H.R.2400
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
eight
An Act
To authorize funds for Federal-aid highways, highway safety programs,
and transit programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Transportation
Equity Act for the 21st Century''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec.1.Short title; table of contents.
Sec.2.Definitions.
TITLE I--FEDERAL-AID HIGHWAYS
Subtitle A--Authorizations and Programs
Sec.1101.Authorization of appropriations.
Sec.1102.Obligation ceiling.
Sec.1103.Apportionments.
Sec.1104.Minimum guarantee.
Sec.1105.Revenue aligned budget authority.
Sec.1106.Federal-aid systems.
Sec.1107.Interstate maintenance program.
Sec.1108.Surface transportation program.
Sec.1109.Highway bridge program.
Sec.1110.Congestion mitigation and air quality improvement program.
Sec.1111.Federal share.
Sec.1112.Recreational trails program.
Sec.1113.Emergency relief.
Sec.1114.Highway use tax evasion projects.
Sec.1115.Federal lands highways program.
Sec.1116.Woodrow Wilson Memorial Bridge.
Sec.1117.Appalachian development highway system.
Sec.1118.National corridor planning and development program.
Sec.1119.Coordinated border infrastructure and safety program.
Subtitle B--General Provisions
Sec.1201.Definitions.
Sec.1202.Bicycle transportation and pedestrian walkways.
Sec.1203.Metropolitan planning.
Sec.1204.Statewide planning.
Sec.1205.Contracting for engineering and design services.
Sec.1206.Access of motorcycles.
Sec.1207.Construction of ferry boats and ferry terminal facilities.
Sec.1208.Training.
Sec.1209.Use of HOV lanes by inherently low-emission vehicles.
Sec.1210.Advanced travel forecasting procedures program.
Sec.1211.Amendments to prior surface transportation laws.
Sec.1212.Miscellaneous.
Sec.1213.Studies and reports.
Sec.1214.Federal activities.
Sec.1215.Designated transportation enhancement activities.
Sec.1216.Innovative surface transportation financing methods.
Sec.1217.Eligibility.
Sec.1218.Magnetic levitation transportation technology deployment
program.
Sec.1219.National scenic byways program.
Sec.1220.Elimination of regional office responsibilities.
Sec.1221.Transportation and community and system preservation pilot
program.
Sec.1222.Additions to Appalachian region.
Subtitle C--Program Streamlining and Flexibility
Sec.1301.Real property acquisition and corridor preservation.
Sec.1302.Payments to States for construction.
Sec.1303.Proceeds from the sale or lease of real property.
Sec.1304.Engineering cost reimbursement.
Sec.1305.Project approval and oversight.
Sec.1306.Standards.
Sec.1307.Design-build contracting.
Sec.1309.Major investment study integration.
Sec.1309.Environmental streamlining.
Sec.1310.Uniform transferability of Federal-aid highway funds.
Subtitle D--Safety
Sec.1401.Hazard elimination program.
Sec.1402.Roadside safety technologies.
Sec.1403.Safety incentive grants for use of seat belts.
Subtitle E--Finance
Sec.1501.Short title.
Sec.1502.Findings.
Sec.1503.Establishment of program.
Sec.1504.Duties of the Secretary.
Subtitle F--High Priority Projects
Sec.1601.High priority projects program.
Sec.1602.Project authorizations.
Sec.1603.Special rule.
TITLE II--HIGHWAY SAFETY
Sec.2001.Highway safety programs.
Sec.2002.Highway safety research and development.
Sec.2003.Occupant protection.
Sec.2004.Alcohol-impaired driving countermeasures.
Sec.2005.State highway safety data improvements.
Sec.2006.National Driver Register.
Sec.2007.Safety studies.
Sec.2008.Effectiveness of laws establishing maximum blood alcohol
concentrations.
Sec.2009.Authorizations of appropriations.
TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS
Sec.3001.Short title.
Sec.3002.Amendments to title 49, United States Code.
Sec.3003.Definitions.
Sec.3004.Metropolitan planning.
Sec.3005.Transportation improvement program.
Sec.3006.Transportation management areas.
Sec.3007.Urbanized area formula grants.
Sec.3008.Clean fuels formula grant program.
Sec.3009.Capital investment grants and loans.
Sec.3010.Dollar value of mobility improvements.
Sec.3011.Local share.
Sec.3012.Intelligent transportation systems applications.
Sec.3013.Formula grants and loans for special needs of elderly
individuals and individuals with disabilities.
Sec.3014.Formula program for other than urbanized areas.
Sec.3015.Research, development, demonstration, and training projects.
Sec.3016.National planning and research programs.
Sec.3017.National Transit Institute.
Sec.3018.Bus testing facilities.
Sec.3019.Bicycle facilities.
Sec.3020.General provisions on assistance.
Sec.3021.Pilot program for intercity rail infrastructure investment from
mass transit account of highway trust fund.
Sec.3022.Contract requirements.
Sec.3023.Special procurements.
Sec.3024.Project management oversight and review.
Sec.3025.Administrative procedures.
Sec.3026.Reports and audits.
Sec.3027.Apportionment of appropriations for formula grants.
Sec.3028.Apportionment of appropriations for fixed guideway
modernization.
Sec.3029.Authorizations.
Sec.3030.Projects for new fixed guideway systems and extensions to
existing systems.
Sec.3031.Projects for bus and bus-related facilities.
Sec.3032.Contracting out study.
Sec.3033.Urbanized area formula study.
Sec.3034.Coordinated transportation services.
Sec.3035.Final assembly of buses.
Sec.3036.Clean fuel vehicles.
Sec.3037.Job access and reverse commute grants.
Sec.3038.Rural transportation accessibility incentive program.
Sec.3039.Study of transit needs in national parks and related public
lands.
Sec.3040.Obligation ceiling.
Sec.3041.Adjustments for the Surface Transportation Extension Act of
1997.
TITLE IV--MOTOR CARRIER SAFETY
Sec.4001.Amendments to title 49, United States Code.
Sec.4002.Statement of purposes.
Sec.4003.State grants.
Sec.4004.Information systems.
Sec.4005.Automobile transporter defined.
Sec.4006.Inspections and reports.
Sec.4007.Waivers, exemptions, and pilot programs.
Sec.4008.Safety regulation.
Sec.4009.Safety fitness.
Sec.4010.Repeal of certain obsolete miscellaneous authorities.
Sec.4011.Commercial vehicle operators.
Sec.4012.Exemption from certain regulations for utility service
commercial motor vehicle drivers.
Sec.4013.Participation in international registration plan and
international fuel tax agreement.
Sec.4014.Safety performance history of new drivers; limitation on
liability.
Sec.4015.Penalties.
Sec.4016.Authority over charter bus transportation.
Sec.4017.Telephone hotline for reporting safety violations.
Sec.4018.Insulin treated diabetes mellitus.
Sec.4019.Performance-based CDL testing.
Sec.4020.Post-accident alcohol testing.
Sec.4021.Driver fatigue.
Sec.4022.Improved flow of driver history pilot program.
Sec.4023.Employee protections.
Sec.4024.Improved interstate school bus safety.
Sec.4025.Truck trailer conspicuity.
Sec.4026.DOT implementation plan.
Sec.4027.Study of adequacy of parking facilities.
Sec.4028.Qualifications of foreign motor carriers.
Sec.4029.Federal motor carrier safety inspectors.
Sec.4030.School transportation safety.
Sec.4031.Designation of New Mexico commercial zone.
Sec.4032.Effects of MCSAP grant reductions.
TITLE V--TRANSPORTATION RESEARCH
Subtitle A--Funding
Sec.5001.Authorization of appropriations.
Sec.5002.Obligation ceiling.
Sec.5003.Notice.
Subtitle B--Research and Technology
Sec.5101.Research and technology program.
Sec.5102.Surface transportation research.
Sec.5103.Technology deployment.
Sec.5104.Training and education.
Sec.5105.State planning and research.
Sec.5106.International highway transportation outreach program.
Sec.5107.Surface transportation-environment cooperative research
program.
Sec.5108.Surface transportation research strategic planning.
Sec.5109.Bureau of Transportation Statistics.
Sec.5110.University transportation research.
Sec.5111.Advanced vehicle technologies program.
Sec.5112.Study of future strategic highway research program.
Sec.5113.Commercial remote sensing products and spatial information
technologies.
Sec.5114.Sense of the Congress on the year 2000 problem.
Sec.5115.International trade traffic.
Sec.5116.University grants.
Sec.5117.Transportation technology innovation and demonstration program.
Sec.5118.Drexel University Intelligent Infrastructure Institute.
Sec.5119.Conforming amendments.
Subtitle C--Intelligent Transportation Systems
Sec.5201.Short title.
Sec.5202.Findings.
Sec.5203.Goals and purposes.
Sec.5204.General authorities and requirements.
Sec.5205.National ITS program plan.
Sec.5206.National architecture and standards.
Sec.5207.Research and development.
Sec.5208.Intelligent transportation system integration program.
Sec.5209.Commercial vehicle intelligent transportation system
infrastructure deployment.
Sec.5210.Use of funds.
Sec.5211.Definitions.
Sec.5212.Project funding.
Sec.5213.Repeal.
TITLE VI--OZONE AND PARTICULATE MATTER STANDARDS
Sec.6101.Findings and purpose.
Sec.6102.Particulate matter monitoring program.
Sec.6103.Ozone designation requirements.
Sec.6104.Additional provisions.
TITLE VII--MISCELLANEOUS
Subtitle A--Automobile Safety and Information
Sec.7101.Short title.
Sec.7102.Authorization of appropriations.
Sec.7103.Improving air bag safety.
Sec.7104.Restrictions on lobbying activities.
Sec.7105.Odometers.
Sec.7106.Miscellaneous amendments.
Sec.7107.Importation of motor vehicle for show or display.
Subtitle B--Railroads
Sec.7201.High-speed rail.
Sec.7202.Light density rail line pilot projects.
