule.--Subject to paragraph (2), when a 
        State--
                    (A)(i) has obligated all funds apportioned 
                or allocated to it under section [103(e)(4)(H), 
                104(b)(2), 104(b)(3), 104(f), 144] 
                104(b)(1)(B), 104(b)(2), 104(b)(3), 104(f), [or 
                307] or 505 of this title, or
                    (ii) has used or demonstrates that it will 
                use all obligation authority allocated to it 
                for Federal-aid highways and highway safety 
                construction, and
                    (B) proceeds with a project funded under 
                such an apportionment or allocation without the 
                aid of Federal funds in accordance with all 
                procedures and all requirements applicable to 
                such a project, except insofar as such 
                procedures and requirements limit the State to 
                implementation of projects with the aid of 
                Federal funds previously apportioned or 
                allocated to it or limit a State to 
                implementation of a project with obligation 
                authority previously allocated to it for 
                Federal-aid highways and highway safety 
                construction,
        the Secretary, upon approval of an application of the 
        State, is authorized to pay to the State the Federal 
        share of the cost of the project when additional funds 
        are apportioned or allocated to the State under such 
        section or when additional obligation authority is 
        allocated to it.
            (2) Plans, specifications, and applicable 
        standards.--The Secretary may only make payments to a 
        State with respect to a project if--
                    (A) prior to commencement of the project 
                the Secretary approves the project in the same 
                manner as the Secretary approves other 
                projects, and
                    (B) the project conforms to the applicable 
                standards under this title.
    (b) Interstate and National Highway System [Projects].--
            (1) [In general.--When a State] Projects.--When a 
        State proceeds to construct any project on the National 
        Highway System or the Interstate System without the aid 
        of Federal funds in accordance with all procedures and 
        all requirements applicable to such a project, except 
        insofar as such procedures and requirements limit the 
        State to the construction of projects with the aid of 
        Federal funds previously apportioned to it, the 
        Secretary, upon approval of application of the State, 
        is authorized to pay to the State the Federal share of 
        the cost of construction of the project when additional 
        funds are apportioned to the State under section 
        104(b)(1) [or 104(b)(5), as the case may be,] if--
            [(A)] (1) prior to the construction of the project 
        the Secretary approves the plans and specifications 
        therefor in the same manner as other projects, and
            [(2) Bond interest for projects under construction 
        on January 1, 1983.--For any project under construction 
        on January 1, 1983, on the Interstate System and 
        converted to a regularly funded project after January 
        1, 1983, for which the proceeds of bonds issued by the 
        State, county, city, or other political subdivision of 
        the State were used, any interest earned and payable on 
        such bonds by the date of conversion is an eligible 
        cost of construction, to the extent that the proceeds 
        of such bonds have actually been expended in the 
        construction of such projects.]
            [(B)] (2) the project conforms to the applicable 
        standards under section 109 of this title.
            [(3) Bond interest.--Subject to the provisions of 
        this paragraph, the cost of construction of a project, 
        the Federal share of which the Secretary is authorized 
        to pay under this subsection, shall include the amount 
        of any interest earned and payable on bonds issued by 
        the State to the extent that the proceeds of such bonds 
        have actually been expended in the construction of such 
        project. In no event shall the amount of interest 
        considered as a cost of construction of a project under 
        the preceding sentence be greater than the excess of 
        (A) the amount which would be the estimated cost of 
        construction of the project if the project were to be 
        constructed at the time the project is converted to a 
        regularly funded project, over (B) the actual cost of 
        construction of such project (not including such 
        interest). The Secretary shall consider changes in 
        construction cost indices in determining the amount 
        under clause (A) of this paragraph.]
    [(c) Completion of Projects.--In determining the 
apportionment for any fiscal year under the provisions of 
section 103(e)(4), 104, 134, [144] or 307 of this title, any 
such project constructed by a State without the aid of Federal 
funds shall not be considered completed until an application 
under the provisions of this section with respect to such 
project has been approved by the Secretary.]
    [(d)] ((c) Inclusion in Transportation Improvement 
Program.--The Secretary may approve an application for a 
project under this section only if the project is included in 
the transportation improvement program of the State developed 
under [section 135(f)] section 135.

Sec. 116. Maintenance

    (a) It shall be the duty of the [State highway 
department]State transportation department to maintain, or 
cause to be maintained, any project constructed under the 
provisions of this chapter or constructed under the provisions 
of prior Acts. [The State's obligation to the United States to 
maintain any such project shall cease when it no longer 
constitutes a part of a Federal-aid system.]
    [(b) In any State wherein the [State highway 
department]State transportation department is without legal 
authority to maintain a project constructed on the Federal-aid 
secondary system, or within a municipality, such highway 
department shall enter into a formal agreement for its 
maintenance with the appropriate officials of the county or 
municipality in which such project is located.]
    [(c)] (b) If at any time [he] the Secretary shall find that 
any project constructed under the provisions of this chapter, 
or constructed under the provisions of prior Acts, is not being 
properly maintained, [he] the Secretary shall call such fact to 
the attention of the [State highway department]State 
transportation department. If, within ninety days after receipt 
of such notice, such project has not been put in proper 
condition of maintenance, the Secretary shall withhold approval 
of [further projects] further expenditure of Federal-aid 
highway program funds of all types in the State highway 
district, municipality, county, other political or 
administrative subdivision of the State, or the entire State in 
which such project is located, whichever the Secretary deems 
most appropriate, until such project shall have been put in 
proper condition of maintenance.
    [(d)] (c) Preventive Maintenance.--A preventive maintenance 
activity shall be eligible for Federal assistance under this 
title if the State demonstrates to the satisfaction of the 
Secretary that the activity is a cost-effective means of 
extending the useful life of a Federal-aid highway.

[Sec. 117. Certification acceptance

    [(a) The Secretary may discharge any of his 
responsibilities under this title relative to projects under 
this chapter, except projects on the Interstate System, upon 
the request of any State, by accepting a certification by the 
[State highway department]State transportation department, or 
that department, commission, board, or official of any State 
charged by its laws with the responsibility for highway or 
other transportation construction, of its performance of such 
responsibilities, if he finds such projects will be carried out 
in accordance with State laws, regulations, directives, and 
standards which will accomplish the policies and objectives 
contained in or issued pursuant to this title.
    [(b) The Secretary may accept projects based on inspections 
of a type and frequency necessary to ensure the projects are 
completed in accordance with appropriate standards.
    [(c) The procedure authorized by this section shall be an 
alternative to that otherwise prescribed in this title. The 
Secretary shall promulgate such guidelines and regulations as 
may be necessary to carry out this section.
    [(d) Acceptance by the Secretary of a State's certification 
under this section may be rescinded by the Secretary at any 
time if, in his opinion, it is necessary to do.
    [(e) Nothing in this section, section 106(b), section 133, 
and section 149 shall affect or discharge any responsibility or 
obligation of the Secretary under any Federal law, including 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321, 
et seq.), section 303 of title 49, title VI of the Civil Rights 
Act of 1964 (42 U.S.C. 2000(d), et seq.), title VIII of the Act 
of April 11, 1968 (Public Law 90-284, 42 U.S.C. 3601 et seq.), 
and the Uniform Relocation Assistance and Land Acquisition 
Policies Act of 1970 (42 U.S.C. 4601, et seq.), other than this 
title.
    [(f)(1) In the case of the Federal-aid secondary system, in 
lieu of discharging his responsibilities in accordance with 
subsections (a) through (d) of this section, the Secretary may, 
upon the request of any [State highway department]State 
transportation department, discharge his responsibility 
relative to the plans, specifications, estimates, surveys, 
contract awards, design, inspection, and construction of all 
projects on the Federal-aid secondary system by his receiving 
and approving a certified statement by the [State highway 
department]State transportation department setting forth that 
the plans, design, and construction for each such project are 
in accord with those standards and procedures which (A) were 
adopted by such [State highway department]State transportation 
department, (B) were applicable to projects in this category, 
and (C) were approved by him.
    [(2) The Secretary shall not approve such standards and 
procedures unless they are in accordance with the provisions of 
subsection (b) of section 105, subsection (b) of section 106, 
and subsection (c) of section 109 of this title.
    [(3) Paragraphs (1) and (2) of this subsection shall not be 
construed to relieve the Secretary of his obligation to make a 
final inspection of each project after construction and to 
require an adequate showing of the estimated cost of 
construction and the actual cost of construction.]

Sec. 117. Repealed.

Sec. 118. Availability of funds

    (a) Date Available for Obligation.--Except as otherwise 
specifically provided, authorizations from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out this 
title shall be available for obligation on the date of their 
apportionment or allocation or on October 1 of the fiscal year 
for which they are authorized, whichever occurs first.
    (b) Period of Availability; Discretionary Projects.--
            (1) Interstate construction funds.--Funds 
        apportioned or allocated for Interstate construction in 
        a State (other than Massachusetts) shall remain 
        available for obligation in that State until the last 
        day of the fiscal year in which they are apportioned or 
        allocated. Sums not obligated by the last day of the 
        fiscal year in which they are apportioned or allocated 
        shall be allocated to other States, except 
        Massachusetts, at the discretion of the Secretary. All 
        sums apportioned or allocated on or after October 1, 
        1994, shall remain available in the State until 
        expended. All sums apportioned or allocated to 
        Massachusetts on or after October 1, 1989, shall remain 
        available until expended.
            (2) Other funds.--Except as otherwise specifically 
        provided, funds apportioned or allocated pursuant to 
        this title (other than for Interstate construction) in 
        a State shall remain available for obligation in that 
        State for a period of 3 years after the last day of the 
        fiscal year for which the funds are authorized. Any 
        amounts so apportioned or allocated that remain 
        unobligated at the end of that period shall lapse.
      [(c) Set Asides for Interstate Discretionary Projects.--
            [(1) Set aside for construction projects.--Before 
        any apportionment is made under section 104(b)(5)(A) of 
        this title for a fiscal year beginning after September 
        30, 1992, the Secretary shall set aside $100,000,000. 
        Subject to section 149(d) of the Federal-Aid Highway 
        Act of 1987, such amount shall be available only for 
        obligation by the Secretary in accordance with 
        subsection (b)(2) of this section.
            [(2) Set aside for 4r projects.--
                    [(A) In general.--Before any apportionment 
                is made under section 104(b)(1) of this title, 
                the Secretary shall set aside $54,000,000 for 
                fiscal year 1992, $64,000,000 for each fiscal 
                years 1993, 1994, 1995, and 1996, and 
                $65,000,000 for fiscal year 1997 for obligation 
                by the Secretary for projects for resurfacing, 
                restoring, rehabilitating, and reconstructing 
                any route or portion thereof on the Interstate 
                System (other than any highway designated as a 
                part of the Interstate System under section 139 
                and any toll road on the Interstate System not 
                subject to an agreement under section 119(e) of 
                this title, as in effect on the day before the 
                date of the enactment of the Intermodal Surface 
                Transportation Efficiency Act of 1991). Of the 
                amounts set aside under the preceding sentence, 
                the Secretary shall obligate $16,000,000 for 
                fiscal year 1992 and $17,000,000 for each of 
                fiscal years 1993 and 1994 for improvements on 
                the Kennedy Expressway in Chicago, Illinois. 
                The remainder of such funds shall be made 
                available by the Secretary to any State 
                applying for such funds, if the Secretary 
                determines that--
                            [(i) the State has obligated or 
                        demonstrates that it will obligate in 
                        the fiscal year all of its 
                        apportionments under section 104(b)(1) 
                        other than an amount which, by itself, 
                        is insufficient to pay the Federal 
                        share of the cost of a project for 
                        resurfacing, restoring, rehabilitating, 
                        and reconstructing the Interstate 
                        System which has been submitted by the 
                        State to the Secretary for approval; 
                        and
                            [(ii) the applicant is willing and 
                        able to (I) obligate the funds within 1 
                        year of the date the funds are made 
                        available, (II) apply them to a ready-
                        to-commence project, and (III) in the 
                        case of construction work, begin work 
                        within 90 days of obligation.
                    [(B) Priority consideration for certain 
                projects.--In selecting projects to fund under 
                subparagraph (A), the Secretary shall give 
                priority consideration to any project the cost 
                of which exceeds $10,000,000 on any high volume 
                route in an urban area or a high truck-volume 
                route in a rural area.
                    [(C) Period of availability of 
                discretionary funds.--Sums made available 
                pursuant to this paragraph shall remain 
                available until expended.
      [(d) In addition to amounts otherwise available to carry 
out this section, an amount equal to the amount by which the 
unobligated apportionment for the Interstate System in any 
State is reduced under section 103(e)(4) of this title on 
account of the withdrawal of a route or portion thereof on the 
Interstate System, which withdrawal is approved after the date 
of enactment of this subsection, shall be available to the 
Secretary for obligation in accordance with subsection (b)(1) 
of this section.
    [(e) The total payments to any State shall not at any time 
during a current fiscal year exceed the total of all 
apportionments to such State in accordance with section 104 of 
this title for such fiscal year and all preceding fiscal 
years.]
    [(e)] (c) Availability of Funds.--
            (1) In general.--Any Federal-aid highway funds 
        released by the final payment on a project, or by the 
        modification of a project agreement, shall be credited 
        to the same program funding category for which the 
        funds were previously apportioned and shall be 
        immediately available for obligation.
            (2) Transfer of interstate construction funds.--Any 
        Federal-aid highway funds apportioned to a State under 
        section 104(b)(5)(A) (as in effect on the day before 
        the date of enactment of this paragraph) and credited 
        under paragraph (1) may be transferred by the Secretary 
        in accordance with section 103(d).
    [(f)] (d) Funds made available to the State of Alaska and 
the Commonwealth of Puerto Rico under this title may be 
expended for construction of access and development roads that 
will serve resource development, recreational, residential, 
commercial, industrial, or other like purposes.
    (f) \1\ Engineering Cost Reimbursement.--If on-site 
construction of, or acquisition of right-of-way for, a highway 
project is not commenced within 10 years after the date on 
which Federal funds are first made available, out of the 
Highway Trust Fund (other than Mass Transit Account), for 
preliminary engineering of such project, the State shall pay an 
amount equal to the amount of Federal funds made available for 
such engineering. The Secretary shall deposit in such Fund all 
amounts paid to the Secretary under this section.
---------------------------------------------------------------------------
    \1\ This subparagraph was moved from old Section 102.
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    [(g)] (e) Obligation Authority.--
            (1) Distribution.--For each fiscal year, the 
        Secretary shall--
                    (A) distribute the total amount of 
                obligation authority for Federal-aid highways 
                and highway safety construction programs made 
                available for the fiscal year by allocation in 
                the ratio that--
                            (i) the total of the sums made 
                        available for Federal-aid highways and 
                        highway safety construction programs 
                        that are apportioned or allocated to 
                        each State for the fiscal year; bears 
                        to
                            (ii) the total of the sums made 
                        available for Federal-aid highways and 
                        highway safety construction programs 
                        that are apportioned or allocated to 
                        all States for the fiscal year;
                    (B) provide all States with authority 
                sufficient to prevent lapses of sums authorized 
                to be appropriated for Federal-aid highways 
                that have been apportioned to a State; and
                    (C) not distribute--
                            (i) amounts deducted under section 
                        104(a) for administrative expenses;
                            (ii) amounts set aside under 
                        section 104(k) for Interstate 4R and 
                        bridge projects;
                            (iii) amounts made available under 
                        sections 143, 164, 165, 204, 206, 207, 
                        and 322;
                            (iv) amounts made available under 
                        section 111 of title 49;
                            (v) amounts made available under 
                        section 201 of the Appalachian Regional 
                        Development Act of 1965 (40 U.S.C. 
                        App.);
                            (vi) amounts made available under 
                        section 1012(b) of the Intermodal 
                        Surface Transportation Efficiency Act 
                        of 1991 (23 U.S.C. 149 note; 105 Stat. 
                        1938);
                            (vii) amounts made available under 
                        chapter 2 of subtitle C of title I, and 
                        sections 1503, 1603, and 1604, of the 
                        Intermodal Surface Transportation 
                        Efficiency Act of 1997;
                            (viii) amounts made available under 
                        section 149(d) of the Surface 
                        Transportation and Uniform Relocation 
                        Assistance Act of 1987 (101 Stat. 201); 
                        and
                            (ix) amounts made available for 
                        implementation of programs under 
                        chapter 5 of this title and sections 
                        5222, 5232, and 5241 of title 49.
            (2) Redistribution.--Notwithstanding paragraph (1), 
        the Secretary shall, after August 1 of each of fiscal 
        years 1998 through 2003--
                    (A) revise a distribution of the funds made 
                available under paragraph (1) for the fiscal 
                year if a State will not obligate the amount 
                distributed during the fiscal year; and
                    (B) redistribute sufficient amounts to 
                those States able to obligate amounts in 
                addition to the amounts previously distributed 
                during the fiscal year, giving priority to 
                those States that have large unobligated 
                balances of funds apportioned under section 104 
                and under section 144 (as in effect on the day 
                before the date of enactment of this 
                subparagraph).

Sec. 119. Interstate maintenance program

    (a) The Secretary may approve projects for resurfacing, 
restoring [and rehabilitating] , rehabilitating, and 
reconstructing routes on the Interstate System designated under 
[sections 103 and 139(c) of this title] section 103(c)(1) and, 
in Alaska and Puerto Rico, under section 103(c)(4)(A) and 
routes on the Interstate System designated before [the date of 
enactment of this sentence] March 9, 1984 under [section 139 
(a) and (b) of this title subparagraphs (A) and (B) of section 
103(c)(4)[; except that the Secretary may only approve a 
project pursuant to this subsection on a toll road if such road 
is subject to a Secretarial agreement provided for in 
subsection (e)]. [Sums authorized to be appropriated for this 
section shall be out of the Highway Trust Fund and shall be 
apportioned in accordance with section 104(b)(5)(B) of this 
title.]
    (b) Eligible Activities.--
            (1) In general.--A State--
                    (A) may use funds apportioned under 
                subparagraph (A) or (B) of section 104(b)(1) 
                for resurfacing, restoring, rehabilitating, and 
                reconstructing routes on the Interstate System, 
                including--
                            (i) resurfacing, restoring, 
                        rehabilitating, and reconstructing 
                        bridges, interchanges, and 
                        overcrossings;
                            (ii) acquiring rights-of-way; and
                            (iii) intelligent transportation 
                        system capital improvements that are 
                        infrastructure-based to the extent that 
                        they improve the performance of the 
                        Interstate System; but
                    (B) may not use the funds for construction 
                of new travel lanes other than high-occupancy 
                vehicle lanes or auxiliary lanes.
            (2) Expansion of capacity.--
                    (A) Using transferred funds.--
                Notwithstanding paragraph (1), funds 
                transferred under subsection (c)(1) may be used 
                for construction to provide for expansion of 
                the capacity of an Interstate System highway 
                (including a bridge).
                    (B) Using funds not transferred.--
                            (i) In general.--In lieu of 
                        transferring funds under subsection 
                        (c)(1) and using the transferred funds 
                        for the purpose described in
    [(b) Not later than one year after the date of issuance of 
initial guidelines under section 109(m) of this title each 
State shall have a program for the Interstate system in 
accordance with such guidelines. Each State shall certify on 
January 1st of each year that it has such a program and the 
Interstate system is maintained in accordance with the program. 
If a State fails to certify as required or if the Secretary 
determines a State is not adequately maintaining the Interstate 
system in accordance with such program then the next 
apportionment of funds to such State for the Interstate system 
shall be reduced by amounts equal to 10 per centum of the 
amount which would otherwise be apportioned to such State under 
section 104 of this title. If, within one year from the date 
the apportionment for a State is reduced under this subsection, 
the Secretary determines that such State is maintaining the 
Interstate system in accordance with the guidelines the 
apportionment of such State shall be increased by an amount 
equal to the reduction. If the Secretary does not make such a 
determination within such one year period the amount so 
withheld shall be reapportioned to all other eligible States.]
    [(c) Eligible Activities.--Activities authorized in 
subsection (a) may include the reconstruction of bridges, 
interchanges, and over crossings along existing Interstate 
routes, including the acquisition of right-of-way where 
necessary, but shall not include the construction of new travel 
lanes other than high occupancy vehicle lanes or auxiliary 
lanes.]
    [(d) Transfer of Interstate Construction Apportionments.--
Upon application by a State (other than the State of 
Massachusetts) and approval by the Secretary, the Secretary may 
transfer to the apportionments to such State under section 
104(b)(1) or 104(b)(5)(B) any amount of the funds apportioned 
to such State for any fiscal year under section 104(b)(5)(A) if 
such amount does not exceed the Federal share of the costs of 
construction of segments of the Interstate System open to 
traffic in such State (other than high occupancy vehicle lanes) 
included in the most recent interstate cost estimate. Upon 
transfer of such amount, the construction on which such amount 
is based on open-to-traffic segments of the Interstate System 
in such State as included in the latest interstate cost 
estimate shall be ineligible and shall not be included in 
future interstate cost estimates approved or adjusted under 
section 104(b)(5)(A).]
    [(e) Preventive Maintenance.--Preventive maintenance 
activities shall be eligible under this section when a State 
can demonstrate, through its pavement management system, that 
such activities are a cost-effective means of extending 
Interstate pavement life.]
    [(f) Transfer of Funds for Surface Transportation Program 
Projects.--
            [(1) Upon certification acceptance.--If a State 
        certifies to the Secretary that any part of the sums 
        apportioned to the State under section 104(b)(5)(B) of 
        this title are in excess of the needs of the State for 
        resurfacing, restoring, or rehabilitating Interstate 
        System routes and the State is adequately maintaining 
        the Interstate System and the Secretary accepts such 
        certification, the State may transfer such excess part 
        to its apportionment under sections 104(b)(1) and 
        104(b)(3).
            [(2) Unconditional.--Notwithstanding paragraph (1), 
        a State may transfer to its apportionment under 
        sections 104(b)(1) and 104(b)(3) of this title--
                    [(A) in fiscal year 1987, an amount not to 
                exceed 20 percent of the funds apportioned to 
                the State under section 104(b)(5)(B) which are 
                not obligated at the time of the transfer; and
                    [(B) in any fiscal year thereafter, an 
                amount not to exceed 20 percent of the funds 
                apportioned to the State under section 
                104(b)(5)(B) for such fiscal year.]
    [(f)] (c) Transferability of Funds.--
            (1) Unconditional.--A State may transfer an amount 
        not to exceed 30 percent of the sums apportioned to the 
        State under subparagraphs (A) and (B) of section 
        104(b)(1) to the apportionment of the State under 
        paragraphs (1)(C) and (3) of section 104(b).
            (2) Upon acceptance of certification.--If a State 
        certifies to the Secretary that any part of the sums 
        apportioned to the State under subparagraphs (A) and 
        (B) of section 104(b)(1) is in excess of the needs of 
        the State for resurfacing, restoring, rehabilitating, 
        or reconstructing routes and bridges on the Interstate 
        System in the State and that the State is adequately 
        maintaining the routes and bridges, and the Secretary 
        accepts the certification, the State may transfer, in 
        addition to the amount authorized to be transferred 
        under paragraph (1), an amount not to exceed 20 percent 
        of the sums apportioned to the State under 
        subparagraphs (A) and (B) of section 104(b)(1) to the 
        apportionment of the State under paragraphs (1)(C) and 
        (3) of section 104(b).
    [(g) Limitation on New Capacity.--Notwithstanding any other 
provision of this title, the portion of the cost of any project 
undertaken pursuant to this section that is attributable to the 
expansion of the capacity of any Interstate highway or bridge, 
where such new capacity consists of one or more new travel 
lanes that are not high-occupancy vehicle lanes or auxiliary 
lanes, shall not be eligible for funding under this section.]

Sec. 120. Federal share payable

    (a) Interstate System Projects.--Except as otherwise 
provided in this chapter, the Federal share payable on account 
of any project on the Interstate System (including a project to 
add high occupancy vehicle lanes and a project to add auxiliary 
lanes but excluding a project to add any other lanes) shall be 
90 percent of the total cost thereof, plus a percentage of the 
remaining 10 percent of such cost in any State containing 
unappropriated and unreserved public lands and nontaxable 
Indian lands, individual and tribal, exceeding 5 percent of the 
total area of all lands therein, equal to the percentage that 
the area of such lands in such State is of its total area; 
except that such Federal share payable on any project in any 
State shall not exceed 95 percent of the total cost of such 
project. In the case of any project subject to this subsection, 
a State may determine a lower Federal share than the Federal 
share determined under the preceding sentences of this 
subsection.
    (b) Other Projects.--Except as otherwise provided in this 
title, the Federal share payable on account of any project or 
activity carried out under this title (other than a project 
subject to subsection (a)) shall be--
            (1) 80 percent of the cost thereof, except that in 
        the case of any State containing nontaxable Indian 
        lands, individual and tribal, and public domain lands 
        (both reserved and unreserved) exclusive of national 
        forests and national parks and monuments, exceeding 5 
        percent of the total area of all lands therein, the 
        Federal share, for purposes of this chapter, shall be 
        increased by a percentage of the remaining cost equal 
        to the percentage that the area of all such lands in 
        such State, is of its total area; or
            (2) 80 percent of the cost thereof, except that in 
        the case of any State containing nontaxable Indian 
        lands, individual and tribal, public domain lands (both 
        reserved and unreserved), national forests, and 
        national parks and monuments, the Federal share, for 
        purposes of this chapter, shall be increased by a 
        percentage of the remaining cost equal to the 
        percentage that the area of all such lands in such 
        State is of its total area;
except that the Federal share payable on any project in a State 
shall not exceed 95 percent of the total cost of any such 
project. In any case where a State elects to have the Federal 
share provided in paragraph (2) of this subsection, the State 
must enter into an agreement with the Secretary covering a 
period of not less than 1 year, requiring such State to use 
solely for purposes eligible for assistance under this title 
(other than paying its share of projects approved under this 
title) during the period covered by such agreement the 
difference between the State's share as provided in paragraph 
(2) and what its share would be if it elected to pay the share 
provided in paragraph (1) for all projects subject to such 
agreement. In the case of any project subject to this 
subsection, a State may determine a lower Federal share than 
the Federal share determined under the preceding sentences of 
this subsection.
    (c) Increased Federal Share for Certain Safety Projects.--
[The] Except in the case of a project funded from sums 
apportioned under section 104(b)(2), the Federal share payable 
on account of any project for traffic control signalization, 
safety rest areas, pavement marking, commuter carpooling and 
vanpooling, rail-highway crossing closure, or installation of 
traffic signs, traffic lights, guardrails, impact attenuators, 
concrete barrier endtreatments, breakaway utility poles, or 
priority control systems for emergency vehicles at signalized 
intersections may amount to 100 percent of the cost of 
construction of such projects; except that not more than 10 
percent of all sums apportioned for all the Federal-aid systems 
for any fiscal year in accordance with section 104 of this 
title shall be used under this subsection. In this subsection, 
the term ``safety rest area'' means an area where motor vehicle 
operators can park their vehicles and rest, where food, fuel, 
and lodging services are not available, and that is located on 
a segment of highway with respect to which the Secretary 
determines there is a shortage of public and private areas at 
which motor vehicle operators can park their vehicles and rest.
    (d) The Secretary may rely on a statement from the 
Secretary of the Interior as to the area of the lands referred 
to in subsections (a) and (b) of this section. The Secretary of 
the Interior is authorized and directed to provide such 
statement annually.
    (e) Emergency Relief.--The Federal share payable on account 
of any repair or reconstruction provided for by funds made 
available under section 125 of this title on account of any 
project on a Federal-aid [highway system] highway, including 
the Interstate System, shall not exceed the Federal share 
payable on a project on such system as provided in subsections 
(a) and (c) \1\ of this section; except that (1) the Federal 
share payable for eligible emergency repairs to minimize 
damage, protect facilities, or restore essential traffic 
accomplished within 90 days \2\ after the actual occurrence of 
the natural disaster or catastrophic failure may amount to 100 
percent of the costs thereof; and (2) the Federal share payable 
on account of any repair or reconstruction of forest highways, 
forest development roads and trails, park roads and trails, 
parkways, public lands highways, public lands development roads 
and trails, and Indian reservation roads may amount to 100 
percent of the cost thereof. The total cost of a project may 
not exceed the cost of repair or reconstruction of a comparable 
facility. As used in this section with respect to bridges [and 
in section 144 of this title], ``a comparable facility'' shall 
mean a facility which meets the current geometric and 
construction standards required for the types and volume of 
traffic which such facility will carry over its design life.
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    \1\ Section 1021(b)(3) of P.L. 102-240 amended subsection (d) as 
redesignated by striking ``and (c)'' and inserting ``and (b)''. The 
amendment was unexecutable but probably should have been amended in 
subsection (e) as redesignated.
    \2\ Section 1022(a) of P.L. 102-240 also amended subsection (d) as 
redesignated instead of subsection (e) as redesignated. The amendment 
is strike ``90 days'' and insert ``180 days''.
---------------------------------------------------------------------------
    (f) The Secretary is authorized to cooperate with the 
[State highway departments]State transportation departments and 
with the Department of the Interior in the construction of 
Federal-aid highways within Indian reservations and national 
parks and monuments under the jurisdiction of the Department of 
the Interior and to pay the amount assumed therefor from the 
funds apportioned in accordance with section 104 of this title 
to the State wherein the reservations and national parks and 
monuments are located.
    (g) At the request of any State, the Secretary may from 
time to time enter into agreements with such State to reimburse 
the State for the Federal share of the costs of preliminary and 
construction engineering at an agreed percentage of actual 
construction costs for each project, in lieu of the actual 
engineering costs for such project. The Secretary shall 
annually review each such agreement to insure that such 
percentage reasonably represents the engineering costs actually 
incurred by such State.
    (h) Notwithstanding any other provision of this section or 
of this title, the Federal share payable on account of any 
project under this title in the Virgin Islands, Guam, American 
Samoa, or the Commonwealth of the Northern Mariana Islands 
shall be 100 per centum of the total cost of the project.
    (i) Increased Non-Federal Share.--Notwithstanding any other 
provision of this title and subject to such criteria as the 
Secretary may establish, a State may contribute an amount in 
excess of the non-Federal share of a project under this title 
so as to decrease the Federal share payable on such project.
    (j) Use of Federal Land Management Agency Funds.--
Notwithstanding any other provision of law, the funds 
appropriated to any Federal land management agency may be used 
to pay the non-Federal share of the cost of any Federal-aid 
highway project the Federal share of which is funded under 
section 104.
    (k) Use of Federal Lands Highways Program Funds.--
Notwithstanding any other provision of law, the funds made 
available to carry out the Federal lands highways program under 
section 204 may be used to pay the non-Federal share of the 
cost of any project that is funded under section 104 and that 
provides access to or within Federal or Indian lands.
    (l) Credit for Non-Federal Share.--
            (1) Eligibility.--A State may use as a credit 
        toward the non-Federal share requirement for any 
        program under the Intermodal Surface Transportation 
        Efficiency Act of 1991 (Public Law 102-240) or this 
        title, other than the emergency relief program 
        authorized by section 125, toll revenues that are 
        generated and used by public, quasi-public, and private 
        agencies to build, improve, or maintain, without the 
        use of Federal funds, highways, bridges, or tunnels 
        that serve the public purpose of interstate commerce.
            (2) Maintenance of effort.--
                    (A) In general.--The credit toward any non-
                Federal share under paragraph (1) shall not 
                reduce nor replace State funds required to 
                match Federal funds for any program under this 
                title.
                    (B) Conditions on receipt of credit.--
                            (i) Agreement with the secretary.--
                        To receive a credit under paragraph (1) 
                        for a fiscal year, a State shall enter 
                        into such agreements as the Secretary 
                        may require to ensure that the State 
                        will maintain its non-Federal 
                        transportation capital expenditures at 
                        or above the average level of such 
                        expenditures for the preceding 3 fiscal 
                        years.
                            (ii) Exception.--Notwithstanding 
                        clause (i), a State may receive a 
                        credit under paragraph (1) for a fiscal 
                        year if, for any 1 of the preceding 3 
                        fiscal years, the non-Federal 
                        transportation capital expenditures of 
                        the State were at a level that was 
                        greater than 25 30 percent of the 
                        average level of such expenditures for 
                        the other 2 of the preceding 3 fiscal 
                        years.
            (3) Treatment.--
                    (A) In general.--Use of the credit toward a 
                non-Federal share under paragraph (1) shall not 
                expose the agencies from which the credit is 
                received to additional liability, additional 
                regulation, or additional administrative 
                oversight.
                    (B) Chartered multistate agencies.--When 
                credit is applied from a chartered multistate 
                agency under paragraph (1), the credit shall be 
                applied equally to all charter States.
                    (C) No additional standards.--A public, 
                quasi-public, or private agency from which the 
                credit for which the non-Federal share is 
                calculated under paragraph (1) shall not be 
                subject to any additional Federal design 
                standards or laws (including regulations) as a 
                result of providing the credit beyond the 
                standards and laws to which the agency is 
                already subject.

Sec. 121. Payment to States for construction

    (a) The Secretary may, in his discretion, from time to time 
as the work progresses, make payments to a State for costs of 
construction incurred by it on a project. [These payments shall 
at no time exceed the Federal share of the costs of 
construction incurred to the date of the voucher covering such 
payment plus the Federal share of the value of the materials 
which have been stockpiled in the vicinity of such construction 
in conformity to plans and specifications for the project. Such 
payments may also be made in the case of any such materials not 
in the vicinity of such construction if the Secretary 
determines that because of required fabrication at an off-site 
location the materials cannot be stockpiled in such vicinity.] 
The payments may also be made for the value of such materials 
as--
            (1) have been stockpiled in the vicinity of the 
        construction in conformity to plans and specifications 
        for the projects; and
            (2) are not in the vicinity of the construction if 
        the Secretary determines that because of required 
        fabrication at an off-site location the materials 
        cannot be stockpiled in the vicinity.
    [(b) After completion of a project in accordance with the 
plans and specifications, and approval of the final voucher by 
the Secretary, a State shall be entitled to payment out of the 
appropriate sums apportioned to it of the unpaid balance of the 
Federal share payable on account of such project.]
    (b) Project Agreements.--
            (1) Payments.--A payment under this chapter may be 
        made only for a project covered by a project agreement.
            (2) Source of payments.--After completion of a 
        project in accordance with the project agreement, a 
        State shall be entitled to payment, out of the 
        appropriate sums apportioned or allocated to the State, 
        of the unpaid balance of the Federal share of the cost 
        of the project.
    [(c) No payment shall be made under this chapter, except 
for a project located on a Federal-aid system and covered by a 
project agreement. No final payment shall be made to a State 
for its costs of construction of a project until the completion 
of the construction has been approved by the Secretary 
following inspections pursuant to section 114(a) of this title.
    [(d) In making payment pursuant to this section, the 
Secretary shall be bound by the limitations with respect to the 
permissible amounts of such payments contained in sections 
106(c), 120, and 130 of this title.]
    [(e)] (c) Such payments shall be made to such official or 
officials or depository as may be designated by the [State 
highway department]State transportation department and 
authorized

Sec. 122. Payments to States for bond and other debt instrument 
                    financing

    (a) Definition of Eligible Debt Financing Instrument.--In 
this section, the term ``eligible debt financing instrument'' 
means a bond or other debt financing instrument, including a 
note, certificate, mortgage, or lease agreement, issued by a 
State or political subdivision of a State or a public 
authority, the proceeds of which are used for an eligible 
project under this title.
    (b) Federal Reimbursement.--Subject to subsections (c) and 
(d), the Secretary may reimburse a State for expenses and costs 
incurred by the State or a political subdivision of the State 
and reimburse a public authority for expenses and costs 
incurred by the public authority for--
            (1) interest payments under an eligible debt 
        financing instrument;
            (2) the retirement of principal of an eligible debt 
        financing instrument;
            (3) the cost of the issuance of an eligible debt 
        financing instrument;
            (4) the cost of insurance for an eligible debt 
        financing instrument; and
            (5) any other cost incidental to the sale of an 
        eligible debt financing instrument (as determined by 
        the Secretary).
    (c) Conditions on Payment.--The Secretary may reimburse a 
State or public authority under subsection (b) with respect to 
a project funded by an eligible debt financing instrument after 
the State or public authority has complied with this title with 
respect to the project to the extent and in the manner that 
would be required if payment were to be made under section 121.
    (d) Federal Share.--The Federal share of the cost of a 
project payable under this section shall not exceed the Federal 
share of the cost of the project as determined under section 
120.
    (e) Statutory Construction.--Notwithstanding any other 
provision of law, the eligibility of an eligible debt financing 
instrument for reimbursement under subsection (b) shall not--
            (1) constitute a commitment, guarantee, or 
        obligation on the part of the United States to provide 
        for payment of principal or interest on the eligible 
        debt financing instrument; or
            (2) create any right of a third party against the 
        United States for payment under the eligible debt 
        financing instrument.

Sec. 123. Relocation of utility facilities

    (a) When a State shall pay for the cost of relocation of 
utility facilities necessitated by the construction of a 
project on any Federal-aid system, Federal funds may be used to 
reimburse the State for such cost in the same proportion as 
Federal funds are expended on the project. Federal funds shall 
not be used to reimburse the State under this section when the 
payment to the utility violates the law of the State or 
violates a legal contract between the utility and the State. 
Such reimbursement shall be made only after evidence 
satisfactory to the Secretary shall have been presented to him 
substantiating the fact that the State has paid such cost from 
its own funds with respect to Federal-aid highway projects for 
which Federal funds are obligated subsequent to April 16, 1958, 
for work, including relocation of
    (b) The term ``utility'', for the purposes of this section, 
shall include publicly, privately, and cooperatively owned 
utilities.
    (c) The term ``cost of relocation'', for the purposes of 
this section, shall include the entire amount paid by such 
utility properly attributable to such relocation after 
deducting therefrom any increase in the value of the new 
facility and any salvage value derived from the old facility.

Sec. 124. Advances to States

    [(a)] If the Secretary shall determine that it is necessary 
for the expeditious completion of projects on any of the 
Federal-aid systems, including the Interstate System, he may 
advance to any State out of any existing appropriations the 
Federal share of the cost of construction thereof to enable the 
[State highway department]State transportation department to 
make prompt payments for acquisition of rights-of-way, and for 
the construction as it progresses. The sums so advanced shall 
be deposited in a special revolving trust fund, by the State 
official authorized under the laws of the State to receive 
Federal-aid highway funds, to be disbursed solely upon vouchers 
approved by the [State highway department]State transportation 
department for rights-of-way which have been or are being 
acquired, and for construction which has been actually 
performed and approved by the Secretary pursuant to this 
chapter. Upon determination by the Secretary that any part of 
the funds advanced to any State under the provisions of this 
section are no longer required, the amount of the advance, 
which is determined to be in excess of current requirements of 
the State, shall be repaid upon his demand, and such repayments 
shall be returned to the credit of the appropriation from which 
the funds were advanced. Any sum advanced and not repaid on 
demand shall be deducted from sums due the State for the 
Federal pro rata share of the cost of construction of Federal-
aid projects.
    [(b) Notwithstanding subsection (a) of this section, if the 
Secretary of Transportation determines that any toll bridge, 
toll tunnel, or approach thereto, which meets the requirements 
of section 129 of this title is necessary to complete an 
essential gap in the Interstate System then, upon request of 
[State highway department]State transportation department, the 
Secretary shall at any time during construction of such bridge, 
tunnel, or approach and for one year after it is opened to 
traffic, and subject to the conditions and limitations of such 
section 129, advance to such State 100 per centum of the cost 
of construction of such bridge, tunnel, or approach. So much of 
the amount so advanced that exceeds the Federal share of such 
construction cost shall be repaid to the United States as 
follows:
            [(1) 50 per centum within one year of the date such 
        bridge, tunnel, or approach is opened to traffic,
            [(2) 25 per centum within two years of such date of 
        opening, and
            [(3) 25 per centum within three years of such date 
        of opening.
[Any advance made to a State under this subsection shall be 
from the funds apportioned to said State for the Interstate 
System. So much of any advance made to a State under this 
subsection required to be repaid shall be repaid with interest 
at a rate determined by the Secretary. If a State receives any 
advance under this subsection with respect to any toll bridge, 
tunnel, or approach thereto, then the provisions of section 
103(e)(4) of this title shall not apply to such bridge, tunnel, 
or approach.]

Sec. 125. Emergency relief

    [(a) An emergency fund is authorized for expenditure by the 
Secretary, subject to the provisions of this section and 
section 120 of this title, for the repair or reconstruction of 
highways, roads, and trails which the Secretary shall find have 
suffered serious damage as the result of (1) natural disaster 
over a wide area such as by floods, hurricanes, tidal waves, 
earthquakes, severe storms, or landslides, or (2) catastrophic 
failures from any external cause, in any part of the United 
States. In no event shall funds be used pursuant to this 
section for the repair or reconstruction of bridges which have 
been permanently closed to all vehicular traffic by the State 
or responsible local official because of imminent danger of 
collapse due to structural deficiencies or physical 
deterioration. Subject to the following limitations, there is 
hereby authorized to be appropriated from the Highway Trust 
Fund such sums as may be necessary to establish the funds 
authorized by this section and to replenish it on an annual 
basis: (1) Not more than $50,000,000 is authorized to be 
expended in any fiscal year ending before July 1, 1972, and not 
more than $100,000,000 is authorized to be expended in any one 
fiscal year commencing after June 30, 1972, and ending before 
June 1, 1976, to carry out the provisions of this section and 
an additional amount not to exceed $100,000,000 is further 
authorized to be expended in the fiscal year ending June 30, 
1973, to carry out the provisions of this section, and not more 
than $25,000,000 for the three-month period beginning July 1, 
1976, and ending September 30, 1976, is authorized to be 
expended to carry out the provisions of this section, and not 
more than $100,000,000 is authorized to be expended in any one 
fiscal year commencing after September 30, 1976, and not more 
than $100,000,000 is authorized to be expended in any one 
fiscal year commencing after September 30, 1980, to carry out 
the provisions of this section, except that, if in any fiscal 
year the total of all expenditures under this section is less 
than the amount authorized to be expended in such fiscal year, 
the unexpended balance of such amount shall remain available 
for expenditure during the next two succeeding fiscal years in 
addition to amounts otherwise available to carry out this 
section in such years, and (2) prior to the fiscal year ending 
September 30, 1978, 60 per centum of the expenditures under 
this section for any fiscal year are authorized to be 
appropriated from the Highway Trust Fund and the remaining 40 
per centum of such expenditures are authorized to be 
appropriated only from any moneys in the Treasury not otherwise 
appropriated, and for any fiscal year thereafter, 100 per 
centum of such expenditures are authorized to be appropriated 
out of the Highway Trust Fund. For the purposes of this section 
the period beginning July 1, 1976, and ending September 30, 
1976, shall be deemed to be a part of the fiscal year ending 
September 30, 1977. Pending such appropriation or replenishment 
the Secretary may expend from any funds heretofore or hereafter 
appropriated for expenditure in accordance with the provisions 
of this title, including existing Federal-aid appropriations, 
such sums as may be necessary for the immediate prosecution of 
the work herein authorized, such appropriations to be 
reimbursed from the appropriations herein authorized when 
made.]
    (a) General Eligibility.--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 part of the United States, including 
Indian reservations, that the Secretary finds have suffered 
serious damage as a result of--
            (1) 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.--In no event shall funds be 
used pursuant to this section for the repair or reconstruction 
of bridges that have 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.
    (c) Funding.--Subject to the following limitations, there 
are hereby authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) such sums as may be 
necessary to establish the fund authorized by this section and 
to replenish it on an annual basis:
            (1) Not more than $100,000,000 is authorized to be 
        obligated in any 1 fiscal year commencing after 
        September 30, 1980, to carry out the provisions of this 
        section, except that, if in any fiscal year the total 
        of all obligations under this section is less than the 
        amount authorized to be obligated in such fiscal year, 
        the unobligated balance of such amount shall remain 
        available until expended and shall be in addition to 
        amounts otherwise available to carry out this section 
        each year.
            (2) Pending such appropriation or replenishment, 
        the Secretary may obligate from any funds heretofore or 
        hereafter appropriated for obligation in accordance 
        with this title, including existing Federal-aid 
        appropriations, such sums as may be necessary for the 
        immediate prosecution of the work herein authorized, 
        provided that such funds are reimbursed from the 
        appropriations authorized in paragraph (1) of this 
        subsection when such appropriations are made.
    [(b)] (d) The Secretary may expend funds from the emergency 
fund herein authorized for the repair or reconstruction of 
highways on Federal-aid highways \1\, in accordance with the 
provisions of this chapter: Provided, That (1) obligations for 
projects under this section, including those on highways, 
roads, and trails mentioned in subsection [(c)] (e) of this 
section, resulting from a single natural disaster or a single 
catastrophic failure in a State shall not exceed $100,000,000, 
and (2) the total obligations for projects under this section 
in any fiscal year in the Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Islands shall not 
exeed $20,000,000. Notwithstanding any provision of this 
chapter actual and necessary costs of maintenance and operation 
of ferryboats providing temporary substitute highway traffic 
service, less the amount of fares charged, may be expended from 
the emergency fund herein authorized on Federal-aid highways. 
Except as to highways, roads, and trails mentioned in 
subsection [(c)] (e) of this section, no funds shall be so 
expended unless the Secretary has received an application 
therefor from the [State highway department]State 
transportation department, and unless an emergency has been 
declared by the Governor of the State and concurred in by the 
Secretary, except that if the President has declared such 
emergency to be a major disaster for the purposes of the 
Disaster Relief and Emergency Assistance Act \2\ (Public Law 
93-288) concurrence of the Secretary is not required.
---------------------------------------------------------------------------
    \1\ Section 101 of P.L. 102-302 (106 Stat. 252) amended section 
125(b) by striking ``on the Federal-aid highway systems including the 
Interstate System'' in two places and inserting in each place ``on 
Federal-aid highways''. The amendment probably should have included a 
comma after ``systems''.
    \2\ In accordance with section 102(b) of the Disaster Relief and 
Emergency Assistance Amendments of 1988, this reference is deemed to be 
a reference to the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act.
---------------------------------------------------------------------------
    [(c)] (e) The Secretary may expend funds from the emergency 
fund herein authorized, either independently or in cooperation 
with any other branch of the Government, State agency, 
organization, or person, for the repair or reconstruction of 
forest highways, forest development roads and trails, park 
roads and trails, parkways, public lands highways, public lands 
development roads and trails, and Indian reservation roads, 
whether or not such highways, roads, or trails are [on any of 
the Federal-aid highway systems] Federal-aid highways.
    [(d)] (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

Sec. [126. Diversion

    [(a) Since it is unfair and unjust to tax motor-vehicle 
transportation unless the proceeds of such taxation are applied 
to the construction, improvement, or maintenance of highways, 
after June 30, 1935, Federal aid for highway construction shall 
be extended only to those States that use at least the amounts 
provided by law on June 18, 1934, for such purposes in each 
State from State motor vehicle registration fees, licenses, 
gasoline taxes, and other special taxes on motor-vehicle owners 
and operators of all kinds for the construction, improvement, 
and maintenance of highways and administrative expenses in 
connection therewith, including the retirement of bonds for the 
payment of which such revenues have been pledged, and for no 
other purposes, under such regulations as the Secretary of 
Transportation shall promulgate from time to time.
    [(b) In no case shall the provisions of this section 
operate to deprive any State of more than one-third of the 
entire apportionment authorized under this chapter to which 
that State would be entitled in any fiscal year. The amount of 
any reduction in a State's apportionment shall be reapportioned 
in the same manner as any other unexpended balance at the end 
of the period during which it otherwise would be available in 
accordance with section 104(b) of this title.]

Sec. 126. Repealed.

Sec. 127. Vehicle weight limitations--Interstate System

    (a) In General.--No funds shall be apportioned in any 
fiscal year under section 104(b)(1) of this title to any State 
which does not permit the use of the National System of 
Interstate and Defense Highways within its boundaries by 
vehicles with a weight of twenty thousand pounds carried on any 
one axle, including enforcement tolerances, or with a tandem 
axle weight of thirty-four thousand pounds, including 
enforcement tolerances, or a gross weight of at least eighty 
thousand pounds for vehicle combinations of five axles or more. 
However, the maximum gross weight to be allowed by any State 
for vehicles using the National System of Interstate and 
Defense Highways shall be twenty thousand pounds carried on one 
axle, including enforcement tolerances, and a tandem axle 
weight of thirty-four thousand pounds, including enforcement 
tolerances and with an overall maximum gross weight, including 
enforcement tolerances, on a group of two or more consecutive 
axles produced by application of the following formula:

                                                                        
                                         LN                             
      W=500               ---------------     +12N+36   
                                        N 1                             
                                                                        

where W equals overall gross weight on any group of two or more 
consecutive axles to the nearest five hundred pounds, L equals 
distance in feet between the extreme of any group of two or 
more consecutive axles, and N equals number of axles in group 
under consideration, except that two consecutive sets of tandem 
axles may carry a gross load of thirty-four thousand pounds 
each providing the overall distance between the first and last 
axles of such consecutive sets of tandem axles is (1) \1\ 
thirty-six feet or more, or (2) in the case of a motor vehicle 
hauling any tank trailer, dump trailer, or ocean transport 
container before September 1, 1989, is 30 feet or more: 
Provided, That such overall gross weight may not exceed eighty 
thousand pounds, including all enforcement tolerances, except 
for vehicles using Interstate Route 29 between Sioux City, 
Iowa, and the border between Iowa and South Dakota or vehicles 
using Interstate Route 129 between Sioux City, Iowa, and the 
border between Iowa and Nebraska, and except for those vehicles 
and loads which cannot be easily dismantled or divided and 
which have been issued special permits in accordance with 
applicable State laws, or the corresponding maximum weights 
permitted for vehicles using the public highways of such State 
under laws or regulations established by appropriate State 
authority in effect on July 1, 1956 except in the case of the 
overall gross weight of any group of two or more consecutive 
axles on any vehicle (other than a vehicle comprised of a motor 
vehicle hauling any tank trailer, dump trailer, or ocean 
transport container on or after September 1, 1989), on the date 
of enactment of the Federal-Aid Highway Amendments of 1974, 
whichever is the greater. Any amount which is withheld from 
apportionment to any State pursuant to the foregoing provisions 
shall lapse if not released and obligated within the 
availability period specified in section 118(b)(1) of this 
title. This section shall not be construed to deny 
apportionment to any State allowing the operation within such 
State of any vehicles or combinations thereof, other than 
vehicles or combinations subject to subsection (d) of this 
section, which the State determines could be lawfully operated 
within such State on July 1, 1956, except in the case of the 
overall gross weight of any group of two or more consecutive 
axles, on the date of enactment of the Federal-Aid Highway 
Amendments of 1974. With respect to State of Hawaii, laws or 
regulations in effect on February 1, 1960, shall be applicable 
for the purposes of this section in lieu of those in effect on 
July 1, 1956. With respect to the State of Michigan, laws or 
regulations in effect on May 1, 1982, shall be applicable for 
the purposes of this subsection. With respect to the State of 
Maryland, laws and regulations in effect on June 1, 1993, shall 
be applicable for the purposes of this subsection.
---------------------------------------------------------------------------
    \1\ Section 119(a)(1), (2) of P.L. 100-17, 101 Stat. 157, directed 
that the second sentence be amended by inserting ``(1)'' before ``is 36 
feet or more'' and by inserting clause (2) after such phrase. This 
amendment was executed by making the insertions before and after ``is 
thirty-six feet or more'' to reflect the probable intent of Congress.
---------------------------------------------------------------------------
    (b) Reasonable Access.--No State may enact or enforce any 
law denying reasonable access to motor vehicles subject to this 
title to and from the Interstate Highway System to terminals 
and facilities for food, fuel, repairs, and rest.
      (c) Ocean Transport Container Defined.--For purposes of 
this section, the term ``ocean transport container'' has the 
meaning given the term ``freight container'' by the 
International Standards Organization in Series 1, Freight 
Containers, 3rd Edition (reference number IS0668-1979(E)) as in 
effect on the date of the enactment of this subsection.
    (d) Longer Combination Vehicles.--
            (1) Prohibition.--
                    (A) General continuation rule.--A longer 
                combination vehicle may continue to operate 
                only if the longer combination vehicle 
                configuration type was authorized by State 
                officials pursuant to State statute or 
                regulation conforming to this section and in 
                actual lawful operation on a regular or 
                periodic basis (including seasonal operations) 
                on or before June 1, 1991, or pursuant to 
                section 335 of the Department of Transportation 
                and Related Agencies Appropriations Act, 1991 
                (104 Stat. 2186).
                    (B) Applicability of state laws and 
                regulations.--All such operations shall 
                continue to be subject to, at the minimum, all 
                State statutes, regulations, limitations and 
                conditions, including, but not limited to, 
                routing-specific and configuration-specific 
                designations and all other restrictions, in 
                force on June 1, 1991; except that subject to 
                such regulations as may be issued by the 
                Secretary pursuant to paragraph (5) of this 
                subsection, the State may make minor 
                adjustments of a temporary and emergency nature 
                to route designations and vehicle operating 
                restrictions in effect on June 1, 1991, for 
                specific safety purposes and road construction.
                    (C) Wyoming.--In addition to those vehicles 
                allowed under subparagraph (A), the State of 
                Wyoming may allow the operation of additional 
                vehicle configurations not in actual operation 
                on June 1, 1991, but authorized by State law 
                not later than November 3, 1992, if such 
                vehicle configurations comply with the single 
                axle, tandem axle, and bridge formula limits 
                set forth in subsection (a) and do not exceed 
                117,000 pounds gross vehicle weight.
                    (D) Ohio.--In addition to vehicles which 
                the State of Ohio may continue to allow to be 
                operated under subparagraph (A), such State may 
                allow longer combination vehicles with 3 cargo 
                carrying units of 28\1/2\ feet each (not 
                including the truck tractor) not in actual 
                operation on June 1, 1991, to be operated 
                within its boundaries on the 1-mile segment of 
                Ohio State Route 7 which begins at and is south 
                of exit 16 of the Ohio Turnpike.
                    (E) Alaska.--In addition to vehicles which 
                the State of Alaska may continue to allow to be 
                operated under subparagraph (A), such State may 
                allow the operation of longer combination 
                vehicles which were not in actual operation on 
                June 1, 1991, but which were in actual 
                operation prior to July 5, 1991.
                    (F) Iowa.--In addition to vehicles that the 
                State of Iowa may continue to allow to be 
                operated under subparagraph (A), the State may 
                allow longer combination vehicles that were not 
                in actual operation on June 1, 1991, to be 
                operated on Interstate Route 29 between Sioux 
                City, Iowa, and the border between Iowa and 
                South Dakota or Interstate Route 129 between 
                Sioux City, Iowa, and the border between Iowa 
                and Nebraska.
            (2) Additional state restrictions.--
                    (A) In general.--Nothing in this subsection 
                shall prevent any State from further 
                restricting in any manner or prohibiting the 
                operation of longer combination vehicles 
                otherwise authorized under this subsection; 
                except that such restrictions or prohibitions 
                shall be consistent with the requirements of 
                sections 31111-31114 of title 49.
                    (B) Minor adjustments.--Any State further 
                restricting or prohibiting the operations of 
                longer combination vehicles or making minor 
                adjustments of a temporary and emergency nature 
                as may be allowed pursuant to regulations 
                issued by the Secretary pursuant to paragraph 
                (5) of this subsection, shall, within 30 days, 
                advise the Secretary of such action, and the 
                Secretary shall publish a notice of such action 
                in the Federal Register.
            (3) Publication of list.--
                    (A) Submission to secretary.--Within 60 
                days of the date of the enactment of this 
                subsection, each State (i) shall submit to the 
                Secretary for publication in the Federal 
                Register a complete list of (I) all operations 
                of longer combination vehicles being conducted 
                as of June 1, 1991, pursuant to State statutes 
                and regulations; (II) all limitations and 
                conditions, including, but not limited to, 
                routing-specific and configuration-specific 
                designations and all other restrictions, 
                governing the operation of longer combination 
                vehicles otherwise prohibited under this 
                subsection; and (III) such statutes, 
                regulations, limitations, and conditions; and 
                (ii) shall submit to the Secretary copies of 
                such statutes, regulations, limitations, and 
                conditions.
                    (B) Interim list.--Not later than 90 days 
                after the date of the enactment of this 
                subsection, the Secretary shall publish an 
                interim list in the Federal Register, 
                consisting of all information submitted 
                pursuant to subparagraph (A). The Secretary 
                shall review for accuracy all information 
                submitted by the States pursuant to 
                subparagraph (A) and shall solicit and consider 
                public comment on the accuracy of all such 
                information.
                    (C) Limitation.--No statute or regulation 
                shall be included on the list submitted by a 
                State or published by the Secretary merely on 
                the grounds that it authorized, or could have 
                authorized, by permit or otherwise, the 
                operation of longer combination vehicles, not 
                in actual operation on a regular or periodic 
                basis on or before June 1, 1991.
                    (D) Final list.--Except as modified 
                pursuant to paragraph (1)(C) of this 
                subsection, the list shall be published as 
                final in the Federal Register not later than 
                180 days after the date of the enactment of 
                this subsection. In publishing the final list, 
                the Secretary shall make any revisions 
                necessary to correct inaccuracies identified 
                under subparagraph (B). After publication of 
                the final list, longer combination vehicles may 
                not operate on the Interstate System except as 
                provided in the list.
                    (E) Review and correction procedure.--The 
                Secretary, on his or her own motion or upon a 
                request by any person (including a State), 
                shall review the list issued by the Secretary 
                pursuant to subparagraph (D). If the Secretary 
                determines there is cause to believe that a 
                mistake was made in the accuracy of the final 
                list, the Secretary shall commence a proceeding 
                to determine whether the list published 
                pursuant to subparagraph (D) should be 
                corrected. If the Secretary determines that 
                there is a mistake in the accuracy of the list 
                the Secretary shall correct the publication 
                under subparagraph (D) to reflect the 
                determination of the Secretary.
            (4) Longer combination vehicle defined.--For 
        purposes of this section, the term ``longer combination 
        vehicle'' means any combination of a truck tractor and 
        2 or more trailers or semitrailers which operates on 
        the Interstate System at a gross vehicle weight greater 
        than 80,000 pounds.
            (5) Regulations regarding minor adjustments.--Not 
        later than 180 days after the date of the enactment of 
        this subsection, the Secretary shall issue regulations 
        establishing criteria for the States to follow in 
        making minor adjustments under paragraph (1)(B).
    (e) Operation of Certain Specialized Hauling Vehicles on 
Interstate Route 68.--The single axle, tandem axle, and bridge 
formula limits set forth in subsection (a) shall not apply to 
the operation on Interstate Route 68 in Garrett and Allegany 
Counties, Maryland, of any specialized vehicle equipped with a 
steering axle and a tridem axle and used for hauling coal, 
logs, and pulpwood if such vehicle is of a type of vehicle as 
was operating in such counties on United States Route 40 or 48 
for such purpose on August 1, 1991.
    (f) Operation of Certain Specialized Hauling Vehicles on 
Certain Wisconsin Highways.--If the 104-mile portion of 
Wisconsin State Route 78 and United States Route 51 between 
Interstate Route 94 near Portage, Wisconsin, and Wisconsin 
State Route 29 south of Wausau, Wisconsin, is designated as 
part of the Interstate System under [section 139(a)] section 
103(c)(4)(A), the single axle weight, tandem axle weight, gross 
vehicle weight, and bridge formula limits set forth in 
subsection (a) shall not apply to the 104-mile portion with 
respect to the operation of any vehicle that could legally 
operate on the 104-mile portion before the date of the 
enactment of this subsection.
    (g) Operation of Certain Specialized Hauling Vehicles on 
Certain Pennsylvania Highways.--If the segment of United States 
Route 220 between Bedford and Bald Eagle, Pennsylvania, is 
designated as part of the Interstate System, the single axle 
weight, tandem axle weight, gross vehicle weight, and bridge 
formula limits set forth in subsection (a) shall not apply to 
that segment with respect to the operation of any vehicle which 
could have legally operated on that segment before the date of 
the enactment of this subsection.

Sec. 128. Public hearings

    (a) Any [State highway department]State transportation 
department which submits plans for a Federal-aid highway 
project involving the bypassing of, or going through, any city, 
town, or village, either incorporated or unincorporated, shall 
certify to the Secretary that it has had public hearings, or 
has afforded the opportunity for such hearings, and has 
considered the economic and social effects of such a location, 
its impact on the environment, and its consistency with the 
goals and objectives of such urban planning as has been 
promulgated by the community. Any [State highway 
department]State transportation department which submits plans 
for an Interstate System project shall certify to the Secretary 
that it has had public hearings at a convenient location, or 
has afforded the opportunity for such hearings, for the purpose 
of enabling persons in rural areas through or contiguous to 
whose property the highway will pass to express any objections 
they may have to the proposed locations of such highway. Such 
certification shall be accompanied by a report which indicates 
the consideration given to the economic, social, environmental, 
and other effects of the plan or highway location or design and 
various alternatives which were raised during the hearing or 
which were otherwise considered.
    (b) When hearings have been held under subsection (a), the 
[State highway department]State transportation department shall 
submit a copy of the transcript of said hearings to the 
Secretary, together with the certification and report.