Sec.7203.Railroad rehabilitation and improvement financing.
Sec.7204.Alaska Railroad.
Subtitle C--Comprehensive One-Call Notification
Sec.7301.Findings.
Sec.7302.One-call notification programs.
Subtitle D--Sportfishing and Boating Safety
Sec.7401.Short title; amendment of 1950 Act.
Sec.7402.Outreach and communications programs.
Sec.7403.Clean Vessel Act funding.
Sec.7404.Boating infrastructure.
Sec.7405.Boat safety funds.
TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
OFFSETS
Subtitle A--Transportation Discretionary Spending Guarantee
Sec.8101.Discretionary spending categories.
Sec.8102.Conforming the Paygo Scorecard with this Act.
Sec.8103.Level of obligation limitations.
Subtitle B--Veterans' Benefits
Sec.8201.Short title.
Sec.8202.Prohibition on establishment of service-connection for
disabilities relating to use of tobacco products.
Sec.8203.Twenty percent increase in rates of basic educational
assistance under Montgomery GI Bill.
Sec.8204.Increase in assistance amount for specially adapted housing.
Sec.8205.Increase in amount of assistance for automobile and adaptive
equipment for certain disabled veterans.
Sec.8206.Increase in aid and attendance rates for veterans eligible for
pension.
Sec.8207.Eligibility of certain remarried surviving spouses for
reinstatement of dependency and indemnity compensation upon
termination of that remarriage.
Sec.8208.Extension of prior revision to offset rule for Department of
Defense special separation benefit program.
Sec.8209.Sense of the Congress concerning recovery from tobacco
companies of costs of treatment of veterans for tobacco-
related illnesses.
Subtitle C--Temporary Student Loan Provision.
Sec.8301.Temporary student loan provision.
Subtitle D--Block Grants for Social Services
Sec.8401.Block grants for social services.
TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986
Sec.9001.Short title; amendment of 1986 Code.
Sec.9002.Extension of highway-related taxes and trust fund.
Sec.9003.Extension and modification of tax benefits for alcohol fuels.
Sec.9004.Modifications to Highway Trust Fund.
Sec.9005.Provisions relating to Aquatic Resources Trust Fund.
Sec.9006.Repeal of 1.25 cent tax rate on rail diesel fuel.
Sec.9007.Additional qualified expenses available to non-Amtrak States.
Sec.9008.Delay in effective date of new requirement for approved diesel
or kerosene terminals.
Sec.9009.Simplified fuel tax refund procedures.
Sec.9010.Election to receive taxable cash compensation in lieu of
nontaxable qualified transportation fringe benefits.
Sec.9011.Repeal of National Recreational Trails Trust Fund.
Sec.9012.Identification of limited tax benefits subject to line item
veto.
SEC. 2. DEFINITIONS.
In this Act, the following definitions apply:
(1) Interstate system.--The term ``Interstate System'' has the
meaning such term has under section 101 of title 23, United States
Code.
(2) Secretary.--The term ``Secretary'' means the Secretary of
Transportation.
TITLE I--FEDERAL-AID HIGHWAYS
Subtitle A--Authorizations and Programs
SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass Transit
Account):
(1) Interstate maintenance program.--For the Interstate
maintenance program under section 119 of title 23, United States
Code, $3,427,341,000 for fiscal year 1998, $3,957,103,000 for
fiscal year 1999, $3,994,524,000 for fiscal year 2000,
$4,073,322,000 for fiscal year 2001, $4,139,630,000 for fiscal year
2002, and $4,217,635,000 for fiscal year 2003.
(2) National highway system.--For the National Highway System
under section 103 of such title $4,112,480,000 for fiscal year
1998, $4,748,523,000 for fiscal year 1999, $4,793,429,000 for
fiscal year 2000, $4,887,986,000 for fiscal year 2001,
$4,967,556,000 for fiscal year 2002, and $5,061,162,000 for fiscal
year 2003.
(3) Bridge program.--For the bridge program under section 144
of such title $2,941,454,000 for fiscal year 1998, $3,395,354,000
for fiscal year 1999, $3,427,472,000 for fiscal year 2000,
$3,495,104,000 for fiscal year 2001, $3,552,016,000 for fiscal year
2002, and $3,618,966,000 for fiscal year 2003.
(4) Surface transportation program.--For the surface
transportation program under section 133 of such title
$4,797,620,000 for fiscal year 1998, $5,539,944,000 for fiscal year
1999, $5,592,333,000 for fiscal year 2000, $5,702,651,000 for
fiscal year 2001, $5,795,482,000 for fiscal year 2002, and
$5,904,689,000 for fiscal year 2003.
(5) Congestion mitigation and air quality improvement
program.--For the congestion mitigation and air quality improvement
program under section 149 of such title $1,192,619,000 for fiscal
year 1998, $1,345,415,000 for fiscal year 1999, $1,358,138,000 for
fiscal year 2000, $1,384,930,000 for fiscal year 2001,
$1,407,474,000 for fiscal year 2002, and $1,433,996,000 for fiscal
year 2003.
(6) Appalachian development highway system program.--For the
Appalachian development highway system program under section 201 of
the Appalachian Regional Development Act of 1965 (40 U.S.C. App.)
$450,000,000 for each of fiscal years 1999 through 2003.
(7) Recreational trails program.--For the recreational trails
program under section 206 of such title $30,000,000 for fiscal year
1998, $40,000,000 for fiscal year 1999, and $50,000,000 for each of
fiscal years 2000 through 2003.
(8) Federal lands highways program.--
(A) Indian reservation roads.--For Indian reservation roads
under section 204 of such title $225,000,000 for fiscal year
1998 and $275,000,000 for each of fiscal years 1999 through
2003.
(B) Public lands highways.--For public lands highways under
section 204 of such title $196,000,000 for fiscal year 1998 and
$246,000,000 for each of fiscal years 1999 through 2003.
(C) Park roads and parkways.--For park roads and parkways
under section 204 of such title $115,000,000 for fiscal year
1998 and $165,000,000 for each of fiscal years 1999 through
2003.
(D) Refuge roads.--For refuge roads under section 204 of
such title $20,000,000 for each of fiscal years 1999 through
2003.
(9) National corridor planning and development and coordinated
border infrastructure programs.--For the national corridor planning
and development and coordinated border infrastructure programs
under sections 1118 and 1119 of this Act $140,000,000 for each of
fiscal years 1999 through 2003.
(10) Construction of ferry boats and ferry terminal
facilities.--For construction of ferry boats and ferry terminal
facilities under section 1064 of the Intermodal Surface
Transportation Efficiency Act of 1991 (23 U.S.C. 129 note; 105
Stat. 2005) $30,000,000 for each of fiscal year 1998 and
$38,000,000 for each of fiscal years 1999 through 2003.
(11) National scenic byways program.--For the national scenic
byways program under section 162 of title 23, United States Code,
$23,500,000 for each of fiscal years 1998 and 1999, $24,500,000 for
each of fiscal years 2000 and 2001, and $25,500,000 for fiscal year
2002, and $26,500,000 for fiscal year 2003.
(12) Value pricing pilot program.--For the value pricing pilot
program under section 1012(b) of the Intermodal Surface
Transportation Efficiency Act of 1991 (23 U.S.C. 149 note; 105
Stat. 1938) $7,000,000 for fiscal year 1999, and $11,000,000 for
each of fiscal years 2000 through 2003.
(13) High priority projects program.--For the high priority
projects program under section 117 of title 23, United States Code,
$1,025,695,000 for fiscal year 1998, $1,398,675,000 for fiscal year
1999, $1,678,410,000 for fiscal year 2000, $1,678,410,000 for
fiscal year 2001, $1,771,655,000 for fiscal year 2002, and
$1,771,655,000 for fiscal year 2003.
(14) Highway use tax evasion projects.--For highway use tax
evasion projects under section 143 of such title $5,000,000 for
each of fiscal years 1998 through 2003.
(15) Commonwealth of puerto rico highway program.--For the
Commonwealth of Puerto Rico highway program under section 1214(r)
of this Act $110,000,000 for fiscal years 1998 through 2003.
(b) Disadvantaged Business Enterprises.--
(1) General rule.--Except to the extent that the Secretary
determines otherwise, not less than 10 percent of the amounts made
available for any program under titles I, III, and V of this Act
shall be expended with small business concerns owned and controlled
by socially and economically disadvantaged individuals.
(2) Definitions.--In this subsection, the following definitions
apply:
(A) Small business concern.--The term ``small business
concern'' has the meaning such term has under section 3 of the
Small Business Act (15 U.S.C. 632); except that such term shall
not include any concern or group of concerns controlled by the
same socially and economically disadvantaged individual or
individuals which has average annual gross receipts over the
preceding 3 fiscal years in excess of $16,600,000, as adjusted
by the Secretary for inflation.
(B) Socially and economically disadvantaged individuals.--
The term ``socially and economically disadvantaged
individuals'' has the meaning such term has under section 8(d)
of the Small Business Act (15 U.S.C. 637(d)) and relevant
subcontracting regulations promulgated pursuant thereto; except
that women shall be presumed to be socially and economically
disadvantaged individuals for purposes of this subsection.
(3) Annual listing of disadvantaged business enterprises.--Each
State shall annually survey and compile a list of the small
business concerns referred to in paragraph (1) and the location of
such concerns in the State and notify the Secretary, in writing, of
the percentage of such concerns which are controlled by women, by
socially and economically disadvantaged individuals (other than
women), and by individuals who are women and are otherwise socially
and economically disadvantaged individuals.
(4) Uniform certification.--The Secretary shall establish
minimum uniform criteria for State governments to use in certifying
whether a concern qualifies for purposes of this subsection. Such
minimum uniform criteria shall include, but not be limited to on-
site visits, personal interviews, licenses, analysis of stock
ownership, listing of equipment, analysis of bonding capacity,
listing of work completed, resume of principal owners, financial
capacity, and type of work preferred.