Sec. 129. Toll roads, bridges, tunnels, and ferries

    (a) Basic Program.--
            (1) Authorization for federal participation.--
        Notwithstanding section 301 of this title and subject 
        to the provisions of this section, the Secretary shall 
        permit Federal participation in--
                    (A) initial construction of a toll highway, 
                bridge, or tunnel (other than a highway, 
                bridge, or tunnel on the Interstate System) or 
                approach thereto;
                    (B) reconstructing, resurfacing, restoring, 
                and rehabilitating a toll highway, bridge, or 
                tunnel (including a toll highway, bridge, or 
                tunnel subject to an agreement entered into 
                under this section or section 119(e) as in 
                effect on the day before the date of the 
                enactment of the Intermodal Surface 
                Transportation Efficiency Act of 1991) or 
                approach thereto;
                    (C) reconstruction or replacement of a 
                toll-free bridge or tunnel and conversion of 
                the bridge or tunnel to a toll facility;
                    (D) 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; and
                    (E) preliminary studies to determine the 
                feasibility of a toll facility for which 
                Federal participation is authorized under 
                subparagraph (A), (B), (C), or (D);
        on the same basis and in the same manner as in the 
        construction of free highways under this chapter.
            (2) Ownership.--Each highway, bridge, tunnel, or 
        approach thereto constructed under this subsection 
        must--
                    (A) be publicly owned, or
                    (B) be privately owned if the public 
                authority having jurisdiction over the highway, 
                bridge, tunnel, or approach has entered into a 
                contract with a private person or persons to 
                design, finance, construct, and operate the 
                facility and the public authority will be 
                responsible for complying with all applicable 
                requirements of this title with respect to the 
                facility.
            (3) Limitations on use of revenues.--Before the 
        Secretary may permit Federal participation under this 
        subsection in construction of a highway, bridge, or 
        tunnel located in a State, the public authority 
        (including the State transportation department) having 
        jurisdiction over the highway, bridge, or tunnel must 
        enter into an agreement with the Secretary which 
        provides that all toll revenues received from operation 
        of the toll facility will be used first for debt 
        service, for reasonable return on investment of any 
        private person financing the project, and for the costs 
        necessary for the proper operation and maintenance of 
        the toll facility, including reconstruction, 
        resurfacing, restoration, and rehabilitation. If the 
        State certifies annually that the tolled facility is 
        being adequately maintained, the State may use any toll 
        revenues in excess of amounts required under the 
        preceding sentence for any purpose for which Federal 
        funds may be obligated by a State under this title.
            (4) Special rule for funding.--In the case of a 
        toll highway, bridge, or tunnel under the jurisdiction 
        of a public authority of a State (other than the State 
        transportation department), upon request of the State 
        transportation department and subject to such terms and 
        conditions as such department and public authority may 
        agree, the Secretary shall reimburse such public 
        authority for the Federal share of the costs of 
        construction of the project carried out on the toll 
        facility under this subsection in the same manner and 
        to the same extent as such department would be 
        reimbursed if such project was being carried out by 
        such department. The reimbursement of funds under this 
        paragraph shall be from sums apportioned to the State 
        under this chapter and available for obligations on 
        projects on the Federal-aid system in such State on 
        which the project is being carried out.
            (5) 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.
            (6) Modifications.--If a public authority 
        (including a State transportation department) having 
        jurisdiction over a toll highway, bridge, or tunnel 
        subject to an agreement under this section or section 
        119(e), as in effect on the day before the effective 
        date of title I of the Intermodal Surface 
        Transportation Efficiency Act of 1991, requests 
        modification of such agreement, the Secretary shall 
        modify such agreement to allow the continuation of 
        tolls in accordance with paragraph (3) without 
        repayment of Federal funds.
            (7) Loans.--
                    (A) In general.--A State may loan to a 
                public or private entity constructing or 
                proposing to construct under this section a 
                toll facility or non-toll facility with a 
                dedicated revenue source an amount equal to all 
                or part of the Federal share of the cost of the 
                project if the project has a revenue source 
                specifically dedicated to it. Dedicated revenue 
                sources for non-toll facilities include excise 
                taxes, sales taxes, motor vehicle use fees, tax 
                on real property, tax increment financing, and 
                such other dedicated revenue sources as the 
                Secretary determines appropriate.
                    (B) Compliance with federal laws.--As a 
                condition of receiving a loan under this 
                paragraph, the public or private entity that 
                receives the loan shall ensure that the project 
                will be carried out in accordance with this 
                title and any other applicable Federal law, 
                including any applicable provision of a Federal 
                environmental law.
                    (C) Subordination of debt.--The amount of 
                any loan received for a project under this 
                paragraph may be subordinated to any other debt 
                financing for the project.
                    (D) Obligation of funds loaned.--Funds 
                loaned under this paragraph may only be 
                obligated for projects under this paragraph.
                    (E) Repayment.--The repayment of a loan 
                made under this paragraph shall commence not 
                later than 5 years after date on which the 
                facility that is the subject of the loan is 
                open to traffic.
                    (F) Term of loan.--The term of a loan made 
                under this paragraph shall not exceed 30 years 
                from the date on which the loan funds are 
                obligated.
                    (G) Interest.--A loan made under this 
                paragraph shall bear interest at or below 
                market interest rates, as determined by the 
                State, to make the project that is the subject 
                of the loan feasible.
                    (H) Reuse of funds.--Amounts repaid to a 
                State from a loan made under this paragraph may 
                be obligated--
                            (i) for any purpose for which the 
                        loan funds were available under this 
                        title; and
                            (ii) for the purchase of insurance 
                        or for use as a capital reserve for 
                        other forms of credit enhancement for 
                        project debt in order to improve credit 
                        market access or to lower interest 
                        rates for projects eligible for 
                        assistance under this title.
                    (I) Guidelines.--The Secretary shall 
                establish procedures and guidelines for making 
                loans under this paragraph.
            (8) Initial construction defined.--For purposes of 
        this subsection, the term ``initial construction'' 
        means the construction of a highway, bridge, or tunnel 
        at any time before it is open to traffic and does not 
        include any improvement to a highway, bridge, or tunnel 
        after it is open to traffic.
    (b) Notwithstanding the provisions of section 301 of this 
title, the Secretary may permit Federal participation under 
this title in the construction of a project constituting an 
approach to a ferry, whether toll or free, the route of [which 
has been approved under section 103(b) or (c) of this title as 
a part of one of the Federal-aid systems and has not] which is 
a public road and has not been designated as a route on the 
Interstate System. Such ferry may be either publicly or 
privately owned and operated, but the operating authority and 
the amount of fares charged for passage shall be under the 
control of a State agency or official, and all revenues derived 
from publicly owned or operated ferries shall be applied to 
payment of the cost of construction or acquisition thereof, 
including debt service, and to actual and necessary costs of 
operation, maintenance, repair, and replacement.
    (c) Notwithstanding section 301 of this title, the 
Secretary may permit Federal participation under this title in 
the construction of ferry boats and terminal facilities, 
whether toll or free in accordance with sections 103, 133, and 
149, subject to the following conditions:
            (1) It is not feasible to build a bridge, tunnel, 
        combination thereof, or other normal highway structure 
        in lieu of the use of such ferry.
            (2) The operation of the ferry shall be on a route 
        classified as a public road within the State and which 
        has not been designated as a route on the Interstate 
        System. Projects under this subsection may be eligible 
        for both ferry boats carrying cars and passengers and 
        ferry boats carrying passengers only.
            (3) Such ferry boat or ferry terminal facility 
        shall be publicly owned.
            (4) The operating authority and the amount of fares 
        charged for passage on such ferry shall be under the 
        control of the State or other public entity, and all 
        revenues derived therefrom shall be applied to actual 
        and necessary costs of operation, maintenance, and 
        repair, debt service, negotiated management fees, and 
        in the case of privately operated toll ferry, for a 
        reasonable rate of return.
            (5) Such ferry may be operated only within the 
        State (including the islands which comprise the State 
        of Hawaii and the islands which comprise the 
        Commonwealth of Puerto Rico) or between adjoining 
        States or between a point in a State and a point in the 
        Dominion of Canada. Except with respect to operations 
        between the islands which comprise the State of Hawaii, 
        operations between the islands which comprise the 
        Commonwealth of Puerto Rico, operations between a point 
        in a State and a point in the Dominion of Canada, and 
        operations between any two points in Alaska and between 
        Alaska and Washington, including stops at appropriate 
        points in the Dominion of Canada, no part of such ferry 
        operations shall be in any foreign or international 
        waters.
            (6) No such ferry shall be sold, leased, or 
        otherwise disposed of without the approval of the 
        Secretary. The Federal share of any proceeds from such 
        a disposition shall be credited to the unprogramed 
        balance of Federal-aid highway funds of the same class 
        last apportioned to such State. Any amounts so credited 
        shall be in addition to all other funds then 
        apportioned to such State and available for expenditure 
        in accordance with the provisions of this title.
    [(d) Pilot Program.--
            [(1) Authorization for federal participation.--
        Subject to the provisions of this subsection, the 
        Secretary shall establish a pilot program which permits 
        Federal participation in 7 toll facilities on the same 
        basis and in the same manner as in the construction of 
        free highways under this chapter.
            [(2) Limitation on types of facilities.--The 
        Secretary may only permit Federal participation under 
        this subsection in the following type of facilities:
                    [(A) The construction of a new toll 
                highway, bridge, or tunnel (other than a 
                highway on the Interstate System).
                    [(B) The reconstruction of an existing 
                highway, bridge, or tunnel to expand its 
                capacity (other than a highway, bridge, or 
                tunnel on the Interstate System).
            [(3) Limitation on number of facilities.--The 
        Secretary may only permit Federal participation under 
        this subsection in 7 facilities. One of such facilities 
        shall be carried out in each of the following: Orange 
        County, California, the State of Texas, the State of 
        Pennsylvania, the State of Florida, States of Georgia 
        and West Virginia, and the State of South Carolina. The 
        locations of the other 2 facilities shall be at the 
        discretion of the Secretary; except that not more than 
        2 facilities carried out under this subsection may be 
        located in a State. The Governor of the States of 
        Pennsylvania and West Virginia shall select the 
        facility to be carried out in such State. The toll 
        facility in Orange County, California, may be located 
        in more than 1 highway corridor to relieve congestion 
        on existing interstate routes in such County.
            [(4) Limitation on federal share.--Notwithstanding 
        any other provision of law, the Federal share payable 
        for the construction or reconstruction of a toll 
        highway, bridge, or tunnel under this subsection shall 
        not exceed 35 percent.
            [(5) Public ownership requirement.--Each highway, 
        bridge, tunnel, or approach thereto under this 
        subsection must be publicly owned and operated; except 
        that, under this subsection, Federal funds may 
        participate in the approaches to a toll highway, toll 
        bridge, or toll tunnel whether the highway, bridge, or 
        tunnel is to be or has been constructed by a State or 
        other public authority.
            [(6) Limitations on use of revenues.--Before the 
        Secretary may permit Federal participation under this 
        subsection in a State, the State highway (and in the 
        case of the State of TExas, the Texas Turnpike 
        Authority) department must enter into an agreement with 
        the Secretary which provides that all toll revenues 
        received from operation of the tolled facility 
        constructed or reconstructed under this subsection will 
        be used only on the tolled facility, and only for 
        construction or reconstruction costs, or for the costs 
        necessary for the proper operation, maintenance, and 
        debt service of the tolled facility, including 
        resurfacing, reconstruction, rehabilitation, and 
        restoration.
            [(7) Limitation on federal participation to 
        original construction.--Except for reconstruction to 
        expand capacity, toll facilities may receive Federal 
        participation under this chapter only once for the 
        original construction or reconstruction of the 
        facility.
            [(8) Effect on apportionment.--Toll mileage 
        constructed or reconstructed under this subsection 
        shall not be used to increase a State's apportionment 
        under any apportionment formula.
            [(9) New toll highway defined.--For purposes of 
        this subsection, the term ``new toll highway, bridge, 
        or tunnel'' shall mean initial construction of a 
        highway, bridge, or tunnel on a new location at any 
        time before it is open to traffic and shall not include 
        any improvements to a toll highway, bridge, or tunnel 
        after it is open to traffic.
            [(10) Special rule for funding of texas project.--
        Upon request of the Texas Department of Highways and 
        Public Transportation and subject to such terms and 
        conditions as such Department and the Texas Turnpike 
        Authority may agree, the Secretary shall reimburse the 
        Texas Turnpike Authority for the Federal share of the 
        costs of construction of the project carried out in the 
        State of Texas under this subsection in the same manner 
        and to the same extent as such Department would be 
        reimbursed if such project was being carried out by 
        such Department. The reimbursement of funds under this 
        paragraph shall be from sums apportioned to the State 
        of Texas under this chapter and available for 
        obligations on projects on the Federal-aid primary 
        system in such State.]

Sec. 130. Railway-highway crossings

    (a) Except as provided in subsection (d) of section 120 of 
this title and subsection (b) of this section, the entire cost 
of construction of projects for the elimination of hazards of 
railway-highway crossings, including the separation or 
protection of grades at crossings, the reconstruction of 
existing railroad grade crossing [structures, and] structures, 
the relocation of highways to eliminate grade crossings, 
trespassing countermeasures in the immediate vicinity of a 
public railway-highway grade crossing, railway-highway crossing 
safety education, enforcement of traffic laws relating to 
railway-highway crossing safety, and projects at privately 
owned railway-highway crossings if each such project is 
publicly sponsored and the Secretary determines that the 
project would serve a public benefit, may be paid from sums 
apportioned in accordance with section 104 of this title. In 
any case when the elimination of the hazards of a railway-
highway crossing can be effected by the relocation of a portion 
of a railway at a cost estimated by the Secretary to be less 
than the cost of such elimination by one of the methods 
mentioned in the first sentence of this section, then the 
entire cost of such relocation project, except as provided in 
subsection (d) of section 120 of this title and subsection (b) 
of this section, may be paid from sums apportioned in 
accordance with section 104 of this title.
    (b) The Secretary may classify the various types of 
projects involved in the elimination of hazards of railway-
highway crossings, and may set for each such classification a 
percentage of the costs of construction which shall be deemed 
to represent the net benefit to the railroad or railroads for 
the purpose of determining the railroad's share of the cost of 
construction. The percentage so determined shall in no case 
exceed 10 per centum. The Secretary shall determine the 
appropriate classification of each project.
    (c) Any railroad involved in a project for the elimination 
of hazards of railway-highway crossings paid for in whole or in 
part from sums made available for expenditure under this title, 
or prior Acts, shall be liable to the United States for the net 
benefit to the railroad determined under the classification of 
such project made pursuant to subsection (b) of this section. 
Such liability to the United States may be discharged by direct 
payment to the [State highway department]State transportation 
department of the State in which the project is located, in 
which case such payment shall be credited to the cost of the 
project. Such payment may consist in whole or in part of 
materials and labor furnished by the railroad in connection 
with the construction of such project. If any such railroad 
fails to discharge such liability within a six-month period 
after completion of the project, it shall be liable to the 
United States for its share of the cost, and the Secretary 
shall request the Attorney General to institute proceedings 
against such railroad for the recovery of the amount for which 
it is liable under this subsection. The Attorney General is 
authorized to bring such proceedings on behalf of the United 
States, in the appropriate district court of the United States, 
and the United States shall be entitled in such proceedings to 
recover such sums as it is considered and adjudged by the court 
that such railroad is liable for in the premises. Any amounts 
recovered by the United States under this subsection shall be 
credited to miscellaneous receipts.
    (d) Survey and Schedule of Projects.--Each State shall 
conduct and systematically maintain a survey of all highways to 
identify those railroad crossings which may require separation, 
relocation, or protective devices, and establish and implement 
a schedule of projects for this purpose. At a minimum, such a 
schedule shall provide signs for all railway-highway crossings. 
In a manner established by the Secretary, each State shall 
submit a report that describes completed railway-highway 
crossing projects funded under this section to the Department 
of Transportation for inclusion in the National Grade Crossing 
Inventory prepared by the Department of Transportation and the 
Association of American Railroads.
    [(e) Funds for Protective Devices.--At least \1/2\ of the 
funds authorized for and expended under this section shall be 
available for the installation of protective devices at 
railway-highway crossings. Sums authorized to be appropriated 
to carry out this section shall be available for obligation in 
the same manner as funds apportioned under section 104(b)(1) of 
this title.]
    (f) [Apportionment.--Twenty-five percent of the funds 
authorized to be appropriated to carry out this section shall 
be apportioned to the States in the same manner as sums are 
apportioned under section 104(b)(2) of this title, 25 percent 
of such funds shall be apportioned to the States in the same 
manner as sums are apportioned under section 104(b)(6) of this 
title, and 50 percent of such funds shall be apportioned to the 
States in the ratio that total railway-highway crossings in 
each State bears to the total of such crossings in all States.] 
Federal Share._The Federal share payable on account of any 
project financed with funds authorized to be appropriated to 
carry out this section shall be 90 percent of the cost thereof.
    (g) Annual Report.--Each State shall report to the 
Secretary not later than December 30 of each year on the 
progress being made to implement the railway-highway crossings 
program authorized by this section and the effectiveness of 
such improvements. Each State report shall contain an 
assessment of the costs of the various treatments employed and 
subsequent accident experience at improved locations. The 
Secretary shall submit a report to the Committee on Environment 
and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives not later than April 1 of each year, on the 
progress being made by the State in implementing projects to 
improve railway-highway crossings. The report shall include, 
but not be limited to, the number of projects undertaken, their 
distribution by cost range, road system, nature of treatment, 
and subsequent accident experience at improved locations. In 
addition, the Secretary's report shall analyze and evaluate 
each State program, identify any State found not to be in 
compliance with the schedule of improvements required by 
subsection (d) and include recommendations for future 
implementation of the railroad highway crossings program.
    (h) Use of Funds for Matching.--Funds authorized to be 
appropriated to carry out this section may be used to provide a 
local government with funds to be used on a matching basis when 
State funds are available which may only be spent when the 
local government produces matching funds for the improvement of 
railway-highway crossings.
    (i) Incentive Payments for At-Grade Crossing Closures.--
            (1) In general.--Notwithstanding any other 
        provision of this section and subject to paragraphs (2) 
        and (3), a State may, from sums available to the State 
        under this section, make incentive payments to local 
        governments in the State upon the permanent closure by 
        such governments of public at-grade railway-highway 
        crossings under the jurisdiction of such governments.
            (2) Incentive payments by railroads.--A State may 
        not make an incentive payment under paragraph (1) to a 
        local government with respect to the closure of a 
        crossing unless the railroad owning the tracks on which 
        the crossing is located makes an incentive payment to 
        the government with respect to the closure.
            (3) Amount of state payment.--The amount of the 
        incentive payment payable to a local government by a 
        State under paragraph (1) with respect to a crossing 
        may not exceed the lesser of--
                    (A) the amount of the incentive payment 
                paid to the government with respect to the 
                crossing by the railroad concerned under 
                paragraph (2); or
                    (B) $7,500.
            (4) Use of state payments.--A local government 
        receiving an incentive payment from a State under 
        paragraph (1) shall use the amount of the incentive 
        payment for transportation safety improvements.

Sec. 131. Control of outdoor advertising

    (a) The Congress hereby finds and declares that the 
erection and maintenance of outdoor advertising signs, 
displays, and devices in areas adjacent to the Interstate 
System and the primary system should be controlled in order to 
protect the public investment in such highways, to promote the 
safety and recreational value of public travel, and to preserve 
natural beauty.
    (b) Federal-aid highway funds apportioned on or after 
January 1, 1968, to any State which the Secretary determines 
has not made provision for effective control of the erection 
and maintenance along the Interstate System and the primary 
system of outdoor advertising signs, displays, and devices 
which are within six hundred and sixty feet of the nearest edge 
of the right-of-way and visible from the main traveled way of 
the system, and Federal-aid highway funds apportioned on or 
after January 1, 1975, or after the expiration of the next 
regular session of the State legislature, whichever is later, 
to any State which the Secretary determines has not made 
provision for effective control of the erection and maintenance 
along the Interstate System and the primary system of those 
additional outdoor advertising signs, displays, and devices 
which are more than six hundred and sixty feet off the nearest 
edge of the right-of-way, located outside of urban areas, 
visible from the main traveled way of the system, and erected 
with the purpose of their message being read from such main 
traveled way, shall be reduced by amounts equal to 10 per 
centum of the amounts which would otherwise be apportioned to 
such State under section 104 of this title, until such time as 
such State shall provide for such effective control. Any amount 
which is withheld from apportionment to any State hereunder 
shall be reapportioned to the other States. Whenever he 
determines it to be in the public interest, the Secretary may 
suspend, for such periods as he deems necessary, the 
application of this subsection to a State.
    (c) Effective control means that such signs, displays, or 
devices after January 1, 1968, if located within six hundred 
and sixty feet of the right-of-way and, on or after July 1, 
1975, or after the expiration of the next regular session of 
the State legislature, whichever is later, if located beyond 
six hundred and sixty feet of the right-of-way, located outside 
of urban areas, visible from the main traveled way of the 
system, and erected with the purpose of their message being 
read from such main traveled way, shall, pursuant to this 
section be limited to (1) directional and official signs and 
notices, which signs and notices shall include, but not be 
limited to, signs and notices pertaining to natural wonders, 
scenic and historical attractions, which are required or 
authorized by law, which shall conform to national standards 
hereby authorized to be promulgated by the Secretary hereunder, 
which standards shall contain provisions concerning lighting, 
size, number, and spacing of signs, and such other requirements 
as may be appropriate to implement this section, (2) signs, 
displays, and devices advertising the sale or lease of property 
upon which they are located, (3) signs, displays, and devices, 
including those which may be changed at reasonable intervals by 
electronic process or by remote control, advertising activities 
conducted on the property on which they are located, (4) signs 
lawfully in existence on October 22, 1965, determined by the 
State, subject to the approval of the Secretary, to be landmark 
signs, including signs on farm structures or natural surfaces, 
of historic or artistic significance the preservation of which 
would be consistent with the purposes of this section, and (5) 
signs, displays, and devices advertising the distribution by 
nonprofit organizations of free coffee to individuals traveling 
on the Interstate System or the primary system. For the 
purposes of this subsection, the term ``free coffee'' shall 
include coffee for which a donation may be made, but is not 
required.
    (d) In order to promote the reasonable, orderly and 
effective display of outdoor advertising while remaining 
consistent with the purposes of this section, signs, displays, 
and devices whose size, lighting and spacing, consistent with 
customary use is to be determined by agreement between the 
several States and the Secretary, may be erected and maintained 
within six hundred and sixty feet of the nearest edge of the 
right-of-way within areas adjacent to the Interstate and 
primary systems which are zoned industrial or commercial under 
authority of State law, or in unzoned commercial or industrial 
areas as may be determined by agreement between the several 
States and the Secretary. The States shall have full authority 
under their own zoning laws to zone areas for commercial or 
industrial purposes, and the actions of the States in this 
regard will be accepted for the purposes of this Act. Whenever 
a bona fide State, county, or local zoning authority has made a 
determination of customary use, such determination will be 
accepted in lieu of controls by agreements in the zoned 
commercial and industrial areas within the geographical 
jurisdiction of such authority. Nothing in this subsection 
shall apply to signs, displays, and devices referred to in 
clauses (2) and (3) of subsection (c) of this section.
    (e) Any sign, display, or device lawfully in existence 
along the Interstate System or the Federal-aid primary system 
on September 1, 1965, which does not conform to this section 
shall not be required to be removed until July 1, 1970. Any 
other sign, display, or device lawfully erected which does not 
conform to this section shall not be required to be removed 
until the end of the fifth year after it becomes nonconforming.
    (f) The Secretary shall, in consultations with the States, 
provide within the rights-of-way for areas at appropriate 
distances from interchanges on the Interstate System, on which 
signs, displays, and devices giving specific information in the 
interest of the traveling public may be erected and maintained. 
The Secretary may also, in consultation with the States, 
provide within the rights-of-way of the primary system for 
areas in which signs, displays, and devices giving specific 
information in the interest of the traveling public may be 
erected and maintained. Such signs shall conform to national 
standards to be promulgated by the Secretary.
    (g) Just compensation shall be paid upon the removal of any 
outdoor advertising sign, display, or device lawfully erected 
under State law and not permitted under subsection (c) of this 
section, whether or not removed pursuant to or because of this 
section. The Federal share of such compensation shall be 75 per 
centum. Such compensation shall be paid for the following:
            (A) The taking from the owner of such sign, 
        display, or device of all right, title, leasehold, and 
        interest in such sign, display, or device; and
            (B) The taking from the owner of the real property 
        on which the sign, display, or device is located, of 
        the right to erect and maintain such signs, displays, 
        and devices thereon.
    (h) All public lands or reservations of the United States 
which are adjacent to any portion of the Interstate System and 
the primary system shall be controlled in accordance with the 
provisions of this section and the national standards 
promulgated by the Secretary.
    (i) In order to provide information in the specific 
interest of the traveling public, the [State highway 
departments]State transportation departments are authorized to 
maintain maps and to permit information directories and 
advertising pamphlets to be made available at safety rest 
areas. Subject to the approval of the Secretary, a State may 
also establish information centers at safety rest areas and 
other travel information systems within the rights-of-way for 
the purpose of informing the public of places of interest 
within the State and providing such other information as a 
State may consider desirable. The Federal share of the cost of 
establishing such an information center or travel information 
system shall be that which is provided in section 120 for a 
highway project on that Federal-aid system to be served by such 
center or system.
    (j) Any [State highway department]State transportation 
department which has, under this section as in effect on June 
30, 1965, entered into an agreement with the Secretary to 
control the erection and maintenance of outdoor advertising 
signs, displays, and devices in areas adjacent to the 
Interstate System shall be entitled to receive the bonus 
payments as set forth in the agreement, but no such [State 
highway department]State transportation department shall be 
entitled to such payments unless the State maintains the 
control required under such agreement: Provided, That 
permission by a State to erect and maintain information 
displays which may be changed at reasonable intervals by 
electronic process or remote control and which provide public 
service information or advertise activities conducted on the 
property on which they are located shall not be considered a 
breach of such agreement or the control required thereunder. 
Such payments shall be paid only from appropriations made to 
carry out this section. The provisions of this subsection shall 
not be construed to exempt any State from controlling outdoor 
advertising as otherwise provided in this section.
    (k) Subject to compliance with subsection (g) of this 
section for the payment of just compensation, nothing in this 
section shall prohibit a State from establishing standards 
imposing stricter limitations with respect to signs, displays, 
and devices on the Federal-aid highway systems than those 
established under this section.
    (l) Not less than sixty days before making a final 
determination to withhold funds from a State under subsection 
(b) of this section, or to do so under subsection (b) of 
section 136, or with respect to failing to agree as to the 
size, lighting, and spacing of signs, displays, and devices or 
as to unzoned commercial or industrial areas in which signs, 
displays, and devices may be erected and maintained under 
subsection (d) of this section, or with respect to failure to 
approve under subsection (g) of section 136, the Secretary 
shall give written notice to the State of his proposed 
determination and a statement of the reasons therefor, and 
during such period shall give the State an opportunity for a 
hearing on such determination. Following such hearing the 
Secretary shall issue a written order setting forth his final 
determination and shall furnish a copy of such order to the 
State. Within forty-five days of receipt of such order, the 
State may appeal such order to any United States district court 
for such State, and upon the filing of such appeal such order 
shall be stayed until final judgment has been entered on such 
appeal. Summons may be served at any place in the United 
States. The court shall have jurisdiction to affirm the 
determination of the Secretary or to set it aside, in whole or 
in part. The judgment of the court shall be subject to review 
by the United States court of appeals for the circuit in which 
the State is located and to the Supreme Court of the United 
States upon certiorari or certification as provided in title 
28, United States Code, section 1254. If any part of an 
apportionment to a State is withheld by the Secretary under 
subsection (b) of this section or subsection (b) of section 
136, the amount so withheld shall not be reapportioned to the 
other States as long as a suit brought by such State under this 
subsection is pending. Such amount shall remain available for 
apportionment in accordance with the final judgment and this 
subsection. Funds withheld from apportionment and subsequently 
apportioned or reapportioned under this section shall be 
available for expenditure for three full fiscal years after the 
date of such apportionment or reapportionment as the case may 
be.
    (m) There is authorized to be appropriated to carry out the 
provisions of this section, out of any money in the Treasury 
not otherwise appropriated, not to exceed $20,000,000 for the 
fiscal year ending June 30, 1966, not to exceed $20,000,000 for 
the fiscal year ending June 30, 1967, not to exceed $2,000,000 
for the fiscal year ending June 30, 1970, not to exceed 
$27,000,000 for the fiscal year ending June 30, 1971, not to 
exceed $20,500,000 for the fiscal year ending June 30, 1972, 
and not to exceed $50,000,000 for the fiscal year ending June 
30, 1973. The provisions of this chapter relating to the 
obligation, period of availability and expenditure of Federal-
aid primary highway funds shall apply to the funds authorized 
to be appropriated to carry out this section after June 30, 
1967. Subject to approval by the Secretary in accordance with 
the program of projects approval process of section 105, a 
State may use any funds apportioned to it under section 104 of 
this title for removal of any sign, display, or device lawfully 
erected which does not conform to this section.
    (n) No sign, display, or device shall be required to be 
removed under this section if the Federal share of the just 
compensation to be paid upon removal of such sign, display, or 
device is not available to make such payment. Funds apportioned 
to a State under section 104 of this title shall not be treated 
for purposes of the preceding sentence as being available to 
the State for making such a payment except to the extent that 
the State, in its discretion, expends such funds for such a 
payment.
    (o) The Secretary may approve the request of a State to 
permit retention in specific areas defined by such State of 
directional signs, displays, and devices lawfully erected under 
State law in force at the time of their erection which do not 
conform to the requirements of subsection (c), where such 
signs, displays, and devices are in existence on the date of 
enactment of this subsection and where the State demonstrates 
that such signs, displays, and devices (1) provide directional 
information about goods and services in the interest of the 
traveling public, and (2) are such that removal would work a 
substantial economic hardship in such defined area.
    (p) In the case of any sign, display, or device required to 
be removed under this section prior to the date of enactment of 
the Federal-Aid Highway Act of 1974, which sign, display, or 
device was after its removal lawfully relocated and which as a 
result of the amendments made to this section by such Act is 
required to be removed, the United States shall pay 100 per 
centum of the just compensation for such removal (including all 
relocation costs).
    (q)(1) During the implementation of State laws enacted to 
comply with this section, the Secretary shall encourage and 
assist the States to develop sign controls and programs which 
will assure that necessary directional information about 
facilities providing goods and services in the interest of the 
traveling public will continue to be available to motorists. To 
this end the Secretary shall restudy and revise as appropriate 
existing standards for directional signs authorized under 
subsections 131(c)(1) and 131(f) to develop signs which are 
functional and esthetically compatible with their surroundings. 
He shall employ the resources of other Federal departments and 
agencies, including the National Endowment for the Arts, and 
employ maximum participation of private industry in the 
development of standards and systems of signs developed for 
those purposes.
    (2) Among other things the Secretary shall encourage States 
to adopt programs to assure that removal of signs providing 
necessary directional information, which also were providing 
directional information on June 1, 1972, about facilities in 
the interest of the traveling public, be deferred until all 
other nonconforming signs are removed.
    (r) Removal of Illegal Signs.--
            (1) By owners.--Any sign, display, or device along 
        the Interstate System or the Federal-aid primary system 
        which was not lawfully erected, shall be removed by the 
        owner of such sign, display, or device not later than 
        the 90th day following the effective date of this 
        subsection.
            (2) By states.--If any owner does not remove a 
        sign, display, or device in accordance with paragraph 
        (1), the State within the borders of which the sign, 
        display, or device is located shall remove the sign, 
        display, or device. The owner of the removed sign, 
        display, or device shall be liable to the State for the 
        costs of such removal. Effective control under this 
        section includes compliance with the first sentence of 
        this paragraph.
    (s) Scenic Byway Prohibition.--If a State has a scenic 
byway program, the State may not allow the erection along any 
highway on the Interstate System or Federal-aid primary system 
which before, on, or after the effective date of this 
subsection, is designated as a scenic byway under such program 
of any sign, display, or device which is not in conformance 
with subsection (c) of this section. Control of any sign, 
display, or device on such a highway shall be in accordance 
with this section. In designating a scenic byway for purposes 
of this section and section 1047 of the Intermodal Surface 
Transportation Efficiency Act of 1991, a State may exclude from 
such designation any segment of a highway that is inconsistent 
with the State's criteria for designating State scenic byways. 
Nothing in the preceding sentence shall preclude a State from 
signing any such excluded segment, including such segment on a 
map, or carrying out similar activities, solely for purposes of 
system continuity.
    (t) Primary System Defined.--For purposes of this section, 
the terms ``primary system'' and ``Federal-aid primary system'' 
mean the Federal-aid primary system in existence on June 1, 
1991, and any highway which is not on such system but which is 
on the National Highway System.

Sec. 132. Payments on Federal-aid projects undertaken by a Federal 
                    agency

    Where a proposed Federal-aid project is to be undertaken by 
a Federal agency pursuant to an agreement between a State and 
such Federal agency and the State makes a deposit with or 
payment to such Federal agency as may be required in 
fulfillment of the State's obligation under such agreement for 
the work undertaken or to be undertaken by such Federal agency, 
the Secretary, upon execution of a project agreement with such 
State for the proposed Federal-aid project, may reimburse the 
State out of the appropriate appropriations the estimated 
Federal share under the provisions of this title of the State's 
obligation so deposited or paid by such State. Upon completion 
of such project and its acceptance by the Secretary, an 
adjustment shall be made in such Federal share payable on 
account of such project based on the final cost thereof. Any 
sums reimbursed to the State under this section which may be in 
excess of the Federal pro rata share under the provisions of 
this title of the State's share of the cost as set forth in the 
approved final voucher submitted by the State shall be 
recovered and credited to the same class of funds from which 
the Federal payment under this section was made.

Sec. 133. Surface transportation program

    (a) [Establishment.--The Secretary shall establish] In 
General._The Secretary shall carry out a surface transportation 
program in accordance with this section.
    (b) Eligible Projects.--A State may obligate funds 
apportioned to it under section 104(b)(3) for the surface 
transportation program only for the following:
            (1) Construction, reconstruction, rehabilitation, 
        resurfacing, restoration, and operational improvements 
        for highways (including Interstate highways) and 
        bridges (including bridges on public roads of all 
        functional classifications), including any such 
        construction or reconstruction necessary to accommodate 
        other transportation modes, and including the seismic 
        retrofit and painting of and application of calcium 
        magnesium acetate on bridges and approaches thereto and 
        other elevated structures, mitigation of damage to 
        wildlife, habitat, and ecosystems caused by a 
        transportation project funded under this title.
            (2) Capital costs for transit projects eligible for 
        assistance under chapter 53 of title 49[ and publicly 
        owned intracity or intercity bus terminals and 
        facilities] , including vehicles and facilities, 
        whether publicly or privately owned, that are used to 
        provide intercity passenger service by bus or rail.
            (3) Carpool projects, fringe and corridor parking 
        facilities and programs, [and] bicycle transportation 
        and pedestrian walkways in accordance with section 217 
        , and the modification of public sidewalks to comply 
        with the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.).
            (4) Highway , publicly owned passenger rail, and 
        transit safety infrastructure improvements and 
        programs, hazard eliminations, projects to mitigate 
        hazards caused by wildlife, and railway-highway grade 
        crossings , and any other noninfrastructure highway 
        safety improvements.
            (5) Highway and transit research and development 
        and technology transfer programs.
            (6) Capital and operating costs for traffic 
        monitoring, management, and control facilities and 
        programs.
            (7) Surface transportation planning programs.
            (8) Transportation enhancement activities.
            (9) Transportation control measures listed in 
        section 108(f)(1)(A) (other than clauses (xii) and 
        (xvi)) of the Clean Air Act.
            (10) Development and establishment of management 
        systems under section 303.
            (11) In accordance with all applicable Federal law 
        and regulations, participation in natural habitat and 
        wetlands mitigation efforts related to projects funded 
        under this title, which may include participation in 
        natural habitat and wetlands mitigation banks; 
        contributions to statewide and regional efforts to 
        conserve, restore, [enhance and create] enhance, and 
        create natural habitats and wetlands; and development 
        of statewide and regional natural habitat wetlands 
        conservation and mitigation plans, including any such 
        banks, efforts, and plans authorized pursuant to the 
        Water Resources Development Act of 1990 (including 
        crediting provisions). Contributions to such mitigation 
        efforts may take place concurrent with or in advance of 
        project construction. Contributions toward these 
        efforts may occur in advance of project construction 
        only if such efforts are consistent with all applicable 
        requirements of Federal law and regulations and State 
        transportation planning processes.
            (12) Construction of ferry boats and ferry terminal 
        facilities, if the conditions described in section 
        129(c) are met.
            (13) Publicly owned intercity passenger rail 
        infrastructure, including infrastructure owned by the 
        National Railroad Passenger Corporation.
            (14) Publicly owned passenger rail vehicles, 
        including vehicles owned by the National Railroad 
        Passenger Corporation.
            (15) Infrastructure-based intelligent 
        transportation systems capital improvements.
            (16) Publicly owned components of magnetic 
        levitation transportation systems.
            (17) Environmental restoration and pollution 
        abatement projects (including the retrofit or 
        construction of storm water treatment systems) to 
        address water pollution or environmental degradation 
        caused or contributed to by transportation facilities, 
        which projects shall be carried out when the 
        transportation facilities are undergoing 
        reconstruction, rehabilitation, resurfacing, or 
        restoration; except that the expenditure of funds under 
        this section for any such environmental restoration or 
        pollution abatement project shall not exceed 20 percent 
        of the total cost of the reconstruction, 
        rehabilitation, resurfacing, or restoration project.
    (c) Location of Projects.--Except as provided in subsection 
(b)(1), surface transportation program projects (other than 
those described in subsections (b) (3) and (4)) may not be 
undertaken on roads functionally classified as local or rural 
minor collectors, unless such roads are on a Federal-aid 
highway system on January 1, 1991, and except as approved by 
the Secretary.
    (d) Allocations of Apportioned Funds.--
            [(1) For safety programs.--10 percent of the funds 
        apportioned to a State under section 104(b)(3) for the 
        surface transportation program for a fiscal year shall 
        only be available for carrying out sections 130 and 152 
        of this title. Of the funds set aside under the 
        preceding sentence, the State shall reserve in such 
        fiscal year an amount of such funds for carrying out 
        each such section which is not less than the amount of 
        funds apportioned to the State in fiscal year 1991 
        under such section.]
            (1) Safety programs.--
                    (A) In general.--With respect to funds 
                apportioned for each of fiscal years 1998 
                through 2003--
                            (i) an amount equal to 2 percent of 
                        the amount apportioned to a State under 
                        section 104(b)(3) shall be available 
                        only to carry out activities eligible 
                        under section 130;
                            (ii) an amount equal to 2 percent 
                        of the amount apportioned to a State 
                        under section 104(b)(3) shall be 
                        available only to carry out activities 
                        eligible under section 152; and
                            (iii) an amount equal to 6 percent 
                        of the amount apportioned to a State 
                        under section 104(b)(3) shall be 
                        available only to carry out activities 
                        eligible under section 130 or 152.
                    (B) Transfer of funds.--If a State 
                certifies to the Secretary that any part of the 
                amount set aside by the State under 
                subparagraph (A)(i) is in excess of the needs 
                of the State for activities under section 130 
                and the Secretary accepts the certification, 
                the State may transfer that excess part to the 
                set-aside of the State under subparagraph 
                (A)(ii).
                    (C) Transfers to other safety programs.--A 
                State may transfer funds set aside under 
                subparagraph (A)(iii) to the apportionment of 
                the State under section 402 or the allocation 
                of the State under section 31104 of title 49.
            (2) For transportation enhancement activities.--
        [10] 8 percent of the funds apportioned to a State 
        under section 104(b)(3) for a fiscal year shall only be 
        available for transportation enhancement activities.
            (3) Division between urbanized areas of over 
        200,000 population and other areas.--
                    (A) General rule.--Except as provided in 
                subparagraphs (C) and (D), 62.5 percent of the 
                remaining [80] 82 percent of the funds 
                apportioned to a State under section 104(b)(3) 
                for a fiscal year shall be obligated under this 
                section--
                            (i) in urbanized areas of the State 
                        with an urbanized area population of 
                        over 200,000, and
                            (ii) in other areas of the State,
                in proportion to their relative share of the 
                State's population. The remaining 37.5 percent 
                may be obligated in any area of the State. 
                Funds attributed to an urbanized area under 
                clause (i) may be obligated in the metropolitan 
                area established under section 134 which 
                encompasses the urbanized area.
                    (B) Special rule for areas of less than 
                5,000 population.--Of the amounts required tobe 
                obligated under subparagraph (A)(ii), the State 
                shall obligate in areas of the State (other 
                than urban areas with a population greater than 
                5,000) an amount which is not less than 110 
                percent of the amount of funds apportioned to 
                the State for the Federal-aid secondary system 
                for fiscal year 1991.
                    (C) Special rule for certain states.--In 
                the case of a State in which--
                            (i) greater than 80 percent of the 
                        population of the State is located in 1 
                        or more metropolitan statistical areas, 
                        and
                            (ii) greater than 80 percent of the 
                        land area of such State is owned by the 
                        United States,
                the 62.5 percentage specified in the first 
                sentence of subparagraph (A) shall be 35 
                percent and the percentage specified in the 
                second sentence of subparagraph (A) shall be 65 
                percent.
                    (D) Noncontiguous states exemption.--
                Subparagraph (A) shall not apply to any State 
                which is noncontiguous with the continental 
                United States.
                    (E) Distribution between urbanized areas of 
                over 200,000 population.--The amount of funds 
                which a State is required to obligate under 
                subparagraph (A)(i) shall be obligated in 
                urbanized areas described in subparagraph 
                (A)(i) based on the relative population of such 
                areas; except that the State may obligate such 
                funds based on other factors if the State and 
                the relevant metropolitan planning 
                organizations jointly apply to the Secretary 
                for the permission to do so and the Secretary 
                grants the request.
            (4) Applicability of planning requirements.--
        Programming and expenditure of funds for projects under 
        this section shall be consistent with the requirements 
        of sections 134 and 135 of this title.
            (5) Applicability of certain requirements to third 
        party sellers.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), in the case of a 
                transportation enhancement activity funded from 
                the allocation required under paragraph (2), if 
                real property or an interest in real property 
                is to be acquired from a qualified organization 
                exclusively for conservation purposes (as 
                determined under section 170(h) of the Internal 
                Revenue Code of 1986), the organization shall 
                be considered to be the owner of the property 
                for the purpose of the Uniform Relocation 
                Assistance and Real Property Acquisition 
                Policies Act of 1970 (42 U.S.C. 4601 et seq.).
                    (B) Federal approval prior to involvement 
                of qualified organization.--If Federal approval 
                of the acquisition of the real property or 
                interest predates the involvement of a 
                qualified organization described in 
                subparagraph (A) in the acquisition of the 
                property, the organization shall be considered 
                to be an acquiring agency or person as 
                described in section 24.101(a)(2) of title 49, 
                Code of Federal Regulations, for the purpose of 
                the Uniform Relocation Assistance and Real 
                Property Acquisition Policies Act of 1970.
                    (C) Acquisitions on behalf of recipients of 
                federal funds.--If a qualified organization 
                described in subparagraph (A) has contracted 
                with a [State highway department]State 
                transportation department or other recipient of 
                Federal funds to acquire the real property or 
                interest on behalf of the recipient, the 
                organization shall be considered to be an agent 
                of the recipient for the purpose of the Uniform 
                Relocation Assistance and Real Property 
                Acquisition Policies Act of 1970.
    (e) Administration.--
            (1) Noncompliance.--If the Secretary determines 
        that a State or local government has failed to comply 
        substantially with any provision of this section, the 
        Secretary shall notify the State that, if the State 
        fails to take corrective action within 60 days from the 
        date of receipt of the notification, the Secretary will 
        withhold future apportionments under section 104(b)(3) 
        until the Secretary is satisfied that appropriate 
        corrective action has been taken.
            [(2) Certification.--The Governor of each State 
        shall certify before the beginning of each quarter of a 
        fiscal year that the State will meet all the 
        requirements of this section and shall notify the 
        Secretary of the amount of obligations expected to be 
        incurred for surface transportation program projects 
        during such quarter. A State may request adjustment to 
        the obligation amounts later in each of such quarters. 
        Acceptance of the notification and certification shall 
        be deemed a contractual obligation of the United States 
        for the payment of the surface transportation program 
        funds expected to be obligated by the State in such 
        quarter for projects not subject to review by the 
        Secretary under this chapter.]
            (2) Program approval.--
                    (A) Submission of project agreement.--For 
                each fiscal year, each State shall submit a 
                project agreement that--
                            (i) certifies that the State will 
                        meet all the requirements of this 
                        section; and
                            (ii) notifies the Secretary of the 
                        amount of obligations needed to carry 
                        out the program under this section.
                    (B) Request for adjustments of amounts.--As 
                necessary, each State shall request from the 
                Secretary adjustments to the amount of 
                obligations referred to in subparagraph 
                (A)(ii).
                    (C) Effect of approval by the secretary.--
                Approval by the Secretary of a project 
                agreement under subparagraph (A) shall be 
                deemed a contractual obligation of the United 
                States to pay surface transportation program 
                funds made available under this title
            (3) Payments.--
                    (A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall make 
                payments to a State of costs incurred by the 
                State for the surface transportation program in 
                accordance with procedures to be established by 
                the Secretary. [Payments shall not exceed the 
                Federal share of costs incurred as of the date 
                the State requests payments.]
                    (B) Advance payment option for 
                transportation enhancement activities.--
                            (i) In general.--The Secretary may 
                        advance funds to the State for 
                        transportation enhancement activities 
                        funded from the allocation required by 
                        subsection (d)(2) for a fiscal year[ if 
                        the Secretary certifies for the fiscal 
                        year that the State has authorized and 
                        uses a process for the selection of 
                        transportation enhancement projects 
                        that involves representatives of 
                        affected public entities, and private 
                        citizens, with expertise related to 
                        transportation enhancement activities].
                            (ii) Limitation on amounts.--
                        Amounts advanced under this 
                        subparagraph shall be limited to such 
                        amounts as are necessary to make prompt 
                        payments for project costs.
                            (iii) Effect on other 
                        requirements.--This subparagraph shall 
                        not exempt a State from other 
                        requirements of this title relating to 
                        the surface transportation program.
            (4) Population determinations.--The Secretary shall 
        use estimates prepared by the Secretary of Commerce 
        when determining population figures for purposes of 
        this section.
            (5) Transportation enhancement activities.--
                    (A) Categorical exclusions.--To the extent 
                appropriate, the Secretary shall develop 
                categorical exclusions from the requirement 
                that an environmental assessment or an 
                environmental impact statement under section 
                102 of the National Environmental Policy Act of 
                1969 (42 U.S.C. 4332) be prepared for 
                transportation enhancement activities funded 
                from the allocation required by subsection 
                (d)(2).
                    (B) Nationwide programmatic agreement.--The 
                Secretary, in consultation with the National 
                Conference of State Historic Preservation 
                Officers and the Advisory Council on Historic 
                Preservation established under title II of the 
                National Historic Preservation Act (16 U.S.C. 
                470i et seq.), shall develop a nationwide 
                programmatic agreement governing the review of 
                transportation enhancement activities funded 
                from the allocation required by subsection 
                (d)(2), in accordance with--
                            (i) section 106 of such Act (16 
                        U.S.C. 470f); and
                            (ii) the regulations of the 
                        Advisory Council on Historic 
                        Preservation.
                    (C) Innovative financing.--
                            (i) In general.--For each fiscal 
                        year, the average annual non-Federal 
                        share of the total cost of all projects 
                        to carry out transportation enhancement 
                        activities in a State shall be not less 
                        than the non-Federal share authorized 
                        for the State under section 120(b).
                            (ii) Exception.--Subject to clause 
                        (i), notwithstanding section 120, in 
                        the case of projects to carry out 
                        transportation enhancement activities--
                                    (I) funds from other 
                                Federal agencies, and other 
                                contributions that the 
                                Secretary determines are of 
                                value, may be credited toward 
                                the non-Federal share of 
                                project costs;
                                    (II) the non-Federal share 
                                may be calculated on a project, 
                                multiple-project, or program 
                                basis; and
                                    (III) the Federal share of 
                                the cost of an individual 
                                project subject to subclause 
                                (I) or (II) may be equal to 100 
                                percent.
    [(f) Allocation of Obligation Authority.--A State which is 
required to obligate in an urbanized area with an urbanized 
area population of over 200,000 under subsection (d) funds 
apportioned to it under section 104(b)(3) shall allocate during 
the 6-fiscal year period 1992 through 1997 an amount of 
obligation authority distributed to the State for Federal-aid 
highways and highway safety construction for use in such area 
determined by multiplying--
            [(1) the aggregate amount of funds which the State 
        is required to obligate in such area under subsection 
        (d) during such period; by
            [(2) the ratio of the aggregate amount of 
        obligation authority distributed to the State for 
        Federal-aid highways and highway safety construction 
        during such period to the total sums apportioned to the 
        State for Federal-aid highways and highway safety 
        construction (excluding sums not subject to an 
        obligation limitation) during such period.]
    (f) Obligation Authority.--
            (1) In general.--A State that is required to 
        obligate in an urbanized area with an urbanized area 
        population of over 200,000 individuals under subsection 
        (d) funds apportioned to the State under section 
        104(b)(3) shall make available during the 3-fiscal year 
        period of 1998 through 2000, and the 3-fiscal year 
        period of 2001 through 2003, an amount of obligation 
        authority distributed to the State for Federal-aid 
        highways and highway safety construction programs for 
        use in the area that is equal to the amount obtained by 
        multiplying--
                    (A) the aggregate amount of funds that the 
                State is required to obligate in the area under 
                subsection (d) during each such period; by
                    (B) the ratio that--
                            (i) the aggregate amount of 
                        obligation authority distributed to the 
                        State for Federal-aid highways and 
                        highway safety construction programs 
                        during the period; bears to
                            (ii) the total of the sums 
                        apportioned to the State for Federal-
                        aid highways and highway safety 
                        construction programs (excluding sums 
                        not subject to an obligation 
                        limitation) during the period.
            (2) Joint responsibility.--Each State, each 
        affected metropolitan planning organization, and the 
        Secretary shall jointly ensure compliance with 
        paragraph (1).

Sec. [134. Metropolitan planning

    [(a) General Requirements.--It is in the national interest 
to encourage and promote the development of transportation 
systems embracing various modes of transportation in a manner 
which will efficiently maximize mobility of people and goods 
within and through urbanized areas and minimize transportation-
related fuel consumption and air pollution. To accomplish this 
objective, metropolitan planning organizations, in cooperation 
with the State, shall develop transportation plans and programs 
for urbanized areas of the State. Such plans and programs shall 
provide for the development of transportation facilities 
(including pedestrian walkways and bicycle transportation 
facilities) which will function as an intermodal transportation 
system for the State, the metropolitan areas, and the Nation. 
The process for developing such plans and programs 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.
    [(b) 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 of more than 50,000 population 
        by agreement among the Governor and units of general 
        purpose local government which together represent at 
        least 75 percent of the affected population (including 
        the central city or cities as defined by the Bureau of 
        the Census) or in accordance with procedures 
        established by applicable State or local law.
            [(2) Membership of certain mpo's.--In a 
        metropolitan area designated as a transportation 
        management area, the metropolitan planning organization 
        designated for such area shall include local elected 
        officials, officials of agencies which administer or 
        operate major modes of transportation in the 
        metropolitan area (including all transportation 
        agencies included in the metropolitan planning 
        organization on June 1, 1991) and appropriate State 
        officials. This paragraph shall only apply to a 
        metropolitan planning organization which is 
        redesignated after the date of the enactment of this 
        section.
            [(3) Limitation on statutory construction.--Nothing 
        in this subsection shall be construed to interfere with 
        the authority, under any State law in effect on the 
        date of the enactment of this section, of a public 
        agency with multimodal transportation responsibilities 
        to--
                    [(A) develop plans and programs for 
                adoption by a metropolitan planning 
                organization; and
                    [(B) develop long-range capital plans, 
                coordinate transit services and projects, and 
                carry out other activities pursuant to State 
                law.
            [(4) Continuing designation.--Designations of 
        metropolitan planning organizations, whether made under 
        this section or other provisions of law, shall remain 
        in effect until redesignated under paragraph (5) or 
        revoked by agreement among the Governor and units of 
        general purpose local government which together 
        represent at least 75 percent of the affected 
        population or as otherwise provided under State or 
        local procedures.
            [(5) Redesignation.--
                    [(A) Procedures.--A metropolitan planning 
                organization may be redesignated by agreement 
                among the Governor and units of general purpose 
                local government which together represent at 
                least 75 percent of the affected population 
                (including the central city or cities as 
                defined by the Bureau of the Census) as 
                appropriate to carry out this section.
                    [(B) Certain requests to redesignate.--A 
                metropolitan planning organization shall be 
                redesignated upon request of a unit or units of 
                general purpose local government representing 
                at least 25 percent of the affected population 
                (including the central city or cities as 
                defined by the Bureau of the Census) in any 
                urbanized area (i) whose population is more 
                than 5,000,000 but less than 10,000,000, or 
                (ii) which is an extreme nonattainment area for 
                ozone or carbon monoxide as defined under the 
                Clean Air Act. Such redesignation shall be 
                accomplished using procedures established by 
                subparagraph (A).
            [(6) Treatment of large urban areas.--More than 1 
        metropolitan planning organization may be designated 
        within an urbanized area as defined by the Bureau of 
        the Census only if the Governor determines that the 
        size and complexity of the urbanized area make 
        designation of more than 1 metropolitan planning 
        organization for such area appropriate.
    [(c) Metropolitan Area Boundaries.--For the purposes of 
this section, the boundaries of a metropolitan area shall be 
determined by agreement between the metropolitan planning 
organization and the Governor. Each metropolitan area shall 
cover at least the existing urbanized area and the contiguous 
area expected to become urbanized within the 20-year forecast 
period and may encompass the entire metropolitan statistical 
area or consolidated metropolitan statistical area, as defined 
by the Bureau of the Census. For areas designated as 
nonattainment areas for ozone or carbon monoxide under the 
Clean Air Act, the boundaries of the metropolitan area shall at 
least include the boundaries of the nonattainment area, except 
as otherwise provided by agreement between the metropolitan 
planning organization and the Governor.
    [(d) Coordination in Multistate Areas.--
            [(1) In general.--The Secretary shall establish 
        such requirements as the Secretary considers 
        appropriate to encourage Governors and metropolitan 
        planning organizations with responsibility for a 
        portion of a multi-State metropolitan area to provide 
        coordinated transportation planning for the entire 
        metropolitan area.
            [(2) Compacts.--The consent of Congress is hereby 
        given to any 2 or more States 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 such activities pertain to interstate areas and 
        localities within such States and to establish such 
        agencies, joint or otherwise, as such States may deem 
        desirable for making such agreements and compacts 
        effective.
    [(e) Coordination of MPO's.--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, 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 programs 
required by this section.
    [(f) Factors To Be Considered.--In developing 
transportation plans and programs pursuant to this section, 
each metropolitan planning organization shall, at a minimum, 
consider the following:
            [(1) Preservation of existing transportation 
        facilities and, where practical, ways to meet 
        transportation needs by using existing transportation 
        facilities more efficiently.
            [(2) The consistency of transportation planning 
        with applicable Federal, State, and local energy 
        conservation programs, goals, and objectives.
            [(3) The need to relieve congestion and prevent 
        congestion from occurring where it does not yet occur.
            [(4) The likely effect of transportation policy 
        decisions on land use and development and the 
        consistency of transportation plans and programs with 
        the provisions of all applicable short- and long-term 
        land use and development plans.
            [(5) The programming of expenditure on 
        transportation enhancement activities as required in 
        section 133.
            (6) The effects of all transportation projects to 
        be undertaken within the metropolitan area, without 
        regard to whether such projects are publicly funded.
            [(7) International border crossings and access to 
        ports, airports, intermodal transportation facilities, 
        major freight distribution routes, national parks, 
        recreation areas, monuments and historic sites, and 
        military installations.
            [(8) The need for connectivity of roads within the 
        metropolitan area with roads outside the metropolitan 
        area.
            [(9) The transportation needs identified through 
        use of the management systems required by section 303 
        of this title.
            [(10) Preservation of rights-of-way for 
        construction of future transportation projects, 
        including identification of unused rights-of-way which 
        may be needed for future transportation corridors and 
        identification of those corridors for which action is 
        most needed to prevent destruction or loss.
            [(11) Methods to enhance the efficient movement of 
        freight.
            [(12) The use of life-cycle costs in the design and 
        engineering of bridges, tunnels, or pavement.
            [(13) The overall social, economic, energy, and 
        environmental effects of transportation decisions.
            [(14) Methods to expand and enhance transit 
        services and to increase the use of such services.
            [(15) Capital investments that would result in 
        increased security in transit systems.
            [(16) Recreational travel and tourism.
    [(g) Development of Long Range Plan.--
            [(1) In general.--Each metropolitan planning 
        organization shall prepare, and update periodically, 
        according to a schedule that the Secretary determines 
        to be appropriate, a long range plan for its 
        metropolitan area in accordance with the requirements 
        of this subsection.
            [(2) Long range plan.--A long range plan under this 
        section shall be in a form that the Secretary 
        determines to be appropriate and shall, at a minimum:
                    [(A) Identify transportation facilities 
                (including but not necessarily limited to major 
                roadways, transit, and multimodal and 
                intermodal facilities) that should function as 
                an integrated metropolitan transportation 
                system, giving emphasis to those facilities 
                that serve important national and regional 
                transportation functions. In formulating the 
                long range plan, the metropolitan planning 
                organization shall consider factors described 
                in subsection (f) as such factors relate to a 
                20-year forecast period.
                    [(B) Include a financial plan that 
                demonstrates how the long-range plan can be 
                implemented, indicates resources from public 
                and private sources that are reasonably 
                expected to be made available to carry out the 
                plan, and recommends any innovative financing 
                techniques to finance needed projects and 
                programs, including such techniques as value 
                capture, tolls and congestion pricing.
                    [(C) Assess capital investment and other 
                measures necessary to--
                            [(i) ensure the preservation of the 
                        existing metropolitan transportation 
                        system, including requirements for 
                        operational improvements, resurfacing, 
                        restoration, and rehabilitation of 
                        existing and future major roadways, as 
                        well as operations, maintenance, 
                        modernization, and rehabilitation of 
                        existing and future transit facilities; 
                        and
                            [(ii) make the most efficient use 
                        of existing transportation facilities 
                        to relieve vehicular congestion and 
                        maximize the mobility of people and 
                        goods.
                    [(D) Indicate as appropriate proposed 
                transportation enhancement activities.
            [(3) Coordination with clean air act agencies.--In 
        metropolitan areas which are in nonattainment for ozone 
        or carbon monoxide under the Clean Air Act, the 
        metropolitan planning organization shall coordinate the 
        development of a long range plan with the process for 
        development of the transportation control measures of 
        the State implementation plan required by the Clean Air 
        Act.
            [(4) Participation by interested parties.--Before 
        approving a long range plan, each metropolitan planning 
        organization shall provide citizens, affected public 
        agencies, representatives of transportation agency 
        employees, private providers of transportation, and 
        other interested parties with a reasonable opportunity 
        to comment on the long range plan, in a manner that the 
        Secretary deems appropriate.
            [(5) Publication of long range plan.--Each long 
        range plan prepared by a metropolitan planning 
        organization shall be--
                    [(i) published or otherwise made readily 
                available for public review; and
                    [(ii) submitted for information purposes to 
                the Governor at such times and in such manner 
                as the Secretary shall establish.
    [(h) Transportation Improvement Program.--
            [(1) Development.--The metropolitan planning 
        organization designated for a metropolitan area, in 
        cooperation with the State and affected transit 
        operators, shall develop a transportation improvement 
        program for the area for which such organization is 
        designated. In developing the program, the metropolitan 
        planning organization shall provide citizens, affected 
        public agencies, representatives of transportation 
        agency employees, other affected employee 
        representatives, private providers of transportation, 
        and other interested parties with a reasonable 
        opportunity to comment on the proposed program. The 
        program shall be updated at least once every 2 years 
        and shall be approved by the metropolitan planning 
        organization and the Governor.
            [(2) Priority of projects.--The transportation 
        improvement program shall include the following:
                    [(A) A priority list of projects and 
                project segments to be carried out within each 
                3-year period after the initial adoption of the 
                transportation improvement program.
                    [(B) A financial plan that demonstrates how 
                the 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 
                plan, and recommends any innovative financing 
                techniques to finance needed projects and 
                programs, including value capture, tolls, and 
                congestion pricing.
            [(3) Selection of projects.--Except as otherwise 
        provided in subsection (i)(4), project selection in 
        metropolitan areas for projects involving Federal 
        participation shall be carried out by the State in 
        cooperation with the metropolitan planning organization 
        and shall be in conformance with the transportation 
        improvement program for the area.
            [(4) Major capital investments.--Not later than 6 
        months after the date of the enactment of this section, 
        the Secretary shall initiate a rulemaking proceeding to 
        conform review requirements for transit projects under 
        the National Environmental Policy Act of 1969 to 
        comparable requirements under such Act applicable to 
        highway projects. Nothing in this section shall be 
        construed to affect the applicability of such Act to 
        transit or highway projects.
            [(5) Included projects.--A transportation 
        improvement program for a metropolitan area developed 
        under this subsection shall include projects within the 
        area which are proposed for funding under this title 
        and chapter 53 of title 49 and which are consistent 
        with the long range plan developed under subsection (g) 
        for the area. 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 within the time period contemplated for 
        completion of the project.
            [(6) Notice and comment.--Before approving a 
        transportation improvement program, a metropolitan 
        planning organization shall provide citizens, affected 
        public agencies, representatives of transportation 
        agency employees, private providers of transportation, 
        and other interested parties with reasonable notice of 
        and an opportunity to comment on the proposed program.
    [(i) Transportation Management Areas.--
            [(1) Designation.--The Secretary shall designate as 
        transportation management areas all urbanized areas 
        over 200,000 population. The Secretary shall designate 
        any additional area as a transportation management area 
        upon the request of the Governor and the metropolitan 
        planning organization designated for such area or the 
        affected local officials. Such additional areas shall 
        include upon such a request the Lake Tahoe Basin as 
        defined by Public Law 96-551.
            [(2) Transportation plans and programs.--Within a 
        transportation management area, transportation plans 
        and programs shall be based on a continuing and 
        comprehensive transportation planning process carried 
        out by the metropolitan planning organization in 
        cooperation with the State and transit operators.
            [(3) Congestion management system.--Within a 
        transportation management area, the transportation 
        planning process under this section shall include a 
        congestion management system that provides for 
        effective management 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. The 
        Secretary shall establish an appropriate phase-in 
        schedule for compliance with the requirements of this 
        section.
            [(4) Selection of projects.--All projects carried 
        out within the boundaries of a transportation 
        management area with Federal participation pursuant to 
        this title (excluding projects undertaken on the 
        National Highway System and pursuant to the bridge and 
        Interstate maintenance programs) or pursuant to chapter 
        53 of title 49 shall be selected by the metropolitan 
        planning organization designated for such area in 
        consultation with the State and in conformance with the 
        transportation improvement program for such area and 
        priorities established therein. Projects undertaken 
        within the boundaries of a transportation management 
        area on the National Highway System or pursuant to the 
        bridge and Interstate maintenance programs shall be 
        selected by the State in cooperation with the 
        metropolitan planning organization designated for such 
        area and shall be in conformance with the 
        transportation improvement program for such area.
            [(5) Certification.--The Secretary shall assure 
        that each metropolitan planning organization in each 
        transportation management area is carrying out its 
        responsibilities under applicable provisions of Federal 
        law, and shall so certify at least once every 3 years. 
        The Secretary may make such certification only if (1) a 
        metropolitan planning organization is complying with 
        the requirements of this section and other applicable 
        requirements of Federal law, and (2) there is a 
        transportation improvement program for the area that 
        has been approved by the metropolitan planning 
        organization and the Governor. If after September 30, 
        1993, a metropolitan planning organization is not 
        certified by the Secretary, the Secretary may withhold, 
        in whole or in part, the apportionment under section 
        104(b)(3) attributed to the relevant metropolitan area 
        pursuant to section 133(d)(3) and capital funds 
        apportioned under the formula program under section 
        5336 of title 49. If a metropolitan planning 
        organization remains uncertified for more than 2 
        consecutive years after September 30, 1994, 20 percent 
        of the apportionment attributed to that metropolitan 
        area under section 133(d)(3) and capital funds 
        apportioned under the formula program under section 
        5336 of title 49 shall be withheld. The withheld 
        apportionments shall be restored to the metropolitan 
        area at such time as the metropolitan planning 
        organization is certified by the Secretary. The 
        Secretary shall not withhold certification under this 
        section based upon the policies and criteria 
        established by a metropolitan planning organization or 
        transit grant recipient for determining the feasibility 
        of private enterprise participation in accordance with 
        section 5306(a) of title 49.
    [(j) Abbreviated Plans and Programs for Certain Areas.--For 
metropolitan areas not designated as transportation management 
areas under this section, the Secretary may provide for the 
development of abbreviated metropolitan transportation plans 
and programs that the Secretary determines to be appropriate to 
achieve the purposes of this section, taking into account the 
complexity of transportation problems, including transportation 
related air quality problems, in such areas. In no event shall 
the Secretary provide abbreviated plans or programs for 
metropolitan areas which are in nonattainment for ozone or 
carbon monoxide under the Clean Air Act.
    [(k) Transfer of Funds.--Funds made available for a highway 
project under chapter 53 of title 49 shall be transferred to 
and administered by the Secretary in accordance with the 
requirements of this title. Funds made available for a transit 
project under the Federal-Aid Highway Act of 1991 shall be 
transferred to and administered by the Secretary in accordance 
with the requirements of chapter 53 of title 49. The provisions 
of title 23, United States Code, regarding the non-Federal 
share shall apply to title 23 funds used for transit projects 
and the provisions of chapter 53 of title 49 regarding non-
Federal share shall apply to chapter 53 funds used for highway 
projects.
    [(l) Additional Requirements for Certain Nonattainment 
Areas.--Notwithstanding any other provisions of this title or 
chapter 53 of title 49, for transportation management areas 
classified as nonattainment for ozone or carbon monoxide 
pursuant to the Clean Air Act, Federal funds may not be 
programmed in such area for any highway project that will 
result in a significant increase in carrying capacity for 
single-occupant vehicles unless the project is part of an 
approved congestion management system.
    (m) 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.
    [(n) Reprogramming of Set Aside Funds.--Any funds set aside 
pursuant to section 104(f) of this title that are not used for 
the purpose of carrying out this section may be made available 
by the metropolitan planning organization to the State for the 
purpose of funding activities under section 135.]