(5) Compliance with court orders.--Nothing in this subsection
limits the eligibility of an entity or person to receive funds made
available under titles I, III, and V of this Act, if the entity or
person is prevented, in whole or in part, from complying with
paragraph (1) because a Federal court issues a final order in which
the court finds that the requirement of paragraph (1), or the
program established under paragraph (1), is unconstitutional.
(6) Review by comptroller general.--Not later than 3 years
after the date of enactment of this Act, the Comptroller General of
the United States shall conduct a review of, and publish and report
to Congress findings and conclusions on, the impact throughout the
United States of administering the requirement of paragraph (1),
including an analysis of--
(A) in the case of small business concerns certified in
each State under paragraph (4) as owned and controlled by
socially and economically disadvantaged individuals--
(i) the number of the small business concerns; and
(ii) the participation rates of the small business
concerns in prime contracts and subcontracts funded under
titles I, III, and V of this Act;
(B) in the case of small business concerns described in
subparagraph (A) that receive prime contracts and subcontracts
funded under titles I, III, and V of this Act--
(i) the number of the small business concerns;
(ii) the annual gross receipts of the small business
concerns; and
(iii) the net worth of socially and economically
disadvantaged individuals that own and control the small
business concerns;
(C) in the case of small business concerns described in
subparagraph (A) that do not receive prime contracts and
subcontracts funded under titles I, III, and V of this Act--
(i) the annual gross receipts of the small business
concerns; and
(ii) the net worth of socially and economically
disadvantaged individuals that own and control the small
business concerns;
(D) in the case of business concerns that receive prime
contracts and subcontracts funded under titles I, III, and V of
this Act, other than small business concerns described in
subparagraph (B)--
(i) the annual gross receipts of the business concerns;
and
(ii) the net worth of individuals that own and control
the business concerns;
(E) the rate of graduation from any programs carried out to
comply with the requirement of paragraph (1) for small business
concerns owned and controlled by socially and economically
disadvantaged individuals;
(F) the overall cost of administering the requirement of
paragraph (1), including administrative costs, certification
costs, additional construction costs, and litigation costs;
(G) any discrimination on the basis of race, color,
national origin, or sex against small business concerns owned
and controlled by socially and economically disadvantaged
individuals;
(H)(i) any other factors limiting the ability of small
business concerns owned and controlled by socially and
economically disadvantaged individuals to compete for prime
contracts and subcontracts funded under titles I, III, and V of
this Act; and
(ii) the extent to which any of those factors are caused,
in whole or in part, by discrimination based on race, color,
national origin, or sex;
(I) any discrimination, on the basis of race, color,
national origin, or sex, against construction companies owned
and controlled by socially and economically disadvantaged
individuals in public and private transportation contracting
and the financial, credit, insurance, and bond markets;
(J) the impact on small business concerns owned and
controlled by socially and economically disadvantaged
individuals of--
(i) the issuance of a final order described in
paragraph (5) by a Federal court that suspends a program
established under paragraph (1); or
(ii) the repeal or suspension of State or local
disadvantaged business enterprise programs; and
(K) the impact of the requirement of paragraph (1), and any
program carried out to comply with paragraph (1), on
competition and the creation of jobs, including the creation of
jobs for socially and economically disadvantaged individuals.
SEC. 1102. OBLIGATION CEILING.
(a) General Limitation.--Notwithstanding any other provision of law
but subject to subsections (g) and (h), the obligations for Federal-aid
highway and highway safety construction programs shall not exceed--
(1) $21,500,000,000 for fiscal year 1998;
(2) $25,431,000,000 for fiscal year 1999;
(3) $26,155,000,000 for fiscal year 2000;
(4) $26,651,000,000 for fiscal year 2001;
(5) $27,235,000,000 for fiscal year 2002; and
(6) $27,681,000,000 for fiscal year 2003.
(b) Exceptions.--The limitations under subsection (a) shall not
apply to obligations--
(1) under section 125 of title 23, United States Code;
(2) under section 147 of the Surface Transportation Assistance
Act of 1978;
(3) under section 9 of the Federal-Aid Highway Act of 1981;
(4) under sections 131(b) and 131(j) of the Surface
Transportation Assistance Act of 1982;
(5) under sections 149(b) and 149(c) of the Surface
Transportation and Uniform Relocation Assistance Act of 1987;
(6) under sections 1103 through 1108 of the Intermodal Surface
Transportation Efficiency Act of 1991;
(7) under section 157 of title 23, United States Code, as in
effect on the day before the date of enactment of this Act; and
(8) under section 105 of title 23, United States Code (but, for
each of fiscal years 1998 through 2007), only in an amount equal to
$639,000,000 per fiscal year.
(c) Distribution of Obligation Authority.--For each of fiscal years
1998 through 2003, the Secretary shall--
(1) not distribute obligation authority provided by subsection
(a) for such fiscal year for amounts authorized for administrative
expenses and programs funded from the administrative takedown
authorized by section 104(a) of title 23, United States Code, and
amounts authorized for the highway use tax evasion program and the
Bureau of Transportation Statistics;
(2) not distribute an amount of obligation authority provided
by subsection (a) that is equal to the unobligated balance of
amounts made available from the Highway Trust Fund (other than the
Mass Transit Account) for Federal-aid highway and highway safety
programs for previous fiscal years the funds for which are
allocated by the Secretary;
(3) determine the ratio that--
(A) the obligation authority provided by subsection (a) for
such fiscal year less the aggregate of amounts not distributed
under paragraphs (1) and (2), bears to
(B) the total of the sums authorized to be appropriated for
Federal-aid highway and highway safety construction programs
(other than sums authorized to be appropriated for sections set
forth in paragraphs (1) through (7) of subsection (b) and sums
authorized to be appropriated for section 105 of title 23,
United States Code, equal to the amount referred to in
subsection (b)(8)) for such fiscal year less the aggregate of
the amounts not distributed under paragraph (1) of this
subsection;
(4) distribute the obligation authority provided by subsection
(a) less the aggregate amounts not distributed under paragraphs (1)
and (2) for section 117 of title 23, United States Code (relating
to high priority projects program), section 201 of the Appalachian
Regional Development Act of 1965, the Woodrow Wilson Memorial
Bridge Authority Act of 1995, and $2,000,000,000 for such fiscal
year under section 105 of such title (relating to minimum
guarantee) so that amount of obligation authority available for
each of such sections is equal to the amount determined by
multiplying the ratio determined under paragraph (3) by the sums
authorized to be appropriated for such section (except in the case
of section 105, $2,000,000,000) for such fiscal year;
(5) distribute the obligation authority provided by subsection
(a) less the aggregate amounts not distributed under paragraphs (1)
and (2) and amounts distributed under paragraph (4) for each of the
programs that are allocated by the Secretary under this Act and
title 23, United States Code (other than activities to which
paragraph (1) applies and programs to which paragraph (4) applies)
by multiplying the ratio determined under paragraph (3) by the sums
authorized to be appropriated for such program for such fiscal
year; and
(6) distribute the obligation authority provided by subsection
(a) less the aggregate amounts not distributed under paragraphs (1)
and (2) and amounts distributed under paragraphs (4) and (5) for
Federal-aid highway and highway safety construction programs (other
than the minimum guarantee program, but only to the extent that
amounts apportioned for the minimum guarantee program for such
fiscal year exceed $2,639,000,000, and the Appalachian development
highway system program) that are apportioned by the Secretary under
this Act and title 23, United States Code, in the ratio that--
(A) sums authorized to be appropriated for such programs
that are apportioned to each State for such fiscal year, bear
to
(B) the total of the sums authorized to be appropriated for
such programs that are apportioned to all States for such
fiscal year.
(d) Redistribution of Unused Obligation Authority.--Notwithstanding
subsection (c), the Secretary shall after August 1 of each of fiscal
years 1998 through 2003 revise a distribution of the obligation
authority made available under subsection (c) if a State will not
obligate the amount distributed during that fiscal year and
redistribute sufficient amounts to those States able to obligate
amounts in addition to those previously distributed during that fiscal
year giving priority to those States having large unobligated balances
of funds apportioned under sections 104 and 144 of title 23, United
States Code, under section 160 of title 23, United States Code (as in
effect on the day before the date of enactment of this Act), and under
section 1015 of the Intermodal Surface Transportation Act of 1991 (105
Stat. 1943-1945).
(e) Applicability of Obligation Limitations to Transportation
Research Programs.--Obligation limitations imposed by subsection (a)
shall apply to transportation research programs carried out under
chapter 3 of title 23, United States Code, and under title VI of this
Act.
(f) Redistribution of Certain Authorized Funds.--Not later than 30
days after the date of the distribution of obligation authority under
subsection (c) for each of fiscal years 1998 through 2003, the
Secretary shall distribute to the States any funds (1) that are
authorized to be appropriated for such fiscal year for Federal-aid
highway programs (other than the program under section 160 of title 23,
United States Code) and for carrying out subchapter I of chapter 311 of
title 49, United States Code, and chapter 4 of title 23, United States
Code, and (2) that the Secretary determines will not be allocated to
the States, and will not be available for obligation, in such fiscal
year due to the imposition of any obligation limitation for such fiscal
year. Such distribution to the States shall be made in the same ratio
as the distribution of obligation authority under subsection (c)(6).
The funds so distributed shall be available for any purposes described
in section 133(b) of title 23, United States Code.
(g) Special Rule.--Obligation authority distributed for a fiscal
year under subsection (c)(4) for a section set forth in subsection
(c)(4) shall remain available until used for obligation of funds for
such section and shall be in addition to the amount of any limitation
imposed on obligations for Federal-aid highway and highway safety
construction programs for future fiscal years.
(h) Increase in Obligation Limit.--Limitations on obligations
imposed by subsection (a) for a fiscal year shall be increased by an
amount equal to the amount determined pursuant to section
251(b)(1)(B)(ii)(I)(cc) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(b)(2)(B)(ii)(I)(cc)) for such fiscal
year. Any such increase shall be distributed in accordance with this
section.