Sec. 134. Metropolitan planning

    (a) General Requirements.--
            (1) Findings.--Congress finds that it is in the 
        national interest 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 within and through 
        urbanized areas, while minimizing transportation-
        related fuel consumption and air pollution.
            (2) Development of plans and programs.--To 
        accomplish the objective stated in paragraph (1), 
        metropolitan planning organizations designated under 
        subsection (b), in cooperation with the State and 
        public transit operators, shall develop transportation 
        plans and programs for urbanized areas of the State.
            (3) Contents.--The plans and programs for each 
        metropolitan area shall provide for the development and 
        integrated management and operation of transportation 
        systems and facilities (including pedestrian walkways 
        and bicycle transportation facilities) that will 
        function as an intermodal transportation system for the 
        metropolitan area and as an integral part of an 
        intermodal transportation system for the State and the 
        United States.
            (4) Process.--The process for developing the plans 
        and programs 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.
    (b) 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 central city 
                or cities as defined by the Bureau of the 
                Census); or
                    (B) in accordance with procedures 
                established by applicable State or local law.
            (2) Redesignation.--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 affected population (including the central city 
        or cities as defined by the Bureau of the Census) as 
        appropriate to carry out this section.
            (3) 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.
            (4) Structure.--Each policy board of a metropolitan 
        planning organization that serves an area designated as 
        a transportation management area, when designated or 
        redesignated under this subsection, 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 all transportation agencies included 
                in the metropolitan planning organization as of 
                June 1, 1991); and
                    (C) appropriate State officials.
            (5) Other authority.--Nothing in this subsection 
        interferes with the authority, under any State law in 
        effect on December 18, 1991, of a public agency with 
        multimodal transportation responsibilities to--
                    (A) develop plans and programs for adoption 
                by a metropolitan planning organization; or
                    (B) develop long-range capital plans, 
                coordinate transit services and projects, and 
                carry out other activities under State law.
    (c) 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; and
                    (B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of 
                the Census.
            (3) Existing metropolitan planning areas in 
        nonattainment.--Notwithstanding paragraph (2), in the 
        case of an area designated as a nonattainment area for 
        ozone or carbon monoxide under the Clean Air Act (42 
        U.S.C. 7401 et seq.), the boundaries of the 
        metropolitan planning area in existence as of the date 
        of enactment of the Intermodal Surface Transportation 
        Efficiency Act of 1997, shall be retained, except that 
        the boundaries may be adjusted by agreement of the 
        affected metropolitan planning organizations and 
        Governors in the manner described in subsection (b)(2).
            (4) New metropolitan planning areas in 
        nonattainment.--In the case of an urbanized area 
        designated after the date of enactment of the 
        Intermodal Surface Transportation Efficiency Act of 
        1997 as a nonattainment area for ozone or carbon 
        monoxide, the boundaries of the metropolitan planning 
        area--
                    (A) shall be established by agreement 
                between the appropriate units of general 
                purpose local government (including the central 
                city) and the Governor;
                    (B) shall encompass at least the urbanized 
                area and the contiguous area expected to become 
                urbanized within a 20-year forecast period;
                    (C) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of 
                the Census; 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.
    (d) 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.
    (e) Coordination of Metropolitan Planning Organizations.--
If more than 1 metropolitan planning organization has authority 
within a metropolitan planning area or an area that is 
designated as a nonattainment area for ozone or carbon monoxide 
under the Clean Air Act (42 U.S.C. 7401 et seq.), each such 
metropolitan planning organization shall consult with the other 
metropolitan planning organizations designated for the area and 
the State in the development of plans and programs required by 
this section.
    (f) Scope of Planning Process.--The metropolitan 
transportation planning process for a metropolitan area under 
this section shall consider the following:
            (1) Supporting the economic vitality of the 
        metropolitan area, especially by enabling global 
        competitiveness, productivity, and efficiency.
            (2) Increasing the safety and security of the 
        transportation system for motorized and nonmotorized 
        users.
            (3) Increasing the accessibility and mobility 
        options available to people and for freight.
            (4) Protecting and enhancing the environment, 
        promoting energy conservation, and improving quality of 
        life through land use planning.
            (5) Enhancing the integration and connectivity of 
        the transportation system, across and between modes, 
        for people and freight.
            (6) Promoting efficient system management and 
        operation.
            (7) Emphasizing the preservation of the existing 
        transportation system.
    (g) Development of Long-Range Transportation Plan.--
            (1) In general.--
                    (A) Development.--In accordance with this 
                subsection, each metropolitan planning 
                organization shall develop, and update 
                periodically, according to a schedule that the 
                Secretary determines to be appropriate, a long-
                range transportation plan for its metropolitan 
                area.
                    (B) Forecast period.--In developing long-
                range transportation plans, the metropolitan 
                planning process shall address--
                            (i) the considerations under 
                        subsection (f); and
                            (ii) any State or local goals 
                        developed within the cooperative 
                        metropolitan planning process;
                as they relate to a 20-year forecast period and 
                to other forecast periods as determined by the 
                participants in the planning process.
                    (C) Funding estimates.--For the purpose of 
                developing the long-range transportation plan, 
                the State shall consult with the metropolitan 
                planning organization and each public transit 
                agency in developing estimates of funds that 
                are reasonably expected to be available to 
                support plan implementation.
            (2) Long-range transportation plan.--A long-range 
        transportation plan under this subsection shall, at a 
        minimum, contain--
                    (A) an identification of transportation 
                facilities (including major roadways and 
                transit, multimodal, and intermodal facilities) 
                that should function as a future integrated 
                transportation system, giving emphasis to those 
                facilities that serve important national, 
                regional, and metropolitan transportation 
                functions;
                    (B) an identification of transportation 
                strategies necessary to--
                            (i) ensure preservation, including 
                        requirements for management, operation, 
                        modernization, and rehabilitation, of 
                        the existing and future transportation 
                        system; and
                            (ii) make the most efficient use of 
                        existing transportation facilities to 
                        relieve congestion, to efficiently 
                        serve the mobility needs of people and 
                        goods, and to enhance access within the 
                        metropolitan planning area; and
                    (C) a financial plan that demonstrates how 
                the long-range transportation plan can be 
                implemented, indicates total resources from 
                public and private sources that are reasonably 
                expected to be available to carry out the plan 
                (without any requirement for indicating 
                project-specific funding sources), and 
                recommends any additional financing strategies 
                for needed projects and programs.
            (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 long-range 
        transportation plan with the process for development of 
        the transportation control measures of the State 
        implementation plan required by that Act.
            (4) Participation by interested parties.--Before 
        adopting a long-range transportation plan, each 
        metropolitan planning organization shall provide 
        citizens, affected public agencies, representatives of 
        transportation agency employees, freight shippers, 
        private providers of transportation, and other 
        interested parties with a reasonable opportunity to 
        comment on the long-range transportation plan.
            (5) Publication of long-range transportation 
        plan.--Each long-range transportation plan prepared by 
        a metropolitan planning organization shall be--
                    (A) published or otherwise made readily 
                available for public review; and
                    (B) submitted for information purposes to 
                the Governor at such times and in such manner 
                as the Secretary shall establish.
    (h) Metropolitan Transportation Improvement Program.--
            (1) Development.--
                    (A) In general.--In cooperation with the 
                State and any affected public transit operator, 
                the metropolitan planning organization 
                designated for a metropolitan area shall 
                develop a transportation improvement program 
                for the area for which the organization is 
                designated.
                    (B) Opportunity for comment.--In developing 
                the program, the metropolitan planning 
                organization, in cooperation with the State and 
                any affected public transit operator, shall 
                provide citizens, affected public agencies, 
                representatives of transportation agency 
                employees, other affected employee 
                representatives, freight shippers, private 
                providers of transportation, and other 
                interested parties with a reasonable 
                opportunity to comment on the proposed program.
                    (C) Funding estimates.--For the purpose of 
                developing the transportation improvement 
                program, the metropolitan planning 
                organization, public transit 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 program 
                shall be updated at least once every 2 years 
                and shall be approved by the metropolitan 
                planning organization and the Governor.
            (2) Contents.--The transportation improvement 
        program shall include--
                    (A) a list, in order of priority, of 
                proposed federally supported projects and 
                strategies to be carried out within each 3-
                year-period after the initial adoption of the 
                transportation improvement program; and
                    (B) a financial plan that--
                            (i) demonstrates how the 
                        transportation improvement program can 
                        be implemented;
                            (ii) indicates resources from 
                        public and private sources that are 
                        reasonably expected to be available to 
                        carry out the program (without any 
                        requirement for indicating project-
                        specific funding sources); and
                            (iii) identifies innovative 
                        financing techniques to finance 
                        projects, programs, and strategies 
                        (without any requirement for indicating 
                        project-specific funding sources).
            (3) Included projects.--
                    (A) Chapter 1 and chapter 53 projects.--A 
                transportation improvement program developed 
                under this subsection for a metropolitan area 
                shall include the projects and strategies 
                within the area that are proposed for funding 
                under chapter 1 of this title and chapter 53 of 
                title 49.
                    (B) Chapter 2 projects.--
                            (i) Regionally significant 
                        projects.--Regionally significant 
                        projects proposed for funding under 
                        chapter 2 of this title shall be 
                        identified individually in the 
                        transportation improvement program.
                            (ii) Other projects.--Projects 
                        proposed for funding under chapter 2 of 
                        this title 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 (g) 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 within the time 
                period contemplated for completion of the 
                project.
            (4) Notice and comment.--Before approving a 
        transportation improvement program, a metropolitan 
        planning organization shall, in cooperation with the 
        State and any affected public transit operator, provide 
        citizens, affected public agencies, representatives of 
        transportation agency employees, private providers of 
        transportation, and other interested parties with 
        reasonable notice of and an opportunity to comment on 
        the proposed program.
            (5) Selection of projects.--
                    (A) In general.--Except as otherwise 
                provided in subsection (i)(4) and in addition 
                to the transportation improvement program 
                development required under paragraph (1), the 
                selection of federally funded projects for 
                implementation in metropolitan areas shall be 
                carried out, from the approved transportation 
                improvement program--
                            (i) by--
                                    (I) in the case of projects 
                                under chapter 1, the State; and
                                    (II) in the case of 
                                projects under chapter 53 of 
                                title 49, the designated 
                                transit funding recipients; 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 
                transportation improvement program in place of 
                another project of higher priority in the 
                program.
    (i) Transportation Management Areas.--
            (1) Designation.--
                    (A) Required designations.--The Secretary 
                shall designate as a transportation management 
                area each urbanized area 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 and programs.--Within a 
        transportation management area, transportation plans 
        and programs shall be based on a continuing and 
        comprehensive transportation planning process carried 
        out by the metropolitan planning organization in 
        cooperation with the State and any affected public 
        transit operator.
            (3) Congestion management system.--Within a 
        transportation management area, the transportation 
        planning process under this section shall include a 
        congestion management system that provides for 
        effective management 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.
            (4) Selection of projects.--
                    (A) In general.--In addition to the 
                transportation improvement program development 
                required under subsection (h)(1), all federally 
                funded projects carried out within the 
                boundaries of 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 transportation 
                improvement program by the metropolitan 
                planning organization designated for the area 
                in consultation with the State and any affected 
                public transit operator.
                    (B) National highway system projects.--
                Projects carried out within the boundaries of a 
                transportation management area on the National 
                Highway System shall be selected for 
                implementation from the approved transportation 
                improvement program 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 in each 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 
                        3 years, that the requirements of this 
                        paragraph are met with respect to the 
                        transportation management area.
                    (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 transportation 
                        improvement program for the area that 
                        has been approved by the metropolitan 
                        planning organization and the Governor.
                    (C) Effect of failure to certify.--
                            (i) Withholding of funds.--If a 
                        metropolitan planning process is not 
                        certified, the Secretary may withhold 
                        up to 20 percent of the apportioned 
                        funds attributable to the 
                        transportation management area under 
                        this title and chapter 53 of title 49.
                            (ii) Restoration of withheld 
                        funds.--The withheld apportionments 
                        shall be restored to the metropolitan 
                        area at such time as the metropolitan 
                        planning organization is certified by 
                        the Secretary.
                            (iii) Feasibility of private 
                        enterprise participation.--The 
                        Secretary shall not withhold 
                        certification under this paragraph 
                        based on the policies and criteria 
                        established by a metropolitan planning 
                        organization or transit grant recipient 
                        for determining the feasibility of 
                        private enterprise participation in 
                        accordance with section 5306(a) of 
                        title 49.
    (j) Abbreviated Plans and Programs 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 metropolitan transportation plan and 
        program 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 programs 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.).
    (k) Additional Requirements for Certain Nonattainment 
Areas.--
            (1) In general.--Notwithstanding any other 
        provision of this title or chapter 53 of title 49, in 
        the case of a transportation management area classified 
        as nonattainment for ozone or carbon monoxide under the 
        Clean Air Act (42 U.S.C. 7401 et seq.), Federal funds 
        may not be programmed in the area for any highway 
        project that will result in a significant increase in 
        carrying capacity for single occupant vehicles unless 
        the project results from an approved congestion 
        management system.
            (2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning 
        area boundaries determined under subsection (c).
    (l) Limitation.--Nothing in this section confers on a 
metropolitan planning organization the authority to impose any 
legal requirement on any transportation facility, provider, or 
project not eligible for assistance under this title or chapter 
53 of title 49.
    (m) Funding.--
            (1) In general.--Funds set aside under section 
        104(f) of this title and section 5303 of title 49 shall 
        be available to carry out this section.
            (2) Unused funds.--Any funds that are not used to 
        carry out this section may be made available by the 
        metropolitan planning organization to the State to fund 
        activities under section 135.

[Sec. 135. Statewide planning

    [(a) General Requirements.--It is in the national interest 
to encourage and promote the development of transportation 
systems embracing various modes of transportation in a manner 
that will serve all areas of the State efficiently and 
effectively. Subject to section 134 of this title, the State 
shall develop transportation plans and programs for all areas 
of the State. Such plans and programs shall provide for 
development of transportation facilities (including pedestrian 
walkways and bicycle transportation facilities) which will 
function as an intermodal State transportation system. The 
process for developing such plans and programs 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.
    [(b) Coordination With Metropolitan Planning; State 
Implementation Plan.--In carrying out planning under this 
section, a State shall coordinate such planning with the 
transportation planning activities carried out under section 
134 of this title for metropolitan areas of the State and shall 
carry out its responsibilities for the development of the 
transportation portion of the State implementation plan to the 
extent required by the Clean Air Act.
    [(c) State Planning Process.--Each State shall undertake a 
continuous transportation planning process which shall, at a 
minimum, consider the following:
            [(1) The results of the management systems required 
        pursuant to subsection (b).
            [(2) Any Federal, State, or local energy use goals, 
        objectives, programs, or requirements.
            [(3) Strategies for incorporating bicycle 
        transportation facilities and pedestrian walkways in 
        projects where appropriate throughout the State.
            [(4) International border crossings and access to 
        ports, airports, intermodal transportation facilities, 
        major freight distribution routes, national parks, 
        recreation and scenic areas, monuments and historic 
        sites, and military installations.
            [(5) The transportation needs of nonmetropolitan 
        areas through a process that includes consultation with 
        local elected officials with jurisdiction over 
        transportation.
            [(6) Any metropolitan area plan developed pursuant 
        to section 134.
            [(7) Connectivity between metropolitan areas within 
        the State and with metropolitan areas in other States.
            [(8) Recreational travel and tourism.
            [(9) Any State plan developed pursuant to the 
        Federal Water Pollution Control Act.
            [(10) Transportation system management and 
        investment strategies designed to make the most 
        efficient use of existing transportation facilities.
            [(11) The overall social, economic, energy, and 
        environmental effects of transportation decisions.
            [(12) Methods to reduce traffic congestion and to 
        prevent traffic congestion from developing in areas 
        where it does not yet occur, including methods which 
        reduce motor vehicle travel, particularly single-
        occupant motor vehicle travel.
            [(13) Methods to expand and enhance transit 
        services and to increase the use of such services.
            [(14) The effect of transportation decisions on 
        land use and land development, including the need for 
        consistency between transportation decisionmaking and 
        the provisions of all applicable short-range and long-
        range land use and development plans.
            [(15) The transportation needs identified through 
        use of the management systems required by section 303 
        of this title.
            [(16) Where appropriate, the use of innovative 
        mechanisms for financing projects, including value 
        capture pricing, tolls, and congestion pricing.
            [(17) Preservation of rights-of-way for 
        construction of future transportation projects, 
        including identification of unused rights-of-way which 
        may be needed for future transportation corridors, and 
        identify those corridors for which action is most 
        needed to prevent destruction or loss.
            [(18) Long-range needs of the State transportation 
        system.
            [(19) Methods to enhance the efficient movement of 
        commercial motor vehicles.
            [(20) The use of life-cycle costs in the design and 
        engineering of bridges, tunnels, or pavement.
    [(d) Additional Requirements.--Each State in carrying out 
planning under this section shall, at a minimum, consider the 
following:
            [(1) The coordination of transportation plans and 
        programs developed for metropolitan areas of the State 
        under section 134 with the State transportation plans 
        and programs developed under this section and the 
        reconciliation of such plans and programs as necessary 
        to ensure connectivity within transportation systems.
            [(2) Investment strategies to improve adjoining 
        State and local roads that support rural economic 
        growth and tourism development, Federal agency 
        renewable resources management, and multipurpose land 
        management practices, including recreation development.
            [(3) The concerns of Indian tribal governments 
        having jurisdiction over lands within the boundaries of 
        the State.
    [(e) Long-Range Plan.--The State shall develop a long-range 
transportation plan for all areas of the State. With respect to 
metropolitan areas of the State, the plan shall be developed in 
cooperation with metropolitan planning organizations designated 
for metropolitan areas in the State under section 134. With 
respect to areas of the State under the jurisdiction of an 
Indian tribal government, the plan shall be developed in 
cooperation with such government and the Secretary of the 
Interior. In developing the plan, the State shall provide 
citizens, affected public agencies, representatives of 
transportation agency employees, other affected employee 
representatives, private providers of transportation, and other 
interested parties with a reasonable opportunity to comment on 
the proposed plan. In addition, the State shall develop a long-
range plan for bicycle transportation and pedestrian walkways 
for appropriate areas of the State which shall be incorporated 
into the long-range transportation plan.
    [(f) Transportation Improvement Program.--
            [(1) Development.--The State shall develop a 
        transportation improvement program for all areas of the 
        State. With respect to metropolitan areas of the State, 
        the program shall be developed in cooperation with 
        metropolitan planning organizations designated for 
        metropolitan areas in the State under section 134. In 
        developing the program, the Governor shall provide 
        citizens, affected public agencies, representatives of 
        transportation agency employees, other affected 
        employee representatives, private providers of 
        transportation, and other interested parties with a 
        reasonable opportunity to comment on the proposed 
        program.
            [(2) Included projects.--A transportation 
        improvement program for a State developed under this 
        subsection shall include projects within the boundaries 
        of the State which are proposed for funding under this 
        title and chapter 53 of title 49, which are consistent 
        with the long-range plan developed under this section 
        for the State, which are consistent with the 
        metropolitan transportation improvement program, and 
        which in areas designated as nonattainment for ozone or 
        carbon monoxide under the Clean Air Act conform with 
        the applicable State implementation plan developed 
        pursuant to the Clean Air Act. 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 such project within the time period 
        contemplated for completion of the project. The program 
        shall also reflect the priorities for programming and 
        expenditures of funds, including transportation 
        enhancements, required by this title.
            [(3) Project selection for areas less than 50,000 
        population.--Projects undertaken in areas of less than 
        50,000 population (excluding projects undertaken on the 
        National Highway System and pursuant to the bridge and 
        Interstate maintenance programs) shall be selected by 
        the State in cooperation with the affected local 
        officials. Projects undertaken in such areas on the 
        National Highway System or pursuant to the bridge and 
        Interstate maintenance programs shall be selected by 
        the State in consultation with the affected local 
        officials.
            [(4) Biennial review and approval.--A 
        transportation improvement program developed under this 
        subsection shall be reviewed and approved no less 
        frequently than biennially by the Secretary.
    [(g) Funding.--Funds set aside pursuant to section 
307(c)(1) of title 23, United States Code, shall be available 
to carry out the requirements of this section.
    [(h) Treatment of Certain State Laws as Congestion 
Management Systems.--For purposes of this section, section 134, 
and sections 5303-5306 and 5323(k) of title 49, State laws, 
rules or regulations pertaining to congestion management 
systems or programs may constitute the congestion management 
system under this Act if the Secretary finds that the State 
laws, rules or regulations are consistent with, and fulfill the 
intent of, the purposes of this section, section 134 or 
sections 5303-5306 and 5323(k), as appropriate.]

Sec. 135. Statewide planning

    (a) General Requirements.--
            (1) Findings.--It is in the national interest 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 throughout each State.
            (2) Development of plans and programs.--Subject to 
        section 134 of this title and sections 5303 through 
        5305 of title 49, each State shall develop 
        transportation plans and programs for all areas of the 
        State.
            (3) Contents.--The plans and programs for each 
        State shall provide for the development and integrated 
        management and operation of transportation systems 
        (including pedestrian walkways and bicycle 
        transportation facilities) that will function as an 
        intermodal State transportation system and an integral 
        part of the intermodal transportation system of the 
        United States.
            (4) Process of development.--The process for 
        developing the plans and programs 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.
    (b) Scope of Planning Process.--Each State shall carry out 
a transportation planning process that shall consider the 
following:
            (1) Supporting the economic vitality of the United 
        States, the States, and metropolitan areas, especially 
        by enabling global competitiveness, productivity, and 
        efficiency.
            (2) Increasing the safety and security of the 
        transportation system for motorized and nonmotorized 
        users.
            (3) Increasing the accessibility and mobility 
        options available to people and for freight.
            (4) Protecting and enhancing the environment, 
        promoting energy conservation, and improving quality of 
        life through land use planning.
            (5) Enhancing the integration and connectivity of 
        the transportation system, across and between modes 
        throughout the State, for people and freight.
            (6) Promoting efficient system management and 
        operation.
            (7) Emphasizing the preservation of the existing 
        transportation system.
    (c) Coordination With Metropolitan Planning; State 
Implementation Plan.--In carrying out planning under this 
section, a State shall--
            (1) coordinate the planning with the transportation 
        planning activities carried out under section 134 for 
        metropolitan areas of the State; and
            (2) carry out the responsibilities of the State for 
        the development of the transportation portion of the 
        State air quality implementation plan to the extent 
        required by the Clean Air Act (42 U.S.C. 7401 et seq.).
    (d) Additional Requirements.--In carrying out planning 
under this section, each State shall, at a minimum, consider--
            (1) with respect to nonmetropolitan areas, the 
        concerns of local elected officials representing units 
        of general purpose local government;
            (2) the concerns of Indian tribal governments and 
        Federal land management agencies that have jurisdiction 
        over land within the boundaries of the State; and
            (3) coordination of transportation plans, programs, 
        and planning activities with related planning 
        activities being carried out outside of metropolitan 
        planning areas.
    (e) Long-Range Transportation Plan.--
            (1) Development.--Each State shall develop a long-
        range 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.--With respect to 
                each metropolitan area in the State, the plan 
                shall be developed in cooperation with the 
                metropolitan planning organization designated 
                for the metropolitan area under section 134 of 
                this title and section 5305 of title 49.
                    (B) Nonmetropolitan areas.--With respect to 
                each nonmetropolitan area, the plan shall be 
                developed in consultation with local elected 
                officials representing units of general purpose 
                local government.
                    (C) Indian tribal areas.--With respect to 
                each area of the State under the jurisdiction 
                of an Indian tribal government, the plan shall 
                be developed in consultation with the tribal 
                government and the Secretary of the Interior.
            (3) Participation by interested parties.--In 
        developing the plan, the State shall--
                    (A) provide citizens, affected public 
                agencies, representatives of transportation 
                agency employees, other affected employee 
                representatives, freight shippers, private 
                providers of transportation, and other 
                interested parties with a reasonable 
                opportunity to comment on the proposed plan; 
                and
                    (B) identify transportation strategies 
                necessary to efficiently serve the mobility 
                needs of people.
    (f) State Transportation Improvement Program.--
            (1) Development.--
                    (A) In general.--The State shall develop a 
                transportation improvement program for all 
                areas of the State.
                    (B) Consultation with governments.--
                            (i) 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 of this title and 
                        section 5305 of title 49.
                            (ii) Nonmetropolitan areas.--With 
                        respect to each nonmetropolitan area in 
                        the State, the program shall be 
                        developed in consultation with units of 
                        general purpose local government.
                            (iii) 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.
                    (C) Participation by interested parties.--
                In developing the program, the Governor shall 
                provide citizens, affected public agencies, 
                representatives of transportation agency 
                employees, other affected employee 
                representatives, freight shippers, private 
                providers of transportation, and other 
                interested parties with a reasonable 
                opportunity to comment on the proposed program.
            (2) 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) Chapter 2 projects.--
                            (i) Regionally significant 
                        projects.--Regionally significant 
                        projects proposed for funding under 
                        chapter 2 shall be identified 
                        individually.
                            (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.
                    (C) Consistency with long-range 
                transportation plan.--Each project shall--
                            (i) be consistent with the long-
                        range transportation plan developed 
                        under this section for the State;
                            (ii) be identical to the project as 
                        described in an approved metropolitan 
                        transportation improvement program; and
                            (iii) be 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 nonattainment for 
                        ozone or carbon monoxide under that 
                        Act.
                    (D) Requirement of anticipated full 
                funding.--
                            (i) In general.--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 within 
                        the time period contemplated for 
                        completion of the project.
                            (ii) Limitation.--Clause (i) does 
                        not require the indication of project-
                        specific funding sources.
                    (E) Priorities.--The program shall reflect 
                the priorities for programming and expenditures 
                of funds, including transportation 
                enhancements, required by this title.
            (3) 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 (excluding projects carried out on 
                the National Highway System) shall be selected, 
                from the approved statewide transportation 
                improvement program, by the State in 
                cooperation with the affected local officials.
                    (B) National highway system projects.--
                Projects carried out in areas described in 
                subparagraph (A) on the National Highway System 
                shall be selected, from the approved statewide 
                transportation improvement program, by the 
                State in consultation with the affected local 
                officials.
            (4) Biennial review and approval.--A transportation 
        improvement program developed under this subsection 
        shall be reviewed and, on a finding that the planning 
        process through which the program was developed is 
        consistent with this section and section 134, approved 
        not less frequently than biennially by the Secretary.
            (5) 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 statewide 
        transportation improvement program in place of another 
        project of higher priority in the program.
    (g) Funding.--Funds set aside under section 505 of this 
title and section 5313(b) of title 49 shall be available to 
carry out this section.
    (h) Continuation of Current Review Practice.--Since plans 
and programs described in this section or section 134 are 
subject to a reasonable opportunity for public comment, since 
individual projects included in the plans and programs 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 programs 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 
program described in this section or section 134 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.).

Sec. 136.  Control of junkyards

    (a) The Congress hereby finds and declares that the 
establishment and use and maintenance of junkyards in areas 
adjacent to the Interstate System and the primary system should 
be controlled in order to protect the public investment in such 
highways, to promote the safety and recreational value of 
public travel, and to preserve natural beauty.
    (b) Federal-aid highway funds apportioned on or after 
January 1, 1968, to any State which the Secretary determines 
has not made provision for effective control of the 
establishment and maintenance along the Interstate System and 
the primary system of outdoor junkyards, which are within one 
thousand feet of the nearest edge of the right-of-way and 
visible from the main traveled way of the system, shall be 
reduced by amounts equal to 10 per centum of the amounts which 
would otherwise be apportioned to such State under section 104 
of this title, until such time as such State shall provide for 
such effective control. Any amount which is withheld from 
apportionment to any State hereunder shall be reapportioned to 
other States. Whenever he determines it to be in the public 
interest, the Secretary may suspend, for such periods as he 
deems necessary, the application of this subsection to a State.
    (c) Effective control means that by January 1, 1968, such 
junkyards shall be screened by natural objects, plantings, 
fences, or other appropriate means so as not to be visible from 
the main traveled way of the system, or shall be removed from 
sight.
    (d) The term ``junk'' shall mean old or scrap copper, 
brass, rope, rags, batteries, paper, trash, rubber debris, 
waste, or junked, dismantled, or wrecked automobiles, or parts 
thereof, iron, steel, and other old or scrap ferrous or 
nonferrous material.
    (e) The term ``automobile graveyard'' shall mean any 
establishment or place of business which is maintained, used, 
or operated for storing, keeping, buying, or selling wrecked, 
scrapped, ruined, or dismantled motor vehicles or motor vehicle 
parts.
    (f) The term ``junkyard'' shall mean an establishment or 
place of business which is maintained, operated, or used for 
storing, keeping, buying, or selling junk, or for the 
maintenance or operation of an automobile graveyard, and the 
term shall include garbage dumps and sanitary fills.
    (g) Notwithstanding any provision of this section, 
junkyards, auto graveyards, and scrap metal processing 
facilities may be operated within areas adjacent to the 
Interstate System and the primary system which are within one 
thousand feet of the nearest edge of the right-of-way and which 
are zoned industrial under authority of State law, or which are 
not zoned under authority of State law, but are used for 
industrial activities, as determined by the several States 
subject to approval by the Secretary.
    (h) Notwithstanding any provision of this section, any 
junkyard in existence on the date of enactment of this section 
which does not conform to the requirements of this section and 
which the Secretary finds as a practical matter cannot be 
screened, shall not be required to be removed until July 1, 
1970.
    (i) The Federal share of landscaping and screening costs 
under this section shall be 75 per centum.
    (j) Just compensation shall be paid the owner for the 
relocation, removal, or disposal of junkyards lawfully 
established under State law. The Federal share of such 
compensation shall be 75 per centum.
    (k) All public lands or reservations of the United States 
which are adjacent to any portion of the interstate and primary 
systems shall be effectively controlled in accordance with the 
provisions of this section.
    (l) Nothing in this section shall prohibit a State from 
establishing standards imposing stricter limitations with 
respect to outdoor junkyards on the Federal-aid highway systems 
than those established under this section.
    [(m) There is authorized to be appropriated to carry out 
this section, out of any money in the Treasury not otherwise 
appropriated, not to exceed $20,000,000 for fiscal year ending 
June 30, 1966, not to exceed $20,000,000 for fiscal year ending 
June 30, 1967, not to exceed $3,000,000 for fiscal year ending 
June 30, 1970, not to exceed $3,000,000 for fiscal year ending 
June 30, 1971, not to exceed $3,000,000 for fiscal year ending 
June 30, 1972, and not to exceed $5,000,000 for fiscal year 
ending June 30, 1973. The provisions of this chapter relating 
to the obligation, period of availability, and expenditure of 
Federal-aid primary highway funds shall apply to the funds 
authorized to be appropriated to carry out this section after 
June 30, 1967.]
    (m) Primary System Defined.--For purposes of this section, 
the term ``primary system'' means the Federal-aid primary 
system in existence on June 1, 1991, and any highway which is 
not on such system but which is on the National Highway System.

Sec. 137. Fringe and corridor parking facilities

    (a) The Secretary may approve as a project [on the Federal-
aid urban system] on a Federal-aid highway the acquisition of 
land adjacent to the right-of-way outside a central business 
district, as defined by the Secretary, and the construction of 
publicly owned parking facilities thereon or within such right-
of-way, including the use of the air space above and below the 
established grade line of the highway pavement, to serve an 
urban area of fifty thousand population or more. Such parking 
facility shall be located and designed in conjunction with 
existing or planned public transportation facilities. In the 
event fees are charged for the use of any such facility, the 
rate thereof shall not be in excess of that required for 
maintenance and operation (including compensation to any person 
for operating such facility).
    (b) The Secretary shall not approve any project under this 
section until--
            (1) he has determined that the State, or the 
        political subdivision thereof, where such project is to 
        be located, or any agency, or instrumentality of such 
        State or political subdivision, has the authority and 
        capability of constructing, maintaining, and operating 
        the facility;
            (2) he has entered into an agreement governing the 
        financing, maintenance, and operation of the parking 
        facility with such State, political subdivision, agency 
        or instrumentality, including necessary requirements to 
        insure that adequate public transportation services 
        will be available to persons using such facility; and
            (3) he has approved design standards for 
        constructing such facility developed in cooperation 
        with the [State highway department]State transportation 
        department.
    (c) The term ``parking facilities'' for purposes of this 
section shall include access roads, buildings, structures, 
equipment, improvements, and interests in lands.
    (d) Nothing in this section, or in any rule or regulation 
issued under this section, or in any agreement required by this 
section, shall prohibit (1) any State, political subdivision, 
or agency or instrumentality thereof, from contracting with any 
person to operate any parking facility constructed under this 
section, or (2) any such person from so operating such 
facility.
    (e) The Secretary shall not approve any project under this 
section unless he determines that it is based on a continuing 
comprehensive transportation planning process carried on in 
accordance with section 134 of this title.
    (f)(1) The Secretary may approve for Federal financial 
assistance from funds apportioned under [section 104(b)(5)(B) 
of this title] section 104(b)(1)(A), projects for designating 
existing facilities, or for acquisition of rights of way or 
construction of new facilities, for use as perferential parking 
for carpools, provided that such facilities (A) are located 
outside of a central business district and within an interstate 
highway corridor, and (B) have as their primary purpose the 
reduction of vehicular traffic on the interstate highway.
    (2) Nothing in this subsection, or in any rule or 
regulation issued under this subsection, or in any agreement 
required by this subsection, shall prohibit (A) any State, 
political subdivision, or agency or instrumentality thereof, 
from contracting with any person to operate any parking 
facility designated or constructed under this subsection, or 
(B) any such person from so operating such facility. Any fees 
charged for the use of any such facility in connection with the 
purpose of this subsection shall not be in excess of the amount 
required for operation and maintenance, including compensation 
to any person for operating the facility.
    (3) For the purposes of this subsection, the terms 
``facilities'' and ``parking facilities'' are synonymous and 
shall have the same meaning given ``parking facilities'' in 
subsection (c) of this section.

Sec. 138. Preservation of parklands

    It is hereby declared to be the national policy that 
special effort should be made to preserve the natural beauty of 
the countryside and public park and recreation lands, wildlife 
and waterfowl refuges, and historic sites. The Secretary of 
Transportation shall cooperate and consult with the Secretaries 
of the Interior, Housing and Urban Development, and 
Agriculture, and with the States in developing transportation 
plans and programs that include measures to maintain or enhance 
the natural beauty of the lands traversed. After the effective 
date of the Federal-Aid Highway Act of 1968, the Secretary 
shall not approve any program or project (other than any 
project for a park road or parkway under section 204 of this 
title) which requires the use of any publicly owned land from a 
public park, recreation area, or wildlife and waterfowl refuge 
of national, State, or local significance as determined by the 
Federal, State, or local officials having jurisdiction thereof, 
or any land from an historic site of national, State, or local 
significance as so determined by such officials unless (1) 
there is no feasible and prudent alternative to the use of such 
land, and (2) such program includes all possible planning to 
minimize harm to such park, recreational area, wildlife and 
waterfowl refuge, or historic site resulting from such use. In 
carrying out the national policy declared in this section the 
Secretary, in cooperation with the Secretary of the Interior 
and appropriate State and local officials, is authorized to 
conduct studies as to the most feasible Federal-aid routes for 
the movement of motor vehicular traffic through or around 
national parks so as to best serve the needs of the traveling 
public while preserving the natural beauty of these areas.

[Sec. 139. Additions to Interstate System

    [(a) Whenever the Secretary determines that a highway on 
the Federal-aid primary system meets all of the standards of a 
highway on the Interstate System and that such highway is a 
logical addition or connection to the Interstate System, he 
may, upon the affirmative recommendation of the State or States 
involved, designate such highway as a part of the Interstate 
System. The mileage of any highway designated as part of the 
Interstate System under this section shall not be charged 
against the limitation established by the first sentence of 
section 103(e) of this title. The designation of a highway as 
part of the Interstate System under this subsection shall 
create no Federal financial responsibility with respect to such 
highway; except that any State may use funds available to it 
under sections 104(b)(1) and 104(b)(5)(B) of this title for the 
resurfacing, restoring, rehabilitating, and reconstructing of 
any highway designated as a route on the Interstate System 
under this subsection before the date of enactment of this 
sentence.
    [(b) Whenever the Secretary determines that a highway on 
the Federal-aid primary system would be a logical addition or 
connection to the Interstate System and would qualify for 
designation as a route on that system in the same manner as set 
forth in paragraph 1 of subsection (e) of section 103 of this 
title, he may upon the affirmative recommendation of the State 
or States involved designate such highway as a future part of 
the Interstate System. Such designation shall be made only upon 
the written agreement of the State or States involved that such 
highway will be constructed to meet all the standards of a 
highway on the Interstate System within twelve years of the 
date of the agreement between the Secretary and the State or 
States involved. The mileage of any highway designated as a 
future part of the Interstate System under this subsection 
shall not be charged against the limitations established by the 
first sentence of section 103(e) of this title. The designation 
of a highway as part of the Interstate System under this 
subsection shall create no Federal financial responsibility 
with respect to such highway; except that any State may use 
funds available to it under sections 104(b)(1) and 104(b)(5)(B) 
of this title for the resurfacing, restoring, rehabilitating, 
and reconstructing of any highway designated as a route on the 
Interstate System under this subsection before the date of 
enactment of this sentence. In the event that the State or 
States involved have not substantially completed the 
construction of any highway designated under this subsection 
within the time provided for in the agreement between the 
Secretary and State or States involved, the Secretary shall 
remove the designation of such highway as a future part of the 
Interstate System. Removal of such designation as result of 
failure to comply with the agreement provided for in this 
subsection shall in no way prohibit the Secretary from 
designating such route as part of the Interstate System 
pursuant to subsection (a) of this section or under any other 
provision of law providing for addition to the Interstate 
System. No law, rule, regulation, map, document, or other 
record of the United States, or of any State or political 
subdivision thereof, shall refer to any highway under this 
section, nor shall any such highway be signed or marked, as a 
highway on the Interstate System until such time as such 
highway is constructed to the geometric and construction 
standards for the Interstate System and has been designated as 
a part of the Interstate System.
    [(c) The Secretary shall designate those portions of 
highway segments on the Federal-aid primary system in States 
which have no Interstate System that are logical components to 
a system serving the State's principal cities, national defense 
needs and military installations, and traffic generated by 
rail, water, and air transportation modes. The designated 
segments shall have been constructed to the geometric and 
construction standards adequate for current and probable future 
traffic demands and the needs of the locality of the segment. 
The mileage of any highway designated as part of the Interstate 
System under this subsection shall not be charged against the 
limitation established by the first sentence of section 
103(e)(1) of this title. The designation of a highway under 
this subsection shall create no Federal financial 
responsibility with respect to such highway, except that the 
State involved may use Federal-aid highway funds available to 
it under sections 104(b)(1) and 104(b)(5)(B) of this title, for 
the resurfacing, rehabilitation, restoration, and 
reconstruction of a highway designated as a route on the 
Interstate System under this subsection.]

Sec. 139. [Repealed]

Sec. 140. Nondiscrimination

    (a) Prior to approving any programs for projects as 
provided for in [subsection (a) of section 105 of this title] 
section 106(a), the Secretary shall require assurances from any 
State desiring to avail itself of the benefits of this chapter 
that employment in connection with proposed projects will be 
provided without regard to race, color, creed, national origin, 
or sex. [He] The Secretary shall require that each State shall 
include in the advertised specifications, notification of the 
specific equal employment opportunity responsibilities of the 
successful bidder. [In approving programs for projects on any 
of the Federal-aid systems] Before approving any project under 
section 106(a), the Secretary shall, where [he] the Secretary 
considers it necessary to assure equal employment opportunity, 
require certification by any State desiring to avail itself of 
the benefits of this chapter that there are in existence and 
available on a regional, statewide, or local basis, 
apprenticeship, skill improvement or other upgrading programs, 
registered with the Department of Labor or the appropriate 
State agency, if any, which provide equal opportunity for 
training and employment without regard to race, color, creed, 
national origin, or sex. The Secretary shall periodically 
obtain from the Secretary of Labor and the respective [State 
highway departments]State transportation departments 
information which will enable [him] the Secretary to judge 
compliance with the requirements of this section and the 
Secretary of Labor shall render to the Secretary such 
assistance and information as [he] the Secretary shall deem 
necessary to carry out the equal employment opportunity program 
required hereunder.
    [(b) The Secretary, in cooperation with any other 
department or agency of the Government, State agency, 
authority, association, institution, Indian tribal government, 
corporation (profit or nonprofit), or any other organization or 
person, is authorized to develop, conduct, and administer 
highway construction training, including skill improvement 
programs. Whenever apportionments are made under section 104(b) 
of this title, the Secretary shall deduct such sums as he may 
deem necessary, not to exceed $2,500,000 for the transition 
quarter ending September 30, 1976, and not to exceed 
$10,000,000 per fiscal year, for the administration of this 
subsection. Such sums so deducted shall remain available until 
expended. The provisions of section 3709 of the Revised 
Statutes, as amended (41 U.S.C. 5), shall not be applicable to 
contracts and agreements made under the authority herein 
granted to the Secretary. Notwithstanding any other provision 
of law, not to exceed \1/2\ of 1 percent of funds apportioned 
to a State for the surface transportation program under section 
104(b) and the bridge program under section 144 may be 
available to carry out this subsection upon request of the 
[State highway department]State transportation department to 
the Secretary.]
    [(c)] (b) The Secretary, in cooperation with any other 
department or agency of the Government, State agency, 
authority, association, institution, Indian tribal governments, 
corporation (profit or nonprofit), or any other organization or 
person, is authorized to develop, conduct, and administer 
training programs and assistance programs in connection with 
any program under this title in order that minority businesses 
may achieve proficiency to compete, on an equal basis, for 
contracts and subcontracts. Whenever apportionments are made 
under subsection 104(a) of this title, the Secretary shall 
deduct such sums as he may deem necessary, not to exceed 
$10,000,000 per fiscal year, for the administration of this 
subsection. The provisions of section 3709 of the Revised 
Statutes, as amended (41 U.S.C. 5), shall not be applicable to 
contracts and agreements made under the authority herein 
granted to the Secretary notwithstanding the provisions of 
section 302(e) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 252(e)).
      [(d)] (c) Indian Employment[ and Contracting].--
Consistent with section 703(i) of the Civil Rights Act of 1964 
(42 U.S.C. 2000e-2(i)), nothing in this section shall preclude 
the preferential employment of Indians living on or near a 
reservation on projects and contracts on Indian reservation 
roads. States may implement a preference for employment of 
Indians on projects carried out under this title near Indian 
reservations. The Secretary shall cooperate with Indian tribal 
governments and the States to implement this subsection.
    (d) Prohibition of Discrimination on the Basis of Sex._No 
person shall on the ground of sex be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity receiving Federal 
assistance under this title or carried on under this title. 
This provision will be enforced through agency provisions and 
rules similar to those already established, with respect to 
racial and other discrimination, under title VI of the Civil 
Rights Act of 1964. However, this remedy is not exclusive and 
will not prejudice or cut off any other legal remedies 
available to a discriminatee.

Sec. 141. Enforcement of requirements

    (a) Each State shall certify to the Secretary before 
January 1 of each year that it is enforcing all State laws 
respecting maximum vehicle size and weights permitted on the 
Federal-aid primary system, the Federal-aid urban system, and 
the Federal-aid secondary system, including the Interstate 
System in accordance with section 127 of this title. Each State 
shall also certify that it is enforcing and complying with the 
provisions of section 127(d) of this title and section 31112 of 
title 49.
    (b)(1) Each State shall submit to the Secretary such 
information as the Secretary shall, by regulation, require as 
necessary, in his opinion, to verify the certification of such 
State under subsection (b) of this section.
    (2) If a State fails to certify as required by subsection 
(b) of this section or if the Secretary determines that a State 
is not adequately enforcing all State laws respecting such 
maximum vehicle size and weights, notwithstanding such a 
certification, then Federal-aid highway funds apportioned to 
such State for such fiscal year shall be reduced by amounts 
equal to 10 per centum of the amount which would otherwise be 
apportioned to such State under section 104 of this title.
    (3) If within one year from the date that the apportionment 
for any State is reduced in accordance with paragraph (2) of 
this subsection the Secretary determines that such State is 
enforcing all State laws respecting maximum size and weights, 
the apportionment of such State shall be increased by an amount 
equal to such reduction. If the Secretary does not make such a 
determination within such one-year period, the amounts so 
withheld shall be reapportioned to all other eligible States.
    (c) The Secretary shall reduce the State's apportionment of 
Federal-aid highway funds under [section 104(b)(5) of this 
title] section 104(b)(1)(A) in an amount up to 25 per centum of 
the amount to be apportioned in any fiscal year beginning after 
September 30, 1984, during which heavy vehicles, subject to the 
use tax imposed by section 4481 of the Internal Revenue Code of 
1954, may be lawfully registered in the State without having 
presented proof of payment, in such form as may be prescribed 
by the Secretary of the Treasury, of the use tax imposed by 
section 4481 of such Code. Amounts withheld from apportionment 
to a State under this subsection shall be apportioned to the 
other States pursuant to the formulas of [section 104(b)(5) of 
this title] section 104(b)(1)(A) and shall be available in the 
same manner and to the same extent as other Interstate funds 
apportioned at the same time to other States.

Sec. 142. Public transportation

    (a)(1) To encourage the development, improvement, and use 
of public mass transportation systems operating motor vehicles 
(other than on rail) on Federal-aid highways for the 
transportation of passengers (hereafter in this section 
referred to as ``buses''), so as to increase the traffic 
capacity of the Federal-aid systems for the movement of 
persons, the Secretary may approve as a project on any Federal-
aid system the construction of exclusive or preferential high 
occupancy vehicle lanes, highway traffic control devices, bus 
passenger loading areas and facilities (including shelters), 
and fringe and transportation corridor parking facilities to 
serve high occupancy vehicle and public mass transportation 
passengers, and sums apportioned under section 104(b) of this 
title shall be available to finance the cost of projects under 
this paragraph. If fees are charged for the use of any parking 
facility constructed under this section, the rate thereof shall 
not be in excess of that required for maintenance and operation 
of the facility and the cost of providing shuttle service to 
and from the facility (including compensation to any person for 
operating the facility and for providing such shuttle service).
    (2) In addition to the projects under paragraph (1), the 
Secretary may approve as a project on the the \1\ surface 
transportation program for payment from sums apportioned under 
section 104(b)(3) for carrying out any capital transit project 
eligible for assistance under chapter 53 of title 49, capital 
improvement to provide access and coordination between 
intercity and rural bus service, and construction of facilities 
to provide connections between highway transportation and other 
modes of transportation.
---------------------------------------------------------------------------
    \1\ So in law. See section 1027(a)(2) of P.L. 102-240, 105 Stat. 
1966.
---------------------------------------------------------------------------
    (b) Sums apportioned in accordance with paragraph (5) of 
subsection (b) of section 104 of this title shall be available 
to finance the Federal share of projects for exclusive or 
preferential high occupancy vehicle, truck, and emergency 
vehicle routes or lanes. Routes constructed under this 
subsection shall not be subject to the third sentence of 
section 109(b) of this title.
    (c) Accommodation of Other Modes of Transportation.--The 
Secretary may approve as a project on any Federal-aid system 
for payment from sums apportioned under section 104(b) [(other 
than section 104(b)(5)(A))] modifications to existing highway 
facilities on such system necessary to accommodate other modes 
of transportation if such modifications will not adversely 
affect automotive safety.
    (d) Metropolitan Planning.--Any project carried out under 
this section in an urbanized area shall be subject to the 
metropolitan planning requirements of section 134.
    (e)(1) For all purposes of this title, a project authorized 
by subsection (a)(1) of this section shall be deemed to be a 
highway project.
    (2) 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 shall be subject to, and governed in accordance 
with, all provisions of this title applicable to projects on 
the surface transportation program, except to the extent 
determined inconsistent by the Secretary.
    (3) The Federal share payable on account of projects 
authorized by subsection (a) of this section shall be that 
provided in section 120 of this title.
    (f) Availability of Rights-of-Way.--In any case where 
sufficient land or air space exits within the publicly acquired 
rights-of-way of any highway, constructed in whole or in part 
with Federal-aid highway funds, to accommodate needed 
passenger, commuter, or high speed rail, magnetic levitation 
systems, and highway and nonhighway public mass transit 
facilities, the Secretary shall authorize a State to make such 
lands, air space, and rights-of-way available with or without 
charge to a publicly or privately owned authority or company or 
any other person for such purposes if such accommodation will 
not adversely affect automotive safety.
    (g) The provision of assistance under subsection (a)(2) 
shall not be construed as bringing within the application of 
chapter 15 of title 5, United States Code, any nonsupervisory 
employee of an urban mass transportation system (or of any 
other agency or entity performing related functions) to whom 
such chapter is otherwise inapplicable.
    (h) Funds available for expenditure to carry out the 
purposes of subsection (a)(2) of this section shall be 
supplementary to and not in substitution for funds authorized 
and available for obligation pursuant to chapter 53 of title 
49.
    (i) The provisions of section 5323(a)(1)(D) of title 49 
shall apply in carrying out subsection (a)(2) of this section.

[Sec. 143. Economic growth center development highways

    [(a) In order to promote the desirable development of the 
Nation's natural resources, to revitalize and diversify the 
economy of rural areas and smaller communities, to enhance and 
disperse industrial growth, to encourage more balanced 
population patterns, to check, and, where possible, to reverse 
current migratory trends from rural areas and smaller 
communities, and to improve living conditions and the quality 
of the environment, the Secretary is authorized to make grants 
to States for projects for the construction, reconstruction, 
and improvement of development highways on a Federal-aid system 
(other than the Interstate System) to serve and promote the 
development of economic growth centers and surrounding areas, 
encourage the location of business and industry in rural areas, 
facilitate the mobility of labor in sparsely populated areas, 
and provide rural citizens with improved highways to such 
public and private services as health care, recreation, 
employment, education, and cultural activities, or otherwise 
encourage the social and economic development of rural 
communities, and for planning, surveys, and investigations in 
connection therewith.
    [(b) Each Governor may transmit to the Secretary his 
recommendations for (1) the selection of economic growth 
centers within the State, (2) priorities for the construction 
of development highways on a Federal-aid system (other than the 
Interstate System) to serve such centers, and (3) such other 
information as may be required by the Secretary, for his 
consideration in approving the selection of economic growth 
centers for projects.
    [(c) Upon the application of the [State highway 
department]State transportation department of any State in 
which an economic growth center approved by the Secretary as 
eligible for a project is located, the Secretary is authorized 
to pay up to 100 per centum of the cost of engineering and 
economic surveys or other investigations necessary for the 
planning and design development highways on a Federal-aid 
system (other than the Interstate System) needed to provide 
appropriate access to such growth center, including publicly 
owned airport facilities and public ports for water 
transportation which may be established to serve it, in order 
to carry out the purposes of this section.
    [(d) Except as otherwise provided in this section, all of 
the provisions of this title applicable to highways on the 
Federal-aid system on which such development highway is located 
except those which the Secretary determines are inconsistent 
with this section shall apply to development highways and to 
funds authorized to carry out this section. For the purposes of 
sections 105, 106, and 118 of this title, funds authorized to 
carry out this section shall be deemed to be apportioned on 
January 1 next preceding the commencement of the fiscal year 
for which authorized. No State shall receive in any fiscal year 
more than 15 per centum of the funds authorized to carry out 
this section for such fiscal year.
    [(e) Except as otherwise provided in subsection (c) of this 
section, the Federal share of the cost of any project for 
construction, reconstruction, or improvement of a development 
highway under this section shall be the same as that provided 
under this title for any other project on the Federal-aid 
system on which such development highway is located.
    [(f)(1) Except in the case of a project subject to 
paragraph (2) of this subsection, no project shall be approved 
by the Secretary under this section until he has determined 
that such project will promote the aims and purposes set forth 
in subsection (a) of this section and that the economic growth 
center to be benefited will meet such criteria as he, after 
consultation with the Secretary of Commerce, deems necessary, 
including, but not limited to, the following: (1) growth 
centers shall be geographically and economically capable of 
contributing significantly to the development of the area, and 
(2) growth centers shall have a population not in excess of one 
hundred thousand according to the latest available Federal 
census. In approving projects the Secretary shall give 
preference to those areas offering the most potential for 
future economic growth.
    [(2) In the case of a project proposed to be conducted 
within the Appalachian region as defined in section 403 of the 
Appalachian Regional Development Act of 1965, no project shall 
be approved by the Secretary under this section until he shall 
have consulted with the Federal Cochairman of the Appalachian 
Regional Commission. In the case of a project proposed to be 
conducted within an economic development region as defined in 
title V of the Public Works and Economic Development Act of 
1965, no project shall be approved by the Secretary under this 
section until he shall have consulted with the Federal 
Cochairman for such region and the Secretary of Commerce. In 
consultation with the appropriate official, the Secretary shall 
establish criteria for the selection of growth centers eligible 
for assistance under this section such that the aims and 
purposes set forth in subsection (a) of this section will be 
promoted. Such criteria shall include, but not be limited to, 
the following: (1) growth centers shall be geographically and 
economically capable of contributing significantly to the 
development of the area, (2) growth centers shall have a 
population not in excess of one hundred thousand persons 
according to the latest available Federal census, and (3) the 
selection of such growth centers within the Appalachian region 
and the economic development regions shall take into account 
the purposes of the Appalachian Regional Development Act of 
1965 and the Public Works and Economic Development Act of 1965. 
In approving projects the Secretary shall give preference to 
those areas offering the most potential for future economic 
growth and he shall make arrangements for close coordination 
throughout the development and implementation of the project 
with the Federal Cochairman of the Appalachian Regional 
Commission, or with the appropriate Federal Cochairman of an 
economic development region, and the Secretary of Commerce, as 
the case may be.
    [(g) There is authorized to be appropriated out of the 
Highway Trust Fund not to exceed $50,000,000 for the fiscal 
year ending June 30, 1972, and not to exceed $50,000,000 for 
the fiscal year ending June 30, 1973.]

Sec. 143. Highway use tax evasion projects

    (a) Definition of State.--In this section, the term 
``State'' means the 50 States and the District of Columbia.
    (b) Projects.--
            (1) In general.--The Secretary shall use funds made 
        available under paragraph (7) to carry out highway use 
        tax evasion projects in accordance with this 
        subsection.
            (2) Allocation of funds.--The funds may be 
        allocated to the Internal Revenue Service and the 
        States at the discretion of the Secretary.
            (3) Conditions on funds allocated to internal 
        revenue service.--The Secretary shall not impose any 
        condition on the use of funds allocated to the Internal 
        Revenue Service under this subsection.
            (4) Limitation on use of funds.--Funds made 
        available under paragraph (7) shall be used only--
                    (A) to expand efforts to enhance motor fuel 
                tax enforcement;
                    (B) to fund additional Internal Revenue 
                Service staff, but only to carry out functions 
                described in this paragraph;
                    (C) to supplement motor fuel tax 
                examinations and criminal investigations;
                    (D) to develop automated data processing 
                tools to monitor motor fuel production and 
                sales;
                    (E) to evaluate and implement registration 
                and reporting requirements for motor fuel 
                taxpayers;
                    (F) to reimburse State expenses that 
                supplement existing fuel tax compliance 
                efforts; and
                    (G) to analyze and implement programs to 
                reduce tax evasion associated with other 
                highway use taxes.
            (5) Maintenance of effort.--The Secretary may not 
        make an allocation to a State under this subsection for 
        a fiscal year unless the State certifies that the 
        aggregate expenditure of funds of the State, exclusive 
        of Federal funds, for motor fuel tax enforcement 
        activities will be maintained at a level that does not 
        fall below the average level of such expenditure for 
        the preceding 2 fiscal years of the State.
            (6) Federal share.--The Federal share of the cost 
        of a project carried out under this subsection shall be 
        100 percent.
            (7) Authorization of contract authority.--
                    (A) In general.--There shall be available 
                to the Secretary from the Highway Trust Fund 
                (other than the Mass Transit Account) to carry 
                out this subsection $5,000,000 for each of 
                fiscal years 1998 through 2003.
                    (B) Availability of funds.--Funds 
                authorized under this paragraph shall remain 
                available for obligation for a period of 1 year 
                after the last day of the fiscal year for which 
                the funds are authorized.
    (c) Excise Fuel Reporting System.--
            (1) In general.--Not later than April 1, 1998, the 
        Secretary shall enter into a memorandum of 
        understanding with the Commissioner of the Internal 
        Revenue Service for the purposes of the development and 
        maintenance by the Internal Revenue Service of an 
        excise fuel reporting system (referred to in this 
        subsection as the ``system'').
            (2) Elements of memorandum of understanding.--The 
        memorandum of understanding shall provide that--
                    (A) the Internal Revenue Service shall 
                develop and maintain the system through 
                contracts;
                    (B) the system shall be under the control 
                of the Internal Revenue Service; and
                    (C) the system shall be made available for 
                use by appropriate State and Federal revenue, 
                tax, or law enforcement authorities, subject to 
                section 6103 of the Internal Revenue Code of 
                1986.
            (3) Authorization of appropriations from highway 
        trust fund.--There are authorized to be appropriated to 
        the Secretary from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this 
        subsection--
                    (A) $8,000,000 for development of the 
                system; and
                    (B) $2,000,000 for each of fiscal years 
                1998 through 2003 for operation and maintenance 
                of the system.

Sec. 144. Highway bridge replacement and rehabilitation [program]

    [(a) Congress hereby finds and declares it to be in the 
vital interest of the Nation that a highway bridge replacement 
and rehabilitation program be established to enable the several 
States to replace or rehabilitate highway bridges over 
waterways, other topographical barriers, other highways, or 
railroads when the States and the Secretary find that a bridge 
is significantly important and is unsafe because of structural 
deficiencies, physical deterioration, or functional 
obsolescence.
    [(b) The Secretary, in consultation with the States, shall 
(1) inventory all those highway bridges on any Federal-aid 
system which are bridges over waterways, other topographical 
barriers, other highways, and railroads; (2) classify them 
according to serviceability, safety, and essentiality for 
public use; (3) based on that classification, assign each a 
priority for replacement or rehabilitation; and (4) determine 
the cost of replacing each such bridge with a comparable 
facility or by rehabilitating such bridge.
    [(c)(1) The Secretary, in consultation with the States, 
shall (1) inventory all those highway bridges on public roads, 
other than those on any Federal-aid system, which are bridges 
over waterways, other topographical barriers, other highways, 
and railroads, (2) classify them according to serviceability, 
safety, and essentiality for public use, (3) based on the 
classification, assign each a priority for replacement or 
rehabilitation and (4) determine the cost of replacing each 
such bridge with a comparable facility or of rehabilitating 
such bridge.
    [(2) The Secretary may, at the request of a State, 
inventory bridges, on and off the Federal-aid system, for 
historic significance.
            [(3) Inventory of indian reservation and park 
        bridges.--As part of the activities carried out under 
        paragraph (1), the Secretary, in consultation with the 
        Secretary of the Interior, shall (A) inventory all 
        those highway bridges on Indian reservation roads and 
        park roads which are bridges over waterways, other 
        topographical barriers, other highways, and railroads, 
        (B) classify them according to serviceability, safety, 
        and essentiality for public use, (C) based on the 
        classification, assign each a priority for replacement 
        or rehabilitation, and (D) determine the cost of 
        replacing each such bridge with a comparable facility 
        or of rehabilitating such bridge.
    [(d) Whenever any State or States make application to the 
Secretary for assistance in replacing or rehabilitating a 
highway bridge which the priority system established under 
subsection (b) and (c) of this section shows to be eligible, 
the Secretary may approve Federal participation in replacing 
such bridge with a comparable facility or in rehabilitating 
such bridge. Whenever any State makes application to the 
Secretary for assistance in painting and seismic retrofit, or 
applying calcium magnesium acetate to, the structure of a 
highway bridge, the Secretary may approve Federal participation 
in the painting or seismic retrofit of, or application of such 
acetate to, such structure. The Secretary shall determine the 
eligibility of highway bridges for replacement or 
rehabilitation for each State based upon the unsafe highway 
bridges in such State, except that a State may carry out a 
project for seismic retrofit of a bridge under this section 
without regard to whether the bridge is eligible for 
replacement or rehabilitation under this section. In approving 
projects (other than projects for bridge structure painting or 
seismic retrofit or application of such acetate) under this 
section, the Secretary shall give consideration to those 
projects which will remove from service those highway bridges 
most in danger of failure.
    [(e) Funds authorized to carry out this section shall be 
apportioned among the several States on October 1 of the fiscal 
year for which authorized in accordance with this subsection. 
Each deficient bridge shall be placed into one of the following 
categories: (1) Federal-aid system bridges eligible for 
replacement, (2) Federal-aid system bridges eligible for 
rehabilitation, (3) off-system bridges eligible for 
replacement, and (4) off-system bridges eligible for 
rehabilitation. The square footage of deficient bridges in each 
category shall be multiplied by the respective unit price on a 
State-by-State basis, as determined by the Secretary; and the 
total cost in each State divided by the total cost of the 
deficient bridges in all States shall determine the 
apportionment factors. For purposes of the preceding sentence, 
the total cost of deficient bridges in a State and in all 
States shall be reduced by the total cost of any highway 
bridges constructed under subsection (m) in such State, 
relating to replacement of destroyed bridges and ferryboat 
services. No State shall receive more than 10 per centum or 
less than 0.25 per centum of the total apportionment for any 
one fiscal year. The Secretary shall make these determinations 
based upon the latest available data, which shall be updated 
annually. Funds apportioned under this section shall be 
available for expenditure for the same period as funds 
apportioned for projects on the Federal-aid primary system 
under this title. Any funds not obligated at the expiration of 
such period shall be reapportioned by the Secretary to the 
other States in accordance with this subsection. The use of 
funds authorized under this section to carry out a project for 
the seismic retrofit of a bridge shall not affect the 
apportionment of funds under this section.
    [(f) The Federal share payable on account of any project 
under this section shall be 80 per centum of the cost thereof.
    [(g) Set Asides.--
            [(1) Discretionary bridge program.--Of the amounts 
        authorized for each of fiscal years 1992, 1993, 1994, 
        1995, 1996, and 1997 by section 103 of the Intermodal 
        Surface Transportation Efficiency Act of 1991, all but 
        $57,000,000 in the case of fiscal year 1992, 
        $68,000,000 in the case of fiscal years 1993 and 1994, 
        and $69,000,000 in the case of fiscal years 1995, 1996, 
        and 1997 shall be apportioned as provided in subsection 
        (e) of this section. $49,000,000 in the case of fiscal 
        year 1992, $59,500,000 in the case of fiscal years 1993 
        and 1994, and $60,500,000 in the case of fiscal years 
        1995, 1996, and 1997 of the amount authorized for each 
        of such fiscal years shall be available for obligation 
        on the date of each such apportionment in the same 
        manner and to the same extent as the sums apportioned 
        on such date, except that the obligation of $49,000,000 
        in the case of fiscal year 1992, $59,500,000 in the 
        case of fiscal years 1993 and 1994, and $60,500,000 in 
        the case of fiscal years 1995, 1996, and 1997 shall be 
        at the discretion of the Secretary, and $8,500,000 per 
        fiscal year ($8,000,000 in the case of fiscal year 
        1992) of the amount authorized for each of such fiscal 
        years shall be available in accordance with section 
        1039 of the Intermodal Surface Transportation 
        Efficiency Act of 1991, relating to highway timber 
        bridges.
            [(2) Eligible discretionary projects.--Subject to 
        section 149(d) of the Federal-Aid Highway Act of 1987, 
        amounts made available by paragraph (1) for obligation 
        at the discretion of the Secretary may be obligated 
        only--
                    [(A) for a project for a highway bridge the 
                replacement or rehabilitation cost of which is 
                more than $10,000,000, and
                    [(B) for a project for a highway bridge the 
                replacement or rehabilitation cost of which is 
                less than $10,000,000 if such cost is at least 
                twice the amount apportioned to the State in 
                which such bridge is located under subsection 
                (e) for the fiscal year in which application is 
                made for a grant for such bridge.
            [(3) Off-system bridges.--Not less than 15 percent 
        nor more than 35 percent of the amount apportioned to 
        each State in each of fiscal years 1987, 1988, 1989, 
        1990, 1991, 1992, 1993, 1994, 1995, 1996, and 1997, 
        shall be expended for projects to replace, 
        rehabilitate, paint or seismic retrofit, or apply 
        calcium magnesium acetate to highway bridges located on 
        public roads, other than those on a Federal-aid system. 
        The Secretary, after consultation with State and local 
        officials, may, with respect to such State, reduce the 
        requirement for expenditure for bridges not on a 
        Federal-aid system when the Secretary determines that 
        such State has inadequate needs to justify such 
        expenditure.
            [(4) Indian reservation bridges.--Not less than 1 
        percent of the amount apportioned to each State which 
        has an Indian reservation within its boundaries for 
        each fiscal year shall be expended for projects to 
        replace, rehabilitate, paint, or apply calcium 
        magnesium acetate to highway bridges located on Indian 
        reservation roads. Upon determining a State bridge 
        apportionment and before transferring funds to the 
        States, the Secretary shall transfer the Indian 
        reservation bridge allocation under this paragraph to 
        the Secretary of the Interior for expenditure pursuant 
        to this paragraph. The Secretary, after consultation 
        with State and Indian tribal government officials and 
        with the concurrence of the Secretary of the Interior, 
        may, with respect to such State, reduce the requirement 
        for expenditure  for  bridges  under this paragraph 
        when the Secretary determines that there are inadequate 
        needs to justify such expenditure. The non-Federal 
        share payable on account of such a project may be 
        provided from funds made available for Indian 
        reservation roads under chapter 2 of this title.
    [(h) Notwithstanding any other provision of law, the 
General Bridge Act of 1946 (33 U.S.C. 525-533) shall apply to 
bridges authorized to be replaced, in whole or in part, by this 
section, except that subsection (b) of section 502 of such Act 
of 1946 and section 9 of the Act of March 3, 1899 (30 Stat. 
1151) shall not apply to any bridge constructed, reconstructed, 
rehabilitated, or replaced with assistance under this title, if 
such bridge is over waters (1) which are not used and are not 
susceptible to use in their natural condition or by reasonable 
improvement as a means to transport interstate or foreign 
commerce, and (2) which are (a) not tidal, or (b) if tidal, 
used only by recreational boating, fishing, and other small 
vessels less than 21 feet in length.
    [(i) Inventories and Reports.--The Secretary shall--
            [(1) report to the Committee on Environment and 
        Public Works of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives on projects approved under this 
        section;
            [(2) annually revise the current inventories 
        authorized by subsections (b) and (c) of this section;
            [(3) report to such committees on such inventories; 
        and
            [(4) report to such committees such recommendations 
        as the Secretary may have for improvements of the 
        program authorized by this section.
Such reports shall be submitted to such committees biennially 
at the same time as the report required by section 307(e) of 
this title is submitted to Congress.
    [(j) Sums apportioned to a State under this section shall 
be made available for obligation throughout such State on a 
fair and equitable basis.
    [(k) Not later than six months after the date of enactment 
of this subsection, and periodically thereafter, the Secretary 
shall review the procedure used in approving or disapproving 
applications submitted under this section to determine what 
changes, if any, may be made to expedite such procedure. Any 
such changes shall be implemented by the Secretary as soon as 
possible. Not later than nine months after the date of 
enactment of this subsection, the Secretary shall submit a 
report to Congress which describes such review and such 
changes, including any recommendations for legislative changes.
    [(l) Notwithstanding any other provision of law, any bridge 
which is owned and operated by an agency (1) which does not 
have taxing powers, (2) whose functions include operating a 
federally assisted public transit system subsidized by toll 
revenues, shall be eligible for assistance under this section 
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. 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 necessary bridge replacement or 
rehabilitation project. 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.
    [(m) Replacement of Destroyed Bridges and Ferryboat 
Service.--
            [(1) General rule.--Notwithstanding any other 
        provision of this section or of any other provision of 
        law, a State may utilize any of the funds provided 
        under this section to construct any bridge which--
                    [(A) replaces any low water crossing 
                (regardless of the length of such low water 
                crossing),
                    [(B) replaces any bridge which was 
                destroyed prior to 1965,
                    [(C) replaces any ferry which was in 
                existence on January 1, 1984, or
                    [(D) replaces any road bridges rendered 
                obsolete as a result of United States Corps of 
                Engineers flood control or channelization 
                projects and not rebuilt with funds from the 
                United States 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 such construction.
    [(n) Off-System Bridge Program.--Notwithstanding any other 
provision of law, with respect to any project not on a Federal-
aid system for the replacement of a bridge or rehabilitation of 
a bridge which 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, any amount 
expended after the date of the enactment of this subsection 
from State and local sources for such project in excess of 20 
percent of the cost of construction thereof may be credited to 
the non-Federal share of the cost of the projects in such State 
which are eligible for Federal funds under this section. Such 
crediting shall be in accordance with such procedures as the 
Secretary may establish.]
    (a) Definition of Rehabilitate.--In this section, the term 
``rehabilitate'' (in any of its forms), with respect to a 
bridge, means to carry out major work necessary--
            (1) to address the structural deficiencies, 
        functional obsolescence, or physical deterioration of 
        the bridge; or
            (2) to correct a major safety defect of the bridge, 
        including seismic retrofitting.
    (b) Bridge Inventory.--
            (1) In general.--In consultation with the States, 
        the Secretary shall--
                    (A) annually inventory all highway bridges 
                on public roads that cross waterways, other 
                topographical barriers, other highways, and 
                railroads;
                    (B) classify each such bridge according to 
                serviceability, safety, and essentiality for 
                public use; and
                    (C) assign each such bridge a priority for 
                replacement or rehabilitation based on the 
                classification under subparagraph (B).
            (2) Consultation.--In preparing an inventory of 
        highway bridges on Indian reservation roads and park 
        roads under paragraph (1), the Secretary shall consult 
        with the Secretary of the Interior and the States.
            (3) Inventory of historical bridges.--At the 
        request of a State, the Secretary may inventory bridges 
        on public roads for historical significance.
    (c) Certification by the State.--Not later than 180 days 
after the end of each fiscal year beginning with fiscal year 
1998, each State shall certify to the Secretary, either that--
            (1) the State has reserved, from funds apportioned 
        to the State for the preceding fiscal year, to carry 
        out bridge projects eligible under sections 103(b)(5), 
        119, and 133(b), an amount that is not less than the 
        amount apportioned to the State under this section for 
        fiscal year 1997; or
            (2) the amount that the State will reserve, from 
        funds apportioned to the State for the period 
        consisting of fiscal years 1998 through 2001, to carry 
        out bridge projects eligible under sections 103(b)(5), 
        119, and 133(b), will be not less than 4 times the 
        amount apportioned to the State under this section for 
        fiscal year 1997.
    (d) Use of Reserved Funds.--A State may use funds reserved 
under subsection (c) to replace, rehabilitate, reconstruct, 
seismically retrofit, paint, apply calcium magnesium acetate 
to, apply sodium acetate/formate deicer to, or install scour 
countermeasures on a highway bridge on a public road that 
crosses a waterway, other topographical barrier, other highway, 
or railroad.
    (e) Off-System Bridges.--
            (1) Required expenditure.--For each fiscal year, an 
        amount equal to not less than 15 percent of the amount 
        apportioned to a State under this section for fiscal 
        year 1997 shall be expended by the State for projects 
        to replace, rehabilitate, reconstruct, seismically 
        retrofit, paint, apply calcium magnesium acetate to, 
        apply sodium acetate/formate deicer to, or install 
        scour countermeasures on highway bridges located on 
        public roads that are functionally classified as local 
        roads or rural minor collectors.
            (2) Use of funds to meet required expenditure.--
        Funds reserved under subsection (c) and funds made 
        available under section 104(b)(1) for the National 
        Highway System or under section 104(b)(3) for the 
        surface transportation program may be used to meet the 
        requirement for expenditure under paragraph (1).
            (3) Reduction of required expenditure.--After 
        consultation with local and State officials in a State, 
        the Secretary may, with respect to the State, reduce 
        the requirement for expenditure under paragraph (1) if 
        the Secretary determines that the State has inadequate 
        needs to justify the expenditure.
    (f) Federal Share.--The Federal share of the cost of a 
project under this section shall be as determined under section 
120(b).
    (g) Bridge Permit Exemption.--
            (1) In general.--Subject to paragraph (2), 
        notwithstanding any other provision of law, the General 
        Bridge Act of 1946 (33 U.S.C. 525 et seq.) shall apply 
        to each bridge authorized to be replaced, in whole or 
        in part, under this section.
            (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 (30 Stat. 1151, chapter 425; 
        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 are--
                    (A) not used and not susceptible to use in 
                their natural condition or by reasonable 
                improvement as a means to transport interstate 
                or foreign commerce; and
                    (B)(i) not tidal; or
                    (ii) tidal but used only by recreational 
                boating, fishing, and other small vessels that 
                are less than 21 feet in length.
    (h) Indian Reservation Road Bridges.--
            (1) Nationwide priority program.--The Secretary 
        shall establish a nationwide priority program for 
        improving deficient Indian reservation road bridges.
            (2) Reservation of funds.--
                    (A) In general.--Of the amounts authorized 
                for Indian reservation roads for each fiscal 
                year, the Secretary, in cooperation with the 
                Secretary of the Interior, shall reserve not 
                less than $9,000,000 for projects to replace, 
                rehabilitate, seismically retrofit, paint, 
                apply calcium magnesium acetate to, apply 
                sodium acetate/formate deicer to, or install 
                scour countermeasures for deficient Indian 
                reservation road bridges, including multiple-
                pipe culverts.
                    (B) Eligible bridges.--To be eligible to 
                receive funding under this subsection, a bridge 
                described in subparagraph (A) must--
                            (i) have an opening of 20 feet or 
                        more;
                            (ii) be on an Indian reservation 
                        road;
                            (iii) be unsafe because of 
                        structural deficiencies, physical 
                        deterioration, or functional 
                        obsolescence; and
                            (iv) be recorded in the national 
                        bridge inventory administered by the 
                        Secretary under subsection (b).
            (3) Approval requirement.--Funds to carry out 
        Indian reservation road bridge projects under this 
        subsection shall be made available only on approval of 
        plans, specifications, and estimates by the Secretary.
    [(o)] (i) Historic Bridge Program.--
            (1) Coordination.--The Secretary shall, in 
        cooperation with the States, implement the programs 
        described in this section in a manner that encourages 
        the inventory, retention, rehabilitation, adaptive 
        reuse for alternative transportation purposes 
        (including bikeway and walkway projects eligible for 
        funding under this title, and future study of historic 
        bridges.
            (2) State inventory.--The Secretary shall require 
        each State to complete an inventory of all bridges on 
        and off the Federal-aid system to determine their 
        historic significance.
            (3) Eligibility.--Reasonable costs associated with 
        actions to preserve, or reduce the impact of a project 
        under this chapter on, the historic integrity of 
        historic bridges shall be eligible as reimbursable 
        project costs under this title (including this section) 
        if the load capacity and safety features of the bridge 
        are adequate to serve the intended use (regardless of 
        whether the intended use is for motorized vehicular 
        traffic or for alternative public transportation 
        purposes) for the life of the bridge; except that in 
        the case of a bridge which is no longer used for 
        motorized vehicular traffic or for alternative public 
        transportation purposes, the costs eligible as 
        reimbursable project costs pursuant to this subsection 
        shall not exceed the estimated cost of demolition of 
        such bridge.
            (4) Preservation.--Any State which proposes to 
        demolish a historic bridge for a replacement project 
        with funds made available to carry out this section 
        shall first make the bridge available for donation to a 
        State, locality, or responsible private entity if such 
        State, locality, or responsible entity enters into an 
        agreement to--
                    (A) maintain the bridge and the features 
                that give it its historic significance; and
                    (B) assume all future legal and financial 
                responsibility for the bridge, which may 
                include an agreement to hold the State highway 
                agency harmless in any liability action.
        Costs incurred by the State to preserve the 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 [up to an amount not to exceed the 
        cost of demolition]. Any bridge preserved pursuant to 
        this paragraph shall thereafter not be eligible for any 
        other funds authorized pursuant to this title.
            (5) Historic bridge defined.--As used in this 
        subsection, ``historic bridge'' means any bridge that 
        is listed on, or eligible for listing on, the National 
        Register of Historic Places.
    [(p) Applicability of State Standards for Projects.--A 
project not on a Federal-aid highway under this section shall 
be designed, constructed, operated, and maintained in 
accordance with State laws, regulations, directives, safety 
standards, design standards, and construction standards.
    [(q) As used in this section the term ``rehabilitate'' in 
any of its forms means major work necessary to restore the 
structural integrity of a bridge as well as work necessary to 
correct a major safety defect.]