(i) Limitations on Obligations for Administrative Expenses.--
Notwithstanding any other provision of law, the total amount of all
obligations under section 104(a) of title 23, United States Code, shall
not exceed--
(1) $320,000,000 for fiscal year 1998;
(2) $350,000,000 for fiscal year 1999;
(3) $370,000,000 for fiscal year 2000;
(4) $390,000,000 for fiscal year 2001;
(5) $410,000,000 for fiscal year 2002; and
(6) $430,000,000 for fiscal year 2003.
SEC. 1103. APPORTIONMENTS.
(a) Administrative Expenses.--Section 104 of title 23, United
States Code, is amended by striking subsection (a) and inserting the
following:
``(a) Administrative Expenses.--
``(1) In general.--Whenever an apportionment is made of the
sums made available for expenditure on each of the surface
transportation program under section 133, the bridge program under
section 144, the congestion mitigation and air quality improvement
program under section 149, the Interstate and National Highway
System program under section 103, the minimum guarantee program
under section 105, the Federal lands highway program under section
204, or the Appalachian development highway system program under
section 201 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.), 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--
``(A) to administer the provisions of law to be financed
from appropriations for the Federal-aid highway program and
programs authorized under chapter 2; and
``(B) to make transfers of such sums as the Secretary
determines to be appropriate to the Appalachian Regional
Commission for administrative activities associated with the
Appalachian development highway system.
``(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) Apportionments.--Section 104(b) of such title is amended to
read as follows:
``(b) Apportionments.--On October 1 of each fiscal year, the
Secretary, after making the deduction authorized by subsection (a) and
the set-aside authorized by subsection (f), shall apportion the
remainder of the sums authorized to be appropriated for expenditure on
the Interstate and National Highway System program, the Congestion
Mitigation and Air Quality Improvement program, and the Surface
Transportation program for that fiscal year, among the several States
in the following manner:
``(1) National highway system component.--
``(A) In general.--For the National Highway System
(excluding funds apportioned under paragraph (4)), $36,400,000
for each fiscal year to the Virgin Islands, Guam, American
Samoa, and the Commonwealth of Northern Mariana Islands,
$18,800,000 for each of fiscal years 1999 through 2003 for the
Alaska Highway, and the remainder apportioned as follows:
``(i) 25 percent in the ratio that--
``(I) the total lane miles of principal arterial
routes (excluding Interstate System routes) in each
State; bears to
``(II) the total lane miles of principal arterial
routes (excluding Interstate System routes) in all
States.
``(ii) 35 percent in the ratio that--
``(I) the total vehicle miles traveled on lanes on
principal arterial routes (excluding Interstate System
routes) in each State; bears to
``(II) the total vehicle miles traveled on lanes on
principal arterial routes (excluding Interstate System
routes) in all States.
``(iii) 30 percent in the ratio that--
``(I) the total diesel fuel used on highways in
each State; bears to
``(II) the total diesel fuel used on highways in
all States.
``(iv) 10 percent in the ratio that--
``(I) the quotient obtained by dividing the total
lane miles on principal arterial highways in each State
by the total population of the State; bears to
``(II) the quotient obtained by dividing the total
lane miles on principal arterial highways in all States
by the total population of all States.
``(B) Minimum apportionment.--Notwithstanding subparagraph
(A) and paragraph (4), each State shall receive a minimum of
\1/2\ of 1 percent of the funds apportioned under subparagraph
(A) and paragraph (4).
``(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 such subpart;
``(iv) 1.2 if, at the time of the apportionment, the
area is classified as a serious ozone nonattainment area
under such subpart;
``(v) 1.3 if, at the time of the apportionment, the
area is classified as a severe ozone nonattainment area
under such subpart;
``(vi) 1.4 if, at the time of the apportionment, the
area is classified as an extreme ozone nonattainment area
under such subpart; 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 such 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 such 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 such 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) 25 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) 40 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) 35 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) Minimum apportionment.--Notwithstanding subparagraph
(A), each State shall receive a minimum of \1/2\ of 1 percent
of the funds apportioned under this paragraph.
``(4) Interstate maintenance component.--For resurfacing,
restoring, rehabilitating, and reconstructing the Interstate
System--
``(A) 33\1/3\ percent in the ratio that--
``(i) the total lane miles on Interstate System routes
open to traffic in each State; bears to
``(ii) the total of all such lane miles in all States;
``(B) 33\1/3\ percent in the ratio that--
``(i) the total vehicle miles traveled on lanes on
Interstate System routes designated under--
``(I) section 103;
``(II) section 139(a) (as in effect on the day
before the date of enactment of the Transportation
Equity Act for the 21st Century) 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
``(III) section 139(c) (as in effect on the day
before the date of enactment of the Transportation
Equity Act for the 21st Century);
in each State; bears to
``(ii) the total of all such vehicle miles traveled in
all States; and
``(C) 33\1/3\ percent in the ratio that--
``(i) the total of each State's annual contributions to
the Highway Trust Fund (other than the Mass Transit
Account) attributable to commercial vehicles; bears to
``(ii) the total of such annual contributions by all
States.
(c) Operation Lifesaver and High Speed Rail Corridors.--Section
104(d) of such title is amended--
(1) in paragraph (1) by striking ``The'' and all that follows
through ``$300,000 for each'' and inserting ``Before making an
apportionment under subsection (b)(3) of this section for a fiscal
year, the Secretary shall set aside $500,000 for such''; and
(2) by striking paragraphs (2) and (3) and inserting the
following:
``(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 $5,250,000 of the funds made available for the
surface transportation program for the fiscal year for
elimination of hazards of railway-highway crossings.
``(B) Eligible corridors.--Subject to subparagraph (E),
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);
``(ii) 3 railway corridors selected by the Secretary in
accordance with subparagraphs (C) and (D);
``(iii) a Gulf Coast high speed railway corridor (as
designated by the Secretary);
``(iv) a Keystone high speed railway corridor from
Philadelphia to Harrisburg, Pennsylvania; and
``(v) an Empire State railway corridor from New York
City to Albany to Buffalo, New York.
``(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) Certain improvements.--Not less than $250,000 of such
set-aside shall be available per fiscal year for eligible
improvements to the Minneapolis/St. Paul-Chicago segment of the
Midwest High Speed Rail Corridor.
``(F) Authorization of appropriations.--There is authorized
to be appropriated $15,000,000 for each of fiscal years 1999
through 2003 to carry out this subsection.''.
(d) Certification of Apportionments.--Section 104(e) of such title
is amended--
(1) by inserting ``Certification of Apportionments.--'' after
``(e)'';
(2) by inserting ``(1) In general.--'' before ``On October 1'';
(3) by striking the first parenthetical phrase;
(4) by striking ``and research'' the first place it appears;
(5) by striking the second sentence;
(6) by adding at the end the following:
``(2) Notice to states.--If the Secretary has not made an
apportionment under section 104, 144, or 157 by the 21st day of a
fiscal year beginning after September 30, 1998, the Secretary shall
transmit, by such 21st day, to the Committee on Transportation and
Infrastructure of the House of Representatives and the Committee on
Environment and Public Works of the Senate a written statement of
the reason for not making such apportionment in a timely manner.'';
and
(7) by indenting paragraph (1) (as designated by paragraph (2)
of this subsection) and aligning such paragraph (1) with paragraph
(2) of such section (as added by paragraph (6) of this subsection).
(e) Metropolitan Planning Set-Aside.--Section 104(f) of such title
is amended--
(1) in paragraph (1) by striking ``Interstate construction and
Interstate substitute programs'' and inserting ``recreational
trails program''; and
(2) in paragraph (3) by striking ``120(j) of this title'' and
inserting ``120(b)''.
(f) Recreational Trails Program.--Section 104(h) of such title is
amended to read as follows:
``(h) Recreational Trails Program.--
``(1) Administrative costs.--Whenever an apportionment is made
of the sums authorized to be appropriated to carry out the
recreational trails program under section 206, the Secretary shall
deduct an amount, not to exceed 1\1/2\ percent of the sums
authorized, to cover the cost to the Secretary for administration
of and research and technical assistance under the recreational
trails program and for administration of the National Recreational
Trails Advisory Committee. The Secretary may enter into contracts
with for-profit organizations or contracts, partnerships, or
cooperative agreements with other government agencies, institutions
of higher learning, or nonprofit organizations to perform these
tasks.
``(2) Apportionment to the states.--After making the deduction
authorized by paragraph (1) of this subsection, the Secretary shall
apportion the remainder of the sums authorized to be appropriated
for expenditure on the recreational trails program for each fiscal
year, among the States in the following manner:
``(A) 50 percent of that amount shall be apportioned
equally among eligible States.
``(B) 50 percent of that amount shall be apportioned among
eligible States in amounts proportionate to the degree of non-
highway recreational fuel use in each of those States during
the preceding year.
``(3) Eligible state defined.--In this section, the term
`eligible State' means a State that meets the requirements of
section 206(c).''.
(g) Audits of Highway Trust Fund.--Section 104 of such title is
amended by striking subsection (i) and inserting the following:
``(i) Audits of Highway Trust Fund.--From 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.''.
(h) Report on Obligations.--Section 104 of such title is amended by
striking subsection (j) and inserting the following:
``(j) Report to Congress.--The Secretary shall submit to Congress a
report for each fiscal year on--
``(1) the amount obligated, by each State, for Federal-aid
highways and highway safety construction programs during the
preceding fiscal year;
``(2) the balance, as of the last day of the preceding fiscal
year, of the unobligated apportionment of each State by fiscal year
under this section and sections 105 and 144;
``(3) the balance of unobligated sums available for expenditure
at the discretion of the Secretary for such highways and programs
for the fiscal year; and
``(4) the rates of obligation of funds apportioned or set aside
under this section and sections 105, 133, and 144, according to--
``(A) program;
``(B) funding category or subcategory;
``(C) type of improvement;
``(D) State; and
``(E) sub-State geographic area, including urbanized and
rural areas, on the basis of the population of each such
area.''.