Sec. 145. Federal-State relationship

    The authorization of the appropriation of Federal funds or 
their availability for expenditure under this chapter shall in 
no way infringe on the sovereign rights of the States to 
determine which projects shall be federally financed. The 
provisions of this chapter provide for a federally assisted 
State program.

Sec. 146. Carpool and vanpool projects

    (a) In order to conserve fuel, decrease traffic congestion 
during rush hours, improve air quality, and enhance the use of 
existing highways and parking facilities, the Secretary may 
approve for Federal financial assistance from funds apportioned 
under sections 104(b)(1)[,] and 104(b)(2)[, and 104(b)(6)] of 
this title, ``projects'' designed to encourage the use of 
carpools and vanpools. (As used hereafter in this section, the 
term ``carpool'' includes a vanpool.) Such a project may 
include, but is not limited to, such measures as providing 
carpooling opportunities to the elderly and handicapped, 
systems for locating potential riders and informing them of 
convenient carpool opportunities, acquiring vehicles 
appropriate for carpool use, designating existing highway lanes 
as preferential carpool highway lanes, providing related 
traffic control devices, and designating existing facilities 
for use as preferential parking for carpools.
    (b) A project authorized by this section shall be subject 
to and carried out in accordance with all provisions of this 
title, except those provisions which the Secretary determines 
are inconsistent with this section.
    [(a)] \1\ (c) HOV Passenger Requirements.--A [State highway 
department]State transportation department shall establish the 
occupancy requirements of vehicles operating in high occupancy 
vehicle lanes; except that no fewer than 2 occupants per 
vehicle may be required and, subject to section 163 of the 
Surface Transportation Assistance Act of 1982, motorcycles and 
bicycles shall not be considered single occupant vehicles.
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    \1\ This section was moved from old Section 102 by the bill.
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[Sec. 147. Priority primary routes

    [(a) High traffic sections of highways on the Federal-aid 
primary system which connect to the Interstate System shall be 
selected by each [State highway department]State transportation 
department, in consultation with appropriate local officials, 
subject to approval by the Secretary, for priority of 
improvement to supplement the service provided by the 
Interstate System by furnishing needed adequate traffic 
collector and distributor facilities. For the purpose of this 
section such highways shall hereafter in this section be 
referred to as ``priority primary routes''.
    [(b) The Federal share of any project on a priority primary 
route shall be that provided in section 120(a) of this title. 
All provisions of this title applicable to the Federal-aid 
primary system shall be applicable to the priority primary 
routes selected under this section.
    [(c) The initial selection of the priority primary routes 
and the estimated cost of completing such routes shall be 
reported to Congress on or before July 1, 1974.
    [(d) There is authorized to be appropriated out of the 
Highway Trust Fund to carry out this section not to exceed 
$100,000,000 for the fiscal year ending June 30, 1974, 
$200,000,000 for the fiscal year ending June 30, 1975, and 
$300,000,000 for the fiscal year ending June 30, 1976.]

Sec. 147. Repealed.

[Sec. 148. Development of a national scenic and recreational highway

    [(a) As soon as possible after the date of enactment of 
this section, the Secretary shall establish criteria for the 
location and construction or reconstruction of the Great River 
Road by the ten States bordering the Mississippi River. Such 
criteria shall include requirements that--
            [(1) priority be given in the location of the Great 
        River Road near or easily accessible to the larger 
        population centers of the State and further priority be 
        given to the construction and improvement of the Great 
        River Road in the proximity of the confluence of the 
        Mississippi River and the Wisconsin River;
            [(2) the Great River Road be connected with other 
        Federal-aid highways and preferably with the Interstate 
        System;
            [(3) the Great River Road be marked with uniform 
        identifying signs;
            [(4) effective control, as defined in section 131 
        of this title, of signs, displays, and devices will be 
        provided along the Great River Road;
            [(5) the provisions of section 129(a) of this title 
        shall not apply to any bridge or tunnel on the Great 
        River Road and no fees shall be charged for the use of 
        any facility constructed with assistance under this 
        section, except for parks, recreational areas, and 
        historical sites operated by State or local governments 
        where admission fees may be charged to cover 
        operational costs.
    [(b) For the purpose of this section, the term 
``construction'' includes the acquisition of areas of 
historical, archeological, or scientific interest, necessary 
easements for scenic purposes, and the construction or 
reconstruction of roadside rest areas (including appropriate 
recreational facilities), scenic viewing areas, and other 
appropriate facilities as determined by the Secretary.
    [(c) Highways constructed or reconstructed pursuant to this 
section (except subsection (f)) shall be part of the Federal-
aid system.
    [(d) Funds appropriated for each fiscal year pursuant to 
subsection (g) shall be apportioned among the ten States 
bordering the Mississippi River on the basis of their relative 
needs as determined by the Secretary for payments to carry out 
this section.
    [(e) The Federal share of the cost of any project for any 
construction or reconstruction pursuant to the preceding 
subsections of this section shall be that provided in section 
120 of this title for the Federal-aid system on which such 
project is located, and if such project is not on such a 
system, such share shall be 75 per centum of such cost.
    [(f) The Secretary is authorized to consult with the heads 
of other Federal departments and agencies having jurisdiction 
over Federal lands open to the public in order to enter 
appropriate arrangements for necessary construction or 
reconstruction of highways on such lands to carry out this 
section. Highways constructed or reconstructed by a State 
pursuant to this section which are not on a Federal-aid system, 
and highways constructed or reconstructed under this 
subsection, shall be subject to the criteria applicable to 
highways constructed or reconstructed pursuant to subsection 
(c) of this section. Funds authorized pursuant to subsection 
(g) shall be used to pay the entire cost of construction or 
reconstruction pursuant to the first sentence of this 
subsection.
    [(g) There is authorized to be appropriated to carry out 
this section, out of the Highway Trust Fund, for construction 
or reconstruction of roads on a Federal-aid highway system, not 
to exceed $10,000,000 for the fiscal year ending June 30, 1974, 
$25,000,000 for the fiscal year ending June 30, 1975, and 
$25,000,000 for the fiscal year ending June 30, 1976, for 
allocations to the States pursuant to this section, and there 
is authorized to be appropriated to carry out this section out 
of any money in the Treasury not otherwise appropriated, not to 
exceed $10,000,000 for each of the fiscal years ending June 30, 
1974, June 30, 1975, and June 30, 1976, for construction and 
reconstruction of roads not on a Federal-aid highway system.
    [(h) The Secretary is authorized to provide for the 
construction of such spur highways as he determines necessary 
to connect the Great River Road, by the most direct feasible 
routes, with existing bridges across the Mississippi for the 
purpose of providing persons traveling such road with access to 
significant scenic, historical, recreational, or archeological 
features on the opposite side of the Mississippi River from the 
Great River Road.]

Sec. 148. Repealed.

Sec. 149. Congestion mitigation and air quality improvement program

    (a) [Establishment.--The Secretary shall establish] In 
General.--The Secretary shall carry out a congestion mitigation 
and air quality improvement program in accordance with this 
section.
    (b) Eligible Projects.--Except as provided in subsection 
(c), a State may obligate funds apportioned to it under section 
104(b)(2) for the congestion mitigation and air quality 
improvement program only for a transportation project or 
program if the project or program is for an area in the State 
[that was designated as a nonattainment area under section 
107(d) of the Clean Air Act (42 U.S.C. 7407(d)) during any part 
of fiscal year 1994] that is designated as a nonattainment area 
under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)) 
or classified as a submarginal ozone nonattainment area under 
that Act, or if the project or program is for a maintenance 
area, and--
            (1)(A) if the Secretary, after consultation with 
        the Administrator of the Environmental Protection 
        Agency, determines, on the basis of information 
        published by the Environmental Protection Agency 
        pursuant to section 108(f)(1)(A) of the Clean Air Act 
        (other than [clauses (xii) and] clause (xvi) of such 
        section), that the project or program is likely to 
        contribute to--
                            (i) the attainment of a national 
                        ambient air quality standard; or
                            (ii) the maintenance of a national 
                        ambient air quality standard in [an 
                        area] a maintenance area; or that was 
                        designated as a nonattainment area but 
                        that was later redesignated by the 
                        Administrator of the Environmental 
                        Protection Agency as an attainment area 
                        under section 107(d) of the Clean Air 
                        Act (42 U.S.C. 7407(d)); or
            (B) in any case in which such information is not 
        available, if the Secretary, after such consultation, 
        determines that the project or program is part of a 
        program, method, or strategy described in [such 
        section] section 108(f)(1)(A) (other than clause (xvi)) 
        of the Clean Air Act (42 U.S.C. 7408(f)(1)(A));
            (2) if the project or program is included in a 
        State implementation or maintenance plan that has been 
        approved pursuant to the Clean Air Act and the project 
        will have air quality benefits;
            (3) the Secretary, after consultation with the 
        Administrator of the Environmental Protection Agency, 
        determines that the project or program is likely to 
        contribute to the attainment of a national ambient air 
        quality standard or maintenance of the standard, 
        whether through reductions in vehicle miles traveled, 
        fuel consumption, or through other factors; [or]
            (4) to establish or operate a traffic monitoring, 
        management, and control facility or program if the 
        Secretary, after consultation with the Administrator of 
        the Environmental Protection Agency, determines that 
        the facility or program is likely to contribute to the 
        attainment or maintenance of a national ambient air 
        quality standard; or
            (5) if the project or program is to construct a 
        ferry boat or ferry terminal facility and if the 
        conditions described in section 129(c) are met.
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. In areas of a 
State which are nonattainment for ozone or carbon monoxide, or 
both, and for PM-10 resulting from transportation activities, 
the State may obligate such funds for any project or program 
under paragraph (1) or (2) without regard to any limitation of 
the Department of Transportation relating to the type of 
ambient air quality standard such project or program addresses.
    [(c) States Without a Nonattainment Area.--If a State does 
not have a nonattainment area for ozone or carbon monoxide 
under the Clean Air Act located within its borders, the State 
may use funds apportioned to it under section 104(b)(2) for any 
project eligible for assistance under the surface 
transportation program.]
    (c) States Receiving Minimum Apportionment.--
            (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)(2) for any project eligible 
        under the surface transportation program under section 
        133.
            (2) States with a nonattainment area.--If a State 
        has a nonattainment area or maintenance area and 
        receives funds under section 104(b)(2)(D) above the 
        amount of funds that the State would have received 
        based on its nonattainment and maintenance area 
        population under subparagraphs (B) and (C) of section 
        104(b)(2), the State may use that portion of the funds 
        not based on its nonattainment and maintenance area 
        population under subparagraphs (B) and (C) of section 
        104(b)(2) for any project in the State eligible under 
        section 133.
    (d) Applicability of Planning Requirements.--Programming 
and expenditure of funds for projects under this section shall 
be consistent with the requirements of sections 134 and 135 of 
this title.
    (e) Partnerships With Nongovernmental Entities.--
            (1) In general.--Notwithstanding any other 
        provision of this title and in accordance with this 
        subsection, a metropolitan planning organization, State 
        transportation department, or other project sponsor may 
        enter into an agreement with any public, private, or 
        nonprofit entity to cooperatively implement any project 
        carried out under this section.
            (2) Forms of participation by entities.--
        Participation by an entity under paragraph (1) may 
        consist of--
                    (A) ownership or operation of any land, 
                facility, vehicle, or other physical asset 
                associated with the project;
                    (B) cost sharing of any project expense;
                    (C) carrying out of administration, 
                construction management, project management, 
                project operation, or any other management or 
                operational duty associated with the project; 
                and
                    (D) any other form of participation 
                approved by the Secretary.
            (3) Allocation to entities.--A State may allocate 
        funds apportioned under section 104(b)(2) to an entity 
        described in paragraph (1).
            (4) Alternative fuel projects.--In the case of a 
        project that will provide for the use of alternative 
        fuels by privately owned vehicles or vehicle fleets, 
        activities eligible for funding under this subsection--
                    (A) may include the costs of vehicle 
                refueling infrastructure and other capital 
                investments associated with the project; and
                    (B) shall--
                            (i) include only the incremental 
                        cost of an alternative fueled vehicle 
                        compared to a conventionally fueled 
                        vehicle that would otherwise be borne 
                        by a private party; and
                            (ii) apply other governmental 
                        financial purchase contributions in the 
                        calculation of net incremental cost.
            (5) Prohibition on federal participation with 
        respect to required activities.--A Federal 
        participation payment under this subsection may not be 
        made to an entity to fund an obligation imposed under 
        the Clean Air Act (42 U.S.C. 7401 et seq.) or any other 
        Federal law.

[Sec. 150. Allocation of urban system funds

    [The funds apportioned to any State under paragraph (6) of 
subsection (b) of section 104 of this title that are 
attributable to urbanized areas of 200,000 population or more 
shall be made available for expenditure in such urbanized areas 
for projects in programs approved under subsection (d) of 
section 105 of this title in accordance with a fair and 
equitable formula developed by the State which formula has been 
approved by the Secretary. Such formula shall provide for fair 
and equitable treatment of incorporated municipalities of 
200,000 or more population. Whenever such a formula has not 
been developed and approved for a State, the funds apportioned 
to any State under paragraph (6) of subsection (b) of section 
104 of this title which are attributable to urbanized areas 
having a population of 200,000 or more shall be allocated among 
such urbanized areas within such State for projects in programs 
approved under subsection (d) of section 105 of this title in 
the ratio that the population within each such urbanized area 
bears to the population of all such urbanized areas, or parts 
thereof, within such State. In the expenditure of funds 
allocated under the preceding sentence, fair and equitable 
treatment shall be accorded incorporated municipalities of 
200,000 or more population. Funds allocated to an urbanized 
area under the provisions of this section may, at the request 
of the Governor and upon approval of the appropriate local 
officials of the area and the Secretary, be transferred to the 
allocation of another such area in the State or to the State 
for use in any urban area.]

Sec. 150. [Repealed[

Sec. 151. National bridge inspection program

    (a) National Bridge Inspection Standards.--The Secretary, 
in consultation with the [State highway departments]State 
transportation departments and interested and knowledgeable 
private organizations and individuals, shall establish national 
bridge inspection standards for the proper safety inspection 
and evaluation of all highway bridges.
    (b) Minimum Requirements of Inspection Standards.--The 
standards established under subsection (a) shall, at a 
minimum--
            (1) specify, in detail, the method by which such 
        inspections shall be carried out by the States;
            (2) establish the maximum time period between 
        inspections;
            (3) establish the qualification for those charged 
        with carrying out the inspections;
            (4) require each State to maintain and make 
        available to the Secretary upon request--
                    (A) written reports on the results of 
                highway bridge inspections together with 
                notations of any action taken pursuant to the 
                findings of such inspections; and
                    (B) current inventory data for all highway 
                bridges reflecting the findings of the most 
                recent highway bridge inspections conducted; 
                and
            (5) establish a procedure for national 
        certification of highway bridge inspectors.
    (c) Training Program for Bridge Inspectors.--The Secretary, 
in cooperation with the [State highway departments]State 
transportation departments, shall establish a program designed 
to train appropriate governmental employees to carry out 
highway bridge inspections. Such training program shall be 
revised from time to time to take into account new and improved 
techniques.
    (d) Availability of Funds.--To carry out this section, the 
Secretary may use funds made available pursuant to the 
provisions of [section 104(a), section 307(a), and section 144 
of this title] subsections (a) and (b)(1)(B) of section 104 and 
[section 307(a)] section 506.

Sec. 152. Hazard elimination program

    (a) Each State shall conduct and systematically maintain an 
engineering survey of all public roads to identify hazardous 
locations, sections, and elements, including roadside obstacles 
and unmarked or poorly marked roads, which may constitute a 
danger to motorists, bicyclists, and pedestrians, assign 
priorities for the correction of such locations, sections, and 
elements, and establish and implement a schedule of projects 
for their improvement.
    (b) The Secretary may approve as a project under this 
section any [highway safety improvement project] safety 
improvement project, including a project described in 
subsection (a).
    (c) Funds authorized to carry out this section shall be 
available for expenditure [on any public road (other than a 
highway on the Interstate System)] on--
            (1) any public road;
            (2) any public transportation vehicle or facility, 
        any publicly owned bicycle or pedestrian pathway or 
        trail, or any other facility that the Secretary 
        determines to be appropriate; or
            (3) any traffic calming measure.
    (d) The Federal share payable on account of any project 
under this section shall be 90 percent of the cost thereof.
    (e) Funds authorized to be appropriated to carry out this 
section shall be [apportioned to the States as provided in 
section 402(c) of this title. Such funds shall be] available 
for obligation in the same manner and to the same extent as if 
such funds were apportioned under section 104(b)(1), except 
that the Secretary is authorized to waive provisions he deems 
inconsistent with the purposes of this section.
    (f) Each State shall establish an evaluation process 
approved by the Secretary, to analyze and assess results 
achieved by [highway] safety improvement projects carried out 
in accordance with procedures and criteria established by this 
section. Such evaluation process shall develop cost-benefit 
data for various types of corrections and treatments which 
shall be used in setting priorities for [highway] safety 
improvement projects.
    (g) Each State shall report to the Secretary of 
Transportation not later than December 30 of each year, on the 
progress being made to implement [highway] safety improvement 
projects for hazard elimination and the effectiveness of such 
improvements. Each State report shall contain an assessment of 
the cost of, and safety benefits derived from, the various 
means and methods used to mitigate or eliminate hazards and the 
previous and subsequent accident experience at these locations. 
The Secretary of Transportation shall submit a report to the 
Committee on Environment and Public Works of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives not later than April 1 of each year on the 
progress being made by the States in implementing the hazard 
elimination program (including but not limited to any projects 
for pavement marking). The report shall include, but not be 
limited to, the number of projects undertaken, their 
distribution by cost range, road system, means and methods 
used, and the previous and subsequent accident experience at 
improved locations. In addition, the Secretary's report shall 
analyze and evaluate each State program, identify any State 
found not to be in compliance with the schedule of improvements 
required by subsection (a) and include recommendations for 
future implementation of the hazard elimination program.
    (h) For the purposes of this section the term ``State'' 
shall have the meaning given it in section 401 of this title.

Sec. 153. Use of safety belts and motorcycle helmets

    (a) Authority To Make Grants.--The Secretary may make 
grants to a State in a fiscal year in accordance with this 
section if the State has in effect in such fiscal year--
            (1) a law which makes unlawful throughout the State 
        the operation of a motorcycle if any individual on the 
        motorcycle is not wearing a motorcycle helmet; and
            (2) a law which makes unlawful throughout the State 
        the operation of a passenger vehicle whenever an 
        individual in a front seat of the vehicle (other than a 
        child who is secured in a child restraint system) does 
        not have a safety belt properly fastened about the 
        individual's body.
    (b) Use of Grants.--A grant made to a State under this 
section shall be used to adopt and implement a traffic safety 
program to carry out the following purposes:
            (1) Education.--To educate the public about 
        motorcycle and passenger vehicle safety and motorcycle 
        helmet, safety belt, and child restraint system use and 
        to involve public health education agencies and other 
        related agencies in these efforts.
            (2) Training.--To train law enforcement officers in 
        the enforcement of State laws described in subsection 
        (a).
            (3) Monitoring.--To monitor the rate of compliance 
        with State laws described in subsection (a).
            (4) Enforcement.--To enforce State laws described 
        in subsection (a).
    (c) Maintenance of Effort.--A grant may not be made to a 
State under this section in any fiscal year 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 other sources for any traffic 
safety program described in subsection (b) at or above the 
average level of such expenditures in the State's 2 fiscal 
years preceding the date of the enactment of this section.
    (d) Federal Share.--A State may not receive a grant under 
this section in more than 3 fiscal years. The Federal share 
payable for a grant under this section shall not exceed--
            (1) in the first fiscal year the State receives a 
        grant, 75 percent of the cost of implementing in such 
        fiscal year a traffic safety program described in 
        subsection (b);
            (2) in the second fiscal year the State receives a 
        grant, 50 percent of the cost of implementing in such 
        fiscal year such traffic safety program; and
            (3) in the third fiscal year the State receives a 
        grant, 25 percent of the cost of implementing in such 
        fiscal year such traffic safety program.
    (e) Maximum Aggregate Amount of Grants.--The aggregate 
amount of grants made to a State under this section shall not 
exceed 90 percent of the amount apportioned to such State for 
fiscal year 1990 under section 402.
    (f) Eligibility for Grants.--
            (1) General rule.--A State is eligible in a fiscal 
        year for a grant under this section only if the State 
        enters into such agreements with the Secretary as the 
        Secretary may require to ensure that the State 
        implements in such fiscal year a traffic safety program 
        described in subsection (b).
            (2) Second-year grants.--A State is eligible for a 
        grant under this section in a fiscal year succeeding 
        the first fiscal year in which a State receives a grant 
        under this section only if the State in the preceding 
        fiscal year--
                    (A) had in effect at all times a State law 
                described in subsection (a)(1) and achieved a 
                rate of compliance with such law of not less 
                than 75 percent; and
                    (B) had in effect at all times a State law 
                described in subsection (a)(2) and achieved a 
                rate of compliance with such law of not less 
                than 50 percent.
            (3) Third-year grants.--A State is eligible for a 
        grant under this section in a fiscal year succeeding 
        the second fiscal year in which a State receives a 
        grant under this section only if the State in the 
        preceding fiscal year--
                    (A) had in effect at all times a State law 
                described in subsection (a)(1) and achieved a 
                rate of compliance with such law of not less 
                than 85 percent; and
                    (B) had in effect at all times a State law 
                described in subsection (a)(2) and achieved a 
                rate of compliance with such law of not less 
                than 70 percent.
    (g) Measurements of Rates of Compliance.--For the purposes 
of subsections (f)(2) and (f)(3), a State shall measure 
compliance with State laws described in subsection (a) using 
methods which conform to guidelines issued by the Secretary 
ensuring that such measurements are accurate and 
representative.
    (h) Penalty.--
            (1) Fiscal year 1994.--If, at any time in fiscal 
        year 1994, a State does not have in effect a law 
        described in subsection (a)(2), the Secretary shall 
        transfer 1\1/2\ percent of the funds apportioned to the 
        State for fiscal year 1995 under each of subsections 
        (b)(1), (b)(2), and (b)(3) of section 104 of this title 
        to the apportionment of the State under section 402 of 
        this title.
            (2) Thereafter.--If, at any time in a fiscal year 
        beginning after September 30, 1994, a State does not 
        have in effect a law described in subsection (a)(2), 
        the Secretary shall transfer 3 percent of the funds 
        apportioned to the State for the succeeding fiscal year 
        under each of subsections (b)(1), (b)(2), and (b)(3) of 
        section 104 of this title to the apportionment of the 
        State under section 402 of this title.
            (3) Federal share.--The Federal share of the cost 
        of any project carried out under section 402 with funds 
        transferred to the apportionment of section 402 shall 
        be 100 percent.
            (4) Transfer of obligation authority.--If the 
        Secretary transfers under this subsection any funds to 
        the apportionment of a State under section 402 for a 
        fiscal year, the Secretary shall allocate an amount of 
        obligation authority distributed for such fiscal year 
        to the State for Federal-aid highways and highway 
        safety construction programs for carrying out only 
        projects under section 402 which is determined by 
        multiplying--
                    (A) the amount of funds transferred to the 
                apportionment of section 402 of the State under 
                section 402 for such fiscal year; by
                    (B) the ratio of the amount of obligation 
                authority distributed for such fiscal year to 
                the State for Federal-aid highways and highway 
                safety construction programs to the total of 
                the sums apportioned to the State for Federal-
                aid highways and highway safety construction 
                (excluding sums not subject to any obligation 
                limitation) for such fiscal year.
            (5) Limitation on applicability of highway safety 
        obligations.--Notwithstanding any other provision of 
        law, no limitation on the total of obligations for 
        highway safety programs carried out by the Federal 
        Highway Administration under section 402 shall apply to 
        funds transferred under this subsection to the 
        apportionment of section 402.
    (i) Definitions.--For the purposes of this section, the 
following definitions apply:
            (1) Motorcycle.--The term ``motorcycle'' means a 
        motor vehicle which is designed to travel on not more 
        than 3 wheels in contact with the surface.
            (2) Motor vehicle.--The term ``motor vehicle'' has 
        the meaning such term has under section 154 of this 
        title.
            (3) Passenger vehicle.--The term ``passenger 
        vehicle'' means a motor vehicle which is designed for 
        transporting 10 individuals or less, including the 
        driver, except that such term does not include a 
        vehicle which is constructed on a truck chassis, a 
        motorcycle, a trailer, or any motor vehicle which is 
        not required on the date of the enactment of this 
        section under a Federal motor vehicle safety standard 
        to be equipped with a belt system.
            (4) Safety belt.--The term ``safety belt'' means--
                    (A) with respect to open-body passenger 
                vehicles, including convertibles, an occupant 
                restraint system consisting of a lap belt or a 
                lap belt and a detachable shoulder belt; and
                    (B) with respect to other passenger 
                vehicles, an occupant restraint system 
                consisting of integrated lap shoulder belts.
    (j) 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 $17,000,000 
for fiscal year 1992. From sums made available to carry out 
section 402 of this title, the Secretary shall make available 
$17,000,000 for fiscal year 1992 and $24,000,000 for each of 
fiscal years 1993 and 1994 to carry out this section.
    (k) Applicability of Chapter 1 Provisions.--All provisions 
of this chapter that are applicable to National Highway System 
funds, other than provisions relating to the apportionment 
formula and provisions limiting the expenditures of such funds 
to Federal-aid systems, shall apply to funds authorized to be 
appropriated to carry out this section, except as determined by 
the Secretary to be inconsistent with this section and except 
that sums authorized by this section shall remain available 
until expended.