(i) Transfer of Highway and Transit Funds.--Section 104 of such
title is amended by inserting after subsection (j) the following:
``(k) Transfer of Highway and Transit Funds.--
``(1) Transfer of highway funds.--Funds made available under
this title and transferred for transit projects of a type described
in section 133(b)(2) 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 such chapter relating to the non-
Federal share shall apply to the transferred funds.
``(3) Transfer of obligation authority.--Obligation authority
provided for projects described in paragraphs (1) and (2) shall be
transferred in the same manner and amount as the funds for the
projects are transferred.''.
(j) Effect of Certain Delay in Deposits Into Highway Trust Fund.--
Section 104 of such title is amended by adding at the end the
following:
``(l) Effect of Certain Delay in Deposits Into Highway Trust
Fund.--Notwithstanding any other provision of law, deposits into the
Highway Trust Fund resulting from the application of section 901(e) of
the Taxpayer Relief Act of 1997 (111 Stat. 872) shall not be taken into
account in determining the apportionments and allocations that any
State shall be entitled to receive under the Transportation Equity Act
for the 21st Century and this title.''.
(k) Technical Amendments.--Section 104(f) of such title is
amended--
(1) by striking ``(f)(1) On'' and inserting the following:
``(f) Metropolitan Planning.--
``(1) Set-aside.--On'';
(2) in paragraph (1) by striking ``, except that'' and all that
follows through ``programs'';
(3) by striking ``(2) These'' and inserting the following:
``(2) Apportionment to states of set-aside funds.--These'';
(4) by striking ``(3) The'' and inserting the following:
``(3) Use of funds.--The'';
(5) by striking ``(4) The'' and inserting the following:
``(4) Distribution of funds within states.--The''; and
(6) by aligning the remainder of the text of each of paragraphs
(1) through (4) with paragraph (5).
(l) Conforming Amendments.--
(1) Section 146(a) of such title is amended in the first
sentence by striking ``, 104(b)(2), and 104(b)(6)'' and inserting
``and 104(b)(3)''.
(2) Section 158 of such title is amended--
(A) in subsection (a)--
(i) by striking paragraph (1);
(ii) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively;
(iii) in paragraph (1) (as so redesignated)--
(I) by striking ``After the first year'' and
inserting ``In general''; and
(II) by striking ``104(b)(2), 104(b)(5), and
104(b)(6)'' and inserting ``104(b)(3), and 104(b)(4)'';
and
(iv) in paragraph (2) (as redesignated by clause (ii))
by striking ``paragraphs (1) and (2) of this subsection''
and inserting ``paragraph (1)''; and
(B) by striking subsection (b) and inserting the following:
``(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.''.
(3)(A) Section 115(b)(1) of such title is amended by striking
``104(b)(5)'' and inserting ``104(b)(4)''.
(B) Section 137(f)(1) of such title is amended by striking
``section 104(b)(5)(B) of this title'' and inserting ``section
104(b)(4)''.
(C) Section 141(c) of such title is amended by striking
``section 104(b)(5) of this title'' each place it appears and
inserting ``section 104(b)(4)''.
(D) Section 142(c) of such title is amended by striking
``(other than section 104(b)(5)(A))''.
(E) Section 159 of such title is amended--
(i) by striking ``(5) of'' each place it appears and
inserting ``(5) (as in effect on the day before the date of
enactment of the Transportation Equity Act for the 21st
Century) of''; and
(ii) in subsection (b)--
(I) in paragraphs (1)(A)(i) and (3)(A) by striking
``section 104(b)(5)(A)'' each place it appears and
inserting ``section 104(b)(5)(A) (as in effect on the day
before the date of enactment of the Transportation Equity
Act for the 21st Century)'';
(II) in paragraph (1)(A)(ii) by striking ``section
104(b)(5)(B)'' and inserting ``section 104(b)(5)(B) (as in
effect on the day before the date of enactment of the
Transportation Equity Act for the 21st Century)'';
(III) in paragraph (3)(B) by striking ``(5)(B)'' and
inserting ``(5)(B) (as in effect on the day before the date
of enactment of the Transportation Equity Act for the 21st
Century)''; and
(IV) in paragraphs (3) and (4) by striking ``section
104(b)(5)'' each place it appears and inserting ``section
104(b)(5) (as in effect on the day before the date of
enactment of the Transportation Equity Act for the 21st
Century)''.
(F) Section 161(a) of such title is amended by striking
``paragraphs (1), (3), and (5)(B) of section 104(b)'' each place it
appears and inserting ``paragraphs (1), (3), and (4) of section
104(b)''.
(4) Section 142(b) of such title is amended by striking
``paragraph (5) of subsection (b) of section 104 of this title''
and inserting ``section 104(b)(4)''.
(m) Adjustments for the Surface Transportation Extension Act of
1997.--
(1) In general.--Notwithstanding any other provision of law and
subject to section 2(c) of the Surface Transportation Extension Act
of 1997, the Secretary shall ensure that the total apportionments
for a State (other than Massachusetts) for fiscal year 1998 made
under the Transportation Equity Act for the 21st Century (including
amendments made by such Act) shall be reduced by the amount
apportioned to such State (other than Massachusetts) under section
1003(d)(1) of the Intermodal Surface Transportation Efficiency Act
of 1991.
(2) Repayment of transferred funds.--The Secretary shall ensure
that any apportionments made to a State for fiscal year 1998 and
adjusted under paragraph (1) shall first be used to restore in
accordance with section 3(c) of the Surface Transportation
Extension Act of 1997 any funds that a State transferred under
section 3 of such Act.
(3) Insufficient funds for repayment.--If a State has
insufficient funds apportioned in fiscal year 1998 under the
Transportation Equity Act for the 21st Century (including
amendments made by such Act) to make the adjustment required by
paragraph (1), then the Secretary shall make an adjustment to any
funds apportioned to such State in fiscal year 1999.
(4) Allocated programs.--Notwithstanding any other provision of
law, amounts made available for fiscal year 1998 by the
Transportation Equity Act for the 21st Century (including
amendments made by such Act) for a program that is continued by
both of sections 4, 5, 6, and 7 of the Surface Transportation
Extension Act of 1997 (including amendments made by such sections)
and the Transportation Equity Act for the 21st Century (including
amendments made by such Act) shall be reduced by the amount made
available by such sections 4, 5, 6, and 7 for such programs.
(5) Treatment of STEA obligation authority.--The amount of
obligation authority made available under section 2(e) of the
Surface Transportation Extension Act of 1997 shall be considered to
be an amount of obligation authority made available for fiscal year
1998 under section 1102(a) of this Act.
(n) State Defined.--For the purposes of apportioning funds under
sections 104, 105, 144, and 206, the term ``State'' means any of the 50
States and the District of Columbia.
SEC. 1104. MINIMUM GUARANTEE.
(a) In General.--Section 105 of title 23, United States Code, is
amended to read as follows:
``Sec. 105. Minimum guarantee
``(a) General Rule.--For each of fiscal years 1998 through 2003,
the Secretary shall allocate among the States amounts sufficient to
ensure that each State's percentage of the total apportionments for
such fiscal year of Interstate maintenance, national highway system,
bridge, congestion mitigation and air quality improvement, surface
transportation, metropolitan planning, minimum guarantee, high priority
projects, Appalachian development highway system, and recreational
trails programs shall equal the percentage listed for each State in
subsection (b).
``(b) State Percentages.--The percentage for each State referred to
in subsection (a) shall be determined in accordance with the following
table:
``States:
Percentage
Alabama...................................................
2.0269
Alaska....................................................
1.1915
Arizona...................................................
1.5581
Arkansas..................................................
1.3214
California................................................
9.1962
Colorado..................................................
1.1673
Connecticut...............................................
1.5186
Delaware..................................................
0.4424
District of Columbia......................................
0.3956
Florida...................................................
4.6176
Georgia...................................................
3.5104
Hawaii....................................................
0.5177
Idaho.....................................................
0.7718
Illinois..................................................
3.3819
Indiana...................................................
2.3588
Iowa......................................................
1.2020
Kansas....................................................
1.1717
Kentucky..................................................
1.7365
Louisiana.................................................
1.5900
Maine.....................................................
0.5263
Maryland..................................................
1.5087
Massachusetts.............................................
1.8638
Michigan..................................................
3.1535
Minnesota.................................................
1.4993
Mississippi...............................................
1.2186
Missouri..................................................
2.3615
Montana...................................................
0.9929
Nebraska..................................................
0.7768
Nevada....................................................
0.7248
New Hampshire.............................................
0.5163
New Jersey................................................
2.5816
New Mexico................................................
0.9884
New York..................................................
5.1628
North Carolina............................................
2.8298
North Dakota..............................................
0.6553
Ohio......................................................
3.4257
Oklahoma..................................................
1.5419
Oregon....................................................
1.2183
Pennsylvania..............................................
4.9887
Rhode Island..............................................
0.5958
South Carolina............................................
1.5910
South Dakota..............................................
0.7149
Tennessee.................................................
2.2646
Texas.....................................................
7.2131
Utah......................................................
0.7831
Vermont...................................................
0.4573
Virginia..................................................
2.5627
Washington................................................
1.7875
West Virginia.............................................
1.1319
Wisconsin.................................................
1.9916
Wyoming...................................................
0.6951
``(c) Treatment of Funds.--
``(1) Programmatic distribution.--The Secretary shall apportion
50 percent of the amounts made available under this section that
exceed $2,800,000,000 so that the amount apportioned to each State
under this paragraph for each program referred to in subsection (a)
(other than metropolitan planning, minimum guarantee, high priority
projects, Appalachian development highway system, and recreational
trails programs) is equal to the amount determined by multiplying
the amount to be apportioned under this paragraph by the ratio
that--
``(A) the amount of funds apportioned to each State for
each program referred to in subsection (a) for a fiscal year;
bears to
``(B) the total amount of funds apportioned to all States
for such program for such fiscal year.
``(2) Remaining distribution.--The Secretary shall apportion
the remainder of funds made available under this section to the
States in accordance with section 104(b)(3); except that
requirements of paragraphs (1), (2), and (3) of section 133(d)
shall not apply to amounts apportioned pursuant to this paragraph.
``(d) Authorization.--There are authorized to be appropriated out
of the Highway Trust Fund (other than the Mass Transit Account) such
sums as may be necessary to carry out this section for each of fiscal
years 1998 through 2003.
``(e) Special Rule.--If in any of fiscal years 1999 through 2003,
the amount authorized under subsection (d) is more than 30 percent
higher than the amount authorized under subsection (d) in fiscal year
1998, the Secretary shall use the apportionment factors under sections
104 and 144 as in effect on the date of enactment of this section.
``(f) Guarantee of 90.5 Return.--
``(1) In general.--Before making any apportionment under this
title for each of fiscal years 1999 through 2003, the Secretary,
subject to paragraph (2), shall adjust the percentages in the table
in subsection (b) to reflect the estimated percentage of 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 is available, to ensure that no
State's return from such Trust Fund is less than 90.5 percent.
``(2) Eligibility threshold for initial adjustment.--The
Secretary may make an adjustment under paragraph (1) for a State
for a fiscal year only if the State's return from the Highway Trust
Fund (other than the Mass Transit Account) for the preceding fiscal
year was equal to or less than 90.5 percent.
``(3) Conforming adjustments.--After making any adjustments
under paragraph (1) for a fiscal year, the Secretary shall adjust
the remaining percentages in the table set forth in subsection (b)
to ensure that the total of the percentages in the table do not
exceed 100 percent for such fiscal year.
``(4) Limitation on adjustments.--After making any adjustments
under paragraph (3) for a fiscal year, the Secretary shall
determine whether or not any State's return from the Highway Trust
Fund (other than the Mass Transit Account) is less than 90.5
percent as a result of such adjustments and shall adjust the
percentages in the table for such fiscal year accordingly.
Adjustments of the percentages in the table under this paragraph
may not result in the total of such percentages exceeding 100
percent.''.
(b) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by striking the item relating to section 105 and inserting
the following:
``105. Minimum guarantee.''.
SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.
(a) In General.--Chapter 1 of title 23, United States Code, is
amended by striking section 110 and inserting the following:
``Sec. 110. Revenue aligned budget authority
``(a) Determination of Amount.--On October 15 of fiscal year 1999,
and each fiscal year thereafter, the Secretary shall allocate an amount
of funds equal to the amount determined pursuant to section
251(b)(1)(B)(I)(cc) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(b)(2)(B)(I)(cc)).
``(b) General Distribution.--The Secretary shall--
``(1) determine the ratio that--
``(A) the sums authorized to be appropriated from the
Highway Trust Fund (other than the Mass Transit Account) for
each of the for Federal-aid highway and highway safety
construction programs (other than the minimum guarantee
program) for which funds are allocated from such Trust Fund by
the Secretary under this title and the Transportation Equity
Act for the 21st Century for a fiscal year, bears to
``(B) the total of all sums authorized to be appropriated
from such Trust Fund for such programs for such fiscal year;
``(2) multiply the ratio determined under paragraph (1) by the
total amount of funds to be allocated under subsection (a) for such
fiscal year;
``(3) allocate the amount determined under paragraph (2) among
such programs in the ratio that--
``(A) the sums authorized to be appropriated from such
Trust Fund for each of such programs for such fiscal year,
bears to
``(B) the sums authorized to be appropriated from such
Trust Fund for all such programs for such fiscal year; and
``(4) allocate the remainder of the funds to be allocated under
subsection (a) for such fiscal year to the States in the ratio
that--
``(A) the total of all funds authorized to be appropriated
from such Trust Fund for Federal-aid highway and highway safety
construction programs that are apportioned to each State for
such fiscal year but for this section, bears to
``(B) the total of all funds authorized to be appropriated
from such Trust Fund for such programs that are apportioned to
all States for such fiscal year but for this section.
``(c) State Programmatic Distribution.--Of the funds to be
apportioned to each State under subsection (b)(4) for a fiscal year,
the Secretary shall ensure that such funds are apportioned for the
Interstate Maintenance program, the National Highway System program,
the bridge program, the surface transportation program, and the
congestion mitigation air quality improvement program in the same ratio
that each State is apportioned funds for such programs for such fiscal
year but for this section.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated from the Highway Trust Fund (other than the Mass Transit
Account) such sums as may be necessary to carry out this section for
fiscal years beginning after September 30, 1998.''.
(b) Conforming Amendment.--The analysis for chapter 1 of such title
is amended by striking the item relating to section 110 and inserting
the following:
``110. Revenue aligned budget authority.''.
SEC. 1106. FEDERAL-AID SYSTEMS.
(a) Administration of National Highway System and Interstate
Maintenance Program.--The Secretary shall administer the National
Highway System program and the Interstate Maintenance program as a
combined program for purposes of allowing States maximum flexibility.
References in this Act and title 23, United States Code, shall not be
affected by such consolidation.
(b) Federal-Aid Systems.--Section 103 of title 23, United States
Code, is amended to read as follows:
``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 the
highway routes and connections to transportation facilities
depicted on the map submitted by the Secretary to Congress with the
report entitled `Pulling Together: The National Highway System and
its Connections to Major Intermodal Terminals' and dated May 24,
1996. The system shall--
``(A) serve major population centers, international border
crossings, ports, airports, public transportation facilities,
and other intermodal transportation facilities and other major
travel destinations;
``(B) meet national defense requirements; and
``(C) serve interstate and interregional travel.
``(2) Components.--The National Highway System described in
paragraph (1) 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) 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 of such a corridor established by section 1105 of the
Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat.
2031 et seq.) that was not identified on the National Highway
System described in paragraph (1).
``(6) Eligible projects for nhs.--Subject to 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:
``(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, and
construction of a transit project eligible for assistance under
chapter 53 of title 49, if--
``(i) the highway or transit project is in the same
corridor as, and in proximity to, a fully access-controlled
highway designated as a part of the National Highway
System;
``(ii) the construction or improvements will 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. With respect to participation in a natural habitat
or wetland mitigation effort related to a project funded under
this title that has an impact that occurs within the service
area of a mitigation bank, preference shall be given, to the
maximum extent practicable, to the use of the mitigation bank
if the bank contains sufficient available credits to offset the
impact and the bank is approved in accordance with the Federal
Guidance for the Establishment, Use and Operation of Mitigation
Banks (60 Fed. Reg. 58605 (November 28, 1995)) or other
applicable Federal law (including regulations).
``(N) Publicly-owned intracity or intercity bus terminals.
``(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 assistance under section 133, any airport, and any
seaport.
``(c) Interstate System.--
``(1) Description.--
``(A) In general.--The Dwight D. Eisenhower National System
of Interstate and Defense Highways within the United States
(including the District of Columbia and Puerto Rico) consists
of highways designed, located, and selected in accordance with
this paragraph.
``(B) Design.--
``(i) In general.--Except as provided in clause (ii),
highways on the Interstate System shall be designed in
accordance with the standards of section 109(b).
``(ii) Exception.--Highways on the Interstate System in
Alaska and Puerto Rico shall be designed in accordance with
such geometric and construction standards as are adequate
for current and probable future traffic demands and the
needs of the locality of the highway.
``(C) Location.--Highways on the Interstate System shall be
located so as--
``(i) to connect by routes, as direct as practicable,
the principal metropolitan areas, cities, and industrial
centers;
``(ii) to serve the national defense; and
``(iii) to the maximum extent practicable, to connect
at suitable border points with routes of continental
importance in Canada and Mexico.
``(D) Selection of routes.--To the maximum extent
practicable, each route of the Interstate System shall be
selected by joint action of the State transportation
departments of the State in which the route is located and the
adjoining States, in cooperation with local and regional
officials, and subject to the approval of the Secretary.
``(2) Maximum mileage.--The mileage of highways on the
Interstate System shall not exceed 43,000 miles, exclusive of
designations under paragraph (4).
``(3) Modifications.--The Secretary may approve or require
modifications to the Interstate System in a manner consistent with
the policies and procedures established under this subsection.
``(4) Interstate system designations.--
``(A) Additions.--If the Secretary determines that a
highway on the National Highway System meets all standards of a
highway on the Interstate System and that the highway is a
logical addition or connection to the Interstate System, the
Secretary may, upon the affirmative recommendation of the State
or States in which the highway is located, designate the
highway as a route on the Interstate System.
``(B) Designations as future interstate system routes.--
``(i) In general.--If the Secretary determines that a
highway on the National Highway System would be a logical
addition or connection to the Interstate System and would
qualify for designation as a route on the Interstate System
under subparagraph (A) if the highway met all standards of
a highway on the Interstate System, the Secretary may, upon
the affirmative recommendation of the State or States in
which the highway is located, designate the highway as a
future Interstate System route.
``(ii) Written agreement of states.--A designation
under clause (i) shall be made only upon the written
agreement of the State or States described in such 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.--Except as provided in this
title, the designation of a highway under this paragraph shall
create no additional Federal financial responsibility with
respect to the highway.
``(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
Transportation Equity Act for the 21st Century), 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 not be eligible for funding under section
104(b)(5)(A) (as in effect on the day before the date of
enactment of the Transportation Equity Act for the 21st
Century) or 118(c).
``(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 Transportation Equity Act for the 21st Century), 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.''.
(b) Unobligated Balances of Interstate Substitute Funds.--
Unobligated balances of funds apportioned to a State under section
103(e)(4)(H) of title 23, United States Code (as in effect on the day
before the date of enactment of this Act), 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.
(c) Conforming Amendments.--
(1)(A) Section 115(a) of title 23, United States Code, is
amended--
(i) in the subsection heading by striking ``Substitute,'';
and
(ii) in paragraph (1)(A)(i) by striking ``103(e)(4)(H),'';
(B) Section 118 of such title is amended--
(i) by striking subsection (d); and
(ii) by redesignating subsections (e) and (f) as
subsections (d) and (e), respectively.