Sec. 154. [Repealed by Public Law 104-59]

[Sec. 155. Access highways to public recreation areas on certain lakes

    [(a) The Secretary is authorized to construct or 
reconstruct access highways to public recreation areas on lakes 
in order to accommodate present and projected traffic density. 
The Secretary shall develop guidelines and standards for the 
designation of routes and the allocation of funds for the 
purpose of this section which shall include the following 
criteria:
            [(1) No portion of any access highway constructed 
        or reconstructed under this section shall exceed 
        thirty-five miles in length nor shall any portion of 
        such highway be located more than thirty-five miles 
        from the nearest part of such recreation area.
            [(2) Routes shall be designated by the Secretary on 
        the recommendation of the State and responsible local 
        officials, after consultation with the head of the 
        Federal agency (if any) having jurisdiction over the 
        public recreation area involved.
    [(b) The Federal share payable on account of any project 
authorized pursuant to this section shall not exceed 75 per 
centum of the cost of construction or reconstruction of such 
project.
    [(c) All of the provisions of this title applicable to 
highways on the Federal-aid system (other than the Interstate 
System) determined appropriate by the Secretary, except those 
provisions which the Secretary determines are inconsistent with 
this section, shall apply to any highway designated under this 
section, which is not a part of the Federal-aid system when so 
designated.
    [(d) For the purpose of this section the term ``lake'' 
means any lake, reservoir, pool, or other body of water 
resulting from the construction of any lock, dam, or similar 
structure by the Corps of Engineers, Department of the Army, or 
the Bureau of Reclamation, Department of the Interior, or the 
Tennessee Valley Authority, and any multipurpose lake resulting 
from construction assistance of the Soil Conservation Service, 
Department of Agriculture. This section shall apply to lakes 
heretofore or hereafter constructed or authorized for 
construction.
    [(e) There is authorized to be appropriated not to exceed 
$25,000,000 for the fiscal year 1976 to carry out this section. 
Amounts authorized by this subsection for a fiscal year shall 
be available for that fiscal year and for the two succeeding 
fiscal years.]

Sec. 155. Repealed.

[Sec. 156. Income from airspace rights-of-way

    [Subject to section 142(f), States shall charge, as a 
minimum, fair market value, with exceptions granted at the 
discretion of the Secretary for social, environmental, and 
economic mitigation purposes, for the sale, use, lease, or 
lease renewals (other than for utility use and occupancy or for 
transportation projects eligible for assistance under this 
title) of right-of-way airspace acquired as a result of a 
project funded in whole or in part with Federal assistance made 
available from the Highway Trust Fund (other than the Mass 
Transit Account). This section applies to new airspace usage 
proposals, renewals of prior agreements, arrangements, or 
leases entered into by the State after the date of the 
enactment of the Federal-Aid Highway Act of 1987. The Federal 
share of net income from the revenues obtained by the State for 
sales, uses, or leases (including lease renewals) under this 
section shall be used by the State for projects eligible under 
this title.]

Sec. 156. Proceeds from the sale or lease of real property

    (a) Minimum Charge.--Subject to section 142(f), a State 
shall charge, at a minimum, fair market value for the sale, 
use, lease, or lease renewal (other than for utility use and 
occupancy or for a transportation project eligible for 
assistance under this title) of real property acquired with 
Federal assistance made available from the Highway Trust Fund 
(other than the Mass Transit Account).
    (b) Exceptions.--The Secretary may grant an exception to 
the requirement of subsection (a) for a social, environmental, 
or economic purpose.
    (c) Use of Federal Share of Income.--The Federal share of 
net income from the revenues obtained by a State under 
subsection (a) shall be used by the State for projects eligible 
under this title.

[Sec. 157. Minimum allocation

      [(a) General Rules.--
            [(1) Fiscal years 1984-1987.--In the fiscal year 
        ending September 30, 1983, as soon as practicable after 
        the date of enactment of this Act, and in each of the 
        fiscal years ending September 30, 1984, September 30, 
        1985, and September 30, 1986, on October 1, the 
        Secretary of Transportation shall allocate among the 
        States, as defined in section 101 of this title amounts 
        sufficient to insure that a State's percentage of the 
        total apportionments in each such fiscal year of 
        Interstate highway substitute, primary, secondary, 
        Interstate, urban, bridge replacement and 
        rehabilitation, hazard elimination, and rail-highway 
        crossings funds under sections 103(e)(4), 104(b), 144, 
        and 152 of this title and section 203 of the Highway 
        Safety Act of 1973, as amended, shall not be less than 
        85 per centum of the percentage of estimated tax 
        payments attributable to highway users in that State 
        paid into the Highway Trust Fund, other than the Mass 
        Transit Account, in the latest fiscal year for which 
        data is available.
            [(2) Fiscal years 1987 and 1988.--In fiscal years 
        1987 and 1988, on October 1, or as soon as possible 
        thereafter, the Secretary shall allocate among the 
        States amounts sufficient to ensure that a State's 
        percentage of the total apportionments in each such 
        fiscal year and allocations for the prior fiscal year 
        for Federal-aid highway programs (except allocations 
        for emergency relief in accordance with section 125 of 
        this title, the Interstate construction discretionary 
        program in accordance with section 118(b)(2) of this 
        title, forest highways, Indian reservation roads, and 
        parkways and park roads in accordance with section 202 
        of this title, highway related safety grants authorized 
        by section 402 of this title, nonconstruction safety 
        grants authorized by sections 402, 406, and 408 of this 
        title, and Bureau of Motor Carrier Safety Grants 
        authorized by section 31104 of title 49) shall not be 
        less than 85 percent of the percentage of estimated tax 
        payments attributable to highway users in the State 
        paid into the Highway Trust Fund, other than the Mass 
        Transit Account, in the latest fiscal year for which 
        data are available.
            [(3) Fiscal years 1989-1991.--
                    [(A) General rule.--In fiscal year 1989, 
                1990, and 1991 on October 1, or as soon as 
                possible thereafter, the Secretary shall 
                allocate among the States amounts sufficient to 
                ensure that a State's percentage of the total 
                apportionments in each such fiscal year and 
                allocations for the prior fiscal year for 
                Federal-aid highway programs (except 
                allocations for forest highways, Indian 
                reservation roads, and parkways and park roads 
                in accordance with section 202 of this title, 
                highway related safety grants authorized by 
                section 402 of this title, nonconstruction 
                safety grants authorized by sections 402, 406, 
                and 408 of this title, and Bureau of Motor 
                Carrier Safety Grants authorized by section 
                31104 of title 49) shall not be less than 85 
                percent of the percentage of estimated tax 
                payments attributable to highway users in the 
                State paid into the Highway Trust Fund, other 
                than the Mass Transit Account, in the latest 
                fiscal year for which data are available.
                    [(B) Exception for fiscal year 1989.--
                Notwithstanding subparagraph (A), the amount 
                allocated to the State of California under this 
                paragraph in fiscal year 1989 shall be the 
                amount which would be allocated to such State 
                under this subsection if paragraph (2) were in 
                effect for such fiscal year.
            [(4) Thereafter.--In fiscal year 1992 and each 
        fiscal year thereafter on October 1, or as soon as 
        possible thereafter, the Secretary shall allocate among 
        the States amounts sufficient to ensure that a State's 
        percentage of the total apportionments in each such 
        fiscal year and allocations for the prior fiscal year 
        for Interstate construction, Interstate maintenance, 
        Interstate highway substitute, National Highway System, 
        surface transportation program, bridge program, scenic 
        byways, and grants for safety belts and motorcycle 
        helmets shall not be less than 90 percent of the 
        percentage of estimated tax payments attributable to 
        highway users in the State paid into the Highway Trust 
        Fund, other than the Mass Transit Account, in the 
        latest fiscal year for which data are available.
    [(b) Amounts allocated pursuant to subsection (a) of this 
section shall be available for obligation when allocated for 
the year authorized plus the three succeeding fiscal years, 
shall be subject to the provisions of this title 23 and may be 
obligated for Interstate highway substitute, National Highway, 
surface transportation program, Interstate, congestion 
mitigation and air quality improvement program, bridge, hazard 
elimination, and rail-highway crossings projects. \1/2\ of the 
amounts allocated pursuant to subsection (a) after September 
30, 1991, shall be subject to section 133(d)(3) of this title. 
Obligation limitations for Federal-aid highways and highway 
safety construction programs established by this Act or any 
subsequent Act shall not apply to obligations made under this 
section, except where the provision of law establishing such 
limitation specifically amends or limits the applicability of 
this sentence. Sums allocated pursuant to this section shall 
not be considered to be sums allocated for purposes of section 
104(b) of the Highway Improvement Act of 1982 and section 
4102(c) of the Consolidated Omnibus Budget Reconciliation Act 
of 1985 and section 105(c) of the Federal-Aid Highway Act of 
1987 and section 1002(c) of the Intermodal Surface 
Transportation Efficiency Act of 1991.
    [(c) Limitation on Planning Expenditures.--One-half of 1 
percent of amounts allocated to each State under this section 
in any fiscal year may be available for expenditure for the 
purpose of carrying out the requirements of section 134 of this 
title (relating to transportation planning). 1\1/2\ percent of 
the amounts allocated to each State under this section in any 
fiscal year may be available for expenditure for the purpose of 
carrying out activities referred to in subsection (c) of 
section 307 of this title (relating to transportation planning 
and research).
    [(d) Treatment of Withheld Apportionments.--For purposes of 
subsection (a), any funds which, but for section 154(f) or 
158(a) of this title or any other provision of law under which 
Federal-aid highway funds are withheld from apportionment, 
would be apportioned to a State in a fiscal year under a 
section referred to in subsection (a) shall be treated as being 
apportioned in such year.
    [(e) In order to carry out this section there is authorized 
to be appropriated out of the Highway Trust Fund, other than 
the Mass Transit Account, such sums as may be necessary for 
each of the fiscal years ending on or after September 30, 
1983.]

Sec. 157. [Repealed[

Sec. 158. National minimum drinking age

    (a) Withholding of Funds for Noncompliance.--
            [(1) First year.--The Secretary shall withhold 5 
        per centum of the amount required to be apportioned to 
        any State under each of sections 104(b)(1), 104(b)(2), 
        104(b)(5), and 104(b)(6) of this title on the first day 
        of the fiscal year succeeding the first fiscal year 
        beginning after September 30, 1985, in which the 
        purchase or public possession in such State of any 
        alcoholic beverage by a person who is less than twenty-
        one years of age is lawful.]
            [(2)] (1) [After the first year] In General.--The 
        Secretary shall withhold 10 per centum of the amount 
        required to be apportioned to any State under each of 
        sections 104(b)(1)[, 104(b)(2), 104(b)(5), and 
        104(b)(6)] and 104(b)(2) of this title on the first day 
        of each fiscal year after the second fiscal year 
        beginning after September 30, 1985, in which the 
        purchase or public possession in such State of any 
        alcoholic beverage by a person who is less than twenty-
        one years of age is lawful.
            [(3)] (2) State grandfather law as complying.--If, 
        before the later of (A) October 1, 1986, or (B) the 
        tenth day following the last day of the first session 
        the legislature of a State convenes after the date of 
        the enactment of this paragraph, such State has in 
        effect a law which makes unlawful the purchase and 
        public possession in such State of any alcoholic 
        beverage by a person who is less than 21 years of age 
        (other than any person who is 18 years of age or older 
        on the day preceding the effective date of such law and 
        at such time could lawfully purchase or publicly 
        possess any alcoholic beverage in such State), such 
        State shall be deemed to be in compliance with 
        [paragraphs (1) and (2) of this subsection] paragraph 1 
        in each fiscal year in which such law is in effect.
      [(b) Period of Availability; Effect of Compliance and 
Noncompliance.--
            [(1) Period of availability of withheld funds.--
                    [(A) Funds withheld on or before september 
                30, 1988.--Any funds withheld under this 
                section from apportionment to any State on or 
                before September 30, 1988, shall remain 
                available for apportionment to such State as 
                follows:
                            [(i) If such funds would have been 
                        apportioned under section 104(b)(5)(A) 
                        of this title but for this section, 
                        such funds shall remain available until 
                        the end of the fiscal year for which 
                        such funds are authorized to be 
                        appropriated.
                            [(ii) If such funds would have been 
                        apportioned under section 104(b)(5)(B) 
                        of this title but for this section, 
                        such funds shall remain available until 
                        the end of the second fiscal year 
                        following the fiscal year for which 
                        such funds are authorized to be 
                        appropriated.
                            [(iii) If such funds would have 
                        been apportioned under section 
                        104(b)(1), 104(b)(2), or 104(b)(6) of 
                        this title but for this section, such 
                        funds shall remain available until the 
                        end of the third fiscal year following 
                        the fiscal year for which such funds 
                        are authorized to be appropriated.
                    [(B) Funds withheld after september 30, 
                1988.--No funds withheld under this section 
                from apportionment to any State after September 
                30, 1988, shall be available for apportionment 
                to such State.
            [(2) Apportionment of withheld funds after 
        compliance.--If, before the last day of the period for 
        which funds withheld under this section from 
        apportionment are to remain available for apportionment 
        to a State under paragraph (1)(A), the State makes 
        effective a law which is in compliance with subsection 
        (a), the Secretary shall on the day following the 
        effective date of such law apportion to such State the 
        withheld funds remaining available for apportionment to 
        such State.
            [(3) Period of availability of subsequently 
        apportioned funds.--Any funds apportioned pursuant to 
        paragraph (2) shall remain available for expenditure as 
        follows:
                    [(A) Funds apportioned under section 
                104(b)(5)(A) of this title shall remain 
                available until the end of the fiscal year 
                succeeding the fiscal year in which such funds 
                are so apportioned.
                    [(B) Funds apportioned under section 
                104(b)(1), 104(b)(2), 104(b)(5)(B), or 
                104(b)(6) of this title shall remain available 
                until the end of the third fiscal year 
                succeeding the fiscal year in which such funds 
                are so apportioned.
        [Sums not obligated at the end of such period shall 
        lapse or, in the case of funds apportioned under 
        section 104(b)(5) of this title, shall lapse and be 
        made available by the Secretary for projects in 
        accordance with section 118(b) of this title.
            [(4) Effect of noncompliance.--If, at the end of 
        the period for which funds withheld under this section 
        from apportionment are available for apportionment to a 
        State under paragraph (1), the State has not made 
        effective a law which is in compliance with subsection 
        (a), such funds shall lapse or, in the case of funds 
        withheld from apportionment under section 104(b)(5) of 
        this title, such funds shall lapse and be made 
        available by the Secretary for projects in accordance 
        with section 118(b) of this title.]
    (b) Effect of Withholding of Funds.--No funds withheld 
under this section from apportionment to any State after 
September 30, 1988, shall be available for apportionment to 
that State.
    (c) Alcoholic Beverage Defined.--As used in this section, 
the term ``alcoholic beverage'' means--
            (1) beer as defined in section 5052(a) of the 
        Internal Revenue Code of 1954,
            (2) wine of not less than one-half of 1 per centum 
        of alcohol by volume, or
            (3) distilled spirits as defined in section 
        5002(a)(8) of such Code.

Sec. 159. Revocation or suspension of drivers' licenses of individuals 
                    convicted of drug offenses

    (a) Withholding of Apportionments for Noncompliance.--
            (1) Beginning in fiscal year 1994.--For each fiscal 
        year the Secretary shall withhold 5 percent of the 
        amount required to be apportioned to any State under 
        each of paragraphs (1), (3), and [(5) of] (5) (as in 
        effect on the day before the enactment of the 
        Intermodal Surface Transportation Efficiency Act of 
        1997) of section 104(b) on the first day of each fiscal 
        year which begins after the second calendar year 
        following the effective date of this section if the 
        State does not meet the requirements of paragraph (3) 
        on such date.
            (2) Beginning in fiscal year 1996.--The Secretary 
        shall withhold 10 percent (including any amounts 
        withheld under paragraph (1)) of the amount required to 
        be apportioned to any State under each of paragraphs 
        (1), (3), and [(5) of] (5) (as in effect on the day 
        before the enactment of the Intermodal Surface 
        Transportation Efficiency Act of 1997) of section 
        104(b) on the first day of each fiscal year which 
        begins after the fourth calendar year following the 
        effective date of this section if the State does not 
        meet the requirements of paragraph (3) on the first day 
        of such fiscal year.
            (3) Requirements.--A State meets the requirements 
        of this paragraph if--
                    (A) the State has enacted and is enforcing 
                a law that requires in all circumstances, or 
                requires in the absence of compelling 
                circumstances warranting an exception--
                            (i) the revocation, or suspension 
                        for at least 6 months, of the driver's 
                        license of any individual who is 
                        convicted, after the enactment of such 
                        law, of--
                                    (I) any violation of the 
                                Controlled Substances Act, or
                                    (II) any drug offense; and
                            (ii) a delay in the issuance or 
                        reinstatement of a driver's license to 
                        such an individual for at least 6 
                        months after the individual applies for 
                        the issuance or reinstatement of a 
                        driver's license if the individual does 
                        not have a driver's license, or the 
                        driver's license of the individual is 
                        suspended, at the time the individual 
                        is so convicted; or
                    (B) the Governor of the State--
                            (i) submits to the Secretary no 
                        earlier than the adjournment sine die 
                        of the first regularly scheduled 
                        session of the State's legislature 
                        which begins after the effective date 
                        of this section a written certification 
                        stating that the Governor is opposed to 
                        the enactment or enforcement in the 
                        State of a law described in 
                        subparagraph (A), relating to the 
                        revocation, suspension, issuance, or 
                        reinstatement of drivers' licenses to 
                        convicted drug offenders; and
                            (ii) submits to the Secretary a 
                        written certification that the 
                        legislature (including both Houses 
                        where applicable) has adopted a 
                        resolution expressing its opposition to 
                        a law described in clause (i).
    (b) Period of Availability; Effect of Compliance and 
Noncompliance.--
            (1) Period of availability of withheld funds.--
                    (A) Funds withheld on or before september 
                30, 1995.--Any funds withheld under subsection 
                (a) from apportionment to any State on or 
                before September 30, 1995, shall remain 
                available for apportionment to such State as 
                follows:
                            (i) If such funds would have been 
                        apportioned under [section 
                        104(b)(5)(A)] section 104(b)(5)(A) (as 
                        in effect on the day before the 
                        enactment of the Intermodal Surface 
                        Transportation Efficiency Act of 1997) 
                        but for this section, such funds shall 
                        remain available until the end of the 
                        fiscal year for which such funds are 
                        authorized to be appropriated.
                            (ii) If such funds would have been 
                        apportioned under [section 
                        104(b)(5)(B)] section 104(b)(5)(B) (as 
                        in effect on the day before the 
                        enactment of the Intermodal Surface 
                        Transportation Efficiency Act of 1997) 
                        but for this section, such funds shall 
                        remain available until the end of the 
                        second fiscal year following the fiscal 
                        year for which such funds are 
                        authorized to be appropriated.
                            (iii) If such funds would have been 
                        apportioned under paragraph (1), (3), 
                        or (5) of [section 104(b)(5)(A)] 
                        section 104(b)(5)(A) (as in effect on 
                        the day before the enactment of the 
                        Intermodal Surface Transportation 
                        Efficiency Act of 1997) but for this 
                        section, such funds shall remain 
                        available until the end of the third 
                        fiscal year following the fiscal year 
                        for which such funds are authorized to 
                        be appropriated.
                    (B) Funds withheld after september 30, 
                1995.--No funds withheld under this section 
                from apportionment to any State after September 
                30, 1995, shall be available for apportionment 
                to such State.
            (2) Apportionment of withheld funds after 
        compliance.--If, before the last day of the period for 
        which funds withheld under subsection (a) from 
        apportionment are to remain available for apportionment 
        to a State under paragraph (1), the State meets the 
        requirements of subsection (a)(3), the Secretary shall, 
        on the first day on which the State meets the 
        requirements of subsection (a)(3), apportion to the 
        State the funds withheld under subsection (a) that 
        remain available for apportionment to the State.
            (3) Period of availability of subsequently 
        apportioned funds.--Any funds apportioned pursuant to 
        paragraph (2) shall remain available for expenditure as 
        follows:
                    (A) Funds which would have been originally 
                apportioned under section 104(b)(5)(A) shall 
                remain available until the end of the fiscal 
                year succeeding the fiscal year in which such 
                funds are apportioned under paragraph (2).
                    (B) Funds which would have been originally 
                apportioned under paragraph (1), (3), or 
                [(5)(B)] (5)(B) (as in effect on the day before 
                the enactment of the Intermodal Surface 
                Transportation Efficiency Act of 1997) of 
                section 104(b) shall remain available until the 
                end of the third fiscal year succeeding the 
                fiscal year in which such funds are so 
                apportioned.
        Sums not obligated at the end of such period shall 
        lapse or, in the case of funds apportioned under 
        section [104(b)(5)] 104(b)(5) (as in effect on the day 
        before the enactment of the Intermodal Surface 
        Transportation Efficiency Act of 1997), shall lapse and 
        be made available by the Secretary for projects in 
        accordance with section 118(b).
            (4) Effect of noncompliance.--If, at the end of the 
        period for which funds withheld under subsection (a) 
        from apportionment are available for apportionment to a 
        State under paragraph (1), the State does not meet the 
        requirements of subsection (a)(3), such funds shall 
        lapse or, in the case of funds withheld from 
        apportionment under section [104(b)(5)] 104(b)(5) (as 
        in effect on the day before the enactment of the 
        Intermodal Surface Transportation Efficiency Act of 
        1997), such funds shall lapse and be made available by 
        the Secretary for projects in accordance with section 
        118(b).
    (c) Definitions.--For purposes of this section--
            (1) Driver's license.--The term ``driver's 
        license'' means a license issued by a State to any 
        individual that authorizes the individual to operate a 
        motor vehicle on highways.
            (2) Drug offense.--The term ``drug offense'' means 
        any criminal offense which proscribes--
                    (A) the possession, distribution, 
                manufacture, cultivation, sale, transfer, or 
                the attempt or conspiracy to possess, 
                distribute, manufacture, cultivate, sell, or 
                transfer any substance the possession of which 
                is prohibited under the Controlled Substances 
                Act; or
                    (B) the operation of a motor vehicle under 
                the influence of such a substance.
            (3) Convicted.--The term ``convicted'' includes 
        adjudicated under juvenile proceedings.

Sec. 160. Reimbursement for segments of the Interstate System 
                    constructed without Federal assistance

    (a) General Authority.--The Secretary shall allocate to the 
States in each of fiscal years 1996 and 1997 amounts determined 
under subsection (b) for reimbursement of their original 
contributions to construction of segments of the Interstate 
System which were constructed without Federal financial 
assistance.
    (b) Determination of Reimbursement Amount.--The amount to 
be reimbursed to a State in each of fiscal years 1996 and 1997 
under this section shall be determined by multiplying the 
amount made available for carrying out this section for such 
fiscal year by the reimbursement percentage set forth in the 
table contained in subsection (c).
    (c) Reimbursement Table.--For purposes of carrying out this 
section, the reimbursement percentage, the original cost for 
constructing the Interstate System, and the total reimbursable 
amount for each State is set forth in the following table:
      

----------------------------------------------------------------------------------------------------------------
                                                                                                   Reimbursable 
                           States                              Original cost     Reimbursement      amount in   
                                                                in millions       percentage         millions   
----------------------------------------------------------------------------------------------------------------
Alabama.....................................................               $9              0.50             $147
Alaska......................................................                               0.50              147
Arizona.....................................................               20              0.50              147
Arkansas....................................................                6              0.50              147
California..................................................              298              5.42            1,591
Colorado....................................................               23              0.50              147
Connecticut.................................................              314              5.71            1,676
Delaware....................................................               39              0.71              209
Florida.....................................................               31              0.56              164
Georgia.....................................................               46              0.84              246
Hawaii......................................................                               0.50              147
                                                                                                                
Idaho.......................................................                5              0.50              147
Illinois....................................................              475              8.62            2,533
Indiana.....................................................              167              3.03              892
Iowa........................................................                5              0.50              147
Kansas......................................................              101              1.84              540
Kentucky....................................................               32              0.57              169
Louisiana...................................................               22              0.50              147
Maine.......................................................               38              0.69              204
Maryland....................................................              154              2.79              820
Massachusetts...............................................              283              5.14            1,511
                                                                                                                
Michigan....................................................              228              4.14            1,218
Minnesota...................................................               16              0.50              147
Mississippi.................................................                6              0.50              147
Missouri....................................................               74              1.35              396
Montana.....................................................                5              0.50              147
Nebraska....................................................                1              0.50              147
Nevada......................................................                2              0.50              147
New Hampshire...............................................                8              0.50              147
New Jersey..................................................              353              6.41            1,882
New Mexico..................................................                8              0.50              147
                                                                                                                
New York....................................................              929             16.88            4,960
North Carolina..............................................               36              0.65              191
North Dakota................................................                3              0.50              147
Ohio........................................................              257              4.68            1,374
Oklahoma....................................................               91              1.66              486
Oregon......................................................               78              1.42              417
Pennsylvania................................................              354              6.43            1,888
Rhode Island................................................               12              0.50              147
South Carolina..............................................                4              0.50              147
South Dakota................................................                5              0.50              147
                                                                                                                
Tennessee...................................................                7              0.50              147
Texas.......................................................              200              3.64            1,069
Utah........................................................                6              0.50              147
Vermont.....................................................                1              0.50              147
Virginia....................................................              111              2.01              591
Washington..................................................               73              1.32              389
West Virginia...............................................                5              0.50              147
Wisconsin...................................................                8              0.50              147
Wyoming.....................................................                9              0.50              147
D.C.........................................................                9              0.50              147
                                                             ---------------------------------------------------
      TOTALS................................................           $4,967            100.00          $29,384
----------------------------------------------------------------------------------------------------------------


    (d) Transfer of Reimbursable Amounts to STP 
Apportionment.--Subject to subsection (e) of this section, the 
Secretary shall transfer amounts allocated to a State pursuant 
to this section to the apportionment of such State under 
section 104(b)(3) for the surface transportation program.
    (e) Limitation on Applicability of Certain Requirements of 
STP Program.--The following provisions of section 133 of this 
title shall not apply to \1/2\ of the amounts transferred under 
subsection (d) to the apportionment of the State for the 
surface transportation program:
            (1) Subsection (d)(1).
            (2) Subsection (d)(2).
            (3) Subsection (d)(3).
    (f) Authorization of Appropriations.--There is authorized 
to be appropriated, out of the Highway Trust Fund (other than 
the Mass Transit Account), $2,000,000,000 per fiscal year for 
each of fiscal years 1996 and 1997 to carryout this section.

Sec. 161. Operation of motor vehicles by intoxicated minors

    (a) Withholding of Apportionments for Noncompliance.--
            (1) Fiscal year 1999.--The Secretary shall withhold 
        5 percent of the amount required to be apportioned to 
        any State under each of [paragraphs (1), (3), and 
        (5)(B)] paragraphs (1), (3), and (5)(B) of section 
        104(b) of section 104(b) on October 1, 1998, if the 
        State does not meet the requirement of paragraph (3) on 
        that date.
            (2) Thereafter.--The Secretary shall withhold 10 
        percent (including any amounts withheld under paragraph 
        (1)) of the amount required to be apportioned to any 
        State under each of paragraphs (1), (3), and (5)(B) of 
        section 104(b) on October 1, 1999, and on October 1 of 
        each fiscal year thereafter, if the State does not meet 
        the requirement of paragraph (3) on that date.
            (3) Requirement.--A State meets the requirement of 
        this paragraph if the State has enacted and is 
        enforcing a law that considers an individual under the 
        age of 21 who has a blood alcohol concentration of 0.02 
        percent or greater while operating a motor vehicle in 
        the State to be driving while intoxicated or driving 
        under the influence of alcohol.
    (b) Period of Availability; Effect of Compliance and 
Noncompliance.--
            (1) Period of availability of withheld funds.--
                    (A) Funds withheld on or before september 
                30, 2000.--Any funds withheld under subsection 
                (a) from apportionment to any State on or 
                before September 30, 2000, shall remain 
                available until the end of the third fiscal 
                year following the fiscal year for which the 
                funds are authorized to be appropriated.
                    (B) Funds withheld after september 30, 
                2000.--No funds withheld under this section 
                from apportionment to any State after September 
                30, 2000, shall be available for apportionment 
                to the State.
            (2) Apportionment of withheld funds after 
        compliance.--If, before the last day of the period for 
        which funds withheld under subsection (a) from 
        apportionment are to remain available for apportionment 
        to a State under paragraph (1), the State meets the 
        requirement of subsection (a)(3), the Secretary shall, 
        on the first day on which the State meets the 
        requirement, apportion to the State the funds withheld 
        under subsection (a) that remain available for 
        apportionment to the State.
            (3) Period of availability of subsequently 
        apportioned funds.--Any funds apportioned pursuant to 
        paragraph (2) shall remain available for expenditure 
        until the end of the third fiscal year following the 
        fiscal year in which the funds are so apportioned. Sums 
        not obligated at the end of that period shall lapse.
            (4) Effect of noncompliance.--If, at the end of the 
        period for which funds withheld under subsection (a) 
        from apportionment are available for apportionment to a 
        State under paragraph (1), the State does not meet the 
        requirement of subsection (a)(3), the funds shall 
        lapse.

Sec. 162. State infrastructure bank program

    (a) Definitions.--In this section:
            (1) Other assistance.--The term ``other 
        assistance'' includes any use of funds in an 
        infrastructure bank--
                    (A) to provide credit enhancements;
                    (B) to serve as a capital reserve for bond 
                or debt instrument financing;
                    (C) to subsidize interest rates;
                    (D) to ensure the issuance of letters of 
                credit and credit instruments;
                    (E) to finance purchase and lease 
                agreements with respect to transit projects;
                    (F) to provide bond or debt financing 
                instrument security; and
                    (G) to provide other forms of debt 
                financing and methods of leveraging funds that 
                are approved by the Secretary and that relate 
                to the project with respect to which the 
                assistance is being provided.
            (2) State.--The term ``State'' has the meaning 
        given the term under section 401.
    (b) Cooperative Agreements.--
            (1) In general.--
                    (A) Purpose of agreements.--Subject to this 
                section, the Secretary may enter into 
                cooperative agreements with States for the 
                establishment of State infrastructure banks and 
                multistate infrastructure banks for making 
                loans and providing other assistance to public 
                and private entities carrying out or proposing 
                to carry out projects eligible for assistance 
                under this section.
                    (B) Contents of agreements.--Each 
                cooperative agreement shall specify procedures 
                and guidelines for establishing, operating, and 
                providing assistance from the infrastructure 
                bank.
            (2) Interstate compacts.--If 2 or more States enter 
        into a cooperative agreement under paragraph (1) with 
        the Secretary for the establishment of a multistate 
        infrastructure bank, Congress grants consent to those 
        States to enter into an interstate compact establishing 
        the bank in accordance with this section.
    (c) Funding.--
            (1) Contribution.--Notwithstanding any other 
        provision of law, the Secretary may allow, subject to 
        subsection (h)(1), a State that enters into a 
        cooperative agreement under this section to contribute 
        to the infrastructure bank established by the State not 
        to exceed--
                    (A)(i) the total amount of funds 
                apportioned to the State under each of 
                paragraphs (1) and (3) of section 104(b), 
                excluding funds set aside under paragraphs (1) 
                and (2) of section 133(d); and
                    (ii) the total amount of funds allocated to 
                the State under section 105 and under section 
                1102 of the Intermodal Surface Transportation 
                Efficiency Act of 1997;
                    (B) the total amount of funds made 
                available to the State or other Federal transit 
                grant recipient for capital projects (as 
                defined in section 5302 of title 49) under 
                sections 5307, 5309, and 5311 of title 49; and
                    (C) the total amount of funds made 
                available to the State under subtitle V of 
                title 49.
            (2) Capitalization grant.--For the purposes of this 
        section, Federal funds contributed to the 
        infrastructure bank under this subsection shall 
        constitute a capitalization grant for the 
        infrastructure bank.
            (3) Special rule for urbanized areas of over 
        200,000.--Funds that are apportioned or allocated to a 
        State under section 104(b)(3) and attributed to 
        urbanized areas of a State with a population of over 
        200,000 individuals under section 133(d)(2) may be used 
        to provide assistance from an infrastructure bank under 
        this section with respect to a project only if the 
        metropolitan planning organization designated for the 
        area concurs, in writing, with the provision of the 
        assistance.
    (d) Forms of Assistance From Infrastructure Banks.--
            (1) In general.--An infrastructure bank established 
        under this section may make loans or provide other 
        assistance to a public or private entity in an amount 
        equal to all or part of the cost of carrying out a 
        project eligible for assistance under this section.
            (2) Subordination of loans.--The amount of any loan 
        or other assistance provided for the project may be 
        subordinated to any other debt financing for the 
        project.
            (3) Initial assistance.--Initial assistance 
        provided with respect to a project from Federal funds 
        contributed to an infrastructure bank under this 
        section shall not be made in the form of a grant.
    (e) Qualifying Projects.--
            (1) In general.--Subject to paragraph (2), funds in 
        an infrastructure bank established under this section 
        may be used only to provide assistance with respect to 
        projects eligible for assistance under this title for 
        capital projects (as defined in section 5302 of title 
        49), or for any other project that the Secretary 
        determines to be appropriate.
            (2) Interstate funds.--Funds contributed to an 
        infrastructure bank from funds apportioned to a State 
        under subparagraph (A) or (B) of section 104(b)(1) may 
        be used only to provide assistance with respect to 
        projects eligible for assistance under those 
        subparagraphs.
            (3) Rail program funds.--Funds contributed to an 
        infrastructure bank from funds made available to a 
        State under subtitle V of title 49 shall be used in a 
        manner consistent with any project description 
        specified under the law making the funds available to 
        the State.
    (f) Infrastructure Bank Requirements.--