(C) Section 129(b) of such title is amended in the first
sentence by striking ``which has been'' and all that follows
through ``and has not'' and inserting ``which is a public road and
has not''.
(2)(A) Section 139 of such title, and the item relating to such
section in the analysis for chapter 1 of such title, are repealed.
(B) Section 127(f) of such title is amended by striking
``section 139(a)'' and inserting ``section 103(c)(4)(A)''.
(C) Section 1105(e)(5) of the Intermodal Surface Transportation
Efficiency Act of 1991 (109 Stat. 597) is amended by striking
subparagraph (B) and inserting the following:
``(B) Treatment of segments.--Subject to subparagraph (C),
segments designated as parts of the Interstate System under
this paragraph shall be treated in the same manner as segments
designated under section 103(c)(4)(A) of title 23, United
States Code.''.
(d) Intermodal Freight Connectors Study.--
(1) Report.--Not later than 2 years after the date of enactment
of this Act, the Secretary shall--
(A) review the condition of and improvements made, since
the designation of the National Highway System, to connectors
on the National Highway System that serve seaports, airports,
and other intermodal freight transportation facilities; and
(B) report to Congress on the results of such review.
(2) Review.--In preparing the report, the Secretary shall
review the connectors and identify projects carried out on those
connectors that were intended to provide and improve service to an
intermodal facility referred to in paragraph (1) and to facilitate
the efficient movement of freight, including movements of freight
between modes.
(3) Identification of impediments.--If the Secretary determines
on the basis of the review that there are impediments to improving
the connectors serving intermodal facilities referred to in
paragraph (1), the Secretary shall identify such impediments and
make any appropriate recommendations as part of the Secretary's
report to Congress under this subsection.
SEC. 1107. INTERSTATE MAINTENANCE PROGRAM.
(a) In General.--Section 119 of title 23, United States Code, is
amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--
``(1) Projects.--The Secretary may approve projects for
resurfacing, restoring, rehabilitating, and reconstructing--
``(A) routes on the Interstate System designated under
section 103(c)(1) and, in Alaska and Puerto Rico, under section
103(c)(4)(A);
``(B) routes on the Interstate System designated before the
date of enactment of the Transportation Equity Act for the 21st
Century under subsections (a) and (b) of section 139 (as in
effect on the day before the date of enactment of such Act);
and
``(C) any segments that become part of the Interstate
System under section 1105(e)(5) of the Intermodal Surface
Transportation Efficiency Act of 1991.
``(2) Toll roads.--The Secretary may approve a project pursuant
to this subsection on a toll road only if such road is subject to a
Secretarial agreement provided for in section 129 or continued in
effect by section 1012(d) of the Intermodal Surface Transportation
Efficiency Act of 1991 (105 Stat. 1939) and not voided by the
Secretary under section 120(c) of the Surface Transportation and
Uniform Relocation Assistance Act of 1987 (101 Stat. 159).
``(3) Funding.--Sums authorized to be appropriated to carry out
this section shall be out of the Highway Trust Fund and shall be
apportioned in accordance with section 104(b)(4).'';
(2) by striking subsections (b), (c), and (e); and
(3) by redesignating subsections (d), (f), and (g) as
subsections (b), (c), and (d), respectively.
(b) Set-Asides for Interstate Discretionary Projects.--Section
118(c) of such title is amended to read as follows:
``(c) Set-Asides for Interstate Discretionary Projects.--
``(1) In general.--Before any apportionment is made under
section 104(b)(4), the Secretary shall set aside $50,000,000 in
fiscal year 1998 and $100,000,000 in each of fiscal years 1999
through 2003 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 (as in effect on the day before the date of enactment of the
Transportation Equity Act for the 21st Century)) and any toll road
on the Interstate System not subject to an agreement under section
119(e) (as in effect on December 17, 1991).
``(2) Selection criteria.--The amounts set aside under
paragraph (1) shall be made available by the Secretary to any State
applying for such funds if the Secretary determines that--
``(A) the State has obligated or demonstrates that it will
obligate in the fiscal year all of its apportionments under
section 104(b)(4) other than an amount that, by itself, is
insufficient to pay the Federal share of the cost of a project
for resurfacing, restoring, rehabilitating, and reconstructing
the Interstate System that has been submitted by the State to
the Secretary for approval; and
``(B) the applicant is willing and able to--
``(i) obligate the funds within 1 year of the date the
funds are made available;
``(ii) apply the funds to a ready-to-commence project;
and
``(iii) in the case of construction work, begin work
within 90 days after obligation.
``(3) Priority consideration for certain projects.--In
selecting projects to fund under paragraph (1), 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.
``(4) Period of availability of discretionary funds.--Sums made
available pursuant to this subsection shall remain available until
expended.''.
(c) Interstate Needs.--
(1) Study.--The Secretary shall conduct, in cooperation with
States and affected metropolitan planning organizations, a study to
determine--
(A) the expected condition of the Interstate System over
the next 10 years and the needs of States and metropolitan
planning organizations to reconstruct and improve the
Interstate System;
(B) the resources necessary to maintain and improve the
Interstate System; and
(C) the means to ensure that the Nation's surface
transportation program can--
(i) address the needs identified in subparagraph (A);
and
(ii) allow for States to address any extraordinary
needs.
(2) Report.--Not later than January 1, 2000, the Secretary
shall transmit to Congress a report on the results of the study.
SEC. 1108. SURFACE TRANSPORTATION PROGRAM.
(a) Eligibility of Projects.--Section 133(b) of title 23, United
States Code, is amended--
(1) in paragraph (1) by inserting after ``magnesium acetate''
the following: ``, sodium acetate/formate, or other environmentally
acceptable, minimally corrosive anti-icing and de-icing
compositions'';
(2) in paragraph (2) by striking ``and publicly owned intracity
or intercity bus terminals and facilities'' and inserting ``,
including vehicles and facilities, whether publicly or privately
owned, that are used to provide intercity passenger service by
bus'';
(3) in paragraph (3)--
(A) by striking ``and bicycle'' and inserting ``bicycle'';
and
(B) by inserting before the period at the end the
following: ``, and the modification of public sidewalks to
comply with the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.)'';
(4) in paragraph (4) by inserting ``infrastructure'' after
``safety'';
(5) in paragraph (9) by striking ``section 108(f)(1)(A) (other
than clauses (xii) and (xvi)) of the Clean Air Act'' and inserting
``section 108(f)(1)(A) (other than clause (xvi)) of the Clean Air
Act (42 U.S.C. 7408(f)(1)(A))'';
(6) in paragraph (11)--
(A) in the first sentence--
(i) by inserting ``natural habitat and'' after
``participation in'' each place it appears;
(ii) by striking ``enhance and create'' and inserting
``enhance, and create natural habitats and''; and
(iii) by inserting ``natural habitat and'' before
``wetlands conservation''; and
(B) by adding at the end the following: ``With respect to
participation in a natural habitat or wetland mitigation effort
related to a project funded under this title that has an impact
that occurs within the service area of a mitigation bank,
preference shall be given, to the maximum extent practicable,
to the use of the mitigation bank if the bank contains
sufficient available credits to offset the impact and the bank
is approved in accordance with the Federal Guidance for the
Establishment, Use and Operation of Mitigation Banks (60 Fed.
Reg. 58605 (November 28, 1995)) or other applicable Federal law
(including regulations).''; and
(7) by adding at the end the following:
``(13) Infrastructure-based intelligent transportation systems
capital improvements.
``(14) 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.''.
(b) Transportation Enhancement Activities.--Section 133 of such
title is amended--
(1) in subsection (d)(3)(D) by striking ``any State'' and all
that follows through the period at the end and inserting ``Hawaii
and Alaska''; and
(2) in subsection (e)--
(A) in paragraph (3)(B)(i) by striking ``if the Secretary''
and all that follows through ``activities''; and
(B) in paragraph (5) by adding at the end the following:
``(C) Cost sharing.--
``(i) Required aggregate non-federal share.--The
average annual non-Federal share of the total cost of all
projects to carry out transportation enhancement activities
in a State for a fiscal year shall be not less than the
non-Federal share authorized for the State under section
120(b).
``(ii) Innovative financing.--Subject to clause (i),
notwithstanding section 120--
``(I) funds from other Federal agencies and the
value of other contributions (as determined by the
Secretary) may be credited toward the non-Federal share
of the costs of a project to carry out a transportation
enhancement activity;
``(II) the non-Federal share for such a project may
be calculated on a project, multiple-project, or
program basis; and
``(III) the Federal share of the cost of an
individual project to which subclause (I) or (II)
applies may be up to 100 percent.''.
(c) Program Approval.--Section 133(e) of such title is amended by
striking paragraph (2) and inserting the following:
``(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.--Each State shall
request from the Secretary such adjustments to the amount of
obligations referred to in subparagraph (A)(ii) as the State
determines to be necessary.
``(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.''.
(d) Payments.--Section 133(e)(3)(A) of such title is amended by
striking the second sentence.
(e) Surface Transportation Program Obligations in Urban Areas.--
Section 133 of such title is amended to read as follows:
``(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 period of
fiscal years 1998 through 2000 and the period of fiscal years 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
the period; and
``(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).''.
(f) Division of STP Funds for Areas of Less Than 5,000
Population.--
(1) Special rule.--Notwithstanding section 133(c) of title 23,
United States Code, and except as provided in paragraph (2), up to
15 percent of the amounts required to be obligated under section
133(d)(3)(B) of such title for each of fiscal years 1998 through
2003 may be obligated on roads functionally classified as minor
collectors.
(2) Suspension.--The Secretary may suspend the application of
paragraph (1) if the Secretary determines that paragraph (1) is
being used excessively.
(g) Encouragement of Use of Youth Conservation or Service Corps.--
The Secretary shall encourage the States to enter into contracts and
cooperative agreements with qualified youth conservation or service
corps to perform appropriate transportation enhancement activities
under chapter 1 of title 23, United States Code.
SEC. 1109. HIGHWAY BRIDGE PROGRAM.
(a) Apportionment Formula.--Section 144(e) of title 23, United
States Code, is amended in the fourth sentence by inserting before the
period at the end the following: ``, and, if a State transfers funds
apportioned to the State under this section in a fiscal year beginning
after September 30, 1997, to any other apportionment of funds to such
State under this title, the total cost of deficient bridges in such
State and in all States to be determined for the succeeding fiscal year
shall be reduced by the amount of such transferred funds''.
(b) Discretionary Bridge Set-Aside.--Section 144(g)(1) of such
title is amended--
(1) by inserting ``(A) Fiscal years 1992 through 1997.--''
before ``Of the amounts'';
(2) by adding at the end the following:
``(B) Fiscal year 1998.--Of the amounts authorized to be
appropriated to carry out the bridge program under this section
for fiscal year 1998, all but $25,000,000 shall be apportioned
as provided in subsection (e) of this section. Such $25,000,000
shall be available only for projects for the seismic retrofit
of a bridge described in subsection (l).
``(C) Fiscal years 1999 through 2003.--Of the amounts
authorized to be appropriated to carry out the bridge program
under this section for each of fiscal years 1999 through 2003,
all but $100,000,000 shall be apportioned as provided in
subsection (e). Such $100,000,000 shall be available at the
discretion of the Secretary; except that not to exceed
$25,000,000 shall be available only for projects for the
seismic retrofit of bridges, including projects in the New
Madrid fault region.''; and
(3) by indenting subparagraph (A) (as designated by paragraph
(1) of this subsection) and aligning such subparagraph (A) with
subparagraphs (B) and (C) of such section (as added by paragraph
(2) of this subsection).
(c) Off-System Bridge Set-Aside.--Section 144(g)(3) of such title
is amended--
(1) by striking ``, 1988'' and all that follows through
``1997,'' and inserting ``through 2003''; and
(2) by striking ``system'' each place it appears and inserting
``highway''.
(d) Eligibility.--Section 144 of title 23, United States Code, is
amended--
(1) in subsection (d) by inserting after ``magnesium acetate''
the following: ``, sodium acetate/formate, or other environmentally
acceptable, minimally corrosive anti-icing and de-icing
compositions or installing scour countermeasures'';
(2) in subsection (d) by inserting after ``such acetate'' each
place it appears the following: ``or sodium acetate/formate or such
anti-icing or de-icing composition or installation of such
countermeasures''; and
(3) in subsection (g)(3) by inserting after ``magnesium
acetate'' the following: ``, sodium acetate/formate, or other
environmentally acceptable, minimally corrosive anti-icing and de-
icing compositions or install scour countermeasures''.
(e) Conforming Amendment.--Section 144(n) of such title is amended
by striking ``system'' and inserting ``highway''.
SEC. 1110. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.
(a) Establishment of Program.--Section 149(a) of title 23, United
States Code, is amended by inserting after ``establish'' the following:
``and implement''.
(b) Currently Eligible Projects.--Section 149(b) of such title is
amended--
(1) by striking ``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'' and inserting the following:
``that is or was designated as a nonattainment area for ozone,
carbon monoxide, or particulate matter under section 107(d) of the
Clean Air Act (42 U.S.C. 7407(d)) and classified pursuant to
section 181(a), 186(a), 188(a), or 188(b) of the Clean Air Act (42
U.S.C. 7511(a), 7512(a), 7513(a), or 7513(b)) or is or was
designated as a nonattainment area under such section 107(d) after
December 31, 1997,'';
(2) in paragraph (1)(A) by striking ``clauses (xii) and''; and
inserting ``clause'';
(3) in paragraph (1)(A)(ii) by striking ``an area'' and all
that follows through the semicolon and inserting ``a maintenance
area;'';
(4) by striking ``or'' at the end of paragraph (3);
(5) by striking ``standard.'' at the end of paragraph (4) and
inserting ``standard; or''; and
(6) by inserting after paragraph (4) the following:
``(5) if the program or project improves traffic flow,
including projects to improve signalization, construct high
occupancy vehicle lanes, improve intersections, and implement
intelligent transportation system strategies and such other
projects that are eligible for assistance under this section on the
day before the date of enactment of this paragraph.''.
(c) States Receiving Minimum Apportionment.--Section 149 of such
title is amended by striking subsection (c) and inserting the
following:
``(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) Public-Private Partnerships.--
(1) In general.--Section 149 of such title is amended by adding
at the end the following:
``(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, including infrastructure that would support the
development, production, and use of emerging technologies that
reduce emissions of air pollutants from motor vehicles, and
other capital investments associated with the project;
``(B) shall include only the incremental cost of an
alternative fueled vehicle, as compared to a conventionally
fueled vehicle, that would otherwise be borne by a private
party; and
``(C) shall 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.''.
(2) Determination by the secretary.--For the purposes of
section 149(c) of title 23, United States Code, the Secretary shall
determine in accordance with the procedures specified in section
149(b) of such title whether water-phased hydrocarbon fuel emulsion
technologies that consist of a hydrocarbon base and water in an
amount not less than 20 percent by volume that reduce emissions of
hydrocarbon, particulate matter, carbon monoxide, or nitrogen oxide
from motor vehicles.
(e) Study of CMAQ Program.--
(1) In general.--The Secretary and the Administrator of the
Environmental Protection Agency shall enter into arrangements with
the National Academy of Sciences to complete, by not later than
January 1, 2001, a study of the congestion mitigation and air
quality improvement program under section 149 of title 23, United
States Code. The study shall, at a minimum--
(A) evaluate the air quality impacts of emissions from
motor vehicles;
(B) evaluate the negative effects of traffic congestion,
including the economic effects of time lost due to congestion;
(C) determine the amount of funds obligated under the
program and make a comprehensive analysis of the types of
projects funded under the program;
(D) evaluate the emissions reductions attributable to
projects of various types that have been funded under the
program;
(E) assess the effectiveness, including the quantitative
and nonquantitative benefits, of projects funded under the
program and include, in the assessment, an estimate of the cost
per ton of pollution reduction;
(F) assess the cost effectiveness of projects funded under
the program with respect to congestion mitigation;
(G) compare--
(i) the costs of achieving the air pollutant emissions
reductions achieved under the program; to
(ii) the costs that would be incurred if similar
reductions were achieved by other measures, including
pollution controls on stationary sources;
(H) include recommendations on improvements, including
other types of projects, that will increase the overall
effectiveness of the program;
(I) include recommendations on expanding the scope of the
program to address traffic-related pollutants that, as of the
date of the study, are not addressed by the program.
(2) Report.--Not later than January 1, 2000, the National
Academy of Sciences shall transmit to the Secretary, the Committee
on Transportation and Infrastructure and the Committee on Commerce
of the House of Representatives, and the Committee on Environment
and Public Works of the Senate a report on the results of the study
with recommendations for modifications to the congestion mitigation
and air quality improvement program in light of the results of the
study.
(3) Funding.--Before making the apportionment of funds under
section 104(b)(2) of title 23, United States Code, for each of
fiscal years 1999 and 2000, the Secretary shall deduct from the
amount to be apportioned under such section for such fiscal year,
and make available, $500,000 for such fiscal year to carry out this
subsection.
SEC. 1111. FEDERAL SHARE.
(a) State-Determined Lower Federal Share.--Section 120 of title 23,
United States Code, is amended--
(1) in subsection (a)--
(A) by striking ``Except'' and inserting the following:
``(1) In general.--Except'';
(B) by adding at the end the following:
``(2) State-determined lower federal share.--In the case of any
project subject to paragraph (1), a State may determine a lower
Federal share than the Federal share determined under such
paragraph.''; and
(C) by aligning the remainder of the text of paragraph (1)
(as designated by subparagraph (A) of this paragraph) with
paragraph (2) of such subsection (as added by subparagraph (B)
of this paragraph); and
(2) in subsection (b) by adding at the end the following: ``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) Increased Federal Share for Certain Safety Projects.--The first
sentence of section 120(c) of such title is amended by inserting ``or
transit vehicles'' after ``emergency vehicles''.
(c) Credit for Non-Federal Share.--Section 120 of such title is
amended by adding at the end the following:
``(j) Credit for Non-Federal Share.--
``(1) Eligibility.--A State may use as a credit toward the non-
Federal share requirement for any funds made available to carry out
this title (other than the emergency relief program authorized by
section 125) or chapter 53 of title 49 toll revenues that are
generated and used by public, quasi-public, and private agencies to
build, improve, or maintain highways, bridges, or tunnels that
serve the public purpose of interstate commerce. Such public,
quasi-public, or private agencies shall have built, improved, or
maintained such facilities without Federal funds.
``(2) Maintenance of effort.--
``(A) In general.--The credit for any non-Federal share
provided under this subsection shall not reduce nor replace
State funds required to match Federal funds for any program
under this title.
``(B) Condition on receipt of credit.--To receive a credit
under paragraph (1) for a fiscal year, a State shall enter into
such agreement as the Secretary may require to ensure that the
State will maintain its non-Federal transportation capital
expenditures in such fiscal year at or above the average level
of such expenditures for the preceding 3 fiscal years; except
that 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 130 percent of the average
level of such expenditures for the other 2 of the preceding 3
fiscal years, the agreement shall ensure that the State will
maintain its non-Federal transportation capital expenditures in
the fiscal year of the credit at or above the average level of
such expenditures for the other 2 fiscal years.
``(C) Transportation capital expenditures defined.--In
subparagraph (B), the term `non-Federal transportation capital
expenditures' includes any payments made by the State for
issuance of transportation-related bonds.
``(3) Treatment.--
``(A) Limitation on liability.--Use of a credit for a non-
Federal share under this subsection that is received from a
public, quasi-public, or private agency--
``(i) shall not expose the agency to additional
liability, additional regulat